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A U G U S T 1977

FEDERAL RESERVE

BIJI ,F,TTN
i

D o m e s t ic F in a n c ia l D e v e lo p m e n t s in t h e S e c o n d




Q u a rter o f 1977

A c o p y o f th e F e d e r a l R e s e r v e B u l l e t in is s e n t to e a c h m e m b e r b a n k w ith o u t c h a r g e ; m e m b e r b a n k s d e s ir in g
a d d itio n a l c o p ie s m a y s e c u r e th e m a t a s p e c ia l $ 1 0 .0 0 a n n u a l r a te . T h e r e g u la r s u b s c r ip tio n p r ic e in th e
U n ite d S ta te s a n d its p o s s e s s io n s , a n d in B o liv ia , C a n a d a , C h ile , C o lo m b ia , C o s ta R ic a , C u b a , D o m in ic a n
R e p u b lic , E c u a d o r , G u a te m a la , H a iti, R e p u b lic o f H o n d u r a s , M e x ic o , N ic a ra g u a , P a n a m a , P a r a g u a y , P e r u ,
E l S a lv a d o r , U r u g u a y , a n d V e n e z u e la is $ 2 0 .0 0 p e r a n n u m o r $ 2 .0 0 p e r c o p y ; e ls e w h e r e , $ 2 4 .0 0 p e r a n n u m
o r $ 2 .5 0 p e r c o p y . G r o u p s u b s c r ip tio n s in th e U n ite d S ta te s f o r 10 o r m o re c o p ie s to o n e a d d re s s , $ 1 .7 5
p e r c o p y p e r m o n th , o r $ 1 8 .0 0 f o r 12 m o n th s .
T h e B u l l e t in m a y b e o b ta in e d f ro m th e D iv is io n o f A d m in is tr a tiv e S e r v ic e s , B o a r d o f G o v e r n o r s o f th e
F e d e ra l R e s e rv e S y s te m , W a s h in g to n , D .C . 2 0 5 5 1 , a n d r e m itta n c e s h o u ld b e m a d e p a y a b le to th e o r d e r
o f t h e B o a r d o f G o v e r n o r s o f t h e F e d e r a l R e s e r v e S y s t e m in a f o r m c o l l e c t i b l e a t p a r in U . S . c u r r e n c y .
(S ta m p s a n d c o u p o n s a re n o t a c c e p te d .)




NUM BER 8 □

V O L U M E 63 □

A U G U S T 1977

FEDERAL RESERVE

BULLETIN
B o a rd

W

o f

G o v e rn o rs

a s h in g to n ,

o f

th e

F e d e ra l

R e s e rv e

S y s te m

D . C .

P U B L IC A T IO N S

C O M M IT T E E

S tep h en H . A x ilro d □ J osep h R . C o y n e □ John M . D en k ler □ Janet O . Hart
John D . H a w k e , Jr. □ Ja m es L . K ic h lin e □ E d w in M . T ru m a n
R ichard H . P u ck ett, Staff D irecto r

The

F e d e ra l R e se rv e

c o m m itte e

is

B u l l e t in

re s p o n s ib le

is

iss u e d

fo r o p in io n s

m o n th ly

e x p re sse d

u n d e r th e

except

in

d ire c tio n

o ffic ia l

o f th e

s ta te m e n ts

s ta ff p u b lic a tio n s
and

s ig n e d

c o m m itte e .

a rtic le s .

D ire c tio n

T h is
fo r

th e a r t w o r k is p r o v id e d b y M a c k R . R o w e . E d ito r ia l s u p p o r t is f u r n i s h e d b y th e E c o n o m ic E d i ti n g U n it h e a d e d
b y E liz a b e th B .

S e tte .




Table of Contents
707

D o m e s tic F in a n c ia l D e v e lo p m e n t s
i n t h e S e c o n d Q u a r t e r o f 1977

b e d ir e c te d to w a r d m a in ta in in g a b o u t
th e p r e v a ilin g m o n e y m a r k e t c o n d i­
tio n s . T h e C o m m itte e s p e c ifie d a n a n ­

Q u a r te r ly r e p o r t to th e J o in t E c o ­
n o m ic C o m m itte e o f th e U . S . C o n g r e s s
h ig h lig h ts im p o r ta n t d e v e lo p m e n t s in
d o m e s tic fin a n c ia l m a r k e ts d u rin g th e
sp rin g a n d e a r ly su m m e r .

715

n u a l r a te o f g r o w th in a r a n g e o f 2Vi to
c e n t fo r M - 1 a n d o f 6 to 10 p e r
c e n t fo r M -2. T h e m e m b e r s o f th e

6V2 p e r

C o m m itte e a g r e e d th a t th e o p e r a tio n a l
o b je c t iv e fo r th e w e e k ly -a v e r a g e F e d ­
eral fu n d s ra te s h o u ld b e v a r ie d w ith in a
ra n g e o f 5V4 to 53A p e r c e n t.

S t a f f E c o n o m ic S t u d i e s
S u m m a r y o f “ T h e P e r fo r m a n c e o f
B a n k H o ld in g C o m p a n y -A ffilia te d F i­
n a n c e C o m p a n i e s ” p o in t s o u t t h a t ,
b a se d o n lim ite d d a ta , th e e n tr y o f
b a n k h o ld in g c o m p a n ie s in to th e c o n ­
su m er fin a n c e in d u s tr y d o e s n o t n e c e s ­
sa rily y ie ld n u m e r o u s p u b lic b e n e fits .

741

A m e n d m e n t t o R e g u la t io n V a n d
v a r io u s b a n k h o ld in g c o m p a n y a n d
b a n k m e r g e r o r d e r s.

765
717

of

R e g u la tio n

B

(E q u a l C r ed it O p p o r tu n ity ) p e r ta in s to
F e d e r a l o r S ta te s p e c ia l-p u r p o s e c r e d it
p ro g r a m s.
R e v is io n o f c o n s u m e r c r e d it d a ta .
D is c o n t in u a n c e b y B o a r d o f p u b lic a ­
tio n a n d c o n s t r u c tio n o f th e b a n k c r e d it
proxy.
C h a n g e s in B o a r d sta ff.

C h a ir m a n B u r n s , a g a in a p p e a r in g
P u b lic a tio n o f a r e v is e d lis t o f o v e r t h e -c o u n te r s t o c k s th a t a re s u b je c t to

b e fo r e th e H o u s e B a n k in g C o m m itte e ,
p r e s e n ts th e r e p o r t o f th e B o a r d o n th e
c o n d itio n o f th e n a tio n a l e c o n o m y a n d
th e c o u r s e o f m o n e ta r y p o li c y , J u ly
1977.

729

A n n o u n c e m e n ts
I n te r p r e ta tio n

S ta te m e n ts t o C o n g ress
A rth u r F . B u r n s , C h a ir m a n o f th e
B o a r d o f G o v e r n o r s , p r e s e n t s th e
v ie w s o f th e B o a r d o n H .R . 8094, th e
“ F e d e r a l R e s e r v e R e fo r m A c t o f
1977, ” in t e s t im o n y b e fo r e th e C o m ­
m itte e o n B a n k in g , F in a n c e a n d U r b a n
A ffa ir s, U . S . H o u s e o f R e p r e s e n ta ­
t iv e s , J u ly 26 , 1977.

721

L a w D e p a r tm e n t

R e c o r d o f P o lic y A c tio n s o f t h e
F e d e r a l O p en M a r k e t C o m m itte e
In th e m e e tin g h e ld o n J u n e 21 , 1977,
th e C o m m itte e d e c id e d th a t o p e r a tio n s
in th e p e r io d im m e d ia t e ly a h e a d sh o u ld




th e B o a r d ’s m a rg in r e q u ir e m e n ts .

29 ,

O n e S ta te b a n k a d m itte d to F e d e r a l
R e s e r v e m e m b e r s h ip .

767

I n d u s t r ia l P r o d u c tio n
In d u str ia l o u tp u t r o s e

0.5

p e r c e n t in

J u ly fo r th e s ix th m o n th ly in c r e a s e in a
row .

A

1

A3

F in a n c ia l a n d B u s in e s s S t a t i s t i c s

A 72

S t a f f ; F e d e r a l A d v is o r y C o u n c il

D o m e s tic F in a n c ia l S ta t is t ic s

A 46 D o m e s tic N o n fin a n c ia l S ta t is t ic s
A 54 In te r n a tio n a l S ta t is t ic s

A 73

A 69 G u i d e t o T a b u l a r P r e s e n t a t i o n
a n d S t a t is t ic a l R e le a s e s

A 74

A 70 B o a r d o f G o v e r n o r s a n d S t a f f




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

F ed era l R eserv e B anks a n d
B ranches

F ed era l R eserv e B o ard
P u b l ic a t io n s

A 76

I n d e x t o S t a t is t ic a l T a b l e s

A 78 M a p o f F e d e r a l R e s e r v e S y s t e m

Dom estic Financial Developm ents
in the Second Quarter of 1977
This report , which was sent to the Joint Eco­
nomic Committee o f the U.S. Congress , high­
lights the important developments in domestic
financial markets during the spring and early
summer.
T h e to ta l q u a n tity o f fu n d s r a is e d in d o m e s tic
c r e d it m a r k e ts r o s e su b s ta n tia lly d u rin g th e
s e c o n d q u a rter o f 1977, in a s s o c ia tio n w ith
c o n tin u e d v ig o r o u s e x p a n s io n o f a g g r e g a te
e c o n o m ic a c t iv it y , w ith a ll s e c t o r s e x c e p t th e
F e d e r a l G o v e r n m e n t in c r e a s in g th e ir fin a n c in g
d e m a n d s . A lt h o u g h t h e p a c e o f lo n g - t e r m
b o n d an d e q u ity fin a n c in g b y U . S . c o r p o r a ­
tio n s m o d e r a te d , a g r e a te r r e lia n c e o n sh o r t­
term b o r r o w in g le d to a n in c r e a s e in to ta l
c r e d it a d v a n c e d t o t h e s e fir m s. C o n su m e r
in s ta lm e n t c r e d it e x p a n d e d s o m e w h a t m o r e

ra p id ly th a n in th e fir s t q u a rter , a n d th e v o l­
u m e o f n e t m o r tg a g e b o r r o w in g r o s e s u b s ta n ­
tia lly to a n e w r e c o r d le v e l. In th e p u b lic
s e c t o r , lo n g -te r m b o n d o ffe r in g s b y S ta te a n d
lo c a l g o v e r n m e n ts r o s e fu r th e r fr o m th e p r e v i­
o u s r e c o r d le v e l in th e fir st q u a rter; o n th e
o th e r h a n d , T r e a su r y d e m a n d s o n c r e d it m a r­
k e ts w e r e sh a r p ly lo w e r , r e fle c tin g c a n c e lla ­
tio n o f th e p e r s o n a l ta x r e b a te a n d r e la te d
p a y m e n ts p r e v io u s ly s c h e d u le d , an d a
g r e a te r -th a n -s e a s o n a l r is e in F e d e r a l G o v e r n ­
m e n t ta x r e c e ip ts .
T h e rap id e x p a n s io n o f e c o n o m ic a c tiv ity
s in c e m id w in te r a ls o c o n tr ib u te d to a n in ­
c r e a s e in th e d e m a n d fo r m o n e y fo r tr a n s a c ­
tio n s p u r p o s e s . T h e n a r r o w ly d e fin e d m o n e y
s t o c k (M -1) in c r e a s e d a t a n 8.5 p e r c e n t a n n u a l
ra te d u rin g th e s e c o n d q u a r te r , c o n s id e r a b ly

In te re s t ra te s
P er cen t p er a n n u m
L O N G -T E R M

S H O R T -T E R M

NOTES:

Fed eral fu n d s

A aa utility
New issue

C o n v en tio n al
m ortgages
HUD

I

F.R . d isco u n t
rate
State and local
governm ent
T rea su ry bills
3-month




M o n th ly a v e r a g e s e x c e p t f o r
F .R . d is c o u n t r a te a n d c o n v e n ­
tio n a l m o rtg a g e s ( b a s e d o n q u o ta ­
tio n s fo r o n e d a y e a c h m o n th ).
Y i e ld s : U . S . T r e a s u r y b i ll s , m a r k e t
y ie ld s o n 3 -m o n th is s u e s ; p r im e
c o m m e rc ia l p a p e r , d e a le r o f fe r in g
r a te s ; c o n v e n tio n a l m o rtg a g e s , r a te s
o n f i r s t m o r t g a g e s in p r i m a r y m a r ­
k e ts , u n w e ig h te d a n d r o u n d e d to
n e a r e s t 5 b a s is p o in ts , fro m D e p t,
o f H o u s in g a n d U r b a n D e v e lo p m e n t;
A a a u t i l i t y b o n d s , w e i g h te d a v e r a g e s
o f n e w p u b l ic l y o f f e r e d b o n d s r a t e d
A a a , A a , a n d A b y M o o d y ’s I n v e s t o r s
S e rv ic e a n d a d ju s te d to A a a b a s is ;
U .S . G o v t, b o n d s , m a r k e t y ie ld s a d ­
ju s te d to 2 0 -y e a r c o n s ta n t m a tu r ity
b y U .S . T r e a s u r y ; S ta te a n d lo c a l
g o v t, b o n d s (2 0 is s u e s , m ix e d
q u a li t y ) , B o n d B u y e r .

708

Federal Reserve Bulletin □ August 1977

h ig h er th a n th e 4.2 p e r c e n t ra te o f g a in in th e
p r e v io u s q u a rter. I n f lo w s o f tim e a n d s a v in g s
d e p o s its t o c o m m e r c ia l b a n k s a n d th r ift in ­
s titu tio n s m o d e r a te d fu r th e r in th e s e c o n d
q u a rter, h o w e v e r , a s in t e r e s t - s e n s it iv e s a v e r s
a p p a r e n tly s h if t e d f u n d s t o m a r k e t in s tr u ­
m e n ts in r e s p o n s e t o r isin g y ie ld s . A s a r e s u lt,

a r o u n d 5% p e r c e n t . B y la t e M a y , o t h e r
sh o r t-te r m r a te s h a d in c r e a s e d b y r o u g h ly
sim ila r a m o u n ts . T h e F e d e r a l fu n d s ra te w a s
r e la tiv e ly s ta b le d u rin g th e r e s t o f M a y a n d
J u n e , an d sh o r t-te r m r a te s sh o w e d little
fu r th e r v a r ia tio n o v e r th e r e m a in d e r o f th e
q u a rter.

th e ra te o f e x p a n s io n o f th e b r o a d e r m e a s u r e s
o f th e m o n e y s t o c k s lo w e d . G r o w th o f M -2
d e c lin e d t o a s e a s o n a lly a d ju s te d a n n u a l ra te
o f 9.2 p e r c e n t fr o m 9.9 p e r c e n t th e th r e e
p r e v io u s m o n t h s , a n d M -3 g r e w a t a 10 p e r

term y ie ld s e d g e d s lig h tly lo w e r o n b a la n c e
o v e r th e q u a rter. L o n g -te r m c r e d it m a r k e ts
s h o w e d little r e s p o n s e to th e u p w a r d m o v e ­

c e n t a n n u a l ra te — d o w n fr o m a n
rate o f g a in in th e fir s t q u a r te r.

11.3

In c o n tr a s t to s h o r t-te r m r a te s , m o s t lo n g ­

m e n t in sh o r t-te r m r a te s , in p a rt b e c a u s e s o m e
o f th e m o v e m e n t in sh o r t-te r m r a te s a p p a r­
e n tly h a d a lr e a d y b e e n a n tic ip a te d in th e le v e l
o f lo n g -te r m y ie ld s . In a d d itio n , b u s in e s s c o r ­

per cen t

W ith th e e c o n o m y s h o w in g c o n s id e r a b le
stren g th a n d w ith th e A p r il g r o w th in M - l
su rgin g to a ra te w e ll a b o v e th e u p p e r lim it o f
th e lo n g er-ru n r a n g e s s e t b y th e F e d e r a l O p e n

p o r a t io n s a n d t h e U . S . G o v e r n m e n t b o t h
r e d u c e d th e ir d e m a n d s fo r lo n g -te r m fu n d s
s u b s t a n t i a l l y d u r in g t h e s e c o n d q u a r t e r .
L o n g -te r m r a te s a ls o m a y h a v e b e e n fa v o r a b ly
in flu e n c e d b y th e m o d e r a tio n in th e ra te o f in ­
fla tio n d u rin g th e sp r in g , fo llo w in g a p e r io d o f
e x c e p tio n a lly ra p id p r ic e in c r e a s e s la s t w in te r ,

M a rk et C o m m itte e , th e F e d e r a l R e s e r v e d id
n o t fu lly a c c o m m o d a te th e a s s o c ia t e d in c r e a s e
in d e m a n d s fo r b a n k r e s e r v e s . A c c o r d in g ly ,
th e in te r e st ra te o n F e d e r a l fu n d s (o v e r n ig h t
lo a n s o f im m e d ia t e ly a v a ila b le b a n k fu n d s )
r o s e a b o u t 60 b a s is p o in t s d u rin g th e la tte r p a rt
o f A p ril a n d th e fir s t h a lf o f M a y to a le v e l o f

a n d b y th e d e m o n s tr a te d w illin g n e s s o f th e
F e d e r a l R e s e r v e to m o v e p r o m p tly to re str a in
e x c e s s iv e l y ra p id m o n e ta r y g r o w th .

C h a n g e s in s e le c t e d m o n e ta r y a g g r e g a te s
P e r c e n t , s e a s o n a l ly a d j u s t e d a n n u a l r a t e s
1977

1976
I te m

1975

1976
Q3

Q4

Ql

Q2

M em ber b an k rese rv e s:
T o ta l ...............................
N o n b o r r o w e d .............

- .2
3 .2

1.0
1.2

2 .7
2 .6

4 .4
4 .8

2 .7
2 .6

3 .1
1.9

C o n c e p ts o f m o n e y :1
M -l
..................................
M - 2 ..................................
M -3 ..................................
M -4 .................................
M -5 ..................................

4 .4
8 .3
11.1
6 .5
9 .7

5 .6
10.8
12.8
7 .1
10.3

4 .4
9 .1
11.4
6 .0
9 .3

6 .5
12.5
14.4
9 .8
12.7

4 .2
9 .9
11.3
9 .3
10 .9

8 .5
9 .2
1 0 .0
8 .5
9 .4

T im e a n d s a v in g s d e ­
p o s it s a t c o m m e r ­
c ia l b a n k s :
T o ta l
(e x c lu d in g
la r g e C D ’s) -----S a v in g s ..........................
O t h e r tim e ..................

11 .7
17 .4
7 .8

15.2
2 5 .0
7 .7

12.8
13.8
11.7

17.1
2 4 .7
10.8

14 .0
2 1 .9
7.1

9 .8
7 .9
1 1 .6

T h r if t i n s t i t u t i o n s 2 ------

15.8

15.8

14.8

17.3

13.4

1 1.0

M e m o ( c h a n g e in b il­
lio n s o f d o l la r s ,
s e a s o n a lly
ad­
ju ste d ):
L a r g e C D ’s ..........................
U .S . G o v t, d e m a n d
d e p o s its
at
a ll
m em ber banks . . .




NOTES:
M f - l is c u r r e n c y p l u s p r i v a t e d e ­
m a n d d e p o s its a d ju s te d .
M - 2 is M - l p l u s b a n k t im e a n d
s a v in g s d e p o s it s a d j u s t e d o t h e r t h a n
la r g e C D ’s.
M - 3 is M -2 p lu s d e p o s i t s a t
m u tu a l s a v in g s b a n k s a n d s a v in g s
a n d lo a n a s s o c ia tio n s a n d c re d it
u n io n s h a re s .
M - 4 is M -2 p l u s l a r g e n e g o ti a b le
C D ’s.
M -5 is M -3 p l u s l a r g e n e g o ti a b le
C D ’s .
f
2S a v i n g s a n d l o a n a s s o c i a t i o n s ,
m u tu a l s a v in g s b a n k s , a n d c r e d it
u n io n s.

- 5 .3

- 1 9 .2

- .2

.3

- 4 .3

.6

- 3 .1

.1

.3

- .3

- .8

.4

N o t e .— C h a n g e s a r e c a l c u l a t e d
fro m th e a v e ra g e a m o u n ts o u ts ta n d ­
in g in e a c h q u a r t e r . A n n u a l r a t e s o f
c h a n g e in r e s e r v e m e a s u r e s h a v e
b e e n a d ju s te d f o r c h a n g e s in r e s e r v e
re q u ir e m e n ts .

D o m e s tic F in a n cia l D e v e lo p m e n ts , Q2 1977

M O N E T A R Y
A N D

B A N K

A lth o u g h th e s e c o n d q u a r te r in c r e a s e in th e
n a r r o w m o n e y s t o c k w a s th e f a s t e s t fo r a n y
q u a rter s in c e 1972, it w a s s till s u b s ta n tia lly

A G G R E G A T E S
C R E D IT

M - l e x p a n d e d m u c h m o r e r a p id ly d u rin g th e
s e c o n d q u a rter th a n in th e th r e e p r e v io u s
m o n t h s , p r im a r ily r e f le c t in g a n a n n u a liz e d
g r o w th rate o f n e a r ly 20 p e r c e n t in th e m o n th
o f A p ril. T h e A p ril b u lg e m a y h a v e ste m m e d
in p a r t f r o m t r a n s it o r y f a c t o r s — in c lu d in g
e a r lie r -th a n -n o r m a l d is tr ib u tio n o f s o c ia l s e c u ­
rity c h e c k s an d u n u s u a lly la r g e p e r s o n a l in ­
c o m e ta x p a y m e n t s — b u t it a ls o a p p e a r s to
h a v e r e f l e c t e d i n c r e a s in g t r a n s a c t io n s d e ­
m a n d s g e n e r a te d b y th e q u ic k e n e d p a c e o f
e c o n o m ic e x p a n s io n in th e fir st q u a rter. In
r e c e n t y e a r s , la r g e s u d d e n in c r e a s e s in M - 1
g e n e r a lly h a v e b e e n f o llo w e d b y m u c h sm a lle r
g r o w th r a te s in th e s u b s e q u e n t m o n th o r t w o .
T h is w a s tru e a ls o in th e p e r io d fo llo w in g th e
A p ril b u lg e , a lth o u g h M -\ g r o w th in M a y a n d
J u n e still a v e r a g e d 2.6 p e r c e n t.
C h a n g e s in in c o m e v e lo c ity o f

M -l

709

and

M -2

le s s th a n th e ra te o f in c r e a s e in g r o s s n a tio n a l
p r o d u c t (G N P ). I n d e e d , th e in c o m e v e lo c i t y o f
M - l — th a t is , th e r a tio o f G N P to M - 1— r o s e a t
th e r e la tiv e ly b r is k r a te o f a r o u n d 5 p e r c e n t
d u rin g th e s e c o n d q u a r te r , f o llo w in g a n e v e n
g r e a te r in c r e a s e o f 8 p e r c e n t in th e p r e v io u s
q u a rter.
D e s p it e th e m a r k e d a c c e le r a tio n in M - l ,
g r o w th o f th e b r o a d e r m o n e ta r y a g g r e g a te s
d u rin g th e s e c o n d q u a rter w a s s o m e w h a t le s s
th a n th e p a c e o f th e fir s t q u a r te r . T h e
in t e r e s t - b e a r in g c o m p o n e n t s o f A f- 2 — tim e
a n d s a v in g s d e p o s it s , o th e r th a n n e g o tia b le
c e r tific a te s o f d e p o s it ( C D ’s) a t w e e k ly r e p o r t­
in g b a n k s — g r e w a t a 9.8 p e r c e n t a n n u a l r a te ,
a s c o m p a r e d w ith 14 p e r c e n t in th e fir st
q u a rter. T o ta l d e p o s it s a t s a v in g s a n d lo a n
a s s o c ia t io n s , m u tu a l s a v in g s b a n k s , a n d c r e d it
u n io n s — in c lu d e d in M - 3— r o s e a t a n 11 p e r
c e n t ra te in th e s e c o n d q u a r te r , s o m e w h a t le s s
th a n th e 13.4 p e r c e n t p a c e o f th e fir st.
A t c o m m e r c ia l b a n k s , th e s la c k e n in g o f
in te r e st-b e a r in g d e p o s it in f lo w s w a s d u e to a
f a ll-o f f o f sa v in g s d e p o s it g r o w th . S a v in g s
f lo w s w e a k e n e d e a c h m o n th d u r in g th e q u a r­
te r , c o n tin u in g a tr e n d th a t h a d b e g u n in
J a n u a ry . In M a y a n d J u n e th e r e w e r e n e t
w ith d r a w a ls fr o m s a v in g s a c c o u n t s o f S ta te
an d lo c a l g o v e r n m e n t s , a n d in f lo w s to sa v in g s
a c c o u n ts o f in d iv id u a ls , n o n p r o fit o r g a n iz a ­
tio n s , a n d b u s in e s s e s s h o w e d a sh a rp d e c e le r ­
a tio n . T h e a b a te m e n t o f s a v in g s d e p o s it in ­
f lo w s a p p a r e n tly w a s a s s o c ia t e d w ith r isin g
s h o r t -te r m m a r k e t i n t e r e s t r a t e s ; in t e r e s t s e n s itiv e d e p o s it o r s — e s p e c ia lly th e la r g e d e ­
p o s ito r s w h o h a v e e a s y a c c e s s to a lte r n a tiv e
m o n e y m a r k e t in v e s t m e n t s — w e r e a ttr a c te d
b y th e h ig h e r y ie ld s a v a ila b le o n T r e a su r y
b ills , c o m m e r c ia l p a p e r , C D ’s , a n d o th e r m a r­
k e t in s tr u m e n ts.
In c o n tr a s t to s a v in g s d e p o s it f l o w s , th e
g r o w th o f tim e d e p o s it s a t c o m m e r c ia l b a n k s
a c c e l e r a t e d in t h e s e c o n d q u a r te r . S m a ll-

D a ta a re a t s e a s o n a lly a d ju s te d a n n u a l r a te s o f g ro w th .
M o n e y s to c k d a ta a re q u a rte rly a v e ra g e s .




d e n o m in a tio n tim e d e p o s i t s , w h o s e c e ilin g
r a te s r e m a in e d s u b s ta n tia lly a b o v e y ie ld s o n

710 Federal Reserve Bulletin □ August 1977

m a rk et in s tr u m e n ts o f c o m p a r a b le m a tu r ity ,
r o s e a t a 14.2 p e r c e n t a n n u a l r a te , c o m p a r e d
w ith 7.9 p e r c e n t in th e fir st q u a rter. L a r g e d e n o m in a t io n t im e d e p o s i t s , in c lu d in g a ll
n e g o tia b le a n d n o n n e g o tia b le la r g e C D ’s , g r e w
s lig h tly in th e s e c o n d q u a rter a fte r a sm a ll
d e c lin e in th e fir st. T h e in c r e a s e in la r g e tim e
d e p o s its w a s e s p e c ia lly str o n g la te in th e q u a r­
ter; b a n k s in c r e a s e d th e ir r e lia n c e o n t h e s e
lia b ilitie s to su p p o r t th e su b s ta n tia l p a c e o f
b a n k c r e d it e x p a n s io n w h ile r e d u c in g th e ra te
o f g r o w th o f fu n d s r a is e d th r o u g h n e t F e d e r a l
fu n d s p u r c h a s e s a n d s e c u r itie s s o ld u n d e r r e ­
p u r c h a se a g r e e m e n t s .

C o m p o n e n ts o f

M a jo r c a te g o rie s o f

b a n k c re d it

b a n k lo a n s

Change, billions of dollars

B U S IN E S S

C R E D IT

B u s in e s s e s in c r e a s e d th e ir sh o r t-te r m b o r r o w ­
in g fr o m b a n k s a n d in th e c o m m e r c ia l p a p e r
m a r k e ts d u rin g th e s e c o n d q u a rter fr o m th e
a lr e a d y a d v a n c e d p a c e o f th e th r e e p r e v io u s
m o n th s . E x c lu d in g c o m m e r c ia l b a n k h o ld in g s
o f b a n k e r s a c c e p t a n c e s , b a n k lo a n s to b u s i­
n e s s e s g r e w a t a 12.5 p e r c e n t a n n u a l r a te ,
n e a r ly m a tc h in g th e 13 p e r c e n t p a c e o f th e
fir st q u a rter. E x p a n s io n o f b u s in e s s lo a n s a t
la rg e b a n k s p ic k e d u p d u rin g th e q u a rter —
w ith th e str e n g th b r o a d ly d is tr ib u te d a c r o s s
c o m m e r c ia l a n d in d u s tr ia l b o r r o w e r s — a n d
lo a n s m a d e b y sm a ll b a n k s c o n tin u e d to g r o w
r a p id ly . In r e s p o n s e to e a r lie r in c r e a s e s in
sh o r t-te r m o p e n m a r k e t in t e r e s t r a te s , m o s t
b a n k s r a is e d th e r a te c h a r g e d o n sh o r t-te r m
lo a n s to p rim e b u s in e s s b o r r o w e r s in M a y to

63A

R E A L ESTATE

O THE R SE CU RITIE
ITIE S _

rn

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p e r c e n t in t w o s t e p s o f Va o f a p e r c e n ta g e
p o in t e a c h . D e s p i t e t h e s e i n c r e a s e s , t h e
sp r e a d o f th e p r im e r a te o v e r c o m m e r c ia l
p a p er r a te s n a r r o w e d s lig h tly o v e r th e q u a rter.
In a d d itio n to th e c o n tin u in g g r o w th in b a n k
lo a n s to b u s i n e s s e s , c o m m e r c ia l p a p e r is s u e d

i

TO TA L LOANS

p gfinn.nm;
112

b y n o n fin a n c ia l c o r p o r a tio n s in c r e a s e d $ 2.1
b illio n in th e s e c o n d q u a r te r , th e la r g e s t s e a ­
s o n a lly a d ju s te d q u a r te r ly g a in s in c e th e su m ­
m er o f 1974. A s a r e s u lt, sh o r t-te r m b u s in e s s
c r e d it — b u s i n e s s lo a n s a t b a n k s e x c lu d in g
b a n k h o ld in g s o f b a n k e r s a c c e p ta n c e s p lu s

N O N B A N K F IN A N C IA L

8

E 4

I +

4

I
Q2

Q3

Q4

Ql

1976

Q2
77

0

L-I ' t— ^ ------I

u
■

■
Q2

■
Q3

■
Q4

■
Ql

1976

0

I

B u s in e s s lo a n s a n d sh o r t-te r m b u s in e s s c r e d it
S e a s o n a lly a d ju s te d c h a n g e s a t a n n u a l p e rc e n ta g e ra te s

Q2
B u s in e s s lo a n s

77

S e a s o n a l l y a d ju s t e d . T o t a l l o a n s a n d b u s i n e s s l o a n s a d j u s t e d
f o r tr a n s f e r b e tw e e n b a n k s a n d th e ir h o ld in g c o m p a n ie s ,
a f f i li a te s , s u b s id i a r i e s , o r f o r e i g n b r a n c h e s .

P e r io d
T o ta l1

T o ta l lo a n s a n d in v e s t m e n t s a t a ll c o m m e r ­
c ia l b a n k s r o s e a t a n 11.2 p e r c e n t a n n u a l ra te
in th e s e c o n d q u a r te r , s o m e w h a t fa s te r th a n in
th e fir st q u a rter. B a n k a c q u is itio n s o f ta x e x e m p t a n d G o v e r n m e n t a g e n c y s e c u r it ie s
p ic k e d u p c o n s id e r a b ly , b u t n e t p u r c h a s e s o f
T r e a su r y is s u e s d e c lin e d m a r k e d ly fr o m a h ig h
first-q u a rter p a c e . B o ls t e r e d b y a n e a r -r e c o r d
in c r e a s e in r ea l e s t a t e lo a n s a s w e ll a s b y
str en g th in th e b u s in e s s a n d c o n s u m e r lo a n
c a te g o r ie s , to ta l b a n k lo a n s r o s e a t a n
c e n t a n n u a l r a te .




11.5 p e r

E x c l u d in g
b a n k h o l d in g s
o f b a n k e rs
a c c e p ta n c e s

C o lu m n 2
p lu s
n o n f in a n c ia l
com pany
c o m m e rc ia l
p a p e r2

....
....
....

0)
- 5 .1
- 8 .7
- 3 .1
.7

(2 )
- 6 .8
- 9 .0
- 3 .5
- 3 .3

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

1976— Q l
Q2
Q3
Q4

....
....
....
....

- 6 .7
1. 4
3. 9
1 2 .0

- 4 .8
2. 2
1. 1
8 .2

- 2 .9
6. 4
- 1 .7
9 .6

1977— Q l
Q2

....
....

8. 1
1 1 .9

1 3 .0
12 .5

13.1
1 5 .8

1975— Q l
Q2
Q3
Q4

rA t a ll c o m m e r c i a l b a n k s b a s e d o n l a s t - W e d n e s d a y - o f - m o n t h
d a t a , a d j u s t e d f o r o u t s t a n d i n g a m o u n t s o f l o a n s s o ld t o a f f i li a te s .
2S h o r t - t e r m b u s i n e s s c r e d i t is b u s i n e s s l o a n s e x c lu d i n g b a n k
h o ld in g s o f b a n k e r s a c c e p t a n c e s p l u s n o n f in a n c ia l c o m p a n y c o m ­
m e r c ia l p a p e r m e a s u r e d f r o m e n d o f m o n th t o e n d o f m o n th .

D o m e s tic F in a n cia l D e v e lo p m e n ts , Q2 1977

G r o s s o ffe r in g s o f n e w s e c u r ity is s u e s

P r iv a te p la c e m e n ts o f b o n d s r e m a in e d s u b ­
sta n tia l, a lth o u g h b e lo w th e r e c o r d v o lu m e s o f
th e s e c o n d h a lf o f 1976, a s m a n y s m a lle r a n d
lo w e r - r a t e d fir m s c o n t i n u e d to r e s t r u c tu r e
b a la n c e s h e e t s .
P u b lic b o n d fin a n c in g b y u tilitie s c o n tin u e d
a t a h ig h le v e l a n d a c c o u n te d fo r m o r e th a n 40
p e r c e n t o f p u b lic is s u e s d u rin g th e s e c o n d
q u a rter. F in a n c ia l c o n c e r n s s te p p e d u p lo n g ­
te rm b o r r o w in g d u r in g th e p e r io d . In a d d itio n

B illio n s o f d o l la r s , s e a s o n a l l y a d j u s t e d a n n u a l r a t e s
1976

1977

T y p e o f is s u e
Q2
C o r p o r a te s e c u r itie s — to ta l

| Q3

j Q4

Ql

| "Q 2

____

52

56

53

46

41

Bonds
.................................................
P u b l ic l y o f f e r e d ........................
P r iv a t e ly p l a c e d ........................
S t o c k s ..................................................

41
27
14
11

47
26
21
9

43
26
17
10

36
23
13
10

32
19
13
9

.............................

13

13

9

4

13

S t a t e a n d l o c a l g o v t , b o n d s ____

35

36

36

43

52

F o re ig n s e c u r itie s

‘’E s t i m a t e d .

c o m m e r c ia l p a p e r — g r e w a t a su b s ta n tia l 15.8
p e r c e n t a n n u a l r a te in th e s e c o n d q u a rter, a n d
a t a 14.5 p e r c e n t ra te fo r th e fir st h a lf o f 1977.
M o r e o v e r , fin a n c e c o m p a n ie s a p p e a r to h a v e
p r o v id e d c o n s id e r a b le a m o u n ts o f c r e d it to
c o m m e r c ia l a n d in d u s tr ia l c o n c e r n s —
p rim a rily fo r p u r c h a s e s o f a u to s a n d c o m m e r ­
c ia l v e h ic le s o r fo r su p p o r tin g d e a le r in v e n ­
to r ie s o f t h e s e p r o d u c ts . N e t c r e d it e x t e n s io n s
to b u s in e s s e s b y t h e s e le n d e r s a v e r a g e d $800
m illio n p e r m o n th o n a s e a s o n a lly a d ju s te d
b a s is in th e fir s t 6 m o n th s o f th e y e a r , a s
c o m p a r e d w it h
m o n th s o f 1976.

$400

m i ll io n in t h e l a s t

3

T h e a d v a n c in g p a c e o f sh o r t-te r m b u s in e s s
c r e d it e x p a n s io n e x t e n d e d a p a tte r n th a t h a d
e m e r g e d in th e fin a l q u a r te r o f 1976. W ith
c a p ita l e x p e n d it u r e s — e s p e c i a l l y in v e n t o r y
in v e s tm e n t— r isin g m o r e r a p id ly th a n in te rn a l
s o u r c e s o f fu n d s , n o n fin a n c ia l c o r p o r a tio n s
h a v e r e lie d m o r e h e a v ily o n e x te r n a l b o r r o w ­
in g in th e la s t th r e e q u a r te r s. F u r th e r m o r e ,
a fter a le n g th y p e r io d o f h e a v y r e lia n c e o n
lo n g -te r m is s u e s to r e s t r u c tu r e b a la n c e
s h e e t s — to r e p a y sh o r t-te r m d e b t a n d in c r e a s e
liq u id a s s e t s — th e liq u id ity p o s itio n s o f th e s e
c o r p o r a tio n s h a v e a p p a r e n tly im p r o v e d to th e
p o in t w h e r e th e y a re n o w r e tu r n in g to sh o r t­
term m a r k e ts to m e e t a la r g e r p a rt o f th eir
in

p a r t,

to s e v e r a l la r g e b a n k h o ld in g c o m p a n y is s u e s ,
a f e w W e s t C o a s t s a v in g s a n d lo a n a s s o c ia ­
tio n s m a r k e t e d m o r t g a g e - b a c k e d b o n d s t o
su p p o r t r e c o r d m o r tg a g e le n d in g , a n d fin a n c e
c o m p a n ie s in c r e a s e d b o r r o w in g to h e lp a c ­
c o m m o d a te str o n g d e m a n d fo r a u to a n d c o n ­
s u m e r c r e d it . F o r e ig n b o n d i s s u e s in t h e
d o m e s tic c a p ita l m a r k e ts a ls o in c r e a s e d d u rin g
th e q u a rter, a s th e I n te r n a tio n a l B a n k fo r
R e c o n s tr u c tio n a n d D e v e lo p m e n t c o m p le te d a
s iz a b le fin a n c in g .
T h e lig h t v o lu m e o f to ta l n e w b o n d is s u e s
c o n tr ib u te d to a d e c lin e in c o r p o r a te b o n d
y ie ld s d u rin g th e s e c o n d q u a rter. T h e F e d e r a l
R e s e r v e in d e x o f n e w A a a -r a te d u tility b o n d
y ie ld s , w h ic h h a d c lo s e d th e fir st q u a rter at
8.22 p e r c e n t, d e c lin e d to 8.07 p e r c e n t a t th e
en d o f th e s e c o n d q u a r te r . A t th is le v e l it
e x c e e d e d b y le s s th a n 20 b a s is p o in ts th e
3-y e a r lo w r e a c h e d in e a r ly J a n u a ry 1977.
S to c k p r ic e p e r fo r m a n c e w a s m ix e d d u rin g
th e s e c o n d q u a rter. T h e N e w Y o r k S to c k
E x c h a n g e ( N Y S E ) c o m p o s it e in d e x s h o w e d
little n e t m o v e m e n t a n d r e m a in e d b e lo w its
le v e l a t th e e n d o f 1976. A d r o p in p r ic e o f a
n u m b er o f h ig h ly c a p it a liz e d s t o c k s th a t h a d
ca rried h ig h p r ic e /e a r n in g s r a tio s a c c o u n te d
fo r m u c h o f th e n e t d e c lin e in th e N Y S E in d e x
d u rin g th e fir st h a lf o f 1977. In c o n tr a s t, b o th
th e A m e r ic a n S t o c k E x c h a n g e in d e x a n d th e
N a t io n a l A s s o c i a t io n o f S e c u r it ie s D e a le r s
A u to m a te d

e x te r n a l fin a n c in g n e e d s .
R e fle c t in g ,

th e se

711

im p r o v e d

b a la n c e - s h e e t c o n d it io n s , g r o s s b o n d an d

Q u o t a tio n s

o v e r -th e -c o u n te r

in d e x — w h ic h r e fle c t th e s t o c k p r ic e p e r fo r m ­
a n c e o f g e n e r a l l y s m a lle r c o r p o r a t i o n s —

e q u it y fin a n c in g b y U . S . c o r p o r a t io n s d e ­

in c r e a s e d d u rin g th e s e c o n d q u a rter to th eir

c lin e d to a s e a s o n a lly a d ju s te d a n n u a l r a te o f

h ig h e s t le v e ls s in c e e a r ly 1973. N e w c o r p o r a te
s t o c k o ffe r in g s c o n tin u e d a t th e sa m e m o d e r ­

$41 b i l l i o n d u r in g t h e s e c o n d q u a r t e r o f
1977— th e s m a lle s t to ta l s in c e th e th ird q u a rter
o f 1974. M u c h o f th e r e c e n t d e c lin e w a s in
p u b lic b o n d is s u e s b y in d u str ia l c o r p o r a tio n s .




a te p a c e a s in r e c e n t q u a r te r s. P u b lic u tilitie s
a g a in a c c o u n te d fo r th e m a jo rity o f n e w i s ­
s u e s , a s th e y h a v e s in c e m id - 1976.

712

Federal Reserve Bulletin □ August 1977

G O V E R N M E N T

b illio n , e n a b lin g th e T r e a su r y to r e d u c e its

S E C U R IT IE S

o u ts ta n d in g d e b t a n d to in c r e a s e its c a s h b a l­
In th e m u n ic ip a l s e c u r itie s m a r k e t, g r o s s b o n d
is s u a n c e b y S ta te a n d lo c a l g o v e r n m e n t s w a s
at a r e c o r d s e a s o n a lly a d ju s te d a n n u a l r a te 1o f
$52 b illio n d u rin g th e s e c o n d q u a rter. A s d u r­
in g th e p r e c e d in g q u a r te r , a b o u t 20 p e r c e n t o f
th is v o lu m e r e p r e s e n t e d a d v a n c e r e fu n d in g s o f
o u ts ta n d in g h ig h e r -c o u p o n is s u e s .
D e s p it e th e r e c o r d v o lu m e , ta x -e x e m p t
y ie ld s d e c lin e d a s n e w is s u e s w e r e r e a d ily
a b s o r b e d b y p r o p e r ty - c a s u a lt y in s u r a n c e
c o m p a n ie s , c o m m e r c ia l b a n k s , a n d m u n ic ip a l
b o n d fu n d s . T h e Bond Buyer in d e x o f m u n ic i­
p a l y ie ld s c lo s e d th e q u a r te r a t 5.56 p e r c e n t,
n ea r its lo w e s t le v e l in 3 y e a r s . Y ie ld s o n
h ig h er-ra ted is s u e s f e ll s lig h tly o v e r th e q u a r­
te r , a n d m u c h o f th e d e c lin e in th e in d e x w a s

a n c e . T h e T r e a s u r y c o n tin u e d to p u r su e a
f in a n c in g p o l i c y d e s i g n e d t o le n g t h e n th e
m a tu r ity str u c tu r e o f its d e b t b y p a y in g d o w n

a ttrib u ta b le to a g e n e r a l n a r r o w in g o f r a te
sp r e a d s b e t w e e n h ig h e r - a n d lo w e r -r a te d i s ­
s u e s . S u c h r a te sp r e a d s h a v e d e c lin e d s ig n ifi­
c a n tly s in c e la s t fa ll a s a r e s u lt o f th e g e n e r a l

h o u sin g -r e la te d a g e n c ie s a s th e F e d e r a l N a ­
tio n a l M o r tg a g e A s s o c ia t io n (F N M A ) a n d th e
F e d e r a l H o m e L o a n B a n k S y s t e m , w h ic h

$ 9.2 b illio n in b ills w h ile in c r e a s in g o u ts ta n d ­
in g m a r k e ta b le n o t e s a n d b o n d s b y $ 5.1 b il­
lio n . T h is $ 4.1 b illio n n e t r e p a y m e n t o f m a r k e t­
a b le o b lig a tio n s w a s o f f s e t in p a r t b y s a v in g s
b o n d s a le s a n d b y th e is s u a n c e o f n o n m a r k e t­
a b le se c u r itie s to S ta te a n d lo c a l g o v e r n m e n ts
e n g a g e d in a d v a n c e r e fu n d in g o p e r a tio n s . A t
th e sa m e tim e th e le v e l o f T r e a su r y d e b t w a s
d e c lin in g d u rin g th e s e c o n d q u a r te r , o u ts ta n d ­
in g o b lig a tio n s o f F e d e r a lly s p o n s o r e d a g e n ­
c ie s in c r e a s e d b y $ 2.5 b illio n — th e la r g e s t in ­
c r e a s e s in c e th e fin a l q u a r te r o f 1974. T h is r is e
in n e t b o r r o w in g w a s a ttr ib u ta b le to s u c h

w e r e e x p a n d in g th e ir su p p o r t o f th e m o r tg a g e
m a rk et.

im p r o v e m e n t in S ta t e a n d lo c a l fin a n c ia l p o s i­
tio n s an d r e c e n t c o u r t d e c is io n s r ea ffirm in g
th e righ ts o f b o n d h o ld e r s .
W ith th e s c h e d u le d ta x r e b a te s a n d a s ­
s o c ia te d p a y m e n ts c a n c e lle d , a la r g e v o lu m e
o f ta x r e c e ip ts p e r m itte d th e T r e a su r y to m a k e
fe w e r d e m a n d s o n c r e d it m a r k e ts in th e s e c ­
o n d q u arter. O n a s e a s o n a lly u n a d ju ste d b a s is
th e F e d e r a l b u d g e t w a s in su r p lu s b y $ 8.6

T he F ed eral R eserv e S y stem w as a n et
p u r c h a se r o f $ 2.1 b illio n in T r e a su r y b ills a n d
$ 1.0 b illio n in T r e a s u r y c o u p o n is s u e s in th e
c o u r s e o f p r o v id in g r e s e r v e s to th e b a n k in g
s y s te m d u rin g th e s e c o n d q u a rter. In a d d itio n ,
th e F e d e r a l R e s e r v e a c q u ir e d a n e t $ 0.7 b illio n
in F e d e r a l a g e n c y o b lig a tio n s d u rin g th e q u a r­
te r .

F e d e r a l G o v e r n m e n t b o r r o w in g a n d c a s h b a la n c e
Q u a r t e r l y t o t a l s , in b i ll io n s o f d o l l a r s , n o t s e a s o n a l l y a d j u s t e d
197 6

1977

I te m

T r e a s u r y f in a n c in g :
B u d g e t s u r p l u s , o r d e f i c it (— ) . . .
O f f - b u d g e t d e f i c i t 1 ................................
N e t c a s h b o r r o w in g s , o r
r e p a y m e n t s ( - ) ..................................
O t h e r m e a n s o f f i n a n c i n g 2 .............
C h a n g e in c a s h b a l a n c e
...................
F e d e ra lly s p o n s o re d c re d it a g e n ­
c i e s , n e t c a s h b o r r o w i n g s 3 ____

Ql

Q2

Q3

Q4

Ql

eQ 2

- 2 2 .8
- 3 .7

2 .0
- .6

- 1 3 .0
- 1 .8

- 2 2 .8
.4

- 1 8 .7
- 4 .3

8 .6
.1

2 4 .1
2 .0
- .4

9 .4
- 4 .0
6 .8

1 8 .0
- .7
2 .6

17 .4
- .8
- 5 .7

1 7 .6
2 .7
- 2 .6

- 1 .1
- .4
7 .2

.3

.5

1 .7

.4

.7

2 .5

i n c l u d e s o u t l a y s o f t h e P e n s i o n B e n e f it G u a r a n t y C o r p o r a t i o n , P o s t a l S e r v ic e F u n d , R u r a l E l e c t r i f i c a t i o n a n d T e l e p h o n e R e v o l v in g
F u n d , R u r a l T e l e p h o n e B a n k , H o u s i n g f o r t h e E l d e r l y o r H a n d i c a p p e d F u n d , a n d F e d e r a l F i n a n c i n g B a n k . A ll d a t a h a v e b e e n
a d j u s t e d t o r e f l e c t t h e r e t u r n o f t h e E x p o r t - I m p o r t B a n k t o t h e u n i f i e d b u d g e t.
‘C h e c k s is s u e d le s s c h e c k s p a id , a c c r u e d ite m s , a n d o th e r tra n s a c tio n s .
i n c l u d e s d e b t o f th e F e d e ra l H o m e L o a n M o rtg a g e C o r p o r a tio n , F e d e ra l h o m e lo a n b a n k s , F e d e ra l la n d b a n k s , F e d e ra l in te r ­
m e d i a te c r e d i t b a n k s , b a n k s f o r c o o p e r a t i v e s , a n d F e d e r a l N a t i o n a l M o r t g a g e A s s o c i a t i o n ( in c l u d in g d i s c o u n t n o t e s a n d s e c u r i ti e s
g u a r a n t e e d b y t h e G o v e r n m e n t N a t i o n a l M o r t g a g e A s s o c ia t io n ) .
^ E s tim a te d .




D om estic Financial D evelopm ents , Q2 1977

M ORTGAGE A N D
C O N S U M E R C R E D IT

Deposits Savings and loans
Annual rate of change, per cent

Net mortgage lending rose sharply to a record
$126 billion seasonally adjusted annual rate
during the second quarter, following more
moderate growth during the harsh winter
weather of the first quarter. One- to four-family
residential mortgages continued to dominate
mortgage lending, accounting for more than 90
per cent of the residential component and for
about three-fourths of total mortgage debt
formation. Mortgage lending on commercial
properties also expanded somewhat, whereas
loans secured by multifamily residential struc­
tures remained relatively weak.
Net change in mortgage debt outstanding
Billions of dollars, seasonally adjusted annual rates
1977

1976
Change—

Qi|

Q3

Q4

Q,||*Q2

By type of debt:
Total .......................................... 75
Residential ................................ 59
Other1 ........................................ 16

91
71
20

102
79
23

108
85
23

126
100
26

By type of holder:
Commercial banks ..................
Savings and lo a n s ....................
Mutual savings banks ............
Life insurance com p an ies----FNMA-GNMA ......................
Other2 ........................................

15
47
4
2
-1
24

14
52
5
3
-5
33

17
48
4
2
(*)
37

23
57
4
5
8
29

13
43
4
(*)
-6
21

includes commercial and other nonresidential as well as farm
properties.
includes net changes in mortgage-backed securities guaranteed
by the Government National Mortgage Association, Federal Home
Loan Mortgage Corporation, or Farmers Home Administration,
some of which may have been purchased by the institutions shown
separately.
pEstimated.
♦Less than $500 million.

Savings and loan associations again ac­
counted for alm ost one-half of total net
mortgage lending in the second quarter, as
they increased their mortgage holdings by a
record amount. At the same time, deposits at
these institutions grew at a 12.3 per cent
annual rate—the slowest rate of expansion
since 1974. In order to meet the heavy demand
for home loans, savings and loan associations
curtailed their acquisition of liquid assets and
borrowed moderately from home loan banks
and other sources. Nevertheless, aggregate
liquidity ratios at insured associations re­
mained at historically high levels.



713

—

16

8

1 1. 1 I__LJ___
Q2

Q3

Q4

Ql

Q2

—o

1976________ 77
Seasonally adjusted. Quarterly averages at annual rates.

Among other major lenders, commercial
banks supplied almost 20 per cent of total net
mortgage funds during the second quarter,
increasing their holdings at a record $23 billion
seasonally adjusted annual rate. Mortgage ac­
quisitions by life insurance companies also
increased somewhat during the quarter—
reflecting primarily lending on commercial
properties—but remained well below the rec­
ord levels of 1973-74. Net mortgage acquisi­
tions by FNMA picked up substantially, as a
rise in mortgage interest rates since March
made the purchase price on outstanding
4-month FNMA purchase commitments at­
tractive to mortgage originators possessing
such FNMA commitments.
Reflecting heavy credit demands in the face
of moderating savings flows, average interest
rates on conventional new-home mortgages
increased by about 15 basis points during the
second quarter to 9.00 per cent at the end of
June. However, secondary market yields on
Government National Mortgage Association
Net change in
consumer instalment debt outstanding
Billions of dollars, seasonally adjusted annual rates
1976

1977

Change
By type of debit:
Total
Automobile
Other
By type of holder:
Commercial banks
Finance companies
Credit unions
Retail firms
Other

Estimated.

Q2

Q3

Q4

Ql

*Q2

21
11
10

19
9
10

24
10
14

27
12
15

31
14
17

11
2
6
1
1

10
2
5
1
1

12
3
5
2
1

12
6
7
1
1

14
6
7
2
1

714

Federal Reserve Bulletin □ August 1977

(GNMA)-guaranteed, mortgage-backed se­
curities—which had risen by 50 basis points
during the first quarter—eased slightly during
the second quarter, ending the period at 7.90
per cent. In response to the earlier increase in
yields on Government-underwritten mort­
gages in the secondary market, the ceiling
rate on mortgages insured by the Federal
Housing Administration or guaranteed by the
Veterans Administration was raised by ad­
ministrative action from 8 to SV2 per cent,
effective May 31.




Consumer instalment credit outstanding is
estimated to have expanded at a record sea­
sonally adjusted annual rate of $31 billion
during the second quarter. Automobile credit
continued to account for more than 40 per cent
of the total net increase, as a high level of auto
sales paced the over-all strength in secondquarter consumer spending. The recent trend
toward longer maturities on new auto loans
continued, with lenders offering manageable
monthly payment schedules in the face of
higher auto prices.
□

715

Staff Economic Studies
The research staffs of the B oard of G overnors
of the Federal R eserve System and of the Fed­
eral R eserve Banks undertake studies that cover
a wide range of economic and financial sub­
jec ts , and other staff members prepare papers
related to such subjects. In som e instances the
Federal R eserve System finances sim ilar studies
by members o f the academ ic profession.
From time to time the results of studies that
are of general interest to the economics p rofes­
sion and to others are summarized— or they may
be prin ted in full— in this section of the Federal
R eserve 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 neces­
sarily indicate concurrence by the B oard of
Governors, by the Federal R eserve B anks, or
by the members of their staffs.
Single copies of the full text of each of the
studies or papers sum m arized in the B u l l e t i n
are available in m im eographed form. The list
of Federal R eserve B oard publications at the
back of each B u l l e t i n includes a separate
section entitled “Staff Economic S tudies" that
enumerates the studies for which copies are
currently available in that form.

STU D Y SU M M A R Y

THE PERFORMANCE OF
BANK HOLDING COMPANY-AFFILIATED FINANCE COMPANIES
Stephen A. Rhoades—Staff, Board of Governors , and
Gregory E. Boczar—Formerly on the Staff, Board of Governors
Prepared as a staff paper in 1976

Bank holding companies have been permitted
to enter into various nonbanking activities
since the passage of the 1970 amendments to
the Bank Holding Company Act. In justifying
their entry into these activities, particularly
through merger, bank holding companies typi­
cally claim that such entry will yield a variety
of public benefits—increased growth, better
performance, and so forth—because of the
large size of the bank holding companies and
superior management.
One of the most popular activities entered in­
to by bank holding companies is the consumer




finance industry. This study analyzes a sample
of bank holding company-affiliated and inde­
pendent consumer finance companies to de­
termine whether there are significant differ­
ences in performance between the two groups.
Detailed data from Warburg, Paribus, Becker,
Inc., for groups of affiliated and independent
companies were used to construct a multipleregression model for testing purposes. Al­
though detailed data were obtained, two im­
portant shortcomings should be noted—a lim­
ited sample and the fact that there is only one
year of post-affiliation data.

716

Federal Reserve Bulletin □ August 1977

Results indicate that prior to their affilia­
tion, the affiliated companies performed no
differently from the independent companies in
terms of performance and financial soundness.
After affiliation, however, the affiliated com­
panies were found to have higher interest and
debt expense, lower profits, greater leverage,
and higher growth than the independent com­
panies. Moreover, it was determined that af­




filiated companies, subsequent to affiliation,
did not have lower losses, did not open more
offices, and did not have lower operating
expenses than independent companies. Sub­
ject to the caveats noted above, it is concluded
that this study generally does not confirm the
arguments of bank holding companies that
their entry into the consumer finance industry
will yield numerous public benefits.
□

717

Statements to Congress
S ta tem en t by A rth ur F. B u rn s , C hairm an ,
B o a rd o f G overnors o f the F ed era l R e serve
S y ste m , before the C o m m ittee on Banking,
Finance a n d U rban A ffa irs , U .S . H ou se o f
R ep resen ta tives, July 26, 1977.

I am pleased to have the opportunity to pre­
sent the views of the Board of Governors on
H.R. 8094, the “ Federal Reserve Reform Act
of 1977.” The stated purpose of this bill is “to
promote the accountability of the Federal Re­
serve System.”
Let me say at the outset that the Board fully
recognizes its accountability to the Congress
for its performance of the duties the Congress
has given it. My colleagues and I appear
frequently before this committee and other
committees of the House and the Senate to
report to you and to answer for our actions.
We have participated earnestly in the quar­
terly dialogue on monetary policy initiated
under House Concurrent Resolution 133 of the
94th Congress. I am scheduled, as you know,
to appear before this committee on Friday to
continue that dialogue. Last year the Board
recommended that the House and Senate
Banking Committees evaluate our perform­
ance as bank supervisors through periodic
oversight hearings on the condition of the
banking system, and the first such hearing was
held by the Senate Banking Committee this
March.
In April we advanced the dialogue further by
presenting testimony on the budget of the
Federal Reserve System before the same com­
mittee. I believe that through proceedings such
as these we are evolving an effective means
by which the Congress can fulfill its oversight
responsibilities with respect to the Federal
Reserve while respecting the basic principle of
an independent central bank.
The most significant provision of H.R. 8094




is Section 1 of the bill. The objective of
monetary policy set forth in this section—
namely, that it “ shall be governed by the
national policy to promote maximum em­
ployment, production, and price stability”—is
consistent with the Board’s understanding of
the intent of the Congress, and it also reflects
the actual practice of the Board and of the
Federal Open Market Committee (FOMC). In
the Board’s judgment this would be an appro­
priate addition to the Federal Reserve Act. It
is a clearer statement of national policy than is
contained in the Employment Act of 1946,
which uses the term “ purchasing power”
rather than “price stability.”
On the other hand, the Board is disturbed by
the bill’s language relating to hearings on
monetary policy, which differs in several
major respects from that of the concurrent
resolution it would replace. The concurrent
resolution was the carefully framed product of
extended discussions between the Banking
Committees and the Board. It has been thor­
oughly tested in the course of the nine hear­
ings held under its provisions over the past 2
years. We know of no good reason for revising
it; indeed, some of the proposed revisions, if
enacted, would be inimical to the orderly
functioning of financial markets.
The provision calling for projections of
interest rate levels for 12 months ahead is
particularly ill advised. Neither the Board nor
the FOMC makes such estimates. To be sure,
some, if not all, members have more or less
well-defined expectations about the likely
course of rates in coming months, but mem­
bers of the Board and of the FOMC do not
discuss such expectations in public. Federal
Reserve officials are extremely careful to
avoid any public comment that might suggest
or imply some particular outlook for interest
rates.

