Full text of Federal Reserve Bulletin : August 1971
The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FEDERAL RESERVE BULLETIN * ★ ★ * * * * * AUGUST 1971 BOARD OF GOVERNORS □ THE FEDERAL RESERVE SYSTEM □ WASHINGTON, D.C. A copy of the Federal Reserve Bulletin is sent to each member bank without charge; member banks desiring additional copies may secure them at a special $2.00 annual rate. The regular subscription price in the United States and its possessions, Bolivia, Canada, Chile, Colombia, Costa Rica, Cuba, Dominican Republic, Ecuador, Guatemala, Haiti, Republic of Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, El Salvador, Uruguay, and Venezuela is $6.00 per annum or 60 cents per copy; elsewhere, $7.00 per annum or 70 cents per copy. Group subscriptions in the United States for 10 or more copies to one address, 50 cents per copy per month, or $5.00 for 12 months. The Bulletin may be obtained from the Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D. C. 20551, and remittance should be made payable to the order of the Board of Governors of the Federal Reserve System in a form collectible at par in U.S. currency. (Stamps and coupons not accepted) FEDERAL RESERVE BULLETIN NUMBER 8 □ VOLUME 57 □ AUGUST 1971 CONTENTS 639 Financial Developments in the Second Quarter of 1971 649 Staff Economic Studies: Summ aries 653 Statements to Congress 663 Record of Policy Actions of the Federal Open Market Committee 672 Law Department 698 Announcements 700 National Sum m ary of Business Conditions Financial and Business Statistics A 1 Contents A 3 Guide to Tabular Presentation A 3 Statistical Releases: Reference A 4 U.S. Statistics A 74 International Statistics A 99 Board of Governors and Staff A 101 Open Market Committee and Staff; Federal Advisory Council A 102 Federal Reserve Banks and Branches A 103 Federal Reserve Board Publications A 107 Index to Statistical Tables Map of Federal Reserve System on Inside Back Cover EDITORIAL COMMITTEE Charles Molony J. Charles Partee Robert C. Holland Robert Solomon Kenneth B. Williams Elizabeth B. Sette The Federal Reserve BULLETIN is issued monthly under the direction of the staff edi torial committee. This committee is responsible for opinions expressed except in official statements and signed articles. Direction for the art work is provided by Mack Rowe. Financial Developments in the Second Quarter of 1971 This report, which was sent to the Joint Economic Com m ittee of the U.S. Congress, highlights the important developments in financial markets during the spring and early summer. DOMESTIC FINANCIAL market conditions were influenced during the second quarter of 1971 by a complex of factors that resulted in a substantial rise in interest rates despite continued sharp expansion in the monetary aggregates. However, even with the general advance in interest rates over the quarter, midyear bor rowing costs in both short- and long-term markets were no higher than the reduced levels that had been established by late fall of last year. The Nation’s output of goods and services rose further, although by less than the exceptionally large increase for the first quarter. Reflecting this further gain in spending as well as precautionary demands for cash balances and other factors, the narrowly defined money stock (privately held demand deposits plus currency) increased at an 11 per cent annual rate over the quarter. This was somewhat more rapid than the already strong rate of advance recorded in the first quarter. Growth in other monetary measures, however, although remaining quite strong relatively, was substantially slower than in the first quarter. A sharp further increase in the narrowly defined money stock was not an unexpected development since conditions had pointed in this direction from the outset of the quarter. However, be cause interest rates were already being pushed upward by other factors, the Federal Open Market Committee decided to move 640 FEDERAL RESERVE BULLETIN □ AUGUST 1971 cautiously in instituting action to moderate this growth; it was felt that additional strong upward pressures on rates would be inappropriate when the economy was just beginning to recover its forward momentum. As the quarter progressed and it be came apparent that the tendency for the monetary aggregates to rise was stronger than initially estimated, some further firming actions were taken. The combination of Federal Reserve action and further growth in GNP produced a significant increase in money market rates, which was reflected more generally in smaller advances of other interest rates. In addition, borrowing in capital markets by business firms and State and local governments remained quite substantial over the quarter, while investors became some what more reluctant to acquire the oncoming supply of new issues. This increased investor caution reflected uncertainties regarding the potential strength of the current economic recovery, the chances for further abatement of inflationary pressures, the possibility of tighter monetary conditions, and the future value of various currencies in foreign exchange markets. Substantial outflows of U.S. funds occurred prior to the German decision to permit the mark to float in early May, and the indicated deficit in U.S. balance of payments for the quarter was very large. Monthly averages of daily figures for adjusted to exclude the effects of borrowed reserves are total reserves Federal Reserve. Excess reserves are June. member banks. Total and nonborrowed reserves are changes in reserve requirement percentages. Non adjusted minus member bank borrowings from the total reserves less required reserves. Latest figures, FINANCIAL DEVELOPMENTS, Q2 1971 641 Reflecting the impact of these various forces, yields on new corporate issues rose about one-half of a percentage point, and somewhat larger advances were recorded in yields on other types of bonds. Advances in short-term market rates were considerably larger— the market rate on 90-day Treasury bills, for example, increased about 150 basis points from the last week in March to the last week in June— so that the wide spreads formerly prevailing between short- and long-term rates narrowed some what. Despite continued weakness in business loan demands, banks also raised the rates charged on loans to their prime customers, apparently in response to the general uptrend in open market rates that had the effect of raising marginal costs of bank funds. Advancing a quarter of a percentage point early in the quarter, the prime rate was raised a further half a point to 6 per cent by a few banks in late June and this higher rate was generally adopted by early July. With money market rates and bank prime rates up substantially, Federal Reserve Bank discount rates were raised one-quarter of a percentage point to 5 per cent in midJuly in order to bring the cost of such borrowing at these banks into better alignment with the cost to banks of obtaining funds from other sources. AGGREGATES The monetary aggregates continued to expand at a strong pace in the second quarter of 1971. In particular, the narrowly defined money stock (M i) displayed a very sharp advance, rising at an annual rate of about 11 per cent. This rate of increase was 2 percentage points larger than in the first quarter when a catch up in money demands from the low growth of late last year was an important explanatory factor. The unusually rapid rate of increase was apparently attributable in part to increased demand to hold money balances in view of uncertainties regarding financial developments and the economy generally. Primarily, however, the increase reflected the impact on transaction de mands for money of the substantial expansion in expenditures that occurred in both the first and second quarters of the year and the lagged response of consumer demands for money to the sharp earlier decline of market interest rates. For the first and second quarters combined, Mi increased at an annual rate of 10 per cent, closely paralleling the rate of expansion in nominal GNP from the fourth quarter of 1970 to the second quarter of 1971. 642 FEDERAL RESERVE BULLETIN □ AUGUST 1971 CONCEPTS OF MONEY RATIO SCALE, BILLIONS OF DOLLARS f ' . ■ . Ifl 700 s ' 640 ■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■I 460 420 ______________________ 380 220 200 1 1 I Seasonally adjusted monthly averages. For definitions of M v M .„ and M v see footnote 1 to Changes in Selected Monetary Aggregates table. Growth in broader measures of money balances that include interest-bearing deposits (other than large negotiable certificates of deposit, which are really money market instruments) receded considerably from the exceptionally rapid rate of advance in the first quarter. Growth in the time and savings deposit components of these measures, while still quite strong in comparison with historical standards, was limited by the rise in interest rates on competing market instruments, as well as by the scattered reduc tions that banks made early in the quarter in rates paid on such deposits. In addition, it seems likely that the massive reinter mediation— the shift back into deposit accounts at thrift institu tions from market securities, which represented a reversal of transactions undertaken during the tight money period of 1969 and early 1970— had largely run its course by the end of winter. Sales of CD’s picked up in the last 2 months of the quarter after showing little change following their January bulge. This May-June strengthening was apparently in part a reflection of corporate demands for short-term liquid assets encouraged by bank efforts to compete more vigorously for CD’s. Growth in CD’s was also stimulated to some extent by the side effects of the international financial crisis in early May. Following that crisis a substantial volume of dollar holdings accumulated by FINANCIAL DEVELOPMENTS, Q2 1971 643 CHANGES IN SELECTED MONETARY AGGREGATES Percentage annual rates of change, seasonally adjusted 1970 Item 1971 II III IV I Member bank reserves: Total.......................................... Nonborrowed............................ 2.6 4.1 19.1 24.4 6.6 9.4 11.0 11.0 6.6 5.3 Concepts of money1 Mi.............................................. M2.............................................. m 3.............................................. 5.8 8.4 7.9 6.1 11.0 10.3 3.4 9.2 9.7 8.9 17.8 19.0 11.3 12.6 14.8 Bank credit2 Bank credit proxy adjusted....... 6.5 17.2 8.3 10.9 6.5 1.7 8.5 4.3 1.8 .8 in billions of dollars, seasonally adjusted): Large CD’s ................................ II memo (change 1 M i is currency plus private demand deposits adjusted. M 2 is M i plus bank time and savings deposits adjusted other than large CD’s. M 3 is M 2 plus deposits at mutual savings banks and savings and loan associations. 2 Total member bank deposits plus funds provided by Euro-dollar borrowings and bank-related commercial paper. N o t e .—Changes are calculated from the average amounts outstanding in the last month of each quarter. international financial institutions was used to acquire CD’s. Nevertheless, despite the end-of-quarter pick-up, the net increase in CD’s fell short of the first-quarter expansion. This shortfall, along with a decline in U.S. Treasury balances and a further sharp decline in nondeposit sources of funds (chiefly in Euro dollar borrowings), reduced the rate of expansion in the adjusted bank credit proxy to a seasonally adjusted annual rate of 6.5 per cent, about AVt. percentage points below the first-quarter rate of growth. COMMERCIAL BANK USES OF FUNDS With lendable funds readily availabie while demands for business loans remained relatively weak, commercial banks continued to channel a large volume of funds into securities. Total investments increased by somewhat more than $5 billion in the second quarter; although about $3.5 billion less than the extraordinary first-quarter increase, this was still large by his torical standards. As in the first quarter, municipal securities and Federal agency issues accounted for about two-thirds of the expansion. The growth that occurred in holdings of U.S. Gov ernment securities resulted mainly from bank participation in the underwriting of the Treasury’s late June sale of 1 6 ^ -month 644 BANK C R E D IT - c o m p o n e n t s U.S. GOVT. SECURITIES OTHER SECURITIES TOTAL LOANS Seasonally adjusted. Loans adjusted for transfers between banks and their holding companies, affiliates, subsidiaries, or foreign branches. B A NK L O A N S - m ajo r co m p o n e n ts Seasonally adjusted. Adjusted for transfers between banks and their holding companies, affiliates, sub sidiaries, or foreign branches. FEDERAL RESERVE BULLETIN □ AUGUST 1971 notes carrying a 6 per cent coupon for which payment could be made by crediting Government deposits at banks. The rate of expansion of total loans slowed to some extent in the second quarter, mainly due to a reversal of the earlier sharp rise in security loans. Growth in business loans remained quite modest by historical standards, but real estate loans ex panded at a faster pace than the already strong rate of increase established in the first quarter. Consumer loan growth was also stronger than in the first quarter. The continued strength in real estate loans reflects the sustained recovery in residential con struction that reached boom proportions late last year, while the further rise in consumer loans is attributable to continued strength in purchases of durable goods by consumers, following the first-quarter resurgence in such purchases after settlement of the auto strike. ~ t t . Growth in business loans over the second quarter, at an , r , , . annual rate of about 3 per cent, continued the general pattern of sluggishness in such credit demands that began in the latter half of last year. The same factors that dampened business loan developments in the past still appear to have been at work. Balance sheet restructuring by large business firms continued, as an additional substantial volume of long-term debt and equity instruments were sold; some of the proceeds of these financings were used to repay short-term debt and to meet other current bills that otherwise would have been financed with bank loans and other short-term sources of funds. In both the first and second quarters, moreover, the pick-up in corporate profits ac companying the cyclical recovery served to reduce the over-all need for external sources of funds in an environment where busi ness capital spending had leveled out and inventory investment remained quite moderate. Over recent quarters, business loan demands at smaller com mercial banks have not displayed the weakness experienced by large commercial banks. This contrasting experience reflects differences in the nature of loan demands facing the two groups of banks. Principal business customers of the smaller banks are generally smaller firms that may not experience the same fluctua tion in inventory positions as large corporations. In addition, they do not have the option of obtaining a major part of their external funds from the capital market, and hence would not have been repaying short-term debt in volume out of nonbank fund sources. FINANCIAL DEVELOPMENTS, Q2 1971 NONBANK INTERMEDIARIES AND THE MORTGAGE MARKET NONBANK SAVINGS ACCOUNTS Mil Seasonally adjusted. 645 Deposit growth at nonbank thrift institutions slowed to an annual rate of 17 per cent in the second quarter of 1971 from the ex traordinarily high 23 per cent rate evident in the first quarter. However, the second-quarter rate still exceeded by a wide margin that for any quarter of 1970. While consumer savings continued to increase, as evidenced by the slight rise in the personal saving rate from the first to the second quarter of 1971, the upturn in yields on competing short-term investments was probably a factor in the moderation of savings growth at deposi tary institutions. The tapering of the reintermediation process also affected nonbank savings deposit growth. Savings and loan associations used part of the funds they had acquired in the first quarter to repay advances from the Federal home loan banks, but both their new commitments and mortgage acquisitions increased faster than in the first 3 months of the year. Although mutual savings banks also increased their mort gage activity, they continued to invest heavily in corporate bonds as well, as yields on such issues rose appreciably from April to June. Over the first 6 months of 1971, corporate security invest ments accounted for about three-fifths of the over-all net increase in mutual savings bank assets, a substantially higher proportion than the average for the first half of 1969 or 1970. Net mortgage debt formation increased at a record quarterly rate of $9.1 billion, seasonally adjusted, during the second quarter of 1971. Reflecting the sharply accelerated pace of housing and related activity, net expansion of residential mortgage debt reached a new high; but the pace of nonresidential mortgage debt formation slowed somewhat from the record first-quarter rate. As in the previous quarter, savings and loan associations provided the greatest impetus to the over-all expansion, although the other major depositary institutions were also quite active. NET CHANGE IN MORTGAGE DEBT OUTSTANDING In billions of dollars, seasonally adjusted quarterly data 1970 1971 Item Total.............................................. Residential................................. Other1....................................... II III IV I IIe 5.7 4.2 1.5 7.1 5.3 1.8 7.6 5.4 2.3 8.2 5.7 2.6 9.1 6.9 2.2 1 Includes commercial and other nonresidential as well as farm properties. e Partly estimated. N o t e .—Details may not add to totals because of rounding. 646 FEDERAL RESERVE BULLETIN □ AUGUST 1971 For the second consecutive quarter, the Federal National Mortgage Association reduced its gross mortgage holdings. However, a sharp increase in commitment activity by FNMA during the second quarter suggests that support for the mortgage market from that agency is likely to be increasing in the near term. FUNDS RAISED IN SEC U R ITY M ARKETS The volume of new corporate security issues declined in the second quarter from the record level in the first quarter. Public issues of corporate bonds moderated, as many large firms had apparently completed their restructuring requirements in the fall and winter months. However, private placements rose as cash flows at insurance companies improved this year. Further more, new equity issues were at a record level in the second quarter, despite the lack of vigor in the stock market during May and June. New offerings of stocks came from a wide variety of industries, but utilities represented about one-third of the total. Offerings of long-term debt by State and local governments in the April-June period also fell below the peak first-quarter volume, but volume has now been at a monthly-average level of $2 billion or more for three quarters. A large backlog of con struction needs and a desire to fund some of the unusually large amount of outstanding short-term debt have contributed to the demand for long-term funds by State and local units. OFFERINGS OF NEW SECURITY ISSUES Monthly average in billions of dollars, not seasonally adjusted 1970 Item 1971 ii III IV I II« Corporate securities—Total.......... Bonds........................................ Stocks........................................ 3.5 2.8 .7 2.9 2.3 .6 4.0 3.1 .9 4.1 3.3 .8 3.9 2.8 1.1 State and local government bonds. 1.2 1.5 2.0 2.2 2.0 e Estimated. The Federal budget was in surplus, as is usual in the second quarter of the calendar year, but the surplus was less than onefifth as large as that of the period a year earlier. Receipts were slightly below those of the year-earlier quarter, while expendi tures were up almost 11 per cent. FINANCIAL DEVELOPMENTS, Q2 1971 647 Total net borrowing by the U.S. Government from the public was unchanged from that of the previous quarter, but the Treas ury was able to rebuild its cash balance over the 3-month period due partly to the sale of special issues to foreign central banks in May. Large paydowns of debt by the Federal home loan banks resulted in net repayment of debt by the federally sponsored credit agencies during the quarter. FEDERAL GOVERNMENT BORROWING AND CASH BALANCE . Quarterly totals in billions of dollars, not seasonally adjusted 1970 Item II III IV I II - 7 .8 - 8 .9 - 8 .2 1.6 7.4 1.2 8.9 - .7 1.6 2.9 1.6 1.2 1.1 .8 .7 - 3 .6 4.3 1.5 1.6 1.5 - 1 .0 - .9 Budget surplus or deficit............... 8.7 New cash borrowings, or repay ments (—) - 6 .4 Other means of financing i ............ - 1 .2 Change in cash balance................ 1971 m em o : *Net borrowing by federally sponsored credit agencies2. . . 1 Checks issued less checks paid and other accrued items. 2 Includes debt of FHLBB, the Federal Home Loan Mortgage Corporation, Federal land banks, Federal intermediate credit banks, banks for cooperatives, and FNMA (including discount notes and bonds guaranteed by the Government National Mortgage Association). INTEREST RATES Money market conditions tightened appreciably in the second quarter of 1971. Commercial banks raised the prime rate, in two steps, back to the 6 per cent level prevailing early in the year. Rates on Treasury bills, Federal funds, and commercial paper increased more than 100 basis points from late March through June. By the end of June, the 90-day Treasury bill yield, for example, had returned to the 5 per cent level, well above the 1971 low of 3.32 per cent reached in mid-March but still far below the December 1969 high— which was close to 8 per cent. In mid-July, the Federal Reserve raised the discount rate to 5 per cent, in order to bring the rate into closer alignment with other market rates, to assist in holding down inflationary pressures, and to discourage member bank borrowing at the discount win dow. Such borrowing began to rise sharply in June and amounted to almost $1 billion in mid-July, as contrasted to a level of about $250 million at the end of the first quarter. Accompanying the sharp increase in short-term interest rates was a smaller rise in long-term rates. In June monthly-average INTEREST RATES Monthly averages except FHA (based on quotations for one day each m onth). Yields: U.S. Treasury bills, market yields on 3-month issues; prime commercial paper, dealer offering rates; FHA, weighted averages of private secondary market prices of new-home 30-year mortgages converted to annual yield (dashed line indicates period of adjustment of change in contractual interest rate); corporate bonds, weighted averages of new publicly offered bonds rated Aaa, Aa, and A by Moody’s Investors Service and adjusted to an Aaa basis; U.S. Govt, bonds, market yields adjusted to 20-year constant maturity by U.S. Treasury; State and local govt, bonds (20 issues, mixed quality), Bond Buyer. yields on 20-year Government bonds and new high-grade cor porate bonds were 44 basis points higher than in March. Yields on new corporate issues of highest quality were close to the 8 per cent level by the end of June. This represented a reversal of the first-quarter decline in yields, but these rates were still only about 30 basis points higher than the 1970 low. Interest rates on tax-exempt bonds rose almost 80 basis points over the second quarter with the long-term end of the market particularly affected by a slackening of acquisitions by commercial banks and casualty insurance companies. Reflecting the rising level of other long term rates, yields on FHA mortgages in secondary markets had risen 57 basis points from March through June. Since flows of funds to mortgage lenders remained ample, however, rates on conventional mortgages did not show a corresponding rise. The average contract rate on conventional first mortgages reached 7.70 per cent in June, only 10 basis points above the March level. □ 648 Staff Economic Studies The research staffs of the Board of Gover nors of the Federal Reserve System and of the Federal Reserve Banks undertake studies that cover a wide range of economic and financial subjects , and other staff members prepare papers related to such subjects. In some instances the Federal Reserve System finances similar studies by members of the academic profession. From time to time the results of studies that are of general interest to the economics profession and to others are summarized— or they may be printed in full— in this section of the B u l l e t i n . In all cases the analyses and conclusions set forth are those of the authors and do not necessarily indicate concurrence by the Board of Governors , by the Federal Reserve Banks, or by the members of their staffs. Single copies of the full text of each of the studies or papers summarized in the B u l l e t i n are available in mimeographed form. The list of Federal Reserve Board publications at the back of each B u l l e t i n includes a separate section entitled (<Staff Economic Studies” that enumerates the stud ies for which copies are currently available in that form. Study Summaries A TEST OF THE “ EXPECTATIONS HYPOTHESIS” USING DIRECTLY OBSERVED WAGE AND PRICE EXPECTATIONS Stephen J. Turnovsky, University of Toronto, and Michael L. Wachter, University of Pennsylvania This paper was prepared under a grant from the Social Science Research Council in connection with a continu ing study of the impact of monetary policy directed by the SSRC Subcommittee on Monetary Research. This research effort is sponsored by the Board of Governors of the Federal Reserve System. The paper was presented at a conference of the Subcommittee, Washington, D.C., April 30, 1971. Recent research directed at improving the theoretical underpinning of the Phillips curve relationship has given rise to several new models of wage determination. One theory that has received considerable atten tion is the “expectations hypothesis,” which suggests that money wages depend upon ex pectations of future prices and/or money wages, as well as the unemployment rate. The absence of money illusion implies that these expectational variables should enter the wage equation with a coefficient equal to unity. This in turn would imply the absence of a long-run money wage-unemployment trade-off or equivalently the existence of a long-run, vertical Phillips curve that passes through the “natural” rate of unemployment. Unfortunately, direct observations on ex pectations are not widely available and so a proxy variable needs to be substituted for the expectations variable. In the literature, the typical solution to this problem is to assume that expectations of price and/or money wage changes are generated by a distributed lag on past values of these variables. In this paper, direct survey data on price and wage expectations are introduced. This is done with a twofold objective. First, the expecta 649 650 FEDERAL RESERVE BULLETIN □ AUGUST 1971 tions data are used directly as explanatory variables in wage equations to test the expec tations hypothesis. Second, an attempt is made to explain the wage expectations series. The major results of the paper are as fol lows: First, expectations of wage or price changes are important in explaining the be havior of actual wage changes. Second, the size of the response of actual wage changes to the expectations variable is largely invari ant with respect to the specification of the wage equation. The average response is ap proximately 0.35, with a small variance, and a range of approximately ±0.15. This is considerably less than the coefficient of unity, which is the value required for con firmation of the neoclassical expectations hy pothesis. Finally, attempts to explain the wage expectations series show that the simple adaptive or extrapolative expecta tions hypothesis is not satisfactory. A more general model— which posits that expected wage changes are a function of unemploy ment, of unemployment lagged one period, and of expected price changes (or actual price changes)— is much more successful. The coefficients suggest that expectations (in keeping with the expectations model) are largely formed in real terms, but that these real wage expectations are generally constant over the postwar period. This latter result follows from the fact that the sum of the coefficients on the two unemployment terms is approximately zero. □ MORTGAGE REPAYMENTS AS A SOURCE OF LOANABLE FUNDS Robert Moore Fisher— Staff, Board of Governors Prepared as a staff paper and completed in the summer of 1971 This paper explores the subject of repay ments to lenders of principal on outstanding mortgages— a flow of funds amounting to several billion dollars each month. Graphic, tabular, statistical, and descriptive ap proaches are used to analyze the influence of major shifts in monetary policy on fluctua tions in mortgage repayments. Cyclical changes in these repayments are significant not only because they provide a variable flow of funds available for new mortgage lending but also because they affect earnings of mort gage lenders that compete for savings. Also discussed are the impact on sched uled amortization of original interest rate and maturity terms and the effect on un scheduled prepayments of subsequent changes in availability and cost of credit on new mortgages. Sources of data include statistics for repayments on mortgages held by insured savings and loan associations, mutual savings banks, reporting life insur ance companies, and the Federal National Mortgage Association and on mortgages in sured by the Federal Housing Administra tion. Trends in scheduled amortization are compared with those in unscheduled prepay ments for all mortgages held by New York State mutual savings banks and for all out standing home mortgages insured by the FHA. The study indicates that mortgage repay ments during recent decades have provided a flow of funds to savings and loan associa tions and mutual savings banks that has often been larger and usually more stable than net savings flows and has invariably been positive. However, the impact of changes in monetary policy on net savings flows has been reinforced by cyclical swings STAFF ECONOMIC STUDIES in unscheduled mortgage prepayments, which were quite low in 1970. Meanwhile, scheduled amortization rates on outstanding loans have tended downward secularly with long-run increases in interest rates and ma turities on newly originated mortgages. With prepayments as well as scheduled amortiza 651 tion depressed in 1970, total mortgage re payment rates were reported to be the lowest in several decades. Thus, lenders were able to improve their portfolio earnings only to a limited degree by replacing older loans as repaid with new loans at the postwar high levels of interest rates reached in 1970. □ Statements to Congress Statement by Arthur F. Burns, Chairman, Board of Governors of the Federal Reserve System, before the Committee on Banking and Currency, House of Representatives, July 2 0 ,1 9 7 1 . Developments over the past year or so have underscored the need for standby authority for Government guarantees of loans to business firms in emergencies where the alternative could be severe damage to the national economy. We hope that such guarantees will be needed only rarely, if at all. But in the light of recent experience, the prudent course is to put in place loan guarantee machinery, to provide better pro tection against the risk that a temporary liquidity problem of one business enterprise may grow into a major national problem. One example of how this could happen came in mid-1970. The insolvency of the Penn Central Transportation Company, a prominent borrower in the commercial paper market, was followed by a sharp con traction of credit in that market. Since commercial paper is unsecured, investors backed away from other issuers about whom there was any question. Concern spread through other credit markets, fed by fears that some firms with maturing commercial paper might be unable to obtain refinancing from alternative sources and would thus be forced into bankruptcy. With investors gen erally becoming more cautious, companies with credit ratings less than Aaa experienced increasing difficulty in borrowing through N o t e .-Chairman Burns delivered a similar state ment. to the Committee on Banking, Housing and Urban Affairs, U.S. Senate, June 16, 1971 ( B u l l e t in of June 1971, pp. 491-94). the bond market, as was evidenced by the sharp widening of spreads in the structure of corporate bond yields. In short, there appeared to be a risk of bankruptcies spreading to firms that in other circum stances would be regarded as perfectly sound. Confronted with an incipient crisis, the Federal Reserve System acted promptly to assure the availability of loanable funds to meet the credit needs of firms that were being squeezed by the contraction of the commercial paper market. First, the System made it clear to member banks that the dis count window would be available to assist them in meeting such needs. Second, the Board of Governors suspended ceilings on the rates of interest that member banks could pay on certificates of deposit of $100,000 or over. In this way banks were placed in a much better position to attract funds to lend to their hard-pressed customers. These two actions helped to restore con fidence, and fear of a liquidity crisis abated. We can all take comfort from the fact that the money and credit markets met the tests of mid-1970 successfully. Looking ahead, however, we need better assurance that tem porary liquidity problems of major corpora tions will not be allowed to damage the na tional economy. Congress is now considering this issue in connection with the pressing financial dif ficulties of another business enterprise, the Lockheed Aircraft Corporation. In testify ing today, it is certainly no part of my pur pose to suggest that Congress delay its deci sion about Lockheed. My aim is rather to recommend that your committee, with Lockheed fresh in mind, address itself to 653 654 FEDERAL RESERVE BULLETIN □ AUGUST 1971 the question of devising more general stand ards and procedures to govern credit guar antees in possible future emergencies. The Board of Governors of the Federal Reserve System believes there are several guiding principles that should be followed in designing such assistance. First, assist ance should be reserved for those rare instances where it is needed to enable a sound enterprise to continue to furnish goods or services to the public, and where failure to meet that need could have serious consequences for the Nation’s output, em ployment, and finances. Second, since the assistance is designed to protect the public interest, it follows that it should not be used simply to protect large firms from failure, or to bail out bad management, or to shield creditors or share holders from the consequences of unwise investments. Guarantees should be a last resort, issued only when there is reasonable assurance of repayment of the guaranteed loan and when there is no other way to avoid serious injury to the economy. Since any such guarantee would be subject to condi tions assuring a preferential status for the Government relative to other creditors or shareholders in the event of insolvency, and since guarantees would be available only in emergencies, the existence of the authority should not in any real sense erode the dis ciplines of the private enterprise system. Rather, it should be regarded as a kind of insurance policy to protect the general public against a highly specialized risk. Third, assistance should be provided through Federal guarantees of private loans rather than through outright advances of public funds. Aside from its obvious budget savings, this approach would have the advantage of assuring that experienced private lending officers will administer the loans in accordance with Federal guidelines and supervision. Fourth, to assure thorough and wellbalanced consideration of the need for assistance, responsibility for passing on guarantees should be vested in top Federal officials concerned with over-all economic and financial policy. We suggest that this function be vested in a board chaired by the Secretary of the Treasury, with the Secre tary of Commerce and the Chairman of the Board of Governors of the Federal Reserve System as members. No permanent staff would be required, since guarantees would be issued only under exceptional circum stances, and staff could be assigned as needed from the governmental units repre sented on the board. Thus, no bureaucracy would be created with an interest in expand ing the “program.” There would be no “pro gram”— only standby authority, ready for use in the event of need. Fifth, Congress should be informed in advance of any proposed guarantee, so that it will have an opportunity to review the proposal to the fullest extent consistent with the need for prompt action. These principles are embodied in a bill, H.R. 8962, submitted to the Congress by the Board of Governors of the Federal Reserve System and introduced by Chairman Patman by request. The bill approved by the Senate Committee on Banking, Housing and Urban Affairs follows the same general pattern, except for the make-up of the Emergency Loan Guarantee Board. Both the Senate bill and H.R. 8962 provide for a three-man board, with the Secretary of the Treasury as Chairman and the Chairman of the Board of Governors of the Federal System as a member. They differ, however, as to the third member. Under H.R. 8962, the other member would be the Secretary of Commerce, but under the Senate bill he would be the President of the Federal Re serve Bank of the district in which the pro spective borrower is located. In the unlikely STATEMENTS TO CONGRESS event that two or more applications were pending at one time involving borrowers in different Federal Reserve districts, the make up of the board would be uncertain. Per haps arrangements could be worked out to divide the board’s responsibilities so that each of its actions would be related to a particular application, with one of the three members changing according to the bor rower’s location. But such arrangements would make it difficult to achieve a con sistent policy in passing on guarantee ap plications. The Board of Governors strongly prefers the provisions of H.R. 8962 in this respect. I can well understand that Members of Congress may be concerned about possible abuse of the guarantee authority, and insist therefore on safeguards to ensure careful evaluation of proposed guarantees. Both H.R. 8962 and the Senate bill include such safeguards. Under either bill we can antici pate very limited use of guarantees. Both bills avoid the creation of a new bureaucracy which might develop an interest in drum ming up business. Both bills provide for advance notice to Congress before a guar antee may be issued, to assure an opportu nity for congressional review. Both bills assure that the new board will have the benefit of the independent judgment of the Chairman of the Board of Governors of the Federal Reserve System. Both bills also recognize the key role of the Secretary of the Treasury by designating him as chairman of the new board. If Con gress objects to having two Cabinet officers serving as members of the board, perhaps the Chairman of the Securities and Ex change Commission, an independent agency, should be considered as an alternative to the Secretary of Commerce. But the Senate bill would allot two votes on the new board to officials of the Federal Reserve System who are to serve in an individual capacity, 655 while providing only one vote to the admin istration official who serves as chairman. Thus it would create confusion as to whether the administration or the Federal Reserve System should be held accountable for the new board’s actions. Both the administration and the Federal Reserve System would be given the appearance of responsibility with out the authority to exercise it. In other respects the bill reported to the Senate carries out the general recommenda tions of the Board of Governors. Whatever decision is reached about Lockheed, we hope that it will be possible for Congress to agree upon a longer-range solution along the lines of H.R. 8962, or the Senate bill with the amendment we suggest. Experience has demonstrated the need for this kind of protective umbrella for our economy. Statement by Arthur F. Burns, Chairman, Board of Governors of the Federal Reserve System, before the Joint Economic Com m ittee , July 2 3 ,1 9 7 1 . I am pleased to meet with you again today to report the views of the Board of Gover nors of the Federal Reserve System regard ing the state of the economy at midyear. Since I last appeared before this com mittee on February 19, it has become evident that a cyclical recovery of our economy has commenced. Indicators of future business activity, which were already rising in the latter part of 1970, have strengthened fur ther. Comprehensive measures of current activity— such as the physical volume of industrial production, total employment, re tail sales adjusted for price changes, and total real output of goods and services— have shown moderate improvement as the year has progressed. We are confident that this recovery process will continue and broaden in the months to come. 656 FEDERAL RESERVE BULLETIN □ AUGUST 1971 Nonetheless, some of the economic prob lems that have troubled us as a people over the recent past are still much in evidence. Large increases in wages and prices persist in the face of extensive unemployment of labor and capital. The international balance of payments remains unsatisfactory; indeed, our fragile export surplus has disappeared in recent months. In financial markets, interest rates are responding to fears of con tinued high rates of inflation by moving up again despite rapid monetary expansion. And while business profits have improved somewhat, they remain exceptionally low. The cost-push inflation we are experienc ing, and the widespread concern over con tinued rapid inflation, are a grave obstacle to the full economic improvement we all ardently seek. As long as inflation persists, consumers are likely to remain rather con servative in their spending plans, fearing the possibility of budgetary overcommitment. As long as inflation persists, businessmen are likely to remain cautious in their investment policies, apprehensive that profit margins may erode despite higher prices. As long as inflation persists, financial investors will re main reluctant to commit funds to long-term securities unless they are compensated by a higher interest rate. Expectations of inflation thus permeate the gamut of private decisions to spend and invest, and this is restraining the private efforts needed for vigorous and sustained economic recovery. A year or two ago it was generally ex pected that extensive slack in resource use, such as we have been experiencing, would lead to significant moderation in the in flationary spiral. This has not happened, either here or abroad. The rules of econom ics are not working in quite the way they used to. Despite extensive unemployment in our country, wage rate increases have not moderated. Despite much idle industrial capacity, commodity prices continue to rise rapidly. And the experience of other in dustrial countries, particularly Canada and Great Britain, shouts warnings that even a long stretch of high and rising unemploy ment may not suffice to check the inflation ary process. I shall return to the causes and implica tions of this new rigidity in our economic structure at a later point. Let me turn first, however, to a brief review of economic developments during the first half of 1971, and to the supportive role that public policy has played— and will continue to play— in the evolving economic recovery. RECENT ECONOMIC DEVELOPMENTS The performance of the economy during the first half of 1971 is not easy to interpret be cause many crosscurrents are always present in the vicinity of a cyclical turning point. In addition, the rebound from the extended auto strike last fall and the accumulation of steel inventories in anticipation of a possible strike this summer have been distorting the underlying trend. Abstracting from these transitory influ ences, the record of the first half of 1971 is one of gradual, but quickening, recovery. Late last year, only the construction industry exhibited significant strength, as the sharp recovery in residential building that began in the spring was joined by renewed ex pansion in the construction programs of State and local governments. Early this year consumer spending began to improve, with increases of sales spreading to a wide variety of consumer items. The sales of retailers other than automobile dealers rose at about a 10 per cent annual rate in the second quarter— considerably more than normal and well above the rise in consumer goods prices. Recently, activity in our factories has also been stepped up, especially in con sumer goods lines. The index of industrial production, adjusted to exclude autos and STATEMENTS TO CONGRESS steel, rose at a 6 per cent annual rate be tween March and June. The improving trend of business is being supported by a faster rate of growth in personal incomes. During the 3 months from March through May, total personal income rose at an annual rate of 8 per cent, com pared with a 6 per cent rate over the previ ous 6 months. Governmental transfer pay ments, which have been contributing to re cent income growth, were particularly large during June when the retroactive increase in social security benefits was paid. The flow of private wage and salary payments has also quickened, in response to some gain in manhours worked as well as to continued large increases in wage rates. And while employers have not yet re-entered the labor market for appreciable numbers of new em ployees, further business improvement should soon lead to faster employment growth also. Inventory investment promises to supply an added source of economic impetus in the months ahead, after allowance for a prob able rundown in steel stockpiles. Thus far in the recovery, there has been little accumula tion of inventories, apart from the restocking by automobile dealers and strike-hedge buy ing by steel merchants and users. But with business sales rising, and the ratio of inven tories to output and to sales declining in many lines, we are coming closer to the time when needs for larger inventories— of raw materials, work in process, and finished goods— will begin to express themselves. The adjustment of stocks to higher levels of activity will in turn generate further in creases in output, employment, and incomes. This is a common element in cyclical re coveries, and I judge that we are approach ing that point in the current recovery proc ess. There are grounds for concern, nonethe less, with regard to some features of the re 657 covery now underway. First, there is little evidence as yet of any material strengthen ing in consumer or business confidence. Recent surveys of consumer attitudes show only modest improvement, while uneasiness appears to persist among many businessmen and investors regarding the effects of con tinuing rapid increases in labor costs on future profitability. Confidence is likely to strengthen with the passage of time, as sales and employment conditions improve. But there is a danger that hesitation and uncer tainty will continue on an extensive scale until significant progress is made in moderat ing inflation. Greater success in the battle against inflation is probably the most impor tant single prerequisite of more rapid and enduring economic expansion. Second, our international competitive position appears to have deteriorated. In the first 5 months of 1971, imports spurted and our normal trade surplus vanished. This is a distressingly poor performance in an economy experiencing substantial under utilization of its resources of labor and capital. The problem is dramatized by the success of foreign manufacturers in captur ing a rapidly expanding share of our auto mobile market. In the past 6 months, sales of foreign models have accounted for 16 per cent of total U.S. sales and, in addition, close to one-tenth of the American models sold were produced in Canada. It may be tempting to react to foreign competition by imposing added restrictions and quotas on imports, but such a policy would not serve our national interests. The constructive course is to bring inflation under control and to stimulate our businessmen to increase their penetration of the expanding markets abroad and to compete more effectively with foreign producers in our domestic markets. I would favor consideration of new Govern ment incentives toward this end. Third, there is as yet no evidence of re 658 FEDERAL RESERVE BULLETIN a AUGUST 1971 surgence in business capital spending pro grams. New orders for capital equipment show little— if any— recovery from the 1970 lows when allowance is made for rising prices. Construction contract footage for commercial and industrial buildings remains far below earlier highs. Official surveys of business spending plans for plant and equip ment show no increase, even in dollar terms, for the remainder of this year. The hesitation in business investment may reflect the sizable amounts of unused capacity that presently exist. But it also results, I believe, from low business profits and uncertainty about the profit outlook. History indicates rather clearly that a vigorous, sustained economic recovery requires a strengthening trend in business capital investment. We need to encourage business firms to undertake new capital investment; and I strongly supported, therefore, the liberaliza tion of depreciation allowances recently adopted by the Treasury. I have also en dorsed the general proposition that an in vestment tax credit be adopted permanently. At the moment, however, I am doubtful about the wisdom of restoring the invest ment tax credit— or of taking other stimu lative fiscal actions— in view of the state of the Federal budget. In the fiscal year just ended, the budget deficit was in excess of $20 billion. It will remain very large in fiscal 1972. Many influential citizens in the busi ness and financial community view this sit uation with alarm, so that these large budget deficits have become an important psy chological factor contributing both to in flationary expectations and to high interest rates. A large part of the budget deficit is, of course, attributable to the shortfall in tax receipts stemming from sluggishness in the economy. Some expenditures, notably on unemployment insurance and welfare, have risen for this same reason. Even taking these factors into account, however, the Federal budget is more stimulative now than a year or two ago. The President submitted in Jan uary a moderately expansive budget for fiscal 1972, and since then the net effect of congressional actions has been to make it more stimulative. Social security benefits have been liberalized, retroactive to the first of the year, and the scheduled increase in social security taxes postponed for a year. The public service employment bill has be come law, and it appears probable that the military pay raise bill will be larger than the budget proposals. These and other actions, along with increases in the so-called uncontrollable items in the budget, as Chair man McCracken reported to you, have served to raise estimated expenditures $5 billion above those originally proposed for fiscal 1972, and to reduce estimated receipts by some $2 billion. I would not want to rule out additional fiscal stimulus if the recovery in the economy should prove to be well below normal pro portions, particularly if such a move were preceded or accompanied by a more effec tive incomes policy. But I would urge cau tion at the present time. Once confidence becomes stronger, we may find that there is enough fiscal stimulus already at work. And in any case, the fear of inflation is much too great, and its potential effect on private behavior too negative, to run the risk of taking new fiscal actions that would now seem imprudent. Let me turn next to monetary policy, and to the substantial contribution it has made to stimulating economic activity over the past year. The shift toward monetary expansion early in 1970 was rather promptly followed by a resurgence in bank deposits and in the flow of funds to other financial intermedi STATEMENTS TO CONGRESS aries. As financial institutions rebuilt their liquidity, they became more eager lenders, the availability of credit increased greatly, and interest rates declined. As a result, hous ing starts rebounded and State and local government construction began to rise more briskly. More receptive credit markets also enabled our business corporations to issue new securities in record volume, thereby re building their liquidity and putting them selves in a financial position to expand pro duction and the capital investment that they may wish to carry forward later on. Late last year, as this committee knows, there was a marked decline in the rate of expansion of the narrowly defined money supply— that is, currency plus demand deposits. In these circumstances, a brief period of more rapid expansion in the money supply to compensate for the fourth quarter shortfall seemed appropriate. The System, consequently, provided bank reserves lib erally over the winter months, and interest rates— partly reflecting the increased supply of reserves— declined sharply further. Ex pansion of the narrowly defined money sup ply rose to a 9 per cent annual rate during the first quarter of this year; but the average growth rate for the fourth and first quarters combined, being little more than 6 per cent, remained very close to the earlier trend in 1970. This March and April, the Federal Re serve System faced a dilemma. Information available at that time suggested that high rates of monetary growth might well persist under existing conditions in the money market. Interest rates, however, were already displaying a tendency to rise, and vigorous action to restrain monetary growth might have raised them sharply further. In view of the delicate state of the economic recovery, which was just getting underway, it seemed desirable to prevent the possible adverse effects of sharply higher interest rates on 659 expenditure plans and public psychology. The Federal Open Market Committee decided, therefore, to move very cautiously toward restraining the growth of the mone tary aggregates. With the benefit of hindsight, I now feel that stronger action was warranted this spring. For, as matters turned out, we ex perienced even faster monetary growth in the second quarter than had been antici pated, while interest rates also moved sub stantially higher. Present estimates indicate that the narrowly defined money supply rose at an annual rate of 11 per cent in the second quarter. However, growth in a more broadly defined money supply— that is, currency, plus demand deposits, plus commercial bank time deposits other than large denomination CD’s— receded from an annual rate of 18 per cent in the first quarter to a rate of 13 per cent in the next 3 months. It is worth noting also that bank credit ex pansion has been considerably more re strained than growth in any of the measures of the money supply. Total bank credit rose at a 12 per cent annual rate during the first quarter and then dropped to a 7 per cent rate in the second. It may be that the recent high growth rates in money balances, besides being a lagged response to the lower interest rates of this past winter, reflect some of the un certainties of the general public about the economic situation. To the extent that this is true, the inclination to hold unusually large money balances should subside as economic recovery becomes more evident. In any event, it is clear that recent mone tary growth rates are higher than is neces sary or desirable over any length of time to sustain healthy economic expansion. The Federal Reserve has, therefore, already taken some steps to reduce the growth rate of bank reserves and thereby promote a more moderate rate of monetary expansion. 660 FEDERAL RESERVE BULLETIN □ AUGUST 1971 These actions are partly responsible for the recent rise in interest rates— particularly interest rates on very short-term market securities. But it should be kept carefully in mind that the rise in interest rates since March has occurred despite rapid rates of monetary growth and continuing large flows of savings funds to depositary institutions. Factors other than monetary policy must therefore be primarily responsible for the upturn in interest rates this spring; they in clude in addition to indications that a busi ness recovery is developing, the prospect of very large Treasury financing needs, deepen ing concern about the unrelenting character of cost-push inflation, some apprehension over international financial developments, and not a little anticipatory borrowing in the capital market on top of that currently needed. The fear of inflation appears to have been especially important in the recent be havior of our money and capital markets, and a reversal of psychology may well be required to achieve a significant downward adjustment of interest rates. The rise in short-term interest rates dur ing recent months had the effect of putting the Federal Reserve discount rate, which had been reduced in a series of actions to 4% per cent last February, well below the rates at which funds could be obtained by banks in the open market. The effect of this discrepancy in rates was to encourage mem ber bank borrowing from the Reserve Banks— borrowing which was rising rapidly and thereby providing reserves to support continued high rates of monetary expansion. Accordingly, as you know, the Board last week approved increases in Federal Reserve Bank discount rates to 5 per cent by a un animous vote of the five Board members present at the meeting. I participated by telephone in the discussion leading to this action, and I want you to know that I supported it fully. Our hope is that the higher discount rate will serve to moderate the demand for discounting at the Federal Reserve, that it will help prevent excessive growth of the monetary aggregates, and also impart a degree of stability to interest rate expectations. I continue to feel that the country needs lower interest rates, and that lower rates— especially on mortgages and State and local government securities— would contribute to a more vigorous economic recovery. But I am not hopeful that substantially lower interest rates can be achieved, until we as a nation make steady and meaningful pro gress in solving our inflation problem. WAGES AND PRICES The inflation we are confronted with has become deeply rooted since its beginnings in 1965. The forces of excess demand that originally led to price inflation disappeared well over a year ago. Nevertheless, strong and stubborn inflationary forces, emanating from rising costs, linger on. I wish I could report that we are making substantial prog ress in dampening the inflationary spiral. I cannot do so. Neither the behavior of prices nor the pattern of wage increases as yet provides evidence of any significant moderation in the advance of costs and prices. If growth in productivity accelerates with a quickening economy, some real moderation may well develop in the months ahead. Even so, the residual rate of infla tion may well run above the characteristic level of previous cyclical upswings. Let me cite some of the evidence that leads me to this view. Thus far in 1971, prices of newly produced goods and serv ices in the private economy are still rising, on the average, at about a 5 per cent annual rate— or at essentially the same rate as in 1969 and 1970. The rate of advance of consumer prices did diminish conspicuously during the first 5 months of 1971, but most STATEMENTS TO CONGRESS of this improvement is attributable to the decline in mortgage interest rates. The wholesale price index for all commodities has increased at an annual rate of 5 per cent thus far this year, or twice last year’s rate. Wholesale prices of industrial com modities, moreover, have accelerated from a 3^2 per cent increase last year to a 4 per cent rate thus far in 1971. Much the same picture emerges from a review of changes in wages and salaries— by far the most important component of business costs. Wages in the private non farm economy, adjusted for changes in industrial composition and for overtime work, rose at about a 7 per cent annual rate in the first half of 1971— slightly more than in 1970 or 1969. This sustained sharp rise in wages during a period of substantial economic slack contrasts markedly with our experience in earlier recessions, when the rate of advance in wages typically dropped sharply or actually ceased. Nor is the picture more encouraging when one inspects the trend of new agreements reached in major collective bargaining settle ments— agreements which tend to establish wage trends throughout industry. The wage increases agreed to, for example, in the automobile, can, and aluminum settlements, and most recently by AT&T, amount to 12 per cent or more for the first year. The full extent of the increase contracted for later years is not yet known, since it will depend in part on the speed of future advances in the consumer price index. It is important to inquire into the reasons for this unusual behavior of wages and salaries. The answer is doubtless complex, involving a myriad of structural, psycholo gical, and social changes. Ironically, our national commitment to high employment and economic prosperity, and our relative success in achieving these objectives, ac counts for part of the problem. For a gen 661 eral expectation has developed on the part of both business and labor that recessions, if they occur at all, will prove brief and mild; and this expectation has influenced both the strength of wage demands and the willing ness of management to accept them. A second factor contributing materially to the sustained character of wage rate in creases in the current situation is the in tensity and duration of the previous phase of excess demand. Consumer prices have been rising steadily since 1965— much of the time at an accelerating rate. Continued sub stantial increases are now widely anticipated over the months and years ahead. In such an environment, workers naturally seek wage increases sufficiently large to compensate for the effects of past inflation on their real incomes, and to give some protection against future price advances— besides providing for a measure of improvement in living standards. Thoughtful employers are bound to have some sympathy with these efforts, all the more so when they reckon— as they now generally do— that cost increases can probably be passed on to buyers grown accustomed to inflation. Other factors too have been at work. The increased militancy of workers, whether union or nonunion and whether in private or public service, has probably led to wider and faster diffusion of excessive wage rate increases through the economy. I cannot help but wonder, also, whether our recent experience with wage settlements in union ized industries may not reflect a gradual shift in the balance of power at the bargain ing table. Labor seems to have become more insist ent, more vigorous, and more confident in pursuing its demands, while resistance of businessmen to these demands appears to have weakened— perhaps because they fear the loss of market position that would be caused by a long strike or because they believe that their competitors too will give in to similar wage demands. More recently, the balance of power— so important to the outcome of wage bargaining— may have been influenced by expansion in the public welfare programs which can be called upon to help sustain a striking employee and his family, valid though these programs may be on social grounds. And the hand of labor may have been strengthened also by the evident success that public sector employees have had in recent years in winning large wage increases, frequently with the use of illegal strikes against the Government. In my judgment, and in the judgment of the Board as a whole, the present inflation in the midst of substantial unemployment poses a problem that traditional monetary and fiscal remedies cannot solve as quickly as the national interest demands. That is what has led me, on various occasions, to urge additional governmental actions in volving wages and prices— actions that would serve, by moderating the inflationary trend, to free the American economy from the hesitations that are now restraining its great energy. There has been some progress in this area over the past year or two. The President deserves credit for his efforts to deal with 662 the special supply-demand problems that have developed in the lumber and petroleum industries, and for bringing together labor and business leaders in the steel industry for a discussion of basic economic issues at the outset of the current wage negotiations. The Construction Industry Stabilization Com mittee, formed earlier this spring, appears to be having some success in moderating the staggering trend of wage settlements in that industry. The periodic Inflation Alerts serve a useful function in stimulating public dis cussion of areas in which wage or price decisions do not seem to conform to eco nomic fundamentals. And the National Commission on Productivity may yet pro vide the basis for important improvements in the cost trends of our economy. In the Board’s judgment, these efforts need to be carried further— perhaps much further. The problem of cost-push inflation, in which escalating wages lead to escalating prices in a never-ending circle, is the most difficult economic issue of our time. It needs to be given top priority by our business and labor leaders as well as by the Government. There is much good will and statesmanship in the ranks of business and labor, and it would be wise for the Government to draw upon it more fully. □ Record of Policy Actions of the Federal Open Market Committee Records of policy actions taken by the Federal Open Market Com mittee at each meeting, in the form in which they will appear in the Board’s Annual Report, are released approximately 90 days following the date of the meeting and are subsequently published in the Federal Reserve B u l l e t i n . The record for each meeting includes the votes on the policy deci sions made at the meeting as well as a resume of the basis for the decisions. The summary descriptions of economic and financial condi tions are based on the information that was available to the Committee at the time of the meeting, rather than on data as they may have been revised since then. Policy directives of the Federal Open Market Committee are issued to the Federal Reserve Bank of New York—the Bank selected by the Committee to execute transactions for the System Open Market Account. Records of policy actions have been published regularly in the B u l l e t i n beginning with the July 1967 issue, and such records have continued to be published in the Board’s Annual Reports. The records for the first four meetings held in 1971 were pub lished in the B u l l e t i n s for April, pages 320-27; May, pages 391-98; June, pages 503-11; and July, pages 599-606. The record for the meeting held on May 11, 1971, follows: 663 664 FEDERAL RESERVE BULLETIN □ AUGUST 1971 MEETING HELD ON MAY 11, 1971 Authority to effect transactions in System Account. Preliminary estimates of the Commerce Department indicated that real output of goods and services had increased at an annual rate of 6.5 per cent in the first quarter, after having declined at a 3.9 per cent rate in the fourth quarter of 1970. The strength of the firstquarter rise was attributable primarily to a resumption of higher automobile production following the strike in that industry, and more moderate growth of real GNP appeared to be in prospect for the current quarter. In April nonfarm payroll employment again remained about un changed and the unemployment rate edged up to 6.1 from 6.0 per cent in the previous month. Tentative estimates indicated that indus trial production had risen somewhat. The latest data for retail sales suggested that there had been a pick-up in consumer spending, apart from the post-strike recovery in automobile purchases; revised figures revealed that nonautomotive sales had strengthened somewhat more over the course of the first quarter than had been thought earlier, and according to preliminary indications for April such sales were continuing at about the level they had reached in March. Private housing starts increased substantially further in March. Wholesale prices of industrial commodities rose sharply in April, after having advanced at a moderate pace earlier in the year. The rate of increase in the consumer price index slowed in March for the third successive month, reflecting to an important extent a further decline in mortgage interest costs. Wage rates continued to rise rapidly. Growth in real GNP was projected to slow in the second quarter mainly because of the waning effect of the post-strike recovery in the automobile industry. In light of the recent strengthening of retail sales, the projected amount of improvement in personal consumption expenditures had been raised somewhat, although it remained well below the gain recorded in the first quarter. The staff projections continued to suggest a further decline in defense spending and further substantial increases in residential construction expenditures and State and local government outlays—and also a step-up in business inventory accumulation, in part reflecting stockpiling of steel in RECORD OF POLICY ACTIONS OF FOMC anticipation of a possible strike in the industry when current wage contracts expire at the end of July. While the possibility of a steel strike continued to cloud the outlook for the second half of the year, the average rate of growth was still expected to be somewhat higher than in the second quarter if the duration of any such strike did not exceed 60 days or so. It appeared likely that the rate of growth in residential construction outlays would slacken as the year progressed. However, prospects were for further large increases in State and local government expenditures and mod erate gains in outlays for business fixed investment. Various develop ments were expected to help sustain expansion in consumer spending during the second half of the year: the recently enacted increase in social security benefits, under which payments retroactive to Jan uary 1 were scheduled to be made in late June; a possible increase in military pay scales around midyear; and a possible decline in the rate of personal saving in the third and fourth quarters. Although the U.S. merchandise trade balance improved somewhat in March, exports exceeded imports by only a small margin over the first quarter as a whole. The over-all payments balance was in ex tremely large deficit during the quarter on both the liquidity and offi cial settlements bases, and tentative estimates indicated that the deficit was again very large in April. In great part the deterioration of the payments balance in the first 4 months of 1971 reflected outflows of short-term capital, at first primarily in response to higher interest rates abroad and later also in response to a growing belief that there might be increases in the exchange rates for certain European currencies. Movements from the dollar into the German mark and some other European currencies, which had been particularly heavy in the first few days of April, subsided during the next 3 weeks. The atmosphere in foreign exchange markets remained uneasy, however, and a new wave of uncertainty was evidenced late in the month by an upsurge of demands for forward marks. On April 28 the German monetary au thorities announced that they were discontinuing forward sales of marks; and during the next few days, against the background of vari ous public statements and market rumors regarding possible exchange rate policies, upward pressures intensified on the exchange rate for the mark and for several other European currencies. Flows of funds, 665 666 FEDERAL RESERVE BULLETIN □ AUGUST 1971 particularly into marks, reached massive proportions on May 4 and 5, and on the latter date the central banks of Germany, Switzerland, the Netherlands, Belgium, and Austria suspended sales of their cur rencies for dollars. On Sunday, May 9, announcements were made that exchange rates for the German mark and the Dutch guilder would be allowed to float for the time being, and that the Swiss franc and Austrian schilling were being revalued upward, by 7.07 and 5.05 per cent, respectively. On April 28 the Treasury announced the terms on which it would refund securities maturing in mid-May, including $5.8 billion held by the public. Holders of the maturing obligations were offered the choice of two relatively short-term notes— a new 15-month, 5 per cent note priced at par and a reopened issue of 3 Vi year, 53A per cent notes priced to yield about 5.88 per cent. Although the outcome of the financing was affected adversely by the developments in for eign exchange markets around the May 5 closing date for subscrip tions, the proportion of publicly held maturing issues redeemed for cash—about 30 per cent—was less than many observers had ex pected under the circumstances. The atmosphere of crisis in foreign exchange markets in early May added to uncertainties already prevailing in domestic financial mar kets. Interest rates on most types of short- and long-term securities had risen sharply in recent weeks, reflecting continued heavy demands for funds in capital markets and growing expectations on the part of market participants of higher rates to come. Contributing to the change in market psychology were favorable business developments, the recent firming of money market conditions, and the belief that the Federal Reserve would seek still firmer conditions in light of current rapid rates of growth in the monetary aggregates and of developments in international financial markets. Market rates on short-term Treasury bills shared in the general uptrend through most of April; for example, the rate on 3-month bills advanced from about 3.70 per cent on the day before the April 6 meeting of the Committee to slightly more than 4 per cent near the end of the month. Subsequently, however, the 3month rate declined—to about 3.85 per cent on the day before this meeting—partly as a result of large-scale bill purchases by foreign official accounts. Interest rates on conventional new-home mortgages declined fur RECORD OF POLICY ACTIONS OF FOMC ther in March, but more slowly than earlier in the year. Yields in secondary markets for federally insured mortgages, which had leveled out in March, advanced in late April. Incomplete data for April sug gested that inflows of funds to nonbank thrift institutions were re maining close to the extraordinarily high monthly volume recorded in the first quarter. At commercial banks, inflows of consumer-type time and savings deposits slowed substantially in April from their very high firstquarter pace, partly in response to reductions in rates offered on such deposits. The volume of large-denomination CD’s outstanding de clined slightly. Business loans outstanding (including loans that had been sold to affiliates) changed little over the course of the month, after having declined in March. On April 22 and 23 a number of major banks announced an increase in their prime lending rates from 5V4 to 5V2 per cent, and by the date of this meeting the higher prime rate had become general. This increase, which followed a series of reductions during the fall and winter months, was attributed to the advance in short-term market interest rates that had occurred since the last such reduction in March. Commercial bank holdings of Treasury securities declined during April, following a substantial rise in the first quarter, and holdings of other securities expanded at a somewhat slower pace than earlier in the year. Banks continued to reduce their use of funds from nonde posit sources. Most of the reduction in April was associated with declines in head-office liabilities to foreign branches, largely in con nection with branch acquisitions of the $1.5 billion of special certifi cates offered to them by the Treasury for payment on April 9. Growth in total bank credit, as measured by the adjusted proxy series—dailyaverage member bank deposits, adjusted to include funds from non deposit sources—slowed further from March to April. Estimates of the average March level of both the narrow and broader measures of the money stock— Mx and M 2—had been re vised upward somewhat since the preceding meeting of the Com mittee. It now appeared that Mx (private demand deposits plus cur rency in circulation) had increased at an annual rate of about 9 per cent over the first quarter as a whole 1 and that M 2 ( M 1 plus commer 1 Calculated on the basis of the daily-average level in the last month of the quarter relative to that in the last month of the preceding quarter. 667 668 FEDERAL RESERVE BULLETIN □ AUGUST 1971 cial bank tim e deposits other than large-denom ination C D ’s) had grow n at a rate of about 18 per cent. A ccording to prelim inary esti m ates, both m easures of the m oney stock expanded substantially fu r ther from M arch to A pril— M 1 considerably m ore and M<> slightly m ore than the Com m ittee had deem ed desirable at the tim e of its p re vious meeting. System open m arket operations im m ediately following the A pril 6 m eeting of the C om m ittee had been directed at achieving som ew hat firm er conditions in the m oney m arket. Shortly thereafter, w hen available d ata indicated that M u and to a lesser extent M 2, were growing at rates in excess of those expected, some slight additional firming was sought. T he Federal funds rate— which had fluctuated m ostly around 3 3A per cent following the M arch m eeting— m oved up to a range around 4 lA per cent, where it rem ained through the end of A pril. Subsequently, however, despite large-scale reservesupplying operations by the System, the Federal funds rate advanced to a range around AV2 per cent. This additional firming occurred against the background of the crisis atm osphere in foreign exchange m arkets, and in p art was a consequence of aggressive bidding for funds by m ajor banks in an effort to position themselves against pos sible outflows of deposits. It was noted th at the current outlook for the m onetary and credit aggregates was m ore uncertain than usual because of the possible im p act on dom estic financial m arkets of developm ents in foreign ex change m arkets. Staff analysis suggested that, if conditions in the m oney m arket were similar to those prevailing during m ost of A pril, inflows of tim e and savings deposits would slacken in the second q u arter and grow th in M 2 and the bank credit proxy would m oderate considerably from the first-quarter pace. M lf on the other hand, was expected to expand at an annual rate of approxim ately 9 per cent over the second quarter, or about as rapidly as in the first quarter. T he analysis suggested that, if m oney m arket conditions were som e w hat firmer, expansion in M 1 w ould slow gradually during coming m onths; but th at— in p art because of the sharp increase that had already occurred in A pril and in p art because of lags in responses to changed m oney m arket conditions— M x would still grow at a rate of about 8.5 per cent over the second quarter as a whole. It appeared th at a sharp firming of m oney m arket conditions would be required RECORD OF POLICY ACTIONS OF FOMC to slow expansion in M 1 sufficiently during the rest of the second q uarter to achieve a substantial m oderation of growth over the quarter as a whole. In the discussion Com m ittee m em bers expressed concern both about the recent high rates of growth in the m onetary aggregates and about the m arked increases that had occurred in long-term interest rates. T he view was widely held am ong m em bers th at expansion in M x at the first-quarter pace for an extended period would be incon sistent with an orderly reduction in the rate of inflation. A lso widely held, however, was the view that sharp increases in long-term rates at this juncture m ight have adverse consequences for spending, particularly in the residential construction and State and local govern m ent sectors, and m ight thus pose a threat to the econom ic recovery under way. A lthough there were some rath er m arked differences in the stress th at individual m em bers placed on these two types of considerations, the C om m ittee agreed th at it would not be desirable at present either to revert to the m oney m arket conditions th at had prevailed until the end of A pril or to seek the am ount of firming th at evidently would be required to achieve a substantial slowing of growth in the aggregates over the second quarter. Instead, the C om m ittee decided that in the early p art of the coming period, w hen open m arket oper ations in any case would be conditioned by even-keel considerations related to the current T reasury refunding, the objective should be to m aintain the m oney m arket conditions currently prevailing. Similar conditions were to be sought later if the m onetary aggregates ap peared to be on paths consistent with gradual m oderation of growth during the second quarter. If the aggregates appeared to be deviating significantly from such paths, the objective was to be modified accord ingly— except th at any firming of m oney m arket conditions directed at slowing excessive growth was to be carried out cautiously, with a view to avoiding undue reactions in capital m arkets. T he C om m ittee agreed that, in light of the uncertainties prevailing in dom estic financial m arkets and in foreign exchange m arkets, the A ccount M anager should have m ore than the usual degree of dis cretion in m aking day-to-day operating decisions. However, the C om m ittee also agreed th at it would be advisable at present for the Sys tem to engage in purchases of longer-term G overnm ent securities on 669 670 FEDERAL RESERVE BULLETIN □ AUGUST 1971 a sm aller scale than in recent m onths in the process of m eeting needs for reserves. T he following current economic policy directive was issued to the Federal R eserve B ank of New Y ork: The information reviewed at this meeting suggests that real out put of goods and services rose substantially in the first quarter pri marily because of the resumption of higher automobile production, and more moderate growth appears to be in prospect for the current quarter. The unemployment rate remained high in April. Wage rates in most sectors are continuing to rise at a rapid pace. The rate of advance in consumer prices and in wholesale prices of industrial commodities moderated in the first quarter, but the rise in industrial prices stepped up again in April. The money stock both narrowly and broadly defined expanded substantially further in April but growth in bank credit slowed. Inflows of consumer-type time and savings funds to banks moderated, partly as a result of reductions in the interest rates offered by banks, but flows to nonbank thrift institutions continued heavy. Interest rates on most types of shortand long-term market securities rose sharply in April and early May, reflecting uncertainties about domestic, and more recently in ternational, financial prospects. The over-all balance of payments deficit in the first four months of 1971 was exceptionally large, in great part reflecting short-term capital outflows. Recently, after further large international flows of funds, several European central banks suspended sales of their currencies for dollars; subsequently, announcements were made that the German mark and Dutch guilder would be permitted to float for the time being, and that the Swiss franc and Austrian schilling were being revalued. In light of the foregoing developments, it is the policy of the Federal Open Market Committee to foster financial conditions conducive to the resumption of sustainable economic growth, while encouraging an orderly reduction in the rate of inflation, moderation of short-term capital outflows, and attainment of reasonable equilibrium in the country’s balance of payments. To implement this policy, the Committee seeks to moderate growth in monetary and credit aggregates over the months ahead, taking account of the current Treasury financing, developments in capital markets, and uncertainties in foreign exchange markets. System open market operations until the next meeting of the Com mittee shall be aimed initially at maintaining currently prevailing RECORD OF POLICY ACTIONS OF FOMC money market conditions, and thereafter conducted with a view to maintaining bank reserves and money market conditions consistent with the above-cited objectives. Votes for this action: Messrs. Burns, Hayes, Brimmer, Clay, Daane, Kimbrel, Maisel, Mayo, Mitchell, Morris, Robertson, and Sherrill. Votes against this action: None. 671 Law Department Statutes, regulations, interpretations, and decisions PURCHASE OF GOVERNMENT OBLIGATIONS BY FEDERAL RESERVE BANKS By Act of Congress approved July 2, 1971 (Public Law 92 -4 5 ), the authority of the Federal Reserve Banks under section 14(b) of the Federal Reserve Act to purchase and sell direct or fully guaranteed obligations of the United States di rectly from or to the United States was extended through June 30, 1973. The text of the Act is as follows: AN ACT To amend section 14(b) of the Federal Reserve Act, as amended, to extend for two years the authority of Federal Reserve banks to purchase United States obligations directly from the Treasury. Be it enacted by the Senate and House of Repre sentatives of the United States of America in Congress assembled, That section 14(b) of the Federal Reserve Act, as amended (12 U.S.C. 355), is amended by striking out “July 1, 1971” and inserting in lieu thereof “July 1, 1973” and by striking out “June 30, 1971” and inserting in lieu thereof “June 30, 1973”. EMERGENCY LOAN GUARANTEE ACT By Act approved August 9, 1971 (Public Law 9 2 -7 0 ), Congress established the Emergency Loan Guarantee Board, which is empowered to guaran tee emergency loans not to exceed $250,000,000 to major business enterprises. The Board com prises the Secretary of the Treasury, as Chairman, the Chairman of the Board of Governors of the Federal Reserve System, and the Chairman of the Securities and Exchange Commission. The text of the Act is as follows: AN ACT To authorize emergency loan guarantees to major business enterprises. Be it enacted by the Senate and House of Repre sentatives of the United States of America in Congress assembled, SHORT TITLE S ec tio n 1. This Act may be cited as the “Emer gency Loan Guarantee Act”. 672 ESTABLISHMENT OF THE BOARD 2. There is created an Emergency Loan Guar antee Board (referred to in this Act as the “Board”) composed of the Secretary of the Treasury, as Chair man, the Chairman of the Board of Governors of the Federal Reserve System, and the Chairman of the Securities and Exchange Commission. Decisions of the Board shall be made by majority vote. S ec. AUTHORITY S e c . 3. The Board, on such terms and conditions as it deems appropriate, may guarantee, or make commitments to guarantee, lenders against loss of principal or interest on loans that meet the require ments of this Act. LIMITATIONS AND CONDITIONS 4. (a) A guarantee of a loan may be made under this Act only if— (1) the Board finds that (A) the loan is needed to enable the borrower to continue to furnish goods or services and failure to meet this need would adversely and seriously affect the economy of or employment in the Nation or any region thereof, (B) credit is not otherwise available to the borrower under reasonable terms or conditions, and (C) the prospective earning power of the borrower, together with the character and value of the security pledged, furnish reasonable assurance that it will be able to repay the loan within the time fixed, and afford reasonable protection to the United States; and (2) the lender certifies that it would not make the loan without such guarantee. S ec. (b) Loans guaranteed under this Act shall be pay able in not more than five years, but may be renew able for not more than an additional three years. (c)(1) Loans guaranteed under this Act shall bear interest payable to the lending institutions at rates determined by the Board taking into account the reduction in risk afforded by the loan guarantee and rates charged by lending institutions on otherwise comparable loans. (2) The Board shall prescribe and collect a guaran tee fee in connection with each loan guaranteed under this Act. Such fee shall reflect the Government’s ad ministrative expense in making the guarantee and the risk assumed by the Government and shall not be less than an amount which, when added to the amount of interest payable to the lender of such loan, produces a total charge appropriate for loan agreements of com parable risk and maturity if supplied by the normal capital markets. SECURITY FOR LOAN GUARANTEES S e c . 5. In negotiating a loan guarantee under this Act, the Board shall make every effort to arrange that the payment of the principal of and interest on any plan guaranteed shall be secured by sufficient property of the enterprise to collateralize fully the amount of the loan guarantee. REQUIREMENTS APPLICABLE TO LOAN GUARANTEES S e c . 6. (a) A guarantee agreement made under this Act with respect to an enterprise shall require that while there is any principal or interest remaining unpaid on a guaranteed loan to that enterprise the enterprise may not— (1) declare a dividend on its common stock; or (2) make any payment on its other indebtedness to a lender whose loan has been guaranteed under this Act. The Board may waive either or both of the require ments set forth in this subsection, as specified in the guarantee agreement covering a loan to any particular enterprise, if it determines that such waiver is not inconsistent with the reasonable protection of the interests of the United States under the guarantee. (b) If the Board determines that the inability of an enterprise to obtain credit without a guarantee under this Act is the result of a failure on the part of management to exercise reasonable business prudence in the conduct of the affairs of the enterprise, the Board shall require before guaranteeing any loan to the enterprise that the enterprise make such manage ment changes as the Board deems necessary to give the enterprise a sound managerial base. (c) A guarantee of a loan to any enterprise shall not be made under this Act unless— (1) the Board has received an audited financial statement of the enterprise; and (2) the enterprise permits the Board to have the same access to its books and other documents as the Board would have under section 7 in the event the loan is guaranteed. (d) No payment shall be made or become due under a guarantee entered into under this Act unless the lender has exhausted any remedies which it may have under the guarantee agreement. (e)(1) Prior to making any guarantee under this Act, the Board shall satisfy itself that the underlying loan agreement on which the guarantee is sought contains all the affirmative and negative covenants and other protective provisions which are usual and customary in loan agreements of a similar kind, in cluding previous loan agreements between the lender and the borrower, and that it cannot be amended, or any provisions waived, without the Board’s prior con sent. (2) On each occasion when the borrower seeks an advance under the loan agreement, the guarantee authorized by this Act shall be in force as to the funds advanced only if— (A) the lender gives the Board at least ten days’ notice in writing of its intent to provide the bor rower with funds pursuant to the loan agreement; (B) the lender certifies to the Board before an advance is made that, as of the date of the notice provided for in subparagraph (A), the borrower is not in default under the loan agreement: Pro vided, That if a default has occurred the lender shall report the facts and circumstances relating thereto to the Board and the Board may expressly and in writing waive such default in any case where it determines that such waiver is not inconsistent with the reasonable protection of the interests of the United States under the guarantee; and (C) the borrower provides the Board with a plan setting forth the expenditures for which the ad vance will be used and the period during which the expenditures will be made, and, upon the ex piration of such periods, reports to the Board any instances in which amounts advanced have not been expended in accordance with the plan. (f)(1) A guarantee agreement made under this Act shall contain a requirement that as between the Board and the lender, the Board shall have a priority with respect to, and to the extent of, the lender’s interest in any collateral securing the loan and any earlier outstanding loans. The Board shall take all steps necessary to assure such priority against any other persons. (2) As used in paragraph (1) of this subsection, the term “collateral” includes all assets pledged under loan agreements and, if appropriate in the opinion of the Board, all sums of the borrower on deposit with the lender and subject to offset under section 68 of the Bankruptcy Act. INSPECTION OF DOCUMENTS; AUTHORITY TO DISAPPROVE CERTAIN TRANSACTIONS S e c . 7. (a) The Board is authorized to inspect and copy all accounts, books, records, memoranda, corre spondence, and other documents of any enterprise which has received financial assistance under this Act concerning any matter which may bear upon (1) the ability of such enterprise to repay the loan within the time fixed therefor; (2) the interests of the United States in the property of such enterprise; and (3) the assurance that there is reasonable protection to the United States. The Board is authorized to disapprove any transaction of such enterprise involving the dis position of its assets which may affect the repayment of a loan that has been guaranteed pursuant to the provisions of this Act. (b) The General Accounting Office shall make a detailed audit of all accounts, books, records, and transactions of any borrower with respect to which an application for a loan guarantee is made under this Act. The General Accounting Office shall report the results of such audit to the Board and to the Congress. MAXIMUM OBLIGATION S e c . 8. The maximum obligation of the Board under all outstanding loans guaranteed by it shall not exceed at any time $250,000,000. EMERGENCY LOAN GUARANTEE FUND Sec. 9. (a) There is established in the Treasury an emergency loan guarantee fund to be administered by 673 674 FEDERAL RESERVE BULLETIN □ AUGUST 1971 the Board. The fund shall be used for the payment of the expenses of the Board and for the purpose of ful filling the Board’s obligations under this Act. Moneys in the fund not needed for current operations may be invested in direct obligations of, or obligations that are fully guaranteed as to principal and interest by, the United States or any agency thereof. (b) The Board shall prescribe and collect a guaran tee fee in connection with each loan guaranteed by it under this Act. Sums realized from such fees shall be deposited in the emergency loan guarantee fund. (c) Payments required to be made as a conse quence of any guarantee by the Board shall be made from the emergency loan guarantee fund. In the event that moneys in the fund are insufficient to make such payments, in order to discharge its responsibilities, the Board is authorized to issue to the Secretary of the Treasury notes or other obligations in such forms and denominations, bearing such maturities, and subject to such terms and conditions as may be prescribed by the Board with the approval of the Secretary of the Treasury. Such notes or other obligations shall bear interest at a rate determined by the Secretary of the Treasury, taking into consideration the current aver age market yield on outstanding marketable obliga tions of the United States of comparable maturities during the month preceding the issuance of the notes or other obligations. The Secretary of the Treasury is authorized and directed to purchase any notes and other obligations issued hereunder and for that pur pose he is authorized to use as a public debt trans action the proceeds from the sale of any securities issued under the Second Liberty Bond Act, as amended, and the purposes for which securities may be issued under that Act are extended to include any purchase of such notes and obligations. FEDERAL RESERVE BANKS AS FISCAL AGENTS S e c . 10. Any Federal Reserve bank which is re quested to do so shall act as fiscal agent for the Board. Each such fiscal agent shall be reimbursed by the Board for all expenses and losses incurred by it in acting as agent on behalf of the Board. PROTECTION OF GOVERNMENT’S INTEREST S e c . 11. (a) The Attorney General shall take such action as may be appropriate to enforce any right accruing to the United States or any officer or agency thereof as a result of the issuance of guarantees under this Act. Any sums recovered pursuant to this section shall be paid into the emergency loan guarantee fund. (b) The Board shall be entitled to recover from the borrower, or any other person liable therefor, the amount of any payments made pursuant to any guar antee agreement entered into under this Act, and upon making any such payment, the Board shall be subro gated to all the rights of the recipient thereof. REPORTS Sec. 12. The Board shall submit to the Congress annually a full report of its operations under this Act. In addition, the Board shall submit to the Congress a special report not later than June 30, 1973, which shall include a full report of the Board’s operations together with its recommendations with respect to the need to continue the guarantee program beyond the termination date specified in section 13. If the Board recommends that the program should be con tinued beyond such termination date, it shall state its recommendations with respect to the appropriate board, agency, or corporation which should adminis ter the program. TERMINATION 13. The authority of the Board to enter into any guarantee or to make any commitment to guaran tee under this Act terminates on December 31, 1973. Such termination does not affect the carrying out of any contract, guarantee, commitment, or other obli gation entered into pursuant to this Act prior to that date, or the taking of any action necessary to pre serve or protect the interests of the United States in any amounts advanced or paid out in carrying on operations under this Act. Sec. BANK HOLDING COMPANIES The Board of Governors, effective September 1, 1971, has amended Regulation Y, “Bank Holding Companies”, by adding subparagraph (9) to sec tion 222.4(a) as a further implementation of its regulatory authority with respect to nonbanking activities of bank holding companies under sec tion 4 (c )(8 ) of the Bank Holding Company Act as amended by the 1970 Amendments. The new subparagraph embodies the Board’s determination regarding insurance agency activities as being closely related to banking. The text of the amend ment reads as follows: AMENDMENT TO REGULATION Y Effective September 1, 1971, section 222.4(a) is amended by changing the period at the end thereof to a semicolon and adding subparagraph (9) as set forth below: SECTION 222.4— NONBANKING ACTIVITIES (a) Activities closely related to banking or managing or controlling banks. * * * The fol lowing activities have been determined by the Board to be so closely related to banking or man aging or controlling banks as to be a proper incident thereto: * * ❖ * * (9) acting as insurance agent or broker in offices at which the holding company or its sub 675 LAW DEPARTMENT sidiaries are otherwise engaged in business (or in an office adjacent thereto) with respect to the following types of insurance: (i) any insurance for the holding company and its subsidiaries; (ii) any insurance that (A ) is directly related to an extension of credit by a bank or a bankrelated firm of the kind described in this regula tion, or (B) is directly related to the provision of other financial services by a bank or such a bankrelated firm, or (C) is otherwise sold as a matfer of convenience to the purchaser, so long as the premium income from sales within this subclause (C ) does not constitute a significant portion of the aggregate insurance premium income of the hold ing company from insurance sold pursuant to this clause (ii); (iii) any insurance sold in a community that (A ) has a population not exceeding 5,000, or (B) the holding company demonstrates has inadequate insurance agency facilities. DELEGATION OF AUTHORITY The Board of Governors has amended its Rules Regarding Delegation of Authority, effective July 29, 1971, in order to expedite and facilitate its response to requests for information of the Board, by delegating to the General Counsel of the Board authority (1) to make available to other agencies of the United States for their use where necessary in their official duties certain information regard ing supervised institutions, and (2) to determine, in any case of service of subpoena on an officer, employee, or agent of the Board or a Federal Reserve Bank, the response to such subpoena. The text of the amendment reads as follows: A M ENDM ENT TO RULES REG A RD IN G DELEGATION OF AUTHORITY Effective July 29, 1971, section 265.2(b) is amended by adding subparagraph (5) as set forth below: SECTION 265.2— SPECIFIC FUNCTIONS DELEGATED TO BOARD EMPLOYEES AND FEDERAL RESERVE BANKS * ❖ * * ❖ (b) The General Counsel of the Board (or, in his absence, the Acting General Counsel) is authorized: * ❖ * * ❖ (5) Pursuant to the provisions of Part 261 of this chapter, to make available information of the Board of the nature and in the circumstances described in § 261.6(b) and § 261.7 of that Part. TRUTH IN LENDING OPEN END CREDIT— CHAN GE IN THE METHOD OF D ETERM IN IN G THE BALANCE ON W HICH FIN A N CE CHARGES ARE COMPUTED The creditor of an open end credit account plan desires to change his method of determining the balance on which finance charges are com puted from a method in which payments and credits made during the billing cycle are not de ducted in determining such balance to a method in which such payments and credits are deducted in determining such balance. This change results in a reduction in finance charges to the customer, where full payment of the account is deferred. The question arises whether notice of such change is required to be sent to customers of open end credit accounts under § 226.7(e), since that sec tion also provides that prior notice is not required if the only change is a reduction in the “periodic rate or rates, or in any minimum, fixed, check service, transaction, activity, or similar charge ap plicable to the account.” Where a creditor changes his method of deter mining the balance on which finance charges are computed from a method in which payments and credits made during the billing cycle are not deducted in determining such balance, to a method in which such payments and credits are deducted in determining such balance, § 226.7(e) requires no prior notice of such change in terms, provided no other changes in terms applicable to the ac count are made simultaneously which would re quire § 226.7(e) notification. 