718

Federal Reserve Bulletin □ August 1977

The reason for reticence on this subject
should be obvious. While the Federal Reserve
cannot determine market interest rates, it cer­
tainly can influence them—particularly in the
short run. Participants in financial markets
know this, and they have strong incentives to
make use of any clues they can get to the
System’s intentions. If, for example, bond­
holders conclude from a remark by a System
official that rates will be rising in the future,
they may deem it advantageous to sell their
holdings immediately—and that may cause
rates to rise prematurely. It may also cause
rates to move up unnecessarily if the view of
the System official was not well founded but
nevertheless was taken seriously.
But if the casual comments of a Federal
Reserve official can affect market interest
rates, public reports each quarter on the inter­
est rate expectations of the Board or of the
FOMC could rock financial markets. The ex­
pectations voiced by the Board at a quarterly
hearing might change a week or a month later,
and in any event might be mistaken. If we
made specific pronouncements about the fu­
ture of interest rates, many traders would no
doubt tend to respond promptly. Inappropri­
ate as well as violent changes of interest rates
could take place, and the economy could
suffer from the financial instability so gener­
ated. The capacity for mischief inherent in the
interest rate provision is so apparent that I find
its inclusion in the bill inexplicable.
The provision calling for quarterly tes­
timony on monetary velocity 12 months ahead
is questionable for other reasons. Particular
considerations— often of a sort that defy
quantification—weigh heavily in the thinking
of most, if not all, members of the FOMC. In
the nine hearings held thus far under House
Concurrent Resolution 133,1 have tried to set
forth the reasons underlying the Federal Re­
serve’s policy decisions. In fact, I have often
commented in general terms on expectations
for velocity, speaking for the FOMC or the
Board when that was appropriate and for
myself when it was not. But in so doing, I have
consistently emphasized the sensitivity and
flexibility of monetary policy, which can
change by the month or even by the hour, and




which should never become the prisoner of
some preconceived number.
Conceivably, in response to a congressional
mandate, the FOMC could vote on some nu­
merical figure for monetary velocity. But any
such exercise is not necessary for effective
policy formulation; if undertaken, it would
divert members of the FOMC from basic
analysis in which they have some competence
to a numerical guessing exercise; the end
result would be artificial at best and would be
grossly misleading at worst.
Finally, I must advise this committee that
the Board seriously questions the provision
calling for quarterly reports on the “proposed
com position of the Federal R eserve’s
portfolio” 12 months ahead. In the first place,
such reports could influence current interest
rates as market participants drew inferences
about Federal Reserve purchases or sales in
different sectors of the market. Second, such
reports could prove highly misleading. In view
of the uncertainties about future conditions in
securities markets, numerical projections of
likely changes in the portfolio during the com­
ing 12 months cannot be made with much
confidence.
Of course, the FOMC could always instruct
the Manager of the System Open Market Ac­
count to make its guesses come true, or
perhaps to reduce particularly large misses,
whether or not the open market operations
required were consistent with the needs of the
Nation. I very much doubt that the Congress
will want to force the Federal Reserve into
that kind of predicament.
These observations on the deficiencies of
Section 1 of this bill suffice, I hope, to show
why the Board recommends that the language
providing for quarterly hearings on the con­
duct of monetary policy follow much more
closely the carefully framed and thoroughly
tested language of House Concurrent Resolu­
tion 133.
Section 2 of the present bill would prohibit
discrimination and broaden the list of interests
to be considered in the selection of directors of
the Reserve Banks. We are in sympathy with
the concerns underlying this provision and we
support it. As I stated last year, the Federal

Statem ents to Congress

Reserve is fully committed to the principle of
equal employment opportunity, and we have
made vigorous efforts over the years to em­
ploy and promote qualified women and minor­
ity group members to the staffs of the Board
and of the Reserve Banks. Moreover, we have
recently increased our emphasis on the ap­
pointment of such persons to the Boards of
Directors of the Reserve Banks. While we
have achieved some success, we recognize
that it has not been sufficient. Last year I
advised you that the System had six women
serving as members of Reserve Bank branch
boards. For 1977, this figure has increased to
17 women directors, 4 on head office boards
and 13 on branch boards. This year our minor­
ity directors have increased from 13 to 16,
including 3 who serve on the boards of head
offices. We appreciate Chairman Reuss’s con­
tinuing interest in this matter, and I assure the
committee that we intend to continue our
efforts to enlarge the representation of women
and members of minority groups on the boards
of the Reserve Banks.
Another change in the provisions of Section
2 relating to directors would expand the
categories of individuals to be considered in
the selection of Class B and C directors. The
Board endorses this proposed broadening in
the representation of the public on Reserve
Bank boards. Indeed, in connection with the
FINE (Financial Institutions and the Nation’s
Economy) Discussion Principles we recom­
mended that consideration be given to ap­
pointment of Class B directors by the Board
rather than their election by member banks.
We continue to hope that the committee will
consider whether its objectives in this section
of the bill may not be better achieved by provid­
ing for Board appointment of Class B directors.
As the bill stands, both Class A and Class B
directors would still be elected by member
banks, in accordance with the nomination and
balloting procedures set forth in Section 4 of
the Federal Reserve Act. Under these proce­
dures it is difficult to see how the bill’s antidis­
crimination provisions can be enforced in elec­
tions in which literally thousands of member
banks will be voting on a large number of
nominees. This difficulty could be overcome




719

by specifying that Class B directors are to be
selected by the Board. Such an amendment
would have the added benefit of putting to rest
the mischievous fiction that the member banks
control the Federal Reserve by virtue of their
ability to elect six of the nine directors of each
Reserve Bank.
Section 3 of the bill provides for Senate
confirmation of the person appointed by the
President as Chairman of the Board. As I re­
cently testified before the Subcommittee on
Domestic Monetary Affairs, we have no objec­
tion to this provision.
The Board has serious problems with the
provisions of Section 4 relating to so-called
“lobbying communications” with regulated in­
stitutions. Unlike the existing provisions of law
relating to lobbying by Government officials,
which make it a crime to use appropriated
funds for such purposes, H.R. 8094 would
enact a direct prohibition against communica­
tion by any Federal Reserve official with any
institution regulated by the Federal Reserve
“to influence legislative actions affecting the
Federal Reserve System.”
The Board seriously doubts whether such a
prohibition is consistent with the first amend­
ment to the Constitution, which commands
that the Congress shall make no law abridging
freedom of speech. Moreover, this provision of
the bill is so broadly worded that it could have a
chilling effect on perfectly innocent communi­
cations that, besides being constitutionally pro­
tected, are not intended to be included within
the scope of this bill. Just what legislation, for
example, would be excluded from the bill’s
reference to “legislative actions affecting the
Federal Reserve System” ? How explicit must
the intention be to “influence” such actions?
Need the Federal Reserve official urge bankers
to write their Congressmen in order to violate
such a prohibition? Are we prevented from
informing banks about changes that the Federal
Reserve is proposing in the laws that govern
banking? Would we violate the law if a banker
decided on his own to write his Congressman
after listening to our description or analysis of a
pending bill? Indeed, may not this provision be
violated whether or not the banker who re­
ceived a communication from the Federal Re­

720

Federal Reserve Bulletin □ August 1977

serve subsequently communicated with his
congressional representative? With such un­
certainties the inevitable effect would be to
inhibit Federal Reserve officials from discus­
sing any proposed or pending legislation in a
public forum—particularly if bankers were
present. I cannot believe that the Congress
would want to limit so severely the ability of
Federal Reserve officials to discuss legislative
ideas or that it would want to create such
impediments to the free flow of information or
opinion to the Congress itself.
Moreover, since three members of the board
of directors of each Reserve Bank are bankers,
as provided by law, the bill could even be
construed to prevent any discussion of pending
legislation at Reserve Bank board meetings. In
fact, since Federal Reserve Banks could them­
selves be considered institutions “ subject to
the regulatory authority” of the Board of Gov­
ernors, the bill might be read to prohibit com­
munication between the Board and the Federal
Reserve Banks about such proposed legisla­
tion. Similarly, the bill could be interpreted to
prohibit the Board from discussing legislative
matters with the Federal Advisory Council, a
body composed of bankers that was created by
the Federal Reserve Act for the express pur­
pose of counselling with the Board on matters
affecting the System. Again, I cannot believe
such results could be intended.
The officers and directors of the Reserve
Banks, as well as members of the Federal Ad­
visory Council, are appointed under law. The
Board has a responsibility to keep these indi­
viduals informed on legislative issues, and they
naturally share our concern for legislation that
may have an impact upon the System. Their
interest in these matters exists quite apart from
the positions that some of them hold in private
business institutions. Neither Government
service nor election to a Reserve Bank di­
rectorate should require an individual to forfeit
those rights of expression and petition that are
generally guaranteed by the first amendment.
We appreciate that Section 4 of the bill is
intended to protect against the possibility that
regulated institutions, hoping to curry favor
with their regulator, may be induced to pro­
mote the regulator’s interest in particular legis­




lation. One who entertains such a fear must be
assuming that men and women who work in
regulated businesses would let themselves be
used by unscrupulous regulators to express
views that may not be their own. I see little
basis for any such cynicism about bankers or
their regulators, or—for that matter—about the
ability of Congressmen to protect themselves
against misleading rhetoric of their con­
stituents.
We live in disturbed times, and if the Con­
gress should consider Section 4 a proper sub­
ject for new legislation, I still see no basis for
singling out for special treatment the Federal
Reserve—an institution whose integrity should
not be so lightly questioned. I cannot deny a
theoretical possibility of misconduct in the fu­
ture; and if the Congress believes it appropriate
to address the issue, it should do so in the broad
context of all Federal regulatory agencies—not
excluding Cabinet departments.
Finally, Section 5 of the bill would add
“Federal Reserve Bank director, officer, or
employee” to the list of individuals covered by
the conflict-of-interest prohibitions of Section
208 of the Criminal Code. This section of the
code prohibits any covered employee or offi­
cial from participating personally and substan­
tially in any matter in which he, or certain
persons or entities related to him, has a finan­
cial interest unless he first makes a full disclo­
sure to the official who appointed him and
receives appropriate clearance in advance.
In principle we have no objection to this
proposal. The Board of Governors has since
the inception of the Federal Reserve System
recognized the need to assure that the highest
standards of personal integrity are observed,
not only by Board officials and employees but
also by all those associated with the System. As
early as 1919, the Board stated that:
it has always entertained the view that no
director or officer of a Federal Reserve bank
should permit his connection with the bank to
be used in furthering his private business or
the interest of any corporation with which he
may be associated.
The Board has requested the Reserve Banks to
distribute to their directors, officers, and em­
ployees the Code of Ethics for Government

Statem ents to Congress

721

Service, and it has asked each Reserve Bank to
adopt rules on employee responsibilities and
conduct comparable to those adopted by the
Board itself in furtherance of Executive Order
11222. These rules constitute a broad prohibi­
tion of conflicts of interest.
While we thus concur with the principle un­
derlying this proposal, we are disturbed by its
discriminatory nature. I believe that there are
many positions comparable to those of Reserve
Bank directors that are not now covered by
Section 208 of the Criminal Code. The di­
rectorates of the Federal home loan banks is
the example that comes to mind most readily. If
the Congress is to consider extending the crim­
inal penalties for conflicts of interest, it seems
highly inappropriate to do so by singling out
one group as a special target and to do so
without benefit of some deeper study of the
proposal.
If such a study were undertaken, considera­
tion would need to be given to the unique status
of Reserve Bank directors in the structure of
the Federal Reserve System. The Federal Re­
serve Act provides for a balancing of economic
interests on Reserve Bank boards—lenders,
borrowers, and public representatives. Di­
rectors are required by the act and by their oath
of office to administer the affairs of the Bank
“fairly and impartially and without discrimina­
tion.” The legislative history of the act indi­
cates clearly that the Congress viewed Class C
directors as having a responsibility, as “repre­
sentatives of the United States,” to insure that
this requirement of impartiality was carried
out.
The Federal Reserve System has been un­
touched by conflict-of-interest scandals in its
64 years of existence, and we certainly have
the power to deal effectively with miscon­

duct—even to remove officers and direc­
tors—if any such thing should occur. In
light of this, and particularly if the Board of
Governors appointed three additional public
representatives, it is very doubtful that Section
5 of the present bill is at all necessary. Not only
that, there is at least the possibility that specific
reference to directors under the Criminal Code
would diminish the ability of the Federal Re­
serve Banks to attract highly qualified citizens
to their directorates.
We urge the committee to move very cauti­
ously on Section 5, not only for the above
reasons but also because of what appears to be
a technical flaw in drafting. Subsection (b)(1) of
Section 208 of the Criminal Code provides that
the Government official responsible for the
appointment of another person covered by the
code may permit that person to participate in a
particular matter where the person’s interest in
the matter is not substantial. It so happens,
however, that the Reserve Bank directors in
Classes A and B are elected by member banks,
so there is no appointing official in their case.
The obvious, but perhaps unintended, dis­
crimination against those directors should be
noted by the committee.
In summary, the Board supports enactment
of several provisions of this bill. We believe,
however, that the objectives of the quarterly
hearings on monetary policy can be best
achieved by retaining the tested language of
House Concurrent Resolution 133. We urge the
committee to drop the provision of the bill
relating to “lobbying” because it is unjustifi­
ably broad and of doubtful constitutionality.
And we also urge the committee to study very
carefully the implications of amending the
Criminal Code before taking any serious legis­
lative move in such a direction.
□

S ta te m e n t by A rth u r F. B urns, C h a irm a n ,
B oard o f G overnors o f the F ederal R e serve
S y ste m , before the C o m m ittee on B anking ,
Finance and U rban A ffa irs , U .S . H ou se o f
R e p re se n ta tiv e s , July 2 9 , 1977.

I am pleased to appear before this committee
once again to present the report of the Board of
Governors of the Federal Reserve System on
the condition of the national economy and the
course of monetary policy.




722

Federal Reserve Bulletin □ August 1977

Since the closing months of 1976, our Nation
has experienced a vigorous and broadly based
economic expansion. The gains in the indus­
trial sector have been especially impressive;
during the past 8 months, the combined output
of factories, mines, and power plants has risen
at an annual rate of 9Vi per cent. Activity in
other sectors of the economy also has in­
creased briskly. As a result, total employment
in June was almost 3 million higher than last
October—an unprecedented gain in so short a
period. The unemployment rate remains high;
but it has declined in recent months by nearly a
full percentage point, despite rapid growth of
the labor force. The rate of utilization of our
industrial plant capacity also has risen signifi­
cantly and now exceeds 83 per cent in manufac­
turing.
Demand for consumer goods has continued
to propel the expansion. With confidence
buoyed by improving economic conditions,
consumers have been spending freely from cur­
rent income besides adding significantly to
their personal indebtedness. The strong buying
mood of consumers is reflected in the personal
saving rate, which in the first half of this year
averaged less than at any time since the early
1960’s.
Retail sales climbed steeply during the fall
and winter months and remained at a high level
this spring. Over the past three quarters, retail
sales, after adjustment for price increases,
have risen at an annual rate of about 6 per cent.
Auto sales contributed greatly to the advance,
averaging—on a seasonally adjusted basis—
almost 1 million cars per month since March.
The rise of consumer spending played a
major role in prompting a resurgence of inven­
tory investment early this year. A moderate
inventory correction in the latter part of 1976
had reduced the ratio of stocks to sales to
exceptionally low levels in many lines of trade
and manufacturing. Once sales again acceler­
ated, businessmen had to rebuild their inven­
tories in order to meet customer demands. The
annual rate of additions to business inventories
reached $14 billion in the first quarter of this
year and perhaps $20 billion in the quarter just
ended.
In the past 2 months or so, it appears that




stocks in certain categories of nondurable
goods reached somewhat higher levels than
businessmen desired. The latest data on em­
ployment and production in manufacturing
suggest that business firms have again moved
promptly to reverse the build-up. With inven­
tory positions generally still lean and sales
prospects favorable, inventory investment is
likely to contribute to economic expansion
later in the year and on into 1978.
The upward trend of sales and of capacity
utilization has encouraged businessmen to en­
large their outlays for plant and equipment.
There are some signs that business capital
spending may finally be gaining significant up­
ward momentum. Order backlogs of capital
goods manufacturers have been climbing. Busi­
ness equipment posted the largest advance of
any major category of industrial production
during the first half. New contracts and orders
for plant and equipment most recently have
been running more than 20 per cent above
year-earlier levels. To date, business capital
expenditures have been concentrated largely
on vehicles and other light equipment, but
there is some tentative evidence that large con­
struction projects and heavy machinery are
beginning to make a contribution to the capital
goods recovery. All told, the evidence at hand
points to moderate strength in spending on
plant and equipment in the months ahead.
Residential construction meanwhile has re­
mained a major area of strength in the econ­
omy. Sales of homes have been brisk, and the
average level of single-family housing starts in
the second quarter was the highest in more than
two decades. The multifamily sector has con­
tinued to recover slowly, but the low vacancy
rates in many localities are likely to stimulate
additional construction. In certain parts of the
country, especially in California, speculative
activity in the single-family sector has recently
emerged and this development bears watching.
In general, how ever, the expansion of
homebuilding seems to be realistically attuned
to the Nation’s mobile population. In the
Board’s judgment, residential construction will
post further gains in coming quarters.
Governmental spending has picked up re­
cently, most markedly in the State and local

Statem ents to Congress

sector. The budgetary position of many State
and local governments has improved con­
siderably, being bolstered by Federal grants,
by higher tax rates, and by the effects of eco­
nomic expansion on tax revenues. State and
local units have been able to expand employ­
ment more rapidly of late, although growth has
not been as strong as in the 1960’s and early
1970’s. Their construction programs, delayed
in many cases as governmental units concen­
trated on rebuilding their financial position, are
moving ahead again and should provide signifi­
cant impetus to economic activity in coming
quarters.
The only major weak spot in the economy
has been the foreign trade sector. Exports have
been sluggish this year, being limited by the
relatively slow economic expansion in other
industrial nations. Most of these countries have
experienced indecisive rebounds in business
investment, and this has restricted the demand
for American machinery—an important part of
our sales abroad.
Cyclical developments have also played a
large role on the import side of the trade ledger.
In general, the demand for imported industrial
materials has increased in step with the recent
rapid growth of production in this country.
Imports of cyclically sensitive durable
goods—such as machinery, autos, and other
consumer items—are also reflecting recent
economic trends. And needless to say, oil im­
ports have risen enormously this year, swelled
first by cold weather and then by inventory
building in anticipation of price increases by
the Organization of Petroleum Exporting
Countries (OPEC).
Continuing advances in investment income
and other nontrade items have partly offset the
deficit in our foreign trade; even so, the
current-account deficit has reached record
size. Oil imports should experience some de­
cline later this year, aided by the availability of
Alaskan oil. But prevailing trends in economic
activity here and abroad suggest little likeli­
hood of significant near-term reduction in our
foreign trade or current-account deficits.
In general, financial developments have fa­
vored economic expansion in our country, and
they are continuing to do so. However, some




723

familiar cyclical patterns have begun to emerge
since the turn of the year.
Borrowing by households has been growing
very rapidly. Instalment credit has expanded at
a 16 per cent annual rate thus far this year.
Measured relative to disposable personal in­
come, growth of instalment credit has reached
a pace comparable to past peak rates.
Mortgage credit flows have been of record
magnitude. Mortgage credit has, in fact, grown
much faster than could be expected on the basis
of past relationships between borrowing and
residential construction, thus suggesting that
households have been putting mortgage funds
to a broad variety of uses.
Despite the rapid growth of consumer and
mortgage credit, measures of household debt
burden generally remain within the range of
historical experience. Moreover, delinquency
and bankruptcy rates have declined signifi­
cantly from their recession highs. At this
juncture, debt burdens do not appear to consti­
tute a serious impediment to further gains in
household expenditures; but we must not over­
look the possibility of excesses in this area.
Business firms also have placed heavy de­
mands on credit markets this year. Their over­
all need for external financing has grown be­
cause capital outlays have risen much faster
than profits. The net funds raised by nonfinan­
cial corporations increased by about 30 per
cent between the second half of 1976 and the
first half of this year.
The character of business borrowing has also
shifted considerably. Until the latter part of
1976, business firms concentrated on repay­
ment of short-term debt with the proceeds of
long-term borrowing. Since last fall, long-term
indebtedness has continued to grow, but not
nearly so rapidly as short- and intermediateterm borrowing. Bank loans to businesses have
increased at an annual rate of 11 per cent since
last September, and commercial paper and fi­
nance company loans have increased even
faster.
These developments have caused liquidity
ratios of corporate balance sheets to decline
somewhat—a normal cyclical development, al­
though delayed in this case. Still, the state of
corporate liquidity remains relatively comfort­

724 Federal Reserve Bulletin □ August 1977

able because of the extensive improvement
achieved during the preceding 2 years.
Credit demands by State and local govern­
mental units have been very large this year.
About a fifth of the record bond offerings has
been devoted to advance refunding of debt
issues that were sold in earlier years when
interest rates were appreciably higher. The re­
mainder has included substantial amounts to
finance construction of public power plants,
hospitals, and water and sewer facilities.
Federal Government borrowing, in contrast,
has declined from last year—a development
which, among other things, reflects the re­
covery of Treasury revenues and an expendi­
ture pattern still characterized by shortfalls.
However, both the administration’s projection
and the first concurrent resolution indicate that
the deficit for fiscal year 1978 will substantially
exceed that for the current year. If actually
realized, this would be an unusual develop­
ment. Normally, of course, Federal borrowing
diminishes in the course of an economic expan­
sion. In view of the probable need to finance an
increasing volume of private capital formation,
the prospect of greater demands for funds by
the Federal Government in the next fiscal year
has been a cause of some disquietude in finan­
cial circles.
The strong demands for money and credit
that have accompanied our economic expan­
sion have been reflected in a rise in short-term
interest rates since the turn of the year. The
Federal Reserve might have accommodated
credit demands by providing bank reserves
more liberally. However, such a course would
only have postponed briefly the rise in interest
rates because the resulting build-up of liquidity
would have intensified inflationary expecta­
tions. By responding promptly to the enormous
expansion of the monetary aggregates in April,
the Federal Reserve gave clear notice that it
was alert to the danger of a new wave of infla­
tion. This reassurance to the business and fi­
nancial community that the Federal Reserve
would not permit the money supply to run riot
was well received by credit markets. Long­
term interest rates, of course, are of much
larger significance to the economy than short­
term rates; but the long-term rates are also




especially sensitive to inflationary expecta­
tions. It is well, therefore, to take note of the
fact that interest rates on corporate and munic­
ipal bonds, instead of following the recent rise
in short-term rates, remained fairly stable and
are actually a little lower now than they were in
April.
These developments in credit markets are, I
believe, attributable in significant part to public
confidence in the Federal Reserve’s monetary
policy. It is noteworthy that, in general, inter­
est rates still remain below levels prevailing at
the beginning of the economic recovery.
During the past half year, the Federal Re­
serve has managed to keep the growth of the
major monetary aggregates on a moderate
path. Af-1—which consists of currency and
checking accounts at commercial banks—
increased at an annual rate of 6.4 per cent. This
is a faster rate of growth than occurred last
year, and it reflects the very intense demand for
transactions balances in recent months.
Growth of the broader aggregates, on the other
hand, has been slower than last year—a decel­
eration due partly to the low personal saving
rate that has evolved and partly to some modest
redirection of savings flows away from deposit
accounts and into market securities as short­
term interest rates have risen. Despite the
moderate slowing of the broader monetary
aggregates, financial institutions—both com­
mercial banks and the thrift institutions—
remain relatively liquid and in a good position
to continue supporting economic expansion.
During the next few quarters, it is improba­
ble that over-all economic growth will proceed
as rapidly as it did during the past 6 months.
Typically, bursts of consumer spending of the
kind witnessed this year are followed by phases
of moderation. Such moderation, indeed,
seems to be signaled by recent data on retail
sales. Nor, of course, is it to be expected that
inventory investment will be adding as much to
economic expansion as it did in preceding quar­
ters. And in view of the high rate of single­
family housing starts already attained, it is
likely that housing will contribute less to
growth.
These probable developments, however, do
not portend an end to general economic expan­

Statem ents to Congress

sion. We at the Board anticipate continuing
growth—albeit at less rapid rates—in con­
sumption, inventory investm ent, and
homebuilding. We think, moreover, that in­
vestment activity by business firms will main­
tain a good growth pace and perhaps accelerate
as businessmen are confronted, as they may
well be, by reduced capacity margins next
year. Meanwhile, as I noted earlier, there is
reason to expect that the pace of State and local
government spending will continue to quicken.
What these various trends suggest is a change
in the character of the expansion—with the
over-all growth rate slowing but still high
enough to produce some further reductions in
unemployment.
The fact that the Nation’s unemployment
rate remains high by historical standards is a
source of continuing concern. If we as a people
are to address this problem effectively, our first
task is to understand the special factors that
make it so difficult now to achieve rapid reduc­
tions in joblessness.
The stickiness of the unemployment rate, it
needs to be appreciated, does not reflect un­
usual slowness in the opening up of new job
opportunities during the current expansion. On
the contrary, the growth of jobs since the re­
cession trough in March 1975— some 6V2
million—has been more rapid than during the
comparable phase of any cyclical recovery
since World War II. It happens, however, that
the rate of increase in the labor force also has
been unprecedentedly rapid in the course of
this expansion—amounting to more than 5Vi
million persons. Consequently, despite the
huge rise that has occurred in employment, the
reduction in over-all unemployment has been
modest.
The single most important reason for the fast
pace of labor force growth has been a veritable
rush of adult women into the job market. In­
deed, of the increase of 5.6 million that has
occurred in the labor force since the recession
trough, 2.4 million— or more than 40 per
cent—is accounted for by women of age 25 or
over. Strikingly, if the percentage of this adult
female population in the labor force had been
the same in June 1977 as it was in March 1975,
when economic recovery started, the adult




725

female labor force would have been lower by
1Vi million this June. What we are witnessing,
literally, is a revolution in the role of women in
our society, and we need to focus on the eco­
nomic implications of this phenomenon more
carefully than we have.
Obviously, the fact that the labor market has
had to absorb the “ extra” influx of female job
seekers is a major reason why the Nation’s
over-all unemployment rate has not moved
downward more decisively. The rapid influx of
women into the labor force takes on particular
significance because it happens to reinforce
another demographic factor that also is taxing
the absorptive capabilities of the labor market.
I refer to the continuing large additions of
young people to the labor force—a reflection of
the high birth rates of the 1950’s.
Both adult women and young people tend to
experience unemployment rates above aver­
age. Many have never held a regular job before.
Others left the work force years earlier on
account of marriage or the arrival of children.
Whatever the state of the labor market, a deci­
sion to enter or re-enter the labor force often
involves a fairly extended period of job
hunting—frequently prolonged by lack of
knowledge about available job opportunities.
For married women—especially those with
young children—the desired job is often part
time and close to home, so finding the right
position may take quite a lot of time. For young
people, early work experience frequently in­
volves various job shifts—and sometimes sev­
eral periods of unemployment—until a job con­
sidered appropriate is found.
Because of the decline in birth rates that
started in the early 1960’s, growth in the
younger-age component of the labor force can
be expected to taper off in the next few years.
But no sign of tapering is as yet visible in the
labor force participation by adult women. A
decided slowing of the inflation rate—if that
were to occur—might check the rise in female
labor force participation, since some women
clearly have taken jobs in order to offset the
effects of inflation on household budgets.
However, social trends seem to be of greater
significance in conditioning the movement of
women into the labor force. Attitudes toward

726 Federal Reserve Bulletin □ August 1977

childbearing and childrearing and toward edu­
cational and career aspirations of women have
been undergoing dramatic changes in our soci­
ety, and it cannot be foretold when this process
will wane.
Thus rapid labor force growth may persist,
thereby continuing to make it difficult to reduce
the over-all unemployment rate to levels that
were once considered reasonably consistent
with the goal of full employment. Indeed, the
changed age-sex composition of the labor
force—now weighted more than formerly to­
ward groups that tend to have higher-thanaverage unemployment rates—probably has
imparted an upward tilt to over-all unemploy­
ment of about 1 percentage point compared
with 20 years ago.
In time, of course, as women gain experience
in the labor market and as businesses adapt
their operations so as to employ women more
effectively, the upward bias should lessen. One
of our prime policy objectives certainly should
be to facilitate the assimilation of adult women
and young people into the active work force.
That is not likely to be accomplished by actions
that rely simply on boosting aggregate mone­
tary demand. Such actions would tend to ac­
centuate inflationary pressures in the economy
without doing a great deal to facilitate the de­
sired assimilation. In fact, the need to protect
family incomes against the ravages of inflation
may cause even more women and young people
to enter the labor force. We therefore need to
recognize very clearly that accommodation of
significant changes in the labor market requires
policies that are specifically tailored to the
elimination of structural hindrances to full em­
ployment.
Even before the sharp acceleration of growth
in the entry of women into the labor force, there
was reason to be concerned that reasonably full
use of our commercial and industrial capacity
might be reached before we began approaching
full employment of our labor force. That con­
cern, arising from the laggard behavior of capi­
tal formation, is now greater because of the
unexpected rapidity with which the labor force
is expanding. The inference seems inescapable
that we need governmental policies that offer
decisive encouragement to capital formation.




Unless recognition of that need conditions the
evolution of policies in such major areas as
energy, taxes, social security, welfare, and
governmental regulation, there will be small
hope of maximizing job opportunities in the
next several years.
We need an environment that is decidedly
more conducive to business risk-taking than
that which has prevailed in recent years. In my
judgment, we are very much in danger of
forgetting that ours is basically an enterprise
economy whose vitality depends on whether
business firms are able to earn an adequate rate
of return on invested capital. Despite the in­
creasing role of government in economic ac­
tivities, profits are still the essential driving
force of our economic system. Economic dis­
cussions nowadays deal extensively with the
effects of monetary and fiscal policies on eco­
nomic activity; but they do not focus frequently
enough on the even more important matter of
whether private businesses—which dominate
job creation in our system—have adequate in­
centive to expand their operations or to under­
take new ventures. Our citizenry may pay
dearly if this myopia persists.
It also is important to rethink some of our
national policies with respect to the market for
jobs. One of the most critical needs is to avoid
governmental actions that compound the prob­
lems that newcomers to the job market already
have. New entrants—whether young people or
adult women—often cannot be highly produc­
tive in the initial phase of their employment.
Minimum wage legislation is blind to that fact,
and thus limits employment opportunities for
job seekers with little or no recent work experi­
ence. With young people and other newcomers
to the labor force now accounting for a dispro­
portionate share of the unemployed, this is
hardly an opportune time for the Congress to
contemplate a boost in the minimum wage that
goes well beyond the President’s original rec­
ommendation.
Statutory changes in minimum wages affect
not only the lower end of the wage spectrum. In
practice, they tend to have a leveraging effect
on the general wage structure as various tiers of
workers seek to maintain the differential be­
tween their wage and that of lower-paid work­

Statem ents to Congress

ers. Such a development would reinforce the
upward pressure on wages that already derives
from the continuing advance of consumer
prices, from tight labor markets here and there,
and from large and well-publicized collective
bargaining settlements in some industries.
Labor costs per unit of output in the private
business sector rose by 5.4 per cent in the year
ending in March. This increase reflects the
difference between an average increase in
labor compensation per hour of about 8 per
cent and an average increase of IVz per cent in
output per hour. Since we are now in a phase
of the business cycle when productivity gains
are more likely to slow than to accelerate, the
upward pressures on wages may lead to still
stronger pressures on unit labor costs. Many
businesses—not always justifiably—already
feel a need to recoup labor cost increases or to
increase profit margins. To the extent that
they succeed in raising their selling prices, the
inflation rate will tend to worsen and so too
will inflationary expectations. To the extent
that they fail, profit margins may narrow—a
development that would diminish the likeli­
hood of sustained expansion of capital invest­
ment.
The need to concern ourselves with impend­
ing cost distortions and inflationary trends is
evident from the price record of the first half
of this year. That record, to be sure, was
influenced by some transitory forces, and
there has been some diminution in the rate of
inflation lately. Even so, the rate of inflation
this year is running higher than it did last year.
This is a disturbing development for interna­
tional as well as for domestic reasons.
In recent weeks, the dollar—which had
maintained remarkable stability against the
average of foreign currencies since early last
year—has experienced limited but conspicu­
ous depreciation. This is a matter that no one
in our Government can or does take lightly:
first, because any material depreciation of the
dollar against foreign currencies would have
some adverse effect on our domestic price
level; second, because the dollar is a store of
value for much of the rest of the world. The
fact that the dollar has weakened even in
relation to the currencies of countries experi­




727

encing much greater inflation than the United
States is a reminder that market psychology
has a way of magnifying or distorting for a
time underlying trends. A sound dollar is
essential to our economic future, and every­
one with major financial responsibility in our
Government is keenly aware of that.
We at the Federal Reserve have persistently
sought to protect the integrity of the dollar and
at the same time to foster further economic
expansion. The members of the Federal Open
Market Committee, when they met earlier this
month to discuss the longer-run growth of the
monetary aggregates, carefully considered in­
ternational as well as domestic developments.
The Committee decided to leave unchanged
for the year ending in the second quarter of
1978 the previously projected growth ranges of
the broader monetary aggregates. Af-2 thus is
projected to grow within a range from 7 to 9Vi
per cent during the next year, andM-3 within a
range from 8Vi to 11 per cent. An adjustment,
however, was made in the growth range for
Af-1; the lower boundary of this range was
dropped by one-half of a percentage point, so
this aggregate is projected to increase within a
range from 4 per cent to 6Vi per cent in the
year ahead.
The adjustment in the projected growth
range forM-1, while small, represents another
step toward bringing the long-run growth of the
monetary aggregates down to rates compatible
with general price stability. Sustained prog­
ress in this direction is essential if the adminis­
tration’s publicly announced goal of reducing
the pace of inflation by about 2 percentage
points by the end of 1979 is to be achieved.
The trend of growth in monetary aggregates,
I regret to say, is still too rapid. Even though
the Federal Reserve has steadily sought during
the past 2 years to achieve lower ranges for
monetary expansion, the evolution of its pro­
jections has been extremely gradual; indeed,
at the pace we have been moving it would
require perhaps a decade to reach rates of
growth consistent with price stability. I must
report, moreover, that despite the gradual
reduction of projected growth ranges for the
aggregates during the past 2 years, no mean­
ingful reduction has as yet occurred in actual

728 Federal Reserve Bulletin □ August 1977

growth rates. That unintended consequence is
partly the result of data deficiencies that com­
plicate the already formidable task of adjusting
or approximating monetary growth objectives.
Some of the data deficiencies we have experi­
enced are being overcome. Even so, monetary
measurement will continue to lack the preci­
sion of a science. So too will the Federal
Reserve’s actions aiming to influence de­
velopments in financial markets.
Implicit in our projections for monetary
growth is the expectation that the velocity—or
turnover—of M -l will increase at a faster rate
than it has on the average during comparable
periods of previous business-cycle expan­
sions. That does not seem an unreasonable
expectation, inasmuch as the velocity of M-l
has, in fact, been increasing more rapidly
during the current recovery than the historical
record would have suggested—a development
that reflects the increasing importance of a
wide range of substitutes for traditional check­
ing deposits. The Federal Reserve Board’s
staff estimates that the growing use of such
substitutes—for example, negotiable orders of
withdrawal (NOW) accounts, credit union
share drafts, drafts on money market mutual
funds, passbook savings accounts for business
firms and State and local governments, and
telephonic transfers from savings to checking
accounts—depressed the rate of growth of
M-l by about \V i percentage points in 1976.
This year the impact may be smaller but
nonetheless will remain significant.
The relationship between monthly or even
yearly rates of monetary expansion and the
performance of the economy is subject to
considerable uncertainty under the best of
circumstances. In the current environment of
rapid change in methods of carrying on fi­
nancial transactions that uncertainty is
heightened. Consequently, the Federal Re­
serve will continue to maintain a posture of
vigilance and flexibility in the period ahead.




Current monetary policy represents our best
judgment as to what is appropriate in the light
of evolving econom ic and financial de­
velopments. We will not be slow in modifying
that policy if actual conditions deviate mate­
rially from our expectations.
In concluding this report, I think it appro­
priate to emphasize the great complexity of
the economic problems currently confronting
our Nation. There are no instant, easy solu­
tions that will deliver us from our difficulties.
For our part, we at the Federal Reserve know
that inflation ultimately cannot proceed with­
out monetary nourishment. But we also live
with a realization of our limited capacity to
move dramatically or quickly in making means
of financing less readily available. The shock
of abrupt adjustment after so many years of
druglike abuse of our economic system would
be excessively risky. To the maximum extent
feasible, however, we are determined to move
toward re-establishing conditions of financial
order in our society. That is not because
financial order is itself an end with which we
are preoccupied, but because our Nation can­
not realize its potential for sustained prosper­
ity and well-being until existing apprehensions
about inflation are subdued.
We at the Board have no illusions about
what the Federal R eserve alone can ac­
complish. Sound monetary policy is a prereq­
uisite to the achievement of the employment
and price goals set forth by the administration.
But other elements are no less critical. The
President’s timetable for eliminating the defi­
cit in the Federal budget deserves the earnest
support of the Congress. Structural rigidities
that are weakening our economy also require
serious attention. It is fortunate that members
of the Congress increasingly perceive that per­
sistent budget deficits and ever-faster increases
of the money supply, whatever their usefulness
in the past, are no longer capable of solving
our economic problems.
□

729

Record of Policy Actions
of the Federal Open Market Committee
M EETING H E L D O N JU N E 21, 1977
Domestic Policy Directive
The information reviewed at this meeting suggested that growth in
real output of goods and services in the current quarter had been
close to the pace in the first quarter, now indicated by revised
estimates of the Commerce Department to have been at an annual
rate of 6.9 per cent. The rise in average prices—as measured by the
fixed-weighted price index for gross domestic business product—
appeared to have been somewhat faster than the annual rate of 6.5
per cent estimated for the first quarter, owing in large part to
substantial increases in prices of foods. Staff projections suggested
that in the second half of 1977 and in early 1978 the rate of growth in
real GNP would be fairly rapid, although significantly less so than in
the first half of this year. The projections also suggested that the rate
of increase in prices would moderate from that in the first half but
would remain comparatively high.
In the current quarter, according to staff estimates, growth in
personal consumption expenditures had slowed somewhat from the
high rate in the first quarter. The expansion in business fixed
investment also had moderated—from an especially rapid pace in
the first quarter induced by recovery from strikes. On the other
hand, residential construction activity had expanded sharply in the
current quarter, after having been adversely affected in the first
quarter by severe winter weather; State and local government
purchases of goods and services had turned up; and business
inventory investment had increased moderately further.
Staff projections for the second half of the year suggested that
growth in consumption expenditures would slow somewhat further
and that the pace of expansion in residential construction would
moderate. At the same time, however, it was expected that in­
creases in Federal purchases of goods and services would be
substantial; that growth in State and local government purchases
would be sustained at a high rate; that expansion of business




730

Federal Reserve Bulletin □ August 1977




investment would remain relatively strong; and that the rate of
inventory accumulation would continue to increase.
In May economic activity continued to expand at a rapid pace.
Industrial production rose by 1.1 per cent, following gains of 1.5 per
cent and 0.8 per cent in March and April, respectively. As in other
recent months, increases in output were widespread among both
final products and materials; such increases were especially large for
business equipment and for some durable goods materials. How­
ever, assemblies of automobiles declined slightly for the second
consecutive month.
Rates of capacity utilization rose in May to about 83 per cent both
for manufacturing as a whole and for the materials-producing
industries. These utilization rates were significantly above those of
last autumn and winter, but they remained well below the peaks in
the previous business expansion when capacity constraints in a
number of materials-producing industries limited growth in output
and contributed to upward pressures on prices.
Private housing starts—which had risen sharply in March to an
annual rate of 2 .1 million—were at a rate of about 1.9 million in both
April and May. At that level, starts were about 10 per cent above the
average for both the first quarter of 1977 and the fourth quarter of
1976. Mortgage lending activity had remained strong in recent
months. At savings and loan associations, outstanding commitments
to acquire mortgage loans reached a new high in April—the latest
month for which data were available—and holdings of mortgage
loans increased by a record amount during the month.
Developments in labor markets continued to reflect the strength in
economic activity. Payroll employment in nonfarm establishments
increased by 190,000 persons in May—bringing the cumulative
increase in the first 5 months of the year to almost 1.5 million, about
one-third of which was in manufacturing. The unemployment rate
edged down from 7.0 to 6.9 per cent. During the second half of 1976
it had fluctuated between 7.8 and 8.0 per cent.
Personal income expanded considerably less in April and May
than in the preceding 2 months when increases had been especially
large owing to the rebound in wage and salary payments from the
weather-reduced level in January and to disbursements by the
Federal Government of earned-income credits to low-income
families. Wage and salary payments rose about 1 per cent in both

R ecord o f Policy Actions o f FOM C

April and May, close to the average monthly increase for the first
quarter.
Gains in employment and income continued to strengthen con­
sumer demands. In May total retail sales increased further to a level
about 3 V4 per cent above the monthly average for the first quarter.
Sales of new automobiles—at a relatively high annual rate of 11.7
million units—were unchanged from April and were moderately
above the first-quarter pace. Sales of foreign models, at an annual
rate of 2.6 million units in May, set a record for the third successive
month. Data available for domestic models indicated an appreciable
rise in sales in the first 10 days of June.
Data reflecting business commitments to spend for certain kinds
of plant and equipment suggested a vigorous expansion in outlays
over the near term. New orders for nondefense capital goods rose
nearly 2 per cent further in April, and the average for the first 4
months of the year was about 6V2 per cent above the average for the
last 3 months of 1976. Unfilled orders for such goods at the end of
April were 3 per cent above the level at the end of 1976. Contract
awards for commercial and industrial buildings—measured in terms
of floor space—declined in April, but the March-April average was
sharply above the averages for the first 2 months of the year and for
the last 3 months of 1976.
However, the latest Commerce Department survey of business
plans, taken in May, suggested that in the third and fourth quarters
of the year increases in spending for plant and equipment would be
small and perhaps no more than the rise in prices for such goods.
The survey suggested that for 1977 as a whole, businesses would
spend 12.3 per cent more than in 1976, only 0.6 of a percentage point
above the year-to-year increase suggested by the survey taken in
February.
The index of average hourly earnings for private nonfarm produc­
tion workers—which had advanced at an annual rate of 7.6 per cent
in April, according to revised data—rose at a rate of 5.7 per cent in
May. Over the first quarter the index had increased at a rate of 7.4
per cent, including the effects of the January increase in the
minimum wage. In addition, labor costs had been raised in the first
quarter by an increase in taxes on employers for social security and
unemployment insurance.
The rise in the wholesale price index slowed to 0.4 per cent in May




731

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Federal Reserve Bulletin □ August 1977




from about 1.0 per cent in each of the preceding 3 months. Average
prices for farm products declined in May while those for processed
foods rose further, and the average for the two groups changed little
following 3 months of large increases. In May average prices of
industrial commodities also rose less than in the immediately
preceding months; increases continued to be substantial for fuels
and power and were larger than in the preceding months for
machinery and equipment, but prices of scrap metals and some other
materials either declined or rose less rapidly than earlier.
The consumer price index rose 0.8 per cent in April, and the
average increase over the first 4 months of the year also was 0.8 per
cent—considerably larger than the average increase during the
second half of 1976. Average prices of foods jumped 1.5 per cent in
April, reflecting relatively large increases in almost all categories.
Over the first 4 months of the year, food prices rose 5 per cent, after
having changed little on balance oyer the 12 months of 1976. It was
reported during the course of this meeting that the consumer price
index for May—which had just been released—was 0.6 per cent
above the index for April.
The U.S. foreign trade deficit, which had increased sharply in
each month of the first quarter, was about the same in April as in
March (estimated on the international accounts basis). Over the 5
weeks between the May and June meetings of the Committee, the
average value of the dollar against leading foreign currencies had
changed little on balance—despite the publication in late May of the
U.S. trade deficit for April, which was larger than had been
expected. The impact on exchange rates of the large deficit was
moderated in part by declines in interest rates abroad relative to
those in the United States. On balance over the 5-week period,
moreover, foreign central banks purchased dollars in the exchange
markets.
At U.S. banks, growth in total credit slowed somewhat in May
from the relatively rapid pace of April, but the rate was close to the
average for the January-April period. The slowing of growth in May
was attributable almost entirely to a drop in the expansion of
business loans to less than half the high rate of April. Over the first 5
months of the year, growth in business loans (excluding bankers
acceptances) was substantially faster than over the fourth quarter of
1976.

R ecord o f Policy A ctions o f FOMC

The narrowly defined money stock (M-l) increased at an annual
rate of only 1.1 per cent in May, after having grown at a record rate
of nearly 20 per cent in April. Typically, in recent years rapid
monetary growth in one month has been followed by slow growth for
a month or two. For April and May combined, growth was at an
annual rate of 10.4 per cent, compared with a rate of 4.8 per cent in
the first quarter.1
Growth in the more broadly defined measures of money (M -2 and
M-3) also slowed sharply in May—to annual rates of 4.6 and 6.9 per
cent, respectively—mainly as a result of the slowing in M -l.
However, inflows of the time and savings deposits included in M-2
continued to slacken in response to earlier increases in market
interest rates relative to offering rates on deposits. Inflows to
nonbank thrift institutions, on the other hand, remained at about the
pace of recent months. Over the first 5 months of 1977, M-2 grew at
an annual rate of 8.3 per cent; and M-3, at a rate of 9.6 per cent.2
At its May meeting the Committee had decided that growth in M-l
and M-2 in the May-June period at annual rates within ranges of 0 to
4 per cent and V /i to IV2 per cent, respectively, would be appropri­
ate. It had judged that these growth rates were likely to be
associated with a weekly-average Federal funds rate of about 5% per
cent. The Committee had agreed that if growth rates in the aggre­
gates over the 2-month period appeared to be deviating significantly
from the midpoints of the indicated ranges, the operational objective
for the weekly-average Federal funds rate should be modified in an
orderly fashion within a range of 5lA to 53A per cent.
In the days immediately preceding the May meeting the Manager
of the System Open Market Account had aimed for a Federal funds
rate of around 5lA per cent, and the rate actually had fluctuated
between 5lA and 5% per cent. In the days just after the meeting the
Manager began to implement the Committee’s directive by seeking a
weekly-average rate of 53/s per cent for Federal funds. Throughout

Revised measures of the monetary aggregates, reflecting new benchmark data for
deposits at nonmember banks, were published on June 23,1977. On the basis of these
revised figures, the annual rate of growth inM-1 was 0.8 per cent in May; 19.4 per cent
in April; and 4.2 per cent in the first quarter.
2Revised figures for M-2 and M-3, respectively, were 4.7 and 7.1 per cent for May,
and 8.7 and 9.8 per cent for the first 5 months of 1977.




733

734

Federal Reserve Bulletin □ August 1977




the inter-meeting period, incoming data suggested that over the
May-June period M -l and M-2 on the average would grow at rates
well within the specified ranges. Accordingly, the Manager con­
tinued to aim for a weekly-average funds rate of about 5% per cent,
and the rate remained close to that level during the period.
Short-term market rates changed little on balance over the inter­
meeting period. Rates rose somewhat early in the period, but later
they fell back partly in response to the steadiness of the Federal
funds rate and to the indications of slow monetary growth after the
April surge. In addition, demands for short-term credit by State and
local governments as well as by businesses moderated, and the
Treasury continued to redeem bills in its regular auctions. In late
May most major banks raised their prime rate on business loans
from 6V2 to 6% per cent, but one of these banks later cut the rate
back to 6V2 per cent.
Bond yields declined 10 to 20 basis points over the inter-meeting
period, in part because short-term rates did not rise as market
participants had expected. In addition, the volume of public offer­
ings of new corporate bonds declined in May and appeared likely to
be much lower for the second quarter as a whole than for the first
quarter. Moreover, the Federal budget registered a surplus during
the second quarter, permitting not only a decrease in the volume of
Treasury bills outstanding but also a reduction in offerings of new
bonds. Offerings of new State and local government bonds rose to a
record volume in May and appeared likely to be much larger for the
second quarter than for the first. However, demands for tax-exempt
bonds remained strong.
The volume of mortgage lending remained large in May, at
commercial banks as well as at savings and loan associations.
Moreover, issues of GNMA-guaranteed, mortgage-backed securi­
ties and net mortgage acquisitions by FNMA were considerably
above the average for the first 4 months of the year. Average interest
rates on new commitments for conventional home mortgages con­
tinued to edge higher in May, and in the secondary mortgage market
yields in FNMA commitments auctions also rose slightly further.
At its April meeting the Committee had agreed that from the first
quarter of 1977 to the first quarter of 1978 average rates of growth in
the monetary aggregates within the following ranges appeared to be
consistent with broad economic aims: M -1,4 Vi to 6V2 per cent; M -2,7

R ecord o f Policy A ctions o f FOM C

to 9Vi per cent; and M - 3, 8Vi to 11 per cent. The associated range for
growth in the bank credit proxy was 7 to 10 per cent. It was agreed that
the longer-term ranges, as well as the particular aggregates for which
such ranges were specified, would be subject to review and modifica­
tion at subsequent meetings. It also was understood that short-run
factors might cause growth rates from month to month to fall outside
the ranges contemplated for annual periods.
In the discussion of the economic situation and outlook, the
suggestion was made that it was reasonable to expect growth in real
GNP for a number of quarters ahead to be fairly rapid, although less
rapid than in the current quarter. Members differed somewhat in the
emphasis placed on the favorable versus the unfavorable elements in
the outlook for prices and costs.
It was observed that the expansion in personal consumption
expenditures was likely to slow—and the rate of personal saving to
increase—as consumer purchases of new automobiles leveled off or
declined following their large gains in recent quarters. It was also
observed, however, that strength in other sectors should be sufficient
to sustain over-all expansion at a reasonably good rate. Specifically, it
was suggested that the outlook for State and local government
purchases of goods and services had strengthened because of higher
tax revenues and enlarged transfers of funds from the Federal
Government resulting from recent legislation; that expansion in
business fixed investment in the second half of the year was likely to
be stronger than portrayed by the latest Commerce Department
survey; and that, in association with the expansion in fixed invest­
ment, business inventory investment would continue to increase.
Several members reported that businessmen were disturbed by an
atmosphere of uncertainty about Government policies and
regulations—in particular, those affecting taxes, energy, and en­
vironmental pollution. Moreover, businessmen were reported to be
deeply concerned about inflation. In contrast with earlier times,
inflation was now viewed as a cause of deterioration in profits, in part
because of sharp increases in wage rates and in prices of raw materials
and in part because of the taxation of profits that to some degree were
unreal. Such considerations were seen as retarding the expansion in
business fixed investment—which so far had been slower than might
have been expected on the basis of earlier business expansions. Some
members observed that business confidence nevertheless has been




735

736

Federal Reserve Bulletin □ August 1977




improving and that the behavior of new orders for nondefense capital
goods and of other indicators pointed to continuing expansion in
outlays for plant and equipment.
It was also suggested that confidence has been enhanced by System
policies—specifically, by the promptness with which open market
operations during the period between the April and May meetings
responded to the April surge in monetary growth. The magnitude of
recent declines in yields on long-term bonds was cited as partial
evidence for this view.
In the discussion of the outlook for prices, it was observed that the
second-quarter acceleration in the over-all measures was attributable
in large part to substantial increases in prices of farm products, which
had been influenced more by the severe winter weather and the
early-spring drought than the initial estimates indicated they would
be. It was noted that in the past few months supply prospects had
improved considerably for both grains and meats. It was noted also
that prices of a number of basic industrial materials had declined over
the past 2 months.
With respect to wages and costs, the recent behavior of the index of
average hourly earnings for private nonfarm production workers was
described as an indication that the rise in labor costs per unit of output
had not been accelerating, and it was noted that this was a favorable
development for the present stage of the business expansion. On the
other hand, there had been some pick-up during the past year in the
rate of increase in the broader measure of compensation per manhour
in the private business sector. It was suggested, moreover, that the
accelerated increase in the consumer price index during the first 4
months of 1977 may well be reflected in the pace of wage advances
later on, that a rapid rate of inflation by itself tended to reduce
industry’s resistance to granting large wage increases, and that the
rate of gain in productivity was likely to slow.
In considering policy for the period immediately ahead, the
members of the Committee took account of the likelihood that growth
inAf-1 would remain relatively slow in June—continuing to respond
to the April surge—but that growth from the first to the second
quarter would nevertheless exceed the Committee’s longer-run range
for that aggregate. In July, according to staff analysis, expansion of
M-l was likely to be magnified by a purely technical factor—namely,
distribution of social security checks earlier in the month than usual,

R ecord o f Policy A ctions o f FOM C

thereby causing demand deposits to be larger than they otherwise
would be over the 3-day weekend including July 4.
The members differed little in their preferences for the ranges to be
specified for the annual rates of growth in the monetary aggregates
over the June-July period. For M-l, sentiment initially was about
equally divided between ranges of 2Vi to 6Vi per cent and 3 to 7 per
cent; the midpoint of each range was somewhat below the midpoint of
the Committee’s longer-run range for growth in that aggregate.
However, after some discussion of the extent to which growth in M-l
in the second quarter was likely to exceed its longer-run range,
sentiment in favor of the lower of the two ranges prevailed. For M-2,
most members favored a range of 6 to 10 per cent, but sentiment was
also expressed for a range of 5V2 to 9Vi per cent.
Most members favored giving greater weight than usual to money
market conditions in conducting open market operations in the period
until the next meeting because of uncertainty about M -l growth rates
in the near term. However, a number of the members expressed a
preference for continuing to have operating decisions in the period
ahead based primarily on the behavior of the monetary aggregates.
Almost all members favored directing operations—at least
initially—toward maintaining the Federal funds rate at about its
prevailing level of 53/s per cent. Most of them advocated retaining the
inter-meeting range for the funds rate of 5lA to 53A per cent that had
been specified at the May meeting, but sentiment was also expressed
for a range of 5 to 53A per cent. One of the members who expressed a
preference for continuing to base operations primarily on the
behavior of the aggregates favored a range of 5Vi to 6lA per cent for the
funds rate.
At the conclusion of the discussion the Committee decided that
operations in the period immediately ahead should be directed toward
maintaining about the prevailing money market conditions, as
represented by a weekly-average Federal funds rate of 53/s per cent.
With respect to the annual rates of growth in M-l and M-2 over the
June-July period, the Committee specified ranges of 2Vi to 6Vi per
cent and 6 to 10 per cent, respectively. The members agreed that if
growth in the aggregates should appear to approach or move beyond
the limits of the specified ranges, with approximately equal weight
given to M-l and M-2, the operational objective for the weeklyaverage Federal funds rate should be varied in an orderly fashion




737

738 Federal Reserve Bulletin □ August 1977




within a range of 5lA to 53A per cent. As customary, it was understood
that the Chairman might call upon the Committee to consider the need
for supplementary instructions before the next scheduled meeting if
significant inconsistencies appeared to be developing among the
Committee’s various objectives.
The following domestic policy directive was issued to the Federal
Reserve Bank of New York:
The information reviewed at this meeting suggests that real output of
goods and services has grown in the current quarter at about the rapid
rate of the first quarter. In May industrial output and employment
continued to expand at a substantial pace, and the unemployment rate
edged down from 7.0 to 6.9 per cent. Total retail sales increased from
the advanced March-April level. The rise in the wholesale price index
for all commodities slowed substantially in May, as average prices of
farm products and foods changed little after having increased sharply
for three consecutive months; average prices of industrial commodities
also rose less than in other recent months.
The average value of the dollar against leading foreign currencies has
changed little on balance over the past month. The U.S. foreign trade
deficit was nearly as large in April as in March.
M-l increased only slightly in May, after rising at an exceptionally
rapid rate in April. Reflecting mainly the behavior of M-l, growth in
M-2 and M-3 also slowed sharply. Inflows to banks of time and savings
deposits other than large-denomination CD’s continued to slacken, but
inflows to nonbank thrift institutions remained sizable. Business
short-term borrowing moderated from the sharply increased pace of
April, and corporate borrowing in the capital markets was reduced
further. Short-term market interest rates have changed little on balance
in recent weeks, while longer-term yields have declined.
In light of the foregoing developments, it is the policy of the Federal
Open Market Committee to foster bank reserve and other financial
conditions that will encourage continued economic expansion and help
resist inflationary pressures, while contributing to a sustainable pattern
of international transactions.
At its meeting on April 19,1977, the Committee agreed that growth of
M -l, M-2, and M-3 within ranges oiAVi to 6 V2 per cent, 7 to W i per cent,
and 8 V2 to 11 per cent, respectively, from the first quarter of 1977 to the
first quarter of 1978 appears to be consistent with these objectives.
These ranges are subject to reconsideration at any time as conditions
warrant.
At this time, the Committee seeks to maintain about the prevailing

R ecord o f Policy A ctions o f FOM C

money market conditions during the period immediately ahead,
provided that monetary aggregates appear to be growing at approxi­
mately the rates currently expected, which are believed to be on a path
reasonably consistent with the longer-run ranges for monetary aggre­
gates cited in the preceding paragraph. Specifically, the Committee
seeks to maintain the weekly-average Federal funds rate at about 53/s
per cent, so long as M -1 and Af-2 appear to be growing over the
June-July period at annual rates within ranges of 2Vi to 6 V2 per cent and
6 to 10 per cent, respectively. If, giving approximately equal weight to
M-l and M-2, it appears that growth rates over the 2-month period are
approaching or moving beyond the limits of the indicated ranges, the
operational objective for the weekly-average Federal funds rate shall
be modified in an orderly fashion within a range of 514 to 53A per cent.
If it appears during the period before the next meeting that the
operating constraints specified above are proving to be significantly
inconsistent, the Manager is promptly to notify the Chairman who will
then decide whether the situation calls for supplementary instructions
from the Committee.
Votes for this action: Messrs. Burns, Volcker,
Gardner, Guffey, Jackson, Lilly, Mayo, Morris, Par­
tee, Roos, and Wallich. Vote against this action: Mr.
Coldwell.
Mr. Coldwell dissented from this action because he favored a funds
rate range of 5 to 5% per cent, in order to provide more leeway for a
reduction should the rates of growth in M -l and M -2 appear to be near
or below the lower limits of their specified ranges for the June-July
period. This preference reflected his views that the April bulge in M -\
had been caused largely by special factors, that the projections of the
aggregates for the June-July period were highly uncertain, and that
realization of the staff projection for growth in nominal GNP would
involve very large increases in the velocity of money.

Records of policy actions taken by the Federal Open Market Committee at each
meeting, in the form in which they will appear in the Board’s Annual Report, are
released about a month after the meeting and are subsequently published in the
B u l l e t in .




739

741

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

LOAN GUARANTEES FOR DEFENSE
PRODUCTION

The Board of Governors has amended its Regula­
tion V to reflect that the name of the Defense

Supply Agency has been changed to the Defense
Logistics Agency.
Effective June 30, 1977, Section 1 of Regulation
V (Loan Guarantees for Defense Production) of the
Board of Governors is amended by deleting “the
Defense Supply Agency” and substituting the
phrase “the Defense Logistics Agency.”

BANK HOLDING COMPANY AND
BANK MERGER ORDERS ISSUED BY THE BOARD OF GOVERNORS

Banco Central, S.A., Madrid, Spain, has applied
for the Board’s approval under section 3(a)(1) of the
Bank Holding Company Act (12 U.S.C.
§ 1842(a)(1)) of the formation of a bank holding
company through acquisition of all the voting
shares of Banco Central y Economias (“ Bank” ),
Hato Rey, Puerto Rico. Bank, a new bank or­
ganized under the laws of the Commonwealth of
Puerto Rico, proposes to purchase assets and as­
sume liabilities, including deposit liabilities, of
Banco Economias, San German, Puerto Rico. Bank
would be the successor to Banco Economias and,
accordingly, the proposed acquisition of voting
shares of Bank is treated in this Order as a proposed
acquisition of voting shares of Banco Economias.
Notice of the application has been given to the
Secretary of the Treasury of the Commonwealth of
Puerto Rico, who has advised the Board that he has
no objection to approval of the application. Pub­
lished notice1 of the application has been dispensed

with because of the emergency that exists. The Act
does not require such notice. The Board has con­
sidered the application and the comments received
in light of the factors set forth in section 3(c) of the
Act (12 U.S.C. § 1842(c)).
Applicant, a Spanish commercial bank with total
assets of approximately $8.5 billion and total de­
posits of approximately $7.2 billion, is the second
largest commercial bank in Spain. Applicant has
1,181 offices, including six foreign branches, and
nine representative offices. Applicant also plans to
establish an agency in New York City.2
Banco Economias, the assets and liabilities of
which Bank will acquire, is the sixth largest of 15
nongovernment-owned banking organizations
operating in Puerto Rico, and holds deposits of
approximately $199 million, or 4.1 per cent of the
total deposits in commercial banks in the Com­
monwealth of Puerto Rico.3 Applicant does not
now operate in Puerto Rico, and it does not appear
that any meaningful competition would be elimi­
nated as a result of the proposal. Consummation of
the proposal should, in fact, have a salutary effect
on competition by restoring Bank to a condition
that will enable it to compete with other banking
organizations in the market. Therefore, on the basis
of the record, the Board concludes that competitive
considerations are consistent with approval of the
application.

irThe Federal Deposit Insurance Corporation has asked the
Board to act on this application as soon as possible for reasons
related to the condition of Banco Economias.

2Banking data are as of December 31, 1976.
3Deposit and market data within Puerto Rico are as of June 30
1976.

Orders U nder S ection 3
of B ank H olding Company

A ct

Banco Central, S.A.,
Madrid, Spain
Order Approving
Formation o f Bank Holding Company




742

Federal Reserve Bulletin □ August 1977

The financial and managerial resources of Appli­
cant are considered satisfactory and its future pros­
pects appear favorable. Without consummation of
this proposal, the financial resources and future
prospects of Banco Economias would be con­
sidered poor, and if it is to continue as a viable
banking institution it must be acquired by a sound
and well-managed organization such as Applicant.
Applicant will provide Bank with needed financial
and managerial resources and will greatly improve
its future prospects. These factors lend great weight
toward approval. Considerations relating to the
convenience and needs of the community to be
served also lend weight toward approval, as the
continuity of banking services by a locallychartered institution would be maintained in areas
now served by Banco Economias. It is the Board’s
judgment, therefore, that the proposed acquisition
would be in the public interest and that the applica­
tion should be approved.
Applicant appears to qualify, upon consumma­
tion of the proposed transaction, as a foreign bank
holding company under section 225.4(g)(1) of Regu­
lation Y, and as such it will be exempt from certain
of the nonbanking prohibitions of the Act applicable
to domestic bank holding companies. Specifically, a
foreign bank holding company may, without the
Board’s prior approval, retain and acquire shares of
any company that is not engaged, directly or indi­
rectly, in any activities in the United States except
those incidental to such company’s international or
foreign business. Applicant does not itself engage in
any nonbanking activity in the United States and it
does not own, directly or indirectly, more than five
per cent of the shares of any company located in the
United States. Applicant is in the process of sub­
mitting information to clarify whether Board ap­
proval is necessary for the retention of shares it
holds directly or indirectly in any foreign company
on the basis of that company’s direct activities in
the United States. Under section 4(a)(2) of the Act,
Applicant would have a two-year period from the
time it becomes a bank holding company to secure
such approval or to dispose of shares of any such
company in excess of five per cent.
On the basis of the record, the application is
approved for the reasons summarized above, sub­
ject to the issuance of all necessary regulatory
approvals for Bank to commence business as an
insured bank. The transaction shall not be made
before the thirtieth day after the effective date of
this Order, or later than three months after the
effective date of this Order unless such period is
extended for good cause by the Board or the




Federal Reserve Bank of New York pursuant to
delegated authority.
By order of the Board of Governors, effective
July 1, 1977.
Voting for this action: Vice Chairman Gardner and
Governors Wallich, Jackson, Partee, and Lilly. Absent
and not voting: Chairman Burns and Governor Coldwell.

(Signed)
[s e a l ]

G r if f it h L . G a r w

ood,

D epu ty Secretary o f the Board.

Berbanc, Inc.,
Salina, Kansas
Order Approving
Formation o f Bank H olding Company

Berbanc, Inc., Salina, Kansas, has applied for
the Board’s approval under § 3(a)(1) of the Bank
Holding Company Act (12 U.S.C. § 1842(a)(1)) of
formation of a bank holding company through ac­
quisition of 100 per cent of the voting shares (less
directors’ qualifying shares) of The Gypsum Valley
National Bank of Gypsum, Gypsum, Kansas
(“Bank” ).
Notice of the application, affording opportunity
for interested persons to submit comments and
views, has been given in accordance with § 3(b) of
the Act. The time for filing comments and views has
expired, and the Board has considered the applica­
tion and all comments received, in light of the
factors set forth in § 3(c) of the Act (12 U.S.C.
§ 1842(c)).
Applicant is a newly formed corporation or­
ganized under the laws of Kansas for the purpose of
becoming a bank holding company through the
acquisition of Bank. Bank (deposits of $4.4 mil­
lion)1is the 10th largest of 11 banking organizations
in the relevant market2 and controls approximately
1.7 per cent of the total deposits held by commer­
cial banks in that market. There are two banks
affiliated with Bank already present in the Salina
banking market.3 It is the Board’s view that con­
summation of this proposal would not have any
significant adverse effect on existing competition in

'All banking data are as of December 31, 1976.
*The relevant market is the Salina banking market, approxi­
mated by Saline County and the southern half of Ottawa County.
^ e Bennington State Bank, Bennington, Kansas, located 25
miles north of Bank with $13.3 million in deposits, controls 5.2 per
cent of total deposits in commercial banks in the market. The
Bank of Tescott, located 31 miles northwest of Bank with $12.0
million in deposits, controls 4.7 per cent of total deposits in
commercial banks in the market.

Law D epartm ent

view of the relative size of these organizations,
their small market shares, and the number of re­
maining banking alternatives in the market. Accord­
ingly, on the basis of the facts of record, the Board
concludes that consummation of the proposal
would have only a slightly adverse effect on compe­
tition.
The financial and managerial resources and fu­
ture prospects of Applicant and Bank are con­
sidered to be satisfactory and are consistent with
approval of the application. Although Applicant
will incur debt in connection with the proposal, it
appears to have the necessary financial resources
available to service the debt without impairing the
financial condition of Bank. Applicant also pro­
poses to sell 24 per cent of its voting shares to
Berco, Inc., Bennington, Kansas, in order to enable
Applicant to receive additional funding to retire its
debt.4.
Applicant proposes to improve or expand several
of Bank’s existing services. Service charges on
demand deposits are to be reduced in the near
future. A method of computation of interest on
savings deposits more favorable to bank customers
is being instituted. Considerations relating to the
convenience and needs of the community to be
served lend some weight toward approval of the
application and outweigh in the public interest the
slightly adverse competitive effects that might re­
sult from consummation of the proposal. Based
upon the foregoing and other considerations re­
flected in the record, it is the Board’s judgment that
the proposed acquisition is in the public interest and
that the application should be approved.
On the basis of the record, the application is
approved for the reasons summarized above. The
acquisition of Bank shall not be made (a) before the
thirtieth calendar day following the effective date of
this Order or (b) later than three months after the
effective date of this Order, unless such period is
extended for good cause by the Board or by the
Federal Reserve Bank of Kansas City pursuant to
delegated authority.
By order of the Board of Governors, effective
July 18, 1977.
Voting for this action: Governors Wallich, Coldwell,
Jackson, Partee, and Lilly. Absent and not voting: Chair­
man Bums and Governor Gardner.
(Signed)
[s e a l ]

T heodore

E.

A l l is o n ,

Secretary o f the Board.

4In a related matter, the Board today approved an application by
Berco, Inc., Bennington, Kansas, to acquire 24 per cent of the
voting shares of Applicant. (See Board’s Order of July 18, 1977.)




743

Berco, Inc.,
Bennington, Kansas
Order Approving Acquisition of
Shares o f a Bank Holding Company

Berco, Inc., Bennington, Kansas (“Berco” ), a
bank holding company by virtue of its ownership of
94.4 per cent of the voting shares of The Ben­
nington State Bank, Bennington, Kansas (“Ben­
nington Bank”), has applied for the Board’s ap­
proval under § 3(a)(3) of the Bank Holding Com­
pany Act (12 U.S.C. § 1842(a)(3)) to acquire 24 per
cent of the voting shares of Berbanc, Inc., Salina,
Kansas (“Berbanc” ), a proposed bank holding
company with respect to The Gypsum Valley Na­
tional Bank of Gypsum, Gypsum, Kansas (“Gyp­
sum Bank” ).1
Notice of the application, affording opportunity
for interested persons to submit comments and
views, has been given in accordance with § 3(b) of
the Act. The time for filing comments and views
has expired, and the application and all comments
and views received have been considered by the
Board in light of the factors sets forth in § 3(c) of the
Act (12 U.S.C. § 1842(c)).
Gypsum Bank (deposits of $4.4 million),2 con­
trols 1.7 per cent of the total deposits held by
commercial banks in the relevant market and is the
tenth largest of 11 banking organizations in that
market.3 Applicant’s subsidiary bank, The Ben­
nington State Bank (deposits of $13.3 million),
controls 5.2 per cent of the total deposits held by
commercial banks in the relevant market and is the
fifth largest of 11 banking organizations in that
market. While Applicant’s existing subsidiary bank
and Gypsum Bank are located in the same banking
market along with a third affiliated bank,4it appears
that consummation of the proposal would not have
any significant adverse effect on competition, due
to the relative size of these organizations, their
small market shares, and the number of remaining
banking alternatives in the market. The three banks
in the aggregate control only 11.6 per cent of the
total deposits in commercial banks in the market,
and together rank as the 4th largest organization in
the Salina banking market, and are disbursed geo­
*In a related action, the Board approved today an application by
Berbanc to become a bank holding company through the acquisi­
tion of 100 per cent of the voting shares (less directors’ qualifying
shares) of Bank. (See Board’s Order of July 18, 1977.)
2A11 banking data are as of December 31, 1976.
^ h e relevant market is the Salina banking market, approxi­
mated by Saline County and the southern half of Ottawa County.
4The Bank of Tescott (“Tescott Bank” ) (deposits of $12.0
million) controls 4.7 per cent of total commercial bank deposits
and ranks 6th in the relevant banking market.

744

Federal Reserve Bulletin □ August 1977

graphically throughout the market.5 Accordingly,
on the basis of the facts of record, the Board
concludes that consummation of the proposal
would have only a slightly adverse effect on compe­
tition.
The financial and managerial resources and fu­
ture prospects of Applicant and its present sub­
sidiary bank are considered satisfactory and consis­
tent with approval. Applicant’s acquisition of Berbanc’s shares would not adversely affect the overall
financial conditions of Applicant, Bennington
Bank, or Gypsum Bank. Improved and expanded
services to Gypsum Bank’s customers would be
instituted upon consummation of this and the re­
lated Berbanc proposal. Considerations relating to
the convenience and needs of the communities to
be served lend some weight toward approval of the
application. It is the Board’s judgment that the
proposed transaction would be consistent with the
public interest, and that the application to acquire
shares of Berbanc should be approved.6
Based upon the foregoing and other con­
siderations reflected in the record, the application is
approved for the reasons summarized above. The
transaction to acquire shares of Berbanc shall not
be made (a) before the thirtieth calendar day follow­
ing the effective date of this Order or (b) later than
three months after the effective date of this Order,
5Bennington Bank is located 25 miles north of Bank and 13 miles
east of Tescott Bank; Tescott Bank is located 31 miles northwest
of Bank.
®Pursuant to the Supreme Court’s holding in W hitney N ational
Bank o f Jefferson Parish v. B ank o f N ew Orleans and Trust
C om pany , 379 U.S. 411,419 (1965), the Board may not approve an
application by a bank holding company if Board approval of the
proposal contemplated by such application would, by reason of
ownership of the bank by bank holding company, result in the
violation of a valid State law. Kansas law prohibits the formation
of “bank holding companies.” The relevant statute generally
defines a “bank holding company” as any company that directly
or indirectly owns, controls, or holds with power to vote, 25 per
cent or more of the voting shares of each of two or more banks; or
controls in any manner the election of a majority of the directors of
each of two or more banks (K.S.A. § 9-504). Acquisition of 24 per
cent of the voting shares of Berbanc would not appear to con­
travene the provisions of Kansas law. (,See Board’s Order of
September 15, 1975, concerning the application of Valley View
Bancshares, Inc., to acquire shares of Industrial Bancshares, Inc.,
1975 Federal Reserve B u l l e t i n 676, 677.)
Pursuant to a written commitment Applicant will upon con­
summation of the proposal report Berbanc and Gypsum Bank as
subsidiaries of Applicant and comply with applicable provisions of
Federal banking law, as if Berbanc and Gypsum Bank were
subsidiaries of Applicant. In view of this commitment, and the
current applicability of § 23A of the Federal Reserve Act to the
relationships among Berco, Berbanc, Gypsum Bank and Ben­
nington Bank, it is not necessary at this time to determine whether
Berco controls Berbanc by virtue of § 2(a)(2)(C) of the Bank
Holding Company Act. The Board notes, however, that section
225.2(b)(2) of the Board’s Regulation Y establishes a rebuttable
presumption that Berco controls Berbanc and Gypsum Bank on
the facts of this application.




unless such period is extended for good cause by
the Board or by the Federal Reserve Bank of
Kansas City, pursuant to delegated authority.
By order of the Board of Governors, effective
July 18, 1977.
Voting for this action: Governors Wallich, Coldwell,
Jackson, Partee, and Lilly. Absent and not voting: Chair­
man Bums and Governor Gardner.

(Signed)
[s e a l ]

T heodore

E.

A l l is o n ,

Secretary o f the Board.

First International Bancshares, Inc.,
Dallas, Texas
Order Approving Acquisition o f Bank

First International Bancshares, Inc., Dallas,
Texas, a bank holding company within the meaning
of the Bank Holding Company Act, has applied for
the Board’s approval under § 3(a)(3) of the Act (12
U.S.C. § 1842(a)(3)) to acquire 100 per cent of the
voting shares (less directors’ qualifying shares) of
Texas State Bank, Abilene, Texas (“Bank” ), a
proposed new bank.
Notice of the application, affording opportunity
for interested persons to submit comments and
views, has been given in accordance with § 3(b) of
the Act. The time for filing comments and views has
expired, and the Board has considered the applica­
tion and all comments received, including those
submitted on behalf of the Independent Bankers
Association of Texas, Inc., and three Texas banks:
Abilene National Bank, Bank of Commerce, and
The First State Bank, all of Abilene, Texas
(hereinafter collectively referred to as “Protes­
tants”), in light of the factors set forth in § 3(c) of
the Act (12 U.S.C. § 1842(c)).
Applicant, the second largest banking organiza­
tion in Texas, controls 24 banks with aggregate
deposits of approximately $3.9 billion, which repre­
sent 7.5 per cent of the total commercial bank
deposits in Texas.1 Since Bank is a proposed new
bank, its acquisition would neither immediately
increase Applicant’s share of commercial bank de­
posits nor alter its rank in the State.
Bank is to be located in the growing southern
portion of the city of Abilene, Texas, and will
compete in the Abilene banking market (the rele­
*A11 banking data are as of December 31, 1976, and reflect bank
holding company formations and acquisitions approved through
April 30, 1977.

Law D epartm ent

vant banking market).2 Applicant operates one sub­
sidiary bank in the relevant market,3 The Citizens
National Bank of Abilene (“ Citizens Bank”), and is
thereby the third largest of fourteen commercial
banking organizations located in the market with 23
per cent of market deposits. Since Bank is a pro­
posed new bank, its acquisition by Applicant would
not eliminate any existing or potential competition.
In addition, there is no evidence that Applicant’s
proposal is an attempt to preempt a site before there
is a need for a bank. On the basis of the above and
other facts of record, the Board concludes that
competitive considerations are consistent with ap­
proval of the application.
The financial and managerial resources and fu­
ture prospects of Applicant and its subsidiary banks
are regarded as satisfactory and consistent with
approval of the application. Similarly, the financial
and managerial resources and future prospects of
Bank as a subsidiary of Applicant are satisfactory
and consistent with approval of the application.
Accordingly, considerations relating to the banking
factors are consistent with approval. Con­
siderations relating to the convenience and needs of
the community to be served lend some weight
toward approval since affiliation of Bank with Ap­
plicant will enable Bank to provide a full range of
banking services to its customers.
In its review of the subject application, the Board
has given careful consideration to the comments
submitted on behalf of Protestants. In addition to
requesting a formal hearing on the application,
which request is denied by the Board,4 Protestants
contend that Bank’s proposed affiliation with Ap­

*The Abilene banking market is approximated by the Abilene
SMSA, which is comprised of Callahan, Jones, and Taylor Coun­
ties.
3In addition to its main office, Citizens Bank operates a “facil­
ity” at Dyess Air Force Base, which is within the Abilene market.
This facility can only receive demand and savings deposits. It has
no loan-making authority.
4Under § 3(b) of the Act, the Board is required to hold a hearing
when the primary supervisor of the bank to be acquired recom­
mends disapproval of the application (12 U.S.C. § 1842(b)). In this
case, after a hearing on Bank’s charter application in which three
of the Protestants participated, the Banking Commissioner of the
State of Texas issued preliminary charter approval to Bank on
December 11, 1975, and he has not subsequently recommended
that the subject application be denied. Thus, there is no statutory
requirement that the Board hold a hearing. During the processing
of the subject application Protestants were given several opportu­
nities to submit their views in writing. Additionally, in response to
a request by the Protestants, an informal hearing was held at the
Federal Reserve Bank of Dallas at which representatives of
Applicant and the four Protestants were present and were pro­
vided an opportunity to express their views. In view of the
Board’s conclusion that the record in this case is sufficiently
complete to render a decision, Protestants’ request for a formal
hearing is denied.




745

plicant would offend Texas law prohibiting branch
banking (TEX. CONST. Art. XVI § 16). The Board
has stated that a State’s restrictive branch banking
laws are not automatically applicable to bank hold­
ing company operations. In a given case the Board
examines the facts to determine whether a particu­
lar acquisition by a bank holding company would
constitute an illegal branch under State law. If the
Board determines that a violation of State law
would result, it is required to disapprove the trans­
action. Whitney National Bank v. Bank of New
Orleans, 323 F. 2d 290 (D.C. Cir. 1963), rev’d on
other grounds, 379 U.S. 411 (1965); Gravois Bank
v. Board o f Governors, 478 F. 2d 546 (8th Cir.
1973).
The Board notes that the Banking Commissioner
of the State of Texas has granted preliminary ap­
proval for the charter of Bank, following a hearing,
apparently concluding that Bank would not be an
illegal branch under applicable Texas law. Fur­
thermore, the facts of record in this case indicate
Bank will be a separate corporation, with its own
capital stock and a loan limit based upon such
capital stock; Bank’s operations will be conducted
primarily by its own officers; Bank’s board of
directors will be generally separate from the boards
of Applicant and of Citizens Bank and will exercise
independent judgment with respect to the manage­
ment of Bank; Bank’s officers and employees will
not directly perform any services for customers of
Citizens Bank other than those services that would
be provided for customers of other area banks, such
as check cashing, and the same is true of Citizens
Bank’s officers and employees with regard to cus­
tomers of Bank; Bank’s customers will be able to
deposit and withdraw their funds only with respect
to their accounts in Bank and will not be able to
effect a deposit or withdrawal from Bank at Citi­
zens Bank; and the same is true of Citizens Bank’s
customers who will likewise not be able to effect a
deposit or withdrawal from Citizens Bank at Bank;
Bank and Citizens Bank will be advertised as being
members of the same bank holding company sys­
tem but they will not be identified as united institu­
tions; Bank will maintain its own books of account,
use its own stationery and issue its own distinctive
checks and forms; and Bank’s name will be differ­
ent from the name of Citizens Bank. Applicant
further represents that it will purchase Bank’s
shares through use of its own capital resources.
In order to prevail on the branching issue, “It
must be shown that in substance a bank is doing
business through the instrumentality of the affiliate
institution which constitutes the alleged branch, or
vice versa, in the same way as if the institutions

746

Federal Reserve Bulletin □ August 1977

were one.” Independent Bankers Association o f
Georgia v. Board o f Governors o f the Federal
Reserve System , 516 F. 2d 1206 (D.C. Cir. 1975). In
view of the foregoing, and having considered the
comments of the Protestants and all the other facts
of record, the Board concludes that Bank will not
be operated in a unitary fashion with Applicant’s
banking subsidiary and thus this proposal will not
contravene Texas’ branch banking law.
Protestants contend that approval of this applica­
tion would also have such adverse competitive
consequences as to merit denial of the application.5
One of the arguments advanced by Protestants is
that the Abilene banking market is not particularly
attractive for de novo entry because little growth in
the area can be expected. Consequently, Protes­
tants assert, it is doubtful Bank can become a viable
independent banking institution. The Board has
reviewed the facts of record and finds that the
market can reasonably be expected to support an
additional banking alternative. This is especially so
in light of the fact that Bank is to be located in the
expanding southern portion of Abilene which is
currently served by a single bank. While the deci­
sion to establish a new bank almost always involves
some measure of risk, the Board is unable to
conclude that Applicant’s proposal involves more
than the usual entrepreneurial risks inherent in such
a proposal.
Protestants also assert that any substantial
growth by Bank would be at the expense of the
area’s existing banks. Applicant has defined a ser­
vice area for Bank that overlaps the service area of
a neighboring bank that has sustained an annual
deposit growth rate of approximately 20 per cent
over the past five years. Moreover, it appears that
the economy of the Abilene area is experiencing
steady growth and the bulk of Abilene’s growth in
population and new housing is occurring in that
portion of Abilene where Bank is to be located. The
continued growth in the economy of Abilene should
insure that Bank can experience adequate growth
without endangering the viability of the other banks
in the market.
Protestants also assert that the acquisition of

Bank will enable Applicant to become the dominant
banking organization in the market. However,
while Applicant controls 23 per cent of the deposits
in the relevant market, it is only the third largest of
fourteen banking organizations in the market (with
two out of sixteen banking offices in the Abilene
SMSA)6 and has experienced a steadily declining
market share in recent years. Moreover, the first
and second ranked banking organizations in the
market control 30.5 and 24.4 per cent, respectively,
of the market’s deposits. In addition, the largest
banking organization in the market controls both
the largest and fourth largest banks therein. Based
upon the record in this matter, it is the Board’s view
that the acquisition of Bank will not enable Appli­
cant to become the dominant banking organization
in the market.
In view of the foregoing discussion and having
considered the facts of record and all the comments
of Protestants in light of the statutory factors the
Board must consider under § 3(c) of the Act, it is
the Board’s judgment that consummation of the
subject proposal would be in the public interest and
that the application to acquire Bank should be
approved.
On the basis of the record, the application is
approved for the reasons summarized above. The
transaction shall not be made (a) before the thirtieth
calendar day following the effective date of this
Order or (b) later than three months after that date,
and (c) Texas State Bank, Abilene, Texas, shall be
opened for business not later than six months after
the effective date of this Order. Each of the periods
described in (b) and (c) may be extended for good
cause by the Board, or by the Federal Reserve
Bank of Dallas pursuant to delegated authority.
By order of the Board of Governors, effective
July 7, 1977.
Voting for this action: Vice Chairman Gardner and
Governors Wallich, Coldwell, Jackson, and Partee. Ab­
sence and not voting: Chairman Bums and Governor
Lilly.

[s e a l ]

5Protestants also claim that the prohibitions against director
interlocks of section 8 of the Clayton Act (15 U.S.C. § 19) and
section 212.1 of the Board’s Regulation L (12 CFR § 212.1) would
be violated as a result of Applicant’s acquisition of Bank since a
director of Citizens, a subsidiary of Applicant, would also be a
director of Bank. The Board has examined Protestants’ contention
and is of the view that the existence of a common director at Bank
and Citizens Bank is clearly permissible on the basis of section
212.2(d)(4) of Regulation L since both banks are subsidiaries of the
same parent holding company.




(Signed) R u t h A. R e i s t e r ,
Assistant Secretary of the Board.

®For purposes of this analysis, Applicant’s Dyess Air Force
Base facility is counted as a banking office. The facts of record
show that at the same time Applicant’s de novo charter for Bank
was approved by the State Banking Commission, the Commission
also approved another charter for the northeast section of the city
of Abilene. Thus, upon the opening of Bank and the other newly
approved bank in Abilene, Applicant would control only 3 out of
the 17 banking offices in the Abilene market.

Law Departm ent

Northeast United Bancorp, Inc. of Texas,
Fort Worth, Texas

747

Northeast United Bancorp, Inc. of Texas, Fort
Worth, Texas, a bank holding company within the
meaning of the Bank Holding Company Act
(“Act” ), has applied for the Board’s approval
under section 3(a)(3) of the Act (12 U.S.C.
§ 1842(a)(3)) to acquire 51 per cent or more of the
voting shares of First State Bank, Bedford, Texas
(“Bank”).
The subject proposal is an amendment to Appli­
cant’s original application to acquire 100 per cent of
the voting shares (less directors’ qualifying shares)
of Bank through an exchange of shares of Applicant
for shares of Bank. That application was approved
by the Board by Order of January 19, 1976 (41
Federal Register 3782). Because Applicant was not
able to acquire all of the shares of Bank as pro­
posed, Applicant requested the Board to amend its
Order to permit Applicant to acquire 75 per cent or
more of the shares of Bank through an exchange of
shares. By Order of November 5, 1976, the Board
granted Applicant’s request (41 Federal Register
50347). It appears that Applicant is unable to con­
summate the transaction as amended. Applicant
now proposes to acquire 51 per cent or more of the
voting shares of Bank through cash purchase rather
than through an exchange of shares. In view of the
length of time that has elapsed since the Board
issued its first Order approving the application and
the substantial amendments that Applicant has
made to the proposal, the Board has considered the
amended proposal as if it were a new application.
Notice of the amended application, affording
opportunity for interested persons to submit com­
ments and views, has been given in accordance
with section 3(b) of the Act. The time for filing
comments and views has expired, and the Board
has considered the application and all comments
received, in light of the factors set forth in section
3(c) of the Act (12 U.S.C. § 1842(c)).
Applicant, the 107th largest banking organization
in Texas, controls one bank with aggregate deposits
of approximately $50.4 million, representing onetenth of one per cent of the total deposits in
commercial banks in the State.1 Applicant’s acqui­
sition of Bank would increase Applicant’s share of

total State deposits by 0.06 per cent and would not
result in a significant increase in the concentration
of banking resources in Texas. Approval of the
subject application would result in Applicant be­
coming the 62nd largest banking organization in
Texas.
Bank holds deposits of approximately $30 mil­
lion, representing 1.0 per cent of the total deposits
in commercial banks operating in the Fort Worth
banking market,2 and ranks as the 17th largest of 51
commercial banks in the market. The three largest
banking organizations in the market control, in the
aggregate, 63.3 per cent of the market’s deposits
Applicant is the ninth largest of 40 banking organi­
zations in the Fort Worth banking market. Its sole
subsidiary, Northeast National Bank of Fort
Worth, Fort Worth, Texas (“ Northeast” ), holds
deposits of $50.4 million, representing 1.6 per cent
of the market’s total commercial bank deposits. To
the extent that Northeast Bank and Bank operate in
the Fort Worth banking market, some amount of
existing competition would be eliminated as a result
of the consummation of this proposal. However,
Northeast Bank and Bank are located in separate
suburbs of Fort Worth seven and one-half miles
apart and in view of the sizes of the institutions
involved and the large number of banks competing
in the market, it does not appear that the effects on
existing competition would be significant. More­
over, even after consummation of the proposal,
Applicant would control only 2.6 per cent of the
market’s deposits (about one-third of the deposits
held by the market’s third largest banking organiza­
tion, and less than one-tenth of the deposits held by
the first or second largest banking organization in
the market), and several independent banks in the
market would remain available for acquisition by
holding companies not presently represented in the
market. Accordingly, on the basis of the record, the
Board concludes that consummation of the proposal
would not have any significantly adverse effects
on competition.
The financial and managerial resources of Appli­
cant and its subsidiary bank are considered satisfac­
tory and the future prospects for each appear
favorable. In view of Applicant’s commitment to
inject $200,000 of equity capital into Bank following
its acquisition, the same conclusions generally
apply with respect to Bank’s financial and manage­
rial resources and future prospects. Although Ap-

*A11 banking data are as of December 31, 1976, and reflect
holding company formations and acquisitions approved through
June 30, 1977.

*The Forth Worth banking market, the relevant geographic
market for purposes of analyzing the competitive effects of this
proposal, is approximated by the Fort Worth RMA.

Order Approving Acquisition o f Bank




748

Federal Reserve Bulletin □ August 1977

plicant will incur debt of approximately $2.8 million
as a result of the acquisition of Bank’s shares, it
appears that Applicant will be able to service this
debt through the earnings of Northeast Bank and
Bank, without placing any undue strain upon the
capital position of either bank. Thus, the banking
factors lend some weight toward approval of the
application. Applicant proposes to increase the
rates of interest paid on Bank’s time and savings
deposits, increase the parking facilities at Bank,
and, at a later date, provide trust services for
customers of Bank. Therefore, the considerations
relating to the convenience and needs of the com­
munity to be served lend weight toward approval of
the application and, in the Board’s view, are suffi­
cient to outweigh any slight adverse effects on
existing competition that might result from con­
summation of the proposal. Therefore, on the basis
of all of the facts of record, it is the Board’s
judgment that consummation of the proposed
transaction would be in the public interest and that
the application should be approved.3
On the basis of the record, the application is
approved for the reasons summarized above. The
transaction shall not be made (a) before the thirtieth
calendar day following the effective date of this
Order or (b) later than three months after the
effective date of this Order, unless such period is
extended for good cause by the Board, or by the
Federal Reserve Bank of Dallas pursuant to dele­
gated authority.
By order of the Board of Governors, effective
July 25, 1977.

Voting for this action: Chairman Bums and Governors
Gardner, Wallich, and Coldwell. Absent and not voting:
Governors Jackson, Partee, and Lilly.

(Signed)

G r if f it h

L.

Garw ood,

Deputy Secretary o f the Board.

3In its consideration of Applicant’s original proposal, the Board
considered comments submitted by First National Bank of Euless,
Euless, Texas (“Protestant”), regarding the competitive effects of
Applicant’s proposed acquisition of Bank. Protestant’s comments
in opposition to approval of Applicant’s proposal and the Board’s
analysis of those comments are set forth in the Board’s Order
approving Applicant’s original proposal (41 Federal Register 3782
(1975)). Upon review of Protestant’s comments in light of the
subject proposal, the Board is of the view that the facts do not
justify altering those findings of record.




Peotone Bancorp, Inc.,
Peotone, Illinois
Order Approving
Formation of a Bank Holding Company

Peotone Bancorp, Inc., Peotone, Illinois, has
applied for the Board’s approval under § 3(a)(1) of
the Bank Holding Company Act (12 U.S.C. §
1842(a)(1)) of formation of a bank holding company
by acquiring 80 per cent of more of the voting
shares of Peotone Bank and Trust Company,
Peotone, Illinois (“Bank” ).
Notice of the application, affording opportunity
for interested persons to submit comments and
views, has been given in accordance with § 3(b) of
the Act. The time for filing comments and views has
expired, and the application and all comments
received have been considered in light of the factors
set forth in § 3(c) of the Act (12 U.S.C. 1842(c)).
Applicant is a nonoperating corporation organized
for the purpose of becoming a bank holding com­
pany through the acquisition of Bank (deposits of
$19.8 million).1 Upon acquisition of Bank, Appli­
cant would control the 506th largest bank in Illinois,
with approximately 0.03 per cent of total deposits of
commercial banks in the State. Bank is the 9th
largest of 22 banks competing in Will County, the
relevant banking market, holding about 3 per cent
of the total commercial bank deposits therein. Ap­
plicant’s principals are associated with and exert
considerable management influence over two other
Illinois banks, one in Westville and the other in
Cambridge. Since the instant proposal is essentially
a corporate reorganization, and because Bank and
the other two banks are each located in separate
banking markets, consummation of the proposal
would neither eliminate existing or potential com­
petition nor increase the concentration of banking
resources in any relevant area. Thus, it is con­
cluded that competitive considerations are consis­
tent with approval of the application.
The condition of the two other banks with which
Applicant’s principals are associated suggests that
they will conduct the operations of Applicant and
Bank in a satisfactory manner. Although Applicant
will incur debt in connection with the proposal, the
projected income from Bank should provide suffi­
cient revenue to service the debt without impairing
the financial condition of Bank. Therefore, con­
siderations relating to the financial and managerial
resources and future prospects of Applicant and
All banking data are as of December 31, 1976.

Law Departm ent

Bank are regarded as generally satisfactory and
consistent with approval.
Although Applicant proposes no immediate sub­
stantive changes in Bank’s services, considerations
relating to the convenience and needs of the com­
munity to be served are consistent with approval of
the application. It has been determined that the
proposed acquisition would be in the public interest
and that the application should be approved.
On the basis of the record, the application is
approved for the reasons summarized above. The
transaction shall not be made (a) before the thirtieth
calendar day following the effective date of this
Order or (b) later than three months after the
effective date of this Order, unless such period is
extended for good cause by the Board, or by the
Federal Reserve Bank of Chicago pursuant to dele­
gated authority.
By order of the Secretary of the Board, acting
pursuant to delegated authority for the Board of
Governors, effective July 25, 1977.
(Signed)
[s e a l ]

T heodore

E.

A

l l is o n ,

Secretary o f the Board.

Texas Commerce Bancshares, Inc.,
Houston, Texas
Order Approving Acquisition o f Bank

Texas Commerce Bancshares, Inc., Houston,
Texas, a bank holding company within the meaning
of the Bank Holding Company Act, has applied for
the Board’s approval under § 3(a)(3) of the Act (12
U.S.C. § 1842(a)(3)) to acquire 100 per cent (less
directors’ qualifying shares) of the voting shares of
Tanglewood Commerce Bank, Houston, Texas, a
proposed new bank (“ Bank” ).
Notice of the application, affording opportunity
for interested persons to submit comments and
views, has been given in accordance with § 3(b) of
the Act. The time for filing comments and views has
expired, and the Board has considered the applica­
tion and all comments received, including those
submitted by Western Bank, Post Oak Bank, and
San Felipe National Bank, all of Houston, Texas
(collectively referred to herein as “Protestants” ),
in light of the factors set forth in § 3(c) of the Act (12
U.S.C. § 1842(c)).
Applicant, the third largest banking organization
in Texas as of June 30, 1976, controls 32 banks1
applicant recently applied to the Board to acquire shares of
Main Street National Bank, Dallas, Texas.




749

with aggregate deposits of $3.4 billion,2 represent­
ing 7 per cent of the total deposits in commercial
banks in the State. Since Bank is a proposed new
bank, no existing competition between Bank and
Applicant’s subsidiary banks would be eliminated,
nor would Bank’s acquisition by Applicant cause
any immediate increase in Applicant’s share of
commercial bank deposits in the State.
Bank, which is currently in formation, has re­
ceived charter approval from the Department of
Banking of the State of Texas and is to be located in
the southwest quadrant of the city of Houston,
Texas. Applicant is the second largest of 125 bank­
ing organizations in the relevant market.3 Its bank­
ing subsidiaries located in the market control 19.2
per cent of total deposits in commercial banks in the
market. Five of Applicant’s existing subsidiary
banks are located in the southwest quadrant of
Houston. Since Bank is a proposed new bank,
consummation of Applicant’s proposal would not
eliminate any existing competition, nor would it
have any immediate effect on Applicant’s share of
commercial bank deposits in the market.
In its analysis of the subject application, the
Board has considered the comments and request for
a hearing submitted by Protestants. In summary,
Protestants contend that consummation of the sub­
ject proposal would solidify Applicant’s “domi­
nant” position in the State and the Houston bank­
ing market and promote a trend toward “undue
concentration” of banking resources on a Statewide
level. In addition, Protestants contend that there is
slight, if any, need for additional banking facilities
in the market and that the acquisition of Bank of
Applicant will preempt a valuable site for future de
novo entry.4 Protestants requested a hearing on the
instant application.
The Board has examined the record of the hear­
ing held in connection with the chartering of Bank
and in which the Protestants participated, the writ­
ten submissions of Protestants’ and Applicant’s re­
sponses, and is unable to conclude that a formal
hearing would significantly supplement the record
before the Board or resolve issues not already
discussed at length in the written submissions of
2Unless otherwise noted, all banking data are as of June 30,
1976.
3The relevant market is approximated by the Houston Ranally
Metropolitan Area, which is comprised of Harris County and
portions of five adjacent counties.
4In support of their contentions, Protestants submitted, inter
alia: (a) the transcript of a September 15, 1975 Hearing before the
Texas Banking Commissioner on the proposed new bank, and (b)
a privately commissioned market report on the condition of the
banking market in Bank’s primary service area.

750

Federal Reserve Bulletin □ August 1977

Protestants and Applicant and in the record of the
hearing before the Texas Banking Commissioner.
Protestants have neither specified any particular
issue of material fact that a formal hearing would
resolve nor indicated what evidence, if any, they
would adduce at such a hearing. In view of the
foregoing, Protestants’ requests for a formal hear­
ing are hereby denied.
Although Protestants characterize Applicant as
“dominant” in the State and the relevant market,
Applicant is but one of a number of multi-bank
holding companies in the State of comparable size,
measured by total deposits. Applicant competes
with over 150 banks in the Houston market, and its
market share of 19.2 per cent is not such that it
could properly be characterized as “dominant” in
that market. Additionally, the Board is unable to
conclude that Protestants’ assessment of the effect
of this acquisition on Statewide concentration is
correct.
While, in certain instances, de novo expansion in
a market by a leading organization within that
market could reduce prospects for market decon­
centration by preempting viable sites for de novo
entry or expansion by other firms, Applicant’s de
novo expansion in the rapidly growing southwest
quadrant of Houston5 will have only a minimal
impact on market entry and ample opportunities for
market deconcentration remain through natural
growth of the market and foothold or de novo entry
or expansion by other banking organizations.
On the basis of the facts of record, including the
record of the chartering hearing, the submissions of
Protestants, and the submissions of Applicant, the
Board concludes that, given the growth of the
market, the large number of competing organiza­
tions, and the ample opportunities for market de­
concentration, consummation of this proposal
would not result in a concentration of financial
resources in the relevant market or adversely affect
competition in the relevant market.
The financial and managerial resources and fu­
ture prospects of Applicant, its subsidiaries and
Bank are regarded as generally satisfactory based
upon the information in the record. Bank, a pro­
posed new bank, has no financial or operating
history; however, its prospects as a subsidiary of
5The relevant market has experienced population growth at a
rate substantially greater than that experienced by the State of
Texas as a whole. The ratio of population to banking offices in the
Houston market would, upon the opening of Bank become 12,588,
exceeding the Statewide ratio by 39 per cent. Per capita deposits in
the market are 37 per cent greater than the Statewide average.
Thus, the market may be characterized as an attractive one for de
novo entry.




Applicant appear favorable. Considerations relating
to banking factors, therefore, are consistent with
approval of the application.
Bank will serve as an additional full service
banking facility for the residents and businesses of
Bank’s service area. Accordingly, those con­
siderations relating to the convenience and needs of
the community to be served lend some weight
toward approval of the application. It is the Board’s
judgment that the proposed acquisition would be in
the public interest and that the application should
be approved.
On the basis of the record, the application is
approved for the reasons summarized above. The
transaction shall not be made (a) before the thirtieth
calendar day following the effective date of this
Order or (b) later than three months after that date,
and (c) Tanglewood Commerce Bank, Houston,
Texas, shall be opened for business not later than
six months after the effective date of this Order.
Each of the periods described in (b) and (c) may be
extended for good cause by the Board, or by the
Federal Reserve Bank of Dallas, pursuant to dele­
gated authority.
By order of the Board of Governors, effective
July 13, 1977.
Voting for this action: Chairman Bums and Governors
Gardner, Wallich, Jackson, and Partee. Absent and not
voting: Governors Coldwell and Lilly.

(Signed) R u t h A.
[s e a l]

R e is t e r ,

Assistant Secretary o f the Board.

Orders U nder S ection
4 of B ank H olding Company A ct
Continental Illinois Corporation,
Chicago, Illinois
Order Approving Acquisition o f
Great Lakes Life Insurance Company

Continental Illinois Corporation, Chicago, Il­
linois, a bank holding company within the meaning
of the Bank Holding Company Act, has applied for
the Board’s approval, under § 4(c)(8) of the Act (12
U.S.C. § 1843(c)(8)) and § 225.4(b)(2) of the Board’s
Regulation Y (12 CFR § 225.4(b)(2)), to acquire
Great Lakes Life Insurance Company, Phoenix,
Arizona (“Company” ), a company that will engage
de novo in the activity of underwriting, as reinsurer,
credit life and credit accident and health insurance

Law Departm ent

that is directly related to extensions of credit by
Applicant’s subsidiary bank. Such activity has been
determined by the Board to be closely related to
banking (12 C.F.R. § 225.4(a)(10)).
Notice of the application, affording opportunity
for interested persons to submit comments and
views on the public interest factors, has been duly
published (42 Fed. Reg. 21661 (1977)). The time for
filing comments and views has expired, and the
Board has considered the application and all com­
ments received in the light of the public interest
factors set forth in § 4(c)(8) of the Act (12 U.S.C.
§ 1843(c)(8)).
Applicant, the largest bank holding company in
Illinois, controls one subsidiary bank, Continental
Illinois National Bank and Trust Company of
Chicago (“ Bank” ), the largest bank in the State of
Illinois. Bank holds domestic deposits of $9.1 bil­
lion1representing approximately 14.9 per cent of the
total deposits in commercial banks in the State.
Applicant also engages directly, or through sub­
sidiaries, in leasing, debt financing, mortgage lend­
ing, trust, and investment advisory activities on a
national and international basis.
Company will be chartered under the laws of
Arizona and will initially engage in the activity of
underwriting, as a reinsurer, credit life and credit
accident and health insurance sold in connection
with Bank’s direct instalment loan and direct
open-end credit programs. Inasmuch as the subject
proposal involves engaging in this activity de novo ,
consummation of this transaction would not have
any adverse effect upon existing or potential com­
petition in any relevant market.
Credit life and credit accident and health insur­
ance is generally made available by banks and other
lenders and is designed to assure repayment of a
loan in the event of death or disability of the
borrower. In connection with its addition of the
underwriting of such insurance to the list of permis­
sible activities for bank holding companies, the
Board stated:
To assure that engaging in the underwriting of credit
life and credit accident and health insurance can
reasonably be expected to be in the public interest,
the Board will only approve applications in which an
applicant demonstrates that approval will benefit
the consumer or result in other public benefits.
Normally such a showing would be made by a pro­
jected reduction in rates or increase in policy bene­
fits due to bank holding company performance of
this service. (12 C.F.R. § 225.4(a)(10), n. 7)

JAI1 banking data are as of June 30, 1976.



751

Applicant proposes to offer, through Company,
various credit life and credit accident and health
insurance coverage to its instalment and open-end
credit borrowers at various rates ranging from 7.7
to 40.0 per cent below the approved andprima facie
rates established in Illinois.2 In addition, Applicant
proposes to expand the insurance coverage that it
currently makes available, increase the amount of
indebtedness covered and offer insurance to a
broader class of borrowers. Based upon these fac­
tors, the Board concludes that Applicant’s pro­
posed continued reductions3 in premiums and ex­
panded coverage are procompetitive and in the
public interest.
Based upon the foregoing and other con­
siderations reflected in the record, including a
commitment by Applicant to maintain on a continu­
ing basis the public benefits which the Board has
found to be reasonably expected to result from this
proposal and upon which the approval of this
proposal is based, the Board has determined that
the balance of the public interest factors the Board
is required to consider under § 4(c)(8) is favorable.
Accordingly, the application is hereby approved.
This determination is subject to the conditions set
forth in § 225.4(c) of Regulation Y and to the
Board’s authority to require such modification or
termination of the activities of a holding company
or any of its subsidiaries as the Board finds neces­
sary to assure compliance with the provisions and
purposes of the Act and the Board’s regulations and
orders issued thereunder, or to prevent evasion
thereof.
This transaction shall be made not later than
three months after the effective date of this Order,
unless such period is extended for good cause by
the Board or by the Federal Reserve Bank of
Chicago pursuant to authority hereby delegated.
By order of the Board of Governors, effective
July 1, 1977.
Voting for this action: Vice Chairman Gardner and
Governors Wallich, Jackson, Partee, and Lilly. Absent
and not voting: Chairman Burns and Governor Coldwell.

(Signed)
[s e a l ]

G r if f it h

L.

Garw

ood,

Deputy Secretary o f the Board.

%
Prima facie rates are the maximum rates allowed by the State
for particular types of insurance coverage. Where no prima facie
rate exists for a type of coverage, the insurance company may
apply to the State insurance department for approval of a proposed
rate.
3Applicant has stated that it anticipates that it will be necessary
to raise the rate it charges open-end credit customers for credit
accident and health insurance if this application is denied.

752

Federal Reserve Bulletin □ August 1977

National Detroit Corporation,
Detroit, Michigan
Order Approving Acquisition o f
Grand Traverse Mortgage Company, Inc.

National Detroit Corporation, Detroit, Michigan
(“Applicant” ), a bank holding company within the
meaning of the Bank Holding Company Act
(“Act” ), has applied for the Board’s approval,
under § 4(c)(8) of the Act (12 U.S.C. § 1843(c)(8))
and § 225.4(b)(2) of the Board’s Regulation Y (12
CFR § 225.4(b)(2)), to acquire substantially all of
the assets of Grand Traverse Mortgage Company,
Inc., Traverse City, Michigan (“Company” ), a
mortgage broker, through a subsidiary corporation,
NBD Mortgage Corporation, Birmingham, Michi­
gan (“ NBD” ). Although title to all of the stock of
Company will remain in its current shareholders,
the acquisition of its assets will render Company
essentially a shell corporation and accordingly the
proposed acquisition of Company’s assets is treated
herein as an acquisition of Company.
NBD is a mortgage banker that engages in the
origination of mortgage loans for its own account
and the account of others, and the servicing of such
loans for permanent investors. NBD specializes in
the origination and servicing of FHA, VA, and
privately insured low down payment residential
mortgage loans. Although Company currently acts
only as a mortgage broker,1Applicant states that it
will engage in the full range of mortgage banking
activities presently performed by NBD upon con­
summation of the proposed transaction and will
also emphasize FHA, VA, and privately insured
low down payment residential mortgage loans. The
origination and servicing of mortgage loans has
been determined by the Board to be closely related
to banking (12 CFR § 225.4(a)(1) and (3)).
Notice of the application, affording opportunity
for interested persons to submit comments and
views on the public interest factors, has been duly
published (42 Fed. Reg. 22402 (1977)). The time for
filing comments and views has expired, and the
Board has considered the application and all com­
ments received, including those of State Savings
Bank, Frankfort, Michigan, and Northwestern Sav­
ings and Loan Association, Traverse City, Michi­
gan, (“Protestants” ), in light of the public interest
factors set forth in § 4(c)(8) of the Act (12 U.S.C.
§ 1843(c)(8)).

Company itself does not make mortgage loans in its own name
but rather operates as a middleman, on a fee basis, connecting
borrowers and lenders.




Applicant, the largest banking organization in
Michigan, controls six banks, with total deposits of
approximately $5.1 billion, representing approxi­
mately 15.8 per cent of the total deposits in com­
mercial banks in the State.2 Company has total
tangible assets valued at approximately $15,000.
Applicant proposes to acquire these assets, lease
the premises currently utilized by Company, and
employ Company’s two officers.
Company’s sole office is located in Traverse
City. Its activities are limited to that of a mortgage
broker as it does not have the capability of servicing
a mortgage portfolio and does not have the capital
to qualify as an FHA-Approved Mortgagee. Thus,
Company must be regarded as a relatively insignifi­
cant competitor in the relevant geographic market.3
Applicant has no subsidiaries located in this market
and its closest office is approximately 130 air miles
south of Traverse City. No existing competition
would be eliminated by the proposed transaction,
and in view of Company’s size, the Board regards
the acquisition of Company as a foothold entry by
Applicant into this market.
Protestants contend, however, that Applicant’s
acquisition of Company will lead to unsound bank­
ing practices and decreased or unfair competition
because the mortgage needs of the relevant market
presently are overserviced and there is no need for
additional competitors, particularly an additional
competitor of Applicant’s size. There is little de­
mand for the low down payment mortgage loans
Applicant proposes to emphasize, according to
Protestants. Consequently, Protestants believe,
Applicant will be required to offer conventional
mortgages at lower interest rates than those pres­
ently charged by other lenders in the market even
though the market’s interest rate for such loans is
already quite competitive. Applicant’s prospects
for success are thus marginal, Protestants state, and
other financial intermediaries in the market could
be endangered by Applicant’s entry.
It appears that the needs of the market are not
being adequately served with regard to FHA and
VA residential mortgage loans.4
‘Banking data are as of June 30, 1976.
3There is insufficient data to define a mortgage brokerage
market in the Traverse City area for the type of loans currently
brokered by Company. However, the origination of 1-4 family
mortgage loans provides a reasonable approximation of this mar­
ket. The relevant geographic market for such originations is
approximated by Grand Traverse and Leelanau Counties, Michi­
gan.
4The Veterans Administration offers direct loans in Grand
Traverse and Leelanau Counties on the basis of its determination
that they are areas in which private funds are not available for the
making of VA loans.

Law D epartm ent

On balance, Applicant’s acquisition of Company
would not have significant adverse effects on either
existing or potential competition. Indeed, it is ex­
pected that the proposed transaction will be procompetitive and that the additional services Appli­
cant will provide to the market will represent a
significant public benefit.
Based upon the foregoing and other con­
siderations reflected in the record, the Board has
determined that the balance of the public interest
factors the Board is required to consider under
§ 4(c)(8) is favorable. Accordingly, the application is
hereby approved. This determination is subject to
the conditions set forth in § 225.4(c) of Regulation Y
and to the Board’s authority to require such modifi­
cation or termination of the activities of a holding
company or any of its subsidiaries as the Board
finds necessary to assure compliance with the
provisions and purposes of the Act and the Board’s
regulations and orders issued thereunder, or to pre­
vent evasion thereof.
The transaction shall be made not later than three
months after the effective date of this Order, unless
such period is extended for good cause by the
Board or by the Federal Reserve Bank of Chicago,
pursuant to authority hereby delegated.
By order of the Board of Governors, effective
July 5, 1977.
Voting for this action: Vice Chairman Gardner and
Governors Wallich, Jackson, Partee, and Lilly. Absent
and not voting: Chairman Burns and Governor Coldwell.

(Signed)
[s e a l ]

Ruth

A.

R e is t e r ,

Assistant Secretary o f the Board.

Winters National Corporation,
Dayton, Ohio
Order Approving
Acquisition o f M ead Financial Services , Inc.

Winters National Corporation, Dayton, Ohio, a
bank holding company within the meaning of the
Bank Holding Company Act, has applied for the
Board’s approval, under § 4(c)(8) of the Act (12
U.S.C. § 1843(c)(8)) and § 225.4(b)(2) of the Board’s
Regulation Y (12 CFR § 225.4(b)(2)), to acquire
indirectly through its wholly-owned subsidiary,
Winters National Leasing Corp., all of the outstand­
ing stock of Mead Financial Services, Inc., Dayton,
Ohio (“MFS” ), a company that engages in the
activity of leasing personal property (primarily
heavy logging equipment) on a full-payout basis.




753

Such activity has been determined by the Board
to be closely related to banking (12 CFR §
225.4(a)(6)(a)).
Notice of the application, affording opportunity
for interested persons to submit comments and
views on the public interest factors, has been duly
published (42 Fed. Reg. 22936 (1977)). The time for
filing comments and views has expired, and the
Board has considered the application and all com­
ments received in the light of the public interest
factors set forth in § 4 (c)(8) of the Act (12 U.S.C.
§ 1843 (c)(8)).
Applicant, the eleventh largest banking organiza­
tion in Ohio, controls two banks with aggregate
deposits of $859.6 million representing 2.6 per cent
of the total deposits in commercial banks in the
State.1 Applicant has two nonbanking subsidiaries
engaged in credit life and disability reinsurance
activities and leasing activities, respectively.
MFS (total assets of $1.8 million as of December
31, 1976) is a wholly-owned subsidiary of the Mead
Corporation, Dayton, Ohio, a multi-national manu­
facturer of paper and paper-related products. Since
its inception in 1972, MFS has operated exclusively
for the purpose of leasing logging equipment to the
Mead Corporation on a full-payout basis. The Mead
Corporation, in turn, subleases the equipment on a
full-payout basis to independent logging contractors
who supply the Mead Corporation’s paper milling
operations with logs in five States.
Although Applicant’s subsidiaries engage in leas­
ing activities already, it does not appear that any
significant existing competition would be elimi­
nated as a result of this acquisition because MFS’s
leasing activities are small in scale and limited in
scope. MFS is not likely to develop into an active
general competitor in the leasing industry, since it
appears that if the Mead Corporation were to retain
control of MFS, it would continue to limit MFS’s
operations and would not expend the resources
necessary to develop an experienced leasing staff at
MFS. Although Applicant possesses the legal au­
thority and the financial capability to lease logging
equipment, it is not likely to commence this type of
leasing on a de novo basis because demand for this
type of leasing appears limited. Thus, it appears
that no significant competition presently exists or
would develop between MFS and Applicant. Ac­
cordingly, the Board finds that Applicant’s acquisi­
tion of MFS would not have any significant effect
upon existing or future competition.
It appears that consummation of this proposal
1A11banking data are as of December 31, 1976.

754

Federal Reserve Bulletin □ August 1977

would not result in any undue concentration of
resources, conflicts of interests, unsound banking
practices, or any other adverse effects on the public
interest. Applicant would operate MFS as a sub­
sidiary of its existing leasing subsidiary and MFS
would continue to service the Mead Corporation’s
requirements, thereby insuring the continued avail­
ability of subleasing arrangements to Mead Corpo­
ration’s logging contractors. As an affiliate of Ap­
plicant, MFS would be able to obtain lower cost
capital and could enable the Mead Corporation to
offer Mead Corporation’s logging contractors a
greater variety of subleasing terms and conditions.
In the Board’s judgment, any competition between
Applicant and MFS that would be eliminated as a
result of this proposal is outweighed, under the
circumstances, by the public benefits that will re­
sult from MFS’s affiliation with Applicant.
Based upon the foregoing and other con­
siderations reflected in the record, the Board has
determined that the balance of the public interest
factors the Board is required to consider under
§ 4(c)(8) is favorable. Accordingly, the application is
hereby approved. This determination is subject to
ilie conditions set forth in § 225.4(c) of Regulation Y
and to the Board’s authority to require such modifi­
cation or termination of the activities of a holding
company or any of its subsidiaries as the Board
finds necessary to assure compliance with the pro­
visions and purposes of the Act and the Board’s
regulations and orders issued thereunder, or to
prevent evasion thereof.
The transaction shall be made not later than three
months after the effective date of this Order, unless
such period is extended for good cause by the
Board or by the Federal Reserve Bank of Cleve­
land, pursuant to authority hereby delegated.
By order of the Board of Governors, effective
July 6, 1977.

Voting for this action: Vice Chairman Gardner and
Governors Wallich, Coldwell, Jackson, and Partee. Ab­
sent and not voting: Chairman Burns and Governor Lilly.

[seal]



(Signed) R u t h A. R eis ter ,
Assistant Secretary of the Board.

Central National Bancshares, Inc.,
Des Moines, Iowa
Order Approving Acquisition
by Merger o f First Kansas Financial, Inc.

Central National Bancshares, Inc., Des Moines,
Iowa, a bank holding company within the meaning
of the Bank Holding Company Act, has applied for
the Board’s approval under section 4(c)(8) of the
Act (12 U.S.C. § 1843(c)(8)) and section 225.4(b)(2)
of the Board’s Regulation Y (12 CFR
§ 225.4(b)(2)) to acquire by merger First Kansas
Financial, Inc. (“ Company” ), Wichita, Kansas.
Company, through its wholly-owned subsidiary,
First Mortgage Investment Company (“FMIC” ),
Kansas City, Missouri, principally engages in
mortgage banking, including making and acquiring,
for its own account and for the accounts of others,
loans and extensions of credit secured by
mortgages and deeds of trust on real property, and
servicing loans and other extensions of credit for
any person. FMIC also acts as agent and broker for
the sale of insurance.1 The Board has determined
these activities to be closely related to banking (12
CFR § 225.4(a)(1), (3), and (9))..
Notice of the application, affording an opportu­
nity for interested persons to submit comments and
views on the public interest factors, has been duly
published (42 Fed. Reg. 24313). The time for filing
comments and views has expired, and the Board
has considered the application and all comments
received in light of the public interest factors set
forth in section 4(c)(8) of the Act.
Applicant, the fifth largest banking organization
in the State of Iowa, controls four banks with
aggregate deposits of $338.5 million, representing
approximately three per cent of the total deposits in
commercial banks in the State.2 Company engages
Applicant proposes to continue to engage, through FMIC, in
only those insurance activities that are permissible under section
225.4(a)(9) of the Board’s Regulation Y and are consistent with a
recent decison of the United States Court of Appeals for the Fifth
Circuit, Alabama Association o f Insurance Agents v. Board of
Governors, 533 F.2d 224 (1976). Specifically, FMIC proposes to
act as an insurance agent and broker selling credit life, accident
and health, credit disability, mortgage redemption, and mortgage
cancellation insurance directly related to loans and extensions of
credit made by FMIC, and selling generally property damage and
casualty insurance to Applicant’s subsidiary banks. Mortgage
redemption and mortgage cancellation insurance are variations of
declining-term life and accident and health insurance contracted
for in connection with long-term extensions of credit, such as
those usually secured by a mortgage on real estate or a deed of
trust, made by FMIC. FMIC will discontinue all insurance ac­
tivities, other than those enumerated herein, before consumma­
tion of the proposed merger.
2Banking data are as of June 30, 1976, unless otherwise
indicated.

Law D epartm ent

in no direct activities except investing corporate
funds, and servicing, paying, and redeeming out­
standing face-amount certificates it formerly is­
sued.3 Before consummation of the proposed
merger, Company will form a separate subsidiary
under the name “FKF, Inc.” This company will
register under the Investment Company Act of
1940, and, in the event of approval by the Securities
and Exchange Commission, will perform these
functions. The investment power of FKF, Inc. will
be limited to shares representing not more than five
per cent of any company, in accordance with sec­
tion 4(c)(7) of the Bank Holding Company Act,
which permits the ownership of shares of invest­
ment companies by bank holding companies. FKF,
Inc. will be funded for the sole purpose of liquidat­
ing Company’s liability under previously issued
debt securities, and FKF, Inc. will not accept
further funds for investment, issue additional secur­
ities, lend money on outstanding securities, pay
annuities, or engage in other business.
Company’s principal indirect activities are the
mortgage banking activities conducted by its sub­
sidiary, FMIC. FMIC is the 288th largest mortgage
banking company in the United States based upon
the size of its mortgage servicing portfolio.4 FMIC
operates its sole office in a market approximated by
the Kansas City Standard Metropolitan Statistical
Area (“ SMSA” ).5 In that market Company com­
petes with a variety of financial institutions that
originate and service commercial and residential
mortgage loans. All of Applicant’s subsid­
iary banks are engaged in extending loans
secured by permanent mortgages on residential
property. These activities are primarily confined,
however, to localized markets within the State of
Iowa, and Applicant’s subsidiary banks neither
derive nor service any mortgage loans from the
market area served by FMIC. Given FMIC’s small
size and limited scope of operations, the limited and
localized nature of Applicant’s subsidiary banks’
mortgage loan activities, the geographic separation

3Company and Applicant both act as transfer agents for their
own respective shares. Upon merger into Applicant and cancella­
tion of Company’s shares, Company will cease to engage in this
activity. Applicant will continue to act as transfer agent for
Applicant’s shares.
4 As of June 30, 1976, FMIC had mortgage originations out­
standing in the approximate amount of $17.2 million, and was
servicing mortgages totaling approximately $78.5 million.
5 The Kansas City SMSA is comprised of Johnson and Wyan­
dotte Counties in Kansas and Jackson, Platte, Clay, and northern
Cass Counties in Missouri. As of June 30, 1976, approximately 99
per cent of the dollar volume of mortgages originated by FMIC and
88 per cent of its servicing portfolio involved properties in the first
three of these six counties.




755

of the markets served by each, and the large
number of alternative sources for mortgage loans in
the Kansas City market, the Board concludes that
approval of the application will not result in any
adverse effects on existing competition. Moreover,
no significant potential competition would be fore­
closed by consummation of the proposed merger.
For similar reasons, it appears that no adverse
competitive effects will result from the continuation
by FMIC, after the proposed merger, of permissible
insurance activities.
There is no evidence in the record indicating that
consummation of the proposed merger would result
in undue concentration of resources, conflicts of
interests, unsound banking practices, or other ad­
verse effects, and it appears that consummation of
the proposed merger would result in significant
public benefits. The merger is expected to
strengthen Applicant’s financial condition, to
create a well-capitalized organization, and to enable
Applicant to strengthen further the capital bases of
its subsidiary banks, which it has undertaken to do.
The public would also benefit from the infusion of
managerial expertise into Applicant that would re­
sult from the merger, and Applicant’s ability to
offer financing expertise and outlets for large, long­
term real estate loans to customers in the areas
served by its banks.
FMIC formerly engaged in real estate develop­
ment activities that are impermissible tor a subsid­
iary of a bank holding company. FMIC has termi­
nated this activity, however, and is now in the
process of disposing of real property acquired in
connection with the activity. The Board has not
determined that holding real property for sale is a
permissible activity for bank holding companies,
and FMIC accordingly will completely dispose of
its real estate holdings at the earliest practicable
date, but in no event later than two years after the
effective date of this Order.
Based upon the foregoing and other con­
siderations reflected in the record, the Board has
determined that the balance of the public interest
factors the Board is required to consider under
section 4(c)(8) is favorable. Accordingly, the appli­
cation is hereby approved subject to the conditions
that FMIC (1) before consummation of the merger,
discontinue insurance agency and brokerage ac­
tivities not permissible for bank holding companies,
and (2) dispose of its real estate holdings at the
earliest practicable time, but in no event later than
two years after the effective date of this Order. This
determination is also subject to the conditions set
forth in section 225.4(c) of Regulation Y and to the

756

Federal Reserve Bulletin □ August 1977

Board’s authority to require such modification or
termination of the activities of a holding company
or any of its subsidiaries as the Board finds neces­
sary to assure compliance with the provisions and
purposes of the Act and the Board’s regulations and
orders issued thereunder, or to prevent evasion
thereof. The transaction shall be made not later
than three months after the effective date of this
Order, unless such period is extended for good
cause by the Board or by the Federal Reserve Bank
of Chicago, pursuant to authority hereby delegated.
By order of the Board of Governors, effective
July 13, 1977.
Voting for this action: Chairman Burns and Governors
Gardner, Wallich, Jackson, and Partee. Absent and not
voting: Governors Coldwell and Lilly.

(Signed)
[s e a l ]

Ruth

A.

R e is t e r ,

Assistant Secretary o f the Board.

Order Under Sections 3 And 4 of
Bank Holding Company Act

the

Preferred Management Company,
Omaha, Nebraska
Order Approving
Formation o f Bank Holding Company and
Engaging in Insurance Agency Activities

Preferred Management Company, Omaha, Ne­
braska, has applied for the Board’s approval under
§ 3(a)(1) of the Bank Holding Company Act (12
U.S.C. § 1842(a)(1)) to become a bank holding
company through acquisition of an additional
30,000 shares or 60 per cent of the voting shares of
North Side Bank, Omaha, Nebraska (“ Bank” ).
Applicant presently owns 10,000 shares or 20 per
cent of the outstanding voting shares of Bank.1The

Applicant registered as a bank holding company in 1972,
apparently on the premise that Applicant controlled Bank by
virtue of the fact that it owned 20 per cent of Bank’s outstanding
voting shares, and had the right to purchase an additional 27 per
cent of Bank’s shares. Although a rebuttable presumption that
Applicant controls Bank exists under § 225.2(b) of the Board’s
Regulation Y (12 CFR § 225.2(b)) the Board has made no formal
determination that Applicant controls Bank.




factors that are considered in acting on this applica­
tion are set forth in § 3(c) of the Act (12 U.S.C.
§ 1842(c)). Applicant has also applied, pursuant to
§ 4(c)(8) of the Bank Holding Company Act (12
U.S.C. § 1843(c)(8)) and § 225.4(b)(2) of the Board’s
Regulation Y, for permission to continue to act as
agent or broker with respect to the sale of decreas­
ing term credit life insurance, credit accident and
health disability insurance and property damage
insurance directly related to extensions of credit by
Bank. Such activities have been determined by the
Board to be closely related to banking (12 CFR
§§ 225.4(a)(9)(H)).2
Notice of the applications, affording opportunity
for interested persons to submit comments and
views, has been given in accordance with §§ 3 and 4
of the Act (42 Federal Register 20664). The time for
filing comments and views has expired, and the
Board has considered the applications and all com­
ments received in light of the factors set forth in
§ 3(c) of the Act (12 U.S.C. § 1842(c)) and the
considerations specified in § 4 (c)(8) of the Act (12
U.S.C. § 1843(c)(8)).
Bank, with deposits of $40.2 million,3 is the
thirteenth largest of forty-one banks in the relevant
banking market4 and controls 2 per cent of the total
market deposits. Upon acquisition of control of
Bank, Applicant would control the 29th largest
banking organization in Nebraska, holding 0.6 per
cent of the total commercial bank deposits in the
State.5 The proposed transaction is merely a re­
structuring of the ownership interest of Applicant’s
principal in Bank, and the Board finds that con­
summation of the proposal would not eliminate
existing or potential competition or increase the
concentration of banking resources in the relevant
market. Accordingly, competitive considerations
are consistent with approval of the application.

* Applicant also provides management consulting and invest­
ment advice to Bank and leases real and personal property to
Bank. Upon consummation of the acquisition of additional shares
of Bank by Applicant, these activities will be exempt from the
prohibitions of § 4 under § 4(c)(1)(A) and § 4(c)(1)(C) of the Act (12
U.S.C. § 1843(c)(1)(A) and (C)).
3 All banking data are as of December 31, 1976.
4 The relevant banking market is approximated by Douglas and
Sarpy Counties in Nebraska and Pottawattamie County in Iowa.
5 One of Applicant’s principals and largest shareholder is also a
director and member of the Executive Committee of First Na­
tional of Nebraska, Inc., Omaha, Nebraska, as well as its
subsidiary bank, The First National Bank of Omaha, Omaha,
Nebraska. The Board has received a commitment that Applicant’s
principal will resign his positions as director, officer and employee
of Applicant prior to consummation of Applicant’s acquisition of
Bank so that a violation of the provisions of the Board’s Regula­
tion L (12 CFR 212) will not occur.

Law D epartm ent

The financial resources of Applicant, which are
dependent upon those of Bank, are considered to be
satisfactory, and future prospects appear favorable.
While Applicant would incur a sizable acquisition
debt as a result of this proposal, it appears that
Applicant will be able to meet its debt service
requirements without adversely affecting the finan­
cial position of Bank. Furthermore, the managerial
resources of Applicant and Bank are regarded as
satisfactory. Thus, considerations relating to bank­
ing factors are consistent with approval.
While no major changes are contemplated in
Bank’s services and it appears that the needs of
Bank’s customers are being adequately met, con­
siderations relating to convenience and needs of the
community to be served are consistent with ap­
proval. Accordingly, it is the Board’s judgment that
Applicant’s proposal to form a bank holding com­
pany would be consistent with the public interest
and that the application should be approved.
In connection with its application to become a
bank holding company, Applicant has also applied
to continue to act as an agent or broker with respect
to the sale of decreasing term life insurance, credit
accident and disability insurance and property
damage insurance directly related to extensions of
credit by Bank. Since Applicant presently engages
in such activity, it does not appear that approval of
Applicant’s proposal would have any significant
effect on existing or potential competition. On the
other hand, approval of the application would as­
sure customers of Bank of the continuation of a
convenient source of such insurance services. Fur­
thermore, there is no evidence in the record indicat­
ing that consummation of the proposal would result
in any undue concentration of resources, unfair
competition, conflicts of interest, unsound banking
practices or other adverse effects on the public
interest.
Based upon the foregoing and other con­
siderations reflected in the record, the Board has
determined, in accordance with the provisions of
section 4(c)(8) of the Act, that consummation of this
proposal can reasonably be expected to produce
benefits to the public that outweigh possible adverse
effects and that the application to engage in creditrelated insurance activities should be approved.
Accordingly, the applications are approved for
the reasons summarized above. The acquisition of
Bank shall not be made (a) before the thirtieth
calendar day following the effective date of this
Order or (b) later than three months after the
effective date of this Order, unless such period is
extended for good cause by the Board or by the



757

Federal Reserve Bank of Kansas City pursuant to
delegated authority. The approval of Applicant’s
insurance activities is subject to the conditions set
forth in section 225.4(c) of Regulation Y and to the
Board’s authority to require reports by, and make
examinations of, holding companies and their sub­
sidiaries and to require such modification or termi­
nation of the activities of a bank holding company
or any of its subsidiaries as the Board finds neces­
sary to assure compliance with the provisions and
purposes of the Act and the Board’s regulations and
orders issued thereunder, or to prevent evasion
thereof.
By order of the Board of Governors, effective
June 22, 1977.