676 FEDERAL RESERVE BULLETIN □ AUGUST 1971 ORDERS UNDER SECTION 3 OF BANK HOLDING COMPANY ACT CONTINENTAL BANCOR, INC., PHOENIX, ARIZONA In the m atter of the application of Continental Bancor, Inc., Phoenix, Arizona, for approval of action to become a bank holding com pany through the acquisition of 69 per cent or more of the vo t ing shares of Continental Bank, Phoenix, Arizona. O rder A a p p r o v in g B ank H A c t io n o l d in g to B ecom e C om pany There has come before the Board of Governors, pursuant to section 3 (a )(1 ) of the Bank Holding Company Act of 1956 (12 U.S.C. 1 8 4 2 (a )(1 )), and section 222.3(a) of Federal Reserve Regula tion Y (12 CFR 2 2 2 .3 (a)), the application of Continental Bancor, Inc., Phoenix, Arizona ( “Ap plicant” ), for the Board’s prior approval of action whereby Applicant would become a bank holding company through the acquisition of 69 per cent or more of the voting shares of Continental Bank, Phoenix, Arizona (“Bank”). As required by section 3(b) of the Act, the Board gave written notice of receipt of the applica tion to the Superintendent of Banks for Arizona and requested his views and recommendation. The Superintendent recommended approval of the application. Notice of receipt of the application was pub lished in the Federal Register on May 13, 1971 (36 Federal Register 8830), providing an oppor tunity for interested persons to submit comments and views with respect to the proposal. A copy of the application was forwarded to the United States Department of Justice for its consideration. The time for filing comments and views has expired and all those received have been considered by the Board. The Board has considered the application in the light of the factors set forth in section 3(c) of the Act, including the effect of the proposed acquisi tion on competition, the financial and managerial resources and future prospects of Applicant and Bank, and the convenience and needs of the com munities to be served. Upon such consideration, the Board finds that: Applicant is a nonoperating corporation formed for the purpose of acquiring Bank, and is owned and managed by a group of directors and officers of Bank who have extensive banking experience in the Phoenix area. Bank has deposits of about $46 million and ranks eighth in size in the Phoenix area. (All banking data are as of December 31, 1970, and reflect holding company formations and acquisitions approved through May 31, 1971.) The proposal involves only a shift in ownership of Bank from a Texas corporation to Applicant, and would not adversely affect competition in any relevant area. The financial and managerial resources and fu ture prospects of Applicant and Bank are con sistent with approval of the application. Although Applicant would have substantial debt in relation to its net worth, several considerations diminish the importance of this factor. The management of Applicant is composed of senior officials of Bank who have exhibited strong managerial abilities since Bank’s establishment in 1964. Further, Bank has shown an earnings record which coupled with its potential earnings indicate Applicant’s ability to service its debt without significant danger to the condition of Bank. Other considerations that lead to the conclusion that Applicant’s debt position does not preclude approval of the application are the adequacy of Bank’s capital and a definite debt repayment program by Applicant. Considerations relating to the convenience and needs of the com munities to be served lend weight toward approval of the application since the proposal involves the substitution of local for non-local ownership and such ownership will be more likely to be aware of and sensitive to the banking needs of the Phoenix area. It is the Board’s judgment that the proposed transaction would be in the public interest, and that the application should be approved. I t is h e r e b y o r d e r e d , for the reasons set forth in the findings summarized above, that said appli cation be and hereby is approved, provided that the action so approved shall not be consummated (a) before the thirtieth calendar day following the date of this Order, or (b) later than three months after the date of this Order, unless such time shall be extended for good cause by the Board, or by the Federal Reserve Bank of San Francisco pursuant to delegated authority. By order of the Board of Governors, July 15, 1971. Voting for this action: Vice Chairman Robertson and Governors Daane, Maisel, and Sherrill. Absent and not voting: Chairman Burns and Governors Mitchell and Brimmer. (Signed) [s e a l ] K A. K e n y o n , Deputy Secretary. enneth LAW DEPARTMENT 677 UN ITED V IRG IN IA BANKSHARES INCORPORATED, RICHM OND, V IR G IN IA In the m atter of the application of United Virginia Bankshares Incorporated, Richmond, Vir ginia, for approval of acquisition of 80 per cent or more of the voting shares of the successor by merger to Security National Bank of Roanoke, Roanoke, Virginia. O rder A S tock p p r o v in g by A B ank H c q u is it i o n o l d in g of Bank C om pany There has come before the Board of Governors, pursuant to section 3 (a )(3 ) of the Bank Holding Company Act of 1956 (12 U.S.C. 1 8 4 2 (a )(3 )) and section 222.3(a) of Federal Reserve Regu lation Y (12 CFR 2 2 2 .3 (a )), an application by United Virginia Bankshares Incorporated, Rich mond, Virginia (“Applicant” ), for the Board’s prior approval of the acquisition of 80 per cent or more of the voting shares of the successor by merger to Security National Bank of Roanoke, Roanoke, Virginia (“Bank” ). The merger has significance only as a means of acquiring all of the shares of Bank; the proposal is therefore treated herein as one to acquire shares of Bank. As required by section 3(b) of the Act, the Board gave written notice of receipt of the appli cation to the Comptroller of the Currency, and requested his views and recommendation. The Comptroller offered no objection to approval of the acquisition. Notice of receipt of the application was pub lished in the Federal Register on May 26, 1971 (36 Federal Register 9581), providing an oppor tunity for interested persons to submit comments and views with respect to the proposal. A copy of the application was forwarded to the United States Department of Justice for its consideration. Time for filing comments and views has expired and all those received have been considered. The Board has considered the application in the light of the factors set forth in section 3(c) of the Act, including the effect of the proposed acqui sition on competition, the financial and managerial resources and future prospects of the Applicant and the banks concerned, and the convenience and needs of the communities to be served, and finds that: Applicant, Virginia’s largest banking organ ization, controls 11 banks with deposits of $1.1 billion, or 13.9 per cent of the deposits in the State. (Banking data are as of December 31, 1970, and reflect holding company formations and acquisitions approved by the Board to May 31, 1971.) Bank ($21 million deposits) is the smallest banking organization in the Roanoke area (4.8 per cent of deposits), where it competes with offices of three independent banks and two bank holding companies. Although Applicant is the largest bank organization in the State, its nearest subsidiary is more than 40 miles from Bank, and neither it nor Applicant’s other subsidiaries com pete in the Roanoke area. Because of the distances involved, Virginia law, and other facts of record, the development of significant competition is con sidered unlikely. In view of the foregoing, Appli cant’s entry into Roanoke through acquisition of the smallest bank should serve to enhance com petition and will not have a significantly adverse effect on competition in any relevant area. The financial condition of Applicant and its subsidiaries and Bank is regarded as satisfactory. Consequently, considerations under these factors are consistent with approval. The financial resources and increased com petitive capacity of Bank resulting from approval of the application would benefit residents of the pertinent market area. Accordingly, considerations relating to the capacity of Bank to meet the con venience and needs of the community weigh slightly in favor of approval. It is the Board’s judgment that consummation of the proposal would be in the public interest and that the appli cation should be approved. I t is h e r e b y o r d e r e d , for the reasons set forth above, that said application be and hereby is approved, provided that the acquisition so ap proved shall not be consummated (a) before the thirtieth calendar day following the date of this Order or (b) later than three months after the date of this Order, unless such period is extended for good cause by the Board, or by the Federal Reserve Bank of Richmond pursuant to delegated authority. By order of the Board of Governors, July 15, 1971. Voting for this action: Vice Chairman Robertson and Governors Daane, Maisel, Brimmer, and Sherrill. Absent and not voting: Chairman Burns and Gov ernor Mitchell. (Signed) [s e a l ] K A. K e n y o n , Deputy Secretary. enneth FEDERAL RESERVE BULLETIN □ AUGUST 1971 678 T G BANCSHARES CO., ST. LOUIS, MISSOURI In the m atter of the application of T G Bancshares Co., St. Louis, M issouri, for approval of acquisition of 53.6 per cent or more of the voting shares of Bank of House Springs, House Springs, Missouri. O rder A Stock p p r o v in g by A Bank H c q u is it i o n o l d in g of B ank C o m pany There has come before the Board of Governors, pursuant to section 3 (a )(3 ) of the Bank Holding Company Act of 1956 (12 U.S.C. 1 8 4 2 (a )(3 )) and section 222.3(a) of Federal Reserve Regu lation Y (12 CFR 2 2 2 .3 (a )), an application by T G Bancshares Co., St. Louis, Missouri (“Appli cant” ), a bank holding company, for the Board’s prior approval of the acquisition of an additional 53.6 per cent or more of the voting shares of Bank of House Springs, House Springs, Missouri ( “Bank” ). Applicant presently owns 24.99 per cent of the voting shares of Bank. As required by section 3(b) of the Act, the Board gave written notice of receipt of the appli cation to the Commissioner of Finance for the State of Missouri, and requested his views and rec ommendation. The Commissioner recommended approval of the application. Notice of receipt of the application was pub lished in the Federal Register on May 18, 1971 (36 Federal Register 9043), providing an oppor tunity for interested persons to submit comments and views with respect to the proposal. A copy of the application was forwarded to the United States Department of Justice for its consideration. Time for filing comments and views has expired and all those received have been considered. The Board has considered the application in the light of the factors set forth in section 3(c) of the Act, including the effect of the proposed acquisition on competition, the financial and man agerial resources and future prospects of the Ap plicant and the banks concerned, and the con venience and needs of the communities to be served, and finds that: Applicant, the eighth largest bank holding com pany and the ninth largest banking organization in Missouri, has one subsidiary bank with $125.7 million in deposits, representing 1.1 per cent of the total commercial bank deposits in the State. (All banking data are as of December 31, 1970, adjusted to reflect holding company formations and acquisitions approved by the Board to date.) Bank ($4.7 million deposits), with 9.9 per cent of the area’s deposits, is the fifth largest of the seven banks located in its primary service area, which is approximated by the northwest portion of Jefferson County. Applicant’s only subsidiary bank, the Tower Grove Bank and Trust Company, is located 24 miles from Bank in St Louis, and does not compete with Bank to any significant extent. In light of the facts of record, including the distance separating Bank from Applicant’s sub sidiary, the presence of numerous banking alter natives, and Missouri’s restrictive branching law, it does not appear that consummation of the proposal herein would foreclose the development of potential competition. Affiliation with Appli cant should enhance Bank’s ability to compete more effectively within the St. Louis banking market. It does not appear, therefore, that existing competition would be eliminated or significant potential competition foreclosed by consummation of Applicant’s proposal, or that there would be undue adverse effects on any bank in the area involved. Based upon the foregoing, the Board concludes that consummation of the proposed acquisition would not have significant adverse effects on com petition in any relevant area. Considerations re lating to the financial and managerial resources and future prospects are regarded as consistent with approval of the application as they relate to Applicant and its subsidiary, and lend weight in support of approval as they relate to Bank, since affiliation with Applicant would insure Bank’s future financial stability and provide Bank with greater management depth. Applicant proposes to expand Bank’s lending operations and to assist Bank in establishing new services such as business development and trust services. The residents of Bank’s service area should benefit from these serv ices. Consequently, considerations relating to the convenience and needs of the area lend some addi tional weight toward approval. It is the Board’s judgment that consummation of the proposed ac quisition would be in the public interest, and that the application should be approved. I t is h e r e b y o r d e r e d , for the reasons set forth above, that said application be and hereby is approved, provided that the acquisition so ap proved shall not be consummated (a) before the thirtieth calendar day following the date of this Order or (b) later than three months after the 679 LAW DEPARTMENT 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, July 15, 1971. Voting for this action: Vice Chairman Robertson, and Governors Daane, Maisel, Brimmer, and Sherrill. Absent and not voting: Chairman Burns and Gov ernor Mitchell. (Signed) K enneth A. K enyon, D eputy Secretary. [s e a l ] FIRST BANCORP, INC., CORSICANA, TEXAS In the m atter of the application of First Ban corp, Inc., Corsicana, Texas, for approval of ac tion to become a bank holding company. O rder A a p p r o v in g B ank H A c t io n o l d in g to B ecom e C om pany There has come before the Board of Governors, pursuant to section 3 (a )(1 ) of the Bank Holding Company Act of 1956 (12 U.S.C. 1842(a) (1 )) and section 222.3(a) of Federal Reserve Regu lation Y (12 CFR 2 2 2 .3 (a )), an application by First Bancorp, Inc., Corsicana, Texas ( “Appli cant” ), for the Board’s prior approval of action whereby Applicant would become a bank holding company through the acquisition of the successor by merger to The First National Bank of Corsi cana, Corsicana, Texas ( “Corsicana Bank” ). As an incident to the merger, Applicant would acquire the beneficial ownership of at least 24 per cent but less than 25 per cent of the shares of each of the following three Texas banks: Citizens National Bank in Ennis (24.7 per cent); Citizens State Bank, Malakoff (24.0 per cent); and First N a tional Bank of Streetman (24.0 per cent). The described shares of the three banks other than Corsicana Bank are owned by Cornavco Cor poration, all the shares of which are held by trustees for the benefit of the shareholders of Cor sicana Bank. As a result of the merger, Applicant will succeed to beneficial ownership of all of the shares of Cornavco Corporation and, indirectly, of the described shares of the three banks. As required by section 3(b) of the Act, the Board gave written notice of receipt of the appli cation to the Comptroller of the Currency and the Texas Commissioner of Banking and requested their views and recommendations. The Commis sioner and the Comptroller recommended approval of the application. Notice of receipt of the application was pub lished in the Federal Register on May 1, 1971 (36 Federal Register 8274), providing an opportunity for interested persons to submit comments and views with respect to the proposal. A copy of the application was forwarded to the United States Department of Justice for its consideration. Time for filing comments and views has expired and all those received have been considered by the Board. The Board has considered the application in the light of the factors set forth in section 3(c) of the Act, including the effect of the proposed acquisition on competition, the financial and man agerial resources and future prospects of the Ap plicant and the banks concerned, and the con venience and needs of the communities to be served, and finds that: Applicant is a newly-formed organization and has no operating history. Upon acquisition of Corsicana ($40 million of deposits), Applicant would become the sixth largest bank holding com pany in the State and would control about 0.2 per cent of the commercial bank deposits in the State. (All banking data are as of December 31, 1970, and reflect holding company acquisitions approved through May 31, 1971.) Corsicana Bank, the lead bank, is located in downtown Corsicana, and is the largest of ten banks in the Corsicana market by virtue of control of 56.8 per cent of deposits in that market. (Corsi cana Bank will be merged into a nonoperating bank which has significance only as a vehicle to accomplish the acquisition of all the shares of Corsicana Bank. Acquisition of the shares of the resulting bank is treated as an acquisition of the shares of Corsicana Bank.) Streetman Bank ($2 million of deposits), located 18 miles south of Corsicana is also in the Corsicana market and has 2.3 per cent of deposits there. Citizens State Bank ($3 million of deposits), is located in Malakoff which is 27 miles east of Corsicana and is in the Athens-Malakoff market which covers approximately the area within a 12mile radius of Athens. In this market, Citizens State Bank, with 9.4 per cent of deposits, ranks fourth among six banks located there. In the Ennis market, which is adjacent to the Corsicana market, Citizens National Bank in Ennis ($14 million of deposits) is the largest of three banks and holds 57.6 per cent of the deposits. 680 FEDERAL RESERVE BULLETIN □ AUGUST 1971 Corsicana Bank, through Cornavco, acquired an indirect interest in Malakoff Bank in 1966, Ennis Bank in 1967, and Streetman Bank in 1969. It appears that Corsicana Bank exerts some influence over the operations of these three banks. However, the Board notes Applicant’s assertion that “neither Applicant nor FNBC [Corsicana Bank] controls the election of directors of any such banks or exercises a controlling influence over their manage ment or policies.” It appears that the proposed transaction is essentially a corporate reorgani zation of existing interests and reflects neither expansion of the group nor an increase in the banking resources controlled by it. On the facts presented, consummation of Applicant’s proposal is not expected to have a significant effect on existing or potential banking competition. On the basis of the record before it, the Board concludes that consummation of the proposal herein would not have a substantially adverse effect on competition in any relevant area. Con siderations relating to financial and managerial resources and prospects as they relate to Applicant, Corsicana Bank, and the three associated banks are consistent with approval of the application. Applicant will begin operations in a satisfactory financial condition and will be able to draw man agement expertise from Corsicana Bank. Appli cant’s prospects, which depend largely on those of Corsicana Bank, are favorable. Factors relating to the convenience and needs of the relevant markets are consistent with approval. It is the Board’s judgment that the proposed transaction would be in the public interest and that the application should be approved. I t is h e r e b y o r d e r e d , for the reasons summa rized above, that said application be and hereby is approved, provided that the acquisition so ap proved shall not be consummated (a) before the thirtieth calendar day following the date of this Order or (b) later than three months after the date of this Order, unless such period is extended for good cause by the Board, or by the Federal Reserve Bank of Dallas pursuant to delegated authority. By order of the Board of Governors, July 15, 1971. Voting for this action: Vice Chairman Robertson and Governors Daane, Maisel, and Sherrill. Absent and not voting: Chairman Burns and Governors Mitchell and Brimmer. (Signed) K enneth A. K enyon, D eputy Secretary. [s e a l ] FIRST COMMERCIAL BANKS INC., ALBANY, NEW YORK In the m atter of the application of First C om mercial Banks Inc., A lbany, N ew Y ork, for ap proval of action to become a bank holding com pany through the acquisition of 100 per cent of the voting shares (less directors’ qualifying shares) of the successor by merger to National Com m er cial Bank and Trust Company, Albany, N ew York, and 100 per cent of the voting shares of First Trust & D eposit Com pany, Syracuse, N ew York. O rder A a p p r o v in g B ank H A c t io n o l d in g to B ecom e C o m pany There has come before the Board of Governors, pursuant to section 3 (a )(1 ) of the Bank Holding Company Act of 1956 (12 U.S.C. 1 8 4 2 (a )(1 )) and section 222.3(a) of Federal Reserve Regu lation Y (12 CFR 2 2 2 .3 (a)), an application by First Commercial Banks Inc., Albany, New York [formerly, Heartland, Central N.Y. Corp.], for the Board’s prior approval of action whereby Appli cant would become a bank holding company through the acquisition of 100 per cent of the voting shares (less directors’ qualifying shares) of the successor by merger to National Commercial Bank and Trust Company, Albany, New York ( “National Commercial” ), and 100 per cent of the voting shares of First Trust & Deposit Company, Syracuse, New York (“First Trust” ). As required by section 3(b) of the Act, the Board gave written notice of receipt of the appli cation to the Comptroller of the Currency and to the Superintendent of Banks of the State of New York, and requested their views and recommen dations. The Comptroller did not object to ap proval of the application, and the Superintendent recommended approval. Notice of receipt of the application was pub lished in the Federal Register on June 3, 1971 (36 Federal Register 10825), providing an opportunity for interested persons to submit comments and views with respect to the proposal. A copy of the application was forwarded to the United States Department of Justice for its consideration. Time for filing comments and views has expired and all those received have been considered. The Board has considered the application in the light of the factors set forth in section 3(c) of the Act, including the effect of the proposed acquisi tion on competition, the financial and managerial resources and future prospects of the Applicant LAW DEPARTMENT and the banks concerned, and the convenience and needs of the communities to be served, and finds that: Applicant is a newly-organized corporation. Upon consummation of this proposal, Applicant will control $1.0 billion in deposits, representing 1.2 per cent of total commercial bank deposits in the State, and would become the fourteenth largest banking organization and seventh largest multi bank holding company in New York. (Banking data, unless otherwise noted, are as of December 30, 1970, and reflect holding company acquisitions approved through June 30, 1971.) National Commercial ($705 million in deposits), has 58 offices and operates throughout the Fourth Banking District of New York. It controls 30 per cent (as of June 30, 1970) of the commercial bank deposits in the relevant market, which is approximated by all of Albany, Schenectady and Rensselaer Counties and the southern portion of Saratoga County. On the basis of deposits, it is the second largest of the fifteen banking organi zations in that market. First Trust ($300 million in deposits) operates 34 offices all of which are located in the Sixth Banking District. It controls 30 per cent (as of June 30, 1970) of the commercial bank deposits in the relevant market, which is approximated by Oswego and Onondaga Counties and the northern half of Madison County. On the basis of deposits, it is the largest of the eleven banking organizations in that market. National Commercial and First Trust do not compete with each other to any meaningful extent, and it appears unlikely they would do so in the near future. No office of one is located within 50 miles of any office of the other, and New York law prevents either bank from branching or merg ing outside its Banking District. It appears that affiliation of the two banks in a holding company system would not have an undue adverse effect on other banks in the relevant markets, and would have the procompetitive advantage of creating an organization with sufficient resources to compete with large banking organizations in upstate New York as well as those based in New York City which are seeking to expand throughout the State. On the basis of the record before it, the Board concludes that consummation of the pro posal would not have a significant adverse effect on competition in any relevant market. The financial condition of each bank appears satisfactory; both are regarded as having com 681 petent managements and favorable prospects. It appears that Applicant will begin operations in satisfactory condition and with competent manage ment; its prospects, which are largely dependent upon those of its two proposed subsidiaries, also appear favorable. Affiliation of the two banks should enable each to offer improved and ex panded services. ,It is expected that National Com mercial’s specialization in financial services for local governments would be extended to Syracuse, and that First Trust would be able to offer more convenient international banking services. It is the Board’s judgment that the proposed transaction is in the public interest, and that the application should be approved. I t is h e r e b y o r d e r e d , for the reasons summa rized above that said application be and hereby is approved, provided that the transaction so approved shall not be consummated (a) before the thirtieth calendar day following the date of this Order or (b) later than three months after the date of this Order, unless such time is extended for good cause by the Board or by the Federal Reserve Bank of New York pursuant to delegated authority. By order of the Board of Governors, July 21, 1971. Voting for this action: Chairman Burns and Governors Robertson, Maisel, and Sherrill. Absent and not voting: Governors Mitchell, Daane, and Brimmer. (Signed) K enneth A. K enyon, D eputy Secretary. [s e a l ] BANK SHARES INCORPORATED, MINNEAPOLIS, MINNESOTA In the matter of the application of Bank Shares Incorporated , Minneapolis, Minnesota, for ap proval of acquisition of 80 per cent or more of the voting shares of Olm sted County Bank & Trust Company, Rochester, Minnesota. O rder A S tock p p r o v in g by A Bank H c q u is it i o n o l d in g of B ank C om pany There has come before the Board of Governors, pursuant to section 3 (a )(3 ) of the Bank Holding Company Act of 1956 (12 U.S.C. 1 3 4 2 (a )(3 )) and section 222.3(a) of Federal Reserve Regu lation Y (12 CFR 22 2 .3 (a)), an application by Bank Shares Incorporated, Minneapolis, Minne sota ( “Applicant” ), a registered bank holding company, for the Board’s prior approval of the 682 FEDERAL RESERVE BULLETIN □ AUGUST 1971 acquisition of 80 per cent or more of the voting shares of Olmsted County Bank & Trust Company, Rochester, Minnesota ( “Bank” ). As required by section 3(b) of the Act, the Board gave written notice of receipt of the appli cation to the Minnesota Commissioner of Banks, and requested his views and recommendation. The Commissioner responded that he had no objection to approval of the application. Notice of receipt of the application was pub lished in the Federal Register on May 29, 1971 (36 Federal Register 9894), providing an oppor tunity for interested persons to submit comments and views with respect to the proposal. A copy of the application was forwarded to the United States Department of Justice for its consideration. Time for filing comments and views has expired and all those received have been considered by the Board. The Board has considered the application in the light of the factors set forth in section 3(c) of the Act, including the effect of the proposed acquisi tion on competition, the financial and managerial resources and future prospects of the Applicant and the banks concerned, and the convenience and needs of the communities to be served, and finds that: Applicant has four subsidiary banks with aggre gate deposits of $171.7 million, representing 1.8 per cent of the total commercial bank deposits in the State. Applicant is the fifth largest banking organization and the fifth largest bank holding company in Minnesota. (All banking data are as of December 31, 1970, adjusted to reflect holding company acquisitions and formations approved through June 30, 1971.) Consummation of the proposal herein would increase Applicant’s share of commercial bank deposits in the State to 2.3 per cent, but would effect no change in Applicant’s position in relation to other banking organizations. Bank, with deposits of $37.3 million, is the third largest of eight banks located in the Rochester banking market and holds 22.1 per cent of area deposits. The two largest banks in the market, each affiliated with one of the two largest holding com panies in the State, have 61.9 per cent of market deposits. Applicant’s subsidiary closest to Bank is located 90 miles from it and, in light of this fact and other facts of record, notably, the close exist ing relationship between Applicant and Bank, and the unlikelihood that Applicant would enter Bank’s market de novo, it appears that acquisition of Bank by Applicant would not eliminate any significant existing competition nor foreclose future com petition between Bank and any of Applicant’s present subsidiaries. Indeed, consummation of the proposal herein may serve to enhance competition between Bank and the two larger banks in the market without adverse affects on the five smaller banks within the market. On the basis of the record before it, the Board concludes that con summation of the proposed acquisition would not adversely affect competition in any relevant area. The financial and managerial resources and future prospects of Applicant, its subsidiary banks, and Bank are regarded as satisfactory. Based on the record, it appears that Applicant is in a better position to provide any needed financial and managerial support to the Bank, than the current owner of the Bank. The major banking needs of the Rochester area appear to be adequately served at present. Applicant proposes, however, to im prove Bank’s services by making the expertise of Applicant’s lead bank’s trust department available to Bank, consolidating the data processing services it now obtains from four separate sources, and providing for Bank internal audits and manage ment counsel relating to investments and credit policies. Thus, considerations related to financial and managerial resources as well as to convenience and needs of the community lend some weight in favor of approval. It is the Board’s judgment that the proposed acquisition would be in the public interest and that the application should be ap proved. I t is h e r e b y o r d e r e d , on the basis of the Board’s findings summarized above, that said application be and hereby is approved, provided that the ac quisition so approved shall not be consummated (a) before the thirtieth calendar day following the date of this Order or (b) later than three months after the date of this Order, unless such period is extended for good cause by the Board, or by the Federal Reserve Bank of Minneapolis pursuant to delegated authority. By order of the Board of Governors, July 21, 1971. Voting for this action: Chairman Burns and Governors Robertson, Maisel, and Sherrill. Absent and not voting: Governors Mitchell, Daane, and Brimmer. (Signed) [s e a l ] K A. K e n y o n , Deputy Secretary. enneth LAW DEPARTMENT 683 FIRST V IRG IN IA BANKSHARES CORPORATION, ARLINGTON, V IR G IN IA In the m atter of the application of First Virginia Bankshares Corporation, Arlington, Virginia, for approval of acquisition of 80 per cent or more of the voting shares of the successor by merger to Bank of Bland County, Bland, Virginia. O rder A S tock p p r o v in g by A Bank H c q u is it i o n o l d in g of B ank C o m pany There has come before the Board of Governors, pursuant to section 3 (a )(3 ) of the Bank Holding Company Act of 1956 (12 U.S.C. 1 8 4 2 (a )(3 )), and section 222.3(a) of Federal Reserve Regu lation Y (12 CFR 2 2 2 .3 (a )), an application by First Virginia Bankshares Corporation, Arlington, Virginia ( “Applicant” ), a registered bank holding company, for the Board’s prior approval of the acquisition of 80 per cent or more of the voting shares of the successor by merger to Bank of Bland County, Bland, Virginia ( “Bank”). As required by section 3(b) of the Act, the Board gave written notice of receipt of the appli cation to the Virginia Commissioner of Banking, and requested his views and recommendation. The Commissioner recommended approval. Notice of receipt of the application was pub lished in the Federal Register on June 9, 1971 (36 Federal Register 11127), providing an opportunity for interested persons to submit comments and views with respect to the proposal. A copy of the application was forwarded to the United States Department of Justice for its consideration. Time for filing comments and views has expired and all those received have been considered. The Board has considered the application in the light of the factors set forth in section 3(c) of the Act, including the effect of the proposed acquisi tion on competition, the financial and managerial resources and future prospects of the Applicant and the banks concerned, and the convenience and needs of the communities to be served, and finds that: Applicant is the sixth largest banking organi zation and the fifth largest holding company in Virginia, controlling 15 banks with $474.5 million in deposits. (Banking data are as of June 30, 1971, and reflect holding company acquisitions and for mations approved by the Board to date.) Acquisi tion of Bank (deposits $4.0 million) would not change Applicant’s ranking and consummation of the proposal would not increase concentration in any market. Bank, located in Bland and having a branch at Rocky Gap, is the only bank located in Bland County, and there is no competition between it and Applicant’s closest subsidiary located in N ar rows, 21 miles northeast of Rocky Gap. For geo graphic reasons such competition appears unlikely to develop, and the declining population of the Bland area makes de novo entry by Applicant unlikely. Consummation of the proposed trans action would neither eliminate existing competi tion, foreclose potential competition, nor have adverse effects on the viability or competitive effec tiveness of any competing banks. The proposal, by allowing Bank to provide full banking services, might strengthen Bank’s ability to compete for Bland County deposits with Banks in Wytheville, Virginia, and Bluefield, West Virginia, and thus stimulate competition. Based upon the foregoing, the Board concludes that consummation of the proposed acquisition would not have an adverse effect on competition in any relevant area, and might have a procompetitive effect in Bland County. Applicant, through Bank, proposes to introduce to the area additional types of deposit services, such as certificates of deposit, additional loan services, such as overdraft checking accounts, and trust services, and considerations relating to the convenience and needs of the communities to be served lend strong weight in favor of approval due to the proposed local availability of full banking services. Considerations relating to the banking factors lend some weight toward approval of the application, in that Bank’s financial condition and prospects, although generally satisfactory, would be enhanced through affiliation with Applicant. It is the Board’s judgment that the proposed trans action would be in the public interest and should be approved. I t is h e r e b y o r d e r e d , for the reasons set forth above, that said application be and hereby is approved, provided that the acquisition so ap proved shall not be consummated (a) before the thirtieth calendar day following the date of this Order, or (b) later than three months after the date of this Order, unless such period is extended for good cause by the Board, or by the Federal Reserve Bank of Richmond, pursuant to delegated authority. 684 FEDERAL RESERVE BULLETIN □ AUGUST 1971 By order of the Board of Governors, July 26, 1971. By order of the Board of Governors, July 29, 1971. Voting for this action: Governors Mitchell, Daane, Maisel, and Brimmer. Absent and not voting: Chair man Burns and Governors Robertson and Sherrill. Voting for this action: Vice Chairman Robertson and Governors Mitchell, Maisel, Brimmer and Sherrill. Absent and not voting: Chairman Burns and Governor Daane. (Signed) K enneth A. K enyon, (Signed) K enneth D eputy Secretary. [s e a l ] A. K enyon, D eputy Secretary. [s e a l ] Statem ent M IDLANTIC BANKS INC., NEW ARK, NEW JERSEY In the matter of the application of M idlantic Banks Inc., Newark, N ew Jersey, for approval of acquisition of 100 per cent (less directors' quali fying shares) of the voting shares of the successor by merger to Citizens N ational Bank, Englewood, N ew Jersey. O rder D Stock e n y in g by A c q u is it i o n Bank H o l d in g of B ank C om pany There has come before the Board of Governors, pursuant to section 3 (a )(3 ) of the Bank Holding Company Act of 1956 (12 U.S.C. 1 8 4 2 (a )(3 )), and section 222.3(a) of Federal Reserve Regu lation Y (12 CFR 2 2 2 .3 (a )), an application by Midlantic Banks Inc., Newark, New Jersey, a registered bank holding company, for the Board’s prior approval of the acquisition of 100 per cent (less directors’ qualifying shares) of the voting shares of the successor by merger to Citizens N a tional Bank, Englewood, New Jersey. As required by section 3(b) of the Act, the Board gave written notice of receipt of the appli cation to the Comptroller of the Currency, and requested his views and recommendation. The Comptroller recommended approval of the appli cation. Notice of receipt of the application was pub lished in the Federal Register on March 3, 1971 (36 Federal Register 4081), providing an oppor tunity for interested persons to submit comments and views with respect to the proposal. A copy of the application was forwarded to the United States Department of Justice for its consideration. Time for filing comments and views has expired, and all those received have been considered by the Board. I t is h e r e b y o r d e r e d , for the reasons set forth in the Board’s Statement of this date, that said application be and hereby is denied. Midlantic Banks Inc., Newark, New Jersey (“Applicant” ), a registered bank holding com pany, has applied to the Board of Governors, pursuant to section 3 (a )(3 ) of the Bank Holding Company Act of 1956 (12 U.S.C. 1 8 4 2 (a )(3 )), for prior approval of the acquisition of 100 per cent (less directors’ qualifying shares) of the voting shares of the successor by merger to Citizens National Bank, Englewood, New Jersey (“Citizens Bank” ). Views and recommendation of supervisory au thority. As required by section 3(b) of the Act, the Board notified the Comptroller of the Currency of receipt of the application and requested his views and recommendation thereon. The Comp troller recommended approval of the application. Statutory considerations. Section 3(c) of the Act provides that the Board shall not approve an acquisition that would result in a monopoly or would be in furtherance of any combination or conspiracy to monopolize or to attempt to monop olize the business of banking in any part of the United States. N or may the Board approve a proposed acquisition the effect of which, in any section of the country, may be substantially to lessen competition, or to tend to create a monop oly, or which in any other manner would be in restraint of trade, unless the Board finds that the anticompetitive effects of the proposed transaction are clearly outweighed in the public interest by the probable effect of the transaction in meeting the convenience and needs of the communities to be served. In each case, the Board is required to take into consideration the financial and mana gerial resources and future prospects of the bank holding company and the banks concerned, and the convenience and needs of the communities to be served. Com petitive effect o f proposed transaction. Ap plicant controls four banks with aggregate deposits of $678 million and is the fourth largest banking LAW DEPARTMENT organization in New Jersey, with 4.9 per cent of the deposits in the State.1 The acquisition of Bank (deposit of $194 million) would increase Appli cant’s share of deposits in the State to 6.3 per cent and make it the largest banking organization in the State. The acquisition would also increase Applicant’s share of deposits in the First Banking District from 8.7 per cent to 11.3 per cent. Applicant presently has two subsidiaries in the First District: National Newark & Essex Bank ( “National Newark” ), a $602 million institution which is the fourth largest bank in New Jersey and the third largest bank in Newark; and The Sussex & Merchants National Bank of Newton, a $46 million institution which is the largest of four relatively small banks in Sussex County. It also controls a bank in the Second District: Raritan Valley National Bank, Edison Township, a $22 million bank which is the ninth largest of 20 banks located in Middlesex County; and a bank in the Third District: Elmer Bank & Trust Company, Elmer, an $8 million bank which is the fourth largest of seven banks located in Salem County. Citizens Bank, located in Bergen County in the First District, has deposits of $194 million. It is the fifth largest of 39 banking organizations in the Paterson m ark et2 and the eleventh largest of 88 banks in the First District. There is no present competition existing between Applicant’s three smaller subsidiaries and Citizens Bank and, based on the facts of record, there is unlikely to develop substantial competition. N or would consummation of the acquisition eliminate substantial present competition between Citizens Bank and Applicant’s largest subsidiary, National Newark. Despite the fact that these institutions are in adjoining markets and that their closest offices are 12 miles apart, the record indicates that there is little deposit or loan overlap between the in stitutions. However the elimination of present competition is not the only competitive aspect that the Board must consider in determining whether the approval of an acquisition would be in the public interest. In connection with the review of the application, the Board has considered a comment from the Department of Justice which concluded that con summation of the proposal “would have an ad verse effect on competition”. The Department took 1 Banking data are as of June 30, 1970, and reflect holding company formations and acquisitions approved by the Board through March 31, 1971. 2 Bergen and Passaic Counties constitute the Paterson market. 685 the position that the proposal would eliminate Applicant as a potential de novo entrant or as an entrant through purchase of a small or “foothold” bank into Bergen County and also would eliminate Bank as a potential member of a new holding company system in New Jersey. The Department further expressed concern that the acquisition of Bank would serve to trigger additional acquisitions which would result in the consolidation of com mercial banking in the N orth Jersey area in a few institutions. The Commissioner of Banking for the State of New Jersey also commented upon the proposal. He expressed his concern that approval of the acquisition of Bank “could be instrumental in establishing a precedent for similar concentra tion, which could be accompanied by serious anti competitive ramifications.” Applicant was offered an opportunity to respond to the contentions of the Commissioner and the Department. It replied to the Commissioner’s statement by stating that approval of its proposal would have little precedential value because each individual proposal has a unique character which differentiates it from other proposals. Applicant answered the Justice Department’s comments by stating that the possibility of the opening of de novo branches in the market area of Bank was extremely restricted by home office provisions and population limitations. Applicant further stated, “While the acquisition of a smaller bank than Citizens is theoretically possible, the economic feasibility is here limited by the earnings dilution involved in the acquisition of such banks resulting from the highly unrealistic market price which has been caused by the new law [permitting intra district mergers] and by constant emphasis on the acquisition of small banks as a desirable entrance medium.” Moreover, Applicant argued that either de novo or foothold entry would not be as procompetitive as entry through acquisition of Bank because only such an acquisition would provide a sufficiently large base for competition by the proposed subsidiary with the large New York banks. The Board recognizes that additional competi tion with the larger New York City banks for large customer services would result from approval of the application. While this result is in the public interest insofar as those customers are concerned, the Board must also consider any adverse effects to other segments of the banking public. The Board agrees with the Department and the Com 686 FEDERAL RESERVE BULLETIN □ AUGUST 1971 missioner that there will be important adverse effects on competition resulting from consum mation of the acquisition. First, substantial potential competition would be foreclosed in the Paterson area. Bank is the fifth largest of 39 banking organizations in the Paterson market, which is adjacent to the greater Newark market in which Applicant’s largest subsidiary is located. Applicant’s significant size and its com petitive capability in this latter market make it one of the most likely potential entrants into the Paterson market. That market, as are many of the banking markets, is relatively concentrated in that four banks have over 55 per cent of the deposits. A number of communities which are attractive and capable of supporting entry are available to Applicant in the Paterson market. That market appears to be attractive for entry in view of its proximity to New York City. In fact, since 1969, seven banking organizations not represented in that market have opened new branches in the area. Additionally, there are 26 independent banks in the Paterson market, each with deposits of under $100 million, whose acquisition by Applicant would be less anticompetitive than the acquisition of Bank. These alternatives bring substantial weight against approval of the present proposal. Second, Bank is a desirable subsidiary for a hold ing company located in either the Second or Third Banking District of New Jersey. If Applicant is permitted to acquire Bank, this would prevent a bank holding company from the other districts from using Bank as a means of entry into the First Banking District. Third, the approval of the application could presage a trend towards concentration within banking districts which would have anticompeti tive consequences for the small and medium size banking customers who need a sufficient number of alternatives to compete for their business. “While the Board is not required to follow prece dent which subsequent developments establish to be improvident, it should avoid establishing a precedent which, if consistently applied will clearly do violence to the letter and spirit of the legislation which it has the duty of impartially administering.” (1968 B u l l e t i n 925) Based on the foregoing, the Board concludes that consummation of Applicant’s proposal would not result in a monopoly or be in furtherance of any combination, conspiracy, or attempt to mo nopolize the business of banking in any area. However, the anticompetitive effects of the pro posal are sufficiently serious as to provide sig nificant weight against approval of the application. Financial and managerial resources and future prospects. The financial condition of Applicant and its subsidiary banks is satisfactory, their man agement is capable, and prospects of the group are favorable. The financial condition and management of Bank are generally satisfactory, and its prospects, whether operating independently or as a subsidiary of Applicant, are favorable. These considerations, while consistent with ap proval of the application, provide no significant weight in support of such action. Convenience and needs of the com munities in volved. Consummation of Applicant’s proposal would have an adverse effect on the convenience and needs of Englewood since it would preserve Bank’s home office protection under New Jersey law and close that city to branching from without. (On tjie other hand, merger with Bank would re move the home office protection from Engle wood.) While no additional types of banking services would be introduced into the Paterson market as a result of the proposed affiliation with Applicant, an additional competitive alternative for larger customers would be provided. The con sideration of continued home office protection pro vides weight against approval of the application which is not offset by other factors relating to convenience and needs. Summary and conclusion. On the basis of all relevant facts contained in the record, and in the light of the factors set forth in section 3(c) of the Act, it is the Board’s judgment that the proposed transaction would not be in the public interest, and the application should be denied. C o n c u r r in g S t a t e m e n t M it c h e l l and of G overnors S h e r r il l We concur in the majority view that the applica tion should be denied. However, we have a differ ing judgment as to the weight to be given several factors involved in the application. The majority rely heavily on what they consider to be a substantial lessening of potential competi tion that would result from approval of the appli cation. They give relatively little weight to the procompetitive benefits that would result from approval. In our judgment, the procompetitive aspects are entitled to greater weight. Northern New Jersey and Bergen County are closely linked to the New LAW DEPARTMENT 687 York City market and New Jersey banks must compete with the large New York banks for both individual and business customers. W hat is needed in New Jersey is less fragmentation of its banking resources. In the New York City metropolitan area a $200 million bank is a relatively modest sized institution. To more nearly meet the compe tition of the larger banks across the river, New Jersey needs larger banks. The merging of Appli cant and Bank would strengthen the resources needed to better match competitive alternatives in New York. W ithout affiliation with Applicant, Bank will remain a comparatively passive competi tive factor in the Northern New Jersey-New York City area. We would file a dissent from the majority in this case were it not for the fact that approval of the application would mean that Bank’s existing “home office protection” would continue to close the community of Englewood to new branches for the foreseeable future. “Home office protection” is basically inconsistent with a competitive banking system. It continues to survive in some States even though public policy at the national level, and in most States, increasingly stresses the need to achieve and maintain competitive banking conditions. If Applicant sought to merge Bank with its lead bank, National Newark and Essex, home office protection would be eliminated in Englewood. We would encourage Applicant to explore this method of affiliation. On the basis of the facts of record we would deny the application. cant” ), for the Board’s prior approval of action whereby Applicant would become a bank holding company through the acquisition of 50.4 per cent of the voting shares of First Security Bank of Glendive, Glendive, Montana (“Bank” ). As required by section 3(b) of the Act, the Board gave written notice of receipt of the applica tion to the Superintendent of Banks of the State of Montana and requested his views and recom mendation. The Superintendent recommended ap proval of the application. Notice of receipt of the application was pub lished in the Federal Register on April 22, 1971 (36 Federal Register 7623), providing an op portunity for interested persons to submit com ments and views with respect to the proposed transaction. A copy of the application was for warded to the United States Department of Justice for its consideration. The time for filing comments and views has expired and all those received have been considered by the Board. I t is h e r e b y o r d e r e d , for the reasons set forth in the Board’s Statement of this date, that said appli cation be and hereby is denied. By order of the Board of Governors, July 29, 1971. Voting for this action: Vice Chairman Robertson and Governors Mitchell, Maisel, Brimmer, and Sherrill. Absent and not voting: Chairman Burns and Governor Daane. (Signed) K enneth A. K enyon, D eputy Secretary. [s e a l ] Statem ent FIRST SEBANCO, INC., G LENDIVE, MONTANA In the m atter of the application of First Sebanco, Inc., Glendive, Montana, for approval of action to become a bank holding com pany through the acquisition of 50.4 per cent of the voting shares of First Security Bank of Glendive, Glendive, Montana. O rder D e n y in g B ank H A c t io n o l d in g T o Becom e A C o m pany There has come before the Board of Governors, pursuant to section 3 (a )(1 ) of the Bank Holding Company Act of 1956 (12 U.S.C. 1 8 4 2 (a )(1 )), and section 222.3(a) of Federal Reserve Regula tion Y (12 CFR 2 2 2 .3 (a )), an application by First Sebanco, Inc., Glendive, Montana ( “Appli First Sebanco, Inc., Glendive, Montana (“A p plicant” ), has filed with the Board, pursuant to section 3 (a )(1 ) of the Bank Holding Company Act of 1956, an application for approval of action to become a bank holding company through the acquisition of 50.4 per cent of the voting shares of First Security Bank of Glendive, Glendive, Montana. Views and recommendation o f supervisory au thority. As required by section 3(b) of the Act, the Board gave written notice of receipt of the application to the Superintendent of Banks of the State of Montana and requested his views and recommendation. The Superintendent in recom mending approval of the application indicated that he foresaw no detrimental effect in the proposed change of bank ownership, provided the bank dividends were continued at their present rate. 688 FEDERAL RESERVE BULLETIN S tatu tory considerations. Section 3(c) of the Act provides that the Board shall not approve an acquisition that would result in a monopoly or would be in furtherance of any combination or conspiracy to monopolize or to attempt to monop olize the business of banking in any part of the United States. Nor may the Board approve a pro posed acquisition, the effect of which, in any section of the country, may be substantially to lessen competition, or to tend to create a mo nopoly, or which in any other manner would be in restraint of trade, unless the Board finds that the anticompetitive effects of the proposed transaction are clearly outweighed in the public interest by the probable effect of the transaction in meeting the convenience and needs of the communities to be served. In each case, the Board is required to take into consideration the financial and man agerial resources and future prospects of the bank holding company and the bank concerned, and the convenience and needs of the communities to be served. Insurance A ctivitie s. Applicant is a general in surance agency. Section 3 of the Act permits Board approval of the acquisition of a bank by such a company, if such transaction is determined to be in the public interest. Section 4 of the Act, however, requires that, within two years of ac quiring the bank, the company cease to engage in nonbanking activities or obtain the Board’s ap proval under section 4 (c )(8 ) for their continua tion. The Board has outstanding a proposed amend ment to its Regulation Y (“Bank Holding Com panies”) that would declare certain types of in surance activities to be permissible for bank holding companies subject to Board approval in individual cases. The Board’s action today is not intended to reflect its views on the permissibility of the insurance activities of Applicant. N ature o f the transaction. Applicant, an operat ing insurance agency, formerly Exchange In vestors, Inc., received a certificate of incorporation from the State of Montana on January 4, 1971, to become a bank holding company and conduct a general insurance business in Glendive, Montana, a town of 6,305 inhabitants. Applicant operates on the premises of Bank ($12 million deposits).1 Mr. George C. Johnson is Chairman of the Board of Bank and President of Applicant, and has been associated with its predecessor organizations since the first organization of the insurance agency 1 Banking data are as of June 30, 1970. □ AUGUST 1971 in 1954. Mr. Johnson owns 67.2 per cent of the stock of Bank personally; he and his family to gether control 70.2 per cent, and other directors of Bank and their families control an additional 25.5 per cent. Shareholders unrelated to Bank’s officers own the remaining 4.3 per cent of Bank’s stock. Mr. Johnson proposes to transfer voting shares representing 50.4 per cent of the stock of Bank to Applicant in return for 96 per cent of the 500 shares of Applicant’s outstanding stock. No formal offer has been made to acquire the interests of minority shareholders or permit them to share in the exchange. S ta tu to ry considerations. Applicant has no banking subsidiaries and consummation of the proposal would not eliminate existing or potential competition among the area’s banking offices or among local insurance agencies. However, other aspects of the proposal cause substantial concern. First, the failure of an appli cant to make an equivalent offer to minority share holders has long been regarded by the Board as an adverse circumstance. More importantly, Appli cant’s acquisition debt may adversely affect pros pects of Applicant and Bank. In applications involving multibank holding companies, the Board has considered significant debt to acquire banks as being an adverse factor. (E.g. 1970 B u l l e t i n 948.) Such debt may ad versely affect the company itself, or lessen the ability of the company to furnish capital to its subsidiary banks as needed. Thus, the amount and maturity of the debt must be considered in relation to the ability of the holding company to service the debt, and the likelihood that the subsidiary banks will need capital. The debt factor is then balanced with other considerations in determining whether the acquisition would be in the public interest. The record reflects the following facts: Appli cant proposes to assume $219,000 debt (now owed by Mr. Johnson to a third party bank) which would result in a debt-to-equity ratio of 105 per cent. The loan bears interest at 4 Vi per cent per year and is renewable annually; it is contemplated that the loan will be repaid in seven to nine years. Assuming all of Applicant’s insurance activities to be permissible (which is not in issue in this appli cation), Applicant estimates that net insurance income added to projected dividends of Bank will be sufficient to meet its debt obligations. How ever, Applicant’s gross commission income has been declining, and there is some question whether LAW DEPARTMENT 689 Applicant could maintain its percentage of net to gross income. Furthermore, data submitted by Applicant indicate that funds available for debt service would not cover the anticipated reduction of the principal and interest. In view of these considerations, Applicant’s ability to service the debt is questionable. The financial history and condition of Bank can be considered to be fairly satisfactory and capital has recently improved to a reasonably satisfactory level because of retained earnings. Under all of the circumstances in this case, the Board concludes that the acquisition debt involved in this proposal presents adverse circumstances bearing on the financial condition and prospects of Applicant and Bank. Such circumstances are not outweighed by any procompetitive factors or by circumstances relating to the convenience and needs of the communities to be served. Accord ingly, approval of the application is not in the public interest and it should be denied. ATLANTIC BANCORPORATION, JACKSONVILLE, FLORIDA In the m a tter o f the application o f A tla n tic Bancorporation, Jacksonville, F lorida, fo r appro va l of acquisition o f 52 p er cen t or m ore o f the voting shares o f G ainesville A tla n tic Bank, G ainesville, F lorida , a p ro p o sed new bank. O rder A p p r o v in g by A Bank H c q u is it i o n o l d in g of B a n k Stock C o m pany There has come before the Board of Governors, pursuant to section 3 (a )(3 ) of the Bank Holding Company Act of 1956 (12 U.S.C. 1 8 4 2 (a )(3 )) and section 222.3(a) of Federal Reserve Regula tion Y (12 CFR 2 2 2 .3 (a )), an application by At lantic Bancorporation, Jacksonville, Florida (“Ap plicant”), a registered bank holding company, for the Board’s prior approval of the acquisition of 52 per cent or more of the voting shares of Gaines ville Atlantic Bank, Gainesville, Florida (“Bank”), a proposed new bank. As required by section 3(b) of the Act, the Board gave written notice of receipt of the appli cation to the Florida Commissioner of Banking, and requested his views and recommendation. The Commissioner responded that he recommended approval of the application. Notice of receipt of the application was pub lished in the Federal Register on June 9, 1971 (36 Federal Register 11126), providing an opportu nity for interested persons to submit comments and views with respect to the proposal. A copy of the application was forwarded to the United States Department of Justice for its consideration. Time for filing comments and views has expired and all those received have been considered by the Board. The Board has considered the application in the light of the factors set forth in section 3(c) of the Act, including the effect of the proposed acquisi tion on competition, the financial and managerial resources and future prospects of the Applicant and the banks concerned, and the convenience and needs of the communities to be served, and finds that: Applicant has 17 subsidiary banks with ag gregate deposits of $645.7 million, representing 4.6 per cent of the bank deposits in Florida and ranks as the fourth largest bank holding company in the State. (Banking data are as of December 31, 1970, and reflect holding company formations and acquisitions approved by the Board through June 30, 1971.) Approval of the acquisition of Bank would not presently alter this ranking or in crease Applicant’s deposits since Bank, as stated above, is a proposed new bank. All of Applicant’s existing subsidiaries are in excess of 45 miles from Gainesville with one ex ception. Applicant’s First National Bank of Gainesville is four miles southeast of Bank and is the largest bank in the Gainesville area with de posits of $47.7 million. However, there are nine other banks competing in the area, including af filiates of Florida’s first, fifth, and thirteenth largest holding companies. These latter three control some 44 per cent of area deposits and are able to provide strong competition. Moreover, the Gaines ville area has experienced rapid population growth and appears to possess attractive opportunities for other de n ovo entrants. Considering the present competition existing in Gainesville and the proba bility of increased future competition, the Board concludes that consummation of the proposed ac quisition would not adversely affect competition in any relevant area. The financial and managerial resources and fu ture prospects of Applicant, its subsidiary banks, and Bank are regarded as satisfactory. The estab lishment of Bank would provide a more conven ient banking location for many customers in the northern Gainesville area. Thus, considerations re lated to the convenience and needs of the commu nity lend some weight in favor of approval. It is the Board’s judgment that the proposed acquisition FEDERAL RESERVE BULLETIN □ AUGUST 1971 690 would be in the public interest and that the appli cation should be approved. I t is h e r e b y o r d e r e d , on the basis of the Board’s findings summarized above, that said ap plication be and hereby is approved, provided that the acquisition so approved shall not be consum mated (a) before the thirtieth calendar day follow ing the date of this Order or (b) later than three months after the date of this Order, and provided further that (c) Gainesville Atlantic Bank shall be open for business not later than six months after the date of this Order. The periods described in (b) and (c) hereof may be extended for good cause by the Board or by the Federal Reserve Bank of Atlanta pursuant to delegated authority. By order of the Board of Governors, August 3, 1971. Voting for this action: Chairman Burns and Gov ernors Robertson, Mitchell, Brimmer, and Sherrill. Ab sent and not voting: Governors Daane and Maisel. (Signed) K enneth A. K enyon, D e p u ty Secretary. [ se a l ] UNITED MIDWEST EQUITY, INC., DETROIT, MICHIGAN In the m atter o f the application o f U n ited M id w est E q u ity, Inc., D etro it, M ich ig a n , fo r a pproval o f action to beco m e a bank holding com pan y through the acquisition o f 97.1 p er cen t o f the v o t ing shares o f L ib erty State Bank and Trust, H am tra m ck , M ichigan. O rder A p p r o v in g A Bank H A c t io n o l d in g T o B ecom e C om pany There has come before the Board of Governors, pursuant to section 3 (a )(1 ) of the Bank Holding Company Act of 1956 (12 U.S.C. 1 8 4 2 (a )(1 )) and section 222.3(a) of Federal Reserve Regula tion Y (12 CFR 2 2 2 .3 (a )), an application by United Midwest Equity, Inc., (“Applicant”), De troit, Michigan, for the Board’s prior approval of action whereby Applicant would become a bank holding company through the acquisition of 97.1 per cent of the voting shares of Liberty State Bank and Trust (“Bank”), Hamtramck, Michigan. As required by section 3(b) of the Act, the Board gave written notice of receipt of the appli cation to the Commissioner of Financial Institu tions for the State of Michigan, and requested his views and recommendation. The Commissioner recommended approval of the application. Notice of receipt of the application was pub lished in the Federal Register on July 10, 1971 (36 Federal Register 13004), providing an op portunity for interested persons to submit com ments and views with respect to the proposal. A copy of the application was forwarded to the United States Department of Justice for its con sideration. Time for filing comments and views has expired and all those received have been considered. The Board has considered the application in the light of the factors set forth in section 3(c) of the Act. including the effect of the proposed acquisi tion on competition, the financial and managerial resources and future prospects of the Applicant and the bank concerned, and the convenience and needs of the communities to be served, and finds that: Applicant is a nonoperating Michigan corpora tion recently formed for the purpose of acquiring Bank. As Applicant has no present operations or subsidiaries, consummation of the proposal would eliminate neither existing nor potential competi tion, and there would be no adverse effects on competing banks. Bank, with deposits of approximately $55 mil lion, controls .3 per cent of commercial bank de posits in the State of Michigan. The acquisition proposed herein should result in Bank becoming a stronger and more viable banking institution and a more effective competitor in the relevant mar ket. Banking factors weigh in favor of approval of the application since the transaction would place responsible local interests in management of Bank, and Applicant proposes to undertake specific meas ures to improve Bank’s present financial condition and to continue to improve operating procedures. While it appears that banking needs of the area are being adequately served at the present time, it is expected that consummation of the proposal will strengthen the Bank and enable it to better serve the banking needs of the area. Therefore, consid erations relating to convenience and needs of the communities to be served also lend weight in favor of approval of the application. It is the Board’s judgment that the proposed transaction would be in the public interest and that the application should be approved. I t is h e r e b y o r d e r e d , for the reasons set forth above, that said application be and hereby is approved, provided that the acquistion so approved shall not be consummated (a) before the thirtieth calendar day following the date of this Order or (b) later than three months after the date of this LAW DEPARTMENT 691 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, August 3, 1971. Voting for this action: Chairman Burns and Gov ernors Robertson, Mitchell, Brimmer, and Sherrill. Absent and not voting: Governors Daane and Maisel. (Signed) K e n n e t h A. K e n y o n , D e p u ty Secretary. [s e a l ] FIRST & MERCHANTS CORPORATION, RICHMOND, VIRGINIA In the m a tter o f the application o f F irst & M e r chants C orporation , R ich m o n d , V irginia , fo r prior a p p ro va l o f the acquisition o f 1 00 p er cen t ( less directors' qualifying shares) o f the votin g shares o f the successor b y m erger to The F irst N atio n a l Bank o f D anville, D an ville, Virginia. O rder A p p r o v in g A c q u is it i o n of B a n k Stock B y B a n k H o l d in g C o m p a n y There has come before the Board of Governors, pursuant to section 3 (a )(3 ) of the Bank Holding Company Act of 1956 (12 U.S.C. 1 8 4 2 (a )(3 )), and section 222.3(a) of Federal Reserve Regula tion Y (12 CFR 2 2 2 .3 (a )), an application by First & Merchants Corporation, Richmond, Vir ginia ( “Applicant”), a bank holding company, for the Board’s prior approval of the acquisition of 100 per cent (less director’s qualifying shares) of the voting shares of the successor by merger to The First National Bank of Danville, Danville, Virginia. As required by section 3(b) of the Act, the Board gave written notice of receipt of the application to the Comptroller of the Currency, and requested his views and recommendation. The Comptroller recommended approval of the application. Notice of receipt of the application was pub lished in the Federal Register on April 27, 1971 (36 Federal Register 7875), providing an oppor tunity for interested persons to submit comments and views with respect to the proposal. A copy of the application was forwarded to the United States Department of Justice for its consideration. Time for filing comments and views has expired, and all those received have been considered by the Board. I t is h e r e b y o r d e r e d , for the reasons set forth in the Board’s Statement of this date, that said ap plication be and hereby is approved, provided that the acquisition so approved shall not be consum mated (a) before the thirtieth calendar day fol lowing the date of this Order, or (b) later than three months after the date of this Order, unless such period is extended for good cause by the Board, or by the Federal Reserve Bank of Rich mond pursuant to delegated authority. By order of the Board of Governors, August 5, 1971. Voting for this action: Chairman Burns and Gov ernors Daane, Maisel, and Sherrill. Voting against this action: Governor Robertson. Absent and not voting: Governors Mitchell and Brimmer. (Signed) K enneth A. K enyon, D e p u ty S ecretary. [s e a l ] Statem ent First & Merchants Corporation, Richmond, Vir ginia, ( “Applicant”), a bank holding company, has applied to the Board of Governors, pursuant to section 3 (a )(3 ) of the Bank Holding Company Act of 1956 (12 U.S.C. 1 8 4 2 (a )(3 )), for prior approval of the acquisition of 100 per cent (less directors’ qualifying shares) of the voting shares of the successor by merger to The First National Bank of Danville, Djanville, Virginia (“First National”). V iew s and recom m en dation o f su p erviso ry au th ority. As required by section 3(b) of the Act, the Board notified the Comptroller of the Cur rency of receipt of the application and requested his views and recommendation thereon. The Comptroller recommended approval of the pro posed acquisition. S ta tu tory considerations. Section 3(c) of the Act provides that the Board shall not approve an acquisition that would result in a monopoly or would be in furtherance of any combination or conspiracy to monopolize or to attempt to mo nopolize the business of banking in any part of the United States. Nor may the Board approve a pro posed acquisition the effect of which, in any sec tion of the country, may be substantially to lessen competition, or to tend to create a monopoly, or which in any other manner would be in restraint of trade, unless the Board finds that the anticompeti tive effects of the proposed transaction are clearly outweighed in the public interest by the probable effect of the transaction in meeting the conven ience and needs of the communities to be served. In each case, the Board is required to take into consideration the financial and managerial re sources and future prospects of the bank holding 692 FEDERAL RESERVE BULLETIN □ AUGUST 1971 company and the banks concerned, and the con venience and needs of the communities to be served. C o m p etitiv e effect o f p ro p o sed transaction. Ap plicant, the third largest banking organization in Virginia, controls one bank, First & Merchants National Bank (“Merchants”), which has 67 bank ing offices located throughout the State. Mer chants, with aggregate deposits of $768 million, has 9.6 per cent of the deposits in Virginia and is the second largest bank in the State.1 Applicant’s acquisition of First National ($45 million depos its) would increase its share of deposits in Vir ginia by only .6 per cent and would not change its ranking. First National is the largest of ten banks located in Pittsylvania County, a relevant market area, controlling 27 per cent of deposits in the market. The closest office of Merchants to First National is approximately 65 miles away and competition between this office and First National is minimal, with little likelihood of increasing in the future be cause of the State branching limitations. The Board has considered a report of the De partment of Justice which concluded that approval of the proposal would have an “adverse effect on competition.” The Department recognized there was little existing competition between Merchants and First National but argued that acquisition of the largest competitor in the market would elimi nate the potential of Merchants entering Pittsyl vania County, either through de n o vo entry, or by purchase of a small bank in the County. Applicant was given an opportunity to reply and did so. Applicant answered the Department’s contention that Merchants was a potential de novo entrant into the Pittsylvania market by stating that the economy of the market is uncertain due to its heavy reliance on the tobacco and textile indus tries, and that there are fewer persons per banking office in Pittsylvania County than in other areas of the State. Applicant answered the Department’s contention that entry through acquisition of a small or “foothold” bank would be less anticom petitive than the proposed acquisition by stating that there was no indication that any “foothold” banks were available, or that the Pittsylvania mar ket was attractive enough so that Applicant would enter it regardless of whether its application was denied. 1 Banking data are as o f December 31, 1970, and re flect holding com pany formations and acquisitions ap proved by the Board through May 31, 1971. It should first be noted that although First Na tional is the largest in the relevant area, it is not substantially larger than the second largest bank, and, during the last eight years, First National’s rate of growth has been considerably smaller than that of the other Danville banks. Moreover, there exists substantial competition for First National. As far as entry into the market is concerned Pitt sylvania County does not appear to be attractive for de n ovo entry. The population of Pittsylvania County and Danville, the largest city in the County, has increased by less than 1 per cent over the past decade. The tobacco and textile indus tries, which are the two most important for the area, have been stagnant or declining, and the ad ministrative headquarters of the largest employer in Danville has been moved out of the State. Addi tionally, the number of persons per banking office and the ratio of deposits to banking offices in the market area are considerably lower than the State wide average. There is little likelihood of Applicant acquiring a smaller bank in the Pittsylvania market than First National. There are four independent banks headquartered in Danville besides First National. Of these four, two are converted industrial loan associations which are unsuitable because of their size and inexperience in commercial bank prac tices. A third bank has indicated little or no inter est in affiliation with a holding company. The fourth bank is the second largest in the market, with a market share of 21.4 per cent, and its growth rate over the recent past has been nearly double that of First National. The acquisition of this bank would appear to have similar competi tive consequences as the acquisition of First National. There are three other independent banks in Pittsylvania County which are located outside of Danville. Another holding company has already indicated it will seek to acquire one of these banks. The other two banks are relatively small, in smaller towns, and are not attractive to Applicant at this time. Financial and m anagerial resources and fu tu re prospects. The financial condition and manage ment of Applicant and its subsidiary are satisfac tory and the prospects of each are favorable. First National has satisfactory financial condi tion and management and its prospects seem fa vorable. These factors are consistent with approval of the application. C on ven ien ce and needs. As stated above, Pitt sylvania County’s economy rests heavily on the LAW DEPARTMENT 693 tobacco and textile industries which together ac count for almost one-half of the total area work force. Both these industries have experienced diffi culties in recent years, textiles from a large in crease in imports and tobacco from health con cerns. These difficulties have resulted in the area economy becoming stagnant and have increased interest on the part of local people in diversifica tion. Several new companies have been brought into Pittsylvania County through the efforts of these local people. However, before further diver sification can be accomplished, a full-scale whole sale banking organization is needed in order to facilitate such expansion. Applicant’s acquisition of First National would provide Pittsylvania County with such a banking organization through the use of Merchant’s extensive experience in the field of wholesale banking. It is unlikely that First National could evolve into the type of banking or ganization that is needed without affiliation with Applicant. These considerations of convenience and needs of the community lend support for ap proval of the application. Su m m ary and conclusion. On the basis of all re levant facts contained in the record, and in the light of the factors set forth in section 3(c) of the Act, it is the Board’s judgment that the proposed transaction would be in the public interest, and that the application should be approved. D of is s e n t in g G overnor Sta tem ent R o be rt so n I dissent from the majority’s approval of this application since I feel Applicant has not carried the burden of showing that approval would be in the public interest. There is no dispute on my part with the conclu sion that there is little existing competition be tween Applicant’s subsidiary First & Merchants National Bank ( “Merchants”) and The First Na tional Bank of Danville (“First National”). How ever, Applicant’s acquisition of First National, the dominant competitor in Pittsylvania County, would foreclose the possibility of Applicant’s en trance into that market through a less anticom petitive route. Alternative methods of entry would increase bank competition, with obvious benefits to the public. Applicant states that acquisition of large organizations is consistent with its operations, and that it would not consider other means of entry. It is easy to understand Applicant’s reluctance to consider these other means, which would not pro vide it with immediate dominance in the market, especially in the light of Board approval of appli cations such as the present one. Nevertheless, because of my strong belief in the ability of competition to advance the public inter est, I would require a greater showing that alter native means of entry are unavailable. Applicant has not made that showing in this case and there fore I would deny the application. HAMILTON BANCSHARES, INC., CHATTANOOGA, TENNESSEE In the m atter o f the application o f H am ilton B ancshares, Inc., C h attan ooga , Tennessee fo r a p p ro va l o f acquisition o f 9 0 .5 p er cen t o r m ore o f the votin g shares o f The F irst N a tio n a l B ank of P olk C o u n ty , C opperhill, Tennessee. O rder A p p r o v in g by A B ank H c q u is it i o n o l d in g of B a n k S tock C om pany There has come before the Board of Governors, pursuant to section 3 (a )(3 ) of the Bank Holding Company Act of 1956 (12 U.S.C. 1 8 4 2 (a )(3 )) and section 222.3(a) of Federal Reserve Regula tion Y (12 CFR 22 2 .3 (a )), an application by Hamilton Bancshares, Inc., Chattanooga, Tennes see ( “Applicant”), a registered bank holding com pany, for the Board’s prior approval of the acquisi tion of 90.5 per cent or more of the voting shares of The First National Bank of Polk County, Cop perhill, Tennessee ( “Bank”). As required by section 3(b) of the Act, the Board gave written notice of receipt of the applica tion to the Comptroller of the Currency, and re quested his views and recommendation. The Comptroller has recommended approval of the application. Notice of receipt of the application was pub lished in the Federal Register on June 9, 1971 (36 Federal Register 11127), providing an opportunity for interested persons to submit comments and views with respect to the proposal. A copy of the application was forwarded to the United States De partment of Justice for its consideration. Time for filing comments and views has expired and all those received have been considered. The Board has considered the application in the light of the factors set forth in section 3(c) of the Act, including the effect of the proposed acquisi tion on competition, the financial and managerial resources and future prospects of the Applicant and the banks concerned, and the convenience and needs of the communities to be served, and finds that: 694 FEDERAL RESERVE BULLETIN □ AUGUST 1971 Applicant, the largest bank holding company and fifth largest banking organization in Tennes see, controls 9 banks which hold combined depos its of $441.6 million, representing 5.9 per cent of the total deposits held by Tennessee banks.1 (All banking data are as of December 31, 1970, ad justed to reflect holding company formations and acquisitions approved by the Board through June 30, 1971.) Upon acquisition of Bank (deposits of $12.7 million), Applicant would remain the fifth largest banking organization and its control of de posits in the State would increase slightly to 6.1 per cent. Bank, which operates one office at Copperhill, Tennessee, is the largest of three banks in Polk County with 60.1 per cent of the deposits in the county. Acquisition of Bank would represent Ap plicant’s initial entry into Polk County; Applicant’s subsidiary closest to Bank is approximately 60 miles away from it. Because of the distances in volved, Tennessee’s restrictive branching laws, and the unlikelihood that Applicant would enter the Polk County market de n o v o , it appears that con summation of the proposal herein would not re sult in the elimination of any significant present competition, nor the foreclosure of any significant potential competition between Bank and Appli cant’s subsidiaries. Although Applicant is acquir ing the largest bank in the relevant market, the limited size and nature of the market (each bank is the sole bank within its community) make it appear unlikely that competition between existing banks in the market will be altered. On the basis of the record before it, the Board concludes that con summation of the proposed acquisition would not adversely affect competition in any relevant area. The financial and managerial resources and fu ture prospects of Applicant, its subsidiary banks, and Bank are regarded as satisfactory. The major banking needs of Copperhill appear to be ade quately served at present. Applicant proposes to improve bank services by making its trust services and managerial resources more readily available. Thus, considerations related to financial and man agerial resources as well as convenience and needs of the community are consistent with approval. It is the Board’s judgment that the proposed transac tion would be in the public interest, and that the application should be approved. It is hereby ordered, fo r th e reason s se t fo r th a b o v e , th a t sa id a p p lic a tio n b e a n d h e r e b y is ap p roved , p r o v id e d th a t th e a c q u is it io n so ap - 1 Applicant also controls 2 banks in Georgia which hold combined deposits o f $56.8 million. proved shall not be consummated (a) before the thirtieth calendar day following the date of this Order or (b) later than three months after the date of this Order, unless such period is extended for good cause by the Board, or by the Federal Re serve Bank of Atlanta pursuant to delegated authority. By order of the Board of Governors, August 5, 1971. Voting for this action: Chairman Burns and Gov ernors Robertson, Mitchell, and Brimmer. Absent and not voting: Governors Daane, Maisel, and Sherrill. (Signed) K enneth A. K enyon, D e p u ty S ecreta ry. [s e a l ] THE SUNCOOK BANK, SUNCOOK, NEW HAMPSHIRE In the m a tter o f the application o f The S uncook B ank, S u n cook , N e w H am psh ire, fo r a p p ro va l o f action to b eco m e a bank holding co m p a n y through the acquisition o f 4 8 p er cen t o f the vo tin g shares o f The H o o k se tt Bank, H o o k sett, N e w H a m p sh ire , a p ro p o sed new bank. O rder A a p p r o v in g A c t io n t o B ecom e B a n k H o l d in g C o m p a n y There has come before the Board of Governors, pursuant to section 3 (a )(1 ) of the Bank Holding Company Act of 1956 (12 U.S.C. 1 8 4 2 (a )(1 )) and section 222.3(a) of Federal Reserve Regula tion Y (12 CFR 2 2 2 .3 (a )), an application by The Suncook Bank, Suncook, New Hampshire ( “Ap plicant”), for the Board’s prior approval of action whereby Applicant would become a bank holding company through the acquisition of 48 per cent of the voting shares of The Hooksett Bank, Hook sett, New Hampshire (“Bank”), a proposed new bank. As required by section 3(b) of the Act, the Board gave written notice of receipt of the appli cation to the New Hampshire Bank Commissioner, and requested his views and recommendation. The Commissioner recommended approval of the application. Notice of receipt of the application was pub lished in the Federal Register on June 19, 1971 (36 Federal Register 11833), providing an oppor tunity for interested persons to submit comments and views with respect to the proposal. A copy of the application was forwarded to the United States Department of Justice for its consideration. Time LAW DEPARTMENT for filing comments and views has expired and all those received have been considered. The Board has considered the application in the light of the factors set forth in section 3(c) of the Act, including the effect of the proposed acquisi tion on competition, the financial and managerial resources and future prospects of the Applicant and the bank concerned, and the convenience and needs of the communities to be served and finds that: Applicant, a bank with $16.2 million deposits, has one office with 1.6 per cent of the deposits in the State, and 25 per cent of the deposits in the Concord area. (Banking data are as of December 31, 1970.) Applicant proposes to acquire 48 per cent of the voting shares of Bank, and directors of Applicant propose to acquire an additional 4 per cent, with local residents owning the remainder. Bank, the first to be located in Hooksett, a town of 5,300 3 miles south of Applicant, will, in effect, serve as a branch of Applicant. Bank should as sume a portion of Applicant’s existing business from the Hooksett area* However, this will not re sult in an elimination of existing or potential com petition since Bank will be a new institution and will not open except as a subsidiary of Applicant. Based on the record before it, the Board concludes that consummation of the proposal will have no adverse effects on existing or potential competition. Rather, the formation of Bank will result in in creased banking facilities and competition. The financial and managerial resources and fu ture prospects of Applicant and Bank are reason ably satisfactory and consistent with approval of the application. The development of an industrial park and a shopping center, both in the vicinity of Bank, have created the need for additional banking services in the area. In view thereof and in view of recent in creases in population of the area, considerations relating to the convenience and needs of the com munity to be served weigh in favor of approval. I t is h e r e b y o r d e r e d , for the reasons set forth above, that said application be and hereby is ap proved, provided that the acquisition so approved shall not be consummated (a) before the thirtieth calendar day following the date of this Order or (b) later than three months after the date of this Order, and provided further that (c) The Hooksett Bank shall be open for business not later than six months after this Order. The periods described in (b) and (c) hereof may be extended for good cause by the Board, or by the Federal Reserve Bank of Boston pursuant to delegated authority. 695 By order of the Board of Governors, August 5, 1971. Voting for this action: Chairman Burns and Gov ernors Robertson, Mitchell, and Brimmer. Absent and not voting: Governors Daane, Maisel, and Sherrill. (Signed) K enneth A. K enyon, D e p u ty S ecretary. [s e a l ] COMMERCE BANCSHARES, INC., KANSAS CITY, MISSOURI In the m a tter o f the a pplication o f C o m m erce Bancshares, Inc., K a n sa s C ity, M issouri, fo r a p p ro va l o f acquisition o f m ore than §0 p er cen t of the votin g shares o f F enton Bank, F enton, M issouri. O rder A p p r o v in g by A B ank H c q u is it i o n o l d in g of B a n k S tock C o m pany There has come before the Board of Governors, pursuant to section 3 (a )(3 ) of the Bank Holding Company Act of 1956 (12 U.S.C. 1 8 4 2 (a )(3 )) and section 222.3(a) of Federal Reserve Regula tion Y (12 CFR 2 2 2 .3(a)), an application by Commerce Bancshares, Inc., Kansas City, Mis souri ( “Applicant”), for the Board’s prior ap proval of the acquisition of more than 80 per cent of the voting shares of Fenton Bank, Fenton, Mis souri (“Bank”). As required by section 3(b) of the Act, the Board gave written notice of receipt of the appli cation to the Missouri Commissioner of Finance, and requested his views and recommendation. The Commissioner responded that his office considered the proposal a very progressive step for banking in Missouri. Notice of receipt of the application was pub lished in the Federal Register on June 15, 1971 (36 Federal Register 11538), providing an oppor tunity for interested persons to submit comments and views with respect to the proposal. A copy of the application was forwarded to the United States Department of lustice for its consideration. Time for filing comments and views has expired and all those received have been considered. The Board has considered the application in the light of the factors set forth in section 3(c) of the Act, including the effect of the proposed acquisi tion on competition, the financial and managerial resources and future prospects of the Applicant and the banks concerned, and the convenience and 696 FEDERAL RESERVE BULLETIN □ AUGUST 1971 needs of the communities to be served, and finds that: Applicant, the third largest bank holding com pany and the third largest banking organization in Missouri, controls eighteen banks with aggre gate deposits of $866.7 million, representing 7.6 per cent of the commercial bank deposits in the State. (All banking data are as of December 31, 1970, adjusted to reflect holding company forma tions and acquisitions approved by the Board through June 30, 1971.) As a result of consumma tion of the proposal herein, Applicant’s position in relation to the State’s other bank holding com panies and banking organizations would remain unchanged. Bank ($14.1 million), located 16 miles south west of downtown St. Louis in the extreme south ern portion of St. Louis County, is the fifth largest of the eight banks competing in its primary service area, with 9.9 per cent of that area’s deposits. The addition of Bank to Applicant’s system would give Applicant four subsidiaries in the St. Louis banking market; however, Applicant would con trol only 1.9 per cent of the deposits therein and rank sixth among the bank holding companies operating in the St. Louis market. None of Ap plicant’s present subsidiaries compete with Bank to any significant extent, and the development of such competition in the future appears remote be cause of natural and man-made barriers, and the presence of banks in the intervening areas. The overall effect on competition should be procompetitive since Bank’s acquisition by Applicant will dissolve an existing affiliation of Bank with one of the banks operating in its service area. It does not appear, therefore, that significant existing com petition would be eliminated or significant poten tial competition foreclosed by consummation of Applicant’s proposal, or that there would be undue adverse effects on any bank in the area involved. Based upon the foregoing, the Board concludes that consummation of the proposed acquisition would not have significant adverse effects on com petition in any relevant area. The banking factors, as they relate to Applicant, its subsidiaries, and Bank, are regarded as consistent with approval of the application. Considerations relating to the con venience and needs of the communities to be served lend some weight in support of approval. Applicant intends to assist Bank in expanding its physical facilities; moreover, affiliation with Ap plicant should enable Bank to offer a wider range of banking services, including bond portfolio man agement, expanded consumer lending, and data processing. It is the Board’s judgment that the proposed transaction would be in the public in terest, and that the application should be approved. I t is h e r e b y o r d e r e d , for the reasons set forth above, that said application be and hereby is ap proved, provided that the acquisition so approved shall not be consummated (a) before the thirtieth calendar day following the date of this Order or (b) later than three months after the date of this Order, unless such period is extended for good cause by the Board, or by the Federal Reserve Bank of Kansas City pursuant to delegated authority. By order of the Board of Governors, August 10, 1971. Voting for this action: Chairman Burns and Gov ernors Mitchell, Brimmer, and Sherrill. Absent and not voting: Governors Robertson, Daane, and Maisel. (Signed) K enneth A. K enyon, D e p u ty S ecretary. [s e a l ] UNITED BANK CORPORATION OF NEW YORK, ALBANY, NEW YORK In the m a tter o f the application o f U n ited Bank C orporation o f N e w Y o rk , A lb a n y, N e w Y o rk , fo r appro va l o f action to b eco m e a bank holdin g c o m pany through the acquisition o f 1 0 0 p er cen t o f the votin g shares o f State Bank o f A lb a n y, A lb a n y, N ew Y o rk , and 1 0 0 p e r cen t o f the vo tin g shares ( less directors' qu alifyin g shares) o f the successor by m erger to L ib e rty N a tio n a l Bank and Trust C om pan y, Buffalo, N e w Y o rk . O rder A a p p r o v in g B ank H A c t io n o l d in g to B ecom e C o m pany There has come before the Board of Governors, pursuant to section 3 (a )(1 ) of the Bank Holding Company Act of 1956 (12 U.S.C. 18 4 2 (a )(1 )) and section 222.3(a) of Federal Reserve Regula tion Y (12 CFR 2 2 2 .3(a)), an application by United Bank Corporation of New York, Albany, New York, for the Board’s prior approval of action whereby Applicant would become a bank holding company through the acquisition of 100 per cent of the voting shares of State Bank of Albany, Albany, New York ( “State Bank”), and 100 per cent of the voting shares (less directors’ qualifying shares) of the successor by merger to Liberty National Bank and Trust Company, Buffalo, New York ( “Liberty National”). (Liberty National is to be merged into a nonoperating bank that has significance only as a vehicle to accomplish the acquisition of all the shares of Liberty National; LAW DEPARTMENT accordingly, acquisition of the shares of the suc cessor bank is treated as an acquisition of shares of Liberty National.) As required by section 3(b) of the Act, the Board gave written notice of receipt of the appli cation to the Comptroller of the Currency and to the Superintendent of Banks of the State of New York, and requested their views and recommenda tions. Both the Comptroller and the Superinten dent recommended approval of the application. Notice of receipt of the application was pub lished in the Federal Register on June 15, 1971 (36 Federal Register 11539), providing an oppor tunity for interested persons to submit comments and views with resptct to the proposal. A copy of the application was forwarded to the United States Department of Justice for its consideration. Time for filing comments and views has expired and all those received have been considered. The Board has considered the application in the light of the factors set forth in section 3(c) of the Act, including the effect of the proposed acquisition on competition, the financial and managerial resources and future prospects of the Applicant and the banks concerned, and the con venience and needs of the communities to be served, and finds that: Applicant is a newly-organized corporation. Upon consummation of this proposal, Applicant will control $1.2 billion in deposits, representing 1.4 per cent of total commercial bank deposits in New York, and would become the thirteenth largest banking organization and sixth largest multi-bank holding company in the State. (Bank ing data, unless otherwise noted, are as of Decem ber 30, 1970, and reflect holding company ac quisitions approved through June 30, 1971.) State Bank ($743 million in deposits), operates in the Fourth Banking District and has 31 offices located therein. It controls 34 per cent (as of June 30, 1970) of the commercial bank deposits in the relevant market, which is approximated by Albany, Schenectady and Rensselaer Counties and the southern portion of Saratoga County. On the basis of deposits, State Bank is the largest of fif teen banking organizations in that market. Liberty National ($452 million in deposits) op erates its 34 offices in the Ninth Banking District, and controls 14 per cent (as of June 30, 1970) of the commercial bank deposits in the relevant market, which is approximated by Erie and N i agara Counties. On the basis of deposits, Liberty National is the third largest of the ten banking organizations in that market. State Bank and Liberty National do not compete 697 with each other to any meaningful extent, and it appears unlikely they would do so in the reason ably foreseeable future. No office of one is located within 185 miles of the other, and at the present time New York law prevents either from branch ing or merging outside its Banking District. It appears that affiliation of the two banks in a hold ing company system would enable Liberty Na tional to compete more effectively with the larger Buffalo banks and would result in a banking organization of sufficient size to compete with the major bank holding companies now doing business in upstate New York or planning to do so in the future. The affiliation should not raise significant barriers to entry into the relevant markets nor have an undue adverse effect on other banks there, many of which are or propose to be come subsidiaries of holding companies. On the basis of the record before it, the Board concludes that consummation of the proposal would not have a significant adverse effect on competition in any relevant area. The financial condition of each bank appears satisfactory; both are regarded as having com petent managements and favorable prospects. It appears that Applicant will begin operations in satisfactory condition and with competent man agement; its prospects, which are largely depend ent upon those of its two proposed subsidiaries, also appear favorable. Affiliation of the two banks should enable each to offer improved and ex panded services. Liberty National could expand its services in areas such as leasing and computer services. It is the Board’s judgment that the pro posed transaction is in the public interest, and that the application should be approved. I t is h e r e b y o r d e r e d , for the reasons sum marized above, that said application be and hereby is approved, provided that the acquisition so ap proved shall not be consummated (a) before the thirtieth calendar day following the date of this Order or (b) later than three months after the date of this Order, unless such period is extended for good cause by the Board or by the Federal Reserve Bank of New York pursuant to delegated authority. By order of the Board of Governors, August 10, 1971. Voting for this action: Chairman Burns and Gov ernors Mitchell, Brimmer, and Sherrill. Absent and not voting: Governors Robertson, Daane, and Maisel. (Signed) K enneth A. K enyon, D e p u ty Secretary [s e a l ] Announcements CHANGES IN BOARD STAFF EXPANDED COMMUNICATIONS NETWORK The Board of Governors of the Federal Reserve System has announced the appointment of Robert C. Holland to the newly created post of Executive Director, effective August 15, 1971. Mr. Holland is succeeded as Secretary of the Board by Tynan Smith, who has been Assistant Director of the Board’s Division of Supervision and Regulation. Mr. Holland continues to hold the position of Secretary of the Federal Open Market Committee. The functions of the new Office of Executive Director will include the coordination and over-all planning of the activities of the staff in carrying out the Board’s programs, and the handling of administrative affairs under the direction of the Chairman of the Board and other Board members with delegated functions. Under this arrangement, the Board’s various divisions will continue to deal directly with the Board on substantive policy matters. However, the Office of Executive Director will exercise super vision over the Office of the Secretary and over the work of the several Program Directors pre viously designated by the Board. Effective September 1, 1971, the Board of Governors appointed James L. Vining as Assistant Director in the Division of Federal Reserve Bank Operations, in charge of the planning and systems development function. Mr. Vining, who joined the staff of the Federal Reserve Bank of Atlanta in 1966, has been an Assistant Vice President in the Planning Depart ment of that Bank since January 1970. He holds a B.S. degree in Industrial Engineering from Oklahoma State University and an M.S. in In dustrial Management from the Georgia Institute of Technology. To further expedite payment traffic by making financial transactions for individuals and busi nesses quicker and cheaper, the Board of Gov ernors on August 11, 1971, opened the System’s recently expanded nationwide communications net work for use, free of charge, for wire transfers of $1,000 or more. The new rules give depositors in Federal Reserve member banks direct access, through their banks, to the System’s network. Depositors in nonmem ber banks can also arrange for such transfers, without charge for use of the System’s facilities, when the payment is made via a correspondent member bank. The System’s network provides ac cess by member banks to communications among the 12 Federal Reserve Banks and their branch banks in 24 additional locations. RESIGNATION OF DIRECTOR Roy J. Fisher, who had served since January 1, 1970, as a Board-appointed director of the Nash ville Branch of the Federal Reserve Bank of Atlanta, resigned effective June 15, 1971, to take an overseas position with the Aluminum Com pany of America. Mr. Fisher had been Manager of Tennessee Operations of the Aluminum Com pany of America at Alcoa, Tennessee. 