Voting for this action: Vice Chairman Gardner and
Governors Wallich, Coldwell, Jackson, Partee, and Lilly.
Absent and not voting: Chairman Bums.

(Signed) R u t h A.
[s e a l ]

R e is t e r ,

Assistant Secretary o f the Board.

P r io r a n d F in a l C e r t if ic a t io n s
P u r su a n t t o t h e B a n k H o ld in g
C o m p a n y T a x A c t o f 1976

Educators Investment Company of Kansas, Inc.,
Emporia, Kansas
[Docket No. TCR 76-116]
Educators Investment Company of Kansas, Inc.,
Emporia, Kansas (“ Educators” ), has requested a
prior certification pursuant to § 6158(a) of the
Internal Revenue Code (the “ Code” ), as amended
by § 3(a) of the Bank Holding Company Tax Act of
1976 (the “Tax Act” ), that the sale on November 1,
1975, by Flint Hills Manor, Inc., Emporia, Kansas
(“Flint Hills” ), a wholly-owned subsidiary of Edu­
cators, of substantially all of the assets of Flint
Hills, was necessary or appropriate to effectuate § 4
of the Bank Holding Company Act (12 U.S.C.
§ 1843) (“BHC Act” ). Educators has also requested
a final certification pursuant to § 6158(c)(2) of the
Code that Educators has (before the expiration of
the period prohibited property is permitted under
the BHC Act to be held by a bank holding com­
pany) disposed of all the property the disposition of

758

Federal Reserve Bulletin □ August 1977

which is necessary or appropriate to effectuate
section 4 of the BHC Act.1
In connection with this request, the following
information is deemed relevant for purposes of
issuing the requested certification:2
1. Educators is a corporation organized under
the laws of the State of Kansas on December 22,
1960. Flint Hills is a corporation organized under
the laws of the State of Kansas. Educators acquired
20,000 shares, representing 100 per cent of the
outstanding shares, of Flint Hills on June 1, 1970.
2. On June 5, 1965, Educators acquired
ownership and control of 33,445 shares, represent­
ing 55.7 per cent of the outstanding voting shares,
of Citizens National Bank & Trust Company, Em­
poria, Kansas (“ Bank” ).
3. Educators became a bank holding com­
pany on December 31, 1970, as a result of the
enactment of the 1970 Amendments to the BHC Act
by virtue of its ownership and control at that time of
more than 25 per cent of the outstanding voting
shares of Bank, and it registered as such with the
Board on September 29, 1971. Educators would
have been a bank holding company on July 7, 1970,
if the BHC Act Amendments of 1970 had been in
effect on such date, by virtue of its ownership and
control on that date, of more than 25 per cent of the
outstanding voting shares of Bank. On November
1, 1975, Educators owned and controlled 33,445
shares of Bank, representing 55.7 per cent of the
outstanding voting shares of Bank.
4. On November 1, 1975, Educators held
property acquired by it on or before July 7, 1970,
the disposition of which would be necessary or
appropriate to effectuate § 4 of the BHC Act if
Educators were to continue to be a bank holding
company beyond December 31, 1980, which
property is “prohibited property” within the mean­
ing of §§ 6158(f)(2) and 1103(c) of the Code.
5. On November 1, 1975, Flint Hills sold sub­
stantially all of its assets to Robert W. Rieger
(“Rieger”) for $630,000. Such assets consisted of

1Pursuant to §§ 2(d)(2) and 3(e)(2) of the Tax Act, in the case of
any sale that takes place on or before December 31, 1976 (the 90th
day after the date of the enactment of the Tax Act), the certifica­
tion described in § 6158(a) shall be treated as made before the sale,
and the certification described in § 6158(c)(2) shall be treated as
made before the close of the calendar year following the calendar
year in which the last such sale occurred, if application for such
certification was made before the close of December 31, 1976.
Educators’ application for such certifications was received by the
Board on December 28, 1976.
‘This information derives from Educators’ correspondence
with the Board concerning its request for certification, Educators’
Registration Statement filed with the Board pursuant to the BHC
Act, and other records of the Board.




real property of approximately 5 acres and the
improvements thereon known as Flint Hills Manor
Nursing Home, situated on the east side of the 1600
block of Wheeler Street, Emporia, Kansas, includ­
ing plans, specifications and architectural ren­
derings prepared for a 60-bed expansion to the
already existing building, together with all the furni­
ture, fixtures, equipment, general and medical
supplies and usual inventory as consistent with the
normal operation of a nursing home as required by
the State Health Department. In exchange for such
assets, Rieger paid to Flint Hills $150,000 in cash
and assumed three outstanding mortgages on the
above-described real property in the aggregate
amount of $313,741.85. Under the terms of the
instalment sales contract, the remainder is to be
paid to Flint Hills in monthly payments of $1,500 at
8.5 per cent per annum on the unpaid balance, with
the remaining unpaid balance due at the end of 5
years, provided that Rieger may pay the remaining
unpaid balance to Flint Hills in full at any time
without penalty. Flint Hills holds a fourth mortgage
on such property.
6. Flint Hills does not engage in any activity, and
it remains in existence for the sole purpose of
holding Rieger’s note and receiving payments from
Rieger under the terms of the instalment sales
contract.
7. Rieger is not an officer, director (including
honorary or advisory director), or employee with
policy-making functions of Educators or any of its
subsidiaries. Rieger does not hold any interest in
Educators or any of its subsidiaries. Other than as a
result of his acquisition of the assets of Flint Hills,
Rieger is not indebted to Educators or any of its
subsidiaries.
On the basis of the foregoing information, it is
hereby certified that:
(A) at the time of the sale by Flint Hills of
substantially all of its assets to Rieger, Educators
was a qualified bank holding corporation, within the
meaning of § 6158(f)(1) and subsection (b) of section
1103 of the Code, and satisfied the requirements of
that subsection;
(B) the assets sold by Flint Hills were “prohib­
ited property” within the meaning of §§ 6158(f)(2)
and 1103(c) of the Code;
(C) the sale of substantially all the assets of Flint
Hills was necessary or appropriate to effectuate § 4
of the BHC Act; and
(D) Educators has (before the expiration of the
period prohibited property is permitted under the
BHC Act to be held by a bank holding company)
disposed of all of the property the disposition of

Law D epartm ent

which was necessary or appropriate to effectuate
§ 4 of the BHC Act.
This certification is based upon the representa­
tions made to the Board by Educators and upon the
facts set forth above. In the event the Board should
hereafter determine that facts material to this cer­
tification are otherwise than as represented by
Educators, or that Educators has failed to disclose
to the Board other material facts, it may revoke this
certification.
By order of the Board of Governors acting
through its General Counsel, pursuant to delegated
authority (12 CFR § 265.2(b)(3)), effective July 15,
1977.
(Signed)
[s e a l ]

Ruth

A.

R e is t e r ,

Assistant Secretary o f the Board.

Union Financial Corporation,
Denver, Colorado
[Docket No. TCR 76-126]
Union Financial Corporation, Denver, Colorado
(“UFC” ) (formerly Stuarco Oil Company, Inc.
(“ Stuarco” )), has' requested a prior certification
pursuant to § 6158(a) of the Internal Revenue Code
(the “ Code” ), as amended by § 3(a) of the Bank
Holding Company Tax Act of 1976 (the “Tax
Act” ), that its sales of various oil and gas properties
during 1973 and 1974 were necessary or appropriate
to effectuate the policies of § 4 of the Bank Holding
Company Act (12 U.S.C. § 1843) (“BHC Act” ).
UFC has also requested a final certification pur­
suant to § 6158(c)(2) of the Code that UFC has
(before the expiration of the period prohibited
property is permitted to be held under the BHC Act
by a bank holding company) disposed of all the
property the disposition of which is necessary or
appropriate to effectuate § 4 of the BHC Act.1
In connection with these requests, the following
information is deemed relevant, for purposes of
issuing the requested certification:2

*Pursuant to §§ 2(d)(2) and 3(e)(2) of the Tax Act, in the case of
any sale that takes place on or before December 31, 1976 (the 90th
day after the date of the enactment of the Tax Act), the certifica­
tion described in § 6158(a) shall be treated as made before the sale,
and the certification described in § 6158(c)(2) shall be treated as
made before the close of the calendar year following the calendar
year in which the last such sale occurred, if application for such
certification was made before the close of December 31, 1976.
UFC’s application for such certification was postmarked Decem­
ber 31, 1976.
‘This information derives from UFC’s correspondence with the
Board concerning its request for this certification, UFC’s Regis-




759

1. UFC is a corporation organized under the
laws of the State of Colorado on March 25, 1966.
2. On August 28, 1969, UFC acquired ownership
and control of 990 shares, representing 100 per cent
of the outstanding voting shares, of UNB Corpora­
tion, Denver, Colorado (“ UNB” ).3 On that date
UNB owned and controlled 57,360 shares, repre­
senting 95.6 per cent of the outstanding voting
shares, of Union National Bank (later United Bank
& Trust), Denver, Colorado (“Bank” ).
3. UFC became a bank holding company on
December 31, 1970, as a result of the 1970 Amend­
ments to the BHC Act, by virtue of its direct and
indirect ownership and control at that time of more
than 25 per cent of the outstanding voting shares of
UNB, and by virtue of its indirect ownership and
control at that time, through UNB, of more than 25
per cent of the outstanding voting shares of Bank,
and it registered as such with the Board on July 2,
1971.4 UFC would have been a bank holding com­
pany on July 7, 1970, if the BHC Act Amendments
of 1970 had been in effect on such date, by virtue of
its direct and indirect ownership and control on that
date of more than 25 per cent of the outstanding
voting shares of UNB and Bank, respectively. At
the time of each of the sales described in paragraph
4 below UFC directly and indirectly owned and
controlled more than 25 per cent of the outstanding
voting shares of UNB and Bank, respectively.
4. On or about May 31, 1973, UFC sold substan­
tially all of its drilling rigs and related equipment to
Exeter Drilling Contractors, Denver, Colorado, for
cash. On October 1, 1973, after receiving written
bids, UFC sold substantially all of its producing oil
and gas properties and its undeveloped oil and gas
properties to the highest bidder, Terra Resources,
Houston, Texas, for cash.5 Shortly thereafter, vari­
ous minor mineral interests were sold to the major
stockholders of UFC at an appraised value of
$23,000. Concurrently, certain other office furni­

tration Statement filed with the Board pursuant to the BHC Act,
and other records of the Board.
3UNB engages in no other activity than the holding of Bank’s
stock.
4UNB similarly became a bank holding company on December
31,1970, by virtue of its direct ownership and control of more than
25 per cent of the outstanding voting shares of Bank, and it
registered as such with the Board on December 30, 1971.
5In connection with its request for this certification, UFC
submitted a copy of its Tax Return Schedule showing the oil and
gas properties and leasehold equipment it sold during 1973-74.
Those properties and equipment were located in the following
States: Colorado, Nebraska, Wyoming, Texas, Oklahoma,
Louisiana and Montana. In addition, pursuant to § 1102(d) of the
Code, UFC submitted an itemization of all oil and gas leases and
related property and equipment divested during the period 19701974.

760

Federal Reserve Bulletin □ August 1977

ture, fixtures, and leasehold improvements were
sold to one of UFC’s stockholders at an indepen­
dently appraised value. All of the foregoing transac­
tions were for cash.
5. On each of the dates set forth in paragraph 4,
UFC held property acquired by it on or before July
7, 1970, the disposition of which was necessary or
appropriate to effectuate § 4 of the BHC Act if UFC
were to continue to be a bank holding company
beyond December 31, 1980, which property was
“ prohibited property” within the meaning of
§§ 6158(b)(1) and 1103(c) of the Code.
6. Neither UFC nor any subsidiary of UFC holds
any interest in any of the purchasers of the property
described in paragraph 4 (the “Purchasers” ), or in
any subsidiary of any of the Purchasers.
7. None of the Purchasers, or any subsidiary of
any of the Purchasers, holds any interest in UFC or
any subsidiary of UFC.
8. No officer, director (including honorary or
advisory director) or employee with policy-making
functions of UFC or any subsidiary of UFC also
holds any such position with any of the Purchasers
or any subsidiary of any of the Purchasers.
9. UFC does not control in any manner the
election of a majority of the directors, or exercise a
controlling influence over the management or
policies, of any of the Purchasers or any subsidiary
of any of the Purchasers.
10. UFC does not presently own or control any
property the disposition of which would be neces­
sary or appropriate to effectuate § 4 of the BHC Act
if UFC were to remain a bank holding company
beyond December 31, 1980.
On the basis of the foregoing information and
other facts of record, it is hereby certified that:
(A) at the time of the sales described in para­
graph 4 above, UFC was a qualified bank holding
corporation, within the meaning of § 6158(f)(1) and
subsection (b) of section 1103 of the Code, and
satisfied the requirements of that subsection;
(B) the property sold by UFC as described in
paragraph 4 above was “ prohibited property”
within the meaning of §§ 6158(f)(2) and 1103(c) of
the Code;
(C) UFC has (before the expiration of the period
prohibited property is permitted under the BHC
Act to be held by a bank holding company) dis­
posed of all of the property the disposition of which
is necessary or appropriate to effectuate § 4 of the
BHC Act.
This certification is based upon the representa­
tions made to the Board by UFC and upon the facts
set forth above. In the event the Board should



hereafter determine that facts material to this cer­
tification are otherwise than as represented by
UFC, or that UFC has failed to disclose to the
Board other material facts, it may revoke this
certification.
By order of the Board of Governors acting
through its General Counsel, pursuant to delegated
authority (12 C.F.R. § 265.2(b)(3)), effective July
29, 1977.
(Signed)
[s e a l ]

G r if f it h

L.

Garw ood,

Deputy Secretary of the Board.

Westland Banks, Inc.,
Lakewood, Colorado
[Docket No. TCR 76-113]
Westland Banks, Inc., Lakewood, Colorado
(“WBI” ), formerly Weerva, Inc., has requested a
prior certification pursuant to § 6158(a) of the
Internal Revenue Code (the “ Code” ), as amended
by § 3(a) of the Bank Holding Company Tax Act of
1976 (the “Tax Act” ), that its sale of the trade
name, good will, appointments, supplies, files, rec­
ords, customer lists, transferable insurance
policies, outstanding contracts, accounts receivable
and all other property except cash, bank accounts,
and fixed assets of its travel agency, Westland
Travel Service, to Westland Travel Service, Inc. on
June 1, 1976, was necessary or appropriate to
effectuate § 4 of the Bank Holding Company Act
(12 U.S.C. § 1843) (“ BHC Act” ).1
In connection with this request, the following
information is deemed relevant for purposes of
issuing the requested certification:2
1.
WBI, formerly Weerva, Inc. (“ Weerva” ),
was organized as a subsidiary of the Wheat Ridge
National Bank (“Bank” ), Wheat Ridge, Colorado,
under the laws of the State of Colorado on Decem­
ber 27, 1967. In May 1968, Bank distributed all of
the shares of Weerva to the shareholders of Bank.
In July 1968, Weerva acquired Westland Travel
Service from Bank.

1Pursuant to § 3(e)(2) of the Tax Act, in case of any sale that
took place on or before December 31, 1976 (the 90th day after the
date of enactment of the Tax Act), the certification described in
§ 6158(a) shall be treated as made before the sale if application for
such certification was made before the close of business Decem­
ber 31, 1976. WBI’s application for such certification was received
by the Board on December 27, 1976.
*This information derives from WBI’s correspondence with the
Board concerning its request for this certification, WBI’s Registra­
tion Statement filed with the Board pursuant to the BHC Act and
other records of the Board.

Law D epartm ent

2. On October 29, 1969, Weerva acquired
ownership and control of 39,196 shares, represent­
ing 97.9 per cent of the outstanding voting shares,
of Bank.
3. Weerva became a bank holding company on
December 31, 1970, as a result of the 1970 Amend­
ments to the BHC Act, by virtue of its ownership
and control at that time of more than 25 per cent of
the outstanding voting shares of Bank, and it regis­
tered as such with the Board on July 6, 1971.
Weerva would have been a bank holding company
on July 7, 1970 if the BHC Act Amendments of 1970
had been in effect on such date, by virtue of its
ownership and control on that date of more than 25
per cent of the outstanding voting shares of Bank.
Weerva changed its name to Westland Banks, Inc.
on November 10, 1972. On June 1, 1976, WBI
owned and controlled 100 per cent (less directors’
qualifying shares) of the outstanding voting shares
of Bank.
4. Westland Travel Service was owned and con­
trolled by WBI on July 7, 1970 and it engaged in the
business of providing general travel agency services
primarily for customers of WBI’s subsidiary banks.
The disposition of Westland Travel Service by WBI
was necessary or appropriate to effectuate § 4 of the
Act if WBI were to continue to be a bank holding
company beyond December 31, 1980.3
5. On June 1, 1976, WBI sold the trade name,
good will, appointments, supplies, files, records,
customer lists, transferable insurance policies, out­
standing contracts, accounts receivable and all
other property except cash, bank accounts, and
fixed assets of Westland Travel Services (the
“Travel Service Assets” ) to Westland Travel Ser­
vices, Inc. for $84,944 in cash.
6. Westland Travel Services, Inc. is owned and
controlled by a small group of individual investors,
including the manager of the agency, none of whom
is affiliated with WBI or its subsidiaries.
3On January 26, 1976, the Board determined that the operation
of a travel agency was not a permissible nonbanking activity for
bank holding companies. 62 Federal Reserve B u l l e t i n 148.




761

7. Neither WBI nor any subsidiary of WBI holds
any interest in Westland Travel Service, Inc.
8. Neither Westland Travel Service, Inc. nor any
shareholder of Westland Travel Service, Inc. holds
any interest in WBI or any subsidiary of WBI.
9. No officer, director (including honorary or
advisory director) or employee with policymaking
functions of WBI or any subsidiary of WBI holds
any such position with Westland Travel Services,
Inc.
10. WBI does not control in any manner the
election of a majority of the directors, or exercise a
controlling influence over the management or
policies, of Westland Travel Service, Inc.
On the basis of the foregoing information, it is
hereby certified that:
(A) at the time of its sale of the Travel Service
Assets WBI was a qualified bank holding corpora­
tion, within the meaning of § 6158(f)(1) and subsec­
tion (b) of § 1103 of the Code, and satisfied the
requirements of that subsection;
(B) the Travel Service Assets were “prohibited
property” within the meaning of §§ 6158(f)(2) and
1103(c) of the Code;
(C) the sale of the Travel Service Assets was
necessary or appropriate to effectuate § 4 of the
BHC Act.
This certification is based upon the representa­
tions made to the Board by WBI and upon the facts
set forth above. In the event the Board should
hereafter determine that facts material to this cer­
tification were otherwise than as represented by
WBI or that WBI has failed to disclose to the Board
other material facts, it may revoke this certifica­
tion.
By order of the Board of Governors acting
through its General Counsel, pursuant to delegated
authority (12 CFR § 265.2(b)(3)), effective July
21, 1977.

(Signed)
[SEAL]

R uth

A.

R e is t e r ,

Assistant Secretary of the Board.

762

Federal Reserve Bulletin □ August 1977

ORDERS APPROVED UNDER BANK HOLDING COMPANY ACT
By

the

B oard

of

G overnors

During July 1977, the Board of Governors approved the applications listed below. The orders have
been published in the Federal Register, and copies are available upon request to Publications Services,
Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington,
D.C. 20551.
Section 3

Bank(s)

Applicant

Northeast United Bancorp,
Inc. of Texas, Fort Worth,
Texas

First State Bank,
Bedford, Texas

Board action
(effective
date)

Federal
Register
citation

7/25/77

42 F.R. 38940
8/1/77

B y F ed er a l R e ser v e B a n k s

During June or July 1977, applications were approved by Federal Reserve Banks as listed below.
The orders have been published in the Federal Register, and copies are available upon request to the
Reserve Banks.
Section 3

Applicant

United Banks Corpora­
tion, Hanover, New
Hampshire
The Central Bancor­
poration, Inc.,
Cincinnati, Ohio
Piedmont Bankgroup
Incorporated,
Martinsville,
Virginia
DETROITBANK
Corporation, Detroit,
Michigan




Bank(s)

Hanover Bank and
Trust Company,
Hanover, New
Hampshire
The Central Security
National Bank of
Lorain County,
Lorain, Ohio
Piedmont Trust Bank,
Collinsville, Virginia;
and Bank of Carroll,
Carroll, Virginia
Kentwood Bank, N.A.,
Kentwood, Michigan

Reserve
Bank

Effective
date

Federal
Register
citation

Boston

7/5/77

42 F.R. 36300
7/14/77

Cleveland

7/5/77

42 F.R. 37597
7/22/77

Richmond

6/30/77

42 F.R. 35220
7/8/77

Chicago

7/7/77

42 F.R. 37865
7/25/77

Law Departm ent

763

PENDING CASES INVOLVING THE BOARD OF GOVERNORS*
BankAmerica Corporation v. Board o f Governors ,

Memphis Trust Company v. Board o f Governors ,

filed May 1977, U.S.D.C. for the Northern Dis­
trict of California.
BankAmerica Corporation v. Board o f Governors ,
filed May 1977, U.S.C.A. for the Ninth Circuit.
First Security Corporation v. Board o f Governors ,
filed March 1977, U.S.C.A. for the Tenth Cir­
cuit.
Farmers State Bank o f Crosby v. Board o f Gover­
nors, filed January 1977, U.S.C.A. for the Eighth
Circuit.
National Automobile Dealers Association, Inc. v.
Board o f Governors , filed November 1976,
U.S.C.A. for the District of Columbia.
First Security Corporation v. Board o f Governors ,
filed August 1976, U.S.C.A. for the Tenth Cir­
cuit.
Central Wisconsin Bankshares, Inc. v. Board o f
Governors , filed June 1976, U.S.C.A. for the
Seventh Circuit.
National Urban League, et al. v. Office o f the
Comptroller o f the Currency, et al., filed April
1976, U.S.D.C. for the District of Columbia
Circuit.

filed February 1976, U.S.D.C. for the Western
District of Tennessee.
First Lincolnwood Corporation v. Board o f Gover­
nors, filed February 1976, U.S.C.A. for the
Seventh Circuit.
Roberts Farm, Inc. v. Comptroller o f the Currency,
et al ., filed November 1975, U.S.D.C. for the
Southern District of California.
Florida Association o f Insurance Agents, Inc. v.
Board of Governors , and National Association
of Insurance Agents, Inc. v. Board of Gover­
nors, filed August 1975, actions consolidated in
U.S.C.A for the Fifth Circuit.
t tDavid R. Merrill, et al. v. Federal Open Market
Committee o f the Federal Reserve System, filed
May 1975, U.S.D.C. for the District of Colum­
bia, appeal pending, U.S.D.A. for the District
of Columbia.
Louis J. Roussel v. Board o f Governors , filed April
1975, U.S.D.C. for the Eastern District of
Louisiana.
Georgia Association o f Insurance Agents, et al. v.
Board of Governors , filed October 1974,
U.S.C.A. for the Fifth Circuit.
Alabama Association o f Insurance Agents, ?t al. v.
Board of Governors , filed July 1974, U.S.C.A.
for the Fifth Circuit.
Bankers Trust New York Corporation v. Board of
Governors , filed May 1973, U.S.C.A. for the
Second Circuit.

Farmers & Merchants Bank o f Las Cruces, New
Mexico v. Board o f Governors , filed April 1976,

U.S.C.A. for the District of Columbia Circuit.
Grandview Bank & Trust Company v. Board of
Governors , filed March 1976, U.S.C.A. for the

Eighth Circuit.
Association o f Bank Travel Bureaus, Inc. v. Board
o f Governors, filed February 1976, U.S.C. A. for

the Seventh Circuit.
*This list of pending cases does not include suits against the
Federal Reserve Banks in which the Board of Governors is not
named a party.




tDecisions have been handed down in these cases, subject to
appeals noted.
tThe Board of Governors is not named as a party in this action.

765

Announcements
R E G U L A T IO N B: In te rp re ta tio n
The Board of Governors of the Federal Reserve
System on August 4, 1977, issued an interpretation
of the provision of its Regulation B (Equal Credit
Opportunity) dealing with Federal or State
special-purpose credit programs.
The Equal Credit Opportunity Act and Regulation
B provide that it is not illegal to deny credit solely
because the applicant does not qualify for credit
that is “ expressly authorized by Federal or State
law” for the benefit of an economically disadvan­
taged class of persons. An example of such a
special-purpose credit program would be one de­
signed to benefit economically disadvantaged
American Indians. It is not illegal to exclude nonIndian applicants for credit under such a program.
The interpretation states that a credit program is
considered to be “ expressly authorized by Federal
or State law” if it is authorized by the terms of a
Federal or State statute or by a regulation lawfully
promulgated by the Federal or State agency re­
sponsible for implementing the program.
When it proposed on May 10, 1977, the interpre­
tation now adopted, the Board announced that in its
opinion any determinations as to whether a Federal
or State special-purpose credit program benefits an
economically disadvantaged class of persons are
best made by the agency charged with the adminis­
tration of the loan program.
In taking final action, the Board added that it is
the responsibility of governmental agencies operat­
ing special-purpose loan programs to be sure that
their regulations are consistent with relevant State
and Federal laws. Creditors will not violate Regula­
tion B by complying with State or Federal specialpurpose loan program laws.

R E V IS IO N O F
C O N S U M E R C R E D IT IN F O R M A T IO N
This issue of the B u l l e t i n contains numerous
revisions of previously published consumer instal­
ment credit figures (pp. A42 and A43). These
changes are based primarily on information derived



from newly available benchmarks and in some cases
from new estimating procedures derived from mate­
rials that were previously unavailable.
In general, all series are revised through Decem­
ber 1976, with estimates for subsequent months
derived from reports of representative samples of
credit grantors. Seasonally adjusted series for each
of the lender groups reflect revised seasonal fac­
tors.
Complete tables of revised data from January
1970 are available upon request from the Mortgage
and Consumer Finance Section, Division of Re­
search and Statistics, Board of Governors of the
Federal Reserve System, Washington, D.C. 20551.

D IS C O N T IN U A N C E
O F B A N K C R E D IT P R O X Y
The Board of Governors has discontinued the pub­
lication and construction of the bank credit proxy.
In recent years the proxy—which is based solely
on data for member banks—has become increas­
ingly less representative of total bank credit, in
part because of the growth in importance of non­
member banks and in part because the proxy does
not include certain borrowings by banks from the
nonbank public.

R E V IS E D O TC S T O C K L IS T
The Board of Governors published a revised list of
over-the-counter (OTC) stocks that are subject to
its margin regulations, effective August 12, 1977.
The list supersedes the revised list of OTC
margin stocks that was issued on December 30,
1976. Changes that have been made in the list,
which now includes 1,106 OTC stocks, are as
follows:
—195 stocks have been included for the first
time.
—13 stocks previously on the list have been
removed for substantially failing to meet the re­
quirements for continued listing.

766

Federal Reserve Bulletin □ August 1977

—43 stocks have been removed because they are
now listed on a national securities exchange or the
companies were acquired by another firm.
The list is available on request from Publications
Services, Division of Administrative Services,
Board of Governors of the Federal Reserve Sys­
tem, Washington, D.C. 20551.

C H A N G E S IN B O A R D S T A F F
The Board of Governors has announced the follow­
ing appointments:
Samuel H. Talley, Senior Economist in the Divi­
sion of Research and Statistics, to be Assistant
Director in the Division of Banking Supervision and
Regulation, effective July 18, 1977. Prior to joining
the Board’s staff in 1970, Mr. Talley was Assistant
and Associate Professor of Economics at the Uni­
versity of Maine. He holds a B.A., M.B.A., and
Ph.D. from Syracuse University and an M.A. from
the University of Michigan.




Robert E. Matthews as Assistant Secretary of the
Board for a 6-month period beginning August 1,
1977. Mr. Matthews, Assistant General Auditor at
the Federal Reserve Bank of Philadelphia, replaces
Ruth A. Reister who has returned to the Federal
Reserve Bank of Minneapolis. Mr. Matthews holds
a B.S. from Western Kentucky University and an
M.B.A. from Georgia State University.
The Board has also announced the retirement of
William W. Layton, Director of Equal Employment
Opportunity in the Office of Staff Director for
Management, effective August 1, 1977.
SY ST E M M E M B E R S H IP :
A dm ission o f S tate B an k
The following bank was admitted to membership in
the Federal Reserve System during the period July
16, 1977, through August 15, 1977:
Montana

Butte..................... First Citizens Bank of Butte

767

Industrial Production
Released for publication August 15

Industrial production in July increased by an esti­
mated 0.5 per cent to 139.0 per cent of the 1967
average. This followed rises of 0.7 and 0.9 per cent
in June and May, respectively. There were rela­
tively large increases in output of consumer durable
goods and business equipment. These increases
were partly offset by reductions in coal and copper
output, due to strikes, and by a reduction in steel
output.
Total industrial production in the second quarter
was 2.8 per cent above that in the first quarter,
following revision of earlier estimates of production
in May and June. It is estimated that in July pro­
duction was 6.4 per cent above a year earlier.
Output of consumer durable goods rose 1.6 per
cent in July, reflecting a large increase in auto­
motive products and a more moderate rise in home
goods. Production of consumer nondurable goods
again edged up only a little. Output of business
equipment advanced by an estimated 1.2 per cent,
reflecting, in part, a large increase in truck assem­
blies. Output of intermediate products, such as
construction and business supplies, increased 0.8
per cent.
Output of durable goods materials was reduced
slightly in July, as further sizable gains in the pro­
duction of parts and components for consumer
durable goods and business equipment were more

than offset by weakness in basic metal materials,
particularly steel. Nondurable goods materials are
estimated to have increased moderately. Output of
energy materials increased appreciably, reflecting a
sharply greater than seasonal rise in electricity
generation.
Seasonally adjusted, ratio scale, 1967=100

F.R. indexes, seasonally adjusted. Latest figures: July.
*Auto sales and stocks include imports.

Seasonally adjusted, 1967 = 100
Per cent changes from—
1977

Industrial production
Apr.

May

Junep

Julye

..............................................................................

136.2

137.4

138.3

139.0

.5

6.4

2.8

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

136.1
134.3
143.3
151.7
140.0
147.0
142.7
137.4
136.3

137.1
135.2
144.0
152.4
140.7
148.8
144.1
138.9
137.8

138.0
136.1
144.4
155.0
140.3
150.8
145.4
140.2
138.8

138.9
136.9
145.3
157.5
140.4
152.6
146.6
141.0
139.1

.7
.6
.6
1.6
.1
1.2
.8
.6
.2

7.0
7.3
6.2
11.1
4.2
11.5
6.5
5.9
5.2

2.3
2.5
1.8
3.4
1.2
4.0
1.6
2.0
3.5

Total

Preliminary.




Estimated.

Month ago

Year ago

Ql to Q2

A 1

Financial and Business Statistics
CONTENTS
DOMESTIC FINANCIAL STATISTICS

W

A3
A4
A5

Assets and Liabilities of—
A20
All reporting banks
A21
Banks in New York City
A22
Banks outside New York City
A23 Balance sheet memoranda
A24 Commercial and industrial loans

A6

Monetary aggregates and interest rates
Factors affecting member bank reserves
Reserves and borrowings of member
banks
Federal funds transactions of money
market banks

P o l ic y I n s t r u m e n t s

A8 Federal Reserve Bank interest rates
A9 Member bank reserve requirements
A 10 Maximum interest rates payable on
time and savings deposits at Federally
insured institutions
A10 Margin requirements
A 11 Federal Reserve open market
transactions
F e d er a l R eser ve B a n k s

A12 Condition and F.R. note statements
A13 Maturity distribution of loan and
security holdings
M

onetary

and

C r e d it A

ssets a n d

L ia b il it ie s

A16 Last-Wednesday-of-month series
A17 Call-date series
A 18 Detailed balance sheet, Dec. 31, 1976




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

A25 Gross demand deposits of individuals,
partnerships, and corporations
F in a n c ia l M

arkets

A25 Commercial paper and bankers
acceptances outstanding
A26 Prime rate charged by banks on
short-term business loans
A26 Interest rates charged by banks on
business loans
A27 Interest rates in money and capital
markets
A28 Stock market—Selected statistics
A29 Savings institutions—Selected assets
and liabilities

ggregates

A13 Demand deposit accounts—Debits and
rate of turnover
A 14 Money stock measures and components
A 15 Aggregate reserves and deposits of
member banks
A15 Loans and investments of all
commercial banks
C o m m e r c ia l B a n k A

eekly

F e d e r a l F in a n c e

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

A2

Federal Reserve Bulletin □ July 1977

S e c u r it ie s M

arkets a n d

C o rpo rate F in a n c e

A 36 N ew security issues— State and local
government and corporate
A 37 Corporate securities— Net change in
amounts outstanding
A 37 Open-end investment companies— Net
sales and asset position
A 38 Corporate profits and their distribution
A38 Nonfinancial corporations— Assets and
liabilities
A38 Business expenditures on new plant
and equipment
A 39 Dom estic finance companies— A ssets
and liabilities; business credit
R eal E state

A 40 Mortgage markets
A41 Mortgage debt outstanding

INTERNATIONAL STATISTICS
A 54 U .S . international transactions—
Summary
A55 U .S . foreign trade
A55 U .S . reserve assets
A 56 Selected U .S . liabilities to foreigners
and to foreign official institutions
R epo rted

A 57
A 59
A 60
A61

by

B anks

Short-term
Long-term
Short-term
Long-term

in

the

U

n it e d

S ta tes:

liabilities to foreigners
liabilities to foreigners
claims on foreigners
claims on foreigners

A 62 Foreign branches of U.S. banks—
Balance sheet data
S e c u r it ie s H o l d in g s

and

T r a n s a c t io n s

A42 Total outstanding and net change
A43 Extensions and liquidations

A 64 Marketable U.S. Treasury bonds and
notes— Foreign holdings and
transactions
A 64 Foreign official accounts
A65 Foreign transactions in securities

Flow

R epo rted

C o n s u m e r In s t a l m e n t C r e d it

of

Funds

the

A 44 Funds raised in U .S . credit markets
A45 Direct and indirect sources of funds to
credit markets
DOMESTIC NONFINANCIAL STATISTICS
A46 Nonfinancial business activity—
Selected measures
A 46 Output, capacity, and capacity
utilization
A47 Labor force, employment, and
unemployment
A48 Industrial production— Indexes and
gross value
A 50 Housing and construction
A51 Consumer and w holesale prices
A 52 Gross national product and income
A53 Personal income and saving




by

N

o n b a n k in g

Concerns

in

U n it e d S t a t e s :

A 66 Short-term liabilities to and claims on
foreigners
A67 Long-term liabilities to and claims on
foreigners
In t e r e s t

and

E xc h a n g e R ates

A68 Discount rates of foreign central banks
A68 Foreign short-term interest rates
A68 Foreign exchange rates
A69 GUIDE TO TABULAR PRESENTATION
AN D STATISTICAL RELEASES

Domestic Financial Statistics

A3

1.10 MONETARY AGGREGATES AND INTEREST RATES
1976

1977

1977

Item
Q3

Q4

Ql

Q2

Mar.

Apr.

May

June

July

Monetary and credit aggregates
(annual rates of change, seasonally adjusted in per cent)12

1
2
3

Member bank reserves
T otal...............................................................................
Required........................................................................
Nonborrowed...............................................................

2.7
2 .4
2 .6

4 .4
4 .0
4 .8

2.7
3.0
2 .6

3.0
3.5
1.9

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

13.0
13.9
14.1

1.5
0.9
-3 .1

4.8
6.9
2.9

4
5
6

Concepts of money 1
M - l.................................................................................
M -2 .................................................................................
M -3.................................................................................

4 .4
9.1
11.4

6.5
12.5
14.4

4 .2
9.9
11.3

8.5
9.3
10.0

5.4
8.6
9 .4

19.4
13.5
12.4

0.7
4 .7
7.3

4.9
8.3
9 .7

7
8
9

Time and savings deposits
Commercial banks:
T otal...........................................................................
Other than large CD ’s ............................................
Thrift institutions 2 .....................................................

7.0
12.8
14.8

12.2
17.1
17.3

12.5
14.0
13.4

8.3
9.8
11.1

6.7
10.7
10.9

6.9
9.5
10.5

8.3
7.6
11.1

13.2
10.7
11.7

10 Total loans and investments at commercial banks 3

6.9

10.8

8.8

11.9

10.0

14.0

10.3

8.9

Interest rates (levels, per cent per annum)

11
12
13
14

Short-term rates
Federal funds 4 .........................................................................
Treasury bills (3-month market yield) 5....................... ..
Commercial paper (90- to 119-day) 6 ..................................
Federal Reserve discount 7....................................................

5.28
5.15
5.41
5.50

4.88
4.67
4.91
5.39

4.66
3.63
4.74
5.25

5.16
4.84
5.15
5.25

4.69
4.60
4.75
5.25

4.73
4.54
4.75
5.25

5.35
4.96
5.26
5.25

5.39
5.02
5.42
5.25

5.42
5.19
5.38
5.25

15
16
17

Long-term rates
Bonds:
U.S. G ovt.8........................................................................
State and local government 9 ............................................
Aaa utility (new issue) i o ...................................................

7.90
6.64
8.48

7.54
6.18
8.15

7.62
5.88
8.17

7.68
5.70

7.74
5.89
8.25

7.67
5.73
8.26

7.74
5.75
8.33

7.64
5.62
8.21

7.60
5.63
8.14

18

Conventional mortgages 11...................................................

9.03

8.95

8.82

8.95

8.85

8.90

8.95

9.00

1 M -l equals currency plus private demand deposits adjusted.
M-2 equals M -l plus bank time and savings deposits other than large
negotiable C D ’s.
M-3 equals M-2 plus deposits at mutual savings banks, savings and
loan associations, and credit union shares.
2 Savings and loan associations, mutual savings banks, and credit
unions.
3 Quarterly changes calculated from figures shown in Table 1.23.
4 Seven-day averages o f daily effective rates (average o f the rates on
a given date weighted by the volume o f transactions at those rates).
5 Quoted on a bank-discount rate basis.
6 Most representative offering rate quoted by five dealers.




7 Rate for the Federal Reserve Bank o f New York.
8 Market yields adjusted to a 20-year maturity by the U.S. Treasury.
9 Bond Buyer series for 20 issues o f mixed quality.
i o Weighted averages o f new publicly offered bonds rated Aaa, Aa,
and A by Moody’s Investors Service and adjusted to an Aaa basis.
Federal Reserve compilations.
11 Average rates on new commitments for conventional first mortgages
on new homes in primary markets, unweighted and rounded to nearest
5 basis points, from Dept, o f Housing and Urban Development.
12 Unless otherwise noted, rates o f change are calculated from average
amounts outstanding in preceding month or quarter.

A4

Domestic Financial Statistics □ August 1977

1.11

FACTORS AFFECTING MEMBER BANK RESERVES
Millions o f dollars
Monthly averages o f daily
figures

Weekly averages o f daily figures for weeks ending—

1977

1977

Factors

May

June

July?

June 15

June 22

June 29

July 6

July 13

July 10*

July U p

112,694

109,453

113,970

103,365

111,518

117,210

117,495

113,160

113,223

112,251

99,023
97,000

95,337
94,132

98,359
96,930

90,289
90,289

97,194
96,244

101,992
98,359

102,127
97,857

97.435
97.435

96,869
96,508

97.338
96.339

2,023
7,259
7,077

1,205
7,312
7,176

1,429
7,611
7,423

7.059
7.059

950
7,165
7,110

3,633
7,878
7,436

A,HQ
7,934
7,423

7.423
7.423

361
7,491
7,423

999
7,590
7,423

s u p p l y in g r e se r v e f u n d s

1 Reserve Bank credit outstanding.. . .
?,
3
4

U.S. Govt, securities1.......................
Bought outright...........................
Held under repurchase agree­
ment ...........................................

6
7

Bought outright...........................
Held under repurchase agree-

182

136

188

55

442

511

68

167

8
9
10

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

489
200
2,773
2,950

228
262
3,432
2,882

213
336
4,089
3,362

52
223
2,979
112,762

203
111
3,777
2,906

565
334
3,421
3,020

528
265
3,570
3,070

37
160
4,932
3,172

56
406
4,989
3,412

207
295
3,620
3,201

12
13

Gold stock................. ...........................
Special Drawing Rights certificate
account...........................................
Treasury currency outstanding.........

11,632

11,628

11,609

11,629

11,629

11,626

11,620

11,616

11,605

11,605

1,200
11,056

1,200
11,099

1,200
11,146

1,200
11,091

1,200
11,110

1,200
11,113

1,200
11,118

1,200
11,140

1,200
11,151

1,200
11,153

94,968
442

96,029
437

9 1 ,A ll
431

96,146
434

95,993
440

95,951
441

97,065
441

97,921
439

97,604
427

97,166
423

10,997
322
559

7,057
277
675

8,843
324
759

1,320
18 287
715

8,690
261
600

14,058
259
628

12,560
368
724

9,022
271
630

6,783
330
1,025

8,000
256
638

14

ABSORBING RESERVE FUNDS
15
16

Currency in circulation.......................
Treasury cash holdings.......................
Deposits, other than member bank
reserves with F.R. Banks :
Treasury............................................
Foreign...............................................
Other2................................................

17
19
20
21

Other F.R. liabilities and capital. . . .
Member bank reserves with F.R.
Banks.................................................

3,324

3,260

3,395

3,125

3,289

3,525

3,460

3,262

3,328

3,431

25,970

25,646

26,747

25,258

26,184

26,290

26,815

25,572

27,683

26,296

End-of-month figures

Wednesday figures

1977

1977

May

June

July?

June 15

June 22

June 29

July 6

July 13

July 10 p

July 21p

SUPPLYING RESERVE FU N D S
22

Reserve Bank credit outstanding. . . .

111,838

117,679

113,896

105,657

115,783

117,750

111,357

111,612

115,584

113,779

23
24
25

U.S. Govt, securities1.......................
Bought outright...........................
Held under repurchase agree­
m ent...........................................
Federal agency securities.................
"Bought outright...........................
Held under repurchase agree­
ment ...........................................

97,394
96,560

102,239
98,163

98,711
96,381

90.720
90.720

99,451
96,709

101,864
98,310

96.695
96.695

96.699
96.699

98,418
95,891

98,397
96,834

834
7,087
7,077

4,076
8,033
7,423

2,330
7,768
7,423

7.056
7.056

1,1 Al
7,680
7,436

3,554
7,778
7,436

7.423
7.423

7,423
1,413

2,527
7,896
7,423

1,563
7,628
7,423

10

610

345

244

342

473

205

29
30
31
32

Acceptances......................................
L oans.................................................
Float...................................................
Other Federal Reserve assets___

108
400
3,993
2,856

621
260
3,604
2,922

393
788
2,523
3,713

49
974
4,005
2,853

399
1,214
4,056
2,983

456
606
4,064
2,982

41
185
3,846
3,167

32
383
3,004
4,071

211
222
4,597
4,240

268
514
3,740
3,232

33
34

Gold stock............................................
Special Drawing Rights certificate
account..............................................
Treasury currency outstanding.........

11,629

11,620

11,595

11,629

11,629

11,620

11,620

11,605

11,605

11,605

1,200
11,026

1,200
11,081

1,200
11,166

1,200
11,096

1,200
11,112

1,200
11,116

1,200
11,139

1,200
11,142

1,200
11,151

1,200
11,166

95,606
433

96,652
440

97,101
423

96,318
435

96,116
441

96,678
441

97,989
438

97,762
439

97,564
427

97,422
421

5,838
436
831

15,183
379
748

8,789
469
578

1,228
344
657

12,958
250
631

16,115
287
592

9,647
372
607

8,527
251
677

7,220
247
1,867

8,616
289
699

26
27
28

35

ABSORBING RESERVE FU N D S
36 Currency in circulation......................
37 Treasury cash holdings.......................
Deposits, other than member bank
reserves with F.R. Banks:
38
Treasury............................................
39
Foreign..............................................
40
Other2................................................
41
42

Other F.R. liabilities and capital. . .
Member bank reserves with F.R.
Banks.................................................

3,539

3,616

3,606

3,173

3,348

3,526

3,159

3,288

29,009

24,562

26,892

27,427

25,981

24,048

23,105

24,616

1 Includes securities loaned—fully guaranteed by U.S. Govt, securities
pledged with F.R. Banks—and excludes (if any) securities sold and scheduled to be bought back under matched sale-purchase transactions.
2 Includes certain deposits o f foreign-owned banking institutions




3,383 •
28,833

3,495
26,809

voluntarily held with member banks and redeposited in full with Federal
Reserve Banks.
N ote.—For amounts o f currency and coin held as reserves, see Table
1.12.

Member Banks

A5

1.12 RESERVES AND BORROWINGS Member Banks
Millions of dollars
Monthly averages o f daily figures
Reserve classification

1
?
3
4
<>
6
7
8
9
10
11
1?
n
14
is
16
17
18
19
20
21
22
23

1975

1977

1976

Dec.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May

June

July*

27,215
7,773
34,989
34,727
262

26,458
8,180
34,797
34,433
364

26,430
8,548
35,136
34,964
172

27,229
8,913
36,290
35,796
494

25,725
8,326
34,199
34,234
-3 5

25,849
8,134
34,135
33,870
265

26,096
8,368
34,613
34,602
11

25,970
8,610
34,732
34,460
272

25,646
8,609
34,406
34,293
113

26,747
8,617
35,465
35,039
426

127
13

84
21

62
12

61
8

79
12

110
13

73
14

200
31

262
55

336
59

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

6,812
6,748
64
63

6,589
6,485
104
36

6,520
6,602
-8 2
15

7,076
6,948
128
6

6,442
6,537
-9 5
47

6,331
6,259
72
44

6,264
6,351
-8 7
16

6,310
6,279
31
18

6,241
6,188
53
36

6,314
6,342
-2 8
74

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

1,740
1,758
-1 8

1,621
1,602
19

1,632
1 641
—9
4

1,731
1,698
33
2

1,624
1,624

1,610
1,611
-1
3

1,629
1,634
-5
*

1,637
1,634
3
4

1,662
1,627
35
15

1,519
1,602
-8 3
5

13,249
13,160
89
26

12,889
12,802
87
7

13,117
13,053
64
14

13,556
13,427
129
25

12,683
12,765
-8 2
4

12,779
12,705
74
29

13,090
13,110
-2 0
23

13,067
12,996
71
62

12,869
12,943
-7 4
80

13,200
13,284
-8 4
77

13,188
13,061
127
38

13,698
13,544
154
41

13,867
13,668
199
29

13,927
13,723
204
28

13,450
13,308
142
28

13,415
13,295
120
34

13,630
13,507
123
34

13,718
13,551
167
116

13,634
13,535
99
131

14,047
13,811
236
180

All member banks
Reserves:
Currency and co in ........................
Total held*......................................
Required......................................
Borrowings at F.R. Banks:2
T otal.................................................

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

Weekly averages o f daily figures for weeks ending—
1977
May 25

June 1

June 8

June 15

June 22

June 29

July 6

July 13

July 20 p

July 27*

All member banks
Reserves:
At F.R. Banks................................
Currency and co in ........................
Total held1......................................
Required......................................
Excess1........................................
Borrowings at F.R. Banks:2
29
T otal................................................
30
Seasonal..........................................

25,632
8,149
33,933
33,798
135

25,681
8,585
34,418
34,009
409

24,831
8,751
33,734
33,701
33

25,258
8,695
34,104
33,858
246

26,184
8,360
34,696
34,623
73

26,290
8,623
35,064
34,914
150

26,815
8,676
35,619
35,125
494

25,572
8,964
34,635
34,371
264

27,683
7,851
35,628
35,315
313

26,296
8,803
35,193
35,096
97

311
35

230
45

226
52

223
48

271
52

334
70

265
61

160
51

406
56

295
68

31
32
33
34

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

5,988
6,034
-4 6
27

6,312
6,227
85
9

6,042
6,099
-5 7
83

6,118
6,065
53
16

6,207
6,231
-2 4
57

6,394
6,315
79

6,368
6,438
-7 0

6,297
6,211
86

6,359
6,473
-1 1 4
208

6,145
6,204
-5 9

35
36
37
38

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

1,559
1,568
-9

1,670
1,594
76

1,578
1,594
-1 6

1,627
1,629
-2
49

1,648
1,652
-4
14

1,629
1,637
-8

1,665
1,626
1,568
39

1,542

1,696
1,636
60

1,568
1,574
-6

Other large banks
Reserves held......................................
Required..........................................
Excess..............................................
42
Borrowings2........................................

12,757
12,680
77
111

12,804
12,749
55
62

12,664
12,678
41 - 1 4
51

12,864
12,828
36
74

13,078
13,069
9
70

13,147
13,184
-3 7
126

13,542
13,240
302
102

13,042
13,048
-6
20

13,163
13,434
-2 7 1
42

13,063
13,297
-2 3 4
81

All other banks
Reserves held......................................
Required.........................................
Excess..............................................
Borrowings2........................................

13,629
13,516
113
173

13,632
13,439
193
159

13,450
13,330
120
92

13,495
13,336
159
84

13,763
13,671
92
130

13,894
13,778
116
208

14,044
13,821
223
163

13,754
13,544
210
115

13,814
13,772
42
156

14,111
14,021
90
214

24
25
26
27
28

39
40

43
44
45
46

i Adjusted to include waivers o f penalties for reserve deficiencies in
accordance with Board policy, effective Nov. 19, 1975, o f permitting
transitional relief on a graduated basis over a 24-month period when a
nonmember bank merges into an existing member bank, or when a




-2 6
25

nonmember bank joins the Federal Reserve System. For weeks for which
figures are preliminary, figures by class o f bank do not add to total
because adjusted data by class are not available,
2 Based on closing figures.

A6

Domestic Financial Statistics □ August 1977

1.13 FEDERAL FUNDS TRANSACTIONS of Money Market Banks
Millions of dollars, except as noted
1977, week ending Wednesday—

Type
June 1

June 8

June 15

June 22

June 29

July 6

July 13

July 20

July 27

Total, 46 banks

1

Basic reserve position
Excess reserves1............................
L ess :

2
3

4
5

Borrowings at F.R. Banks. . .
Net interbank Federal funds
transactions.......................
E quals : N et surplus, or
deficit ( —):
Amount......................................
Per cent o f average required
reserves..............................
Interbank Federal funds transactions
Gross transactions:
Purchases.......................................
Sales.................................................
Two-way transactions2 ...................
Net transactions:
Purchases o f net buying banks..
Sales o f net selling banks............

11
12
13

Related transactions with U.S.
Govt, securities dealers
Loans to dealers3...................
Borrowing from dealers4 . . .
Net loans..................................

164

-2 0

68

17

36

171

109

147

19

87

105

96

51

3

26

228

12

13,970

18,101

17,921

16,742

12,789

14,896

20,249

18,601

16,218

-1 3 ,8 2 5

-1 8 ,2 0 8

-1 7 ,9 5 8

-1 6 ,8 2 1

-1 2 ,8 0 4

-1 4 ,7 2 8

-2 0 ,1 6 6

-1 8 ,6 8 3

-1 6 ,1 8 9

9 4 .6

125.7

123.4

113.2

85.5

97.4

136.4

121.9

108.9

21,749
7,779
5,391

24,451
6,350
4,711

23,993
6,072
4,732

24,407
7,665
5,462

21,551
8,763
5,170

23,693
8,797
5,822

27,180
6,930
4,971

26,631
8,030
6,489

23,596
7,379
4,990

16,358
2,389

19,740
1,639

19,261
1,340

18,945
2,203

16,381
3,593

17,871
2,974

22,209
1,960

20,142
1,541

18,606
2,388

2,909
1,707
1,202

5,462
2,187
3,274

4,593
1,968
2,625

2,895
1,733
1,162

1,905
2,235
-3 2 9

2,665
1,715
950

3,233
998
2,235

2,906
1,386
1,520

2,387
1,644
743

66

-2 0

71

41

8 banks in New York City

14

Basic reserve position
Excess reserves1...........................

53

17
18

Borrowings at F.R. Banks. ..
Net interbank Federal funds
transactions.......................
E quals : Net surplus, or
deficit ( —):
Amount......................................
Per cent o f average required
reserves..............................
Interbank Federal funds transactions
Gross transactions:

19

P u rch ases..........................................

20
21

Sales.................................................
Two-way transactions2...................
Net transactions:
Purchases o f net buying banks..
Sales o f net selling banks...........

22
23

24
25
26

Related transactions with U.S.
Govt, securities dealers
Loans to dealers3...................
Borrowing from dealers4 . . .
Net loans..................................

-5

71

-1 6

-1 8

40

83

16

57

4,445

6,062

5,438

5,551

4,305

5,873

7,698

5,847

5,806

-4 ,3 9 2

-6 ,1 6 3

-5 ,4 1 4

-5 ,6 1 2

- 4 ,2 3 4

-5 ,8 8 9

-7 ,6 3 2

-6 ,0 7 5

-5 ,7 3 5

77.5

111.3

98.4

99.4

73.9

100.5

135.2

103.5

102.3

5,835
1,390
1,390

6,900
838
838

6,660
1,222
1,222

6,878
1,327
1,327

5,566
1,261
1,261

7,335
1,462
1,462

8,427
728
728

7,685
1,838
1,838

6,534
728
728

4,445

6,062

5,438

5,551

4,305

5,873

7,698

5,847

5,806

1,705
679
1,026

2,661
737
1,924

2,067
466
1,602

1,425
720
705

868
581
287

1,369
548
821

U937
524
1,414

1,620
643
977

1,190
657
533

-3 0

L ess :

15
16

208

38 banks outside New York City

27

Basic reserve position
Excess reserves1................................
L e ss :

28
29

30
31

Borrowings at F.R. Banks.........
Net interbank Federal funds
transactions...........................
E quals : Net surplus, or
deficit ( —):
Amount..........................................
Per cent o f average required
reserves...................................
Interbank Federal funds transactions
Gross transactions:
Purchases.......................................
Sales................................................
Two-way transactions2...................
Net transactions:
Purchases o f net buying banks..
Sales o f net selling banks...........

37
38
39

Related transactions with U.S.
Govt, securities dealers
Loans to dealers3...................
Borrowing from dealers4. . . .
Net loans..................................

For notes seeend of table.



29

21

-3 5

188

43

167

19

4

89

39

51

3

26

20

12

9,525

12,038

12,483

11,191

8,483

9,023

12,551

12,754

10,412

- 9 ,4 3 3

-1 2 ,0 4 4

-1 2 ,5 4 3

-1 1 ,2 0 9

- 8 ,5 7 0

-8 ,8 3 9

-1 2 ,5 3 4

-1 2 ,6 0 8

-1 0 ,4 5 3

105.4

134.7

138.6

121.7

92.6

95.5

137.1

133.4

112.8

15,914
6,389
4,001

17,551
5,512
3,873

17,333
4,850
3,510

17,529
6,337
4,135

15,985
7,501
3,909

16,358
7,334
4,360

18,753
6,202
4,243

18,947
6,192
4,651

17,062
6,651
4,263

11,913
2,389

13,678
1,639

13,824
1,340

13,394
2,203

12,076
3,593

11,998
2,974

14,511
1,960

14,295
1,541

12,800
2,388

1,204
1,028
175

2,801
1,450
1,351

2,526
1,503
1,024

T,470
1,014
457

1,038
1,653
-6 1 6

1,296
1,167
129

1,296
475
822

1,286
743
543

1,197
987
210

111

-2

Federal Funds

A7

1.13 Continued
1977, week ending Wednesday-

Type
June 1

June 8

June 15

June 22

June 29

July 6

July 13

July 20

July 27

-7

59

13

5 banks in City o f Chicago
Basic reserve position
Excess reserves1............................
Less:
41
Borrowings at F.R. Banks. . .
42
Net interbank Federal funds
transactions.......................
40

43
44

Equals: Net surplus, or
deficit ( —):
Amount....................................
Per cent o f average required
reserves............................
Interbank Federal funds transactions
Gross transactions:
Purchases........................................
Sales................................................
Two-way transactions2 ...................
Net transactions:
Purchases o f net buying banks. .
Sales o f net selling banks...........

50
51
52

Related transactions with U.S.
Govt, securities dealers
Loans to dealers 3...................
Borrowing from dealers4 . . .
Net loans..................................

61

6

20

-7

-6

49

14

34

25

5,066

5,973

6,042

5,882

4,994

4,874

6,552

6,770

5,964

-5,006

-5 ,9 6 7

-6 ,0 7 1

- 5 ,9 0 3

-5 ,0 0 1

-4 ,8 4 0

-6 ,5 8 3

-6 ,7 1 1

-5 ,9 5 1

322.1

400.5

398.1

381.7

326.7

318.3

449.6

439.0

403.3

6,038
972
972

6,783
811
811

6,708
666
666

6,902
1,020
1,020

6,122
1,128
1,128

5,988
1,114
1,114

7,444
892
892

7,812
1,042
1,042

7,108
1,144
1,144

5,066

5,972

6,042

5,882

4,994

4,874

6,552

6,770

5,964

292
460
-1 6 8

497
411
86

401
406
-5

379
401
-2 2

176
557
-3 8 1

289
374
-8 5

385
53
332

258
144
114

220
283
-6 3

50

108

-4 2

33 other banks
Basic reserve position
Excess reserves1............................
L ess:
54
Borrowings at F.R. Banks. . .
55
N et interbank Federal funds
transactions.......................
53

56
57

Equals: Net surplus, or
deficit ( —):
Amount....................................
Per cent o f average required
reserves............................

51
62

Interbank Federal funds transactions
Gross transactions:
Purchases........................................
Sales.................................................
Two-way transactions2 ................... .
N et transactions:
Purchases o f net buying banks..
Sales o f net selling banks............

63
64
55

Related transactions with U.S.
Govt, securities dealers
Loans to dealers 3...................
Borrowing from dealers4 . . .
Net loans..................................

58
59
50

9

28

-2 9

153

19

4

40

25

51

3

4,459

6,066

6,441

5,309

3,489

4,150

5,999

5,985

4,448

-4 ,4 2 7

-6 ,0 7 7

-6 ,4 7 3

-5 ,3 0 6

-3,569

-3 ,9 9 9

-5 ,9 5 0

- 5 ,8 9 7

-4 ,5 0 2

59 .5

81.5

86.0

69.2

46.2

51.7

77.5

74.4

57.8

9,875
5,417
3,029

10,768
4,702
3,062

10,625
4,184
2,843

10,627
5,317
3,115

9,862
1,373
2,781

10,370

6,220
3,246

11,310
5,310
3,351

11,135
5,150
3,609

9,955
5,507
3,118

6,847
2,389

7,705
1,639

7,782
1,340

7,512
2,203

7,081
3,593

7,124
2,974

7.959
1.960

7,526
1,541

6,836
2,388

912
569
343

2,304
1,039
1,265

2,125
1,097
1,028

1,091
613
479

862
1,092
-2 3 4

1,008
793
214

911
422
489

,028
599
429

977
704
273

50

-7

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




1

20

12

4 Federal funds borrowed, net funds acquired from each dealer by
clearing banks, reverse repurchase agreements (sales o f securities to
dealers subject to repurchase), resale agreements, and borrowings secured
by U.S. Govt, or other securities.
N ote.—Weekly averages o f daily figures. For description o f series,
see Federal Reserve B u lle tin for August 1964, pp. 944-53. Back data for
46 banks appear in the Board’s Annual Statistical Digest, 1971-1975,
Table 3.

A8

Domestic Financial Statistics □ August 1977

1.14 FEDERAL RESERVE BANK INTEREST RATES
Per cent per annum
Current and previous levels
Loans to member banks—
Loans to all others
under Sec. 13, last par.4

Under Scsc. 10(b)2
Federal Reserve
Bank

Under Secs. 13 and 13a1
Special rate3

Regular rate
Rate on
7/31/77

Effective
date

Previous
rate

Rate on
7/31/77

Effective
date

Previous
rate

Rate on
7/31/77

Effective
date

Previous
rate

Rate on
7/31/77

Effective
date

Previous
rate

5*4
5%
5%
5%
5%
5%
5*4
5%
5%
5%
5*4
5%

11/22/76
11/22/76
11/22/76
11/22/76
11/22/76
11/22/76
11/22/76
11/26/76
11/22/76
11/22/76
11/22/76
11/22/76

5*4
5*4
5*4
5*4
5*4
5*4
5*4
5*4
5*4
5 Vi
5*4
5*4

5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%

11/22/76
11/22/76
11/22/76
11/22/76
11/22/76
11/22/76
11/22/76
11/26/76
11/22/76
11/22/76
11/22/76
11/22/76

6
6
6
6
6
6
6
6
6
6
6
6

6%
6%
6*4
6*4
6*4
6%
6%
6*4
6%
6*4
6%
6*4

11/22/76
11/22/76
11/22/76
11/22/76
11/22/76
11/22/76
11/22/76
11/26/76
11/22/76
11/22/76
11/22/76
11/22/76

6*4
6*4
6*4
6*4
6*4
6*4
6*4
6V4
6*4
6*4
6*4
6*4

8%
8%
8*4
8%
8%
8*4
8*4
8%
8%
8%
8*4
8%

11/22/76
11/22/76
11/22/76
11/22/76
11/22/76
11/22/76
11/22/76
11/26/76
11/22/76
11/22/76
11/22/76
11/22/76

8*4
8*4
8*4
8*4
8*4
8*4
8*4
8*4
8*4
8*4
8*4
8*4

Range
(or level)—
All F.R.
Banks

F.R.
Bank
of
N.Y.

B oston....................
New York.............
Philadelphia..........
Cleveland...............
Richmond.............
Atlanta...................
Chicago..................
St. Louis.................
Minneapolis..........
Kansas City...........
D allas.....................
San Francisco. . . .

Range o f rates in recent years5

Effective date

In effect Dec. 31, 1970
1971—Jan.

8 .............
15.............
19.............

22........
Feb.
July
Nov.
Dec.

29.............
13.............
19.............
16.............
2 3
11.............
19.............
13.............
17.............
2 4

Range
(or level)AU F.R.
Banks

F.R.
Bank
of
N.Y.

5*4

5*4

5%-5*4
5%
5 -5%
5 -5V4
5
4% -5
4%
4% -5
5
4%-5

5*4

4%

4%-4%
4*4-4%
4 *4

51/4

5%
5
5
5
4%
5
5
5
4%

4%
4*4
4%

Effective date

1973—Jan. 15.
Feb. 26.
Mar. 2.
Apr. 23.
May 4.

11.

18.
June 11.
15.
July 2.
Aug. 14,
23.

1974—Apr. 25.
30,
Dec. 9,
16,

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




Range
(or level)—
All F.R.
Banks
5
5-5*4
5*4

5*4-5%
5%
5*4-6

<&>%

F.R.
Bank
of
N .Y.
5

5V4

5*4
5V4
5 Va

6
6

6Vi

7
7-7*4
7*4
7*4-8

8

7%-8
7%

Effective date

1975—Jan.

6.........

10.......

24.........
Feb. 5.........
7.........
Mar. 10.........
14.........
May 16.........
23.........
1976—Jan. 19.........
23.........

8
8

7%
7%

Nov. 22.........

26.........

In effect July 31, 1977

7*4-734
7*4-7%
7%
6%-7%
6%
6*4-6%
6*4

6-6%
6

5*4-6
S'A

V
5%

a Advances to individuals, partnerships, or corporations other than
member banks secured by direct obligations of, or obligations fully
guaranteed as to principal and interest by, the U.S. Govt, or any agency
thereof.
5 Rates under Secs. 13 and 13a (as described above). For description
and earlier data, see the following publications o f the Board o f Governors:
Banking and Monetary Statistics, 1914-1941, Banking and Monetary
Statistics, 1941-1970, and Annual Statistical Digest, 1971-75.

Policy Instruments

A9

1.15 MEMBER BANK RESERVE REQUIREMENTS1
Per cent of deposits
Requirements in effect
July 31, 1977

Previous requirements

Type o f deposit, and deposit interval
in millions o f dollars
Per cent

Effective date

Per cent

Effective date

7
9%
im
1234
16%

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

m
10
12
13
16 f t

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

3

3/16/67

m

3/2/67

3
42%
41

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

m
3
3

3/2/67
3/16/67
3/16/67

6
4 2%
41

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

5
3
3

10/1/70
12/12/74
12/12/74

Net demand:2
2 -1 0 .........................................................................................................
10-100.....................................................................................................
100-400................................................................................................. ..
Over 4 0 0 .................................................................................................
Time:2, 3
Savings.....................................................................................................
Other tim e:
0-5, maturing in—
30-179 days....................................................................................
180 days to 4 years......................................................................
4 years or m ore.............................................................................
Over 5, maturing in—
30-179 days....................................................................................
180 days to 4 years......................................................................
4 years or m ore.............................................................................

Legal limits, July 31, 1977

Net demand:
Reserve city banks
Other banks..........
Tim e...........................
1 For changes in reserve requirements beginning 1963, see Board’s
Annual Statistical Digest, 1971-1975 and for prior changes, see Board’s
Annual Report for 1976, Table 13.
2 (a) Requirement schedules are graduated, and each deposit interval
applies to that part o f the deposits o f each bank. Demand deposits
subject to reserve requirements are gross demand deposits minus cash
items in process o f collection and demand balances due from domestic
banks.
(b) The Federal Reserve Act specifies different ranges o f requirements
for reserve city banks and for other banks. Reserve cities are designated
under a criterion adopted effective Nov. 9, 1972, by which a bank having
net demand deposits o f more than $400 million is considered to have the
character o f business o f a reserve city bank. The presence o f the head
office o f such a bank constitutes designation o f that place as a reserve
city. Cities in which there are F.R. Banks or branches are also reserve
cities. Any banks having net demand deposits o f $400 million or less
are considered to have the character o f business o f banks outside o f
reserve cities and are permitted to maintain reserves at ratios set for banks
not in reserve cities. For details, see the Board’s Regulation D.




Minimum

Maximum

10
7
3

22
14
10

(c)
Member banks are required under the Board’s Regulation M to
maintain reserves against foreign branch deposits computed on the basis
of net balances due from domestic offices to their foreign branches and
against foreign branch loans to U.S. residents. Loans aggregating $100,000
or less to any U.S. resident are excluded from computations, as are total
loans o f a bank to U.S. residents if not exceeding $1 million. Regulation D
imposes a similar reserve requirement on borrowings from foreign banks
by domestic offices o f a member bank. A reserve o f 4 per cent is required
for each o f these classifications.
3 Negotiable orders o f withdrawal (NOW) accounts and time deposits
such as Christmas and vacation club accounts are subject to the same
requirements as savings deposits.
4 The average o f reserves on savings and other time deposits must be
at least 3 per cent, the minimum specified by law.
N ote.—Required reserves must be held in the form o f deposits with
F.R. Banks or vault cash.

A 10 Domestic Financial Statistics □ August 1977
1.16

M A X IM U M IN T E R E S T R A T E S PA Y A B L E on Tim e and Savings D eposits a t Federally Insured Institutions
Per cent per annum

Commercial banks

Type and maturity of deposit

In effect July 31, 1977

Previous maximum

Effective
date

Per cent

Per cent

7/1/73

1 Savings....................................................
2 Negotiable order of withdrawal (NOW)
accounts1......................................

Savings and loan associations and
mutual savings banks

Effective
date

In effect July 31, 1977
Per cent

Effective
date

1/21/70

Per cent

(6)

1/1/74

Time (multiple- and single-maturity
unless otherwise indicated):2
30-89 days:
3
Multiple-maturity.............................
4
Single-maturity.................................

Previous maximum
Effective
date
( 7)

1/1/74

4%
5

7/1/73

1/21/70
9/26/66

( 8)

7/20/66
9/26/66

3534

(6)

5Va

1/21/70

6%
6 Va

(6)
(6)

6

I*

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

( 8)

5
6

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

5 ft

7/1/73

7
8
9

1 to 2 years3.........................................
2 to 2^ years3.....................................
2 Yz to 4 years3.....................................

6
6f t

7/1/73
7/1/73

5 ft
5Va
5Va

10
11

4 to 6 years4.........................................
6 years or more4..................................

7V4
7 ft

11/1/73
12/23/74

7Va

11/1/73

7 ft
7Va

11/1/73
12/23/74

7 ft

11/1/73

12
13

Governmental units (all maturities)...
Individual retirement accounts and
Keogh (H.R. 10) plans 5............

7Va

12/23/74

7 ft

11/27/74

7V4

12/23/74

7 ft

11/27/74

7V4

7/6/77

( 8)

7Va

7/6/77

( 8)

(9)

(9)

9 Between July 1, 1973, and Oct. 31, 1973, there was no ceiling for
certificates maturing in 4 years or more with minimum denominations
of $1,000; however, the amount of such certificates that an institution
could issue was limited to 5 per cent of its total time and savings deposits.
Sales in excess of that amount, as well as certificates of less than $1,000,
were limited to the 6Vi per cent ceiling on time deposits maturing in 2f t
years or more.
Effective Nov. 1, 1973, the present ceilings were imposed on certificates
maturing in 4 years or more with minimum denominations of $1,000.
There is no limitation on the amount of these certificates that banks can
issue.

1 For authorized States only. Federally insured commercial banks,
savings and loan associations, cooperative banks, and mutual savings
banks were first permitted to offer NOW accounts on Jan. 1, 1974.
Authorization to issue NOW accounts was extended to similar institu­
tions throughout New England on Feb. 27, 1976.
2 For exceptions with respect to certain foreign time deposits see the
Federal Reserve B u l l e t in for October 1962 (p. 1279), August 1965 (p.
1094), and February 1968 (p. 167).
3 A minimum of $1,000 is required for savings and loan associations,
except in areas where mutual savings banks permit lower minimum de­
nominations. This restriction was removed for deposits maturing in less
than 1 year, effective Nov. 1, 1973.
4 $1,000 minimum except for deposits representing funds contributed
to an individual retirement account (IRA) or a Keogh (H.R. 10) plan es­
tablished pursuant to the Internal Revenue Code. The $1,000 minimum
requirement was removed for such accounts in December 1975 and No­
vember 1976, respectively.
5 3-year minimum maturity.
6 July 1, 1973, for mutual savings banks; July 6, 1973, for savings and
loan associations.
7 Oct. 1, 1966, for mutual savings banks; Jan. 21, 1970, for savings and
loan associations.
8 No separate account category.

1.161

I H i HO

1/21/70
1/21/70

N o t e —Maximum rates that can be paid by Federally insured commer­
cial banks, mutual savings banks, and savings and loan associations are
established by the Board of Governors of the Federal Reserve System,
the Board of Directors of the Federal Deposit Insurance Corporation,
and the Federal Home Loan Bank Board under the provisions of 12
CFR 217, 329, and 526, respectively. The maximum rates on time de­
p o sits in d en o m in atio n s of $100,000 or more were suspended in mid1973. For information regarding previous interest rate ceilings on all
types of accounts, see earlier issues of the Federal Reserve B u l l e t in ,
the Federal Home Loan Bank Board Journal, and the Annual Report
of the Federal Deposit Insurance Corporation.

MARGIN REQUIREMENTS
Per cent of market value; effective dates shown.
Type of security on sale

Mar. 11, 1968

June 8, 1968

May 6, 1970

Dec. 6, 1971

Nov. 24, 1972

Jan. 3, 1974

1 Margin stocks.......................................................
2 Convertible bonds...................................... .
3 Short sales.............................................................

70
50
70

80
60
80

65
50
65

55
50
55

65
50
65

50
50
50

N o t e . —Regulations G, T, and U of the Federal Reserve Board of
Governors, 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.

Policy Instruments
1.17

A ll

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

1977

1976
Type of transaction

1974

1975

1976

11,660
5,830
4,550

11,562
5,599
2 6,431

450

3,886

Feb.

Mar.

Dec.

Jan.

14,343
8,462
2 5,017

975
1,546

2,535
313

110
801

472

59

45

107

41

Apr.

May

June

U.S. GOVT. SECURITIES
Outright transactions (excl. matched salepurchase transactions)
1
7

4
5
6
7
8
9
10
11
12
13
14
15
16

Treasury bills:
Gross sales....................................................
Others within 1 year:1

1 to 5 years:
Gross purchases...........................................

Exchange, or maturity shift

...........

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

1,671
260
19

681
489
400

2,696
1,154
600

374 -1 ,2 0 9

478

200

20

792

7

252

63

-2 6 6

2 3,202
177
3,854 -2 ,5 8 8

681

475

348

174

327

-8 8 0

266

-3 7 4

170

151

46

104

-1 ,1 8 3
131

-4
3,549

797

2 3,284

-6 9 7
5 to 10 years:
Gross purchases...........................................

368

434

1,510

1,048

1,675

-4 ,6 9 7

1,572

196

1,070

642

205

848

225

-7

-252
128

48

81

-865

-4 7 8
68

1,174

517
119

89

37

114

38
900

300

17
18
19

All maturities: 1
Gross purchases...........................................
Gross sales....................................................
Redemptions.......................................

13,537
5,830
4,682

2 21,313
5,599
2 9,980

19,707
8,639
2 5,017

2,004
1,546

3,229
313

797
801

298
368

2,160
260
19

681
489
400

3,167
1,154
600

20
21

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

64,229
62,801

151,205 196,078
152,132 196,579

23,193
24,343

24,595
22,544

22,674
23,447

30,115
30,828

32,287
32,852

28,532
27,306

36,258
36,449

22
23

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

71,333
70,947

140,311 232,891
139,538 230,355

30,872
27,119

23,820
27,573

13,853
12,921

14,368
14,860

13,397
11,862

29,308
30,448

14,748
11,506

Net change in U.S. Govt, securities...............

1,984

7,434

9,087

5,361

-2 ,8 8 7

1,702

151

3,980 -2 ,5 7 3

4,845

3,087

1,616

891

Redemptions....................................................
322
Repurchase agreements:
28 Gross purchases............................................... 23,204
29 Gross sales........................................................ 22,735

246

169

63

4

24

36

15,179
15,566

10,520
10,360

1,380
1,102

930
1,208

8
795

-5
-795

-1 8
149

6,379 -3 ,9 6 9

1,886

24

FEDERAL AGENCY OBLIGATIONS
25
26
27

Outright transactions:
Gross purchases..............

346

689
612 *.

380
*

33

523
546

709
639

2,164
2,278

1,656
1,056

-1 9
-2 3

-5 1
653

-4 5
-7 2 9

-1 5
528

4,998 -3 ,4 6 1

6,305

BANKERS ACCEPTANCES
30 Outright transactions, n et...................................
31 Repurchase agreements, net...............................

511
420

163
-3 5

-545
410

32 Net chanse in total Svstem Arrnnnt....................

6,149

8,539

9,833

1 Both gross purchases and redemptions include special certificates
created when the Treasury borrows directly from the Federal Reserve,
as follows (millions of dollars): 1974,131; 1975, 3,549; and 1976 to present,
none.
2 In 1975, the System obtained $421 million of 2-year Treasury notes
in exchange for maturing bills. In 1976 there was a similar transaction




SO

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

A 12

Domestic Financial Statistics □ August 1977

1.18 FEDERAL RESERVE BANKS Condition and F.R. Note Statements
Millions of dollars

Account
June 29

July 6

Wednesday

End of Month

1977

1977

July 13

July 20*

July 27*

May

June

July *

Consolidated condition statement
ASSETS
1 Gold certificate account........................................
2 Special Drawing Rights certificate account.........
3

11,620
1,200

11,620
1,200

11,605
1,200

11,605
1,200

11,605
1,200

11,629
1,200

11,620
1,200

11,595
1,200

313

303

303

352

309

319

315

317

606

185

383

222

514

400

260

788

Loans:
4
Member bank borrowings.................................
5
Acceptances:
Bought outright..................................................
6
7
Federal agency obligations:
Bought outright..................................................
8
9

43
413

41

32

25
186

19
249

58
50

43
578

19
374

7,436
342

7,423

7,423

7,423
473

7,423
205

7,077
10

7,423
610

7,423
345

U.S. Govt, securities
Bought outright:
Bills.................................................................

40,974

39,359

39,363

38,555

39,498

39,694

40,827

39,045

Total 2..................................................................

49,088
8,248
98,310
3,554

49,088
8,248
96,695

49,088
8,248
96,699

49,088
8,248
95,891
2,527

49,088
8,248
96,834
1,563

48,732
8,134
96,560
834

49,088
8,248
98,163
4,076

49,088
8,248
96,381
2,330

17 Total U.S. Govt, securities.....................................

101,864

96,695

96,699

98,418

98,397

97,394

102,239

98,711

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

110,704

104,344

104,537

106,747

106,807

104,989

111,153

107,660

19 Cash items in process of collection......................
20 Bank premises........................................................
Other assets:
Denominated in foreign currencies...................
21
All other..............................................................
22

9,901
370

10,919
372

9,092
372

10,896
372

9,425
373

8,360
369

8,886
371

7,570
372

57
2,555

61
2,734

45
3,654

16
3,852

16
2,843

60
2,427

57
2,494

20
3,321

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

136,720

131,553

130,808

135,040

132,578

129,353

136,096

132,055

10
11
P
13
14
15
16

Notes...............................................................

LIABILITIES
24 F.R. notes...............................................................
Deposits:
Member bank reserves......................................
U.S. Treasury—General account.....................
Foreign................................................................

86,315

87,590

87,361

87,191

86,985

85,333

86,326

86,674

25
26
27
28

24,048
16,115
287
592

23,105
9,647
372
607

24,616
8,527
251
677

28,833
7,220
247
1,867

26,809
8,616
289
699

29,009
5,838
436
831

24,562
15,183
379
748

26,892
8,789
469
578

29

41,042

33,731

34,071

38,167

36,413

36,114

40,872

36,728

5,837
1,090

7,073
1,051

6,088
1,059

6,299
1,035

5,685
1,031

4,367
1,016

5,282
1,165

5,047
1,083

134,284

129,445

128,579

132,692

130,114

126,830

133,645

129,532

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

1,000
983
453

1,002
983
123

1,004
983
242

1,004
983
361

1,006
983
475

1,000
983
540

1,000
983
468

1,006
983
534

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

136,720

131,553

130,808

135,040

132,578

129,353

136,096

132,055

U.S. G o v t, s e c u r itie s h e ld in
custody for foreign and inti, account.............

58,032

58,157

57,781

59,568

58,772

58,214

57,867

60,359

30 Deferred availability cash items...........................
31 Other liabilities and accrued dividends................
32
CAPITAL ACCOUNTS

37

M e m o : M a r k e ta b le

Federal Reserve note statement
38 F.R. notes outstanding (issued to Bank).............
Collateral held against notes outstanding:
Gold certificate account.....................................
39
Special Drawing Rights certificate account....
40
41
Acceptances........................................................
42
U.S. Govt, securities..........................................

91,171

91,593

92,137

92,505

92,580

90,242

91,250

92,648

11,616
752

11,615
752

11,601
752

11,601
752

11,601
752

11,625
643

11,616
752

11,591
752

79,965

80,315

81,235

81,335

81,585

79,283

80,015

81,585

43 Total collateral........................................................

92,333

92,682

93,588

93,688

93,938

91,551

92,383

93,928

1 Effective Jan. 1, 1977, Federal Reserve notes of other Federal Reserve
Banks were merged into the liability account for Federal Reserve notes.
2 Includes securities loaned—fully guaranteed by U.S. Govt, securities
pledged with F.R. Banks—and excludes (if any) securities sold and
scheduled to be bought back under matched sale-purchase transactions.
3 Includes certain deposits of domestic nonmember banks and foreign-




owned banking institutions voluntarily held with member banks and
redeposited in full with F.R. Banks.
N o t e .— Beginning

Jan. 1, 1977, “Operating equipment” was transferred
to “Other assets.”

Reserve Banks
1.19

FE D E R A L RESERV E BA N K S

A13

M atu rity D istrib u tio n o f L o an and Security H oldings

Millions o f dollars

Type and maturity
June 29

July 6

Wednesday

End of month

1977

1977

July 13

July 20

July 27

May 31

June 30

July 31

Within 15 days.....................................................
16 days to 90 days...............................................

605
596
9

184
165
19

381
354
27

222
196
26

514
508
6

398
386
12

258
c236
22

788
768
20

5 Acceptances..............................................................
6 Within 15 days.....................................................
7
8 91 days to 1 year..................................................

456
426
26
4

41
16
21
4

32
20
9
3

211
195
12
4

268
258
9
1

108
59
45
4

621
591
26
4

393
384
8
1

9 U.S. Govt, securities................................................
10 Within 15 days1...................................................
11
16 days to 90 days...............................................
12 91 days to 1 year..................................................
13 Over 1 year to 5 years.............. , .........................
14 Over 5 years to 10 years......................................
15 Over 10 years.......................................................

101,864
7,778
17,712
28,546
30,129
11,233
6,466

96,695
2,482
17,487
29,375
29,652
11,233
6,466

96,699
3,803
16,410
29,136
29,651
11,233
6,466

98,418
5,770
17,165
28,132
29,652
11,233
6,466

98,397
4,887
17,231
28,928
29,652
11,233
6,466

97,394
2,629
19,615
27,703
29,930
11,165
6,352

102,239
6,195
17,712
30,981
29,652
11,233
6,466

98,711
4,849
17,589
28,922
29,652
11,233
6,466

16 Federal agency obligations.......................................
17 Within 15 days1...................................................
18 16 days to 90 days...............................................
19 91 days to 1 year..................................................
20 Over 1 year to 5 years.........................................
21 Over 5 years to 10 years......................................
22 Over 10 years........................................................

7,778
402
393
1,025
3,636
1,499
823

7,423
52
366
1,047
3,636
1,499
823

7,423
52
366
1,047
3,636
1,499
823

7,896
503
336
1,074
3,648
1,512
823

7,628
235
410
1,000
3,648
1,512
823

7,087
149
277
1,034
3,450
1,387
790

8,033
657
393
1,025
3,636
1,499
823

7,768
375
410
1,000
3,648
1,512
823

1
2
3

A

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

1.20 DEMAND DEPOSIT ACCOUNTS Debits and Rate of Turnover
Seasonally adjusted data
1977
Standard metropolitan statistical area

1974

1975

1976

Feb.

Mar.

Apr.

May

June

32,394.9

Debits (billions of dollars)2
1 All 233 SMSA’s.......................................................

22,192.2

23,565.1

28,911.0

30,145.4

30,421.7

30,585.5

*•32,028.5

2 New York City........................................................

9,931.8

10,970.9

13,835.0

14,898.0

14,612.1

14,988.9

15,739.7

15,516.6

3 232 SM SA’s .............................................................
4 6 leading SMSA’s other than N.Y.C.1..............
5 226 others..............................................................

12,260.6

12,594.2

15,076.1

15,247.4

15,809.6

15,956.5

r16,288.8

16,878.5

5,152.7
7,107.9

4,937.5
7,661.8

5,917.1
9,159.0

5,887.1
9,360.2

6,155.7
9,653.9

6,055.5
9,541.1

6,420.4
'9,868.4

6,213.1
10,665.4

Turnover of deposits (annual rate)
6 All 233 SMSA’s .......................................................

128.0

131.0

153.5

153.3

155.2

158.2

160.2

160.6

7 New York City........................................................

312.8

351.8

419.8

437.3

436.0

465.2

474.9

452.1

8 232 SM SA’s .............................................................
9 6 leading SMSA’s other than N.Y.C.1..............
10 226 others..............................................................

97 .7

100.8

131.8
69.3

86.6

84.7

118.4
71.6

1 Boston, Philadelphia, Chicago, Detroit, San Francisco-Oakland, and
Los Angeles-Long Beach.
2 Excludes interbank and U.S. Govt, demand deposit accounts.




97.0

136.9
81.7

93.8

129.9
79.8

97.3

135.2
82.5

96.3

134.7
82.1

139.8
81.7

135.5
87.7

N o t e .— Total SMSA’s includes some cities and counties not designated
as SMSA’s.

A14
1.21

Domestic Financial Statistics □ August 1977
MONEY STOCK MEASURES AND COMPONENTS
Billions of dollars, averages of daily figures

Item

1973
Dec.

1974
Dec.

1975
Dec.

1976
Dec.

1977

Jan.

Feb.

Mar.

Apr.

May

June

Seasonally adjusted
MEASURES i
1
2
3
4
5

M -l......................................................
M -2......................................................
M-3......................................................
M-4......................................................
M -5......................................................

270.5
571.4
919.6
634.4
982.5

283.1
612.4
981.5
701.4
1,070.5

294.8
664.3
1 092.6
746.5
1,174.7

312.4
740.3
1,237.1
803.5
1,300.3

313.8
746.3
1,248.9
809.3
1,312.0

314.0
750.7
1,258.2
814.0
1,321.5

315.4
756.1
1,268.1
818.2
1,330.3

320.5
320.7
764.6
767.6
1,281.2 rl , 289.0
826.2
829.9
1,342.8 '1,351.3

322.0
772.9
1,299.4
836.8
1,363.4

COMPONENTS
6 Currency..............................................
Commercial bank deposits:
7 Demand...........................................
8 Time and savings .............................
9
Negotiable CD’s2. ......................
10
Other............................................

61.5

67.8

73.7

80.5

81.1

81.8

82.2

83.1

83.6

84.0

209.0

215.3

221.0

231.9

232.7

232.1

233.2

237.4

237.1

363.9

418.3

451.7

238.0

11 Nonbank thrift institutions3..............

348.1

63.0
300.9

89.0
329.3

369.1

82.1
369.6

63.3
427.9

491.1

495.6

63.1
432.5

63.3
436.7

500.0

62.2
440.6

502.8

61.6
444.1

505.7

62.3
446.9

509.2

63.9
450.9

428.3

496.8

502.6

507.5

512.1

516.6

*•521.4

526.5

322.3
315.5
770.0
766.2
1,290.2 >■1,290.3
830.1
827.4
1,350.3 '1,351.4

321.4
774.6
1,305.5
837.5
1,368.5

514.8

Not seasonally adjusted
MEASURES1
12
13
14
15
16

M -l......................................................
M -2......................................................
M-3......................................................
M-4......................................................
M -5......................................................

278.3
576.5
921.8
640.5
985.8

291.3
617.5
983.8
708.0
1,074.3

303.2
669.3
1,094.3
752.8
1,177.7

321.3
745.3
1,237.9
809.5
1,302.1

319.7
751.2
1,251.4
814.3
1,314.5

62.7

69.0

75.1

82.0

80.5

80.8

81.6

82.8

83.4

84.2

215.7

222.2

228.1

239.3

239.2

229.1

230.9

239.6

232.1

237.2

362.2

416.7

449.6

488.2

63.1
431.5

498.6

504.6

507.7

64.3
423.9

494.6

511.8

516.1

345.3

366.3

424.9

492.6

500.2

6.3

4.9

4.1

4.7

4.2

309.9
747.2
1,253.1
808.5
1,314.4

312.4
756.2
1,269.8
817.0
1,330.7

COMPONENTS
17 Currency.............................................
Commercial bank deposits:
18 Demand ...........................................
19
Member.......................................
20
Domestic nonmember................
21
Time and savings.............................
22
Negotiable CD’s2.......................
23
Other...........................................
24 Nonbank thrift institutions3..............
25 U.S. Govt, deposits (all commercial
banks)...........................................

156.5
56.3

64.0
298.2

159.7
58.5

90.5
326.3

162.1
62.6

83.5
366.2

i Composition of the money stock measures is as follows:
M - l: Averages of daily figures for (1) demand deposits of commercial
banks other than domestic interbank and U.S. Govt., less cash items in
process of collection and F.R. float; (2) foreign demand balances at F.R.
Banks; and (3) currency outside the Treasury, F.R. Banks, and vaults
of commercial banks.
M-2: M-l plus savings deposits, time deposits open account, and time
certificates of deposit (CD’s) other than negotiable CD’s of $100,000 or
more of large weekly reporting banks.
M -3: M-2 plus the average of the beginning- and end-of-month deposits
of mutual savings banks, savings and loan shares, and credit union shares
(nonbank thrift).

168.5
67.3

168.1
67.5

161.0
64.6

61.3
437.3

162.1
65.2

167.6
68.3

161.8
66.6

165.1
68.3

60.8
443.8

60.1
447.7

61.2
450.7

63.0
453.2

505.9

513.6

r520.2

r524.1

530.9

4.4

4.5

5.6

3.8

5.2

M-4: M-2 plus large negotiable CD’s.
M-5: M-3 plus large negotiable CD’s.
For a description of the latest revisions in the money stock measures
see “ Money Stock Measures: Revision” on pp. 305 and 306 of the
March 1977 B u l l e t in .
Latest monthly and weekly figures are available from the Board’s H.6
release. Back data are available from the Banking Section, Division of
Research and Statistics.
2 Negotiable time CD’s issued in denominations of $100,000 or more
by large weekly reporting commercial banks.
3 Average of the beginning- and end-of-month figures for deposits of
mutual savings banks, for savings capital at savings and loan associations,
and for credit union shares.

NOTES TO TABLE 1.23:
1 Adjusted to exclude domestic commercial interbank loans.
2 Loans sold are those sold outright to banks’ own foreign branches,
nonconsolidated nonbank affiliates of the bank, the banks’ holding
company (if not a bank), and nonconsolidated nonbank subsidiaries of
the holding company. Prior to Aug. 28, 1974, the institutions included
had been defined somewhat differently, and the reporting panel of banks
was also different. On the new basis, both “Total loans” and “Com­
mercial and industrial loans” were reduced by about $100 million.
3 Reclassification of loans reduced these loans by about $1.2 billion
as of Mar. 31, 1976.
4 Data beginning June 30, 1974, include one large mutual savings
bank that merged with a nonmember commercial bank. As of that date
there were increases of about $500 million in loans, $100 million in
“Other” securities, and $600 million in “Total loans and investments.”




As of Oct. 31, 1974, “Total loans and investments” of all commercial
banks were reduced by $1.5 billion in connection with the liquidation
of one large bank. Reductions in other items were: “Total loans,” $1.0
billion (of which $0.6 billion was in “Commercial and industrial loans” ),
and “Other securities,” $0.5 billion. In late November “Commercial and
industrial loans” were increased by $0.1 billion as a result of loan re­
classifications at another large bank.
N o t e . —Data are for last Wednesday of month except for June 30
and Dec. 31; data are partly or wholly estimated except when June 30
and Dec. 31 are call dates.

Monetary Aggregates
1.22

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

A15

M em ber B anks

Billions o f dollars, averages o f daily figures

Item

1973
Dec.

1974
Dec.

1975
Dec.

1976
Nov.

1977

Dec.

Jan.

Feb.

Mar.

Apr.

May

June

Seasonally adjusted
1 Reserves 1................................................................... 34.94
2 Nonborrowed......................................................... 33.64
3 RenuireH................................................................. 34.64
4 Denosits subject to reserve reauirements 2................ 442.3
5 Time and savings................................................... 279.2
Demand:
6
Private................................................................. 158.1
7
5.0
U.S. Govt............................................................

36.60
35.87
36.34
486.2
322.1

34.73
34.60
r34.47
505.4
337.9

34.85
34.78
34.59
524.9
350.2

34.95
34.90
34.68
529.6
355.0

34.78
34.71
34.51
532.5
357.3

34.40
34.33
34.20
532.0
360.1

34.31
34,20
34,09
535.2
361.3

34.68
34.6|
34.49
538.4
361.4

34.72
34.52
34.51
537.6
363.1

34.86
34.60
34.71
544.5
367.0

160.6
3.5

164.5
3.0

170.7
4.0

171.4
3.2

172.5
2.7

169.5
2.5

171.1
2.8

173.4
3.6

172.3
2.1

173.8
3.7

Not seasonally adjusted
8 Denosits subiect to reserve reauirements 2................ 447.5
9 Time and savings.................................................... 278.5
Demand:
10
Private................................................................. 164.0
11
5.0
U.S. Govt............................................................

491.8
321.7

510.9
337.2

522.5
347.6

534.8
353.6

537.7
357.0

528.7
358.4

534.0
361.7

541.3 r535.8
362.3 364.7

544.5
367.8

166.6
3.4

170.7
3.1

171.9
3.0

177.9
3.3

177.8
2.9

167.2
3.1

169.1
3.2

175.0
4.0

173.0
3.7

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

168.5
2.5

2 Includes total time and savings deposits and net demand deposits as
defined by Regulation D. Private demand deposits include all demand
deposits except those due to the U.S. Govt., less cash items in process of
collection and demand balances due from domestic commercial banks.
N o t e .—Back data and estimates of the impact on required reserves
and changes in reserve requirements are shown in Table 14 of the Board’s
Annual Statistical Digest, 1971-1975.

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

Category

1974 4
1976
1975
1973
Dec. 31 Dec. 31 Dec. 31 Dec. 31

1977
Feb. 23 Mar. 30 Apr. 27 May 25 June 30
p

p

p

p

p

July 27
p

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

633.4
637.7

690.4
695.1

721.1
725.5

784.4
788.2

796.4
800.3

8Q3.0
807. Q

812.4
816.4

819.4
823.4

825.5
829.5

831.8
835.9

500.2
505.0
183.3
186.0

496.9
501.3
176.0
178.5

538.9
542.7
179.5
181.9

545.4
549.3
181,2
183.8

551.0
555.0
182.9
185.6

557.7
561.7
184.9
187.7

562.1
566.1
185.9
188.7

567.0
571.0
188.3
191.1

574.5
578.6
189.6
192.4

50.4
139.8

79.4
144.8

97.3
148.2

101.5
149.5

103.6
148.4

102.8
151.9

104.6
152.7

105.3
153.2

102.9
154.4

3
4

Loans:
Total...................................................................
Including loans sold outright2......................

6

Including loans sold outright2,3...................

449.0
453.3
156.4
159.0

Investments:
7 U.S. Treasury.....................................................
8 Other...................................................................

54.5
129.9

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

647.3
651.6

705.6
710.4

737.0
741.4

801.6
805.4

790.0
793.9

801.1
805.1

809.6
813.6

816.6
820.6

830.5
834.5

829.1
833.2

Loans:
Total1..................................................................
Including loans sold outright2......................
Commercial and industrial3.............................
Including loans sold outright2,3. ..................

458.5
462.8
159.4
162.0

510.7
515.5
186.8
189.5

507.4
511.8
179.3
181.8

550.2
554.0
182.9
185.3

538.9
542.8
179.4
182.0

547.7
551.7
182.8
185.5

553.5
557.5
185.1
187.9

561.3
565.3
186.1
188.9

574.4
578.4
190.7
193.5

575.4
579.5
189.6
192.4

58.3
130.6

54.5
140.5

84.1
145.5

102.5
148.9

102.6
148.5

104.7
148.7

103.0
153.1

101.9
153.4

101.7
154.4

99.5
154.2

11
12
13
14

Investments;
16

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

For notes see bottom o f opposite page.




A16

Domestic Financial Statistics □ August 1977

1.24 COMMERCIAL BANK ASSETS AND LIABILITIES Last-Wednesday-of-Month Series
Billions of dollars except for number of banks
19763

1975
Account

Dec. 31

Oct.

Nov.

1977
Dec.

Jan.

Feb.

Mar.

Apr.p

May?

June?

July*

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

775.8
546.2

808.0
566.5

817.6
571.0

846.4
594.9

824.2
575.3

831.6
580.4

840.4
587.0

846.5
590.4

853.1
597.8

864.5
609.5

866.2
612.5

84.1
145.5

94.4
147.1

98.0
148.6

102.5
148.9

101.1
147.9

102.6
148.5

104.7
148.7

103.0
153.1

101.9
153.4

101.3
153.7

99.5
154.2

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

133.6
12.3
26.8
47.3
47.3

116.9
12.7
26.4
38.2
39.7

127.0
11.9
29.1
42.5
43.5

136.1
12.1
26.1
49.6
48.4

120.1
12.8
28.6
39.2
39.6

127.1
12.5
28.6
41.5
44.4

122.8
12.9
26.9
41.9
41.1

122.7
13.3
28.2
40.1
41.0

119.4
13.1
24.0
41.3
41.0

124.5
13.6
23.5
42.9
44.4

124.7
13.3
27.1
40.4
43.9

964.9

973.7

995.7 1,030.7

786.3

784.4

796.5

838.2

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

and

996.7 1,011.6 1,018.2 1,024.8 1,026.9 1,044.9 1,047.4

11 Deposits....................................
Demand:
12
Interbank..........................
13
U.S. Govt.........................
14
Other.................................
Time:
15
Interbank............................
16
Other...................................

801.0

809.3

817.1

819.4

818.9

833.7

836.4

41.8
3.1
278.7

34.0
3.7
260.8

39.1
3.4
264.0

45.4
3.0
288.4

35.3
4.0
260.6

36.6
3.8
264.5

37.6
3.1
263.1

33.9
7.4
267.9

35.2
3.6
262.8

37.3
3.0
272.5

37.7
3.8
272.3

12.0
450.6

9.2
476.6

9.1
481.0

9.2
492.2

8.8
492.3

8.6
495.9

8.9
504.4

8.6
501.6

8.5
508.8

8.9
511.9

8.3
514.4

17 Borrowings.................................
18

60.2
69.1

76.7
74.3

84.6
74.8

80.2
78.1

82.5
76.3

87.6
76.8

84.5
77.1

88.2
77.5

87.6
78.1

90.2
78.7

90.6
78.9

14,633

14,660

14,674

14,671

14,667

14,688

14,685

14,690

14,695

14,709

14,709

19

M em o :

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

Member
20
21
22
23

Loans, gross...........................
Investments:
U.S. Treasury securities. . .
Other...................................

24 Cash assets, total.......................
25
Currency and coin.................
26
Reserves with F.R. Banks. ..
27
Balances with banks..............
28
Cash items in process of collection..
29 Total

assets/total

liabilities

and

578.6
416.4

590.7
421.6

597.6
424.1

620.5
442.9

600.9
426.3

605.9
429.9

611.8
434.6

614.8
435.9

620.2
441.5

629.1
450.1

628.9
451.3

61.5
100.7

67.7
101.4

70.8
102.7

74.6
103.1

72.6
102.0

73.7
102.3

74.9
102.3

73.0
105.8

72.6
106.1

72.6
106.4

70.8
106.7

108.5
9.2
26.8
26.9
45.5

94.9
9.5
26.4
20.9
38.2

103.0
8.9
29.1
23.3
41.8

108.9
9.1
26.0
27.4
46.5

97.7
9.5
28.6
21.5
38.1

102.8
9.3
28.6
22.2
42.7

100.0
9.6
26.9
24.0
39.5

99.4
9.9
28.2
21.9
39.4

95.7
9.7
24.0
22.6
39.3

100.5
10.0
23.5
24.2
42.7

101.1
9.9
27.1
21.9
42.2

733.6

727.6

744.8

772.9

744.6

755.1

759.7

762.7

763.9

778.9

780.1

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

590.8

576.1

584.8

618.7

587.0

592.0

598.1

597.8

597.4

609.4

610.6

38.6
3.2
210.8

32.2
2.9
194.7

37.2
2.4
196.0

42.4
2.1
215.5

33.1
3.0
193.7

34.1
2.7
196.6

35.3
2.1
195.9

31.6
5.9
199.0

32.9
2.7
195.1

34.9
2.2
202.7

35.3
2.8
202.1

10.0
329.1

7.1
339.2

7.0
342.1

7.2
351.5

6.8
350.3

6.6
351.9

6.9
357.9

6.6
354.7

6.5
360.3

6.9
362.7

6.3
364.1

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

53.6
52.1

69.1
56.2

76.4
56.6

71.7
58.6

73.6
57.7

78.0
57.9

75.3
58.1

78.1
58.3

77.5
58.8

80.0
59.2

80.4
59.5

5,788

5,769

5,767

5,759

5,739

5,740

5,739

5,726

5,708

5,721

5,721

38

M em o:

Number of banks........

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




N o t e .—Figures include all bank-premises subsidiaries and other sig­
nificant majority-owned domestic subsidiaries.
Commercial banks: All such banks in the United States, including
member and nonmember banks, stock savings banks, nondeposit trust
companies, and U.S. branches of foreign banks, but excluding one na­
tional bank in Puerto Rico and one in the Virgin Islands.
Member banks: The following numbers of noninsured trust companies
that are members of the Federal Reserve System are excluded from mem­
ber banks in Tables 1.24 and 1.25 and are included with noninsured banks
in Table 1.25: 1974—June, 2; December, 3; 1975—June and December,
4; 1976 (beginning month shown)—July, 5, December, 7; 1977-January 8.

Commercial Banks
1.25

C O M M E R C IA L B A N K A SSETS A N D L IA B IL IT IE S

A17

C all-D ate Series

Millions of dollars except for number of banks
1976

1975

Account
June 30

Dec. 31

June 30

1975

Dec. 31

June 30

Total insured

1976

Dec. 31

June 30

Dec. 31

National (all insured)

1 Loans and investments, Gross...............................
Loans:
Gross...............................................................
Net..................................................................
Investments:
4
U.S. Treasury securities.................................
5
Other...............................................................
6 Cash assets.............................................................

736,164

762,400

773,696

827,692

428,167

441,135

443,955

476,602

526,272
(2)

535,170
(2)

539,017
520,970

578,712
560,069

312,229
(2)

315,738
(2)

315,624
305,275

340,679
329,968

67,833
142,060
125,181

83,629
143,602
128,256

90,947
143,731
124,072

101,459
147,520
129,578

37,606
78,331
75,686

46,799
78,598
78,026

49,688
7fc,642
75,488

55,729
80,193
76,074

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

914,781

944,654

942,510 1,004,020

536,836

553,285

548,697

583,315

8

746,348

775,209

776,957

825,001

431,646

447,590

444,251

469,378

3,106
41,244
261,903

3,108
40,259
276,384

4,622
37,503
265,670

3,020
44,072
285,190

1,723
21,096
152,576

1,788
22,305
159,840

2,858
20,329
152,382

1,674
23,148
163,347

10,252
429,844

10,733
444,725

9,407
459,754

8,250
484,468

6,804
249,446

7,302
256,355

5,532
263,148

4,909
276,298

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

59,310
65,986

56,775
68,474

63,823
68,989

75,308
72,070

41,954
37,483

40,875
38,969

45,183
39,502

54,420
41,323

16

14,320

14,372

14,373

14,397

4,730

4,741

4,747

4,735

2
3

9
10
11
12
13

Demand:
U.S. G ovt.......................................................
Interbank........................................................
Other...............................................................
Time:
Interbank........................................................
Other...............................................................

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

M emo:

Insured nonmember

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

134,759

137,620

136,915

144,000

173,238

183,645

192,825

207,089

100,968
(2)

100,823
(2)

98,889
96,037

102,278
99,475

113,074
(2)

118,609
(2)

124,503
119,658

135,754
130,626

12,004
21,787
31,466

14,720
22,077
30,451

16,323
21,702
30,422

18,847
22,874
32,859

18,223
41,942
18,029

22,109
42,927
19,778

24,934
43,387
18,161

26,882
44,451
20,644

23

179,787

180,495

179,645

189,573

198,157

210,874

214,167

231,130

24 Deposits.................................................................
Demand:
25
U.S. G ovt.......................................................
26
Interbank........................................................
27
Other...............................................................
Time:
28
Interbank........................................................
29

141,995

143,409

142,061

149,481

172,707

184,210

190,644

206,141

443
18,751
48,621

467
16,265
50,984

869
15,834
49,658

429
19,296
52,194

940
1,397
60,706

853
1,689
65,560

894
1,339
63,629

917
1,627
69,648

2,771
71,409

2,712
72,981

3,074
72,624

2,384
75,177

676
108,989

719
115,389

799
123,980

957
132,991

14,380
12,773

12,771
13,105

15,300
12,791

17,318
13,199

2,976
15,730

3,128
16,400

3,339
16,696

3,569
17,547

1,064

1,046

1,029

1,023

8,526

8,585

8,597

8,639

30
31
32

M em o:

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

Total nonmember

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

11,725

13,674

15,905

18,819

184,963

197,319

208,730

225,908

9,559
(2)

11,283
(2)

13,209
13,092

16,336
16,209

122,633
(2)

129,892
(2)

137,712
132,751

152,091
146,836

358
1,808
3,534

490
1,902
5,359

472
2,223
4,362

1,054
1,428
6,496

18,581
43,750
21,563

22,599
44,829
25,137

25,407
45,610
22,524

27,936
45,880
27,141

39

16,277

20,544

21,271

26,790

214,434

231,418

235,439

257,921

13,325

181,021

195,533

202,380

219,467

899
2,346
66,184

921
2,904
72,884

40
41
42
43
44
45

8,314
Demand:
U.S. Govt........................................................
Time:

46
47 Total capital accounts............................................
48
1 Includes items not shown separately.

2 Not available.




11,323

11,735

11
1,338
2,124

6
1,552
2,308

4
1,006
2,555

4
1,277
3,236

951
2,735
62,830

859
3,241
67,868

957
3,883

1,291
6,167

1,292
6,876

1,041
7,766

1,633
112,872

2,010
121,556

2,092
130,857

1,998
140,758

3,110
570

3,449
651

3,372
663

4,842
818

6,086
16,300

6,577
17,051

6,711
17,359

8,412
18,366

253

261

270

275

8,779

8,846

8,867

8,914

For N ote see Table 1.24.

A18

Domestic Financial Statistics □ August 1977

1.26 COMMERCIAL BANK ASSETS AND LIABILITIES Detailed Balance Sheet, December 31, 1976<*
Asset and liability items are shown in millions of dollars.
Member banks1
Asset account

1 Cash bank balances, items in process.....................
2 Currency and coin...............................................

All
Insured
commercial commercial
banks
banks

Large banks
Total

New York
City

City of
Chicago

Other
large

All other

Nonmember
banks1

129,578
12,115
25,968
32,964
5,763
4,509
48,260

108,934
9,066
25,968
19,711
3,623
4,046
46,520

29,494
832
3,585
7,389
193
836
16,659

3,934
220
1,423
196
34
23
2,038

40,471
3,048
10,627
3,324
1,434
2,102
19,937

35,034
4,965
10,334
8,804
1,961
1,085
7,886

27,141
3,059

Demand balances with banks in United States..
Other balances with banks in United States___
Balances with banks in foreign countries..........
Cash items in process of collection.....................

136,075
12,124
25,968
36,815
6,972
5,823
48,374

8 Total securities held—Book value...........................
9 U.S. Treasury.......................................................
10 Other U.S. Govt, agencies..................................
11 States and political subdivisions.........................
12 All other securities..............................................
n

249,882
102,514
35,838
104,661
6,732
137

247,439
101,460
35,269
104,374
6,220
116

176,333
74,577
22,150
75,310
4,217
78

21,349
11,823
1,355
7,751
421

8,157
4,072
500
3,349
236

57,755
25,735
6,237
24,546
1,191
47

89,072
32,948
14,059
39,665
2,370
30

73,549
27,937
13,688
29,350
2,515
60

832

3,246

322

1,705
624
660
209
47

188
38
48
17
30

253

54,510

88,750

4
5
6
7

14
15
16
17
18
19

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

U.S. Treasury...................................................
Other U.S. Govt, agencies...............................
States and political subdivisions.....................
All other trading acct. securities.....................

7,882

7,650

3,251

5,011
991
1,324
440
137

5,011
991
1,324
440
116

4,861
975
1,297
440
78

2,386
259
479
127

20
21
22

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

241,979

168,683

18,098

23
24

States and political subdivisions.....................
All other portfolio securities...........................

97,503
34,847
103,336
6,292

239,557

25 F.R. stock and corporate stock.............................

7,904

96,449
34,279
103,049
5,780

69,717
21,175
74,013
3,778

9,437
1,096
7,272
293

582
55
110
86

7,325

3,490
445
3,239
151

24,030
5,613
23,885
981

32,760
14,021
39,617
2,352

17,103
3,349
1,777
1,854

151
15
27
60

73,296

27,786
13,672
29,323
2,515

1,580

1,541

1,313

281

86

497

449

268

26 Federal funds sold and securities resale agreement..

Commercial banks...............................................
Brokers and dealers..............................................
Others...................................................................

48,346
40,199
5,775
2,373

45,767
37,876
5,693
2,198

36,378
28,780
5,499
2,099

1,993
979
610
404

1,339
1,035
192
113

19,648
14,217
3,981
1,450

13,398
12,550
716
132

11,968
11,419
275
273

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

546,704
12,577
6,192
527,934

532,945
12,526
6,116
514,303

406,579
8,614
4,899
393,066

75,468
561
1,185
73,722

21,807
82
300
21,426

148,516
2,856
1,751
143,909

160,788
5,117
1,663
154,008

140,124
3,963
1,293
134,869

149,483

149,276

104,714

9,419

1,848

37,462

55,984

44,769

80,265

57,201

845
49

27
28
29

34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67

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

16,644
6,721
84,922
80,394

16,638
6,710
84,784

13,153
2,868
60,487

2,801
16
4,433

6,859
50,342

611
3,381

3,992

382
14
944

6,039
295
21,816

3,931
2,543
33,294

3,491
3,853
24,435

2,529
29,196

1,097
22,096

20,639

3,670
16,968

31,726

797
99

1,178
95

1,568

7,956
72,438

7,919
72,346

Secured by other properties............................

388
4,140
41,195

387
4,132
41,144

323
2,963
28,206

122
320
2,169

25
74
509

1,083
9,311

82
1,486
16,216

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

42,427

35,738

33,760

12,048

4,383

14,349

2,981

4,528

4,519

To REIT’s and mortgage companies.............
To domestic commercial banks.......................
To banks in foreign countries.........................
To other depositary institutions.....................
To other financial institutions.........................
Loans to security brokers and dealers...............
Other loans to purch./carry securities................
Loans to farmers—except real estate.................
Commercial and industrial loans.......................
Loans to individuals............................................

9,982
4,531
10,880
1,482
15,552
11,420
4,032
23,282
182,920
118,408

9,855
2,774
6,617
1,340
15,151
11,075
4,015
23,259
177,128
118,051

Instalment loans....................................................

94,078

93,751

3,286

9,516
2,196
6,487
1,173
14,389
10,793
3,329
12,971
145,849
82,896
65,619

441

23,193

1,242

64
1,177
12,989
8,666

3,496
606
3,022
163
4,761
6,900
336
128
37,893
6,003

1,301
127
290
24
2,641
1,417
317
149
11,018
1,820

4,045
1,126
2,717
789
5,672
2,267
1,701
3,028
55,108
29,066

674
337
457
198
1,315
209
975
9,667
41,830
46,005

466
2,335
4,393
309
1,164
627
703
10,311
37,071
35,512

4,428

1,040

23,385

36,766

28,458

7,397
1,808
6,935
5,731
1,205
3,886
2,231
1,654
3,360
5,681
5,533

17,318
2,403
3,422
2,618
803
6,689
3,785
2,904
6,935
9,239
3,137

14,221
1,933
1,683
1,146
537
4,963
2,525
2,438
5,658
7,054
2,466

39,862
6,523
14,358
11,317
3,041
15,937
8,743
7,195
17,397
24,330
14,732

39,588
6,522
14,353
11,317
3,036
15,930
8,742
7,189
17,358
24,300
14,405

25,641
4,589
12,675
10,172
2,504
10,974
6,217
4,757
11,739
17,276
12,267

790
324
1,649
1,186
463
327
173
154
1,338
1,575
2,741

827,742

809,050

607,089

97,344

31,009

221,810

256,927

220,653

5,111
19,539
2,341
9,505
30,498

5,111
19,448
2,303
9,147
29,384

4,865
14,616
2,272
8,758
26,355

1,088
1,949
1,000
4,125
9,322

129
662
206
1,651

2,910
5,680
978
4,169
11,257

738
6,325
89
288
4,126

246
4,923
68
747
4,142

74 Total assets............................................................... 1,030,811 1,004,020

772,890

144,323

37,767

287,274

303,526

257,922

70
71
72
73

Passenger automobiles.................................
Residential-repair/modernize.......................
Credit cards and related plans.....................
Charge-account credit cards..................
Check and revolving credit plans............
Other retail consumer goods................. .

Other instalment loans................................
Single-payment loans to individuals...............

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

For notes see opposite page.




136
55
669
637
33
73
28
44
106
781
855

111

Commercial Banks
1.26

A19

C ontinued

Member banks1
Liability or capital
account

Insured
All
commercia commercialI
banks
banks

Large banks
Total

New York
City

City of
Chicago

Other
large

All other

Non­
member
banks1

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

336,800
1,684

332,283
1,385

260,090
1,254

60,201
624

10,267
2

92,746
268

96,876
360

76,711
430

255,433
3,025
17,715
2,414
36,256
7,410
12,864

254,221
3,020
17,648
1,846
35,926
6,761
11,475

192,616
2,103
12,071
1,813
34,679
6,512
9,041

32,600
134
645
1,365
16,412
5,345
3,076

7,552
41
125
35
2,022
174
318

72,262
669
3,568
387
11,852
862
2,878

80,201
1,259
7,733
26
4,394
132
2,769

62,818
921
5,644
601
1,577
898
3,822

84 Time deposits..........................................................

298,276
146
339

289,949
146
317

212,936
118
296

33,842

12,151

Mutual savings banks........................................
Other individuals, partnerships, and
corporations..............................................
U.S. Govt............................................................
States and political subdivisions.......................
Foreign governments, central banks, etc..........
Commercial banks in United States.................
Banks in foreign countries.................................

145

6

73,759
10
125

93,183
108
20

85,340
28
43

233,964
675
44,165
10,044
7,139
1,803

228,522
675
43,885
8,481
6,709
1,213

166,393
514
30,407
8,218
5,858
1,132

25,005
66
1,203
4,574
2,148
702

8,745
27
861
1,408
1,011
94

56,289
205
12,835
2,185
1,878
231

76,354
216
15,508
52
820
106

67,571
161
13,758
1,827
1,281
670

93 Savings deposits......................................................
94 Individuals and nonprofit organizations..........
95 Corporations and other profit organizations...
96 U.S. Govt............................................................
97 All other..............................................................

203,251
188,391
8,642
6,103
115

202,770
187,922
8,633
6,100
114

145,835
134,596
6,420
4,719
100

11,157
10,209
480
388
79

2,983
2,782
175
25

54,407
49,570
2,761
2,060
16

77,288
72,036
3,003
2,245
4

57,416
53,795
2,222
1,384
15

86
87
88
89
90
91
92

98 Total deposits.........................................................

838,328

825,002

618,860

105,200

25,401

220,912

267,347

219,468

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

72,847
42,819
5,603
24,425
7,304
776
10,118
23,389

70,188
40,613
5,577
23,998
5,120
774
9,755
16,013

66,899
39,195
5,345
22,360
4,840
548
9,366
13,772

15,000
6,523
949
7,529
2,500
66
4,714
4,539

8,643
7,241
29
1,373
49
15
177
805

34,537
20,844
3,651
10,041
1,919
271
4,186
5,298

8,719
4,587
716
3,416
372
196
288
3,129

5,948
3,624
258
2,066
2,464
227
752
9,617

107 Total liabilities........................................................

952,761

926,852

714,285

132,020

35,091

267,122

280,052

238,476

1,124

83

1,823

1,053

1,079

22,421
23
5,041
8,280
8,373
705

18,366
48
4,356
7,798
5,575
589

303,526

257,922

108 Subordinated notes and debentures.....................

5,161

5,098

4,082

109 Equity capital.........................................................
110 Preferred stock....................................................
111 Common stock...................................................
112 Surplus................................................................

72,889
73
16,238
29,205
25,505
1,868

72,070
67
16,143
28,791
25,266
1,803

54,522
25
11,882
21,407
19,929
1,279

11,179

2,593

2,453
4,229
4,406
91

570
1,243
728
52

18,329
2
3,818
7,655
6,422
432

115 Total liabilities and equity capital......................... 1,030,811 1,004,020

772,890

144,323

37,767

287,274

114

Other capital reserves........................................

M em o it e m s :

116 Demand deposits adjusted2..................................
Average for last 15 or 30 days:
Cash and due from bank...................................
Federal funds sold and securities purchased
under agreements to resell.........................
119 Total loans..........................................................
120 Time deposits of $100,000 or m ore..................
121 Total deposits.....................................................
122 Federal funds purchased and securities sold
under agreements to repurchase...............
123 Other liabilities for borrowed money...............

249,146

245,076

176,787

26,996

6,167

60,288

83,336

72,359

129,797

125,226

106,860

29,510

4,372

39,824

33,154

22,936

48,860
529,177
139,381
816,113

45,794
515,977
132,893
803,019

35,440
394,113
109,644
600,420

2,307
73,976
28,517
98,932

1,425
21,349
9,682
24,869

17,825
143,957
43,372
213,361

13,883
154,831
28,073
263,259

13,420
135,064
29,736
215,693

80,161
6,936

77,949
4,686

74,703
4,396

20,453
2,165

9,340
53

35,775
1,842

9,135
335

5,458
2,540

124 Standby letters of credit outstanding...................
125 Time deposits of $100,000 or m ore......................
126 Certificates of deposit........................................

13,493
141,153
117,258
23,895

12,969
135,031
113,275
21,756

11,340
111,415
92,891
18,524

6,494
28,795
24,451
4,344

921
9,582
8,276
1,306

3,162
44,546
35,878
8,668

762
28,492
24,285
4,207

2,153
29,738
24,368
5,371

128 Number of banks..................................................

14,672

14,397

5,758

12

9

154

5,583

8,914

117
118

1 Member banks exclude and nonmember banks include 8 noninsured
trust companies that are members of the Federal Reserve System, and
member banks exclude 2 national banks outside the continental United
States.
2 Demand deposits adjusted are demand deposits other than domestic
commercial interbank and U.S. Govt., less cash items reported as in
process of collection.




N o t e .— Data include consolidated reports, including figures for all
bank-premises subsidiaries and other significant majority-owned do­
mestic subsidiaries. Securities are reported on a gross basis before deduc­
tions of valuation reserves. Holdings by type of security will be reported
as soon as they become available.
Back data in lesser detail were shown in previous B u l l e t in s . Details
may not add to totals because of rounding.

A20
1.27

Domestic Financial Statistics □ August 1977
A L L L A R G E W E E K L Y R E P O R T IN G C O M M E R C IA L B A N K S

Assets and Liabilities

Millions o f dollars, Wednesday figures

1977

Account

1 Total loans and investments.....................................
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22

Loans:

Federal funds sold 1..............................................

To commercial banks.......................................
To brokers and dealers involving—
U.S. Treasury securities...............................
Other securities.............................................
To others..........................................................
Commercial and industrial..............................
Agricultural......................................................
For purchasing or carrying securities:
To brokers and dealers:
U.S. Treasury securities...........................
To others:
U.S. Treasury securities...........................
To nonbank financial institutions:
Personal and sales finance cos., etc.............
Other..............................................................
To commercial banks:
Foreign..........................................................
Consumer instalment.......................................
Foreign governments, official institutions, etc..
All other loans..................................................

26
27
28
29
30
31
32
33

Investments:
Bills....................................................................
Notes and bonds, by maturity:

Other securities......................................................

Obligations of Stat es and political
subdivisions:
Tax warrants, short-term notes, and

Other bonds, corporate stocks, and
securities:
Certificates of participation2.......................
All other, including corporate stocks.........

38 Investments in subsidiaries not consolidated........
39

45
46
47
48
49
50
51
52
53
54
55

June 22

June 29

July 6

July 13

July 20

July 27

422,968

425,999

421,099

424,410

426,406

425,072

425,456

422,237

24,905

23,217

21,562

16,653

16,534

23,442

19,270

24,521

23,170

17,268

22,840

21,614

19,016

18,063

18,304

16,914

5,878
570
1,804

4,221
466
1,996

2,274
436
1,584

2,211
292
1,669

3,369
410
1,726

3,062
332
1,713

2,253
402
1,881

2,543
424
1,733

294,032

296,999

295,845

297,686

298,934

298,202

298,978

298,948

117,744
4,595

118,371
4,628

119,653
4,688

119,439
4,693

119,099
4,694

118,592
4,713

118,441
4,739

118,863
4,745

2,158
7,810

2,ill

8,748

880
8,178

1,006
8,660

1,718
8,637

1,735
8,576

1,146
9,306

972
8,841

92
2,509

95
2,519

95
2,509

90
2,540

74
2,553

77
2,556

73
2,548

72
2,574

7,473
15,557
66,502

7,727
15,718
66,846

7,410
15,533
67,070

7,351
15,662
67,721

7,449
15,444
67,923

7,411
15,362
68,307

7,175
15,305
68,520

7,220
15,295
68,748

1,780
5,808
41,316
1,576
19,112

2,062
5,543
41,583
1,506
19,476

1,849
5,515
41,748
1,527
19,190

2,134
5,780
41,688
1,531
19,391

2,029
5,965
41,737
1,517
20,095

2,013
5,765
41,847
1,539
19,709

1,972
6,152
42,036
1,538
20,027

1,912
5,911
42,265
1,624
19,906

8,979

34 Cash items in process of collection........................
35 Reserves with F.R. Banks.......................................

41
42
43
44

June 15

L ess : L o a n lo ss re s e rv e a n d u n e a rn e d in c o m e

23
24
25

June 8

Deposits:
Individuals, partnerships, and corporations..
States and political subdivisions.....................
U.S. Govt..........................................................
Domestic interbank:
Foreign:
Governments, official institutions, etc.........
Certified and officers’ checks...........................
Time and savings deposits 3.................................
Time:
Individuals, partnerships, and corporations
States and political subdivisions..................
Domestic interbank.....................................
Foreign govts., official institutions, etc.......

56 Federal funds purchased, etc.5...............................
Borrowings from :
57 F.R. Banks............................................................
58
59 Other liabilities, etc.6..............................................
60 Total equity capital and subordinated
notes/debentures 7.............................................

9,028

9,065

8,967

8,920

8,996

9,050

9,082

285,053

287,971

286,780

288,719

290,014

289,206

289,928

289,866

49,784

50,788

49,024

48,295

47,826

47,816

47,889

46,565

8,890
26,930
4,009

8,773
26,834
3,816

8,906
26,286
3,961

9,062
26,061
3,845

9,113
25,667
4,151

9,283
25,680
4,040

64,023

63,733

63,954

64,045

64,880

64,799

9,233
25,331
3,941

8,563
41,121

8,468
41,622

8,400
41,608

8,286
41,677

8,599
41,547

9,234
41,888

8,865
41,930

8,692
41,741

2,045
11,497

2,063
11,870

2,046
11,679

2,131
11,860

2,089
11,810

2,063
11,695

2,105
11,899

2,057
11,702

36,147
16,109
5,709
14,269
2,694
55,522

44,728
21,267
5,729
12,788
2,691
54,593

38,133
18,691
5,919
12,738
2,674
54,123

38,932
16,776
6,119
14,738
2,675
53,796

46,609
17,382
5,437
14,327
2,659
57,156

38,665
18,779
6,047
12,785
2,672
56,569

41,353
22,048
5,945
12,976
2,738
55,412

38,362
20,485
6,028
12,603
2,767
54,709

553,418

567,795

553,377

557,446

569,976

560,589

565,928

557,191

171,771

191,279

173,445

176,019

188,998

177,853

181,059

175,902

26,984
870

25,475
786

23,534
780

25,407
832

28,764
1,124

25,410
926

25,374
956

25,088
897

1,508
5,982
6,332

1,152
5,665
7,589

1,120
6,117
8,041

1,266
6,356
7,640

1,271
6,013
7,560

1,091
6,145
7,201

1,316
6,815
8,145

236,847

236,054

236,862

1,567
7,044
7,172

237,931

236,716

237,138

237,099

237,766

9,942

8,820
27,080
3,942
63,226

123,597
5,577
921

10,959

134,463
6,237
9,912

125,870
6,083
1,900

9,142

126,871
6,298
1,349

94,477
142,370
108,361
20,352
4,712
7,370

94,144
141,910
108,051
20,131
4,750
7,380

70,098

65,106

68,754

69,464

708
4,535
26,796

894
4,640
27,226

1,075
4,617
25,933

387
5,007
25,890

42,663

42,596

42,691

42,748

1 Includes securities purchased under agreements to resell.
2 Federal agencies only.
3 Includes time deposits of U.S. Govt, and of foreign banks, which are
not shown separately.
4 For amounts of these deposits by ownership categories, see Table 1.30.




9,601

93,980
142,882
108,868
20,062
4,847
7,449

94,084
143,847
109,842
19,921
4,880
7,549

8,858

135,158
6,395
2,713

8,885

130,141
5,634
1,305

8,886

129,877
5,966
2,610

8,060

64,192

126,417
5,815
1,902

94,380
142,758
108,996
20,343
4,421
7,386

94,370
142,729
109,268
20,474
4,416
6,971

71,174

73,166

74,537

71,381

75
4,745
25,350

263
3,785
25,340

68
3,627
26,535

289
3,553
25,236

42,918

43,044

43,003

43,064

94,484
142,232
108,478
19,999
4,565
7,477

94,351
143,415
109,651
20,666
4,388
7,122

5 Includes securities sold under agreements to repurchase.
6 Includes minority interest in consolidated subsidiaries and deferred
tax portion of reserves for loans.
7 Includes reserves for securities and contingency portion of reserves
for loans.

Weekly Reporting Banks
1.28

L A R G E W E E K L Y R E P O R T IN G C O M M E R C IA L B A N K S IN N E W Y O R K C IT Y

A21

Assets and L iabilities

Millions of dollars, Wednesday figures
1977

Account
June 8
1 Total loans and investments.....................................
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16

Loans:

Federal funds sold 1..............................................

To commercial banks.......................................
To brokers and dealers involving—
U.S. Treasury securities...............................
Other securities.............................................
To others..........................................................

Other, gross ..........................................................