698 CHANGE IN DISCOUNT RATE The Board of Governors of the Federal Reserve System on July 22, 1971, announced its approval of actions by the directors of the Federal Reserve Banks of Cleveland, Richmond, Chicago, Kansas City, and Dallas increasing the discount rate of those banks from 4 3A per cent to 5 per cent, effective July 23. As of that date, the rate was 5 per cent at all Reserve Banks. RECIPROCAL CURRENCY ARRANGEMENTS The Federal Reserve announced on August 12, 1971, an increase in its reciprocal currency ( “swap”) arrangements with the Swiss National Bank and the National Bank of Belgium. The arrangement with the Swiss National Bank has been increased by $400 million to $1 billion, and that with the National Bank of Belgium has been increased by $100 million to $600 million. The increases enlarge the System’s swap net work with 14 central banks and the Bank for International Settlements to $11.73 billion. A swap arrangement is a renewable short-term facility under which a central bank agrees to exchange on request its own currency for the currency of the other party up to a maximum amount over a limited period of time. The Federal Reserve swap network was initiated in 1962. In all reciprocal currency arrangements the Federal Reserve Bank of New York acts on behalf of the Federal Reserve System under the direction of the Federal Open Market Committee. The Federal Reserve’s reciprocal currency arrange ments are now as follows (in millions of dollars): Austrian National Bank National Bank of Belgium Bank of Canada National Bank of Denmark Bank of England Bank of France German Federal Bank Bank of Italy Bank of Japan Bank of Mexico Netherlands Bank Bank of Norway Bank of Sweden Swiss National Bank Bank for International Settlements Swiss francs/dollars Other European currencies/dollars Total $ 200 600 1,000 200 2,000 1,000 1,000 1,250 1,000 130 300 200 250 1,000 600 1,000 $11,730 CHANGES IN OTC MARGIN STOCKS The Board of Governors has announced several changes, effective Monday, August 16, 1971, in its “List of OTC Margin Stocks” that was issued in revised form July 12, 1971. The list was first published on July 8, 1969. Reece Corporation, The, $1.00 par common, is added to the list. The following stocks are deleted from the list: Bio-Dynamics, Inc., no par common; Coldwell, Banker and Company, no par common; Equimark Corporation, $5.00 par common; Gifford-Hill & Company, $2.00 par common; Hasbro Industries, $.50 par common; James, Fred S. & Company, Inc., $.50 par common; Philadelphia Suburban Corporation, $1.00 par common; and United Life & Accident Insurance Company, $1.00 par common. Three other changes have been made: Motor Club of America Companies, $.50 par common now reads Motor Club of America, $.50 par com mon; New Jersey National Bank, $5.00 par com mon is changed to NJN Bancorporation, $5.00 par common; and Pittsburgh National Corpo ration, $10.00 par common, becomes Pittsburgh National Corporation, $5.00 par common. NEW PUBLICATIONS O pen M a rk et P olicies an d O peratin g P rocedu res — Staff Stu dies is available for distribution. It was prepared as part of a study of the policies and operating procedures implicit in the policy direc tives of the Federal Open Market Committee. This publication consists of the following papers: “The FOMC Directive as Structured in the Late 1960’s: Theory and Appraisal” by Stephen H. Axilrod; “Short-Run Targets for Open Market Operations” by Richard G. Davis; “Selection of a Monetary Aggregate for Use in the FOMC Direc tive” by Leonall C. Andersen; “Determining the Optimum Monetary Instrument Variable” by John Kareken, Thomas Muench, Thomas Supel, and Neil Wallace; “The Trade-Off Between Short- and Long-Term Policy Goals” by James L. Pierce; “Tactics and Strategy in Monetary Policy” by Ben jamin M. Friedman; “Rules-of-Thumb for Guid ing Monetary Policy” by William Poole; and “Monetary Aggregates and Money Market Con ditions in Open Market Policy” by Stephen H. Axilrod. The first of three volumes on the R eappraisal o f the F ederal R eserve D isco u n t M ech an ism is also available for distribution. Based on a 3-year System-wide study, this publication gives the back ground and sets forth proposals for the redesign of Federal Reserve lending facilities. Volume 1 consists of the following: “Report of a System Committee” by the Steering Committee; “Re port on Research Undertaken in Connection with a System Study” by Bernard Shull; “Transmittal Memoranda;” “Borrowings Data;” “Rationale and Objectives of the 1955 Revision of Regulation A ” by Bernard Shull; “Evolution of the Role and the Functioning of the Discount Mechanism” by Clay J. Anderson; and “The Discount Mechanism in Leading Industrial Countries Since World War II” by George Garvy. Copies may be obtained from Publications Services, Division of Administrative Services, Board of Governors of the Federal Reserve Sys tem, Washington, D.C. 20551. The price of the open market report is $2.00 per copy; in quantities of 10 or more sent to one address, $1.75 each. The price of the discount study is $3.00 per copy; in quantities of 10 or more sent to one address, $2.50 each. 699 National Summary of Business Conditions Released for publication August 16 Industrial production and retail sales declined in July. Employment rose as did the unemployment rate and wholesales prices increased somewhat further. Commercial bank credit, the money supply, and time and savings deposits increased. Between mid-July and August 13, yields on U S. Government securities rose, while yields on sea soned corporate and municipal bonds changed little on balance. The President on August 15 announced a farranging economic program dealing with prices, wages, fiscal policy, foreign trade, and interna tional financial relationships. to July at an annual rate of 8.5 million units. Out put of television sets, some appliances, and most other home goods, as well as consumer nondurable goods, also changed little. Production of manu facturing, commercial, and defense equipment declined. Output of copper and coal was reduced because of strikes and the secondary effects of the railroad strike, and the decline in production of steel products reflected reductions in orders prior to the settlement of the new wage contract. Output of nondurable materials in July was maintained at the June level. EMPLOYMENT INDUSTRIAL PRODUCTION Industrial production declined 0.8 per cent in July. The new revised total index was at 106.0 per cent in July and 106.9 in June on the 1967 comparison base year and was 5.3 per cent below the 1969 high but was 3.3 per cent above the low last November. Output declines in July were cen tered in the material-producing sectors, reflecting cutbacks in steel inventories and strikes in some other industries. Production of total equipment was off somewhat further but output of consumer goods was little changed. Auto assemblies, after allowance for the model changeover period, were unchanged from June INDUSTRIAL PRODUCTION RATIO SCALE, 1967 =100 120 100 120 100 80 F.R. indexes, 700 seasonally adjusted. Latest figures: July. Nonfarm payroll employment declined 190,000 in July with the largest reduction in manufactur ing, mainly in the durable goods sector. Employ ment increased modestly in trade and State and local government but declined slightly further in services. The average workweek in manu facturing declined 0.1 hour to 39.9 hours and was 0.2 hour below the year-earlier level. The unem ployment rate rose to 5.8 per cent in July from 5.6 per cent in June, reflecting somewhat faster growth in the labor force than employment in July. RETAIL SALES The value of retail sales declined almost 1 per cent from June to July but was 7 per cent above a year earlier, according to the advance report. Non durable goods sales were 1 per cent lower than in June, largely because of a drop in sales of apparel and general merchandise. Durable goods sales were virtually unchanged from June. WHOLESALE AND CONSUMER PRICES Wholesale prices, seasonally adjusted, rose 0.2 per cent between June and July. The index of industrial commodities advanced 0.7 per cent, with increases for lumber and wood products and metals and metal products particularly important. But average prices of farm and food products dropped 1.0 per cent, with large declines for fresh fruits and vegetables, grains, and eggs. Consumer prices rose 0.5 per cent in June, after seasonal adjustment, with substantial advances for fruits and vegetables, beef, gasoline, and houses. Among services, home repair and maintenance and public transportation costs rose sharply. BANK CREDIT, DEPOSITS, AND RESERVES ciated with reduced inflows of consumer-type time and savings deposits. Sales of large negotiable CD’s were larger than in other recent months. Net borrowed reserves of member banks aver aged about $670 million over the 4 weeks ending July 28 compared with $300 million in June. Member bank borrowings from the Federal Re serve increased further and excess reserves de clined somewhat. Commercial bank credit adjusted for transfers of loans between banks and their affiliates increased $2.9 billion in July, about the same as the average monthly increase in the second quarter. Loan expansion accounted for almost all of the July growth with most major categories increasing. Acquisitions of municipal and Federal agency securities picked up considerably from the reduced June rate and were at a slightly faster pace than over the second quarter. Holdings of U.S. Govern ment securities declined, however, following a sharp rise in June. The money stock increased at an annual rate of 10.6 per cent in July, a little less than in the second quarter. Expansion in time and savings deposits at all commercial banks— at an annual rate of 11.3 per cent— was also slower than in the second quarter and sharply below the very rapid first-quarter pace. The slowing in July was asso Yields on long-term Treasury bills rose by 20 to 30 basis points from mid-July to August 13, prior to the President’s announced changes in economic policy. Shorter bill maturities fluctuated fairly widely over the month, declining on balance by around 10 to 15 basis points. The 3-month bill was bid at around 5.20 per cent, compared with about 5.35 per cent a month earlier. Yields on Treasury notes and bonds rose from 20 to 40 basis points, with the greater increases in short maturities. Yields on new corporate securities rose over the period, while yields on seasoned issues, as well as on municipal issues, changed little on balance. PRICES INTEREST RATES W holesale Consumer 1967=100 Bureau of Labor Statistics. “Farm products and foods” is BLS “Farm products, and processed foods and feeds.” Latest figures: Consumer, June; Wholesale, July. SECURITY MARKETS PER CENT Discount rate, range or level for all F.R. Banks. Weekly average market yields for U.S. Govt, bonds maturing in 10 /ears o r m ore and for 90-day T reasury bills. L atest figures: week ending Aug. 7. 701 Financial and Business Statistics CONTENTS A 3 GUIDE TO TABULAR PRESENTATION A 3 STATISTICAL RELEASES: REFERENCE U.S. STATISTICS: A 4 A A A A A A A A 8 9 10 11 12 14 15 16 Member bank reserves, Federal Reserve Bank credit, and related items Federal funds— Major reserve city banks Reserve Bank interest rates Reserve and margin requirements Maximum interest rates; bank deposits Federal Reserve Banks Open market account Reserve Banks; bank debits U.S. currency A A A A A A A A A A A A A 17 18 19 20 26 31 32 33 33 34 37 38 39 Money stock Bank reserves; bank credit Banks and the monetary system Commercial banks, by classes Weekly reporting banks Business loans of banks Demand deposit ownership Loan sales by banks Open market paper Interest rates Security markets Stock market credit Savings institutions A A A A A A A 41 42 44 47 50 52 56 Federally sponsored credit agencies Federal finance U.S. Government securities Security issues Business finance Real estate credit Consumer credit Continued on next page A 1 A 2 FEDERAL RESERVE BULLETIN □ AUGUST 1971 U.S. STATISTICS— Continued A A A A A A A 60 64 64 66 68 68 70 Industrial production Business activity Construction Labor force, employment, and earnings Consumer prices Wholesale prices National product and income A 72 Flow of funds (flows through Q1 1971) INTERNATIONAL STATISTICS: A A A A A A A A A A 74 75 76 77 78 91 92 93 94 95 U.S. balance of payments Foreign trade U.S. gold transactions U.S. reserve assets; position in the IMF International capital transactions of the United States Foreign exchange rates Money rates in foreign countries Arbitrage on Treasury bills Gold reserves of central banks and governments Gold production TABLES PUBLISHED PERIODICALLY (see above for flow of funds): A A A 96 97 98 Number of banking offices: Analysis of changes On, and not on, Federal Reserve Par List Banking offices and deposits of banks in holding company groups, December 31, 1970 A 107 INDEX TO STATISTICAL TABLES A 3 Guide to Tabular Presentation SYMBOLS AND ABBREVIATIONS e Estimated c Corrected p Preliminary r Revised rp Revised preliminary I, II, III, IV Quarters n.e.c. Not elsewhere classified A.R. Annual rate S.A. Monthly (or quarterly) figures adjusted for seasonal variation N.S.A. IPC SMSA A L S U * Monthly (or quarterly) figures not adjusted for seasonal variation Individuals, partnerships, and corporations Standard metropolitan statistical area Assets Liabilities Sources of funds Uses of funds Amounts insignificant in terms of the par ticular unit (e.g., less than 500,000 when the unit is millions) (1) Zero, (2) no figure to be expected, or (3) figure delayed GENERAL INFORMATION Minus signs are used to indicate (1) a decrease, (2) a negative figure, or (3) an outflow. A heavy vertical rule is used in the following in stances: (1) to the right (to the left) of a total when the components shown to the right (left) of it add to that total (totals separated by ordinary rules include more components than those shown), (2) to the right (to the left) of items that are not part of a balance sheet, (3) to the left of memorandum items. “U.S. Govt, securities” may include guaranteed issues of U.S. Govt, agencies (the flow of funds figures also include not fully guaranteed issues) as well as direct obligations of the Treasury. “State and local govt.” also includes municipalities, special districts, and other politi cal subdivisions. In some of the tables details do not add to totals because of rounding. The footnotes labeled N o t e (which always appear last) provide (1) the source or sources of data that do not originate in the System; (2) notice when figures are estimates; and (3) information on other characteristics of the data. TABLES PUBLISHED QUARTERLY, SEMIANNUALLY, OR ANNUALLY, WITH LATEST BULLETIN REFERENCE Quarterly Flow of funds. Issue Aug. 1971 Annually— Continued Page A-72— A-73.9 Semiannually Banking offices: Analysis of changes in number---- Aug. 1971 On, and not on, Federal Reserve Par List, number......................... Aug. 1971 A-96 A-97 Annually Bank holding companies: List of, Dec. 31, 1970..................... June 1971 Banking offices and deposits of group banks, Dec. 31, 1 9 7 0 .... Aug. 1971 Banking and monetary statistics, 1970........................................... Feb. 1971 Mar. 1971 July 1971 A-110 A-98 A-98—A-99 A-94—A-106 A-96—A-99 Issue Page Banks and branches, number, by class and State................................ Apr. 1971 Flow of funds: Assets and liabilities: 1959-70........................................ 1970 data (revised)...................... Flows: 1966-70........................................ 1970 selected data (revised)........ Mar. 1971 A-71.10—A-71.21 June 1971 A-71.2—A-71.3 A-94—A-95 Mar. 1971 June 1971 A-70—A-71.9 A-70—A-71.1 Income and expenses: Federal Reserve Banks.................. Insured commercial banks............ Member banks: Calendar year............................. Income ratios.............................. Operating ratios......................... Feb. 1971 June 1971 A-94—A-95 A-94—A-95 June 1971 June 1971 July 1971 A-94—A-103 A-104—A-109 A-100—A-105 Stock exchange firms, detailed debit and credit balances......................... Sept. 1970 A-94—A-95 Statistical Releases LIST PUBLISHED SEMIANNUALLY, WITH LATEST BULLETIN REFERENCE Issue Anticipated schedule of release dates for individual releases...................................................................... June 1971 Page A-117 A 4 BANK RESERVES AND RELATED ITEMS □ AUGUST 1971 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS (In millions of dollars) Factors supplying reserve funds Reserve Bank credit outstanding Period or date U.S. Govt, securities 1 Total Bought out right Held under repur chase agree ment Special Drawing Rights certificate account Treas ury cur rency out stand ing Dis counts and ad vances Float 2 83 170 652 1,117 2,612 2,404 24,744 21,606 20,047 22,879 2,956 3 \ 239 4,322 4,629 17,954 13,799 13,158 12,436 10,367 10,367 5,396 5,565 6,284 6,777 6,810 6,841 Other F.R. assets 3 Total 4 Gold stock Averages of daily figures 1939—Dec........................... 1941—Dec........................... 1945—Dec........................... 1950—Dec........................... 2,510 2,219 23,708 20,345 2,510 2,219 23,708 20,336 9 8 5 381 142 1960—Dec........................... 1965—De c 1966—De c 1967—De c 1968—De c 1969—De c 27,248 40,885 43,760 48,891 52,529 57,500 27,170 40,772 43,274 48,810 52,454 57,295 78 113 486 81 75 205 94 490 570 238 765 1,086 1,665 2,349 2,383 2,030 3,251 3,235 2,204 29,060 43,853 46,864 51,268 56,610 64,100 1970—Jul y Aug.......................... Sept.......................... Oct........................... Nov.......................... Dec........................... 58,219 59,544 59,903 59,533 60,393 61,688 58,003 59,255 59,625 59,360 60,004 61,310 216 289 278 173 389 378 1,432 849 607 462 425 321 2,901 2,446 2,832 2,933 2,933 3,570 1,302 1,248 1,216 1,734 1,314 1,032 63,912 64,134 64,619 64,708 65,132 66,708 11,367 11,367 11,300 11,117 11,117 11,105 400 400 400 400 400 400 6,994 7,009 7,049 7,069 7,100 7,145 1971—Ja.............................. n Feb........................... Mar.......................... Apr........................... M ay......................... June......................... July*......................... 62,068 62,350 62,719 63,371 64,714 64,642 66,001 61,941 62,051 62,381 63,153 64,368 64,574 65,652 127 299 338 218 346 68 349 370 328 319 148 330 453 821 3,636 2,974 2,671 3,047 2,704 2,690 2,972 1,216 1,065 896 1,103 1,076 979 1,150 67,363 66,797 66,691 67,747 68,926 68,834 71,024 10,732 10,732 10,732 10,732 10,448 10,332 10,332 400 400 400 400 400 400 400 7,157 7,188 7,235 7,291 7,357 7,419 7,437 1971—May 5 ..................... 12..................... 19..................... 26...................... 64,238 64,504 64,804 64,942 63,808 63,981 64,452 64,764 430 523 352 178 174 99 306 267 2,753 2,540 2,964 2,787 1,186 1,297 1,109 851 68,438 68,537 69,276 68,955 10,732 10,561 10,332 10,332 400 400 400 400 7,326 7,345 7,354 7,372 2 ................... 9 ................... 16................... 23................... 30................... 64,877 64,432 64,385 64,302 65,352 64,777 64,432 64,385 64,117 65,295 100 185 57 646 153 403 619 750 2,461 2,750 2,627 2,917 2,588 923 911 959 1,007 1,047 69,007 68,310 68,437 68,936 69,802 10,332 10,332 10,332 10,332 10,332 400 400 400 400 400 7,390 7,404 7,417 7,429 7,434 7................... 14................... 21*................. 28*................. 65,772 65,826 66,435 66,055 65,461 65,669 65,694 65,721 311 157 741 334 661 991 1,122 545 2,965 3,179 3,203 2,776 1,092 1,145 1,156 1,187 70,586 71,216 71,997 70,641 10,332 10,332 10,332 10,332 400 400 400 400 7,431 7,430 7,440 7,443 64,764 65,518 65,841 6 64,764 6 65,518 6 65,841 1,051 446 778 2,414 2,549 2,608 927 1,086 1,209 69,268 69,661 70,491 10,332 10,332 10,332 400 400 400 7,390 7,420 7,439 6 6 6 6 17,518 22,159 Week ending— June July End of month 1971—M ay......................... June......................... July*......................... Wednesday 64,043 63,921 64,530 64,764 1,273 264 618 207 802 28 984 1,274 2,856 2,365 2,779 2,520 1,216 1,324 826 871 70,329 67,960 69,885 69,738 10,732 10,332 10,332 10,332 400 400 400 400 7,331 7,350 7,360 7,381 64,959 64,613 63,993 64,981 65,518 6 64,809 6 64,613 6 763,993 6 64,640 6 65,518 150 37 590 261 631 446 2,609 2,371 2,788 2,605 2,549 958 955 984 1,047 1,086 68,634 68,591 68,088 69,390 69,661 10,332 10,332 10,332 10,332 10,332 400 400 400 400 400 7,396 7,414 7,426 7,434 7,434 65,118 65,636 66,680 65,762 6 765,118 6 65,636 6 65,704 6 65,762 471 1,842 1,561 781 2,960 3,291 2,778 2,482 1,123 1,157 1,201 1,205 69,733 71,983 72,302 70,284 10,332 10,332 10,332 10,332 400 400 400 400 7,430 7,431 7,441 7,449 1971—May 5................... 12................... 19................... 26................... 65,316 64,185 65,148 64,971 June 2................... 9................... 16................... 23................... 30................... 7*................. 14*................. 21*................. 28*................. July For notes see opposite page. 341 976 AUGUST 1971 o BANK RESERVES AND RELATED ITEMS A 5 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS— Continued (In millions of dollars) Factors absorbing reserve funds Deposits, other than member bank reserves, with F.R. Banks Cur rency in cir cula tion Treas ury cash hold ings 7,609 10,985 28,452 27,806 2,402 2,189 2,269 1,290 616 592 625 615 33,019 42,206 44,579 47.000 50,609 53,591 408 808 1,191 1,428 756 656 522 683 291 902 360 1,194 54,699 54,736 54,931 55,063 55,864 57,013 450 451 457 459 453 427 56,192 55,754 56,123 56,716 57,155 57,969 58,847 Treas ury For eign Other F.R. ac counts3 Other2 Other F.R. lia bilities and capital 3 Member bank reserves With F.R. Banks Cur rency and coin 5 Period or date Total Averages of daily figures 11,473 12,812 16,027 17,391 .1939—Dec. .1941—Dec. . 1945—Dec. .1950—Dec. 2,595 3,972 4,262 4,507 4,737 4,960 19,283 22,719 23,830 25,260 27,221 28,031 .1960—Dec. . 1965—Dec. . 1966—Dec. . 1967—Dec. . 1968—Dec. .1969—Dec. 23,170 23,353 23,719 23,593 23,416 23,925 4,958 4,996 5,106 5,108 5,142 5,340 28,128 28,349 28,825 28,701 28,558 29,265 ..1970—July ........... Aug. ............Sept. ............Oct. .......... Nov. ............Dec. 2,109 2,232 2.227 2,194 2,244 2.227 2,251 24,938 24,710 24,601 24,814 25,251 24,793 25,203 5,550 5,170 5,085 5,071 5,168 5,230 5,311 30,488 29,880 29,686 29,885 30,419 30,023 30,514 .1971—Jan. ............Feb. ............Mar. ............Apr. ............May ............June ............July? 714 689 697 677 2,262 2,299 2.148 2,225 25,497 24,703 25,344 25,260 5,283 5,381 5,018 4,986 30,780 30,084 30,362 30,246 ,.1971—May 5 ....................... 12 ....................... 19 ....................... 26 187 151 150 155 166 703 695 695 689 693 2,304 2,328 2.148 2,169 2,233 25,057 24,534 25,012 24,916 24,921 5,219 5,352 5,213 5,003 5,371 30,276 29,886 30,225 29,919 30,292 .June 2 ........... 9 ..........16 ..........23 ..........30 1,535 1,778 1,602 1,383 170 162 166 137 707 721 703 708 2,307 2,264 2,183 2,236 24,898 24,811 26,089 25,183 5,415 5,443 4,880 5,419 30,313 30,254 30,969 30,602 .July 7 ........... 14 ..........21* ........... 28 p 507 454 482 805 1,274 1,115 208 199 162 676 688 754 2,302 2,256 2,291 25,499 24,550 25,311 5,219 5,372 5,456 30,718 29,922 30,767 57,008 57,382 57,306 57,373 519 500 507 505 493 1,112 1,224 887 148 161 195 156 685 687 646 671 2,313 2,149 2.197 2,241 27,626 24,051 25,902 26,017 5,283 5,381 5,018 4,984 32,909 29,432 30,920 31,001 .1971—May 5 ..................... 12 ..................... 19 ..................... 26 57,811 58,121 58.183 58,050 58,394 507 498 501 493 466 869 7 7 719 1,274 140 194 179 181 199 751 668 704 701 688 2,326 2,345 2,125 2.197 2,256 24,358 24,904 24,547 25,215 24,550 5,219 5,347 5,201 5,004 5,372 29,577 30,251 29,748 30,219 29,922 .June 2 ..........9 ..........16 ..........23 ..........30 59.184 59,230 58,916 58,781 468 468 492 493 2,065 2,516 1,110 1,413 196 163 115 149 713 694 698 722 2,321 2,133 2,211 2,251 22,948 24,943 26,934 24,656 5,434 5,450 4,880 5,419 28,382 30,393 31,814 30,075 .July 7* ..........14* ..........21* ......2 8 * 248 292 493 739 11,473 12,812 16,027 17,391 1,029 389 83 -2 0 4 -1 ,1 0 5 2,192 16,688 18,747 19,568 20,753 22,484 23,071 2,253 2,275 2,300 2,249 2,256 2,265 786 778 718 752 690 698 714 154 167 162 187 890 394 9 670 1,464 460 460 470 488 57.393 58.393 58,547 739 1,531 1,247 920 353 250 154 164 150 225 146 495 231 429 451 458 458 1,147 1,058 1,070 1,042 890 849 191 177 141 142 149 145 763 830 750 747 721 735 445 465 467 499 506 491 471 1,028 1,025 783 1,047 1,112 652 1,546 155 153 139 148 173 155 161 56,715 57.164 57,266 57.165 519 507 499 502 1,035 1,314 1,248 1,045 57,482 57,851 58,078 58,005 58,011 506 494 494 493 480 58,671 59,182 58,955 58,683 Week ending— End of month .1971—May ............June ............July* Wednesday 1 Includes Federal agency obligations. 2 Beginning with 1960 reflects a minor change in concept; see Feb. 1961 B u l l e t i n , p. 164. 3 Beginning Apr. 16, 1969, “ Other F.R. assets” and “ Other F.R. liabilities and capital” are shown separately; formerly, they were netted together and reported as “ Other F.R. accounts.” 4 Includes industrial loans and acceptances, until Aug. 21, 1959, when industrial loan program was discontinued. For holdings of acceptances on Wed. and end-of-month dates, see tables on F.R. Banks on following pages. See also note 2. 5 Part allowed as reserves Dec. 1, 1959—Nov. 23, 1960; all allowed thereafter. Beginning with Jan. 1963, figures are estimated except for weekly averages. Beginning Sept. 12, 1968, amount is based on closeof-business figures for reserve period 2 weeks previous to report date. 6 Includes securities loaned—fully secured by U.S. Govt, securities pledged with F.R. Banks. 7 Reflects securities sold, and scheduled to be bought back, under matched sale/purchase transactions. A 6 BANK RESERVES AND RELATED ITEMS □ AUGUST 1971 RESERVES AND BORROWINGS OF MEMBER BANKS (In millions of dollars) Reserve city banks All member banks New York City Period Reserves Total held Re quired 1 Excess Bor row ings at F.R. Banks Reserves Free re serves Total Re held quired 1 Excess City of Chicago Bor row ings at F.R. Banks Reserves Free re serves Bor row ings at Total Re held quired 1 Excess F.R. Banks Free re serves 1939—Dec.. 1941—Dec.. 1945—D ec.. 1950—D ec.. 11,473 6,462 12,812 9,422 16,027 14,536 17,391 16,364 5,011 3,390 1,491 1,027 3 5 334 142 5,008 3,385 1,157 885 5,623 5,142 4,118 4,742 3,012 4,153 4,070 4,616 2,611 989 48 125 192 58 2,611 989 -144 67 1,141 1,143 939 1,199 601 848 924 1,191 540 295 14 8 5 540 295 14 3 1960—D ec.. 1963—Dec.. 1964—Dec.. 1965—Dec.. 1967—Dec.. 1968—Dec.. 1969—Dec.. 19,283 20,746 21,609 22,719 25,260 27,221 28,031 18,527 20,210 21,198 22,267 24,915 26,766 27,774 756 536 411 452 345 455 257 87 327 243 454 238 765 1,086 669 209 168 -2 107 -310 -829 3,687 3,951 4,083 4,301 5,052 5,157 5,441 3,658 3,895 4,062 4,260 5,034 5,057 5,385 29 56 21 41 18 100 56 19 37 35 111 40 230 259 10 19 -1 4 -7 0 -2 2 -130 -203 958 1,056 1,083 1,143 1,225 1,199 1,285 953 1,051 1,086 1,128 1,217 1,184 1,267 4 5 -3 15 8 15 18 8 26 28 23 13 85 27 -4 -2 1 -3 1 -8 -5 -7 0 -9 1970—July.. Aug.. Sept.. Oct.. Nov.. D ec.. 28,128 28,349 28,825 28,701 28,558 29,265 27,987 28,204 28,553 28,447 28,438 28,993 141 145 272 254 120 272 1,358 -1 ,2 1 7 827 -682 607 -335 462 -208 425 -305 321 -4 9 5,315 5,381 5,497 5,583 5,441 5,623 5,306 5,378 5,436 5,542 5,444 5,589 9 3 61 41 -3 34 269 159 117 12 60 25 -2 6 0 -1 5 6 -5 6 29 -6 3 9 1,290 1,298 1,316 1,307 1,282 1,329 1,293 1,304 1,310 1,309 1,283 1,322 -3 -6 6 -2 -1 7 129 61 14 11 11 4 -1 3 2 -6 7 -8 -1 3 -1 2 3 1971—J a n ... F eb.., Mar.. A pr.. M ay. J une. July 30,488 29,880 29,686 29,885 30,419 30,023 30,515 30,209 29,679 29,487 29,745 30,107 29,892 30,375 279 201 199 140 312 131 140 370 328 319 148 330 453 821 -9 1 -127 -1 2 0 -8 -1 8 -322 -681 5,976 5,854 5,664 5,690 5,837 5,637 5,729 5,917 5,810 5,703 5,696 5,791 5,674 5,753 59 44 -3 9 -6 46 -3 7 -2 4 40 29 51 15 113 90 86 19 15 -9 0 -2 1 -6 7 -1 2 7 -1 1 0 1,387 1,403 1,375 1,392 1,436 1,387 1,407 1,392 1,380 1,384 1,385 1,421 1,405 1,408 -5 23 -9 7 15 -1 8 -1 1 4 16 4 13 21 28 -6 19 -2 5 3 2 -3 9 -2 9 27,823 27,847 28,222 28,373 28,183 27,550 27,773 27,992 28,188 28,030 273 74 230 185 153 991 1,294 1,681 1,386 1,231 -718 -1 ,2 2 0 -1,451 -1,201 -1 ,0 7 8 5,221 5,188 5,439 5,418 5,259 5,176 5,233 5,381 5,384 5,260 45 -4 5 58 34 -1 119 389 493 166 80 -7 4 -4 3 4 -4 3 5 -1 3 2 -8 1 1,253 1,286 1,308 1,316 1,268 1,267 1,275 1,306 1,311 1,286 -1 4 11 2 5 -1 8 36 125 200 182 -1 4 -2 5 -123 -195 -2 0 0 30,225 29,959 29,919 29,709 30,292 30,060 266 210 232 403 619 750 -137 -409 -518 5,742 5,648 5,676 5,729 5,607 5,699 13 41 -2 3 129 103 107 -1 1 6 -6 2 -1 3 0 1,473 1,338 1,405 1,467 1,351 1,394 6 -1 3 11 77 11 71 92 26 91 -6 0 -125 -3 4 1,396 1,402 1,424 1,373 1,411 1,384 1,464 1,335 -1 5 18 -4 0 38 5 -1 5 18 -4 5 38 18 -1 5 12 -3 9 31 Week ending1970—July 1.. 8.. 15.. 22.. 29.. June 16.. 23.. 30.. 6 .. 13.. 2 0 .. 27. . 30,611 30,242 31,029 30,172 30,035 30,210 30,937 29,890 576 32 92 282 407 277 472 354 169 -245 -3 8 0 -7 2 6,064 5,850 6,165 5,752 5,902 5,910 6,198 5,760 162 -6 0 -3 3 -8 3 .. 1 0 .. 17.. 24.. 29,959 29,760 30,202 29,916 29,722 29,555 29,905 29,599 237 205 297 317 283 247 561 250 -4 6 -4 2 -2 6 4 67 5,775 5,685 6,118 5,770 5,742 5,755 6,043 5,732 33 -7 0 75 38 117 33 -7 0 -4 2 38 1,331 1,379 1,367 1,417 1,346 1,367 1,388 1,386 -1 5 12 -2 1 31 Mar. 3 .. 10.. 17.. 24.. 31.. 29,542 29,404 29,955 29,482 29,940 29,372 29,322 29,690 29,414 29,564 170 82 265 68 376 258 421 290 333 257 -8 8 -339 -2 5 -265 119 5,583 5,595 5,853 5,664 5,847 5,568 5,657 5,830 5,669 5,714 15 -6 2 23 -5 133 120 46 59 15 -1 8 2 -2 3 -6 4 133 1,387 1,355 1,447 1,354 1,390 1,402 1,367 1,419 1,365 1,379 -1 5 -1 2 28 -1 1 11 17 1,367 1,346 1,381 1,430 1,351 1,367 1,384 1,418 1971—Jan. Feb. 14 14 —15 -5 6 28 -2 5 -3 16 -2 1 -3 12 18 16 -2 1 -3 -6 41 18 -9 31 -7 0 1 Apr. 7 .. 14.. 21.. 28.. 29,670 29,625 1 29,938 30,157 29,393 29,417 29,857 30,109 277 208 81 48 197 150 84 176 80 58 -3 -128 5,569 5,748 5,728 5,625 5,631 5,652 5,784 5,682 -6 2 96 -5 6 -5 7 46 -6 2 79 -5 6 -103 May 5 .. 12.. 19.. 26.. 30,780 30,084 30,362 30,246 30,415 29,854 30,260 30,072 365 230 102 174 174 99 306 267 191 131 -2 0 4 -9 3 5,907 5,657 5,986 5,768 5,817 5,716 5,967 5,781 90 -5 9 19 -1 3 46 39 143 100 44 -9 8 -1 2 4 -113 1,440 1,424 1,426 1,435 1,449 1,393 1,455 1,416 -9 31 -2 9 19 30,276 29,991 29,886 29,813 285 73 646 153 -361 -8 0 5,693 5,648 5,638 5,680 55 -3 2 171 46 -116 -7 8 1,387 1,414 1,396 1,413 -9 1 30,036 30,249 30,640 30,526 277 5 329 76 661 991 1,122 545 -384 -986 -793 -469 5,689 5,747 5,902 5,676 5,663 5,814 5,855 5,718 26 -6 7 47 -42, 34 252 65 3° -8 -319 -181 -7 2 1,388 1,390 1,460 1,381 1,374 1,412 1,451 1,383 14 -2 2 9 -2 June 2. 9. July 7.. 14.. 21», 28?, 30,313 30,254 30,969 30,602 For notes see opposite page. 6 -9 0 44 -9 1 116 7 14 -2 2 -1 0 7 -9 A U G U S T 1971 □ B AN K RESERVES A N D R ELATED ITEM S A 7 RESERVES AND BORROWINGS OF MEMBER BANKS— Continued (In millions of dollars) Other reserve city banks Reserves Country banks Reserves Borrow ings at F.R. Banks Free reserves Period Borrow ings at F.R. Banks Free reserves Total held Required1 Excess 1,188 1,302 322 182 1,568 2,210 4,576 4,761 897 1,406 3,566 4,099 671 804 1,011 663 3 4 46 29 668 800 965 634 20 190 125 228 105 270 479 80 -122 -103 -161 -5 5 -180 -473 6,689 7,347 7,707 8,219 8,901 9,875 10,335 6,066 6,939 7,337 7,889 8,634 9,625 10,158 623 408 370 330 267 250 177 40 74 55 92 80 180 321 583 334 315 238 187 70 -1 4 4 -4 4 -4 32 49 -5 8 42 682 424 369 338 301 264 -726 -428 -337 -289 -3 5 9 -2 2 2 10,449 10,496 10,605 10,492 10,619 10,765 10,270 10,344 10,432 10,326 10,437 10,576 179 152 173 166 182 189 278 183 107 101 53 28 -9 9 -3 1 66 65 129 161 11,962 11,712 11,651 11,789 11,832 11,735 11,923 12 -6 5 81 -3 5 91 8 -8 294 268 236 119 136 181 441 -2 8 2 -333 -155 -1 5 4 -4 5 -173 -449 11,151 10,976 10,915 11,049 11,223 11,256 11,464 10,938 10,777 10,749 10,875 11,063 11,078 11,291 213 199 166 174 160 178 173 35 27 16 10 68 161 266 178 172 150 164 92 17 -9 3 10,922 10,950 11,121 11,216 11,123 10,879 11,040 11,136 11,210 11,141 43 -9 0 -1 5 6 -1 8 539 629 789 699 683 -496 -719 -8 0 4 -693 -701 10,427 10,423 10,354 10,423 10,533 10,228 10,225 10,169 10,283 10,343 199 198 185 140 190 333 240 274 321 286 -1 3 4 -4 2 -8 9 -181 -9 6 12,028 11,912 12,214 11,862 11,903 11,996 12,246 11,800 125 -8 4 -3 2 62 310 249 332 286 -185 -333 -3 6 4 -2 2 4 11,123 11,078 11,226 11,185 10,819 10,920 11,029 10,995 304 158 197 190 26 28 43 42 278 130 154 148 11,766 11,728 11,733 11,744 11,759 11,702 11,753 11,673 7 26 -2 0 71 253 229 380 228 -2 4 6 -203 -4 0 0 -1 5 7 11,087 10,968 10,984 10,985 10,875 10,731 10,721 10,808 212 237 263 177 30 18 46 22 182 219 217 155 ..................................Feb. 3 ........................................... 10 ........................................... 17 11,633 11,537 11,774 11,567 11,752 11,655 11,572 11,724 11,613 11,694 -2 2 -3 5 50 -4 6 58 242 244 231 245 221 -2 6 4 -279 -181 -291 -163 10,939 10,917 10,881 10,897 10,951 10,747 10,726 10,717 10,767 10,777 192 191 164 130 174 16 13 13 15 22 176 178 151 115 152 ........................................... 10 ........................................... 17 11,758 11,622 11,807 11,910 11,634 11,702 11,826 11,955 124 -8 0 -1 9 -4 5 184 127 80 98 -6 0 -207 -9 9 -143 10,976 10,909 11,022 11,192 10,777 10,696 10,863 11,054 199 213 159 138 13 6 4 14 186 207 155 124 ...........................................14 12,044 11,826 11,805 11,820 11,939 11,752 11,871 11,780 105 74 -6 6 40 101 42 71 93 4 32 -137 -5 3 11,389 11,177 11,145 11,223 11,210 10,993 10,967 11,095 179 184 178 128 27 18 51 56 152 166 127 72 ........................................... 19 11,891 11,693 11,812 11,703 11,827 11,857 11,753 11,749 11,640 11,759 34 -6 0 63 63 68 317 52 113 286 324 -283 -112 -5 0 -223 -256 11,305 11,131 11,198 11,230 11,384 11,100 10,967 11,014 11,111 11,208 205 164 184 119 176 158 55 161 153 308 47 109 23 -34 -1 3 2 11,847 11,786 12,129 11,937 11,801 11,876 12,033 11,965 46 -9 0 96 -2 8 372 498 605 295 -326 -588 -509 -323 11,389 11,331 11,478 11,608 11,198 11,147 11,301 11,460 191 184 177 148 255 241 336 213 -6 4 -5 7 -159 -6 5 Total held Required i Excess 3,140 4,317 6,394 6,689 1,953 3,014 5,976 6,458 1,188 1,303 418 232 1 96 50 7,950 8,393 8,735 9,056 10,081 10,990 10,970 7,851 8,325 8,713 8,989 10,031 10,900 10,964 100 68 22 67 50 90 6 11,074 11,174 11,407 11,319 11,216 11,548 11,118 11,178 11,375 11,270 11,274 11,506 11,974 11,647 11,732 11,754 11,923 11,743 11,915 ........................... 1939—Dec. ........................... 1945—Dec. ........................... 1950—Dec. ........................... 1960—Dec. ........................... 1963—Dec. ........................... 1964—Dec. ........................... 1967—Dec. ........................... 1968—Dec. ........................... 1969—Dec. ............................1971—Jan. ....................................... Feb. ........................................July* Week ending— i Beginning Sept. 12, 1968, amount is based on close-of-business figures for reserve period 2 weeks previous to report date. N o t e .—Averages of daily figures. Monthly data are averages of daily figures within the calendar month; they are not averages of the 4 or 5 weeks ending on Wed. that fall within the month. Beginning with Jan. 1964, reserves are estimated except for weekly averages. 1970—July 1 ........................................... 8 ...........................................15 ...........................................22 ...........................................29 ...................... 1971—Jan. 6 ........................................... 13 ........................................... 27 ........................................... 31 ...........................................23 ...........................................30 .................................July 7 ...........................................14 .........................................*28 Total reserves held: Based on figures at close of business through Nov. 1959; thereafter on closing figures for balances with F.R. Banks and open ing figures for allowable cash; see also note 3 to preceding table. Required reserves: Based on deposits as of opening of business each day. Borrowings at F.R. Banks: Based on closing figures, A 8 M AJOR RESERVE C IT Y B AN K S □ A U G U S T 1971 BASIC RESERVE POSITION, AND FEDERAL FUNDS AND RELATED TRANSACTIONS (In millions of dollars, except as noted) Basic reserve position Reporting banks and week ending— Less— Excess Bor re serves 1 rowings at F.R. Banks Net inter bank Federal funds trans. Related transactions with U.S. Govt, securities dealers Interbank Federal funds transactions N e t- Gross transactions Per cent Surplus of or avg. deficit required reserves Pur chases Sales Net transactions Total two-way Pur trans chases actions2 of net buying banks Sales of net selling banks Loans to dealers3 Bor row ings from dealers4 Net loans Total—46 banks 1971—June 2 ............ 9 ............ 16............ 23............ 30............ 121 -1 6 31 123 82 328 74 104 264 239 5,814 6,686 6,428 6,134 4,907 -6,021 -6 ,7 7 5 -6,501 -6,2 7 5 -5 ,0 6 5 46.8 52.7 50.2 49.6 39.5 9,881 11,059 10,581 9,898 8,814 4,067 4,373 4,152 3,764 3,907 3,682 3,890 3,881 3,380 3,495 6,199 7,169 6,699 6,519 5,320 385 483 271 385 412 1,390 1,530 1,339 1,169 1,207 267 304 356 533 472 1,123 1,226 984 635 735 July 7 ............ 14........... 21........... 28........... 166 -3 9 58 -3 149 561 390 97 6,145 7,020 5,815 4,347 -6,128 -7 ,6 1 9 -6,1 4 8 -4 ,4 4 7 47.9 58.4 46.5 34.2 10,668 10,981 9,975 8,986 4,523 3,961 4,160 4,639 3,818 3,587 3,497 3,484 6,850 7,394 6,478 5,503 705 373 664 1,156 1,271 1,360 1,028 1,075 425 253 368 347 846 1,108 660 727 2 ............ 9 ............ 16............ 23............ 30............ 54 14 12 60 21 171 46 86 103 107 2,734 2,869 2,849 2,459 1,889 -2 ,8 5 2 -2 ,9 0 2 -2,9 2 3 -2,5 0 3 -1 ,9 7 6 55.6 56.2 56.1 49.0 38.1 3,657 3,821 3,799 3,316 2,793 923 952 950 857 904 923 911 934 803 883 2,734 2,910 2,865 2,513 1,910 41 16 54 21 952 1,071 988 788 893 165 156 173 204 185 787 915 815 585 708 7 ............ 14............ 21............ 28............ 45 -11 27 —20 252 47 9 2,601 2,894 2,504 1,490 -2 ,5 5 6 -3 ,1 5 7 -2 ,5 2 4 -1 ,5 2 0 49.7 59.7 47.3 29.3 3,658 3,649 3,402 2,601 1,057 755 898 1,111 872 755 898 1,043 2,787 2,894 2,504 1,558 186 68 923 884 805 862 162 71 74 81 761 813 731 781 8 in New York City 1971—June July 38 outside New York City 1971—June 2 ............ 9 ............ 16............ 23............ 30............ 67 -3 0 20 64 61 157 27 19 161 132 3,080 3,817 3,580 3,675 3,018 -3 ,1 7 0 -3 ,8 7 4 -3,578 -3 ,7 7 2 -3,089 41.0 50.3 46.2 49.9 40.4 6,224 7,238 6,782 6,582 6,021 3,144 3,421 3,202 2,907 3,004 2,759 2,979 2,947 2,577 2,612 3,465 4,259 3,835 4,006 3,409 385 442 255 331 391 438 459 351 381 314 102 148 183 330 287 336 311 169 51 27 July 7 ........... 14............ 21............ 28............ 121 -2 8 30 17 149 308 344 88 3,545 4,126 3,311 2,857 -3 ,5 7 2 -4 ,4 6 2 -3 ,6 2 4 -2 ,9 2 7 46.8 57.4 46.0 37.5 7,010 7,332 6,573 6,385 3,466 3,206 3,262 3,529 2,947 2,832 2,599 2,441 4,063 4,500 3,974 3,945 519 373 664 1,088 349 476 223 213 264 181 294 267 85 295 -7 1 -5 4 -1 ,2 0 6 -1 ,4 1 7 -1,2 7 8 -1,4 1 8 -1,148 95.0 110.0 95.2 115.2 90.4 1,824 2,076 2,014 1,917 1,673 609 664 729 583 534 546 616 663 551 485 1,278 1,460 1,351 1,366 1,188 63 48 67 32 49 32 97 60 89 100 32 97 60 89 100 98 84 46 60 5 in City o f Chicago 1971—June July 2 ........... 9 ........... 16........... 23............ 30............ 10 -5 6 -7 2 77 11 1,216 1,412 1,284 1,334 1,139 7 ............ 14............ 21............ 28............ 16 -1 0 -1 49 116 7 1,419 1,711 1,091 1,139 -1 ,4 0 4 -1 ,7 2 0 -1 ,2 0 7 -1,0 9 8 112.4 133.9 91.3 87.4 1,984 2,232 1,656 1,686 564 521 565 546 518 499 493 527 1,465 1,734 1,163 1,158 46 23 72 19 98 84 46 60 33 others 1971—June 2 ............ 9 ............ 16............ 23............ 30............ 57 -2 5 14 70 60 157 27 19 84 122 1,864 2,405 2,295 2,341 1,879 -1 ,9 6 4 -2 ,4 5 7 -2 ,3 0 0 -2 ,3 5 5 -1,941 30.4 38.3 36.0 37.2 30.4 4,400 5,162 4,768 4,666 4,348 2,535 2,758 2,473 2,324 2,470 2,213 2,364 2,284 2,026 2,127 2,187 2,799 2,484 2,640 2,221 323 394 189 299 342 406 362 291 292 214 102 148 183 330 287 304 214 109 -3 8 -7 3 July 7 ........... 14........... 21........... 28............ 105 -1 8 31 -3 1 149 308 228 81 2,125 2,416 2,220 1,717 -2 ,1 6 9 -2 ,7 4 2 -2 ,4 1 7 -1 ,8 3 0 33.9 42.3 36.8 27.9 5,027 5,100 4,918 4,700 2,901 2,685 2,698 2,983 2,429 2,334 2,106 1,913 2,598 2,766 2,812 2,787 473 350 592 1,069 251 392 177 153 264 181 294 267 -1 2 211 -1 1 7 -1 1 4 1 Based upon reserve balances, including all adjustments applicable to the reporting period. Prior to Sept. 25,1968, carryover reserve deficiencies, if any, were deducted. Excess reserves for later periods are net of all carry over reserves. 2 Derived from averages for individual banks for entire week. Figure for each bank indicates extent to which the bank’s weekly average pur chases and sales are offsetting. 3 Federal funds loaned, net funds supplied to each dealer by clearing banks, repurchase agreements (purchases of securities from dealers subject to resale), or other lending arrangements. 4 Federal funds borrowed, net funds acquired from each dealer by clearing banks, reverse repurchase agreements (sales of securities to dealers subject to repurchase), resale agreements, and borrowings secured by Govt, or other issues. N ote . —Weekly averages of daily figures. For description of series and back data, see Aug. 1964 B u l l e t in , pp. 944-74. AUGUST 1971 a F.R. BANK INTEREST RATES A 9 CURRENT RATES (Per cent per annum) Advances to and discounts for member banks Advances and discounts under Secs. 13 and 13a 1 Federal Reserve Bank Rate on July 31, 1971 Boston.............................................. New York........................................ Philadelphia..................................... Cleveland......................................... Richmond........................................ Atlanta............................................. Chicago............................................ Minneapolis..................................... Kansas City..................................... Dallas............................................... San Francisco.................................. Effective date 5 5 5 5 5 5 5 5 5 5 5 5 July July July July July July July July July July July July 19, 16, 16, 23, 23, 19, 23, 16, 19, 23, 23, 16, Previous rate Rate on July 31, 1971 434 434 434 434 434 434 434 434 434 434 434 434 51/2 51/2 51/2 51/2 51/2 51/2 51/2 51/2 51/2 51/2 51/2 51/2 1971 1971 1971 1971 1971 1971 1971 1971 1971 1971 1971 1971 Advances to all others under last par. Sec. 133 Advances under Sec. 10(b) 2 Effective date July July July July July July July July July July July July 19, 16, 16, 23, 23, 19, 23, 16, 19, 23, 23, 16, 1971 1971 1971 1971 1971 1971 1971 1971 1971 1971 1971 1971 Previous rate Rate on July 31, 1971 514 514 514 51/4 514 514 514 514 514 514 514 514 7 7 7 7 7 7 7 7 7 7 7 7 Effective date July July July July July July July July July July July July 19, 16, 16, 23, 23, 19, 23, 16, 19, 23, 23, 16, 1971 1971 1971 1971 1971 1971 1971 1971 1971 1971 1971 1971 Previous rate 634 634 634 634 634 634 634 634 634 634 634 634 1 Discounts of eligible paper and advances secured by such paper or by 2 Advances secured to the satisfaction of the F.R. Bank. Maximum U.S. Govt, obligations or any other obligations eligible for F.R. Bank maturity: 4 months. purchase. Maximum maturity: 90 days except that discounts of certain 3 Advances to individuals, partnerships, or corporations other than member banks secured by direct obligations of, or obligations fully bankers’ acceptances and of agricultural paper may have maturities not guaranteed as to principal and interest by, the U.S. Govt, or any over 6 months and 9 months, respectively. agency thereof. Maximum maturity: 90 days. SUMMARY OF EARLIER CHANGES (Per cent per annum) Effective date Range (or level)— All F.R. Banks In effect Dec. 31, 1945 t % 1946—Apr. 25............ May 10.......... t % -l 1 F.R. Bank of N.Y. !/2 1 1 1948—Jan. 12........... 1 9 Aug. 13........... 23............ 11/4 1*4-11/2 114 114 H/2 11/2 11/2 1950—Aug. 21............ 25............ 11/ 2- 134 l 34 l 34 l 34 1953—Jan. 16............ 23............ 134-2 2 2 2 1954—Feb. l 34 -2 l 34 11/ 2- 134 11/ 2- 134 11/2 H/2-134 H/2- 1% l 34 134 1 34 134 5 ............ 1 5 Apr. 14............ 1 6 May 21............ 1955—Apr. 14............ 15............ May 2 ............ Aug. 4 ............ 5 ............ 12............ Sept. 9............ 13............ Nov. 18............ 23............ 1956—Apr. 13............ 2 0 Aug. 24............ 31............ 1 -11/4 134-214 11/2 11/2 11/2 134 134 l 34 i 34 -2 i4 2 2 -214 214 214-21/2 214 214 2 2 -214 21/2 21/2 21/2 21/2-3 2 34 -3 2 34 -3 3 234 234 3 3 1957—Aug. 9. 23. Nov. 15. Dec. 2. 3 -31/2 3^2 3 -31/2 3 1958—Jan. 22. 24. Mar. 7. 13. 21. Apr. 18. May 9. Aug. 15. Sept. 12. 23. Oct. 24. Nov. 7. 2Y4-3 2*4-3 214-3 2V4-2U 2V4 l 3/4 —21/4 l 3/4 3 1 4~2 l 34 - 2 2 2 - 21/2 21/2 2!/2-3 1959—Mar. 6. 16. May 29. June 12. Sept. 11. 18. 3 3 -31/2 31/2 31/2-4 4 F.R. Bank of N.Y. 3 31/2 3 3 3 23/4 214 214 214 l 34 l 34 l 34 2 2 2 21/2 3 3 31/2 31/2 4 4 3. 10. 14. , Aug. 12. Sept. 9. 31/2-4 31/2-4 /2 3. 31-31/2 4 1963—July 17.. 26. . 3 -3i/ 2 31/2 31/2 31/2 1960—June 1964—Nov. 24. 30. t Preferential rate of l/ i o f 1 per cent for advances secured by U.S. Govt, obligations maturing in 1 year or less. The rate of 1 per cent was continued for discounts of eligible paper and advances secured by such paper or by U.S. Govt, obligations with maturities beyond 1 year. N o t e .—Rates under Secs. 13 and 13a (as described in table and notes above). For data before 1946, see Banking and Monetary Statistics, 1943, pp. 439-42 and Supplement to Section 12, p. 3. The rate charged by the F.R. Bank of N.Y. on repurchase contracts against U.S. Govt, obligations was the same as its discount rate except in the following periods (rates in percentages): 1955—May 4-6, 1.65; Range (or level)All F.R. Banks Effective date 3 ‘ 31/2-4 4 31/2 31/2 3 3 4 4 Effective date 1965—Dec. 1967—Apr. 6. 13. 7. 14. Nov. 20. 27. 1968—Mar. 15. 22. Apr. 19. 26. Aug. 16. 30. Dec. 18. 20. 1969—Apr. 4. 8. 1970—Nov. 11. 13. 16. Dec. 1. 4. 11. 1971—Jan. 8 . 15. 19. 22. . 29. Feb. 13. 19. . July 16.. 23. . In effect July 31, 1971. Range (or level)— All F.R. Banks F.R. Bank of N.Y. 4 - 41/2 41/2 41/2 4 -41/2 4 4 - 41/2 41/2 41/2-5 5 5 -51/2 51/2 51/4-51/2 514 514-51/2 51/2 51/2-6 6 534-6 534-6 534 51/2-534 51/2-534 51/2 514-51/2 514 5 -514 5 -514 5 4 34 -5 4*4 4 34 -5 5 5 41/2 4 4 41/2 41/2 4^ 5 51/2 51/2 51/2 514 51/2 51/2 6 6 6 534 534 534 51/2 51/2 514 514 514 5 5 5 434 5 5 5 Aug. 4, 1.85; Sept. 1-2, 2.10; Sept. 8 , 2.15; Nov. 10, 2.375; 1956—Aug. 24-29 , 2.75; 1957—Aug. 22, 3.50; 1960—Oct. 31-Nov. 17, Dec. 28-29, 2.75; 1961—Jan. 9, Feb. 6-7, 2.75; Apr. 3-4, 2.50; June 29, 2.75; July 20, 31, Aug. 1-3, 2.50; Sept. 28-29, 2.75; Oct. 5, 2.50; Oct. 23, Nov. 3, 2.75; 1962—Mar. 20-21, 2.75; 1964—Dec. 10, 3.85; Dec. 15, 17, 22, 24, 28, 30, 31, 3.875; 1965—Jan. 4-8,3.875; 1968—Apr. 4, 5,11,15,16,5.125; Apr. 30, 5.75; May 1-3, 6 , 9, 13-16, 5.75; June 7, 11-13, 19, 21, 24, 5.75; July 5, 16, 5.625; Aug. 16, 19, 5.25; 1971—Jan. 21, 27, 4.75; Feb. 1-2, 4.50; 4, 11, 4.25; 16-17, 4.00; 18-19, 3.75. Mar. 1-2, 10, 12, 15-18, 24, 29-31, 3.75. Apr. 1-2, 5-6 3.75; 13, 15, 21, 28, 4.125. May 3-6, 17, 4.125, 18-20, 4.375, 26-27, 4.50; June I, 4.50. A 10 RESERVE AND MARGIN REQUIREMENTS □ AUGUST 1971 RESERVE REQUIREMENTS OF MEMBER BANKS (Per cent of deposits) Beginning July 14, 1966 Dec. 31, 1949, through July 13, 1966 Net demand deposits 2 Time depos its (all Coun classes of try banks banks) Central reserve city banks Reserve city banks In effect Dec. 31, 1949. 22 18 12 1951—Jan. Jan. 1953—July 1954—June July 1958—Feb. Mar. Apr. Apr. 1960—Sept. Nov. Dec. 1962—July Oct. 23 24 22 21 20 19% 19 19 20 19 13 14 13 18 17% 17 12 UK !!* 16% 11,16......... 25, Feb. 1. 9 ,1 ........... 24, 16......... 29, Aug. 1. 27, Mar. 1. 20, Apr. 1. 17................ 24................ 1................ 24................ 1................ 28................ 25, Nov. 1. 17% Time deposits 4,5 (all classes of banks) Net demand deposits 2>4 Effective date 1 Reserve city banks Country banks Under Over Under Over $5 mil $5 mil $5 mil $5 mil lion lion lion lion 1966—July 14,21, Sept. 8, 15. 64 « 12 6 16% Sav ings depos its 1967—Mar. 2. Mar. 16. 3% 3 1968—Jan. 1 1 ,1 8 .... 16% 17 12 12% 1969—Apr. 17............ 17 17% 12% 13 17 17% 12% 13 In effect July 31, 1971. 12 Present legal requirement: Minimum........ Maximum........ 1 When two dates are shown, the first applies to the change at central reserve or reserve city banks and the second to the change at country banks. For changes prior to 1950 see Board’s Annual Reports. 2 Demand deposits subject to reserve requirements are gross demand deposits minus cash items in process of collection and demand balances due from domestic banks. 3 Authority of the Board of Governors to classify or reclassify cities as central reserve cities was terminated effective July 28, 1962. 4 Since Oct. 16, 1969, member banks have been required under Regula tion M to maintain reserves against balances above a specified base due from domestic offices to their foreign branches. Effective Jan. 7, 1971, the applicable reserve percentage was increased from the original 10 per cent to 20 per cent. Regulation D imposes a similar reserve requirement on bor 10 22 3 10 7 14 1937—Nov. 1 1945—Feb. 5 July 5 1946—Jan. 21 1947—Feb. 1 1949—Mar. 30 17 1951—Jan. 1953—Feb. 20 1955—Jan. 4 Apr. 23 1958—Jan. 16 5 Aug. Oct. 16 1960—July 28 1962—July 10 1963—Nov. 6 For credit extended under Regulations T (brokers and dealers), U (banks), and G (others than brokers, dealers, or banks) 1945—Feb. July 1946—Jan. 1947—Jan. 1949—Mar. 1951—Jan. 1953—Feb. 1955—Jan. Apr. Jan. 1958—Aug. Oct. 1960—July 1962—July 1963—Nov. 1968—Mar. 4. 4 20. 31. 29. 16. 19. 3, 22. 15, 4. 15 , 27. 9. 5, 10, 1968—Mar. 11 June 1970—May June 8 Effective May 6, 1970. 7, 5. On margin stocks On convertible bonds 40 50 75 100 75 50 75 50 60 70 50 70 90 70 50 70 On short sales (T) 50 50 75 100 75 50 75 50 60 70 50 70 90 70 50 70 70 80 65 50 60 50 70 80 65 N ote .—Regulations G, T, and U, prescribed in accordance with the Securities Exchange Act of 1934, limit the amount of credit to purchase and carry margin stocks that may be extended on securities as collateral by prescribing a maximum loan value, which is a specified percentage of the market value of the collateral at the time the credit is extended; margin requirements are the difference between the market value (100 per cent) and the maximum loan value. The term margin stocks is defined in the corresponding regulation. Regulation G and special margin requirements for bonds convertible into stocks were adopted by the Board of Governors effective Mar. 11, 1968. 3% 3 3 10 3 10 N ote .—All required reserves were held on deposit with F.R. Banks June 21, 1917, until Dec. 1959. From Dec. 1959 to Nov. 1960, member banks were allowed to count part of their currency and coin as reserves; effective Nov. 24, 1960, they were allowed to count all as reserves. For further details, see Board’s Annual Reports. (Per cent of market value) Ending date 64 rowings above a specified base from foreign banks by domestic offices of a member bank. For details concerning these requirements, see Regula tions D and M and appropriate supplements and amendments thereto. 5 Effective Jan. 5, 1967, time deposits such as Christmas and vacation club accounts became subject to same requirements as savings deposits. 6 See preceding columns for earliest effective date of this rate. MARGIN REQUIREMENTS Beginning date Under Over $5 mil $5 mil lion lion 1970—Oct. 1............... 16% ( 3) Period Other time deposits AUGUST 1971 □ MAXIMUM INTEREST RATES; BANK DEPOSITS A 11 MAXIMUM INTEREST RATES PAYABLE ON TIME AND SAVINGS DEPOSITS (Per cent per annum) Rates Jan. 1, 1962—July 19, 1966 Rates beginning July 20, 1966 Effective date Type of deposit Jan. 1, 1962 July 17, 1963 4 3Vi 4 3^2 Savings deposits: 1 12 months or m o re .. Less than 12 months. Other time deposits: 2 12 months or m o re .. . . 6 months to 12 months 90 days to 6 m onths.. . Less than 90 days....... . (30-89 days) Nov. 24, 1964 Effective date Dec. 6, 1965 41/2 1 July 20, 1966 Savings deposits............. Other time deposits:2 Multiple maturity:3 30-89 days........... 90 days-1 y e a r.., 1 year to 2 years. 2 years and over., Single-maturity: Less than $100,000: 30 days to 1 y ear.. 1 year to 2 years.. 2 years and over. . $100,000 and over: 30-59 days.......... 60-89 days.......... 90-179 days........ 180 days to 1 year. 1 year or m ore. .. 4 3 Vi 2 Vi Type of deposit 4 1 Closing date for the Postal Savings System was Mar. 28, 1966. Max imum rates on postal savings accounts coincided with those on savings deposits. 2 For exceptions with respect to certain foreign time deposits, see B u l l e t in s for Oct. 1962, p. 1279; Aug. 1965, p. 1084; and Feb. 1968, p. 167. 3 Multiple-maturity time deposits include deposits that are automati cally renewable at maturity without action by the depositor and deposits that are payable after written notice of withdrawal. 4 The rates in effect beginning Jan. 21 through June 23, 1970, were 6 V4 per cent on maturities of 30-59 days and 6 l/ i per cent on maturities of Sept. 26, 1966 Apr. 19, 1968 Jan. 21, 1970 41/2 4 4Vi 5 5 5Vi sy4 5 Vi 5 Vi 5y4 5 5 Vi 5V4 6 5 Vi 5V2 }6Va (4) ( 4) 6y4 7 7to 60-89 days. Effective June 24, 1970, maximum interest rates on these maturities were suspended until further notice. N ote . —Maximum rates that may be paid by member banks are estab lished by the Board of Governors under provisions of Regulation Q; however, a member bank may not pay a rate in excess of the maximum rate payable by State banks or trust companies on like deposits under the laws of the State in which the member bank is located. Beginning Feb. 1, 1936, maximum rates that may be paid by nonmember insured commercial banks, as established by the FDIC, have been the same as those in effect for member banks. DEPOSITS, CASH, AND RESERVES OF MEMBER BANKS (In millions of dollars) Reserve city banks All member banks Item New York City City of Chicago Other Reserve city banks Country banks Four weeks ending May 19, 1971 Gross demand—Total. . . Interbank..................... U.S. Govt..................... Other............................ Net demand 1 ................. Time................................. Demand balances due from dom. banks........ Currency and coin.......... B alan ces w ith F.R. Banks........................... Total reserves held.......... Required....................... Excess ........................... Item All member banks 44,641 12,351 1,310 30,980 26,932 23,310 8,002 1,418 416 6,168 6,318 6,931 66,850 9,303 2,764 54,783 50,505 71,262 10,820 5,183 1,110 429 174 102 2,742 1,638 25,163 30,346 5,365 5,794 1,328 1,430 10,258 11,896 71,341 Gross demand—Total__ 188,955 2,831 Interbank...................... 25,627 U.S. Govt...................... 4,513 2,279 66,231 158,815 59,409 Net demand 1................... 141,690 93,309 Time.................................. 197,191 Demand balances due from dom. banks.......... 10,845 6,793 Currency and coin............ 5,193 3,014 B a la n c e s w ith F .R . 8,212 24,966 11,226 Total reserves held........... 30,159 30,160 186 5,796 1,429 11,879 17 11,056 170 1 1 Demand deposits subject to reserve requirements are gross demand deposits minus cash items in process of collection and demand balances due from domestic banks. City of Chicago Other Country banks Four weeks ending June 16, 1971 190,834 25,903 6,770 158,161 143,164 194,812 -2 New York City 43,244 12,090 760 30,394 26,164 24,025 7,946 1,436 226 6,284 6,230 7,080 66,281 9,253 1,685 55,343 49,873 71,841 71,484 2,848 1,843 66,793 59,424 94,245 1,053 426 158 104 2,746 1,642 6,888 3,021 5,287 5,713 29,959 1,323 1,427 5,707 10,162 11,804 8,193 11,214 200 6 1,423 4 11,785 19 11,044 170 N ote .—Averages of daily figures. Balances with F.R. Banks are as of close of business; all other items (excluding total reserves held and excess reserves) are as of opening of business. A 12 FEDERAL RESERVE B AN K S □ A U G U S T 1971 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) Wednesday Item End of month 1971 July 28 July 21 July 14 1971 July 7 June 30 July 31 1970 June 30 July 31 Assets Gold certificate account................................................ Special Drawing Rights certificate account................ Discounts and advances: O ther..................... .................................................... Acceptances: Held under repurchase agreements........................... Federal agency obligations—Held under repurchase agreements........ ......................................................... U.S. Govt, securities: Bought outright: Bills.......................................................................... Certificates—Special.............................................. O ther................................................. Held under repurchase agreements........................... 10,075 400 10,075 400 10,075 400 10,075 400 10,075 400 10,075 400 10,075 400 11,045 400 270 274 267 274 283 277 283 207 781 1,561 1,842 471 446 778 446 1,252 40 54 57 25 57 61 62 55 62 37 75 28,173 28,115 28,047 27,529 27,929 28,252 27,929 23,290 34,354 3,235 34,354 3,235 34,354 3,235 34,354 3,235 34,354 3,235 34,354 3,235 34,354 3,235 32,420 2,887 i 65,762 i 65,704 901 i 65,636 i 265,118 1 65,518 i 65,841 i 65,518 58,597 Total U.S. Govt, securities............................................ 65,762 66,605 65,636 65,118 65,518 65,841 65,518 58,597 Total loans and securities.............................................. Cash items in process of collection.............................. Bank premises................................................................ Other assets: Denominated in foreign currencies........................... IMF gold deposited 3................................................ All other.................................................................... 66,597 *10,193 144 68,323 *11,140 144 67,535 *12,200 143 65,650 *10,981 143 66,026 10,745 141 66,674 *9,231 144 66,026 10,745 141 59,926 8,376 121 23 148 890 43 148 866 49 148 817 89 148 743 96 148 701 23 144 898 96 148 701 290 210 722 Total assets..................................................................... *88,740 *91,413 *91,634 *88,503 88,615 *87,866 88,615 81,297 Liabilities F.R. notes....................................................................... Deposits: Member bank reserves............................................... U.S. Treasurer—General account............................ Foreign........................................................................ Other: IM F gold deposit 3................................................ All other.................................................................. 51,838 51,983 52,276 52,239 51,452 51,610 51,452 47,810 *24,656 1,413 149 26,934 1,110 115 *24,943 2,516 163 *22,948 2,065 196 24,550 1,274 199 *25,311 1,115 162 24,550 1,274 199 23,072 1,200 199 148 574 148 550 148 546 148 565 148 540 144 610 148 540 210 572 Total deposits......................................................... *26,940 *28,857 *28,316 *25,922 26,711 *27,342 26,711 25,253 Deferred availability cash items.................................... Other liabilities and accrued dividends........................ 7,711 542 8,362 568 8,909 552 8,021 548 8,196 546 6,623 557 8,196 546 5,891 664 Total liabilities............................................................... *87,031 *89 770 *90,053 *86,730 86 905 *86,132 86 905 79,618 Capital paid in ............................................................... Surplus............................................................................ Other capital accounts................................................... 731 702 276 730 702 211 729 702 150 727 702 344 729 702 279 731 702 301 729 702 279 686 669 324 Total liabilities and capital accounts............................ *88,740 *91,413 *91,634 *88,503 88,615 *87,866 88,615 81,297 Contingent liability on acceptances purchased for foreign correspondents.............................................. Marketable U.S. Govt, securities held in custody for foreign and international accounts4.......................... 228 227 228 228 230 228 230 239 18,258 18,126 17,694 17,970 17,980 18,191 17,980 11,803 Capital accounts Federal Reserve Notes—Federal Reserve Agents’ Accounts F.R. notes outstanding (issued to Bank)..................... Collateral held against notes outstanding: Gold certificate account............................................ U.S. Govt, securities.................................................. 55,087 55,148 55,089 54,772 54,495 55,095 54,495 51,119 3,250 53,340 3,250 53,340 3,250 53,340 3,170 52,945 3,170 52,945 3,250 53,340 3,170 52,945 3,322 49,110 Total collateral............................................................... 56,590 56,590 56,590 56,115 56,115 56,590 56,115 52,432 1 See note 6 on p. A-5. 2 See note 7 on p. A-5. 3 See note 1 (b) at top of p. A-75. 4 This caption valid beginning Sept. 16, 1970; figures prior to that date include both marketable and nonmarketable securities for foreign account only. AUGUST 1971 □ FEDERAL RESERVE BANKS A 13 STATEMENT OF CONDITION OF EACH FEDERAL RESERVE BANK ON JULY 31, 1971 (In millions of dollars) Item Total Boston New York Phila del phia Cleve land Rich mond Atlan ta Chi cago St. Louis Minne Kan sas apolis City Dallas San Fran cisco Assets Gold certificate account...................... Special Drawing Rights certif. acct.. . F.R. notes of other banks................... Other cash............................................ 10,075 400 1,009 277 Discounts and advances: 572 Secured by U.S. Govt, securities.. . . 206 O ther................................................. Acceptances: Bought outright............................... Held under repurchase agreements.. Federal agency obligations—Held under repurchase agreements.......... U.S. Govt, securities: Bought outright............................... 165,841 Held under repurchase agreements.. Total loans and securities................... 66,674 Cash items in process of collection. . . 12,255 144 Bank premises...................................... Other assets: 23 Denominated in foreign currencies.. 144 IMF gold deposited 3...................... 898 All other........................................... Total assets. 524 23 107 9 2.354i 93 182 22 584| 23 71! 91 838 33 70 27 26 518! 1.599 221 70 199! 42 34! 41 919 36 102 35 390 15 271 16! 108 7 36 7 136 132 921 392 15 40 26 387 14 29! 17 1,462 49 104 34 Hi 14! 72 2,934 ,792 3,290 16,979 3,487 5,113 4,753 3,280 10,845 2,428 1,345 2,595 3,379 17,108 3,513 5,150 4,845 3,367 11,113 2,434 1,347 2,606 2,033 638 3 817 19 873 13 603 14 466 17 816 1 652 2 1,375 16 2,018 17 2 6 144 225 3 16 7,022 6,889 5,576 15,042 3,531 2,005 2,903 12,645 3,047 4,269 4,673 2,569 9,186 2,021 6,527 232 4 55 1,134 78 7 1,751 77 13 1,312 78 1,660 57 10 3,724 130 22 891 59 5 22,175 52,619 25,311 1,115 162 1,064 88 7 1,172 8 3 139 4,8 91,899 8,864 792 9 38 " * i 37 3,946 4,235 11,833 903 1,980 2,072 6,351 621 46 3 1,106 95 6 1,419 61 4,102 114 18 Liabilities F.R. notes............................................ Deposits: Member bank reserves.................... U.S. Treasurer—General account.. Foreign............................................. Other: IMF gold deposit 3.................... All other..................................... 144 613 144 525 14 29 27,345 1,160 7,483 1,223 1,842 1,412 1,730 3,905 958 672 1,209 1,491 4,260 9,644 557 586 29 1,451 141 499 28 714 44 669 39 1,138 27 1,597 90 474 20 380 12 662 24 554 24 920 79 90,165 4,678 21,720 4,797 6,869 6,793 5,464 14,778 3,473 1,967 3,875 4,141 11,610 731 702 301 191 185 79 Total liabilities and capital accounts.. 91,899 4,757 22,175 Total deposits. Deferred availability cash items......... Other liabilities and accrued dividends Total liabilities.................... Capital accounts Capital paid in ............ Surplus......................... Other capital accounts. Contingent liability on acceptances purchased for foreign correspond ents.................................................... 228 11 92 88 43 109 105 50 4,8 7,022 12 5 60 20 5,576 15,042 12 3,531 2,005 3,946 34 4,235 11,833 13 29 Federal Reserve Notes—Federal Reserve Agents’ Accounts F.R. notes outstanding (issued to Bank)................................................ Collateral held against notes out standing: Gold certificate account.................. U.S. Govt, securities....................... Total collateral. 55,095 3,076 13,273 3,128 4,471 4,830 2,751 9,510 2,110 945 2,062 2,218 6,721 3,250 53,340 250 500 2,920 13,000 300 3,000 510 4,000 530 4,375 2,900 1,000 8,750 155 2,030 960 2,125 5 2,280 7,000 56,590 3,170 13,500 3,300 4,510 4,905 2,900 9,750 2,185 960 2,125 2,285 7,000 1 See note 6 on p. A-5. 2 After deducting $17 million participations of other F.R. Banks. 3 See note 1 (b) to table at top of p. A-75. 4 After deducting $107 million participations of other F.R. Banks. 5 After deducting $168 million participations of other F.R. Banks. N ote .— Some figures for cash items in process of collection and for member bank reserves are preliminary. A 14 OPEN MARKET ACCOUNT □ AUGUST 1971 TRANSACTIONS OF THE SYSTEM OPEN MARKET ACCOUNT (In millions of dollars) Outright transactions in U.S. Govt, securities, by maturity Total Treasury bills Others within 1 year Month Gross pur chases Gross sales 1970—June July. Aug. Sept. O ct., Nov. Dec. 2,659 1,626 1,127 2,657 245 2,871 3,414 1,612 744 106 2,367 183 1,391 2,280 1971—Jan.. Feb. Mar. Apr. May June 1,515 5,832 3,142 2,229 1,291 1,955 1,547 5,153 2,523 1,298 248 1,165 Redemp tions 641 308 134 327 240 50 37 Gross pur chases Gross sales 2,449 1,626 1,127 2,474 245 2,715 2,883 1,612 744 106 2,367 183 1,391 2,280 1,515 5,347 2,600 2,033 1,163 1,893 1,547 5,153 2,523 1,298 248 1,165 Outright transactions in U.S. Govt, securities—Continued 5-10 years Month Gross pur chases Gross sales Over 10 years Exch. or ma turity shifts Gross pur chases Gross sales Exch. or ma turity shifts 37 1970—June. .. July.. . . Aug---Sept__ Oct....... Nov.. . . D ec.. . . 23 113 386 16 48 1971—Jan.. .. Feb___ Mar___ A p r.. . . M a y ... June__ 189 205 62 82 11 -3 6 0 121 74 16 150 61 16 -3 6 -327“ 1 Net change in U.S. Govt, securities, Federal agency obligations, and bankers’ acceptances. Redemp tions Gross pur chases Gross sales 1-5 years Exch., maturity shifts, or redemp tions 23 641 308 134 Gross pur chases Gross sales 146 -129 90 37 5 327 240 50 6,362 80 365 -6,712 -3,732 174 263 119 46 38 4,092 2 464 82 37 Repurchase agreements (U.S. Govt, securities) Exch. maturity shifts Net change in U.S. Govt, secur ities Gross pur chases Gross sales 905 2,008 3,181 3,906 3,465 3,863 5,109 905 2,008 2,852 3,861 3,353 4,125 5,334 407 882 1,351 28 40 1,218 908 2,298 4,183 6,561 5,085 4,076 1,165 2,298 4,183 5,242 6,404 4,076 1,165 -3 5 9 679 1,698 -439 1,043 754 Federal agency obliga tions (net re purchase agree ments) 31 50 -27 -61 186 -186 -2 -136 -8 2 Bankers’ acceptances Out right, net -10 5 -4 3 * 1 21 2 -5 Under repur chase agree ments, net Net change1 30 21 -14 13 -50 397 887 1,407 101 34 1,204 819 85 -85 48 -48 -3 5 7 673 1,968 -7 0 7 1,099 705 N ote .—Sales, redemptions, and negative figures reduce System hold ings; all other figures increase such holdings. CONVERTIBLE FOREIGN CURRENCIES HELD BY FEDERAL RESERVE BANKS (In millions of U.S. dollar equivalent) End of period Total Pounds sterling 1968—Dec., 1969—Dec., 2,061 1,967 1,444 1,575 1970—Apr., May, June, July. Aug. Sept. O ct.. Nov. Dec. 1,101 510 690 290 280 680 408 265 257 1971—Jan.. Feb. Mar. Apr. 186 107 34 34 Austrian schillings Belgian francs Canadian dollars Danish kroner French francs 433 199 German marks Italian lire 165 60 1 125 199 199 180 180 180 580 306 161 154 93 94 94 95 96 96 97 98 98 805 205 400 80 99 100 27 27 Japanese yen Nether lands guilders Swiss francs 11 15 14 3 3 4 4 4 5 5 5 5 AUGUST 1971 □ FEDERAL RESERVE BANKS; BANK DEBITS A 15 MATURITY DISTRIBUTION OF LOANS AND U.S. GOVERNMENT SECURITIES HELD BY FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month 1971 Item Discounts and advances—T otal................................... Within 15 days............................................................ 16 days to 90 days...................................................... 91 days to 1 year........................................................ Acceptances—Total........................................................ Within 15 days............................................................ 16 days to 90 days..................................................... 91 days to 1 year........................................................ U.S. Government securities—T otal.............................. Within 15 days1.......................................................... 16 days to 90 days...................................................... 91 days to 1 year........................................................ Over 1 year to 5 years................................................ Over 5 years to 10 years............................................. Over 10 years.............................................................. 1971 July 28 July 21 July 14 July 7 781 777 4 1,561 1,559 2 1,842 1,841 1 54 21 33 82 43 39 65,762 4,518 13,326 17,518 23,600 5,907 893 66,680 5,393 13,377 17,510 23,600 5,907 893 1970 June 30 July 31 June 30 July 31 471 469 2 446 444 2 778 774 4 446 444 2 1,292 1,244 48 57 10 47 61 14 47 62 15 47 55 18 37 62 15 47 37 5 32 65,636 3,585 13,982 17,669 23,600 5,907 893 65,118 3,117 13,566 18,035 23,600 5,907 893 65,518 3,268 13,298 18,552 23,600 5,907 893 65,841 3,062 14,173 18,206 23,600 5,907 893 65,518 3,268 13,298 18,552 23,600 5,907 893 58,597 2,264 10,631 14,369 25,395 5,314 624 1 Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements. BANK DEBITS AND DEPOSIT TURNOVER (Seasonally adjusted annual rates) Debits to demand deposit accounts1 (billions of dollars) Period 6 others2 Total 232 SMSA’s (excl. N.Y.) 226 other SMSA’s Total 233 SMSA’s N.Y. 4,366.0 4,324.3 4,770.6 4,668.1 4,899.8 4,824.0 5,016.1 2,443.3 2,508.2 2,478.8 2,502.9 2,497.4 2,420.1 2,480.1 5,770.3 5,883.6 5,779.9 5,883.9 5,880.5 5,709.9 5,880.3 3,327.0 3,375.3 3,301.1 3,381.0 3,383.0 3,289.8 3,400.2 73.1 73.1 75.7 75.3 78.1 75.6 77.0 4,825.9 5,477.4 5,309.7 5,356.8 4,903.9 5,202.8 *•2,453.5 r2,524.1 r2,505.3 r2,597.1 r2,573.9 2,764.5 r5,862.5 >•6,031.5 *•6,116.2 *•6,301.9 r6,215.9 6,612.4 3,408.9 *•3,507.4 3,610.9 3,704.8 3,642.0 3,847.9 *•76.3 *•82.0 *•79.5 r80.5 *•76.7 80.1 Leading SMSA’s Total 233 SMSA’s N.Y. 1970—June............................. July.............................. Aug.............................. Sept.............................. Oct............................... Nov.............................. Dec............................... 10,136.3 10,207.8 10,550.5 10,552.0 10,780.2 10,533.9 10,896.5 1971—Jan................................ Feb............................... Mar............................... Apr............................... M ay............................. June............................. M0,688.4 rl l ,508.9 M l,425.9 M l,658.7 M l,119.8 11,815.2 1 Excludes interbank and U.S. Govt, demand deposit accounts. 2 Boston, Philadelphia, Chicago, Detroit, San Francisco-Oakland, and Los Angeles-Long Beach. N ote .—Total SMSA’s includes some cities and counties not designated as SMSA’s. Turnover of demand deposits Leading SMSA’s 6 others2 Total 232 SMSA’s (excl. N.Y.) 226 other SMSA’s 149.3 145.3 162.8 161.0 175.9 168.5 170.6 77.5 79.4 77.9 77.9 78.4 75.8 76.7 52.7 53.6 52.5 53.0 53.4 51.6 52.4 42.7 43.1 42.2 42.8 43.2 41.8 42.6 168.3 191.3 183.5 185.6 171.2 179.3 *76.8 *•79.5 r76.5 *78.7 *•77.9 82.4 r52.6 *•54.0 *•53.3 r54.4 *-53.4 55.8 42.9 43.9 44.1 44.7 43.7 45.4 For description of series, see Mar. 1965 B u l l e t in , p. 390. The data shown here differ from those shown in the Mar. 1965 B u ll e tin because they have been revised, as described in the Mar. 1967 B u l l e t in , p. 389. A 16 U.S. C U R R E N C Y □ A U G U S T 1971 DENOMINATIONS IN CIRCULATION (In millions of dollars) End of period Total in cir cula tion 1 Coin and small denomination currency Large denomination currency Total Coin $1 2 $2 $5 $10 $20 Total $50 $100 $500 5,553 590 751 1,274 1,404 559 695 1,039 1,048 36 44 73 65 1,019 1,355 2,313 1,576 2,545 9,201 9,119 2,048 3,044 7,834 8,850 460 724 2,327 2,548 919 1,433 4,220 5,070 191 261 454 428 425 556 801 782 20 2,110 1,772 2,731 6,782 6,275 32 46 24 17 1,113 1,312 1,494 1,511 64 75 83 85 2,049 2,151 2,186 2,216 5,998 6,617 6,624 6,672 8,529 9,940 10,288 10,476 8,438 9,136 9,337 9,326 2,422 2,736 2,792 2,803 5,043 5,641 5,886 5,913 368 307 275 261 588 438 373 341 4 3 3 3 12 12 92 97 103 88 6,691 6,878 7,071 7,373 7,543 10,536 10,935 11,395 12,109 12,717 9,348 9,531 9,983 10,885 11,519 2,815 2,869 2,990 3,221 3,381 5,954 6,106 6,448 316 300 293 298 293 3 3 3 3 10 10 10 7,590 249 242 240 249 248 2 4 4 $1,000 $5,000 $10,000 1939. 1941 . 1945. 1947. 7,598 11,160 28,515 28,868 1950. 1955. 1958. 1959, 27,741 31,158 32,193 32,591 22,856 23,264 1,554 1,927 2,182 2,304 1960 1961 . 1962. 1963. 1964. 32,869 33,918 35,338 37,692 39,619 23,521 24,388 25,356 26,807 28,100 2,427 2,582 2,782 3,030 3,405 1,533 1,588 1,636 1,722 1,806 111 2,246 2,313 2,375 2,469 2,517 1965. 1966. 1967. 1968 1969. 42,056 44,663 47,226 50,961 53,950 29,842 31,695 33,468 36,163 37,917 4,027 4,480 4,918 5,691 6,021 1,908 2,051 2,035 2,049 2,213 127 137 136 136 136 2,618 2,756 2,850 2,993 3,092 7,794 13,369 12,214 8,070 14,201 12,969 8,366 15,162 13,758 8,786 16,508 14,798 8,989 17,466 16,033 3,540 3,700 3,915 4,186 4,499 8,135 8,735 9,311 10,068 11,016 245 241 240 244 234 288 286 285 292 276 3 3 3 3 3 4 4 4 4 5 1970— June.......... Ju ly .......... Aug........... Sept........... Oct............ Nov........... Dec............ 54,351 54,473 54,669 54,795 55,021 56,381 57,093 37,994 37,959 38,042 38,082 38,192 39,284 39,639 6,128 6,145 6,170 6,193 6,213 6,251 6,281 2,157 2,132 2,142 2,168 2,181 2,242 2,310 136 136 136 136 136 136 136 2,983 2,943 2,942 2,964 2,975 3,068 3,161 8,837 17,753 8,743 17,861 8,743 17,909 8,747 17,875 8,761 17,926 9,090 18,497 9,170 18,581 16,357 16,513 16,627 16,712 16,829 17,097 17,454 4,567 4,621 4,654 4,668 4,694 4,781 4,896 11,298 11,404 11,487 11,562 11,656 11,839 12,084 223 262 260 259 257 255 254 252 3 3 3 3 3 3 3 4 4 4 4 4 4 4 1971—-Jan............. 55,345 38,081 38,298 38,785 38,917 39,509 40,263 6,254 6,266 6,303 6,360 6,410 6,472 2,190 2,178 136 136 136 136 136 136 2,971 2,972 3,011 3,001 3,048 3,099 8,673 8,753 8,835 8,826 8,960 9,137 17,857 17,264 17,994 17,313 18,300 17,519 18,388 17,675 18,711 17,894 19,144 18,130 4,809 4,822 4,892 4,917 4,994 5,075 11,983 214 213 251 249 248 246 245 243 3 3 3 3 3 3 4 4 4 4 4 4 Feb............ 55,611 Mar........... 56,304 Apr............ 56,592 M ay.......... 57,403 June.......... 58,393 8,120 20,020 20,683 19,305 22,021 2,200 2,206 2,245 2,277 1 Outside Treasury and F.R. Banks. Before 1955 details are slightly overstated because they include small amounts of paper currency held by the Treasury and the F.R. Banks for which a denominational breakdown is not available. 7,110 12,022 12,160 12,294 12,438 12,596 221 220 219 217 216 215 212 210 210 209 24 7 5 9 5 2 Paper currency only; $1 silver coins reported under Coin, N ote .—Condensed from Statement of United States Currency and Coin, issued by the Treasury. KINDS OF UNITED STATES CURRENCY OUTSTANDING AND IN CIRCULATION (Condensed from Circulation Statement of United States Money, issued by Treasury Department. In millions of dollars) Held in the Treasury Kind of currency Gold................................................................................. Gold certificates.............................................................. Federal Reserve notes.................................................... Treasury currency—Total.............................................. Standard silver dollars............................................... Fractional coin............................................................ United States notes.................................................... In process of retirement 4.......................................... Total, out standing, As security Treasury June 30, against cash 1971 gold and silver certificates 10,332 (10,075) 54,494 7,421 (10,075) 485 6,317 323 296 Total—June 30, 1971 .......................................................... 5 72,247 May 31, 1971......... ................................................ 5 71,522 June 30, 1970.......................................................... 5 68,783 3 10,074 (10.075) (10.075) (11,045) 1971 1970 June May June 31 30 30 1 149 48 3,042 283 5 i , 304 7,089 50,377 7,026 47,626 6,725 3 44 283 482 5,990 321 296 482 5,928 320 296 482 5,646 297 300 1 1 Outside Treasury and F.R. Banks. Includes any paper currency held outside the United States and currency and coin held by banks. Esti mated totals for Wed. dates shown in table on p. A-5. 2 Includes $148 million gold deposited by and held for the International Monetary Fund. 3 Consists of credits payable in gold certificates, the Gold Certificate Fund—Board of Governors, FRS. 4 Redeemable from the general fund of the Treasury. 2 257 For F.R. Banks and Agents Currency in circulation 1 Held by F.R. Banks and Agents 454 494 439 10.074 10.074 11,044 3,326 3,551 2,949 58,393 57,403 54,351 5 Does not include all items shown, as gold certificates are secured by gold. Duplications are shown in parentheses. N ote .—Prepared from Statement of United States Currency and Coin and other data furnished by the Treasury. For explanation of currency reserves and security features, see the Circulation Statement or the Aug. 1961 B u ll e tin , p. 936. AUGUST 1971 □ MONEY STOCK A 17 MEASURES OF THE MONEY STOCK (In billions of dollars) Seasonally adjusted Month or week Mi Mi (Currency plus demand deposits) Not seasonally adjusted Mz (Mi plus time (Mi plus deposits deposits at coml. at nonbank thrift banks other than institutions)2 large time CD’s) 1 Mi (Currency plus demand deposits) Mi Mz (Mi plus time (M 2 plus deposits deposits at coml. at nonbank thrift banks other than institutions)2 large time CD’s) 1 1967—Dec................................ 1968—Dec................................ 1969—Dec................................ 183.1 197.4 203.6 345.6 378.2 387.1 528.5 572.6 588.4 188.6 203.4 209.8 350.1 383.0 392.0 533.3 577.5 593.5 1970—July............................... Aug............................... Sept............................... Oct................................ Nov............................... Dec................................ 210.6 211.8 212.8 213.0 213.5 214.6 401.9 406.1 409.6 412.1 414.5 419.0 609.1 614.7 619.7 623.9 628.2 634.6 209.0 208.7 211.4 213.0 215.3 221.1 400.5 403.1 408.2 412.3 415.4 424.1 607.9 611.3 618.0 624.0 628.6 640.0 1971—Jan................................ Feb................................ Mar............................... Apr................................ May............................... J u n e ....................... ... July^............................. 214.8 217.3 219.4 221.1 223.9 225.6 227.6 423.0 430.8 437.6 442.0 447.3 451.4 454.2 642.1 654.0 664.8 673.7 682.4 689.4 695.3 221.3 215.5 217.4 222.2 219.7 223.6 225.9 428.9 428.4 436.3 444.3 444.3 449.6 452.7 648.4 651.3 663.8 676.1 679.1 687.9 694.1 Week ending— June 30....................... July 7 ....................... 14....................... 21........................ 28........................ 225.4 452.0 223.9 450. 3 228.7 227.4 227.7 227.0 455.2 453.9 454.5 454.0 227.4 226.4 225.8 224.1 454.3 452.9 452.6 451.1 COMPONENTS OF MONEY STOCK MEASURES AND RELATED ITEMS (In billions of dollars) Seasonally adjusted Month or week Not seasonally adjusted Commercial banks Cur rency De mand depos its Time and savings deposits CD’s 3 Other Total Non bank thrift institu tions 4 Commercial banks Cur rency De mand depos its Time and savings deposits CD’s 3 Other Non bank thrift institu tions 4 U.S. Govt, depos its 5 Total 1967—Dec.................... 1968—Dec.................... 1969—Dec.................... 40.4 43.4 46.0 142.7 154.0 157.7 21.0 24.0 11.2 162.5 180.8 183.4 183.5 204.8 194.6 183.0 194.4 201.3 41.2 44.3 46.9 147.4 159.1 162.9 20.6 23.6 11.1 161.5 179.6 182.1 182.1 203.2 193.2 183.1 194.6 201.5 5.0 5.0 5.6 1970—July................... Aug................... Sept................... Oct..................... Nov................... Dec.................... 48.1 48.2 48.2 48.5 48.7 48.9 162.5 163.7 164.6 164.5 164.8 165.7 16.9 19.0 21.7 23.2 23.9 26.0 191.3 194.2 196.8 199.1 201.1 204.4 208.2 213.2 218.5 222.2 225.0 230.4 207.2 208.7 210.1 211.9 213.6 215.6 48.3 48.3 48.2 48.5 49.2 50.0 160.7 160.4 163.1 164.5 166.1 171.1 16.6 19.5 21.6 23.2 24.6 25.8 191.5 194.4 196.8 199.3 200.0 203.0 208.1 214.0 218.4 222.5 224.6 228.7 207.5 208.2 209.8 211.7 213.2 215.9 6.8 7.1 6.8 6.1 5.6 7.1 1971—Jan..................... Feb.................... Mar................... Apr.................... May.................. J u n e ................. July^................. 49.2 49.6 50.0 50.5 50.9 51.2 51.7 165.5 167.7 169.4 170.5 173.0 174.4 175.9 27.1 27.4 27.8 27.3 27.9 28.6 30.1 208.2 213.5 218.3 221.0 223.4 225.8 226.6 235.3 240.9 246.1 248.3 251.4 254.4 256.8 219.2 223.2 227.2 231.6 235.1 238.0 241.0 49.1 49.2 49.5 50.1 50.5 51. 1 51.9 172.1 166.3 167.8 172.1 169.2 172.5 174.0 27.0 27.4 28.0 27.1 27.6 28.4 29.5 207.6 212.9 218.9 222.1 224.5 226.1 226.9 234.5 240.3 246.9 249.2 252.1 254.4 256.4 219.6 223.0 227.5 231.9 234.8 238.3 241.3 6.6 8.3 5.4 5.5 7.8 5.4 6.8 Week ending— June 30............ 51.4 174.0 28.8 226.6 255.4 51.0 173.0 28.5 226.4 254.9 6.5 51.8 51.7 51.8 51.7 176.9 175.7 176.0 175.3 29.6 30.1 30.1 30.5 226.5 226.5 226.8 227.0 256.0 256.6 256.9 257.5 52.4 52.1 51.9 51.4 175.0 174.3 173.9 172.7 28.6 29.3 29.6 30.3 226.9 226.5 226.8 227.0 255.5 255.8 256.4 257.3 7.2 6.7 6.9 6.7 July 7 ............ 14............ 21............ 28............ 1 Includes, in addition to currency and demand deposits, savings de posits, time deposits open account, and time certificates of deposits other than negotiable time certificates of deposit issued in denominations of $100,000 or more by large weekly reporting commercial banks. 2 Includes M 2, plus the average of the beginning and end of month deposits of mutual savings banks and savings and loan shares. 3 Negotiable time certificates of deposit issued in denominations of $100,000 or more by large weekly reporting commercial banks. 4 Average of the beginning and end-of-month deposits of mutual savings banks and savings and loan shares. 5 At all commercial banks. N ote .— For description B u ll e tin , pp. 887-909. of revised series and for back data, see Dec. 1970 Average of daily figures. Money stock consists of (1) demand deposits at all commercial banks other than those due to domestic commercial banks and the U.S. Govt., less cash items in process of collection and F.R. float; (2) foreign demand balances at F.R. Banks; and (3) currency outside the Treasury, F.R. Banks, and vaults of all commercial banks. Time de posits adjusted are time deposits at all commercial banks other than those due to domestic commercial banks and the U.S. Govt. A 18 BANK RESERVES; BANK CREDIT □ AUGUST 1971 AGGREGATE RESERVES AND MEMBER BANK DEPOSITS (In billions of dollars) Member bank reserves, S.A.1 Deposits subject to reserve requirements2 S.A. Period Total Non borrowed Required Total Total member bank deposits plus nondeposit items3 N.S.A. Demand Time and savings Private U.S. Govt. Demand Total Time and savings Private U.S. Govt. S.A. N.S.A. 1967—Dec.. 1968—Dec.. 1969—Dec.. 25.94 27.96 27.93 25.68 27.22 26.81 25.60 27.61 27.71 273.5 298.2 285.8 149.9 165.8 151.5 118.9 128.2 129.4 4.6 4.2 4.9 276.2 301.2 288.6 148.1 163.8 149.7 123.6 133.3 134.4 4.5 4.1 4.6 305.7 308.6 1970—July. Aug., Sept.. Oct.. Nov.. Dec.. 28.04 28.59 29.24 29.39 29.47 29.93 26.69 27.78 28.71 28.93 29.03 29.58 27.90 28.41 29.02 29.13 29.23 29.70 296.0 303.2 308.0 310.6 314.0 319.6 160.7 164.9 169.5 173.0 175.7 179.9 130.9 131.9 132.3 132.4 132.3 133.5 4.4 6.4 6.2 5.2 6.0 6.2 296.3 301.0 306.8 310.9 312.8 322.8 160.9 166.0 169.9 173.2 174.9 178.2 129.6 129.1 131.2 132.6 133.4 138.7 5.8 5.9 5.8 5.1 4.6 6.0 315.8 321.9 324.5 324.8 326.7 331.2 316.1 319.8 323.2 325.1 325.6 334.4 1971—Jan.., Feb.. Mar.. Apr.. May. June. July^, 30.23 30.52 30.75 30.82 31.25 31.26 31.27 29.80 30.18 30.40 30.64 30.96 30.80 30.47 30.03 30.26 30.53 30.61 31.00 31.05 31.09 323.9 329.1 333.2 336.6 339.7 341.2 343.7 183.2 187.5 191.7 193.3 195.5 197.5 199.2 134.1 135.4 136.7 137.9 140.0 139.9 140.8 6.7 6.2 4.8 5.4 4.2 3.9 3.7 328.2 328.4 332.2 337.3 338.4 340.2 344.1 182.8 187.1 192.3 193.6 195.8 197.6 198.9 139.7 134.3 135.4 139.0 135.9 138.2 139.5 5.6 7.0 4.5 4.7 6.7 4.4 5.7 334.1 337.7 340.2 341.7 343.8 345.7 347.9 338.3 337.0 339.2 342.4 342.5 344.7 348.2 1 Averages of daily figures. Data reflect percentages of reserve require ments made effective Apr. 17, 1969. Required reserves are based on average deposits with a 2-week lag. 2 Averages of daily figures. Deposits subject to reserve requirements in clude total time and savings deposits and net demand deposits as defined by Regulation D. Private demand deposits include all demand deposits ex cept those due to the U.S. Govt., less cash items in process of collection and demand balances due from domestic commercial banks. Effective June 9, 1966, balances accumulated for repayment of personal loans were elim inated from time deposits for reserve purposes. Jan. 1969 data are not comparable with earlier data due to the withdrawal from the System on Jan. 2, 1969, of a large member bank. 3 Total member bank deposits subject to reserve requirements, plus Euro-dollar borrowings, bank-related commercial paper, and certain other nondeposit items. This series for deposits is referred to as “the adjusted bank credit proxy.” N ote .—Due to changes in Regulations M and D, required reserves include increases of approximately $400 million since Oct. 16, 1969. Back data may be obtained from the Banking Section, Division of Research and Statistics, Board of Governors of the Federal Reserve System, Wash ington, D.C. 20551. LOANS AND INVESTMENTS (In billions of dollars) Seasonally adjusted Not seasonally adjusted Securities Date Total i , 2 Loans1, 2 Securities Total1, 2 U.S. Govt. Other 2 Loans1, 2 U.S. Govt. Other2 1965—Dec. 1966—Dec. 1967—Dec. 1968—Dec. 1969—Dec. 31................................................................ 31................................................................ 30................................................................ 31................................................................ 31 3.............................................................. 294.4 310.5 346.5 384.6 401.3 192.6 208.2 225.4 251.6 278.1 57.1 53.6 59.7 61.5 51.9 44.8 48.7 61.4 71.5 71.3 301.8 317.9 354.5 393.4 410.5 197.4 213.0 230.5 257.4 284.5 59.5 56.2 62.5 64.5 54.7 44.9 48.8 61.5 71.5 71.3 1970—June July Aug. Sept. Oct. Nov. Dec. 30................................................................ 2 9 ................................................................ 26................................................................ 30................................................................ 28................................................................ 25................................................................ 31................................................................ 406.4 412.8 418.3 423.7 424.4 428.2 435.1 277.4 281.5 284.1 287.3 287.3 288.4 290.5 54.1 55.8 57.5 57.6 56.3 56.7 58.5 75.0 75.5 76.7 78.8 80.8 83.1 86.0 410.1 412.6 415.4 423.3 424.0 427.7 445.1 282.9 283.4 283.2 288.0 285.9 286.9 297.2 51.6 53.5 55.1 55.8 57.2 58.3 61.7 75.6 75.7 77.1 79.5 81.0 82.5 86.1 1971—Jan. Feb. Mar. Apr. May June July 27............................................................... 24............................................................... 31................................................................ 28 p .............................................................. 26p .............................................................. 30p .............................................................. 8^............................................................... 438.9 444.6 448.6 448.8 453.0 456.8 460.0 292.0 295.2 295.2 294.9 297.9 4 297.4 300.2 58.7 59.9 61.4 60.2 60.2 63.1 62.0 88.2 89.6 92.0 93.7 94.9 4 96.3 97.8 438.0 440.9 446.4 448.8 450.9 460.9 460.0 289.3 290.6 293.3 294.6 297.2 4 303.4 302.3 61.5 61.4 61.6 60.1 58.9 60.5 59.5 87.1 88.9 91.5 94.1 94.8 4 97.1 98.1 1 Adjusted to exclude interbank loans. 2 Beginning June 9, 1966, about $1.1 billion of balances accumulated for payment of personal loans were deducted as a result of a change in Federal Reserve regulations. Beginning June 30, 1966, CCC certificates of interest and ExportImport Bank portfolio fund participation certificates totaling an estimated $1 billion are included in “Other securities” rather than “Loans.” 3 Beginning June 30, 1969, data revised to include all bank-premises subsidiaries and other significant majority-owned domestic subsidiaries; earlier data include commercial banks only. Also, loans and investments are now reported gross, without valuation reserves deducted, rather than net of valuation reserves as was done previously. For a description of the revision, see Aug. 1969 B u ll e tin , pp. 642-46. 4 Beginning June 30,1971, Farmers Home Administration insured notes totaling approximately $700 million are included in “Other securities” rather than in “Loans.” N ote .—For monthly data 1948-68, see Aug. 1968 B u ll e tin , pp. A-94 —A-97. For a description of the seasonally adjusted series see the follow ing B u l l e t in s : July 1962, pp. 797-802; July 1966, pp. 950-55; and Sept. 1967, pp. 1511-17. Data are for last Wed. 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. AUGUST 1971 o BANKS AND THE MONETARY SYSTEM A 19 CONSOLIDATED CONDITION STATEMENT (In millions of dollars) Assets Bank credit Date Gold stock and SDR certifi cates 1 Treas ury cur rency out stand ing U.S. Treasury securities Total Loans net 2 .3 .1 0 Total Other4 Other secu rities 3,328 2,888 1,200 51 23 10,723 14,741 69,839 81,820 82,407 188,148 199,008 487,709 531,589 549,879 175,348 184,384 444,043 484,212 485,545 12,800 14,624 43,670 47,379 64,337 87,800 89.400 91,900 93.400 95,100 99,245 558.100 564,200 573.300 573.100 578,000 599,180 489,800 494,000 504.600 505.500 510.400 535,157 68.300 70.200 68,800 67.600 67.600 64,020 100,800 103,000 106,600 109,900 592,400 595.800 605.100 607.300 611.800 623,800 621,700 527,200 529.600 539.100 543,900 549.500 559.100 558.400 65.200 66.300 22,754 22,706 11,982 10.367 10.367 4,562 4,636 6,784 6,795 6,849 160,832 43,023 171,667 60,366 468,943 282,040 514,427 311,334 532,663 335,127 107,086 96,560 117,064 121,273 115,129 81,199 72,894 66,752 68,285 57,952 22,559 20,778 49,112 52,937 57,154 1970—July Aug. Sept. Oct. Nov. Dec. 29. 26. 30. 28. 25. 31. 11,800 11,800 11.500 11.500 11.500 11,132 7.000 7.000 7.100 7.100 7.100 7,149 539.300 545,400 554.800 554.500 559.300 580,899 336.400 338.100 343,800 341.400 341.600 354,447 115,100 118,000 119.000 119.700 122,600 127,207 56.800 58.300 59.000 60.400 61,500 64,814 58.300 59,600 60,000 59.300 61,100 62,142 251 1971—Jan. Feb. Mar. Apr. May June July 27. 24. 31? 11,100 11,100 11,100 11,100 7.200 7.200 7.300 7.300 7.400 7.400 7.400 574,100 577.500 586.700 588.800 593.700 605.500 603.500 346.300 347.300 350.100 350.600 354.300 361.100 358.300 127.000 127.200 129,900 128,300 128.200 130,500 129.700 64,700 64.800 65.000 63.400 62.300 63.900 62.900 62,000 61,700 64,200 64,000 64,900 65,500 65,800 300 700 800 900 900 1,100 1,100 30p 28 p , Capital and misc. ac counts, net Federal Reserve Banks 31. 30. 30. 31. 315 10.700 10.700 10.700 Total deposits and currency Coml. and savings banks 1947—Dec. 1950—Dec. 1967—Dec. 1968—Dec. 1969—Dec. 28^ 26p Liabilities and capital Total assets, net— Total liabil ities and capital, net 3 .1 0 111,200 114,100 115,600 66,000 63,400 62.300 64,700 63.300 DETAILS OF DEPOSITS AND CURRENCY Related deposits (not seasonally adjusted) Money stock Seasonally adjusted 6 Date Total 1947-—Dec. 1950-—Dec. 1967-—Dec. 1968-—Dec. 1969--D ec. 3 1 .... 110,500 3 0 .... 114,600 3 0 .... 181,500 3 1 .... 199,600 315... 206,800 De Cur mand rency outside deposits ad banks justed 7 Time Not seasonally adjusted Total 26,100 84,400 113,597 24,600 90,000 117,670 39,600 141,900 191,232 42,600 157,000 207,347 45,400 161,400 214,689 De Cur mand rency outside deposits ad banks justed7 Total U.S. Government For Postal eign, Com Mutual Savings net 9 mercial savings Sys banks 2 banks 8 tem4 26,476 87,121 56,411 35,249 25,398 92,272 59,246 36,314 41,071 150,161 242,657 182,243 43,527 163,820 267,627 202,786 46,358 168,331 260,992 193,533 17,746 20,009 60,414 64,841 67,459 3,416 2,923 Treas ury cash hold ings At coml. At and F.R. savings Banks banks 1,682 2,518 2,179 2,455 2,683 1,336 1,293 1,344 695 596 1,452 2,989 5,508 5,385 5,273 870 668 1,123 703 1,312 1970--July 2 9 .... Aug. 2 6 .... Sept. 3 0 .... Oct. 2 8 .... Nov. 2 5 .... Dec. 3 1 .... 199,300 199,900 203,500 201,800 202,300 209,400 46,800 46,800 47,200 47,400 47,600 47,800 152,500 153,100 156,300 154,400 154,700 161,600 199,100 198,200 202,200 202,500 205,500 219,422 46,900 47,100 47,300 47,300 48,900 49,779 152,200 151,100 154,900 155,300 156,600 169,643 279,200 283,400 289,400 292,100 294,900 302,591 210,000 214,100 219,500 221,900 224,400 230,622 69,200 69,300 69,900 70,200 70,500 71,969 2,600 2,400 2,400 2,600 2,500 3,148 500 500 400 500 500 431 7,400 8,600 8,800 6,600 6,200 8,409 1,000 900 1,200 1,300 800 1,156 1971-—Jan. 2 7 .... Feb. 2 4 .... Mar. 31 p . .. Apr. 28*\ .. May 26?. .. June 30*’.. . July 2 8 ^ . . . 203,300 204,900 214,100 207,100 212,100 217,400 213,700 48,300 48,500 49,300 48,900 49,500 50,000 50,400 155,000 156,400 164,800 158,200 162,600 167,400 163,300 205,900 203,800 208,200 207,200 209,700 214,500 213,400 47,600 47,900 48,800 48,500 49,400 50,500 50,500 158,300 155,900 159,400 158,700 160,300 164,100 163,000 307,600 313,900 322,100 323,800 327,700 331,200 333,100 235,000 240,400 247,000 247,900 251,000 253,500 254,800 72,600 73,500 75,100 75,900 76,800 77,700 78,400 2,500 2,500 2,500 2,300 2,300 2,700 2,500 500 500 500 500 500 500 500 9,500 7,500 5,000 8,600 8,500 8,900 7,400 1,200 1,400 900 1,400 900 1,300 1,400 1 Includes Special Drawing Rights certificates beginning January 1970. 2 Beginning with data for June 30, 1966, about $1.1 billion in “Deposits accumulated for payment of personal loans” were excluded from “Time deposits” and deducted from “Loans” at all commercial banks. These changes resulted from a change in Federal Reserve regulations. See table (and notes), Deposits Accumulated for Payment o f Personal Loans, p. A-32. 3 See note 2 on p. A-23. 4 After June 30, 1967, Postal Savings System accounts were eliminated from this Statement. 5 Figures for this and later dates take into account the following changes (beginning June 30, 1969) for commercial banks: (1) inclusion of con solidated reports (including figures for all bank-premises subsidiaries and other significant majority-owned domestic subsidiaries) and (2) reporting of figures for total loans and for individual categories of securities on a gross basis—that is, before deduction of valuation reserves. See also note 1. 6 Series began in 1946; data are available only for last Wed. of month. 7 Other than interbank and U.S. Govt., less cash items in process of collection. 8 Includes relatively small amounts of demand deposits. Beginning with June 1961, also includes certain accounts previously classified as other lia bilities. 9 Reclassification of deposits of foreign central banks in May 1961 re duced this item by $1,900 million ($1,500 million to time deposits and $400 million to demand deposits). 10 See note 9 on p. A-23. N ote .—For back figures and descriptions of the consolidated condition statement and the seasonally adjusted series on currency outside banks and demand deposits adjusted, see “Banks and the Monetary System,” Section 1 of Supplement to Banking and Monetary Statistics, 1962, and B u lletins for Jan. 1948 and Feb. 1960. Except on call dates, figures are partly esti mated and are rounded to the nearest $100 million. For description of substantive changes in official call reports of condition beginning June 1969, see B u l l e t i n for August 1969, pp. 642-46. A 20 COMMERCIAL BANKS □ AUGUST 1971 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK (Amounts in millions of dollars) Loans and investments Class of bank and date Total Loans 1 .2 .9 All commercial banks: 1941—Dec. 3 1 ... 50,746 1945—Dec. 31 . . . 124,019 1947—Dec. 31 5. 116,284 Total assets— Securities Total Cash lia assets3 bilities Total3 and U.S. capital ac Treas Other 2 .9 ury counts4 21,714 21,808 26,083 90,606 38,057 69,221 Deposits Interbank3 De mand Other Bor row ings Demand Time 7,225 26,551 79,104 71,283 10,!?82 7,331 34,806 160,312 150,227 14,1065 240 9,006 37,502 155,377 144,103 12,792 U.S. Govt. Total Num capital ber ac of counts banks Time1 Other 44 ,349 105i ,921 1,343 94,367 15,952 30,241 35,360 23 7,173 14,278 219 8,950 14,011 65 10,059 14,181 1966—Dec. 1967—Dec. 1968—Dec. 1969—Dec. 3 1 ... 3 0 ... 31 . . . 31 6. 322,661 359,903 401,262 421,597 217,726 235,954 265,259 295,547 56,163 62,473 64,466 54,709 48,772 61,477 71,537 71,341 69,119 77,928 83,752 89,984 403,368 451,012 500,657 530,665 352,287 395,008 434,023 435,577 19,770 967 21,883 1,314 24,747 1,211 735 27,174 4,992 5,234 5,010 5,054 167,751 184,066 199,901 208,870 158,806 4,859 182,511 5,777 203,154 8,899 193,744 18,360 32,054 34,384 37,006 39,978 13,767 13,722 13,679 13,661 1970—July Aug. Sept. Oct. Nov. Dec. 2 9 ... 2 6 ... 30. .. 2 8 ... 2 5 ... 31. .. 425,530 430,080 436,790 439,590 442,970 461,194 296,330 297,900 301,530 301,460 302,160 313,334 53,510 55,050 55,750 57,180 58,280 61,742 75,690 77,130 79,510 80,950 82,530 86,118 74,930 78,820 85,760 78,310 82,400 93,643 520,800 529,640 543,900 539,190 546,950 576,242 422,740 429,680 447,320 440,030 446,170 480,940 22,440 22,890 26,480 24,780 24,680 30,608 1,350 1,630 1,710 1.740 1.740 1,975 7,170 8,270 8,470 6,250 5,840 7,938 181,540 182,520 190,810 185,030 189,080 209,335 210,240 214,370 219,850 222,230 224,830 231,084 19,850 20,160 18,170 20,200 21,680 19,375 41,510 41,720 42,040 42,080 42,270 42,958 13,671 13,675 13,678 13,684 13,687 13,686 1971—Jan. Feb. Mar. Apr. May June July Member of F.R. System: 1941—Dec. 1945—Dec. 1947—Dec. 2 7 ... 2 4 ... 31*.. 28*.. 26*.. 30*. . 28*.. 454,250 458,040 463,500 466,540 468,050 478,700 476,970 305,600 307,740 310,380 312,340 314,360 321,170 319,440 61,520 61,430 61,620 60,080 58,900 60,450 59,460 87,130 88,870 91,500 94,120 94,790 97,080 98,070 83,860 82,450 94,350 88,680 84,530 96,620 86,110 559,200 561,810 580,930 577,710 575,650 599,040 586,290 462,730 463.950 483,470 479,150 477,610 502,510 487.950 25,360 25,850 30.640 26,430 24,400 31,260 26.640 2,030 1.990 1.990 2,020 2,080 2,250 2,050 9,250 7,060 4,520 8,150 7,900 8,370 6,800 190,810 188,180 198,860 194,180 191,690 206,600 197,130 235,280 240,870 247,460 248,370 251,540 254,030 255,330 20.500 21.500 22,130 24,070 23,390 22,770 24,380 42,730 43,050 43,530 43,740 43,910 44,410 44,630 13,692 13,700 13,713 13,717 13,720 13.728 13.728 140 1,709 64 22,179 50 1,176 37,136 69,640 80,609 12,347 24,210 28,340 4 208 54 5,886 7,589 8,464 6,619 6,884 6,923 31 . . . 43,521 3 1 ... 107,183 3 1 ... 97,846 18,021 19,539 22,775 78,338 32,628 57,914 5,961 23,113 68,121 61,717 10,385 6,070 29.845 138,304 129,670 13,576 7,304 32.845 132,060 122,528 12,353 1966—Dec. 1967—Dec. 1968—Dec. 1969—Dec. 31 . . . 3 0 ... 3 1 ... 31 263,687 293,120 325,086 336,738 182,802 196,849 220,285 242,119 41,924 46,956 47,881 39,833 38,960 49,315 56,920 54,785 60,738 68,946 73,756 79,034 334,559 373,584 412,541 432,270 291,063 326,033 355,414 349,883 794 18,788 20,811 1,169 23,519 1,061 609 25,841 4,432 4,631 4,309 4,114 138,218 151,980 163,920 169,750 128,831 4,618 147,442 5,370 162,605 8,458 149,569 17,395 26,278 28,098 30,060 32,047 6,150 6,071 5,978 5,869 1970—July Aug. Sept. Oct. Nov. Dec. 2 9 ... 2 6 ... 30. .. 28. .. 25. .. 3 1 ... 337,377 341,096 346,643 348,424 350,746 365,940 240,309 241,594 244,769 244,377 244,442 253,936 38,950 40,305 40,779 41,872 42,661 45,399 58,118 59,197 61,095 62,175 63,643 66,604 65,971 69,769 75,853 68,978 72,422 81,500 420,844 428,607 440,724 435,498 441,486 465,644 336,818 342.995 358,433 350.996 355,566 384,596 21,371 21,825 25,339 23,643 23,516 29,142 1,139 1,423 1,500 1.535 1.535 1,733 6,181 7,054 7,258 5,169 4,855 6,460 146,003 146,996 153,951 148,472 151,385 168,032 162,124 165,697 170,385 172,177 174,275 179,229 18,675 19,059 17,169 19,021 20,538 18,578 33,047 33,223 33,479 33,481 33,629 34,100 5,795 5,785 5,784 5,781 5,773 5,766 1971—Jan. Feb. Mar. Apr. May June July 2 7 ... 2 4 ... 3 1 ... 2 8 ... 2 6 ... 30*.. 28*.. 359,731 362,488 366,723 368,539 369,182 377,992 376,133 247,183 248,916 250,777 252,040 253,513 259,400 257,988 45,222 44,840 45,193 43,704 42,601 43,856 42,844 67,326 68,732 70,753 72,795 73,068 74,736 75,301 73,521 72,296 83,092 78,152 73,902 85,022 75,345 451,224 452,887 469,355 465,677 462,599 483,048 471,089 369,092 369,632 386,692 382,149 379,887 401,422 388,129 24,179 24,680 29,399 25,278 23,243 29,936 25,436 1,785 1,744 1,749 1,776 1,838 2,006 1,804 7,929 5,730 3,726 6,957 6,663 6,954 5,496 152,695 150,712 159,983 155,728 153,227 165,771 157,453 182,504 186,766 191,835 192,410 194,916 196,755 197,940 19,557 20,440 21,107 22,983 22,237 21,626 23,131 33,950 34,213 34,658 34,799 34,944 35,366 35,555 5,761 5,754 5,751 5,747 5,742 5.735 5.735 Reserve city member: New York City:7 1941—Dec. 31 . . . 1945—Dec. 3 1 ... 1947—Dec. 3 1 ... 12,896 26,143 20,393 4,072 7,265 7,334 17,574 7,179 11,972 1,559 1,235 1,242 6,637 6,439 7,261 19,862 32,887 27,982 17,932 30,121 25,216 4,202 4,640 4,453 6 17 12 866 6,940 267 12,051 17,287 19,040 807 1,236 1,445 195 30 1,648 2,120 2,259 36 37 37 60,333 35,941 39,059 42,968 48,305 4,920 6,027 5,984 5,048 5,674 7,055 8,094 6,980 14,869 18,797 19,948 22,349 64,424 74,609 81,364 87,753 51,837 6,370 60,407 7,238 63,900 8,964 62,381 10,349 467 741 622 268 1,016 1,084 888 694 26,535 31,282 33,351 36,126 17,449 20,062 20,076 14,944 1,874 1,880 2,733 4,405 5,298 5,715 6,137 6,301 12 12 12 12 58,720 58,468 59,484 59,215 59,657 62,347 45,917 45,208 46,265 45,990 45,717 47,161 5,142 5,458 5,144 5,337 5,463 6,009 7,661 7,802 8,075 7,888 8,477 9,177 18,322 20,982 23,057 19,175 20,151 21,715 82,356 84,893 88,026 83,785 85,368 89,384 57,063 58,959 64,019 59,297 59,654 67,186 9,322 9,668 12,161 10,738 10,276 12,508 592 729 719 776 814 956 1,382 1,214 1,355 658 749 1,039 28,927 29,943 31,072 28,024 28,552 32,235 16,840 17,405 18,712 19,101 19,263 20,448 4,855 5,243 4,184 5,038 6,224 4,500 6,340 6,405 6,439 6,385 6,424 6,486 12 12 12 12 12 12 60,658 60,791 59,912 60,115 59,029 61,198 59,988 45,791 46,610 45,457 45,741 45,441 47,344 46,382 6,011 5,378 5,683 5,316 5,007 5,112 4,837 8,856 8,803 8,772 9,058 8,581 8,742 8,769 21,274 20,393 27,111 23,718 19,816 26,320 22,281 87,437 86,749 93,161 89,486 84,885 93,430 88,057 64,712 63,848 71,345 67,750 63,973 73,937 67,319 11,270 11,367 14,672 12,261 10,254 15,311 12,062 950 919 846 920 846 933 835 1,985 879 573 1,392 1,388 1,207 939 29,761 29,352 33,114 30,793 28,552 32,959 29,379 20,746 21,331 22,140 22,384 22,933 23,527 24,104 4,997 5,855 5,741 6,285 6,072 4,530 5,954 6,449 6,510 6,723 6,743 6,797 6,864 7,008 12 12 12 12 12 12 12 1966—Dec. 1967—Dec. 1968—Dec. 1969—Dec. 3 1 ... 3 0 ... 3 1 ... 31 6. 46,536 52,141 57.047 1970—July Aug. Sept. Oct; Nov. Dec. 2 9 ... 2 6 ... 3 0 ... 28. .. 25 . . . 3 1 ... 1971—Jan. Feb. Mar. Apr. May June July 2 7 ... 2 4 ... 3 1 ... 28. .. 2 6 ... 30*.. 2 8 ... For notes see p. A-23. AUGUST 1971 □ COMMERCIAL BANKS A 21 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK— Continued (Amounts in millions of dollars) Loans and investments Class of bank and date Total Loans 1 .2 .9 Reserve city member (cont.): City of Chicago: 7>8 1941—Dec. 31............ 1945—Dec. 31........... 1947—Dec. 31........... Total assets— Securities Total lia Cash bilities assets 3 and U.S. capital Total 3 Treas Other ac 2 -9 ury counts4 Deposits Interbank3 Other Bor row ings Demand De mand 2,760 5,931 5,088 954 1,333 1,801 1,430 4,213 2,890 376 385 397 1,566 1,489 1,739 4,363 7,459 6,866 4,057 7,046 6,402 1,035 1,312 1,217 Time U.S. Govt. Other Total Num capital ber ac of counts banks Time1 127 1,552 72 2,419 3,462 4,201 476 719 913 288 377 426 13 12 14 1966—Dec. 1967—Dec. 1968—Dec. 1969—Dec. 31........... 30........... 31........... 31 6........ 11,802 12,744 14,274 14,365 8,756 9,223 10,286 10,771 1,545 1,574 1,863 1,564 1,502 1,947 2,125 2,030 2,638 2,947 3,008 2,802 14,935 16,296 18,099 17,927 12,673 13,985 14,526 13,264 1,433 1,434 1,535 1,677 25 21 21 15 310 267 257 175 6,008 6,250 6,542 6,770 4,898 6,013 6,171 4,626 484 383 682 1,290 1,199 1,346 1,433 1,517 11 10 9 9 1970—July Aug. Sept. Oct. Nov. Dec. 2 9 ........... 26............ 30............ 28............ 25............ 31............ 14,449 14,556 15,058 14,835 15,076 15,745 10,662 10,642 11,151 10,735 10,921 11,214 1,688 1,796 1,746 1,925 1,839 2,105 2,099 2,118 2,161 2,175 2,316 2,427 2,560 2,911 2,788 3,040 2,981 3,074 18,021 18,520 18,849 18,841 19,016 19,892 12,937 12,841 13,764 13,399 13,538 15,041 1,237 1,192 1,595 1,301 1,375 1,930 54 58 69 79 79 49 457 342 380 250 250 282 5,764 5,725 6,017 5,921 5,855 6,663 5,425 5,524 5,703 5,848 5,979 6,117 1,689 2,129 1,959 2,253 2,330 1,851 1,542 1,550 1,562 1,565 1,580 1,586 9 9 9 9 9 9 1971—Jan. Feb. Mar. Apr. May June July 27............ 24............ 31............ 28............ 26............ 30p.......... 28............ 15,530 15,479 16,056 15,726 15,853 16,442 16,128 10,901 11,000 11,345 11,051 11,293 11,738 11,724 2,208 2,048 2,179 1,940 1,677 1,735 1,565 2,421 2,431 2,532 2,735 2,883 2,969 2,839 2,981 3,083 2,695 3,159 3,011 3,104 3,199 19,487 19,482 19,609 19,874 19,741 20,464 20,233 14,303 14,264 14,665 15,048 14,951 15,621 15,413 1,313 1,451 2,074 1,326 1,300 1,489 1,448 79 58 130 123 143 206 150 487 252 168 414 419 316 277 6,091 6,010 5,598 6,415 6,181 6,635 6,389 6,333 6,493 6,695 6,770 6,908 6,975 7,149 1,969 2,125 1,961 2,304 2,180 2,364 2,489 1,591 1,618 1,635 1,622 1,616 1,629 1,634 9 9 9 9 9 9 9 Other reserve city: 7*8 1941—Dec. 31............ 1945—Dec. 31............ 1947—Dec. 31............ 15,347 40,108 36,040 7,105 6,467 8,514 29,552 13,449 20,196 1,776 8,518 2,042 11,286 2,396 13,066 24,430 51,898 49,659 22,313 49,085 46,467 4,356 6,418 5,627 104 491 12,557 4,806 30 8,221 24,655 9,760 22 405 28,990 11,423 2 1 1,967 2,566 2,844 351 359 353 1,952 9,471 2,555 10,032 4,239 10,684 9,881 11,464 169 163 161 157 1966—Dec. 1967—Dec. 1968—Dec. 1969—Dec. 31............ 95,831 30............ 105,724 31............ 119,006 31 6........ 121,324 69,464 73,571 83,634 90,896 13,040 14,667 15,036 11,944 13,326 17,487 20,337 18,484 24,228 26,867 28,136 29,954 123,863 136,626 151,957 157,512 108,804 8,593 120,485 9,374 132,305 10,181 126,232 10,663 233 310 307 242 1,633 1,715 1,884 1,575 49,004 53,288 57,449 58,923 49,341 55,798 62,484 54,829 1970—July Aug. Sept. Oct. Nov. Dec. 29............ 26............ 30............ 28............ 25............ 31............ 120,894 123,418 125,582 126,646 126,943 133,718 89,581 91,106 91,955 91,973 91,301 96,158 11,665 12,341 12,859 13,299 13,789 14,700 19,648 19,971 20,768 21,374 21,853 22,860 24,422 25,008 27,368 25,157 26,774 31,263 151,834 154,765 159.587 158,316 160,182 171,733 120,708 8,374 123,746 8,544 129,246 8,992 127,238 9,032 129,249 9,213 140,518 11,317 409 552 628 599 561 592 2,349 3,049 3,082 2,138 1,977 2,547 50,046 50,085 53,139 51,709 52,625 59,328 59,530 9,777 61,516 9,485 63,405 9,019 63,760 9,380 64,873 9,711 66,734 10,391 11,885 11,934 12,040 12,032 12,053 12,221 156 156 156 156 156 156 1971—Jan. Feb. Mar. Apr. May June July 27............ 24............ 31............ 28............ 26............ 30^.......... 28............ 130,725 131,751 134,204 134,119 134,244 137,326 136,792 92,805 92,932 94,302 94,416 95,022 97,030 97,128 14,490 14,498 14,636 13,830 13,409 14,086 13,487 23,430 24,321 25,266 25,873 25,813 26,210 26,177 26,930 26,701 29,361 28,581 28,193 30,870 26,803 164,214 164,992 170,513 169,509 169,420 175,575 170,828 133,018 8,875 133,375 9,169 138,409 9,791 136,752 9,036 137,136 9,009 142,329 10,088 138,268 9,150 675 686 692 652 714 732 684 3,141 2,262 1,592 3,066 2,671 2,946 1,999 52,463 52,063 55,594 53,562 53,519 57,254 54,884 67,864 69,195 70,740 70,436 71,223 71,309 71,551 10,413 10,014 11,044 11,889 11,325 12,095 11,822 12,234 12,321 12,474 12,502 12,561 12,786 12,785 156 156 156 156 156 156 156 Country member: 7»8 1941—Dec. 31............ 1945—Dec. 31............ 1947—Dec. 31............ 12,518 35,002 36,324 2,250 6,402 2,408 10,632 3,268 10,778 19,466 46,059 47,553 17,415 43,418 44,443 792 1,207 1,056 30 225 10,109 6,258 17 5,465 24,235 12,494 17 432 28,378 14,560 4 11 23 5,890 4,377 5,596 26,999 10,199 22,857 1,982 6,219 2,525 6,476 2,934 6,519 109,518 122,511 134,759 140,715 68,641 74,995 83,397 92,147 22,419 24,689 24,998 21,278 18,458 22,826 26,364 27,291 19,004 20,334 22,664 23,928 131,338 146,052 161,122 169,078 117,749 131,156 144,682 148,007 2,392 2,766 2,839 3,152 69 96 111 84 1,474 1,564 1,281 1,671 56,672 61,161 66,578 67,930 57,144 65,569 73,873 75,170 308 552 804 1,820 10,309 11,005 11,807 12,766 5,958 5,886 5,796 5,691 1970 July 29............ 143,314 Aug. 26............ 144,654 146,519 Oct. 28............ 147,728 Nov. 25............ 149,070 Dec. 31............ 154,130 94,149 94,638 95,398 95,679 96,503 99,404 20,455 20,710 21,030 21,311 21,570 22,586 28,710 29,306 30,091 30,738 30,997 32,140 20,667 20,868 22,640 21,606 22,516 25,448 168,633 170,429 174,262 174,556 176,920 184,635 146,110 147,449 151,404 151,062 153,125 161,850 2,438 2,411 2,591 2,572 2,652 3,387 84 84 84 81 81 135 1,993 2,449 2,441 2,123 1,879 2,592 61,266 61,243 63,723 62,818 64,353 69,806 80,329 81,252 82,565 83,468 84,160 85,930 2,354 2,202 2,007 2,350 2,273 1,836 13,280 13,334 13,438 13,499 13,572 13,807 5,618 5,608 5,607 5,604 5,596 5,589 152,818 154,467 156,551 158,579 160,056 163,026 163,225 97,686 98,374 99,673 100,832 101,757 103,288 102,754 22,513 22,916 22,695 22,618 22,508 22,923 22,955 32,619 33,177 34,183 35,129 35,791 36,815 37,516 22,336 22,119 23,925 22,694 22,882 24,728 23,062 180,086 181,664 186,072 186,808 188,553 193,579 191,971 157,059 158,145 162,273 162,599 163,827 169,535 167,129 2,721 2,693 2,862 2,655 2,680 3,048 2,776 81 81 81 81 135 135 135 2,316 2,337 1,393 2,085 2,185 2,485 2,281 64,380 63,287 65,677 64,958 64,975 68,923 66,801 87,561 89,747 92,260 92,820 93,852 94,944 95,136 2,178 2,446 2,361 2,505 2,660 2,637 2,866 13,676 13,764 13,826 13,932 13,970 14,087 14,128 5,584 5,577 5,574 5,570 5,565 5,558 5,558 1966—Dec. 1967—Dec. 1968—Dec. 1969—Dec. 1971—Jan. Feb. Mar. Apr. May June July 31............ 30............ 31............ 316.......... 27............ 24............ 31............ 28............ 26............ 30^.......... 28 p .......... For notes see p. A-23. A 22 COMMERCIAL BANKS □ AUGUST 1971 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK— Continued (Amounts in millions of dollars) Loans and investments Classification by FRS membership and FDIC insurance Total Insured banks: Total: 1941—Dec. 31.. 49,290 1945—Dec. 31.. 121,809 1947—Dec. 31.. 114,274 Loans 1. 2 Deposits Total assets— Securities Total Interbank3 Other Cash lia assets3 bilities Total3 and Demand De U.S. Other capital 2 mand Time Treas ac counts4 ury U.S. Govt. Other 21,259 21,046 25,765 88,912 37,583 67,941 6,984 25,788 76,820 69,411 10, 654 7,131 34,292 157,544 147,775 13, 883 8,750 36,926 152,733 141,851 12,615 54 1,762 23,740 1,325 41,298 80,276 92,975 Time l 15,699 29,876 34,882 Bor row ings Total Num capital ber ac of counts banks 10 215 61 6,844 13,426 8,671 13,297 9,734 13,398 1963—Dec. 20.. 252,579 155,261 62,723 34,594 50,337 310,730 273,657 15,077 1964—Dec. 31.. 275,053 174,234 62,499 38,320 59,911 343,876 305,113 17,664 1965—Dec. 31.. 303,593 200,109 59,120 44,364 60,327 374,051 330,323 18,149 443 733 923 6,712 140,702 110,723 6,487 154,043 126,185 5,508 159,659 146,084 3,571 25,277 13,284 2,580 27,377 13,486 4,325 29,827 13,540 1966—Dec. 31.. 321,473 217,379 55,788 48,307 68,515 401,409 351,438 19,497 1967—Dec. 30.. 358,536 235,502 62,094 60,941 77,348 448,878 394,118 21,598 1968—Dec. 31.. 399,566 264,600 64,028 70,938 83,061 498,071 432,719 24,427 881 1,258 1,155 4,975 166,689 159,396 5,219 182,984 183,060 5,000 198,535 203,602 4,717 31,609 13,533 5,531 33,916 13,510 8,675 36,530 13,481 1969—June 306. 408,620 283,199 53,723 71,697 87,311 513,960 423,957 24,889 Dec. 31.. 419,746 294,638 54,399 70,709 89,090 527,598 434,138 26,858 800 695 5,624 192,357 200,287 14,450 38,321 13.464 5,038 207,311 194,237 18,024 39,450 13.464 1970—June 30.. 421,141 294,963 51,248 74,929 84,885 526,484 431,094 26,017 Dec. 31.. 458,919 312,006 61,438 85,475 92,708 572,682 479,174 30,233 829 1,874 8,040 191,752 204,456 18,215 41,159 13,478 7,898 208,037 231,132 19,149 42,427 13,502 National member: 1941—Dec. 31.. 1945—Dec. 31.. 1947—Dec. 31.. 6, 786 9, 229 8,375 35 1,088 14,013 795 23,262 45,473 53,541 8,322 16,224 19,278 1963—Dec. 20.. 137,447 84,845 33,384 19,218 28,635 170,233 150,823 8,863 1964—Dec. 31.. 151,406 96,688 33,405 21,312 34,064 190,289 169,615 10,521 1965—Dec. 31.. 176,605 118,537 32,347 25,720 36,880 219,744 193,860 12,064 146 211 458 3,691 3,604 3,284 76,836 84,534 92,533 1966—Dec. 31.. 187,251 129,182 30,355 27,713 41,690 235,996 206,456 12,588 1967—Dec. 30.. 208,971 139,315 34,308 35,348 46,634 263,375 231,374 13,877 1968—Dec. 31.. 236,130 159,257 35,300 41,572 50,953 296,594 257,884 15,117 27,571 69,312 65,280 11,725 12,039 13,925 51,250 21,428 38,674 3,806 14,977 4,137 20,144 5,178 22,024 43,433 90,220 88,182 39,458 84,939 82,023 4 78 45 3,640 4,644 5,409 5,117 5,017 5,005 61,288 70,746 85,522 1,704 13,548 1,109 15,048 2,627 17,434 4,615 4,773 4,815 437 652 657 3,035 96,755 93,642 3,142 106,019 107,684 3,090 116,422 122,597 3,120 18,459 3,478 19,730 5,923 21,524 4,799 4,758 4,716 1969—June 306. 242,241 170,834 29,481 41,927 52,271 305,800 251,489 14,324 Dec. 31.. 247,526 177,435 29,576 40,514 54,721 313,927 256,314 16,299 437 361 3,534 113,134 120,060 9,895 22,628 3,049 121,719 114,885 12,279 23,248 4,700 4,668 1970—June 30.. 247,862 176,376 28,191 43,295 51,942 312,480 254,261 14,947 Dec. 31.. 271,760 187,554 34,203 50,004 56,028 340,764 283,663 18,051 393 982 5,066 113,296 120,559 13,051 24,106 4,740 122,298 137,592 13,100 24,868 4,637 4,620 15 621 8,166 381 13,874 24,168 27,068 4,025 7,986 9,062 1,502 1,867 1,918 State member: 1941—Dec. 31.. 1945—Dec. 31.. 1947—Dec. 31.. 15,950 37,871 32,566 6,295 7,500 8,850 27,089 11,200 19,240 2,155 8,145 1,933 9,731 2,125 10,822 24,688 48,084 43,879 22,259 44,730 40,505 3, 739 4, 411 3,978 1963—Dec. 20.. 1964—Dec. 31.. 1965—Dec. 31.. 72,680 77,091 74,972 46,866 15,958 9,855 15,760 51,002 15,312 10,777 18,673 51,262 12,645 11,065 15,934 91,235 98,852 93,640 78,553 86,108 81,657 5,655 6,486 5,390 236 453 382 2,295 2,234 1,606 40,725 44,005 39,598 29,642 32,931 34,680 1,795 1,372 1,607 7,506 7,853 7,492 1,497 1,452 1,406 1966—Dec. 31.. 1967—Dec. 30.. 1968—Dec. 31.. 77,377 85,128 89,894 54,560 11,569 11,247 19,049 99,504 58,513 12,649 13,966 22,312 111,188 61,965 12,581 15,348 22,803 116,885 85,547 95,637 98,467 6,200 6,934 8,402 357 516 404 1,397 1,489 1,219 41,464 45,961 47,498 36,129 40,736 40,945 1,498 1,892 2,535 7,819 8,368 8,536 1,351 1,313 1,262 1969—June 30 6. Dec. 31.. 88,346 90,088 64,007 9,902 14,437 26,344 119,358 65,560 10,257 14,271 24,313 119,219 93,858 94,445 9,773 9,541 285 248 1,341 1,065 45,152 48,030 37,307 35,560 4,104 5,116 8,689 8,800 1,236 1,201 1970—June 30.. Dec. 31.. 88,404 94,760 64,439 9,133 14,832 23,598 117,209 91,967 10,175 66,963 11,196 16,600 25,472 125,460 101,512 11,091 299 750 1,891 1,720 42,620 45,734 36,983 42,218 4,457 5,478 9,078 9,232 1,166 1,147 Nonmember: 1941—Dec. 31.. 1945—Dec. 31.. 1947—Dec. 31.. 5,776 14,639 16,444 3,241 1,509 2,992 10,584 4,958 10,039 1,025 1,063 1,448 2,668 4,448 4,083 8,708 19,256 20,691 7,702 18,119 19,340 262 4 53 1,560 149 4,162 10,635 12,366 3,360 5,680 6,558 6 7 7 959 1,083 1,271 6,810 6,416 6,478 1963—Dec. 20.. 1964—Dec. 31.. 1965—Dec. 31.. 42,464 46,567 52,028 23,550 13,391 26,544 13,790 30,310 14,137 5,523 6,233 7,581 5,942 7,174 7,513 49,275 54,747 60,679 44,280 49,389 54,806 559 658 695 61 70 83 726 649 618 23,140 25,504 27,528 19,793 22,509 25,882 72 99 91 4,234 4,488 4,912 7,173 7,262 7,320 1966—Dec. 31.. 1967—Dec. 30.. 1968—Dec. 31.. 56,857 64,449 73,553 33,636 13,873 9,349 37,675 15,146 11,629 43,378 16,155 14,020 7,777 8,403 9,305 65,921 74,328 84,605 59,434 67,107 76,368 709 786 908 87 89 94 543 588 691 28,471 31,004 34,615 29,625 34,640 40,060 99 162 217 5,342 5,830 6,482 7,384 7,440 7,504 1969—June 30«. Dec. 31.. 78,032 82,133 48,358 14,341 15,333 8,696 51,643 14,565 15,925 10,056 88,802 94,453 78,610 83,380 791 1,017 78 85 749 924 34,070 37,561 42,921 43,792 451 629 7,004 7,403 7,528 7,595 1970—June 30.. Dec. 31.. 84,875 92,399 54,149 13,924 16,802 9,346 96,794 57,489 16,039 18,871 11,208 106,457 84,865 93,998 894 1,091 137 141 1,083 1,438 35,837 40,005 46,913 51,322 708 571 7,975 8,326 7,675 7,735 For notes see p. A-23. 129 244 1 2,246 130 2,945 9 3,055 AUGUST 1971 □ COMMERCIAL BANKS A 23 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK— Continued (Amounts in millions of dollars) Loans and investments Classification by FRS membership and FDIC insurance Securities Total Loans 1, 2 U.S. Treas ury Other 2 Deposits Total assets— Total Interbank3 Other Cash lia assets3 bilities and Demand capital Total3 De mand Time ac U.S. counts 4 Govt. Other Noninsured nonmember: 1941—Dec. 31........... 1945—Dec. 31.......... 1947 Dec. 315........ 1,457 2,211 2,009 455 318 474 761 1,693 1,280 241 200 255 763 514 576 2,283 2,768 2,643 1,872 2,452 2,251 3: 19 181 177 1963—Dec. 2 0 . . . . . . 1964—Dec. 31.......... 1965—Dec. 31.......... 1,571 2,312 2,455 745 1,355 1,549 463 483 418 362 474 489 374 578 572 2,029 3,033 3,200 1,463 2,057 2,113 190 273 277 1967—Dec. 30.......... 1968—Dec. 31.......... 2,638 2,901 1,735 1,875 370 429 533 597 579 691 3,404 3,789 2,172 2,519 1969—June 30 6....... Dec. 31.......... 2,809 2,982 1,800 2,041 321 310 688 632 898 895 3,942 4,198 1970—June 30.......... Dec. 31.......... 3,043 3,079 2,073 2,132 321 304 650 642 746 934 4,140 4,365 Total nonmember: 1941—Dec. 31.......... 1945—Dec. 31.......... 1947—Dec. 31.......... 7,233 16,849 18,454 3,696 2,270 3,310 12,277 5,432 11,318 1,266 1,262 1,703 3,431 10,992 9,573 4,962 22,024 20,571 4,659 23,334 21,591 457 425 439 1963—Dec. 20.......... 44,035 24,295 13,854 1964—Dec. 31......... 48,879 27,899 14,273 1965-D ec. 31.......... 54,483 31,858 14,555 5,885 6,707 8,070 6,316 51,304 45,743 7,752 57,780 51,447 8,085 63,879 56,919 1967—Dec. 30.......... 1968—Dec. 31.......... 67,087 39,409 15,516 12,162 76,454 45,253 16,585 14,617 1969—June 30 6....... Dec. 31.......... Bor row ings Time l Total capital ac counts Num ber of banks 1,; 91 1,905 18 1,392 253 365 478 13 4 4 329 279 325 852 714 783 83 86 85 17 23 17 832 1,141 1,121 341 534 612 93 99 147 389 406 434 285 274 263 285 319 58 56 15 10 1,081 1,366 733 767 246 224 457 464 211 197 2,556 2,570 298 316 81 41 15 16 1,430 1,559 731 638 290 336 502 528 209 197 2,280 2,570 321 375 69 101 36 40 1,247 1,298 606 756 331 226 549 532 193 184 190 5,504 14,101 167 13,758 3,613 6,045 7,036 18 11 12 1,288 1,362 1,596 7,662 7,130 7,261 749 931 972 144 156 168 743 23,972 20,134 672 26,645 23,043 635 28,649 26,495 165 198 238 4,623 4,894 5,345 7,458 7,536 7,583 8,983 77,732 69,279 9,997 88,394 78,887 1,071 1,227 147 150 603 32,085 35,372 701 35,981 40,827 408 441 6,286 6,945 7,651 7,701 80,841 50,159 14,662 16,021 9,594 92,743 81,166 85,115 53,683 14,875 16,556 10,950 98,651 85,949 1,090 1,333 160 126 765 35,500 43,652 940 39,120 44,430 741 965 7,506 7,931 7,737 7,792 1970—June 30.......... 87,919 56,222 14,245 17,452 10,092 100,934 87,145 Dec. 31.......... 95,478 59,621 16,342 19,514 12,143 110,822 96,568 1,215 1,466 207 243 1,119 37,084 47,520 1,038 1,478 41,303 52,078 796 8,523 8,858 7,868 7,919 j 1 See table (and notes) at the bottom of p. A-32. 2 Beginning June 30, 1966, loans to farmers directly guaranteed by CCC were reclassified as securities, and Export-Import Bank portfolio fund participations were reclassified from loans to securities. This reduced Total loans and increased “Other securities” by about $1 billion. Total loans include Federal funds sold, and beginning with June 1967 securities purchased under resale agreements, figures for which are included in “ Federal funds sold, etc.,” on p. A-24. 3 Reciprocal balances excluded beginning with 1942. 4 Includes items not shown separately. See also note 1. 5 Beginning with Dec. 31, 1947, the series was revised; for description, see note 4, p. 587, May 1964 Bulletin. 6 Figure takes into account the following changes beginning June 30, 1969: (1) inclusion of consolidated reports (including figures for all bankpremises subsidiaries and other significant majority-owned domestic subsidiaries) and (2) reporting of figures for total loans and for individual categories of securities on a gross basis—that is, before deduction of valuation reserves—rather than net as previously reported. v Regarding reclassification as a reserve city, see Aug. 1962 B u l l e t in , p. 993. For various changes between reserve city and country status in 1960-63, see note 6, p. 587, May 1964 B u l l e t in . 8 Beginning Jan. 4, 1968, a country bank with deposits of $321 million was reclassified as a reserve city bank. Beginning Feb. 29, 1968, a reserve city bank in Chicago with total deposits of $190 million was reclassified as a country bank. 185 9 Beginning June 30, 1971, Farmers Home Administration notes are classified as “Other securities” rather than “Loans.” As a result of this change, approximately $700 million was transferred to “Other securities” for the period ending June 30, 1971, for all commercial banks. N ote .—Data are for all commercial banks in the United States (includ ing Alaska and Hawaii, beginning with 1959). Commercial banks represent all commercial banks, both member and nonmember; stock savings banks; and nondeposit trust companies. For the period June 1941-June 1962 member banks include mutual savings banks as follows: three before Jan. 1960; two through Dec. 1960, and one through June 1962. Those banks are not included in insured commercial banks. Beginning June 30, 1969, commercial banks and member banks exclude a small national bank in the Virgin Islands; also, member banks exclude, and noninsured commercial banks include, through June 30, 1970, a small member bank engaged exclusively in trust business. Comparability of figures for classes of banks is affected somewhat by changes in F.R. membership, deposit insurance status, and the reserve classifications of cities and individual banks, and by mergers, etc. Data for national banks for Dec. 31, 1965, have been adjusted to make them comparable with State bank data. Figures are partly estimated except on call dates. For revisions in series before June 30, 1947, see July 1947 B u ll e tin , pp. 870-71. A 24 COMMERCIAL BANKS □ AUGUST 1971 LOANS AND INVESTMENTS BY CLASS OF BANK (In millions of dollars) Other loans 1 Class of bank and call date Total Fed loans i eral funds and invest sold, ments etc.2 Total:2 1947—Dec. 31.. 116,284 Total 3. 4 Investments For To U.S. Treasury purchasing financial securities 6 or carrying Com Other, institutions mer Agri- securities to Real cial culin- Other 5 and tur- To dial 5 bro in vidBills dus kers To Banks Others uals3 and Notes Bonds Total certifi trial and others deal cates ers 38,057 18,167 1,660 830 1,220 115 9,393 5,723 947 69,221 9,982 6,034 53,205 5,276 3,729 1969—Dec. 31 io 422,728 9,928 286,750 108443 10,329 5,739 4,027 2,488 15,062 70,020 63,256 7,388 54,709 1970—June 30.. 424,184 11,193 285,843 108,361 11,233 3,972 3,565 2,522 14,393 70,550 64,180 7,068 51,569 Dec. 31.. 461,998 16,241 297,897 112,486 11,155 6,332 3,536 2,660 15,855 72,492 65,807 7,574 61,742 All insured: 1941—Dec. 31.. 49,290 1945—Dec. 31.. 121,809 1947—Dec. 31.. 114,274 21,259 9,214 1,450 614 662 25,765 9,461 1.314 3,164 3,606 37,583 18,012 1,610 823 1,190 40 49 114 59,183 12,158 62,975 12,604 69,637 16,481 21,046 4,773 4,505 988 3,159 16,899 3,651 3,333 4,677 2,361 1,132 ,912 21,526 16,045 51,342 3,873 3,258 9,266 5,654 914 67,941 9,676 5,918 52,347 5,129 3,621 1969—Dec. 31 io 419,746 9,693 284,945 107,685 10.314 5,644 3,991 2,425 14,890 69,669 63,008 7,319 54,399 1970—June 30.. 421,141 10,867 284,096 107,567 11,215 3,886 3,541 2,457 14,248 70,252 63,921 7,009 51,248 Dec. 31.. 458,919 15,942 296,064 111,540 11,141 6,207 3,516 2,581 15,713 72,302 65,556 7,507 61,438 Member—Total: 1941—Dec. 31.. 43,521 1945—Dec. 31.. 107,183 1947—Dec. 31.. 97,846 18,021 8,671 972 594 598 22,775 8,949 855 3,133 3,378 32,628 16,962 1,046 811 1,065 39 47 113 58,840 11,869 62,619 12,311 69,301 16,174 3,494 19,539 3,653 971 3,007 15,561 3,090 2,871 3,455 1,900 1,057 78,338 19,260 14,271 44,807 3,254 2,815 7,130 4,662 839 57,914 7,803 4,815 45,295 4,199 3,105 1969—Dec. 31 io 337,613 7,356 235,639 96,095 6,187 5,408 3,286 2,258 14,035 53,207 48,388 6,776 39,833 1970—June 30.. 336,266 8,267 232,548 95,190 6,626 3,749 2,920 2,228 13,452 53,215 48,729 6,439 37,324 Dec. 31.. 366,520 12,677 241,840 97,954 6,538 5,963 3,028 2,345 14,688 54,600 49,829 6,895 45,399 New York City: 1941—Dec. 31.. 12,896 1945—Dec. 31.. 26,143 1947—Dec. 31.. 20,393 4,072 2,807 7,334 3,044 7,179 5,361 1969—Dec. 31 io 60,333 1970—June 30.. 57,0 Dec. 31.. 62,347 802 47,503 28.189 553 44,328 26,692 774 46,386 27.189 3,695 2,444 4,174 2,760 5,931 5,088 954 732 1,333 760 1,801 1,418 48 211 73 52 233 87 1969—Dec. 31 io 14,365 1970—June 30.. 14,648 Dec. 31.. 15,745 215 10,556 6,444 383 10,603 6,635 475 10,739 6,502 337 379 356 262 141 191 City o f Chicago: 1941—Dec. 31.. 1945—Dec. 31.. 1947—Dec. 31.. Other reserve city: 7,105 3,456 8,514 3,661 13,449 7,088 412 169 2,453 1,172 545 267 114 194 427 1,503 170 484 1969—Dec. 31 io 121,628 3,021 88,180 37,701 1,386 1970—June 30.. 121,435 3,473 86,901 37,502 1,478 Dec. 31.. 133,861 6,007 90,293 38,627 1,428 878 1,300 588 1,151 909 1,322 Country: 659 648 818 20 42 23 183 471 227 1969—Dec. 31 io 141,286 3,318 89,401 23,762 4,739 1970—June 30.. 143,095 3,858 90,716 24,361 5,088 Dec. 31.. 154,568 5,420 94,421 25,637 5,052 498 337 524 947 887 828 1941—Dec. 31.. 12,518 1945—Dec. 31.. 35,002 1947—Dec. 31.. 36,324 Nonmember: 1947—Dec. 31.. 18,454 5,890 1,676 5,596 1,484 10,199 3,096 5,432 1,205 32 26 93 123 80 111 287 564 22 36 46 186 1,219 152 1,154 138 1,284 4 17 15 9'5 51 149 842 862 823 942 864 1,015 7,265 311 1,623 5,331 272 17,574 3,910 3,325 10,339 238 11,972 1,642 558 9,772 354 1,564 331 1,540 346 2,105 876 6,006 19,706 17,569 2,757 11,944 689 5,981 19,536 17,156 2,820 11,372 798 7,015 19,848 17,322 3,024 14,700 2 4 5 830 629 604 6,192 788 6,847 948 7,757 1,420 153 1,022 749 1,864 248 2,274 182 181 213 193 204 185 1,837 1,861 2,055 192 261 372 16,625 1,859 17,733 1,955 19,771 3,089 1,823 110 1,528 4,377 481 3,787 1,222 1,028 1,881 707 359 26.999 5,732 4,544 16,722 1,342 1,067 3,827 1,979 224 22,857 3,063 2,108 17,687 2,006 1,262 148 2,263 28,824 26,362 1,858 21,278 159 2,139 29,127 26,858 1,759 19.999 239 2,648 30,005 27,585 1,903 22,586 614 20 156 2,266 1,061 329 223 369 741 645 507 231 1,028 16,813 14,868 294 941 17,336 15,451 316 1,168 17,891 15,978 1 Beginning with June 30, 1948, figures for various loan items are shown gross (i.e., before deduction of valuation reserves); they do not add to the total and are not entirely comparable with prior figures. Total loans continue to be shown net. See also note 10. 2 Includes securities purchased under resale agreements. Prior to June 30, 1967, they were included in loans—for the most part in loans to “Banks.” Prior to Dec. 1965, Federal funds sold were included with “Total” loans and loans to “Banks.” 3 See table (and notes), Deposits Accumulated for Payment o f Personal Loans , p. A-32. 1,430 256 40 4,213 1,600 26 2,890 367 729 606 638 1,527 6,467 295 751 5,421 1,5108 956 820 855 387 29,552 8,016 5,653 15,883 1,126 916 1,459 3,147 1,969 351 20,196 2,731 1,901 15,563 1,342 1,053 1969—Dec. 31 io 85,115 2,572 51,111 12,348 4,141 1970—June 30.. 87,919 2,926 53,296 13,171 4,606 Dec. 31.. 95,478 3,564 56,058 14,532 4,617 47,227 7,558 50,108 8,019 55,662 10,942 776 1,047 4,547 3,835 3,595 1,807 5,048 741 1,228 4,178 3,728 3,773 1,528 4,413 686 1,169 3,741 3,883 3,907 1,622 6,009 300 205 225 1941—Dec. 31.. 15,347 1945—Dec. 31.. 40,108 1947—Dec. 31.. 36,040 State and local Other secu govt. rities 5 secu rities 22,572 4,718 23,667 4,855 26,079 6,062 109 11,318 2,179 1,219 7,920 1,073 612 14,875 629 14,245 679 16,342 625 11,956 4,600 12,876 4,585 13,975 5,538 4 Breakdowns of loan, investment, and deposit classifications are not available before 1947; summary figures for 1941 and 1945 appear in the table on pp. A-20—A-23. 5 Beginning with June 30, 1966, loans to farmers directly guaranteed by CCC were reclassified as “Other securities,” and Export-Import Bank portfolio fund participations were reclassified from loans to “Other securities.” This increased “Other securities” by about $1 billion. 6 Beginning with Dec. 31, 1965, components shown at par rather than at book value; they do not add to the total (shown at book value) and are not entirely comparable with prior figures. See also note 10. For other notes see opposite page. AUGUST 1971 □ COMMERCIAL BANKS A 25 RESERVES AND LIABILITIES BY CLASS OF BANK (In millions of dollars) Demand deposits Class of bank and call date Total: 3 1947—Dec. 3 1 .... 1969—Dec. 3 1 *0 .. 1970—June 3 0 .... Dec. 31___ Re serves with F.R. Banks De Bal Cur ances mand rency with de do posits and ad coin mestic banks7 justed 8 Interbank For Do mestic7 eign9 U.S. Govt. 17,796 2,216 10,216 87,123 11,362 1,430 1,343 6,799 Certi fied and offi cers’ checks, etc. 2,581 IPC 84,987 U.S. Govt. State Inter and and bank Postal local Sav govt. ings 240 21,449 7,320 20,314 172,079 24,553 2,620 5,054 17,558 11,899 179,413 735 898 21,526 7,090 18,208 158,241 23,759 2,579 8,076 17,062 10,254 165,683 23,319 7,046 23,136 173,912 27,442 3,166 7,938 17,763 8,540 183,032 1,975 All insured: 673 1,762 1941—Dec. 31.. .. 12,396 1,358 8,570 37,845 9,823 1945—Dec. 31.. .. 15,810 1,829 11,075 74,722 12,566 1,248 23,740 1947—Dec. 31. . . . 17,796 2,145 9,736 85,751 11,236 1,379 1,325 1969—Dec. 31 io .. 1970—June 30---Dec. 3 1 .... State and local govt. Time deposits 3,677 5,098 6,692 1,077 2,585 2,559 36,544 72,593 83,723 158 70 54 695 21,449 7,292 19,528 170,280 24,386 2,471 5,038 17,434 11,476 178,401 829 21,526 7,061 17,577 156,743 23,624 2,393 8,040 16,955 10,073 164,725 23,319 7,028 22,332 172,351 27,235 2,998 7,898 17,636 8,352 182,048 1,874 Member—Total: 1941—Dec. 3 1 .... 12,396 1,087 1945—Dec. 31.. .. 15,811 1,438 1947—Dec. 3 1 ... . 17,797 1,672 6,246 33,754 9,714 671 1,709 7,117 64,184 12,333 1,243 22,179 6,270 73,528 10,978 1,375 1,176 3,066 4,240 5,504 1,009 2,450 2,401 33,061 62,950 72,704 140 64 50 1969—Dec. 31 io. . 21,449 5,676 11,931 133,435 23,441 2,399 4,114 13,274 10,483 145,992 609 691 1970—June 30. . .. 21,526 5,476 10,617 121,562 22,809 2,313 6,957 12,930 9,179 133,807 Dec. 3 1 .... 23,319 5,445 13,744 133,169 26,260 2,882 6,460 13,250 7,309 147,473 1,733 New York City: 1941—Dec. 31___ 607 3,595 866 3,535 1,105 6,940 267 1,217 3,236 319 237 290 450 1,338 1,105 11,282 15,712 17,646 6 17 12 694 455 21,316 8,708 1,641 606 17,479 9,474 1,673 1,236 1,308 19,770 10,283 2,225 1,039 1,168 1,136 1,171 6,605 5,628 3,286 28,354 25,825 27,779 268 321 956 1,027 1,292 1,196 127 8 20 1,552 72 21 233 237 285 34 66 63 2,152 3,160 3,853 5,221 4,683 5,120 1,581 1,607 1,853 96 75 77 175 347 282 268 326 240 229 178 210 6,273 5,597 6,213 2,590 11,117 2,174 22,372 2,125 25,714 4,302 6,307 5,497 54 491 110 8,221 131 405 1,144 1,763 2,282 286 611 705 9,044 1,787 8,784 1,728 9,710 1,748 3,456 44,169 10,072 2,810 40,393 9,021 3,731 44,093 10,805 590 1,575 509 3,115 512 2,547 3,934 3,798 3,793 1945—Dec. 3 1 .... 1947—Dec. 3 1 .... 2,210 4,527 4,993 526 796 929 3,216 9,661 4,665 23,595 3,900 27,424 790 1,199 1,049 225 2 8 5,465 432 7 1969—Dec. 31 i o . . 1970—June 3 0 .... Dec. 3 1 .... 7,179 3,302 7,236 3,222 7,778 3,135 7,870 62,729 7,066 59,008 8,544 64,185 3,080 2,707 3,319 72 1,671 56 2,259 68 2,592 544 3,947 13,595 385 1,644 1,614 1,602 8,383 38,644 7,592 36,678 9,392 40,743 1,112 949 1,182 1945—Dec. 3 1 .... 1947—Dec. 3 1 .... 5,105 4,015 4,639 93 111 151 1969—Dec. 3 U 0 .. 1970—June 3 0 .... Dec. 3 1 .... 4,358 4,621 4,683 463 429 436 1947—Dec. 3 1 .... 1,021 942 1,070 43 36 30 298 200 175 2,215 3,153 3,737 1969—Dec. 31 io .. 1970—June 3 0 .... Dec. 31___ 869 885 1,148 123 96 126 150 135 160 1941—Dec. 3 1 .... 1945—Dec. 3 1 .... 1947—Dec. 3 1 .... 4,060 6,326 7,095 425 494 562 1969—Dec. 311».. 1970—June 30 . . . . Dec. 31---- City o f Chicago: 1941—Dec. 31___ 1945—Dec. 31___ Other reserve city: Countrv: 1941—Dec. 31 . . . . Nonmember:3 1947—Dec. 31 1969—Dec. 31 io 1970—June 30 Dec. 31 141 10 761 78 15,065 70 16,653 55 866 34,383 59 103 111 492 15,146 496 29,277 826 33,946 50 99 105 418 11,878 399 23,712 693 27,542 10 12 29 20 14 216 390 568 11,127 22,281 26,003 104 30 22 20 38 45 1,928 1,723 2,035 53,062 47,797 53,499 242 273 592 1,370 2,004 2,647 239 435 528 8,500 21,797 25,203 30 17 17 7,905 7,670 8,045 1,721 1,650 1,779 58,304 54,587 59,982 84 81 135 180 12,284 190 1,416 1,075 1,230 33,420 31,877 35,560 126 207 243 778 1,648 1,206 "1*95 2,120 30 2,259 1,418 207 14,692 4,405 6,301 45 572 14,708 4,057 6,374 40 1,464 18,913 4,500 6,486 71 1 1 1,295 4 5,886 208 7,589 54 8,464 186 9,951 140,308 17,395 32,047 168 13,142 144,233 17,507 33,184 406 18,406 160,998 18,578 34,100 15 16 49 4,284 4,132 4,513 10 6,844 215 8,671 61 9,734 211 13,166 180,860 18,024 39,450 202 17,088 187,166 18,215 41,159 462 23,150 207,519 19,149 42,427 9 167 65 10,059 211 13,221 181,443 18,360 39,978 202 17,148 187,713 18,546 41,708 463 23,225 208,201 19,375 42,958 2 222 940 266 1,119 284 1,478 7 Beginning with 1942, excludes reciprocal bank balances. 8 Through 1960 demand deposits other than interbank and U.S. Govt., less cash items in process of collection; beginning with 1961, demand deposits other than domestic commercial interbank and U.S. Govt., less cash items in process of collection. 9 For reclassification of certain deposits in 1961, see note 6, p. 589, May 1964 B u l l e t in . 10 Beginning June 30, 1969, reflects (I) inclusion of consolidated reports (including figures for all bank-premises subsidiaries and other significant majority-owned domestic subsidiaries) and (2) reporting of figures for total loans and for individual categories of securities on a gross basis—that is, before deduction of valuation reserves. See also notes 1 and 6. 111 Bor Capi tal row ac IPC 3 ings counts 476 719 902 288 377 426 4,409 1,290 1,517 4,729 1,507 1,566 5,549 1,851 1,586 243 4,542 160 9,563 332 11,045 1,967 2 2,566 1 2,844 86 4,609 50,439 9,881 11,464 67 6,005 51,588 9,779 11,868 222 8,489 58,165 10,391 12,221 31 52 45 146 6,082 219 12,224 337 14,177 4 1,982 11 2,525 23 2,934 54 4,920 70,768 1,820 12,766 60 6,176 73,207 2,164 13,377 112 7,885 78,370 1,836 13,807 6 172 6,858 12 1,596 25 3,269 41,135 965 7,931 34 4,005 43,480 1,038 8,523 57 4,819 47,200 796 8,858 N ote .—Data are for all commercial banks in the United States; member banks in U.S. possessions were included through 1968 and then excluded. For the period June 1941—June 1962 member banks include mutual savings banks as follows: three before Jan. 1960, two through Dec. 1960, and one through June 1962. Those banks are not included in all insured or total banks. A small noninsured member bank engaged exclusively in trust business is treated as a noninsured bank and not as a member bank for the period June 30, 1969—June 30, 1970. Comparability of figures for classes of banks is affected somewhat by changes in F.R. membership, deposit insurance status, and the reserve classifications of cities and individual banks, and by mergers, etc. For other notes see opposite page. A 26 WEEKLY REPORTING BANKS □ AUGUST 1971 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS (In millions of dollars) Loans Federal funds sold, etc.1 Wednesday Total loans and invest ments Other To brokers and dealers involving— Total To com mer cial banks U.S. Treas ury se curi ties For pur chasing or carryingI securities Other To others Total curities Com mer cial and indus trial Agri cul tural To brokers and dealers U.S. Treas ury secs. Other secs. To nonbank finan. institutions To others U.S. Treas ury secs. Other secs. Pers. and sales finan. Other COS., etc. Large banks—• Total 1970 240,013 238,539 239,557 238,622 6,727 5,866 7,745 5,885 6,161 5,519 7,006 5,071 208 49 437 552 166 128 154 140 192 170 148 122 172,069 172,094 171,993 171,469 80,013 80,096 79,912 79,319 2,072 2,080 2,074 2,054 563 274 498 786 2,981 2,857 2,871 2,739 102 105 104 104 2,312 2,323 2,280 2,305 7,148 7,494 7,560 7,259 5,811 5,759 5,770 5,794 2............... 9 ............... 1 6 23............... 3 0 263,611 262,322 266,381 263,911 266,847 9,071 8,923 9,126 8,394 7,754 8,093 8,067 8,311 7,648 7,030 596 542 424 473 513 269 141 235 131 29 113 173 156 142 182 179,657 178,297 181,637 180,739 182,755 81,909 81,516 82,802 82,599 82,521 2,165 2,176 2,174 2,180 2,200 777 634 800 438 890 3,767 3,644 3,932 3,732 4,180 121 111 113 137 132 2,347 2,350 2,356 2,364 2,388 7,254 6,775 7,415 7,115 7,600 6,672 6,597 6,799 6,866 7,184 7*............. 14*............. 21*............. 28*............. 268,748 265.290 263.290 264,178 9,077 7,539 7,046 8,433 8,061 6,971 6,547 7,709 821 443 346 569 60 19 14 40 135 106 139 115 182,830 181,866 181,012 180,593 82,776 82,505 82,182 81,830 2,188 2,172 2,167 2,161 992 610 546 667 3,722 3,786 3,554 3,489 133 132 148 152 2,398 2,420 2,422 2,421 7,486 7,092 7,026 6,827 7,163 7,071 6,902 6,886 54,685 54,484 55,268 55,076 948 1,017 2,317 1,616 917 992 2,291 1,596 42,106 42,080 41,959 41,848 25,843 25,902 25,836 25,642 15 15 15 15 419 192 373 503 1,832 1,772 1,832 1,733 17 17 17 15 700 693 690 690 2,286 2,506 2,350 2,274 1,555 1,517 1,515 1,517 July 8............... 1 5 22............... 2 9 June July 1971 New York City 1970 July 8............... 1 5 22............... 2 9 10 1971 June 2............. 9 ............... 1 6 23.............. 3 0 57,106 55,924 58,374 56,698 57,597 1,574 1,142 1,749 1,578 827 1,529 1,044 1,692 1,506 742 42,920 42,112 43,535 42,643 43,886 25,571 25,483 25,977 25,787 25,902 19 19 19 20 19 643 491 668 327 803 2,480 2,430 2,627 2,498 2,950 19 19 20 30 20 572 579 577 578 585 2,205 1,995 2,226 2,098 2,253 1,602 1,569 1,609 1,621 1,673 July 7*............ 14*............ 21c............ 28*............ 58,475 56,932 56,508 56,376 1,301 642 1,286 1,331 1,241 588 1,254 1,253 43,741 43,219 42,561 42,502 25,935 25,916 25,733 25,598 18 18 17 18 891 477 457 571 2,546 2,677 2,433 2,350 20 19 21 21 581 589 587 587 2,196 2,034 2,013 1,987 1,664 1,577 1,562 1,556 185,328 184,055 184,289 183,546 5,779 4,849 5,428 4,269 5,244 4,527 4,715 3,475 208 49 437 552 166 128 144 140 161 145 132 102 129,963 130,014 130,034 129,621 54,170 54,194 54,076 53,677 2,057 2,065 2,059 2,039 144 82 125 283 1,149 1,085 1,039 1,006 85 88 87 89 1,612 1,630 1,590 1,615 4,862 4,988 5,210 4,985 4,256 4,242 4,255 4,277 Outside New York City 1970 July 8.............. 1 5 22.............. 2 9 1971 June 2 ............. 9 ............. 1 6 23............. 3 0 206,505 206,398 208,007 207,213 209,250 7,497 7,781 7,377 6,816 6,927 6,564 7,023 6,619 6,142 6,288 569 517 399 408 495 269 141 235 131 29 95 100 124 135 115 136,737 136,185 138,102 138,096 138,869 56,338 56,033 56,825 56,812 56,619 2,146 2,157 2,155 2,160 2,181 134 143 132 111 87 1,287 1,214 1,305 1,234 1,230 102 92 93 107 112 1,775 1,771 1,779 1,786 1,803 5,049 4,780 5,189 5,017 5,347 5,070 5,028 5,190 5,245 5,511 July 7*............ 14*............ 21*............ 28*............ 210,273 208,358 206,782 207,802 7,776 6,897 5,760 7,102 6,820 6,383 5,293 6,456 815 433 331 514 60 19 14 40 81 62 122 92 139,089 138,647 138,451 138,091 56,841 56,589 56,449 56,232 2,170 2,154 2,150 2,143 101 133 89 96 1,176 1,109 1,121 1,139 113 113 127 131 1,817 1,831 1,835 1,834 5,290 5,058 5,013 4,840 5,499 5,494 5,340 5,330 For notes see p. A-30. AUGUST 1971 □ WEEKLY REPORTING BANKS A 27 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continued (In millions of dollars) Loans (cont.) Investments Other (cont.) U.S. Treasury securities Notes and bonds maturing—■ To commercial banks Wednesday Real estate 12 Do mes tic For eign Con sumer instal ment For eign govts. 2 All other Bills Certif icates Within 1 yr. 1 to 5 yrs. After 5 yrs. Large banks— Total 1970 33,509 33,557 33,612 33,620 412 413 397 425 1,499 1,563 1,446 1,445 20,729 20,740 20,739 20,919 959 972 951 986 13,959 13,861 13,779 13,714 23,340 22,567 22,016 23,378 3,519 2,829 2,312 3,734 3,570 3,620 3,663 3,694 14,086 14,015 13,953 13,913 2,165 2,103 2,088 2,037 .........................July 8 ................................... 15 ................................... 22 ................................... 29 35,087 35,187 35,364 35,508 35,628 633 580 553 611 649 1,727 1,742 1,949 1,863 1,751 22,146 22,180 22,289 22,376 22,577 832 834 819 812 734 14,220 13,971 14,272 14,138 14,321 25,453 25,566 25,586 25,052 26,623 3,801 3,986 4,056 3,574 4,189 3.543 3.543 3,660 3,631 3,691 14,553 14,496 14,330 14,371 15,347 3,556 3,541 3,540 3,476 3,396 ......................... June 2 ..................................... 9 ................................... 16 ................................... 23 ................................... 30 35,637 35,927 36,073 36,149 598 603 607 564 1,931 1,841 1,814 1,790 22,596 22,650 22,635 22,694 797 802 799 815 14,413 14,255 14,137 14,148 27,111 26,614 25,937 25,397 4,852 4,571 4,014 3,547 3,574 3,560 3,582 3,597 15,326 15,172 15,056 15,009 3,359 3,311 3,285 3,244 ......................... July 7* ................................... 14* ................................... 21 p ................................... 28 p 1971 New York City 1970 590 590 618 2,736 2,659 2,632 2,617 4,728 4,509 4,255 4,881 1,823 1,828 1,833 1,840 1,864 527 522 532 520 494 2,664 2,449 2,573 2,513 2,651 1,868 1.875 1.875 1.876 529 539 544 558 2,724 2,637 2,467 2,563 3,336 3,367 3,386 3,390 206 228 194 202 835 890 798 814 1,737 1,732 1,731 1,818 3,713 3,720 3,750 3,750 3,680 237 169 174 198 170 845 839 950 863 822 3,683 3,795 3,795 3,801 179 193 204 183 907 873 853 833 1,150 969 772 1,369 413 450 436 476 2,888 2,818 2,781 2,770 277 272 266 266 .........................July 8 ................................... 15 ................................... 22 ................................... 29 4,525 4,754 4,746 4,382 4,879 862 1,113 1,150 790 963 429 430 430 424 442 2,739 2,721 2,689 2,726 3,085 495 490 477 442 389 .........................June 2 ................................... 9 ................................... 16 ................................... 23 ................................... 30 5,323 5,206 4,814 4,612 1,497 1,483 1,124 877 437 433 471 541 2,993 2,920 2,867 2,848 396 370 352 346 .........................July 7* ................................... 14* ................................... 21v ................................... 28^ 1971 Outside New York City 1970 30,173 30,190 30,226 30,230 206 185 203 223 664 673 648 631 18,992 19.008 19.008 19,101 370 382 361 368 31,374 31,467 31,614 31,758 31,948 396 411 379 413 479 882 903 999 1,000 929 20,323 20,352 20,456 20,536 20,713 31,954 32,132 32,278 32,348 419 410 403 381 1,024 968 961 957 20,728 20,775 20,760 20,818 11,223 11,202 11,147 11,097 18,612 18,058 17,761 18,497 2,369 1,860 1,540 2,365 3,157 3,170 3,227 3,218 11,198 11,197 11,172 11,143 1,888 1,831 1,822 1,771 .........................July 8 ................................... 15 ................................... 22 ................................... 29 305 312 287 292 240 11,556 11,522 11,699 11,625 11.670 20,928 20,812 20,840 20,670 21,744 2,939 2,873 2,906 2,784 3,226 3,114 3,113 3,230 3,207 3,249 11,814 11,775 IJ.,641 11,645 12,262 3,061 3,051 3,063 3,034 3,007 .........................June 2 ..................................... 9 ................................... 16 ................................... 23 ................................... 30 268 263 255 257 11,689 11,618 11.670 11,585 21,788 21,408 21,123 20,785 3,355 3,088 2,890 2,670 3,137 3,127 3,111 3,056 12,333 12,252 12,189 12,161 2,963 2,941 2,933 2,898 ......................... July I p ................................... 14p ................................... 21'* ................................... 28* 1971 For notes see p. A-30. iEPORTING BANKS □ AUGUST 1971 S AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continue (In millions of dollars) Investments (cont.) Other securities Obligations of State and political subdivisions Tax war rants 3 All other Other bonds, corp. stock, and securities Certif. of partici pation4 Cash items in process of collec tion Re serves with F.R. Banks Cur rency and coin liab itie All other5 4,760 4,857 4,768 4,770 28,957 29,016 28,913 28,946 1,000 982 981 1,018 3,160 3,157 3,141 3,156 30,561 33,834; 30,278 26,853' 16,746 18,575 16,797 16,544 3,145 3,267 3,302 3,384 309 3 313, 309, 304 3 7,828 7,868 7,865 7,814 7,548 34,754 34,822 35,262 35,100 35,142 1,144 1,124 1,128 1,094 1,316 5,704 5,722 5,777 5,718 5,709 33,938 31,081 35,328 31,341 38,774 18,151 18,851 18,291 18,493 18,184 3,459 3,422 3,483 3,551 3,500 342 3 338, 346, 339, 351, 7,573 7,490 7,521 7,636 35,234 34,976 34,900 35,308 1,331 1,368 1,385 1,362 5,592 5,437 5,489 5,449 36,860 32,469 32,101 31,177 16,967 18,906 20,249 18,369 3,317 3,652 3,563 3,666 349, 342, 341, 339, 1,370 1,348 1,262 1,240 4,612 4,630 4,576 4,582 838 818 827 821 14,767 16,341 14,775 12,540 4,215 5,019 3,921 4,414 405 402 409 410 79, 82! so; 78; 1,561 1,424 1,413 1,396 1,217 5,183 5,149 5,557 5,360 5,344 83 84 78 73 188 1,260 1,259 1,296 1,266 1,256 14,433 14,767 16,104 14,845 19,547 4,259 5,237 3,641 4,576 4,511 422 432 411 424 415 83, 83; 85; 83; 89; 1,295 1,229 1,204 1,208 5,390 5,275 5,253 5,396 207 240 232 213 1,218 1,121 1,158 1,114 16,232 13,816 14,614 14,951 5,091 5,338 5,200 5,160 431 442 436 438 87 83 83 83 3,390 3,509 3,506 3,530 24,345 24,386 24,337 24,364 917 900 909 930 2,322 2,339 2,314 2,335 15,794 17,493 15,503 14,313 12,531 13,556 12,876 12,130 2,740 2,865 2,893 2,974 229 231 229 226 6,267 6,444 6,452 6,418 6,331 29,571 29,673 29,705 29,740 29,798 1,061 1,040 1,050 1,021 1,128 4,444 4,463 4,481 4.452 4.453 19,505 16,314 19,224 16,496 19,227 13,892 13,614 14,650 13,917 13,673 3,037 2,990 3,072 3.127 3,085 259 255; 261 ; 256; 262; 6,278 6,261 6,317 6,428 29,844 29,701 29,647 29,912 1,124 1,128 1,153 1,149 4,374 4,316 4,331 4,335 20,628 18,653 17,487 16,226 11,876 13,568 15,049 13,209 2,886 3,210 3.127 3,228 262. 259; 257; 255, AUGUST 1971 □ WEEKLY REPORTING BANKS A 29 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continued (In millions of dollars) Deposits Time and savings Demand Total IPC States and polit ical sub divi sions Domestic interbank U.S. Govt. Com mer cial Foreign IPC Com Mutual sav Govts., mer etc. 2 cial ings banks Certi fied and offi cers’ checks Total6 Sav ings Other States and polit ical sub divi sions Do mes tic inter bank Wednesday For eign govts.2 Large banks —■ Total 1970 132,736 135,393 130,037 128,669 91,368 94,887 91,602 91,029 6,177 5,901 5,391 5,695 5,429 3,982 4,250 4,887 18,674 19,419 18,285 17,072 799 649 572 564 779 829 743 889 2,158 2,230 2,267 2,293 7,352 7,496 6,927 6,240 102,797 103,908 105,241 106,495 46,432 46,385 46,396 46,335 39,311 9,478 40,171 9,873 41,116 10,105 41,862 10,461 143,628 136,509 145,452 138,626 152,998 100,703 96,515 100,430 97,155 102,160 7,228 6,014 6,801 6,558 7,623 2,718 1,517 4,717 3,280 5,328 22,045 20,952 21,984 20,459 24,975 677 646 628 594 794 811 803 802 752 745 2,327 2,236 2,262 2,384 2,397 7,119 7,826 7,828 7,444 8,976 131,127 131,810 130,795 131,411 131,890 53,533 53,523 53,474 53,429 53,658 55,733 56,478 55,568 56,165 56,532 148,572 141,186 140,676 139,726 100,269 98,061 97,291 100,866 6,456 6,008 5,804 6,150 5,080 3,394 4,905 3,899 24,034 20,399 20,530 20,831 851 715 651 621 828 729 713 759 2,512 2,415 2,402 2,368 7,945 7,257 7,610 7,807 131,613 132,077 132,341 132,954 53,509 53,318 53,308 53,145 56,389 56,814 56,900 57,210 602 703 791 6,665 6,453 6,505 6,611 ..............July 8 ....................... 15 ....................... 22 ....................... 29 1,570 1,612 1,633 1,682 1,756 4,537 4,533 4,680 4,687 4,748 .............June 2 .........................9 ....................... 16 ......................23 ....................... 30 1,614 1,599 1,613 1,588 4,781 ............. July 7* 4,862 ....................... 14* 4,971 ....................... 21* 5,200 ....................... 28* 1971 15,234 15,157 14,926 14,949 14,687 14,818 14,943 15,018 15,260 New York City 1970 556 600 368 423 1,288 964 995 1,338 7,721 8,492 7,836 7,245 503 366 303 297 631 690 599 748 1,527 1,608 1,632 1,701 4,915 5,126 4,806 4,076 14,516 14,788 15,345 15,773 4,378 4,360 4,356 4,354 5,177 5,436 5,854 6,176 23,362 21,925 23,097 22,314 24,323 788 465 777 501 616 548 9,959 201 9,701 1,249 9,961 496 9,690 1,173 13,054 347 332 321 308 456 612 614 651 601 585 1,597 1,523 1,570 1,665 1,687 4,353 5,213 5,048 4,898 5,834 22,068 22.558 21,970 22,350 22.559 5,330 5,319 5,310 5,286 5,302 22,676 22,422 21,977 22,049 496 464 414 406 1,328 11,420 706 8,786 1,282 9,706 914 9,997 492 386 346 322 681 563 559 603 1,738 1,724 1,670 1,652 4,804 3,973 4,477 4,908 22,431 22,634 22,723 23,010 5,278 5,236 5,233 5,211 39,453 40,856 39,082 38,250 22,312 23,010 22,543 22,422 41,566 39,974 42,674 40,473 47,728 43,635 39,024 40,431 40,851 459 512 549 604 353 421 458 492 4,033 ..............July 8 3,942 ....................... 15 4,005 ....................... 22 4,018 ....................... 29 11,999 12,400 11,683 11,957 12,134 1,343 1,427 1,397 1,523 1,461 782 798 845 845 873 2,484 ..............June 2 2,492 ......................... 9 2,605 ....................... 16 2,613 ....................... 23 2,661 ....................... 30 12,108 12,305 12,283 12,311 1.403 1.404 1,439 1,568 828 779 795 779 2,688 ..............July 7* 2,751 ....................... 14* 2,808 ....................... 21* 2,953 ....................... 28* 1971 Outside New York City 1970 93,283 94,537 90,955 90,419 69,056 71,877 69,059 68,607 5,621 5,301 5,023 5,272 4,141 10,953 3,018 10,927 3,255 10,449 3,549 9,827 296 283 269 267 148 139 144 141 631 622 635 592 2,437 2,370 2,121 2,164 88,281 89,120 89,896 90,722 42,054 42,025 42,040 41,981 34,134 34,735 35,262 35,686 9,019 9,361 9,556 9,857 249 282 333 388 2,632 2,511 2,500 2,593 102,062 96,535 102,778 98,153 105,270 77,341 74,590 77,333 74,841 77,837 6,440 5,549 6,024 6,057 7,007 2,170 1,316 3,468 2,784 4,155 12,086 11,251 12,023 10,769 11,921 330 314 307 286 338 199 189 151 151 160 730 713 692 719 710 2,766 2,613 2,780 2,546 3,142 109,059 109,252 108,825 109,061 109,331 48.203 48.204 48,164 48,143 48,356 43,734 44,078 43,885 44,208 44,398 13,891 13,730 13,529 13,426 13,226 788 814 788 837 883 2,053 2,041 2,075 2,074 2,087 .June 2 ........... 9 ..........16 ..........23 ..........30 104,937 102,162 100,245 98,875 78,190 77,847 76,084 75,242 5,960 5,544 5,390 5,744 3,752 2,688 3,623 2,985 12,614 11,613 10,824 10,834 359 329 305 299 147 166 154 156 774 691 732 716 3,141 3,284 3,133 2,899 109,182 109,443 109,618 109,944 48,231 48,082 48,075 47,934 44,281 44,509 44,617 44,'899 13,415 13,539 13,579 13,692 786 820 818 809 2,093 2,111 2,163 2,247 .July 7* ..........14* ..........21* ..........28* .July .15 .22 .29 1971 For notes see p. A-30. A 30 WEEKLY REPORTING BANKS □ AUGUST 1971 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continued (In millions of dollars) Borrowings from— Wednesday Fed eral funds F.R. pur chased, Banks etc.7 Reserves for— Other liabili ties Others etc.8 Loans Memoranda Total capital ac Secur ities counts Total loans (gross) ad justed 9 Large negotiable Total time CD’s Gross loans included in time liabili and De and savings deposits i 1 ties of invest mand banks ments deposits to (gross) ad Issued Issued their ad justed i o Total to to foreign justed9 IPC’s others bran ches Large banks— Total 1970 17,480 17,373 17,842 15,098 1,402 1,837 1,044 652 1,916 1,896 1,902 1,811 25,343 25,573 24,963 23,903 4.019 4,015 4,014 4.019 24,007 23,920 23,906 23,945 172,223 172,028 172,335 171,858 233,440 232,607 232,154 233,126 78,072 78,158 77,224 79,857 15,199 15,980 16,911 17,881 7,731 8,442 9,141 9,752 7,468 7,538 7,770 8,129 11,498 11,517 11,235 10,469 2 ...................... 9 ...................... 1 6 2 3 3 0 21,347 22,380 22,601 21,531 19,053 16 560 201 514 354 909 886 901 907 960 16,047 16,181 16,854 17,100 15,931 4,032 4,030 4,010 4,020 3,996 25,702 25,716 25,598 25,624 25,830 180,002 178,573 181,899 180,874 182.830 254,885 253,675 257,517 255,652 259,168 84,927 82,959 83,423 83,546 83,921 27,991 28,825 27,875 28,466 28,527 17,296 17,753 17,037 17,483 17,527 10,695 11,072 10,838 10,983 11,000 1,877 1,938 2.323 2.323 1,512 7p .................... 14p .................... 21 p .................... 28p .................... 21,656 20,823 20,137 20,073 378 1,697 1,383 643 1,293 1,063 1,001 1,002 16,104 15,443 15,509 14,980 3,989 3,988 4,005 4,012 26,051 26,005 25,958 25,981 183,248 181.831 180,904 180,753 260,089 257,716 256,136 255,905 82,598 84,924 83,140 83,819 28,554 29,329 29,571 30,273 17,506 18,044 18,139 18,421 11,048 11,285 11,432 11,852 2,083 1,730 1,879 1 ,497 4,133 4,421 4,625 4,151 433 650 63 13 174 177 204 205 13,866 14,023 13,401 12,421 1.198 1.199 1,198 1,202 6,093 6,087 6,083 6,055 41,931 41,877 41,791 41,666 53,562 53,264 52,783 53,278 15,677 15,059 15,476 17,127 3,462 3,795 4,158 4,518 1,426 1,678 2,000 2,274 2,036 2,117 2,158 2,244 7,906 8,053 7,752 7,118 6,526 6,446 6,943 7,138 6,688 1.195 1.196 1.187 1.188 1,169 6,542 6,561 6,516 6,501 6,551 42,728 42,041 43,418 42,517 43,801 55,340 54,711 56,508 54,994 56,685 16,626 9,731 15,305 10,292 15,360 9,644 15,442 9,991 13,954 10,074 6,714 7,178 6,443 6,669 6,694 3,017 3,114 3,201 3,322 3,380 1,274 1,104 1,532 1,414 1,154 July 8 ...................... 1 5 2 2...................... 2 9 June July 1971 New York City 1970 July 8 ...................... 1 5 2 2 2 4 June 2 ...................... 9 ...................... 1 6 23...................... 30...................... 5,381 5,989 5,922 5,463 4,065 50 49 49 43 43 205 July I p .................... 6,092 5,854 5,240 5,237 790 340 65 204 204 206 200 6,936 6,673 6,523 6,349 1.173 1.174 1,188 1,194 6.733 6.733 6,713 6,694 43,622 43,080 42,389 42,397 57,055 56,151 55,050 54,940 14,655 15,716 14,829 14,989 10,029 10,351 10,499 10,811 6,720 7,043 7,040 7,091 3,309 3,308 3,459 3,720 1,500 1,264 1,186 1,016 13,347 12,952 13,217 10,947 969 1,187 981 639 1,742 1,719 1,698 1,606 11,477 11,550 11,562 11,482 2,821 2,816 2,816 2,817 17,914 17,833 17,823 17,890 130,292 130,151 130,544 130,192 179,878 179,343 179,371 179,848 62,395 63,099 61,748 62,730 11,737 12,185 12,753 13,363 6,305 6,764 7,141 7,478 5,432 5,421 5,612 5,885 3,592 3,464 3,483 3,351 1971 14p .................... 21*.................... 28*.................... 325 Outside New York City 1970 July 8 ...................... 1 5 22...................... 2 9 June 2 ...................... 9 ...................... 1 6 23...................... 3 0 15,966 16,391 16,679 16,068 14,988 16 235 201 514 304 860 837 858 864 755 9,521 9,735 9,911 9,962 9,243 2,837 2,834 2,823 2,832 2,827 19,160 19,155 19,082 19,123 19,279 137,274 136,532 138,481 138,357 139,029 199,545 198.964 201,009 200,658 202,483 68,301 67,654 68,063 68,104 69,967 18,260 18,533 18,231 18,475 18,453 10,582 10,575 10,594 10,814 10,833 7,678 7,958 7,637 7,661 7,620 603 834 791 909 358 July I p .................... 14p .................... 21 p .................... 28 p .................... 15,564 14,969 14,897 14,836 378 907 1,043 578 1,089 859 795 802 9,168 8,770 8,986 8,631 2,816 2,814 2.817 2.818 19,318 19,272 19,245 19,287 139,626 138,751 138,515 138,356 203,034 201,565 201,086 200.965 67,943 69,208 68,311 68,830 18,525 18,978 19,072 19,462 10,786 7,739 7,977 7,973 8,132 583 466 693 481 1971 1 Includes securities purchased under agreements to resell. 2 Includes official institutions and so forth. 3 Includes short-term notes and bills. 4 Federal agencies only. 5 As of June 30, 1971, Farmers Home Administration insured notes are classified as “Participation certificates in Federal agency loans.” These notes were previously classified as “Real estate loans.” The amount transferred to “Participation certificates . . .” for June 30, 1971, is $205 million. 6 Includes corporate stock. 11,001 11,099 11,330 7 Includes U.S. Govt, and foreign bank deposits, not shown separately. 8 Includes securities sold under agreements to repurchase. 9 Includes minority interest in consolidated subsidiaries. 10 Exclusive of loans and Federal funds transactions with domestic com mercial banks. 11 All demand deposits except U.S. Govt, and domestic commercial banks, less cash items in process of collection. 12 Certificates of deposit issued in denominations of $100,000 or more. A U G U S T 1971 □ BUSINESS LOANS OF BANKS A 31 COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS (In millions of dollars) Net change during- Outstanding 1971 Industry July 28 July 21 July 14 July 7 June 30 Durable goods manufacturing: Primary metals................................. 2,201 2,243 2,259 2,280 2,295 5,202 5,272 5,386 5,352 5,220 Machinery........................................ 2,643 2,710 2,712 2,718 2,738 Transportation equipment.............. Other fabricated metal products. . . 2,065 2,094 2,104 2,099 2,108 Other durable goods........................ 2,831 2,838 2,855 2,822 2,815 Nondurable goods manufacturing: Food, liquor, and tobacco.............. 2,385 2,407 2,376 2,415 2,404 Textiles, apparel, and leather.......... 2,646 2,613 2,612 2,624 2,599 1,129 1,107 1,125 1,140 1,119 Petroleum refining........................... 2,774 2,830 2,830 2,872 2,856 Chemicals and rubber..................... 1,851 1,847 1,854 1,846 1,863 Other nondurable goods................. Mining, including crude petroleum 3,771 3,727 3,758 3,735 3,617 and natural gas........................... 1,158 1,180 1,156 1,207 1,148 Trade: Commodity dealers................. 3,974 3,967 3,971 3,952 3,917 Other wholesale....................... Retail........................................ 4,368 4,394 4,393 4,381 4,392 5,871 5,879 5,913 5,916 5,980 Transportation..................................... 1,538 1,581 1,626 1,622 1,541 Communication................................... 2,346 2,344 2,327 2,316 2,206 Other public utilities........................... 3,689 3,687 3,670 3,666 3,654 Construction........................................ 7,592 7,634 7,618 7,626 7,585 Services................................................. 5,069 5,080 5,093 5,098 5,043 All other domestic loans..................... 1,039 1,043 1,078 1,102 1,137 Bankers’ acceptances........................... Foreign commercial and industrial 2,682 2,711 2,690 2,736 2,648 loans............................................ . Total classified loans........................... 68,824 69,188 69,406 69,525 68,885 Total commercial and industrial loans. 81,830 82,182 82,505 82,776 82,521 See N ote July June 1970 1971 1971 May II I 1971 IV 2nd half 1st half -9 4 -1 8 -9 5 -4 3 16 -2 6 -8 4 111 86 74 3 9 -5 2 38 -2 0 38 -9 9 132 112 169 -247 -9 2 68 149 -169 -595 -6 9 -269 -249 -20 -768 169 -3 4 4 -198 149 -209 -191 200 261 -1 9 47 10 -8 2 -1 2 80 121 -6 2 87 6 -177 30 -2 -5 7 7 -163 115 -6 4 44 -3 0 -537 166 -343 32 -105 549 -5 2 2 -105 -2 2 -2 1 4 350 -395 -113 63 -113 -7 0 0 281 -407 76 -135 154 10 57 -2 4 -109 -3 140 35 7 26 -9 8 -204 14 45 -1 0 -9 6 98 240 -116 198 259 -218 19 -3 4 117 -5 2 -3 5 -9 9 -278 -1 7 4 206 185 -3 0 6 184 185 71 387 290 -3 9 0 -108 -5 7 10 162 286 49 -327 131 -2 0 0 -1 8 0 -1 6 4 -181 375 26 -201 119 46 -2 4 0 146 300 -5 2 945 -257 481 78 -3 0 8 366 19 -3 8 6 197 525 96 1,186 -3 8 6 -231 216 347 -2 0 233 -1 4 2 202 187 110 -5 5 4 34 -6 1 -4 8 555 nos 106 531 140 -998 198 -1 8 4 255 884 246 -4 6 7 -682 r961 r369 ••1,311 r —473 372 1,979 r847 -6 5 100 138 168 to table below. “TERM” COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS (In millions of dollars) Outstanding Net change during— 1971 1970 Durable goods manufactur ing: Primary metals................... Machinery.......................... Transportation equipment. Other fabricated metal products......................... Other durable goods.......... Nondurable goods manufac turing : Food, liquor, and tobacco. Textiles, apparel, and leather............................. Petroleum refining............. Chemicals and rubber....... Other nondurable goods.. Mining, including crude pe troleum and natural gas. Trade: Commodity dealers.. Other wholesale........ Retail......................... Transportation....................... Communication..................... Other public utilities............. Construction.......................... Services................................... All other domestic loans . . . . Foreign commercial and in dustrial loans................. Total loans............................. 1971 July 28 June 30 May 26' Apr. 28 Mar. 31 Feb. 24 Jan. 27 Dec. 30 Nov. 25 II I IV 1,535 2,514 1,552 1,587 2,539 1,559 1,667 2,594 1,440 1,622 2,735 1,515 1,630 2,591 1,613 1,564 2,634 1,633 1,544 2,666 1,647 1,527 2,681 1,633 1,535 2,690 1,621 -4 3 -5 2 -5 4 103 -9 0 -2 0 -1 5 0 -243 -2 2 157 140 91 60 -1 4 2 -7 4 804 1,237 815 1,231 805 1,201 769 1,191 733 1,216 747 1,222 750 1,107 742 1,089 801 1,131 82 15 -9 127 -6 5 -5 2 45 9 73 142 948 972 919 982 974 971 949 985 932 -2 -11 -2 3 1 -1 3 598 902 1,828 1,008 597 892 1,824 1,021 609 920 1,726 1,058 592 932 1,822 1,062 617 915 1,850 1,100 659 1,142 1,834 1,116 674 1,191 1,800 1,116 657 1,213 1,849 1,171 703 1,220 1,738 1,159 -2 0 -2 3 -2 6 -7 9 -40 -298 1 -7 1 -9 4 -3 5 69 -1 2 -1 1 -1 8 71 112 -6 0 -321 -2 5 -1 5 0 3,019 101 850 1,423 4,612 471 1,141 1,229 3,247 1,309 2,992 97 842 1,421 4,614 468 1,095 1,192 3,269 1,247 3,058 88 809 1,423 4,681 439 1,038 1,178 3,192 1,259 3,089 81 813 1,404 4,757 426 991 1,164 3,249 1,223 3,123 80 782 1,417 4,867 402 973 1,107 3,142 1,268 3,270 79 754 1,459 4,763 398 1,056 1,063 3,154 1,319 3,354 79 783 1,450 4,731 398 1,029 1,048 3,186 1,346 3,326 79 756 1,399 4,564 415 1,018 1,044 3,209 1,285 3,329 83 739 1,371 4,453 415 1,022 1,005 3,208 1,716 -131 17 60 4 -253 66 122 85 127 -2 1 -203 1 26 18 303 -1 3 -4 5 63 -6 7 -1 7 -135 -3 59 39 147 -3 3 -4 7 -8 7 77 60 -121 -6 5 52 141 40 32 46 115 -2 -3 3 4 18 86 22 50 53 77 148 60 -3 8 1,908 1,892 1,882 1,840 1,792 1,716 1,723 1,716 1,283 100 76 112 -1 6 176 32,236 32,166 31,986 32,259 32,192 32,553 32,571 32,358 32,205 -2 6 -166 -2 6 4 883 -1 9 2 N o te .—About 160 weekly reporting banks are included in this series; these banks classify, by industry, commercial and industrial loans amount ing to about 90 per cent of such loans held by all weekly reporting banks and about 70 per cent of those held by all commercial banks. For description of series see article “Revised Series on Commercial and Industrial Loans by Industry,” Feb. 1967 B u ll e t in , p. 209. 1970 1971 Industry III 1st half Commercial and industrial “ term” loans are all outstanding loans with an original maturity of more than 1 year and all outstanding loans granted under a formal agreement—revolving credit or standby—on which the original maturity of the commitment was in excess of 1 year. A 32 DEMAND DEPOSIT OW NERSHIP □ A U G U S T 1971 GROSS DEMAND DEPOSITS OF INDIVIDUALS, PARTNERSHIPS, AND CORPORATIONS1 (In billions of dollars) Type of holder Class of bank and month Total deposits, IPC Financial business Nonfinancial business Consumer Foreign All other 1970—June................................................................................ Sept................................................................................. Dec................................................................................. 16.6 17.0 17.3 85.8 88.0 92.7 49.9 51.4 53.6 1.4 1.4 1.3 9.6 10.0 10.3 163.4 167.9 175.1 1971—Mar................................................................................ June................................................................................ 18.2 17.9 86.1 89.9 54.3 56.0 1.4 1.3 10.5 10.7 170.4 *175.8 1970—June................................................................................ July................................................................................. Aug................................................................................. Sept................................................................................. Oct.................................................................................. Nov................................................................................. Dec.................................................................................. 12.8 13.6 12.7 13.4 13.2 13.6 13.5 53.0, 52.8 52.8 53.8 53.7 53.9 56.1 21.0 20.6 20.6 21.2 20.9 21.1 23.3 1.3 1.4 1.2 1.3 1.2 1.2 1.2 5.2 5.3 4.9 5.5 5.8 5.4 5.6 93.3 93.7 92.2 95.1 94.8 95.2 99.7 1971—Jan.................................................................................. Feb.............................. ................................................... Mar................................................................................. Apr.................................................................................. May................................................................................ June................................................................................ 13.9 13.8 14.1 14.1 13.7 14.0 54.4 52.3 52.4 53.4 52.9 54.2 24.1 23.1 23.9 25.3 24.1 24.4 1.2 1.2 1.3 1.3 1.2 1.2 5.6 5.5 5.7 5.7 5.5 6.0 99.3 95.8 97.3 99.8 97.4 *99.8 All commercial banks: Weekly reporting banks: 1 Including cash items in process of collection. N o t e :— Daily-average balances maintained during month as estimated from reports supplied by a sample of commercial banks. For a detailed description of the type of depositor in each category, see June 1971 B u ll e tin , p. 466. DEPOSITS ACCUMULATED FOR PAYMENT OF PERSONAL LOANS (In millions of dollars) Class of bank All commercial. . . . Insured................ National member State member__ All member............ Dec. 31, 1968 Dec. 31, 1969 1,216 1,216 730 207 937 1,131 1,129 688 188 876 June 30, 1970 945 943 536 178 714 Dec. 31, 1970 804 803 433 147 580 N ote .—These hypothecated deposits are excluded from Time deposits and Loans at all commercial banks beginning with June 30, 1966, as shown in the tables on pp. A-20, A-21, and A-26—A-30 (consumer instal ment loans), and in the table at the bottom of p. A-18. These changes Class of bank All member—Cont. Other reserve city............... All nonmember...................... Noninsured......................... Dec. 31, 1968 332 605 278 278 Dec. 31, 1969 304 571 255 253 2 June 30, 1970 222 492 230 229 2 Dec. 31, 1970 143 437 224 223 1 resulted from a change in Federal Reserve regulations. See June 1966 B u ll e tin , p. 808. These deposits have not been deducted from Time deposits and Loans for commercial banks as shown on pp. A-22 and A-23 and on pp. A-24 and A-25 (IPC only for time deposits). AUGUST 1971 □ LOAN SALES BY BANKS; OPEN MARKET PAPER A 33 LOANS SOLD OUTRIGHT BY COMMERCIAL BANKS (Amounts outstanding; in millions of dollars) To own subsidiaries, foreign branches, holding companies, and other affiliates By type of loan Date Total Apr. May All other Commercial and industrial All other 2,375 2,286 2,320 2,409 1,472 1,403 1,469 1,560 903 883 851 849 1,855 1,854 1,877 1,873 421 420 424 417 1,434 1,434 1 ,453 1,456 5 r ........ 2,867 2,774 2,768 2,776 1,912 1,879 1,881 955 913 889 895 1,892 1,899 1,894 1,941 417 420 410 415 1,475 1,479 1,484 1,526 2,861 2,797 2,752 2,801 3,058 1,827 1,838 1,807 1,877 1,930 1,034 959 945 924 1,128 1,931 1,937 1,942 1 ,949 1,969 414 16r . . . . 23r , . 30 r ........ 419 422 418 436 1,517 1,518 1,520 1,531 1,533 7 .......... 14.......... 21.......... 28.......... 2,815 2,840 2,840 2,838 1,756 1,838 1,865 1,835 1,059 1,002 975 1,003 1,954 1,976 1,975 1,981 448 434 444 430 1,506 1,542 1,531 1,551 l2 r 2 r ........ 9r .... July Commercial and industrial By type of loan Total 7 .......... 14......... 21 ......... 28.......... 19r . . . . 2 6 ' .............. June To all others except banks 1,861 N o te .—Amounts sold under repurchase agreement are excluded. Figures include small amounts sold by banks other than large weekly reporting banks. COMMERCIAL AND FINANCE COMPANY PAPER AND BANKERS' ACCEPTANCES OUTSTANDING (In millions of dollars) Dollar acceptances Commercial and finance company paper Placed through dealers End of period Total Total Bank Bank related Other i related Other2 2,223 1,903 3,089 4,901 4 5 6 7 8 9 8,361 9,058 13,279 16,535 20,497 31,709 1,216 10,601 1970—June July. Aug. Sept. Oct.. Nov. Dec. 37,798 36,961 36,570 33,958 34,401 33,966 31,765 1,044 986 802 505 520 526 409 1971—Apr. May June 31,367 31,115 29,407 196 196 196 196 196 196 11,945 11,048 11,242 12,013 12,564 12,775 12,262 431 13,058 392 12,608 448 11,288 Based on— Held by— Placed directly Accepting banks Total F.R. Banks Own bills Bills bought Own acct. For eign corr. Others Im Ex ports ports into from United United States States All other 6,138 7,155 10,190 11,634 13,296 3,078 16,814 3,385 3,392 3,603 4,317 4,428 5,451 1,671 1,223 1,198 1,906 1,544 1,567 1,301 1,094 983 1,447 1,344 1,318 370 129 215 459 200 249 94 187 193 164 58 64 122 144 191 156 109 146 1,498 1,837 2,022 2,090 2,717 3,674 667 792 997 1,086 1,423 1.889 999 974 829 989 952 1,153 1,719 1,626 1,778 2,241 2,053 2,408 18,250 18,093 18,025 17,325 18,138 18,065 17,154 5,849 5,973 5,979 5,848 6,167 6,267 7,058 1,589 1,599 1,911 1,952 2,125 2,368 2,694 1,339 1,324 1,541 1,557 1,737 1,875 1,960 250 275 370 395 388 493 735 32 37 63 87 73 87 57 232 239 253 235 238 243 250 3,996 4,098 3,752 3,574 3,731 3,569 4,057 2,190 2,294 2,354 2,396 2,553 2,490 2,601 1,162 1,198 1,294 1,285 1,323 1,388 1,561 2,497 2,482 2,331 2,167 2,292 2,390 2,895 1,363 16,515 1,356 16,759 1,285 16,386 7,301 7,494 7,644 2,893 2,927 2,806 2,320 2,382 2,355 573 545 451 56 112 62 236 253 230 4,115 4,203 4,546 2,748 2.889 3,028 1,510 1,479 1,467 3,043 3,126 3,150 6,559 6,834 6,501 4,115 3,179 2,600 1,940 1 As reported by dealers; includes finance company paper as well as 2 As reported by finance companies that place their paper directly with other commercial paper sold in the open market. investors. A 34 INTEREST RATES □ AUGUST 1971 PRIME RATE CHARGED BY BANKS (Per cent per annum) In effect during— Rate 192 9 5*4-6 193 193 193 193 31/ 2 -6 0 1 2 3 2*4-5 314-4 1j/2-4 1934— 1947 (Nov.) 1*4 Effective date Rate 1951—Jan. Oct. Dec. 8. 17. 19. 21/2 1953—Apr. 27, 31/4 2% 3 1954—Mar. 17 3 1955—Aug. Oct. 314 31/2 4 14 1956—Apr. 13 Aug. 21 Effective date 33A 4 1947—Dec. i. .. iy 4 1957—Aug. 6 41/2 1948—Aug. i . . . 2 1950—Sept. 22 2*4 1958—Jan. 22 Apr. 21 Sept. 11 4 31/2 4 Effective date Rate 1959—May 1 8 ... Sept. 1 ... 41/2 5 1960—Aug. 2 3 ... 41/2 1965—Dec. 5 6 ... 1966—Mar. 1 0 ... June 2 9 ... Aug. 1 6 ... 51/2 534 6 1967—Jan. 26-27 Mar. 2 7 ... Nov. 2 0 ... 51/2-534 5V4 6 1968—Apr. 1 9 ... Sept. 2 5 ... Nov. 1 3 ... Dec. 2 ... Dec. 1 8 ... 61/2 6 -614 61/4 61/2 634 Effective date Rate 1969—Jan. 7. . Mar. 17. . June 9 , 1970—Mar. Sept. Nov. Nov. Dec. 25. . 21.. 12, , 23. . 22 1971—Jan. Jan. Jan. Feb. Mar. Mar. Apr. May July July 6 15. , 18. . 16. . 11 19 23 11. . 6 .. 7 , 7 71/2 8% 7H 7M 7 6Va 6 V4 61/4 6 5V4 514-51/2 5% 514-51/2 5i/i 5*4-6 6 1 Date of change not available. RATES ON BUSINESS LOANS OF BANKS Size of loan (in thousands of dollars) All sizes 1--9 10-99 Center May 1971 Feb. 1971 May 1971 Feb. 1971 May 1971 100-499 Feb. 1971 May 1971 Feb. 1971 500-999 May 1971 Feb. 1971 1,000 and over May 1971 Feb. 1971 Short-term 35 centers..................................... New York City........................ 7 other Northeast.................... 8 North Central....................... 7 Southeast............................... 8 Southwest.............................. 4 West Coast............................ 6.00 5.66 6.25 5.95 6.37 6.17 6.12 6.58 6.26 6.80 6.65 6.88 6.59 6.63 7.47 6.85 7.69 7.08 7.67 7.35 7.84 8.05 7.76 8.27 7.76 8.23 7.83 8.38 6.94 6.66 7.18 6.69 7.20 6.76 7.14 7.49 7.20 7.75 7.28 7.72 7.22 7.77 6.37 6.13 6.58 6.25 6.54 6.33 6.43 6.91 6.57 7.11 7.82 7.00 6.82 7.16 6.04 5.82 6.22 5.97 6.12 6.19 6.10 6.64 6.35 6.97 6.57 6.69 6.63 6.77 5.76 5.56 5.88 5.78 6.05 5.87 5.91 6.35 6.18 6.40 6.54 6.55 6.25 6.32 6.70 6.54 6.56 6.49 7.22 7.63 6.66 5.83 5.66 5.74 5.79 6.18 6.61 5.80 6.43 6.27 6.28 6.57 6.28 6.65 6.41 5.71 5.73 5.87 5.82 6.08 5.69 5.61 6.30 6.24 6.60 6.46 6.12 6.47 6.25 7.32 6.80 7.62 7.28 7.59 8.06 7.41 6.22 6.53 6.19 6.34 7.00 6.18 6.05 6.91 6.56 6.80 7.52 6.50 6.82 6.81 6.24 6.29 6.27 6.41 7.25 6.19 5.99 6.64 6.83 6.72 6.77 7.00 6.71 6.32 Revolving credit 35 centers..................................... New York City........................ 7 other Northeast.................... 8 North Central....................... 7 Southeast............................... 8 Southwest.............................. 4 West Coast............................ 5.74 5.74 5.86 5.82 6.29 6.05 5.66 6.34 6.25 6.57 6.48 6.62 6.74 6.31 6.62 6.33 7.62 6.65 6.24 6.81 7.11 7.51 6.65 8.53 6.53 8.00 7.26 8.24 6.53 6.77 6.54 6.30 6.76 6.89 6.42 7.06 6.88 7.95 6.67 7.91 7.03 7.15 5.90 5.83 5.84 5.73 6.66 6.46 5.85 Long-term 35 centers..................................... New York City........................ 7 other Northeast.................... 8 North Central....................... 7 Southeast............................... 8 Southwest.............................. 4 West Coast........................... 6.38 6.35 6.64 6.49 7.67 6.29 6.04 6.81 6.81 7.09 6.92 7.22 6.99 6.46 7.63 5.65 8.11 7.44 7.07 8.02 7.80 8.42 7.08 10.36 7.56 8.37 6.90 7.63 N ote .—Beginning Feb. 1971 the Quarterly Survey of Interest Rates on Business Loans was revised. For description of revised series see pp. 46877 of the June 1971 B u l l e t in . 7.25 6.35 7.44 7.06 8.13 6.95 7.18 7.58 6.75 7.97 7.39 7.62 7.84 7.21 6.91 6.53 7.38 6.88 8.41 6.69 6.41 AUGUST 1971 □ INTEREST RATES A 35 MONEY MARKET RATES (Per cent per annum) Finance CO. paper placed directly, 3- to 6months2 U.S. Government secutities (taxable) 4 Prime bankers’ accept ances, 90 days1 Federal funds rate3 3-month bills 5 6-month bills 5 9- to 12-month issues Rate on new issue Market yield Rate on new issue Market yield Bills (mar ket yield) 5 Other6 3- to 5year issues 7 3, 3. 3.40 3.83 3.36 3.77 3.18 3.50 3.157 3.549 3.16 3.54 3.253 3.686 3.25 3.68 3.30 3.74 3.28 3.76 3.72 4.06 4. 5. 5. 5. 7. 7. 4.27 5.42 4.89 5.69 7.16 7.23 4.22 5.36 4.75 5.75 7.61 7.31 4.07 5.11 4.22 5.66 8.22 7.17 3.954 4.881 4.321 5.339 6.677 6.458 3.95 4.85 4.30 5.33 6.64 6.42 4.055 5.082 4.630 5.470 6.853 6.562 4.05 5.06 4.61 5.48 6.84 6.55 4.06 5.07 4.71 5.45 6.77 6.53 4.09 5.17 4.84 5.62 7.06 6.90 4.22 5.16 5.07 5.59 6.85 7.37 8. 7. 7. 6. 6, 5, 7.64 7.48 7.12 6.76 6.16 5.48 7.61 7.20 7.03 6.54 5.79 5.32 7.21 6.61 6.29 6.20 5.60 4.90 6.468 6.412 6.244 5.927 5.288 4.860 6.45 6.41 6.12 5.90 5.28 4.87 6.555 6.526 6.450 6.251 5.422 4.848 6.51 6.56 6.47 6.21 5.42 4.89 6.63 6.55 6.40 6.23 5.39 4.87 7.00 6.92 6.68 6.34 5.52 4.94 7.58 7.56 7.24 7.06 6.37 5.86 5, 4. 4, 4, 5, 5. 5, 5.07 4.37 4.05 4.27 4.69 5.24 5.54 4.77 4.09 3.80 4.36 4.91 5.33 5.60 4.14 3.72 3.71 4.15 4.63 4.91 5.31 4.494 3.773 3.323 3.780 4.139 4.699 5.554 4.44 3.69 3.38 3.85 4.13 4.74 5.39 4.510 3.806 3.431 3.927 4.367 4.890 5.833 4.47 3.78 3.50 4.03 4.34 4.95 5.77 4.39 3.84 3.61 4.09 4.64 5.32 5.87 4.29 3.80 3.66 4.21 4.93 5.57 6.00 5.72 5.31 4.74 5.42 6.02 6.36 6.92 4, 4, 4. 4. 4.08 4.13 4.28 4.34 4.00 4.13 4.38 4.45 4.02 3.98 4.20 4.27 3.521 3.703 4.039 3.770 3.61 3.78 3.96 3.81 3.695 3.754 4.140 3.960 3.72 3.85 4.09 4.02 3.70 3.79 4.10 4.14 3.89 4.02 4.16 4.19 4.85 5.08 5.37 5.59 4. 5. 5, 5. 5, 4.39 4.50 4.51 4.79 4.98 4.60 4.83 4.88 4.95 5.00 4.14 4.41 4.59 4.55 4.68 3.865 3.865 3.861 4.352 4.478 3.93 3.84 3.96 4.36 4.38 4.087 4.182 4.178 4.530 4.578 4.22 4.20 4.23 4.49 4.46 4.44 4.46 4.58 4.79 4.73 4.53 4.69 4.75 5.20 5.08 5.77 5.92 5.98 6.20 5.97 5. 5. 5. 5. 5.13 5.13 5.19 5.39 5.00 5.18 5.43 5.50 4.82 4.77 4.89 4.96 4.344 4.510 4.989 4.953 4.28 4.58 4.94 4.86 4.508 4.720 5.2Q0 5.133 4.52 4.79 5.16 5.06 4.78 5.13 5.43 5.56 4.99 5.37 5.76 5.74 5.92 6.22 6.54 6.46 5. 5. 5. 5. 5, 5.45 5.48 5.56 5.56 5.58 5.60 5.63 5.50 5.63 5.63 5.07 5.18 5.13 5.46 5.38 5.080 5.467 5.376 5.546 5.554 5.17 5.40 5.38 5.45 5.39 5.277 5.614 5.483 5.724 5.833 5.37 5.53 5.52 5.73 5.77 5.77 5.65 5.61 5.77 5.87 6.06 5.96 5.70 5.85 6.00 6.70 6.70 6.64 6.82 6.92 es of dealers. shed by finance companies, for varying nding Wednesday. 4 Except for new bill issues, yields are averages computed from daily closing bid prices. 5 Bills quoted on bank discount rate basis. 6 Certificates and selected note and bond issues. 7 Selected note and bond issues. A 36 IN TE R ES T RATES □ A U G U S T 1971 BOND AND STOCK YIELDS (Per cent per annum) Corporate bonds Government bonds Period By selected rating State and local United States (long term) Total i Aaa Baa 1962............................................... 1963............................................... 1964............................................... 3.95 4.00 4.15 3.30 3.28 3.28 3.03 3.06 3.09 3.67 3.58 3.54 1965.............................................. 1966............................................... 1967............................................... 1968.............................................. 1969............................................... 1970............................................... 4.21 4.66 4.85 5.25 6.10 6.59 3.34 3.90 3.99 4.48 5.73 6.42 3.16 3.67 3.74 4.20 5.45 6.12 1970-—JUly.................................... Aug.................................... Sept.................................... Oct...................................... Nov.................................... Dec..................................... 6.57 6.75 6.63 6.59 6.24 5.97 6.68 6.27 6.18 6.41 6.04 5.49 1971—Jan...................................... Feb..................................... Mar.................................... Apr..................................... M ay.................................... June.................................... July..................................... 5.91 5.84 5.71 5.75 5.96 5.94 5.91 Stocks Dividend/ price ratio By group Earnings / price ratio Total i Aaa Baa Indus trial Rail road Public utility Pre ferred Com mon Com mon 4.62 4.50 4.57 4.33 4.26 4.40 5.02 4.86 4.83 4.47 4.42 4.52 4.86 4.65 4.67 4.51 4.41 4.53 4.50 4.30 4.32 3.37 3.17 3.01 6.06 5.68 5.54 3.57 4.21 4.30 4.88 6.07 6.75 4.64 5.34 5.82 6.51 7.36 8.51 4.49 5.13 5.51 6.18 7.03 8.04 4.87 5.67 6.23 6.94 7.81 9.11 4.61 5.30 5.74 6.41 7.22 8.26 4.72 5.37 5.89 6.77 7.46 8.77 4.60 5.36 5.81 6.49 7.49 8.68 4.33 4.97 5.34 5.78 6.41 7.22 3.00 3.40 3.20 3.07 3.24 3.83 5.87 6.72 5.71 5.84 6.05 6.28 6.40 5.96 5.90 6.07 5.79 5.21 7 02 6.65 6.49 6.74 6.33 5.80 8.85 8.73 8.68 8.63 8.65 8.35 8.44 8.13 8.09 8.03 8.05 7.64 9.40 9.44 9.39 9.33 9.38 9.12 8.61 8.44 8.40 8.35 8.37 7.95 9.11 9.19 9.10 9.06 9.06 8.96 9.01 8.83 8.80 8.74 8.77 8.45 7.62 7.41 7.31 7.33 7.30 6.88 4.20 4.07 3.82 3.74 3.72 3.46 6.34 5.34 5.28 5.26 5.49 5.99 5.98 6.12 5.08 4.92 5.00 5.22 5.71 5.65 5.75 5.65 5.73 5.56 5.85 6.36 6.36 6.58 8.04 7.75 7.84 7.86 8.03 8.14 8.14 7.36 7.08 7.21 7.25 7.53 7.64 7.64 8.74 8.39 8.46 8.45 8.62 8.75 8.76 8.57 7.24 7.36 7.43 7.68 7.80 7.85 8.70 8.39 8.39 8.37 8.40 8.43 8.46 8.17 7.94 8.08 8.05 8.23 8.39 8.34 6.53 6.32 6.48 6.59 6.82 6.99 7.03 3.32 3.18 3.10 2.99 3.04 3.10 3.13 5.81 5.92 5.96 6.04 5.90 5.80 5.96 6.08 6.00 6.00 5.50 5.65 5.80 5.70 5.70 6.15 6.25 6.40 6.40 6.40 7.89 7.95 7.99 8.08 8.12 7.30 7.43 7.48 7.57 7.66 8.47 8.52 8.59 8.69 8.66 7.46 7.57 7.64 7.75 7.77 8.38 8.37 8.38 8.44 8.43 8.10 8.14 8.17 8.28 8.35 6.64 6.69 6.74 6.82 7.03 2.95 2.98 3.01 3.06 3.11 5 .81 r 5.52 Week ending— 1971—May. 1............................. 8 ............................. 15............................. 22............................. 29............................. June 5 ............................. 12............................ 19............................ 26............................ 5.79 5.89 6.06 5.98 5.83 5.90 5.99 6.19 5.50 5.60 5.70 5.80 6.20 6.25 6.35 6.65 8.15 8.13 8.13 8.14 7.69 7.66 7.63 7.62 8.71 8.73 8.77 8.78 7.80 7.79 7.79 7.79 8.40 8.37 8.42 8.49 8.41 8.42 8.38 8.37 6.98 7.03 6.96 6.99 3.07 3.09 3.08 3.14 July 3 ............................. 10............................. 17............................. 24............................. 31............................. 5.97 5.92 5.82 5.91 5.96 6.35 6.09 6.09 5.98 6.08 5.90 5.70 5.70 5.65 5.80 7.00 6.60 6.60 6.30 6.40 8.14 8.14 8.14 8.14 8.16 7.63 7.65 7.64 7.63 7.66 8.78 8.75 8.77 8.75 8.78 7.82 7.83 7.84 7.85 7.86 8.47 8.43 8.43 8.47 8.47 8.35 8.35 8.34 8.32 8.34 7.01 7.06 7.07 6.96 7.04 3.10 3.09 3.12 3.12 3.18 Number of issues2....................... 7 20 5 5 119 20 30 40 29 40 14 500 1 Includes bonds rated Aa and A, data for which are not shown sep arately. Because of a limited number of suitable issues, the number of corporate bonds in some groups has varied somewhat. As of Dec. 23, 1967, Aaa-rated railroad bonds are no longer a component of the railroad average or the Aaa composite series. 2 Number of issues varies over time; figures shown reflect most recent count. N o te .—Annual yields are averages of monthly or quarterly data. Bonds: Monthly and weekly yields are computed as follows: (1) U.S. 500 Govt.: Averages of daily figures for bonds maturing or callable in 10 years or more. (2) State and local govt.: General obligations only, based on Thurs. figures. (3) Corporate: Averages of daily figures. (2) and (3) are from Moody’s Investors Service series. Stocks: Standard and Poor’s corporate series. Dividend/price ratios are based on Wed. figures; earnings/price ratios are as of end of period. Preferred stock ratio is based on eight median yields for a sample of noncallable issues—12 industrial and two public utility; common stock ratios on the 500 stocks in the price index. Quarterly earnings are seasonally adjusted at annual rates. Notes to tables on opposite page: Security Prices: Terms on Mortgages: i Begins June 30, 1965, at 10.90. On that day the average price of a share of stock listed on the American Stock Exchange was $10.90. i Fees and charges—related to principal mortgage amount—include loan commissions, fees, discounts, and other charges, which provide added income to the lender and are paid by the borrower. They exclude any closing costs related solely to transfer of property ownership. N ote .—Annual data are averages of monthly figures. Monthly and weekly data are averages of daily figures unless otherwise noted and are computed as follows: U.S. Govt, bonds, derived from average market yields in table on preceding page on basis of an assumed 3 per cent, 20-year bond. Municipal and corporate bonds, derived from average yields as computed by Standard and Poor’s Corp., on basis of a 4 per cent, 20-year bond; Wed. closing prices. Common stocks, derived from com ponent common stock prices. Average daily volume o f trading, normally conducted 5 days per week for 5% hours per day, or 27% hours per week. In recent years shorter days and/or weeks have cut total weekly trading to the following number of hours: 1967—Aug. 8-20, 20; 1968—Jan. 22Mar. 1, 20; June 30-Dec. 31, 22; 1969—Jan. 3-July 3, 20; July 7-Dec. 3122.5; 1970—Jan. 2-May 1, 25. N o te .—Compiled by Federal Home Loan Bank Board in cooperation with Federal Deposit Insurance Corporation. Data are weighted averages based on probability sample survey of characteristics of mortgages originated by major institutional lender groups (including mortgage companies) for purchase of single-family homes. Data exclude loans for refinancing, reconditioning, or modernization; construction loans to homebuilders; and permanent loans that are coupled with construction loans to owner-builders. Series beginning 1965, not strictly comparable with earlier data. See also the table on Home-Mortgage Yields, p. A-55. AUGUST 1971 □ SECURITY MARKETS A 37 SECURITY PRICES Common stock prices New York Stock Exchange Bond prices (per cent of par) Period Standard and Poor’s index (1941-43= 10) U.S. Govt. (long term) State and local Cor porate AAA 86.94 86.31 84.46 83.76 78.63 76.55 72.33 64.49 60.52 112.0 111.3 111.5 1970—July.. . . Aug---Sept... . Oct....... N o v .... D ec.. .. 1971—Ja......... n F e b .... M ar.. . . A pr.. .. M ay. . . June. . . Ju ly .. . . 196 196 196 196 196 196 196 196 197 2 3 4 5 6 7 8 9 0 New York Stock Exchange index (Dec. 31, 1965 = 50) Indus Trans porta Utility trial tion Indus trial Rail road Public utility 100.5 93.5 79.0 72.3 110.6 102.6 96.2 96.8 95.1 93.9 86.1 81.8 76.4 68.5 61.6 62.38 65.54 69.87 73.39 81.37 86.19 88.17 93.48 85.26 91.09 91.93 99.18 98.70 107.49 97.84 107.13 83.22 91.29 30.56 37.58 45.46 46.78 46.34 46.72 48.84 45.95 32.13 59.16 64.99 69.91 76.08 68.21 68.10 66.42 62.64 54.48 44.16 50.77 55.37 54.67 45.72 43.79 51.97 58.00 57.45 48.03 48.23 53.51 50.58 46.96 32.14 44.77 45.43 44.19 42.80 37.24 60.59 59.20 60.10 60.44 63.27 65.63 70.6 73.8 72.3 71.9 75.1 79.8 59.0 60.0 60.8 61.3 61.9 64.7 75.72 77.92 82.58 84.37 84.28 90.05 83.00 85.40 90.66 92.85 92.58 98.72 26.59 26.74 29.14 31.73 30.80 32.95 50.91 52.62 54.44 53.37 54.86 59.96 41.15 42.28 45.10 46.06 45.84 49.00 43.04 44.20 47.43 48.87 48.54 51.68 26.46 27.66 30.43 32.38 31.23 33.70 66.10 66.78 67.94 67.57 65.72 65.84 66.16 79.9 81.5 82.8 80.4 75.6 74.8 74.0 66.5 93.49 102.22 66.8 97.11 106.62 65.8 99.60 109.59 65.1 103.04 113.68 63.7 101.64 112.41 63.5 99.70 109.95 63.2 99.00 109.09 36.64 38.78 39.70 42.29 42.05 41.97 42.05 63.43 62.49 62.42 62.06 59.20 59.96 60.08 51.29 53.42 54.89 56.81 56.00 55.06 54.83 53.72 56.45 58.43 60.65 60.21 59.25 58.70 65.63 66.08 66.91 66.09 65.72 73.2 73.3 73.9 74.4 74.2 63.4 99.16 109.37 63.1 100.21 110.47 63.4 99.59 109.71 63.2 99.12 109.19 63.0 97.02 106.88 41.86 42.30 42.39 42.24 41.30 59.50 60.53 60.59 60.25 59.06 54.80 55.49 55.20 54.94 53.67 58.81 59.46 59.03 58.80 57.45 Total Total Fi nance Amer ican Stock Ex change total index1 Volume of trading in stocks (thousands of shares) NYSE AMEX 44.43 49.82 65.85 70.49 54.64 8.52 9.81 12.05 14.67 19.67 27.72 28.73 22.59 3,820 4,573 4,888 6,174 7,538 10,143 12,971 11,403 10,532 1,225 1,269 1.570 2,120 2,752 4,508 6,353 5,001 3,376 34.90 35.74 36.74 36.01 36.71 39.93 54.00 56.05 60.13 59.04 57.40 61.95 20.11 20.39 21.72 22.39 21.73 22.19 10,358 10,420 14,423 11,887 11,519 15,241 2,202 2,474 4,438 3,135 2,677 4,330 37.76 40.37 41.71 45.35 45.48 44.90 44.02 42.52 42.30 41.60 41.73 39.70 38.71 39.72 66.41 68.19 70.66 73.91 70.89 70.01 70.42 23.56 25.02 25.88 26.43 26.03 25.61 25.46 17,429 19,540 16,955 19,126 15,157 13,802 12,634 4,493 6,054 5.570 5,685 4,157 3.488 3,080 43.66 44.88 44.83 44.13 42.44 39.44 40.04 40.13 39.77 38.99 69.19 70.82 71.15 70.93 69.13 25.40 25.72 25.68 25.51 24.98 12,545 12,877 13,383 12,169 12,599 2,919 3,411 3,187 2,830 3,175 Week ending— 1971—July 3 10 17, 24 31 For notes see opposite page. TERMS ON CONVENTIONAL FIRST MORTGAGES Existing homes New homes Period Con tract rate (per cent) Fees & charges (per cent) i Maturity (years) Loan / price ratio (per cent) Pur Loan chase amount price (thous. (thous. of dollars)of dollars) Con tract rate (per cent) Fees & charges (per cent) i Maturity (years) Loan / price ratio (per cent) Pur Loan chase amount price (thous. of (thous. of dollars) dollars) 1964....................... 1965....................... 1966........................ 1967........................ 1968........................ 1969........................ 5.78 5.74 6.14 6.33 6.83 7.66 .57 .49 .71 .81 .89 .91 24.8 25.0 24.7 25.2 25.5 25.5 74.1 73.9 73.0 73.6 73.9 72.8 23.7 25.1 26.6 28.0 30.7 34.1 17.3 18.3 19.2 20.4 22.4 24.5 5.92 5.87 6.30 6.40 6.90 7.68 .55 .55 .72 .76 .83 .88 20.0 21.8 21.7 22.5 22.7 22.7 71.3 72.7 72.0 72.7 73.0 71.5 18.9 21.6 22.2 24.1 25.6 28.3 13.4 15.6 15.9 17.4 18.5 19.9 1970—M ay............ 8.28 8.31 8.32 8.35 8.31 8.33 8.26 8.20 .98 .99 1.01 .98 1.03 1.05 .99 1.07 25.3 25.1 25.1 24.8 25.2 25.1 25.3 25.8 71.7 71.3 71.5 71.6 72.7 72.4 72.1 73.8 35.8 36.3 35.3 35.7 35.3 34.6 35.8 35.3 25.3 25.6 24.9 25.5 25.3 24.8 25.2 25.8 8.18 8.19 8.21 8.25 8.27 8.20 8.18 8.12 .94 .98 .95 .89 .88 .88 .85 .85 22.8 23.0 23.1 23.1 22.8 22.8 22.8 23.3 70.3 71.5 71.5 71.7 71.7 71.5 71.5 71.9 30.5 30.5 31.0 30.4 29.7 29.0 29.9 30.7 21.1 21.5 21.7 21.4 21.0 20.5 21.1 21.7 8.03 7.74 7.52 7.37 7.36 7.38 .92 1.00 .83 .73 .71 .73 25.8 26.2 25.9 26.3 26.1 26.3 73.3 73.9 73.7 73.6 74.0 73.6 36.2 37.0 35.9 36.0 36.7 37.4 26.4 26.2 26.0 26.2 26.7 27.2 7.94 7.67 7.47 7.34 7.33 7.39 .82 .79 .77 .75 .71 .73 23.5 24.0 24.1 24.2 24.0 24.3 72.5 73.1 73.5 73.6 73.2 73.2 30.7 31.1 31.7 31.8 32.3 32.9 22.0 22.5 23.0 23.1 23.3 28.8 July............. Aug............. Sept............. Oct.............. Nov............. Dec............. 1971—Jan.............. Feb.............. Mar............. Apr.............. June............ For notes see opposite page. A 38 STOCK M AR KET C R E D IT □ A U G U S T 1971 REGULATORY STATUS OF MARGIN ACCOUNT DEBT AT BROKERS STOCK MARKET CREDIT (In millions of dollars) End of period (Per cent of total adjusted debt, except as noted) Cus Credit extended to Cus tomers’ Net margin customers by— tomers’ credit net ex net free tended debit credit bal by Brokers Banks Total ances bal ances brokers Adjusted debt/collateral value (per cent) End of period Under 20 20-29 30-39 2.290 2.290 2.300 2.330 2,270 2,320 2.330 6,150 6,090 6,110 6,250 6,280 6,332 6,360 4,000 4,090 4,300 4,530 4,620 4,720 2.300 2.330 2,360 2.340 2.340 2,390 6,300 6,420 6,660 6,870 6,960 7,110 1971—Jan .. Feb.. M ar.. Apr.., May. June. 5,281 2,009 (4) 52,180 2,083 (4) 2,236 (4) 2,163 (4) 2,197 (4) 2,286 (4) (4) (4) (4) ( 4) (4) (4) 3,272 (4) (4) (4) ( 4) (4) ( 4) 2,452 2,743 2,798 2,660 2,550 2,440 (4) ( 4) ( 4) (4) (4) (4) 1End-of-month data. Total amount of credit extended by member firms of the N.Y. Stock Exchange in margin accounts, excluding credit extended on convertible bonds and other debt instruments and in special subscrip tion accounts. 2 Figures are for last Wed. of month for large commercial banks re porting weekly and represent loans made to others than brokers or dealers for the purpose of purchasing or carrying securities. Excludes loans col lateralized by obligations of the U.S. Govt. 3 Change in series. From Jan. 1966 to June 1970 the total of brokerextended margin credit was estimated by expanding the total of such credit extended by a small sample of N.Y. Stock Exchange member firms according to the proportion of total Customers’ net debit balances ex tended by these firms. Beginning with June 30, 1970, total broker-extended margin credit is derived from reports by the majority of N.Y. Stock Ex change member firms that carry margin accounts for customers; these firms, as a group, account for nearly all such credit extended by members of that exchange. 4 Series discontinued. 5 Change in series. N o t e .—Customers’ net debit and free credit balances are end-of-month ledger balances as reported to the New York Stock Exchange by all member firms that carry margin accounts. They exclude balances carried for other member firms of national securities exchanges as well as balances of the reporting firm and of its general partners. Net debit balances are total debt owed by those customers whose combined accounts net to a debit. Free credit balances are in accounts of customers with no unfulfilled commitments to the broker and are subject to withdrawal on demand. Net credit extended by brokers is the difference between customers’ net debit and free credit balances since the latter are available for the brokers’ use until withdrawn. EQUITY STATUS OF MARGIN ACCOUNT DEBT AT BROKERS End of period 1.3 1.1 .7 .6 .7 1.0 .0 1.0 1.0 1.1 1.1 1.0 0.9 .3 23.3 32.7 37.8 45.5 38.4 39.0 47.0 24.9 16.7 14.3 12.0 18.0 16.4 13.7 9.4 9.0 9.2 8.9 9.2 9.7 9.5 40.1 39.5 36.9 31.9 32.6 33.0 29.4 8,490 8,610 8,580 8,900 8,780 8,570 8,140 1971—Jan. . F eb .. Mar.. A pr.. May. June. .0 .0 .0 .2 .0 .3 .4 .4 .5 .4 0.3 .2 55.1 56.2 58.4 60.6 54.0 47.4 12.5 13.2 12.7 12.1 17.9 23.1 8.4 7.7 6.7 6.0 6.8 7.6 23.6 22.5 21.6 20.7 20.9 21.3 8,180 8,410 8,820 9,200 8,990 9,030 i Debt representing more than 30 per cent but less than 35 per cent of collateral value is unrestricted as of May 6, 1970, but is not separable from the remainder of this category. N ote .—Adjusted debt is computed in accordance with requirements set forth in Regulation T and often differs from the same customer’s net debit balance mainly because of the inclusion of special miscellaneous accounts in adjusted debt. Collateral in the margin accounts covered by these data now consists exclusively of stocks listed on a national securities exchange. Unrestricted accounts are those in which adjusted debt does not exceed the loan value of collateral; accounts in all classes with higher ratios are restricted. SPECIAL MISCELLANEOUS ACCOUNT BALANCES AT BROKERS, BY EQUITY STATUS OF ACCOUNTS (Per cent of total, except as noted) End of period July...................... Equity class (per cent) 80 or more 70-79 60-69 50-59 40-49 Under 40 3,860 3,800 3,810 3,920 4,010 4,010 4,030 8.3 8.1 10.7 11.4 9.9 10.4 11.0 12.4 15.1 15.1 18.3 15.2 14.8 16.1 18.8 21.1 22.9 24.4 25.5 26.1 27.1 15.7 16.0 16.6 16.7 16.9 17.5 16.8 13.5 13.8 13.6 13.1 14.3 14.1 13.5 31.4 25.8 21.1 16.0 18.2 17.2 15.5 1971—Jan. . F e b .. Mar.. A pr.. May. June. 4,000 4,090 4,300 4,530 4,620 4,720 12.1 11.4 11.8 11.8 10.6 9.6 19.6 19.5 20.0 20.3 15.7 14.4 28.3 31.1 33.0 35.0 36.7 34.9 17.1 16.3 16.2 15.0 18.0 20.1 10.0 9.3 7.2 6.2 7.4 8.6 12.8 12.3 11.8 11.7 11.6 12.2 i See note 1 to table above. N ote .—Each customer’s equity in his collateral (market value of col lateral less net debit balance) is expressed as a percentage of current col lateral values. 1971—Jan........................ Feb....................... May...................... June..................... 1970—June. July.. Aug.. Sept.. Oct... Nov.. D ec.. 60 or more 1970—June. July.. Aug.. Sept.. Oct... Nov.. D ec.. (Per cent of total debt, except as noted) Total debt (mil lions of dol lars) 1 50-59 Restricted i Unrestricted 1 970-June............... July............... ..3,800 Aug.................. 3,810 Sept..................3,920 Oct................. ..4,010 Nov..................4,010 Dec................ ..4,030 40-49 Total ad justed debt (mil lions of dol lars) Net credit status Equity class of accounts in debit status Total balance (millions 60 per cent Less than of dollars) or more 60 per cent 49.5 47.5 46.7 46.6 46.2 45.5 48.2 39.1 40.5 42.6 44.5 43.9 43.9 42.3 11.4 11.9 10.7 9.0 9.9 10.6 9.4 4,550 4,390 4.430 4,480 4.430 4,240 4,030 49.2 49.1 48.6 46.8 46.5 45.1 43.6 44.2 45.5 48.1 47.1 47.8 7.2 6.7 5.9 5.1 6.4 7.0 4,260 4,380 4,400 4,500 4,400 4,250 N ote .—Special miscellaneous accounts contain credit balances that may be used by customers as the margin deposit required for additional purchases. Balances may arise as transfers based on loan values of other collateral in the customer’s margin account or deposits of cash (usually sales proceeds) occur. AUGUST 1971 □ SAVINGS INSTITUTIONS A 39 MUTUAL SAVINGS BANKS (In millions of dollars) Loans End of period Mort gage Other Securities U.S. Govt. Corpo Cash rate and other1 State and local govt. Other assets Total assets— Total liabili Depos its2 ties and general reserve accts. Mortgage loan commitments 3 classified by maturity (in months) Other General liabili reserve ac ties counts 3 or less 3-6 6-9 Over 9 Total 1963............... 1964............... 1965............... 1966............... 36,007 40,328 44,433 47,193 607 739 862 1,078 5,863 5,791 5,485 4,764 440 391 320 251 5,074 5,099 5,170 5,719 912 1,004 1,017 953 799 886 944 1,024 49,702 54,238 58,232 60,982 44,606 48,849 52,443 55,006 943 989 1,124 1,114 4,153 4,400 4,665 4,863 1967............... 1968............... 1969............... 50,311 53,286 55,781 1,203 1,407 1,824 4,319 3,834 3,296 219 8,183 194 10,180 200 10,824 993 996 912 1,138 1,256 1,307 66,365 71,152 74,144 60,121 64,507 67,026 1,260 1,372 1,588 4,984 5,273 5,530 742 811 584 982 799 2,523 1,034 1,166 3,011 485 452 946 2,467 1970—June... Ju ly ... Aug.... Sept.. . Oct.. . . N ov.... D ec.r . 56,644 56,804 56,986 57,202 57,398 57,473 57,775 2,131 2,239 2,249 2,240 2,291 2,332 2,255 3,214 3,241 3,271 3,281 3,215 3,219 3,151 197 196 197 197 207 205 197 11,766 11,945 12,099 12,222 12,243 12,378 12,876 956 920 972 1,001 1,035 1,112 1,270 1,404 1,459 1,464 1,459 1,465 1,483 1,471 76,312 76,804 77,238 77,602 77,855 78,202 78,995 68,724 69,039 69,222 69,817 70,093 70,361 71,580 1,957 2,121 2,327 2,087 2,051 2,111 1,690 5,631 5,643 5,689 5,698 5,712 5,730 5,726 646 665 603 635 596 564 619 474 457 406 334 338 315 322 363 351 332 266 274 311 302 1971—Jan .. . . 58,014 F eb .... 58,194 M ar... 58,540 Apr... . 58,796 M ay... 59,111 Ju n e... 59,488 2,365 2,592 2,636 2,727 2,813 2,686 3,196 3,328 3,356 3,340 3,441 3,418 206 222 246 278 330 311 13,457 13,919 14,882 15,519 16,070 16,675 1,129 1,270 1,287 1,254 1,261 1,281 1,564 1,575 1,635 1,656 1,659 1,633 79,930 81,100 82,581 83,570 84,686 85,493 72,441 73,366 75,002 75,824 76,656 77,628 1,739 1,926 1,746 1,882 2,116 1,944 5,750 5,809 5,832 5,863 5,914 5,921 638 723 840 993 1,152 1,118 322 352 413 445 470 517 285 705 1,950 283 790 2,148 864 2,439 322 360 1,005 2,804 385 1,171 3,178 342 1,244 3,222 1 Also includes securities of foreign governments and international organizations and nonguaranteed issues of U.S. Govt, agencies. 2 See note 8, p. A-19. 3 Commitments outstanding of banks in New York State as reported to the Savings Banks Assn. of the State of New York. Data include building loans beginning with Aug. 1967. 2,549 2,820 2,697 2,010 707 678 715 691 666 662 688 2,190 2,151 2,057 1,926 1,875 1,852 1,931 N ote . —National Assn. of Mutual Savings Banks data; figures are estimates for all savings banks in the United States and differ somewhat from those shown elsewhere in the B u l l e t in ; the latter are for call dates and are based on reports filed with U.S. Govt, and State bank supervisory agencies. Loans are shown net of valuation reserves. LIFE INSURANCE COMPANIES (In millions of dollars) Government securities End of period Total assets Total Business securities United State and Foreign1 Total local States Bonds Stocks Mort gages Real estate Policy loans Other assets Statement value: 1963. 1964, 1965, 1966. 1967 1968. 141,121 149,470 158,884 167,022 177,832 188,636 12,438 12,322 11,679 10,837 10,573 10,509 5,813 5,594 5,119 4,823 4,683 4,456 3,852 3,774 3,530 3,114 3,145 3,194 2,773 2,954 3,030 2,900 2,754 2,859 60,780 63,579 67,599 69,816 76,070 82,127 53,645 55,641 58,473 61,061 65,193 68,897 7,135 7,938 9,126 8,755 10,877 13,230 50,544 55,152 60,013 64,609 67,516 69,973 4,319 4,528 4,681 4,883 5,187 5,571 6,655 7,140 7,678 9,117 10,059 11,306 6,385 6,749 7,234 7,760 8,427 9,150 Book value: 1966. 1967 1968, 1969. 167,022 177,361 187,695 197,208 10,864 10,530 10,483 10,914 4,824 4,587 4,365 4,514 3,131 2,993 3,036 3,221 2,909 2,950 3,082 3,179 68,677 73,997 79,403 84,566 61,141 65,015 68,575 70,859 7,536 8,982 10,828 13,707 64,661 67,575 70,071 72,027 4,888 5,188 5,573 5,912 9,911 10,060 11,284 13,825 8,801 11,011 10,881 9,964 1970—A pr.r ........................... May r ........................... June............................. July............................. Aug.............................. Sept.............................. Oct............................... Nov.............................. Dec.............................. 199,574 199,598 199,683 201,002 201,918 203,148 203,922 205,064 206,193 10,872 10,931 10,788 11,071 11,090 11,004 11,029 11,049 10,967 4,446 4,500 4,401 4,650 4,653 4,561 4,565 4,588 4,494 3,231 3,235 3,222 3,251 3,255 3,265 3,277 3,281 3,285 3,195 3,196 3,165 3,170 3,182 3,178 3,187 3,180 3,188 85,346 84,909 84,656 85,404 85,841 86,675 87,099 87,755 88,183 71,954 72,099 71,894 72,200 72,497 72,915 73,389 73,644 73,123 13,392 12,810 12,762 13,204 13,344 13,760 13,710 14,111 15,060 72,846 73,024 73,165 73,352 73,427 73,540 73,728 73,848 74,345 6,042 6,077 6,103 6,144 6,158 6,202 6,255 6,311 6,362 14,771 14,967 15,180 15,354 15,517 15,674 15,813 15,918 16,025 9,697 9,690 9,791 9,677 9,885 10,053 9,998 10,183 10,311 1971- 208,206 209,885 211,500 212,698 213,414 11,027 11,126 11,023 10,946 10,954 4,557 4,632 4,540 4,454 4,433 3,298 3,319 3,335 3,375 3,403 3,172 3,175 3,148 3,117 3,118 90,127 91,038 92,629 93,756 94,197 74,326 74,696 75,192 75,604 76,096 15,801 16,342 17,437 18,152 18,101 74,370 74,437 74,516 74,536 74,552 6,341 6,453 6,485 6,535 6,591 16,109 16,220 16,293 16,370 16,433 10,232 10,611 10,554 10,555 10,687 Feb............................... Mar.............................. Apr............................... M ay............................. 1 Issues of foreign governments and their subdivisions and bonds of Year-end figures: Annual statement asset values, with bonds carried the International Bank for Reconstruction and Development. on an amortized basis and stocks at year-end market value. Month-end figures: Book value of ledger assets. Adjustments for interest due and N ote .— Institute of Life Insurance data; figures are estimates for all accrued and for differences between market and book values are not made life insurance companies in the United States. on each item separately but are included in total, in “Other assets.” A 40 SAVINGS INSTITUTIONS □ AUGUST 1971 SAVINGS AND LOAN ASSOCIATIONS (In millions of dollars) Assets End of period Other2 Total assets— Total liabilities 3,315 3,926 3,979 4,015 3,900 3,366 3,442 2,962 2,439 4,775 5,346 6,191 7,041 7,960 8,378 9,107 9,571 8,620 12,097 12,742 12,826 12,850 13,277 13,340 13,058 2,643 2,404 2,413 2,455 2,715 3,155 3,520 15,506 16,805 18,335 18,302 18,650 18,624 2,930 3,249 3,376 3,146 3,000 2,781 Mort gages Invest ment secur ities 1 196 1 196 2 196 3 196 4 196 5 196 6 196 7 196 8 1969 5........... 68,834 78,770 90,944 101,333 110,306 114,427 121,805 130,802 140,347 5,211 5,563 6,445 6,966 7,414 7,762 9,180 i 11,116 10,893 1970 5—June. July.. Aug.. Sept., O ct.. Nov. Dec.. 143,241 144,320 145,434 146,556 147,712 148,896 150,562 1971 —Jan.., Feb.. Mar.. Apr.. M ay 1 June^ 151,503 152,665 154,430 156,574 158,747 161,362 Cash Mortgage loan commitments4 Liabilities Savings capital Reserves and un divided profits Bor rowed money3 Loans in process 82,135 93,605 107,559 119,355 129,580 133,933 143,534 152,890 162,299 70,885 80,236 91,308 101,887 110,385 113,969 124,531 131,618 135,670 5,708 6,520 7,209 7,899 8,704 9,096 9,546 10,315 11,239 2,856 3,629 5,015 5,601 6,444 7,462 4,738 5,705 9,728 1,550 1,999 2,528 2,239 2,198 1,270 2,257 2,449 2,455 1,136 1,221 1,499 1,729 1,849 2,136 2,462 2,803 3,207 807 1,872 2,193 2,572 2,549 2,707 1,482 3,004 3,584 2,812 9,052 8,999 9,091 9,182 9,248 9,356 9,434 167,033 168,465 169,764 171,043 172,952 174,747 176,574 138,814 139,357 139,907 141,734 142,825 143,928 146,744 11,620 11,617 11,615 11,609 11,588 11,592 12,012 10,480 10,555 10,622 10,705 10,721 10,691 10,942 2,461 2,530 2,581 2,679 2,747 2,838 3,087 3,658 4,406 5,039 4,316 5,071 5,698 3,789 1,544 1,700 1,531 1,628 1,711 1,628 1,602 4,038 4,333 4,303 4,354 4,539 4,633 4,393 9,386 9,524 9,668 9,831 10,087 10,142 179,325 182,243 185,809 187,853 190,484 192,909 149,298 151,742 155,845 158,061 160,221 163,307 12,056 12,062 12,044 12,031 12,035 12,349 10,494 10,097 9,838 8,631 7,774 7,900 3,055 3,161 3,500 3,877 4,336 4,734 4,422 5,181 4,577 5,253 6,118 4,619 1,665 2,069 3,130 3,370 3,505 3,517 4,565 5,225 6,445 7,359 8,300 8,542 1 U.S. Govt, securities only through 1967. Beginning 1968 the total reflects liquid assets and other investment securities. Included are U.S. Govt, obligations, Federal agency securities, State and local govt, securi ties, time deposits at banks, and miscellaneous securities, except FHLBB stock. Compensating changes have been made in “Other assets.” 