Commercial and industrial..............................
Agricultural......................................................
For purchasing or carrying securities:
To brokers and dealers:
U.S. Treasury securities...........................
Other securities.........................................
To others:
U.S. Treasury securities...........................
Other securities.........................................
To nonbank financial institutions:
Personal and sales finance cos., etc.............
Other..............................................................
Real estate........................................................
To commercial banks:
Domestic.......................................................
Foreign..........................................................
Consumer instalment.......................................
Foreign governments, official institutions, etc.
All other loans..................................................

17
18
19
20
21
22

L ess : L o a n lo ss r e s e r v e a n d u n e a r n e d in c o m e

23

Other loans, net ....................................................

24
25

on loans.................................................

91,205

June 15

June 22

June 29

93,897

91,018

92,491

92,596

92,160

92,739

90,163

4,503

3,461

3,417

2,120

1,906

3,760

2,761

July 13

July 20

July 27

3,715

3,627

1,808

2,460

2,512

1,119
1
433

685
0
570

494
3
618

563
0
636

647
5
689

884
3
624

469
0
952

636
0
660

67,318

68,739

33,856
129

67,064

67,850

68,592

67,892

68,036

67,427

33,503
131
1,888
4,084

1,900
4,730

690
4,252

812
4,507

1,493
4,336

1,444
4,324

927
4,920

826
4,557

24
346

24
345

24
346

24
347

24
347

25
347

24
341

23
376

2,395
4,927
8,761

2,619
4,968
8,777

2,446
4,900
8,761

2,402
4,893
8,732

2,531
4,775
8,687

2,527
A, 121

8,701

2,351
4,747
8,685

2,390
4,758
8,680

479
2,770
4,090
326
3,594

738
2,569
4,109
305
3,670

545
2,511
4,124
332
3,509

750
2,698
4,144
331
3,615

674
2,780
4,145
342
3,955

752
2,689
4,144
365
3,859

743
2,933
4,152
375
4,015

708
2,777
4,151
418
3,721

3,361

34,467
157

3,304

34,446
149

34,353
150

33,840
148

2,339

33,677
146

1,465

33,897
145

1,682

1,688

1,678

1,633

1,605

1,626

1,642

1,634

65,636

67,051

65,386

66,217

66,987

66,266

66,394

65,793

11,941

12,669

11,676

11,373

1,182
6,489
829

1,180
6,199
841

10,267

Investments:

U.S. Treasury securities .......................................

July 6

11,772

12,070

11,310

3,555

12,002

3,258

3,739

3,083

1,174
6,156
793

1,232
6,018
865

1,351
5,989
877

1,355
5,814
1,147

1,412
5,898
1,021

1,440
5,819
968

10,462

10,329

10,398

10,376

10,475

10,515

10,299

2,435
6,059

2,451
6,200

2,418
6,172

2,355
6,238

2,329
6,242

2,525
6,298

2,443
6,338

2,334
6,323

213
1,560

214
1,597

214
1,525

211
1,594

201
1,604

200
1,452

196
1,538

195
1,447

14,587
5,464
817
6,390.
1,289
20,091

12,457
5,871
865
5,630
1,302
20,170

15,930
5,134
825
6,210
1,312
20,096

14,150
5,288
857
5,571
1,307
20,217

141,234

138,455

142,246

137,553

4,449

3,553

3,686

32
33

Bills....................................................................
Notes and bonds, by maturity:
Within 1 year................................................
1 to 5 years...................................................
After 5 years.................................................
Other securities.....................................................
Obligations of States and political
subdivisions:
Tax warrants, short-term notes, and bills..
All other........................................................
Other bonds, corporate stocks, and
securities:
Certificates of participation2.......................
All other, including corporate stocks.........

34
35
36
37
38
39

Cash items in process of collection........................
Reserves with F.R. Banks.......................................
Currency and coin...................................................
Balances with domestic banks.................................
Investments in subsidiaries not consolidated........
Other assets..............................................................

12,186
4,862
885
7,643
1,284
19,766

15,515
5,931
870
5,701
1,284
18,710

13,595
4,972
882
5,735
1,285
18,976

14,358
4,006
906
6,907
1,289
18,720

40 Total assets/total liabilities......................................

137,831

141,908

136,463

138,677

49,478

55,989

49,948

51,992

28,307
529
112

52,871

49,390

53,777

29,505
605
494

29,190
519
514

27,035
474
298

13,903
466

12,061
378

11,181
391

12,747
416

12,519
599

12,066
496

12,166
510

12,245
480

1,247
4,594
2,921

911
4,356
3,809

888
4,746
4,487

1,062
4,974
3,845

986
4,619
3,544

811
4,598
3,517

1,060
5,369
4,449

1,282
5,544
3,568

41,700

41,486

26
27
28
29
30
31

41
42
43
44

3,441

Deposits:

Demand deposits ...................................................

30,536
760
3,178

27,282
649
324

27,314
491
97

50,926

Individuals, partnerships, and corporations..
States and political subdivisions.....................
U.S. Govt..........................................................
Domestic interbank:
Commercial..................................................
Mutual savings.............................................
Foreign :
Governments, official institutions, etc.........
Commercial banks.......................................
Certified and officers’ checks...........................
Time and savings deposits 3...................................
Savings4............................................................
Time:
Individuals, partnerships, and corporations
States and political subdivisions..............
Domestic interbank.....................................
Foreign govts., official institutions, etc.......

25,610
652
85

42,302

41,960

42,215

10,694
31,666
23,366
1,357
1,874
4,180

41,562

10,684
31,016
23,040
1,210
1,737
4,152

10,663
30,899
23,072
1,256
1,636
4,060

41,466

10,781
31,179
22,943
1,441
1,821
4,104

10,741
31,474
23,100
1,412
1,889
4,187

42,360

10,776
31,526
23,198
1,469
1,792
4,169

10,671
30,795
23,071
1,281
1,613
3,969

10,634
30,852
23,028
1,303
1,587
4,071

56 Federal funds purchased, etc. 5...............................
Borrowings from:
57 F.R. Ranks...........................................................
58 Others...................................................................
59 Other liabilities, etc. 6..............................................
60 Total equity capital and subordinated
notes/debentures 7.............................................

19,735

17,384

18,517

18,813

21,553

22,267

21,054

20,130

580
1,837
11,846

110
1,812
12,601

396
1,721
11,535

1,793
11,579

1,733
11,216

1,552
11,500

1,483
12,295

1,409
11,422

12,053

12,052

12,131

12,140

12,161

12,184

12,171

12,180

45
46
47
48
49
50
51
52
53
54
55

1 Includes securities purchased under agreements to resell.
2 Federal agencies only.
3 Includes time deposits of U.S. Govt, and of foreign banks, which
are not shown separately.
4 For amounts of these deposits by ownership categories, see Table 1.30.




5 Includes securities sold under agreements to repurchase.
* Includes minority interest in consolidated subsidiaries and deferred
tax portion of reserves for loans.
7 Includes reserves for securities and contingency portion of reserves
for loans.

A22

Domestic Financial Statistics □ August 1977

1.29 LARGE WEEKLY REPORTING COMMERCIAL BANKS OUTSIDE NEW YORK CITY
Assets and Liabilities
Millions of dollars, Wednesday figures
1977

Account

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
27
28
29
30
31
32
33

Loans:
Federal funds sold1...................................................

47
48
49
50
51

June 22

June 29

July 6

July 13

July 20

July 27

331,763

332,102

330,081

331,919

333,810

332,912

332,717

332,074

21,544

19,502

17,935

18,939

21,060

19,753

19,080

18,853

14,845

Other, gross...............................................................

Commercial and industrial.............................
Agricultural......................................................
For purchasing or carrying securities:
To brokers and dealers:
U.S. Treasury securities...........................
Other securities.........................................
To others:
U.S. Treasury securities...........................
Other securities.........................................
To nonbank financial institutions:
Personal and sales finance cos., etc.............
O ther.............................................................
Real estate........................................................
To commercial banks:

Foreign..........................................................
Consumer instalment.......................................
Foreign governments, official institutions, etc.
All other loans..................................................
Less : Loan reserve and unearned income on
loans....................................................
Other loans, net.........................................................

Investments:
U.S. Treasury securities...........................................

Bills...................................................................
Notes and bonds, by maturity:
Within 1 year................................................
1 to 5 years....................................................
After 5 years.................................................

Other securities..........................................................

Obligations of States and political
subdivisions:
Tax warrants, short-term notes, and bills..
All other........................................................
Other bonds, corporate stocks, and
securities:
Certificates of participation2.......................
All other, including corporate stocks.........

38 Investments in subsidiaries not consolidated........
39

45
46

June 15

To commercial banks......................................
To brokers and dealers involving—
U.S. Treasury securities...............................
Other securities............................................
To others..........................................................

34 Cash items in process of collection.........................
35 Reserves with F. R. Banks............... ......................

41
42
43
44

June 8

Deposits:
Demand deposits.........................................................

Individuals, partnerships, and corporations..
States and political subdivisions.....................
U.S. Govt..........................................................
Domestic interbank:
Commercial..................................................
Mutual savings.............................................
Foreign:
Governments, official institutions, etc.........
Certified and officers’ checks...........................

52
53
54
55

Savings4............................................................
Time:
Individuals, partnerships, and corporations
States and political subdivisions.................
Domestic interbank.....................................
Foreign govts., official institutions, etc.......

57
58

Borrowings from :
F. R. Banks..........................................................
Others....................................................................

60 Total equity capital and subordinated

14,074

14,756

4,749
569
1,371

3,536
466
1,426

1,780
433
966

1,648
292
1,033

2,722
405
1,037

2,178
329
1,089

1,784
402
929

1,907
424
1,073

226,714

228,260

228,781

229,836

230,342

230,310

230,942

231,521

16,896

16,157

15,965

15,449

84,241
4,464

84,515
4,499

270
3,726

277
4,018

190
3,926

194
4,153

225
4,301

291
4,252

219
4,386

146
4,284

68
2,163

71
2,174

71
2,163

66
2,193

50
2,206

52
2,209

49
2,207

49
2,198

5,078
10,630
57,741

5,108
10,750
58,069

4,964
10,633
58,309

4,949
10,769
58,989

4,918
10,669
59,236

4,884
10,635
59,606

4,824
10,558
59,835

4,830
10,537
60,068

1,301
3,038
37,226
1,250
15,518

1,324
2,974
37,474
1,201
15,806

1,304
3,004
37,624
1,195
15,681

1,384
3,082
37,544
1,200
15,776

1,355
3,185
37,592
1,175
16,140

1,261
3,076
37,703
1,174
15,850

1,229
3,219
37,884
1,163
16,012

1,204
3,134
38,114
1,206
16,185

7,297

85,186
4,531

84,993
4,544

84,746
4,544

84,752
4,565

84,764
4,593

84,966
4,600

219,417

7,340

7,387

7,334

7,315

7,370

220,920

221,394

222,502

223,027

222,940

7,408

7,448

223,534

224,073

37,843

38,119

37,348

36,922

36,054

35,814

35,819

5,147

35,255
A,911

7,638
20,591
3,113

7,710
20,731
3,168

7,599
20,678
3,023

7,674
20,268
3,096

7,758
19,853
3,004

52,959

53,561

7,711
20,072
2,968

7,871
19,782
3,019

7,793
19,512
2,973

53,404

53,556

53,669

54,405

54,284

53,893

6,128
35,062

6,017
35,422

5,982
35,436

5,931
35,439

6,270
35,305

6,709
35,590

6,422
35,592

6,358
35,418

1,832
9,937

1,849
10,273

1,832
10,154

1,920
10,266

1,888
10,206

1,863
10,243

1,909
10,361

1,862
10,255

23,961
11,247
4,824
6,626
1,410
35,756

29,213
15,336
4,859
7,087
1,407
35,883

24,538
13,719
5,037
7,003
1,389
35,147

24,574
12,770
5,213
7,831
1,386
35,076

32,022
11,918
4,620
7,937
1,370
37,065

26,208
12,908
5,182
7,155
1,370
36,399

25,423
16,914
5,120
6,766
1,426
35,316

24,212
15,197
5,171
7,032
1,460
34,492

415,587

425,887

416,914

418,769

428,742

422,134

423,682

419,638

122,293

135,290

123,497

124,027

136,127

128,463

127,282

102,827
5,143
1,208

100,687
5,447
2,096

124,976

13,081
404

13,414
408

12,353
389

12,660
416

16,245
525

13,344
430

13,208
446

12,843
417

261
1,388
3,411

241
1,309
3,780

232
1,371
3,554

204
1,382
3,795

285
1,394
4,016

280
1,547
3,684

256
1,446
3,696

194,545

285
1,500
3,604

194,094

194,647

195,571

195,016

195,576

195,633

196,280

50,363

47,722

50,237

50,651

49,621

50,899

53,483

51,251

128
2,698
14,950

784
2,828
14,625

679
2,896
14,398

387
3,214
14,311

75
3,012
14,134

263
2,233
13,840

68
2,144
14,240

289
2,144
13,814

30,610

30,544

30,560

30,608

30,757

30,860

30,832

30,884

6,501

97,987
4,925
836

83,701
110,844
85,163
18,883
2,920
3,201

6,510

103,927
5,477
6,734

83,363
110,731
85,108
18,690
2,929
3,276

1 Includes securities purchased under agreements to resell.
2 Federal agencies only.
3 Includes time deposits of U.S. Govt, and of foreign banks, which
are not shown separately.
4 For amounts of these deposits by ownership categories, see Table 1.30.




15,966

6,048

98,588
5,434
1,576

83,239
111,408
85,768
18,650
2,958
3,262

5,884

98,564
5,769
1,237

83,390
112,181
86,476
18,564
3,006
3,369

5,303

105,653
5,790
2,219

83,800
111,216
85,438
18,789
2,828
3,325

5,199

83,717
111,859
85,924
19,087
2,785
3,326

83,699
111,934
86,197
19,193
2,803
3,002

99,382
5,341
1,604

83,717
112,563
86,623
19,363
2,801
3,051

5 Includes securities sold under agreements to repurchase.
6 Includes minority interest in consolidated subsidiaries and deferred
tax portion of reserves for loans.
7 Includes reserves for securities and contingency portion of reserves
for loans.

Weekly Reporting Banks
1.30

A23

Balance Sheet Memoranda

L A R G E W E E K L Y R E P O R T IN G C O M M E R C IA L B A N K S
Millions o f dollars, Wednesday figures

Account and bank group

Total loans (gross) and investments, adjusted1
1

2
3
4
5
6
7
8
9

Large banks...............................................................

New York City banks.....................................
Banks outside New York City........................

Total loans (gross), adjusted
Large banks...............................................................

New York City banks.....................................
Banks outside New York City........................
Demand deposits, adjusted2
Large banks................................................................

June 8

June 15

June 22

June 29

July 6

July 13

July 20

July 27

413,514

416,431

411,047

411,973

414,281

413,992

414,230

412,493

301,542

301,736

90,600
322,914

300,504

69,256
232,364

107,719

111,164

23,304
84,415

Large negotiable time CD’s included in time and
savings deposits3
Total:
10 Large banks..............................................................
11
New York C ity.................................................
12
Banks outside New York City........................
Issued to IPC’s:
13 Large banks...............................................................

62,983
20,786
42,197

16
17
18

Banks outside New York City........................
Issued to others:
Large banks................................................................

New York City banks.....................................
Banks outside New York City........................

All other large time deposits4
Total:
19 Large banks..............................................................
20
New York City banks.....................................
21
Banks outside New York City........................
Issued to IPC’s:
22 Large banks...............................................................
23
New York City banks.....................................
24
Banks outside New York City........................
Issued to others:
25 Large banks................................................................
26
New York City banks.....................................
27
Banks outside New York City.......................

28
30
31
33
34
35
36
37
38
39

40
41
42
43
44
45

Savings deposits, by ownership category
Individuals and nonprofit organizations:
Large banks...............................................................

Banks outside New York C ity........................
Partnerships and corporations for profit:5
Large banks................................................................

Banks outside New York C ity........................
Domestic governmental units:
Large banks................................................................

41,588

41,057

68,299
231,425

109,878

110,331

24,848
85,030

63,322
20,593
42,729
41,630

24,775
85,556

110,912

25,271
85,641

41,219

21,692

21,649

6,903
14,789

69,259
233,151

42,353

21,502

6,791
14,711

302,410

62,214
20,232
41,982

21,395

6,844
14,551

91,407
322,874

64,002
20,737
43,265
13,930
28,423
6,807
14,842

91,128
322,864
301,296

91,299
322,931

68,651
232,645

68,714
232,828

112,473

111,722

24,770
87,703

62,544
20,056
42,488
41,585

25,167
86,555

62,329
19,976
42,353
41,704

89,624
322,869

68,015
233,721

110,550

24,233
86,317

63,082
20,018
43,064
42,144

13,715
27,504

13,696
27,889

13,691
28,013

13,657
28,487

20,995

20,959

20,625

20,938

6,517
14,478

6,360
14,599

6,285
14,340

6,361
14,577

26,239
5,381
20,858

26,070
5,395
20,675

26,163
5,418
20,745

26,298
5,466
20,832

26,530
5,400
21,130

26,788
5,500
21,288

26,999
5,462
21,537

27,099
5,468
21,631

14,391

14,469

14,594

14,694

14,609

14,761

14,927

14,998

3,959
10,432

11,848

1,422
10,426

87,014

9,716
77,298
5,130

4,015
10,454

11,601

1,380
10,221

86,707

11,569

1,404
10,165

86,652

9,688
76,964

5,048

5,061

566
4,482

2,285

2,334

492
1,842
55

35
20

30
18

3,155

4,014
10,580

9,688
77,019

572
4,558

48

5,597

New York City banks.....................................
Banks outside New York City........................

1,911
1,244

4,349
1,248

Loans sold outright to selected institutions by all
large banks7
Commercial and industrial..................................
Real estate............................................................
All other...............................................................

2,698
204
1,053

2,742
216
1,028

1 Exclusive of loans and Federal funds transactions with domestic
commercial banks.
2 All demand deposits except U.S. Govt, and domestic commercial
banks, less cash items in process of collection.
3 Certificates of deposit (CD’s) issued in denominations of $100,000 or
more.
4 All other time deposits issued in denominations of $100,000 or more
(not included in large negotiable CD’s).




299,724

67,634
230,656

13,690
27,940

Large banks................................................................

Large banks................................................................

62,559
20,338
42,221

298,290

90,070
321,903

13,547
27,510

458
1,827

Gross liabilities of banks to their foreign
branches

25,235
85,929

89,639
321,408

13,942
27,646

New York City banks.....................................
Banks outside New York City........................
All other:6
New York City banks.....................................
Banks outside New York City........................

301,620

68,392
232,112

New York City banks.....................................
Banks outside New York City........................

15

92,387
324,044

4,039
10,655

11,604

1,427
10,177

86,928

9,681
77,247

5,062

4,000
10,609

11,921

1,400
10,521

87,441

9,754
77,687
5,075

4,093
10,668

12,027

1,407
10,620

87,373

9,734
77,639
5,077

4,084
10,843

12,072

1,378
10,694

87,358

5,132

573
4,504

570
4,516

2,209

2,041

1,926

1,886

1,884

58

38
20

3,751

53

35
18

4,535

42

332
1,554
44

87,357

5,086

567
4,508
339
1,587

1,387
10,714

9,720
77,637

567
4,495
411
1,630

12,101

9,733
77,625

564
4,497
451
1,758

4,081
10,917

347
1,537
42

573
4,559
1,820

320
1,500
42

24
18

24
20

21
21

21
21

4,184

3,426

4,725

3,431

2,829
209
1,006

2,839
196
1,015

2,398
1,353

2,636
1,899

2,532
1,652

2,834
217
1,009

2,844
193
985

2,830
205
985

2,160
1,266

2,827
195
1,011

3,083
1,642

1,613
1,818

5 Other than commercial banks.
6 Domestic and foreign commercial banks, and official international
organizations.
7 To bank’s own foreign branches, nonconsolidated nonbank af­
filiates of the bank, the bank’s holding company (if not a bank), and
nonconsolidated nonbank subsidiaries of the holding company.

A24

Domestic Financial Statistics □ August 1977

1.31 LARGE WEEKLY REPORTING COMMERCIAL BANKS

Commercial and Industrial Loans

Millions of dollars
Outstanding

Net change during—

1977

Industry classification
June 29

July 6

July 13

1977
July 20

July 27

1977
May

Q2

Ql

June

July

Total loans classified2
1 Total....................................................

97,336

97,033

96,570

96,491

96,734

-9 1 6

1,542

-1 3 6

1,481

-6 0 2

2
3
4
5
6

Durable goods manufacturing:
Primary metals................................
Machinery.......................................
Transportation equipment.............
Other fabricated metal products...
Other durable goods......................

2,416
4,804
2,398
1,961
3,667

2,350
4,772
2,404
1,976
3,688

2,287
4,703
2,412
1,968
3,664

2,329
4,768
2,438
1,928
3,630

2,323
4,744
2,421
1,936
3,602

377
108
74
181
90

-161
38
94
70
323

-7
-3 5
35
-1 8
-1 5

10
56
-1 8
72
228

-9 3
-6 0
23
-2 5
-6 5

7
8
9
10
11

Nondurable goods manufacturing:
Food, liquor, and tobacco.............
Textiles, apparel, and leather........
Petroleum refining..........................
Chemicals and rubber....................
Other nondurable goods................

3,328
3,852
2,621
2,757
2,022

3,280
3,915
2,610
2,784
1,998

3,240
3,928
2,590
2,802
2,023

3,233
3,957
2,591
2,782
2,026

3,177
4,048
2,631
2,768
2,014

-151
381
-305
131
147

-2 1
475
285
68
-22

-1
111
68
-4 8
13

43
226
134
32
-3 3

-151
196
10
11
-8

8,172

8,164

8,133

8,114

8,160

94

757

170

403

-1 2

1,703
6,761
6,887
5,037
1,196
5,552
4,267
11,284

1,687
6,816
6,858
4,932
1,368
5,277
4,282
11,197

1,622
6,781
6,855
4,936
1,268
5,265
4,296
11,101

1,501
6,730
7,026
4,877
1,265
5,247
4,353
11,136

1,496
6,727
7,169
4,914
1,232
5,238
4,381
11,137

204
465
405
-1 4 0
-1 0
-6 1
64
398

-4 3 4
36
380
-1 2 8
-1 5 2
12
294
331

-2 1 7
-1 2 4
156
-1 4
-6
-3
85
187

-8 6
40
140
27
-1 0 7
167
148
23

-2 0 7
-3 4
282
-1 2 3
36
-3 1 4
114
-1 4 7

7,721
3,680

7,764
3,706

7,637
3,828

7,652
3,670

7,689
3,691

-3 0 3
-2 ,9 3 0

105
-2 6 3

140
-283

69
6

-3 2
11

5,250

5,205

5,231

5,238

5,236

-1 3 5

-5 4 5

-3 3 0

-9 9

-1 4

243

-2 1 6

-3 4

-1 0

70

—75

118,862

203

2,648

-2 7

1,819

-5 7 6

12 Mining, including crude petroleum
and natural gas...........................
Trade:
13 Commodity dealers.........................
14 Other wholesale...............................
15 Retail...............................................
16 Transportation....................................
17 Communication..................................
18 Other public utilities...........................
19 Construction.......................................
20 Services................................................
21 All other domestic loans....................
22 Bankers acceptances...........................
23 Foreign commercial and industrial
loans............................................
M em o:

24 Commercial paper included in
total classified loans1.................
25 Total commercial and industrial
loans of all large weekly
reporting banks...........................

318
119,439

119,099

118,592

118,441

1977
Mar. 30

Apr. 27

May 25

1977
June 29

July 27

1977
Q2

Ql

May

June

July

“Term” loans classified3
26 Total....................................................

45,841

45,893

46,107

46,516

45,901

630

675

214

409

-6 1 5

27
28
29
30
31

Durable goods manufacturing:
Primary metals................................
Machinery.......................................
Transportation equipment.............
Other fabricated metal products...
Other durable goods.......................

1,521
2,552
1,339
820
1,625

1,344
2,499
1,383
841
1,630

1,342
2,490
1,386
826
1,647

1,388
2,520
1,382
832
1,722

1,323
2,414
1,404
813
1,719

204
-3 3
-1 3
44

-1 3 3
-32
43
12
97

-2
-9
3
-1 5
17

46
30
-4
6
75

-6 5
-1 0 6
22
-1 9
—3

32
33
34
35
36

Nondurable goods manufacturing:
Food, liquor, and tobacco.............
Textiles, apparel, and leather........
Petroleum refining..........................
Chemicals and rubber....................
Other nondurable goods................

1,412
1,071
1,770
1,547
1,032

1,374
1,099
1,805
1,589
1,101

1,438
1,163
1,824
1,615
1,172

1,435
1,150
1,938
1,646
1,128

1,363
1,204
1,975
1,677
1,118

14
-2 7
-2 0 2
103
78

23
79
168
99
96

64
64
19
26
71

-3
-1 3
114
31
-4 4

-7 2
54
37
31
-1 0

5,856

6,015

6,043

6,375

6,250

173

519

28

332

-1 2 5

199
1,479
2,268
3,773
779
3,907
1,661
5,111
2,433

199
1,489
2,274
3,695
802
3,796
1,720
5,188
2,408

202
1,519
2,353
3,604
793
3,796
1,722
5,283
2,465

171
1,483
2,325
3,649
748
3,771
1,833
5,301
2,432

180
1,478
2,331
3,607
764
3,416
1,873
5,247
2,464

-1
16
223
-1 6 4
-6 8
243
32
113
-1 6 7

-2 8
4
57
-1 2 4
-3 1
—136
172
190
-1

3
30
79
-9 1
-9
2
95
57

-3 1
-3 6
-2 8
45
-4 5
—25
111
18
-3 3

9
-5
6
-4 2
16
—355
40
-5 4
32

3,686

3,642

3,424

3,287

3,281

62

-3 9 9

-218

-1 3 7

37 Mining, including crude petroleum
and natural gas...........................
Trade:
38 Commodity dealers.........................
39 Other wholesale..............................
40 Retail...............................................
41 Transportation...................................
42 Communication..................................
43 Other public utilities...........................
44 Construction.......................................
45 Services................................................
46 All other domestic loans....................
47 Foreign commercial and industrial
loans............................................

1 Reported for the last Wednesday of each month.
2 Includes “term” loans, shown below.
3 Outstanding loans with an original maturity of more than 1 year and




-6

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.

A25

Deposits and Commercial Paper
1.32 GROSS DEMAND DEPOSITS of Individuals, Partnerships, and Corporations
Billions of dollars, estimated daily-average balances
At commercial banks
Type of holder

1972
Dec.

1973
Dec.

1974
Dec.

1975

1976

1977

Dec.

Mar.

June

Sept.

Dec.

Mar.

June?

1 All holders, IP C .....................................................

208.0

220.1

225.0

236.9

227.9

234.2

236.1

250.1

242.3

253.8

2 Financial business..................................................

18.9
109.9
65.4
1.5
12.3

19.1
116.2
70.1
2.4
12.4

19.0
118.8
73.3
2.3
11.7

20.1
125.1
78.0
2.4
11.3

19.9
116.9
77.2
2.4
11.4

20.3
121.2
78.8
2.5
11.4

19.7
122.6
80.0
2.3
11.5

22.3
130.2
82.6
2.7
12.4

21.6
125.1
81.6
2.4
11.6

25.9
129.2
84.1
2.5
12.2

4 Consumer...............................................................

At weekly reporting banks

7 All holders, IP C .....................................................
8
9
10
11
12

Financial business..................................................
Nonfinancial business............................................
Consumer................................................................
Foreign....................................................................
Other.......................................................................

1973
Dec.

1974
Dec.

1975
Dec.

118.1

119.7

14.9
66.2
28.0
2.2
6.8

14.8
66.9
29.0
2.2
6.8

N o t e .— Figures include cash items in process of collection. Estimates of
gross deposits are based on reports supplied by a sample of commercial

1977

1976
Dec.

Jan.

Feb.

Mar.

Apr.

May

June?

124.4

128.5

127.4

123.0

124.7

127.5

124.4

128.7

15.6
69.9
29.9
2.3
6.6

17.5
69.7
31.7
2.6
7.1

16.7
69.5
32.0
2.2
7.1

15.6
67.4
31.1
2.4
6.5

16.7
67.8
31.5
2.2
6.5

16.7
68.5
33.5
2.3
6.6

17.0
67.2
31.5
2.4
6.4

17.8
69.5
32.3
2.4
6.7

banks. Types of depositors in each category are described in the June 1971
B u l l e t in , p. 466.

1.33 COMMERCIAL PAPER AND BANKERS ACCEPTANCES OUTSTANDING
Millions of dollars, end of period

Instrument

1974
Dec.

1975
Dec.

1976
Dec.

1976
Dec.

1977
Jan.

Feb.

Mar.

Apr.

May

June

Commercial paper (seasonally adjusted)
1
Financial companies: 1
Dealer-placed paper;2
Total................................................................
Bank-related....................................................
Directly-placed paper:3
Total................................................................
Bank-related....................................................

6 Nonfinancial companies4......................................

2
3
4
5

49,742

48,145

52,623

52,623

52,778

52,775

54,546

56,715

57,434

61,237

4,599
1,814

6,220
1,762

7,271
1,900

7,271
1,900

7,053
1,895

6,931
1,929

7,196
1,839

7,286
1,778

7,555
1,805

8,196
1,894

31,801
6,518

31,230
6,892

32,365
5,959

32,365
5,959

32,726
5,637

32,073
5,502

33,873
6,126

34,753
5,703

34,949
5,999

37,593
6,636

13,342

10,695

12,987

12,987

12,999

13,771

13,475

14,676

14,930

15,538

23,201

23,440

Dollar acceptances (not seasonally adjusted)
7 Total........................................................................ 18,484
8
9
10

18,727

22,523

22,523

22,362

Held by:

Accepting banks ..................................................

22,187

22,694

22,899

7,333

10,442

8,769
1,673

7,011
1,172

6,654
1,337

6,367
1,421

6,309
1,381

7,326

5,899
1,435

10,442
8,769
1,673

8,183

3,685
542

'6,218
1,108

7,630
6,356
1,273

999
1,109

1,126
293

991
375

991
375

191
374

322
440

280
435

881
394

108
385

228
360

4,226

7,991

7,787

7,761

11
12

Own bills.........................................................
Bills bought....................................................
F.R. Banks:
Own account..................................................
Foreign correspondents.................................

13

Others..................................................................

12,150

9,975

13,447

10,715

13,615

13,434

14,191

13,863

15,382

15,222

Based on:
14 Imports into United States...............................
15 Exports from United States..............................
16 All other..............................................................

4,023
4,067
10,394

3,726
4,001
11,000

4,992
4,818
12,713

4,992
4,818
12,713

4,992
5,137
12,233

5,138
5,074
11,974

4,983
5,222
12,489

5,114
5,376
12,410

5,124
5,642
12,436

5,635
5,729
12,076

1 Institutions engaged primarily in activities such as, but not limited to,
commercial, savings, and mortgage banking; sales, personal, and mortgage
financing; factoring, finance leasing, and other business lending; insurance
underwriting; and other investment activities.
2 Includes all financial company paper sold by dealers in the open
market.




3 As reported by financial companies that place their paper directly
with investors.
4 Includes public utilities and firms engaged primarily in activities such
as communications, construction, manufacturing, mining, wholesale and
retail trade, transportation, and services,

A26

Domestic Financial Statistics □ August 1977

1.34 PRIME RATE CHARGED BY BANKS on Short-term Business Loans
Per cent per annum
Rate

Effective date
1976_Jan
June
Aug.

7
63^

12.............
21. ..
1
7 ..

7
7%

2.............

7

Month

Average
rate

Month

Average
rate

1976—Feb.......................
Mar......................
Apr......................
May.....................
June.....................
July.....................
Aug......................
Sept......................
Oct.......................

6.75
6.75
6.75
6.75
7.20
7.25
7.01
7.00
6.78

1976—Nov......................
Dec......................

6.50
6.35

1977—Jan.......................
F eb......................
M ar.....................
A pr......................
May.....................

6.25
6.25
6.25
6.25
6.41
6.75

Rate

Effective date
1976—Oct.

4...........

6 y4

Nov.

1...........

61/2

Dec. 13...........

6V4

1977—May 13...........
31...........

61/2
63/4

1.35 TERMS OF LENDING AT COMMERCIAL BANKS

May 2-7, 1977, survey

Per cent per annum

Item

Size of loan (in thousands of dollars)

All
sizes
1-24

25-49

50-99

100-499

500-999

1,000
and over

Short-term commercial and industrial loans
1
2
3
4
5

Amount of loans (thousands of dollars).
Number of loans......................................
Weighted-average maturity (months). . .
Weighted-average interest rate (per cent)
Interquartile range 1............................
Percentage of amount of loans:
6 With floating rate.................................
7 Made under commitment...................

6,652,747
144,391
2.9
7.37
6.40-8.14

806,754
113,551
3.2
9.04
8.03-9.50

431,421
13,447
3.7
8.39
7.71-9.20

504,177
7,967
3.8
8.04
7.25-8.97

1,247,257
7,316
2.7
7.57
6.50-8.30

605,755
962
2.7
7.11
6.40-7.54

3,057,385
1,148
2.7
6.65
6.25-6.92

47.2
52.4

12.6
23.0

18.3
33.5

34.1
36.1

40.7
51.3

49.8
61.0

64.6
64.2

74,981
119
42.9
8.03
6.84-8.84

589,391
150
41.5
7.18
6.51-7.45

68.3
68.9

73.4
90.2

Long-term commercial and industrial loans
8
9
10
11
12

Amount of loans (thousands of dollars).
Number of loans.....................................
Weighted-average maturity (months)
Weighted-average interest rate (per cent)
Interquartile range 1............................
Percentage of amount of loans:
13 With floating rate.................................
14 Made under commitment....................

1,651,267
59,524
35.0
8.24
7.20-9.25

439,081
49,530
18.8
9.31
7.50-9.50

175,761
5,398
23.1
8.95
7.26-9.38

36.7
45.1

3.0
9.4

7.3
8.5

183,375
188,678
1,172
3,157
46.8
49.1
8.71
8.03
7.25-10.20 6.98-9.00
9.1
19.0

42.1
37.3

Construction and land development loans
15
16
17
18
19

Amount of loans (thousands of dollars).,
Number of loans.......................................
Weighted-average maturity (months)
Weighted-average interest rate (per cent)
Interquartile range 1............................
Percentage of amount of loans:
20 With floating rate.................................
21 Secured by real estate..........................
22 Made under commitment...................
23 Type of construction: 1-4 family..........
24
Multifamily.......................................
25
Nonresidential..................................

863,318
28,820
7.5
8.72
8.16-9.25

167,107
19,843
8.0
9.28
8.25-9.92

87,280
2,763
5.7
8.95
8.00-9.73

331,708
5,100
4.8
8.79
8.71-8.71

145,933
1,017
9.5
8.46
8.00-9.00

131 ,289
98
12.7
7.97
7.43--8.91

20.0
81.4
39.4
55.9
11.9
32.2

8.4
81.9
46.4
75.9
4.3
19.8

9.9
82.5
56.3
74.6
1.0
24.4

3.7
82.7
13.6
61.4
18.6
20.0

32.2
63.1
45.5
23.6
7.9
68.5

69.1
97.0
77.4
39.9
16.7
43.4

All
sizes

1-9

10-24

25-49

50-99

100-249

250
and over

Loans to farmers
26
27
28
29
30
31
32
33
34
35
36

924,826
Amount of loans (thousands of dollars).......................
Number of loans............................................................
77,543
8.3
Weighted-average maturity (months)...........................
8.73
Weighted-average interest rate (per cent).....................
Interquartile range 1................................................... 8.25-9.20
By purpose of loan:
8.42
Feeder livestock......................................................
Other livestock........................................................
8.20
Other current operating expenses..........................
8.84
Farm machinery and equipment...........................
9.40
O ther........................................................................
8.82

196,521
56,467
8.1
9.06
8.62-9.34

212,922
13,784
7.9
8.98
8.50-9.24

140,441
4,109
11.5
8.98
8.45-9.20

145,491
2,219
6.6
8.73
8.31-9.20

102,271
765
5.9
8.58
8.16-9.07

127,180
199
9.6
7.67
6.27-8.68

8.84
8.89
9.01
9.47
9.04

8.80
8.91
8.95
9.44
8.90

8.65
9.41
8.81
9.74
9.04

8.55
8.81
8.91
8.96
8.66

8.19
8.47
8.59
8.58
8.73

7.68
6.77
8.01
8.72
8.78

1 Interest rate range that covers the middle 50 per cent of the total
dollar amount of loans made.




N o t e .— For

more information, see the Board’s G.14 statistical release,

Securities M arkets
1.36

IN T E R E S T R A T E S

A ll

M oney and C apital M arkets

Averages, per cent per annum

Instrument

1974

1975

1977

1976
Apr.

May

1977, week ending—

June

July

July 2

July 9 July 16 July 23 July 30

Money market rates
1
2

Prime commercial paper 1
90- to 119-day...............
4- to 6-month................

10.05
9.87

6.26
6.33

5.24
5.35

4.75
4.87

5.26
5.35

5.42
5.49

5.38
5.41

5.38
5.44

5.38
5.43

5.38
5.41

5.38
5.40

5.41
5.42

3 Finance company paper, directly placed,
3- to 6-month 2...................................

8.62

6.16

5.22

4.81

5.13

5.38

5.38

5.38

5.38

5.38

5.38

5.38

4 Prime bankers acceptances, 90-day 3.

9.92

6.30

5.19

4,78

5.34

5.39

5.43

5.35

5.38

5.41

5.44

5.49

5 Federal funds 4...................................

10.51

5.82

5.05

4.73

5.35

5.39

5.42

5.43

5.35

5.33

5.35

5.45

Large negotiable certificates of deposit
6 3-month, secondary market 5............
7 3-month, primary market 6...............

10.27

6.43

5.26
5.15

4.81
4.72

5.20
5.13

5.42
5.35

5.46
5.32

5.40
5.30

5.45
5.25

5.45
5.38

5.43
5.38

5.65
5.65

8 Euro-dollar deposits, 3-month 7.

10.96

6.97

5.57

5.16

5.70

5.78

5.80

5.79

5.75

5.78

6.11

U.S. Govt, securities
Bills: 8
Market yields:
3-month.............................
6-month.............................
1-year.................................
Rates on new issue:
3-month.............................
6-month.............................

7.84
7.95
7.71

5.80
6.11
6.30

4.98
5.26
5.52

4.54
4.80
5.10

4.96
5.20
5.43

5.02
5.21
5.41

5.19
5.40
5.57

4.97
5.19
5.39

5.12
5.29
5.46

5.16
5.37
5.51

5.21
5.43
5.60

5.27
5.51
5.70

7.886
7.926

5.838
6.122

4.989
5.266

4.540
4.790

4.942
5.193

5.004
5.198

5.146
5.351

4.965
5.173

5.044
5.246

5.163
5.356

5.214
5.436

5.163
5.364

Notes and bonds maturing in
9 to 12 months 9 ...................
Constant maturities: 1o
1-year.....................................

.25

6.70

5.84

5.37

5.81

5.76

5.89

5.68

5.76

5.85

5.93

6.01

.18

6.76

5.88

5.44

5.84

5.80

5.88

5.72

5.81

5.88

5.99

6.08

9
10
11
12
13
14
15

Capital market rates

16
17
18
19
20
21
22

Government notes and bonds
U.S. Treasury:
Constant maturities:1o
2-year.........................
3-year.........................
5-year.........................
7-year.........................
10-year.......................
20-year.......................
30-year.......................

7.82
7.80
7.71
7.56
8.05

7.49
7.77
7.90
7.99
8.19

6.31
6.77
7.18
7.42
7.61
7.86

5.96
6.31
6.79
7.11
7.37
7.67
7.73

6.25
6.55
6.94
7.26
7.46
7.74
7.80

6.13
6.39
6.76
7.05
7.28
7.64
7.64

6.27
6.51
6.84
7.12
7.33
7.60
7.64

6.07
6.32
6.68
6.98
7.22
7.57
7.57

6.15
6.40
6.78
7.08
7.33
7.58
7.63

6.22
6.47
6.80
7.09
7.31
7.60
7.64

6.34
6.55
6.86
7.12
7.32
7.62
7.64

6.38
6.61
6.94
7.18
7.35
7.61
7.67

23
24

Notes and bonds maturing in?—
3 to 5 years...............................
Over 10 years (long-term)........

7.81
6.99

7.55
6.98

6.94
6.78

6.58
7.14

6.76
7.17

6.58
6.99

6.67
6.97

6.49
6.90

6.60
6.94

6.62
6.96

6.69
6.99

6.77
7.01

25
26
27

State and local:11
Moody’s series:
A aa.........................
B aa.........................
Bond Buyer series 12.

5.89
6.53
6.17

6.42
7.62
7.05

5.66
7.49
6.64

5.18
6.27
5.73

5.23
6.23
5.75

5.21
6.05
5.62

5.21
6.00
5.63

5.18
5.95
5.56

5.20
6.00
5.63

5.20
6.00
5.64

5.22
6.00
5.62

5.22
6.00
5.62

9.03

9.57

9.01

8.49

8.47

8.38

8.33

8.32

8.33

8.34

8.33

8.34

8.57
8.84
9.20
9.50

8.83
9.17
9.65
10.61

8.43
8.75
9.09
9.75

8.04
8.28
8.55
9.07

8.05
8.28
8.55
9.01

7.95
8.19
8.46
8.91

7.94
8.12
8.40
8.87

7.91
8.11
8.40
8.87

7.93
8.11
8.40
8.88

7.94
8.12
8.40
8.88

7.94
8.13
8.40
8.87

7.96
8.13
8.40
8.85

9.33
9.34

9.40
9.41

8.48
8.49

8.26
8.22

8.33
8.31

8.08
8.12

8.14
8.12

8.03

8.14
8.12

8.14
8.12

8.12
8.14

8.17
8.14

8.23
4.47

8.38
4.31

7.97
3.77

7.60
4.47

7.63
4.39

7.62
4.60

7.51
4.59

7.51
4.56

7.50
4.59

7.50
4.59

7.50
4.50

7.51
4.66

28
29
30
31
32
33
34
35
36

Corporate bonds
Seasoned issues 13
All industries... .
By rating groups:
A a ..
A . ..
Baa.
Aaa utility bonds:14
New issue.....................
Recently offered issues.
Dividend/price ratio
Preferred stocks..
Common stocks.

1 Averages of the most representative daily offering rate quoted by
dealers.
2 Averages of the most representative daily offering rates published by
finance companies for varying maturities in this range.
3 Beginning Aug. 15, 1974, the rate is the average of the midpoint of
the range of daily dealer closing rates offered for domestic issues; prior
data are averages of the most representative daily offering rate quoted by
dealers.
4 Weekly figures are 7-day averages of daily effective rates for the week
ending Wednesday; the daily effective rate is an average of the rates on
a given day weighted by the volume of transactions at these rates.
5 Weekly figures are 7-day averages of the daily midpoints as determined
from the range of offering rates; monthly figures are averages of total days
in the month.
6 Posted rates, which are the annual interest rates most often quoted
on new offerings of negotiable CD’s in denominations of $100,000 or
more. Rates prior to 1976 not available. Weekly figures are for Wednes­
day dates.




7 Averages of daily quotations for the week ending Wednesday.
8 Except for new bill issues, yields are computed from daily closing
bid prices. Yields for all bills are quoted on a bank-discount basis.
9 Unweighted averages for all outstanding notes and bonds in maturity
ranges shown, based on daily closing bid prices. “Long-term” includes
all bonds neither due nor callable in less than 10 years.
Yields on the more actively traded issues adjusted to constant
maturities by the U.S. Treasury, based on daily closing bid prices.
11 General obligations only, based on figures for Thursday, from
Moody’s Investors Service.
12 Twenty issues of mixed quality.
13 Averages of daily figures from Moody’s Investors Service.
14 Compilation of the Board of Governors of the Federal Reserve
System.
Issues included are long-term (20 years or more). New-issue yields are
based on quotations on date of offering; those on recently offered issues
(included only for first 4 weeks after termination of underwriter price
restrictions), on Friday close-of-business quotations.

A28
1.37

Domestic Financial Statistics □ August 1977
ST O C K M A R K E T

Selected Statistics
1977

Indicator

1974

1976

1975

Jan.

Feb.

Mar.

Apr.

May

June

July

54.31
58.44
43.29
41.59
55.15

54.94
58.90
43.52
42.44
57.29

Prices and trading (averages of daily figures)
Common stock prices
1 New York Stock Exchange (Dec. 31,1965 = 50).
2 Industrial............................................................
3 Transportation...................................................
4 Utility.................................................................
5 Finance...............................................................

43.84
48.08
31.89
29.82
49.67

45.73
51.88
30.73
31.45
46.62

54.45
60.44
39.57
36.97
52.94

56.28
61.26
41.93
41.13
57.86

54.93
59.65
40.59
40.86
55.65

54.67
59.56
40.52
40.18
54.84

6 Standard & Poor’s Corporation (1941-43 = 10)1..

82.85

85.17

102.01

103.81

100.96

100.57

99.05

98.76

99.29

100.19

7 American Stock Exchange (Aug. 31,1973 = 100).

79.97

83.15

101.63

111.04

112.17

111.77

111.70

113.72

116.28

122.03

Volume of trading (thousands of shares)2
8 New York Stock Exchange...............................
9 American Stock Exchange................................

13,883
1,908

18,568
2,150

21,189
2,565

23,562
3,268

19,310
2,830

17,814
2,580

17,380
2,500

18,700
2,440

20,478
2,720

19,215
2,880

53.92
58.47
41.51
40.24
54.30

53,96
58.13
43.25
41.14
54.80

Customer financing (end-of-period balances, in millions of dollars)
10 Regulated margin credit at brokers/dealers
and banks3..................................................
Brokers, total ......................................................
Margin stock4................................................
Convertible bonds..........................................
Subscription issues.........................................
Banks, total ........................................................
Margin stocks................................................
Convertible bonds..........................................
Subscription issues.........................................

11
12
13
14
15
16
17
18

4,836

6,500

9,011

9,301

3,980

5,540

9,523

8,166

8,469

8,679

r845

832

3,840
137
3
856

5,390
147
3
960

7,960
204
2

8,270
196
3

9,701

9,887

8,891

9,078

8,880
196
2

9,070
196
1

9,230
198
4

810

809

801

823

761
25
15

779
25
19

8,480
197
2

8,690
199
2

r844

9,267

10,255
9,432

815
30
11

909
36
15

r800
r30
M5

788
27
17

r799
r28
17

767
25
18

19 Unregulated nonmargin stock credit at banks5. . .

2,064

2,281

r2,817

2,844

r2,850

2,293

2,878

2,886

2,992

Free credit balances at brokers6
Margin-account..................................................
Cash-account......................................................

410
1,425

475
1,525

585
1,855

645
1,930

605
1,815

605
1,720

615
1,715

625
1,710

595
1,805

M em o:

20
21

766
25
18

10,068

Margin-account debt at brokers (percentage distribution, end of period)
22 Total........................................

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

By equity class (in per cent):7
Under 40..............................
40-49....................................
50-59....................................
60-69....................................
70-79....................................
80 or more...........................

45.4
23.0
13.9
8.8
4.6
4.3

24.0
28.8
22.3
11.6
6.9
5.3

12.0
23.0
35.0
15.0
8.7
6.0

15.0
28.8
28.0
13.0
8.3
5.8

17.6
34.9
23.4
11.3
7.3
5.5

16.5
36.8
23.2
11.6
6.7
5.3

16.5
34.1
25.4
11.8
6.8
5.4

17.8
35.6
23.0
11.0
7.0
5.0

12.9
27.0
33.0
13.3
8.0
5.8

23
24
25
26
27
28

Special miscellaneous-account balances at brokers (end of period)
29 Total balances (millions of dollars)8. . .
Distribution by equity status (per cent)
30 Net credit status.................................
Debit status, equity of—
31
60 per cent or more.......................
32
Less than 60 per cent.....................

7,010

7,290

8,776

9,070

9,170

9,350

9,300

9,360

41.1

43.8

41.3

42.3

42.9

42.3

41.4

41.0

41.0

32.4
26.5

40.8
15.4

47.8
10.9

46.6
11.1

45.5
11.6

46.0
11.7

46.3
12.4

46.3
12.6

47.8
11.2

1 Effective July 1976 includes a new financial group, banks and in­
surance companies. With this change the index includes 400 industrial
stocks (formerly 425), 20 transportation (formerly 15 rail), 40 public
utility (formerly 60), and 40 financial.
2 Based on trading for a 5 Vi-hour day.
3 Margin credit includes all credit extended to purchase or carry
stocks or related equity instruments and secured at least in part by stock.
Credit extended by brokers is end-of-month data for member firms of
the New York Stock Exchange; June data for banks are universe totals;
all other data for banks are estimates for all commercial banks based on
data from a sample of reporting banks.
In addition to assigning a current loan value to margin stock generally,
Regulations T and U permit special loan values for convertible bonds
and stock acquired through exercise of subscription rights.
4 A distribution of this total by equity class is shown below.




9,470

5 Nonmargin stocks are those not listed on a national securities ex­
change and not included on the Federal Reserve System’s list of over-thecounter margin stocks. At banks, loans to purchase or carry nonmargin
stocks are unregulated; at brokers, such stocks have no loan value.
6 Free credit balances are in accounts with no unfulfilled commitments
to the brokers and are subject to withdrawal by customers on demand.
7 Each customer’s equity in his collateral (market value of collateral
less net debit balance) is expressed as a percentage of current collateral
values.
8 Balances that may be used by customers as the margin deposit re­
quired for additional purchases. Balances may arise as transfers based
on loan values of other collateral in the customer’s margin account or
deposits of cash (usually sales proceeds) occur.
N ote.—For table on “ Margin Requirements” see p. A-10, Table 1.161.

Thrift Institutions

A29

1.38 SAVINGS INSTITUTIONS Selected Assets and Liabilities
Millions of dollars, end of period
1974

1975

1976

1976
Oct.

Account

Nov.

1977
Dec.

Jan.

Feb.

Mar.

Apr.

May

June

Savings and loan associations
1 Assets.................................... 295,545 338,233 391,999 385,013 389,173 391,999 398,299 403,591 409,357 414,436 421,865 427,076
2 Mortgages............................. 249,301 278,590 323,130 315,742 319,273 323,130 326,056 329,086 333,703 338,984 344,631 350,777
3 Cash and investment
23,251 30,853 35,660 36,442 36,605 35,660 38,252 39,505 39,656 39,061 40,461 39,625
4 Other...................................... 22,993 28,790 33,209 32,829 33,295 33,209 33,991 35,000 35,998 36,391 36,773 36,674
5 Liabilities and net worth........ 295,545 338,233 391,999 385,013 389,173 391,999 398,299 403,591 409,357 414,436 421,865 427,076
6
7
8
9
10
11

Savings capital...................... 242,974 285,743 336,030 327,252 329,833 336,030 341,211 344,616 352,194 354,318 357,965 364,332
Borrowed money .................... 24,780 20,634 19,087 18,810 18,715 19,087 18,455 18,256 18,283 18,880 19,804 20,584
FHLBB.............................. 21,508 17,524 15,708 15,636 15,571 15,708 15,029 14,661 14,325 14,809 15,000 15,583
3,144
3,379
3,174
3,426
3,958
3,595
3,272
3,110
3,379
4,071
4,804
Other..................................
5,001
6,735
6,753
6,836
6,718
7,351
6,783
3,244
5,128
6,836
7,899
8,505
Loans in process...................
9,134
8,015
8,833 10,360 12,287
6,949
8,015 10,531 11,918
9,667 11,418
Other...................................... 6,105
9,532

12 Net worth2............................

18,442

19,779

22,031

21,685

21,954

22,031

22,248

22,518

22,696

22,979

23,304

23,494

13 M emo : Mortgage loan com­
mitments outstanding3..

7,454

10,673

14,828

15,319

15,467

14,828

15,079

16,796

19,304

21,242

22,274

22,001

Mutual savings banks
14 Assets...........................
15
16
17
18
19
20
21

109,550 121,056 134,702 132,455 133,361 134,812 135,906 137,307 138,901 139,496 140,593

Loans:
74,891
Mortgage.................
3,812
Other........................
Securities:
2,555
U.S. Govt.................
930
State and local government.
Corporate and other4....... 22,550
Cash....................................... 2,167
2,645
Other assets...........................

77,221
4,023

81,554
5,192

80,543
5,549

80,884
5,801

81,630
5,183

81,826
5,956

81,982
6,254

82,273
6,389

82,687
6,050

83,075
6,650

4,740
1,545
27,992
2,330
3,205

5,911
2.420
33,676
2,374
3,574

5,796
2,429
32,793
1,695
3,649

5,836
2,466
33,074
1,668
3,632

5,840
2,417
33,793
2,355
3,593

5,917
2,295
34,475
1,800
3,637

6,096
2,366
35,088
1,835
3,686

6,360
2,431
35,928
1,823
3,668

6,323
2,504
36,322
1,900
3,709

6,248
2,539
36,455
1,922
3,703

22 Liabilities............................... 109,550 121,056 134,702 132,455 133,361 134,812 135,906 137,307 138,901 139,496 140,593
23 Deposits .................................
24 Regular:5...........................
25
Ordinary savings............
26
Time and other..............
27 Other..................................
28 Other liabilities.....................
29 General reserve accounts----

98,701

109,873 122,802 120,360 120,971

122,877 123,864 124,728 126,687 126,938 127,791

98,221 109,291 121,874 119,346 120,125 121,961 122,874 123,721 125,624 125,731 126,587
64,286 69,653 74,483 73,610 73,857 74,535 74,621 75,038 76,260 76,336 76,384
33,935 39,639 47,391 45,736 46,268 47,426 48,253 48,683 49,364 49,395 50,203
1,014
846
582
928
916
989
1,007
1,063
480
1,204
1,207
2,853
3,140
3,376
2,884
2,755
2,940
3,368
2,939
2,888
3,230
3,381
8,955
9,015
9,052
9,102
7,961
8,428
9,047
9,211
9,275
9,329
9,422

30 M em o : M o rtg a g e lo a n c o m ­

mitments outstanding6. .

2,040

1,803

2,439

2,548

2,553

2,439

2,584

2,840

3,161

3,287

3,521

Life insurance companies
31 Assets.....................
32
33
34
35
36
37
38
39
40
41
42

Securities:

Government........

United States7
State and local
Foreign®.........
Business ..............
Bonds..............
Stocks..............
Mortgages..............
Real estate.............
Policy loans............
Other assets...........

263,349 289,304 321,552 314,845 317,499 321,552 323,407 325,094 326,753 328,786 331,028
10,900

3,372
3,667
3,861

13,758

4,736
4,508
4,514

17,942

5,368
5,594
6,980

18,019

5,821
5,463
6,735

18,390

5,992
5,533
6,865

17,942

5,368
5,594
6,980

18,198

5,537
5,657
7,004

18,443

5,592
5,709
7,142

18,470

5,546
5,732
7,192

18,500

5,544
5,758
7,198

18,475

5,396
5,797
7,282

119,637 135,317 157,246 153,291 154,382 157,246 159,213 160,463 161,214 162,816 164,126

97,717 107,256 122,984 120,610 121,763 122,984 125,910 127,603 128,596 130,057 131,568
21,920 28,061 34,262 32,681 32,619 34,262 33,303 32,860 32,618 32,759 32,558
86,234
8,331
22,862
15,385

89,167
9,621
24,467
16,971

91,552
10,476
25,834
18,502

90,293
10,231
25,594
17,417

90,794
10,244
25,695
17,994

91,552
10,476
25,834
18,502

91,566
10,556
25,911
17,963

91,585
10,629
26,034
17,940

91,786
10,738
26,207
18,338

92,200
10,802
26,364
18,104

92,358
10,822
26,500
18,747

Credit unions
43 Total assets/liabilities and
capital...........................
44 Federal.............................
45 State................................

31,948
16,715
15,233

38,037
20,209
17,828

44,897
24,164
20,733

43,415
23,283
20,132

44,089
23,668
20,421

44,835
24,164
20,671

44,906
24,188
20,718

45,798
24,756
21,042

47,111
25,596
21,515

47,348
25,697
21,651

48,322
26,259
22,063

46 Loans outstanding................
47 Federal.............................
48 State.................................

24,432

28,169

34,033

33,275

33,732

18,022
16,011

17,522
15,753

34,188

14,869
13,300

17,786
15,946

34,293

34,549

35,411

12,730
11,702

18,275
16,274

18,776
16,635

36,019

36,936

49 Savings .................................
50 Federal (shares)...............
51 State (shares and deposits)

27,518

33,013

39,264
2 1 , 149

37,854

38,281

39,981

41,161

14,370
13,148

For notes see bottom o f page A30.




17,530
15,483

18,115

20,358
17,496

20,597
17,684

18,202
16,091

38,968

20,980
17,988

18,081
16,107
39,344

21,165
18,179

21,559
18,442

22,346
18,815

19,050
16,969

41,394

22,524
18,870

49,479
27,017
22,462
38,134

19,583
17,353

20,303
17,831

42,125

43,196

22,955
19,170

23,608
19,588

A30
1.39

Domestic Financial Statistics □ August 1977
F E D E R A L F IS C A L A N D F IN A N C IN G O P E R A T IO N S
Millions o f dollars

Fiscal year
Type of account or operation

1975

1
2
3
4
5

U.S. Budget
Receipts..........................................
Outlays 1,2 .....................................
Surplus, or deficit ( —) ................
Tryst funds.................................
Federal fund^ 3...........................

7,419
-52,526

6
7

Off-budget entities surplus, or
deficit ( —)
Federal Financing Bank outlays..
Other i,4 ........................................

U.Si. Budget plus off-budget, in­
cluding Federal Financing Bank
Surplus, or deficit ( —) ...................
Financed by:
9
Borrowing from the public 2. . .
10
Cash aqd monetary assets (de­
crease, or increase ( —))___
11
O th ers........................................
8

12
13
14
15

M emo items:
Treasury operating balance (level, end
of period)... ...............................
F.R. Banks.....................................
Tax and Joan accounts..................
Other demand accounts 6..............

1976

280,997
326,105

300,005
366,466

-4 5 ,1 0 8

-6 6 ,4 6 1

Calendar year

Transition
quarter
(JulySept.
1976)

1976
HI

H2

81,773
94,746

160,552
181,369

-1 2 ,9 7 3

157,961
193,719

-2 0 ,8 1 6

-3 5 ,7 5 8

2,409
-68,870

-1 ,9 5 2
-11,021

5,503
-26,320

-6 ,3 8 9
-1 ,6 5 2

-5,915
-1,355

-2,575
793

- 53,149

-73,731

50,867

82,922

-3 2 0
2,602

7,591

5,773
1,475
343

1977
HI

190,238
200,310

-1 0 ,0 7 2

-4,621
-31,137

7,332
-17,405

-3,2 2 2
-1 ,1 1 9

-5 ,1 7 6
3,809

-1 4 ,7 5 5

-2 5 ,1 5 8

18,027

33,561

-7,7 9 6
-1,3 9 6

-2,8 9 9
-373

14.836

17,418

11,975
2,854
7

13,299
4,119

1 Outlay totals reflect the reclassification of the Export-Import Bank
from off-budget status to unified budget status.
2 Export-Import Bank certificates of beneficial interest (effective July
1, 1975) and loans to the Private Export Funding Corp. (PEFCO), a wholly
owned subsidiary of the Export-Import Bank are treated as debt rather
than asset sales.
3 Half years calculated as a residual of total surplus/deficit and trust
fund surplus/deficit.
4 Includes Pension Benefit Guaranty Corp., Postal Service Fund, Rural
Electrification and Telephone Revolving Fund, Ryral Telephone Bank,
and Housing for the Elderly or Handicapped Fund.

1977
Apr.

May

June

40,016
35,547

27,672
33,715

4,469

- 6 ,0 4 3

43,075
32,881
10,194

647
3,822

7,542
-13,584

-2 ,0 7 5
-2 ,0 8 6

581
-1 1 4

-299
245

-4 5
-2 6 2

-37,125

-14,233

4,936

-6 ,0 9 7

9,888

35,457

16,480

1,206

-2,871

518

-7,9 0 9
-495

2,153
-485

-4 ,6 6 6
2,420

-9 ,4 2 2
3,280

11,268

-9,3 4 5
-1,061

14,836

11,670

77,311

17,763

6,992
5,836
1,156

16,246

11,975
2,854
7

10,393
1,277

65,372
11,940

13,628
4,135

-2 ,3 0 0

1,829
8,365

15,183
1,063

5 Includes: Public debt accrued interest payable to the public; deposit
funds; miscellaneous liability (including checks outstanding) and asset
accounts; seignorage; increment on gold; net gain/loss for U.S. currency
valuation adjustment; net gain/loss for IMF valuation adjustment.
6 Excludes the gold balance but includes deposits in certain commercial
depositories that have been converted from a time deposit to a demand
deposit basis to permit greater flexibility in Treasury cash management.
Source.—“ Monthly Treasury Statement of Receipts and Outlays of
the U.S. Government,” Treasury Bulletin, and U.S. Budget, Fiscal Year
1978.

NOTES TO TABLE 1.38
1 Stock of the Federal Home Loan Bank Board (FHLBB) is included
in “other assets.”
2 Includes net undistributed income, which is accrued by most, but not
all, associations.
3 Excludes figures for loans in process, which are shown as a liability.
4 Includes securities of foreign governments and international organiza­
tions and nonguaranteed issues of U.S. Govt, agencies.
5 Excludes checking, club, and school accounts.
6 Commitments outstanding (including loans in process) of banks in
New York State as reported to the Savings Banks Assn. of the State of
New York.
7 Direct and guaranteed obligations. Excludes Federal agency issues
not guaranteed, which are shown in this table under “business” securities.
8 Issues of foreign governments and their subdivisions and bonds of the
International Bank for Reconstruction and Development.
Note.—Savings and loan assQciations: Estimates by the FHLBB for
all associations in the United States. Data are based on monthly reports
of Federally insured associations and annual reports of other associations.




Even when revised, data for current and preceding year are subject to
further revision.
Mutual savings banks: Estimates of National Association of Mutual
Savings Banks for all savings banks in the United States. Data are re­
ported on a gross-of-valuation-reserves basis.
Life insurance companies: Estimates of the Institute of Life Insurance
for all life insurance companies in the United States. Annual figures are
annual-statement asset values, with bonds carried on an amortized basis
and stocks at year-end market value. Adjustments for interest due and
accrued and for differences between market and book values are not
made on each item separately but are included, in total, in “other assets.”
Credit unions: Estimates by the National Credit Union Administration
for a group of Federal and State-chartered credit unions that account for
about 30 per cent of credit union assets. Figures are preliminary and
revised annually to incorporate recent benchmark data.

Federal Finance
1.40

A31

U.S. B U D G E T R E C E IP T S A N D O U T L A Y S
Millions o f dollars

Fiscal year
Source or type

1975

1976

Transition
quarter
(JulySept.
1976)

Calendar year
1977

1976
HI

H2

HI

1977
Apr.

May

June

Receipts
1 All sources 1........................................