2 Includes other loans, stock in the Federal home loan banks, other investments, real estate owned and sold on contract, and office buildings and fixtures. See also note 1. 3 Consists of advances from FHLBB and other borrowing. 4 Insured savings and loan assns. only. Data on outstanding commit Other Outstand ing at end of period Made during period ments are comparable with those shown for mutual savings banks (on preceding page) except that figures for loans in process are not included above but are included in the figures for mutual savings banks. 5 Balance sheet data for all operating savings and loan associations were revised by the Federal Home Loan Bank Board for 1969 and 1970. N ote .— Federal Home Loan Bank Board data; figures are estimates for all savings and loan assns. in the United States. Data are based on monthly reports of insured assns. and annual reports of noninsured assns. Data for current and preceding year are preliminary even when revised. MAJOR BALANCE SHEET ITEMS OF SELECTED FEDERALLY SPONSORED CREDIT AGENCIES (In millions of dollars) Federal home loan banks End of period Assets Liabilities and capital Ad vances to mem bers Invest ments Cash and de posits 1967............. 1968............. 1969.............. 1970............. 4,386 5,259 9,289 10,614 2,598 2,375 1,862 3,864 127 126 124 105 4,060 4,701 8,422 10,183 1,432 1,383 1,041 2,332 1970—June.. July. . Aug... Sept... O ct... Nov... Dec... 10,236 10,372 10,445 10,524 10,539 10,524 10,614 2,844 2,704 2,729 2,722 2,658 3,204 3,864 106 70 99 109 84 135 105 9,880 10,029 10,091 10,089 10,090 9,838 10,183 10,326 1971—Jan. Feb... 9,926 Mar. . 9,689 Apr... 8,269 M ay.. 7,268 Ju n e.. 7,241 4,101 4,187 4,322 4,235 4,400 3,718 112 105 116 192 96 132 9,836 9,182 8,756 7,876 7,419 7,329 Bonds and notes Mem ber de posits Banks for cooperatives Federal intermediate credit banks Mort gage loans (A) Deben Loans to tures Deben and cooper tures notes atives (A) (L) (L) Loans and dis counts (A) Deben tures 1 ,395 1,402 1,478 1,607 5,348 6,872 10,541 15,502 4,919 6,376 10,511 15,206 1,506 1,577 1,732 2,030 1,253 1,334 1,473 1,755 1,333 1,194 1,244 1,340 1,499 1,981 2,332 1,586 1,592 1,595 1,598 1,598 1,601 1,607 13,659 14,085 14,452 14,815 14,702 15,397 15,502 13,165 13,401 13,976 14,396 14,702 15,067 15,206 1,749 1,762 1,778 1,852 1,973 2,020 2,030 2,751 3,094 3,425 2,828 2,379 2,112 1,599 1,619 1,628 1,627 1,620 1,602 15,619 15,552 15,420 15,308 15,242 15,363 15,311 15,111 15,122 15,477 15,142 14,795 2,119 2,164 2,153 2,113 2,056 2,041 Capital stock N ote .—Data from Federal Home Loan Bank Board, Federal National Mortgage Assn., and Farm Credit Admin. Among omitted balance sheet items are capital accounts of all agencies, except for stock of FHLB’s. Bonds, debentures, and notes are valued at par. They include only publicly Federal National Mortgage Assn. (secondary market operations) Federal land banks Bonds (L) Mort gage loans (A) 3,411 3,654 4,275 4,974 3,214 3,570 4,116 4,799 5,609 6,126 6,714 7,186 4,904 5,399 5,949 6,395 1,509 1,518 1,537 1,537 1,601 1 ,700 1,755 5,097 5,034 5,015 4,998 4,972 4,934 4,974 4,879 4,980 4,918 4,839 4,818 4,767 4,799 6,995 7,026 7,061 7,101 7,137 7,156 7,186 6,179 6,259 6,339 6,339 6,395 6,395 6,395 1,786 1,819 1,819 1,900 1,830 1,770 5,055 5,177 5,380 5,568 5,729 5,909 4,845 4,959 5,077 5,336 5,468 5,639 7,210 7,258 7,347 7,426 7,502 7,579 6,395 6,645 6,645 6,700 6,640 6,640 (L) offered securities (excluding, for FHLB’s bonds held within the FHLB System) and are not guaranteed by the U.S. Govt.; for a listing of these securities, see table below. Loans are gross of valuation reserves and represent cost for FNMA and unpaid principal for other agencies. 1ST 1971 □ FED ERALLY SPONSORED C R ED IT AGENCIE G ISSUES OF FEDERALLY SPONSORED AGENCIES, JUNE 30, 1971 Amount (millions of dollars) 428 583 338 250 200 300 200 250 350 400 400 450 300 250 300 184 233 250 265 300 350 200 350 200 1,544 250 200 400 250 200 400 63 200 250 96 Agency, and date of issue and maturity Cou Amount pon (millions rate of dollars) Federal National Mortgage Association—Cont. Debentures—Cont: 9/10/68 - 9/10/71........ 6/10/70 - 10/21/71___ 5/10/69 - 11/10/71 3/10/70 - 12/10/71___ 2/10/60 - 2/10/72........ 3/10/69 - 3/10/72........ 10/14/69 -3 /1 0 /7 2 . . .. 12/11/61 - 6/12/72.. .. 2/10/70 - 6/12/72........ 5/11/70 - 9/11/72........ 6/10/70 - 9/11/72........ 11/10/69 - 12/11/72... 10/13/70 - 12/11/72. . . 11/10/70 - 3/12/73___ 12/12/69 - 3/12/73. . .. 6/12/61 - 6/12/73........ 7/10/70 - 6/12/73........ 3/10/70 - 9/10/73........ 6/10/71 -9/10/73.......... 12/10/70 - 12/10/73. . . 4/10/70 - 3/11/74........ 8/5/70 - 6/10/74......... 9/10/69 - 9/10/74........ 2/10/71 - 9/10/74.......... 5/10/71 - 12/10/74........ 11/10/70 - 3 /1 0 /7 5 .... 4/12/71 -6/10/75.......... 10/13/70 - 9/10/75. . .. 3/11/71 - 3/10/76.......... 6/10/71 -6/10/76.......... 2/13/62 - 2/10/77........ 12/10/70 - 6/10/77. . . . 5/10/71 - 6/10/77.......... 1/21/71 - 6/10/81........ 2/10/71 - 6/10/82.......... 3/11/71 - 6/1Q/83.......... 4/12/71 -6/11/84.......... 5% 8.45 6.85 6% 5H 6% 6% 4M 8.70 8.40 7.40 8.00 7.20 7.30 8.30 4% 8.35 8.10 6.13 5.75 7.75 7.90 7.85 5.65 6.10 7.55 5.25 7.50 5.65 6.70 4V4 6.38 6.50 7.25 6.65 6.75 6.25 350 500 350 500 98 250 200 100 300 400 200 200 400 450 250 146 350 300 350 300 350 400 250 300 250 300 500 350 500 250 198 250 150 250 250 200 200 Banks for cooperatives Debentures: 1/4/71 - 7/1/71... 2 /1 /7 1 -8 /2 /7 1 .... 4/1/71 - 10/4/71.. . 5/3/71 - 11/1/71... 6/1/71 - 12/1/71 .. . 10/1/70 - 10/1/73. 5.25 4.50 3.70 4.45 5% 7.30 340 423 342 271 294 100 Agency, and date of issue and maturity illioi iolla Federal intermediate credit banks Debentures: 10/1/70 - 7/1/71___ 11/2/70 - 8 /2 /7 1 .... 12/1/70 - 9/1/71___ 1/4/71 - 10/4/71.... 2/1/71 - 11/1/71........ 3/1/71 - 12/1/71........ 4/1/71 - 1/3/72.......... 5/3/71 -2 /1 /7 2 .......... 6/1/71 - 3/1/72.......... 3/2/70 - 3/1/73........ 9/1/70-7/2/73.......... 1/4/71 - 7/1/74........ Federal land banks Bonds: 2/15/57 - 2/15/67-72 7/15/69 - 7/20/71. . . 10/20/69 - 7/20/71 . . 10/20/68 - 10/20/71. 8/20/68 - 2/15/72. . . 2/23/71 - 4/20/72... . 4/20/71 -4 /2 0 /7 2 ... . 6/22/70 - 7/20/72. . . 9/14/56 - 9/15/72. . . 9/22/69 - 9/15/72. . . 10/23/72 - 10/23/72. 7/20/70 - 1/22/73. . . 2/20/63 - 2/20/73-78 1/20/70 - 7/20/73.. . 8/20/73 - 7/20/73.... 4/20/70 - 10/22/73. . 2/20/72 - 2/20/74.. . 10/20/70 - 4/22/74. . 4/20/71 - 10/21/74... 2/20/70 - 1/20/75. . . 4/20/65 - 4/21/75. .. 2/21/66 - 2/24/76... 7/20/66 - 7/20/76... 5/2/66 - 4/20/78___ 2/20/67 - 1/22/79. . . 2/23/71 -4/20/81. .. . by the U.S. Govt.; see also note to table at bottom of opposite page. 547 584 432 423 696 623 691 580 436 203 200 224 43^ 8.15 8.45 6.00 5.70 4.45 4% 8.20 3K 8.35 5K 7.95 43^ 8.45 7.95 7.80 4% 7.30 5.30 72 270 232 447 230 300 437 442 109 337 200 407 148 198 350 300 155 354 300 220 5.00 5H 5H 5.00 6.70 200 123 150 150 285 224 A 42 FEDERAL FINANCE □ AUGUST 1971 FEDERAL FISCAL OPERATIONS: SUMMARY (In millions of dollars) U.S. budget Means of financing Receipt-expenditure account Period Budget receipts Net ex pendi tures Fiscal year: 196 8 196 9 197 0 1971p................... 153,671 187,784 193,743 188,332 172,802 183,072 194,456 210,653 Half year: 1969—July-Dee.. 1970—Jan.-June. July-Dee.. 1971—Jan.-June^ Borrowings from the public : Net lend ing Budget out lays1 Budget surplus or deficit (-) Less: Invest Public Plus Equals: Trea ments by Govt, Less: debt Agency accounts Total sury securi securi Special borrow operat ties ties notes3 ing ing Special Other balance issues 178,833 -25,161 21,357 5,944 3,236 6,142 633 184,548 196,588 -2,8 4 5 17,198 -1,739 211,574 -23,242 27,211 -347 3,271 7,364 9,386 6,616 90,833 97,563 102,910 96,893 87,562 104,084 100,770 106,569 1,364 98,927 -8 ,0 9 3 14,505 -429 767 97,661 5,248 2,693 -1,310 -1 9 99 104,183 -16,621 18,240 824 107,392 -6 ,6 2 0 8,971 -328 3,935 5,451 1,807 4,810 330 346 157 642 M onth: 1970—Jun e July.......... Aug.......... Sept.......... Oct........... Nov.......... Dec........... r22,527 '14,837 12,609 19,344 15,172 17,429 18,725 17,329 11,493 17,490 14,134 16,616 15,429 15,876 r468 *•15,303 *•7,222 -169 -1 7 19,327 -6 ,7 1 8 5,649 66 17,495 -2 ,3 2 3 4,333 114 17,443 1,281 -2,223 150 17,640 -6 ,1 4 7 1,522 112 16,728 -2 ,5 9 4 3,440 -1 2 1 -326 15,550 5,519 -160 r3,010 -233 -3 8 -3 1,539 12 -8 9 0 -1 7 -1,178 -5 81 31 2,487 1971—Ja..............n Feb........... Mar.......... Apr........... May.......... June*1........ 15,773 15,130 13,205 21,024 13,190 22,449 1,013 16,870 16,717 18,328 17,769 16,882 20,003 6,030 1,476 2,131 922 245 -170 318 49 270 112 17.115 16,546 18,646 17,818 17,152 20.115 -1,341 -1 ,4 1 7 -5,441 3,206 -3,961 2,334 Less: Cash and monetary assets -818 2,324 1,003 223 4,954 1,285 - 1,001 518 -345 40 -553 -551 1,464 522 221 2,095 1,059 2,049 -1,119 23,100 2,089 -1,384 -1 ,2 9 5 5,397 676 19,448 800 Other means of financ ing, net4 Other -397 596 2,151 710 1,700 1,616 -581 -979 9,811 -4 ,4 1 5 16,257 3,191 -767 2,918 54 657 315 -896 -952 54 -176 -153 76 27 122 48 38 r —3,164 5,997 2,716 -1 ,3 4 7 2,561 3,306 3,024 2,034 —646 -5 8 1,497 -2,383 -429 2,185 *•502 -386 -367 7 -192 -71 -5 4 86 -382 324 -7 1 702 -1 7 660 240 675 -271 2,197 -3 1 0 1,518 -1,718 -3,370 4,365 -1,973 1,835 654 -193 57 527 -723 -268 3,364 269 -9 8 2 3,526 - 2,170 1,188 -5 3 4 4,141 - 1,522 -312 -818 1,570 - 1,011 1,21 2 -7 7 2 2,854 -7 3 4 1,453 1,957 -931 -458 Selected balances Federal securities Treasury operating balance End of period F.R. Banks Tax and loan accounts Gold balance Total Public debt securities Agency securities Less: Investments of Govt, accounts Special issues Other Less: Special notes3 Equals: Total held by public Memo : Debt of Govt.sponsored corps.— Now private 5 Fiscal year: 196 8 196 9 197 0 1971^........... 1,074 1,258 1,005 1,274 4,113 4,525 6,929 7,372 111 112 111 109 5,298 5,894 8,045 8,755 347,578 353,720 370,919 398,130 24,399 14,249 12,510 12,163 59,374 66,738 76,124 82,740 19,766 20,923 21,599 22,400 2,209 825 825 825 290,629 279,483 284,880 304,328 10,041 24,991 35,789 N.A. Calendar year: 196 9 197 0 1,312 1,156 3,903 6,834 112 109 5,327 8,099 368,226 389,158 13,820 12,491 70,677 77,931 21,250 21,756 825 825 289,294 301,138 30,578 1,005 6,929 6,087 6,174 7,489 5,424 5,217 6,834 111 111 1,056 1,238 920 587 1,156 109 8,045 7,399 7,341 8,839 6,455 5,914 8,099 370,919 376,568 380,901 378,678 380,200 383,640 389,158 12,510 12,471 12,469 12,481 12,465 12,460 12,491 76,124 75,891 77,431 76,541 75,363 75,444 77,931 21,599 21,446 21,521 21,548 21,669 21,717 21,756 825 825 825 825 825 825 825 284,880 290,877 293,593 292,246 294,808 298,113 301,138 35,762 36,398 37,116 37,404 37,811 38,252 38,802 976 1,064 858 1,322 874 1,274 8,532 6,725 3,561 7,462 5,938 7,372 109 109 109 109 109 109 9,616 7,898 4,528 8,893 6,920 8,755 388,341 390,664 391,668 391,891 396,845 398,130 13,504 12,503 13,021 12,676 12,716 12,163 77,380 78,843 79,366 79,586 81,681 82,740 21,842 21,461 21,784 21,714 22,417 22,400 825 825 825 825 825 825 301,798 302,038 302,713 302,442 304,638 304,328 38.693 38,183 37,814 38.694 37,275 N.A. Month: 1970—June. July.. Aug.. Sept.. Oct... N ov.. Dec.. 1971—Ja n .... Feb ... M ar... A pr..., M ay.., JuneP. 1,200 111 111 111 110 1 Equals net expenditures plus net lending. 2 The decrease in Federal securities resulting from conversion to private ownership of Govt.-sponsored corporations (totaling $9,853 million) is not included here. In the bottom panel, however, these conversions de crease the outstanding amounts of Federal securities held by the public mainly by reductions in agency securities. The Federal National Mortgage Association (FNMA) was converted to private owership in Sept. 1968 and the Federal Intermediate Credit Banks (FICB) and Banks for Coopera tives in Dec. 1968. 3 Represents non-interest-bearing public debt securities issued to the International Monetary Fund and international lending organizations. New obligations to these agencies are handled by letters of credit. 4 Includes accrued interest payable on public debt securities, deposit funds, miscellaneous liability and asset accounts, and seigniorage. 5 Includes debt of Federal home loan banks, Federal land banks, R.F.K. Stadium Fund, FNMA (beginning Sept. 1968), FICB, and banks for cooperatives (beginning Dec. 1968). N o t e . —Half years may not add to fiscal year totals due to revisions in series which are not yet available on a monthly basis. AUGUST 1971 □ FEDERAL FINANCE A 43 FEDERAL FISCAL OPERATIONS: DETAIL (In millions of dollars) Budget receipts Corporation income taxes Individual income taxes Period Total With Non Re held with held funds Net total Social insurance taxes and contributions Employment taxes and Gross Re contributions1 Un- Other Net re empl. net re total ceipts funds Pay insur. ceipts2 Selfroll taxes empl. Excise Cus taxes toms Estate Misc. and re gift ceipts3 Fiscal year: 196 8 196 9 197 0 1971*................... 153,671 187,784 193,743 188,332 57,301 70,182 77,416 76,422 20,951 27,258 26,236 24,265 1,544 1,715 1,942 1,948 3,346 .3,328 3,465 3,686 2,052 2,353 2,700 3,202 34,622 39,918 45,298 48,587 14,079 15,222 15,705 16,629 2,038 2,319 2,430 2,590 3,051 3,491 3,644 3,709 2,491 2,908 3,424 3,847 Half year: 1969—July-Dee.. 1970—Jan.-June. July-Dee.. 1971—Jan.-June* 90,833 102,910 87,562 100,770 38,797 38,619 37,445 38,977 982 17,057 5,771 481 44,087 15,179 131 20,465 12,759 46,325 19,858 1,226 20,134 1,811 565 42,449 12,744 1,467 17,768 5,569 133 18,696 13,958 43,715 17,597 2,069 21,983 1,815 1,270 2,196 1,348 2,338 1,282 1,416 1,576 1,625 19,740 25,558 20,826 27,761 8,241 7,464 8,152 8,478 1,263 1,168 1,317 1,273 1,496 2,148 1,537 2,172 1,809 1,615 2,005 1,842 M onth: 1970—Jun e July.......... Aug.......... Sept.......... Oct........... Nov.......... Dec........... r22,527 12,609 15,172 18,725 11,493 14,134 15,429 ''5,991 3,797 477 6,040 333 6,985 5,907 3,623 497 5,667 216 7,007 422 5,838 458 236 100 81 55 42 50 328 293 224 234 262 239 285 '197 356 382 313 288 327 339 15,773 15,130 13,205 21,024 13,190 22,449 6,339 7,246 6,605 5,939 6,224 6,622 4,280 654 1,392 7,951 735 3,684 40 1,407 4,631 4,261 3,114 506 269 280 329 589 379 326 286 361 328 248 313 306 1971—Ja..............n Feb............ Mar........... Apr........... May........... June*......... 9,527 10,191 13,240 14,523 68,726 87,249 90,412 86,164 29,897 38,338 35,037 30,341 1,232 1,660 2,208 3,535 27,680 32,521 37,190 39,751 r9 ,329 7,517 6,281 1,071 666 7,219 9,449 4,543 6,110 1,089 711 7,181 6,209 4,664 188 234 182 265 420 187 179 3.294 2,745 4,494 2,521 2.311 3,474 70 186 587 47 106 374 50 278 255 249 270 280 259 265 3,769 3,185 5,330 2,962 2,697 4,107 2,545 1,367 1,439 1,309 1,272 1,237 1,549 1,346 207 218 223 218 231 207 10,579 6,493 3,366 9,630 3,846 9,801 558 310 363 345 255 236 2,178 113 165 141 721 4,835 3,472 152 77 3.294 1,085 301 209 1,005 4,893 69 3.311 115 264 248 288 290 258 277 2,720 5,944 3,990 4,970 6,366 3,773 1,195 1,505 1,443 1,351 1,459 1,525 199 175 226 1,085 683 3,887 4,360 878 6,705 2,222 127 123 ‘’ 9 220 221 204 249 Budget outlays4 Period Fiscal year: 196 8 196 9 197 0 1971*................... Educa Nat Com ComAgri tion Health mun. ural merce develop. cul and and re and ture sources and man transp. housing power welfare Total Na tional de fense 178,833 184,548 196,588 211,574 80,517 81,232 80,295 77,621 4,619 3,785 3,570 2,994 4,721 4,247 3,749 3,382 5,943 6,221 6,201 5,283 1,655 8,094 2,081 7,921 2,480 9,310 2,681 11,364 4,076 1,961 2,965 3,383 6,739 6,525 7,289 8,639 Intl. affairs Space re search 43,780 49,395 56,785 70,193 Vet erans 6,882 7,640 8,677 9,787 Inter est Gen eral govt. 13,744 15,791 18,312 19,660 2,561 2,866 3,336 3,920 Intragovt. trans ac tions5 -4 ,4 9 9 -5 ,1 1 7 -6 ,3 8 0 -7,3 7 5 229,232 77,512 4,032 3,151 5,804 4,243 10,937 4,495 8,808 76,749 10,644 19,687 Half year: 1969—July-Dee.. 1970—Jan.-June. July-Dee.. 1971—Jan.-June* 98,927 97,661 104,183 107,392 40,616 39,683 38,485 39,138 1,941 1,627 1,409 1,584 1,839 1,910 1,720 1,662 5,476 711 4,633 648 1,515 1,017 1,575 1,119 4,611 4,651 5,794 5,554 1,820 1,291 1,677 1,707 3,120 4,314 3,744 4,891 M onth: 1970—Jun e July.......... Aug.......... Sept.......... Oct........... Nov.......... Dec.......... rl5,305 19,327 17,495 17,443 17,640 16,728 15,550 '6,848 6,794 6,253 6,374 6,354 5,965 6,745 225 199 285 221 311 234 160 378 268 282 282 302 266 318 -8 8 2,430 720 44 927 422 90 r215 '1,008 843 208 371 885 337 1,231 316 1,105 283 898 832 59 291 471 259 268 234 132 314 rl ,152 '4,995 553 5,276 680 5,289 651 5,434 593 5,545 534 5,488 733 5,678 731 732 766 722 767 829 808 1,655 1,597 1,705 1,731 1,148 1,738 1,676 r372 -2 ,5 0 3 190 -2 3 4 346 -347 396 -2 5 0 334 -2 9 6 264 -3 2 4 294 -2 ,1 5 7 17,115 16,546 18,646 17,818 17,152 20,115 6,153 5,851 6,674 6,337 6,043 8,080 184 236 392 328 358 86 262 295 333 252 274 246 632 -8 9 -5 2 -21 94 84 373 217 206 286 230 395 676 686 912 683 752 1,182 768 797 964 883 877 874 1,631 1,695 1,709 1,683 1,667 1,678 367 -2 4 7 294 -3 5 7 399 -2 6 0 323 -2 9 4 361 -325 397 -2 ,2 8 3 1972c6................. 1971—Ja.............. n Feb........... Mar.......... Apr........... May......... June*........ 1 Old-age, disability, and hospital insurance, and Railroad Retirement accounts. 2 Supplementary medical insurance premiums and Federal employee retirement contributions. 3 Deposits of earnings by Federal Reserve Banks and other miscellane ous receipts. 4 Outlays by functional categories are published in the Monthly Treasury Statement (beginning April 1969). Monthly back data (beginning July 1968) are published in the Treasury Bulletin of June 1969. -409 234 230 250 255 559 826 759 1,000 1,015 707 1,247 26,063 30,432 32,710 37,486 5,899 5,929 6,139 6,093 5,858 7,568 4,148 8,623 4,537 9,687 4,625 9,594 5,163 10,063 4,970 -7,771 1,520 1,817 1,823 2,141 -2 ,3 6 5 -4 ,0 1 5 -3 ,6 0 6 -3 ,7 6 6 5 Consists of government contributions for employee retirement and interest received by trust funds. 6 Estimates presented in the Jan. 1971 Budget Document. Breakdowns do not add to totals because special allowances for contingencies, Federal pay increase, and allowance for revenue sharing, totaling $5,969 million for fiscal 1972, are not included. N o t e . —Half years may not add to fiscal year totals due to revisions in series which are not yet available on a monthly basis. A 44 U.S. GOVERNMENT SECURITIES □ AUGUST 1971 GROSS PUBLIC DEBT, BY TYPE OF SECURITY (In billions of dollars) Public issues Total gross public debt 1 End of period Marketable Total Total Bills 1941—Dec. 1946—Dec. 57.9 259.1 50.5 233.1 41.6 176.6 17.0 1965—Dec. 1966—Dec. 1967—Dec. 1968—Dec. 1969—Dec. 320.9 329.3 344.7 358.0 368.2 270.3 273.0 284.0 296.0 295.2 214.6 218.0 226.5 236.8 235.9 60.2 64.7 69.9 75.0 80.6 1970—July. Aug. Sept. Oct.. Nov. Dec. 376.6 380.9 378.7 380.2 383.6 389.2 298.5 301.4 300.1 302.9 306.0 309.1 237.8 240.5 239.3 242.2 244.4 247.7 81.4 81.9 80.7 83.7 84.6 87.9 1971—Jan.. Feb.. Mar. Apr.. May. June. July. 388.3 390.7 391.7 391.9 396.8 398.1 405.3 308.8 309.8 309.7 310.4 313.2 313.5 318.9 247.7 248.1 247.5 245.9 245.6 245.5 247.6 87.9 89.3 89.0 87.5 89.1 86.7 88.9 Certifi cates Notes 30.0 6.0 10.1 33.6 119.5 50.2 48.3 61.4 76.5 85.4 104.2 99.2 95.2 85.3 69.9 2.8 93.5 99.9 99.9 99.8 101.2 2.0 1 Includes non-interest-bearing debt (of which $626 million on July 31, 1971, was not subject to statutory debt limitation). 2 Includes Treasury bonds and minor amounts of Panama Canal and postal saving bonds. 3 Includes (not shown separately): depositary bonds, retirement plan bonds, foreign currency series, foreign series, and Rural Electrification Administration bonds; before 1954, Armed Forces leave bonds; before Con vert ible Bonds 2 bonds 5.9 101.2 101.2 104.3 104.3 104.3 102.5 104.8 104.8 Nonmarketable Sav ings Total 3 bonds & notes Special issues 4 8.9 56.5 49.8 6.1 7.0 24.6 2. 6 2.5 2.4 52.9 52.3 54.9 56.7 56.9 50.3 50.8 51.7 52.3 52.2 46.3 52.0 57.2 59.1 71.0 62.9 58.7 58.7 58.7 58.6 58.6 2.4 2.4 2.4 2.4 2.4 2.4 58.3 58.5 58.4 58.3 59.2 59.1 52.0 52.1 52.1 52.2 52.4 52.5 76.1 77.5 76.7 75.4 75.6 78.1 58.5 54.5 54.2 54.1 54.0 54.0 53.9 2.4 2.4 2.4 2.4 2.3 2.3 2.3 58.7 59.3 59.9 62.1 65.2 65.7 68.9 52.6 52.8 53.0 53.2 53.4 53.6 53.8 77.7 78.9 80.0 79.7 81.7 82.8 84.7 2.7 1956, tax and savings notes; and before Oct. 1965, Series A investment bonds. 4 Held only by U.S. Govt, agencies and trust funds and the Federal home loan banks. N ote .—Based on Daily Statement of U.S. Treasury. See also second paragraph in N ote to table below. OWNERSHIP OF PUBLIC DEBT (Par value, in billions of dollars) Held by private investors Held b y Total gross public debt U.S. Govt. agencies and trust funds F.R. Banks Total 1939—Dec................ 1946—Dec................ 41.9 259.1 6.1 27.4 2.5 23.4 1965—Dec................ 1966—Dec................ 1967—Dec................ 1968—Dec................ 1969—Dec................ 320.9 329.3 344.7 358.0 368.2 59.7 65.9 73.1 76.6 89.0 1970—June.............. July............... Aug............... Sept............... Oct................ Nov............... Dec................ 370.9 376.6 380.9 378.7 380.2 383.6 389.2 1971—Jan................. Feb................ Mar............... Apr................ May............... June.............. 388.3 390.7 391.7 391.9 396.8 398.1 End of period Mutual savings banks Insur ance com panies Other corpo rations State and local govts. 33.4 208.3 12.7 74.5 2.7 11.8 5.7 24.9 2.0 15.3 .4 6.3 1.9 44.2 7.5 20.0 .2 2.1 .3 9.3 40.8 44.3 49.1 52.9 57.2 220.5 219.2 222.4 228.5 222.0 60.7 57.4 63.8 66.0 56.8 5.3 4.6 4.1 3.6 2.9 10.3 9.5 8.6 8.0 7.1 15.8 14.9 12.2 14.2 13.3 22.9 24.3 24.1 24.4 25.4 49.7 50.3 51.2 51.9 51.8 22.4 24.3 22.8 23.9 29.1 16.7 14.5 15.8 14.3 11.4 16.7 19.4 19.9 22.4 24.1 95.2 94.8 96.4 95.5 94.4 94.6 97.1 57.7 58.6 59.9 60.0 60.0 61.2 62.1 218.0 223.2 224.6 223.2 225.8 227.9 229.9 r53.6 r5 4.3 r5 7.3 r5 6.3 '58.4 r59.3 r62.7 2.9 2.8 2.9 2.9 2.8 2.7 2.8 6.8 7.1 7.2 7.1 7.0 6.9 7.0 11.1 '12.1 '12.0 '10.4 '11.2 '10.9 '10.5 24.6 24.2 24.2 24.0 24.2 23.2 22.9 51.6 51.6 51.7 51.7 51.9 51.9 52.1 30.9 31.2 30.6 31.0 30.5 30.4 29.8 14.8 15.9 16.5 17.4 18.2 20.0 20.6 '22.8 '23.8 '21.9 '22.3 '21.7 '22.2 '21.4 96.7 98.0 98.8 99.1 101.8 102.9 61.8 62.5 64.2 63.7 64.8 65.5 229.9 230.2 228.7 229.1 230.2 229.7 '61.7 '61.3 '61.8 '60.5 '59.4 61.0 2.7 2.8 2.8 2.8 2.9 2.9 7.3 7.2 6.8 6.8 6.8 6.6 11.1 10.2 '10.7 '9.9 '9 .6 10.1 '23.2 '24.0 '22.8 '21.8 '21.8 21.4 52.1 52.3 52.5 52.8 53.0 53.2 '29.1 '28.3 '26.9 '26.2 '25.0 24.8 20.9 22.9 25.4 29.2 '33.8 32.7 '21.6 '21.1 18.9 '19.1 18.1 17.2 1 Consists of investments of foreign and international accounts in the United States. 2 Consists of savings and loan assns., nonprofit institutions, cor porate pension trust funds, and dealers and brokers. Also included are certain Govt, deposit accounts and Govt.-sponsored agencies. N o te—Reported data for F.R. Banks and U.S. Govt, agencies and trust funds; Treasury estimates for other groups. Individuals Com mercial banks Other Savings bonds securities Foreign Other and misc. inter inves national1 tors 2 The debt and ownership concepts were altered beginning with the Mar. 1969 B u l l e t i n . The new concepts (1) exclude guaranteed se curities and (2) remove from U.S. Govt, agencies and trust funds and add to other miscellaneous investors the holdings of certain Govt.-sponsored but privately-owned agencies and certain Govt, deposit accounts. AUGUST 1971 □ U.S. GOVERNMENT SECURITIES A 45 OWNERSHIP OF MARKETABLE SECURITIES, BY MATURITY (Par value, in millions of dollars) Within 1 year Type of holder and date Total Total Bills Other 1-5 years 5-10 years 10-20 years Over 20 years All holders: 1968—Dec. 31........................................................ 1969—Dec. 31........................................................ 1970—Dec. 31........................................................ 1971—May 31....................................................... June 30......................................................... 236,812 235,863 247,713 245,635 245,473 108,611 118,124 123,423 113,959 112,772 75,012 80,571 87,923 89,096 .86,677 33,599 37,553 35,500 24,863 26,095 68,260 73,301 82,318 88,003 89,074 35,130 20,026 22,554 24,501 24,503 8,396 8,358 8,556 8,472 8,455 16,415 16,054 10,863 10,699 10,670 U.S. Govt, agencies and trust funds: 1968—Dec. 31................................................ 1969—Dec. 31................................................ 1970—Dec. 31................................................ 1971—May 31................................................ June 30.................................................. 15,402 16,295 17,092 18,109 18,092 2,438 2,321 3,005 2,869 2,852 1,034 812 708 979 900 1,404 1,509 2,297 1,890 1,952 4,503 6,006 6,075 6,962 6,916 2,964 2,472 3,877 4,047 4,093 2,060 2,059 1,748 1,775 1,775 3,438 3,437 2,387 2,456 2,456 Federal Reserve Banks: 1968—Dec. 31................................................ 1969—Dec. 31................................................ 1970—Dec. 31................................................ 1971—May 31................................................ June 30.................................................. 52,937 57,154 62,142 64,764 65,518 28,503 36,023 36,338 34,344 35,117 18,756 22,265 25,965 27,237 27,929 9,747 13,758 10,373 7,107 7,188 12,880 12,810 19,089 23,645 23,601 10,943 7,642 6,046 5,896 5,907 203 224 229 316 323 408 453 440 564 570 Held by private investors: 1968—Dec. 31................................................ 1969—Dec. 31................................................ 1970—Dec. 31................................................ 1971—May 31................................................ June 30.................................................. 168,473 162,414 168,479 162,762 161,863 77,670 79,780 84,080 76,746 74,803 55,222 57,494 61,250 60,880 57,848 22,448 22,286 22,830 15,866 16,955 50,877 54,485 57,154 57,396 58,557 21,223 9,912 12,631 14,558 14,503 6,133 6,075 6,579 6,381 6,357 12,569 12,164 8,036 7,679 7,644 Commercial banks: 1968—Dec. 31........................................ 1969—Dec. 31........................................ 1970—Dec. 31......................................... 1971—May 31........................................ June 30.......................................... 53,174 45,173 50,917 47,059 47,231 18,894 15,104 19,208 13,977 13,756 9,040 6,727 10,314 7,364 6,907 9,854 8,377 8,894 6,613 6,849 23,157 24,692 26,609 26,785 27,264 10,035 4,399 4,474 5,696 5,592 611 564 367 359 363 477 414 260 243 255 Mutual savings banks: 1968—Dec. 31........................................ 1969—Dec. 31........................................ 1970—Dec. 31......................................... 1971—May 31........................................ June 30.......................................... 3,524 2,931 2,745 2,880 2,864 696 501 525 435 426 334 149 171 222 189 362 352 354 213 237 1,117 1,251 1,168 1,236 1,226 709 263 339 501 514 229 203 329 330 330 773 715 385 378 369 Insurance companies: 1968—Dec. 31......................................... 1969—Dec. 31......................................... 1970—Dec. 31......................................... 1971—May 31........................................ June 30.......................................... 6,857 6,152 6,066 5,851 5,668 903 868 893 683 595 498 419 456 439 303 405 449 437 244 292 1,892 1,808 1,723 1,653 1,622 721 253 849 945 924 1,120 1,197 1,369 1,410 1,382 2,221 2,028 1,231 1,161 1 ,146 Nonfinancial corporations: 1968—Dec. 31......................................... 1969—Dec. 31......................................... 1970—Dec. 31......................................... 1971—May 31........................................ June 30.......................................... 5,915 5,007 3,057 3,014 3,255 4,146 3,157 1,547 1,827 2,007 2,848 2,082 1,194 1,629 1,594 1,298 1,075 353 198 413 1,163 1,766 1,260 1,075 1,126 568 63 242 102 110 12 12 2 2 2 27 8 6 9 10 Savings and loan associations: 1968—Dec. 31........................................ 1969—Dec. 31......................................... 1970—Dec. 31......................................... 1971—May 31........................................ June 30.......................................... 4,724 3,851 3,263 3,266 3,197 1,184 808 583 667 613 680 269 220 449 380 504 539 363 218 233 1,675 1,916 1,899 1,689 1,656 1,069 357 281 484 495 346 329 243 203 203 450 441 258 222 230 State and local governments: 1968—Dec. 31........................................ 1969—Dec. 31......................................... 1970—Dec. 31......................................... 1971—May 31........................................ June 30.......................................... 13,426 13,909 11,204 11,411 11,015 5,323 6,416 5,184 5,712 5,323 4,231 5,200 3,803 4,796 4,316 1,092 1,216 1,381 916 1,007 2,347 2,853 2,458 2,403 2,442 805 524 774 826 844 1,404 1,225 1,191 1,027 1,025 3,546 2,893 1,598 1,444 1,380 All others: 1968—Dec. 1969—Dec. 1970—Dec. 1971—May June 80,853 85,391 91,227 89,281 88,633 46,524 52,926 56,140 53,445 52,083 37,591 42,648 45,092 45,981 44,159 8,933 10,278 11,048 7,464 7,924 19,526 20,199 22,037 22,555 23,221 7,316 4,053 5,672 6,004 6,024 2,411 2,545 3,078 3,050 3,052 5,075 5,665 4,298 4,222 4,254 31........................................ 31......................................... 31......................................... 31........................................ 30.......................................... N ote .—Direct public issues only. Based on Treasury Survey of Ownership. Beginning with Dec. 1968, certain Govt.-sponsored but privately-owned agencies and certain Govt, deposit accounts have been removed from U.S. Govt, agencies and trust funds and added to “All others.” Comparable data are not available for earlier periods. Data complete for U.S. Govt, agencies and trust funds and F.R. Banks but for other groups are based on Treasury Survey data. Of total mar- ketable issues held by groups, the proportion held on latest date by those reporting in the Survey and the number of owners surveyed were: (1) about 90 per cent by the 5,680 commercial banks, 490 mutual savings banks, and 741 insurance companies combined; (2) about 50 per cent by the 468 nonfinancial corporations and 487 savings and loan assns.; and (3) about 70 per cent by 502 State and local govts. “All others,” a residual, includes holdings of all those not reporting in the Treasury Survey, including investor groups not listed separately. A 46 U.S. GO VERNM EN T S EC U R ITIES □ A U G U S T 1971 DEALER TRANSACTIONS (Par value, in millions of dollars) U.S. Government securities By maturity By type of customer Period Total Dealers and brokers Within 1 year 1-5 years 5-10 years Over 10 years U.S. Govt, securities Other Com mercial banks U.S. Govt, agency securities All other 1970—June............................. July.............................. Aug.............................. Sept.............................. Oct............................... Nov.............................. Dec............................... 2,146 2,395 2,121 2,500 2,768 3,418 2,590 1,867 2,073 1,578 2,041 2,266 2,430 2,043 190 200 372 293 284 601 343 59 96 146 137 190 338 153 29 27 25 28 28 50 52 728 832 722 878 1,018 1,330 949 68 77 74 90 109 172 123 820 914 820 931 1,094 1,278 1,025 529 573 505 602 547 638 493 414 447 398 403 569 712 428 1971—Jan............................... Feb............................... Mar.............................. Apr.............................. M ay............................. June............................. 3,482 3,316 3,072 2,458 2,322 2,195 2,629 2,291 2,122 1,881 1,695 1,802 564 579 506 328 406 273 248 397 388 216 192 92 40 49 57 33 29 28 1,346 1,178 1,036 828 837 727 130 145 143 116 100 110 1,364 1,232 1,204 878 742 687 642 760 688 636 643 672 671 679 567 516 480 418 ! Week ending— 1971—June 2....................... 9....................... 16....................... 23....................... 30....................... 2,460 1,924 1,865 2,107 2,646 2,048 1,529 1,560 1,731 2,164 257 239 211 284 367 127 132 72 71 78 29 25 23 22 38 888 669 632 688 787 114 105 101 105 118 767 566 537 694 888 692 584 595 620 853 569 354 437 494 358 July 7....................... 14....................... 21. 28....................... 2,634 2,376 2,244 2,588 2,340 2,039 2,016 1,933 205 240 144 522 58 73 54 104 32 24 30 29 806 832 700 859 97 117 108 179 955 782 740 876 775 644 696 673 507 490 413 552 N ote .—The transactions data combine market purchases and sales of U.S. Govt, securities dealers reporting to the F.R. Bank of New York. They do not include allotments of, and exchanges for, new U.S. Govt, securities, redemptions of called or matured securities, or purchases or sales of securities under repurchase agreement, reverse repurchase (resale), or similar contracts. Averages of daily figures based on the number of trading days in the period. DEALER POSITIONS DEALER FINANCING (Par value, in millions of dollars) (In millions of dollars) U.S. Government securities, by maturity Period All Within 1 maturi ties year 1-5 years 5-10 years Over 10 years U.S. Govt. agency securi ties Commerc ial banks Period All sources 2,199 3,267 4,474 4,020 3,963 4,760 5,571 1,859 3,102 3,389 3,326 3,449 3,399 4,399 111 -1 8 454 246 103 617 612 227 171 604 433 379 682 485 2 13 27 16 33 62 76 615 828 819 724 1,001 1,066 1,049 1 970-June.......... July........... Aug........... Sept........... 1971—Jan................. 5,634 Feb................. 4,655 Mar................ 4,421 A p r................ 4,870 2,646 June............... 2,735 4,626 3,320 3,511 4,019 2,115 2,477 525 569 437 415 189 116 403 691 404 416 331 130 80 75 70 20 11 12 966 946 981 1,118 818 776 1971—Jan............. 1970—June............... July............... Aug................ Sept................ Oct................. Nov................ Dec................ Nov........... Dec............ Mar............ A pr............ May........... June........... Corpora tions i All other New York City Else where 2,310 3,214 4,900 4,220 4,233 5,149 5,949 422 855 1,526 1,164 1,370 1,517 1 ,868 626 770 1,168 1,456 1,232 1,527 1,960 421 518 834 449 392 416 379 842 1,071 1,373 1,152 1,240 1,689 1,742 6,198 5,684 4,543 5,700 3,389 3,163 1,888 1,673 1,356 1,759 1,095 1,061 1,695 1,318 926 1,415 475 523 527 369 399 724 517 435 2,088 2,324 1,862 1,802 1,301 1,145 Week ending— Week ending— 1971—May 5 ......... 12 19......... 26......... 3,322 2,854 2,317 2,356 2,687 2,124 1,790 1,994 192 319 178 109 427 394 345 249 16 17 6 4 875 833 764 828 1971—May 5 ... 12. .. 19. .. 26. .. 4,292 3,835 3,423 2,599 1,456 1,170 1,074 862 723 467 452 371 574 518 560 478 1,540 1,679 1,337 888 June 2 ........ 9 ........ 16........ 25........ 30........ 3,026 2,894 2,786 2,287 2,810 2,669 2,585 2,538 2,064 2,589 135 123 95 88 150 209 165 133 121 76 12 21 20 14 -5 877 800 777 795 689 June 2 ... 9. .. 16. .. 23. .. 30. .. 3,144 3,395 3,415 2,918 2,864 1,120 1,261 1,179 801 976 495 545 595 477 466 502 640 456 360 247 1,028 948 1,186 1,280 1,176 N o te .—The figures include all securities sold by dealers under repur chase contracts regardless of the maturity date of the contract, unless the contract is matched by a reverse repurchase (resale) agreement or delayed delivery sale with the same maturity and involving the same amount of securities. Included in the repurchase contracts are some that more clearly represent investments by the holders of the securities rather than dealer trading positions. Average of daily figures based on number of trading days in the period. 1 All business corporations, except commercial banks and insurance companies. N ote . —Averages of daily figures based on the number of calendar days in the period. Both bank and nonbank dealers are included. See also N ote to the table on the left. AUGUST 1971 □ GOVERNMENT SECURITIES A 47 U.S. GOVERNMENT MARKETABLE AND CONVERTIBLE SECURITIES, JULY 31, 1971 (In millions of dollars) Amount Issue and coupon rate Issue and coupon rate Treasury bills—Cont. 1.703 Dec. 31, 1971....... 3,406 Jan. 6, 1972........ Jan. 13, 1972........ 3.400 Jan. 20, 1972........ 3,404 Jan. 27, 1972........ 3.503 Jan. 31, 1972........ 1.704 Feb. 29, 1972........ 3.503 Mar. 31, 1972........ 3.502 Apr. 30, 1972........ 3.502 May 31, 1972........ 1,752 June 30,1972........ 3,805 5.503 3.903 3.903 3,703 Treasury notes Aug. 15, 1971 3,714 ..8M 1.701 Oct. 1, 1971.,,...1*4 Nov. 15, 1971... -.53/8 1.400 Nov. 15, 1971.., ...7 % 1.400 Feb. 15, 1972......4 % 1,402 Feb. 15, 1972.., ...7*4 1.400 Apr. 1, 1972 ■..1*4 1.702 May 15, 1972 ,,...4 % 1,395 May 15, 1972...,..6 % 1.400 Aug. 15, 1972,, ....... 5 1.400 1, 1972..,...1*4 Oct. 1,603 1,601 Nov. 15, 1972.. , , ,6 Treasury bills July 31, 1971 Aug. 5 1971.. Aug. 12 1971.. Aug. 19 1971.. Aug. 26 1971.. Aug. 31 1971.. Sept. 2 1971.. Sept. 9 1971.. Sept. 16 1971.. Sept. 21 19711 . Sept. 23 1971.. Sept. 30 1971.. Oct. 7 1971.. Oct. 14 1971.. Oct. 21 1971.. Oct. 28 1971. . Oct. 31 1971.. Nov. 4 1971.. Nov. 11 1971.. Nov. 18 1971.. Nov. 26 1971.. Nov. 30 1971.. Dec. 2 1971.. Dec. 9 1971.. Dec. 16 1971. . Dec. 23 1971.. Dec. 30 1971 . . Issue and coupon rate Amount Issue and coupon rate 'reasury notes—Cont. Apr. 1, 1973 .. . • 1% May 15, 1973.... ■ m Aug. 15, 1973.... •8 Vs Oct. 1, 1 9 73,... •l *4 Feb. 15, 19 7 4 .... .7% Apr. 1, 1974,... •1V4 May 15, 1974.... .7*4 Aug. 15, 1974 ... •55/8 Oct. 1, 1974..., •1 *4 Nov. 15, .5 y4 Feb. 15, 19 75,... .5% Apr. 1, 1 9 75.... •1Vi May 15, .6 Aug. 15, 1975, ,, . 57A Oct. 1, 1975,... .1% Feb. 15, 1 9 7 6 .... .6% Apr. 1, 1976..., .1*4 May 15, 1 9 76.... •6 *4 Aug. 15, 1976.... . 71/2 Feb. 15, 1 9 77.... .8 Aug. 15, 19 7 7 .... .734 Feb. 15, 1978.,,, .6% 34 5,844 1,839 30 3,145 34 4,507 10,284 42 7,212 5,148 8 6,760 7,680 30 3,739 4 2,697 4,194 5,163 2,264 8,388 Treasury bonds—Cont Sept. 15, 1967-72. •2*4 Dec. 15, 1967-72. . 21/2 Aug. 15, 4 Nov. 15, 1971.... •37/s Feb. 15, 1 9 7 2 .... .4 Aug. 15, 1 9 72.... .4 Aug. 15, 1 9 73.... .4 Nov. 15, 1 9 7 3 .... •41/s Feb. 15, •4*i May 15, 1974,... .4*4 Nov. 15, 1974___ •37/g May 15, 1975-85. •4*4 June 15, 1978-83. .3*4 Feb. 15, 1 9 80.... .4 Nov. 15, 1 9 80.... •3*4 May 15, 1 9 85.... .3*4 Aug. 15, 1987-92. .4*4 Feb. 15, 1988-93. .4 May 15, 1989-94. •41/8 Feb. 15 1 9 90.... .3*4 Feb. 15, 1 9 95.... ,3 Nov. 15, 1 9 9 8 .... •3*4 1,951 2,560 2,806 1,081 980 2,579 3,894 4,343 3,126 3,578 2,238 1,212 1,534 2,591 1,904 1,053 3,801 247 1,550 4,636 1,177 3,846 ’reasury bonds June 15, 1967-72. . 21/2 1,231 Convertible bonds Investment Series B Apr. 1, 1975-80. .23^ 2,346 Amount 1,702 1,592 1,601 1,601 1,601 1.700 1.701 1.701 1,201 1,201 1,200 2,257 72 963 5,836 800 2,689 34 5,310 2,037 3,452 33 2,286 Amount N ote .—Direct public issues only. Based on Daily Statement of U .S . Treasury. fTax-anticipation series. NEW ISSUES OF STATE AND LOCAL GOVERNMENT SECURITIES (In millions of dollars) Issues for new capital All issues (new capital and refunding) Type of issue Period Total 1963............... 1964............... 1965............... 1966............... 1967............... 1968............... 1969............... 1970............... 1970—Ju n e... July. .. Aug. .. Sept.. . Oct.. .. N ov.. . Dec__ 1971—J a n .'.. Feb.r. . M ar.r . A pr.r . M ayr . June... Gener al obli gations 10,538 5,855 10,847 6,417 11,329 7,177 11,405 6,804 14,766 8,985 16,596 9,269 11,881 7,725 18,164 11,850 1,085 1,348 1,359 1,758 1,924 1,748 2,190 2,705 1,839 2,144 1,907 2,135 2,008 651 1,055 873 1,207 1,184 892 1,270 1,613 1,225 1,311 1,349 1,091 1,309 Reve nue 4,180 3,585 3,517 3,955 5,013 6,517 3,556 6,082 423 288 481 541 695 753 914 969 607 831 553 837 691 Type of issuer U.S. H A A 1 Govt. loans 254 637 464 325 477 528 402 131 32 99 121 197 State Special district and Other2 stat. auth. Total 249 208 170 312 334 282 197 103 1,620 1,628 2,401 2,590 2,842 2,774 3,359 4,174 3,636 3,812 3,784 4,110 4,810 5,946 3,596 5,595 5,281 10,496 9,151 5,407 10,069 10,201 5,144 11,538 10,471 4,695 11,303 7,115 14,643 7,884 16,489 4,926 11,838 8,399 18,110 12 4 5 9 13 5 6 2 7 1 5 10 8 165 388 331 534 290 247 571 577 585 417 440 486 778 379 229 518 536 531 765 826 1,136 616 648 501 1,064 364 543 730 509 688 1,102 736 793 991 638 1,078 968 585 866 1 Only bonds sold pursuant to 1949 Housing Act, which are secured by contract requiring the Housing Assistance Administration to make annual contributions to the local authority. 2 Municipalities, counties, townships, school districts. 3 Excludes U.S. Govt, loans. Based on date of delivery to purchaser and payment to issuer, which occurs after date of sale. 4 Water, sewer, and other utilities. Use of proceeds Total amount deliv ered3 1,085 1,348 1,358 1,756 1,923 1,743 2,176 2,694 1,823 2,130 1,864 2,127 2,001 Edu Roads and cation bridges 3,029 3,392 3,619 3,738 4,473 4,820 3,252 5,062 528 268 404 491 532 523 425 509 518 565 506 610 403 812 688 900 1,476 1,254 1,526 1,432 1,532 61 130 136 137 123 63 327 390 133 183 66 447 393 Util ities4 2,344 2,437 1,965 1,880 2,404 2,833 1,734 3,525 147 142 196 243 380 364 623 428 315 627 469 429 680 Other Hous Veter ans’ pur ing5 aid poses 598 727 626 533 645 787 543 466 4 4 21 68 12 121 373 123 28 19 214 14 2,396 120 2,838 50 3,311 3,667 5,867 6,523 4,884 7,526 342 803 617 864 821 683 681 993 735 728 804 424 511 5 Includes urban redevelopment loans. N ote .—The figures in the first column differ from those shown on the following page, which are based on Bond Buyer data. The principal difference is in the treatment of U.S. Govt, loans. Investment Bankers Assn. data; par amounts of long-term issues based on date of sale unless otherwise indicated. Components may not add to totals due to rounding. A 48 SECURITY ISSUES □ AUGUST 1971 TOTAL NEW ISSUES (In millions of dollars) Gross proceeds, all issues1 Noncorporate Corporate Period Total U.S. Govt.2 U.S. Govt. agency3 State and local (U.S.)4 Bonds Other5 Total Stock Total Publicly offered Privately placed Preferred Common 1963.................... 1964.................... 1965.................... 1966.................... 35,199 37,122 40,108 45,015 10,827 10,656 9,348 8,231 1,168 1,205 2,731 6,806 10,107 10,544 11,148 11,089 887 760 889 815 12,211 13,957 15,992 18,074 10,856 10,865 13,720 15,561 4,713 3,623 5,570 8,018 6,143 7,243 8,150 7,542 343 412 725 574 1,011 2,679 1,547 1,939 1967.................... 1968.................... 1969.................... 1970..................... 68,514 65,562 52,496 88,664 19,431 18,025 4,765 14,831 8,180 7,666 8,617 16,180 14,288 16,374 11,460 17,762 1,817 1,531 961 949 24,798 21,966 26,744 38,944 21,954 17,383 18,347 30,264 14,990 10,732 12,734 25,384 6,964 6,651 5,613 4,880 885 637 682 1,388 1,959 3,946 7,714 7,292 1970—M ay......... June........ July.......... Aug.......... Sept......... Oct........... Nov.......... 9,548 6,985 5,896 8,155 8,199 8,353 9,040 7,651 3,701 819 405 3,573 1,428 412 2,414 401 950 1 ,693 1,107 915 1,600 2,169 750 924 974 1,058 1,310 1,318 1,650 1,882 1,684 2,245 14 27 306 76 4 113 10 100 3,909 3,389 2,768 2,273 3,518 3,777 4,182 3,980 3,441 2,368 2,151 1,935 2,814 2,694 3,283 3,270 3,041 1,931 1,831 1,731 2,425 2,390 3,001 2,436 399 436 320 205 389 303 283 834 69 222 88 92 176 180 124 168 399 436 529 246 528 903 774 541 1971—Jan........... 7,438 6,522 11,069 7,640 6,870 436 431 517 467 466 1,050 1,224 1,300 1,137 1,000 2,614 1,823 2,104 1,859 2,114 223 44 1,073 172 116 3,115 3,000 6,075 4,007 3,174 2,627 2,476 4,782 2,591 2,543 2,033 2,201 4,135 2,118 2,097 594 275 647 473 445 76 100 311 573 52 413 424 982 878 578 Mar.......... Apr........... May......... i Gross proceeds, major groups of corporate issuers Manufacturing Commercial and miscellaneous Transportation Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks 1963.............................................. 1964.............................................. 1965.............................................. 1966.............................................. 3,202 2,819 4,712 5,861 313 228 704 1,208 676 902 1,153 1,166 150 220 251 257 948 944 953 1,856 9 38 60 116 2,259 2,139 2,332 3,117 418 620 604 549 953 669 808 1,814 152 1,520 139 189 2,818 3,391 3,762 1,747 313 466 514 193 1967.............................................. 1968.............................................. 1969.............................................. 1970.............................................. 9,894 5,668 4,448 9,191 1,164 1,311 1,904 1,322 1,950 1,759 1,888 1,949 117 116 3,022 2,545 1,859 1,665 1,899 2,188 466 1,579 247 92 4,217 4,407 5,409 8,016 718 873 1,326 3,001 1,786 1,724 1,963 5,059 193 43 225 83 2,247 2,159 2,739 3,861 186 662 1,671 1,636 1970—M a y ................................. June................................... July.................................... Aug.................................... Sept................................... Oct..................................... Nov.................................... Dec.................................... 801 896 602 663 937 929 927 932 17 42 36 20 56 76 180 124 113 124 232 91 118 288 147 207 338 396 162 96 228 286 129 147 63 117 215 125 145 138 170 307 7 58 535 673 624 531 904 653 845 725 65 430 219 99 337 448 505 230 1,747 353 143 278 443 338 693 277 1 2 34 5 182 204 335 248 266 348 502 822 49 151 191 122 81 238 78 146 1971_Jan ............................... 647 644 Feb..................................... Mar.................................... 2,123 800 Apr.................................... 609 M ay................................... 69 17 294 315 226 259 72 289 246 132 239 112 186 131 131 167 89 160 280 190 1 1 67 89 608 752 895 605 447 68 317 557 660 140 391 672 481 243 406 11 52 26 2 555 248 834 471 760 112 66 204 106 113 Period 1 Gross proceeds are derived by multiplying principal amounts or number of units by offering price. 2 Includes guaranteed issues. 3 Issues not guaranteed. 4 See n o te to table at bottom of preceding page. 2 8 Public utility Communication 1 Real estate and financial 5 Foreign governments and their instrumentalities, International Bank for Reconstruction and Development, and domestic nonprofit organ izations. N ote .— Securities and Exchange Commission estimates of new issues maturing in more than 1 year sold for cash in the United States. AUGUST 1971 □ SECURITY ISSUES A 49 NET CHANGE IN OUTSTANDING CORPORATE SECURITIES (In millions o f dollars) Derivation of change, all issuers1 Period All securities Bonds and notes Common and preferred stocks New issues Retirements Net change New issues Retirements Net change New issues Retirements Net change 6 7 8 9 0 19,799 25,964 25,439 28,841 38,707 7,541 7,735 12,377 10,813 9,079 12,258 18,229 13,062 18,027 29,628 15,629 21,299 19,381 19,523 29,495 4,542 5,340 5,418 5,767 6,667 11,088 15,960 13,962 13,755 22,825 4,169 4,664 6,057 9,318 9,213 3,000 2,397 6,959 5,045 2,411 1,169 2,267 -9 0 0 4,272 6,801 1970—1.. II. I ll IV. 7,272 10,114 9,385 11,936 2,185 2,227 2,089 2,577 5,086 7,886 7,297 9,359 4,987 7,876 7,598 9,034 1,507 1.545 1.546 2,069 3,480 6,330 6,051 6,964 2,285 2,238 1,788 2,902 679 682 542 508 1,606 1,556 1,245 2,394 1971—1 .. 11,849 2,015 9,833 9,399 1,776 7,623 2,450 239 2,211 196 196 196 196 197 i Type of issuer Manu facturing Period Bonds & notes Transpor tation 3 Commercial and other 2 Stocks Communi cation Public utility Bonds & notes Stocks Bonds & notes Stocks Bonds & notes Stocks Bonds & notes Real estate and financial 1 Stocks Bonds & notes Stocks 864 1,302 1,069 1,687 2,564 -9 0 -1 3 0 -741 1,107 289 361 139 318 255 1966....................... 1967....................... 1968....................... 1969....................... 1970....................... 4,324 7,237 4,418 3,747 6,641 32 832 -1 ,8 4 2 69 870 616 1,104 2,242 1,075 853 -598 282 821 1,558 1,778 956 1,158 987 946 1,104 718 165 -149 186 36 2,659 3,444 3,669 4,464 6,861 533 652 892 1,353 2,917 1,716 1,579 1,834 4,806 1970—1................. I I ................ I l l ............... IV............... 1,084 1,334 2,169 2,054 463 -160 343 263 407 415 633 326 404 591 64 428 17 -2 4 -1 5 58 1,214 1,953 1,917 1,777 395 583 750 1,189 546 2,134 991 1,135 27 39 374 51 204 504 691 1,165 1971—1.................. 2,587 495 324 416 271 33 1,897 948 1,194 65 1,349 -6 21 1 Excludes investment companies. 2 Extractive and commercial and miscellaneous companies. 3 Railroad and other transportation companies. N o te . —Securities and Exchange Commission estimates of cash transactions only. As contrasted with data shown on opposite page, new issues 1,668 575 467 120 241 94 10 6 866 exclude foreign sales and include sales of securities held by affiliated companies, special offerings to employees, and also new stock issues and cash proceeds connected with conversions of bonds into stocks. Retirements are defined in the same way and also include securities retired with internal funds or with proceeds of issues for that purpose, OPEN-END INVESTMENT COMPANIES (In millions of dollars) Sales and redemption of own shares Assets (market value at end of period) Year Sales and redemption of own shares Assets (market value at end of period) Month Net sales Cash Total 2 position 3 Other 511 786 842 1,109 1,494 1,255 13,242 15,818 17,026 634 860 973 2,951 2,699 2,460 1,160 1,123 1,504 1,791 1,576 952 22,789 21,271 25,214 980 1,315 1,341 1964.............. 1965.............. 1966.............. 3,404 4,359 4,671 1,875 1,962 2,005 1,528 2,395 2,665 29,116 35,220 34,829 1,329 1.803 2,971 1967.............. 1968.............. 1969.............. 4,670 6,820 6,717 2,745 3,841 3,661 1,927 2,979 3,056 44,701 52,677 48,291 2,566 3,187 3,846 Sales i Redemp tions 1958.............. 1959.............. 1960.............. 1,620 2,280 2,097 1961.............. 1962.............. 1963.............. Net sales Cash Total 2 position 3 Other 12,608 1970—Ju n e .. July... 14,958 Aug... 16,053 Sept... 21,809 Oct.. . Nov... 19,956 Dec... 23,873 364 306 311 357 420 343 467 197 193 167 218 243 215 307 167 113 144 139 177 128 160 38,459 40,714 42,452 44,353 43,567 45,223 47,618 4,396 4,817 4,794 4,593 4,377 4,126 3,649 34,230 35,897 37,658 39,760 39,190 41,097 43,969 27,787 1971—Jan.... 33,417 Feb.. . M ar... 31,858 A pr... 42,135 M ay .. 49,490 June.. 44,445 487 349 468 547 307 434 242 322 425 394 428 450 245 27 43 153 50,251 51,300 53,618 55,883 53,610 53,560 3,663 3,600 3,328 3,046 2,607 2,830 46,588 47,700 50,290 52,837 51,003 50,730 1 Includes contractual and regular single purchase sales, voluntary and contractual accumulation plan sales, and reinvestment of invest ment income dividends; excludes reinvestment of realized capital gains dividends. 2 Market value at end of period less current liabilities. Sales 1 Redemp tions -1 2 1 -1 6 3 Cash and deposits, receivables, all U.S. Govt, securities, and other short-term debt securities, less current liabilities. N o te . —Investment Company Institute data based on reports of mem bers, which comprise substantially all open-end investment companies registered with the Securities and Exchange Commission. Data reflect newly formed companies after their initial offering of securities. A 50 BUSINESS FINANCE □ AUGUST 1971 SALES, PROFITS, AND DIVIDENDS OF LARGE CORPORATIONS (In millions o f dollars) Industry 1968 1965 1966 1967 1968 19691 1969 I II III IV I II III IV Manufacturing Total (177 corps.): Sales.............................................. Profits before taxes....................... Profits after taxes......................... Dividends...................................... Nondurable goods industries (78 corps.):2 Sales.............................................. Profits before taxes...................... Profits after taxes......................... Dividends...................................... Durable goods industries (99 corps.): 3 Sales.............................................. Profits before taxes...................... Profits after taxes....................... Dividends.................................... . 177,237 195,738 201,399 225,740 243,449 53,633 57,732 53,987 60,388 57,613 61,392 61,061 63,383 22,046 23,487 20,898 25,375 25,622 5,985 6,878 5,580 6,932 6,565 6,887 5,851 6,319 12,461 13,307 12,664 13,787 14,090 3,298 3,609 3,030 3,850 3,579 3,750 3,244 3,517 6,527 6,920 6,989 7,271 7,757 1,716 1,731 1,746 2,078 1,838 1,916 1,885 2,118 64,897 73,643 77,969 84,861 92,033 20,156 21,025 21,551 22,129 21,764 23,198 23,445 23,626 7,846 9,181 9,039 9,866 10,333 2,387 2,492 2,545 2,442 2,524 2,664 2,641 2,504 4,786 5,473 5,379 5,799 6,103 1,428 1,411 1,471 1,489 1,492 1,559 1,529 1,523 2,527 2,729 3,027 3,082 3,289 743 751 763 812 825 808 820 849 112,341 122,094 123,429 140,879 151,416 33,477 36,707 32,435 38,259 35,849 38,195 37,616 39,756 14,200 14,307 11,822 15,510 15,290 3,598 4,386 3,036 4,490 4,041 4,224 3,210 3,815 7,675 7,834 6,352 7,989 7,989 1,871 2,198 1,559 2,361 2,087 2,190 1,715 1,997 4,000 4,191 3,964 4,189 4,469 972 981 983 1,253 1,026 1,108 1,065 1,270 Selected industries: Foods and kindred products (25 corps.): Sales............................................ . 16,427 19,038 20,134 Profits before taxes..................... 1,710 1,916 1,967 Profits after taxes....................... 896 1,008 1,041 Dividends.................................... 509 564 583 Chemical and allied products (20 corps.): 18,158 20,007 20,561 Sales............................................ Profits before taxes..................... 2,891 3,073 2,731 Profits after taxes....................... 1,630 1,737 1,579 Dividends.................................... 926 948 960 Petroleum refining (16 corps.): 17,828 20,887 23,258 Sales............................................ 1,962 2,681 3,004 Profits before taxes..................... Profits after taxes........................ 1,541 1,898 2,038 Dividends...................................... 737 817 1,079 Primary metals and products (34 corps.): 26,548 28,558 26,532 Sales............................................ 2,931 3,277 2,487 Profits before taxes..................... 1,689 1,903 1,506 Profits after taxes....................... 818 892 Dividends.................................... 924 Machinery (24 corps.): 25,364 32,721 Sales............................................. 29,512 3,107 3,612 3,482 Profits before taxes..................... 1,626 1,875 1,789 Profits after taxes....................... 774 912 921 Dividends.................................... Automobiles and equipment (14 corps.): Sales.............................................. 42,712 43,641 42,306 6,253 5,274 3,906 Profits before taxes...................... 3,294 2,877 1,999 Profits after taxes......................... 1,890 1,775 1,567 Dividends...................................... 22,109 24,593 2,227 2,425 1,093 1,171 616 661 5,184 498 255 150 5,389 563 260 155 5,737 590 285 155 5,799 576 293 156 5,714 534 261 162 5,923 581 275 165 6,631 666 314 164 6,325 644 321 170 22,808 24,494 3,117 3,258 1,618 1,773 1,002 1,031 5,436 760 390 236 5,697 807 419 236 5,782 806 412 243 5,893 744 398 287 5,845 844 448 252 6,230 875 473 251 6,236 818 441 254 6,183 721 411 274 24,218 25,586 2,866 2,941 2,206 2,224 1,039 1,123 5,890 767 592 253 6,013 692 520 255 6,100 740 561 258 6,214 667 534 273 6,107 726 562 282 6,610 728 558 273 6,264 750 554 282 6,605 737 550 286 30,171 33,674 2,921 3,052 1,750 1,912 987 952 7,150 669 376 224 8,427 915 550 230 7,461 601 343 233 7,133 735 482 264 7,671 691 431 242 8,612 828 504 245 8,448 715 435 247 8,943 818 542 253 35,660 38,719 4,134 4,377 2,014 2,147 992 1,128 8,371 936 448 247 8,864 1,008 499 248 8,907 9,517 1,079 531 249 8,957 1,071 526 270 9,757 10,542 1,167 1,141 576 568 271 293 9,463 998 477 294 50,526 52,290 12,343 13,545 5,916 5,268 1,507 1,851 2,903 2,604 783 847 1,642 1,723 364 364 1,112 537 248 9,872 14,767 13,328 13,638 11,300 14,024 652 1,411 640 1,918 1,663 1,542 342 806 750 706 943 330 366 365 436 556 364 550 Public utility Railroad: Operating revenue........................ Profits before taxes....................... Profits after taxes......................... Dividends...................................... Electric power: Operating revenue........................ Profits before taxes....................... Profits after taxes......................... Dividends...................................... Telephone: Operating revenue........................ Profits before taxes....................... Profits after taxes......................... Dividends...................................... 10,208 10,661 10,377 10,859 11,451 683 979 1,094 678 385 461 565 815 906 319 488 515 468 538 502 2,611 127 2,708 149 110 100 2,782 196 169 166 2,741 128 98 116 220 117 2,758 206 174 132 2,916 112 2,836 149 98 100 2,958 186 92 136 15,816 16,959 17,954 19,421 21,075 4,213 4,414 4,547 4,789 4,938 2,586 2,749 2,908 3,002 3,186 1,838 1,938 2,066 2,201 2,299 5,106 1,351 863 539 4,553 1,040 641 555 4,869 1,271 764 543 4,892 1,125 733 565 5,480 1,384 873 580 4,913 1,065 707 577 5,370 1,366 827 561 5,312 1,123 779 581 11,320 12,420 13,311 14,430 16,057 3,185 3,537 3,694 3,951 4,098 1,718 1,903 1,997 1,961 2,080 1,153 1,248 1,363 1,428 1,493 3,486 971 525 351 3,544 989 441 318 3,629 990 493 396 3,771 3,853 1,070 540 368 3,975 1,043 523 371 4,044 979 497 373 4,185 1,006 520 381 1Manufacturing figures reflect changes by a number of companies in accounting methods and other reporting procedures. 2 Includes 17 corporations in groups not shown separately. 3 Includes 27 corporations in groups not shown separately. N o te . —Manufacturing corporations: Data are obtained primarily from published reports of companies. Railroad: Interstate Commerce Commission data for Class I linehaul railroads. Electric power: Federal Power Commission data for Class A and B electric utilities, except that quarterly figures on operating revenue and 1,001 502 363 173 136 profits before taxes are partly estimated by the Federal Reserve to include affiliated nonelectric operations. Telephone: Data obtained from Federal Communications Commis sion on revenues and profits for telephone operations of the Bell System Consolidated (including the 20 operating subsidiaries and the Long Lines and General Depts. of American Telephone and Telegraph Co.) and for two affiliated telephone companies. Dividends are for the 20 operating subsidiaries and the two affiliates. All series: Profits before taxes are income after all charges and before Federal income taxes and dividends. Back data available from the Division of Research and Statistics. Series have been temporarily discontinued. AUGUST 1971 □ BUSINESS FINANCE A 51 CORPORATE PROFITS, TAXES, AND DIVIDENDS (In billions of dollars) Year Profits before taxes In come taxes Profits after taxes Cash divi dends 59.4 16.5 17.8 19.8 1963.............. 1964.............. 1965.............. 1966.............. 77.8 84.2 66.8 26.3 28.3 31.3 34.3 33.1 38.4 46.5 49.9 20.8 1967.............. 1968 ' ............ 1969 ' ............ 1970'............ 79.8 87.6 84.2 75.4 33.2 39.9 39.7 34.1 46.6 47.8 44.5 41.2 21.4 23.6 24.4 25.0 Corporate capital Undis tributed consump tion profits allow ances1 16.6 20.6 26.7 29.1 25.3 24.2 20.0 16.2 31.8 33.9 36.4 39.5 43.0 46.8 51.3 56.2 i Includes depreciation, capital outlays charged to current accounts, and accidental damages. Corporate capital Undis consump tributed tion profits allow ances 1 Quarter Profits before taxes In come taxes Profits after taxes Cash divi dends 1969—I I I '.. IV '.. 81.2 80.0 38.2 37.7 43.0 42.3 24.7 24.9 18.3 17.4 51.9 53.2 1970—I '. .. I I '. . I I I '.. I V '. . 75.6 75.8 78.5 71.6 34.1 34.5 35.6 32.3 41.5 41.3 42.9 39.2 25.0 24.9 25.2 25.0 16.6 16.4 17.7 14.3 54.4 55.7 56.7 58.0 1971—I ' . .. 82.6 37.9 44.7 25.6 19.1 59.1 N o te . —Dept, of Commerce estimates. Quarterly data are at seasonally adjusted annual rates. CURRENT ASSETS AND LIABILITIES OF CORPORATIONS (In billions of dollars) Current assets Net working capital End of period Total Cash U.S. Govt. securi ties Current liabilities Notes and accts. receivable U.S. Govt. 1 Other Inven tories Notes and accts. payable U.S. Govt. 1 Other Accrued Federal income taxes 229.6 254.4 271.4 301.8 2.5 2.7 3.1 4.4 5.8 6.4 130.4 140.3 160.4 179.0 190.6 209.8 16.5 17.0 19.1 18.3 14.1 16.4 38.7 42.2 46.9 52.8 60.8 69.1 Other Total Other 1963.............................. 163.5 1964.............................. 170.0 1965.............................. 180.7 1966.............................. 188.2 1967.............................. 198.9 1968.............................. 212.0 351.7 372.2 410.2 442.6 470.4 513.8 46.5 47.3 49.9 49.3 54.1 58.0 20.2 18.6 17.0 15.4 12.7 14.2 3.6 3.4 3.9 4.5 5.1 5.1 156.8 169.9 190.2 205.2 216.0 237.1 107.0 113.5 126.9 143.1 153.4 165.8 17.8 19.6 22.3 25.1 29.0 33.6 1969—III..................... 213.8 IV ...................... 213.2 544.7 555.9 53.9 54.9 12.4 12.7 4.6 4.8 256.3 261.0 180.0 184.8 37.4 37.8 330.9 342.7 7.5 7.3 227.9 238.1 15.9 16.6 79.6 80.6 1970—1......................... I I ....................... I l l ..................... I V ..................... 213.3 213.6 214.0 217.0 561.0 566.3 567.6 572.1 52.9 52.5 53.7 56.9 12.5 10.7 9.3 9.7 4.7 4.4 4.2 4.2 264.5 268.7 270.0 268.1 188.0 190.2 191.8 194.4 38.5 39.9 38.5 38.8 347.7 352.7 353.6 355.2 7.2 7.0 6.8 6.6 238.4 244.1 243.0 244.5 18.0 14.6 15.4 15.9 84.2 87.1 88.3 88.1 1971—1........................ 220.4 576.9 55.8 10.1 4.2 269.8 196.8 40.1 356.5 6.1 c240.3 18.6 91.4 188.2 202.2 1 Receivables from, and payables to, the U.S. Govt, exclude amounts N o te . —Securities and Exchange Commission estimates; excludes offset against each other on corporations’ books. banks, savings and loan assns., insurance companies, and investment companies. BUSINESS EXPENDITURES ON NEW PLANT AND EQUIPMENT (In billions of dollars) Manufacturing Period Total Durable Non durable Transportation Mining Rail road Air Other 1.66 1.02 1.22 1.68 1964....................... 1965....................... 1966....................... 1967....................... 1968....................... 1969....................... 1970....................... 19712..................... 46.97 54.42 63.51 65.47 67.76 75.56 79.71 81.85 9.28 11.50 14.96 14.06 14.12 15.96 15.80 14.67 10.07 11.94 14.14 14.45 14.25 15.72 16.15 15.93 1.86 1.86 1.89 1.99 1969—IV............... 21.46 4.59 4.53 1970—1.................. I I ................ I l l ............... IV................ 17.47 20.33 20.26 3.59 4.08 3.87 4.26 3.11 3.68 3.68 1971—1.................. II 2............... I l l 2............. 21.66 17.68 20.80 20.68 1.34 1.46 1.62 1.65 1.63 1.99 2.37 2.54 2.67 2.49 2.43 11.23 .44 2.61 .62 2.39 4.60 77.84 .73 .80 .74 .76 .28 .31 .30 .33 2.15 2.59 2.79 3.12 .39 .69 .78 .63 2.14 2.59 2.56 2.81 3.76 4.26 4.16 4.42 78.22 80.22 81.88 78.63 .34 .61 .36 .28 .41 .40 2.70 3.30 3.25 .41 .60 .77 2.50 3.94 79.32 82.38 82.83 .55 .64 3.56 4.07 4.12 4.40 .45 .47 .46 .50 .42 .47 .46 .43 3.58 3.98 4.01 .49 .52 .49 .34 .50 .45 1.68 2.00 4.61 5.30 Total (S.A. A.R.) 1.23 1.45 .49 1.45 1.64 1.48 1.59 1.51 1.70 2.05 Other 1 13.19 14.48 14.59 15.14 16.05 16.59 17.71 1.78 1.73 1.86 1.50 Commu nications Electric andGas other 3.97 4.43 5.38 6.75 7.66 8.94 10.65 12.89 1.74 2.29 2.56 2.51 3.03 1.82 1 Includes trade, service, construction, finance, and insurance. 2 Anticipated by business. Public utilities 12.02 6.02 6.34 6.83 8.30 10.10 7. 21 7. 26 N o te . —Dept, of Commerce and Securities and Exchange Commission estimates for corporate and noncorporate business; excludes agriculture, real estate operators, medical, legal, educational, and cultural service, and nonprofit organizations. A 52 REAL ESTATE CREDIT □ AUGUST 1971 MORTGAGE DEBT OUTSTANDING (In billions of dollars) End of period All properties Farm Other holders 2 Finan All cial hold insti Indi ers tutions 1 U.S. viduals agen and cies others Finan Other All cial hold hold insti ers tutions 1 ers 3 20.7 Nonfarm 1- to 4-family houses4 All hold ers Total Finan. Other insti hold tutions 1 ers Multifamily and commercial properties 5 Total Mortgage type 6 Finan. Other FHA— Con VAhold underinsti ven tutions 1 ers tional written 4.9 3.4 31.2 30.8 18.4 18.6 11.2 12.2 7.2 6.4 8.1 12.2 7.4 4.8 4.7 3.0 4.3 28.2 26.5 7.0 7.8 8.4 9.1 9.7 ! 11.9 13.4 14.9 16.3 17.8 281.2 304.6 324.1 344.8 370.0 197.6 212.9 223.6 236.1 251.2 170.3 184.3 192.1 27.3 28.7 31.5 34.2 38.1 83.6 91.6 100.5 108.7 118.7 63.7 72.5 80.2 87.9 97.1 19.9 19.1 20.3 20.9 77.2 81.2 84.1 204.0 223.4 240.0 256.6 277.2 27.5 9.7 17.8 370.0 251.2 213.1 38.1 118.7 97.1 21.6 92.8 277.2 28.1 28.8 29.2 29.5 9.8 18.3 18.7 19.1 19.6 375.7 382.9 389.5 395.9 254.8 259.5 263.4 266.8 216.0 219.9 222.5 223.6 38.8 39.5 40.9 43.2 120.9 123.4 126.0 129.0 98.9 103.1 105.5 101.0 21.9 22.4 22.9 23.5 94.5 96.6 98.5 100.2 281.2 286.3 291.0 295.7 20.0 20.8 21.1 399.6 405.2 412.5 420.5 268.5 271.7 276.0 280.2 223.8 225.7 228.5 231.4 44.7 46.0 47.5 48.8 131.0 133.5 136.5 140.3 107.1 109.1 111.4 114.6 23.9 24.5 25.1 25.7 101.9 103.2 106.8 109.1 297.9 302.3 305.4 310.9 21.6 427.0 283.5 234.4 49.1 143.4 117.3 26.1 1941 1945.......... 37.6 35.5 21.0 4.7 2.4 12.2 12.1 6.4 4.8 1.5 1.3 1964......... 1965 ....... 1966.......... 1967.......... 1968.......... 300.1 325.8 347.4 370.2 397.5 241.0 264.6 280.8 298.8 319.9 11.4 12.4 15.8 18.4 21.7 47.7 48.7 50.9 53.0 55.8 23.3 25.5 27.5 1968—IV .. 397.5 319.9 21.7 55.8 1969—I .... II. .. III.. IV .. 403.7 411.7 418.7 425.3 324.7 331.0 335.7 339.1 22.6 23.4 24.9 26.8 56.4 57.1 58.1 59.4 1970—1 .... I I '. . I I I '. I V '. 429.4 435.6 443.4 451.7 340.8 344.6 349.9 356.2 28.6 30.0 31.7 33.0 60.0 61.0 61.7 62.6 29.8 30.3 30.8 31.2 9.8 9.8 20.5 10.0 10.1 1971—1. 458.7 361.8 33.6 63.3 31.7 10.1 18.9 21.2 10.1 10.1 9.9 1 Commercial banks (including nondeposit trust companies but not trust depts.), mutual savings banks, life insurance companies, and savings and loan assns. 2 U.S. agencies include former FNMA and, beginning fourth quarter 1968, new GNMA as well as FHA, VA, PH A, Farmers Home Admin., and in earlier years, RFC, HOLC, and FFMC. They also include U.S. sponsored agencies—new FNMA and Federal land banks. Other agencies (amounts small or current separate data not readily available) included with “individuals and others.” 3 Derived figures; includes debt held by Federal land banks and farm debt held by Farmers Home Admin. 4 For multifamily and total residential properties, see p. A-54. 201.8 213.1 12.9 21.6 88.2 92.8 5 Derived figures; includes small amounts of farm loans held by savings and loan assns. 6 Data by type of mortgage on nonfarm 1- to 4-family properties alone are shown on p. A-54. N o te . —Based on data from Federal Deposit Insurance Corp., Federal Home Loan Bank Board, Institute of Life Insurance, Depts. of Agricul ture and Commerce, Federal National Mortgage Assn., Federal Housing Admin., Public Housing Admin., Veterans Admin., and Comptroller of the Currency. Figures for first three quarters of each year are F.R. estimates. MORTGAGE LOANS HELD BY BANKS (In millions of dollars) Commercial bank holdings : End of period Residential Total Total FHAinsured VAguaranteed Con ven tional 1941............................... 1945............................... 4,906 4,772 3,292 3,395 1964............................... 1965............................... 1966............................... 1967............................... 1968............................... 43,976 49,675 54,380 59,019 65,696 28,933 32,387 34,876 37,642 41,433 7,315 7,702 7,544 7,709 7,926 2,742 2,599 2,696 2,708 18,876 21,997 24,733 27,237 30,800 1968—11....................... I l l ...................... IV....................... 61,967 63,779 65,696 39,113 40,251 41,433 7,678 7,768 7,926 1969—1......................... I I ....................... I l l ...................... IV....................... 67,146 69,079 70,336 70,705 42,302 43,532 44,331 44,573 1970—1......................... II* ..................... I l l ' .................... IV....................... 70,854 71,291 72,393 73,275 44,568 44,845 45,318 45,640 1971—I ......................... 74,175 46,062 Mutual savings bank holdings ; Other non farm Total Total 1,048 856 566 521 4,812 4,208 3,884 3,387 12,405 14,377 16,366 17,931 20,505 2,638 2,911 3,138 3,446 3,758 40,556 44,617 47,337 50,490 53,456 36,487 40,096 42,242 44,641 46,748 2,648 2,657 2,708 28,787 19,098 29,826 19,771 30,800 20,505 3,756 3,757 3,758 7,953 8,060 8,065 7,960 2,711 2,743 2,793 2,663 31,638 32,729 33,470 33,950 20,950 21,459 21,924 22,113 7,888 7,800 7,885 7,919 2,496 2,575 2,583 2,589 34,184 34,469 34,850 35,131 2,688 FHAinsured VAguaranteed Con ven tional Other non farm Farm 900 797 28 24 13,079 14,897 16,272 17,772 19,146 4,016 4,469 5,041 5,732 6,592 53 52 53 117 117 51,793 52,496 53,456 45,570 15,246 11,918 18,406 46,051 15,367 11,945 18,739 46,748 15,569 12,033 19,146 6,108 6,329 6,592 115 116 117 3,894 4,088 4,081 4,019 54,178 54,844 55,359 56,138 47,305 47,818 48,189 48,682 15,678 15,769 15,813 15,862 12,097 12,151 12,169 12,166 19,530 19,898 20,207 20,654 6,756 6,908 7,053 7,342 117 117 117 114 22,248 22,392 22,825 23,284 4,038 4,054 4,250 4,351 56,394 56,880 57,402 57,948 48,874 49,260 49,628 49,937 15,865 15,931 16,017 16,087 12,105 12,092 12,127 12,008 20,904 21,237 21,654 21,842 7,413 7,519 7,671 7,893 107 23,662 4,451 58,710 50,479 1 Includes loans held by nondeposit trust companies, but not bank trust depts. 2 Data for 1941 and 1945, except for totals, are special F.R. estimates. N o te . —Second and fourth quarters, Federal Deposit Insurance Corpo ration series for all commercial and mutual savings banks in the United Residential Farm 12,287 13,791 14,500 15,074 15,569 11,121 11,408 11,471 11,795 12,033 101 103 119 8,106 States and possessions. First and third quarters, estimates based on special F.R. interpolations after 1963 or beginning 1964. For earlier years, the basis for first- and third-quarter estimates included F.R. commercial bank call report data and data from the National Assn. of Mutual Savings Banks. AUGUST 1971 □ REAL ESTATE CREDIT A 53 MORTGAGE ACTIVITY OF LIFE INSURANCE COMPANIES (In millions of dollars) Loans acquired Loans outstanding (end of period) Nonfarm Nonfarm Period Total Total FHAinsured VAguaranteed Farm 1945.............................................. 976 1962.............................................. 1963.............................................. 1964.............................................. 1965.............................................. 7,478 9,172 10,433 11,137 6,859 8,306 9,386 9,988 1,355 1,598 1,812 1,738 469 678 674 553 5,035 6,030 6,900 7,697 1966.............................................. 1967.............................................. 1968.............................................. 1969.............................................. 10,217 8,470 7,925 7,531 9,223 7,633 7,153 6,943 1,300 757 r755 663 467 444 346 7,456 6,432 *•6,052 6,108 1970—Apr.................................... May................................... June................................... July................................... Aug.................................... Sept.................................... O ct.................................... 493 502 522 531 458 489 527 533 1,099 31 39 25 50 31 31 28 37 44 4 9 5 5 Dec.................................... 524 521 549 551 472 520 555 553 1,143 1971—Jan..................................... Feb..................................... Mar.................................... Apr.................................... 448 449 623 578 423 425 579 533 17 17 33 18 7 5 5 220 8 6 5 6 8 8 Total Other 1 458 454 492 476 419 452 494 490 1,047 399 407 541 507 Total FHAinsured Farm VAguaranteed Other 4,466 766 26,931 29,595 32,961 36,836 3,400 3,792 4,304 4,823 6,637 5,860 1,394 46,902 50,544 55,152 60,013 43,502 46,752 50,848 55,190 10,176 10,756 11,484 12,068 6,395 6,401 6,403 6,286 64,609 67,516 69,973 72,027 59,369 12,351 61,947 12,161 64,172 '12,469 66,254 12,271 6,201 6,122 40,817 43,664 5,954 '45,749 5,701 48,282 5,240 5,569 5,801 5,773 44 72,793 72,982 73,165 73,352 73,427 73,540 73,728 73,848 74,345 67,121 67,320 67,498 67,687 67,767 67,875 68,058 68,189 68,693 11,621 11,606 11,569 11,561 11,526 11,486 11,453 11,436 11,325 5,609 5,583 5,556 5,528 5,499 5,467 5,442 5,416 5,390 49,891 50,131 50,373 50,598 50,742 50,922 51,163 51,337 51,978 5,672 5,662 5,667 5,665 5,660 5,665 5,670 5,659 5,652 25 24 44 45 74,370 74,437 74,516 74,536 68,779 68,871 68,973 68,993 11,383 11,338 11,302 11,237 5,368 5,346 5,316 5,284 52,028 52,187 52,355 52,472 5,591 5,566 5,543 5,543 619 866 1,047 1,149 994 837 m i 537 31 19 27 20 14 31 28 20 i Includes mortgage loans secured by land on which oil drilling or the end-of-Dec. figures may differ from end-of-year figures because (1) monthly figures represent book value of ledger assets, whereas year-end extracting operations are in process. figures represent annual statement asset values, and (2) data for year-end adjustments are more complete. Beginning 1970 monthly and year-earlier N o te . —Institute of Life Insurance data. For loans acquired, the data are on a statement balance basis. monthly figures may not add to annual totals; and for loans outstanding FEDERAL HOME LOAN BANKS MORTGAGE ACTIVITY OF SAVINGS AND LOAN ASSOCIATIONS (In millions of dollars) (In millions of dollars) Loans outstanding (end of period) Loans made Period Period 1945.............. Total i New home Home pur con struc chase tion 1,913 181 1,358 Total 2 FHA- VAinguarsured anteed Con ven tional 5,376 1963.............. 25,173 7,185 10,055 90,944 1964.............. 24,913 6,638 10,538 101,333 1965.............. 24,192 6,013 10,830 110,306 1966.............. 16,924 3,653 7,828 114,427 4,696 4,894 5,145 5,269 6,960 6,683 6,398 6,157 79,288 89,756 98,763 103,001 9,604 121,805 21,983 4,916 11,215 130,802 21,847 4,757 11,254 140,347 21,387 4,150 10,239 150,562 5,791 6,658 7,917 10,195 6,351 7,012 7,658 8,507 109,663 117,132 124,772 131,860 8,184 8,325 8,579 8,579 9,011 9,224 9,441 9,226 10,195 7,712 7,761 7,862 7,862 8,050 8,115 8,230 8,336 8,507 125,356 125,889 126,662 '127,403 '128,234 129,079 129,903 130,794 131,860 10,473 10,810 12,123 11,560 11,889 8,673 8,766 8,922 9,128 9,299 132,357 133,089 134,320 135,886 137,568 1967.............. 1968.............. 1969.............. 1970.............. 1970—A pr... May .. June. . July... Aug... S ept... O ct.... N o v ... Dec.. . 1971—Ja n .... F eb ... M ar.'. A pr.r . May*3. 20,122 4,243 2,183 2,127 1,972 2,474 325 373 398 393 369 388 406 355 416 627 741 1,017 1,071 1,147 1,032 919 968 141,252 141,975 143,103 143,103 145,296 146,418 147,570 148,896 150,560 1,667 1,887 2,795 3,168 3,432 307 346 521 597 622 752 818 1,143 1,306 1,451 151,503 152,665 154,430 156,574 158,747 1,400 1,586 2,086 2,080 2,111 1,100 Ad vances Repay ments Advan ces outst anding (en d of perilod) Total Short Long term 1 term 2 1945. 278 213 195 176 19 46 1963 1964 1965 1966. 5,601 5,565 5,007 3,804 4,296 5,025 4,335 4,784 5,325 5,997 6,935 2,863 2,846 3,074 5,006 1,921 2,479 2,923 1,929 1,151 1,199 1,043 1,036 1968 1969. 1970 1,527 2,734 5,531 3,256 4,076 4,386 1,861 5,259 1,500 9,289 1,929 10,615 3,985 4,867 8,434 3,081 401 392 855 7,534 1,432 1,382 1,041 2,331 10,236 10,373 10,446 10,524 10,539 10,524 10,615 7,002 4,445 3,967 3,477 3,265 3,156 3,081 3,234 5,927 6,478 7,047 7,274 7,368 7,534 1,331 1,193 1,238 1,339 1,496 1,978 2,331 331 10,326 428 9,926 1,492 8,269 1,151 7,267 264 7,241 2,924 2,697 2,226 2,322 2,397 7,403 7,230 6,043 4,945 4,844 2,750 3,093 2,828 2,376 1970- July............ 299 243 179 204 134 112 224 1971Feb............. 43 27 71 151 238 2,866 71 106 106 125 119 126 134 N o te . —Federal Home Loan Bank Board data. 2,111 1 Secured or unsecured loans maturing in 1 year or less. 2 Secured loans, amortized quarterly, having maturities of more than 1 year but not more than 10 years. N o te .— Federal Home Loan Bank Board data. 1 Includes loans for repairs, additions and alterations, refinancing, etc. not shown separately. 2 Beginning with 1958, includes shares pledged against mortgage loans; beginning with 1966, includes junior liens and real estate sold on contract; and beginning with 1967, includes downward structural adjustment for change in universe. Members’ deposits A 54 REAL ESTATE CREDIT □ AUGUST 1971 MORTGAGE DEBT OUTSTANDING ON RESIDENTIAL PROPERTIES MORTGAGE DEBT OUTSTANDING ON NONFARM 1- to 4-FAMILY PROPERTIES (In billions of dollars) (In billions of dollars) End of period Total All residential Multifamily1 Finan cial insti tutions Other holders Total Finan cial insti tutions 9.4 Governmentunderwritten End of period Total Other holders Total FHAinsured VAguaranteed 1 Con ven tional 24.2 1941............... 1945............... 24.3 1963............... 211.2 1964............... 231.1 14.9 15.7 176.7 195.4 34.5 35.7 8 .6 5.9 5.7 29.0 33.6 3.6 3.5 20.7 25.1 2 .2 2 .2 1954............................... 1963............................... 1964............................... 18.6 182.2 197.6 4.3 65.9 69.2 4.1 35.0 38.3 30.9 30.9 14.3 116.3 128.3 1965............... 1966............... 1967*............. 1968*............. 250.1 264.0 280.0 298.6 213.2 223.7 236.6 250.8 36.9 40.3 43.4 47.8 37.2 40.3 43.9 47.3 29.0 31.5 34.7 37.7 8.2 8.8 1965............................... 1966............................... 1967*............................. 1968*............................. 212.9 223.6 236.1 251.2 73.1 76.1 79.9 83.8 42.0 44.8 47.4 50.6 31.1 31.3 32.5 33.2 139.8 147.6 156.1 167.4 1969—1.......... I I ........ I l l ___ IV....... 303.0 308.9 314.1 319.0 254.4 259.3 262.7 265.0 48.6 49.6 51.4 54.0 48.3 49.4 50.6 52.2 38.4 39.3 40.2 41.3 243.2 247.0 251.2 82.1 83.2 84.4 48.7 49.6 50.6 33.4 33.6 33.8 161.1 163.8 166.8 254.8 259.5 263.5 266.8 85.3 87.1 90.1 51.4 52.2 53.4 54.5 33.9 34.9 35.4 35.6 169.5 172.3 174.6 176.9 268.5 271.7 276.0 280.2 91.6 92.1 95.1 97.1 55.6 56.1 58.1 59.9 36.0 36.0 37.0 37.2 177.1 179.9 180.7 182.5 1970—1.......... I I ........ I II r . . . IV r. . . . 1971—I* ........ 321.7 326.3 332.2 338.2 265.9 268.9 272.8 277.2 55.8 57.4 59.4 61.0 281.3 343.0 61.7 53.2 54.5 56.1 58.0 59.4 42.9 43.2 44.3 45.8 46.8 8.3 8.5 9.2 9.6 9.9 10.1 10.4 10.9 1969—1.......................... II......................... 10.3 11.3 11.8 12.2 I II r ..................... 12.6 1971— ip ......................... i Structures of five or more units. N o te . —Based on data from same source as for “ Mortgage Debt Out standing” table (second preceding page). 88.8 .2 283.5 1 Includes outstanding amount of VA vendee accounts held by private investors under repurchase agreement. N o te . —For total debt outstanding, figures are FHLBB and F.R. estimates. For conventional, figures are derived. Based on data from FHLBB, Federal Housing Admin., and Veterans Admin. GOVERNMENT-UNDERWRITTEN RESIDENTIAL LOANS MADE DELINQUENCY RATES ON HOME MORTGAGES (In millions of dollars) Period (Per 100 mortgages held or serviced) VA-guaranteed FHA-insured Mortgages Prop Pro erty Ex Ex jects 1 im Total New Total3 New prove isting isting homes homes homes homes m ents 2 Loans not in foreclosure but delinquent for— Mortgages 665 257 217 1945............ 1964............ 8,130 1,608 4,965 895 20 171 663 192 2,846 1,023 1,821 5,760 591 4,366 583 4,516 642 4,924 1,123 5,570 1,316 5,447 3,250 634 641 623 656 693 617 2,652 2,600 3,405 3,774 4,072 3,442 876 980 1,143 1,430 1,493 1,311 1,774 1,618 2,259 2,343 2,579 2,131 64 62 49 63 57 45 50 263 298 306 326 341 318 316 99 109 107 164 189 199 216 224 r4\ 297 256 303 350 417 1965............ 1966............ 1967............ 1968............ 1969............ 1970............ 8,689 7,320 7,150 8,275 9,129 11,981 1,705 1,729 1,369 1,572 1,551 2,667 1970—June. July.. Aug.. Sept.. Oct... Nov.. D ec.. 1,097 1,087 1,030 1,099 1,218 r1,063 rl ,351 218 230 247 268 304 r273 r280 478 475 504 521 564 497 472 336 319 228 247 292 r248 r549 1971—Jan... Feb.. Mar . r A pr.r May r Juner r999 r951 1,097 1,136 1,203 1,372 295 284 318 293 290 322 *476 *450 *531 *467 504 629 r 187 r 185 202 330 354 399 r32 46 46 55 110 117 106 109 102 90 98 98 111 207 195 166 205 252 306 21 N o te . —Federal Housing Admin, and Veterans Admin, data. FHA-insured loans represent gross amount of insurance written; VA-guaranteed loans, gross amounts of loans closed. Figures do not take into account principal repayments on previously insured or guaranteed loans. For VA-guaranteed loans, amounts by type are derived from data on number and average amount of loans closed. Loans in fore closure Total 30 days 60 days 90 days or more 1963............... 3.30 3.21 2.32 2.35 .60 .55 .38 .31 .34 .38 1965............... 1966............... 1967............... 1968............... 1969............... 3.29 3.40 3.47 3.17 3.22 2.40 2.54 2.66 2.43 2.43 .55 .54 .54 .51 .52 .34 .32 .27 .23 .27 .40 .36 .32 .26 .27 1966—I V .. .. 3.40 2.54 .54 .32 .36 1967—1.......... I I ........ Ill... . IV ___ 3.04 2.85 3.15 3.47 2.17 2.14 2.36 .56 .45 .52 .54 .31 .26 .27 .27 .38 .34 .31 .32 2.84 2.89 2.93 3.17 2.11 2.23 2.23 2.43 .49 .44 .48 .51 .24 I I ........ I II .... IV ___ .22 .22 .32 .28 .26 .26 1969—1.......... 2.77 I ll.... IV ___ 2.91 3.22 2.04 2.06 2.18 2.43 .49 .41 .47 .52 .26 .27 .26 .25 .25 .27 1970—1.......... I I ........ Ill.... 2.96 2.83 3.10 3.64 2.14 2.10 2.26 2.67 .52 .45 .53 .61 .30 .28 .31 .36 .31 .31 .25 .33 3.21 2.26 .56 .39 .40 212 1 Monthly figures do not reflect mortgage amendments included in annual totals. 2 Not ordinarily secured by mortgages. 3 Includes a small amount of alteration and repair loans, not shown separ ately; only such loans in amounts of more than $1,000 need be secured. End of period 2.68 2.66 .23 .24 .21 N o te . —Mortgage Bankers Association of America data from reports on 1- to 4-family FHA-insured, VA-guaranteed, and con ventional mortgages held by more than 400 respondents, including mortgage bankers (chiefly), commercial banks, savings banks, and savings and loan associations. AUGUST 1971 □ REAL ESTATE CREDIT GOVERNMENT NATIONAL MORTGAGE ASSOCIATION ACTIVITY FEDERAL NATIONAL MORTGAGE ASSOCIATION ACTIVITY (In millions of dollars) End of period (In millions of dollars) Mortgage commitments Mortgage transactions (during periiod) Mortgage holdings VAguarPur anteed chases Sales Made during period Out stand ing 1 1,045 867 615 897 1,171 1,266 1,130 738 Total FHAinsured 1967............ 1968............ 1969............ 1970............ 3,348 4,220 4,820 5,184 2,756 3,569 4,220 4,634 592 651 600 550 860 1,089 827 621 1970-M ay.. June.. July... Aug... Sept... O ct.... N ov... D ec.. . 5,006 5,033 5,070 5,102 5,109 5,132 5,141 5,184 4,426 4,458 4,499 4,535 4,546 4,573 4,587 4,634 580 575 571 567 563 559 554 550 62 58 55 54 27 46 35 70 92 191 172 123 57 42 42 37 925 992 966 802 795 775 776 738 1971-Jan— F eb .. . M ar... A pr.. . May. . 5,188 5,213 5,241 5,244 5,261 4,641 4,670 4,703 4,710 4,731 546 543 538 534 530 35 38 56 39 40 27 705 682 707 786 906 21 100 120 171 N o te . —Government National Mortgage Assn. data. Data prior to Sept. 1968 relate to Special Assistance and Management and Liquidating portfolios of former FNMA and include mortgages subject to participation pool of Government Mortgage Liquidation Trust, but exclude conven tional mortgage loans acquired by former FNMA from the RFC Mortgage Co., the Defense Homes Corp., the Public Housing Admin., and Com munity Facilities Admin. HOME-MORTGAGE YIELDS Period FHA series New homes 6.52 7.03 7.82 8.35 6.53 7.12 7.99 8.52 6.55 7.21 8.26 9.05 8.48 8.49 8.52 8.48 8.51 8.43 8.38 8.36 8.37 8.41 8.42 8.35 8.32 8.26 8.55 8.60 8.60 8.50 8.50 8.45 8.30 9.16 9.11 9.07 9.01 8.97 8.90 8.40 8.18 7.91 7.66 7.49 7.47 7.50 8.08 7.80 7.60 7.47 7.45 7.50 7.95 7.75 7.60 7.55 7.65 7.70 New homes Existing homes 1967....................... 1968....................... 1969....................... 1970....................... 6.46 6.97 7.81 8.44 1970—June........... July............ Aug............ Sept............ Oct............. Nov............ Dec............. 1971—Jan.............. Feb............. Mar............. Apr............. End of period Mortgage transactions (during period) VAguaranteed Pur chases Sales 1967............ 1968............ 1969............ 1970............ 5,522 4,048 7,167 5,121 10,950 7,680 15,502 11,071 1,474 2,046 3,270 4,431 1,400 1,944 4,121 5,078 12 1970-June.. Ju ly ... Aug... Sept... O ct.... N ov... D ec... 13,658 14,084 14,452 14,807 15,152 15,396 15,502 9,610 9,936 10,218 10,499 10,780 10,981 11,071 4,047 4,148 4,234 4,308 4,372 4,416 4,431 434 470 413 406 397 294 165 1971-Jan.... F eb.. . M ar... A p r... May r . J u n e .. 15,520 15,448 15,420 15,308 15,242 15,363 11,092 11,057 11,012 4,428 4,391 4,408 4,375 4,349 4,393 75 61 76 57 89 236 10,933 10,893 10,970 7.32 7.37 7.75 7.89 N o te . —Annual data are averages of monthly figures. The FHA data are based on opinion reports submitted by field offices on prevailing local conditions as of the first of the succeeding month. Yields on FHA-insured mortgages are derived from weighted averages of private secondary market prices for Sec. 203, 30-year mortgages with minimum downpayment and an assumed prepayment at the end of 15 years. Gaps in data are due to periods of adjustment to changes in maximum permis sible contract interest rates. The FHA series on average contract interest rates on conventional first mortgages in primary markets are unweighted and are rounded to the nearest 5 basis points. Th 3 FHLBB effective rate series reflects fees and charges as well as contract rates (as shown in the table on conventional firstmortgage terms, p. A-37) and an assumed prepayment at end of 10 years r4 r72 r46 r104 91 9 Made during period Out stand ing 1,736 2,697 6,630 8,047 501 1,287 3,539 5,202 712 532 718 650 535 541 600 4,709 4,684 4,834 4,849 4,805 4,930 5,203 139 80 312 457 5,092 4,865 4,318 4,318 4,866 5,700 888 1,303 N o te . —Federal National Mortgage Assn. data. Data prior to Sept. 1968 relate to secondary market portfolio of former FNMA. Mortgage commitments made during the period include some multifamily and non profit hospital loan commitments in addition to 1- to 4- family loan com mitments accepted in FNMA’s free market auction system. Implicit yield, by commitment period (in months) Mortgage amounts Date of auction Accepted Offered Total By commitment period (in months) 3 June............ Mortgage commitments FHAin sured Total Secondary market Yield on FHAinsured new home loans FHLBB series (effective rate) Mortgage holdings FEDERAL NATIONAL MORTGAGE ASSOCIATION ACTIVITY UNDER FREE MARKET SYSTEM (In per cent) Primary market (conventional loans) A 55 6 3 6 12-18 12-18 In per cent In millions of dollars 1970—Nov. 2.. 16.. 341.5 181.2 222.4 170.3 100.0 75.8 62.4 79.4 18.7 15.1 8.90 8.89 8.93 8.90 8.93 8.92 Dec. 7.. 14.. 166.5 127.8 165.1 124.7 54.7 42.1 60.9 72.1 10.5 12.2 8.56 8.51 8.54 8.43 8.57 8.47 35.5 9.9 25.6 7.82 7.96 8.40 7.67 7.67 1971—Jan. 25.. 44.1 Feb. 8 .. 23.4 23.3 10.6 12.7 Mar. 1.. 15.. 29.. 185.6 193.5 122.5 51.8 74.0 67.0 15.2 17.9 36.7 29.3 41.2 26.3 7.3 14.9 3.9 7.43 7.32 7.32 7.43 7.44 7.45 7.56 7.54 7.55 Apr. 12.. 26.. 126.9 54.6 687.2 313.9 39.8 154.0 9.4 126.6 5.4 33.4 7.32 7.43 7.45 7.54 7.53 7.57 May 10.. 1,168.0 236.8 24.. 785.7 151.6 145.7 44.6 71.3 84.4 19.7 22.5 7.57 7.95 7.68 7.97 7.74 8.03 322.4 146.6 638.2 191.2 539.0 262.6 77.1 133.7 191.8 57.8 47.3 60.3 11.6 10.2 10.4 8.05 7.91 7.92 8.18 8.15 8.22 8.22 8.28 241.1 183.4 161.8 183.3 60.3 58.2 8.23 8.31 21.1 June 1.. 14.. 28.. July 12.. 28.. 606 686 10.4 7.98 8.07 8.16 N o te . —Implicit secondary market yields are gross—before deduction of 38basis-point fee paid for mortgage servicing. They reflect the average accepted bid yield for Govt.-underwritten mortgages after adjustment by Federal Reserve to allow for FNMA commitment fees and FNMA stock purchase and holding requirements, assuming a prepayment period of 15 years for 30-year loans. Com mitments for 12-18 months are for new homes only. A 56 CONSUMER CREDIT □ AUG UST 1971 TOTAL CREDIT (In millions of dollars) Instalment End of period Total Total Auto mobile paper Other consumer goods paper Noninstalment Repair and mod ernization loans 1 Personal loans Total Single payment loans Charge accounts Service credit 1939. 1941 1945. 7,222 9,172 5,665 4,503 6,085 2,462 1,497 2,458 455 1,620 1,929 816 298 376 182 1,088 1,322 1,009 2,719 3,087 3,203 787 845 746 1,414 1,645 1,612 518 597 845 1950. 1955. 1960. 21,471 38,830 56,141 14,703 28,906 42,968 6,074 13,460 17,658 4,799 7,641 11,545 1,016 1,693 3,148 2,814 10,617 6,112 6,768 9,924 13,173 1,821 3,002 4,507 3,367 4,795 5,329 1,580 2,127 3,337 1965. 1966. 1967. 1968. 1969. 1970. 90,314 97,543 102,132 113,191 122,469 126,802 71,324 77,539 80,926 89,890 98,169 101,161 28,619 30,556 30,724 34,130 36,602 35,490 18,565 20,978 22,395 24,899 27,609 29,949 3,728 3,818 3,789 3,925 4,040 4,110 20,412 22,187 24,018 26,936 29,918 31,612 18,990 20,004 21,206 23,301 24,300 25,641 7,671 7,972 8,428 9,138 9,096 9,484 6,430 6,968 7,755 8,234 8,850 4,889 5,346 5,810 6,408 6,970 7,307 1970—June............................. July.............................. Aug.............................. Sept.............................. 122,542 123,092 123,655 123,907 123,866 123,915 126,802 98,699 99,302 99,860 100,142 99,959 99,790 101,161 36,809 36,918 36,908 36,738 36,518 36,011 35,490 27,303 27,538 27,801 28,055 28,152 28,378 29,949 4,040 4,081 4,104 4,123 4,126 4,133 4,110 30,547 30,765 31,047 31,226 31,163 31,268 31,612 23,843 23,790 23,795 23,765 23,907 24,125 25,641 9,239 9,254 9,294 9,316 9,313 9,345 9,484 7,473 7,509 7,508 7,489 7,656 7,757 8,850 7,131 7,027 6,993 6,960 6,938 7,023 7,307 125,077 123,815 123,604 125,047 126,025 127,388 100,101 35,004 34,869 35,028 35,496 35,819 36,349 29,575 28,928 28,591 28,682 28,706 28,976 4,067 4,051 4,045 4,077 4,126 4,186 31,455 31,396 31,504 31,773 32,041 32,351 24,976 24,571 24,436 25,019 25,333 25,526 9,480 9,506 9,557 9,676 9,765 9,862 8,094 7,353 7,207 7,689 8,004 8,214 7,402 7,712 7,672 7,654 7,564 7,450 Nov.............................. Dec.............................. 1971— Mar.............................. Apr............................... M ay............................. June............................. 99,244 99,168 100,028 100,692 101,862 1 Holdings of financial institutions; holdings of retail outlets are ineluded in “other consumer goods paper.” 6,686 hold, family, and other personal expenditures, except real estate mortgage loans. For back figures and description of the data, see “Consumer Credit,” Section 16 (New) of Supplement to Banking and, Monetary Statistics, 1965, and pp. 983-1003 of the B u lletin for Dec. 1968. Note.—Consumer credit estimates cover loans to individuals for house- INSTALMENT CREDIT (In millions of dollars) Financial institutions End of period Total Retail outlets Total Com mercial banks Finance cos. 1 Credit unions Mis cellaneous lenders 1 Total Auto mobile dealers 2 Other retail outlets 1939............................................................. 1941............................................................. 1945............................................................. 4,503 6,085 2,462 3,065 4,480 1,776 1,079 1,726 745 1,836 2,541 910 102 132 198 18 15 19 1,438 1,605 686 123 188 28 1,315 1,417 658 1950............................................................. 1955............................................................. 1960............................................................. 14,703 28,906 42,968 11,805 24,398 36,673 5,798 10,601 16,672 5,315 11,838 15,435 590 1,678 3,923 102 281 643 2,898 4,508 6,295 287 487 359 2,611 4,021 5,936 1965............................................................. 1966............................................................. 1967............................................................. 1969............................................................. 1970............................................................. 71,324 77,539 80,926 89,890 98,169 101,161 61,533 66,724 69,490 77,457 84,982 87,064 28,962 31,319 32,700 36,952 40,305 41,895 24,282 26,091 26,734 29,098 31,734 31,123 7,324 8,255 8,972 10,178 11,594 12,500 965 1,059 1,084 1,229 1,349 1,546 9,791 10,815 11,436 12,433 13,187 14,097 315 277 285 320 336 327 9,476 10,538 11,151 12,113 12,851 13,770 1970—June................................................. July.................................................. Aug.................................................. Sept.................................................. Oct................................................... Nov.................................................. Dec................................................... 98,699 99,302 99,860 100,142 99,959 99,790 101,161 86,311 86,876 87,315 87,471 87,243 86,820 87,064 40,979 41,703 41,934 42,051 42,010 41,740 41,895 31,862 31,561 31,588 31,510 31,309 31,081 31,123 12,030 12,141 12,292 12,409 12,422 12,438 12,500 1,440 1,471 1,501 1,501 1,502 1,561 1,546 12,388 12,426 12,545 12,671 12,716 12,970 14,097 336 337 337 337 335 332 327 12,052 12,089 12,208 12,334 12,381 12,638 13,770 1971—Jan................................................... Feb................................................... Mar.................................................. Apr................................................... May.................................................. June.................................................. 100,101 86,308 85,910 86,015 86,805 87,491 88,544 41,611 41,446 41,563 42,094 42,482 43,011 30,791 30,511 30,326 30,369 30,441 30,609 12,353 12,351 12,509 1,553 1,602 1,617 1,656 1,694 1,718 13,793 13,334 13,153 13,223 13,201 13,318 324 323 325 330 334 339 13,469 13,011 12,828 12,893 12,867 12,979 99,244 99,168 100,028 100,692 101,862 1 Finance companies consist of those institutions formerly classified as sales finance, consumer finance, and other finance companies. Miscellaneous lenders include savings and loan associations and mutual savings banks. 12,686 12,874 13,206 2 Automobile paper only; other instalment credit held by automobile dealers is included with “other retail outlets.” See also N o te to table above, AUGUST 1971 □ CONSUMER CREDIT INSTALMENT CREDIT HELD BY COMMERCIAL BANKS A 57 INSTALMENT CREDIT HELD BY FINANCE COMPANIES (In millions of dollars) (In millions of dollars) End of period Automobile paper Total Pur chased Direct Other con sumer goods paper Repair and modern ization loans 135 161 Per sonal loans End of period Total Auto mobile paper Other con sumer goods paper Repair and modern ization loans Per sonal loans 363 ■471 312 1939, 1941 1945, 1,836 2,541 910 932 1,438 202 134 194 40 151 204 62 619 705 606 2,200 1,037 1,916 3,577 1950, 1955, 1960 5,315 11,838 15,435 3,157 7,108 7,703 692 1,448 2,553 80 42 173 1,386 3,240 5,006 4,166 4,681 5,126 6,060 7,415 8,633 2,571 2,647 2,629 2,719 2,751 2,760 6,357 7,011 7,751 8,855 9,735 10,482 1965, 1966, 1967 1968. 1969, 1970, 24,282 26,091 26,734 29,098 31,734 31,123 9,400 9,889 9,538 10,279 11,053 9,941 4,425 5,171 5,479 5,999 6,514 6,648 224 191 154 113 106 94 10,233 10,840 11,563 12,707 14,061 14,440 7,722 7,759 7,748 7,734 7,730 7,654 7,587 7,828 8,078 8,183 8,263 8,286 8,299 8,633 2,731 2,755 2,770 2,783 2,785 2,779 2,760 10,018 10,109 10,252 10,381 10,385 10,380 10,482 1970—June.................... July..................... 31,862 31,561 31,588 31,510 31,309 31,081 31,123 11,073 10,771 10,732 10,619 10,465 10,226 9,941 6,560 6,499 6,529 6,568 6,594 6,548 6,648 98 96 94 94 94 94 94 14,131 14,195 14,233 14,229 14,156 14,213 14,440 7,530 7,561 7,667 7,825 7,942 8,098 8,613 8,535 8,499 8,595 8,676 8,821 2,727 2,704 2,692 2,702 2,729 2,765 10,488 10,481 10,558 10,704 10,774 10,843 1971- 30,791 30,511 30,326 30,369 30,441 30,609 9,754 9,672 9,674 9,781 9,810 9,918 6,605 6,493 6,363 6,280 6,236 6,224 93 93 93 98 14,339 14,253 14,196 14,210 14,295 14,366 1939............... 1941............... 1945............... 1,079 1,726 745 237 447 66 178 338 143 166 309 114 110 1950............... 1955............... 1960............... 5,798 10,601 16,672 1,177 3,243 5,316 1,294 2,062 2,820 1,456 2,042 2,759 1965............... 1966............... 1967............... 1968............... 1969............... 1970............... 28,962 31,319 32,700 36,952 40,305 41,895 10,209 11,024 10,927 12,213 12,784 12,433 5,659 5,956 6,267 7,105 7,620 7,587 1970—June... Ju ly ... Aug.. . Sept.. . O c t.... Nov.... Dec__ 40,979 41,703 41,934 42,051 42,010 41,740 41,895 12,680 13,002 12,981 12,890 12,824 12,628 12,433 1971—Ja n .. .. Feb__ Mar__ Apr__ M ay... June... 41,611 41,446 41,563 42,094 42,482 43,011 12,253 12,165 12,147 12,268 12,361 12,484 834 1,338 See N o te to first table on preceding page. 100 101 N o te . —Finance companies consist of those institutions formerly clas sified as sales finance, consumer finance, and other finance companies. INSTALMENT CREDIT HELD BY OTHER FINANCIAL LENDERS NONINSTALMENT CREDIT (In millions of dollars) (In millions of dollars) End of period Total Auto mobile paper Other con sumer goods paper Repair and modern ization loans Per sonal loans Single payment loans End of period Total Charge accounts Com mer cial banks Other finan cial insti tutions Retail outlets Credit cards 1 Service credit 1939............................... 1941............................... 1945............................... 150 213 121 27 47 16 5 9 4 12 11 10 106 146 91 1950............................... 1955............................... 1960............................... 692 1,959 4,566 159 560 1,460 40 130 297 313 775 102 391 956 2,034 1939............. 1941............. 1945............. 2,719 3,087 3,203 625 693 674 162 152 72 1,414 1,645 1,612 1965............................... 1966............................... 1967............................... 1968............................... 1969............................... 1970............................... 8,289 9,314 10,056 11,407 12,943 14,046 3,036 3,410 3,707 4,213 4,809 5,202 498 588 639 727 829 898 933 980 1,006 1,093 1,183 1,256 3,822 4,336 4,704 5,374 1950............. 1955............. 1960............. 6,768 9,924 13,173 1,576 2,635 3,884 245 367 623 3,291 4,579 4,893 76 216 436 1,580 2,127 3,337 1970—June.................... 13,470 July..................... 13,612 Aug..................... 13,793 Sept..................... 13,910 Oct...................... 13,924 Nov..................... 13,999 Dec...................... 14,046 4,998 5,049 5,110 5,158 5,164 5,171 5,202 863 872 881 890 891 893 898 1,230 1,240 1,246 1,247 1,260 1,256 1,211 6,398 6,461 6,562 6,616 6,622 6,675 6,690 196 196 196 196 196 197 18,990 20,004 21,206 23,301 24,300 25.641 6,690 6,946 7,340 7,975 7,900 8.205 981 1,026 1,088 1,163 1,196 1.279 5,724 5,812 5,939 6,450 6,650 6.932 706 874 1,029 1,305 1,584 1.918 4,889 5,346 5,810 6,408 6,970 7.307 1971—Jan....................... Feb...................... Mar..................... Apr...................... 5,143 5,148 5,215 5,292 5,372 5,510 889 901 914 927 952 1,247 1,254 1,260 1,277 1,297 1,320 6,628 6,662 6,750 6,859 6,972 7,142 1970—June.. July.. Aug... Sept... Oct... Nov.., Dec... 23,843 23,790 23,795 23,765 23,907 24,125 25.641 8.005 8.005 8,041 8,062 8,059 8,071 8.205 1,234 1,249 1.253 1.254 1.254 1,274 1.279 5,765 5,727 5,664 5,617 5,797 5,884 6.932 1,708 1,782 1,844 1.872 1,859 1.873 1.918 7,131 7,027 6,993 6,960 6,938 7,023 7.307 1971—Jan... F eb ... M ar... Apr... M ay.. June.. 24,976 24,571 24,436 25,019 25,333 25,526 8,196 8.205 8,249 8,350 8,425 8,512 1,284 1,301 1,308 1,326 1,340 1,350 6,144 5,435 5,316 5,774 6,046 6,199 1,950 1.918 1,891 1,915 1,958 2,015 7,402 7,712 7,672 7,654 7,564 7,450 June..................... 13,906 13,953 14,126 14,342 14,568 14,924 888 6,122 6,690 N o te .— Other financial lenders consist of credit unions and miscel laneous lenders. 5 6 7 8 9 0 518 597 845 1 Service station and miscellaneous credit-card accounts and homeheating-oil accounts. Bank credit card accounts outstanding are included in estimates of instalment credit outstanding. See also N o te to first table on preceding page. A 58 CONSUMER CREDIT □ AUG UST 1971 INSTALMENT CREDIT EXTENDED AND REPAID, BY TYPE OF CREDIT (In millions of dollars) Total Automobile paper Period S.A.i N.S.A. S. A . 1 N.S.A. Other consumer goods paper S. A . 1 N.S.A. Repair and modernization loans S.A.i N.S.A. Personal loans S.A.i N.S.A. Extensions 27,227 27,341 26,667 31,424 32,354 29,831 78,586 82,335 84,693 97,053 1965........................................ 1966........................................ 1967........................................ 1968........................................ 1969........................................ 1970........................................ 102,888 104,130 22,750 25,591 26,952 30,593 33,079 36,781 2,266 Dec............................... 8,683 9,065 8,809 8,849 8,580 8,414 8,536 9,534 9,497 8,915 8,580 8,670 8,271 10,194 2,587 2,685 2,537 2,621 2,349 2,127 2,170 3,023 2,952 2,540 2,402 2,463 2,006 2,045 2,925 3,124 3,168 3,071 3,113 3,113 3,281 3,019 3,141 3,152 3,097 3,200 3,147 4,562 189 192 173 186 182 180 177 1971—Jan................................ Feb............................... Mar.............................. Apr............................... May............................. June............................. 8,916 9,081 9,533 9,751 c 9,690 9,715 7,545 7,489 9,575 10,079 c 9,562 10,667 2,461 2,687 2,897 2,872 c 2,756 2,838 1,997 2,336 3,074 3,100 c 2,883 3,301 3,252 3,204 3,210 3,415 3,295 3,433 2,868 2,431 3,076 3,363 3,148 3,538 177 197 209 205 July............................. Aug.............................. 26,343 27^203 28*961 32*768 35*177 2,200 2,113 2,268 2 278 2 *145 200 224 35*373 220 220 2,982 3,064 2,931 2,971 2,936 2,994 2,908 3,272 3,184 3,026 2,887 2,823 2,942 3,438 122 3,026 2,993 3,217 3,259 3,439 3,220 2,558 2,567 3,228 3,397 3,296 3,565 197 194 184 176 149 155 197 219 235 263 Repayments 1965........................................ 1966........................................ 1967........................................ 1968........................................ 1969........................................ 1970........................................ 1970—June............................. July.............................. Aug.............................. Sept.............................. Oct............................... Dec.............................. 1971—Jan................................ Feb............................... Mar.............................. Apr............................... M a y .................................. June............................. 23,543 25,404 26,499 28,018 29,882 30,943 69,957 76,120 81,306 88,089 94,609 101,138 20,518 23,178 25,535 28,089 30,369 34,441 2,116 23,780 25,428 27,130 29,850 32,195 33,679 2,110 2,142 2,132 2,163 2,075 8,242 8,622 8,577 8,490 8,662 8,716 8,515 8,541 8,894 8,357 8,298 8,853 8,440 8,823 2,573 2,752 2,632 2,599 2,550 2,577 2,618 2,669 2,843 2,550 2,572 2,683 2,513 2,566 2,750 2,874 2,967 2,913 3,036 3,082 2,945 2,771 2,906 2,889 2,843 3,103 2,921 2,991 174 170 175 174 179 176 175 183 179 174 175 181 169 172 2,745 2,826 2,803 2,804 2,897 2,881 2,777 2,918 2,966 2,744 2,708 8,829 8,979 9,038 9,088 C9,197 9,190 8,605 8,346 9,651 9,219 «8,898 9,497 2,623 2,636 2,696 2,566 c 2,640 2,678 2,483 2,471 2,915 2,632 «2,560 2,771 3,145 3,212 3,164 3,249 3,211 3,233 3,242 3,078 3,413 3,272 3,124 3,268 175 188 196 184 188 192 165 171 203 187 186 203 2,886 2,715 2,626 3,120 3,128 3,028 3,255 2,943 2,982 3,089 3,158 3,087 2,886 2,837 3,094 Net change in credit outstanding 2 July.............................. Aug.............................. Sept.............................. Oct............................... Nov.............................. Dec.............................. 1971—Jan............................... Feb............................... Mar.............................. Apr............................... June............................. 3,684 1,937 168 3,406 2,472 8,629 6,215 3,387 8,964 8,279 2,992 1965........................................ 1966........................................ 1967........................................ 1968........................................ 1969........................................ 1970........................................ 441 443 232 359 -8 2 -3 0 2 21 87 102 495 663 493 525 993 603 558 282 -183 -169 1,371 -1 ,0 6 0 -857 -7 6 860 664 1,170 - 1,112 14 -6 7 -9 5 22 -2 0 1 354 109 175 250 -1 0 201 -1 7 0 -2 2 0 -4 5 0 -448 -507 -521 -162 51 -486 -135 159 468 323 530 201 306 116 160 1 Includes adjustments for differences in trading days. 2 Net changes in credit outstanding are equal to extensions less repayments. N o t e .— Estimates are based on accounting records and often include financing charges. Renewals and refinancing of loans, 2,232 2,413 1,417 2,504 2,710 2,340 158 77 31 336 107 -8 46 166 84 200 248 235 263 254 97 226 1,571 -3 7 4 -647 -3 3 7 91 24 270 150 90 -2 9 136 115 70 15 22 -2 12 3 4 2 2 9 13 21 12 32 2,563 1,775 1,831 2,918 2,982 1,694 37 41 23 19 3 7 -2 3 237 238 128 167 39 113 131 354 218 282 179 -6 3 105 344 -4 3 -1 6 140 50 235 170 281 133 -1 5 7 -5 9 108 269 268 310 -6 32 49 60 purchases and sales of instalment paper, and certain other transac tions may increase the amount of extensions and repayments without affecting the amount outstanding. For back figures and description of the data, see “ Consumer Credit,” Section 16 (New) of Supplem ent to Banking and M onetary Statistics, 1965, and pp. 983-1003 of the B u l l e t i n for Dec. 1968. AUGUST 1971 □ CONSUMER CREDIT A 59 INSTALMENT CREDIT EXTENDED AND REPAID, BY HOLDER (In millions of dollars) Period S.A . 1 N.S.A. Commercial banks Finance companies S.A. 1 S.A. 1 N.S.A. N.S.A. Other financial lenders S.A . 1 N.S.A. Retail outlets S.A . 1 N.S.A. Extensions 78,586 82,335 84,693 97,053 1965. 1966. 1967. 1968. 1969. 1970. 25,192 25,406 25,496 28,836 30,854 29,662 29,528 30,073 30,850 36,332 38,533 39,136 102,888 104,130 1970—June. July.. Aug.. Sept.. Oct.. Nov.. D ec.. 8,683 9,065 8,809 8,849 8,580 8,414 8,536 9,534 9,497 8,915 8,580 8,670 8,271 10,194 3,262 3,382 3,308 3,417 3,276 3,159 3,326 3,643 3,697 3,385 3,352 3,301 2.885 3,390 2,616 2,590 2,427 2,441 2,371 2,300 2,240 1971—Jan... F eb.. Mar.. A pr.. May. June. 8,916 9,081 9,533 9,751 c 9,690 9,715 7,545 7,489 9,575 10,079 c 9,562 10,667 3,338 3,478 3,646 3,676 3,600 3,806 2.885 2,988 3,783 3,948 3,671 4,207 2,411 2,513 2,681 2,624 '2,798 2,490 9,436 10,362 10,911 12,850 14,245 14,619 2,912 2,731 2,416 2,300 2,387 2,342 2,795 233 365 235 265 221 184 187 1,961 288 282 394 475 441 513 2,121 2,686 2,672 c 2,655 2,832 14,430 16,494 17,436 19,035 19,256 20,713 1,187 1,150 1,206 572 728 839 726 712 771 783 1,572 1,651 1,796 1,716 1,795 1,894 2,803 1,055 1,117 1.418 1,552 1,493 1,724 879 808 812 976 851 906 1,688 1,407 1.418 1,318 1,212 1,644 1,263 1,907 1,743 1,904 Repayments 25,663 27,716 29,469 32,080 35,180 37,961 69,957 76,120 81,306 88,089 94,609 101,138 1965. 1966. 1967. 1968. 1969. 1970. 22,551 23,597 24,853 26,472 28,218 29,858 8,310 9,337 10,169 11,499 12,709 13,516 13,433 15,470 16,815 18,038 18,502 19,803 1970—June. July.. Aug.. Sept.. O ct.. Nov.. D ec.. 8,242 8,622 8,577 8,490 8,662 8,716 8,515 8,541 8,894 8,357 8,298 8,853 8,440 8,823 3,041 3,264 3,185 3,249 3,258 3,276 3,262 3,179 3,388 3.154 3.235 3,342 3.155 3.235 2,548 2.580 2,507 2,482 2.551 2.552 2,465 2,645 2,617 2,389 2,378 2,588 2,570 2,753 087 184 158 127 165 135 113 1,162 1,276 1,137 1,095 1,173 1,075 1,159 566 594 727 632 753 675 1,555 1,613 1,677 1,590 1,750 1,640 1,676 1971—Jan... Feb.. Mar.. Apr.. May. June. 8,829 8,979 9,038 9,088 c 9,197 9,190 8,605 8,346 9,651 9,219 c 8,898 9,497 3,385 3,369 3,387 3,332 3,375 3,541 3,169 3,153 3,666 3,417 3,283 3,678 2,486 2,656 2,674 2.580 c 2,698 2,550 2,293 2,401 2,871 2,629 c 2,583 2,664 199 186 207 315 323 299 1,195 1,070 1,245 1,336 1,267 1,368 759 768 770 861 801 800 1,948 1,722 1,869 1,837 1,765 1,787 688 Net change in credit outstanding : 1965. 1966. 1967. 1968. 1969. 1970. 1—June............................. July.............................. Aug.............................. Sept.............................. Oct............................... Nov.............................. Dec............................... —Jan................................ Feb............................... Mar.............................. Apr............................... M ay............................. June............................. 8,629 6,215 3,387 8,964 8,279 2,992 441 443 232 359 -8 2 -3 0 2 21 87 102 495 663 493 525 3,865 2,357 1,381 4,252 3,353 1,590 993 603 558 282 -183 -169 1,371 533 123 168 18 -117 64 464 724 231 117 -4 1 -2 7 0 155 -1 ,0 6 0 -857 -7 6 860 664 1,170 -4 7 109 259 344 225 265 -2 8 4 -165 117 531 388 529 221 1 Includes adjustments for differences in trading days. 2 Net changes in credit outstanding are equal to extensions less re payments, except in certain months when data for extensions and re payments have been adjusted to eliminate duplication resulting from large transfers of paper. In those months the differences between ex tensions and repayments for some particular holders do not equal the 2,641 1,809 643 2,364 2,636 -611 68 -405 -80 -41 -1 8 0 -252 -225 -7 5 -143 7 44 100 -6 0 -228 42 146 181 77 138 56 49 74 245 142 181 117 14 75 47 -3 3 2 -2 8 0 -185 43 72 168 89 96 187 160 118 214 -1 4 0 47 173 216 226 356 267 -301 27 -7 8 -2 0 1 997 1,024 621 997 754 910 1,126 1,025 ’742 1,351 1,536 1,103 6 134 112 94 24 18 108 120 40 42 115 50 106 17 38 119 126 45 254 1,127 -3 0 4 -4 5 9 -181 70 -2 2 117 changes in their outstanding credit. Such transfers do not affect total instalment credit extended, repaid, or outstanding. N o te . —“Other financial lenders” include credit unions and miscellaneous lenders. See also N o te to preceding table and Note 1 at bottom of p. A-56. A 60 INDUSTRIAL PRODUCTION: S.A. □ AUGUST 1971 MARKET GROUPINGS (1967 = 100) Grouping Total index................................... Products, to tal................................. Final products............................. Consumer goods...................... Equipment................................ Intermediate products................. Materials.......................................... 1967 pro por tion 1970 aver- 1970 June July Aug. Sept. 1971 Oct. Nov. Dec. Jan. Feb. Mar. 100.00 106.7 107.5 107.5 107.5 106.5 103.7 102.6 104.6 105.3 105.7 105.5 62.21 48.95 28.53 20.42 13.26 37.79 106.0 104.4 110.3 96.2 111.9 107.8 106.9 105.6 111.7 97.3 111.9 108.5 107.1 106.5 105 103.6 102.6 105.5 104.9 103.5 101.4 100.2 112.2 111.6 110.1 109.0 107.7 96.2 95.5 94.2 90 89.8 113.5 112.2 111.4 111.9 111.6 108.5 109.3 109.0 104.1 102.8 104.2 104.6 105.0 104.5 102.2 102.9 103.0 102.5 110.8 112.8 112.9 112.7 90.3 88.9 89.3 88.4 112.1 110.9 112.5 112.0 105.4 106.5 106.1 107.1 Apr. May June 106.2 107.0 106.9 105.5 105.8 105.9 103.6 104.0 104.2 114.6 115.8 116.0 88.1 87.8 87.6 112.4 112 112.5 107.5 108.9 108.7 Consumer goods Durable consumer goods .................. 7.86 104.8 109.5 111.0 110.3 102.2 97.1 95.5 102.9 108.1 110.6 111.6 112.2 117.2 116.3 Automotive products................... Autos........................................ Auto parts and allied goods... 2.84 99.9 114.4 112.7 111.2 91.1 77.6 76.0 100.0 110.9 117.8 117.8 113.7 123.1 121.1 1.87 86.6 110.7 105.3 103.9 70.4 51.1 51. 88.6 104.1 112.8 112.2 103.2 108.3 107.9 .97 125.6 122.4 126.7 125.4 130.9 128.7 122.3 122.2 124.1 127.4 128.6 133.9 151.4 146.6 Home goods...................................... 5.02 107.6 106.8 110.3 109.9 108.6 108.3 106.6 104.6 106.5 106.5 108.2 111.4 113.9 113.5 Appliances, TV, and radios........ Appliances and A /C ................ TV and home audio................. Carpeting and furniture.............. Misc. home goods....................... Nondurable consumer goods ............ Clothing........................................ Consumer staples......................... Consumer foods and tobacco.. Nonfood staples....................... Consumer chemical products Consumer paper products... Consumer fuel and lighting. , Residential utilities........... 1.41 .92 .49 1.08 2.53 103.4 99.6 108.5 109.9 106.7 122.7 128.5 129.0 123.3 57.1 71.4 74.4 75.4 108.4 107.9 110.4 108.0 108.6 109.7 111.1 111.0 110.9 109.7 122.1 68.2 109.8 128.8 74.5 108.8 107.3 107.6 127.1 71.3 108.6 105.3 104.5 104.9 102.5 120.6 122.6 117.6 74.0 74.3 71. 106.3 106.4 110.1 104.1 107.5 107.5 107.9 124.9 76.1 108.3 108.1 116.4 126.0 98.6 110.7 109.0 120.7 132.1 99.4 111.7 111.1 120.9 131.0 102.0 112.0 110.1 20.67 112.5 112.8 112.8 112.1 113.0 113.5 112.3 113.8 114.6 113.8 113.1 115.5 115.3 115.9 4.32 101.2 102.6 101.5 100.9 100.5 100.0 96.3 99.1 99.7 97.3 96.9 101.0 103.0 16.34 115.4 115.5 115.8 115.2 116.4 117.2 116.6 117.7 118.5 118.1 117.4 119.4 118.6 119.5 8.37 110.6 111.2 109.3 109.9 110.6 111.9 112.5 112.8 114.0 112.6 111. 112.7 113.3 113.0 7.98 2.64 1.91 3.43 2.25 120.4 126.1 103.9 125.2 131.3 120.1 124.7 106.9 123.3 129.0 122.8 131.5 105.3 126.1 134.0 120.7 123.8 103.8 128.0 135.9 122.6 122.9 123.4 104.5 131.9 140.7 120.9 125.8 127.7 102.8 101.4 131.9 126.4 141.2 132.2 122.9 123.2 123.9 123.2 126.4 124.2 126.2 132.5 131. 131.8 131.6 134.0 133.2 133.2 102.6 104.4 104.6 103.0 108.2 105.0 108.9 126.9 127.0 128.9 127.9 130.5 128.0 130.5 131.9 132.0 135.2 133.2 136.4 135.1 136.9 Equipment Business equipment........................... Industrial equipment................... Building and mining equip... . Manufacturing equipment. . . . Power equipment..................... Commercial, transit, farm eq*.. . Commercial equipment............ Transit equipment.................... Farm equipment....................... Defense and space equipment.......... Military products......................... 12.74 101.1 103.0 102.5 101.7 100.5 6.77 98.8 100.6 99.9 97.6 98.0 95.9 94.6 95.6 94.2 9 6.0 95.0 95.1 94.4 94.2 94.6 93.9 94.0 91.5 93.4 92.4 92.4 90.9 90.6 1.45 95.9 95.6 93.5 92.9 91.5 91.7 93.3 93.6 90.6 94.3 92.4 91.2 91.5 88.7 3.85 91.9 92.7 92.1 90.0 91.8 86.7 84.6 84.2 82.9 82.2 81.3 82.1 79.5 79.6 1.47 119.9 126.6 126.7 122.6 120.7 118.2 118.7 119.8 115.0 121.7 121.5 120.5 120.2 121.3 5.97 103.7 105.9 105.7 106.5 103.4 97.1 95.6 97.9 97.2 99.0 98.0 98.2 98.4 98.4 3.30 110.6 110.5 110.2 111.9 110.0 108.2 106.0 105.3 105.5 107.0 106.6 107.1 107.6 104.9 94.4 98.7 99.4 99.5 92.5 79.8 77.5 87.4 88.6 89.1 87.2 87.3 87.3 90.5 .67 97.7 95.8 102.1 101.0 102.6 93.9 98.9 92.4 82.0 88.8 88.0 86.6 86.6 90.4 2 .00 7.68 5.15 87.9 89.7 88.1 90.5 86.0 87.2 85.1 87.0 83.9 85.8 82.6 84.5 81.7 83.7 81.2 82.9 80.0 82.6 78.1 80.4 77.5 79.8 76.5 79.1 76.9 79.5 76.6 79.7 Intermediate products Construction products..................... Misc. intermediate products........... 5.93 110.6 110.0 111.8 111.7 110.0 111.5 110.4 112.5 l l l . l 111.9 112.6 113.4 114.1 113.2 7.34 113.0 113.5 114.9 112.5 1 1 2 . 8 112.1 112.4 111.9 110.8 113.1 111.4 111.6 111.9 111.9 Materials 99.4 101.5 101.6 101.9 102.2 104.8 Durable goods materials ................... 20.91 Nondurable goods materials............. 13.99 112.5 110.8 111.6 111.6 112.9 113.4 113.3 112.1 111.7 112.1 112.0 112.7 112.7 113.9 8.58 113.0 113.1 113.3 112.1 113.2 112.6 112.6 111.8 111.2 111.7 111.9 113.2 113.5 115.6 Consumer durable parts.............. Equipment parts.......................... Durable materials nec................. Textiles, paper, and chemicals... Nondurable materials nec........... Fuel and power, industrial............. 103.4 105.8 105.4 106.4 105.1 96.2 93.6 103.3 4.75 96.5 104.1 104.3 107.1 101.7 80.4 76.9 95.8 99.4 101.4 103.2 102 105.1 106.0 5.41 95.1 97.5 95.8 94.7 93.7 88.0 86.6 86.6 88.4 87.6 86.4 86.0 88.9 87.1 10.75 110.5 110.8 110.6 111.9 112.4 107.6 104.5 107.5 109.0 108.8 109.2 110.2 112.8 110.2 5.41 111.5 109.1 109.0 110.9 112.3 114.7 114.7 112.7 112.5 112.7 112.3 111.9 111.4 111.3 2.89 117.0 117.4 116.9 118.6 119.7 118.2 117.8 117.6 117.8 118.6 121.1 121.0 119.6 120.8 Supplementary groups Home goods and clothing............... Containers........................................ 9.34 104.7 104.9 106.2 105.7 104.8 104.5 101.8 102.0 103.4 102.3 102.9 106.6 109.0 108.3 1.82 119.5 120.2 122.8 119.9 116.8 119.1 120.6 117.4 119.2 119.6 108.1 113.5 118.2 116.0 Gross Value of Products in Market Structure (In billions of 1963 dollars) Products, total ................. Final products............ Consumer goods.... Equipment............... Intermediate products. 386. 391.8 394.4 391. 382.7 375.1 372.5 380.9 386.2 388.6 385.9 390.2 391.6 392.2 298.0 302.9 304.6 302.6 294.0 286.4 284.1 292.1 297.7 298.5 297.4 300.4 301.6 302.7 202.6 206.3 208.7 206.6 200.9 197.0 195.7 203.3 209.1 209.5 209.6 212.6 213.8 214.6 95.5 96.9 96.2 96.1 93.2 89.5 88.3 88.7 88.7 89.2 87.9 87.9 87.6 87.9 89.0 89.1 89.9 89.4 89.1 89.1 88.9 89.0 88.4 89.9 88.5 89.3 89.8 89.6 F o r N ote see p. A-63. * Referred to as “nonindustrial equipm ent” in the article published in the July 1971 B ulletin, pp. 551-76. AUGUST 1971 □ INDUSTRIAL PRODUCTION: S.A. A 61 INDUSTRY GROUPINGS (1967 = 100) Grouping Manufacturing......... D urable............... Nondurable......... Mining and utilities. Mining................. Utilities................ 1967 pro por tion 1970 aver age^ 1970 June July Aug. Sept. 1971 Oct. 88.55 105.2 106.3 106.9 105.5 104.8 101.4 52.33 36.22 11.45 6.37 5.08 101.5 103.4 103.7 103.5 110.6 110.6 111.6 108.6 118.0 116.3 117.0 118.4 109.7 107.4 106.5 108. 130.2 130.5 128.5 127 100.7 95.7 110.7 109.7 121.1 121.9 110.9 112.4 133.9 134.0 Nov. Dec. 100.2 102.4 103.3 103.9 103.2 104.4 105.5 97.3 Jan. Feb. 98.6 Mar. 98.3 Apr. May 100.4 112.9 120.6 119.0 113.7 108.6 129.6 130.2 129.6 132.2 131.5 133.2 132.1 93.8 109.6 98.1 99.1 110.0 110.9 111.7 110.4 112.1 120.1 119 119.9 120.2 120.6 112.1 111.1 110.1 111.4 110.4 June 105.2 99.8 113.3 119.5 108.6 133.2 Durable manufactures Primary and fabricated metals. 12.55 108.1 109.3 109.6 111.8 108.9 104.2 Machinery and allied goods ............. 32.44 Primary metals..................... Iron and steel, subtotal... Fabricated metal products. . 101.2 105.1 106.8 106.0 105.8 108.6 111.5 108.3 6.61 106.9 108.2 107.5 111.9 108. 102.5 98.4 104.3 108.1 105.5 106.6 108.7 114.3 108.4 4.23 105 108.1 105.6 111.8 108.2 102.4 95.6 101.4 106.9 104.8 105.2 109.1 112.9 105.5 109.0 106.3 104.5 106.2 105.4 106.6 104.9 108.5 108.3 108.2 5.94 109.4 110.7 112.2 111 . 97.6 100.6 100.6 9 9.6 96.2 89.9 88.4 92.4 93.0 9 2.7 93.8 93.5 93.0 Lumber, clay, and glass ................. 4.44 106.3 104.9 106.4 106.6 105.6 105.3 105.0 107.5 106.9 109.8 110.8 Furniture and miscellaneous----- 2.90 108.8 108.7 109.9 110.0 109.4 108.7 105.7 104.9 105.2 107.1 105.6 109.5 109.9 1.38 99.4 99.7 100.8 100.1 99.3 100.1 96.5 95.5 94.2 96.0 95.0 98.7 97.6 Machinery.................................... Nonelectrical machinery......... Electrical machinery................ Transportation equipment.......... Motor vehicles and parts........ Aerospace and misc. trans. eq. Instruments.................................. Lumber and products............... Clay, glass, and stone products. Furniture and fixtures........... Miscellaneous manufactures. 17.39 100.5 101.4 9.17 99.6 100.4 8.22 101.4 102.7 9.29 90.3 98.7 4.56 96.9 112.7 4.73 83.9 85.3 2.07 110.8 112.6 94.1 93.4 94.2 94.0 94.2 95.3 95 .1 103.6 101.5 100.4 96.5 94.9 94. 90.9 90.7 102.0 100.4 99.8 95.6 93.2 92.4 90.1 92.3 91.1 91 105.6 102 . 101.1 97.5 96.7 97.4 97.1 96.3 97.1 97.4 100.2 100.2 96.3 96.1 87.5 73.8 71.7 86.8 91.1 92.6 91.3 89.5 90.9 92.2 111.3 94.6 68 .6 65.4 98.5 107.7 113.0 112.2 108.4 110.2 112.7 110 . 82.5 81.4 81.0 78.8 78.0 75. 72.3 72.4 75.2 72.9 71.2 71 110.8 110.5 108.9 107.3 106.5 104.9 106.5 105.3 105.5 106.7 108.0 107.2 113.0 110.8 110.8 110.6 111.5 1.65 106.3 102.4 107.7 108.9 107.2 106.8 106.4 106.8 109.7 110.8 110.3 112 2.79 106.3 106.1 105.9 105.1 104.8 104.5 104.1 107.9 105.3 109.2 111.1 113.3 111.0 110.3 1.52 117.3 117.1 118.3 119.1 118.5 116.7 114.0 113.4 115.2 117.2 115.4 119.3 121.2 110.0 99.7 119.4 N ondurable m anufactures Textiles, apparel, and leather. Textile mill products.......... Apparel products............... Leather and products........ Paper and printing ............ Paper and products Printing and publishing. Chemicals, petroleum, and rubber. Chemicals and products............ Petroleum products................... Rubber and plastics products... 6 .90 100.2 9 9.7 101.5 99.3 99.1 98.7 96.0 97.1 98.6 98.0 97.3 99.8 101.8 102.1 2.69 106.3 107.2 107.3 105.6 105.2 104.1 3.33 97.8 98.7 99.3 97.0 96.8 96.9 90.8 91.9 92.5 89.5 90.2 89.6 102.8 103.3 103.1 105.4 105.3 106.3 107.5 108.5 94.9 97.4 94.5 94.0 97.3 100.3 86.7 89.5 89.0 85.4 89.9 89.8 88.4 7.92 107.8 108.5 110.0 107.9 106.7 106.1 106. 105.0 107.1 108.1 93.4 85.0 3.18 113.3 111.5 115.5 112.7 109.8 111.9 113.3 4.74 104.1 106.5 106.1 104.6 104.5 102.3 101.9 110.6 101.2 116.9 116.0 100.5 102.8 104.6 106.9 106.9 107.5 111.0 114.4 100.2 101.8 115.1 116.1 101.4 101.9 11.92 118.2 118.7 119.5 117.8 119.1 117.2 117.8 118.9 118.2 120.9 120.5 122.4 122 . 123.8 120.2 121.1 122.5 119.4 121.5 120.3 119.7 121.2 119.3 121.7 121.0 123.4 123.4 124.0 1. 112.7 115.2 1.80 112.6 110.7 111.0 112.1 112.9 113.2 116.9 118.1 117.2 117.1 116.3 115. 2.26 115.7 117.2 116.0 117.5 115.9 110.0 111.4 111.8 115.5 120.6 122.7 124.5 126.5 130.2 9 .48 110.8 110.6 110.6 104.4 112.0 111.7 111.9 112.5 113.9 113.1 112.2 112.9 113.7 112.7 Metal, stone, and earth minerals. 1.26 112.0 108.4 110.4 110.4 110.0 113.0 118.6 116.4 113.6 113.6 111.6 106.5 104.7 102.4 Coal, oil, and g a s ............ 5.11 109.3 111.4 111.4 109.6 110.1 Foods and tobacco . . . Foods................... . Tobacco products. 114.1 114.7 114. I 8.81 111.7 111.7 111.2 104.7 113.1 112.3 112.7 113.5 114.6 114.1 113 .67 100.0 97.3 102.6 100.4 100.5 104.4 102.3 99.5 106.6 100.1 90.3 96.9 100.3 Mining Metal mining........................... Stone and earth minerals........ Coal............................. Oil and gas extraction. .51 131.3 117.5 122.3 129.1 130.5 134.3 148.5 144.7 140.1 139.0 135.1 124.7 122. 116.7 .75 98.8 100.6 102.4 97.6 96.2 98.6 98.4 97.3 95.6 96.3 95.6 94.2 92.4 92.7 109.2 107.3 105.5 108.6 111.3 112.3 112.6 111.0 110.6 .69 105.8 102.3 102.3 108.8 109.7 108.7 107.9 103.6 112.3 108.8 116.2 115.5 110.2 111.0 4.42 109.7 108.1 106.2 108.7 111.5 112.9 113.4 112.3 110.3 109.3 110.6 114.3 112.7 1J3.0 Utilities Electric. Gas___ For N o te see p. A-63. 3.91 130.8 129.7 132.8 133.2 137.5 137.6 131.9 132.5 131.5 134.9 133.6 135.5 133.8 135.0 1.17 121.0 121.0 121.2 121.4 121.7 121.9 122.1 122.4 123.0 123.6 124.3 A 62 INDUSTRIAL PRODUCTION: N.S.A. □ AUGUST 1971 MARKET GROUPINGS (1967 = 100) Grouping 1967 pro por tion 1970 aver age* 1970 June July Aug. Sept. 1971 Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June Total index....................................... 100.00 106.7 110.3 103.4 107.1 109.6 106.5 103.1 102.0 103.2 106.1 106.0 106.5 107.2 109.2 Products, to tal..................................... Final products................................. Consumer goods.......................... Equipment.................................... Intermediate products..................... Materials.............................................. 62.21 48.95 28.53 20.42 13.26 37.79 106.0 104.4 110.3 96.2 111.9 107.8 109.9 108.5 115.3 99.1 115.1 110.9 104.2 107.0 102.1 104.5 107.7 112.4 94.3 93.5 111.8 116.1 102.2 107.3 109.8 107.8 116.9 95.0 117.0 109.2 107.0 104.5 113.6 91.9 116.0 105.8 102.7 100.7 98.9 107.2 105.4 90.4 89.8 111.8 107.3 103.7 104.1 100.2 101.8 104.7 101.0 103.4 110.3 113.2 88.1 89.6 104.7 109.5 105.4 108.3 104.5 105.0 105.0 108.4 103.0 102.9 102.8 106.5 112.9 113.6 113.6 118.7 89.1 88.0 87.6 89.4 110.2 112.6 113.2 115.6 108.4 109.0 110.7 110.5 Consumer goods Durable consumer goods....................... Automotive products....................... Autos............................................ Auto parts and allied goods........ Home goods.......................................... Appliances, TV, and radios............ Appliances and A /C .................... TV and home audio..................... Carpeting and furniture.................. Misc home goods............................ Nondurable consumer goods ................ Consumer staples............................. Consumer foods and tobacco__ Nonfood staples........................... Consumer chemical products.. Consumer paper products....... Consumer fuel and lighting. . . Residential utilities............... 7.86 104.8 114.9 9 6.5 96.7 107.3 103.7 9 8.7 100.8 107.3 113.8 114.8 114.7 117.3 119.9 5.02 107.6 109.1 101.8 108.9 114.5 115.0 1.41 103.4 101.6 98.2 99.8 113.2 123.2 .92 122.1 129.2 124.3 112.1 127.7 138.3 .49 68.2 49.8 49.4 76.6 86.0 94.9 1.08 108.4 106.9 94.2 108.2 111.8 110.0 113.9 2.84 99.9 125.2 87.2 75.2 94.7 83.7 80.1 100.0 115.6 125.1 125.3 121.9 127.2 130.4 1.87 86.6 125.7 66.4 46.3 72.7 58.7 58.2 92.4 113.5 124.1 123.4 112.5 120.2 120.8 .97 125.6 124.2 127.1 130.4 136.9 131.7 122.1 114.6 119.6 127.0 128.9 139.9 140.8 148.8 2.53 109.7 114.3 106.9 114.3 109.2 101.3 102.6 107.4 108.8 110.7 111.7 110.0 90.9 102.5 108.9 113.6 116.1 117.1 122.3 100.3 120.1 124.7 133.6 133.1 132.2 86.3 73.2 69.5 79.3 76.2 84.3 88.8 111.5 108.6 108.0 114.7 111.4 111.1 108.6 116.4 112.5 107.8 103.9 100.4 103.4 105.1 107.5 110.0 20.67 112.5 115.5 112.0 118.4 120.5 4.32 101.2 106.2 92.8 106.3 103.3 16.34 115.4 117.9 117.1 121.6 125.0 8.37 110.6 114.4 109.7 115.5 120.5 7.98 2.64 1.91 3.43 2.25 120.4 126.1 103.9 125.2 131.3 121.5 135.4 107.2 118.7 121.5 117.4 110.4 107.1 117.3 136.2 81.9 111.0 113.3 111.4 113.0 112.2 113.2 112.2 118.3 104.8 95.8 85.5 95.0 102.0 102.5 102.6 101.8 120.7 114.3 112.8 115.7 115.9 114.8 116.0 114.9 121.6 118.4 111.3 106.6 108.1 108.5 108.7 110.0 110.9 115.6 124.8 127.9 129.7 123.1 117.5 130.2 129.6 134.3 132.8 127.6 107.9 111.4 111.0 106.2 100.7 112.8 115.1 117.0 113.6 115.4 139.0 146.6 146.6 131.0 121.2 119.3 123.2 97.4 120.3 132.7 123.7 123.9 99.6 137.0 146.7 101.6 94.3 92.7 123.7 121.2 122.3 125.7 125.7 131.2 101.8 100.1 107.1 134.3 129.6 123.8 143.0 137.1 129.2 119.1 128.0 132.4 144.6 102.0 109.2 118.4 125.7 122.3 129.0 Equipment Business equipment............................... 12.74 101.1 105.9 100.0 99.1 97.5 95.3 96.6 96.0 95.3 94.2 97.3 Industrial equipment....................... Building and mining equip.......... Manufacturing equipment.......... Power equipment......................... 6.77 98.8 102.6 98.3 96.3 98.9 96.6 95.0 93.2 90.8 93.9 92.8 92.4 90.3 92.3 1.45 95.9 98.7 91.5 87.2 93.1 93.2 97.0 95.3 89.8 93.3 90.3 91.7 90.9 91.5 3.85 91.9 94.3 90.1 89.7 91.8 88.0 85.6 83.5 81.9 84.3 82.9 82.0 79.1 81.0 1.47 119.9 128.0 126.7 122.7 123.2 122.5 117.4 116.3 115.1 119.6 120.9 120.3 119.2 122.6 Commercial, transit, farm eq.*. . . . Commercial equipment............... Transit equipment....................... Farm equipment........................... 2.00 Defense and space equipment.............. Military products............................. 5.97 103.7 109.7 102.0 102.3 104.6 98.4 95.6 95.6 94.8 99.7 99.7 98.5 98.6 102.9 3.30 110.6 115.5 113.0 112.7 113.5 109.2 106.3 103.4 101.8 105.3 104.7 105.3 106.0 109.6 94.4 102.3 90.1 91.1 90.5 81.5 79.6 85.2 87.1 91.5 91.0 88.9 89.0 93.8 .67 97.7 103.0 83.5 84.6 102.4 95.5 90.1 88.0 83.4 96.7 100.9 93.7 90.9 97.2 7.68 5.15 87.9 89.7 87.9 90.6 84.9 87.2 84.2 87.0 84.0 82.7 85.8 84.5 82.4 83.7 82.3 82.9 80.5 82.8 78.1 80.3 77.7 80.1 76.0 78.9 76.7 79.7 76.4 79.8 Intermediate products Construction products......................... Misc. intermediate products............... 5.93 110.6 114.9 108.9 114.3 114.5 115.2 110.1 105.4 103.3 109.9 111.6 115.8 116.6 118.3 7.34 113.0 115.2 114.2 117.5 119.0 116.6 113.1 108.8 105.8 109.1 109.1 110.0 110.4 113.4 Materials Durable goods materials ...................... Equipment parts.............................. Durable materials nec..................... Nondurable goods materials ................. Textiles, paper, and chemicals........ Nondurable materials nec............... Fuel and power, industrial................. 20.91 103.4 109.3 98.3 103.0 105.3 97.2 94.0 98.0 99.8 103.2 104.2 104.1 107.2 106.6 4.75 96.5 103.8 93.2 98.1 101.1 82.3 80.3 100.4 102.9 104.6 104.5 102.0 106.4 105.7 5.41 95.1 100.0 90.0 92.4 94.6 87.7 85.8 86.7 87.8 88.9 89.0 87.0 89.4 89.4 10.75 110.5 116.4 104.7 110.4 112.5 108.6 104.2 102.7 104.4 109.8 111.8 113.7 116.6 115.7 13.99 112.5 112.0 106.5 111.4 113.0 116.1 114.9 110.0 110.9 113.3 112.0 113.7 114.2 114.4 8.58 113.0 113.6 106.4 111.2 113.1 115.0 113.8 108.3 110.4 114.3 112.8 115.6 115.8 116.1 5.41 111.5 109.5 106.7 111.6 112.7 117.8 116.6 112.7 111.6 111.6 110.8 110.8 111.7 111.7 2.89 117.0 116.6 109.5 119.0 118.7 118.6 119.0 119.5 119.9 120.5 121.9 121.4 119.5 119.7 Supplementary groups Containers............................................ F o r N o te see p. A-63. 9.34 104.7 107.8 97.6 107.7 109.3 110.3 103.0 94.0 99.1 104.9 105.9 106.9 107.1 110.2 1.82 119.5 123.9 117.4 124.0 121.9 125.9 119.5 108.6 112.6 119.2 108.1 113.8 120.0 119.6 * Referred to as “Nonindustrial equipment” in the article published in the July 1971 B u l l e t i n , pp. 551-76. AUGUST 1971 □ INDUSTRIAL PRODUCTION: N.S.A. A 63 INDUSTRY GROUPINGS (1967 = 100) Grouping Manufacturing, total ............................ Durable............................................ Nondurable...................................... Mining and utilities............................. Mining.............................................. Utilities............................................ 1967 pro por tion 1970 aver age* 1970 June July Aug. Sept. 1971 Oct. Nov. Dec. Jan. Feb. Mar. 88.55 105.2 109.5 101.6 104.9 107.6 104.7 101.2 99.7 100.9 104.3 104.4 101.5 106.6 91.4 99.3 102.2 97.6 94.6 95.9 96.8 100.2 100.6 110.6 113.7 107.6 113.1 115.3 115.0 110.7 105.2 106.8 110.2 109.8 118.0 116.3 118.2 123.6 124.1 120.7 117.5 119.5 120.6 119.7 119.4 109.7 109.2 104.7 110.7 111.6 113.4 113.2 112.0 108.7 108.6 109.7 52.33 36.22 11.45 6.37 5.08 128.5 125.3 135.1 Apr. May June 105.0 105.7 107.5 101.5 111.7 117.0 110.9 124.6 102.3 115.2 119.3 110.4 130.5 104.4 101.3 102.2 105.7 110.0 111.0 112.0 114.5 111.1 100.4 111.7 117.9 110.4 139.9 139.8 129.8 123.0 128.9 135.6 133.7 131.5 127.3 Durable manufactures Primary and fabricated metals ............ 12.55 108.1 112.7 100.8 107.1 Machinery and allied goods ................. 32.44 Primary metals................................. Iron and steel, subtotal............... Fabricated metal products.............. Machinery........................................ Nonelectrical machinery............. Electrical machinery.................... Transportation equipment.............. Motor vehicles and p arts............ Aerospace and misc. trans. eq. .. Instruments...................................... Lumber, clay, and glass ....................... Lumber and products..................... Clay, glass, and stone products. . . . Furniture and miscellaneous................. Furniture and fixtures..................... Miscellaneous manufactures........... 108.1 6.61 106.9 113.6 96.2 105.4 105.4 100.7 97.1 99.0 106.6 111.6 115.2 115.8 119.8 112.8 4.23 105.3 112.6 96.4 105.4 103.1 98.7 94.2 96.4 105.2 110.7 114.3 117.1 119.1 109.2 5.94 109.4 111.7 106.9 109.0 111.1 108.6 106.0 105.8 104.7 108.2 106.3 107.7 108.6 109.2 97.6 103.5 94.6 93.6 97.8 91.9 89.3 91.9 92.8 95.1 94.9 93.4 94.4 96.2 17.39 100.5 103.8 98.3 9 8.4 102.7 98.8 95.4 92.6 92.4 96.0 95.8 94.9 94.8 96.7 9.17 99.6 103.2 98.6 96.7 100.5 95.8 93.3 90.4 88.9 94.3 93.6 92.5 91.4 93.2 8 22 101.4 104.5 98.0 100.2 105.2 102.2 97.7 95.0 96.3 97.8 98.3 97.5 98.6 100.7 9.29 90.3 103.2 85.1 80.9 87.7 75.6 73.8 88.9 93.1 95.4 94.6 91.6 94.2 96.1 4.56 96.9 121.4 89.4 81.6 94.2 71.8 69.5 102.0 112.9 118.9 117.7 112.0 116.9 120.5 4.73 83.9 85.6 81.0 80.2 81.5 79.2 77.9 76.3 74.1 72.8 72.3 72.0 72.4 72.6 2.07 110.8 115.0 110.8 112.8 113.3 110.4 107.0 104.8 103.4 102.2 103.7 103.4 106.9 109.4 4.44 106.3 110.1 105.8 112.0 110.8 110.5 105.0 100.9 1.65 106.3 108.4 104.7 113.3 112.5 110.8 104.1 97.0 2.79 106.3 111.1 106.5 111.2 109.8 110.4 105.6 103.2 97.7 104.5 108.7 113.2 113.0 116.4 98.8 110.6 112.1 114.5 113.1 118.1 97.0 100.9 106.7 112.5 113.0 115.3 2.90 108.8 109.8 100.7 110.7 113.2 112.0 109.5 105.7 102.3 107.4 106.6 108.7 107.6 111.0 1.38 99.4 98.1 87.6 98.5 100.3 100.4 99.4 98.4 96.2 100.7 98.5 98.6 95.8 98.1 1.52 117.3 120.4 112.6 121.8 124.9 122.5 118.8 112.3 107.9 113.6 114.0 117.9 118.4 122.7 Nondurable manufactures Textiles, apparel and leather............... Textile mill products....................... Apparel products............................. Leather and products...................... Paper and printing ............................... Paper and products......................... Printing and publishing................... Chemicals, petroleum, and rubber....... Chemicals and products.................. Petroleum products......................... Rubber and plastics products......... Foods and tobacco ............................... Foods................................................ Tobacco products............................ 6 .90 100.2 103.3 2.69 106.3 108.0 3.33 97.8 102.4 .88 90.8 92.5 90 .7 103.7 101.6 102.9 96.5 95.8 109.5 107.6 107.6 103.5 89.4 101.5 99.6 101.5 93.7 80.2 94.4 90.6 93.8 85.6 7.92 107.8 111.1 106.7 111.4 111.8 111.8 108.0 87.3 95.7 101.8 101.7 101.6 101.6 102.9 93.5 102.0 107.6 108.2 108.5 110.4 109.2 83.5 92.3 99.4 99.4 99.3 98.0 82.6 88.8 92.7 90.4 88.8 87.9 ’ 88.9 99.5 101.3 105.4 103.2 107.4 106.9 108.3 3.18 113.3 114.6 105.7 112.5 109.5 117.7 114.2 102.3 115.5 118.9 113.6 117.8 116.3 114.8 4.74 104.1 108.7 107.3 110.6 113.3 107.8 103.8 97.6 91.7 96.4 96.2 100.4 100.5 104.0 11.92 118.2 121.9 117.1 118.4 7.86 120.2 125.2 119.9 120.4 1.80 112.6 114.7 115.0 117.0 2.26 115.7 115.9 108.9 112.8 9.48 110.8 113.1 122.4 120.4 118.7 117.1 114.7 119.4 119.7 122.2 121.4 127.0 124.7 122.7 120.2 118.7 115.1 118.9 119.5 124.3 125.0 128.2 118.1 115.2 116.1 116.3 112.4 113.5 112.0 110.9 111.7 119.3 118.0 116.5 115.4 112.0 115.3 125.8 126.4 124.0 116.8 128.8 108.7 114.7 119.3 119.7 113.1 107.9 109.5 108.8 108.8 109.6 110.6 115.0 8.81 111.7 113.8 110.0 115.2 120.3 120.3 113.9 109.8 109.7 109.2 110.2 110.9 111.5 116.0 .67 100.0 104.0 91.5 108.0 106.7 112.4 103.1 83.5 106.4 103.0 90.5 92.7 99.3 Mining 97.7 98.7 101.0 107.2 117.0 115.8 .51 131.3 117.5 139.7 144.0 141.2 135.2 124.7 116.9 115.0 118.3 117.9 126.1 145.9 146.9 .75 98.8 102.6 103.2 101.9 100.5 104.9 101.7 97.7 86.0 85.3 89.5 94.4 97.4 94.6 Metal, stone, and earth minerals ......... 1.26 112.0 121.0 118.0 118.9 117.0 117.2 111.0 105.5 Coal, oil, and g a s ................................. 5.11 Metal mining................................... Stone and earth minerals................ Coal.................................................. Oil and gas extraction..................... 109.2 106.3 101.4 108.7 110.3 112.5 113.8 113.6 111.4 111.0 111.8 111.2 109.4 109.0 .69 105.8 102.9 78.8 115.9 112.6 116.2 110.3 103.0 111.1 109.1 114.7 117.6 112.4 111.7 4.42 109.7 106.8 105.0 107.6 109.9 111.9 114.4 115.2 111.4 111.3 111.3 114.1 112.4 111.8 Utilities Electric................................................. Gas........................................................ 3.91 130.8 126.6 139.3 145.5 145.2 132.2 123.2 130.8 139.3 136.7 133.6 128.0 124.2 131.6 1.17 121.0 121.0 121.2 121.4 121.7 121.9 122.1 122.4 123.0 123.6 124.3 N o te . —Published groupings include some series and subtotals not shown separately. A description and historical data are available in Industrial Production—1957-59 Base. Figures for individual series and subtotals (N.S.A.) are published in the monthly Business Indexes release. A 64 BUSINESS ACTIVITY; CONSTRUCTION □ AUGUST 1971 SELECTED BUSINESS INDEXES (1967= 100, except as noted) Manu facturing 2 Industrial production Ca Nonagpacity Con riculutiliza struc tural Products tion tion em in mfg. con Em ploy Final products Pay tracts ploy ment— Manu (195759 = rolls Total i ment Inter Mate factur 100) ing mediate rials Con Total sumer Equip prod 1957-59=100 ucts goods ment Market Period Total Total Prices 4 In dustry Total retail sales 3 Con sumer Whole sale com modity 87.4 87.6 84.5 93.6 85.4 79 83 82 79.5 80.1 80.5 94.8 89 92 97 98 105 80.2 81.4 84.3 1952.... 1953.... 1954.... 51.9 51.8 50.8 53.3 47.9 55.1 52.0 5i.5 91.3 94.2 83.5 93.0 95.6 93.3 111.6 101.8 1955.. 1956.. 1957.. 1958.. 1959.. 58.5 61.1 61.9 57.9 64.8 56.6 59.7 61.1 58.6 64.4 54.9 58.2 59.9 57.1 62.7 59.5 61.7 63.2 62.6 68.7 48.9 53.7 55.9 50.0 54.9 62.6 65.3 65.3 63.9 70.5 61.5 63.1 63.1 56.8 65.5 58.2 60.5 61.2 56.9 64.1 90.0 87.7 83.6 74.0 81.5 96.5 99.8 100.7 97.8 101.5 105.5 106.7 104.7 95.2 100.1 101.4 93.5 105.1 1960.. 1961.. 1962.. 1963.. 1964.. 66.2 66.2 66.9 72.1 76.2 81.2 64.8 65.3 70.8 74.9 79.6 71.3 72.8 77.7 82.0 71.0 72.4 76.9 81.1 87.3 66.4 66.4 72.4 77.0 82.6 65.4 65.6 71.4 75.8 81.2 80.6 78.5 82.1 83.3 85.7 103.3 102.9 105.9 108.0 99.9 95.9 99.1 99.7 101.5 106.7 105.4 113.8 117.9 124.3 106 107 115 86.8 56.4 55.6 61.9 65.6 70.1 1965.. 1966. 1967. 1968. 1969. 1970. 89.2 97.9 88.1 86.8 96.1 78.7 93.0 93.0 99.2 91.0 99.8 89.1 98.3 100.0 93.0 98.6 100.0 100.0 100.0 105.7 105.8 105.8 106.6 104.7 105.7 110.7 109.7 109.0 111.1 106.1 112.0 106.7 106.0 104.4 110.3 96.1 111.9 100.0 105.7 112.4 107.8 100.0 105.7 110.5 105.2 88.5 93.2 90.5 94.8 85.3 100.0 84.6 113.2 83.7 123.7 76.6 125.4 129.3 133.8 134.5 106.7 113.5 113.6 115.2 117.3 111.5 136.6 151.7 155.1 167.9 180.8 177.4 138 148 153 165 171 178 104.2 109.8 116.3 102.5 106.5 110.4 1970—June.. July.. Aug.. Sept.. O ct... N ov.. Dec... 107.6 107.5 107.5 106.5 103.7 106.9 107.1 106.5 105.2 103.6 111.7 111.4 111.9 108.8 108.5 109.3 109.0 104.1 104.6 104.2 105.4 134.5 134.4 134.1 134.3 133.6 133.4 133.9 178.6 178.1 179.0 178.4 168.8 168.5 176.8 178 180 180 181 179 177 179 116.3 116.7 116.9 117.5 118.1 118.5 119.1 110.3 110.9 110.5 111.6 112.1 578.0 120.0 116.0 76.2 135.0 118.0 115.0 72.4 130.0 132.0 112.3 111.9 110.9 100.2 102.2 1971—Jan ... F eb... M ar.. Apr... M ay.. June.. July27. 105.3 105.7 105.5 106.2 107.0 106.9 106.0 102.9 103.0 102.5 103.6 104.0 104.2 104.0 88.9 110.9 89.3 112.5 88.4 112.0 88.1 112.4 87.8 112.9 87.6 112.5 87.1 110.6 106.5 106.8 107.1 107.5 108.9 108.7 107.1 106.6 106.9 105.5 \ 104.8 J 101.4 j 100.2 [ 102.4 J 103.3 I 103.9 103.2 J 104.4 1 105.5 } 105.2 1 104.6 117.0 134.5 107.9 179.1 r7 3 .1 126.0 134.4 107.5 177.6 141.0 134.5 107.1 178.8 161.0 134.7 107.4 178.7 v13.2 141.0 135.0 *•107.9 *•181.0 147.0 rl 34.5 *•107.3 *•182.4 134.1 106.4 178.2 182 185 189 192 '191 *•194 192 119.2 119.4 119.8 66.7 72.2 76.5 81.7 102.6 96.8 102.6 104.6 105.0 104.5 105.5 105.8 105.9 105.5 105.5 105.5 104.9 103.5 101.4 112.2 111.6 110.1 109.0 107.7 110.8 112.8 112.9 112.7 114.6 115.8 116.0 115.9 100.0 100.0 97.1 96.2 95.5 94.2 90.8 89.8 90.3 112.0 113.5 112.2 102.8 1 Employees only: excludes personnel in the Armed Forces. 2 Production workers only. 3 F.R. index based on Census Bureau figures. 4 Prices are not seasonally adjusted. 5 Figure is for second quarter 1970. N o te . —All series: Data are seasonally adjusted unless otherwise noted. 86.1 89.4 111.1 115.8 121.8 106.1 111.1 106.4 105.5 108.1 100.2 120 128 88.6 87.3 87.8 90.7 93.3 94.6 94.8 88.7 89.6 90.6 91.7 92.9 94.9 94.5 94.8 94.5 94.7 86.6 94.5 97.2 100.0 120.2 120.8 121.5 96.6 99.8 100.0 111.0 111.0 110.9 111.0 111.8 112.8 113.0 113.3 113.8 114.3 Capacity utilization: Based on data from Federal Reserve, McGrawHill Economics Department, and Department of Commerce. Construction contracts: F. W. Dodge Co. monthly index of dollar value of total construction contracts, including residential, nonresidential, and heavy engineering; does not include data for Alaska and Hawaii. Employment and payrolls: Based on Bureau of Labor Statistics data; includes data for Alaska and Hawaii beginning with 1959. Prices: Bureau of Labor Statistics data. CONSTRUCTION CONTRACTS AND PRIVATE HOUSING PERMITS (In millions of dollars, except as noted) 1970 Type of ownership and type of construction 1968 1971 1969 June July Aug. Sept. Oct. Nov. Dec, Jan. Feb. Mar. Apr. May June Total construction 1 ......................... 61,732 67,425 6,552 6,177 6,229 5,398 5,453 5,144 4,974 4,383 4,993 6,386 7,743 7,555 8,076 By type of ownership: Public........................................ Private 1.................................... 1,464 1,578 1,722 2,074 2,065 2,795 19,597 22,656 2,814 2,312 2,078 1,869 2,023 1,937 42,135 44,769 3,738 3,865 4,151 3,529 3,430 3,208 3,286 2,919 3,415 4,663 5,669 5,489 5,281 By type of construction: Residential building 1 .............. 24,838 25,219 2,347 2,347 2,349 2,176 2,301 1,947 2,045 1,631 1,819 2,729 3,168 3,310 Nonresidential building........... 22,512 25,667 2,469 2,469 2,331 1,943 1,862 1,701 1,693 1,711 1,654 2,199 2,080 2,263 Nonbuilding............................. 14,382 16,539 1,361 1,361 1,549 1,278 1,289 1,497 1,235 1,041 1,520 1,458 2,495 Private housing units authorized. . . (In thousands, S.A., A.R.) 1,330 1,299 1,306 1,275 1,326 1,371 1,521 1,487 1,768 1,635 rl ,563 1,627 1,638 1,927 1,817 i Because of improved collection procedures, data for 1-family homes N o te . —Dollar value of construction contracts as reported by the F. W. beginning Jan. 1968 are not strictly comparable with those for earlier Dodge Co. does not include data for Alaska or Hawaii. Totals of monthly periods. To improve comparability, earlier levels may be raised by ap data exceed annual totals because adjustments—negative—are made into proximately 3 per cent for total and private construction, in each case, accumulated monthly data after original figures have been published. and by 8 per cent for residential building. Private housing units authorized are Census Bureau series for 13,000 reporting areas with local building permit systems. AUGUST 1971 □ CONSTRUCTION A 65 VALUE OF NEW CONSTRUCTION ACTIVITY (In millions o f dollars) Public Private Nonresidential Period Total Total Nonfarm resi dential Total Buildings Indus trial Com mercial Other build ings 1 Other Total Mili tary High way Conser vation Other 2 & develop ment 1962 3........ 19634........ 196 4 59,667 41,798 63,423 44,057 66,200 45,810 24,292 26,187 26,258 17,506 17,870 19,552 2,842 2,906 3,565 5,144 4,995 5,396 3,631 3,745 3,994 5,889 6,224 6,597 17,869 19,366 20,390 1,266 1,189 938 6,365 7,084 7,133 1,524 1,690 1,729 8,714 9,403 10,590 196 5 196 6 196 7 1968._____ 196 9 197 0 72,319 75,120 76,160 84,692 90,866 91,266 50,253 51,120 50,587 56,996 62,806 63,079 26,268 23,971 23,736 28,823 30,603 29,275 23,985 27,149 26,851 28,173 32,203 33,806 5,118 6,679 6,131 5,594 6,373 5,930 6,739 6,879 6,982 8,333 10,136 10,521 4,735 5,037 4,993 4,873 5,521 5,841 7,393 8,554 8,745 9,373 10,170 11,459 22,066 24,000 25,573 27,696 28,060 28,297 852 769 721 824 949 782 7,550 8,355 8,538 9,295 9,276 2,019 2.195 2.196 2,046 1,796 11,645 12,681 14,511 15,531 16,039 1970—June July. Aug. Sept. Oct.. Nov. Dec.. 90,063 89,084 89,987 91,012 92,336 92,927 99,194 61,652 60,675 61,493 62,725 64,476 64,585 66,984 27,698 27,014 27,536 28,768 30,519 31,827 33,355 33,954 33,661 33.957 33.957 33.957 32,758 33,629 5,892 5,915 6,241 5,741 5,983 5,752 5,358 10,903 10,027 10,188 10,375 11,281 11,787 11,569 12,155 12,192 12,153 12,160 28,411 28,409 28,494 28,287 27,860 28,342 32,210 830 592 845 738 9,278 10,372 5,878 5,932 5,959 5,686 5,572 5,575 5.739 1971—Jan.. Feb.. Mar. Apr.’ May’ June, 99,749 102,024 102,159 103.852 103.852 104,284 69,651 70,311 72,116 74,211 74,207 74,440 34,170 35,114 36.842 38,057 38,882 38.843 35,481 35,197 35,274 36,154 35,325 35,597 5,904 5,596 5,244 5,472 5,182 4,558 11,558 11,846 12,169 12.214 12.214 12,295 6,083 5.740 5,637 6,098 5,920 6,708 11,936 30,098 12,015 31,713 12,224 30,043 12,370 29,641 12,009 r29,645 12,036 29,844 10,210 1 Includes religious, educational, hospital, institutional, and other buildings. 2 Sewer and water, formerly shown separately, now included in “Other.” 3 Beginning July 1962, reflects inclusion of new series affecting most private nonresidential groups. 866 701 768 1,016 924 882 882 875 822 4 Beginning 1963, reflects inclusion of new series under “Public” (for State and local govt, activity only). N o te . —Census Bureau data, monthly series at seasonally adjusted annual rates. NEW HOUSING UNITS (In thousands) Units started Private (S.A., A.R 0 Period Region Type of structure Total North North South east Central West Private Public Total FHA VA 1,463 1,610 1,529 30 32 32 339 292 264 221 450 1,492 1,642 1,562 261 108 205 78 71 59 118 151 191 220 294 323 310 964 779 844 900 810 811 87 61 72 81 87 84.7 422 325 376 527 571 534 1,510 1,196 1,322 1,548 1,500 1,467 1,473 1,165 1,292 1,508 1,467 1,434 37 31 30 40 33 33 246 195 232 283 r288 479 197 158 180 227 r237 418 49 37 53 56 r51 61 216 217 240 318 413 401 592 652 640 673 649 737 916 314 352 306 376 376 339 477 835 827 838 881 890 934 1,240 78 95 94 141 143 132 133 143 128 124 135 141 129 131 141 127 6 2 121 3 46 49 40 40 46 39 69 41 43 34 34 40 34 63 5 122 480 681 493 506 606 648 712 35 37 38 41 41 30 27 724 745 803 814 854 865 435 479 457 408 482 491 946 985 1,048 1,098 110 110 121 669 659 790 705 730 695 115 105 169 204 111 102 4 3 201 3 5 3 37 32 40 53 49 55 32 27 33 45 41 46 1,463 1,610 1,529 264 261 253 290 328 339 531 591 582 378 431 355 1965......................... 1966......................... 1967......................... 1968......................... 1969......................... 1970......................... 1,473 1,165 1,292 1,508 1,467 1,429 270 207 215 227 206 217 362 288 337 369 349 291 575 473 520 619 588 611 1970—June.............. 1,393 July............... 1,603 Aug............... 1,425 Sept............... 1,509 Oct................ 1,583 Nov............... 1,693 Dec................ 2,054 176 264 181 198 227 262 234 311 335 298 262 331 355 427 1971—Jan................ Feb................ Mar............... A pr.r ............ May r ............ June.............. 238 238 257 233 271 233 320 292 442 457 351 393 266 198 991 4'71 589 1,021 1,120 1,165 N o te .— Starts are Census Bureau series (including farm starts) except for Govt.-underwritten, which are from Federal Housing Admin, and Veterans Admin, and represent units started, including rehabilitation Total 972 1962......................... 1963......................... 1964......................... 1,725 1,754 1,959 1,912 1,959 1,982 5- or 12- to 4- morefamily family family Mobile home ship ments (N.S.A.) Government underwritten (N.S.A.) Private and public (N.S.A.) 87 111 102 109 109 122 202 195 168 197 192 3 2 2 1 1 6 6 6 6 5 6 5 5 7 8 8 9 25 28 36 43 41 47 units under FHA, based on field office reports of first compliance inspec tions. Data may not add to totals because of rounding. Mobile home shipments are as reported by Mobile Homes Manufac turers Assn. A 66 EMPLOYMENT □ AUGUST 1971 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT (In thousands of persons, except as noted) Civilian labor force (S.A.) Total noninstitutional population (N.S.A.) Period Not in labor force (N.S.A.) Total labor force (S.A.) Unem ployed Unemploy ment rate 1 (per cent; S.A.) Employed 2 Total Total In nonagricultural industries In agriculture 1965.......................... 1966........................... 19673......................... 1968........................... 1969........................... 1970........................... 129,236 131,180 133,319 135,562 137,841 140,182 52,058 52,288 52,527 53,291 53,602 54,280 77,178 78,893 80,793 82,272 84,239 85,903 74,455 75,770 77,347 78,737 80,733 82,715 71,088 72,895 74,372 75,920 77,902 78,627 66,726 68,915 70,527 72,103 74,296 75,165 4,361 3,979 3,844 3,817 3,606 3,462 3,366 2,875 2,975 2,817 2,831 4,088 4.5 3.8 3.8 3.6 3.5 4.9 1970—July................ Aug................ Sept................ Oct................. Nov................ Dec................. 140,259 140,468 140,675 140,886 141,091 141,301 52,304 53,220 55,019 54,631 54,705 55,137 85,865 85,904 86,084 86,379 86,512 86,622 82,711 82,770 82,975 83,300 83,473 83,609 78,574 78,508 78,479 78,691 78,550 78,463 75,066 75,073 75,043 75,398 75,197 75,055 3,508 3,435 3,436 3,293 3,353 3,408 4,137 4,262 4,496 4,609 4,923 5,146 5.0 5.1 5.4 5.5 5.9 1971—Jan................. Feb................. Mar................ Apr................. May............... June............... July................ 141,500 141,670 141,885 142,088 142,285 142,482 142,685 55,872 56,017 56,286 56,308 56,331 54,698 53,877 86,873 86,334 86,405 86,665 87,028 85,948 86,626 83,897 83,384 83,475 83,783 84,178 83,132 83,829 78,864 78,537 78,475 78,698 78,961 78,443 78,941 75,451 75,208 75,079 75,140 75,503 75,149 75,574 3,413 3,329 3,396 3,558 3,458 3,294 3,367 5,033 4,847 5,000 5,085 5,217 4,689 4,888 6 .0 1 Per cent of civilian labor force. 2 Includes self-employed, unpaid family, and domestic service workers. 3 Beginning 1967, data not strictly comparable with previous data. Description of changes available from Bureau of Labor Statistics. 6.2 5.8 6 .0 6.1 6.2 5.6 5.8 N o te . —Bureau of Labor Statistics. Information relating to persons 16 years of age and over is obtained on a sample basis. Monthly data relate to the calendar week that contains the 12th day; annual data are averages of monthly figures. EMPLOYMENT IN NONAGRICULTURAL ESTABLISHMENTS, BY INDUSTRY DIVISION (In thousands of persons) Contract construc tion Period Total Manufac turing 1966......................................................... 1967......................................................... 1968......................................................... 1969......................................................... 1970......................................................... 60,815 63,955 65,857 67,915 70,274 70,664 18,062 19,214 19,447 19,781 20,169 19,393 632 627 613 606 619 622 3,186 3,275 3,208 3,285 3,437 3,347 1970—July............................................... Aug............................................... Sept.............................................. Oct................................................ Nov............................................... Dec............................................... 70,587 70,414 70,531 70,182 70,085 70,303 19,402 19,271 19,285 18,684 18,538 18,842 618 619 621 621 625 625 1971—Jan................................................ Feb................................................ Mar............................................... A pr............................................... May.............................................. JuneP............................................ July*............................................ 70,652 70,590 70,659 70,735 70,885 70,647 70,456 18,807 18,728 18,672 18,690 18,738 18,634 18,502 1970—July............................................... Aug............................................... Sept.............................................. Oct................................................ Nov.............................................. Dec............................................... 70,602 70,527 70,922 70,692 70,644 71,234 1971—Jan................................................ Feb............................................... Mar.............................................. A pr.............................................. May.............................................. June*............................................ July*............................................ 69,622 69,533 69,875 70,391 70,834 71,399 70,404 Transporta tion & pub lic utilities Trade Finance Service Govern ment 4,036 4,151 4,261 4,310 4,431 4,498 12,716 13,245 13,606 14,084 14,645 14,950 3,023 3,100 3,225 3,382 3,557 3,679 9,087 9,551 10,099 10,623 11,577 10,074 10,792 11,398 11,845 12,204 12,597 3,314 3,305 3,262 3,278 3,303 3,319 4,539 4,520 4,511 4,509 4,493 4,437 14,933 14,912 14,961 15,011 14,945 14,851 3,676 3,670 3,684 3,696 3,711 3,723 11,514 11,521 11,622 11,665 11,695 11,727 12,591 12,596 12,585 12,718 12,775 12,779 625 623 624 623 622 621 601 3,241 3,198 3,254 3,289 3,264 3,231 3,195 4,499 4,521 4,516 4,491 4,494 4,484 4,474 15,133 15,141 15,151 15,158 15,211 15,171 15,193 3,746 3,745 3,753 3,764 3,779 3,796 3,790 11,778 11,785 11,803 11,800 11,819 11,778 11,750 12,823 12,849 12,920 12,958 12,932 12,951 19,325 19,446 19,512 18,850 18,645 18,864 635 636 628 622 623 621 3,572 3,606 3,500 3,471 3,379 3,226 4,593 4,574 4,561 4,527 4,515 4,446 14,924 14,869 14,936 15,038 15,191 15,744 3,738 3,732 3,695 3,689 3,697 3,704 11,698 11,648 11,634 11,677 11,660 11,645 12,117 12,016 12,456 12,818 12,934 12,984 18,622 18,568 18,528 18,525 18,601 18,778 18,382 611 606 608 617 622 636 617 2,910 2,833 2,955 3,154 3,257 3,406 3,444 4,427 4,444 4,457 4,455 4,485 4,533 4,528 14,899 14,757 14,831 15,017 15,119 15,239 15,183 3,701 3,708 3,727 3,749 3,771 3,826 3,854 11,554 11,608 11,697 11,800 11,890 11,966 11,938 12,898 13,009 13,072 13,074 13,089 13,015 12,458 Mining 11,211 seasonally adjusted 12,886 NOT SEASONALLY ADJUSTED N o t e . —Bureau of Labor Statistics; data include all full- and parttime employees who worked during, or received pay for, the pay pe riod that includes the 12th of the month. Proprietors, self-employed persons, domestic servants, unpaid family workers, and members of the Armed Forces are excluded. Data on total and government employment have been revised back to 1964 due to adjustment of State and local government series to Oct. 1967 Census of Governments. Beginning with 1968, series has been adjusted to Mar. 1969 bench mark. AUG UST 1971 o EMPLOYMENT AND EARNINGS A 67 PRODUCTION WORKER EMPLOYMENT IN MANUFACTURING INDUSTRIES (In thousands of persons) Seasonally adjusted 1 Industry group 1970 Not seasonally adjusted 1 1971 1970 1971 July May June* July* July May June* July* 14,090 13,588 13,520 13,408 13,958 13,474 13,637 13,244 Durable goods................................................................. Ordnance and accessories...................................... Lumber and wood products.................................. Furniture and fixtures............................................ Stone, clay, and glass products............................. Primary metal industries........................................ 8,082 131 491 373 499 1,033 7,670 7,632 7,722 1,002 7,993 130 508 366 513 1,044 7,650 496 378 497 989 7,564 99 497 379 490 955 1,012 516 379 510 1,012 7,441 99 515 371 504 966 Fabricated metal products.................................... Machinery............................................................... Electrical equipment and supplies......................... Transportation equipment..................................... Instruments and related products......................... Miscellaneous manufacturing industries............... 1,058 1,316 1,289 1,290 278 324 1,024 1,156 1,187 1,255 257 316 1,019 1,146 1,181 1,253 257 316 1,020 1,136 1,172 1,253 257 306 1,039 1,309 1,264 1,228 276 316 1,018 1,158 1,170 1,260 255 312 1,031 1,157 1,176 1,264 258 319 1,129 1,149 1,152 255 299 Nondurable goods......... ................................................. Food and kindred products................................... Tobacco manufactures........................................... Textile-mill products.............................................. Apparel and related products............................... Paper and allied products...................................... 6,008 1,203 67 839 1,223 544 5,918 1,194 64 830 1,219 522 5,888 1,186 62 825 1,204 523 5,844 1,167 59 823 1,198 512 5,965 1,231 59 831 1,177 545 5,824 1,130 54 826 1,216 517 5,915 1,176 54 836 1,218 530 5,803 1,194 51 815 1,154 514 Printing, publishing, and allied industries............ Chemicals and allied products.............................. Petroleum refining and related industries............. Rubber and misc. plastic products......................... Leather and leather products................................. 680 605 118 444 285 666 665 593 117 438 275 669 594 116 444 262 677 608 664 596 117 433 271 666 666 100 101 497 376 499 595 117 437 274 1 Data adjusted to 1969 benchmark. 122 435 280 100 495 371 499 100 598 120 440 277 1,002 597 120 435 257 N o te . —Bureau of Labor Statistics; data cover production and related workers only (full- and part-time) who worked during, or received pay for, the pay period that includes the 12th of the month. HOURS AND EARNINGS OF PRODUCTION WORKERS IN MANUFACTURING INDUSTRIES Average hours worked 1 (per week; S.A.) Industry group 1970 1971 July May June* Average weekly earnings 1 (dollars per week; N.S.A.) 1970 July* July 1971 May June* Average hourly earnings1 (dollars per hour; N.S.A.) 1971 1970 July* July May June* July* Total.................................................................. 40.1 40.0 40.0 39.9 134.46 142.40 143.51 141.33 3.37 3.56 3.57 3.56 Durable goods..................................................... Ordnance and accessories.......................... Lumber and wood products...................... Furniture and fixtures................................ Stone, clay, and glass products................. Primary metal industries............................ 40.7 40.3 39.8 39.3 41.2 40.7 40.5 41.5 39.8 39.9 41.5 40.9 40.6 41.7 40.2 40.0 41.8 40.9 40.4 42.0 39.5 39.9 42.0 40.8 143.87 143.28 118.31 107.86 141.25 159.96 153.50 158.53 125.42 113.76 151.37 170.98 155.04 160.51 129.43 116.18 154.87 173.86 151.60 161.44 124.11 113.87 155.77 172.16 3.57 3.60 2.98 2.78 3.42 3.94 3.79 3.82 3.12 3.63 4.16 2.88 3 80 3.84 3.18 2.89 3.67 4.22 3.79 3.89 3.15 2.89 3.70 4.23 Fabricated metal products......................... Electrical equipment and supplies............. Transportation equipment......................... Instruments and related products............. Miscellaneous manufacturing industries... 41.3 41.1 40.4 41.2 40.3 39.1 40.5 40.4 39.9 41.1 39.9 39.0 40.7 40.7 40.0 41.5 39.7 38.7 40.6 40.8 40.1 40.2 40.2 38.9 144.79 153.06 132.14 166.06 132.87 108.29 151.84 160.39 139.30 183.34 139.70 114.37 153.38 162.79 140.35 184.26 139.70 114.85 149.95 160.39 138.25 174.68 140.10 112.69 3.54 3.77 3.32 4.08 3.33 2.82 3.74 3.97 3.50 4.45 3.51 2.94 3.75 3.99 3.50 4.44 3.51 2.96 3.73 3.98 3.50 4.40 3.52 2.95 Food and kindred products....................... Tobacco manufactures............................... Textile-mill products.................................. Apparel and related products................... Paper and allied products.......................... 39.3 40.2 37.9 40.3 35.5 41.7 39.3 40.5 38.2 40.7 35.5 42.0 39.2 40.3 36.3 40.7 35.4 42.2 39.3 39.8 37.3 41.0 35.9 42.6 121.44 128.61 113.63 96.96 84.61 144.70 127.01 136.21 125.07 103.94 87.69 152.04 128.44 136.89 119.97 104.96 88.29 154.82 128.90 137.02 121.77 103.94 88.43 156.77 3.09 3.16 3.03 2.43 2.39 3.47 3.24 3.38 3.30 2.56 2.47 3.62 3.26 3.38 3.26 2.56 2.48 3.66 3.28 3.40 3.30 2.56 2.47 3.68 Printing, publishing, and allied industries. Chemicals and allied products................... Petroleum refining and related industries . Rubber and misc. plastic products........... Leather and leather products.................... 37.9 41.5 42.6 40.8 37.6 37.7 41.4 42.2 40.4 38.0 37.7 41.8 42.5 40.7 37.7 37.6 41.1 41.9 40.6 37.6 148.18 153.59 184.45 129.68 93.99 157.17 161.85 194.23 135.81 97.52 157.96 164.69 195.14 137.16 98.56 157.50 162.77 195.14 137.89 96.27 3.92 3.71 4.25 3.21 2.48 4.18 3.90 4.57 3.37 2.58 4.19 3.94 4.57 3.37 2.58 4.20 3.97 4.57 3.43 2.54 i Data adjusted to 1969 benchmark. N o te . —Bureau of Labor Statistics; data are for production and related workers only. A 68 PRICES □ AUGUST 1971 CONSUMER PRICES (1967 = 100) Housing All items Food 1929......................... 1933......................... 1941......................... 1945......................... 51.3 38.8 44.1 53.9 1960......................... 1961......................... 1962......................... 1963.......................... 1964.......................... Period Homeownership Health and recreation Fuel oil and coal Gas and elec tricity 40.5 48.0 81.4 79.6 Total Rent 48.3 30.6 38.4 50.7 53.7 59.1 76.0 54.1 57.2 58.8 88.7 89.6 90.6 91.7 92.9 88.0 89.1 89.9 91.2 92.4 90.2 90.9 91.7 92.7 93.8 91.7 92.9 94.0 95.0 95.9 86.3 86.9 87.9 89.0 90.8 89.2 91.0 91.5 93.2 92.7 98.6 99.4 99.4 99.4 99.4 1965......................... 1966......................... 1967.......................... 1968.......................... 1969.......................... 1970.......................... 94.5 97.2 100.0 104.2 109.8 116.3 94.4 99.1 100.0 103.6 108.9 114.9 94.9 97.2 100.0 104.2 110.8 118.9 96.9 98.2 100.0 102.4 105.7 110.1 92.7 96.3 100.0 105.7 116.0 128.5 94.6 97.0 100.0 103.1 105.6 110.1 19 70—June.............. July............... Aug............... Sept............... Oct................ Nov............... Dec................ 116.3 116.7 116.9 117.5 118.1 118.5 119.1 115.2 115.8 115.9 115.7 115.5 114.9 115.3 118.6 119.2 119.9 120.6 121.2 121.9 122.6 109.8 110.1 110.5 110.9 111.4 111.8 112.6 128.5 129.0 130.0 131.3 131.9 132.5 133.4 1971—Jan................. Feb................ Mar............... Apr............... M ay.............. June.............. 119.2 119.4 119.8 120.2 120.8 121.5 115.5 115.9 117.0 117.8 118.2 119.2 122.7 122.6 122.4 122.5 123.2 124.0 112.9 113.6 113.9 114.4 114.7 115.2 133.4 132.3 131.2 130.9 131.6 133.0 Fur Apparel Trans nish and porta ings upkeep tion and opera tion Total Read Other ing goods and and recrea serv tion ices Med ical care Per sonal care 37.0 42.1 41.2 55.1 47.7 62.4 49.2 56^9 48.5 36.9 44.8 61.5 44.2 47.8 93.8 93.7 93.8 94.6 95.0 89.6 90.4 90.9 91.9 92.7 89.6 90.6 92.5 93.0 94.3 85.1 86.7 88.4 90.0 91.8 79.1 81.4 83.5 85.6 87.3 90.1 90.6 92.2 93.4 94.5 87.3 89.3 91.3 92.8 95.0 87.8 88.5 89.1 90.6 92.0 99.4 99.6 100.0 100.9 102.8 107.3 95.3 97.0 100.0 104.4 109.0 113.4 93.7 96.1 100.0 105.4 111.5 116.1 95.9 97.2 100.0 103.2 107.2 112.7 93.4 96.1 100.0 105.0 110.3 116.2 89.5 93.4 100.0 106.1 113.4 120.6 95.2 97.1 100.0 104.2 109.3 113.2 95.9 97.5 100.0 104.7 108.7 113.4 94.2 97.2 100.0 104.6 109.1 116.0 108.6 109.6 110.1 111.4 112.5 113.9 114.9 106.3 106.6 107.3 107.6 108.8 109.9 110.7 113.5 113.7 113.9 114.2 114.5 115.1 115.3 116.0 115.3 115.4 117.2 118.2 119.0 119.2 112.7 113.4 112.7 113.0 115.2 116.0 116.9 116.1 116.6 117.2 117.7 118.2 118.7 119.1 120.5 121.3 122.0 122.6 122.8 123.4 124.2 112.7 113.1 113.7 114.0 114.4 114.5 115.0 113.3 113.7 114.2 114.7 115.2 116.0 116.2 115.7 116.2 116.8 117.4 118.0 118.3 118.5 116.7 117.2 117.4 117.3 117.2 117.4 111.5 112.8 113.3 113.9 114.4 114.6 115.4 115.9 116.4 117.0 118.1 118.7 117.6 118.1 118.6 119.1 120.2 120.1 117.5 117.5 117.8 118.1 118.8 119.6 119.8 120.2 120.6 121.2 121.6 122.1 124.9 125.8 126.8 127.5 128.1 128.6 115.3 115.4 115.8 116.3 116.5 116.8 117.3 117.5 117.7 118.4 118.9 119.3 118.9 119.1 119.4 119.7 119.9 120.3 N o te . —Bureau of Labor Statistics index for city wage-earners and clerical workers. WHOLESALE PRICES: SUMMARY (1967 = 100) Industrial commodities Period Pro All Farm cessed com prod foods modi ucts and ties feeds Total I960............................. 94.9 1961............................. 94.5 1962............................. 94.8 1963............................. 94.5 1964............................. 94.7 97.2 96.3 98.0 96.0 94.6 Ma Non Trans Tex Hides, Fuel, Chem Rub Lum Paper, Met chin me porta Mis ery Furni tiles, ber, als, ture, tallic tion cella icals, ber, etc. etc. and etc. etc. etc. min equip neous etc. etc. etc. equip etc. erals ment 1 ment 89.5 91.0 91.9 92.5 92.3 95.3 94.8 94.8 94.7 95.2 99.5 97.7 98.6 98.5 99.2 90.8 91.7 92.7 90.0 90.3 96.1 101.8 103.1 97.2 100.7 99*2 96.7 99.1 96.3 96.3 97.9 96.8 93.7 98.'3 95! 5 95.3 91.0 91.6 93.5 95.4 98.1 95.2 96.3 95.6 95! 4 92.4 91.9 91.2 91.3 93.8 92.0 91.9 92.0 92.2 92.8 99.0 98.4 97.7 97.0 97.4 96.2 98.8 100 0 101 II 104.2 108.2 96.4 98.8 100 0 102.6 108.5 116.7 93.9 96.8 100 0 103 .*2 106.4 111.4 96.9 98.0 100.0 102.8 104.9 107.5 108.4 108.2 108.3 108.9 108.7 111.1 108.5 117.7 117.5 117.4 117.7 116.8 116.2 111.5 107.6 111.6 107.7 112.1 107.8 112.7 108.0 113.1 108.4 113.8 108.7 97.2 97.6 97.6 97.1 97.3 93.0 93.3 93.7 94.5 95.2 1965............................. 1966............................. 1967............................. 1968............................. 1969............................. 1970............................. 96.6 99.8 100.0 102.5 106.5 110.4 98.7 105.9 100.0 102.5 108.8 95.5 101.2 100.0 102.2 107.3 111.0 112.0 96.4 98.5 100.0 102.5 106.0 110.0 99.8 100.1 100.0 103.7 105.9 107.2 94.3 95.5 99.0 103.4 97.8 99.4 100.0 100.0 100.0 103.2 98!9 99! 8 108.6 101.0 99.9 110.1 105.9 102.2 95.9 97.8 100 0 103^4 105.4 108.6 95.9 100.2 100 0 113^3 125.2 113.7 1970—July.................. Aug................... Sept................... Oct.................... Nov................... Dec................... 110.9 113.4 113.3 110.5 108.5 112.9 111.0 112.1 113.0 111.0 107.8 111.8 110.9 107.0 111.7 111.0 107.1 110.7 110.0 110.2 110.4 111.3 111.3 111.7 107.1 107.4 107.5 107.3 107.1 106.7 109.8 109.8 109.9 110.4 110.9 110.4 109.0 109.7 109.4 109.5 109.1 109.4 113.5 114.0 114.2 113.1 111.9 1971—Jan.................... Feb................... Mar.................. Apr................... M ay................. June................. July.................. 111.8 108.9 111.8 112.2 106.9 111.7 113.5 103.8 108.4 112.2 109.0 116.5 114.2 109.3 118.8 109.5 112.3 112.8 113.9 113.3 112.5 106.7 112.4 113.0 104.2 109.1 117.5 109.3 116.4 114.6 109.7 119.0 109.7 112.6 113.0 113.0 113.7 112.8 106.9 112.5 112.8 104.5 109.1 123.4 109.3 116.5 114.9 109.6 120.9 109.5 112.8 113.3 113.0 113.5 113.3 107.5 114.0 113.0 104.5 109.0 124.6 109.6 117.8 115.0 109.7 121.6 109.7 112.7 113.8 114.0 114.5 113.7 107.8 114.4 114.2 104.3 108.7 124.9 109.9 118.5 115.3 109.9 121.8 109.8 112.5 114.3 116.0 114.9 113.9 108.5 114.2 114.4 104.4 108.7 126.1 110.2 118.5 115.5 109.8 122.2 110.0 112.6 114.6 113.4 116.0 114.5 109.2 114.2 114.4 104.4 109.7 130.6 110.5 119.4 115.7 110.0 123.3 110.3 112.8 1 For transportation equipment, Dec. 1968 = 100. 105.1 105.8 107.1 108.7 109.7 102.5 102.7 102.5 103.0 103.3 112.8 103.3 95.9 97.5 97.7 98.4 100.0 100.0 102.2 103.7 108.1 ioo’7 * 104.9 113.3 108.5 109.9 113.2 113.6 113.8 114.2 114.6 115.1 103.2 103.3 103.6 108.2 108.5 108.9 111.1 111.2 111.5 111.6 111.8 111.9 AUGUST 1971 □ PRICES A 69 WHOLESALE PRICES: DETAIL (1967= 100) 1970 1971 1970 July May June July 110.8 127.5 107.2 119.0 101.3 90.3 118.7 92.4 106.8 113.6 136.1 109.4 118.9 108.1 92.3 119.1 98.0 109.9 113.7 109.3 102.5 121.3 111.5 116.4 116.2 114.0 119.2 115.7 131.5 111.5 116.7 116.1 115.4 119.0 115.7 123.9 127.2 96.7 124.8 100.0 91.7 114.6 131.9 101.2 117.0 121.1 92.6 119.5 89.4 114.4 113.3 Processed foods and feeds: Cereal and bakery products.......... Meat, poultry, and fish.................. Dairy products............................... Processed fruits and vegetables Sugar and confectionery................ Beverages and beverage materials. Animal fats and oils....................... Crude vegetable oils....................... Refined vegetable oils.................... Vegetable oil end products............ Miscellaneous processed foods___ Manufactured animal feeds........... 111.0 113.9 104.0 120.6 128.3 118.5 113.9 104.6 131.6 118.5 113.9 107.4 111.5 119.6 116.2 115.9 119.4 115.9 135.7 136.7 135.5 122.8 105.1 99.3 102.2 110.9 103.6 106.6 109.6 93.5 99.7 112.2 104.3 113.6 110.9 93.4 101.4 112.3 104.5 118.7 111.9 92.6 101.9 113.3 104.8 119.9 96.4 108.6 112.9 106.8 121.4 113.0 116.7 107.9 114.0 114.4 116.8 108.2 114.0 114.4 116.8 108.2 150.5 125.9 102.5 104.1 104.8 100.2 182.8 147.6 106.9 112.6 113.2 107.4 182.5 150.5 107.5 113.0 113.2 107.4 182.9 150.5 107.7 113.5 113.2 107.2 P rep ared p a in t............................................ 101.4 112.4 100.7 Paint materials..................................... Drugs and pharmaceuticals................ 101.1 Fats and oils, inedible......................... 132.5 Agricultural chemicals and products.. 87.8 Plastic resins and materials................. 90.8 Other chemicals and products.......... 109.3 101.5 115.9 103.5 101.9 138.8 93.8 88.2 112.1 102.2 102.4 115.9 99.8 115.9 99.4 102.3 132.0 94.1 130.8 93.4 112.5 112.5 88.1 102.6 88.6 Rubber and plastic products: Crude rubber........................................ Tires and tubes..................................... Miscellaneous rubber products........... Plastic construction products (Dec. 1969 = 100)........................................ Unsupported plastic film and sheeting (Dec. 1970=100).............................. Laminated sheets, high pressure (Dec. 1970= 100).............................. 100.6 113.4 107.5 116.3 99.4 107.5 117.0 111.2 96.8 94.6 93.6 94.0 102.2 101.9 100.6 99.1 99.2 99.7 132.8 120.3 134.4 142.5 119.2 119.1 119.0 100.9 112.0 112.4 116.8 110.4 117..3 122.2 122.8 111.0 110.2 111.7 1 Retitled to include the direct pricing of plastic construction products; continuity of the group index is not affected. N o te . —Bureau of Labor Statistics indexes. 108.7 111.8 122.0 110.8 112.4 107.6 114.2 110.2 110.5 112.4 112.3 114.3 100.5 108.4 101.4 102.7 103.2 103.6 120.3 110.8 112.4 111.8 114.6 102.6 102.8 102.8 109.4 109.8 110.1 Iron and steel..................................... Steelmill products............................. Nonferrous metals............................. Metal containers............................... Hardware........................................... Plumbing equipment......................... Heating equipment........................... Fabricated structural metal products Miscellaneous metal products.......... 116.2 116.0 126.2 112.7 120.1 120.7 117.2 123.1 115.6 115.8 115.1 117.3 118.2 116.4 123.0 115.8 116.8 115.2 117.9 118.7 121.9 123.4 116.9 123.0 116.7 117.9 115.9 118.2 119.3 112.3 114.6 114.9 116.6 116.9 117.4 117.4 117.9 117.7 114.3 118.7 119.3 119.8 115.8 106.7 112.5 120.4 109.4 117.2 120.9 109.4 117.2 121.6 109.5 117.3 111.9 114.9 99.1 105.2 93.5 116.2 115.0 118.1 99.8 107.1 93.7 115.2 118.1 98.4 107.1 93.6 115.3 118.1 98.2 107.0 93.9 116.4 115.6 121.2 124.4 122.5 121.5 120.1 122.5 123.3 121.5 114.5 126.9 131.2 112.7 131.5 125.6 114.7 121.5 111.0 113.2 111.4 113.1 115.2 121.1 Agricultural machinery and equip... Construction machinery and equip.. Metalworking machinery and equip General purpose machinery and equipment...................................... Special industry machinery and equipment...................................... Electrical machinery and equip........ Miscellaneous machinery................. 121.1 121.2 121.6 Furniture and household durables: Household furniture....................... Commercial furniture..................... Floor coverings............................... Household appliances..................... Home electronic equipment............ Other household durable goods. . . 120.1 120.1 121.6 Flat glass.......................................... Concrete ingredients....................... Concrete products........................... Structural clay products excluding refractories................................... Refractories..................................... Asphalt roofing............................... Gypsum products............................ Glass containers.............................. Other nonmetallic minerals............ 112.2 119.6 109.9 119.7 97.9 98.0 119.6 111.7 114.5 126.7 123.6 101.2 114.5 126.9 130.7 104.0 131.5 124.8 107.0 115.2 114.2 120.4 114.4 109.5 116.7 108.4 105.2 109.3 112.4 116.5 111.7 105.9 112.6 112.6 131.5 124.8 98.8 118.7 Lumber and wood products: Lumber....................... Millwork.................... Plywood..................... Other wood products. Pulp, paper and products, excluding building paper and board............. Woodpulp.......................................... Wastepaper........................................ Paper.................................................. Paperboard......................................... Converted paper and paperboard. . . Building paper and board................ Nonmetallic mineral products: Chemicals and allied products: Industrial chemicals........................... July Machinery and equipment: Fuels and related products, and power: Coal....................................... Coke....................................... Gas fuels............................... Electric power....................... Crude petroleum................... Petroleum products, refined. June 113.8 106.9 Hides, skins, leather, and products: Hides and skins........... Leather......................... Footwear...................... Other leather products. May Metals and metal products: 107.4 120.3 111.3 110.9 117.1 113.1 133.5 114.8 112.5 Textile products and apparel: Cotton products........................... Wool products.............................. Manmade fiber textile products. Apparel.......................................... Textile housefurnishings.............. Miscellaneous textile products. .. July Pulp, paper, and allied products: Farm products: Fresh and dried produce. Grains.............................. Livestock......................... Live poultry..................... Plant and animal fibers. . Fluid milk........................ Eggs................................. Hay and seeds................. Other farm products....... 1971 Group Group Transportation equipment: Motor vehicles and equipment. Railroad equipment................... 120.8 Miscellaneous products: Toys, sporting goods, small arms, ammunition................................... Tobacco products............................. Notions.............................................. Photographic equipment and supplies Other miscellaneous products.......... 111.6 116.5 111.7 106.0 111.9 116.6 111.7 106.2 112.4 A 70 NATIONAL PRODUCT AND INCOME □ AUGUST 1971 GROSS NATIONAL PRODUCT (In billions of dollars) Item 1929 1933 1941 1950 1966 1967 103.1 Durable goods.............................................. Nondurable goods........................................ Structures.............................................. Producers’ durable equipment............. Residential structures............................... Nonfarm................................................ Change in business inventories.................. Net exports of goods and services................... Exports.......................................................... Imports.......................................................... Government purchases of goods and services.. Federal.......................................................... National defense...................................... Other......................................................... State and local.............................................. 77.2 9.2 37.7 30.3 45.8 3.5 22.3 20.1 16.2 1.4 14.5 10.6 3 .0 2 .4 5.0 .9 5.6 1.5 .6 4.0 3.8 .5 1.7 - 1.6 1.8 - 1 .4 1.1 7.0 5.9 8.5 1.3 1971 IIP Ir i 55.6 124.5 284.8 749.9 793.9 864.2 929.1 974.1 968.5 983.5 988.41.020.8 1,040.5 57.2 120.1 278.0 735.1 785.7 857.1 921.7 971.3 966.5 978.4 984.7 1,017.6 1,035.8 II i Final purchases.................................................. 101.4 1970r 1968r 1969r 1970" .4 2.4 2.0 8.0 2 .0 III IV 80.6 191.0 466.3 492.1 536.2 579.6 615.8 613.8 620.9 624.1 9.6 30.5 70.8 73.1 84.0 89.9 88.6 90.7 90.4 84.9 42.9 98.1 206.9 215.0 230.8 247.6 264.7 262.9 265.5 270.9 28.1 62.4 188.6 204.0 221.3 242.1 262.5 260.2 265.0 268.9 17.9 13.4 9.5 2.9 6 .6 3.9 3.7 4.5 4.0 1.3 5.9 4.6 24.8 16.9 13.8 3.1 7.9 54.1 121.4 116.6 126.0 137.8 135.3 134.1 138.6 137.3 47.3 106.6 108.4 118.9 130.4 132.5 132.1 133.5 133.6 27.9 81.6 83.3 88.8 98.6 102.1 102.1 104.8 100.8 9.2 18.7 19.4 18.6 28.5 53.1 25.0 24.5 14.8 15.0 28.0 55.3 25.1 24.5 5.3 43.4 38.1 34.5 64.1 31.8 31.2 7.4 7.3 36.8 65.4 30.4 29.7 36.6 65.6 29.9 29.3 7.5 30.3 58.5 30.1 29.5 7.1 6.9 2.8 2.5 5.2 46.2 41.0 2.5 50.6 48.1 2.0 55.6 53.6 3.6 62.9 59.3 644.6 97.6 272.0 275.0 660.1 100.0 279.4 280.7 143.8 150.1 140.6 104.3 145.4 106.1 2.1 1.8 37.3 67.5 28.7 28.1 5.1 4.7 37.1 63.7 ; 32.8 32.2 3.7 i 3.3 4.2 63.2 59.0 4.0 63.7 59.7 2.7 63.2 60.5 66.1 61.9 65.8 65.7 37.9 156.8 180.1 199.6 209.7 219.4 216.5 220.1 223.7 228.2 230.2 96 .7 96 .0 6.8 6.0 1.8 13.8 12.0 18.4 77.8 90.7 98.8 99.2 97.2 96.8 96.1 95.9 4.2 .1 73.0 23.7 131.5 72.0 24.0 134.2 Gross national product in constant (1958) dollars............................................................ 203.6 141.5 263.7 355.3 658.1 675.2 706.6 724.7 720.0 721.1 723.3 715.9 729.7 736.3 6.0 N o te . —Dept, of Commerce estimates. Quarterly data are seasonally adjusted totals at annual rates. For back data and explanation of series, 60.7 17.1 79.0 37.8 68.3 39.3 38.7 4.7 4.2 72.4 78.3 78.4 75.4 75.1 74.2 73.2 18.4 20.5 20.7 21.9 21.6 21.9 22.7 89.4 100.8 110.6 122.2 119.7 124.0 127.9 7.2 14.1 4.3 19.5 8 .2 37.9 66.3 36.4 35.7 3.2 3.0 see the Survey o f Current Business, July 1968, July 1969, July 1970, July 1971, and Supplement, Aug. 1966. NATIONAL INCOME (In billions of dollars) Item 1929 1933 1941 1950 1966 1970r 1967 1968 r 1969 r 1970 r II III 1971 IV Ir Up National income............................................... 86.8 40.3 104.2 241.1 620.6 653.6 711.1 763.7 795.9 793.4 802.2 802.1 832.2 Compensation of employees............................ 51.1 29.5 64.8 154.6 435.5 467.2 514.6 565.5 601.9 598.5 606.5 609.3 627.9 639.6 Wages and salaries ..................................... 50.4 29.0 62.1 .7 .5 2 .7 7.8 41.0 44.2 4 9.7 56.0 60.5 60.0 61.3 62.1 65.7 67.0 .1 .6 .1 .4 2 .0 4.0 3.8 20.3 20.7 21.9 22.3 24.3 25.4 27.8 28.2 29.6 30.8 29.5 30.4 30.1 31.2 30.1 32.0 33.1 32.6 33.6 33.4 Proprietors’ income......................................... Business and professional.......................... Farm ............................................................ 15.1 9.0 5.9 3.3 2.6 6.4 37.5 24.0 13.5 61.3 45.2 16.1 62.1 47.3 14.8 64.2 49.5 14.7 67.0 50.3 16.8 66.9 51.0 15.8 67.6 51.0 16.6 66.0 11.1 6.2 51.4 14.5 65.9 51.5 14.4 66.4 51.6 14.8 67.1 51.9 15.2 Rental income of persons............................... 5.4 2.0 3.5 9.4 20.0 21.1 21.2 22.6 23.3 23.2 23.4 23.7 23.8 24.2 10.5 - 1.2 15.2 37.7 82.4 78.7 84.3 78.6 70.8 71.5 73.0 69.0 79.0 10.0 17.7 1 .6 10.1 42.6 84.2 79.8 33.2 46.6 87.6 39.9 47.8 23.6 24.2 84.2 39.1 44.5 75.4 75.8 78.5 71.6 41.2 42.9 20.0 25.0 16.2 41.3 24.9 16.4 - 1.8 - 1.1 - 3 .3 - 5 .5 - 4 .5 - 4 .2 29.9 33.0 32.6 Private..................................................... Military................................................... Government civilian................................ Supplements to wages and salaries ............. Employer contributions for social in surance ................................................ Other labor income................................ Corporate profits and inventory valuation adjustment................................................... Profits before ta x ....................................... Profits tax liability................................ Profits after ta x ....................................... Dividends............................................ Undistributed profits.......................... 45.5 .3 4.6 1.4 23.9 .3 4.9 1.0 .5 146.8 394.5 423.1 464.9 509.6 541.4 538.5 545.2 547.2 562.3 572.6 51.9 124.4 316.8 331.3 369.2 405.5 426.6 424.4 429.4 429.9 441.2 450.0 1.9 5.0 14.6 16.2 17.9 19.0 19.4 19.5 19.2 18.6 19.2 18.6 8.3 17.4 63.1 69.5 77.8 85.1 95.5 94.5 96.6 98.6 101.8 104.0 .7 17.5 17.8 34.3 24.9 8.8 49.9 20.8 2.8 .4 2 .0 - 1.6 Inventory valuation adjustment................ .5 - 2.1 - 2 .5 - 5 .0 Net interest...................................................... 4.7 4.1 3.2 2 .0 8.6 5.8 4.4 5.7 16.0 N o te . —Dept, of Commerce estimates. Quarterly data are seasonally adjusted totals at annual rates. See also N o te to table above. 29.1 21.4 21.4 25.3 24.4 26.9 24.4 34.1 34.5 82.6 32.3 37.9 39.2 25.0 44.7 14.3 25.6 19.1 25.4 - 5 .5 - 2.6 - 3 .5 - 5 .2 33.4 34.2 35.0 35.8 35.6 25.2 17.7 AUGUST 1971 □ NATIONAL PRODUCT AND INCOME A 71 RELATION OF GROSS NATIONAL PRODUCT, NATIONAL INCOME, AND PERSONAL INCOME AND SAVING (In billions of dollars) 1929 Item 1933 1941 1950 1966 1967 1970 r 1968 r 1969 r 1970 r II 103.1 Less: Capital consumption allowances......... Indirect business tax and nontax lia- Plus: Subsidies less current surplus of gov- Equals: National income.................................. Less: Corporate profits and inventory valu ation adjustment............................... Contributions for social insurance. . . . Excess of wage accruals over disburse ments .................................................. IV 1971 lr 1\p 55.6 124.5 284.8 749.9 793.9 864.2 929.1 974.1 968.5 983.5 988.4 1 , 020.8 1,040.5 7.9 7.0 8 .2 18.3 63.9 68.9 89.8 91.7 93.2 7.0 7.1 .7 11.3 .5 .4 23.3 65.7 3.0 70.4 78.6 85.7 92.9 91.9 94.2 95.8 3.1 3.4 3.9 3.9 4.1 3.7 4.0 - . 7 - 2 .7 - 4 .1 - 4 .5 - 5 .8 - 3 .2 - 1.6 99.3 4.2 - 4 .9 101.6 .1 .2 1.7 1.6 .8 40.3 104.2 241.1 620.6 653.6 711.1 763.7 795.9 793.4 802.2 802.1 832.2 .6 Statistical discrepancy.......................... III ; .7 .6 -.1 86.8 10.5 - 1.2 .2 .3 15.2 2.8 .8 1.5 - 1.0 37.7 6.9 2.3 82.4 38.0 1.4 78.7 42.4 74.5 .7 84.3 47.1 81.1 1.1 78.6 54.0 87.6 1.7 70.8 57.6 86.9 1.8 88.2 1.9 71.5 57.4 73.0 58.4 - 2.1 - .4 4.2 69.0 58.5 79.0 63.9 64.9 .9 1.5 2 .6 14.3 41.1 48.7 56.1 62.2 75.6 77.3 77.2 80.7 83.7 91.8 Net interest paid by government and consumers......................................... Dividends.............................................. Business transfer payments................. 2.5 5.8 1.6 2 .0 2 .2 7.2 22.2 20.8 .6 .7 23.6 21.4 3.1 26.1 23.6 3.4 29.0 24.4 3.7 31.7 25.0 3.9 31.1 24.9 3.9 32.2 25.2 4.0 32.4 25.0 4.1 32.0 25.6 4.2 31.8 25.4 4.2 96.0 227.6 587.2 629.3 688.9 750.3 803.6 803.8 809.8 816.7 834.7 855.0 Plus: Government transfer payments........... Equals: Personal income................................. 85.9 47.0 Less: Personal tax and nontax payments---- 2 .6 1.5 Equals: Disposable personal income................ 83.3 Less: Personal outlays................................... Personal consumption expenditures. Consumer interest payments............ Personal transfer payments to for eigners............................................ 4.4 .5 8 .8 .8 3.0 97.9 116.2 115.9 118.0 113.5 115.2 112.7 113.9 45.5 92.7 206.9 511.9 546.3 591.0 634.2 687.8 685.7 696.2 701.5 722.0 741.1 79.1 77.2 1.5 46.5 45.8 .5 81.7 193.9 479.3 506.0 551.2 596.3 633.7 631.5 638.9 643.0 80.6 191.0 466.3 492.1 536.2 579.6 615.8 613.8 620.9 624.7 2.4 12.4 13.2 14.3 15.8 16.9 16.8 17.1 17.4 .9 663.2 644.6 17.7 679.0 660.1 17.9 .3 .2 3.3 20.7 75.4 83.0 .7 .8 .9 .9 1.0 .9 .9 .9 1.0 40.4 39.8 37.9 54.1 54.2 57.4 58.5 58.8 62.1 Disposable personal income in constant (1958) 1 1 dollars............................................................ 150.6 112.2 190.3 249.6 458.9 477.5 499.0 513.5 531.5; 533.0 536.0 532.5 543.0 551.7 Equals: Personal saving................................... 4.2 - .9 .2 11.0 .5 13.1 .6 32.5 N o te .— Dept, of Commerce estimates. Quarterly data are seasonally adjusted totals at annual rates. See also N o te to table opposite. PERSONAL INCOME (In billions of dollars) Item 1971 r 1970r 1969 r 1970 r June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May JuneP Total personal income.......................... 750.3 803.6 801.4 805.3 809.0 814.9 813.6 815.7 820.9 830.4 833.6 840.1 844.7 850.1 870.3 Wage and salary disbursements.......... Commodity-producing industries. . Manufacturing only ...................... Distributive industries..................... Service industries............................. Government..................................... 590.6 541.4 539.6 543.0 545.1 548.7 544.2 545.9 551.5 559.2 561.5 566.1 569.0 573.3 575.3 197.4 200.7 200.7 201.4 201.6 201.3 196.6 196.6 202.1 202.8 202.5 204.3 205.4 207.1 207.8 157.6 158.3 158.8 159.4 158.9 159.0 153.8 153.2 158.4 159.4 159.2 160.2 160.6 162.0 120.0 129.1 128.9 130.1 130.8 131.3 131.9 132.2 131.4 134.2 135.4 136.8 137.6 138.7 88.1 96.7 95.9 96.8 97.2 97.8 98.8 99.8 100.4 101.9 102.4 103.3 103.9 105.0 104.1 114.8 114.1 114.7 115.5 118.3 116.8 117.3 117.7 120.3 121.2 121.6 122.1 122.6 162.5 138.7 105.7 123.1 Other labor income............................. 28.2 30.8 30.7 30.9 31.2 31.4 31.7 32.0 32.2 32.4 32.6 32.8 33.1 33.4 33.7 Proprietors’ income............................. Business and professional............... F arm ................................................. 67.1 50.3 16.8 66.8 66.6 66.0 65.3 51.4 13.9 65.7 51.5 14.2 65.9 51.4 14.5 66.1 66.3 51.6 14.7 66.3 51.5 14.8 66.6 51.0 15.8 67.4 51.4 16.0 66.9 51.8 15.1 67.1 51.9 15.2 67.3 52.0 15.3 Rental income...................................... 22.6 23.3 23.3 23.3 23.4 23.5 23.5 23.7 23.8 23.9 23.5 24.0 24.1 24.2 24.3 Dividends............................................. 24.4 25.0 24.5 25.1 25.2 25.4 25.4 25.5 23.9 25.6 25.7 25.5 25.5 25.6 25.2 67.7 51.4 15.2 51.4 14.6 51.5 14.6 51.7 14.9 Personal interest income..................... 58.8 64.7 64.2 64.9 65.6 66.3 66.5 66.7 66.8 66.9 67.0 67.0 67.3 67.5 Transfer payments............................... 65.9 79.6 79.5 79.9 80.8 82.9 84.7 84.5 85.1 86.8 87.8 89.1 89.7 90.2 108.1 26.3 28.0 27.8 28.2 28.3 28.5 28.2 28.3 28.6 30.7 30.8 31.1 31.1 31.3 Less: Personal contributions for social insurance....................................... 31.4 Nonagricultural income........................ 727.7 781.4 778.8 784.3 788.1 794.2 792.5 795.0 800.5 809.1 812.0 818.4 822.8 828.0 848.1 Agricultural income............................. 22.6 22.2 22.6 21.0 20.9 20.7 21.1 20.7 20.4 21.3 21.5 21.7 21.9 22.1 22.2 N o te . —Dept, of Commerce estimates. Monthly data are seasonally adjusted totals at annual rates. See also N o te to table opposite. A 72 1. SUMMARY OF FLOW OF FUNDS ACCOUNTS FOR FIRST QUARTER 1971 (Seasonally adjusted annual rates; in billions of dollars) Private domestic nonfinancial sectors Transaction category House holds U Busi ness S U S U Total U S S 4 Gross investment (5 + 10)............................. 183.2 ....... 5 Private capital expenditures......................... 124.5 ......... 6 Consumer durables.................................. 9 7 . 6 ......... 7 Residential construction.......................... 2 1 . 6 ......... 8 Plant and equipment................................ 5 . 3 ......... 9 Inventory change..................................... 239.2 ......... 9 7 . 6 ......... 3 6 . 4 ......... 102.1 ......... 3 . 2 ......... 10 Net financial investment (11-12)................... S U 1 4 . 8 ......... 9 6 . 8 ......... 3 . 2 ......... 5 8 .7 ....... -38.5 ....... -15.8 ....... U -18.1 15 Demand deposits and currency............... 8.7 4 .4 ....... -18.2 ....... 3.6 —.2 —.2 2.1 2.3 11 4 11 4 18 Foreign.................................................. 19 20 21 Time and savings accounts....................... At commercial banks............................ At savings institutions.......................... 101.3 5 0 .7 5 0 .5 22 23 24 Life insurance reserves............................ Pension fund reserves.............................. Interbank item s........................................ 4.8 22. 8 25 Corporate shares..................................... -12.0 26 27 28 29 30 31 32 33 34 Credit market instruments...................... U.S. Government securities................. State and local obligations................... Corporate and foreign bonds............... Home mortgages.................................. Other mortgages................................... Consumer credit................................... Bank loans n.e.c................................... Other loans........................................... -37.8 -50.9 -3 .5 14.7 -.2 2. 1 35 36 37 Security credit........................................... To brokers and dealers....................... To others............................................... 1.6 1. 6 38 39 Taxes payable........................................... Trade credit............................................... 40 41 Equity in noncorporate business............. Miscellaneous claims................................ -4 .4 2.6 42 Sector discrepancies (1-4)........................... -6 .2 3.0 4.9 4.8 2 2 . 8 ......... ......... - 1 2 .0 8.9 22.7 .8 .8 6.1 11.9 1.4 4 .0 1.5 3 .5 1.9 - 7 . 6 51.6 26.4 2.7 14.6 1.9 .1 1.8 .4 7.7 8.9 26.0 -35 .1 100.3 -50 .1 25.6 2.8 25 .6 16.5 26. 4 - . 2 14.6 2.1 16.0 1.5 4. 0 3. 8 .4 - 7 . 6 9 .9 2 .5 1.6 1.6 2. 5 .1 2.1 18.4 - 19 .1 . 2 ......... 11.6 .9 6.0 .3 11.2 -4 .4 2.4 12.2 .2 .5 .2 11.6 .9 2.1 7.1 - 1 . 7 -4 .4 -4 .4 13.8 2. 8 8.8 14.8 -.2 .2 2 6 42 7.9 4. 8 20.8 7.9 21.1 .2 .4 .4 18.2 84 6 2.2 3 2 __ 10.8 — 1 . 7 ......... U - 1.1 41 80.5 12 6 8 5 —3 0 15.1 -17 8 — 4 —13 .2 —i 10.3 16.1 15.7 4 2. 0 - 1 . 3 3. 5 21.4 ......... 1.4 2.7 2.7 1.8 10.5 . . . — .6 —2. 6 .3 —2. 9 -3 .6 - 1.7 — .5 5 — 6 2.1 —1.1 .2 —1.1 1 9 237.3 4 4 9 241 4 97 g 5 6 1 0 4 . 3 .! ! 3.2 . ! 8 9 —3 2 3.2 276 8 .1 6.3 280 0 _£ J JQ 8.5 11 12*6 .! _ 7 12 13 14 1 15 16 17 18 5 6 110 2 57 8 52 3 19 20 21 4 8 22 8 7.9 22 23 24 9 3 25 26. 5 4 .7 103.2 103.2 26.1 . —3 3 25 6 .6 1.2 33 0 16 1 16 0 4 0 5 10 5 — .3 3.1 1 3 26 27 28 29 30 31 32 33 34 .3 .3 .1 4 .4 1.2 2. 3 10.6 7. 4 1.0 - 1 4 . 8 4.7 17.0 —2 0 —5 2 _ 304 —2.5 —2.5 .5 .4 .6 .6 3 9.1 .2 49.1 2. 8 3.3 1.4 . . . 15.9 4.1 13.4 1.6 9. 6 8 6.2 4. 8 —9 .0 1 8 Q 7. 9 21.1 2 3 4 6 4 3 2 52.3 12.1 —2. 4 * 247 3 174 1 73 2 241 97 36 104 3 4 8 20 8 —4.2 Natl, savings and invest ment 238 2 — 1.2 1.8 U 246 2 174 1 72 1 —6 . 4 — .9 12.8 18^4 - 1 9 .1 -19 !1 _ 1 2 8 Discrep ancy S —1 1 4.1 57 .8 -.4 .1 57.7 S .9 - 2 . 5 - . 8 -1 .1 - 3 .4 -1 .1 2. 6 2. 5 .6 9 All sectors 1 8 4 .3 - 1 . 6 107.5 - . 3 .3 - 1 . 8 - 1 . 5 2 0. 6 - 1 . 8 - 1 . 9 - 1 . 8 2 2. 8 15.9 5.5 - . 7 - . 1 17.0 1.6 1.0 .5 13.3 1.0 2 .5 10.5 6.2 4. 5 .2 4 . 7 11.6 2. 5 1 9 1 2 1.8 110.2 57.8 1. 8 52.3 .4 5 .5 .. .. . 109.2 58.7 50.5 31 14 17 10 2 8 60 3 U — .9 . . . .5 2. 9 S 38 1.2 6.6 -1 9. 1 S 38 -.9 9.9 U * . . .4 U * 2.1 -2 .5 5.8 S Rest of the world 3 1 5 1 2 6 35 36 37 .5 —1 8 8.4 —2 2 38 39 —1 1 8 1 —4 4 18.7 40 41 1 7 8 0 10 1 42 1971 Gold, SDR’s, and official fgn. exchange. Treasury currency and SDR ctfs........... U 2. 1 11 Financial uses................................................ 8 4 .8....... 26.9....... 10.7....... 122.4 ....... -16.7 ....... 158.5 12 Financial sources........................................... 26.1 26.5 65.5 118.1 1.5 151.9 13 14 S .1 7.0 2.4 4.6 ............... 1 -18.1 76.2....... -15.8 ....... 243.6 ....... -18.2 ....... 114.8 ......... S Coml. 1 banks Pvt. nonbank finance □ AUGUST ....... 258.4 ....... 171.7 ....... 86.7 Total Mone tary auth. OF FUNDS 1 Gross saving.................................................. ....... 177.0 ....... 88.5 .......-7 .0 2 Capital consumption................................ ....... 93.8 ....... 77.9 3 Net saving (1-2)....................................... ....... 83.2 ....... 10.5 ....... -7 .0 U Sponsored credit agencies FLOW Sector State and local govts. Financial sectors U.S. Govt. AUGUST 1971 o FLOW OF FUNDS A 73.1 2. SUMMARY OF FUNDS RAISED AND ADVANCED IN U.S. CREDIT MARKETS (Seasonally adjusted annual rates; in billions of dollars) 1969 Transaction category, or sector 1966 1967 1968 1969 1970 I II 1970 III IV I II 1971 III IV I Funds raised, by type and sector Total funds raised by nonfinancial sectors.................. 1 68.5 83.5 96.9 92.5 93.6 88.4 86.8 81.4 103.7 94.6 110.6 112.6 1 U.S. Government............................. Public debt securities.................... Budget agency issues..................... 3.5 2.3 13.0 8.9 4.1 13.4 - 3 .6 10.3 - 1 .3 3.1 - 2 .4 - 5 .4 12.9 - 5 .8 -.1 .5 - 9 .5 - 8.8 - .7 - .7 4.9 - 5 .6 4.9 - 3 .7 1.2 3.0 16.0 3.5 18.1 - . 5 - 2.0 12.2 11.4 .8 20.0 - 1.6 1.4 - 2 .9 3 4 5 A ll o th e r n o n fin a n cia l s e c to r s .. Corporate equity shares............... Debt instruments........................... Debt capital instruments.......... 8 State and local govt, sec....... 9 Corporate and fgn. bonds. . . 10 64.9 .9 64.0 39.0 5.7 70.5 2.4 83.5 - .7 84.2 50.9 9.6 14.0 27.3 77.9 58.8 13.1 27.9 83.2 45.2 5.6 15.2 3 .5 6 .6 2.1 12.8 5.9 5.4 1.8 16.5 4 .2 5 .9 2 .2 26.7 15.7 4 .8 5 .5 1.9 27.5 78.3 5.9 72.4 45.6 8.9 15.0 21.7 82.4 5.4 77.1 60.0 8.9 25.8 97.9 103.0 .3 3.6 97.6 99.5 57.3 51.5 12.8 9.4 15.8 13.3 28.7 28.8 5 90.6 114.2 6 9.9 9.1 80.7 105.0 7 74.7 83. 7 8 19.3 25.6 9 24.8 27.5 10 30.7 30.6 11 16.6 4 .7 5.1 2 .3 15.7 4 .8 5.3 1.8 13.9 5 .6 5 .8 1.5 10.7 4 .6 4 .8 1.5 40.2 15.7 9.3 3.3 19.2 2.7 4.3 3.8 8.4 40.3 17.0 47.9 19.1 10.2 10.8 4.7 13.3 33.9 14.2 7.5 8.1 38.0 11.7 8.9 2.7 14.6 84.7 97.9 103.0 4.0 6.0 13.4 9.7 33.0 36.0 47.4 51.3 89.1 2.3 5.8 31.5 49.4 85.7 2.4 5.1 28.2 49.9 41.1 6 .6 3 .6 37.4 8 .7 3 .3 41.0 6 .4 2 .5 2 3 4 6 7 11 12 n 14 15 16 17 18 19 20 Home mortgages ................ Other residential................. Bank loans n.e.c.................... Consumer credit.................... Open market paper............... Other...................................... 21 22 B y b o rro w in g s e c to r — ................ 23 24 25 26 27 28 Households.................................... Nonfinancial business................... Corporate ................................... Nonfarm noncorporate............... Farm .......................................... Foreign.......................................... 1.2 68.1 11.0 46.6 8.7 15.9 11.4 3 .1 5 .7 2.1 22.0 11.6 3 .6 4 .7 2.1 22.3 25.0 10.3 7.2 21.6 33.3 13.4 1.0 2.1 11.1 1.6 6.4 9.6 4.6 5.2 64.9 1.5 6.4 23.2 33.8 70.5 4.1 19.7 37.9 2 4.9 5 .5 3 .5 29.3 5 .0 3 .5 8.8 7.3 90.4 94.1 4.8 89.3 49.1 8.1 11.8 83.5 3.0 9.9 31.8 38.8 94.1 3.7 8.5 32.2 49.7 3 0.3 5 .8 2 .7 39.1 7.4 3 .2 97.5 12.8 84.7 6.8 11.8 21.1 2.6 12.2 21.6 48.3 38.8 6.3 3.2 4.9 37.1 7.1 3 .3 89.1 6 .0 12.1 85.7 9.2 76.4 42.5 4.7 11.1 1.0 11.2 87.7 6 .0 81.7 54.6 10.2 18.5 1.5 2 22.4 22.2 22.0 11.1 5 .4 4.2 1.4 28.9 15.2 6 .5 5 .2 2.1 14.2 6 .9 7.5 2.1 14.6 6 .3 7 .7 2 .0 13 14 15 26.7 7.6 4.8 5.0 9.4 27.0 9.0 17.0 6.0 1.9 - 7 .6 21.4 4.3 4.0 2.9 16 17 18 19 10.1 20 78.3 43.4 87.7 1.7 10.4 21.5 54.2 36 .9 3 .5 3 .0 45.2 5 .2 3 .8 2.6 9.4 22.8 6.1 2.2 9.8 6.2 .2 .5 8.4 7.5 5.9 82.4 2.2 9.7 24.8 45.7 33.6 8 .7 3 .3 12 90.6 114.2 21 5.0 22 4.0 19.5 26.0 23 17.2 22.7 24 50.0 60.5 25 39.2 47.1 26 7.7 8 .7 27 3.1 4 .7 28 Funds advanced directly in credit markets 1 Total funds raised............................. 3 4 5 Advanced directly by— U.S. Government......................... U.S. Govt, credit agencies, n e t... Funds advanced........................ Less funds raised in cr. mkt__ 2 68.5 83.5 96.9 90.4 97.5 92.5 93.6 88.4 86.8 81.4 103.7 4.9 .3 5.1 4.8 4.6 .5 4.9 2.5 3.2 1.7 3.7 .2 1.2 -.1 -.6 3.2 3.5 9.0 9.9 8.7 2.5 .4 4.0 3.6 2.3 1.5 14.1 12.5 3.9 - .7 13.7 14.4 3.5 16.7 16.8 4.8 36.6 36.9 9.3 12.2 1.2 1.0 10.1 .1 .2 3.7 39.5 39.7 6 Federal Reserve System............... 8 9 Funds advanced........................ Less funds raised....................... 10 11 12 13 Private nonbank finance............... Savings institutions, net............ Insurance................................... Finance n.e.c., net..................... 25.9 7.8 19.3 - 1 .3 14 Foreign.......................................... - 1.8 2.8 15 16 17 18 19 Private domestic nonfinancial. . . . Business..................................... State and local governments. . . Households................................ Less net security credit............. 19.1 3.6 3.4 11.9 - .2 -.2 2.1 7 -.2 -.2 .2 8.8 4.2 5.0 31.3 16.5 29.5 4.3 - 1.8 34.4 34.2 30.1 16.8 14.6 10.4 18.7 22.0 21.8 - 1.1 - 2 .5 - 2.1 * 2 .2 4.1 7.9 8.8 .9 38.9 30.9 14.7 15.9 24.9 19.8 - . 7 - 4 .8 -.8 -.1 7.6 8.4 10.5 4.0 29.3 33.8 4.5 - .5 - .9 4.2 5.0 18.9 6.8 9.1 39.6 25.6 13.3 6.8 27.5 20.6 - 1.2 - 1.8 24.4 5.6 19.5 - .7 10.6 12.1 10.1 .3 - 1.8 3 4 5 5.5 16.1 37.3 40.4 28.4 39.1 - 8 .9 - 1 .3 8 3.0 7.0 2.1 42.0 18.0 24.1 * 45.8 20.7 25.3 - .3 70.3 45.5 28.8 - 3 .9 9.5 4.9 19.6 27.3 14 - 2 .5 -4 7 .9 .8 - 2 .9 .4 1.9 .5 -4 9 .8 .9 .6 15 16 17 18 19 94.6 110.6 112.6 1 69.2 97.1 7.3 89.9 76.6 76.7 79.2 124.6 8.3 15.4 70.8 109.2 3 4 5 68.2 21.7 46.3 24.5 - 1.1 9.4 12.3 39.8 7.1 7.4 13.8 - 1.0 .4 6.1 - 3 .8 5.8 18.3 10.6 1.4 - 1.6 - 1 .4 46.6 15.8 18.9 14.1 2.9 1.7 55.5 18.1 7.7 26.4 - 3 .2 38.4 7.0 5.6 25.3 - .4 41.2 15.1 - 2 .5 24.8 - 3 .8 -.2 2 42.4 15.3 27.1 * 5.1 8.1 4.3 25.3 4.7 23.2 - 2.6 1.0 19.9 - 2 .7 1 1.8 3.5 .9 8.7 7.8 7.7 63.6 52.1 .2 1.3 1.6 7.1 5.5 94.6 110.6 112.6 5.5 23.3 27.4 4.1 - 10.9 2.5 3.6 11.6 17.9 -2 7 .9 12.3 -2 8 .5 - 5 .3 - 7 .8 8.8 - 2.1 8.1 -.2 6 7 9 10 11 12 13 Sources of funds supplied to credit markets Total borrowing by nonfinancial sectors................... 1 Supplied directly and indirectly by pvt. domestic nonfin. sectors: T otal.............................................. 2 3 4 Demand dep. and currency.. 5 Time and svgs. accounts. . . . 6 At commercial banks . .. 7 At savings instit.............. 8 9 10 11 12 13 14 15 16 17 18 19 Credit mkt. instr., net............... U.S. Govt, securities .............. Pvt. credit market instr .......... Corporate equities ................. Less security debt................. Other sources: Foreign funds................................ Chg. in U.S. Govt, cash bal......... U.S. Government loans............... Pvt. insur. and pension res........... N ote .— D a ta revised 1968-70. 68.5 83.5 96.9 90.4 97.5 92.5 93.6 88.4 86.8 81.4 103.7 42.8 23.7 4.0 19.7 51.3 51.5 12.4 39.1 60.8 44.5 4.7 48.5 14.8 7.1 33.7 - 2 .4 68.2 61.1 59.1 12.5 5.9 27.0 47.6 44.3 5.9 55.1 13.9 6.1 8 .2 2 .0 12.5 7.2 22.5 16.6 20.8 - 1 0 . 5 8.1 12.9 38.4 16.5 6.6 -6 .8 13.4 19.1 39.8 8 .5 11.4 -1 .0 -.2 - .2 —1 .7 7.8 -4 .1 2 .2 7.1 -6 .9 15.2 -2 .6 .7 2.5 - 1.8 2.8 2.5 - .4 4.9 16.7 3.8 1.2 4.6 17.5 4.3 - 1.1 4.9 18.5 9.5 4.6 1.7 12.3 7.7 13.4 -7 .4 1.4 4.3 1.8 F o r o th e r no tes see p. A-73.3. 15.0 27.0 -3 .8 - 1.6 54.9 8.2 - 7 .9 6.6 7.6 1.6 -1 5 .5 —7.4 - 2 1 . 3 9 .0 5 .8 46.6 18.9 21.8 27.2 -5 .2 - 2 .3 11.9 -6 .4 4 .2 7.4 4 .4 38.4 41.2 23.2 29.6 -.6 6 .5 37.6 -6 .7 - 3 .2 14.1 27.5 -3 .7 -.4 -.6 10.8 .5 - 1.1 1.3 9.4 3.9 2.3 18.9 18.1 3.9 18.7 55.5 - 1 .4 - 2 .7 .9 23.6 -5 .9 -.2 9.6 8.3 1.3 2.4 - 8 .4 10.9 13.8 13.7 14.8 13.8 .2 1.0 10.4 5.3 5.1 .4 2.5 18.7 14.7 2.6 21.0 .1 - 5 .8 2.5 14.9 1.7 1.7 22.4 26.0 3.7 18.7 6.4 3.2 8.1 1.6 - 3 .8 1.0 - 8.1 72.0 54.1 7.0 47.1 31.9 15.2 5 8 .7 50.5 6 - 2 . 5 -4 7 .9 - 1 9 . 2 - 5 0 .1 21.5 15.0 - 4 .3 -1 2 .0 .9 .6 8 10 11 12 .7 10.5 -4 .5 - 9 .4 -1 8 .9 -1 6 .8 4.9 19.6 27.3 13 14 15 17.9 - 2 7 . 9 -8 .0 - 6 .8 23.9 - 2 2 .1 - .1 .7 -.2 -2 .1 2.7 - 6.8 9.5 2.1 3.6 22.7 .7 2 1.4 3.5 19.8 5.3 6.1 - 1 8 .7 1.8 4.3 22.8 25.5 2.5 14.3 7 9 16 17 18 19 A 73.2 FLOW OF FUNDS □ AUGUST 1971 3. PRINCIPAL FINANCIAL TRANSACTIONS (Seasonally adjusted annual rates; in billions of dollars) 1969 Transaction category, or sector 1966 1967 1968 1969 1970 1971 1970 II 1 III IV I III II IV I Demand deposits and currency 1 Net incr. in banking system liability. . U.S. Government deposits........... 2 3 4 5 6 7 8 9 10 Money supply............................... Domestic sectors....................... Households............................ Nonfinancial business........... State and local governments. Financial sectors................... Rest of the world...................... 2 .6 - .4 3.0 3.9 3.1 .7 -.1 -.1 .3 - 1.0 14.8 1.1 13.7 13.4 9.4 14.8 - 1.2 16.0 15.7 .8 11.1 1.8 1.0 .7 .9 - 1.0 3.2 .3 1.2 .3 8.5 .6 7.9 7.6 5.9 -.8 3.2 .5 - 1.2 .3 10.1 2.5 7.7 7.4 4.7 - .9 1.2 1.3 1.1 .3 - 1.0 10.3 11.0 - 5 .7 1.7 1.9 4.7 8.6 9.1 4.8 8.0 8.5 - .9 10.2 9.5 3.9 - 5 .6 - 4 .3 3.4 2.5 3.9 1.4 - 1.1 .9 .3 - 1 .3 - 1 .5 -.1 .6 .6 13.2 5.1 9.8 4.2 1.1 2 .0 9.0 4.0 7.8 9.0 2.6 8.2 5.4 5.1 7.4 3.0 - 2 .3 - 2 .7 2.9 - .3 1.0 .8 1.2 .5 - 2.8 - .7 1.3 * 1.4 - . 4 8.9 .7 16.9 - .9 8.2 8.6 10.3 5.0 .7 1.0 18.4 5.8 .4 3.6 2.9 5.6 1.1 1.4 .5 - .5 6.0 -1 9 .1 10.8 18.2 .9 3.1 2 .0 3.3 .5 -.1 1 2 3 4 5 6 7 8 9 10 Time and savings accounts 1 Net increase—Total.......................... At commercial banks—T otal. . . . 2 3 4 5 6 7 8 9 10 11 12 Corporate business................... State and local governments. . . Foreign....................................... Households................................ At savings institutions.................. Liabilities— Savings and loan assns.......... Mutual savings banks........... Assets Households............................ Cr. union deps. at S & L’s... 13.3 - .7 1.3 40.8 23.8 2.9 2.4 .8 1.2 20.2 11.9 7.0 17.1 17.0 3.6 2 .6 .8 5.1 7.2 -.2 33.3 20.6 1.9 3.2 - .3 15.7 - 1 .6 - 9 .7 - 9 .8 - 5 .9 1.0 5.2 53.9 5.9 36.7 - 7 .6 12.8 - 1 4 .4 9.9 - 3 .7 - 1 .9 - .5 15.8 11.3 17.2 13.5 12.8 8.1 10.6 7.5 4.2 4.1 1.2 1.1 1.4 4.4 1.7 16.6 .3 12.9 8.1 16.5 .7 13.4 -.1 2 .6 * 11.1 - . 2 -1 5 .4 3.4 - 9 .0 - 21.2 - 1.1 - 9 .5 - 11.0 - 4 . 2 - 5 .0 -1 0 .3 - 4 .6 - 1 .4 .4 5.7 * 7.1 2.4 8.8 5.7 4.5 8.0 3.8 4.8 2.7 1.6 1.2 .1 9.0 -.2 2.9 1.5 1.3 .7 2.2 5.8 4.2 .3 44.3 87.5 28.5 65.6 6.1 .5 32.3 6.4 10.3 13.4 4.3 - 3 .5 - 3 . 2 .5 15.5 22.5 5.2 15.8 21.9 11.6 67.1 110.2 41.3 57.8 12.2 3.0 4.9 9.6 - 5 .1 - 1.2 24.5 50.7 25.8 52.3 1 2 3 4 5 6 7 2 .0 1.6 1.6 9.8 4.4 1.7 15.6 4.7 1.5 16.9 7.0 1.9 36.8 12.4 3.1 4.4 15.2 .8 21.7 .2 24.5 1.3 50.5 .6 11 12 .1 17.5 - .9 4.4 21.6 -.2 20.1 4.8 1 2 -.2 2.1 .2 27.0 - 3 .3 1.9 1.7 16.8 -.6 .8 1.7 7.0 - 1.8 - . 2 - 3 .6 1.5 -.1 16.8 1.8 8 9 10 U.S. Government securities 1 Total net issues.................................. 2 Household savings bonds............ 3 4 5 6 Direct excluding savings bonds... Budget agency issues..................... Sponsored agency issues............... Loan participations....................... 7 Net acquisitions, by sector............... 8 U.S. Government (agency sec.)... 9 Sponsored credit agencies............ 10 Direct marketable..................... 11 FHLB special issue................... 12 Federal Reserve System................ 13 Foreign........................................... 14 15 Direct......................................... 16 17 Nonbank finance........................... 18 Direct......................................... 19 Agency issues............................. 20 21 22 23 Savings bonds—Households. . . Direct excl. savings bonds........ Agency issues............................. 8.7 .6 1.8 12.5 1.0 7.9 * 5.1 1.3 .1 -.6 8.7 1.3 12.5 -.1 * .9 —.9 4.8 1.0 .3 .6 3.5 - 2 .4 - 3 .6 - 3 .4 4.0 2.1 9.3 6.3 - .2 3.0 .4 - 1 .9 - . 2 - 2.2 .3 .5 8.5 - 1 .7 .6 3.3 4.7 1.0 - 3 .0 .4 16.7 5.5 .4 - . 4 9.9 - .9 1.5 - . 4 9.1 3.2 1.7 - 1 .9 16.7 .1 -.1 - .1 5.5 - 1 .3 -.2 - .5 .3 3.8 4.2 - . 5 - 1.8 3.4 - 9 .5 2 .2 - 9 .3 1.3 - . 3 2.2 -.8 .4 - 2 .4 1.8 7.7 .4 4.1 3.2 1.6 21.6 .3 12.6 1.3 8.7 - 1 .3 - .5 - .4 - 5 .4 .8 4.8 - .3 - 1.0 10.0 - .4 - .8 - 8 .4 5.6 - 1 .3 -.8 8.4 10.6 .7 - 4 .8 - 1.0 10.0 - 1.1 - 2.2 - . 8 1.7 - 2.0 .3 - . 5 1.9 - 2.0 .3 - . 8 * * .3 -.2 5.0 4.0 4.2 - .4 9.1 - 4 .5 - 1.8 2.7 9.0 - 1 6 .2 - 7 .2 - 9 .5 5.8 - 1 4 .4 - 8.8 - 7 .6 3.2 - 1.8 1.6 - 1 .9 4.8 - 4 .7 3.7 - 2 .4 1.5 - 4 .4 2.7 - 7 .3 21.6 -.1 2.2 15.0 - 6 .9 - .4 .3 8.7 -1 0 .5 6.7 3.4 - .5 2.0 21.8 - .4 16.1 6.2 2 .0 .9 - .4 - 5 .1 6.4 13.8 18.3 12.5 14.4 5.5 - 3 .3 - 2.6 - 2.2 13.8 - 1.0 1.2 .4 .8 9.2 - 3 .7 - 5 .2 - 6 .2 2.6 1.0 -.8 -.6 -.2 23.2 14.1 18.8 5.2 5.0 9.1 -.8 .1 17.5 .1 2 .0 2.8 - .8 1.1 8 .0 .5 - .7 1.3 - .7 - 3 .2 2.6 21.6 * - .5 -.8 .2 5.4 .5 10.9 1.0 7.8 -.1 20.1 .1 1.0 1.2 -.2 7.9 4.7 8.2 6.8 6.8 11.0 2.2 - .7 2.9 * 9.8 7.6 2.1 2.2 -.6 - 3 .3 4.4 4.3 - 1 .9 - 3 .9 5.6 15.5 17.6 8 .0 9.6 3.7 2.5 15.7 26.1 3.5 3.2 .3 3.3 - 7 .8 1.2 11.1 .1 2 .0 6.5 - .9 - 2 .7 - 6.8 - 1 9 .2 -5 0 .1 1.9 .5 1.7 - 9 .2 - 10.8 - 1 9 .2 -3 5 .9 1.4 3.5 - 1 .7 -1 6 .1 31.3 8.9 41.0 10.1 - 8 .0 8.9 27.0 - .2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Private securities 1 Total net issues, by sector................ 2 State and local governments........ 3 4 5 6 Nonfinancial corporations............ Finance companies....................... Commercial banks........................ Rest of the world.......................... 7 Net purchases.................................... 8 Households.................................... 9 Nonfinancial corporations............ 10 State and local governments........ 11 Commercial banks........................ 12 Mutual savings banks................... 13 Insurance and pension funds....... 14 Finance n.e.c.................................. 15 Security brokers and dealers... 16 Investment companies, net....... 17 Portfolio purchases................ 18 Net issues of own shares. . . . 19 Rest of the world......................... 18.5 5.7 11.4 28.2 8.7 17.0 .8 .1 1.0 .2 23.9 9.6 27.7 8.1 11.8 30.4 .3 26.3 4.7 19.8 1.3 2.0 2 .0 .5 .7 28.9 2.3 * - .4 30.4 28.8 25.1 26.3 5.3 3.5 - 1.8 5.2 6.7 3.1 5.5 5.0 4.9 3.0 .9 1.4 1.6 2.4 - 1.1 - 1 .7 * 1.0 1.1 .2 16.3 20.5 15.0 15.4 - 7 .7 - . 2 - 1.1 - 2.2 .2 .9 2.3 - 2.6 - 7 .9 - 1.2 - 3 .4 .3 -.2 3.6 4.6 2.7 7.7 4.8 4.2 6.1 3.9 .9 2.9 .7 31.3 6.9 41.0 9.8 .6 2.0 .1 .1 1.5 .9 1.5 28.2 23.9 27.7 - 1.8 - 1.2 3.0 1.0 - . 2 - 1.1 5.1 1.9 - . 4 2.6 1.1 1.9 9.8 8.9 .3 .3 2.3 .6 1.6 12.9 16.6 17.6 16.8 - 2 .2 - . 9 - 3 .6 - 2.8 .1 .2 .2 - .9 - 2 .4 - 1.1 - 2.8 - 3 .0 1.4 1.9 2.7 1.5 3.7 5.7 2.6 4.7 .3 2.3 2.1 .6 42.3 1.3 1.3 1.6 .1 18.5 3.2 8.1 1.4 .2 10.8 1.7 18.7 .1 .7 -.6 1.8 2.4 1.4 28.8 9.4 14.9 25.1 5.6 16.1 1.4 * 12.8 14.7 1.4 .5 16.4 42.3 27.0 2.5 12.1 .8 .2 2.2 -.1 20.2 1.3 .2 .4 5.0 1.2 10.2 .7 8.9 2 .0 17.0 20.6 - . 3 - 3 .5 * .2 - . 3 - 3 .7 1.3 - 1.0 2.7 1.6 .6 .5 39.3 8.9 25.7 2.8 * 2 .0 57.7 19.3 33.4 3.8 * 1.3 67.7 25.6 35.2 4.1 1.4 1.4 39.3 2.5 57.7 13.3 67.7 1.6 -.8 1.2 .6 14.5 14.7 2.5 23.2 1.2 13.9 4.3 5.2 - 1.0 2.4 3.4 2.1 - .1 - 2 .7 2.5 4.5 2.1 2.3 -.8 6.1 1.9 21.4 8.3 26.2 3.7 1.8 1.9 2.1 .2 .9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Bank loans n.e.c. 1 2 Households.................................... 3 Nonfinancial business................... 4 Rest of the world.......................... 5 Financial sectors........................... 9.0 .4 10.1 - .2 - 1 .3 7.5 2.1 7.7 -.2 - 2.1 15.7 3.1 10.6 - .3 2.3 http://fraser.stlouisfed.org/ ote .—Data Federal Reserve NBank of St.revised Louis 1968-70. For other notes see p. A-73.3. 17.8 2.4 13.5 -.2 2.1 2.1 .8 2.3 - .4 - .5 18.0 2.9 13.9 .2 .9 24.0 4.2 14.4 .6 4.9 11.1 .9 12.3 - 1 .5 -.6 17.6 1.5 5.2 2.3 4.6 3.4 - 2 .3 12.8 -.1 .6 10.3 - 1.1 10.4 - .3 1.2 5.0 - 11.8 1.2 .9 1.0 - 6 .7 - . 