280,997

300,005

81,773

160,552

157,961

190,238

40,016

27,672

43,075

2 Individual income taxes, net ..............
3
Withheld.........................................
4
Presidential Election Campaign
Fund.......................................
5
Non withheld...................................
6
Refunds 1........................................
7 Corporation income taxes:
8
Gross receipts.................................
9
Refunds..........................................
10 Social insurance taxes and contribu­
tions, net .....................................
11
Payroll employment taxes and
contributions 2 .......................
12
Self-employment taxes and
contributions 2.......................
13
Unemployment insurance..............
14
Other net receipts 3.......................

122,386

131,603

38,801

65,767

68,023

78,775

73,303

18,660

9,413

32,949

63,859

75,094

11,797

12,993

17,949

32
34,296
34,013

34
35,528
27,367

1
6,809
958

33
27,879
26,004

1
8,426
1,356

28
32,967
27,521

7
14,581
7,725

6
2,092
5,678

4
6,272
501

45,747
5,125

46,783
5,374

9,808
1,348

27,973
2,639

20,706
2,886

37,133
2,324

8,461
488

1,465
369

14,758
379

15
16
17
18

Excise taxes........................................
Customs..............................................
Estate and gift...................................
Miscellaneous receipts 4...................

122,071

123,408

12,175

86,441

92,714

25,760

51,828

47,596

58,098

10,703

14,203

7,696

71,789

76,391

21,534

40,947

AO,All

45,241

6,670

9,912

6,709

3,417
6,771
4,466

3,518
8,054
4,752

269
2,698
1,259

3,250
5,193
2,438

286
4,379
2,504

3,688
6,576
2,594

2,328
1,296
409

248
3,582
461

335
228
424

16,551
3,676
4,611
6,711

16,963
4,074
5,216
8,026

4,473
1,212
1,455
1,612

8,204
2,147
2,643
4,630

8,910
2,361
2,943
3,236

8,431
2,518
4,333
3,269

1,392
393
376
517

1,485
A ll

501
548

1,530
504
437
581

Outlays
19 AH types 1, 5 .......................................

326,105

366,466

94,746

181,369

193,719

200,310

35,547

33,715

32,881

22,518
1,997

44,052
2,668

45,002
3,028

48,721
2,522

7,976
548

8,555
284

8,404
439

20 National defense................................
21 International affairs 5 .......................
22 General science, space, and
technology..................................
23 Natural resources, environment,
and energy..................................
24 Agriculture.........................................

86,585
5,862
3,989

4,370

1,161

1,708

2,377

2,108

356

350

362

9,537
1,660

11,282
2,502

3,324
584

6,900
A ll

7,206
2,019

6,855
2,628

1,077
737

1,239
138

1,421
256

25 Commerce and transportation..........
26 Community and regional
development...............................
27 Education, training, employment,
and social services.....................
28 H ealth................................................
29 Income security 1...............................

16,010

17,248

4,700

5,766

9,643

5,945

1,316

1,586

1,419

1,530

2,411

3,192

3,149

579

525

670

9,083
19,329
65,456

9,775
18,654
70,745

1,604
3,241
11,632

1,628
3,317
11,568

1,772
3,398
11,129

4,431

89,996
5,067

5,300

15,248
27,647
108,605

18,167
33,448
127,406

5,013
8,720
32,796

9,116
17,008
65,336

Veterans benefits and services..........
16,597
2,942
Law enforcement and justice............
3,089
General government..........................
Revenue sharing and general
purpose fiscal assistance............
7,005
34 Interest 6.............................................
30,974
35 Undistributed offsetting receipts 6, 7 -14,075

18,432
3,320
2,927

3,962
859
878

9,450
1,784
870

8,542
1,839
1,734

9,382
1,783
1,587

1,684
305
113

1,625
285
488

1,225
316
324

7,119
34,589
-14,704

2,024
7,246
-2,567

3,664
18,560
-8 ,3 4 0

4,729
18,409
-7,869

4,333
18,927
-6 ,8 0 3

2,103
2,751
-475

45
2,690
-609

47
5,908
-4,211

30
31
32
33

1 Effective June 1977, earned income credit payments in excess of an
individual’s tax liability, formerly treated as outlays, are classified as in­
come tax refunds.
2 Old-age, disability and hospital insurance, and Railroad Retirement
accounts.
3 Supplementary medical insurance premiums, Federal employee re­
tirement contributions and Civil Service retirement and disability fund.
4 Deposits of earnings by F.R. Banks and other miscellaneous receipts.
5 Outlay totals reflect the reclassification of the Export-Import Bank
from off-budget status to unified budget status. Export-Import Bank




certificates of beneficial interest (effective July 1, 1975) and loans to the
Private Export Funding Corp. (PEFCO), a wholly owned subsidiary of
the Export-Import Bank, are treated as debt rather than asset sales.
6 Effective September 1976, “Interest” and “ Undistributed Offsetting
Receipts” reflect the accounting conversion for the interest on special
issues for U.S. Govt, accounts from an accrual basis to a cash basis.
7 Consists of interest received by trust funds, rents and royalties on
the Outer Continental Shelf, and U.S. Govt, contributions for em­
ployee retirement.

A32
1.41

Domestic Financial Statistics □ August 1977
FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION
Billions of dollars

Item

1974

1973
Dec. 31

June 30

1975

Dec. 31

June 30

1976

Dec. 31

June 30

Sept. 30

1977
Dec. 31

Mar. 31

1 Federal debt outstanding.....................

480.7

486.2

504.0

544.1

587.6

631.9

2646.4

665.5

680.1

2 Public debt securities ...........................
3 Held by public.................................
4 Held by agencies.............................

469.1

474.2

339.4
129.6

336.0
138.2

492.7

533.7

387.9
145.3

576.6

620.4

634.7

437.3
139.3

470.8
149.6

488.6
146.1

653.5

669.2

5 Agency securities ..................................
6 Held by public.................................
7 Held by agencies.............................

11.6

12.0

10.9

10.9

11.5

11.6

12.0

9.5
2.0

2 9.7
1.9

10.0
1.9

10.9

351.5
141.2
11.3

10.0
2.0

9.6
2.0

9.3
2.0

8.9
2.0

9.0
1.9

506.4
147.1

524.3
144.9
9.1
1.8

8 Debt subject to statutory limit............

470.8

476.0

493.0

534.2

577.8

621.6

635.8

654.7

670.3

9 Public debt securities...........................
10 Other debt1..........................................

468.4
2.4

473.6
2.4

490.5
2.4

532.6
1.6

576.0
1.7

619.8
1.7

634.1
1.7

652.9
1.7

668.6
1.7

11 Memo: Statutory debt limit...............

475.7

495.0

495.0

577.0

595.0

636.0

636.0

682.0

682.0

1 Includes guaranteed debt of Govt, agencies, specified participation
certificates, notes to international lending organizations, and District of
Columbia stadium bonds.
2 Gross Federal debt and Agency debt held by the public increased

$0.5 billion due to a retroactive reclassification of the Export-Import Bank
certificates of beneficial interest from loan asset sales to debt, effective
July 1, 1975.
N ote.—Data from Treasury Bulletin (U.S. Treasury Dept.).

1.42 GROSS PUBLIC DEBT OF U.S. TREASURY Types and Ownership
Billions of dollars, end of period

Type and holder

1 Total gross public debt1.......................................
By type:

1973

1974

469.9

492.7

467.8

491.6

575.7

270.2

282.9

363.2

3
4
5
6
7
8
9
10
11

Bills................................................................
N otes.............................................................
Bonds.............................................................
Nonmarketable 2................................................
Convertible bonds 3.......................................
Foreign issues4..............................................
Savings bonds and notes..............................
Govt, account series5...................................

197.6

12
13

By holder:6
U.S. Govt, agencies and trust funds...............
F.R. Banks........................................................

129.6
78.5

141.2
80.5

14
15
16
17
18
19

Private investors................................................
Commercial banks........................................
Mutual savings banks...................................
Insurance companies.....................................
Other corporations.......................................
State and local governments........................

261.7
60.3
2.9
6.4
10.9
29.2

20
21

Individuals:
Savings bonds............................................
Other securities..........................................

22
23

Foreign and international7...........................
Other miscellaneous investors8....................

M arketable ........................................................

Mar.

Apr.

May

June

July

653.5

669.2

671.0

672.1

674.4

673.9

652.5

668.2

671.0

673.4

671.4

421.3

435.4

668.5

434.1

r431.5

162.0
230.7
41.4

157.9
230.2
43.3

231.2

232.8

234.4

239.5

139.3
87.9

147.1
97.0

145.0
96.0

145.5
99.8

149.4

271.0
55.6
2.5
6.1
11.0
29.2

349.4
85.1
4.5
9.3
20.2
33.8

409.5
102.5
5.5
12.3
25.5
41.6

428.3
106.0
5.2
12.2
26.0
43.4

425.7
103.5
5.2
12.1
26.3
46.9

425.3
102.0
• 5.2
12.3
25.3
47.8

60.3
16.9

63.4
21.5

67.3
24.0

72.0
28.8

72.8
29.1

73.2
r29.0

73.7
29.1

55.5
19.3

58.4
23.2

66.5
38.6

78.1
43.2

84.7
48.9

85.9
43.6

86.0
47.8

2.3
26.0
60.8
108.0

119.7
129.8
33.4

576.6

1977
1976

164.3
229.6
41.5

107.8
124.6
37.8

208.7

2.3
22.8
63.8
119.1

1 Includes $2.5 billion of non-interest-bearing debt (of which $611
million on July 31, 1977, was not subject to statutory debt limitations).
2 Includes (not shown separately): Securities issued to the Rural
Electrification Administration and to State and local governments, de­
positary bonds, retirement plan bonds, and individual retirement bonds.
3 These nonmarketable bonds, also known as Investment Series B
Bonds, may be exchanged (or converted) at the owner’s option for 1V4
per cent, 5-year marketable Treasury notes. Convertible bonds that have
been so exchanged are removed from this category and recorded in the
notes category above.
4 Nonmarketable certificates of indebtedness, notes, and bonds in the
Treasury foreign series and foreign-currency series.
5 Held only by U.S. Govt, agencies and trust funds.




1975

157.5
167.1
38.6

212.5

2.3
21.6
67.9
119.4

164.0
216.7
40.6
2.3
22.3
72.3
129.7

2.2
22.1
73.4
128.2

2.2
21.9
73.9
129.0

2.2
21.8
74.3
133.0

431.1

430.2

232.9

43.2

154.2
231.4
44.7

242.2

241.1

155.1

2.2
21.7
74.7
134.8

2.2
21.5
75.2
132.4

91A

6 Data for F.R. Banks and U.S. Govt, agencies and trust funds are
actual holdings; data for other groups are Treasury estimates.
7 Consists of the investments of foreign balances and international
accounts in the United States. Beginning with 1974, the figures exclude
non-interest-bearing notes issued to the International Monetary Fund.
8 Includes savings and loan associations, nonprofit institutions, cor­
porate pension trust funds, dealers and brokers, certain Govt, deposit
accounts, and Govt.-sponsored agencies.
N ote.—Gross public debt excludes guaranteed agency securities and,
beginning in July 1974, includes Federal Financing Bank security issues.
Data by type of security from Monthly Statement o f the Public Debt o f
the United States, U.S. Treasury Dept.; data by holder from Treasury
Bulletin.

Federal Finance
1.43

U .S. G O V E R N M E N T M A R K E T A B L E S E C U R IT IE S

A33

O w nership, by m atu rity

Par value; millions o f dollars, end o f period

Type of holder

1975

1977

1976
May

1975

1977

1976

June

May

All maturities

June

1 to 5 years

1 All holders...............................................................................

363,191

421,276

431,447

431,149

112,270

141,132

143,011

144,503

2 U.S. Govt, agencies and trust funds.....................................
3 F. R. Banks.............................................................................

19,397
87,934

16,485
96,971

15,434
97,394

15,425
102,239

7,058
30,518

6,141
31,249

5,949
30,239

5,949
31,554

4 Private investors....................................................................... 255,860
5 Commercial banks..............................................................
64,398
6 Mutual savings banks..........................................................
3,300
7 Insurance companies...........................................................
7,565
8 Nonfinancial corporations..................................................
9,365
9 Savings and loan associations............................................
2,793
10 State and local governments..............................................
9,285
11 All others............................................................................. 159,154

307,820

318,619

313,485

74,694

103,742

106,823

107,000

78,262
4,072
10,284
14,193
4,576
12,252
184,182

77,048
4,450
10,158
13,607
5,170
16,201
191,985

29,629
1,524
2,359
1,967
1,558
1,761
35,894

79,059
4,390
11,372
12,487
4,827
14,522
186,828

Total, within 1 year

40,005
2,010
3,885
2,618
2,360
2,543
50,321

41,129
2,093
4,088
3,120
2,662
4,573
49,157

41,725
2,118
4,274
2,972
2,588
3,826
49,497

5 to 10 years

12 All holders................................................................................

199,692

211,035

213,662

211,955

26,436

43,045

45,972

45,955

13 U.S. Govt, agencies and trust funds.....................................
14 F. R. Banks.............................................................................

2,769
46,845

2,012
51,569

1,821
49,630

1,811
52,792

3,283
6,463

2,879
9,148

2,141
11,172

2,141
11,371

15 Private investors.......................................................................
16 Commercial banks..............................................................
17 Mutual savings banks.........................................................
18 Insurance companies...........................................................
19 Nonfinancial corporations..................................................
20 Savings and loan associations............................................
21
State and local governments..............................................
22 All others.............................................................................

150,078

157,454

162,211

157,353

16,690

31,018

32,658

32,443

29,875
983
2,024
7,105
914
5,288
103,889

31,213
1,214
2,191
11,009
1,984
6,622
103,220

28,622
1,407
1,720
9,861
2,297
8,747
109,556

29,633
1,319
1,705
9,064
2,030
7,530
106,071

Bills, within 1 year
23 All holders................................................................................ 157,483

6,278
567
2,546
370
155
1,465
19,637

6,576
654
2,791
380
140
1,253
20,865

7,063
662
2,884
262
139
1,345
20,086

10 to 20 years

I

163,992

157,931

155,064

14,264

11,865

11,656

11,607

270
42,388

4,233
1,507

3,102
1,363

3,102
1,374

3,102
1,413

112,406

8,524

7,400

7,180

7,092

24 U.S. Govt, agencies and trust funds.....................................
25 F. R. Banks.............................................................................

207
38,018

449
41,279

280
40,054

26 Private investors.......................................................................
27 Commercial banks..............................................................
28
29 Insurance companies...........................................................
30 Nonfinancial corporations..................................................
31 Savings and loan associations............................................
32 State and local governments..............................................
33 All others.............................................................................

119,258

122,264

117,597

17,481
554
1,513
5,829
518
4,566
88,797

4,071
448
1,592
175
216
782
9,405

17,303
454
1,463
9,939
1,266
5,556
86,282

11,410
445
728
8,178
1,268
6,916
88,651

11,669
397
732
7,576
1,013
5,886
85,133

552
232
1,154
61
82
896
5,546

Other, within 1 year

339
139
1,114
142
64
718
4,884

301
134
1,076
159
56
663
4,790

314
135
1,577
146
56
634
4,230

Over 20 years

34 All holders................................................................................

42,209

47,043

55,731

56,891

10,530

14,200

17,146

17,129

35 U.S. Govt, agencies and trust funds.....................................
36 F. R. Banks.............................................................................

2,562
8,827

1,563
10,290

1,541
9,576

1,541
10,404

2,053
2,601

2,350
3,642

2,421
4,979

2,421
5,110

37 Private investors .......................................................................
38 Commercial banks..............................................................
39
40 Insurance companies...........................................................
41 Nonfinancial corporations..................................................
42 Savings and loan associations............................................
43 State and local governments..............................................
44 All others.............................................................................

30,820

35,190

44,614

44,947

5,876

8,208
427

9,746

9,598

12,394
429
511
1,276
396
722
15,092

Note.—Direct public issues only. Based on Treasury Survey of Owner­
ship from Treasury Bulletin (U.S. Treasury Dept.).
Data complete for U.S. Govt, agencies and trust funds and F.R. Banks,
but data for other groups include only holdings of those institutions
that report. The following figures show, for each category, the number
and proportion reporting as of June 30, 1977; (1) 5,493 commercial




13,910
760
728
1,070
718
1,066
16,938

17,212
962
992
1,683
1,029
1,831
20,905

17,964
922
973
1,488
1,017
1,644
20,938

271
112
436
57
22
558
4,420

143
548
55
13
904
6,120

419
162
483
87
15
965
7,616

324
157
931
42
13
1,186
6,945

banks, 466 mutual savings banks, and 728 insurance companies, each
about 90 per cent; (2) 433 nonfinancial corporations and 486 savings
and loan assns., each about 50 per cent; and (3) 496 State and local
govts., about 40 per cent.
“All others,” a residual, includes holdings of all those not reporting
in the Treasury Survey, including investor groups not listed separately.

A34

Domestic Financial Statistics □ August 1977

1.44 U.S. GOVERNMENT SECURITIES DEALERS Transactions
Par value; averages of daily figures, in millions of dollars
1977
Item

1974

1975

1977, week ending Wednesday—

1976
May

Apr.

June

June 22 June 29

July 6

July 13

July 20

July 27

1 U.S. Govt, securities.............

3,579

6,027

10,449

13,597

10,306

8,683

7,445

'9,026

8,238

7,541

8,798

10,026

By maturity:
Bills....................................
Other within 1 year..........
1 5 years...........................
5-10 years..........................
Over 10 years....................

2,550
250
465
256
58

3,889
223
1,414
363
138

6,676
210
2,317
1,019
229

8,829
215
2,727
1,592
235

6,495
183
1,981
1,322
325

5,021
215
2,059
952
436

4,083
171
1,896
926
'370

'4,874
230
'2,301
'1,078
'544

5,023
277
1,505
697
735

4,940
141
1,261
688
511

5,579
220
1,979
698
322

6,874
192
2,019
648
293

By type of customer:
U.S. Govt, securities
dealers........................
8 U.S. Govt, securities
brokers.......................
9 Commercial banks............
10 All others1.........................

652

885

1,360

1,523

1,059

1,030

739

1,204

985

971

899

1,047

965
998
964

1,750
1,451
1,941

3,407
2,426
3,257

4,795
2,705
4,575

3,975
2,095
3,177

2,529
1,965
3,159

2,025
1,606
3,075

2,638
1,955
3,230

2,477
1,902
2,874

2,320
1,690
2,561

2,696
2,378
2,825

3,355
2,260
3,365

11 Federal agency securities. . . .

965

1,043

1,548

'2,008

1,786

2,138

'2,028

'2,348

2,276

1,355

1,697

1,404

2
3
4
5
6
7

1 Includes—among others—all other dealers and brokers in commodi­
Transactions are market purchases and sales of U.S. Govt, securities
ties and securities, foreign banking agencies, and the F.R. System.
dealers reporting to the F.R. Bank of New York. The figures exclude
allotments of, and exchanges for, new U.S. Govt, securities, redemptions
N ote.—Averages for transactions are based on number of trading days
of called or matured securities, or purchases or sales of securities under
repurchase, reverse repurchase (resale), or similar contracts.
in the period.

1.45 U.S. GOVERNMENT SECURITIES DEALERS Positions and Sources of Financing
Par value; averages of daily figures, in millions of dollars

Item

1974

1975

1977

1976
Apr.

May

1977, week ending Wednesday—
June

May 25

June 1

June 8

June 15 June 22 June 29

Positions2
1 U.S. Govt, securities.............

2,580

5,884

7,592

5,911

3,900

5,757

3,584

5,611

6,561

6,537

4,840

4,922

2
3
4
5
6

1,932
4,297
-6
265
886
265
302 i
300
88
136

6,290
188
515
402
198

5,215
253
211
101
131

3,786
198
-101
-70
87

5,538
15
82
23
99

3,647
230
-259
-111
76

4,930
134
332
77
139

6,280
27
174
-1 1
91

6,374
33
33
45
52

5,140
-1 2
-201
-5 4
-3 3

4,430
5
257
91
139

729

'687

539

1,027

481

1,632

1,660

1,513

1,023

1,621

Bills....................................
Other within 1 year..........
1-5 years............................
5-10 years..........................
Over 10 years....................

7 Federal agency securities. . . .

1,212

943

Sources of financing3
8 All sources.............................

3,977

6,666

8,715

10,301

9,351

10,791

9,338

8,585

12,098

12,043

10,489

8,781

Commercial banks:
New York City.................
Outside New York City...
Corporations1.......................
All other...............................

1,032
1,064
459
1,423

1,621
1,466
842
2,738

1,896
1,660
1,479
3,681

1,948
2,174
1,891
4,288

881
1,735
1,806
4,929

1,583
2,179
2,769
4,261

840
1,711
2,103
4,683

1,129
1,963
1,905
3,589

2,224
2,670
2,619
4,586

1,969
2,891
3,484
3,699

1,492
2,070
2,888
4,038

692
1,187
2,272
4,631

9
10
11
12

1 All business corporations except commercial banks and insurance
companies.
2 Net amounts (in terms of par values) of securities owned by nonbank
dealer firms and dealer departments of commercial banks on a commit­
ment, that is, trade-date basis, including any such securities that have been
sold under agreements to repurchase. The maturities of some repurchase
agreements are sufficiently long, however, to suggest that the securities
involved are not available for trading purposes. Securities owned, and
hence dealer positions, do not include securities purchased under agree­
ments to resell.
3 Total amounts outstanding of funds borrowed by nonbank dealer




firms and dealer departments of commercial banks against U.S. Govt,
and Federal agency securities (through both collateral loans and sales
under agreements to repurchase), plus internal funds used by bank dealer
departments to finance positions in such securities. Borrowings against
securities held under agreement to resell are excluded where the borrowing
contract and the agreement to resell are equal in amount and maturity,
that is, a matched agreement.
N ote.—Averages for positions are based on number of trading days
in the period; those for financing, on the number of calendar days in the
period.

Federal Finance

A35

1.46 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt Outstanding
Millions of dollars, end of period
Agency

1973

1974

1975

1976
Dec.

1977
Jan.

Feb.

Mar.

Apr.

May

*103,673

105,579

105,823

r22,307
*•22,413
22,168
*•22,419
1,086
1,077
1,220
1,113
1,095
8,580
8,615
8,557
7,188
8,574
581
Federal
Administration4...................
592
579
564Housing575

*•22,462
1,068
8,610
598

22,316

97,680 r103,308 *103,489 *102,961

1 Federal and Federally sponsored agencies...........

71,594

89,381

2 Federal agencies....................................................
3 Defense Department1......................................
4 Export-Import Bank2,3....................................

11,554

12,719

4,390
250
2,435

4,280
721
3,070
3

4,200
1,750
3,915
209

r4 ,120
2,998
4,935
104

3 3,845
2,998
4,985
109

3 3,845
2,998
5,005
212

*•3,845
2,998
5,070
216

*•3,803
2,998
5,155
230

3,803
2,856
5,175
233

60,040

76,662

78,634

80,889

81,321

80,654

83,117

83,507

21,890
1,551
28,167
12,653
8,589
3,589
220
3

18,900
1,550
29,963
15,000
9,254
3,655
310
2

16,811
1,150
30,565
17,127
10,494
4,330
410
2

16,805
1,350
30,394
17,304
10,631
4,425
410
2

16,587
957
30,143
17,304
10,556
4,695
410
2

81,260

15,362
1,784
23,002
10,062
6,932
2,695
200
3

4,474

17,154

28,711

29,848

500
220
895
3

4,595
1,500
310
1,840
209

5,208
2,748
410
3,110
104

7,000
566
1,134

10,750
1,768
4,613

6
7
8
9

Government National Mortgage Association
participation certificates5.........................
Postal Service6..................................................
Tennessee Valley Authority.............................
United States Railway Association6...............

10 Federally sponsored agencies.................................
11 Federal home loan banks.................................
12 Federal Home Loan Mortgage Corporation..
13 Federal National Mortgage Association........
14 Federal land banks...........................................
15 Federal intermediate credit banks...................
16 Banks for cooperatives.....................................
17 Student Loan Marketing Association7............
18 Other..................................................................
M emo items :
19 Federal Financing Bank debt6,8...........................
Lending to Federal and Federally sponsored
agencies:
20 Export-Import Bank3.......................................
21 Postal Service6..................................................
22 Student Loan Marketing Association7...........
23 Tennessee Valley Authority.............................
24 United States Railway Association6...............
25
26
27

Other lending:9
Farmers Home Administration.......................
Rural Electrification Administration..............
Other..................................................................

1,439
2,625
415

1,312
2,893
5
440

2,500
356

1 Consists of mortgages assumed by the Defense Department between
1957 and 1963 under family housing and homeowners assistance programs.
2 Includes participation certificates reclassified as debt beginning
Oct. 1, 1976.
3 Off-budget Aug. 17, 1974 through Sept. 30, 1976; on-budget thereafter.
4 Consists of debentures issued in payment of Federal Housing Ad­
ministration insurance claims. Once issued, these securities may be sold
privately on the securities market.
5 Certificates of participation issued prior to fiscal 1969 by the Govern­
ment National Mortgage Association acting as trustee for the Farmers
Home Administration; Department of Health, Education, and Welfare;
Department of Housing and Urban Development; Small Business Ad­
ministration; and the Veterans Administration.
6 Off-budget.




19,046

1,059
8,596
594

16,851
957
30,843
18,137
11,174
5,113
430
2

16,626
957
30,392
17,304
10,670
4,899
410
2

16,678
957
30,684
18,137
10,990
5,254
415
2

30,328

31,312

30,823

31,007

5,208
2,748
410
3,160
109

5,237
2,748
410
3,180
212

5,273
2,748
410
3,245
216

5,273
2,748
415
3,330
230

5,273
2,606
430
3,350
233

11,450
1,509
5,254

11,450
1,584
5,507

11,750
1,677
5,993

11,750
1,806
5,271

12,250
1,864
5,001

7 Unlike other Federally sponsored agencies, the Student Loan
Marketing Association may borrow from the Federal Financing Bank
(FFB) since its obligations are guaranteed by the Department of Health,
Education, and Welfare.
8 The FFB, which began operations in 1974, is authorized to purchase
or sell obligations issued, sold, or guaranteed by other Federal agencies.
Since FFB incurs debt solely for the purpose of lending to other agencies,
its debt is not included in the main portion of the table in order to avoid
double counting.
9 Includes FFB purchases of agency assets and guaranteed loans;
the latter contain loans guaranteed by numerous agencies with the
guarantees of any particular agency being generally small. The Farmers
Home Administration item consists exclusively of agency assets, while the
Rural Electrification Administration entry contains both agency assets
and guaranteed loans.

A36
1.47

Domestic Financial Statistics □ August 1977
N E W S E C U R IT Y ISSU E S

State an d L ocal G overnm ent and C o rp o rate

Millions o f dollars

Type of issue or issuer,
or use

1974

1975

1977

1976
Jan.

Feb.

Mar.

Apr.

May

June

State and local government
1 All issues, new and refunding 1..............................................

24,315

30,607

35,313

3,429

3,150

4,140

3,566

4,308

5,347

By type of issue:
General obligation.............................................................
Revenue..............................................................................
Housing Assistance Administration 2..............................
U.S. Govt, loans................................................................

13,563
10,212
461
79

16,020
14,511

18,040
17,140

1,867
1,552

1,624
1,518

1,812
2,323

1,701
1,862

2,032
2,272

2,265
3,079

76

133

10

8

5

3

4

3

By type of issuer:
6 State....................................................................................
7 Special district and statutory authority............................
8 Municipalities, counties, townships, school districts. . . .

4,784
8.638
10,817

7,438
12,441
10,660

7,054
15,304
12,845

468
1,786
1,166

441
1,335
1,367

705
1,818
1,612

769
1,388
1,407

875
1,836
1,593

1,476
1,873
1,994

23,508

29,495

32,108

3,084

3,019

3,209

'2,939

3,781

4,456

4,730
1,712
5,634
3,820
494
7,118

4,689
2,208
7,209
4,392
445
10,552

4,900
2,586
9,594
6,566
483
7,979

489
104
1,050
483
15
943

502
410
935
580
12
580

472
180
804
600
38
1,115

'249
119
703
658
42
1,168

497
508
1,235
438
130
973

807
218
1,202
816
23
1,390

2
3

4

5

10
11
12
13
14
15

By use of proceeds:
Education...........................................................................
Transportation...................................................................
Utilities and conservation..................................................
Social welfare.....................................................................
Industrial aid ......................................................................
Other purposes...................................................................

Corporate
16 All issues 3....................................

38,313

53,619

53,356

3,989

2,708

5,495

3,639

17 Bonds............................................

32,066

42,756

42,262

3,387

1,888

4,300

3,048

By type of offering:
18 Public........................................
19 Private placement.....................

25,903
6,160

32,583
10,172

26,453
15,808

2,786
601

'1,102
'786

2,610
1,690

1,961
1,087

By industry group:
Manufacturing.........................
Commercial and miscellaneous
Transportation.........................
Public utility.............................
Communication.......................
Real estate and financial..........

9,867
1,845
1,550
8,873
3,710
6,218

16,980
2,750
3,439
9,658
3,464
6,469

13,243
4,361
4,357
8,297
2,787
9,222

817
743
165
634
50
979

568
346
47
210
290
426

1,049
454
243
756
808
991

,128
180
129
602
324
684

26 Stocks...........................................

6,247

10,863

11,094

602

820

1,195

591

By type:
27 Preferred...................................
28 Common...................................

2,253
3,994

3,458
7,405

2,789
8,305

103
499

128
692

520
675

163
428

By industry group:
Manufacturing.........................
Commercial and miscellaneous
T ransportation.........................
Public utility.............................
Communication.......................
Real estate and financial..........

544
940
22
3,964
217
562

1.670
1,470
1
6,235
1,002
488

2,237
1,183
24
6,101
776
771

89
136

175
94

220
114

352

225
267
60

76
114
125
842

20
21
22
23
24
25

29
30
31
32
33
34

1 Par amounts of long-term issues based on date of sale.
2 Only bonds sold pursuant to the 1949 Housing Act, which are secured
by contract requiring the Housing Assistance Administration to make
annual contributions to the local authority,
3 Figures, which represent gross proceeds of issues maturing in more
than 1 year, sold for cash in the United States, are principal amount or
number of units multiplied by offering price. Excludes offerings of less




” 25*

38

172
10
75

than $100,000, secondary offerings, undefined or exempted issues as
defined in the Securities Act of 1933, employee stock plans, investment
companies other than closed-end, intracorporate transactions, and sales to
foreigners.
Sources.—State and local government securities, Securities Industry
Association; corporate securities, Securities and Exchange Commission.

Corporate Finance
1.48

C O R P O R A T E S E C U R IT IE S
Millions of dollars

A37

N e t C hange in A m ounts O utstanding

1975
Source of change, or industry

1974

1975

1976

1976
Q2

Q3

Q4

Ql

Q2

Q3

Q4

All issues1
1 New issues.............................................................. 39,344
2 Retirements............................................................ 9,935
3 Net change.............................................................. 29,399

53,255
10,991
42,263

53,123
12,184
40,939

15,602
3,211
12,390

9,079
2,576
6,503

13,363
3,116
10,247

13,671
2,315
11,356

14,229
3,668
10,561

11,385
2,478
8,907

13,838
3,723
10,115

Bonds and notes
4 New issues.............................................................. 31,354
5 Retirements............................................................
6,255
6 Net change: Total................... .............................. 25,098

40,468
8,583
31,886

38,994
9,109
29,884

11,460
2,336
9,124

6,654
2,111
4,543

9,595
2,549
7,047

9,404
1,403
8,001

10,244
3,159
7,084

8,701
1,826
6,875

10,645
2,721
7,924

By industry:
Manufacturing................................................
Commercial and other2.....................................
Transportation, including railroad...................
Public utility.......................................................
Communication..................................................
Real estate and financial...................................

7,404
1,116
341
7,308
3,499
5,428

13,219
1,605
2,165
7,236
2,980
4,682

8,978
2,259
3,078
6,829
1,687
7,054

4,574
483
429
1,977
810
852

1,442
221
147
1,395
472
866

2,069
528
1,588
1,211
429
1,222

2,966
203
985
1,820
498
1,530

1,529
726
488
1,260
953
2,128

1,551
610
1,092
2,109
335
1,178

2,932
720
513
1,640
-9 9
2,218

Common and preferred stock
13 New issues.............................................................
14 Retirements............................................................
15 Net change: Total..................................................

7,980
3,678
4,302

12,787
2,408
10,377

14,129
3,075
11,055

4,142
875
3,266

2,425
465
1,960

3,768
567
3,200

4,267
912
3,355

3,985
509
3,477

2,684
652
2,032

3,193
1,002
2,191

By industry:
Manufacturing....................................................
Commercial and other2.....................................
Transportation, including railroad...................
Public utility.......................................................
Communication..................................................
Real estate and financial...................................

17
-1 3 5
-2 0
3,834
398
207

1,607
1,137
65
6,015
1,084
468

2,634
762
96
6,171
854
538

500
490
7
1,866
359
43

412
108
53
1,043
97
247

433
462
4
1,537
604
160

838
88
5
2,174
47
203

1,120
318
25
1,300
735
-2 1

744
117
17
932
19
203

-6 8
239
49
1,765
53
153

7
8
9
10
11
12

16
17
18
19
20
21

1 Excludes issues of investment companies.
2 Extractive and commercial and miscellaneous companies.
Note.—Securities and Exchange Commission estimates of cash trans­
actions only, as published in the Commission’s Statistical Bulletin.

1.49 OPEN-END INVESTMENT COMPANIES

New issues and retirements exclude foreign sales and include sales of
securities held by affiliated companies, special offerings to employees,
new stock issues and cash proceeds connected with conversions of bonds
into stocks. Retirements, defined in the same way, include securities
retired with internal funds or with proceeds of issues for that purpose.

Net Sales and Asset Position

Millions of dollars
1976
Item

1975

1976

Dec.

1977
Jan.

Feb.

Mar.

Apr.

May

June

INVESTMENT COMPANIES
excluding money market funds
1
2
3

Sales of own shares1........................................
Redemptions of own shares2..........................
Net sales...........................................................

3,302
3,686
-3 8 4

4,226
6,802
2,496

661
628
33

655
628
141

423
463
-4 0

463
553
-9 0

558
468
63

421
531
-1 1 0

601
510
91

4
5
6

Assets3..............................................................
Cash position4..............................................

42,179
3,748
38,431

47,537
2,747
44,790

47,537
2,747
44,790

45,760
2,958
42,802

45,040
3,260
41,780

44,516
3,474
41,042

44,862
2,776
42,086

44,403
2,859
41,544

46,217
2,901
43,316

1 Includes reinvestment of investment income dividends. Excludes
reinvestment of capital gains distributions and share issue of conversions
from one fund to another in the same group.
2 Excludes share redemption resulting from conversions from one fund
to another in the same group.
3 Market value at end of period, less current liabilities.




4 Also includes all U.S. Govt, securities and other short-term debt
securities.
N ote.—Investment Company Institute data based on reports of mem­
bers, which comprise substantially all open-end investment companies
registered with the Securities and Exchange Commission. Data reflect
newly formed companies after their initial offering of securities.

A38

Domestic Financial Statistics □ August 1977

1.50 CORPORATE PROFITS AND THEIR DISTRIBUTION
Billions of dollars; quarterly data are at seasonally adjusted annual rates.

Account

1974r

1975 r

1975 r

1977 r

1976r

1976r

Q3

Q4

Ql

Q2

Q3

Q4

Ql

126.9

123.5

156.9

137.7

141.0

153.5

159.2

159.9

154.8

161.7

52.4
74.5

50.2
73.3

64.7
92.2

56.3
81.4

57.9
83.1

63.1
90.4

66.1
93.1

65.9
94.0

63.9
90.9

64.4
97.3

5 Undistributed profits...............................................

31.0
4 3.5

32.4
40.9

35.8
56.4

32.9
48.5

32.5
50.6

33.6
56.8

35.0
58.1

36.0
58.0

38.4
52.5

38.4
58.9

6 Capital consumption allowances.............................

81.6
125.1

89.5
130.4

97.2
153.6

90.6
139.1

92.2
142.8

94.1
150.9

95.9
154.0

98.2
156.2

100.4
152.9

102.0
160.9

Source.—U.S. Dept, of Commerce, Survey o f Current Business.

1.51 NONFINANCIAL CORPORATIONS Current Assets and Liabilities
Billions of dollars, end of period

Account

1971

1972

1974

1973

1975

1976

1977

Q4

Ql

Q2

Q3

Q4

Ql
845.3

1 Current assets.........................................................

529.4

574.4

643.2

712.2

731.6

753.5

775.4

791.8

816.8

Cash....................................................................

53.3
11.0

57.5
10.2

61.6
11.0

62.7
11.7

68.1
19.4

70.8
23.3

71.1
23.9

77.0
26.4

221.1

68.4
21.7

243.4

269.6

310.9

321.8

328.5

2
3
4
5
6
7
8

Notes and accounts receivable ............................

U.S. Govt.1....................................................
Other...............................................................
Inventories..........................................................

3.5
217.6
200.4
43.8

3.4
240.0
215.2
48.1

3.5
266.1
246.7
54.4

293.2

298.2

3.5
289.7
288.0
56.6

3.6
294.6
285.8
60.0

3.6
307.3
288.8
63.6

3.7
318.1
295.6
63.9

4.3
324.2
302.1
66.3

328.2

4.3
323.9
315.4
69.8

75.0
27.3
346.6

4.7
342.0
322.1
74.3

9

326.0

352.2

401.0

450.6

457.5

465.9

475.9

484.1

499.9

516.6

10
11
12
13
14

220.5

234.4

265.9

4.3
261.6
18.1
117.0

292.7

5.2
287.5
23.2
134.8

288.0

6.4
281.6
20.7
148.8

286.9

6.4
280.5
23.9
155.0

293.8

6.8
287.0
22.0
160.1

291.7

7.0
284.7
24.9
167.5

302.9

7.0
295.9
26.8
170.2

309.0

242.3

261.5

274.1

287.6

299.5

307.7

316.9

U.S. Govt.1....................................................
Other...............................................................
Accrued Federal income taxes.........................

4.9
215.6
13.1
92.4

4.0
230.4
15.1
102.6

15 Net working capital...............................................

203.6

221.3

6.8
302.2
28.6
179.0
328.7

1 Receivables from, and payables to, the U.S. Govt, exclude amounts
Source.—Securities and Exchange Commission estimates published
offset against each other on corporations’ books.
in the Commission’s Statistical Bulletin.

1.52 BUSINESS EXPENDITURES on New Plant and Equipment
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1975
Industry

1975

1977

1976

1976
Q4

Ql

Q2

Q3

Q4

Ql

Q2

Q3 2

1 All industries..........................................................

112.75

120.82

111.80

114.72

118.12

122.55

125.22

130.16

134.46

136.91

Manufacturing
2 Durable goods industries. . . . . . .........................
3 Nondurable goods industries............................

21.88
26.13

23.50
29.22

21.07
25.75

21.63
27.58

22.54
28.09

24.59
30.20

25.50
28.93

26.30
30.13

26.42
32.20

28.30
33.46

4
5
6
7
8
9
10
11

Nonmanufacturing
Mining................................................................
Transportation:
Railroad..........................................................
Air...................................................................
Other...............................................................
Public utilities;
Electric............................................................
Gas and other................................................
Communication..................................................
Commercial and other1.....................................

3.80

3.98

3.82

3.83

3.83

4.21

4.13

4.24

4.42

4.54

2.56
1.87
3.03

2.35
1.31
3.56

2.39
1.65
3.56

2.08
1.18
3.29

2.64
1.44
4.16

2.69
1.12
3.44

2.63
1.41
3.49

2.71
1.62
2.96

2.69
1.52
2.39

2.37
1.94
2.43

16.99
3.14
12.76
20.61

18.90
3.47
12.93
20.87

17.92
3.00
12.22
20.44

18.56
3.36
12.54
20.68

18.82
3.03
12.62
20.94

18.22
3.45
13.64
20.99

19.49
3.96
14.30
21.36

1 Includes trade, service, construction, finance, and insurance.
2 Anticipated by business.
Note.—Estimates for corporate and noncorporate business, excluding




21.09
21.19
4.56
4.16
14.19 1 IQ U
22.67 ) jy •1O

21.58
4.14
Id.

agriculture; real estate operators; medical, legal, educational, and cultural
service; and nonprofit organizations.
Source.—U.S. Dept, of Commerce, Survey o f Current Business.

Corporate Finance
1.521

DOMESTIC FINANCE COMPANIES

A39

Assets and Liabilities

Billions of dollars, end of period

Account

1972

1973

1974

1975

1976

1977

Q4

Ql

Q2

Q3

Q4

Ql

Q2

38.6
44.7

39.2
47.5

40.7
50.4

ASSETS
1
2
3
4
5
6
7
8

Accounts receivable, gross
Consumer...........................................................
Business..............................................................
Total ................................................................
L ess: Reserves for unearned income and losses
Accounts receivable, n et.......................................
Cash and bank deposits........................................
Securities................................................................
All other.................................................................

9 Total assets.............................................................

31.9
27.4
59.3

35.4
32.3

36.1
37.2

36.0
39.3

35.7
41.2

37.6
42.4

73.3

75.3

36.7
42.4

67 .7

76.9

79.2

80.0

83.4

86.7

91.2

8.4
59.3
2.6
.8
10.6

9.0
64.2
3.0
.4
12.0

9.4
65.9
2.9
1.0
11.8

9.4
67.4
2.8
.8
12.5

9.8
69.4
2.7
.8
12.4

10.2
69.9
2.6
1.2
12.7

10.5
72.9
2.6
1.1
12.6

10.6
76.1
2.7
1.0
13.0

65.6

73.2

79.6

81.6

83.5

85.3

86.4

89.2

92.8

97.5

7.4
51.9
2.8
.9
10.0

11.1
80.1
2.5
1.2
13.7

LIABILITIES
10 Bank loans..............................................................
11 Commercial paper.................................................
Debt:
12 Short-term, n.e.c.................................................
13 Long-term, n.e.c.................................................
14 Other...................................................................

5.6
17.3

7.2
19.7

9.7
20.7

8.0
22.2

7.4
22.2

6.9
22.2

5.5
21.7

6.3
23.7

6.1
24.8

5.7
27.5

4.3
22.7
4.8

4.6
24.6
5.6

4.9
26.5
5.5

4.5
27.6
6.8

4.9
28.4
7.8

5.0
30.1
7.8

5.2
31.0
9.5

5.4
32.3
8.1

4.5
34.0
9.5

5.5
35.0
9.4

15 Capital, surplus, and undivided profits................

10.9

11.5

12.4

12.5

12.8

13.2

13.4

13.4

13.9

14.4

16 Total liabilities and capital....................................

65.6

73.2

79.6

81.6

83.5

85.3

86.4

89.2

92.8

97.5

N ote.—Components may not add to totals due to rounding.

1.522 DOMESTIC FINANCE COMPANIES

Business Credit

Millions of dollars, seasonally adjusted except as noted

Type

Accounts
receivable
outstand­
ing June 30,
1977 i

Changes in accounts
receivable during—

Extensions

Repayments

1977

1977

1977

Apr.
1 Retail automotive (commercial vehicles).......
2 Wholesale automotive.....................................
3 Retail paper on business, industrial, and
farm equipment........................................
4 Loans on commercial accounts receivable. . .
5 Factored commercial accounts receivable.. . .
6 All other business credit.................................
1 Not seasonally adjusted.




May

June

Apr.

May

June

Apr.

May

June

10,750
10,710

307
164

229
361

340
137

1,005
5,261

943
5,120

1,042
5,049

698
5,097

714
4,759

702
4,912

12,645
3,901
2,225
10,211

76
60
124
112

113
37
-1 4
273

238
115
-5 0
202

752
2,585
1,721
1,310

731
2,333
1,541
1,392

694
2,483
1,347
1,346

676
2,525
1,597
11,198

618
2,296
1,555
1,119

456
2,368
1,397
1,144

A40
1.53

Domestic Financial Statistics □ August 1977
MORTGAGE MARKETS
Millions of dollars; exceptions noted.
1977
Item

1974

1975

1976

Jan.

Feb.

Mar.

Apr.

May

June

Terms and yields in primary and secondary markets
PRIMARY MARKETS
Conventional mortgages on new homes
Term s:1
1
Purchase price (thous. dollars).....................
2
Amount of loan (thous. dollars)..................
4
5
6

Maturity (years)............................................
Fees and charges (per cent of loan amount)2.
Contract rate (per cent per annum)............

7
8

Yield (per cent per annum):
FHLBB series 3..............................................
HUD series4..................................................

9

Yields (per cent per annum) on—
FHA mortgages (HUD series)5...................

11

FNMA auctions:7
Government-underwritten loans..............

40.1
29.8
74.3
26.3
1.30
8.71

44.6
33.3
74.7
26.8
1.54
8.75

48.4
35.9
74.2
27.2
1.44
8.76

52.5
39.0
76.3
28.2
1.38
8.82

53.1
39.3
75.8
27.8
1.31
8.78

53.8
40.9
77.5
28.0
1.34
8.74

53.4
39.6
75.5
27.3
1.30
8.73

r52.8
r39.9
HI A

27.9
1.34
8.74

53.0
39.4
75.8
27.3
1.25
8.77

8.92
9.22

9.01
9.10

8.99
8.99

9.05
8.80

8.99
8.80

8.95
8.85

8.94
8.90

8.96
8.95

8.98
9.00

9.55
8.72

9.19
8.52

8.82
8.17

8.40
7.85

8.50
7.98

8.58
8.06

8.57
7.96

8.04

8.74
7.95

9.31
9.43

9.26
9.37

8.99
9.11

8.48
8.82

8.55
8.86

8.68
8.91

8.67
8.97

8.74
9.08

8.75
9.12

SECONDARY MARKETS

Activity in secondary markets
FEDERAL NATIONAL
MORTGAGE ASSOCIATION
13
14
15

Mortgage holdings (end of period)
Total...................................................................
FHA-insured..................................................
VA-guaranteed..............................................

17
18

29,578
19,189
8,310
2,080

31,824
19,732
9,573
2,519

32,904
18,916
9,212
4,776

32,848
18,854
9,162
4,833

32,792
18,771
9,115
4,906

32,830
18,739
9.099
4.992

32,938
18,745
9,125
5,069

33,580
18,939
9,399
5,241

33,918
18,974
9,509
5,435

Mortgage transactions (during period)
Purchases...........................................................
Sales...................................................................

6,953
4

4,263
2

3,606
86

141

150

283

391

947
7

656

19
20

Mortgage commitments:8
Contracted (during period).............................
Outstanding (end of period).............................

10,765
7,960

6,106
4,126

6,247
3,398

1,180
4,142

968
4,707

1,119
5,184

716
5,411

1,452
5,773

999
5,854

21

Auction of 4-month commitments to buy—
Government-underwritten loans:
Offered 9..........................................................

5,462.6
2,371.4

7,042.6
3,848.3

4,929.8
2,787.2

747.4
549.1

868.4
484.7

1,138.2
612.0

456.1
269.8

1,842.8
1,027.4

278.9
127.8

23

Conventional loans:
Offered 9..........................................................

1,195.4
656.5

1,401.3
765.0

2,595.7
1,879.2

326.8
238.3

300.0
235.8

373.9
268.1

348.1
280.7

1,164.6
751.7

371.1
263.0

3,389

FEDERAL HOME LOAN
MORTGAGE CORPORATION
25
26
27

Mortgage holdings (end of period)1o
Total...................................................................
FHA/VA........................................................
Conventional..................................................

4,586
1,904
2,682

4,987
1,824
3,163

4,269
1,618
2,651

3,896
1,594
2,302

3,672
1,580
2,092

3,557
1,564
1,993

3,355
1,542
1,813

3,285
1,523
1,762

28
29

Mortgage transactions (during period)
Purchases .........................................................
Sales...................................................................

2,191
52

1,716
1,020

1,175
1,396

16
51

98
290

200
285

235
388

310
329

30
31

Mortgage commitments: 11
Contracted (during period).............................
Outstanding (end of period).............................

4,553
2,390

982
111

1,477
333

250
462

170
533

459
760

606
1,112

525
1,314

1 Weighted averages based on sample surveys of mortgages originated
by major institutional lender groups. Compiled by the Federal Home Loan
Bank Board in cooperation with the Federal Deposit Insurance Cor­
poration.
2 Includes all fees, commissions, discounts, and “points” paid (by
the borrower or the seller) in order to obtain a loan.
3 Average effective interest rates on loans closed, assuming prepayment
at the end of 10 years.
4 Average contract rates on new commitments for conventional first
mortgages, rounded to the nearest 5 basis points; from Dept, of Housing
and Urban Development.
5 Average gross yields on 30-year, minimum-downpayment, Federal
Housing Administration-insured first mortgages for immediate delivery
in the private secondary market. Any gaps in data are due to periods of
adjustment to changes in maximum permissible contract rates.
6 Average net yields to investors on Government National Mortgage
Association-guaranteed, mortgage-backed, fully-modified pass-through




securities, assuming prepayment in 12 years on pools of 30-year FHA/VA
mortgages carrying the prevailing ceiling rate. Monthly figures are
unweighted averages of Monday quotations for the month.
7 Average gross yields (before deduction of 38 basis points for mortgage
servicing) on accepted bids in Federal National Mortgage Association’s
auctions of 4-month commitments to purchase home mortgages, assuming
prepayment in 12 years for 30-year mortgages. No adjustments are made
for FNMA commitment fees or stock related requirements. Monthly
figures are unweighted averages for auctions conducted within the month.
8 Includes some multifamily and nonprofit hospital loan commitments
in addition to 1- to 4-family loan commitments accepted in FNMA’s
free market auction system, and through the FNMA-GNMA Tandem
plans.
9 Mortgage amounts offered by bidders are total bids received,
j o Includes participations as well as whole loans.
11 Includes conventional and Government-underwritten loans.

Real Estate Debt
1.54

A41

M O R T G A G E D E B T O U T S T A N D IN G
Millions o f dollars, end o f period

Type of holder, and type of property

1972

1973

1974

1977

1976

1975 r
Q2 r

Q3r

Q4r

Q lr

1 All holders.................................................
2
1- to 4-family........................................
3 Multifamily...........................................
4 Commercial..........................................
5 F arm .....................................................

603,417
372,793
82,572
112,294
35,758

682,321
416,883
92,877
131,308
41,253

742,504
449,937
99,851
146,428
46,288

801,537
490,761
100,601
159,298
50,877

840,591
519,836
102,906
164,056
53,793

865,733
538,847
103,882
167,539
55,465

889,039
556,443
104,283
171,259
57,054

910,941
572,517
104,342
174,763
59,319

6 Major financial institutions.......................
7
Commercial banks 1...............................
8
1- to 4-family....................................
9
Multifamily........................................
10
Commercial.......................................
11
F arm ..................................................

450,000

505,400

542,552

581,193

611,538

630,103

119,068

647,627

662,272

99,314

12
13
14
15
16

Mutual savings banks ............................

17
18
19
20

Savings and loan associations................

21
22
23
24
25

Life insurance companies......................

1- to 4-family.....................................
Multifamily........................................
Commercial.......................................
Farm ..................................................

1- to 4-family....................................
Multifamily........................................
Commercial.......................................

57,004
5,778
31,751
4,781

67,556

73,230

46,229
10,910
10,355
62

48,811
12,343
12,012
64

206,182

231,733

167,049
20,783
18,350

81,369

86,234

251,629
27,505
32,713

89,706

90,202

53,568
14,266
14,381
58

323,130

333,703

260,895
28,436
33,799

270,100
29,032
34,571

46,721

58,320

66,033
5,557
3,165
2,392

67,314

66,753

66,248

4,029

66,891

5,113

2,486
2,582

1,970
2,271

1,670
2,343
500

4,846

89,168

7,438

2,513
2,600

1,455
2,574

2,248
2,598

4,728
2,710

1,019

1,366

1,432

1,109

Federal land banks ................................

1- to 4-family.....................................
Farm ..................................................

13
9,094

44
45
46

Federal Home Loan Mortgage C orp....

1,789

279
29
320
391

3,338

2,199
1,139

19,791

17,697
2,094
9,107

743
29
218
376

3,476

759
167
156
350
4,015

2,013
1,463

2,009
2,006

24,175

29,578

20,370
3,805
11,071

123
10,948
2,604

23,778
5,800
13,863

18,040

23,799

5,353
151

7,561
329

441

331
110

8,459

7,890

1,355

1,064

754
143
133
325

454
218
72
320

4,970

5,111

5,092

5,150

1,990
2,980

31,824

11,769

11,249
520

1,781
3,330

32,028

16,563

17,978

18,568

19,125

19,942

4,588
399
34,138

575
17,403
4,529

4:166
363

41,225

4,269

3,557

3,917
352

3,889
380

3,200
357

49,801

29,583
989

54,811
34,260
33,190
1,070

2,153

2,506

2,671

3,570

2,141
365

2,282
389

3,112
458

15,729

16,558

16,981

15,438

1 Includes loans held by nondeposit trust companies but not bank trust
departments.
2 Outstanding principal balances of mortgages backing securities in­
sured or guaranteed by the agency indicated.
3 Other holders include mortgage companies, real estate investment
trusts, State and local credit agencies, State and local retirement funds,
noninsured pension funds, credit unions, and U.S. agencies for which
amounts are small or separate data are not readily available.

4,269

44,960

14,283

117,833
53,331
24,276
23,085
17,141

611
19,331

25,841
884

23,634

11,273

112,160
51,112
23,982
21,303
15,763

601
18,524

22,821
813

9,384

98,856
45,040
21,465
19,043
13,308

586
17,982

17,538
719

18,257

1,831
322

59 Individuals and others3.............................
60
1- to 4-family....................................
61
Multifamily........................................
62
Commercial.......................................
63
Farm ..................................................

32,830

26,836
5,994

1,349
249

6,782
116
1,473
2,902

1,732
3,674

26,934
5,970

1,598

5,458
138
1 ,124
2,664

32,904

5,406

27,030
5,932

757
608
149

5,017
131
867
2,444

32,962

1,676
3,474

98
28
64
310

26,112
5,916

617
149

766

1,716
3,376

4,013

25,813
6,011

4,987

14,404
5,504

830

4,586

4,217
369

4,241

228
46
151
405

549
16,014

2,446
158

5,068

208
215
190
496

406
13,457

1,754
35

1- to 4-family.....................................
Multifamily........................................
Commercial.......................................
F arm ..................................................




31,847

241,023
26,817
31,456

82,273

53.217
14,173
14,287
57

40,157

41
42
43

Farmers Home Admin ...........................

299,296

223,903
25,547
29,140

81,734

15,699
18,921
49,526
7,640

Federal National Mortgage Assn..........

54
55
56
57
58

278,590

201,553
23,683
24,057

52,250
13,915
14,028
56

91,786

38
39
40

1- to 4-family....................................
Multifamily........................................

249,293

187,750
22,524
21,459

80,249

16,088
19,178
48,864
7,425

Federal Housing and Veterans Admin...

Federal Home Loan Mortgage Corp...

51,326
13,674
13,780
58

88,086
8,282
51,266
6,876

91,555

35
36
37

51
52
53

50,025
13,792
13,373
59

154,510

86,205
8,100
50,175
6,728

16,448
19,234
47,336
7,184

Farmers Home Admin ...........................

47 Mortgage pools or trusts2.........................
48 Government National Mortgage Assn...
49
1- to 4-family....................................
50
Multifamily.......................................

78,838

49,213
12,923
12,722
62

83,938
8,144
49,160
6,563

151,208

16,855
19,367
46,479
7,005

30
31
32
33
34

1- to 4-family.....................................
Multifamily............................ ..........

77,249

81,281
8,130
47,924
6,363

147,805

17,590
19,629
45,196
6,753

26 Federal and related agencies....................
27 Government National Mortgage Assn...
28
1- to 4-family....................................
29
Multifamily........................................

1- to 4-family.....................................
Multifamily........................................

74,920

77,018
5,915
46,882
6,371

143,699

19,026
19,625
41,256
6,327

22,315
17,347
31,608
5,678

1- to 4-family....................................
Multifamily........................................

74,758
7,619
43,679
6,049

136,186

20,426
18,451
36,496
5,996

76,948

1- to 4-family....................................
Multifamily........................................
Commercial.....................................
Farm ..................................................

1- to 4-family....................................
Multifamily........................................
Commercial.......................................
F arm ..................................................

67,998
6,932
38,696
5,442

132,105

9,194
295
1,948
2,846

119,315
56,268
22,140
22,569
18,338

9,670
541
2,104
3,123

121,795
59,002
21,195
22,162
19,436

26,725

9,587
535
2,291
3,316

123,356
60,524
20,915
21,878
20,039

30,572

10,219
532
2,440
3,367

124,858
62,430
20,173
21,622
20,633

10,423
530
2,560
3,468
127,610
64,192
19,387
22,395
21,636

N ote.—Based on data from various institutional and Govt, sources,
with some quarters estimated in part by Federal Reserve in conjunction
with the Federal Home Loan Bank Board and the Dept, of Commerce.
Separation of nonfarm mortgage debt by type of property, if not re­
ported directly, and interpolations and extrapolations where required, are
estimated mainly by Federal Reserve. Multifamily debt refers to loans on
structures of 5 or more units.

A42
1.55

Domestic Financial Statistics □ August 1977
Total Outstanding, and Net Change

C O N S U M E R IN S T A L M E N T C R E D IT
Millions o f dollars

1976 r
Holder, and type o f credit

1974r

1975r

1977 r

1976r

Dec.

Jan.

Feb.

Mar.

Apr.

May

June

Amounts outstanding (end of period)

1 Total.........................................

157,454

164,955

185,489

185,489

184,597

184,504

186,379

189,187

192,143

196,157

2
3
4
5
6

By holder:
Commercial banks..............
Finance companies..............
Credit unions.......................
Retailers1.............................
Others2.................................

75,846
36,087
21,895
17,933
5,693

I S ,661

35,994
25,666
18,002
6,626

89,511
38,639
30,546
19,052
7,741

89,511
38,639
30,546
19,052
7,741

89,262
38,790
30,410
18,378
7,757

89,223
38,868
30,701
17,860
7,852

90.187
39.188
31,448
17,585
7,971

91,837
39,561
31,912
17,734
8,142

93,190
40,127
32,704
17,911
8,211

95,307
40,712
33,750
18,032
8,355

7
8
9
10
11
12
13

By type of credit:
Automobile ...........................
Commercial banks..........
Indirect.........................
Direct...........................
Finance companies..........
Credit unions...................
Others...............................

52,871

55,879

66,116

66,116

65,874

66,361

67,678

69,064

Mobile homes.......................

14,618

8,972
3,525

14,423

14,572

14,466

14,396

Commercial banks..........
Finance companies..........

Home improvement..............

8,522

9,405

10,990

10.948

10,962

14
15
16
17
18
19
20
21
22
23
24
25
26
27

Commercial banks..........

Revolving credit:

Bank credit cards............
Bank check credit...........

All other ...............................

Commercial banks, total,
Personal loans.............
Finance companies, total
Personal loans.............
Credit unions.................
Retailers.........................
Others.............................

30,994
18,687
12,306
10,623
10,869
386

4,694
8,281
2,797
70,364

20,108
13,771
21,590
16,985
9,174
17,933
1,559

31,553
18,353
13,200
11,155
12,741
430
8,649
3,451

4,965

9,501
2,810
72,937

21,188
14,629
21,238
17,263
10,754
18,002
1,755

37,984
21,176
16,808
12,489
15,163
480
8,734
3,273

5,554

11,351
3,041
79,418

22,847
15,669
22,749
18,554
12,799
19,052
1,971

37,984
21,176
16,808
12,489
15,163
480
14,572

8,734
3,273

10,990

5,554

11,351
3,041
79,418

22,847
15,669
22,749
18,554
12,799
19,052
1,971

37.948
21,091
16,857
12,367
15,096
464
8,644
3,244

5,510

11,269
3,062
78,978

22,830
15,732
23,054
18,531
12,742
18,378
1,974

38.170
21.170
17,000
12,450
15,240
501
8,590
3,202

38,962
21,563
17,399
12,593
15,611
513

41,937
23,054
18,883
13,219
16,754
549

14,409

14,471

14,477

14,551

11,097

11,287

11,465

11,742

8,571
3,190

5,510

11,090
3,071

10,971
3,061

78,624

72,459

40,760
22,442
18,319
13,023
16,234
540

5,474

22,828
15,753
23,088
18,567
12,864
17,860
1,984

70,557

39,940
22,059
17,881
12,757
15,841
525

79,162

23,112
15,932
23,277
18,751
13,177
17,585
2,011

8,597
3,170

5,594

11,149
3,076
80,139

8,617
3,149

5,702

11,205
3,125
81,313

8,646
3,136

5,838

11,462
3,202
82,742

23,481
16,168
23,506
18,938
13,371
17,734
2,047

23,780
16,344
23,827
19,214
13,703
17,911
2,092

24,224
16,602
24,223
19,540
14,141
18,032
2,121

Net change (during period) 3
28 Total....................................................
29
30
31
32
33
34
35
36
37
38
39
40

By holder:
Finance companies.........................

By type of credit:
Commercial banks......................
Indirect.....................................
Direct.......................................
Finance companies.....................
Credit unions...............................

9,280

7,504

20,533

2,442

1,990

1,824

2,848

2,770

2,519

2,282

3,975
731
2,262
1.538
'774

2,821
-9 0
3,771
69
933

10,845
2,644
4,880
1,050
1,115

1,269
409
511
159
94

627
627
501
200
35

858
349
517
14
86

1,434
585
611
113
106

1,328
392
634
223
192

1,100
460
665
210
84

1,283
182
519
144
154

500

3,007

10,238

1,201

732

955

1,326

1,155

1,188

898

-5 0 8
-3 1 0
-198
-116
1,123
2
1,068

150

85

428
178
249
61
250
-7
-4 8

-111

80
-1 7

-5 4
-1 8

1,094

881

1,585

161

611

271

588

69

95

Bank credit cards........................

1,443
543

1,220
14

1,850
231

All other ...........................................

4,631

2,577

6,479

43
44

Commercial banks......................
Revolving credit:

Commercial banks, total............
Personal loans.........................
Finance companies, total...........
Personal loans.........................
Retailers......................................
Others..........................................

1,255
898
746
486
948
1,538
145

1,080
858
-348
279
1,580
69
196

85

784
409
376
152
259
6

-323
-7 3

Commercial banks......................
Finance companies.....................

47
48
49
50
51
52
53
54

-1 9 5

6,431
2,823
3,608
1,334
2,422
50

632
166

41
42

45
46

559
-334
894
532
1,872
44

1,659
1,040
1,509
1,290
2,045
1,050
217

1 Excludes 30-day charge credit held by retailers, oil and gas companies,
and travel and entertainment companies.
2 Mutual savings banks, savings and loan associations, and auto dealers.
3 Net change equals extensions minus liquidations (repayments, chargeoffs. and other credits) ; figures for all months are seasonally adjusted.