2 - 1 .9 3.0 - 4 .1 10.5 3.5 .4 .5 6.2 1 2 3 4 5 AUGUST 1971 □ FLOW OF FUNDS consists of life companies, fire and casualty companies, private pension funds, and State and local govt, retirement funds. Finance n.e.c. is finance companies, open-end investment companies, security brokers and dealers, agencies of foreign banks, and banks in U.S. possessions. Sources o f funds supplied to credit markets. In this section lending by financial sectors is replaced by sources of funds to financial sectors. Foreign funds at banks are deposits and foreign branch claims on U.S. home offices. Sources n.e.c. consist mainly of retained income and mis cellaneous liabilities of financial sectors less their miscellaneous assets. Notes to Table 2 Funds raised, by type and sector. Credit flows included here are the amounts shown on lines 25-34 of Table 1 by households, business, govern ments, and foreigners. All funds raised by financial sectors are excluded. U.S. Govt, budget issues (line 4) are loan participation certificates is sued by CCC, Export-Import Bank, FNMA, and GNMA, together with security issues by FHA, Export-Import Bank, and TV A. Issues by federally sponsored credit agencies are excluded as borrowing by financial institu tions. Such issues are in line 5 of the next section of the table and in U.S. Govt, securities in Table 3. Corporate share issues are net cash issues by nonfinancial and foreign corporations. Mortgages exclude loans in process. Open market paper is commercial paper issued by nonfinancial corpora tions plus bankers’ acceptances. Funds advanced directly in credit markets. Net purchases, by sector, of the credit instruments shown in the section above. Financial sectors’ purchases are shown net of their own funds raised in credit-market forms—securities and loans on lines 25-34 of Table 1. Lines 3, 7, 10,14, and 15 reflect such adjustments. In addition, security credit is included in funds advanced as an asset and deducted from funds advanced as a liability, netting to zero in the totals. Security credit assets are in lines 8 , 13, and 14 and subtracted in line 19. Security credit liabilities are in line 19 and subtracted in lines 14 and 19. Lines 3-5 cover federally sponsored agencies. Commercial banks include bank affiliates not consolidated in bank reports. Savings institutions are savings and loan assns., mutual savings banks, and credit unions. Insurance A 73.3 Notes to Table 3 Demand deposits and currency. Lines 5-8 are holder record; line 9 is difference between holder and bank record. U.S. Government securities. Includes issues by sponsored credit agencies not consolidated into the U.S. Govt, sector and not included in funds raised in Table 2. Sponsored agencies are listed in notes to Table 4, p. A-73.9. Loan participations include FNMA, GNMA, Export-Import Bank, and CCC certificates. Where not shown separately, loan participa tions are grouped with agency issues. All figures are changes in par values of holdings. Private securities. Total excludes open-end investment company shares, which are deducted on line 18. Bank loans n.e.c. Includes lending by bank affiliates. 4. SECTOR STATEMENTS OF SAVING AND INVESTMENT (Seasonally adjusted annual rates; in billions of dollars) 1969 Category 1966 1967 1968 1969 1970 I II 1970 III IV j i II 1971 III IV I Households, personal trusts, and nonprofit organizations Personal income................................ 587.2 629.3 688.9 750.3 803.6 726.8 743.1 759.3 772.2 784.3 803.8 809.8 816.7 834.7 Less: Personal taxes & nontaxes... 75.4 83.0 97.9 116.2 115.9 113.6 117.2 116.1 117.7 116.7 118.0 113.5 115.2 112.7 3 Personal outlays.................... 479.3 506.0 551.2 596.3 633.7 580.4 592.4 600.9 611.4 621.4 631.5 638.9 643.0 663.2 4 Equals: Personal saving, NIA basis. 32.5 40.4 39.8 37.9 54.1 32.8 33.4 42.3 43.1 46.2 54.2 57.4 58.5 58.8 5 Plus: Credits from Govt, insur.1. 6.2 9.0 13.1 7.5 8.9 8.8 5.3 5.9 7.2 3.7 5.3 5.7 8.4 6.6 6 Capital gains dividends2 . . .4 2.5 1.1 .2 2.5 .9 2.2 1.2 .8 1.3 5.0 1.4 1.7 1.9 7 3.1 15.1 Net durables in consum pt.. 15.2 12.4 16.7 15.5 8.4 17.6 16.8 14.1 13.6 10.4 10.7 9.2 1 2 1 2 3 4 5 6 7 54.3 59.8 64.8 62.2 72.4 61.1 60.5 65.8 61.5 64.6 79.2 74.9 70.7 83.2 Capital consumption......... 64.3 69.9 77.2 84.8 91.2 82.0 84.1 85.8 87.3 89.0 90.8 92.1 92.8 93.8 On owner-occ. homes....... 9.6 9.2 9.0 9.1 9.2 9.3 9.4 8.3 8.8 8.6 7.4 7.8 8.7 8.9 1.7 On nonprofit pi. and e q .. . 1.6 1.7 1.7 1.7 1.7 1.5 1.6 1.6 1.6 1.6 1.6 1.4 1.3 On consumer durables. . . . 55.6 60.7 67.4 74.4 80.3 71.8 73.7 75.3 76.7 78.2 80.0 81.1 81.7 82.4 13 Equals: Gross savings..................... 118.6 129.7 142.0 147.0 163.5 143.0 144.6 151.6 148.8 153.6 170.0 167.0 163.5 177.0 13 14 Gross investment............................... 15 Capital expend, (net of sales). . . . 16 Residential construction........... 17 Consumer durable goods.......... 18 Plant and equip, (nonprofit). .. 14 15 16 17 18 8 8 10 11 12 10 11 12 9 Plus: 19 20 21 Net finan. investment..................... Net acquis, o f financial assets. . Demand dep. and curr......... 119.8 132.0 140.5 141.2 162.9 143.0 133.6 145.7 143.0 148.9 168.7 166.2 167.3 183.2 94.2 94.6 109.7 116.7 112.9 116.1 119.3 116.5 114.9 113.8 115.5 112.8 109.2 124.5 18.9 17.0 21.1 21.6 18.9 21.8 23.8 21.7 19.3 19.7 19.4 17.3 19.2 21.6 70.8 73.1 84.0 89.9 88.6 89.5 90.6 89.4 90.3 88.6 90.7 90.4 84.9 97.6 5.1 5.3 5.3 5.2 5.1 5.4 4.5 4.5 4.5 5.5 5.4 4.9 5.0 5.3 50.0 70.6 4.7 14.3 29.2 28.1 35.2 53.2 53.4 58.1 58.7 19 56.5 -.9 50.1 10.2 56.6 58.0 53.8 71.7 80.0 5.0 76.8 1.0 84.8 7.4 20 21 32.2 15.8 16.5 24.7 11.3 13.4 16.1 7.1 9.0 5.8 * 5.8 2.4 4.2 6.6 5.0 .5 4.4 30.7 15.5 15.2 44.2 22.5 21.7 49.1 101.3 24.5 50.7 24.5 50.5 22 13.1 13.2 .3 1.5 - 1 .5 5.4 12.2 25.1 14.1 4.1 4.6 2 .2 7.7 27.0 18.6 29.0 17.9 31.5 14.8 9.2 2 .2 12.3 3.1 8.9 - 3 .3 - .4 7.4 4.8 - 3 7 .8 4.1 -1 4 .5 -5 0 .9 - 9 .5 2.7 - 3 .5 11.3 14.9 14.7 1.9 1.5 1.7 25 26 27 28 29 6.1 1.6 - 8 .3 2.7 - 6 .7 4.2 - 7 .9 - 2.8 3.4 - 2 .7 - 6 .4 - 12.2 24.5 25.6 37.3 30.8 49.3 61.1 9 .4 65.6 11.1 55.2 3.1 5.9 23 24 Savings accounts................... At commercial banks........ At savings institutions....... 19.1 11.9 7.2 33.7 17.1 16.6 28.6 15.7 12.9 13.3 5.2 25 26 27 28 29 Credit market instruments... U.S. Govt, securities......... State and local oblig.......... Corporate and fgn. bonds . Mortgages........................... 12.9 7.3 4.2 .9 - 1 .3 3.6 13.2 5.2 .9 5.4 22.2 30 31 Investment co. shares............ Other corp. shares................. 3.7 - 4 .7 32 33 Life insurance reserves.......... Pension fund reserves............ 4.6 13.4 34 35 36 Net invest, in noncorp. bus... Security credit........................ Miscellaneous........................ 37 38 39 40 41 42 43 44 Net increase in liabilities ........... Credit mkt. instruments........ Home mortgages............... Other mortgages................ Instalment cons, credit. ... Other consumer credit. . . . Bank loans n.e.c................. Other loans 3....................... 23.2 12.3 1.3 45 46 47 22 2.1 2 .0 1.4 8.1 6.5 2.7 -.2 5.4 1.2 10.2 2.3 2 .6 4.7 - 6 .7 - 12.2 5.7 - 9 .5 4.8 14.1 4.5 15.3 4.9 15.4 4.9 18.6 11.8 4.9 18.7 5.0 16.1 4.9 15.0 4.9 15.3 4.9 21.4 4.9 16.7 - 4 .1 - 3 .6 * 1.1 1.5 1.2 - 2.2 .7 - 3 .9 - 2 .3 - .5 2.5 - 4 .6 - 1 .5 2.3 - 4 .2 - 1.0 3.6 - 4 .3 - 1.8 - 2 .7 1.1 2.6 - 2 .6 - 1 .3 2.3 - 2.1 - 1.8 2.5 - 2 .5 -.1 20.6 21.6 29.6 35.8 27.3 29.9 18.6 22.8 11.0 21.5 18.5 26 .7 18.7 1.2 1.0 1.6 2 3.7 19.7 10.5 1.2 34.8 30 .7 31.8 14.9 1.1 32.2 16.2 1.3 8.3 2.4 7.7 4.8 - 5 .0 -1 2 .9 -1 0 .7 12.5 1.4 3.0 1.3 3.4 9.0 1.2 2.1 2.1 2.0 1.3 3.1 1.7 2.4 3.0 Security credit....................... Trade debt............................. Miscellaneous......................... -.2 .3 .4 3.3 .4 .3 2.1 .5 .4 - 2 .5 .5 .4 - 1 .9 48 Discrepancy (13-14)......................... - 1.2 - 2.2 1.5 5.8 .6 6.2 1.0 .4 N ote .—Data revised 1968-70. For other notes see p. A-73.9. -.8 5.1 2.1 -.8 2.1 1.0 2.2 2.7 1.4 1.4 9.5 1.8 1.8 2.2 26.9 1.0 23.6 9 .8 2.6 .6 .4 4.8 33.0 16.5 1.2 8.5 1.7 2.9 2.1 36.0 17.1 1.3 9.9 .9 4.2 2.7 - 4 .2 - 1.2 .5 .5 .4 .4 * 11.0 .9 4.1 28.2 14.9 1.3 7.1 .4 1.5 3.0 - 5 .1 .5 .4 5.9 31.5 16.3 1.3 8.0 1.0 1.3 4.1 .6 12.2 1.3 4.8 1.3 1.2 2.5 5.8 23 24 2.1 .2 30 31 4.8 20.9 4.8 22.8 32 33 - 2 .0 - 4 .4 * 1.6 2.6 2.5 34 35 36 24.8 17.2 13.7 13.0 1.4 1.4 4.4 - 1 .3 1.9 1.6 26.1 37 38 39 40 41 42 43 44 2.5 22.7 11.9 1.4 2.7 1.3 3.5 1.9 2.3 3.4 - 1.1 3.0 .7 .5 .5 - 5 .2 .5 .4 - 3 .9 .5 .4 .6 .6 .6 .6 .4 .4 .3 45 46 47 5.8 4.6 1.4 .8 - 3 .8 - 6 .2 48 2.3 .9 A 73.4 FLOW OF FUNDS □ AUGUST 1971 4. SECTOR STATEMENTS OF SAVING AND INVESTMENT— Continued (Seasonally adjusted annual rates; in billions of dollars) 1969 Category 1966 1967 1968 1969 1970 I II 1970 III IV II I 1971 III IV I Nonfinancial business—Total 1 Income before taxes 1....................... 2 Gross saving...................................... 3 Gross investment.............................. 4 C a p ita l e x p e n d itu r e s ................... 5 Fixed investment........................... 6 Business plant & equipment. . . V 1-4 family resident, const. 2. ... 8 Other residential....................... 9 Change in inventories 3 ................ 10 11 12 13 14 15 Net financial investment.................... - 2 7 .4 -2 5 .7 -2 5 .3 - 3 5 .6 -2 8 .9 -3 2 .9 - 3 3 .3 -3 7 .4 -3 7 .7 -2 3 .9 - 2 4 .6 -3 4 .5 -3 2 .2 -3 8 .5 Financial uses o f funds, net ........... 16.5 15.8 27.4 29.6 21.2 40.6 26.6 28.6 22.6 37.0 25.1 8.3 14.9 26.9 10 11 12 20 21 22 Discrepancy (2-3)............................. 17 18 19 68.3 94.0 85.8 77.8 3 4 5 Financial sources o f funds, net. . .. 69.6 97.0 82.2 76.1 - .7 1 2 73.7 73.6 80.2 73.0 73.2 75.5 73.9 80.2 82.8 79.7 78.7 76.2 99.0 109.2 109.1 105.8 106.5 112.9 111.5 104.1 107.4 114.2 110.8 114.8 91.9 101.8 106.3 99.2 99.7 102.5 105.8 103.7 105.3 109.1 107.1 111.6 82.9 91.6 94.8 88.3 89.8 93.5 95.0 93.4 94.8 97.6 93.6 96.8 -.1 1.2 1.0 - . 4 - 1 .4 .9 .2 3.0 -.1 -.6 1.8 3.8 10.3 10.4 8.1 9.7 10.3 10.5 10.7 10.4 11.2 9.7 10.5 11.0 7.1 7.4 6.6 6.8 10.4 5.7 2.8 .4 2.1 5.1 3.7 3.2 Corporate share issues.............. Credit market instruments........ Corporate bonds................... Home mortgages................... Other mortgages................... Bank loans n.e.c.................... Other loans 4 ......................... Trade debt................................. Other liabilities......................... 16 139.1 136.2 142.4 138.4 129.7 142.2 140.5 137.5 133.3 130.9 132.1 130.1 125.5 135.8 77.7 78.4 80.0 78.9 82.0 79.8 79.3 80.4 77.5 81.6 82.1 82.3 82.6 88.5 6.8 14.8 43.9 1.2 32.7 10.2 - 1.0 9.7 10.1 2 .0 6.1 8 .2 41.5 2.3 35.6 14.7 1.1 9.2 7.7 52.6 - .8 39.6 12.9 .3 11.0 10.6 3.6 7.4 2.7 6.4 - 2 .7 10.2 8.0 10.1 6.3 4.8 2.8 3.7 65.2 4.3 45.4 50.1 6.8 41.5 20.3 .3 11.7 2.3 13.5 9.3 7.0 4.3 19.7 - 4 .1 - 2 .5 12.1 -.6 11.0 5.4 1.8 73.5 .1 47.3 14.6 -.1 11.0 13.9 7.9 59.9 2 .4 48.9 12.5 - .5 10.9 14.4 11.6 20.7 4.4 - 12.1 21.6 6.9 6.1 66.0 5.6 43.8 60.3 9.1 60.9 23.5 - 7 .0 - 2 .3 6.3 37.1 13.9 -.3 9.7 4.6 9.2 14.5 2.9 4.8 3.6 1.4 10.5 - .7 10.5 12.3 11.2 40.8 10.7 - 1.0 11.6 12.8 6.7 12.8 Farm and nonfarm noncorporate business 1 Net income 1 ..................................... 2 Gross saving 6 ................................... 69.8 16.5 71.2 16.9 3 Gross investment.............................. 4 C a p ita l e x p e n d itu r e s ................... 5 Fixed investment........................... 6 Change in inventories 3 ................ 16.5 19.9 19.5 .4 7 Net financial investment.................... 8 Financial uses o f funds, n et ........... 9 Financial sources o f funds, n et . . . . 10 Credit market instruments........ 11 Mortgages.............................. 12 Bank loans n.e.c.................... 13 Other loans 4-?...................... 14 Trade debt, n e t.......................... 15 Proprietors’ net investment 8... - 3 .4 1.1 4 .5 9.0 4.5 2 .2 2 .2 - .4 - 4 .1 73.5 18.3 76.4 19.5 76.5 20.5 76.0 16.9 18.3 .9 22.8 22.2 .6 19.5 24.3 23.4 .9 20.5 24.9 24.7 20.1 22.1 21.1 .2 1.2 - 5 .1 - 4 .5 - 4 .8 - 4 .3 1.7 6.1 1.2 6 .3 8.5 5.8 1.3 1.4 1.4 - 3 .6 - 1.8 6 .3 8.5 5.5 1.8 1.3 * 2 .2 1.8 6 .5 10.5 5.7 2.5 2.4 -.1 - 3 .9 9.5 6.7 1.1 1.8 - 1.2 - 2 .3 42.8 47.1 65.5 8.9 - .7 2 .6 3.9 12.2 22 75.6 75.7 76.2 21.5 1 2 3 4 5 5.0 13 9.6 48.0 40.7 40.4 51.6 14 22.7 20.7 23.8 26.4 15 - 1.1 1.4 1.2 2.7 16 9.6 12.3 15.1 14.6 17 10.4 .4 18 .9 - 6 .7 6.4 5.3 7.0 7.7 19 * 2 .0 .7 6 .0 20 - 4 .5 - 4 .9 - 3 .6 - 1.0 21 5 76.5 19.7 76.7 19.6 77.5 77.2 22.0 20.2 19.8 23.6 23.0 19.7 24.6 22.5 19.6 24.2 24.5 22.0 .6 2.1 -.2 - 4 .5 - 3 .8 - 5 .0 1.4 5 .9 1.9 5 .7 10.2 2 .3 7.3 12.0 5.6 - 4 .6 24.6 23.4 10.3 5.9 6.3 1.6 2.1 .1 1.9 - .4 - 4 .2 2.9 - 4 .6 3.5 2.8 - .4 - 4 .3 8 9 49.7 6.2 76.5 19.8 20.1 6 7 20.2 20.2 20.2 .1 24.9 24.0 .9 25.8 24.9 .9 24.8 25.9 - 1.1 21.5 31.3 28.4 2.9 - 2.0 - 4 .7 1.1 3.1 1.5 6 .2 8.9 - 4 .7 - 9 .8 7 1.5 6.1 8.9 - 5 .6 1.9 6 .5 10.8 1.1 10.9 9 2.2 - 1.0 2.4 4.8 1.9 - .2 - 2 .7 24.0 23.9 6.5 5.1 - .8 - 2 .6 20.2 5.1 2.1 1.7 - .7 - 2.1 20.2 2 .4 8.1 12.1 8 .0 2.4 1.7 - 1 .5 - 2 .5 8.4 .9 1.4 - 2 .3 - 2 .0 13.4 8.6 1.1 3.6 1.8 - 4 .4 6 8 10 11 12 13 14 15 Nonfinancial corporate business 1 Profits before tax.............................. 2 Less: Profits tax accruals............... 3 Net dividends paid............... 4 Equals: Undistributed profits.......... 5 Plus: Foreignbranch profits, net........ 6 Inv. valuation adj..................... 7 Capital consumption.............. 8 Equals: Gross internal funds........... 9 Gross investment (10+15)............... C a p ita l e x p e n d itu r e s ................. Fixed investment........................... Plant and equipment................. 13 Residential construction........... 14 Change in inventories 3 ................ 10 11 12 71.1 30.0 18.1 22.9 1.8 - 1.8 38.2 61.2 53.1 77.1 62.7 61.6 1.1 14.4 66.1 28.3 18.8 19.0 72.2 34.0 20.8 41.5 61.5 17.5 2.5 - 3 .3 45.1 61.7 51.3 72.0 64.7 62.5 2.3 7.3 55.4 76.1 69.7 67.4 2.3 6.4 2.1 - 1.1 67.5 57.7 72.3 70.2 64.2 63.2 59.2 59.2 60.0 52.4 63.1 33.3 27.0 35.6 34.6 31.7 31.2 27.6 27.7 28.1 24.7 30.5 20.9 21.0 20.8 20.8 20.9 21.0 21.0 21.2 21.2 20.8 21.3 13.3 9.6 15.9 14.8 11.6 11.1 10.6 10.3 10.7 6.9 11.3 2.5 2 .6 2.5 2.4 2.5 2.5 2.5 2.7 2.7 2.7 2.8 - 5 .5 - 4 .5 - 6 .0 - 6 .3 - 3 .2 - 6 .7 - 5 .8 - 4 .2 - 5 .5 - 2.6 - 3 .5 49.2 53.8 47.5 48.6 49.8 51.0 52.1 53.3 54.2 55.4 56.4 59.5 61.5 59.8 59.5 60.7 57.9 59.7 61.8 62.1 62.4 66.9 54.1 84.9 78.4 75.6 2.8 6.5 59.7 84.2 81.6 78.3 3.3 2.6 52.9 81.3 75.8 72.6 3.2 5.5 53.4 82.9 76.6 74.0 55.9 88.3 80.0 77.8 2.6 6.2 2.2 8.3 54.2 87.3 81.4 78.1 3.3 5.9 58.2 80.1 79.8 77.0 62.6 82.5 81.3 78.5 2.8 2.8 1.2 .3 59.5 88.3 84.1 80.6 3.5 4.2 58.5 86.0 81.2 76.9 4.3 4.8 54.7 83.5 83.2 78.3 4.8 .3 15 Net financial investment.................... - 2 4 .0 - 20.6 -2 0 .7 -3 0 .8 -2 4 .5 -2 8 .3 -2 9 .4 -3 2 .4 -3 3 .1 -2 1 .9 -1 9 .9 -2 8 .8 -2 7 .5 -2 8 .8 16 Financial uses o f funds, net ........... 13.1 25.8 19.5 39.3 24.7 26.2 21.2 35.9 23.6 5 .9 15.5 14.6 25.6 27.8 17 Liquid assets.............................. 1.3 8.9 3.3 - 2 . 7 .1 14.0 1.4 8.5 2 .6 11.8 2.1 8 .6 4.6 1.9 18 Demand dep. and curr.......... .6 .3 .8 .7 .7 1.6 - . 9 - 1.0 3.8 - 5 .7 - 4 . 4 2.9 - 2 .4 - 2 .9 19 Time deposits......................... 32.3 12.2 .5 6.1 3.0 12.8 - 1 4 .4 - 9 .5 - 11.0 - 4 . 2 - .7 2.9 1.9 - 9 .8 20 U.S. Govt, securities............. - 1.2 - 2.8 1.3 - 3 .9 - 4 .5 .8 1.7 - 1 .7 - 3 .2 4.5 - 1.0 - 2.2 - 8 . 0 - 5 .4 21 Open market paper............... 1.5 4.4 8.6 - 1.1 18.6 7.4 -2 9 .1 - 1.2 - 7 .6 2 .0 2.7 10.5 12.2 8.9 22 State and local oblig.............. - . 2 - 1.1 1.4 2 .0 1.6 1.2 6.1 1.0 5.1 3.1 5.5 5.0 .6 6.7 23 Consumer credit........................ 1.2 1.5 1.4 1.7 1.1 1.7 .9 1.3 1.4 1.0 1.5 1.7 .8 1.7 24 Trade credit............................... 11.6 4.8 2 .0 - .7 11.3 7.7 13.9 17.3 6 .2 19.1 16.9 18.7 14.6 18.6 25 Other financial assets 9............. 3.4 4.2 10.0 1.2 3.9 .7 1.0 8.0 3.8 1.4 3.0 15.1 9.6 5.9 26 27 28 29 30 31 32 33 34 35 Financial sources o f funds, n et . . . . Net new share issues................. Credit market instruments........ Corporate bonds................... Mortgages.............................. Bank loans n.e.c..................... Other loans 1o....................... Profit tax liability...................... Trade debt................................. Other liabilities......................... 36 Discrepancy (8-9)............................. http://fraser.stlouisfed.org/ N ote .— D a ta revised 1968-70. Federal Reserve Bank of St. Louis 39.4 1.2 23.7 10.2 4.2 7.9 1.4 .2 7.8 6.5 8 .0 35.2 2.3 27.0 14.7 4.5 6.4 1.4 - 4 .7 4.9 5.6 10.1 46.3 -.8 58.6 44.0 12.1 8.8 11.0 31.1 12.9 5.8 4.3 34.8 6.8 4.8 32.0 20.3 5.3 3.8 7.0 - 1 .9 19.7 1.7 - 3 .3 5.5 3.1 6.3 5.4 1.8 3.6 2.1 10.1 F o r o th e r no tes see p. A-73.9. 1.2 5.2 67.6 .1 54.2 58.7 54.2 57.8 43.5 34.7 40.5 6.9 6.1 4.8 3.6 1.4 - .7 2.6 3.9 6.2 6.3 5.0 9 .6 9.1 2.4 5.6 37.0 38.7 31.8 31.9 30.6 39.1 28.6 29.6 14.6 12.5 10.5 10.7 13.9 22.7 20.7 23.8 3.4 5.8 7.8 4.2 4.3 5.7 4.2 5.0 8.3 - 1 .5 - 7 .7 5.6 10.6 12.4 12.3 8.8 8.4 6.8 4.7 3.6 5.6 4.8 5.0 9.7 5.7 - 6 .3 - 4 .7 - 2 .6 - 2 .5 - 4 .6 - 3 .0 - 3 .3 3.0 .7 3.5 21.5 21.0 23.9 13.0 15.3 2 .2 .6 3.3 - 1.6 8.0 1.7 2 .0 2.9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 8.9 27 38.2 28 26.4 29 8.6 30 - . 8 31 4.1 32 .9 33 4.1 34 2.4 35 54.6 12.2 36 AUGUST 1971 □ FLOW OF FUNDS A 73.5 4. SECTOR STATEMENTS OF SAVING AND INVESTMENT— Continued (Seasonally adjusted annual rates; in billions of dollars) 1970 1969 Category 1966 1967 1968 1969 1970 1 I 111 11 IV II I 1971 III IV I State and local governments-—General funds 1 1 Net surplus, NIA basis..................... 2 Less: Retirement cr. to households . 3 Equals: Gross saving....................... 4 Net financial investment.................... 5 Net acq. o f financial assets ............ Currency and demand deposits. 6 7 Time deposits............................ 8 Credit market instruments........ U.S. Government securities.. 9 10 D irect................................. 11 U.S. Govt, agency sec....... 12 State and local securities---13 Corporate bonds................... 14 Home mortgages................... 15 Tax receivables.......................... 16 17 18 19 Net increase in liabilities ............. Credit mkt. borrowing............. State and local obligations . .. Short-term......................... Other.................................. U.S. Govt, loans................... Trade debt................................. 20 21 22 23 Discrepancy (7-8)............................. 1.3 4.0 - 2 .7 - 1.6 - . 3 3.9 4.6 - 5 .5 - 5 .0 4.6 - 4 .5 - 6.0 - .9 3.9 - 4 .8 - 2.1 - 5 .6 - 6 .3 - 6 .3 2 .7 6 .5 1.2 - 7 .1 - 10.1 4 .8 - .1 1.3 3.4 2.4 2 .2 .1 * 1.1 * .2 6 .9 6.4 5.7 .7 5.1 3 .8 - 1.0 2.4 2.1 .2 - .4 .6 1.9 * .3 9 .5 8.8 8.7 - 5 .5 5 .0 .7 3.2 .4 .8 -.3 1.0 * - .4 .1 .7 10.5 9.9 9.6 .1 3.2 - 5 .9 9 .0 8.5 8.1 .5 9.4 .3 .6 3.1 5.0 .4 .5 - .7 .1 .5 1.8 .6 6 .9 2.5 - 1.0 7.1 - 8.1 12.8 12.2 11.8 13.9 13.4 10.2 .4 .5 4.3 8.5 .5 .5 9.7 9.4 2.5 7.0 .3 .5 .2 2.3 2 .0 3.8 8.0 12.8 .5 4.8 - 4 .2 5.2 -4 .0 1.9 9.5 - 7 .6 5.7 - 5 .5 - 1 .3 5.9 - 7 .1 - .3 6.7 - 7 .0 1 2 - 1.0 - 2 .4 - 7 .2 - 5 .7 - 4 .4 - 7 .8 15.8 12.2 10.7 4 5 10.3 - 5 .3 - 6.0 - 3 .5 - 2 .5 .2 .7 * .2 * * - .9 - .9 13.4 - 7 .8 - 7 .0 - 5 .4 - 1 .5 .3 - 1.1 1.8 2.8 - 5 .6 .1 3 .2 .7 3.4 3.9 2 .9 - 5 .0 -1 0 .3 - 4 .6 5.6 2.9 7.7 4.2 -.2 6.8 - 1.0 3.4 2.8 3.4 1.4 .9 9.9 - 3 .7 6.1 - 3 .8 8.1 3.5 - 4 .0 3.2 1.8 - 3 .1 2.1 1.7 - .9 1.1 .1 .3 .4 .2 2.3 -.2 4.8 2.8 * * * * -.6 - . 1 - 1.1 - .9 1.8 6 .8 .2 .6 .1 .5 6.6 .2 .8 .6 .8 * - .7 * - .7 6.3 5 .6 5.8 5.6 2.9 2.7 .3 .5 1.4 5.1 4.7 2.7 1.1 2 .7 - .3 6.4 - 2 .5 - 2 .9 - 3 .2 .3 9 .9 .5 .5 9.4 8.9 3.0 5.9 .5 .5 1.5 3.2 2 .0 5.1 1.0 .2 5 .8 1.1 - .9 3.1 9.6 .4 -.2 -.2 * .5 * * - .9 10.2 9.7 20.0 3.2 7.0 8.9 1.9 7.0 .2 .8 12.0 .2 - 1.8 - 1.1 .7 10.9 10.4 10.2 .5 .5 19.5 19.3 7.2 .5 3 3.6 6 7 4.9 8 1.9 * 9 .9 10 - . 9 11 .1 1.8 12 13 * 14 .2 15 16 26.0 17 25.6 18 7.4 19 18.2 20 .4 21 .5 22 26.5 8.8 23 142.5 151.2 175.0 196.9 191.5 195.6 199.3 195.8 196.8 191.6 193.8 191.3 189.3 197.2 61.7 67.5 79.7 94.9 92.2 93.6 96.5 94.0 95.2 93.8 94.5 89.7 91.0 87.6 32.1 30.7 36.7 36.3 30.6 38.2 37.5 34.9 34.5 30.6 30.9 31.9 29.0 34.0 15.7 16.3 18.0 19.0 19.3 18.4 19.0 19.4 19.1 19.0 19.1 19.7 19.4 20.6 33.0 36.7 40.7 46.8 49.3 45.3 46.3 47.4 48.0 48.2 49.2 50.0 49.8 55.0 1 2 U.S. Government 2 1 Total receipts, NIA basis................. 2 Personal taxes............................... 3 4 5 Corp. profits tax accruals............. Indirect taxes................................. Insurance receipts......................... Total expenditures, NIA basis........ 142.8 163.6 181.5 189.5 205.1 186.5 187.6 190.7 193.4 196.1 207.9 206.7 209.8 213.2 Goods and services....................... 77.8 90.7 98.8 99.2 97.2 99.2 97.7 100.3 99.5 100.2 96.8 96.1 95.9 96.7 Grants and donations................... 29.0 30.7 34.1 37.2 45.2 35.6 36.9 36.9 39.5 39.7 46.4 46.8 48.1 47.5 Net interest.................................... 9.5 10.2 11.7 13.1 14.6 12.4 12.8 13.3 14.0 14.3 14.3 15.0 14.8 14.0 Insurance benefits......................... 26.4 32.0 36.9 40.0 48.1 39.3 40.2 40.2 40.4 41.9 50.5 48.9 51.0 55.0 Net surplus, NIA basis..................... - . 2 - 1 2 .4 - 6 .5 7.3 - 1 3 .6 5.1 3.4 - 4 .5 -1 4 .1 -1 5 .5 -2 0 .5 - 1 5 .9 9.1 11.7 Less: Insur. credits to households 3 . 1.4 1.4 1.3 1.6 2.5 2.4 1.8 1.2 .9 1.5 1.8 3.0 2.1 3.6 Equals: Gross saving....................... - 1.6 - 1 3 .8 - 7 .8 5.7 -1 6 .1 7.3 10.4 2.7 2.5 - 6 .0 -1 7 .7 -1 7 .3 -2 3 .4 -1 8 .1 6 7 8 9 10 11 12 13 14 Net financial investment.................... 15 Net acquis, o f finan. assets ............ 16 Demand deposits & currency. . 17 Credit market instruments........ 18 Agency securities4 ................. 19 20 Other loans............................ Excess of tax accruals 21 Over receipts......................... 22 Other financial assets 5.............. 23 24 25 26 27 28 29 Net increase in liabilities ............... - . 1 -1 3 .1 5 .4 2 .9 -.1 1.0 4.9 1.3 .8 2 .8 4.6 _ .l .9 3.8 - .7 1.3 -4 .4 - 8 .4 7.4 - 1 .7 4.9 .l 1.1 3.7 5.4 - 1 5 .2 3 .0 1.1 2.5 —1.3 .7 3.1 .6 2.5 - 2 .9 1.8 2 .2 - 2.8 - 2 .3 5 .5 16.0 15.9 -2 .5 .6 1.8 1.2 1.0 15.9 12.8 3.5 30 Discrepancy (13-14)......................... 31 Memo: Corp. tax receipts, n e t........ 13.0 1.4 7.9 4.1 1.4 .6 1.6 - 1 .5 32.8 - .7 35.1 13.4 - 3 .6 .4 - . 4 9.9 - .9 3.1 - 2 . 4 1.3 1.6 - .4 1.1 .6 35.0 .3 39.2 2 .9 10.2 -.5 .9 - 3 .0 3.2 2.5 1.7 —. 1 —1.1 —2 .2 .3 .'5 .8 3.0 3.1 3.2 1.7 2.5 U.S. Government securities. . . . Savings bonds—households.. Direct excl. savings bonds. .. Budget agency sec.6 .............. Life & retirement reserves........ 6.9 .3 12.6 -.1 2.5 .6 - .9 33.4 2.6 4 .0 2.6 3.7 —.8 '.7 2 .0 5 .6 4.0 2.3 —1.0 .8 3.8 2.4 - 7 .3 4.1 - 4 .3 - 2 .3 2.1 1.6 - 4 .0 -1 0 .7 - 9 .5 1.4 -.7 -.8 3 .5 1.2 .1 2.4 1.0 - 5 .4 - .4 - 5 .4 .5 - .4 - 8 .4 - .7 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 - 4 .8 - 1 8 .9 - 1 4 .0 -2 3 .1 - 1 8 .2 * -.6 .3 2 .9 - 1 6 . 7 .6 .7 2.5 6.4 -1 9 .1 4.3 3.5 3.9 3.6 1.8 * .1 . 1 —. 6 .3 .5 .3 !3 - . 2 3.1 3.1 2.1 4.5 3.5 20 - 1.1 - 3 .3 -4 .2 - 2 .5 - 1 .7 - 2.1 - 4 .1 - 1 .3 2.1 21 22 4 .9 18.2 14.3 12.2 .5 26.0 20.0 1 .5 23 24 25 26 27 28 29 3.0 16.0 -.9 -.2 4.4 18.3 - . 5 - 2 .0 1.5 3.6 .4 - 1 . 4 5.6 4.8 - 5 .6 - 3 .7 1.8 1.2 2.4 .9 - . 4 - 2 .5 - .3 1.4 * .4 .5 - 1.2 .2 35.8 44.7 39.3 36.8 31.7 1.2 35.1 .8 1.8 .3 1.7 16.8 1.5 3.0 3.1 - 3 .3 33.6 - .3 33.1 10.9 -4 .0 - 1.6 1.9 -.6 - 2 .9 2.1 .9 .2 31.9 30 31 Federally sponsored credit agencies 8 1 .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 1 2 5 .3 -.1 -.1 3 .2 4.1 7.8 11.1 13.7 15.8 2 - .1 1.6 -.2 14.1 13.7 1.1 1.2 6 .6 2 .0 9 .9 8.7 1.0 10.7 10.1 1.9 .7 6 .8 7.1 -.5 2.1 * 9.0 10.8 1.0 3.2 9 .2 .2 1.2 .1 .2 4.8 3 4 5 U.S. Government securities. . . . Residential mortgages.............. Farm mortgages........................ 6 7 To coops (BC)....................... To farmers (FICB)................ To S & L’s (FHLB).............. 8 9 10 11 12 5.1 1.6 .2 .4 .5 .9 - 2 .5 5 .2 13 14 15 .7 - 1.8 4.8 5.1 -.2 .4 .5 .9 —.2 -.6 -.6 -.1 3 .2 .5 - .3 3.5 3.2 .2 N ote .— D a ta revised 1968-70. F o r o th e r no tes see p. A-73.9. 3.9 .6 .2 .6 4.0 9 .1 8 .8 9.1 - .3 .4 9.9 1.7 5.4 .5 2.3 .3 .7 1.3 10.8 8.7 8.7 2.1 4.0 - 2 .0 1.7 .6 7.6 .3 2.5 .8 3.7 4.0 .2 .6 .2 2.9 4.1 3.6 4.8 - 1.1 .4 .7 3.1 7.8 8.4 8.4 -.6 10.5 - .5 4.7 .6 5.7 -.1 .4 5.3 .3 5.9 .3 .8 5.8 .3 5.6 .3 1.0 .1 6.3 .5 .9 .4 5.4 .5 1.7 .7 .2 4.4 4.0 .5 1.1 .4 .9 .3 - 1 .9 1.4 .5 .2 .3 1.1 -.2 - 1.2 9 .9 7.8 7.8 10.8 7 .0 7 .0 - 1.8 - 1.8 2.1 3.7 4.1 4.8 4.4 .8 .3 11.4 10.6 10.6 13.3 15.8 14.4 14.4 6 .7 12.5 12.5 5.5 5.5 .8 .8 1.3 1.2 2 .3 3 4 5 6 7 8 9 10 11 12 13 14 15 A 73.6 FLOW OF FUNDS □ AUGUST 1971 4. SECTOR STATEMENTS OF SAVING AND INVESTMENT— Continued (Seasonally adjusted annual rates; in billions of dollars) 1969 Category 1966 1967 1968 1969 1970 II I 1970 III !V I II 1971 III IV I Monetary authorities 1 1 Current surplus................................. * 2 Net acquisition of financial assets. . . Gold and foreign exchange 2....... 3 Treas. currency and SDR ctfs....... 4 F.R. float....................................... 5 F.R. loans to domestic banks.. .. 6 Credit mkt. instruments................ 7 8 U.S. Govt, securities................. 4.2 - .3 .7 .3 .1 3.5 3.5 9 10 11 12 13 14 15 Member bank reserves................. Demand deposits and currency Foreign 4 ................................... Currency outside banks............ Other.............................................. 4.2 1.3 .6 .2 .2 2.0 - .1 * * 4.8 3.7 - . 5 - 1 .2 .2 .5 * .9 * * 4.8 3.7 3.8 4.8 4.7 1.3 .5 * * * * 4.2 1.9 2.0 5.3 * -.9 - . 1 - 1 .4 * .7 - . 4 .1 .8 - 2 .6 - 1 .9 .1 * .2 .9 .7 4.2 5.0 4.1 4.0 4.2 5.0 4.0 4.2 3.7 .7 1.3 4.2 .3 .1 5.3 2.1 - .3 .9 - 1 .0 * .1 2.1 2.4 * .2 .5 - .1 2.8 .6 - .4 * 3.5 .4 2.0 1.9 .5 - 2 .8 .9 - .3 - .2 .9 1.0 - .1 ♦ 3.7 .2 * * 7.4 5.5 2.0 - 1 .5 .2 .3 3.4 1.4 .4 - 2 .0 - .5 9.3 - .4 9.2 5.5 3.0 .1 .1 -.1 2.5 - .2 7.4 .3 - .5 * * * * 6.1 1.1 9.9 4.0 .8 - 2 . 0 - 1 . 0 - 3 .3 .4 .3 1.9 .3 2.4 - 3 .1 1.2 2.7 - .2 .4 1.6 - 1 .2 1.2 5.5 7.7 5.5 5.4 7.9 5.6 1.1 * 1 11.4 - .9 .5 - 2 .1 - 2 .1 16.1 15.7 2 3 4 5 6 7 8 1.1 - 1 .3 - .2 9.9 5.7 —.4 4.0 11.4 - .5 9.7 1.01 .6 9 10 11 2.3 - 1 .2 - 3 . 2 - .1 .3 - . 2 4.2 - . 7 5.6 1.2 .4 .5 2.3 - .2 3.2 - .8 . 6; - 1.3 .2 - .1 1.5; 3.2 1.6i - 1 .1 12 13 14 15 6.1 4.3 2.9 Commercial banks and affiliates 5 1 Current surplus................................. 2.5 2.3 2 Net acquisition of financial assets. .. 3 Total loans and investments........ Credit market instruments........ 4 U.S. Government securities6. 5 6 D irect................................. 7 Agency issues..................... 8 Loan partic. certificates... 20.1 16.8 16.2 - 3 .6 - 3 .4 * - .2 39.9 36.9 35.4 9.3 6.3 .3 2.7 44.0 19.7 39.7 16.5 38.4 17.7 3.4 - 9 .5 2.2 - 9 .3 1.1 1.1 .2 - 1 .3 38.0 18.7 35.5 8.8 33.8 29.5 28.1 14.8 29.5 9.0 -1 6 .2 - 7 .2 5.8 - 1 4 .4 - 8 .8 4.1 - 1 . 0 .1 - .9 - .7 1.5 14.3 9.0 .8 2.4 2.2 15.5 8.6 .3 3.5 3.2 13.2 10.1 .7 .9 1.4 3.0 3.5 3.5 3.4 3.5 9 10 11 12 13 Other securities and m tg.. . • State and local obligations. Corporate bonds................ Home mortgages............... Other mortgages................ 6.6 1.9 .1 2.4 2.3 14 15 16 17 18 19 Other credit exc. security. . . Consumer credit................ Bank loans n.e.c................. Vault cash & mem. bk. reserves.. 13.3 2.6 9.1 1.6 .5 1.9 20 21 Loans to affiliate banks................ Miscellaneous assets..................... 1.4 1.2 2.3 .6 2.2 .1 6.6 1.0 8.4 .7 3.0 22 Net increase in liabilities................... 23 24 U.S. Government...................... Other?........................................ 25 18.9 .3 - .5 .8 38.1 11.9 .2 11.6 42.2 13.3 - .2 13.5 18.0 5.2 * 5.2 35.9 7.1 2.8 4.2 17.4 - 1 .4 - 5 .4 4.0 32.9 6.7 1.8 4.9 26 27 28 Large negotiable CD’s ............. Other.......................................... 13.3 - .8 14.0 23.8 4.7 19.1 20.6 - 9 .7 3.1 - 1 2 .6 17.4 2.9 29 30 Commercial paper issues.............. .1 .2 31 32 33 34 35 36 F.R. float....................................... Borrowing at F.R. Banks............. Loans from affiliates..................... Profit tax liabilities....................... Liabilities to fgn. branches.......... Other misc. liabilities.................... .3 .1 * 2.7 .2 * * 1 .2 2.2 -. 1 1.8 5.5 37 Discrepancy...................................... .8 .2 .6 5.5 .4 -. 1 3.0 2.3 11.7 19.5 21.7 4.9 3.3 1.8 7.5 15.7 17.8 2.4 - 1 .1 .5 1.5 1.3 - 1 .1 .4 1.8 2.0 .9 * 4.2 .1 9.3 1.5 .1 4.3 3.3 8.4 2.3 1 3.3 2.7 3.5 3.4 3.6 3.6 3.8 1 14.9 9.3 36.3 4.2 18.9 10.1 7.3 18.5 10.8 - 9 .5 - 5 .2 .5 - 7 .6 - 6 .2 - .7 1.2 4.1 2.9 - 3 . 0 - 3 .1 - 1 .6 3.6 30.5 27.4 33.5 6.8 6.8 1.4 - 1 .5 55.2 52.1 43.0 11.0 8.9 2.3 - .3 34.3 28.4 25.4 17.6 8.0 9.7 -.1 60.3 39.1 42.0 3.5 3.2 2.5 - 2 .1 2 3 4 5 6 7 8 9.5 8.0 .9 .6 * 17.7 14.5 18.0 12.9 1.8 .9 2.4 26.8 21.4 2.7 2.7 9 10 11 12 13 14.3 - 1 0 .2 11.7 .4 1.8 3.8 5.3 -1 1 .8 10.5 5.2 1.1 - .6 9.1 3.0 - 2 .9 .4 10.3 5.4 14 15 16 17 18 19 3.6 3.0 1.5 - . 9 - 1 .5 - .2 - .2 2.1 2.1 2.0 1.1 6.0 21.7 28.4 13.8 1.9 3.8 3.9 2.7 2.1 18.0 24.0 11.1 * - .1 2.0 .5 1.3 - 6 .1 4.3 - 3 .1 1.8 .5 - 1 .9 3.1 7.4 5.0 1.0 1.4 22.2 2.8 17.2 3.0 1.0 2.3 17.6 10.1 5.1 1.6 - 3 .3 4.8 .4 - . 7 - 6 .1 - .2 7.2 - 1 .5 .4 .3 7.3 - 9 .8 1.1 2.0 .5 18.5 - . 1 - .3 4.7 - 2 . 0 13.3 8.4 1.8 6.7 7.7 6.8 1.9 4.8 34.6 6.7 2.3 4.4 28.1 7.7 5.2 2.4 53.0 3.5 - 1 .5 5.1 36.7 - 7 .6 - 9 . 0 -2 1 .2 15.2 -1 8 .8 - 1 4 .0 - 1 4 .2 21.6 11.2 5.0 - 7 . 0 - 1 .1 - 3 .3 2.2 11.6 5.3 6.3 28.5 7.6 20.9 65.6 34.3 31.3 6.9 - .1 8.9 .2 - 1 .9 .1 .1 .8 * .2 .1 .6 .1 .3 7.0 - 6 .8 10.4 - . 6 .8 .1 4.2 .3 - 2 .6 - 1 .9 .9 .7 1.0 .7 .6 14 .3 14.6 11.9 16.0 - .1 .2 5.2 1.8 9.1 20 21 32.5 55.7 22 14.9 - 3 .0 23 5.4 -1 7 .8 24 9.4 14.8 25 57.8 5.8 52.0 26 27 28 4.1 -1 1 .5 - 8 .9 - 2 .6 * * * 1.4 29 30 3.4 1.4 2.4 - 3 .1 1.2 2.7 - 2 .1 .4 - 2 . 0 .4 - .2 1.6 - 1 .2 - 2 .1 .4 .3 - .3 .2 .5 - . 1 1.8 * - .3 -.1 .2 .3 1.0 .3 4.3 - 5 .3 - 4 .4 - 2 .9 - 5 .7 -1 4 .3 - 1 5 .4 1.2 7.9 - 6 .6 - 1 .7 - 2 .0 21.7 12.5 * 1.0 .8 .3 .6 .1 .9 31 32 33 34 35 36 5.0 * 41.3 13.4 27.9 .4 1.0 38 Net acquisition of financial assets*. . . 39 Bank loans n.e.c............................ 40 Loans to affiliate banks................ 4.4 - 1 .0 3.8 - 1 .1 .1 .6 2.4 1.4 1.0 7.7 7.0 .7 6.6 6.2 .4 .9 .6 .3 12.0 11.5 .5 4.8 -1 1 .8 4.9 -1 1 .5 -.1 - .3 - 9 .0 - 9 .2 .2 1.1 - .7 1.8 38 39 40 41 Net increase in liabilities................... 42 Commercial paper issues............. 43 Miscellaneous liabilities............... 4.4 - 1 .0 4.2 - 1 .9 .2 .9 2.4 .8 1.6 7.7 4.2 3.5 6.6 5.0 1.5 .9 6.9 - 5 .9 12.0 8.9 3.1 4.8 -1 1 .8 4.1 -1 1 .5 .7 - . 2 - 9 .0 1.1 - 8 .9 —2.6 * 3.7 41 42 43 .7 37 Memo: Amounts included above for un consolidated bank affiliates: N ote .— D a ta revised 1968-70. F o r o th e r notes see p. A-73.9. AUGUST 1971 □ FLOW OF FUNDS A 73.7 4. SECTOR STATEMENTS OF SAVING AND INVESTMENT— Continued (Seasonally adjusted annual rates; in billions of dollars) 1970 1969 1966 Category 1967 1968 1969 1970 I II III IV I II 1971 III IV I Private nonbank financial institutions—Total 1 1 Current surplus................................. 2 Physical investment (life insurance).. 1.6 3 Net acquisition of financial assets... . 4 Demand deposits and currency. . . 5 Time deposits (MSB).................... 6 Svgs. and loan shares (Cr. union) 7 Corporate shares........................... 8 Credit market instruments........... 9 U.S. Government securities---10 State and local oblig................. Corporate and foreign bonds... 11 12 Home mortgages....................... 13 Other mortgages....................... 14 Consumer credit........................ 15 Other loans................................ 16 17 Trade credit................................... 18 Miscellaneous assets..................... 34.9 -.1 * 19 Net increase in liabilities................... Time and savings accounts........... Insurance and pension reserves. . . Credit market instruments........... 23 Finance company bonds........... 24 Mtg. loans in process................ 25 Bank loans n.e.c........................ 26 Other loans................................ 27 Finance company paper........ 28 FHLB loans........................... 29 Investment company shares.......... 30 Security credit............................... 31 Taxes payable............................... 32 Miscellaneous liabilities............... 34.7 7.0 16.7 2.9 20 21 22 33 Discrepancy...................................... .5 -.2 5.9 27.3 .4 1.3 .7 42.4 1.0 * .3 8.3 27.1 - 1 .9 50.0 .9 * .8 8.0 1.2 11.1 8.0 6.8 6.7 1.4 5.1 2.9 3.3 -.1 .2 2 .0 .8 .2 .6 .6 2.8 .3 2 .6 43.3 17.0 17.5 -.8 1.0 -.1 9.4 36.2 -.2 .8 48.4 .5 -.1 * 12.7 36.0 .6 .8 .1 .8 .1 .8 .9 .9 .9 2 .0 .8 .9 3.0 .9 3.1 .9 1 2 51.4 38.3 1.3 - 1 .3 63.9 1.4 42.0 49.6 1.5 33.5 .7 45.9 63.7 1.3 62.6 84.6 2 .0 2.8 -.2 -.2 -.1 .2 1.3 14.3 37.7 3.7 1.9 11.4 11.7 11.3 3 4 5 49.1 3.3 1.4 15.9 13.4 9.6 1.5 .9 .7 11.2 - 2 .3 -.2 .1 10.1 36.6 33.2 2 .2 -.8 3.7 - 2 .4 1.4 1.2 1.0 .4 10.4 9.6 6.6 6.9 8 .6 8.6 7.0 10.6 7.0 6.7 8.7 6 .0 3.8 4.2 .6 4.4 3.8 9.7 4.8 7.3 2 .0 - 2 .6 - 1 .4 - 6 .3 .4 .4 .4 .3 1.4 1.5 2.6 2.3 49.7 50.5 18.5 6.7 18.7 12.4 12.8 .8 .2 8.1 1.6 * 51.6 17.2 21.0 3.8 2.5 41.8 13.5 14.9 7.9 1.4 .7 .9 4.9 1.9 2.9 7.7 - 9 .5 1.0 - .9 - 1 .3 - 2.1 - .7 4.3 3.4 1.8 .9 - 2 .5 2 .6 3.7 .6 2.1 * -.1 3.8 5.0 2 .0 .2 - 2 .0 4.8 7.5 5.8 7.2 1.5 - .9 1.1 .9 .4 .8 2.3 3.3 2.5 .9 4.7 2.1 8.6 4.6 4.0 5.7 .1 .6 - .5 1.2 -.2 1.3 2.4 1.2 .2 .2 .1 13.7 12.0 49.9 34.0 4.8 - 4 .7 1.2 1.5 11.3 6.4 11.2 7.1 6.3 7.2 5.4 3.6 9.8 12.9 - . 6 - 5 .2 .4 .4 .6 - .5 64.3 8.8 22.4 14.7 44.9 5.7 18.7 14.2 1.4 - .3 .9 .3 15.1 26.9 .8 14.7 19.8 - .7 1.9 2.9 -.8 .7 1.8 5.5 7.4 3.4 8.9 1.6 1.8 .4 3.5 50.9 4.5 18.9 12.6 1.2 .6 9.2 36.9 9.8 -.2 12.9 4.5 6.4 51.8 2 .2 2 .0 14.3 10.2 1.8 21.1 8.2 7.0 2.3 2.2 4.8 - .4 - 4 .6 - 3 .4 .4 .4 .9 1.7 8.4 - . 4 - 1.8 15.2 - . 3 .4 2.1 .4 .4 3.3 4.7 33.2 5.2 18.7 4.5 1.3 - 1.2 - 2 .3 46.2 15.8 22.7 5.0 2.3 * 64.2 21.9 19.8 3.8 1.2 - 4 .1 2.4 4.4 .6 .8 3.0 - 3 .6 - 3 .9 .3 3.4 9.4 .4 5.6 4.5 .7 5.3 - 1.1 - .3 63.0 25.8 22.8 1.9 3.8 .8 4.8 2.1 .4 7.4 80.5 52.3 25.5 2.8 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 6.1 3.4 8.5 3.7 4.8 4.2 9.9 - 5 .1 .3 4.9 2.6 .1 8.0 1.6 2.7 - 1 .5 - 7 .4 * -.1 4.7 7.4 1.0 23 24 25 26 27 28 29 30 31 32 .3 2.2 1.4 - 1.0 .3 1.5 2.6 - 2 .0 33 12.7 * 10.4 3.2 4.9 17.9 .1 21.2 .2 1 2 .1 2.3 3.6 11.7 5.3 * 3.8 37.6 .4 31.6 14.3 11.8 17.1 15.6 1.7 20.5 16.9 2.4 2.2 .3 4.9 7.4 4.3 3.1 4.8 3.8 -.1 -.6 13.8 8.5 5.3 1.3 -.6 6.8 1.4 2.8 1.6 2 .2 .1 .3 -.2 2.1 4.1 1.6 6.2 - 9 .0 - 7 .8 - 1.2 .2 Savings and loan associations 1 Net acquisition of financial assets.. . . 2 Demand deposits & currency 2. .. 3 4 5 6 7 8 Credit market instruments........... U.S. Govt, securities................. Home mortgages....................... Other mortgages....................... Consumer credit........................ Misc. financial trans...................... 9 Net increase in liabilities................... 10 Savings shares............................... 11 Credit market instruments........... 12 Mtg. loans in process................ 13 4.6 - .5 4.2 .4 2.9 .9 * .9 9.7 -.3 9.1 1.5 * .9 2.1 .1 * -.2 7.2 3.0 * 2.7 4.0 3.6 9.3 8.9 7.5 8.6 13.6 12.3 11.1 8 .0 .1 - .9 .9 1.6 6 .0 10.6 - 1 .7 1.0 - 2 .5 9.7 - .4 10.1 .7 7.2 1.1 .2 .9 9.5 14.3 9.9 .3 7.8 1.8 * 11.5 -.2 4.1 4.1 * 4.0 .1 1.2 1.9 .6 1.3 12.8 -.1 12.6 1.8 10.2 8.2 6.8 5.5 11.8 9.0 6.1 4.0 - .3 3.0 1.3 - .5 .5 9.1 9.5 1.8 1.7 * .1 .4 - 1.2 3.2 .7 2.9 9.1 4.8 3.5 .3 3.1 .1 7.0 2 .0 * - .9 7.4 2.9 5.1 - .3 5.3 * - 1 .3 5.5 1.8 -.1 .8 5.4 .7 4.6 -.6 4.8 .2 - .1 1.3 4.9 2 .0 2.5 - 1.2 4.4 2.2 .1 9.8 .8 * 14.2 1.5 9.3 3.4 1.6 17.2 .2 .8 .3 2 .2 -.2 5.2 .3 4.5 .6 * 1.7 5.0 .3 3.9 .5 * .9 .3 5.1 .3 .5 1.1 .8 1.1 1.0 1.3 1.3 1.6 .1 4.4 .5 4.7 7.0 - .4 9.6 9.4 2.3 7.2 .5 9.1 .5 12.1 5.2 -.1 5.6 36.9 36.8 - .3 1.6 - 1.2 6.0 13.4 .3 3 4 5 6 7 8 9 10 11 12 13 Mutual savings banks 1 Net acquisition of financial assets3. .. 2 Corporate shares........................... 3 4 5 6 7 8 9 10 State and local govt, securities.. Corporate bonds....................... Home mortgages....................... Other mortgages....................... Savings deposits............................ Miscellaneous liabilities............... 2 .8 5.4 2 .6 5.0 - .3 * * - .5 -.1 .3 1.6 1.1 2 .6 * 1.4 4.6 .3 4.1 -.2 * 1.3 1.4 1.4 5.1 4.2 .2 2.1 1.8 .1 .1 3.1 .2 2.9 - .5 * .3 1.4 1.3 2.6 .2 4.7 .3 3.9 .2 * 1.4 .9 .9 4.7 .3 * .9 4.9 4.4 3.8 .1 .1 .2 1.6 1.3 3.5 .2 1.8 .2 1.2 3.3 - . 5 - 1.0 * * .8 - .3 1.5 1.1 2.1 .2 2.6 -.8 * -.1 1.2 1.0 1.4 1.7 2.7 .5 1.5 * 2 .2 .3 2.6 .3 2 .0 -.6 * .9 .2 .1 2 .2 12.0 - .5 .2 7.8 1.6 1.5 1 2 3 4 5 6 7 8 12.4 9 -.1 10 9.2 14.1 2.9 4.3 5.3 7.6 - . 3 - 1.1 1 2 Life insurance companies 1 Net acquisition of financial assets3. .. 2 Corporate shares........................... 3 4 5 6 7 8 9 Credit market instruments............ U.S. Govt, securities................. State and local obligations---Corporate bonds....................... Home mortgages....................... Other mortgages....................... Other loans................................ 10 Net increase in liabilities................... 11 Life insurance reserves................. 12 Pension fund reserves................... 13 Other liabilities............................. N ote .—D ata revised 1968-70. 8.3 .3 7.8 - .3 - .4 2.4 .6 4.0 1.5 8.7 1.0 7.4 - .3 -.1 3.8 - .5 3.4 1.0 7.9 4.5 4.7 2.1 1.2 2 .6 1.6 8.8 9.8 1.4 7.7 -.1 .2 9.2 1.7 6.6 - .4 * 1.5 3.9 - . 7 - 1.1 3.2 3.1 1.2 3.4 9.1 4.6 2.9 1.5 F o r o th e r notes see p. A-73.9. 9.2 4.8 2.9 1.4 9.3 2 .0 6.8 * .1 1.5 - 1 .4 3.7 2.9 9.3 4.8 3.1 1.4 9.1 1.9 5.7 - .7 * 2.4 - .7 9.2 1.8 8.7 * * 2.7 - .6 2.6 2.2 2.9 3.7 9.2 4.8 2.9 1.4 9.2 4.9 2.9 1.5 9.1 1.1 7.5 -.8 .2 1.5 -.8 3.2 4.2 9.3 4.9 2.9 1.3 9.2 2.1 4.6 .1 -.1 - .6 - 2.1 3.8 3.6 9.3 4.8 3.0 1.5 2.2 6.2 8.6 .1 .2 -.5 * - .1 2.4 1.3 .7 - 1 .3 - 1.2 - 1.2 3.3 3.7 4.0 5.0 1.9 3.4 .1 1.8 - 1.8 9.3 4.8 3.1 1.3 9.3 4.8 3.1 9.3 4.8 3.0 1.4 9.3 4.8 3.0 1.6 3.9 1.5 1.2 .1 3.2 - 1 .5 2.4 4.4 12.1 4.8 5.9 1.5 3 4 5 6 7 8 9 10 11 12 13 A 73.8 FLOW OF FUNDS □ AUGUST 1971 4. SECTOR STATEMENTS OF SAVING AND INVESTMENT— Continued (Seasonally adjusted annual rates; in billions of dollars) 1969 Category 1966 1967 1968 1969 1970 I II 1970 III IV I II 5.7 .3 5.2 .9 - .4 5.3 - .3 3.8 1971 III IV I Private pension funds 1 Net acquisition of financial assets.. 2 Demand deposits and currency 3 Corporate shares....................... 4 Credit market instruments........ 5 U.S. Govt, securities............. 6 Corporate bonds................... 7 Mortgages.............................. 8 Miscellaneous............................ 6.1* 3.7 1.9 - .5 1.9 .5 .6 6.3 .4 4.6 .5 -.6 .9 .1 6.4 .3 4.7 6.3 .4 .7 .1 .6 .1 .1 1.1 * .3 * 5.4 .9 6.6 3.3 .2 -1.6 5.8 2.0 - . 7 .4 1.6* -.2 -.2 7.5 1.6 4.6 4.8 .7 * * .7 .4 6.1 - .3 4.5 2.7 .9 8.3 .4 6.5 .7 -.5 .3 - .7 .3 1.6 .8 6.2 9.0 8.1 .8 -.1 1.0 6.8 9.2 2.7 1.8 3.2 2.1 - 3 . 0 .6 2.1 -.6 -.2 1.2 1.3 2.8* - 2 .3 -.6 -.1 - .4 1.0 .3 1.1 .2 - .7 State and local govt, employee retirement funds 1 Net acquisition of financial assets---2 Demand deposits and currency... 3 4 5 6 7 8 9 Corporate shares........................... Credit market instruments.......... U.S. Govt, securities................. D irect..................................... U.S. Govt, agency sec........... Other cr. mkt. instruments . . . . Corporate bonds................... Mortgages.............................. Other.............................................. 10 11 12 4.0 3.9 .5 3.4 .7 .1 .1 2.8 .2 .1 .1 -.1 - 1.0 - 1.1 3.8 2.5 4.5 3.4 .5 .4 .8 .1 .1 -.1 4.6 * 1.3 3.2 .4 - .3 .6 * 4.2 2.5 .4 .1 4.6 * 1.7 2.9 -.2 - .4 .2 -.2 5.1 3.0 .3 * 6.6 .2 2.1 4.1 - .3 - .4 * - .3 6.9 3.9 .9 .2 3.9 * 7.1 * 1.2 2.1 2.9 .1 * 5.1 - .3 - .4 1 .1 -.1 . * 4.0 2.5 .3 7.6 5.2 .3 - .1 -.2 4.8 * 1.5 3.2 * - .4 .4 * 4.7 2.3 .9 * 5.2 - .4 1.9 3.5 2.8 * 2.1 .6 -.8 - .8 .1 -.1 -.2 .1 -.1 - .5 3.9 1.9 5.6 2 .6 1.1 .2 -.1 .1 9.5 .6 2.2 6.5 - .4 - .5 .1 -.6 9.8 6.3 1.3 .2 5.7 -.2 1.5 4.2 * * -.2 6.0 3.9 .6 .2 5.9 .7 2.9 2.1 -.8 - .7 * —. 5 6.2 2.7 .6 .2 6.7 2.8 3.8 - 1 .3 -.6 - .7 -.1 7.9 4.8 .3 .1 1 2 3 4 5 6 7 8 9 10 11 12 Other insurance companies 1 Current surplus................................. .5 .4 .1 * .5 * * * - .1 2.1 * .4 1.5 - .4 1.3 .6 * 2.0 3.1 3.0 * 3.7 * 3.3 * 4.6 .5 1.9 1.0 1.6 1.0 1.1 1.8 3.4 * 1.3 1.7 - .3 3.7 * 1.4 2 .0 * 1.2 .8 1.1 .8 10 Net acquisition of financial assets.. . . Demand deposits and currency... Corporate shares........................... Credit market instruments........... U.S. Government securties. . . . State and local oblig................. Corporate bonds....................... Commercial mortgages............. Trade credit................................... 11 12 Net increase in liabilities................... Discrepancy....................................... 1.8 .1 2 3 4 5 6 7 8 9 .2 * .3 1.4 - .7 1.4 .7 * .3 2.1 .5 .1 .8 -.2 1.0 1.2 * .3 2.4 - .5 - .4 2.3 * 1.2 .8 1.1 1.2 * .4 3.4 .4 - .3 - .1 1.2 -.1 3.1 - .2 - 2.2 1.0 * .4 .9 * .4 1.3 .8 * .4 3.7 3.4 4.9 .3 .6 1.2 .1 .3 1.3 .7 * .4 1.4 .9 -.1 * .4 3.9 .4 * .4 .2 .8 1.1 1.1 1 3.6 * 3.7 * 3.2 .5 4.6 * 1.5 2.7 * 2 1.1 2 .0 .1 1.1 .8 3.7 * 1.3 * .4 3.6 3.6 -.2 .2 .1 1.0 1.6 2 .0 - .4 1.0 1.2 * .4 1.4 * .4 3.8 .9 3.9 1.3 3.8 -.6 3.1 .3 1.7 1.5 * .4 .2 3 4 5 6 7 8 9 10 11 12 Finance companies 1 Net acquisition of financial assets.. .. 2 Demand deposits and currency... 3 4 5 Home mortgages........................... Consumer credit........................... Other loans (to bus.)..................... 6 Net increase in liabilities................... Corporate bonds........................... Bank loans n.e.c............................ 9 Open market paper....................... 7 8 2. 6 .2 —. 6 1 .8 1 .2 2 .8 .8 -1 .4 3.4 .9 5.5 .4 .6 2.4 .2 .6 - .4 .2 2.2 .9 5.5 - 2 .0 2.3 2.5 1.0 1.8 .8 8.0 I 1.9 .3 4.6 .3 11.4 .3 .3i .3 2.6 i 4.8 .1 -.6 2.1 2.7 3.5 6.7 8.2 1.6 2.1 1.9 2.5 - .5 4.7 1.4 1.4 1.9 11.2 2 .2 4.6 -.2 .6 1.0 ' .8 4.7 4.3 8.7 .3 - .5 2.2 7.5 .3 2.1 .3 - .7 ' 1.3 .2 2.1 6.7 4.9 9.1 1.4 - .7 8.5 1.3 2.9 3.7 8.0 1.2 2.0 1.3 - 1 .7 2.4 4.0| 2.0 .3 .3 - .4 1.2 .9 - 2.1 3.2 2.6 4.2 2.3 1.3 .6 2.1 2.8 .3 .4 - 2.6 1.3 -.8 2 .0 - .6 3.1 4.1 3.2 - 3 .9 3.8 - 4 .7 .3 - .7 -.1 6.8 - 7 .8 1 2 3 4 5 6 7 8 9 Open-end investment companies 1 Current surplus................................. - 1.2 - 1 .5 - 2 .2 - 2 .4 -.8 - 4 .9 - 1.8 - 2.1 Net acquisition of financial assets---Demand deposits and currency... Corporate shares........................... Credit market instruments........... U S. Govt, securities................. Corporate bonds....................... Open market p a p e r ................. 2.5 * 1.1 .2 2.5 1.6 - .1 4.1 - .1 2.8 -.1 3.0 .1 3.3 1.0 1.5 .9 2.5 .9 - .5 1.1 .4 .5 1.5 - .5 - .5 * * 3.1 * * .5 - .4 9 Net stock issues 4 ............................. 3.7 2.6 4.7 4.8 2 3 4 5 6 7 8 1.5 .6 .2 .4 .3 N ote.—D ata revised 1968-70. For other notes see p. A-73.9. * .2 1.2 .7 - .4 - .7 3.6 - .7 .5 3.8 5.7 2.4 7.7 .5 .2 -.1 3.3 .9 .2 -.6 1.3 6.1 -.8 -1 .4 - 1.1 3.4 .2 1.6 1.9 2.6 * * - .5 .2 .3 4.3 4.2 - 1.0 - . 8 2.1 3.2 - .4 - . 9 - 3 .9 3.1 .1 - 1 .3 8.3 - 7 .0 -.8 * .3 - 2 .9 2.4 3.2 .2 6.9 - 2 .9 - . 3 - 5 .2 4.2 1.6 2.7 3.4 2.1 - .3 1 - .1 2 .4 2.1 3 4 5 - 2 .5 * —2.6 8 .2 9 6 7 AUGUST 1971 o FLOW OF FUNDS A 73.9 4. SECTOR STATEMENTS OF SAVING AND INVESTMENT— Continued (Seasonally adjusted annual rates; in billions of dollars) 1970 1969 Category 1966 1967 1968 1969 1970 I II III I IV II 1971 III IV I 4.0 63.7 59.7 3.2 4.2 2.7 63.2 66.1 60.5 61.9 3.1 3.3 .7 - l . l 1 2 4.1 6 Rest of the world 1 Net U.S. exports............................... 2 3 4 Transfer receipts from U.S............... 5 Current account balance 1 ................ 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Net financial investment.................... Net acquis, o f financial assets ....... Gold and SDR’s 2 ..................... U.S. dem. dep. and currency... Time deposits............................ U.S. Corporate shares.............. U.S. Government securities___ Other credit market instr . 3 . . .. Other financial assets 4 ............. Net increase in liabilities ............... Official U.S. fgn. exchange5 . . . 5.3 43.4 38.1 - 2 .4 5.2 46.2 41.0 3.0 - 2.2 - 2.0 - 1.2 3 .3 .6 - 1.0 .8 7 .6 1.2 2.8 - .3 - 2 .4 .9 4.7 5 .3 * - .3 .7 >0 Foreign corporate shares.......... Corporate bonds....................... Loans 6 ....................................... Other liabilities 7....................... >1 Discrepancy 8.................................... - .4 1.1 3.8 .3 1.2 .7 2.5 50.6 48.1 2.9 .4 .9 8 .5 1.2 .3 - .3 2 .0 3.7 1.0 1.6 - 1.8 -.5 .8 1.5 8.7 8 .7 1.1 .1 1.2 2.8 7.6 2.1 .2 1.1 6 .7 1.7 .6 5 .2 .8 10.3 - 1.0 .3 2.1 .1 2 .0 4.9 3.6 62.9 59.3 3.1 - .4 2 .0 55.6 53.6 2.9 .9 1.4 48.0 46.6 2.5 1.2 5.9 13.9 .2 -.1 1.2 56.9 55.7 3.4 2.2 4.2 15.2 - 1 .3 .3 .6 - . 5 - 1 .4 - 1 .9 3.0 .7 .6 9.1 - 4 .5 - 1.8 1.1 1.5 2.1 - 5 .0 14.4 16.4 4 .6 .3 .5 - 2 .5 * 1.0 2 .2 .8 8 .0 .4 .2 1.3 11.0 -.1 1.2 .8 3.6 2.7 1.7 4.5 2 .6 2.6 3.6 4.0 5.1 - 1.1 - .5 - 2.8 - 1.1 - 4 .8 - 2 .0 4.2 3.5 61.5 63.2 58.0 59.0 3.0 3.0 - . 5 - 1.2 2.8 -.1 2.7 59.2 56.6 3.0 .3 4.1 .4 .6 8.8 5.7 - .4 1.4 4.3 - .3 2 .8 58.3 55.5 —.2 12.4 * - 2.8 * .6 .4 .7 2.7 1.7 6.3 2.0 - 3 .7 .7 - 2.1 - .7 - 1 .9 .1 .4 .4 1.7 .3 1.9 3.2 - 1.1 8.3 2.8 - 4 .1 -.1 8.0 1.8 - 6 .0 8.1 - 2 .3 - .4 1.1 1.9 7.9 - 1.1 .3 4.8 - .1 - .4 - 3 .5 - .3 8.2 1.7 - .7 4 .5 - 4 .2 -.8 1.5 12.6 7 .9 2.2 1.4 -.1 .5 - .5 - 3 .2 - 5 .1 - 1.2 .3 1.5 1.9 4.7 15.5 26.1 .4 2.3 - 1.1 2.3 - 1 5 .4 - 1 3 .7 10 11 12 5 .2 3 .7 -.2 - 1 .7 .4 7.0 2.1 .3 3.2 - 1 .5 - 2.2 - .3 .1 2 .0 3 4 5 1.6 1.9 - 1 .9 .3 .9 2.7 -.2 .5 8 .5 - 2 .5 .3 1.2 3.6 8 9 13 14 15 16 17 18 19 6 .0 20 - 5 .2 21 N o te . —Data revised 1968-70. Notes to Table 4 Households 1 Imputed saving associated with growth of government life insurance and retirement reserves. 2 From open-end investment companies. 3 Policy loans, hypothecated deposits, and U.S. Govt, loans to nonprofit organizations. Business 1 Excludes imputed rental income from owner-occupied houses. 2 Change in work in process. 3 After inventory valuation adjustment. 4 Excludes CCC-guaranteed loans, treated as U.S. Govt, purchases on NIA basis. 5 Includes corporate farms. 6 Noncorporate net income is treated as payment in full to proprietors in the household sector. Gross saving consists of capital consumption allowances plus corporate farm retained profits. 7 Loans from U.S. Govt, and commercial loans from finance companies. 8 Includes earnings retained in business; see note 6 above. 9 Direct investments abroad, foreign currency holdings, and unallocated current assets. C om m ercial p ap e r, com m ercial loans fro m finance com panies, an d U.S. Govt, loans. Governments 1 Retirement funds are on p. A-73.8. 2 Unified budget basis for all years. Excludes sponsored agencies shown below. 3 Govt, life insurance, employee retirement, and R.R. retirement programs. 4 Securities of sponsored credit agencies only. 5 Mainly official foreign exchange and IM F position of Treasury. Includes net purchases of Special Drawing Rights, which are assets of the Exchange Stabilization Fund. Initial allocation of SDR’s in January is excluded, however, from these tables on transactions. 6 Loan participation certificates and securities issued by Export-Import Bank, GNMA, CCC, Federal Housing Administration, and TVA. In cludes mortgage liabilities of Defense Dept, and Coast Guard. 7 Includes net sales of SDR certificates to Federal Reserve System. 8 Home loan banks, land banks, intermediate credit banks, banks for cooperatives, Federal National Mortgage Association (before 1969, sec ondary market operations only), and mortgage pools issuing GNMAguaranteed securities. Banking 1 Federal Reserve System plus those Treasury accounts included in “Member Bank Reserves, Federal Bank Credit, and Related Items” (p. A-4). Excludes Exchange Stabilization Fund, which is in U.S. Govt, accounts. 2 Includes F.R. holdings Of foreign currencies. On Special Drawing Rights, see notes 5 and 7 to Governments table. SDR certificates as assets of the Federal Reserve are on line 4 of this table. 3 Includes vault cash of nonmember banks. 4 IMF deposits are net in line 3. 5 This section represents a combined statement for commercial banks plus affiliates not consolidated in bank reports (see lines 38-43 below). Based on balance sheet estimates for last day of quarter. Reported bank data, as on p. A-19, are frequently for last Wednesday of month or other reporting date. Excludes banks in U.S. possessions. 6 Net change in par value of holdings. 7 Net of F.R. float, shown separately in line 31. Nonbank finance 1 In addition to types shown, includes credit unions, agencies of foreign banks, security brokers and dealers, and banks in possessions. 2 Excludes deposits at FHLB, which are included in Miscellaneous, line 8 . 3 Includes cash and other assets, not shown separately. 4 Includes retained capital gains dividends. Rest of the world 1 Line 4 minus line 1. The current balance is shown here from the viewpoint of the rest of the world and is thus opposite in sign from U.S. balance of payments statements and U.S. national income accounts. 2 Net purchases of gold and Special Drawing Rights from the U.S. only. Excludes acquisitions of gold from outside the U.S. Also excludes January allocation of SDR’s. 3 Corporate bonds and acceptances. 4 Trade credit, direct investment in the United States, bank liabilities to foreign branches, deposits at agencies of foreign banks, security credit, and unallocated assets. 5 Includes net IMF position. 6 Bank loans, acceptances, and loans from U.S. Govt. 7 Trade debt, direct investment abroad, foreign currencies other than in line 15, subscriptions to international organizations except IMF, and unidentified liabilities. 8 Errors and omissions in U.S. balance of payments statement. A 74 U.S. BALANCE OF PAYMENTS □ AUGUST 1971 1. U.S. BALANCE OF PAYMENTS (In millions of dollars) Line 1968 Credits-)-; debits — 1969 1970 1970 I 1971 III II IV I p Summary—Seasonally adjusted 3 1 2 Merchandise trade balance 1................................................... 624 660 513 751 2,110 704 142 272 Exports.............................................................................. 33,588 36,490 41,980 10,241 10,582 10,696 10,461 11,032 Imports.............................................................................. -32,964 -35,830 -39,870 -9 ,7 2 8 -9,831 -9 ,9 9 2 -10,319 -10,760 4 5 Military transactions, net......................................................... Travel and transportation, net................................................ -3 ,1 4 0 -1,558 6 Investment income, net 2 ......................................................... U.S. direct investments abroad........................................ Other U.S. investments abroad........................................ Foreign investments in the United States....................... 6,242 6,220 1,469 1,577 5,975 1,571 1,626 1,727 6,519 7,340 7,906 2,039 1,905 1,973 1,988 1,984 2,714 ' 3,199 3,503 886 886 861 882 851 -3,013 -4 ,5 6 4 -5 ,1 6 7 -1,3 4 8 -1 ,3 2 2 -1 ,2 8 4 -1,2 1 3 -1 ,1 1 8 7 8 9 -3,341 -1 ,7 8 0 -3,371 -1 ,9 7 9 -908 -448 -808 -5 0 0 -8 8 4 -553 -770 -478 -677 -4 8 4 10 Other services, net..................................................................... 344 497 588 147 133 157 150 213 11 Balance on goods and services 3 ....................................................... 2,489 2,011 3,592 881 1,045 995 670 1,051 -351 12 Remittances, pensions and other transfers............................. -1,168 -1 ,2 6 6 -1 ,4 1 0 -338 -362 -359 -351 13 Balance on goods, services and remittances.................................... 1,321 745 2,182 543 683 636 319 700 14 U.S. Government grants (excluding military)......................... -1 ,7 0 7 -1 ,6 4 4 -1,7 3 9 -418 -391 -4 4 4 -485 -4 3 2 15 Balance on current account............................................................... -386 -899 444 125 292 192 -166 268 16 -2,5 3 8 -2 ,1 0 6 269 -8 7 -1 ,8 3 7 244 -511 -4 8 0 114 -396 -4 5 0 40 -603 4 23 24 25 U.S. Government capital flows excluding nonscheduled repayments, net 4 .................................................................. Nonscheduled repayments of U.S. Government assets.......... U.S. Government nonliquid liabilities to other than foreign official reserve agencies......................................................... Long-term private capital flows, n e t....................................... U.S. direct investments abroad........................................ Foreign direct investments in the United States............. Foreign securities.............................................................. U.S. securities other than Treasury issues....................... Other, reported by U.S. banks........................................ Other, reported by U.S. nonbanking concerns............... 26 Balance on current account and long-term capital 4........................ -1 ,3 4 9 -2 ,8 7 9 -3 ,0 3 8 27 28 29 30 Nonliquid short-term private capital flows, net..................... Claims reported by U.S. banks........................................ Liabilities reported by U.S. nonbanking concerns......... 231 -4 4 -484 759 -6 0 2 -658 -3 5 91 -548 -1 ,0 1 5 -363 830 31 32 Allocations of special drawing rights (SDR)......................... Errors and omissions, n e t........................................................ -493 -2,6 0 3 33 Net liquidity balance......................................................................... -1 ,6 1 0 -6 ,0 8 4 34 35 36 37 38 39 40 41 Liquid private capital flows, net.............................................. Liquid claims..................................................................... 3,251 -559 -6 1 -498 3,810 3,387 48 375 8,786 -5 ,9 6 9 -1 ,6 1 5 124 273 257 -209 -119 140 333 392 117 8,662 -6 ,2 4 2 -1 ,8 7 2 9,166 -6 ,5 0 7 -1 ,8 6 3 179 142 -6 3 -441 86 -151 1,641 2,702 -9 ,8 2 1 1,806 -162 17 18 19 20 21 22 Reported by U.S. nonbanking concerns................. Liquid liabilities................................................................ To foreign commercial banks.................................. To international and regional organizations........... To other foreigners.................................................... 42 43 44 Nonliquid liabilities to foreign official agencies reported 45 Liquid liabilities to foreign official agencies........................... 46 47 48 49 50 Gold................................................................................... SD R................................................................................... 51 52 53 Gold tranche position in IM F ......................................... Memoranda: Transfers under military grant programs, (excluded from lines 2, 4, and 14................................................................... Reinvested earnings of foreign incorporated affiliates of U.S. firms (excluded from lines 7 and 20).......................... Reinvested earnings of U.S. incorporated affiliates of foreign firms (excluded from lines 9 and 21)...................... F o r notes see end o f table. 2 -2 2 4 -436 107 263 -3 0 -2 7 2 -969 1,198 -5 0 -1 ,4 5 3 -3,2 0 9 -3 ,2 5 4 -4 ,4 4 5 -1,358 -1 ,2 5 7 319 969 105 832 486 -1 ,2 2 6 -1 ,4 9 4 -9 4 2 93 -2 1 0 374 4,389 3,112 2,190 304 68 430 199 31 477 576 -2 2 2 345 495 277 -897 218 -488 720 44 183 -8 8 -263 7 -9 9 7 -934 -1 ,3 5 7 160 50 -337 -3 6 2 792 628 -1 1 4 56 158 270 -1 ,2 9 7 -570 -340 -832 -1 ,4 1 6 -107 -162 -108 163 -164 -268 -4 7 151 -1 2 1 -189 -5 6 124 -156 -396 -152 392 -1 0 0 867 -1 ,1 3 2 217 -6 2 217 -4 3 0 217 -433 180 216 -207 -1,2 6 8 -3 ,8 5 2 -1 ,2 5 0 -945 -679 -977 Financed by changes in: Nonliquid liabilities to foreign official reserve agencies 88 535 82 -2 2 0 -8 5 -1 5 -2 ,6 0 4 -457 -1 ,3 9 8 -2 ,4 9 9 -2 ,9 1 9 -8 1 112 -2 3 2 -1 5 -7 2 -7 9 -127 -5 3 -1 6 0 191 46 38 -376 -1,383 -2,611 -2 ,6 8 7 -441 -1 ,3 1 5 - 2,888 -3 ,0 2 5 268 -124 82 -7 9 198 70 189 -150 -2 ,8 6 5 -1 ,4 0 2 -2 ,0 7 7 -266 735 -1 2 77 -8 -216 5,065 -3 ,4 7 6 -5 ,5 2 3 -836 -5 1 7 -8 1 0 7,619 -154 3,021 -235 97 -233 1,738 -188 2,763 -8 8 0 -1 ,1 8 7 1,173 -9 6 7 814 -1 ,0 3 4 2,477 787 -851 2,152 389 264 -4 4 -2 7 0 831 -253 805 14 -2 5 4 818 227 584 395 -251 34 406 824 422 -7 6 469 9 682 109 -5 5 373 255 613 137 191 116 169 191 534 -3,101 -1,183 -870 804 756 2,175 2,532 ( 5) ( 5) ( 5) ( 5) ( 5) ( 5) 488 431 ( 5) ( 5) ( 5) ( 5) ( 5) ( 5) AUGUST 1971 □ U.S. BALANCE OF PAYMENTS AND FOREIGN TRADE 1. A 75 U.S. BALANCE OF PAYMENTS-Continued (In millions of dollars) 1968 Credits + , debits — 1969 1971 1970 1970 II III IV Ip -1 ,4 6 7 -3 ,0 8 2 -1 ,1 6 2 -1 ,6 1 9 -896 -2 ,2 9 4 -1 ,1 9 3 -3 ,6 9 2 -2 ,7 8 4 -5 ,7 0 3 I Balances excluding allocations of SDR’s—Seasonally adjusted Net liquidity balance..................................................................... Official reserve transactions balance............................................ -1 ,6 1 0 1,641 -6 ,0 8 4 -4 ,7 1 9 2,702 - 10,688 Balances not seasonally adjusted Balance on goods and services (line 11)...................................... Balance on goods, services and remittances (line 13)................. Balance on current account (line 15)............................................ Balance on current account and long-term capital 4 (line 26)... Balances including allocations of SDR’s : Official reserve transactions (line 42).................................... Balances excluding allocations of SDR’s : 2,489 1,321 -386 -1 ,3 4 9 745 -899 -2,8 7 9 3,592 2,182 444 -3,0 3 8 1,234 913 465 -1 ,3 1 0 1,300 925 487 -899 -291 -657 -1 ,0 6 0 -1 ,5 3 5 1,349 1,002 552 706 1,419 1,085 624 -1 ,3 6 6 -1 ,6 1 0 1,641 -6 ,0 8 4 2,702 -3 ,8 5 2 -9,821 -505 -1 ,9 6 5 -1,7 8 3 -2 ,0 6 9 -1 ,4 5 6 -2 ,6 1 2 -1 0 7 -3 ,1 7 4 -1,9 2 1 -4 ,6 8 6 -1 ,6 1 0 1,641 -6 ,0 8 4 -4 ,7 1 9 2,702 - 10,688 -1 ,3 7 2 -2 ,8 3 2 -1,7 8 3 -2,0 6 9 -1 ,4 5 6 -2 ,6 1 2 -1 0 7 -3 ,1 7 4 -2 ,6 3 8 -5 ,4 0 3 1 Adjusted to balance of payments basis; excludes transfers under military grants, exports under U.S. military agency sales contracts and imports of U.S. military agencies. 2 Includes fees and royalties from U.S. direct investments abroad or from foreign direct investments in the United States. 2,011 3 Equal to net exports of goods and services in national income and product accounts of the United States. 4 Includes some short-term U.S. Govt, assets. 5 Not available. N o te .— Data are from U.S. Department of Commerce, Office of Busi ness Economics. Details may not add to totals because of rounding. 2. MERCHANDISE EXPORTS AND IMPORTS (Seasonally adjusted; in millions of dollars) 1968 M onth: Jan...................... 2,814 2,775 Feb..................... Mar.................... 3 2,439 Apr..................... 3 2,855 M ay................... 2,740 2,870 June................... July ........ 2,858 3 2,950 Sept . . . . 3 3,211 3 2,631 Oct .... 2,972 Nov .......... Dec ............ 2,977 Quarter: I ................... I I ........................ in IV Year4 .......... 1969 1970 1971 3 2,161 3 2,266 3 3,188 3 3,318 3 3,268 3,406 3,547 3,376 3,409 3,661 3,730 3,699 3,592 3,553 3,689 3,499 3,570 3,735 3,690 3,815 r3,522 3,783 3,661 11,240 10,966 3 3,179 3,182 3,366 3,341 3,342 3,398 3,280 8,028 8,465 9,019 8,580 7,615 9,765 9,889 10,020 10,328 10,800 10,845 10,758 34,063 37,332 42,662 1968 1969r 1970 1971 1968 1969 2,687 2,592 3 2,589 3 2,604 2,755 2,792 2,725 2,872 2,951 2,736 2,883 2,908 3 2,002 3 2,672 3 2,982 3 3,183 3 3,257 3 3,152 3,074 3,163 3,078 3,192 3,180 3,078 3,223 3,278 3,218 3,263 3,338 3,266 3,255 3,346 3.428 3,501 3.428 3,404 3,686 3,553 3,569 3,758 3,988 4,023 127 184 -1 5 0 251 -1 5 78 133 78 261 -1 0 5 89 70 159 -406 206 135 7,867 8,151 8,548 8,527 7,655 9,591 9,315 9,450 9,719 9,867 10,029 10,333 10,808 11,769 33,226 36,043 39,963 1 Exports of domestic and foreign merchandise; excludes Dept, of Defense shipments of grant-aid military equipment and supplies under Mutual Security Program. 2 General imports including imports for immediate consumption plus entries into bonded warehouses. Export surplus Imports 2 Exports i Period 1970 1971 49 136 245 -2 3 6 -205 -3 6 3 202 183 269 158 146 323 465 444 246 125 188 71 166 161 314 471 53 -4 0 174 574 570 609 933 816 425 432 -8 0 3 837 1,289 2,699 11 27 108 203 263 150 218 3 Significantly affected by strikes. 4 Sum of unadjusted figures. N o te . —Bureau of the Census data. Details may not add to totals be cause of rounding. A 76 U.S. GOLD TRANSACTIONS □ AUGUST 1971 3. U.S. NET MONETARY GOLD TRANSACTIONS WITH FOREIGN COUNTRIES AND INTERNATIONAL ORGANIZATIONS (Net sales ( —) or net acquisitions; in millions of dollars at $35 per fine troy ounce) 1970 Area and country 1962 1963 1965 1964 1966 1968 1967 1969 I Western Europe: -143 —63 -456 -8 2 -518 —55 —40 -405 -225 -1 -2 80 -3 0 -879 -5 0 -835 -3 5 -4 9 16 -4 7 - 8 8 -1,2 9 9 -659 -980 -669 200 150 50 -3 9 -3 7 -1 -1 -6 329 1 -6 T otal........................... -1,105 -399 Canada ................................. 190 85 57 38 -5 —30 72 54 10 -1 1 -9 32 T otal........................... 175 Asia: Iraq ..................................... Japan.................................. Lebanon............................. Malaysia............................. Philippines......................... Saudi Arabia..................... Singapore........................... Other.................................. -3 2 -1* -1 3 -4 7 -1 3 T otal........................... -9 3 12 -2 -8 5 -1 2 Latin American republics: Argentina ......................... Brazil.................................. Colombia........................... Venezuela........................... Other.................................. -2 -6 0 -387 102 -2 56 25 29 -2 5 -1 3 17 -41 -1 0 -4 -5 6 -2 8 -2 3 11 -4 0 -2 9 9 -6 5 -5 4 -2 2 -8 6 -4 4 -3 6 6 —7 -1 6 -2 2 3 —166 3 —68 -1 -3 6 -833 -392 -3 6 - J ,322 -833 -392 -3 6 -1,5 4 7 Intl. Monetary Fund 5........... 6-225 200 -2 5 * -1 4 Total foreign countries......... —20 51 -5 0 —50 51 -5 0 -2 5 * -1 4 -6 * -1 2 9 2 -4 2 -1 -608 —1,031 -1 ,1 1 8 -1 -2 3 -2 3 -4 -6 6 * -131 -7 -9 -4 -1 1 1 * -1 1 9 -3 5 -4 1 * 3 -1 -1 -4 1 -7 1 21 -3 9 -1 9 7 -1 5 11 -8 —1 -9 1 2 23 42 -213 24 -1 -8 1 -1 -2 -4 -7 5 —l 957 4 —631 20 -1 4 -7 3 4 —563 —102 -9 —156 24 -787 44 1968. 4 Data for IMF include the U.S. payment of $385 million increase in its gold subscription to the IMF and gold sold by the IMF to the United States in mitigation of U.S. sales to other countries making gold payments to the IMF. The country data include U.S. gold sales to various countries in connection with the IMF quota payments. Such U.S. sales to countries and resales to the United States by the IM F total $548 million each. is -8 5 -9 10 3 Includes sales to Algeria of $150 million in 1967 and $50 million in -2 1 -1 8 0 -8 0 967 1 Includes purchase from D e n m a rk o f $25 m illion. 2 Includes p u rch ase fro m K u w a it o f $25 m illion. -8 -119 40 -2 5 -7 5 -2 7 -5 -3 22 -1 -1 -3 0 -1 -1 -431 -1 ,0 0 9 - 1,121 177 I 2 4 -2 4 20 -2 5 2 -2 9 -1 IV -129 -204 -2 1 III 4 325 500 41 -7 6 il 3 25 -1 1 II 969 -9 5 -3 4 9 -5 0 -8 1 -7 5 -1 1 All other................................. Grand total................ -5 8 600 -8 0 -3 5 -180 -5 0 150 200 -130 -2 5 -601 -5 2 -209 -1 9 -6 0 -3 2 -8 1 618 —146 -1 0 0 -8 3 -884 1971 1970 -1 4 —322 4142 —7 -395 -4 2 2 -1 0 9 5 Includes IM F gold sales to and purchases from the United States. U.S. payment of increases in its gold subscription to IMF, gold deposits by the IM F (see note 1 (b) to Table 4), and withdrawal of deposits. The first withdrawal, amounting to $17 million, was made in June 1968. IMF sold to the United States a total of $800 million of gold ($200 million in 1956, and $300 million in 1959 and in 1960) with the right of repurchase; proceeds from these sales invested by IMF in U.S. Govt, securities. In Sept. 1970 IM F repurchased $400 million. 6 Payment to the IMF of $259 million increase in U.S. gold subscription less gold deposits by the IMF. Notes to Table 5 on opposite page: 1 Represents net IMF sales of gold to acquire U.S. dollars for use in IM F operations. Does not include transactions in gold relating to gold deposit or gold investment (see Table 6). 2 Positive figures represent purchases from the IMF of currencies of other members for equivalent amounts of dollars; negative figures repre sent repurchase of dollars, including dollars derived from charges on purchases and from other net dollar income of the IMF. The United States has a commitment to repurchase within 3 to 5 years, but only to the extent that the holdings of dollars of the IMF exceed 75 per cent of the U.S. quota. Purchases of dollars by other countries reduce the U.S. commitment to repurchase by an equivalent amount. 3 Includes dollars obtained by countries other than the United States from sales of gold to the IMF. 4 Represents the U.S. gold tranche position in the IMF (the U.S. quota minus the holdings of dollars of the IMF), which is the amount that the United States could purchase in foreign currencies automatically if needed. Under appropriate conditions, the United States could pur chase additional amounts equal to its quota. 5 Includes $259 million gold subscription to the IMF in June 1965 for a U.S. quota increase, which became effective on Feb. 23, 1966. In figures published by the IM F from June 1965 through Jan. 1966, this gold sub scription was included in the U.S. gold stock and excluded from the reserve position. 6 Includes $30 million of special drawing rights. N o te . —The initial U.S. quota in the IMF was $2,750 million. The U.S. quota was increased to $4,125 million in 1959, to $5,160 million in Feb. 1966, and to $6,700 million in Dec. 1970. Under the Articles of Agreement, subscription payments equal to the quota have been made 25 per cent in gold and 75 per cent in dollars. AUGUST 1971 □ U.S. RESERVE ASSETS; POSITION IN THE IMF A 77 4. U.S. RESERVE ASSETS (In millions of dollars) Gold stock 1 End of year Total 1958... 1959... 1960. . . 1961. . . 19 6 2 ... 19 6 3 ... 1 9 6 4 ... 1 9 6 5 ... Con vertible foreign curren cies Gold stock 1 Reserve position in IM F 3 Total 2 Treasury 22,540 21*504 19*359 20,582 19*507 17*804 20,534 19*456 17*767 18,753 17,220 16,843 16,672 15,450 16,947 16,057 15,596 15,471 613,806 16,889 15,978 15,513 15,388 613,733 212 432 781 1,690 1,064 1,035 769 6 863 14,882 1966. .. 1967. . . 14,830 1968. . . 15,710 1 9 6 9 ... 7 16,964 19 7 0 ... 14,487 13,235 12,065 10,892 11,859 11,072 13,159 11,982 10,367 10,367 10,732 1,321 2,345 3,528 7 2,781 629 326 420 1,290 2,324 1,935 End of month SDR’s 4 1,958 1,997 1,555 116 99 851 Total 2 Treasury Con vertible foreign curren cies5 Total Reserve position in IMF 3 SDR’s 4 1970 July. . . Aug.. ., Sept__ Oct.. . . Nov__ Dec.. . . 16,065 15,796 15,527 15,120 14,891 14,487 11,934 11,817 11,494 11,495 11,478 11,072 11,367 11,367 11,117 11,117 11,117 10,732 716 695 1,098 811 640 629 2,454 2,323 1,944 1,823 1,812 1,935 961 961 991 991 961 851 1971 Ja n .. . . F e b .... Mar__ Apr.. .. May. .. Ju n e ... July.... 14,699 14,534 14,342 14,307 13,811 13,504 13,283 11,040 11,039 10,963 10,925 10,568 10,507 10,453 10,732 10,732 10,732 10,732 10,332 10,332 10,332 491 327 256 257 318 322 250 1,700 1,700 1,680 1,682 1,678 1,428 1,433 1 ,468 1,468 1,443 1,443 1,247 1,247 1,147 5 For holdings of F.R. Banks only, see pp. A-12 and A-13. 6 Reserve position includes, and gold stock excludes, $259 million gold subscription to the IM F in June 1965 for a U.S. quota increase which became effective on Feb. 23, 1966. In figures published by the IM F from June 1965 through Jan. 1966, this gold subscription was included in the U.S. gold stock and excluded from the reserve position. 7 Includes gain of $67 million resulting from revaluation of the German mark in Oct. 1969, of which $13 million represents gain on mark holdings at time of revaluation. 1 Includes (a) gold sold to the United States by the International Mon etary Fund with the right of repurchase, and (b) gold deposited by the IM F to mitigate the impact on the U.S. gold stock of foreign purchases for the purpose of making gold subscriptions to the IMF under quota increases. For corresponding liabilities, see Table 6 . 2 Includes gold in Exchange Stabilization Fund. 3 The United States has the right to purchase foreign currencies equiva lent to its reserve position in the IMF automatically if needed. Under ap propriate conditions the United States could purchase additional amounts equal to the U.S. quota. See Table 5. 4 Includes initial allocation by the IM F of $867 million of Special Draw ing Rights on Jan. 1, 1970, and second allocation of $717 million of SDR’s on Jan. 1, 1971, plus net transactions in SDR’s. N o te . —See Table 23 for gold held under earmark at F.R. Banks for foreign and international accounts. Gold under earmark is not included in the gold stock of the United States. 5. U.S. POSITION IN THE INTERNATIONAL MONETARY FUND (In millions of dollars) IM F holdings of dollars (end of period) Transactions affecting IMF holdings of dollars (during period) U.S. transactions with IM F Transactions by other countries with IMF Period Payments of subscrip tions in dollars 1946—1957............................. 1958—1963............................. 1964—1966............................. 1967......................................... 1968......................................... 1969......................................... 1970......................................... 1970-- July............................... Aug.............................. Sept.............................. Oct............................... Nov.............................. Dec............................... 1971—Jan................................ Feb............................... Mar.............................. Apr............................... M ay............................. June....................... . July............................... For notes see opposite page. 2,063 1,031 776 1,155 Net gold sales by IMF i 600 150 22 6712 Transac tions in foreign curren cies 2 -8 4 20 20 -1 1 4 -806 -1,343 -8 5 4 150 2 1 10 -3 129 104 315 * 1 -1 250 250 -3 * * -3 -2 -1 -5 6 775 2,315 1,744 775 3,090 4,834 28 75 94 1,975 1,035 5326 268 741 -9 4 -8 7 0 -1 ,0 3 4 1,929 4,740 3,870 2,836 4,765 92 75 55 71 420 1,290 2,324 1,935 —104 131 379 2,706 2,837 3,216 3,337 3,348 4,765 52 55 62 65 65 71 2,454 2,323 1,944 1,823 1,812 1,935 5,000 5,000 5,020 5,018 5,022 5,272 5,267 75 75 75 75 75 79 79 1,700 1,700 1,680 1,682 1,678 1,428 1,433 827 2,740 -2 ,6 7 0 - 1,666 —723 19 25 Amount Re purchases in dollars -4 5 60 45 -139 -2 0 -1 6 —34 -9 5 -7 3 -2 3 -1 Per cent of U.S. quota Total change Purchases of dollars 3 1,640 6 132 1,155 IMF net income in dollars U.S. reserve position in IMF (end of period) 4 33 150 253 29 121 11 1 21 1,417 11 235 20 1 20 -2 * 7 1 4 250 -5 A 78 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ AUGUST 1971 6. U.S. LIQUID LIABILITIES TO FOREIGNERS (In millions of dollars) Liabilities to Intl. Monetary Fund arising from gold transactions End of period Liabilities to foreignlcountries Official institutions 3 Total Total 1957........... 715,825 1958........... 716,845 1959 .......... 19,428 200 200 1960 8........ /20,994 \21,027 Gold de posit 1 Gold invest ment 2 Total Short M arket term able liabil U.S. ities re Govt, ported bonds by and banks notes 4 in U.S. 500 10,120 7,917 8,665 9,154 800 800 800 800 11,078 11,088 10,212 10,212 1961 8........ /22,853 \22,936 800 800 800 800 11,830 11,830 1962 8........ f24,068 \24,068 800 800 800 800 1963 8......... /26,361 \26,322 800 800 1QtZA ft (28,951 t 29,002 800 800 Non marketable convert ible U.S. Treas ury bonds and notes Total Short Market term able liabil U.S. ities re Govt, ported bonds by and banks notes 4 in U.S. Total Short Market term able liabil U.S. ities re Govt, ported bonds by and banks notes 4 in U.S. 6 966 7,618 5,724 5,950 7,077 541 1,190 542 552 530 660 866 876 7,591 7,598 7,048 7,048 543 550 1,525 1,541 750 750 775 791 10,940 10,940 890 890 8,275 8,357 7,759 7,841 516 516 1,948 1,949 703 704 1,245 1,245 12,748 12,714 11,997 11,963 751 751 8,359 8,359 7,911 7,911 448 448 2,161 2,195 1,250 1,284 911 911 800 800 14,387 14,353 12,467 12,467 1,217 1,183 703 703 9,214 9,204 8,863 8,863 351 341 1,960 1,965 808 808 1,152 1,157 800 800 15,428 15,424 13,224 13,220 1,125 1,125 1,079 1,079 11,001 10,625 10,680 376 376 1,722 1,722 818 818 904 904 200 200 500 Banks and other foreigners Liabilities to non monetary inti, and regional organizations 5 11,056 29,115 834 34 800 15,372 13,066 1,105 1,201 11,478 11,006 472 1,431 679 752 1Q££ ft /29,904 \29,779 1,011 1,011 211 211 800 800 13,600 13,655 12,484 12,539 860 860 256 256 14,387 14,208 13,859 13,680 528 528 906 905 581 580 325 325 1967 8........ /33,271 \33,119 1,033 1,033 233 233 800 800 15,653 15,646 14,034 14.027 908 908 711 711 15,894 15,763 15,336 15,205 558 558 691 677 487 473 204 204 1lyoo Q/CQ 0y........ /33,828 \33,614 1,030 1,030 230 230 800 800 12,548 12,481 11,318 11,318 529 462 701 701 19,525 19,381 18,916 18,916 609 465 725 722 683 683 42 39 J41,776 U ec. 1u \41,900 1,019 1,019 219 219 800 800 11,992 11,994 11,054 11,056 383 383 555 555 28,106 28,224 27,577 27,695 529 529 659 663 609 613 50 50 1965........... 1969- 1970-May.. Ju n e.. July... Aug... Sept... Oct.. . N o v ... D ec... 43,223 43,380 43,509 44,008 44,216 44,261 44,488 43,277 1,010 1,010 1,010 1,010 210 210 210 210 187 187 179 166 800 800 800 800 400 400 400 400 14,797 15,306 16,602 16,622 17,778 18,131 19,965 20,066 13,986 14,480 15,756 15,776 16,932 17,376 19,210 19,293 382 397 417 417 417 326 326 344 429 429 429 429 429 429 429 429 26,713 26,383 25,139 25,533 25,088 24,730 23,159 21,803 26,212 25,847 24,597 24,971 24,521 24,165 22,573 21,164 501 536 542 562 567 565 586 639 703 681 758 843 763 813 785 842 652 629 705 798 717 768 738 817 51 52 53 45 46 45 47 25 1971—Jan... Feb.. Mar.. Apr.* May* 43,785 44,110 45,531 47,724 51,875 559 559 559 548 548 159 159 159 148 148 400 400 400 400 400 20,500 22,287 24,827 27,293 32,119 19,727 21,509 24,049 26,515 31,318 344 349 349 349 349 429 429 429 429 452 21,675 20,288 19,034 18,615 17,898 20,989 19,604 18,361 17,937 17,254 684 673 678 644 686 1,051 976 1,027 935 971 1,128 1,169 24 41 140 140 141 587 587 579 566 1 Represents liability on gold deposited by the International Monetary Fund to mitigate the impact on the U.S. gold stock of foreign purchases for the purpose of making gold subscriptions to the IMF under quota in creases. 2 U.S. Govt, obligations at cost value and funds awaiting investment obtained from proceeds of sales of gold by the IMF to the United States to acquire income-earning assets. Upon termination of investment, the same quantity of gold can be reacquired by the IMF. 3 Includes Bank for International Settlements and European Fund. 4 Derived by applying reported transactions to benchmark data; breakdown of transactions by type of holder estimated for 1960-63. Includes securities issued by corporations and other agencies of the U.S. Govt, that are guaranteed by the United States. 5 Principally the International Bank for Reconstruction and Develop ment and the Inter-American Development Bank. 6 Includes difference between cost value and face value of securities in IMF gold investment account. Liabilities data reported to the Treasury include the face value of these securities, but in this table the cost value of the securities is included under “Gold investment.” The difference, which amounted to $19 million at the end of 1970, is included in this column. 7 Includes total foreign holdings of U.S. Govt, bonds and notes, for which breakdown by type of holder is not available. 8 Data on the two lines shown for this date differ because of changes in reporting coverage. Figures on the first line are comparable with those 1,111 1,268 1,310 shown for the preceding date; figures on the second line are comparable with those shown for the following date. 9 Data included on the first line for holdings of marketable U.S. Govt, securities are based on a July 31, 1963, benchmark survey of holdings and regular monthly reports of securities transactions (see Table 16). Data in cluded on the second line are based on a benchmark survey as of Nov. 30, 1968, and the monthly transactions reports. For statistical convenience, the new series is introduced as of Dec. 31, 1968, rather than as of the survey date. The difference between the two series is believed to arise from errors in reporting during the period between the two benchmark surveys, from shifts in ownership not involving purchases or sales through U.S. banks and brokers, and from physical transfers of securities to and from abroad. It is not possible to reconcile the two series or to revise figures for earlier dates. 10 Includes $17 million increase in dollar value of foreign currency liabilities resulting from revaluation of the German mark in Oct. 1969. N o te .— Based on Treasury Dept, data and on data reported to the Treasury Dept, by banks and brokers in the United States. Data correspond to statistics following in this section, except for minor rounding differences. Table excludes IMF “holdings of dollars,” and holdings of U.S. Treasury letters of credit and non-negotiable, non-interest-bearing special United States notes held by other international and regional organizations. AUGUST 1971 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 79 7. U.S. LIQUID LIABILITIES TO OFFICIAL INSTITUTIONS OF FOREIGN COUNTRIES, BY AREA (Amounts outstanding; in millions o f dollars) Total foreign countries End o f period Western Europe 1 Canada Latin American republics Asia Africa Other countries 2 1967........... 19683.......... 1969—Dec.. 15,646 12,548 12,481 411,994 9,872 7,009 7,001 5,860 996 533 532 495 1,131 1.354 1.354 1,681 3,145 3.168 3,122 3,190 249 259 248 546 253 225 224 1970—May. June. July. Aug.. Sept.. Oct.. Nov.. Dec.. 14,797 15,306 16,602 16,622 17,778 18,131 19,965 20,066 7,311 8,064 9,569 9,674 11,171 11,589 13,254 13,046 762 500 527 690 620 575 637 662 2,066 2,109 1,987 1,738 1,767 1,646 1,536 3,632 3,571 3,331 3,189 3,254 3,336 3,639 4,060 744 710 691 692 661 526 449 407 282 352 382 390 334 338 340 355 1971—Jan .. Feb.. Mar.. Apr.. May* 20,500 22,287 24,827 27,293 32,119 13,702 15,382 17,149 19,170 22,776 678 727 801 818 865 1,370 1,341 1,218 1,228 1,178 4,046 4.169 5,004 5,291 6,402 381 325 242 257 286 323 343 413 529 612 1 Includes Bank for International Settlements and European Fund. 2 Includes countries in Oceania and Eastern Europe, and Western Euro pean dependencies in Latin America. 3 See note 9 to Table 6 . 4 Includes $17 million increase in dollar value of foreign currency liabilities resulting from revaluation of the German mark in Oct. 1969. 2,102 222 N o te . —Data represent short-term liabilities to the official institutions of foreign countries, as reported by banks in the United States, and foreign official holdings of marketable and convertible nonmarketable U.S. Govt, securities with an original maturity of more than 1 year. 8. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions of dollars) To nonmonetary international and regional organizations 5 To all foreigners Payable in dollars End of period Deposits Total U.S. Treasury bills and Demand Time 2 certifi cates Other short term liab. 3 Total i Payable in foreign cur rencies IMF gold invest ment 4 Deposits Total 1968............ 19698.......... 31,717 [40,040 140,164 31,081 39,611 39,735 14,387 20,430 20,436 5,484 6,834 6,967 6,797 5,015 5,015 4,413 7,332 7,317 636 429 429 800 800 800 683 609 613 1970—June. Ju ly .. Aug.. Sept.. O ct... N ov.. D ec.. 41,756 41,858 42,345 42,570 42,709 42,921 41,674 41,418 41,514 42,008 42,213 42,359 42,578 41,306 18,091 17,220 17,432 17,234 17,041 15,833 15,793 7,278 7,187 7,249 7,248 7,082 6,725 5,897 8,159 9,103 9,845 10,856 11,665 13,651 14,110 7,890 8,004 7,482 6,875 6,571 6,369 5,506 338 344 337 357 350 343 368 800 800 800 400 400 400 400 629 705 798 717 768 738 817 1971—Jan... Feb... M ar.. Apr.. May*, June* 42,143 42,448 43,781 45,980 50,141 46,664 41,765 42,038 43,129 45,343 49,522 46,004 14,751 13,455 11,803 10,409 9,936 10,861 5,694 5,486 5,165 4,952 4,899 4,968 14,440 16,361 18,664 22,317 26,961 22,759 6,880 6,736 7,497 7,665 7,726 7,416 378 410 652 637 619 660 400 400 400 400 400 400 1,027 935 971 1,128 1,169 1,150 For notes see the following page. U.S. Treasury bills and Demand Time 2 certifi cates Other short term liab . 3 68 113 83 83 394 244 244 108 224 223 83 73 69 119 131 137 135 144 137 156 194 218 252 179 188 148 211 232 284 343 330 368 385 381 115 64 73 63 52 64 151 145 165 197 218 219 273 279 242 206 209 164 488 447 491 662 689 703 57 62 66 73 68 68 A 80 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ AUGUST 1971 8. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE— Continued (Amounts outstanding; in millions of dollars) To residents of foreign countries To official institutions6 Payable in dollars End of period Demand Time 2 U.S. Treasury bills and certifi cates 30,234 1968....................... 38,631 1969 8 ..................... /\ 38,751 14,320 20,372 20,373 5,371 6,751 6,884 5,602 3,971 3,971 4,304 7,109 7,094 636 429 429 1970—June............ July............. Aug............. Sept............. Oct.............. Nov............. Dec............. 40,327 40,353 40,747 41,453 41,541 41,783 40,457 18,008 17,147 17,366 17,161 16,972 15,764 15,724 7,158 7,056 7,112 7,113 6,938 6,588 5,741 7,166 8,086 8,793 10,277 11,077 13,103 13,498 7,657 7,720 7,138 6,545 6,204 5,984 5,126 1971—Jan.............. Feb.............. Mar............. Apr............. May*.......... June*.......... 40,716 41,113 42,410 44,452 48,572 45,114 14,635 13,391 11,730 10,346 9,883 10,798 5.543 5,341 5,000 4,754 4,681 4,749 13,768 15,682 18,022 21,711 26,352 22,195 6,393 6,289 7,006 7,003 7,037 6,713 Total Deposits Payable in dollars Payable in foreign cur rencies Other short term liab . 3 Demand Time 2 11,318 11,054 11,056 2,149 1,918 1,919 1,899 2,951 2,951 5,486 3,844 3,844 1,321 2,139 2,140 463 338 344 337 357 350 343 368 14,480 15,756 15,776 16,932 17,376 19,210 19,293 1,421 1,576 1,249 1,369 1,444 1,367 1,629 3,475 3,502 3,612 3,440 3,178 2,851 2,568 7,020 7,946 8,653 10,141 10,919 12,967 13,354 2,416 2,584 2,114 1,834 1,687 1,877 1,594 148 148 148 148 148 148 148 378 410 652 637 619 660 19,727 21,509 24,049 26,515 31,318 26,771 1,729 1,646 1,560 1,612 1,611 1,437 2,503 2,440 2,246 2,204 2,203 2,263 13,609 15,507 17,863 20,119 24,702 20,097 1,738 1,766 1,980 2,180 2,382 2,554 148 150 400 400 9 420 420 To banks 7 Deposits Other short term liab. 3 Total Demand Time 2 U.S. Treasury bills and certifi cates 20 20 Deposits Total Time 2 107 107 362 312 312 173 226 226 1,824 1,812 1,764 1,770 1,796 1,820 1,839 120 116 116 114 127 115 131 380 377 376 376 378 364 334 190 196 189 208 1,845 1,877 1,865 1,890 1,885 1,833 130 148 135 116 131 385 362 356 324 296 285 230 260 253 238 199 240 2,199 1,811 1,934 1,859 1,742 1,735 1,903 1,964 1,917 1,335 26 24 23 23 32 4,862 4,759 4,648 4,335 4,139 3,743 3,197 4,093 3,967 3,943 3,913 3,908 3,950 4,038 1,770 1,662 1,685 1,653 1,607 1,651 1.734 1,194 1,025 889 660 593 653 29 26 24 1,476 1,518 4,271 4,161 4,669 4,499 4,359 3,874 4,048 4,112 4,079 4,131 4,046 3,957 1,689 1.724 1.724 1,801 1.734 1,753 1,273 1,988 1,999 1970—June.. July.. Aug.. Sept.. Oct.. . Nov.. Dec.. 25,847 24,597 24,971 24,521 24,165 22,573 21,164 21,564 20,434 20,839 20,400 20,055 18,428 16,906 14,817 13,909 14,432 14,139 13,921 12,747 12,360 1971—Jan... Feb.. Mar.. Apr.. May* June*’ 20,989 19,604 18,361 17,937 17,254 18,343 16,711 15,232 14,029 13,568 13,009 14,146 11,218 21 14 2,011 1 Data exclude “holdings of dollars” of the International Monetary Fund. 2 Excludes negotiable time certificates of deposit, which are included in “Other.” 3 Principally bankers’ acceptances, commercial paper, and negotiable time certificates of deposit. 4 U.S. Treasury bills and certificates obtained from proceeds of sales of gold by the IMF to the United States to acquire income-earning assets. Upon termination of investment, the same quantity of gold can be re acquired by the IMF. 5 Principally the International Bank for Reconstruction and Develop ment and the Inter-American Development Bank. Includes difference between cost value and face value of securities in IMF gold investment account. 6 Foreign central banks and foreign central govts, and their agencies, and Bank for International Settlements and European Fund. Other short term liab. 3 To banks and other foreigners: payable in foreign cur rencies 86 1,797 1.709 1.710 10,374 16,745 16,744 Demand U.S. Treasury bills and certifi cates 4,444 3,939 4,062 14,299 23,412 23,407 8,447 6,933 6,539 7,608 Deposits Total 2,621 4,658 4,644 18,916 27,577 27,695 10,021 Other short term liab . 3 30 196 8 1969 8 ......... 202 202 To other foreigners Payable in dollars End of period Payable in foreign currencies U.S. Treasury bills and certifi cates Total 86 202 195 220 7 Excludes central banks, which are included in “Official institutions.” s Data on the two lines shown for this date differ because of changes in reporting coverage. Figures on the first line are comparable in coverage with those shown for the preceding date; figures on the second line are comparable with those shown for the following date. 9 Increase in valuation resulting from revaluation of Swiss franc. N o te . —“Short-term” refers to obligations payable on demand or having an original maturity of 1 year or less. For data on long-term liabilities reported by banks, see Table 10. Data exclude the “holdings of dollars” of the International Monetary Fund; these obligations to the IMF consti tute contingent liabilities, since they represent essentially the amount of dollars available for drawings from the IMF by other member countries. Data exclude also U.S. Treasury letters of credit and non-negotiable, noninterest-bearing special U.S. notes held by the Inter-American Develop ment Bank and the International Development Association. AUGUST 1971 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 81 9. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY (End of period. Amounts outstanding; in millions of dollars) Area and country 1970 1969 1971 Sept. Oct. Nov. Dec. Jan. 263 742 193 134 2,311 5,977 1,104 800 315 251 299 378 1,985 34 7,865 31 747 13 43 236 709 187 139 2,417 7,543 198 1,162 748 291 250 234 449 1,914 37 6,659 49 828 13 48 185 596 189 117 2,267 7,520 184 1,317 762 324 274 198 503 1,947 46 5,508 37 594 15 54 204 760 196 117 2,354 7,795 162 1,579 584 317 299 205 519 1,936 53 5,637 36 460 50 273 614 195 137 2,286 5,439 204 909 626 287 275 391 389 2,015 34 9,113 33 850 3 46 Total.................................................. 21,674 24,118 23,694 24,112 Canada.......................................................... 4,012 3,787 4,529 4,213 416 425 400 261 7 849 140 240 533 398 325 282 7 846 172 605 415 359 258 Dec. Europe: Austria...................................................... Belgium-Luxembourg.............................. Denmark.................................................. Finland..................................................... Germany.................................................. Greece...................................................... Italy.......................................................... Netherlands.............................................. Norway..................................................... Portugal.................................................... Sweden...................................................... Turkey...................................................... United Kingdom..................................... Yugoslavia................................................ Other Western Europe1.......................... U.S.S.R..................................................... Other Eastern Europe............................. 314 530 153 120 1,581 1,381 207 627 463 341 309 202 412 2,005 28 11,349 37 1,553 11 Mar. Feb. 198 766 216 194 769 Apr. MayP 191 779 219 115 2,297 10,316 145 1,903 620 403 298 Junep 203 774 175 32 4,778 41 368 63 51 5,210 46 377 9 56 53 45 185 903 148 107 2,227 12,471 146 1,823 661 465 280 231 625 2,310 43 5,155 38 812 9 50 22,637 23,284 23,656 24,605 25,812 28,739 24,549 4,016 3,663 3,624 3,400 3,255 3,136 3,290 508 344 256 231 7 828 163 186 125 672 617 798 92 37 522 291 258 186 829 177 178 125 695 614 675 95 38 824 173 168 119 645 609 631 506 301 259 191 7 861 185 181 504 284 256 169 7 797 173 190 447 313 257 183 107 630 633 1,015 95 33 539 305 265 247 7 820 158 225 117 735 620 745 98 39 517 326 252 215 814 169 213 104 643 619 761 91 37 560 353 327 244 7 876 173 213 108 652 604 806 96 42 49 684 601 957 105 48 5,060 4,918 4,866 4,743 4,582 5,008 4,905 4,960 36 305 236 60 34 298 188 52 34 281 211 6,325 191 340 288 443 674 73 155 6,815 184 347 296 381 601 33 313 245 60 125 8,190 193 349 293 306 585 35 305 255 71 132 8,665 204 330 291 281 558 212 11 220 2,263 8,518 176 1,629 654 313 307 203 541 114 2,344 9,568 140 1,766 741 364 319 184 577 2,011 2,021 112 12 201 631 2,144 25 5,086 33 339 22 110 2,467 7,266 152 1,750 609 506 270 200 681 2,092 21 6,152 33 1,012 9 66 Latin America: Argentina.................................................. Brazil........................................................ Chile.......................................................... Colombia.................................................. Cuba.......................................................... Mexico...................................................... P anam a.................................................... Peru........................................................... Uruguay.................................................... Venezuela.................................................. Other Latin American republics............. Bahamas and Bermuda........................... Netherlands Antilles and Surinam......... Other Latin America............................... 691 576 1,405 80 34 Total.................................................. 5,636 5,295 5,095 36 213 260 41 235 366 53 35 274 426 85 107 4,557 185 279 260 511 680 33 258 302 73 135 5,147 199 297 275 508 708 5,166 193 294 292 489 722 36 322 229 65 128 5,452 178 309 278 469 735 7,936 7,913 8,201 8,954 9,375 10,693 11,127 14 16 7 71 16 469 13 7 71 18 334 17 56 15 278 19 9 74 15 268 15 9 64 14 291 16 9 61 15 285 Asia: China Mainland....................................... Hong Kong.............................................. India.......................................................... Indonesia.................................................. Israel......................................................... Japan........................................................ Korea........................................................ Philippines................................................ Taiwan...................................................... 111 221 6 201 O ther........................................................ 196 628 606 4,149 263 242 228 585 769 38 250 401 50 118 4,274 195 282 247 549 728 86 146 3,809 236 121 121 8 8 101 122 120 112 729 582 940 105 56 6 790 175 200 116 786 582 959 101 46 Total.................................................. 6,417 7,053 7,134 7,401 Africa: Congo (Kinshasa).................................... Morocco................................................... South Africa............................................ U.A.R. (Egypt)......................................... Other......................................................... 87 21 66 23 505 18 14 47 19 677 17 14 53 19 566 55 471 20 83 17 395 Total.................................................. 701 776 668 573 521 580 443 373 384 392 385 Other countries: Australia................................................... All other................................................... 282 29 389 34 390 31 392 33 389 39 376 34 398 46 455 43 576 41 668 757 46 Total.................................................. 311 423 421 425 428 410 444 497 617 708 803 Total foreign countries............................... 38,751 41,453 41,541 41,783 40,457 40,716 41,113 42,410 44,452 48,572 45,114 International and regional: International2 ........................................... Latin American regional......................... Other regional3 ........................................ 1,261 848 145 124 881 175 873 152 113 975 131 1,175 162 90 1,086 156 93 1,099 165 107 1,221 1,245 186 138 1,214 195 141 100 52 112 17 10 11 111 8 173 134 40 Total.................................................. 1,413 1,117 1,168 1,138 1,217 1,427 1,335 1,371 1,528 1,569 1,550 Grand total....................................... 40,164 42,570 42,709 42,921 41,674 42,143 42,448 43,781 45,980 50,141 46,664 For notes see the following page. A 82 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ AUGUST 1971 9. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES BY COUNTRY— Continued (End of period. Amounts outstanding; in millions of dollars) Supplementary data 4 1970 1969 Area or country Other Western Europe: Cyprus..................................... Iceland..................................... Ireland, Rep. o f...................... Other Latin American republics Bolivia..................................... Costa Rica............................... Dominican Republic.............. Ecuador................................... El Salvador............................. Guatemala............................... Haiti......................................... Honduras................................ Jamaica................................... Nicaragua................................ Paraguay................................. Trinidad & Tobago................ Other Latin America: British West Indies................. Other Asia: Afghanistan............................. Burma...................................... Cambodia................................ Ceylon..................................... Iran.......................................... Iraq.......................................... 1971 Apr. Dec. Apr. Dec. Apr. 2 4 20 11 15 10 10 10 65 61 59 62 89 90 18 37 29 78 18 8 25 5 2 5 44 77 9 38 68 52 78 76 69 84 17 29 17 63 13 8 30 16 2 1 3 35 26 10 32 76 43 96 72 79 110 19 29 17 76 17 11 38 7 41 69 41 99 79 75 100 16 34 19 59 16 10 29 59 43 90 72 80 97 19 44 19 47 15 14 2 (5) All other: New Zealand............................. 33 38 26 4 15 3 4 41 4 32 4 50 6 2 11 1 Includes Bank for International Settlements and European Fund. 2 Data exclude “holdings of dollars” of the International Monetary Fund but include IMF gold investment. 1970 Apr. Dec. 4 40 4 82 41 24 17 46 3 83 30 35 25 106 17 4 94 Other Asia—Cont.: Jordan......................................... Kuwait........................................ Laos............................................ Lebanon..................................... Malaysia..................................... Pakistan...................................... Ryukyu Islands (incl. Okinawa) Saudi Arabia.............................. Singapore................................... Syria............................................ Vietnam...................................... Other Africa: Algeria........................................ Ethiopia (incl. Eritrea).............. Ghana......................................... Kenya......................................... Liberia........................................ Libya.......................................... Nigeria........................................ Southern Rhodesia.................... Sudan.......................................... Tanzania..................................... Tunisia........................................ Uganda....................................... Zambia....................................... 15 5 1 1969 Area or country 20 48 40 4 40 6 14 8 20 10 15 34 28 68 10 2 3 23 Apr. Dec. Apr. 30 14 54 5 54 3 36 66 4 82 48 34 26 166 25 6 91 43 23 288 13 33 7 47 41 430 3 11 2 1 11 2 9 19 20 18 7 7 38 20 16 18 2 1971 10 6 5 22 38 18 106 57 7 179 17 19 8 2 60 29 27 ( 5) 41 43 3 161 13 12 6 38 13 195 17 91 ( 5) 22 1 1 9 7 21 2 1 10 6 8 10 5 ( 5) 25 22 3 Asian, African, and European regional organizations, except BIS and European Fund, which are included in “Europe.” 4 Represent a partial breakdown of the amounts shown in the “ other” categories (except “Other Eastern Europe”). 5 Not available. 10. LONG-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES (Amounts outstanding; in millions of dollars) End of period Total To inti. and regional To foreign countries Total Official institu tions Country or area Other Banks1 foreign ers Argen Other Latin tina America Israel Japan Thailand 1967.............................. 1968.............................. 1969.............................. 2,560 3,166 2,490 111 1,863 2,389 1,601 1,807 2,341 1,505 8 55 40 40 41 251 284 64 234 257 175 126 241 41 443 658 655 218 889 1970—Ju n e ................. J u l y .................. Aug................... Sept................... Oct..................... Nov................... Dec.................... 2,127 2,033 1,936 1,916 1,835 1,733 1,696 847 826 838 862 844 814 787 1,280 1,208 1,097 1,054 991 919 909 1,116 1,036 928 883 820 749 695 116 118 118 119 119 118 160 48 54 51 53 52 52 54 25 25 25 25 25 13 13 216 198 145 147 147 143 138 6 7 7 7 7 7 576 523 499 477 466 416 385 28 28 1971—Jan.................... Feb.................... Mar................... Apr.................... May**................. June*................. 1,569 1,462 1,342 1,190 1,146 1,140 717 691 632 585 559 577 852 771 710 605 587 564 635 568 489 406 391 331 157 153 161 142 139 184 60 51 60 57 57 48 13 13 13 13 13 13 144 106 340 316 261 186 182 129 8 1 1 1 1 1 698 15 1 Excludes central banks, which are included with “Official institutions.” 88 92 94 87 6 6 6 6 7 8 8 201 70 22 11 9 8 8 Other Asia All other countries 502 651 472 89 97 124 242 237 204 190 140 138 187 191 194 197 196 193 236 122 107 100 94 84 81 78 233 229 246 220 208 247 AUGUST 1971 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 83 11. ESTIMATED FOREIGN HOLDINGS OF MARKETABLE U.S. GOVERNMENT BONDS AND NOTES (End of period; in millions of dollars) 1970 1969 Area and country Dec. Europe: Denmark............................ France................................ Netherlands....................... June July Aug. Sept. 6 6 2 6 6 2 6 6 2 6 6 2 9 6 2 1971 Oct. 5 6 2 Nov. Dec. 5 Jan. 3 3 6 2 6 2 3 7 6 2 MayP Junep 2 3 7 3 7 3 7 3 7 2 2 37 5 45 511 30 37 5 44 516 30 2 2 United Kingdom............... Other Western Europe. . . . Eastern Europe.................. 37 5 42 407 24 7 37 5 45 396 24 7 37 5 44 401 24 7 37 5 47 411 24 7 37 5 49 423 24 7 37 5 49 424 24 7 37 5 49 447 24 6 6 6 6 6 6 6 T otal............................... 538 529 532 545 560 559 582 632 679 683 675 680 645 650 Canada................................... 272 286 287 294 284 191 190 192 192 191 188 188 189 189 Latin America: Latin American republics.. Neth. Antilles & Surinam. Other Latin America......... 2 12 2 2 12 2 2 12 2 12 2 12 2 12 2 12 2 12 2 12 2 12 2 12 2 12 4 4 2 12 4 4 2 12 3 4 4 T otal........................... 15 15 16 17 Asia: Japan.................................. Other Asia......................... 61 18 61 19 61 19 61 19 Sweden............................... 6 5 4 17 18 61 19 61 19 37 5 49 499 24 37 5 48 546 25 Apr. Mar. Feb. 37 5 49 544 30 37 5 48 537 30 37 5 45 545 30 4 4 4 18 18 18 18 17 17 17 17 61 18 61 38 61 38 61 38 61 38 61 38 61 38 148 38 186 T otal........................... 79 81 81 81 80 80 80 99 99 99 99 99 99 Africa..................................... 7 22 42 42 42 42 42 42 42 42 42 42 42 42 Total foreign countries.......... 912 933 959 979 984 891 912 983 1,030 1,033 1,022 1,027 993 1,084 International and regional: International...................... Latin American regional.. Asian regional................... 32 18 21 * 25 16 25 114 26 114 26 114 27 114 27 T otal........................... 50 52 41 140 140 140 141 Grand total................ 962 985 1,074 1,162 1,167 1,134 1,225 22 23 23 23 24 * 24 53 45 45 46 46 24 25 1,012 1,024 1,008 1,054 30 30 22 22 22 22 1,030 j 936 N o te . —Data represent estimated official and private holdings of marketable U.S. Govt, securities with an original maturity of more than 1 959 year, and are based on a Nov. 30, 1968, benchmark survey of holdings and regular monthly reports of securities transactions (see Table 16). 12. NONMARKETABLE U.S. TREASURY BONDS AND NOTES ISSUED TO OFFICIAL INSTITUTIONS OF FOREIGN COUNTRIES (In millions of dollars or dollar equivalent) Payable in foreign currencies Payable in dollars End of period Total Total 1968, 1969, 3,330 1,692 43,181 1,431 Bel gium Can Den Ger Italy 2 Korea Swe ad a 1 mark many den 32 1,334 32 1,129 20 146 135 15 15 25 Aus tria Ger m any 3 Italy Switz erland 1,051 226 125 311 541 Tai wan Thai land Total 20 20 100 100 1,638 4 1,750 4 1,084 1970—July................ 3,508 2,425 Aug................ 3,508 2,425 Sept................ 3,508 2,425 Oct.................. 3,567 2,484 Nov................. 3,564 2,481 Dec................. 3,563 2,480 32 32 32 32 32 32 2,229 2,229 2,229 2,289 2,289 2,289 29 29 29 28 25 25 15 15 15 15 15 15 20 20 20 20 20 20 100 100 100 100 1.083 1.083 1.083 1.083 1.083 1.083 542 542 542 542 542 542 541 541 541 541 541 541 3,563 3,563 3,563 3,563 53,592 June............... 6,592 July................ 8,592 32 32 32 32 32 32 32 2,289 2,289 2,289 2,289 2,289 2,289 2,289 25 25 25 25 25 25 25 15 15 15 15 15 15 15 20 20 20 20 20 20 20 100 1.083 1.083 1.083 1.083 542 542 542 542 542 542 542 541 541 541 541 5569 569 569 1971-—Jan................. Feb................. Mar................ Apr................. 2,480 2,480 2,480 2,480 2,480 5,480 7,480 3.000 5.000 1 Includes bonds issued in 1964 to the Government of Canada in connec tion with transactions under the Columbia River treaty. Amounts out standing end of 1967 through Oct. 1968, $114 million; Nov. 1968 through Sept. 1969, $84 million; Oct. 1969 through Sept. 1970, $54 million; and Oct. 1970 through latest date, $24 million. 2 Bonds issued to the Government of Italy in connection with mili tary purchases in the United States. 3 In addition, nonmarketable U.S. Treasury notes amounting to $125 million equivalent were issued to a group of German commercial banks in 100 100 100 100 100 100 100 100 M,lll 1,111 1,111 June 1968. The revaluation of the German mark in Oct. 1969 increased the dollar value of these notes by $10 million. 4 Includes an increase in dollar value of $84 million resulting from revaluation of the German mark in Oct. 1969. 5 Increase in valuation resulted from redemption of outstanding Swiss franc securities at old exchange rate and reissue of securities at new ex change rate with same maturity dates, at time of revaluation of Swiss franc. The new issues include some certificates of indebtedness issued to replace notes which were within a year of maturity. A 84 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ AUGUST 1971 13. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY (End of period. Amounts outstanding; in millions of dollars) Area and country 1970 1969 Dec. Europe: Austria...................................................... Belgium-Luxembourg............................. Denmark.................................................. Finland..................................................... France...................................................... Germany.................................................. Greece...................................................... Italy.......................................................... Netherlands.............................................. Norway..................................................... Portugal.................................................... Spain......................................................... Sweden...................................................... Switzerland............................................... Turkey...................................................... United Kingdom..................................... Yugoslavia................................................ Other Western Europe............................. U.S.S.R..................................................... Other Eastern Europe............................. Sept. 7 56 40 68 107 205 22 120 Oct. 4 70 34 63 104 181 28 102 51 34 67 33 8 10 70 67 99 19 408 28 9 59 112 100 6 1 52 97 100 12 49 102 121 22 21 102 171 98 68 65 14 56 100 114 4 513 31 3 410 36 41 70 62 15 59 104 174 5 456 33 9 3 47 102 211 22 108 76 54 15 65 124 130 6 73 54 137 123 356 24 131 85 64 5 58 51 132 108 250 22 120 70 129 163 30 808 36 15 87 67 18 61 135 148 14 532 37 17 50 44 20 1,448 1,487 1,657 1,701 1,849 2,377 1,909 917 1,084 914 941 1,018 972 1,021 1,003 306 316 205 265 14 900 83 132 57 267 285 78 18 303 323 199 267 14 906 94 136 54 284 298 133 14 306 322 189 272 13 934 84 141 55 284 321 105 14 324 322 199 284 13 904 95 147 63 281 340 179 19 317 387 165 303 13 893 105 150 53 242 329 190 318 381 158 294 13 883 104 153 51 230 311 239 312 396 155 299 13 876 109 156 44 227 312 20 22 337 320 184 296 13 951 105 135 51 275 336 157 14 346 360 179 300 13 908 22 326 309 186 288 13 912 82 143 56 276 334 178 19 21 22 21 22 20 22 19 27 3,045 3,062 3,191 3,193 3,193 3,189 3,177 3,155 22 2,947 1 2 46 36 30 108 3,432 158 215 49 41 105 3,370 218 134 82 101 212 46 82 3,331 227 215 81 108 157 Total.................................................. 4,352 4,304 Africa: Congo (Kinshasa).................................... Morocco................................................... South Africa............................................ U.A.R. (Egypt)........................................ O ther........................................................ 3 55 10 12 12 1 1 36 12 54 110 120 160 3,890 196 137 95 109 157 4,262 4,420 4,815 4 100 72 5 4 76 11 86 63 Total.................................................. 162 159 Other countries: Australia................................................... All other................................................... 53 16 60 17 Total.................................................. 69 77 6 2 39 13 56 3,538 197 129 82 97 164 5 72 13 63 6 11 92 74 61 110 111 17 57 54 128 1,487 8 36 10 61 54 5 68 58 123 98 190 53 897 309 317 188 225 14 803 2,802 101 21 4 68 Junep 1,437 826 Total.................................................. 98 4 430 41 66 113 184 26 4 69 46 103 95 142 May p 806 1,454 Asia: China Mainland....................................... Hong Kong.............................................. India.......................................................... Indonesia.................................................. Israel......................................................... Japan........................................................ Korea........................................................ Philippines................................................ Taiwan...................................................... Thailand.................................................... Other........................................................ 110 6 50 40 Apr 1,446 Total.................................................. 68 8 71 37 55 105 184 25 92 57 48 13 54 Mar. Feb. 41 Canada......................................................... 161 48 240 295 93 14 27 5 68 36 56 78 182 27 106 52 40 16 58 123 115 4 378 42 Jan. 3 43 34 Latin America: Argentina.................................................. Brazil........................................................ Chile.......................................................... Colombia.................................................. Cuba.......................................................... Mexico...................................................... Panama..................................................... Peru.......................................................... Uruguay.................................................... Venezuela.................................................. Other Latin American republics............. Bahamas and Bermuda........................... Netherlands Antilles and Surinam......... Other Latin America............................... Dec. Nov. 9 379 35 13 3 45 386 36 7 3 40 2 1971 4 3105 !! 2 22 3,145 1 40 16 49 99 3,675 196 135 11 2 1 100 131 49 243 326 200 15 2 12 3 51 1 2 1 2 211 1 106 167 41 13 49 130 3,480 194 137 113 109 182 211 200 4,585 4,448 4,466 4,389 4,642 4,572 4 6 6 86 103 16 104 6 6 7 5 96 14 110 101 66 97 3,482 60 21 48 110 56 20 34 112 124 119 109 183 3,356 243 128 117 118 187 3,606 246 115 127 114 221 60 19 30 117 3,501 274 125 130 116 72 77 13 79 83 16 78 84 14 85 101 5 5 93 17 103 157 166 180 190 194 213 223 235 232 59 15 59 16 64 16 70 17 105 19 73 18 73 18 81 17 97 17 75 75 80 87 124 91 91 98 114 10,127 10,986 6 12 10 6 7 49 15 8 580 33 6 6 14 Total foreign countries............................... 9,664 9,739 9,872 10,798 10,408 10,557 10,681 10,713 11,550 International and regional.......................... 2 2 1 2 3 2 2 2 2 2 4 Grand total....................................... 9,667 9,741 9,873 10,129 10,801 10,410 10,559 10,683 10,714 11,552 10,989 N o te . —Short-term claims are principally the following items payable on demand or with a contractual maturity of not more than 1 year: loans made to, and acceptances made for, foreigners; drafts drawn against foreigners, where collection is being made by banks and bankers for their own account or for account of their customers in the United States; and foreign currency balances held abroad by banks and bankers and their customers in the United States. Excludes foreign currencies held by U.S. monetary authorities. AUGUST 1971 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 85 14. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions of dollars) Payable in dollars Loans to— End of period Total Total Total 1968.............................. 1QAQ2 Official institu tions Banks1 Others Payable in foreign currencies Collec Accept ances tions made out for stand of acct. for ing eigners Other Total Foreign govt, se Deposits curities, with for coml. eigners and fi nance paper Other 8,711 8,261 3,165 247 1,697 1,221 1,733 2,854 509 450 336 40 73 ( 9,578 9,063 9,151 3,281 3,278 262 262 1,946 1,943 1,073 1,073 1,954 2,015 3,169 3,202 658 656 518 516 352 352 84 89 79 74 10,010 3,287 3,234 3,171 3,056 3,158 3,330 3,966 595 531 557 593 634 683 732 467 421 463 479 515 555 651 314 296 354 366 366 354 393 83 50 40 67 92 69 59 59 74 83 89 166 3,950 3,972 4,026 4,086 4,117 3,935 708 726 721 684 1,042 506 535 564 534 635 562 308 334 365 339 448 371 79 120 19,667 1970—June.................. July................... Aug................... Sept................... Oct..................... Nov................... Dec.................... 9,727 9,521 9,741 9,873 10,129 10,801 9,543 9,306 9,058 9,261 9,358 9,574 10,150 3,316 3,191 2,975 3,231 3,129 3,132 3,038 305 256 178 186 109 95 119 1,932 1,873 1,711 1,936 1,897 1,894 1,709 1,079 1,063 1,087 1,109 1,123 1,143 1,210 2,344 2,350 2,354 2,381 2,438 2,429 2,414 1971—Jan..................... Feb.................... Mar................... Apr.................... May*................. June *7................. 10,410 10,559 10,683 10,714 11,552 10,989 9,903 10,024 10,119 10,181 10,917 10,428 2,850 2,937 2,996 3,091 3,367 3,388 110 88 100 1,561 1,578 1,589 1,731 1,916 1,956 1,178 1,270 1,307 1,253 1,300 1,287 2,396 2,389 2,376 2,320 2,391 2,418 107 150 145 1 Excludes central banks which are included with “Official institutions.” 2 Data on the two lines shown for this date differ because of changes in reporting coverage. Figures on the first line are comparable in coverage 686 66 112 111 102 92 78 102 90 96 103 109 89 with those shown for the preceding date; figures on the second line are comparable with those shown for the following date, 15. LONG-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES (Amounts outstanding; in millions of dollars) Country or area Type Payable in dollars End of period Total Loans to— Total Official institu tions Other Banks 1 foreign ers Other long term claims Payable in foreign curren cies United King dom Other Europe Latin Canada America Japan Other Asia All other countries 1968................. 1969................. 3,567 3,250 3,158 2,806 528 502 237 209 2,393 2,096 394 426 16 18 68 479 411 428 408 1,375 1,329 122 88 617 568 479 378 1970—June. . . . July___ Aug....... Sept...... Oct....... Nov...... Dec....... 3,177 3,127 3,131 3,155 3,229 3,216 3,067 2,788 2,745 2,719 2,750 2,839 2,825 2,691 499 486 470 460 531 515 504 209 215 225 244 256 247 230 2,080 2,044 2,023 2,046 2,053 2,064 1,957 362 354 383 377 359 364 352 27 29 29 28 30 26 25 67 69 64 65 67 425 396 398 395 407 387 411 416 417 411 416 409 398 312 1,341 1,337 1,324 1,357 1,342 1,362 1,318 92 106 108 109 113 115 517 502 515 499 582 583 548 319 307 312 314 312 307 292 1971—Jan........ 2,953 Feb....... 2,948 M ar.. . . 3,035 Apr....... 3,072 M ay*... 3,237 June*... 3,209 2,601 2,634 2,729 2,768 2,926 2,906 485 484 501 504 523 475 208 208 1,909 1,942 2,008 2,046 2,160 2,196 327 289 277 271 279 277 24 26 30 33 32 26 412 420 424 439 498 519 278 266 268 275 277 266 1,272 1,248 1,261 1,262 1,254 1,219 523 521 548 554 548 514 280 295 297 305 345 355 221 218 244 235 1 Excludes central banks, which are included with “Official institutions.’1 67 66 71 70 77 111 117 107 112 100 117 121 125 120 208 225 A 86 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ AUGUST 1971 16. PURCHASES AND SALES BY FOREIGNERS OF LONG-TERM SECURITIES, BY TYPE (In millions of dollars) U.S. corporate securities 2 Marketable U.S. Govt, bonds and notes 1 Foreign bonds Foreign stocks Net purchases or sales Period Total Intl. and regional Pur chases Foreign Total Official 1,552 1,490 2,578 2,422 -1,026 -932 1,519 1,033 2,037 995 -517 38 7,707 7,292 415 832 1,420 -5 8 8 552 754 -2 0 2 858 783 656 1,034 1,187 754 1,321 783 649 514 703 938 609 1,030 76 134 142 331 249 145 291 113 126 143 97 263 380 93 256 87 263 16 -1 3 6 -2 3 7 17 -1 4 7 74 62 60 76 71 65 83 60 58 45 90 15 4 15 -1 4 -5 0 1,242 1,516 1,411 1,383 1,155 999 1,022 220 116 126 176 174 118 425 107 190 241 218 239 -3 0 8 19 -1 4 -6 7 -1 5 71 -79 -39 1971—Jan.-June^ 217 116 101 93 1970—Jun e July.......... Aug.......... Sept.......... Oct........... Nov.......... Dec........... 51 27 13 5 -9 3 23 49 1 50 26 15 35 20 6 21 -2 2 71 46 -1 47 3 1971—Ja..............n Feb........... Mar.......... Apr........... Mayp........ June^....... 5 -3 3 91 110 11,426 21 5 -3 5 -9 4 22 22 17 99 20 88 Net pur chases or sales 2,681 1,582 -2 5 1 Sales 64 15,476 12,795 9,844 -4 46 -8 Net pur Pur Sales chases or chases sales Other 196 9 197 0 11 Net pur Pur Sales chases or chases sales 53 47 -1 1 -2 -1 1 5 -3 4 91 4 -3 4 4 87 1 Excludes nonmarketable U.S. Treasury bonds and notes issued to official institutions of foreign countries; see Table 12. 2 Includes State and local govt, securities, and securities of U.S. Govt, agencies and corporations that are not guaranteed by the United States. 1,411 1,314 1,408 1,123 1,013 105 97 -2 5 32 -1 4 110 109 97 140 121 10 -1 2 3 -1 0 0 -118 90 68 85 117 94 98 120 76 -1 1 86 -3 95 108 -5 -4 1 -3 6 -6 3 -2 6 -3 2 121 179 120 130 Also includes issues of new debt securities sold abroad by U.S. corpora tions organized to finance direct investments abroad. N o te .— Statistics include transactions of international and regional organizations. 17. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE STOCKS, BY COUNTRY (In millions of dollars) Ger France many Other Nether Switzer United land Kingdom Europe lands Period Total 1969..................... 1970..................... 1,487 626 150 58 216 195 189 128 1971—Jan.-June® 71 -4 2 60 58 1970—June......... July.......... Aug.......... Sept.. . . . . Oct........... Nov.......... Dec........... 63 52 104 225 158 98 216 6 16 7 -4 -3 7 39 3 18 18 36 23 13 27 18 16 16 37 13 18 1971- J a n ............ Feb........... Mar.......... Apr........... MayP........ Junep........ 130 -3 2 -2 6 -1 3 -2 3 -2 6 27 28 14 9 11 -1 0 2 8 -1 10 -1 1 8 9 3 * 3 8 13 12 490 -245 -3 3 295 24 9 -7 0 23 13 40 49 -2 3 -1 4 110 -1 11 39 26 -6 -2 7 -4 10 9 20 29 32 3 14 7 -2 3 -1 1 -1 8 -6 -1 9 Total Europe Latin Canada America 1,094 482 125 -9 23 38 -5 7 14 9 41 58 113 154 85 84 137 8 11 6 21 31 11 46 21 -8 -9 -3 -2 4 107 7 -5 9 -2 4 24 -1 7 -1 6 -6 26 31 6 40 11 -3 4 1 -7 -1 7 -1 1 Other Intl. & Africa countries regional Asia 136 47 90 85 25 24 * 15 * -2 3 -9 20 30 1 32 6 -5 18 14 -4 -4 6 4 22 13 * 4 -3 * 9 11 1 7 7 36 -1 -1 * * * -1 * * * * * * -1 * 1 -1 * 1 * * * * * 22 43 * 1 2 2 -1 7 3 -1 11 -1 6 6 * * * * * 7 14 AUGUST 1971 o INTL. CAPITAL TRANSACTIONS OF THE U.S. A 87 18. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE BONDS, BY COUNTRY (In m illions o f d ollars) Period Total France Ger many 1969..................... 1970..................... 1,195 956 97 35 200 1971—Jan.-June*5 345 16 1970—June.......... July.......... Aug.......... 4 4 Oct........... Nov.......... Dec........... 13 82 38 106 91 47 75 1971—Jan............ Feb........... Mar.......... Apr........... Mayp........ June *3........ 89 137 123 -2 3 23 -3 7 3 14 -3 27 3 -1 -1 -1 1 66 69 43 229 45 13 -5 4 23 -1 2 3 -8 68 13 2 6 2 -6 1 2 1 * -6 10 14 25 2 1 * 4 32 128 34 -1 * * 36 -1 -1 -8 1 -1 3 1 8 * -3 3 9 * 15 16 32 7 -3 2 -1 * * * Other Intl. anc Africa countries regional Asia 815 464 169 134 -1 Latin Canada America 83 91 14 37 -3 25 * Total Europe 251 118 48 -6 -2 -1 1 -1 2 2 Other Nether Switzer United land Kingdom Europe lands 28 2 21 32 7 11 -4 -1 N o te . —Statistics include State and local govt, securities, and securities of U.S. Govt, agencies and corporations that are not guaranteed by 8 1 2 -4 31 43 13 61 43 4 18 * 39 5 5 -6 * 12 85 92 19 28 -7 6 21 16 14 17 1 28 -4 11 -2 -4 1 6 * 4 3 11 2 28 10 1 * 1 6 3 3 * 1 3 -6 -1 -3 -1 1 10 -1 2 336 324 * -1 6 79 * * * * * * * -6 -1 -2 1 21 -2 64 29 13 * * * * * * 3 * * 1 8 * 52 65 -1 2 * * 11 -3 9 -2 -2 -6 -3 the United States. Also includes issues of new debt securities sold abroad by U.S. corporations organized to finance direct investments abroad. 19. NET PURCHASES OR SALES BY FOREIGNERS OF LONG-TERM FOREIGN SECURITIES, BY AREA 20. FOREIGN CREDIT AND DEBIT BALANCES IN BROKERAGE ACCOUNTS (In millions of dollars) (Amounts outstanding; in millions of dollars) Period Total Total for Intl. and eign re coun gional tries 1969.......................... -1 ,5 4 4 1970.......................... -8 9 4 -2 5 4 -641 1971—Jan.-JuneP... -7 9 0 -219 -571 1970—June ............. Ju ly .............. Aug............... Sept............... 5 25 -9 4 -3 8 -6 4 -1 5 8 3 16 -1 3 -1 9 7 -9 1 -1 0 6 -1 3 -4 -1 2 5 4 -1 2 9 Nov............... Dec................ 1971—Jan................. Feb................ Mar............... Apr................ Mayp ............ June 25............ 66 -1,610 30 -1 3 2 -2 2 2 -3 1 3 -2 1 -5 0 -1 2 9 -1 2 6 -1 5 0 -1 9 7 -4 -117 -1 7 11 -61 -8 3 -4 6 4 -1 3 0 13 -163 Eu rope Latin Can Amer Asia ada ica 74 -1,128 50 -569 -5 4 -233 1 39 9 -7 8 4 -127 22 5 -3 3 -51 15 -1 0 -2 2 -7 4 2 -2 1 6 -3 4 -4 -3 -8 2 27 -3 4 29 -6 2 -1 1 1 -1 1 -9 8 -471 -125 -5 -306 -1 -1 5 -2 -2 7 -9 -3 1 -2 3 56 -3 0 3 -5 -1 0 4 11 -2 -1 3 5 Af rica -6 -6 5 Credit balances (due to foreigners) Debit balances (due from foreigners) 1967...................................... 311 636 298 508 1 553 566 467 434 393 397 297 278 1 2 2 1 368 334 291 349 220 511 314 20 20 21 * -1 2 -1 2 -2 9 -2 9 -4 4 -7 9 -5 2 -7 2 End of period Other coun tries -1 -1 —1 6 4 2 1 1 1 2 14 1971—Mar. * ........................ 182 203 279 N o te . —Data represent the money credit balances and money debit balances appearing on the books of reporting brokers and dealers in the United States, in accounts of foreigners with them, and in their accounts carried by foreigners. A 88 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ AUGUST 1971 21. LIABILITIES OF U.S. BANKS TO THEIR FOREIGN BRANCHES AND FOREIGN BRANCH HOLDINGS OF SPECIAL U.S. GOVT. SECURITIES 22. MATURITY OF EURO DOLLAR DEPOSITS IN FOREIGN BRANCHES OF U.S. BANKS (Amounts outstanding; in millions of dollars) (End of m onth; in billions of dollars) Wednesday Wednesday 1966 Mar. June Sept. Dec. 30................. ..... 1,879 29................. ..... 1,951 28................. ..... 3,472 28................. ..... 4,036 1967 Mar. June Sept. Dec. 29................. .....3,412 28................. 3,166 27................. .....4,059 27................. .....4,241 1968 Mar. 27................. ..... 4,920 June 26....................... 6,202 Sept. 25................. ..... 7,104 Dec. 31 (1/1/69)... 6,039 1969 Mar. 26................. June 25 .................. Sept. 24................. Dec. 31.................. 9,621 13,269 14,349 12,805 Amount 1970 28................ 25................ 25................ 29............... 27............... 24................ 29................ 26............... 30............... 28................ 4................ 11................ 18................ 25................ Dec. 2................ 9................ 1 6 2 3 30................ 1971 Jan. 6 ................ 13................ 20................ 27............... Feb. 3................ 10................ 1 7 2 4 Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Wednesday 1971 —Continued 13,605 13,086 11,885 11,944 12,346 12,172 10,469 10,629 9,663 9,297 9,024 8,892 8,766 8,435 8,252 8,215 8,305 7,902 7,676 7,424 7,863 7,823 7,536 7,432 7,233 6,872 6,666 Mar. 3............... 10............... 17............... 24............... 31............... 6,516 6,306 5,680 5,838 4,358 Apr. 7............... 14............... 21............... 28............... 4,759 5,318 5,252 5,166 May 5............... 12............... 19................ 26............... 5,012 4,606 4,636 4,587 June 2............... 9............... 16............... 23............... 30............... 4,885 4,946 5,331 5,331 4,520 7............... 14............... 21............... 28............... 5,191 4,776 4,926 4,647 July 1971 Maturity of liability Mar. Apr. May 1.62 1.96 1.52 2.32 1.47 10.03 3.70 3.52 2.08 1.57 1.32 .26 8.24 5.22 4.21 1.80 1.47 1.57 .32 .38 .27 .25 .28 .32 9.26 5.07 3.08 1.59 1.56 1.67 .43 .30 .23 .26 .35 .23 .70 .73 .72 Overnight.......................... Call................................... Other liabilities, maturing in following calendar months after report date: 2 nd............................. 3rd.............................. 4th.............................. 5th.............................. 6 th.............................. 7th.............................. 8th.............................. 9th.............................. 10th.............................. 11th.............................. 12th.............................. Maturities of more than 1 year............................... .22 .30 .33 .20 .20 1.88 28.01 28.91 28.10 N o te .— Includes interest-bearing U.S. dollar deposits and direct borrowings of all branches in the Bahamas and of all other foreign branches for which such deposits and direct borrowings amount to $50 million or more. Details may not add to totals due to rounding. N o te . —The data represent gross liabilities of reporting banks to their branches in foreign countries and U. S. Treasury Certificates Eurodollar Series and special Export-Import Bank securities held by foreign branches as follows: $1,000 million, Jan. 27, 1971-Feb. 24; $1,500 million, Mar. 3-Apr. 7; $3,008 million, Apr. 14-July 7; $3,047 million, July 14 and 21; and $3,150 million, July 28. Beginning July 28 all of the securities held are U. S. Treasury Certificates Eurodollar Series. 24. SHORT-TERM LIQUID CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS 23. DEPOSITS, U.S. GOVT. SECURITIES, AND GOLD HELD AT F.R. BANKS FOR FOREIGN OFFICIAL ACCOUNT (Amounts outstanding; in millions of dollars) (In millions of dollars) End of period Payable in Payable in dollars foreign currencies Assets in custody Deposits U.S. Govt. securities1 Earmarked gold 9,120 1968.............. 1969.............. 216 134 7,030 13,066 12,311 1970—July ... A ug... Sept... O ct.... N o v ... D e c ... 199 173 136 142 136 148 11,803 12,489 13,983 14,458 16,196 16,226 12,217 12,283 12,611 12,617 12,644 12,926 1971—J a n .... Feb. .. M ar... A p r... May. . June.. July... 129 147 16,206 18,033 20,534 22,879 28,126 26,544 28,574 12,958 12,981 13,057 13,095 13,447 13,509 13,559 201 162 208 199 162 1 Marketable U.S. Treasury bills, certificates of in debtedness, notes, and bonds and nonmarketable U.S. Treasury securities payable in dollars and in foreign currencies. N o te . —Excludes deposits and U.S. Govt, securities held for international and regional organizations. Ear marked gold is gold held for foreign and international accounts and is not included in the gold stock of the United States. End of period Total United King dom Canada 979 610 663 280 469 519 837 754 752 662 121 641 628 363 331 359 309 297 382 440 472 417 114 141 143 136 168 511 539 706 687 626 363 401 377 390 434 Short Short term Deposits term Deposits invest invest ments 1 ments 1 1,638 /1,319 11,454 1,219 952 1,025 87 116 161 272 174 183 60 76 1970—May....... June........ July........ Aug......... Sept......... Oct.......... Nov........ Dec.r ___ 1,459 1,476 1,423 1,276 1,375 1,418 1,436 1,046 1,011 200 138 148 159 151 177 177 175 173 109 1971—Jan,r . . .. Feb.r . . . . M ar.r__ Apr.r . . . . M ay....... 1,212 1968................... 1Q£Q7 1,271 1,450 1,468 1,543 889 905 924 619 174 181 164 183 177 171 133 795 786 983 967 934 124 152 147 163 147 1,041 1,009 868 180 193 177 202 295 86 112 74 94 126 159 166 668 1 Negotiable and other readily transferable foreign obligations payable on demand or having a contractual maturity of not more than 1 year from the date on which the obligation was incurred by the foreigner. 2 Data on the two lines for this date differ because of changes in reporting coverage. Figures on the first line are comparable in coverage with those shown for the preceding date; figures on the second line are comparable with those shown for the following date. N o te . —Data represent the liquid assets abroad of large nonbanking concerns in the United States. They are a portion of the total claims on foreigners reported by nonbanking concerns in the United States and are included in the figures shown in Tables 25 and 26. AUGUST 1971 a INTL. CAPITAL TRANSACTIONS OF THE U.S. A 89 25. SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS (End of period. Amounts outstanding; in millions of dollars) Liabilities to foreigners Area and country Claims on foreigners 1970 1970 1971 1971 Mar.P Mar. June Sept. 10 48 35 183 3 641 1 21 5 8 46 2 2 127 139 4 77 128 5 13 24 34 159 4 787 2 11 4 11 47 9 2 112 122 4 71 115 4 14 27 28 122 3 694 1 1 4 7 60 17 8 155 172 19 169 72 12 14 78 27 47 12 1,198 19 11 17 8 58 17 8 176 174 27 173 72 13 18 72 27 37 11 1,081 15 12 20 9 54 16 13 154 192 28 160 62 13 14 73 25 45 13 1,010 17 9 24 10 47 17 11 150 209 28 163 62 16 15 81 40 47 8 689 17 9 24 10 49 16 8 159 191 34 175 65 15 13 93 53 38 17 1,020 16 12 16 1,509 1,532 1,573 1,392 2,111 2,020 1,932 1,643 1,997 204 213 215 199 635 683 696 751 709 11 13 8 6 * 24 8 10 5 13 27 46 4 5 15 14 9 5 * 21 5 6 5 19 28 57 38 6 10 17 11 6 * 28 5 6 5 14 35 89 24 5 11 19 11 6 * 22 5 4 4 18 37 144 23 6 14 15 13 6 * 20 6 4 4 17 29 130 5 5 55 97 42 36 1 143 19 34 8 69 92 84 7 25 62 100 37 37 1 135 19 37 6 65 102 159 8 19 61 107 42 37 1 149 18 29 5 72 97 139 10 23 61 120 48 37 1 156 18 36 6 68 100 121 9 29 65 105 40 36 1 143 21 35 7 70 96 210 8 21 178 229 255 310 268 713 786 790 809 858 7 27 5 15 132 1 6 4 3 26 ; 7 37 7 17 114 2 8 i 41 i 7 21 135 1 7 8 4 47 9 38 9 24 144 1 7 9 4 50 8 25 5 28 165 11 7 10 4 59 14 36 11 34 297 27 32 23 15 113 17 41 17 23 311 50 33 29 15 125 19 42 14 21 314 29 32 27 13 145 17 34 21 23 323 42 30 33 11 145 19 39 20 24 348 48 30 32 12 155 T otal.............................. 227 227 282 296 323 602 662 657 678 727 Africa: Congo (Kinshasa)................ South Africa......................... U.A.R. (Egypt)..................... Other Africa......................... 3 19 1 33 14 19 2 37 15 U2 51 2 34 1 40 2 31 2 19 4 28 9 47 5 ' 35 :: 10 j 49 4 29 11 48 3 30 9 50 5 32 10 53 Total.............................. 56 72 90 78 54 87 99 92 92 100 Other countries: Australia............................... All other............................... 65 6 70 6 75 5 75 7 81 8 65 13 85 14 71 15 80 15 86 13 71 * 76 * 80 * 82 * 89 78 100 86 94 99 * 1 2 1 1 3 2,317 2,453 2,325 4,227 4,350 4,253 4,068 4,492 Mar. June 3 72 3 1 127 193 3 83 110 5 6 55 29 157 2 556 2 19 2 4 71 3 1 156 164 3 85 116 5 5 47 31 157 2 635 1 21 3 1,428 204 Latin America: Argentina.............................. Brazil...................................... Chile....................................... Colombia............................... Cuba....................................... Mexico................................... Panama................................. P eru....................................... Uruguay................................ Venezuela.............................. Other L.A. republics............ Bahamas and Bermuda........ Neth. Antilles and Surinam. Other Latin America............ Total.............................. Europe: Germany, Fed, Rep. of....... Greece................................... Other Western E urope........ Eastern Europe..................... Asia: Hong Kong........................... India...................................... Indonesia............................... Israel..................................... Japan..................................... Philippines............................. Taiwan................................... Other Asia............................. Total.............................. International and regional. . .. Grand total................... 2,166 7 4 3 28 Sept. Dec. 6 66 3 1 141 166 3 70 121 ! 1 ! i : 1 2,555 N o te . —Reported by exporters, importers, and industrial and commercial concerns and other nonbanking institutions in the United States. Dec. Mar.p Data exclude claims held through U.S. banks, and intercompany accounts between U.S. companies and their foreign affiliates. A 90 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ AUGUST 1971 26. SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS, BY TYPE (Amounts outstanding; in millions of dollars) Liabilities End of period Total Payable in dollars Claims Payable in foreign currencies Payable in foreign currencies Payable in dollars Total Deposits with banks abroad in reporter’s name Other 1,148 1967—Mar..................... June..................... 1,203 1,353 Sept..................... Dec...................... ( 1,371 Dec. 1................... 1 1,386 864 916 1,029 1,027 1,039 285 287 324 343 347 2,689 2,585 2,555 2,946 3,011 2,245 1,358 1,473 1,678 1,608 991 1,056 1,271 1,225 367 417 407 382 3,369 3,855 3,907 3,783 2,936 3,415 3,292 3,173 211 210 222 1,576 1969—Mar..................... 1,613 June..................... 1,797 Sept...................... Dec...................... ( 1,786 Dec . 1 .................. \ 2,063 1,185 1,263 1,450 1,399 1,627 391 350 346 387 435 4,014 4,023 3,874 3,710 4,117 3,329 3,316 3,222 3,124 3,494 358 429 386 244 327 278 267 365 379 1970—Mar...................... Ju n e .................... Sept...................... Dec....................... 2,166 2,317 2,453 2,555 1,687 1,801 1,928 2,123 479 516 525 433 4,227 4,350 4,253 4,068 3,695 3,765 3,653 3,485 219 234 297 234 313 351 303 349 1971—Mar...................... 2,325 1,908 417 4,492 3,885 230 377 1968—Mar..................... June..................... Sept..................... Dec...................... 192 199 192 2,110 2,116 2,529 2,599 252 275 246 216 209 201 203 229 193 241 422 368 221 1 Data differ from that shown for Dec. in line above because of changes in reporting coverage. 27. LONG-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS (Amounts outstanding; in millions of dollars) Claims End of period Total liabilities 1967—Mar........................ June....................... Sept........................ Dec........................ ( Dec. i ..................... \ Country or area Total United Kingdom Other Europe Canada Brazil Mexico Other Latin America Japan Other Asia 108 Africa All other 454 430 411 414 428 1,324 1,488 1,452 1,537 1,570 31 27 40 43 43 232 257 58 257 263 283 303 309 311 322 203 214 212 212 212 212 84 85 91 290 283 278 274 109 128 128 98 98 103 117 132 84 85 87 89 89 17 15 13 16 16 582 747 767 1,129 1,536 1,568 1,625 1,790 41 32 43 147 265 288 313 306 330 345 376 419 206 205 198 194 61 67 62 73 256 251 251 230 128 129 126 128 145 134 142 171 84 83 82 83 21 1969—Mar........................ 1,285 June....................... 1,325 Sept........................ 1,418 Dec........................ ( 1,725 Dec. i ..................... \ 2,246 1,872 1,952 1,965 2,215 2,332 175 168 167 152 152 342 368 369 433 443 432 447 465 496 537 194 195 179 172 174 75 76 70 73 77 216 213 388 417 222 126 142 143 141 142 191 229 246 249 269 72 72 71 69 75 43 40 42 42 46 1970—Mar........................ June....................... Sept........................ Dec........................ 2,307 2,561 2,746 3,085 2,714 2,727 2,856 2,907 159 161 157 146 735 712 720 708 549 557 597 645 178 175 177 181 74 65 63 60 455 475 584 603 158 166 144 140 286 286 283 290 71 76 73 71 47 54 58 64 1971—Mar........................ 3,130 2,940 154 688 646 179 63 600 161 299 78 72 1968—Mar........................ June....................... Sept........................ Dec......................... 1 Data differ from that shown for Dec. in line above because of changes in reporting coverage. 88 210 110 33 32 38 AUGUST 1971 □ MONEY RATES A 91 FOREIGN EXCHANGE RATES (In cents per unit of foreign currency) Period Argentina (peso) .48690 1966............................................................. .30545 1967............................................................. .28473 1968............................................................. .28492 1969............................................................. 1970............................................................. 326.589 1Q70—Tnlv.................................................. 1971- F eb................................................... July.................................................. Australia (pound) (dollar) 223.41 1111.22 111.25 111.25 111.10 111.36 Austria (schilling) Belgium (franc) Canada (dollar) Ceylon (rupee) Denmark (krone) Finland (markka) 3.8686 3.8688 3.8675 3.8654 3.8659 2.0067 2.0125 2.0026 1.9942 2.0139 92.811 92.689 92.801 92.855 95.802 20.946 20.501 16.678 16.741 16.774 14.475 14.325 13.362 13.299 13.334 31.061 229.553 23.761 23.774 23.742 2.0146 2.0145 2.0145 2.0146 2.0147 2.0137 496.872 97.890 98.422 97.890 98.014 98.276 16.770 16.770 16.770 16.775 16.792 16.792 13.330 13.329 13.331 13.331 13.336 13.354 23.748 23.748 23.748 23.736 23.722 23.722 24.934 24.936 24.888 24.874 24.864 24.836 111.12 111.11 111.12 3.8670 3.8638 3.8684 3.8698 3.8676 3.8681 24.829 24.831 24.835 24.673 24.156 23.602 22.642 111.82 112.38 112.42 112.38 112.42 112.43 112.42 3.8665 3.8651 3.8670 3.8696 5 3.9676 4.0021 4.0040 2.0145 2.0148 2.0145 2.0144 2.0164 2.0109 2.0133 98.831 99.261 99.367 99.237 99.138 97.913 97.912 16.792 16.792 16.792 16.792 16.792 16.792 16.792 13.361 13.359 13.368 13.353 13.334 13.342 13.334 23.722 23.722 23.722 23.727 23.735 23.735 23.735 India (rupee) Ireland (pound) Italy (lira) Japan (yen) Malaysia (dollar) Mexico (peso) Neth erlands (guilder) 110.99 110.87 110.97 Period France (franc) Germany (Deutsche mark) 1966............................................................. 1967............................................................. 1968............................................................. 1969............................................................. 1970............................................................. 20.352 20.323 20.191 719.302 18.087 25.007 25.084 25.048 8 25.491 27.424 6 16.596 13.255 13.269 13.230 13.233 279.30 275.04 239.35 239.01 239.59 .16014 .16022 .16042 .15940 .15945 .27598 .27613 .27735 .27903 .27921 32.538 32.519 32.591 32.623 32.396 8.0056 8.0056 8.0056 8.0056 8.0056 27.630 27.759 27.626 27.592 27.651 1970—Tnlv.................................................. 18.120 18.109 18.112 18.104 18.120 18.107 27.537 27.537 27.537 27.531 27.544 27.437 13.219 13.212 13.211 13.217 13.231 13.229 239.06 238.77 238.53 238.74 239.03 239.06 .15893 .15928 .16005 .16052 .16064 .16039 .27826 .27915 .27935 .27948 .27956 .27959 32.308 32.287 32.314 32.395 32.402 32.382 8.0056 8.0056 8.0056 8.0056 8.0056 8.0056 27.694 27.775 27.785 27.781 27.793 27.763 1971- 18.119 18.122 18.129 18.126 18.094 18.092 18.136 27.496 27.594 27.538 27.516 928.144 28.474 28.728 13.269 13.311 13.304 13.315 13.330 13.346 13.347 240.58 241.78 241.87 241.74 241.87 241.87 241.85 .16045 .16036 .16063 .16070 .16059 .16009 .16048 .27932 .27969 .27971 .27972 .27979 .27979 .27980 32.515 32.615 32.616 32.604 32.642 32.720 32.733 8.0056 8.0056 8 .0056 8.0056 8.0056 8.0056 8.0056 27.820 27.814 27.816 27.776 9 28.135 28.065 28.097 Norway (krone) Portugal (escudo) South Africa (rand) Spain (peseta) Sweden (krona) Switz erland (franc) United King dom (pound) 13.984 13.985 14.000 13.997 13.992 3.4825 3.4784 3.4864 3.5013 3.4978 139.13 139.09 139.10 138.90 139.24 1.6651 1.6383 1.4272 1.4266 1.4280 19.358 19.373 19.349 19.342 19.282 23.114 23.104 23.169 23.186 23.199 279.30 275.04 239.35 239.01 239.59 110.98 111 .08 111. 22 111.23 13.951 13.998 13.994 13.993 13.996 14.021 3.4913 3.4898 3.4886 3.4893 3.4924 3.4919 138.93 138.76 138.62 138.74 138.91 138.93 1.4290 1.4290 1.4287 1.4290 1.4290 1.4290 19.282 19.306 19.225 19.282 19.324 19.340 23.235 23.247 23.219 23.090 23.155 23.187 239.06 238.77 238.53 238.74 239.03 239.06 111.94 112.50 112.54 112.50 112.54 112.55 112.53 14.003 14.001 14.010 14.028 13.556 14.062 14.073 3.5000 3.5031 3.5019 3.5000 3.5013 3.5027 3.5016 139.81 140.51 140.56 140.51 140.56 140.57 140.55 1.4290 1.4290 1.4290 1.4291 1.4291 1.4290 1.4292 19.365 19.332 19.369 19.368 19.357 19.370 19.371 23.227 23.266 23.254 23.263 H24.253 24.409 24.423 240.58 241.78 241.87 241.79 241.87 241.87 241.85 F eb................................................... May.................................................. June.................................................. July.................................................. New Zealand Period (pound) 1966............................................................. 1967............................................................. 1968............................................................. 1969............................................................. 1970............................................................. 1970—Tnlv.................................................. 276.54 276.69 (dollar) 10131.97 111.37 111.21 111.48 111.23 111.10 1971- Feb................................................... Mar................................................... Apr................................................... May.................................................. June.................................................. July.................................................. 1 Effective Feb. 14, 1966, Australia adopted the decimal currency system. The new unit, the dollar, replaces the pound and consists of 100 cents, equivalent to 10 shillings or one-half the former pound. 2 Effective Oct. 12, 1967, the Finnish markka was devalued from 3.2 to 4.2 markkaa per U.S. dollar. 3 A new Argentine peso, equal to 100 old pesos, was introduced on Jan. 1, 1970. In five steps the peso was devalued to 4.70 per U.S. dollar effective July 30, 1971. 4 On June 1, 1970, the Canadian Government announced that, for the time being, Canada will not maintain the exchange rate of the Canadian dollar within the margins required by IMF rules. 5 Effective May 9, 1971, the Austrian schilling was revalued to 24.75 per U.S. dollar. 6 Effective June 6, 1966, the Indian rupee was devalued from 4.76 to 7.5 rupees per U.S. dollar. 7 Effective Aug. 10, 1969, the French franc was devalued from 4.94 to 5.55 francs per U.S. dollar. 8 Effective Oct. 26, 1969, the new par value of the German mark was set at 3.66 per U.S. dollar. 9 Effective May 10, 1971, the German mark and Netherlands guilder have been floated. 10 Effective July 10,1967, New Zealand adopted the decimal currency system. The new unit, the dollar, replaces the pound and consists of 100 cents, equivalent to 10 shillings or one-half the former pound. 11 Effective May 10, 1971, the Swiss franc was revalued to 4.08 per U.S. dollar. N o te . —After the devaluation of the pound sterling on Nov. 18, 1967, the following countries devalued their currency in relation to the U.S. dollar: Ceylon, Denmark, Ireland, New Zealand, and Spain. Averages of certified noon buying rates in New York for cable transfers. For description of rates and back data, see “International Finance,” Section 15 of Supplement to Banking and Monetary Statistics , 1962. A 92 MONEY RATES □ AUGUST 1971 CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS (Per cent per annum) Country Per cent Argentina.......................... Austria............................... Belgium............................. Brazil................................. Burma................................ Canada.............................. Ceylon............................... Chile.................................. Colombia........................... Costa Rica........................ Denmark........................... Ecuador............................. El Salvador....................... Finland.............................. France............................... Germany, Fed. Rep. o f... G hana............................... Greece............................... Honduras.......................... Iceland............................... India.................................. Indonesia........................... Iran.................................... Ireland............................... Israel.................................. Italy................................... Jamaica............................. Japan................................. Korea................................. Mexico............................... Netherlands....................... New Zealand..................... Nicaragua......................... Norway............................. Pakistan............................. Peru................................... Philippine Republic.......... Portugal............................. South Africa..................... Spain................................. Changes during the last 12 months Rate as of July 31, 1970 6 .0 5.0 7.5 2 0 .0 4.0 7.0 5.5 14.0 8.0 4.0 9.0 8 .0 4.0 7.0 8 .0 7.0 5.5 6 .0 3.0 9.0 5.0 6 .0 8 .0 7.31 6 .0 5.5 6 .0 6.25 24.0 4.5 6 .0 7.0 6 .0 4.5 5.0 9.5 3.5 5.5 6.5 7.0 3.75 Month effective Dec. Jan. Sept. July Feb. 1970 Aug. 1957 1970 1969 1969 1962 May Jan. Aug. Apr. Oct. 1969 1970 1964 1962 1969 July Mar. July Jan. Jan. 1970 1968 1969 1962 1966 Mar. May Aug. May Feb. 1968 1969 1969 1970 1955 Mar. May Sept. Apr. June 1970 1969 1969 1970 1942 Aug. Mar. Apr. Sept. June 1969 1961 1954 1969 1965 Nov. June Apr. Aug. Mar. 1959 1969 1970 1968 1970 1969 1969 1969 1959 1966 1961 1962 1970 1969 1970 10.8 5.0 5.0 July Sept. May Oct. Sept. Turkey............................... United Arab Rep. (Egypt) United Kingdom.............. Venezuela.......................... Vietnam............................. 7.5 5.0 7.0 5.5 7.0 May May Apr. June Mar. Oct. Dec. Jan. Feb. Mar. Apr. May June July Rate as of July 31, 1971 6 .0 5.0 6.5 6 .0 6 .0 20.0 4.0 6.5 5.25 6 .0 5.25 5.5 14.0 8 .0 4.0 8.0 7.0 7.5 7.5 7.5 8.50 6.5 6.5 6 .0 8.0 6.75 4.0 8.50 6.75 5.0 5.0 5.5 6 .0 3.0 9.0 6 .0 6 .0 6.0 8.0 6.0 7.31 6 .0 6 .0 23.0 5.0 5.5 5.75 5.25 5.5 20.0 5.5 5.0 5.5 5.25 20.0 4.5 5.5 7.0 6 .0 4.5 5.0 9.5 10.0 3.75 6.25 10.0 6.5 6.5 9.8 18.0 3.75 6.5 6.0 6.0 6.0 6.0 5.0 9.0 9.25 3.75 9.25 5.0 9.0 5.0 5.0 N o te . —Rates shown are mainly those at which the central bank either discounts or makes advances against eligible commercial paper and/or govt, securities for commercial banks or brokers. For countries with more than one rate applicable to such discounts or advances, the rate shown is the one at which it is understood the central bank transacts the largest proportion of its credit operations. Other rates for some of these countries follow: Argentina—3 and 5 per cent for certain rural and industrial paper, de pending on type of transaction; Brazil —8 per cent for secured paper and 4 per cent for certain agricultural paper; Chile —1 per cent for loans to consumer cooperatives and to handicraft and small- and medium-sized industries; 6 per cent for industrial trans formation loans; 8 per cent for preshipment loans, agricultural paper and loans to firms following prescribed policies; 17 per cent for construc tion paper beyond a basic rediscount period, personal loans, special rediscounts, and cash position loans; and 18 per cent for selective redis counts. A fluctuating rate applies to paper covering the acquisition of capital goods. Colombia —5 per cent for warehouse receipts covering approved lists of products, 6 and 7 per cent for agricultural bonds, and 12 and 18 per cent for rediscounts in excess of an individual bank’s quota; Costa Rica —5 per cent for paper related to commercial transactions (rate shown is for agricultural and industrial paper); Nov. 7.0 May 1968 July 1969 May 1963 Sweden.............................. Switzerland....................... Taiwan.............................. Thailand........................... Tunisia.............................. Sept. 1971 6 .0 6 .0 5.0 18.0 Ecuador —5 per cent for special advances and for bank acceptances for agricultural purposes, 7 per cent for bank acceptances for industrial purposes, and 10 per cent for advances to cover shortages in legal reserves; Honduras—Rate shown is for advances only. Indonesia—Various rates depending on type of paper, collateral, com modity involved, etc.; Japan—Penalty rates (exceeding the basic rate shown) for borrowings from the central bank in excess of an individual bank’s quota; Peru—3.5, 5, and 7 per cent for small credits to agricultural or fish produc tion, import substitution industries and manufacture of exports; 8 per cent for other agricultural, industrial and mining paper; Philippines—6 per cent for financing the production, importation, and dis tribution of rice and corn and 7.75 per cent for credits to enterprises en gaged in export activities. Preferential rates are also granted on credits to rural banks; and Venezuela—2 per cent for rediscounts of certain agriculture paper, 4l/i per cent for advances against government bonds, and 5% per cent for rediscounts of certain industrial paper and on advances against promissory notes or securities of first-class Venezuelan companies. Vietnam—10 per cent for export paper; treasury bonds are rediscounted at a rate 4 percentage points above the rate carried by the bond; and there is a penalty rate of 24 per cent for banks whose loans exceed quan titative ceilings. AUGUST 1971 □ MONEY RATES; ARBITRAGE A 93 OPEN MARKET RATES (Per cent per annum) United Kingdom Canada Month Bankers’ Day-to- allowance day money deposits Treasury Day-to- Bankers’ Treasury bills, bills, day 3 months i money2 3 months 3 months Germany, Fed. Rep. of France Day-to- Treasury Hillc Dllla, day on money 3 days 4 1968—Dec............. 1969—Dec............. 5.96 7.15 5.31 6.95 7.26 8.49 6.80 7.64 5.99 6.75 5.00 5.84 8.22 1969—Dec............. 7.78 7.78 8.88 7.70 6.90 6.00 1970—July............ Aug............. Sept............. Oct.............. Nov............. Dec............. 5.79 5.66 5.44 5.25 4.74 4.47 6.00 6.82 6.81 6.82 6.81 6.81 6.82 6.01 5.74 5.51 5.24 4.52 5.07 8.07 8.06 8.06 8.06 8.06 8.06 6.08 5.84 5.93 5.81 5.95 5.00 5.00 5.00 5.00 5.00 5.00 1971—Jan.............. Feb.............. Mar............. Apr............. M ay............ June............ July............. 4.59 4.51 3.30 3.04 3.06 r3 .15 3.58 5.25 4.90 3.48 2.65 2.76 r3.01 3.64 8.06 8.06 8.06 7.06 7.06 6.74 6.42 6.79 6.75 5.84 6.08 6.66 6.12 5.75 5.65 r5.60 5.57 5.15 5.36 r4.71 5.00 5.00 5.00 5.00 4.00 4.00 r4.00 4.00 5.77 5.53 5.84 Netherlands Day-to- Treasury bills, day money 5 3 months Switzer land Day-today money Private discount rate 2.75 4.42 1.84 4.81 4.65 5.55 4.96 5.98 4.21 10.38 5.75 8.35 6.00 7.11 4.75 8.57 8.13 8.13 7.82 7.30 7.46 6.75 6.75 6.75 6.75 6.25 5.75 8.86 7.85 9.15 7.43 8.44 7.52 6.00 6.00 6.00 6.00 5.75 5.91 6.96 6.03 6.31 6.89 4.33 6.73 5.25 5.25 5.25 5.25 5.25 5.25 6.46 5.75 5.75 5.75 4.75 4.75 4.25 7.61 7.32 7.36 4.23 2.31 6.95 5.60 5.05 4.49 3.59 3.88 4.39 4.46 5.41 3.27 1.13 1.84 2.91 5.25 5.25 5.25 5.25 5.25 5.25 8.97 6.00 3.75 1 1 Based on average yield of weekly tenders during month. 5 Monthly averages based on daily quotations. 2 Based on weekly averages of daily closing rates. 3 Rate shown is on private securities. 4 Rate in effect at end of month. N o te . —For description and back data, see “International Finance,’ Section 15 of Supplement to Banking and Monetary Statistics, 1962. ARBITRAGE ON TREASURY BILLS (Per cent per annum) United States and Canada United States and United Kingdom Treasury bill rates Treasury bill rates Date United Kingdom (adj. to U.S. quotation basis) Premium (+ ) or discount ( - ) on forward pound Net incentive (favor of London) United States Spread (favor of London) 6.60 6.60 3.97 3.62 3.37 3.33 2.69 3.04 3.23 3.27 - 2 .7 0 - 3 .1 7 - 3 .5 7 - 3 .1 3 5 .............. 12 .............. 19.............. 26.............. 6.70 6.70 6.57 6.57 3.28 3.16 3.30 3.32 3.42 3.54 3.27 3.25 -3 .6 1 -3 .3 4 -3 .2 0 -2 .8 5 - .1 9 2 ............ 9 ............ 16............ 23............ 30............ 5.64 5.67 5.70 5.58 5.55 3.58 3.78 3.82 3.70 3.93 2.06 1.89 7 .............. 14.............. 28.............. 5.55 5.52 5.52 5.66 4 .............. 11 .............. 18.............. 2 5 .............. 2 .............. 9 .............. 16.............. 23.............. 30.............. Canada Spread (favor of Canada) As quoted in Canada Adj. to U.S. quotation basis United States 4.83 4.83 4.58 4.03 4.71 4.71 4.47 3.94 3.97 3.62 3.37 3.33 .74 1.09 .07 .40 3.98 3.30 3.01 3.05 3.86 3.23 2.95 2.99 3.28 3.16 3.30 3.32 1.62 -2 .2 5 -2 .6 1 - 2 .7 9 -2 .3 2 - 2 .1 3 - .1 9 -.7 2 - .9 1 - .3 5 - .5 1 3.13 3.03 3.12 3.03 3.01 3.06 2.98 3.05 2.97 2.95 3.74 3.98 4.28 4.26 1.81 1.54 1.24 1.40 -1 .1 4 - 1.11 -1 .1 7 - .9 1 .67 .43 .07 .49 3.15 3.05 2.95 3.03 5.52 5.53 5.53 5.53 4.18 4.56 4.81 4.76 1.34 .97 .72 .77 -1 .0 6 - 1 .1 6 - .9 2 - .8 7 .28 - .1 9 5.53 5.50 5.56 5.56 5.56 5.14 5.33 5.37 5.28 5.20 .39 .17 .19 .28 .36 - .8 0 - .5 8 - .3 7 - .9 6 - .6 3 - .4 1 - .4 1 - .1 8 Premium (+ ) or discount ( - ) on forward Canadian dollars Net incentive (favor of Canada) 1971 Feb. 5............. 11 ............. 19............. 26............. Mar. Apr. May 2 1 .............. June July 6.66 6.66 1.88 1.88 -.0 1 - .1 3 -.3 4 .14 .20 - .2 0 -.1 0 - .6 8 .27 N o te . — Treasury bills: All rates are on the latest issue of 91-day bills. U.S. and Canadian rates are market offer rates 11 a.m. Friday; U.K. rates are Friday opening market offer rates in London. Premium or discount on forward pound and on forward Canadian dollar: Rates per annum computed on basis of midpoint quotations (between bid and offer) at 11 a.m. Friday in New York for both spot and forward pound sterling and for both spot and forward Canadian dollars. - 1 .0 3 - 1 .0 5 - 1.01 - 1 .0 9 -.2 9 .04 .09 - .4 8 .58 .07 - .3 5 - .3 3 -.8 8 - .1 8 .38 .14 - .3 0 .03 - .1 9 3.58 3.78 3.82 3.70 3.93 -.5 2 -.8 0 - .7 7 - .7 3 - .9 8 .32 .40 .52 .93 .81 - .4 0 - .2 5 3.08 2.99 2.89 2.97 3.74 3.98 4.28 4.26 - .9 9 - 1 .3 9 -1 .2 9 1.21 3.05 3.06 3.09 3.19 2.99 3.00 3.02 3.12 4.18 4.56 4.81 4.76 -1 .1 9 - 1 .5 6 - 1 .7 9 - 1 .6 4 1.30 1.27 1.56 1.56 3.40 3.55 3.56 3.53 3.70 3.33 3.47 3.48 3.45 3.62 5.14 5.33 5.37 5.28 5.20 -1 .8 1 - 1.86 - 1 .8 9 -1 .8 3 -1 .5 8 1.27 1.39 1.28 1.35 1.10 .61 - .6 6 1.67 1.31 1.17 1.10 -.1 1 -.2 0 .20 - .1 7 .61 .32 - .1 8 -.1 2 .11 - .2 9 - .2 3 - .0 8 - .7 1 - .5 9 -.5 0 - .5 5 - .2 3 All series: Based on quotations reported to F.R. Bank of New York by market sources. For description of series and for back figures, see Oct. 1964 B u l l e t i n , pp. 1241-60. For description of adjustments to U.K. and Canadian Treasury bill rates, see notes to Table 1, p. 1257, and to Table 2, p. 1260, Oct. 1964 B u l l e t i n . A 94 GOLD RESERVES □ AUGUST 1971 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS (In millions o f dollars) End of period 1964. 1965. 1966. 1967. 1968. 1969. 1970—June. July.. Aug.. Sept.. Oct... Nov.. Dec.. Esti mated total world i Intl. Mone tary Fund United States Esti mated rest of world 43.015 243,230 43,185 41,600 40,905 41.015 2,179 31,869 2.652 2,682 2,288 2,310 15,471 13,806 13,235 12,065 10,892 11,859 25,365 27,285 27,300 26,855 27,725 26,845 41,170 2,544 2,547 2.652 2,825 2,902 3,224 4,339 11,889 11,934 11,817 11.494 11.495 11,478 11,072 26,735 4,380 4,400 4,404 4,338 4,448 4,523 41,180 41,285 1971—Ja n .... F e b ..., M ar... Apr... M ay.. June*5. 2>41,260 End of period Co lombia Den mark Algeria Argen tina 6 71 6 6 66 155 205 205 1,026 1,151 1,046 1,015 863 872 43 44 45 45 46 47 '25*875 205 205 205 205 205 205 191 140 140 140 140 140 140 140 270 269 269 282 283 283 239 714 714 714 714 714 714 714 1.520 1.520 1,518 1,530 1.528 1.528 1.470 45 45 45 45 45 45 45 84 84 63 63 63 63 63 880 880 880 880 880 791 48 48 47 47 47 47 47 11,040 11,039 10,963 *>25,895 10,925 10,568 10,507 191 191 191 191 191 191 140 140 140 140 140 240 240 239 253 254 254 714 714 714 728 r747 747 1.470 1,468 1,466 1,502 1,592 1,584 45 45 45 46 46 46 63 42 42 42 791 791 791 791 792 792 47 47 47 47 47 France Ger many, Fed. Rep. of Greece Fin land 26,860 89 89 89 89 64 64 64 3.543 3.543 3.537 3.537 3.537 3,533 3.532 4.080 4.080 4.080 4.081 4.081 4.081 3,980 1971—Jan... Feb.. Mar.. Apr.. May. June*3 17 17 16 16 16 16 64 64 64 64 64 64 3.532 3,531 3.527 3.527 3.523 3.523 3,979 3,978 3,977 4,029 4,035 4,046 4 5 6 7 8 9 48 52 67 136 122 86 1970—June. July.. Aug.. Sept.. Oct... Nov.. Dec.. 86 86 1971—Jan... Feb.., M ar.. Apr.. May. Junep 86 For notes see end o f table. 86 86 86 86 86 86 86 86 87 87 183 182 193 193 288 288 Chile 84 84 84 84 84 84 26 26 26 26 26 18 17 196 196 196 196 196 196 Canada 92 63 45 45 45 45 1970—June. July.. Aug.. Sept.. Oct.., Nov.. D ec.. Leb anon Burma 1,451 1,558 1,525 1,480 1,524 1.520 4,248 4,410 4,292 4,228 4,539 4.079 Kuwait Brazil 600 700 701 701 714 715 3,729 4,706 5,238 5,234 3,877 3,547 End of period Bel gium 226 223 224 231 257 263 92 97 108 107 114 89 4 5 6 7 8 9 Aus tria 84 84 109 135 58 35 26 31 31 26 196 196 196 196 196 196 Aus tralia Libya Malay sia 17 7 68 68 1 Ire land Israel Italy Japan 112 110 106 115 193 193 2,107 2,404 2,414 2,400 2,923 2,956 304 328 329 338 356 413 119 119 117 117 243 243 243 243 243 243 243 158 158 158 148 148 131 131 151 151 151 151 151 144 144 2.982 2.983 2.983 2.983 2.983 2,981 2,887 472 473 474 530 530 532 532 114 99 99 99 99 99 243 243 243 243 243 243 131 131 131 131 130 131 144 144 144 143 143 143 2,885 2.884 2.884 2.884 2.884 2,886 532 534 539 636 641 641 Philip pines Portu gal Saudi Arabia 523 576 643 699 856 876 78 73 69 69 119 119 130 140 130 120 120 120 Nether lands Nor way Paki stan Peru 21 21 21 21 21 1,756 1,730 1,711 1,697 1,720 31 31 18 18 24 25 53 53 53 53 54 54 25 23 38 44 60 62 45 1 ,730 1.750 1.751 1,801 1,801 1,832 1,787 27 27 27 34 33 23 23 54 54 54 54 54 54 54 40 40 40 40 40 40 40 50 53 54 56 59 59 56 890 890 901 902 902 902 902 119 119 119 119 119 119 119 1,812 1,812 1,812 1,863 1.867 1.867 23 23 23 31 32 32 54 54 54 54 54 55 40 40 40 40 40 40 58 59 60 61 62 63 902 902 902 902 902 902 119 119 119 119 119 119 34 66 63 288 288 288 288 288 288 288 85 85 85 85 85 85 85 63 63 63 63 63 63 48 171 171 171 176 176 176 176 21 288 322 322 322 322 322 85 85 85 85 85 85 48 48 48 48 53 176 176 176 182 21 21 21 21 21 31 Iraq 141 146 130 144 158 158 85 85 68 Iran 247 281 243 243 243 243 77 78 120 169 158 109 166 165 169 2 India 22 22 21 21 21 21 21 21 1,688 67 67 65 20 20 AUGUST 1971 □ GOLD RESERVES AND PRODUCTION A 95 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS— Continued (In millions o f dollars) End of period South Africa Spain 574 425 637 583 1,243 1,115 616 810 785 785 785 784 1970—June. July. Aug., Sept., Oct.. Nov., Dec.. 942 954 920 921 879 788 666 784 784 534 534 534 534 498 1971—Jan.. Feb.. Mar. Apr.. May. June'J 632 632 634 630 630 551 498 498 498 498 498 498 196 196 196 196 196 196 4 5 6 7 8 9 Taiwan Sweden Switzer land 189 202 203 203 225 226 225 225 225 225 225 225 200 200 200 200 200 200 200 Thai land Turkey U.A.R. (Egypt) United King dom 104 116 2,136 2,265 1,940 1,291 1,474 1,471 Uru guay Bank for Intl. Settle ments 4 Vene zuela Yugo slavia 171 155 146 140 133 165 401 401 401 401 403 403 21 22 50 51 -5 0 -558 -424 -624 -349 -480 2,725 3,042 2,842 3,089 2,624 2,642 55 55 62 81 81 82 104 96 92 92 92 92 97 97 117 139 139 93 93 93 93 2.670 2.670 2.720 2.720 2.720 2.720 2,732 82 82 82 82 82 82 82 92 92 92 92 92 92 92 127 127 126 126 126 126 126 93 93 93 93 93 93 85 1.469 1.469 1,457 1.454 1.454 1,354 1,349 165 165 165 165 165 161 162 404 404 404 404 404 384 384 51 52 52 52 52 52 52 -516 -519 -311 -303 -308 -305 -282 2.731 2.731 2,806 2,806 2,807 2,857 82 82 82 84 92 82 82 81 81 81 126 126 127 127 127 127 85 85 85 85 85 1,246 1,224 1,123 162 162 162 152 152 384 384 384 389 389 389 32 32 32 52 52 52 -173 -173 -7 3 13 118 213 102 17 19 some member countries in anticipation of increase in Fund quotas, except those matched by gold mitigation deposits with the United States and United Kingdom; adjustment is $270 million. 3 Excludes gold subscription payments made by some member countries in anticipation of increase in Fund quotas: for most of these countries the increased quotas became effective in Feb. 1966. 4 Net gold assets of BIS, i.e., gold in bars and coins and other gold assets minus gold deposit liabilities. 1 Includes reported or estimated gold holdings of international and regional organizations, central banks and govts, of countries listed in this table and also of a number not shown separately here, and gold to be distributed by the Tripartite Commission for the Restitution of Monetary G old; excludes holdings of the U.S.S.R., other Eastern European coun tries, and China Mainland. The figures included for the Bank for International Settlements are the Bank’s gold assets net of gold deposit liabilities. This procedure avoids the overstatement of total world gold reserves since most of the gold deposited with the BIS is included in the gold reserves of individual countries. 2 Adjusted to include gold subscription payments to the IMF made by N o te . —For back figures and description of the data in this and the following tables on gold (except production), see “Gold*” Section 14 of Supplement to Banking and Monetary Statistics , 1962. GOLD PRODUCTION (In millions of dollars at $35 per fine troy ounce) North and South America Africa Period 1965.. 1966.. 1967.. 1968.. 1969.. 1970p . World produc tion 1 1.440.0 1.445.0 1.410.0 1.420.0 1.420.0 1970—May. June. July. . Aug.. Sept.. O ct... N ov.. D ec.., South Africa Ghana 1,069.4 1,080.8 1.068.7 1,088.0 1.090.7 1,128.0 26.4 24.0 26.7 25.4 24.8 24.8 94.5 96.6 95.2 96.3 96.2 96.6 Congo (Kin shasa) United States Can ada Mex ico 2.3 5.6 5.4 5.9 58.6 63.1 53.4 53.9 60.1 125.6 114.6 103.7 94.1 89.1 81.8 7.6 7.5 5.8 6.0 6.2 1.7 2.0 2.2 2.2 1971—Jan .. Feb.. M ar.. Apr.. May. 1 Estimated; excludes U.S.S.R., other Eastern European countries, China Mainland, and North Korea. 7.0 7.2 6. 8 6.3 6. 6 6.9 6.5 6. 8 7.0 6.2 6.3 6.7 Other Asia Nica Colom India bia ragua Japan Philip pines Aus tralia All other 4.6 4.2 3.4 4.0 3.4 3.7 18.1 19.4 23.7 21.5 23.7 24.8 15.3 15.8 17.2 18.5 30.7 32.1 28.4 27.6 24.5 64.8 62.9 59.4 61.6 60.0 .3 .3 .3 .3 .3 .3 .3 .3 2.2 2.0 5.4 5.2 5.2 4.9 3.7 11.2 9.8 9.0 8.4 7.7 7.1 .6 .6 .6 .7 .7 .6 .6 .5 20.0 21.1 21.6 1.7 1.7 1.6 1.6 1.6 1.7 1.7 2.0 .4 1.7 6.6 .6 1.6 6.7 6.5 6.7 .5 A 96 BANKING OFFICES □ AUGUST 1971 NUMBER OF BANKING OFFICES IN THE UNITED STATES Commercial banks Type of office and type of change All banks Member Total Mutual savings banks Nonmember Total Na tional State Total Insured 6,442 6,619 6,923 6,840 6,174 980 1,502 1,918 1,901 1,644 1,406 1,351 1,313 1,262 9,042 7,662 7,261 7,252 7,300 7,583 7,620 7,650 7,701 7,791 7,920 7,993 7,699 6,810 6,478 6,602 6,948 7,320 7,385 7,439 7,504 7,595 7,735 7,811 981 1,015 1,181 1,467 2,624 3,334 3,518 3,673 3,568 3,477 3,655 3,707 Non Insured 1 Non insured insured Banks (head office): Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. June 31, 31, 31, 31, 31, 31, 31, 31, 31, 31, 31, 30, 16,063 14,826 14,714 14,618 13,986 14,309 14,274 14,222 14,179 14,158 14,181 14,220 15,484 14,278 14,181 14,089 13,472 13,804 13,770 13,721 13,679 13,662 13,688 13,730 6,150 6,071 5,978 5,871 5,768 5,737 5,462 5,117 5,005 4,939 4,530 4,815 4,779 4,758 4,716 4,669 4,621 4,599 1934............................................................ 3,133 1941............................................................ 3,699 1947 2 .......................................................... 4,332 1951............................................................ 5,383 1960............................................................ 10,969 1965............................................................ 16,471 1966............................................................ 17,665 1967............................................................ 18,757 1968............................................................ 19,911 1969............................................................ 21,196 1970............................................................ 22,727 1971 ............................................................ 23,472 3,007 3,564 4,161 5,153 10,483 15,756 16,908 17,928 19,013 20,208 21,643 22,331 2,224 2,580 3,051 3,837 8,133 12,298 13,129 13,856 14,553 15,204 16,191 16,608 1,243 1,565 1,870 2,370 5,509 8,964 9,611 10,183 10,985 11,727 12,536 12,901 1934............................................................ 1941............................................................ 1947 2 ......................................................... 1951............................................................ 1960............................................................ 1965............................................................ 1966............................................................ 1967............................................................ 1968............................................................ 1969............................................................ 1970............................................................ 1971 ............................................................ 6,221 1,202 1,147 1,138 1,343 852 783 650 352 263 235 511 496 339 327 189 177 174 170 167 166 165 164 68 52 194 202 211 197 196 185 182 325 328 330 331 333 330 328 326 7133 932 1,043 1,275 2,303 3,404 3,717 4,026 4,414 4,957 5,404 5,683 52 67 41 47 54 62 46 46 47 48 40 32 124 165 381 583 614 669 729 810 891 938 2 Branches, additional offices, and facilities: Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. June 31, 31, 31, 31, 31, 31, 31, 31, 31, 31, 31, 30, 783 984 1,110 1,316 2,350 3,458 3,779 4,072 4,460 5,004 5,452 5,723 126 103 47 65 105 132 143 160 169 178 193 203 Changes Jan.-June 30, 1971 Banks: New banks ............................................................... Consolidations and absorptions: Banks converted into branches........................... ......................... Ceased banking operations Voluntary liquidations 3 .......................................... Suspensions................................................................ Reopening of suspended banks Interclass changes: Nonmember to n a tio n a l....................... Nonmember to state member State member to nonmember............................... National to nonmember . . . . . . ... Noninsured to insured......................................... Net change ................................................................. Number of banks, June 30, 1971............................. Branches and additional offices: De novo.................................................................... Banks converted........................................................ Discontinued............................................................. Sale of branch........................................................... Interclass changes: Nonmember to national . . . . Nonmember to State member ................... State member to national ..................... State member to nonm em ber............................. National to nonmember ..................................... Noninsured to insured ............. Noninsured mutual savings to insured mutual Facilities reclassified as branches ............... Other ..................................................................... Net change ................................................................ Number of branches and additional offices, June 30, 1971................................................................. Banking facilities:4 Established ..................... ............................. Discontinued ..................... Facilities reclassified as branches Other •• Net change Number of facilities June 30 1971 101 100 17 13 4 83 81 -5 7 -5 3 -2 8 -2 4 -4 -2 5 -2 5 -3 -3 -3 -2 -1 -1 -3 -3 -1 -2 1 -1 -2 1 3 - 14 -14 42 -3 1 -2 2 1 -1 0 -9 14,220 13,730 5,737 4,599 1,138 764 50 -5 4 710 47 —53 448 37 -4 0 364 27 -2 8 10 -1 2 8 8 -1 -1 5 -1 1 -9 1 1 1 17 -9 84 5 -1 7 -1 1 -1 10 14 73 7,993 2 76 7,811 262 10 -1 2 -1 -5 11 11 9 9 7 -9 -7 371 52 6 271 279 23,259 22,118 16,428 12,733 3,695 5,690 5,650 12 33 33 -4 1 -2 -1 -4 -6 -6 213 213 1 -2 -1 -4 -6 180 -1 164 44 3 11 -1 -1 -1 -7 1 423 -1 -2 326 1 -1 6 1 -2 -2 -3 182 -8 -5 -1 0 694 -9 1 10 10 -8 -1 14 262 -1 3 -1 -2 -1 -1 751 1 Insured mutual savings banks figures include one to three member mutual savings banks, 1941 to 1962 inclusive, not reflected in total com mercial bank figures. 2 Series revised as of June 30, 1947. The revision resulted in an addition of 115 banks and nine branches. 1 3 1 -1 0 39 -1 1 -3 5 -1 1 -8 40 47 10 938 203 1 -2 -1 -4 -6 168 3 Exclusive of liquidations incident to succession, conversion, and absorption of banks. 4 Provided at military and other Govt, establishments through arrange ments made by the Treasury Dept. N o te .— Beginning with 1959, figures include all banks in Alaska and Hawaii, but nonmember banks in territories and possesssions are excluded. AUGUST 1971 o FEDERAL RESERVE PAR LIST A 97 NUMBER OF PAR AND NONPAR BANKING OFFICES Par Total F.R. district, State, or other area Member Total Nonpar (nonmember) Nonmember Banks Branches and offices Banks Branches and offices Banks Branches and offices Banks Branches and offices Total, including Puerto Rico and Virgin Islands : 1 Dec. 31, 1970..................... June 30, 1971 ..................... 13,600 13,644 21,848 22,521 13,099 13,196 21,670 22,283 5,768 • 5,737 16,227 16,644 7,331 7,459 5,443 5,639 F.R. districts, June 30, 1971: Boston................................. New York 1 ........................ Philadelphia........................ Cleveland............................. Richmond............................ Atlanta................................ Chicago............................... St. Louis............................. Minneapolis........................ Kansas City........................ Dallas................................... San Francisco..................... 373 472 450 790 731 1,671 2,578 1,516 1,368 1,958 1,348 389 1,647 3,552 1,619 373 472 450 790 695 1,558 2,578 1,449 1,192 1,958 1,292 389 1,647 3,552 1,619 1,205 3,130 1,167 1,660 1,900 982 1,549 472 135 195 129 4,120 145 131 133 320 334 1,005 1,639 992 703 1,160 659 238 442 422 452 352 1,164 468 817 393 306 243 4,938 228 341 317 470 361 553 939 457 489 798 633 151 213 260 109 5 4 81 213 58 243 104 2,752 19 350 46 99 14 104 State or area, June 30, 1971: Alabama............................. Alaska................................. Arizona................................ Arkansas............................. California............................ Colorado............................. Connecticut......................... Delaware............................. District of Columbia.......... Florida................................. 13 252 144 232 58 18 14 516 Georgia............................... Hawaii................................. Idaho................................... Illinois.................................. Indiana................................ Iowa..................................... Kansas................................. Kentucky............................. Louisiana............................. Maine.................................. 434 7 24 1,119 406 665 601 343 232 39 Maryland............................. Massachusetts..................... Michigan............................. Minnesota........................... Mississippi........................... Missouri.............................. M ontana............................. Nebraska............................. Nevada................................ New Hampshire................. 114 159 330 730 184 670 141 436 New Jersey.......................... New Mexico....................... New Y ork........................... North Carolina................... North Dakota..................... Ohio..................................... Oklahoma........................... Oregon................................. Pennsylvania....................... Rhode Island...................... 210 South Carolina................... South D akota..................... Tennessee............................ Texas................................... Utah.................................... Vermont.............................. Virginia............................... Washington......................... West Virginia..................... Wisconsin........................... Wyoming............................. Puerto Rico 1 ..................... Virgin Islands 1 .................. 273 11 8 73 67 303 93 168 515 434 47 460 13 101 161 308 1,206 50 42 236 88 200 2,012 3,111 1,531 2,366 893 289 306 257 4,938 281 65 337 168 3,099 25 453 93 106 40 11 13 185 144 232 58 18 14 516 2,012 3,064 1,450 2,366 865 221 65 337 140 3,099 25 453 93 106 40 647 325 70 338 402 236 434 7 24 1,119 406 665 601 343 141 39 236 548 763 1,227 13 358 94 7 43 114 159 330 730 184 670 141 436 548 763 1,227 13 358 94 7 43 73 354 141 160 102 88 66 1,057 132 2,482 1,167 71 1,333 69 349 1,761 175 438 98 507 82 142 87 848 577 8 210 67 303 72 78 515 434 47 460 13 86 75 308 1,188 50 42 236 88 200 354 141 160 102 647 325 70 338 328 12 232 70 1 13 490 184 148 202 94 59 25 249 9 140 69 406 88 42 199 220 174 284 364 6 11 629 222 517 399 249 82 14 339 595 1,006 88 66 1,057 132 2,482 1,125 25 1,333 69 349 1,761 175 155 40 239 23 46 338 215 9 319 5 922 82 2,335 578 14 1,116 50 254 1,314 95 55 27 64 49 32 177 219 38 141 433 76 507 82 142 87 848 577 26 58 90 579 16 26 144 31 257 62 320 28 106 49 625 500 120 60 17 218 609 34 16 92 57 80 440 16 6 159 40 5 26 77 55 606 70 280 606 70 280 2 2 166 54 2 88 1 13 7 184 25 13 7 184 25 1 19 25 6 11 2 48 99 204 223 45 168 90 135 5 49 6 1 Puerto Rico and the Virgin Islands assigned to the New York District for purposes of Regulation J, “Check Clearing and Collection.” Member branches in Puerto Rico and all except eight in the Virgin Islands are branches of New York City banks. Certain branches of Canadian banks (two in Puerto Rico and one in Virgin Islands) are included above in the table as nonmember banks; and nonmember branches in Puerto Rico include eight branches of Canadian banks. 2 Includes fifteen New York City branches of three insured nonmember Puerto Rican banks. 68 138 29 7 6 9 104 76 94 29 66 60 126 507 139 502 51 301 3 24 8 13 Banks Branches and offices 501 448 178 238 36 113 47 81 67 176 28 114 818 56 14 47 7 94 36 347 60 21 67 28 86 111 68 6 103 47 7 26 105 132 20 33 241 237 28 139 108 62 91 209 168 221 7 199 54 2 17 11 11 135 50 2 147 547 11 217 19 95 447 80 21 90 15 176 14 187 54 36 38 223 77 4 192 1 86 42 46 5 22 18 . . . . 165 6 N o te .— Includes all commercial banking offices in the United States, Puerto Rico, and the Virgin Islands on which checks are drawn, including 213 banking facilities. Number of banks and branches differs from that in the table on page A-96 of the Aug. 1971 B u l l e t i n , because this table includes banks in Puerto Rico and the Virgin Islands but excludes banks and trust companies on which no checks are drawn. A 98 BANK HOLDING COMPANY GROUPS □ AUGUST 1971 BANKING OFFICES AND DEPOSITS OF BANKS IN HOLDING COMPANY GROUPS, DECEMBER 31, 1970 A. Details for 35 States and District of Columbia Number of offices Deposits Banks anti branches State Number of companies 1 Banks Branches Total As a percent age of all commercial banking offices In millions of dollars As a percent age of all commercial bank deposits i 121 895 3,260 4,155 1 1 6 7 1 2 20 7 2 1 2 2 11 114 13 309 4 24 116 15 320 44 27 1 121 13 15 160 140 76 3 31.1 19.4 42.5 .3 12.8 325 6,788 2,395 550 84 11.4 48.6 33.0 40.6 28 29 114 30 232 53 31 129 37 255 5.4 4.6 48.3 5.9 28.4 717 511 578 404 2,452 9.4 45.9 7.5 22.3 9 18 133 62 37 18.0 5,457 3,173 Arizona..................................................................... Arkansas................................................................... California.................................................................. Colorado................................................................... Connecticut............................................................... District of Columbia................................................ Florida...................................................................... Georgia..................................................................... Illinois....................................................................... Kentucky................................................................... Maine........................................................................ Massachusetts........................................................... Minnesota................................................................. Missouri.................................................................... M ontana................................................................... Nebraska................................................................... Nevada...................................................................... New Hampshire....................................................... New Jersey................................................................ New Mexico.............................................................. 40 3 2 159 19 2 3 3 25 5 3 15 7 23 1 2 2 8 10 4 1 1 1 3 2 15 1 124 44 36 5 2 6 14 11 53 2 4 7 32 55 74 1 3 43 8 135 32 734 48 78,064 34.7 3.6 15.7 5.4 32.9 8.0 9.7 51.2 3.5 .2 10.8 866 328 720 59.7 27.7 52.4 9.1 62.5 136 2,528 297 21,140 170 13.1 16.8 19.4 23.9 2.3 20.6 615 4,532 1,714 678 617 39.7 20.9 42.2 43.2 8.3 8.1 8 25.7 1.7 48.4 14 149 43 787 50 12.2 22.2 45 1,166 247 4,776 2,237 184 10.2 10.3 28.7 4.1 15 13 17 258 119 48 48 49 313 3 5 1 63 61 17.3 31.1 24.3 7.7 4 Washington.............................................................. Wisconsin................................................................. 14 3 53 7 82 2 7 3 16 69 383 16 72 436 119 149 1.3 39.3 42.0 18.4 17.0 1,885 840 3,513 1,065 4,200 7.1 45.7 43.8 18.6 43.4 Wyoming.................................................................. 3 8 8 11.3 176 21.7 North D akota.......................................................... 1 Tennessee.................................................................. 2 112 67 120 B. Summary totals and comparisons 35 States and District of Columbia Item Number of banking offices—Total..................................... Banks........................................................................... Branches...................................................................... Deposits (millions of dollars).............................................. Holding company groups All commercial banks 4,155 895 3,260 78,064 26,138 10,360 15,778 384,521 1Data for individual States represent bank holding companies having subsidiary banks in the respective States rather than bank holding compa nies whose principal offices are located in such States. Total does not equal sum of State figures because it has been corrected for duplications; that is, holding companies that have subsidiary banks in more than one State are included in the total only once. The 121 bank holding companies in cluded in the total represent only 111 separate bank groups. N o te .— Holding companies referred to are as defined in the Bank Hold ing Company Act of 1956, as amended, but do not include companies United States— All commer cial banks 35,102 13,686 21,416 481,745 Holding company groups as a per centage of all commercial banks in— 35 States and District of Columbia United States 15.9 11.8 20.3 16.2 that became bank holding companies as a result of “Bank Holding Com pany Act Amendments of 1970,” approved December 31, 1970. (A list showing the names, offices, and total deposits of the banks in the holding company groups is available upon request.) The data include: (1) banks of which the bank holding companies owned or controlled 25 per cent or more of the outstanding stock, and (2) four domestic commercial banks that are not subsidiaries of bank holding companies but are themselves bank holding companies. A 99 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM A r t h u r F. B u r n s , Chairman J. L. R o b e r t s o n , Vice Chairman G e o r g e W. M i t c h e l l J. D e w e y D a a n e S h e r m a n J. M a i s e l A n d r e w F. B r im m e r W illia m W. S h e r r i l l R o b e r t C . H o l l a n d , Executive Director J. C h a r l e s P a r t e e , Adviser to the Board R o b e r t S o l o m o n , A dviser to the Board H o w a r d H . H a c k l e y , Assistant to the Board C h a r l e s M o l o n y , Assistant to the Board R o b e r t L . C a r d o n , Assistant to the Board D a v id B . H e x t e r , Assistant to the Board Jo se p h R . C o y n e , Special Assistant to the Board F r a n k O ’B r i e n , J r ., Special Assistant to the Board J o h n S. R i p p e y , Special Assistant to the Board OFFICE OF EXECUTIVE DIRECTOR R o b e r t C. H o l l a n d , Executive D irector G o r d o n B . G r i m w o o d , Program D irector for Contingency Planning and Defense Planning Coordinator H a r r y J. H a l l e y , Program D irector for M an agement System s W il l i a m W . L a y t o n , D irector of Equal E m ploym ent O pportunity B r e n t o n C. L e a v i t t , Program D irector for Banking Structure OFFICE OF THE SECRETARY T y n a n S m i t h , Secretary K e n n e t h A . K e n y o n , D eputy Secretary M u r r a y A l t m a n n , Assistant Secretary N o r m a n d R . V . B e r n a r d , Assistant Secretary A r t h u r L . B r o id a , Assistant Secretary E l i z a b e t h L . C a r m i c h a e l , Assistant Secretary LEGAL DIVISION T h o m a s J. O ’C o n n e l l , General Counsel R o b e r t F . S a n d e r s , D eputy General Counsel G r a s t y C r e w s , II , Adviser P a u l i n e B . H e l l e r , Adviser DIVISION OF FEDERAL RESERVE BANK OPERATIONS J a m e s A . M c I n t o s h , Director J o h n N . K i l e y , J r ., Associate D irector W a l t e r A . A l t h a u s e n , Assistant D irector D o n a l d G . B a r n e s , Assistant D irector H a r r y A . G u i n t e r , Assistant D irector P . D . R i n g , Assistant D irector J a m e s L . V i n i n g , Assistant D irector C h a r l e s C . W a l c u t t , Assistant D irector L l o y d M . S c h a e f f e r , Chief Federal Reserve Examiner DIVISION OF RESEARCH AND STATISTICS J. C h a r l e s P a r t e e , D irector S t e p h e n H . A x il r o d , Associate Director S a m u e l B . C h a s e , Associate D irector L y l e E . G r a m l e y , Associate Director S t a n l e y J. S i g e l , Adviser M u r r a y S. W e r n i c k , A dviser K e n n e t h B . W i l l i a m s , A dviser J a m e s B . E c k e r t , Associate A dviser P e t e r M . K e i r , Associate Adviser J a m e s L . P i e r c e , Associate Adviser E d w a r d C . E t t i n , Assistant Adviser S t e p h e n P . T a y l o r , Assistant Adviser Louis W e i n e r , Assistant Adviser J o s e p h S. Z e i s e l , Assistant Adviser L e v o n H . G a r a b e d i a n , Assistant Director DIVISION OF INTERNATIONAL FINANCE R o b e r t S o l o m o n , D irector J o h n E . R e y n o l d s , Associate D irector R o b e r t L . S a m m o n s , Associate D irector J o h n F . L . G h ia r d i , A dviser A . B . H e r s e y , A dviser R e e d J. I r v i n e , Adviser S a m u e l I. K a t z , Adviser B e r n a r d N o r w o o d , Adviser R a l p h C . W o o d , Adviser R a l p h C . B r y a n t , Associate Adviser R o b e r t F . G e m m i l l , Associate Adviser S a m u e l P iz e r , Associate Adviser DIVISION OF SUPERVISION AND REGULATION F r e d e r ic S o l o m o n , D irector B r e n t o n C . L e a v i t t , D eputy D irector F r e d e r ic k R . D a h l , Assistant D irector J a c k M . E g e r t s o n , Assistant D irector J o h n P . F l a h e r t y , Assistant D irector J a n e t O . H a r t , Assistant D irector J o h n N . L y o n , Assistant D irector J o h n T . M c C l i n t o c k , Assistant Director T h o m a s A . S i d m a n , Assistant D irector Continued on next page A 100 BOARD OF GOVERNORS Continued DIVISION OF PERSONNEL ADMINISTRATION E d w i n J. J o h n s o n , D irector J o h n J. H a r t , Assistant D irector OFFICE OF THE CONTROLLER J o h n K a k a l e c , Controller H a r r y J. H a l l e y , D eputy Controller DIVISION OF DATA PROCESSING Je r o ld E . S l o c u m , DIVISION OF ADMINISTRATIVE SERVICES J o s e p h E . K e l l e h e r , Director D o n a l d E . A n d e r s o n , Assistant Director J o h n D . S m i t h , Assistant D irector Director C h a r l e s L. H a m p t o n , Associate D irector G l e n n L. C u m m i n s , Assistant Director H e n r y W . M e e t z e , Assistant Director R ic h a r d S . W a t t , Assistant Director A 101 FEDERAL OPEN MARKET COMMITTEE A r t h u r F . B u r n s , Chairman A l f r e d H a y e s, Vice Chairman A n d r e w F . B r im m e r M o n ro e K im b re l F r a n k E. M o r r i s G e o r g e H. C l a y S h e r m a n J. M a i s e l J. L. R o b e r t s o n J. D e w e y D a a n e R o b e r t P. M a y o W i l l ia m W. S h e r r i l l G eorge W. M it c h e l l R obert C. H D eputy Secretary A r t h u r L . B r o id a , N orm and R. V . B ernard, C harles M o lo n y, H ow ard D a v id H. H B. H G Assistant Secretary General Counsel Jo h n A lan E. Associate Econom ist e r sey , Associate Econom ist o lm es, C harles A . C o o m bs, Associate Econom ist R ey n o ld s, Associate Econom ist Associate Econom ist Associate Econom ist C harles T . T aylo r, Associate Economist R. H Associate Econom ist G ram ley, R obert So lom on, Associate Econom ist R o bert W . E is e n m e n g e r , E. G arvy, K arl A . Sc h eld, Econom ist x il r o d , eorge A . B. H Assistant General Counsel J. C h a r l e s P a r t e e , Secretary Lyle Assistant Secretary ackley, exter, Stephen H . A olland, Associate Econom ist C larence W . T o w , Manager , System Open M arket A ccount Special Manager, System Open M arket A ccount FEDERAL ADVISORY COUNCIL J o h n M . M e y e r , J r ., s e c o n d f e d e r a l r e s e r v e d i s t r i c t , A . W . C la u s e n , t w e l f t h M ark C. W h e e l e r , f e d e r a l r e se r v e d is tr ic t, o r r is r eser v e D orrance, J r ., A t h ir d f e d e r a l fourth federal f if t h fe d e r a l r e s e r v e d is t r ic t H arry H ood r ese r v e o r g a n , e ig h t h f e d e r a l T. M . R ea rd o n , n in th f e d e r a l r e se r v e d is tr ic t M o r r is B a ssett, F. M r eser v e John s ix t h f e d e r a l E. il l e r , t e n t h f e d e r a l d is t r ic t G ray, e le v e n t h f e d e r a l r e se r v e d is tr ic t d is t r ic t federal r e s e r v e d i s t r ic t r e s e r v e d is t r ic t Jo seph W . B arr, M llen d is t r i c t J o h n S. F a n g b o n e r , seven th r e s e r v e d is t r ic t r e s e r v e d is t r ic t G. M Vice President G aylord F r e e m a n , f ir s t f e d e r a l President H erbert W illia m V. P rochn ow , J. K o r s v i k , Secretary Assistant Secretary A 102 FEDERAL RESERVE BANKS AND BRANCHES Federal Reserve Bank, branch, or facility Zip code Chairman Deputy Chairman President First Vice President Boston...................... 02106 James S. Duesenberry Louis W. Cabot Frank E. Morris Earle O. Latham New York................ 10045 Albert L. Nickerson Roswell L. Gilpatric Norman F. Beach Alfred Hayes William F. Treiber Philadelphia............. 19101 Bayard L. England D. Robert Yamall, Jr. David P. Eastburn David C. Melnicoff Cleveland.................. 44101 Albert G. Clay J. Ward Keener Graham E. Marx Lawrence E. Walkley Buffalo.................. 14240 Cincinnati............ 45201 Pittsburgh............ 15230 Richmond................... 23261 Baltimore............... 21203 Charlotte................28201 A. A. Maclnnes, Jr. Walter H. MacDonald Fred O. Kiel James H. Campbell Wilson H. Elkins Robert W. Lawson, Jr. Arnold J. Kleff, Jr. John L. Fraley Aubrey N. Heflin Robert P. Black Edwin I. Hatch John C. Wilson W. Cecil Bauer Castle W. Jordan Edward J. Boling D. Ben Kleinpeter Monroe Kimbrel Kyle K. Fossum Emerson G. Higdon William H. Franklin Peter B. Clark Robert P. Mayo Ernest T. Baughman Frederic M. Peirce Sam Cooper A1 Pollard Ronald E. Reitmeier C. Whitney Brown Darryl R. Francis Eugene A. Leonard David M. Lilly Bruce B. Dayton William A. Cordingley Bruce K. MacLaury M. H. Strothman, Jr. Robert W. Wagstaff Willard D. Hosford, Jr. Cris Dobbins C. W. Flint, Jr. Henry Y. Kleinkauf George H. Clay John T. Boysen Chas. F. Jones Philip G. Hoffman Joseph M. Ray Geo. T. Morse, Jr. W. A. Belcher Philip E. Coldwell T. W. Plant H. Lee Boatwright, III Jimmie R. Monhollon Culpeper Communications Center................. 22701 Atlanta..................... 30303 Birmingham......... Jacksonville.......... Nashville.............. New Orleans......... Miami Office........ .35202 .32203 .37203 70160 33101 Chicago.................... .60690 Detroit.................. 48231 St. Louis.................. ,63166 Little Rock........... .72203 Louisville.............. ,40201 Memphis.............. .38101 Minneapolis.............. 55480 Helena.................. .59601 Kansas City.............. .64198 Denver.................. .80217 Oklahoma City,, ,, .73125 Omaha................. .68102 Dallas....................... .75222 El Paso................. .79999 Houston............... .77001 San Antonio......... .78295 San Francisco........... .94120 O. Meredith Wilson S. Alfred Halgren Los Angeles.......... 90051 J. Leland Atwood Portland............... .97208 Frank Anderson Salt Lake City...... 84110 Royden G. Derrick Seattle.................. .98124 Francis G. Crane Vice President in charge of branch Dan L. Hendley Edward C. Rainey Jeffrey J. Wells Arthur H. Kantner Daniel M. Doyle Eliot J. Swan A. B. Merritt John F. Breen Donald L. Henry Laurence T. Britt Howard L. Knous John W. Snider Howard W. Pritz George C. Rankin Fredric W. Reed J. Lee Cook Carl H. Moore Paul W. Cavan William M. Brown Arthur L. Price William R. Sandstrom A 103 FEDERAL RESERVE BOARD PUBLICATIONS Available from Publications Services, Division of Administrative Services, Board of Governors of the Federal Re serve System, Washington, D.C. 20551. Where a charge is indicated, remittance should accompany request and be made payable to the order of the Board of Governors of the Federal Reserve System in a form collectible at par in U.S. currency. (Stamps and coupons not accepted.) ANNUAL REPORT. FEDERAL RESERVE BULLETIN. Monthly. $6.00 per annum or $.60 a copy in the United States and its possessions, Bolivia, Canada, Chile, Colom bia, Costa Rica, Cuba, Dominican Republic, Ecuador, Guatemala, Haiti, Republic of Hon duras, Mexico, Nicaragua, Panama, Paraguay, Peru, El Salvador, Uruguay, and Venezuela; 10 or more of same issue sent to one address, $5.00 per annum or $.50 each. Elsewhere, $7.00 per annum or $.70 a copy. SUPPLEMENT TO BANKING AND MONETARY STA TISTICS. Sec. 1. Banks and the Monetary Sys tem. 1962. 35 pp. $.35. Sec. 2. Member Banks. 1967. 59 pp. $.50. Sec. 5. Bank Debits. 1966. 36 pp. $.35. Sec. 6. Bank Income. 1966. 29 pp. $.35. Sec. 9. Federal Reserve Banks. 1965. 36 pp. $.35. Sec. 10. Member Bank Reserves and Related Items. 1962. 64 pp. $.50. Sec. 11. Cur rency. 1963. 11 pp. $.35. Sec. 12. Money Rates and Securities Markets. 1966. 182 pp. $.65. Sec. 14. Gold. 1962. 24 pp. $.35. Sec. 15. Inter national Finance. 1962. 92 pp. $.65. Sec. 16 (New). Consumer Credit. 1965. 103 pp. $.65. FEDERAL RESERVE CHART BOOK ON FINANCIAL AND BUSINESS STATISTICS. Monthly. Annual subscription includes one issue of Historical Chart Book. $6.00 per annum or $.60 a copy in the United States and the countries listed above; 10 or more of same issue sent to one address, $.50 each. Elsewhere, $7.00 per annum or $.70 a copy. BANK MERGERS & THE REGULATORY AGENCIES: APPLICATION OF THE BANK MERGER ACT OF 1960. 1964. 260 pp. $1.00 a copy; 10 or more sent to one address, $.85 each. HISTORICAL CHART BOOK. Issued annually in Sept. Subscription to monthly chart book includes one issue. $.60 a copy in the United States and countries listed above; 10 or more sent to one address, $.50 each. Elsewhere, $.70 a copy. BANKING MARKET STRUCTURE & PERFORMANCE IN METROPOLITAN AREAS: A STATISTICAL STUDY OF FACTORS AFFECTING RATES ON BANK LOANS. 1965. 73 pp. $.50 a copy; 10 or more sent to one address, $.40 each. THE FEDERAL RESERVE ACT, as amended through Nov. 5, 1966, with an appendix containing pro visions of certain other statutes affecting the Federal Reserve System. 353 pp. $1.25. REGULATIONS OF THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM. PUBLISHED INTERPRETATIONS OF THE BOARD OF GOVERNORS, as of Dec. 31, 1970. $2.50. INDUSTRIAL PRODUCTION— 1957-59 BASE. 1962. 172 pp. $1.00 a copy; 10 or more sent to one address, $.85 each. THE PERFORMANCE OF BANK HOLDING COM PANIES. 1967. 29 pp. $.25 a copy; 10 or more sent to one address, $.20 each. FARM DEBT. Data from the 1960 Sample Survey of Agriculture. 1964. 221 pp. $1.00 a copy; 10 or more sent to one address, $.85 each. MERCHANT AND DEALER CREDIT IN AGRICUL TURE. 1966. 109 pp. $1.00 a copy; 10 or more sent to one address, $.85 each. FLOW OF FUNDS IN THE UNITED STATES, 193953. 1955. 390 pp. $2.75. THE FEDERAL FUNDS MARKET. 1959. I l l pp. $1.00 a copy; 10 or more sent to one address, $.85 each. FLOW OF FUNDS ACCOUNTS, 1945-1968. March 1970. 138 pp. $1.00 per copy; 10 or more sent to one address, $.85 each. TRADING IN FEDERAL FUNDS. 1965. 116 pp. $1.00 a copy; 10 or more sent to one address, $.85 each. DEBITS AND CLEARING STATISTICS AND THEIR USE. 1959. 144 pp. $1.00 a copy; 10 or more sent to one address, $.85 each. U.S. TREASURY ADVANCE REFUNDING, JUNE 1960-JULY 1964. 1966. 65 pp. $.50 a copy; 10 or more sent to one address, $.40 each. A 104 FEDERAL RESERVE B ULLETIN BANK CREDIT-CARD AND CHECK-CREDIT PLANS. 1968. 102 pp. $1.00 a copy; 10 or more sent to one address, $.85 each. INTEREST RATE EXPECTATIONS: TESTS ON YIELD SPREADS AMONG SHORT-TERM GOVERNMENT SECURITIES. 1968. 83 pp. $.50 a copy; 10 or more sent to one address, $.40 each. SURVEY OF FINANCIAL CHARACTERISTICS OF CONSUMERS. 1966. 166 pp. $1.00 a copy; 10 or more sent to one address, $.85 each. SURVEY OF CHANGES IN FAMILY FINANCES. 1968. 321 pp. $1.00 a copy; 10 or more sent to one address, $.85 each. REPORT OF THE JOINT TREASURY-FEDERAL RE SERVE STUDY OF THE U.S. GOVERNMENT SECURITIES MARKET. 1969. 48 pp. $.25 a copy; 10 or more sent to one address, $.20 each. JOINT TREASURY-FEDERAL RESERVE STUDY OF THE GOVERNMENT SECURITIES MARKET: STAFF STUDIES— PART 1 (papers by Cooper, Bernard, and Scherer). 1970. 86 pp. $.50 a copy; 10 or more sent to one address, $.40 each. (Limited supplies, in mimeographed or similar form, of staff papers other than those con tained in Part 1 are available upon request for single copies. See p. 48 of main report for a list of such papers.) OPEN MARKET POLICIES AND OPERATING PRO CEDURES— STAFF STUDIES (papers by Axilrod, Davis, Andersen, Kareken et al., Pierce, Fried man, and Poole). 1971. 218 pp. $2.00 a copy; 10 or more sent to one address, $1.75 each. REAPPRAISAL OF THE FEDERAL RESERVE DIS COUNT MECHANISM, vol. 1 (papers by Steer ing Committee, Shull, Anderson, and G arvy). 1971. 276 pp. $3.00 a copy; 10 or more sent to one address, $2.50 each. Limited supply of the following papers relating to the Discount Study , in mimeographed or similar form, available upon request for single copies: A STUDY OF THE MARKET FOR FEDERAL FUNDS. 1968. 47 pp. THE SECONDARY MARKET FOR NEGOTIABLE CERTIFICATES OF DEPOSIT. 1968. 89 pp. RESERVE ADJUSTMENTS OF THE EIGHT MAJOR NEW YORK CITY BANKS DURING 1966. 1968. 29 pp. DISCOUNT POLICY AND OPEN MARKET OPERA TIONS. 1968. 23 pp. □ AUGUST 1971 THE REDESIGNED DISCOUNT MECHANISM AND THE MONEY MARKET. 1968. 29 pp. SUMMARY OF THE ISSUES RAISED AT THE ACA DEMIC SEMINAR ON DISCOUNTING. 1968. 16 pp. A REVIEW OF RECENT ACADEMIC LITERATURE ON THE DISCOUNT MECHANISM. 1968. 40 pp. DISCOUNT POLICY AND BANK SUPERVISION. 1968. 72 pp. THE LEGITIMACY OF CENTRAL BANKS. 1969. 24 pp. SELECTIVE CREDIT CONTROL. 1969. 9 pp. SOME PROPOSALS FOR A REFORM OF THE DIS COUNT WINDOW. 1969. 40 pp. AN EVALUATION OF SOME DETERMINANTS OF MEMBER BANK BORROWING. 1969. 29 pp. ACADEMIC VIEWS ON IMPROVING THE FEDERAL RESERVE DISCOUNT MECHANISM. 1970. 172 pp. CAPITAL AND CREDIT REQUIREMENTS OF AGRI CULTURE, AND PROPOSALS TO INCREASE AVAILABILITY OF BANK CREDIT. 1970. 160 pp. FINANCIAL INSTABILITY REVISITED: THE ECO NOMICS OF DISASTER. 1970. 87 pp. STAFF ECONOMIC STUDIES Studies and papers on economic and financial sub jects that are of general interest in the field of economic research. Summaries only printed in the Bulletin. (Lim ited supply of mimeographed copies of full text available upon request for single copies.) MEASURES OF INDUSTRIAL PRODUCTION AND FINAL DEMAND, by Clayton Gehman and Cor nelia Motheral. Jan. 1967. 57 pp. OPTIMAL CHOICE OF MONETARY POLICY INSTRU MENTS IN A SIMPLE STOCHASTIC MACRO MODEL, by William Poole. Sept. 1970. 20 pp. UNCERTAINTY AND STABILIZATION POLICIES FOR A NONLINEAR MACROECONOMIC MODEL, by Franklin R. Shupp. Dec. 1970. 23 pp. OPERATING POLICIES OF BANK HOLDING COM PANIES— PART 1, by Robert J. Lawrence. Apr. 1971. 82 pp. THE RELATIVE IMPORTANCE OF MONETARY AND FISCAL VARIABLES IN DETERMINING PRICE LEVEL MOVEMENTS: A NOTE, by Peter S. Rose and Lacy H. H unt II. June 1971. 7 pp. FEDERAL RESERVE BOARD P UB LIC ATIO NS A 105 ESTIMATION OF THE INVESTMENT AND PRICE EQUATIONS OF A MACROECONOMETRIC MODEL, by Robert J. Shiller. June 1971. 65 pp. THE ROLE OF FINANCIAL INTERMEDIARIES IN U.S. CAPITAL MARKETS, Staff Economic Study by Daniel H. Brill with Ann P. Ulrey. Jan. 1967. 14 pp. ADJUSTMENT AND DISEQUILIBRIUM COSTS AND THE ESTIMATED BRAINARD— TOBIN MODEL, by Joseph Bisignano. July 1971. 108 pp. REVISED SERIES ON COMMERCIAL AND INDUS TRIAL LOANS BY INDUSTRY. Feb. 1967. 2 pp. A TEST OF THE “ EXPECTATIONS HYPOTHESIS” USING DIRECTLY OBSERVED WAGE AND PRICE EXPECTATIONS, by Stephen J. Turnovsky and Michael L. Wachter. Aug. 1971. 25 pp. MORTGAGE REPAYMENTS AS A SOURCE OF LOANABLE FUNDS, by Robert Moore Fisher. Aug. 1971. 43 pp. Printed in full in the Bulletin. (Reprints available as shown in following list.) REPRINTS SURVEY OF FINANCE COMPANIES, MID-1965. Apr. 1967. 26 pp. EVIDENCE ON CONCENTRATION IN BANKING MARKETS AND INTEREST RATES, Staff Eco nomic Study by Almarin Phillips. June 1967. 11 pp. NEW BENCHMARK PRODUCTION MEASURES, 1958 AND 1963. June 1967. 4 pp. REVISED INDEXES OF MANUFACTURING CAPACITY AND CAPACITY UTILIZATION. July 1967. 3 pp. ADJUSTMENT FOR SEASONAL VARIATION. June 1941. 11 pp. SEASONAL FACTORS AFFECTING BANK RESERVES. Feb. 1958. 12 pp. LIQUIDITY AND PUBLIC POLICY, Staff Paper by Stephen H. Axilrod. Oct. 1961. 17 pp. SEASONALLY ADJUSTED SERIES CREDIT. July 1962. 6 pp. AUTO LOAN CHARACTERISTICS AT MAJOR SALES FINANCE COMPANIES. Feb. 1967. 5 pp. FOR BANK INTEREST RATES AND MONETARY POLICY, Staff Paper by Stephen H. Axilrod. Sept. 1962. 28 pp. MEASURES OF MEMBER BANK RESERVES. July 1963. 14 pp. CHANGES IN BANKING STRUCTURE, 1953-62. Sept. 1963. 8 pp. REVISION OF BANK DEBITS AND DEPOSIT TURN OVER SERIES. Mar. 1965. 4 pp. THE PUBLIC INFORMATION ACT— ITS EFFECT ON MEMBER BANKS. July 1967. 6 pp. INTEREST COST EFFECTS OF COMMERCIAL BANK UNDERWRITING OF MUNICIPAL REVENUE BONDS. Aug. 1967. 16 pp. THE FEDERAL RESERVE-MIT ECONOMETRIC MODEL, Staff Economic Study by Frank de Leeuw and Edward Gramlich. Jan. 1968. 30 pp. THE PRICE OF GOLD IS NOT THE PROBLEM. Feb. 1968. 7 pp. U.S. INTERNATIONAL TRANSACTIONS: TRENDS IN 1960-67. Apr. 1968. 23 pp. MONETARY RESTRAINT AND BORROWING AND CAPITAL SPENDING BY LARGE STATE AND LOCAL GOVERNMENTS IN 1966. July 1968. 30 pp. TIME DEPOSITS IN MONETARY ANALYSIS, Staff Economic Study by Lyle E. Gramley and Samuel B. Chase, Jr. Oct. 1965. 25 pp. REVISED SERIES ON BANK CREDIT. Aug. 1968. 4 pp. RESEARCH ON BANKING STRUCTURE AND PER FORMANCE, Staff Economic Study by Tynan Smith. Apr. 1966. 11 pp. FEDERAL FISCAL POLICY IN THE 1960's. Sept. 1968. 18 pp. COMMERCIAL BANK LIQUIDITY, Staff Economic Study by James Pierce. Aug. 1966. 9 pp. BUSINESS FINANCING BY BUSINESS FINANCE COMPANIES. Oct. 1968. 13 pp. A REVISED INDEX OF MANUFACTURING CAPACITY, Staff Economic Study by Frank de Leeuw with Frank E. Hopkins and Michael D. Sherman. Nov. 1966. 11 pp. MANUFACTURING CAPACITY: A COMPARISON OF TWO SOURCES OF INFORMATION, Staff Eco nomic Study by Jared J. Enzler. Nov. 1968. 5 pp. A 106 FEDERAL RESERVE B ULLETIN MONETARY RESTRAINT, BORROWING, AND CAP ITAL SPENDING BY SMALL LOCAL GOVERN MENTS AND STATE COLLEGES IN 1966. Dec. 1968. 30 pp. REVISION OF CONSUMER CREDIT STATISTICS. Dec. 1968. 21 pp. HOUSING PRODUCTION AND FINANCE. Mar. 1969. 7 pp. □ AUGUST 1971 BANK FINANCING OF MOBILE HOMES. Mar. 1971. 4 pp. TREASURY AND FEDERAL RESERVE FOREIGN EX CHANGE OPERATIONS. Mar. 1971. 19 pp. RESPONSE OF STATE AND LOCAL GOVERNMENTS TO VARYING CREDIT CONDITIONS. Mar. 1971. 24 pp. OUR PROBLEM OF INFLATION. June 1969. 15 pp. CHANGES IN BANK LENDING PRACTICES, 1970. Apr. 1971.5 pp. THE CHANNELS OF MONETARY POLICY, Staff Eco nomic Study by Frank de Leeuw and Edward Gramlich. June 1969. 20 pp. U.S. BALANCE OF PAYMENTS AND INVESTMENT POSITION. Apr., 1971. 14 pp. REVISION OF WEEKLY SERIES FOR COMMERCIAL BANKS. Aug. 1969. 5 pp. EURO-DOLLARS: A CHANGING MARKET. Oct. 1969. 20 pp. RECENT CHANGES IN STRUCTURE OF COMMER CIAL BANKING. Mar. 1970. 16 pp. SDR's IN FEDERAL RESERVE OPERATIONS AND STATISTICS. May 1970. 4 pp. INTEREST RATES, CREDIT FLOWS, AND MON ETARY AGGREGATES SINCE 1964. June 1971. 16 pp. TWO KEY ISSUES OF MONETARY POLICY. June 1971.4 pp. SURVEY OF DEMAND DEPOSIT OWNERSHIP. June 1971. 12 pp. INFLATION IN WESTERN EUROPE AND JAPAN. Oct. 1970. 13 pp. BANK RATES ON BUSINESS LOANS— REVISED SERIES. June 1971. 10 pp. REVISION OF THE MONEY STOCK. Dec. 1970. 23 pp. INDUSTRIAL PRODUCTION— REVISED AND NEW MEASURES. July 1971. 26 pp. MEASURES OF SECURITY CREDIT. Dec. 1970. 11 pp. CHANGES IN TIME AND SAVINGS DEPOSITS, JANUARY— APRIL 1971, July 1971. 13 pp. BALANCE OF PAYMENTS PROGRAM: REVISED GUIDELINES FOR BANKS AND NONBANK FINAN CIAL INSTITUTIONS. Jan. 1971. 12 pp. MONETARY AGGREGATES AND MONEY MARKET CONDITIONS IN OPEN MARKET POLICY. Feb. 1971.26 pp. BANKING AND MONETARY STATISTICS, 1970. Selected series of banking and monetary statistics for 1970 only. Feb., Mar., and July 1971. 19 pp. FINANCIAL DEVELOPMENTS IN THE SECOND QUARTER OF 1971. August 1971. 10 pp. A 107 INDEX TO STATISTICAL TABLES Acceptances, bankers’, 14, 33, 35 Agricultural loans of commercial banks, 24, 26 Arbitrage, 93 Assets and liabilities (See also Foreigners): Banks, by classes, 20, 24, 25, 26, 39 Banks and the monetary system, 19 Corporate, current, 51 Federal Reserve Banks, 12 Automobiles: Consumer instalment credit, 56, 57, 58 Production index, 60, 61 Bank credit proxy, 18 Bank holding companies, banking offices and deposits of group banks, Dec. 31, 1970, 98 Bankers’ balances, 25, 28 (See also Foreigners, claims on, and liabilities to) Banking offices: Changes in number, 96 Par and nonpar offices, number, 97 Banks and the monetary system, 19 Banks for cooperatives, 40 Bonds (See also U.S. Govt, securities): New issues, 47, 48, 49 Yields and prices, 36, 37 Branch banks, liabilities of U.S. banks to their foreign branches, 30, 88 Brokerage balances, 87 Business expenditures on new plant and equipment, 51 Business indexes, 64 Business loans (See Commercial and industrial loans) Capacity utilization, 64 Capital accounts: Banks, by classes, 20, 25, 30 Federal Reserve Banks, 12 Central banks, 92, 94 Certificates of deposit, 30 Coins, circulation, 16 Commercial and industrial loans: Commercial banks, 24, 33 Weekly reporting banks, 26, 31 Commercial banks: Assets and liabilities, 20, 24, 25, 26 Banking offices, changes in number, 96 Consumer loans held, by type, 57 Deposits at, for payment of personal loans, 32 Loans sold outright, 33 Number, by classes, 20 Real estate mortgages held, by type, 52 Commercial paper, 33, 35 Condition statements (See Assets and liabilities) Construction, 64, 65 Consumer credit: Instalment credit, 56, 57, 58, 59 Noninstalment credit, by holder, 57 Consumer price indexes, 64, 68 Consumption expenditures, 70, 71 Corporations: Sales, profits, taxes, and dividends, 50, 51 Security issues, 48, 49 Security yields and prices, 36, 37 Cost of living (See Consumer price indexes) Currency and coin, 5, 10, 25 Currency in circulation, 5, 16, 17 Customer credit, stock market, 38 Debits to deposit accounts, 15 Debt (See specific types of debt or securities) Demand deposits: Adjusted, banks and the monetary system, 19 Adjusted, commercial banks, 15, 18, 25 Banks, by classes, 11, 20, 25, 29, 39 Demand deposits—Continued Ownership by individuals, partnerships, and corporations, 32 Subject to reserve requirements, 18 Turnover, 15 Deposits (See also specific types of deposits): Accumulated at commercial banks for payment of personal loans, 32 Adjusted, and currency, 19 Banks, by classes, 11, 20, 25, 29, 39 Euro-dollars, 88 Federal Reserve Banks, 12, 88 Postal savings, 19, 25 Subject to reserve requirements, 18 Discount rates (See Interest rates) Discounts and advances by Reserve Banks, 4, 12, 13, 15 Dividends, corporate, 50, 51 Dollar assets, foreign, 77, 83 Earnings and hours, manufacturing industries, 67 Employment, 64, 66, 67 Euro-dollar deposits in foreign branches of U.S. banks, 88 Farm mortgage loans, 52, 53 Federal finance: Cash transactions, 42 Receipts and expenditures, 43 Treasury operating balance, 42 Federal funds, 8, 24, 26, 30, 35 Federal home loan banks, 40, 41, 53 Federal Housing Administration, 52, 53, 54, 55 Federal intermediate credit banks, 40, 41 Federal land banks, 40, 41 Federal National Mortgage Assn., 40, 41, 55 Federal Reserve Banks: Condition statement, 12 U.S. Govt, securities held, 4, 12, 15, 44, 45 Federal Reserve credit, 4, 6, 12, 15 Federal Reserve notes, 12, 16 Federally sponsored credit agencies, 40, 41 Finance companies: Loans, 26, 56, 57, 59 Paper, 33, 35 Financial institutions, loans to, 24, 26 Float, 4 Flow of funds, 72 Foreign: Currency operations, 12, 14, 77, 83 Deposits in U.S. banks, 5, 12, 19, 25, 29, 88 Exchange rates, 91 Trade, 75 Foreigners: Claims on, 84, 85, 88, 89, 90 Liabilities to, 30, 78, 79, 81, 82, 83, 88, 89, 90 Gold: Certificates, 12, 13, 16 Earmarked, 88 Net purchases by U.S., 76 Production, 95 Reserves of central banks and govts., 94 Stock, 4, 19, 77 Government National Mortgage Association, 55 Gross national product, 70, 71 Hours and earnings, manufacturing industries, 67 Housing permits, 64 Housing starts, 65 Income, national and personal, 70, 71 Industrial production index, 60-63, 64 (References are to pages A-4 through A-98 although the prefix “A” is omitted in this index) (For list of tables published periodically, but not monthly, see page A-3.) (References are to pages A-4 through A-98 although the prefix “A” is omitted in this index) A 108 FEDERAL RESERVE BULLETIN Instalment loans, 56, 57, 58, 59 Insurance companies, 39, 44, 45, 53 Insured commercial banks, 22, 24, 32, 96 Interbank deposits, 11, 20, 25 Interest rates: Business loans by banks, 34 Federal Reserve Banks, 9 Foreign countries, 92, 93 Money market rates, 35 Mortgage yields, 55 Prime rate, commercial banks, 34 Time and savings deposits, maximum rates, 11 Yields, bond and stock, 36 International capital transactions of the U.S., 78-90 International institutions, 76, 77, 92, 94 Inventories, 70 Investment companies, issues and assets, 49 Investments (See also specific types of investments): Banks, by classes, 20, 24, 27, 28, 39 Commercial banks, 18 Federal Reserve Banks, 12, 15 Life insurance companies, 39 Savings and loan assns., 40 Labor force, 66 Loans (See also specific types of loans): Banks, by classes, 20, 24, 26, 27, 39 Commercial banks, 18, 20, 24, 26, 27, 31, 33, 34 Federal Reserve Banks, 4, 6, 12, 15 Insurance companies, 39, 53 Insured or guaranteed by U.S., 52, 53, 54, 55 Savings and loan assns., 40, 53 Manufacturers: Capacity utilization, 64 Production index, 61, 64 Margin requirements, 10 Member banks: Assets and liabilities, by classes, 20, 24 Banking offices, changes in number, 96 Borrowings at Reserve Banks, 6, 12 Deposits, by classes, 11 Num ber, by classes, 20 Reserve position, basic, 8 Reserve requirements, 10 Reserves and related items, 4, 18 Mining, production index, 61, 64 Mobile home shipments, 65 Money rates (See Interest rates) Money stock and related data, 17, 19 Mortgages (See Real estate loans and Residential mortgage loans) Mutual funds (See Investment companies) Mutual savings banks, 19, 29, 39, 44, 45, 52, 96 National banks, 22, 32, 96 National income, 70, 71 National security expenditures, 43, 70 Nonmember banks, 22, 24, 25, 32, 96 Open market transactions, 14 Par and nonpar banking offices, number, 97 Payrolls, manufacturing index, 64 Personal income, 71 Postal savings, 19, 25 Prices: Consumer and wholesale commodity, 64, 68 Security, 37 Prime rate, commercial banks, 34 Production, 60-63, 64 Profits, corporate, 50, 51 □ AUGUST 1971 Real estate loans: Banks, by classes, 24, 27, 39, 52 Delinquency rates on home mortgages, 54 Mortgage yields, 55 Type of holder and property mortgaged, 52, 53, 54, 55 Reserve position, basic, member banks, 8 Reserve requirements, member banks, 10 Reserves: Central banks and govts., 94 Commercial banks, 25, 28, 30 Federal Reserve Banks, 12 Member banks, 5, 6, 11, 18, 25 U.S. reserve assets, 77 Residential mortgage loans, 37, 52, 53, 54 Retail credit, 56 Retail sales, 64 Saving: Flow of funds series, 72 National income series, 71 Savings and loan assns., 40, 45, 53 Savings deposits (See Time deposits) Savings institutions, principal assets, 39, 40 Securities (See also U.S. Govt, securities): Federally sponsored agencies, 40, 41 International transactions, 86, 87 New issues, 47, 48, 49 Silver coin and silver certificates, 16 Special Drawing Rights, 4, 12, 13, 19, 74, 77 State and local govts.: Deposits, 25, 29 Holdings of U.S. Govt, securities, 44, 45 New security issues, 47, 48 Ownership of securities of, 24, 28, 39 Yields and prices of securities, 36, 37 State member banks, 22, 32, 96 Stock market credit, 38 Stocks: New issues, 48, 49 Yields and prices, 36, 37 Tax receipts, Federal, 43 Time deposits, 11, 18, 19, 20, 25, 29 Treasury cash, Treasury currency, 4, 5, 16, 19 Treasury deposits, 5, 12, 42 Treasury operating balance, 42 Unemployment, 66 U.S. balance of payments, 74 U.S. Govt, balances: Commercial bank holdings, 25, 29 Consolidated condition statement, 19 Member bank holdings, 18 Treasury deposits at Reserve Banks, 5, 12, 42 U.S. Govt, securities: Bank holdings, 19, 20, 24, 27, 39, 44, 45 Dealer transactions, positions, and financing, 46 Federal Reserve Bank holdings, 4, 12, 15, 44, 45 Foreign and international holdings, 12, 83, 86, 88 International transactions, 83, 86 New issues, gross proceeds, 48 Open market transactions, 14 Outstanding, by type of security, 44, 45, 47 Ownership of, 44, 45 Yields and prices, 36, 37 United States notes, 16 Utilities, production index, 61, 63, 64 Veterans Administration, 52, 53, 54, 55 Weekly reporting banks, 26 Yields (See Interest rates)
@FedFRASER