491
217
274
174
266
24
-4 8

790
396
394
244
294
-2

693
355
338
135
298
29
56

561
241
320
258
352
17

5
-1

11
-1 4

-1 8

-3 8
-4 0

23
-1

-2 4

-2 1

87

160

181

126

58

174
61

173
98

219
85

48

38

20

69
26

-1 0
39

186
39

245
50

259
54

899

1,182

605

1,019

1,065

952

248
182
270
219
281
223
43

209
146
227
184
258
210
48

239
132
274
128
206
159
20

186
189
585
185
204
200
7

681
328
353
-2 8
244
2

160
126
212
178
204
14
15

71

272
200
341
280
264
113
29

64

883

237
156
226
185
239
144
36

N ote.—Total consumer noninstalment credit outstanding—credit
scheduled to be repaid in a lump sum, including single-payment loans,
charge accounts, and service credit—amounted to $38.7 billion at the
end of 1976, $35.7 billion at the end of 1975, and $33.8 billion at the end
of 1974. Comparable data for Dec. 31, 1977, will be published in the
Bulletin for February 1978.

Consumer Debt
1.56

C O N S U M E R IN S T A L M E N T C R E D IT

A43

Extensions and L iquidations

Millions o f dollars

Holder, and type of credit

1974

1975

1976

1977 »■

1976r
Dec.

Jan.

Feb.

Mar.

Apr.

May

June

Extensions1
1
By holder:
?, Commercial banks..........................
3 Finance companies.........................
4
5
6 Others3............................................
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27

By type of credit:

157,200

164,169

193,328

17,677

17,072

17,418

18,351

18,609

18,322

18,613

72,605
34,061
19,596
27,034
3,904

77,312
31,173
24,096
27,049
4,539

94,220
36,028
28,587
29,188
5,305

8,721
3,247
2,625
2,620
465

8,010
3,477
2,536
2,643
406

8,399
3,301
2,674
2,580
464

8,927
3,528
2,787
2,615
494

9,008
3,445
2,859
2,721
576

8,888
3,359
2,860
2,728
485

9,036
3,443
2,769
2,806
559

6,135

6,037

5,973

5,978

51,413

5,869

5,440

5,747

26,406
15,576
10,830
8,604
10,015
404

28,573
15,766
12,807
9,674
12,683
483

62,988

Commercial banks......................
Indirect.....................................
Direct.......................................
Finance companies.....................
Credit unions...............................
Others..........................................
Mobile homes..................................

5,782

4,323
2,622

4,841

470

352

367

Commercial banks......................
Finance companies.....................

Home improvement..........................

45,429

3,486
1,376

5,211

764

3,071
690

5,556

6,736

2,789

2,722

Bank credit cards........................
Bank check credit.......................

17,098
4,227

20,428
4,024

All other ..........................................

79,453

78,425

Commercial banks......................

Revolving credit:

Commercial banks, to tal............
Personal loans.........................
Finance companies, total............
Personal loans.........................
Credit unions...............................
Retailers.......................................
Others...........................................

18,599
13,176
23,796
17,162
8,560
27,034
1,463

36,585
19,882
16,704
11,209
14,675
518

18,944
13,386
20,657
16,944
10,134
27,049
1,642

3,245

25,862
4,783
88,117

20,673
14,480
24,087
19,579
12,340
29,188
1,830

3,476
1,889
1,587
999
1,348
46
324
52

3,115
1,668
1,447
1,000
1,292
33

3,563
1,923
1,640
1,112
1,418
42
434

3,462
1,850
1,612
1,074
1,431
70

3,341
1,751
1,590
1,114
1,457
60

3,442
1,817
1,625
1,099
1,390
47

463
269

402
262

50

232
48

408

660

627

677

210
53

257
56

274

564
262

638

2,297
441

2,166
460

2,384
459

2,381
470

2,547
467

2,589
498

2,604
512

7,977

8,096

7,897

8,292

8,436

8,233

8,434

624

306

1,877
1\303
2,191
1,722
1,128
2,620
161

204
50

3,278
1,730
1,547
1,014
1,392
64

558

1,791
1,337
2,423
1,737
1,094
2,643
146

1,806
1,302
2,228
1,755
1,127
2,580
156

310

58

308

308

319

1,945
1,392
2,354
1,863
1,207
2,615
171

1,956
1,406
2,307
1,833
1,264
2,721
188

1,891
1,365
2,188
1,744
1,233
2,728
193

1,927
1,380
2,289
1,850
1,225
2,806
187

Liquidations1
28 Total....................................................

147,920

156,665

172,795

15,236

15,082

15,594

15,503

15,840

15,803

16,331

By holder:
Commercial banks..........................
Finance companies.........................
Credit unions...................................
Retailers2........................................
Others3............................................

68,630
33,330
17,334
25,496
3,130

74,491
31,263
20,325
26,980
3,606

83,376
33,384
23,707
28,138
4,191

7,452
2,838
2,114
2,461
371

7,383
2,850
2,035
2,443
371

7,540
2,952
2,157
2,566
378

7,493
2,943
2,176
2,502
\
389

7,680
3,053
2,225
2,497
384

7,789
2,899
2,195
2,518
401

7,753
3,261
2,250
2,662
405

44,929

48,406

52,750

4,667
2,692

29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54

By type of credit:
Automobile .......................................
Indirect.....................................
Direct.......................................
Finance companies.....................
Credit unions...............................
Others..........................................

26,915
15,886
11,029
8,720
8,892
402

28,014
16,101
11,913
9,142
10,811
439

2,688
1,490
1,198
939
1,042
40

2,787
1,513
1,274
840
1,126
40

2,773
1,527
1,246
868
1,124
44

2,769
1,495
1,274
939
1,133
41

4,785

2,780
1,509
1,271
856
1,106
43

5,080

1,480
1,212
847
1,089
40

4,691
2,986
867

385
244
69

400
258
68

415
248
93

386
252
57

407
258
72

420
262
74

385
239
68

30,154
17,059
13,095
9,875
12,253
468

4,708

4,792

4,809

4,882

2,761
1,489
1,272
1,127
1,146
45

Mobile homes ..................................

Commercial banks......................
Finance companies.....................

4,715
2,854
1,210

4,517
2,944
837

4,117

2,178

4,675

2,451

5,151

2,657

463

236

237

241

238

479

244

501

503

Commercial banks......................
Bank credit cards........................
Bank check credit.......................

15,655
3,684

19,208
4,010

24,012
4,552

2,228
415

2,176
421

2,198
420

2,136
420

2,288
413

2,416
400

2,385

All other ...........................................

74,821

75,849

81,638

7,078

6,914

7,292

7,273

7,371

7,282

7,551

Revolving credit:

Commercial banks, to tal............
Personal loans.........................
Finance companies, total...........
Personal loans.........................
Credit unions...............................
Retailers.......................................
Others...........................................

17,345
12,278
23,050
16,676
7,613
25,496
1,318

17,864
12,528
21,005
16,665
8,554
26,980
1,446

19,014
13,439
22,578
18,289
10,295
28,138
1,613

1 Monthly figures are seasonally adjusted.
2 Excludes 30-day charge credit held by retailers, oil and gas companies,
and travel and entertainment companies.




1,638
1,171
1,917
1,594
921
2,461
141

463

1,604
1,148
1,838
1,552
890
2,443
139

477

1,646
1,176
2,016
1,577
922
2,566
141

478

1,673
1,192
2,013
1,583
943
2,502
143

1,708
1,224
2,037
1,614
983
2,497
145

250

1,682
1,219
1,961
1,560
975
2,518
146

252

A ll

1,689
1,224
2,063
1,666
986
2,662
151

3 Mutual savings banks, savings and loan associations, and auto dealers.

A44

Domestic Financial Statistics □ August 1977

1.57 FUNDS RAISED IN U.S. CREDIT MARKETS
Billions of dollars; half-year data are at seasonally adjusted annual rates.
1975
Transaction category, or sector

1971

1972

1973

1974

1975

1976

HI

1976
H2

HI

H2

Nonfinancial sectors
1
7

Excluding equities ..........................................
By sector and instrument:
S U.S. Govt........................................................
4
Public debt securities.................................
5
6
7
Corporate equities.....................................
8
Debt instruments.......................................
9
Private domestic nonfinancial sectors........
10
11
17
Debt capital instruments.....................
n
State and local obligations............
14
Corporate bonds.............................
Mortgages:
15
16
17
18
19
Other debt instruments .......................
70
71
77
Open market paper.........................
73

74
75
76
77
78
79
30
31
32
33
34
35
36

139.6

176.9

197.6

188.8

210.4

190.0

185.0

200.3

271.6

184.2

166.4

260.8

226.9

243.0

286.3

173.8

278.2

1
2

24.7
26.0
- 1 .3
126.3
11.5
114.8
121.1
11.4

15.2
14.3
1.0
161.7
10.5
151.2
157.7
10.9

109.7
86.8

8.3
7.9
.4
189.4
7.7
181.7
183.1
7.9

12.0
12.0
*
176.8
3.8
173.0
161.6
4.1

85.2
85.8
- .6
125.2
10.0
115.1
112.2
9.9

80.8
82.0
- 1 .2
103.4
10.5
93.0
94.9
10.3

89.6
89.7
-.1
146.9
9.6
137.3
129.4
9.5

71.6
71.5
.1
185.0
13.6
171.4
169.1
13.3

146.8
102.8

175.3
106.7

157.5
101.2

66.6
66.9
- .3
219.7
8.1
211.7
192.5
7.7

102.3
101.3

69.0
69.1
-.1
202.6
10.8
191.8
181.1
10.5
170.5
123.6

84.6
97.5

16.2
33.4

119.9
105.1

155.8
113.5

184.8
133.8

17.2
22.8

3
4
5
6
7
8
9
10
11
12
13
14

40.8
- .1
10.9
5.2

64.4
1.1
11.7
6.4

33.5
*
8.7
5.6

151.0

17.5
18.8

28.6
9.7
9.8
2.4
22.8

11.6
6.5
- .4
5.1
121.1

17.8
42.1
4.5
10.3
46.4

Corporate equities..................................
Debt instruments .....................................
Bonds..................................................
Bank loans n.e.c..................................
Open market paper.............................
U.S. Govt, loans.................................

5.2
*
5 .2
.9

2.1
.3
1.8

15.4
12.2

16.3
9.2

19.6
19.7

42.6
12.7
16.4
3.6

46.4
10.4
18.9
5.5

34.6
7.0
15.1
5.1

44.0

68.6

56.3

18.6
18.1
.8
6.5

157.7

15.2
64.8
5.8
13.1
58.8

21.7
34.8
2.5
9.6

183.1

14.8
73.5
9.7
12.3
72.9

17.3
27.2

18.1
20.7

16.4
25.0

48.1
- .2
13.1
4.8

58.1
1.6
9.8
5.1

70.7
.6
13.5
7.6

15
16
17
18
51.0 19
21.6 20
12.7 21
- 1 .3 22
17.9 23

8.5
-1 4 .5
- 2 .2
9.1

1.0

46.9

- 12.8

1.1
-2 3 .5
- .2
9.7

16.0
- 5 .5
- 4 .2
8.5

14.8

42.3

161.6

112.2

181.1

94.9

13.9
39.0
9.4
- .8
33.5

129.4

169.1

16.8
90.7
12.3
4.7
56.6
21.5
.3

8.5
.1

17.4
.1

15.9
.3

27.2
.3

8 .4

17.3

15.6

26.9

9.4
9.3
4.2
4.0

30
31
32
33
34
35
36

32.1

37

18.6
45.2
7.9
6.7
83.1

14.9
49.7
9.4
1.2
37.1

6.2
- .2

15.3
- .2

13.0
.1

4.4

6 .4

15.5

12.8
6.2

1.0
2.8
.9
1.7

18.4
21.0

256.6

9.8
26.2
6.8
13.5

4.0
- .4
1.0
3.0
- 1 .0
1.5

236.5

2.1
4.7
7.1
1.6

20.5
7.7
3.5
15.3

21.2

8.4
6.8
2.5
3.6

4.0
- .1
2.8

5.7
.6
- 1 .2
3.3

15.9
60.4
9.4
3.2
40.6

6.7
7.4
1.0
2.2

19.4
2.2
8.2
12.6

16.4
88.3
11.0
4.2
49.3

7.3
4.2
.8
3.2

24
17.2 25
93.0 26
13.6 27
4.8 28
63.9 29

192.5

Financial sectors
37 Total funds raised..............................................
By instrument:
38
U.S. Govt, related ...........................................
39
Sponsored credit agency securities............
40
Mortgage pool securities...........................
41
Loans from U S Govt...............................
42 Private financial sectors .................................
43
Corporate equities.....................................
44
Debt instruments .........................................
45
Corporate bonds....................................
46
Mortgages...............................................
47
Bank loans n.e.c......................................
48
Open market paper and Rp’s ...............
49
Loans from FHLB’s...............................
50
51
52
53
54
55
56
57
58
59
60
61

By sector:
Sponsored credit agencies.............................
Mortgage pools..............................................
Private financial sectors .................................
Commercial banks.....................................
Bank affiliates.............................................
Foreign banking agencies..........................
Savings and loan associations...................
Other insurance companies.. . . . : ............
Finance companies....................................
REIT’s ........................................................
Open-end investment companies. . . . . . . .

17.0

29.1

56.7

43.0

14.8

29.8

14.4

15.3

27.5

5 .9

8 .4

19.9

23.1

13.5

17.7

14.0

13.1

18.0

.4

2.1

9 .5

-.8

1.0

1.1
4.8

3.5
4.9

16.3
3.6

16.6
5.8
.7

2.3
10.3
.9

2.4
15.7
- .4

11.1

20 .7

36.8

19.9

1.3

12.1

7 .6

18.0

35.3

18.9

.1

10.3

3.5

3.8
2.1
3.5
.9
- 2 .7

2.8

5.1
1.7
6.8
4.4
*

1.5

3.5
- 1 .2
14.0
11.8
7.2

1.0

1.2

2.1
- 1 .3
7.5
3.9
6.7

2.9
2.3
- 3 .9
2.8
- 4 .0

1.1
4.8

3.5
4.9

16.3
3.6

17.3
5.8

3.2
10.3

11.1

2 0 .7

36.8

19.9

1.3

4.8
.7
.8
2.0
.5
6.2
6.3
- .5

8.1
2.2
5.1
6.0
.5
9.4
6.5
- 1 .2

- 1 .1
3.5
2.9
6.3
.9
4.5
1.1
- .5
2.4

2.4
- .4
1.6
- .1
.6
2.7
2.9
1.3

1.7
.3
- .3
- 2 .1
.9
.7
- 1 .9
.8
1.3

1.8

1.4
11.5
1.1
1.2

5.8
1.9
- 3 .3
7.8
- 2 .0

2.5
1.2
- 4 .7
7.6
- 7 .3

2.0
15.7
12.1

7.6
- .8
.4
-.1
1.0
6.1
- 2 .1
.3
- .3

3.3
9.2
.6
1.2

3.9
14.2
*
.3

9.1

3.3
3.4
- 3 .2
- 1 .9
- .6

7.2
1.0
- 3 .6
6.8
- 2 .3

2.5
11.5

4.0
9.2

3.9
14.2

.4

2.1

9 .5

5.7
.9
- .9
- 7 .8
.9
- .8
- 1 .6
1.5
2.6

- 2 .3
- .3
.2
3.6
1.0
2.1
- 2 .2
.1
*

9.9
- 1 .3
- 1 .5
- 1 .0
1.0
6.0
- 1 .8
- 1 .1
-.7

38
39
17.2 40
- . 7 41
14.7 42
3.3 43
11.4 44
4.4 45
2.8 46
- 3 .0 47
8.8 48
- 1 .7 49
17.4
.9

.2
17.2

50
51
52
5.3 53
- . 3 54
2.4 55
.7 56
1.0 57
6.2 58
- 2 .5 59
1.8 60
.2 61
14.7

All sectors
62 Total funds raised, hv instrument.....................
63 Investment company shares..........................
64 Other corporate equities...............................
65 Debt instruments .............................................
66
U.S. Govt, securities..................................
67
State and local obligations........................
68
Corporate and foreign bonds....................
69
Mortgages...................................................
70
Consumer credit.........................................
71
Bank loans n.e.c.........................................
72
Open market paper and Rp’s ...................
73
Other loans.................................................




168.1
1.3
13.7

206.0
- .5
13.8

153.1

192.8

30.7
17.5
23.5
52.5
11.6
12.1
.9
4.2

23.7
15.4
18.4
76.8
18.6
27.8
4.1
8.0

254.3
- 1 .2
10.4

231.8
- .5
5.4

225.2
.8
10.4

301.4
.3
12.3

198.6
1.5
10.2

251.8
.1
10.7

284.1
- 1 .1
15.0

245.2

227.0

214.0

288.7

187.0

241.0

270.2

28.3
16.3
13.6
79.9
21.7
51.6
15.2
18.5

34.5
19.6
23.9
60.5
9.8
38.4
17.8
22.5

98.0
17.3
36.3
59.0
8.5
- 1 4 .4
.5
8.7

87.2
17.2
37.0
85.4
20.5
11.2
13.8
16.5

93.6
16.2
41.6
49.1
1.1
- 2 7 .6
6.2
6.8

102.4
18.4
31.0
69.0
16.0
- 1 .2
- 5 .1
10.7

89.8
18.1
35.2
75.7
19.4
2.9
15.8
13.4

318.4 62
1.8 63
9.6 64
307.0 65
84.7 66
16.4 67
38.8 68
95.2 69
21.6 70
19.1 71
11.8 72
19.5 73

A45

Flow o f Funds
1.58

D IR E C T A N D IN D IR E C T SO U R C E S O F F U N D S T O C R E D IT M A R K E T S
Billions o f dollars, except as noted; half-year data are at seasonally adjusted annual rates.

1975
Transaction category or sector

1 Total funds advanced in credit markets to
nonfinancial sectors.....................................
2
3
4
5
6
7
8
9
10
11

By public agencies and foreign:
Total net advances..............................................
U.S. Govt, securities.....................................
Residential mortgages...................................
FHLB advances to S&L’s .............................
Other loans and securities.............................
Totals advanced, by sector
U.S. Govt........................................................
Sponsored credit agencies.............................
Monetary authorities.................................
Foreign............................................................
Agency borrowing not included in line 1........

Private domestic funds advanced
12 Total net advances..............................................
13 U.S. Govt, securities.....................................
14 State and local obligations...........................
15 Corporate and foreign bonds.......................
16 Residential mortgages...................................
17 Other mortgages and loans...........................
18 L ess: FHLB advances...................................
Private financial intermediation
19 Credit market funds advanced by private
financial institutions....................................
20 Commercial banking.....................................
21 Savings institutions........................................
22 Insurance and pension funds........................
23 Other finance..................................................
24 Sources o f funds ..................................................
25 Private domestic deposits.............................
26 Credit market borrowing..............................
27
28
29
30
31

Other sources..................................................

1971

1972

1973

1974

1975

139.6

166.4

190.0

185.0

200.3

43.4

19.8

34.2

7.6
7.0
*
5.1

9.6
8.2
7.2
9.2

5 2 .7

44.2

2.8
5.2
8.9
26.4
5.9

1.8
9.2
.3
8.4
8.4

102.1

155.0

34.4
7.0
- 2 .7
4.6

- 3 .7
17.5
19.5
31.2
35.0
- 2 .7

109.7

50.6
39.1
14.2
5.9
109.7

89.4
7.6

12.6

Foreign funds.............................................
Treasury balances......................................
Insurance and pension reserves................
Other, net....................................................

- 3 .9
2.2
8.6
5.7

Private domestic nonfinancial investors
32 Direct lending in credit markets ........................
33 U.S. Govt, securities.....................................
34 State and local obligations...........................
35 Corporate and foreign bonds.......................
36 Commercial paper.........................................
37 Other..............................................................

16.1
15.4
13.1
48.1
62.3
*

226.9

243.0

55.9

5 1 .9

3 6 .6

50.5
26.1

14.9
15.9
7.0
14.2
14.0

15.2
13.2
10.1
- 2 .0
13.1

5.6
20.0
13.6
11.4
18.0

14.9
21.3
6.1
19.0
17.4

7
8
9
10
11

135.9

203.4

210.5

234.4

21.0

57.8
16.4
33.5
56.4
68.6
- 1 .7

12
13
14
15
16
17
18

155.3

169.6

222.6

42.1

116.0

64.6
27.0
30.1
4.5

126.2
69.4
18.9
37 .8
14.5

181.8

61.0
16.2
38.9
17.7
- 5 .2
- 7 .3

97.7

13.5
49.8
36.4
- 1 .9

116.0

181.8

97.7
90.3
- .8

134.3

8 .2

4 2 .7

122.7
10.3

25 .4

48.8

6.9
- 1 .0
18.4
17.8

- 5 .1
26.0
2.4

- .4
- 1 .7
29.9
- 2 .4

2.5
- .1
34.3
12.1

- 5 .7
- 3 .5
27.4
-1 0 .1

*
-1 0 .8
.5
8.3
- 1 .1
3.2

2 3 .6

47.2

4.2
3.1
4.2
3.0
9.1

19.4
7.5
.9
12.5
6.9

40.8

53.7

51.1

37.4

38 Deposits and currency ........................................
39 Time and savings accounts .............................
40
Large negotiable CD’s ...............................
41
Other at commercial banks.......................
42
At savings institutions...............................

92.8
79.1

105.3
83 .7

90.3
76.2

6.3
33.2
39.6

7.7
30.6
45.4

18.3
29.6
28.4

43
44
45

13.7

21. 6

14.1

Money .............................................................

Demand deposits.......................................
Currency.....................................................

46 Total of credit market instruments, deposits
and currency...............................................

10.4
3.4

17.2
4.4

75.7
67.4

23.0
9.9
10.4
3.1
7.3

96.7
84.8

19.6
7.1
5.9
6.3
12.2

130.0
113.2

8.3

11.9

16.8
9.5

2 0.7

48.9
51.1
- 2 .3

19
73.6 20
68.2 21
44.2 22
15.1 23

161.9
41.5
11.0

201.1

161.9

201.1

44.3
5.1

103.8
9.1

24
141.4 25
11.4 26

- 2 .7
3.9
33.6
14.2

49.0

48.3 27
1.1 28
- 4 .2 29
35.0 30
9.9 31

70.1

57.7

44 .7

97.7
94 .7

-2 7 .3
39.4
63.0

63.1
18.1

5.0
.1
32.5
5.2

95.7
75.0

-1 4 .1
58.1
69.2

5.7
6.2

90.6
1.0

41.0
9.6
7.9
2.7
8.9

-1 3 .3
39.0
59.2

2.0
6.3

41.7
52.2
42.3
- 1 .8

5.0
10.3
12.9
3.5
5.6

18.9
26.1
22.4

10.2
3.9

134.3

57.7
69.7
44.2
10.1

5.3
.7
11.6
12.8

17.9
12.2
5.3
4.6
8.1

90.0
18.4
26.7
31.1
36.5
- .6

27.6
51.0
39.3
- 1 .8
90.5
.1

61.2

2
3
4
5
6

175.7

126.2

1

26.9
14.8
- 1 .7
21.1

10.2
20.6
9.8
15.2
17.7

60.4
17.2
30.3
52.7
60.1
- 2 .0

278.2

10.8
- 2 .3
15.3

15.1
14.5
8.5
6.1
13.5

75.5
17.3
32.8
24.4
15.7
- 4 .0

H2

12.4
16.5
- .6
8.3

9.8
25.6
6.2
11.2
23.1

86.4
35.3

30.5

173.8

2.8
21.4
9.2
.7
19.9

163.8

100.9
18.0

260.8

32.6
15.9
- 7 .3
10.6

86.5
36.0
23.8
17.4

149.4

HI

26.8
12.8
- 2 .0
18.2

163.8

70.5
47.2
17.8
13.8

H2

22.5
16.2
- 4 .0
9.5

22.6
19.6
20.9
26.9
71.9
6.7

1976

HI

11.9
14.7
6.7
19.5

18.7
16.3
10.0
48.5
89.3
7.2

149.4

1976

.7
38.5
55.4
3 .0

7.3

15.3
5.4

- 4 .0
7.1

21.5
6.0
8.2
10.6
11.3

32
17.6 33
8.2 34
3.6 35
2.0 36
13.2 37

107.9 151.9 38
97.9 128.5 39
-1 7 .9 -1 0 .3 40
50.0
66.2 41
65.7
72.7 42
10.1

5.9
4.2

23.3
12.9

10.5

43
44
45

92.9

129.0

137.5

123.7

150.4

181.2

133.1

167.8

165.6

Public support rate (in per cent)...................
Private financial intermediation (in per cent)
Total foreign funds........................................

31.1
107.4
22.5

11.9
96.4
13.7

18.0
93.2
7.6

28.5
81.2
25.7

22.1
68.4
5.7

21.4
81.6
17.7

29.9
71.9
8.5

16.1
66.0
3.0

20.8
76.9
8.7

22.0
85.8
26.6

47
48
49

M emo: Corporate equities not included above
50 Total net issues...................................................
51 Mutual fund shares.......................................
52 Other equities.................................................
53 Acquisitions by financial institutions...............
54 Other net purchases...........................................

15.0
1.3
13.7
17.8
- 2 .9

13.3
- .5
13.8
15.3
- 2,

9.2
- 1 .2
10.4
13.3
- 4 .1

4.9
- .5
5.4
5.5
- .7

11.2
.8
10.4
8.3
2.9

12.7
.3
12.3
12.0
.7

11.7
1.5
10.2
9.2
2.4

10.8
.1
10.7
7.4
3.4

14.0
- 1 .1
15.0
11.8
2.1

11.4
1.8
9.6
12.1
- .7

50
51
52
53
54

47
48
49

N otes by line no.
1. Line 2 of p. A-44.
2. Sum of lines 3-6 or 7-10.
6. Includes farm and commercial mortgages.
11. Credit market funds raised by Federally sponsored credit agencies,
and net issues of Federally related mortgage pool securities. Included
below in lines 3, 13, and 33.
12. Line 1 less line 2 plus line 11. Also line 19 less line 26 plus line 32.
Also sum of lines 27, 32, 39, and 44.
17. Includes farm and commercial mortgages.
25. Lines 39 plus 44.
26. Excludes equity issues and investment company shares. Includes
line 18.
28. Foreign deposits at commercial banks, bank borrowings from foreign
branches, and liabilities of foreign banking agencies to foreign af­
filiates.




196.5 46

29. Demand deposits at commercial banks.
30. Excludes net investment of these reserves in corporate equities.
31. Mainly retained earnings and net miscellaneous liabilities.
32. Line 12 less line 19 plus line 26.
33-37. Lines 13-17 less amounts acquired by private finance. Line 37
includes mortgages.
45. Mainly an offset to line 9.
46. Lines 32 plus 38 or line 12 less line 27 plus line 45.
47. Line 2/line 1.
48. Line 19/line 12.
49. Lines 10 plus 28.
50. 52. Includes issues by financial institutions.
N ote.—Full statements for sectors and transaction types quarterly,
and annually for flows and for amounts outstanding, may be obtained
from Flow of Funds Section, Division of Research and Statistics, Board
of Governors of the Federal Reserve System, Washington, D.C. 20551.

A46

Domestic Nonfinancial Statistics □ August 1977

2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures
1967 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted.
1976
1974

Measure

1 Industrial production..................................................
2
3
4
5
6
7

Market groupings:
Consumer goods.........................................
Equipment...................................................
Intermediate....................................................
Industry groupings:

1975

1977

1976
Dec.

Jan.

Feb.

Mar.

Apr.

May

June?

July

129.3

117.8

129.8

133.1

132.1

133.2

135.2

136.2

137.4

138.3

139.0

129.3

119.3

129.3

133.8

133.1

133.9

134.9

136.1

137.1

138.0

138.9

125.1
128.9
120.0
135.3
132.4

118.2
124.0
110.2
123.1
115.5

127.3
136.8
114.3
136.8
130.5

132.1
142.0
118.6
139.8
131.9

130.8
140.2
117.8
141.8
130.7

133.0
142.8
119.7
141.9
135.5

131.8
141.0
119.0
141.8
132.4

134.3
143.3
121.8
142.7
136.3

135.2
144.0
123.1
144.1
137.8

136.1
144.4
124.5
145.4
138.8

136.9
145.3
125.6
146.6
139.1

129.4

116.3

129.4

132.8

131.5

132.9

135.2

136.0

137.4

138.3

138.8

Capacity utilization (per cent)1 in—
9 Manufacturing........................................................
10 Industrial materials industries...............................

84.2
87.7

73.6
73.6

80.1
80.3

81.2
80.1

80.2
79.1

80.8
80.0

82.1
81.6

82.3
82.0

82.9
82.7

83.3
83.1

83.4
83.0

11 CVmstrnctinn contracts2 ............................................

173.9

162.3

190.2

183.0

203.0

207.0

207.0

250.0

317.0

284.0

12 Nonagricultural employment, total3.. ....................... 119.1
13 Goods-producing, total.......................................... 106.2
14
Manufacturing, total.......................................... 103.1
Manufacturing, production-worker.................. 102.1
15
16 Service-producing................................................... 126.1

116.9
96.9
94.3
91.3
127.8

120.6
100.3
97.5
95.2
131.7

122.0
101.0
98.2
95.7
133.5

122.3
101.3
98.8
96.5
133.8

122.7
101.9
98.9
96.5
134.1

123.6
103.2
99.8
97.6
134.8

124.0
104.1
100.4
98.3
134.9

124.4
104.5
100.8
98.9
135.3

124.7
104.7
100.9
98.9
135.6

125.0
105.0
101.2
99.2
136.0

'239.2 '241.0 '242.1
225.7 '227.9 '229.7
'194.4 '196.0 '198.5

'243.3
'230.8
'200.4

'245.1
'232.0
'201.2

8

18
19

'184.3 '200.0 '220.7 '231.4 '232.1 '235.7
'178.9 '188.5 '208.6 '217.9 '219.3 '222.6
Manufacturing........................................................ '157.6 '157.3 '177.6 '185.1 '186.7 '190.4

If) Disnnsahle nersnnal inrnme... .................................. '180.8

'199.2 '217.8

'235.4

'239.4

21 Retail sales5................................................................

171.2

186.0

206.6

221.2

216.5

222.3

221A

227.2

226.1

223.3

224.5

Prices:6
22 Consumer................................................................
23 Wholesale................................................................

147.7
160.1

161.2
174.1

170.5
182.9

174.3
187.1

175.3
188.0

177.1
190.0

178.2
191.9

179.6
194.3

180.6
195.2

181.8
194.4

182.6
194.8

1 Ratios of indexes of production to indexes of capacity. Based on data
from Federal Reserve, McGraw-Hill Economics Department, and De­
partment of Commerce.
2 Index of dollar value of total construction contracts, including
residential, nonresidential, and heavy engineering, from McGraw-Hill
Informations Systems Company, F. W. Dodge Division.
3 Based on data in Employment and Earnings (U.S. Dept, of Labor).
Series covers employees only, excluding personnel in the Armed Forces.
4 Based on data in Survey o f Current Business (U.S. Dept, of Com­
merce). Series for disposable income is quarterly.

2.11

5 Based on Bureau of Census data published in Survey o f Current

Business (U.S. Dept, of Commerce).

6 Data without seasonal adjustment, as published in Monthly Labor
Review (U.S. Dept, of Labor). Seasonally adjusted data for changes in
the price indexes may be obtained from the Bureau of Labor Statistics,
U.S. Dept, of Labor.
N ote.—Basic data (not index numbers) for series mentioned in notes
3, 4, and 5, and indexes for series mentioned in notes 2 and 6 may also be
found in the Survey o f Current Business (U.S. Dept, of Commerce).

OUTPUT, CAPACITY, AND CAPACITY UTILIZATION
Seasonally adjusted
1976

Series

1977
Q4

Q3

Q2

Ql

1977

1976

Output (1967 = 100)

Q3

Q4

Q1

1977

1976
Q2

Capacity (per cent of 1967 output)

Q3

Q4

Ql

Q2

Utilization rate (per cent)

1 Manufacturing..............................................

131.1

131.5

133.2

137.2

162.3

163.2

164.3

165.6

80.8

80.6

81.1

82.9

2
3

Primary processing...................................
Advanced processing...............................

139.3
126.3

138.9
127.5

136.3
129.4

146.2
132.4

168.8
158.8

170.1
159.6

171.4
160.6

172.9
161.8

82.5
79.6

81.7
79.9

79.5
80.6

84.7
81.8

4 Materials......................................................

132.6

131.8

132.9

137.6

163.1

164.3

165.5

166.6

81.3

80.2

80.3

82.6

Durable goods..........................................
Basic metal...........................................
Nondurable goods...................................
Textile, paper, and chemical...............
Textile...............................................
Paper.................................................
Chemical...........................................
Energy......................................................

130.7
117.1
146.6
151.2
114.4
131.9
175.1
119.9

128.4
107.7
147.0
151.5
lli.7
130.2
177.6
121.5

129.0
107.9
149.3
153.7
111.1
131.7
181.4
121.7

135.3
116.9
154.4
160.0
112.4
134.9
191.2
122.6

166.7
143.7
172.5
180.1
139.8
146.7
211.2
142.7

167.8
144.4
174.1
182.0
140.6
147.9
213.7
143.9

169.0
144.8
175.6
183.6
141.4
148.9
216.2
144.3

170.3
145.1
177.2
185.4
141.9
150.1
218.7
144.7

78.4
81.5
85.0
84.0
81.8
89.9
82.9
84.0

76.5
74.6
84.4
83.2
79.4
88.1
83.1
84.4

76.3
74.5
85.0
83.7
78.6
88.4
83.9
84.3

79.5
80.6
87.1
86.3
79.2
89.9
87.4
84.7

5
6
7
8
9
10
11
12




Manpower
2.12

A47

LABOR FO R C E, EM PL O Y M E N T , A N D U N EM PL O Y M EN T
Thousands o f persons; monthly data are seasonally adjusted. Exceptions noted.

Category

1974

1975

1976

1977

1976
Jan.

Dec.

Feb.

Mar.

Apr.

May

June

Household survey data
1 Noninstitutional population1..............
2 Labor force (including Armed
Forces)1. .....................................
3 Civilian labor force............................
Employment:
4
Nonagricultural industries2........
Agriculture..................................
5
Unemployment:
Number.......................................
6
7
Rate (per cent o f civilian labor
force )....................................
8 Not in labor force...............................

150,827

153,449

156,048

157,176

157,381

157,584

157,782

157,986

158,228

158,456

93,240
91,011

94,793
92,613

96,917
94,773

98,106
95,960

97,649
95,516

98,282
96,145

98,677
96,539

98,892
96,760

99,286
97,158

99,770
97,641

82,443
3,492

81,403
3,380

84,188
3,297

85,184
3,257

85,468
3,090

85,872
3,090

86,359
3,116

86,763
3,260

87,022
3,386

87,341
3,338

5,076

7,830

7,288

7,517

6,958

7,183

7,064

6,737

6,750

6,962

5 .6

8 .5

7 .7

7.8

7.3

7.5

7.3

7.0

6 .9

7.1

57,587

58,655

59,130

59,071

59,732

59,302

59,104

59,094

58,943

58,686

81,395
19,404
842
3,759
4,568
18,189
4,453
15,149
15,031

81,686
19,528
847
3,842
4,575
18,203
4,463
15,182
15,046

81,921
19,599
844
3,867
4,585
18,226
4,481
15,205
15,114

82,056
19,575
859
3,898
4,574
18,237
4,493
15,281
15,139

Establishment survey data
9 Nonagricultural payroll employment3
10 Manufacturing................................
11 Mining.............................................
12 Contract construction.....................
13 Transportation and public utilities.
14 Trade...........................................
15 Finance............................................
16
17 Government....................................

78,413
20,046
694
3,957
4,696
17,017
4,208
13,617
14,177

77,050
18,347
745
3,515
4,499
16,997
4,222
14,008
14,773

79,443
18,958
783
3,593
4,508
17,694
4,315
14,645
14,947

1 Persons 16 years of age and over. Monthly figures, which are based
on sample data, relate to the calendar week that contains the 12th day;
annual data are averages of monthly figures. By definition, seasonality
does not exist in population figures. Based on data from Employment
and Earnings (U.S. Dept, of Labor).
2 Includes self-employed, unpaid family, and domestic service workers.




80*344
19,095
808
3,605
4,553
17,898
4,403
14,936
15,046

80,561
19,211
817
3,561
4,549
17,981
4.423
15,010
15,009

80,824
19,233
823
3,645
4,553
18,067
4,431
15,068
15,004

3 Data include all full- and part-time employees who worked during,
or received pay for, the pay period that includes the 12th day of the
month, and exclude proprietors, self-employed persons, domestic servants,
unpaid family workers, and members of the Armed Forces. Data are
adjusted to the February 1977 benchmark. Based on data from Employ ment and Earnings (U.S. Dept, of Labor).

A48
2.13

Domestic Nonfinancial Statistics □ August 1977
IN D U S T R IA L P R O D U C T IO N

Indexes a n d G ross V alue

Monthly data are seasonally adjusted.

Grouping

1967
pro­
por­
tion

1976
aver­
age

1977

May

June

July

Jan.

Feb.

Mar.

Apr.

May?

June**

Julye

Index(1967 = 100)
MAJOR MARKET
1 Total index.................................................... 100.00

129.8

129.6

130.1

130.7

132.1

133.2

135.2

136.2

137.4

138.3

139.0

2 Products........................................................ 60.71
3 Final products ........................................... 47.82
4
Consumer goods................................... 27.68
5
Equipment............................................ 20.14
6 Intermediate products............................. 12.89
7 M aterials...................................................... 39.29

129.3

129.5

129.8

133.1

133.9

134.9

136.1

137.1

138.0

138.9

136.8
114.3
136.8
130.5

128.9
127.3
137.4
113.5
135.0
130.6

137.8
113.8
135.9
131.1

136.8
114.9
137.6
132.2

140.2
117.8
141.8
130.7

141.0
119.0
141.8
132.4

142.8
119.7
141.9
135.5

143.3
121.8
142.7
136.3

144.0
123.1
144.1
137.8

144.4
124.5
145.4
138.8

145.3
125.6
146.6
139.1

141.5

143.2

144.2

141.8

145.1

146.1

152.4

151.7

152.4

155.0

157.5

Consumer goods

8
9
10
11
12

Durable consumer goods ...........................

7.89

127.3

127.6

127.6

130.8

131.8

133.0

134.3

135.2

136.1

136.9

Automotive products...........................
Autos and utility vehicles................
Autos.............................................
Auto parts and allied goods............

2.83
2.03
1.90
.80

154.8
149.9
132.0
167.2

154.0
153.4
134.4
135.6

156.6
156.6
137.5
156.9

13
14
15
16
17

Home goods.........................................
Appliances, A/C, and T V ...............
Appliances and TV.......................
Carpeting and furniture...................
Misc. home goods............................

5.06
1.40
1.33
1.07
2.59

134.1
115.8
118.6
144.1
139.9

137.2
123.5
126.4
142.6
142.5

137.4
123.8
126.7
142.5
142.6

133.8
110.3
114.1
142.0
143.0

134.6
113.4
116.0
142.7
142.8

137.3
118.5
121.1
145.9
144.0

137.9
124.1
126.5
144.6
142.7

138.5
126.3
129.7
143.8
143.0

140.9
131.0
134.8
148.8
143.2

141.8
132.9
136.5
149.5
143.4

142.7
133.5

18
19
20
21

Nondurable consumer goods .....................

19.79

134.9

135.1

135.1

134.8

138.3

138.9

139.0

140.0

140.7

140.3

140.4

144.5
137.8

144.7

22
23
24
25
26

Nonfood staples...............................
Consumer chemical products
Consumer paper products............
Consumer energy products..........
Residential utilities...................

152.3
180.4
117.4
149.8

153.1

Clothing................................................
Consumer staples.................................
Consumer foods and tobacco..........

4.29
15.50
8.33

126.9
137.2
130.8

132.1
135.8
129.8

127.9
137.1
130.8

155.9
155.9
135.0
156.0

126.3
137.2
131.4

164.0
155.8
136.9
184.9

124.2
142.2
132.9

161.8
152.7
132.8
184.5

124.2
142.9
135.4

178.3
176.1
155.8
184.1

124.0
143.3
136.5

174.8
171.2
150.6
184.0

123.4
144.6
138.0

172.8
167.4
148.5
186.6

125.9
144.8
137.9

178.7
175.8
156.8
186.6

183.7
182.0
161.4
187.8

144.0

7.17
2.63
1.92
2.62
1.45

144.6
166.6
113.3
145.4

142.7
161.4
113.8
145.1
154.7

144.5
165.4
112.3
147.2
153.2

143.9
166.2
112.8
144.1
150.4

153.1
178.5
117.0
154.1

151.6
175.7
113.3
155.3

151.1
175.9
117.4
151.3

Business equipment...................................

12.63

134.6

135.0

6.77
1.44
3.85
1.47

136.1

126.9
174.6
106.4
134.0

127.4
174.9
106.5
135.4

136.9

142.0

143.1

144.5

Industrial equipment...........................
Building and mining equip..............
Manufacturing equipment...............
Power equipment.............................

133.9
195.9
109.0
138.3

136.3
200.5
112.0
136.7

138.5
205.4
112.6
140.4

139.4
206.2
114.2
140.2

140.3
207.4
114.9
140.5

32
33
34
35

Commercial transit, farm equip..........
Commercial equipment...................
Transit equipment............................
Farm equipment...............................

5.86
3.26
1.93
.67

145.5
173.2
103.8
130.6

143.7
169.5
104.2
133.1

143.8
171.4
102.9
128.0

147.7
174.1
107.6
135.3

154.5
185.2
108.4
138.0

154.6
185.2
108.7
137.7

156.6
186.1
113.0
138.8

159.2
189.7
114.5
140.0

160.9
191.1
115.4
144.4

164.0
194.5
118.9
146.0

166.7
196.6
123.0

36

Defense and space equipment...................

7.51

77.9

78.2

78.3

78.0

77.1

78.5

78.3

79.4

79.7

80.2

80.2

Intermediate products
37 Construction supplies..............................
38 Business supplies......................................
39
Commercial energy products..............

6.42
6.47
1.14

132.0
141.5
156.5

130.9
139.0
157.1

131.8
140.1
156.1

133.1
142.1
159.1

136.1
147.3
162.3

135.7
147.8
165.7

136.4
147.4
164.2

137.4
148.0
166.0

138.9
149.2
166.6

140.2
150.5
166.9

141.0

Durable goods materials ...........................

20.35

126.6

126.8

127.0

130.6

126.8

128.0

132.1

134.1

135.5

136.4

136.1

45
46
47
48
49

Nondurable goods materials .....................

10.47

146.4

146.2

151.2
114.4
131.1
175.5

150.9
116.4
131.2
173.9

153.1

153.2

154.8

155.1

155.9

50
51
52
53
54

Containers, nondurable.......................
Nondurable materials n.e.c..................
Energy materials.......................................
Primary energy.....................................
Converted fuel materials.....................

1.70
1.14
8.48
4.65
3.82

142.6
120.0
120.3
107.0
136.4

140.7
123.2
120.6
106.2
138.1

146.6
119.6
120.6
107.5
136.7

142.8
120.4
119.5
106.9
134.6

139.5
122.6
122.6
102.9
146.5

150.7
124.3
120.8
103.1
142.3

148.9
126.1
121.7
107.0
139.6

146.9
124.6
120.8
106.0
138.7

151.7
123.0
122.7
107.0
141.8

152.0
121.0
124.3
110.6
141.0

55
56
57
58

Supplementary groups
Home goods and clothing.......................
Energy, to tal............................................
Products................................................
Materials..............................................

9.35
12.23
3.76
8.48

130.8
129.0
148.8
120.3

134.9
129.3
148.8
120.6

133.0
129.7
149.9
120.6

130.3
128.4
148.7
119.5

129.8
133.0
156.5
122.6

131.3
132.4
158.4
120.8

131.5
132.0
155.2
121.7

131.6
131.7
156.4
120.8

134.1
132.8
155.7
122.7

134.0
133.6
154.9
124.3

Equipment

27
28
29
30
31

Materials

40
41
42
43
44

Durable consumer parts......................
Equipment parts...................................
Durable materials n.e.c........................
Basic metal materials.......................
Textile, paper, and chem. m at............
Textile materials...............................
Paper materials.................................
Chemical materials...........................

For N ote see opposite page.




4.58
5.44
10.34
5.57
7.62
1.85
1.62
4.15

127.9
177.4
106.4
135.3

121.6
133.9
125.0
109.8

123.0
133.0
125.2
113.2

123.1
134.0
125.0
111.3

147.5

151.8
116.1
134.2
174.7

127.5
176.9
107.2
132.6

126.1
136.3
129.8
117.5

146.0

150.5
114.7
132.1
173.8

131.4
187.9
107.8
137.5

121.5
135.1
124.8
104.7

144.6

148.8
110.6
127.6
174.2

133.2
192.9
108.5
139.3

124.1
137.3
124.9
104.8

150.3

154.2
110.4
133.2
181.9

126.8
137.8
131.3
114.1

158.2
112.4
134.3
188.0

152.2
178.1
116.6
152.2

147.0

130.3
140.7
132.2
115.0

158.9
111.8
132.6
190.2

153.0
180.5
118.4
150.8

148.8

132.4
141.7
133.4
117.5
160.3
112.8
136.9
190.8

150.8

133.5
141.9
135.0
118.3
160.9
112.5
135.1
192.6

152.6

135.3
143.1
132.8

161.8

134.7
135.4

Output

2.13

A49

C ontinued

1976

1967

Grouping

SIC
code

pro­
por­
tion

1977

1976

aver­
age

May

June

July

Jan.

Feb.

Mar.

Apr.

May

June**

July*5

Index (1967 = 100)
MAJOR INDUSTRY
1
?
3
4

12.05
6.36
5.69
3.88

131.9
114.1
151.7

n?
in
153
169

o
o
0
8

131.9
114.4
151.2
167.2

130.6
112.5
150.8
167.2

136.1
113.2
161.5

136.4
116.5
158.8

136.2
120.2
154.2

135.2
119.2
153.1

137.3
120.0
156.4

139.1
122.3
157.7

139.1
119.3
161.3

87.95
35.97
51.98

129.4
141.0
121.4

179 6
140 9
171 7

130.2
141.3
122.3

131.0
141.1
124.2

131.5
143.7
123.0

132.9
145.7
124.0

135.2
147.0
126.8

136.0
147.8
127.9

137.4
149.1
129.3

138.3
149.3
130.6

138.8
149.6
131.3

Stone and earth minerals..........

10
11,12
13
14

.51
.69
4 .40
.75

122.8
116.9
112.0
118.3

118 3
119 2
110.8
116 7

118.3
122.7
112.3
116.5

121.6
104.8
112.0
116.5

135.6
95.3
112.0
121.6

132.3
100.8
115.8
124.9

133.8
124.1
117.0
126.1

127.7
118.4
117.5
124.0

124.3
122.4
118.6
123.0

119.0
133.6
120.8
122.7

119.4
120.6

12
13
14
15
16

Nondurable manufactures
Foods.........................................
Tobacco products.....................
Textile mill products.................
Apparel products.......................
Paper and products...................

20
21
22
23
26

8.75
.67
2.68
3.31
3.21

132.0
117.2
135.9
126.1
133.1

131.2
114.5
138.0
130.3
134.0

130.5
115.4
138.1
126.8
139.1

131.8
114.5
136.8
125.6
132.0

135.5
114.8
131.8
123.6
130.6

137.1
117.0
133.0
125.2
136.5

138.5
115.3
133.1
123.5
135.5

139.9
112.1
135.4
123.8
136.5

139.8
105.2
136.0
125.2
140.0

136.3
139.4

139.8

17
18
19
20
21

Printing and publishing............
Chemicals and products............
Petroleum products...................
Rubber & plastic products.......
Leather and products...............

27
28
29
30
31

4.72
7.74
1.79
2.24
.86

120.7
169.4
132.7
199.8
82.0

120.5
166.6
132.7
185.6
91.4

119.7
170.0
135.1
189.1
84.0

122.0
167.6
134.1
191.2
81.1

124.3
172.0
141.0
218.7
74.8

122.4
175.1
145.4
220.4
75 .0

124.3
179.0
145.1
225.6
73.8

123.4
180.6
145.1
226.0
74.7

124.4
182.0
144.1
232.4
76.1

123.9
182.5
142.5
235.1
75.0

124.6

22
23
24
25

Durable manufactures
Ordnance, pvt. & govt..............
Lumber and products................
Furniture and fixtures...............
Clay, glass, stone prod..............

19,91
24
25
32

3.64
1.64
1.37
2.74

71.7
125.1
132.8
135.8

71.4
123.0
131.0
133.9

73.1
120.3
130.1
136.1

74.0
124.6
131.6
137.2

70.8
132.7
135.1
137.3

72.4
132.2
137.1
139.0

72.3
132.1
135.1
143.7

73.8
131.6
135.4
144.5

73.8
133.0
137.5
145.5

73.6
133.1
139.4
147.2

74.5

26
27
28
29
30

Primary metals...........................
Iron and steel.........................
Fabricated metal p ro d..............
Nonelectrical machinery...........
Electrical machinery.................

33
33,12
34
35
36

6.57
4.21
5.93
9.15
8.05

108.0
104.4
123.3
134.7
131.7

113.2
110.7
121.4
134.0
131.8

111.5
110.0
124.0
133.5
132.0

116.9
115.3
124.6
135.0
131.0

100.0
89.8
125.7
139.5
134.0

100.4
91.3
126.0
139.4
137.6

108.3
97.9
127.5
140.4
137.6

112.3
104.0
127.6
142.5
139.6

116.8

128.0
143.2
141.8

115.6
109.3
130.2
144.8
143.2

130.5
146.4
143.9

31
32
33
34
35

Transportation equip................
Motor vehicles & pts.............
Aerospace & misc. tr. e q . . . .
Instruments................................
Miscellaneous m frs...................

37
371
37,29
38
39

9.27
4.50
4.77
2.11
1.51

110.6
140.7
82.2
148.2
143.5

112.9
144.3
83.3
149.0
145.5

112.6
146.5
80.7
149.5
145.9

113.3
148.5
80.3
151.3
148.5

113.5
145.5
83.4
153.7
147.8

113.4
145.4
83.3
157.0
147.9

120.5
161.2
82.3
156.9
147.4

119.8
158.1
83.8
157.8
145.8

120.1
157.7
84.8
157.3
147.9

123.3
162.9
86.0
158.0
148.1

124.2
167.0
84.1
160.0
148.8

6
7
8
9
10
11

Durable......................................
Mining
Metal mining.............................

111.0

139.5

M ilo '

112.2

Gross value (billions of 1972 dollars, annual rates)
MAJOR MARKET
Products.

........................... .

37
38
39

Final products .............................

1507.4
1390.9
1277.5
1113.4

550.6
426.2
302.9
123.5

551.5
427.5
303.7
123.7

552.4
428.3
305.5
123.1

552.6

427.8
302.2
125.8

564.2
436.5
309.3
127.2

570.3
441.2
312.6
128.6

578.1
449.0
317.6
131.7

579.4
449.0
316.8
132.3

585.7
453.9
319.5
134.5

588.8
456.4
320.3
135.9

593.8
460.0
321.7
138.1

40

Intermediate products.................j

1116.6

124.3

123.7

124.1

124.7

127.8

128.6

129.3

130.6

131.8

132.7

133.8

Consumer goods....................
Equipment.............................

1 1972 dollars.
N ote.—Published groupings include some series and subtotals not shown
separately. For summary description and historical data, see Bulletin for
June 1976, pp. 470-79. Availability of detailed descriptive and historical
data will be announced in a forthcoming Bulletin.




A50

Domestic Nonfinancial Statistics □ August 1977

2.14 HOUSING AND CONSTRUCTION
Monthly figures are at seasonally adjusted annual rates. Exceptions noted.
1976
Item

1974r

1975 r

1976r

1977

Dec.

Jan . r

F eb.'

M ar.r

A pr.'

M ayr

June

Private residential real estate activity
(thousands of units)
NEW UNITS
1 Permits authorized.........................
2
1-family....................................
3 2-or-more-family.......................

1,074

927
669
278

1,281

644
431

4 Started ...........................................

1,338

1,160

1,540

892
268

1,163
377

7 Under construction, end o f period 1
8 1-family.....................................
9 2-or-more-family.......................

1,189

1,003

1,157

5
6

1-family......................................
2-or-more-family.......................

10 Completed......................................
11
1-family.....................................
12 2-or-more-family.......................

888
450
516
673

1,692

931
760

14
15
16
17
18

1,297

866
430

656
501

1,362

1,026
336

1,514

1,053
461

1,889

1,333

930
403

1,384

1,526
1,060

1,687
1,188
499

1,605

1,615

1,602

466

1,802

2,089

1,880

1,954

1,833

1,324
565

1,006
378

1,424
378

1,192
686

1,198
692

1,215

507

506

710
505

1,444

,416

1,078
366

,103
313

1,637

1,503
586

1,237

732
505

1,707

1,242
395

1,236
471

1,051
554
1,413

1,077
538
1,467

1,269
749

1,308
774

1,532

1,485

520

1,219
313

1,089
513
1,383

534

1,137
348

252

252

854
435

746
442

720
441

47.4
42.1

45.4
42.9

48.9
43.3

49.4
43.9

50.7

52.6

51.6

54.7

54.6

54.7

3,470

3,190

3,080

3,410

3,300

3,450

3,420

39.0
43.3

39.6
44.0

40.7
45.1

41.0
45.5

42.0
46.5

42.2
46.8

43.4
47.7

213

250

248

258

275

501
407

544
383

639
433

808
431

827
431

893
434

35.9
36.2

39.3
38.9

44.2
41.6

45.9
41,6

45.5
41.9

38.9

42.5

48.1

50,6

2,272

2,452

3,002

32.0
35.8

35.3
39.0

38.1
42.2

13 Mobile homes shipped.................
Merchant builder activity in
1-family units:
Number sold.................................
Number for sale, end of period1..
Price (thous. of dollars)2
Median:
Units sold...............................
Units for sale.........................
Average:
Units sold...............................

531
472

895
386

256

EXISTING UNITS (1-family)
19 Number sold.................................
Price of units sold (thous. of
dollars):2
20 Median.......................................
21
Average.....................................

Value of new construction 3
(millions of dollars)
CONSTRUCTION
22 Total put in place......................

138,499

134,293

147,481

155,425

148,393

157,117

163,346

166,147

170,381

170,979

23 Private .......................................
24 Residential.............................
25 Nonresidential, to tal.............
Buildings:
26
Industrial........................
27
Commercial....................
28
Other...............................
29
Public utilities and other..

100,165

93,624

109,499

121,153

116,410

122,634

127,942

131,961

72,378
50,256

76,209
51,733

129,963

132,218

7,902
15,945
5,797
20,144

8,017
12,804
5,585
20,746

7,182
12,757
6,155
22,886

6,559
12,796
6,507
24,197

6,157
12,537
6,068
24,863

6,262
12,542
6,061
25,391

7,162
13,677
5,85025,044

7,279
13,851
6,271
24,586

7,184
13,760
6,077
24,445

7,065
14,789
6,426
23,851

38,333

40,669

37,982

34,273

31,983

34,483

35,403

36,184

38,420

38,761

30 Public .........................................
31 Military..................................
32 Highway.................................
33 Conservation and development. . .
34 Other4....................................

50,377
49,788

1,188
12,066
2,740
22,339

46,472
47,152

1,392
10,861
3,256
25,160

60,519
48,980

1,508
9,756
3,722
22,996

1 Not at annual rates.
2 Not seasonally adjusted.
3 Value of new construction data in recent periods may not be strictly
comparable with data in prior periods due to changes by the Bureau of
the Census in its estimating techniques. For a description of these changes
see Construction Reports (C-30-76-5), issued by the Bureau in July 1976.
4 Beginning Jan. 1977 Highway imputations are included in Other.




71,094
50,059

1,474
8,162
3,651
20,986

66,785
49,625

1,498
5,975
3,446
21,064

1,552
7,244
4,037
21,650

1,452
8,140
3,776
22,035

77,976
51,987

1,494
8,984
4,092
21,614

80,495
51,466

1,640

80,087
52,131

1,564

N ote.—Census Bureau estimates for all series except (a) mobile
homes, which are private, domestic shipments as reported by the Manu­
factured Housing Institute and seasonally adjusted by the Census Bureau,
and (b) sales and prices of existing units, which are published by the
National Association of Realtors. All back and current figures are avail­
able from originating agency. Permit authorizations are for 14,000
jurisdictions reporting to the Census Bureau.

Prices
2.15

A51

C O N S U M E R A N D W H O L E S A L E P R IC E S
Percentage changes based on seasonally adjusted data, except as noted.
12 months to—
Item

1976
June

1977
June

3 months (at annual rate) to—
1977

1976
Sept.

1 month to—

Dec.

Mar.

1977

June

Feb.

Mar.

Apr.

May

June

Index
level
June
1977
(1967
= 100)1

Consumer prices
1 AH items........................................................

5.9

6.9

5.3

4.2

10.0

8.1

1.0

.6

.8

.6

.6

181.8

2 Commodities .................................................
3 Food..........................................................
4 Commodities less food............................
5
Durable.................................................
6
Nondurable..........................................

4 .6

3.7
5.1
6.1
4.4

6 .2

3 .9

3.4

10.4

7.4

1.2

.5

.8

.5

175.4

7 Services .........................................................
8 R ent..........................................................
9 Services less rent......................................

5.5
8.7

5.9
8.2

5.4
7.7

5.3
5.4

6.3
10.4

Other groupings:
All items less food1.................................
All items less shelter i ..............................
Homeo wnership i .....................................

6.6
6.1
5.1

6.8
6.9
6.9

7.4
5.6
8.0

5.3
4.3
1.2

6.9
9.4
9.1

10
11
12

8 .3

7.0
5.7
5.9
5.5
7.9

1.6
5.5
5.0
6.0
7.5

5.7
6.0
5.4

14.6
7.4
10.5
5.5

5.1

9 .8

12.7
4.2
2.5
5.2

2.0
.7
.9
.6

.6
.4
.6
.3

1.5
.4
.5
.3

.7
.4
.2
.5

.5
.8
.2
- .1
.4

6.3
9.7

9 .4

.6
.3
.7

.5
.8

.8

.8
.1

.8

.7
.4
.7

.S
.5
.8

152.9
201.1

7.8
8.4
9.6

.6
1.1
.7

.6
.6
.6

.7
.8
.9

.6
.5
.6

.6
.7
.8

178.4
179.7
203.9

1.1

1.1

.4

193.6
165.4
163.9
166.6

193.7

Wholesale prices
13 All commodities........... ................................

5.5

14 Farm products , and processed foods and
feed s .......................................................
15 Farm products.........................................
16 Processed foods and feeds.......................

2.8

6.1

3.5

7.1

10.2

3.6

.9

194.4

-1 1 .9
-1 1 .8

6 .6

5.8
6.5

26.0
15.6

-2 1 .6
10.8

2.2
1.8

2.5
1.9

3.4
2.5

- 2 .3
1.8

- 6 .8
- 1 .7

191.5

- 1 .9
4.6

- 12.0

-3 .6

5.5
1.2

6 .3

7 .2

8.0

7.6

7.9

5 .3

.6

.8

.6

.4

.3

194.6

2 .2

19.1

-2 .5

2 .0

2.1

- .7

2 .9

.3

192.7
190.1

17 Industrial commodities.................................
Materials, supplies, and components of
which:
18
Crude materials2..................................
19
Intermediate materials 3.......................
Finished goods, excluding foods:
20
Consumer..............................................
21
Durable.............................................
22
Nondurable.......................................
23
Producer................................................

9.9
6.2

12.5
7.0

10.6
8.3

21.6
7.1

21.9
8.0

- 2 .0
4.7

4.0
.6

2.3
.9

.3
.6

.8
.3

- 1 .6
.2

202.1

5.7
4.6
6.4
6.4

7.0
5.4
8.0
6.4

7.7
5.1
9.1
4.7

5.2
3.3
6.5
9.5

8.5
7.0
9.5
5.3

6.5
6.0
7.0
6.3

.3
.5
.2
.5

.8
.4
1.0
.4

.7
.7
.7
.6

.5
.4
.5
.6

.4
.3
.5
.4

171.9
151.3
185.8
183.1

Memo:
24 Consumer foods...........................................

1.0

4.7

-1 3 .1

8.4

12.7

13.8

2.0

1.1

2.5

2.1

- 1 .3

190.7

1 Not seasonally adjusted.
2 Excludes crude foodstuffs and feedstuffs, plant and animal fibers,
oilseeds, and leaf tobacco.




219.6

3 Excludes intermediate materials for food manufacturing and manufactured animal feeds.
Source.—Bureau of Labor Statistics.

A52

Domestic Nonfinancial Statistics □ August 1977

2.16 GROSS NATIONAL PRODUCT AND INCOME
Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates.
1976
Account

1974

1975

1977

1976
Q2

Ql

Q3

Q4

Ql

Q2p

Gross national product
1,412.9

1,528.8

1,706.5

1,651.2

1,691.9

1,727.3

1,755.4

1,810.8

1,869.0

Personal consumption expenditures...................

889.6

122.0
376.3
391.3

980.4

1,094.0

1,056.0

1,078.5

1 , 102.2

Durable goods..............................................
Nondurable goods........................................
Services..........................................................

1,139.0

1,172.4

1,194.0

6
7
8
9
10
11
12

Gross private domestic investment....................

214.6

Fixed investment...........................................
Nonresidential............................................
Structures...............................................
Producers’ durable equipment..............
Residential structures...............................
Nonfarm................................................

205.7

271.8

293.0

13
14

Change in business inventories....................
Nonfarm ....................................................

8.9
10.8

15
16
17

Net exports o f goods and services.....................

Exports..........................................................
Im ports..........................................................

137.9
131.9

147.3
126.9

162.9
155.1

153.9
143.7

160.6
150.4

168.4
160.6

18
19
20

Govt, purchases o f goods and services ..............

302.7

338.9

361.4

353.6

358.9

363.0

130.2
232.7

134.2
235.8

136.3
238.5

1,693.1

1,636.7

1,673.7

1,705.8

1
2
3
4
5

By source:

Federal...........................................................
State and local..............................................

21
22
23
24
25
26

By major type of product:
Final sales, total................................................
Goods .............................................................
Durable goods...........................................
Nondurable................................................
Services..........................................................
Structures.....................................................

27
28
29

Change in business inventories........................
Durable goods...............................................
Nondurable goods.........................................

30

150.6

54.5
96.2
55.1
52.7

6 .0

111.1
191.5

132.9
409.3
438.2

158.9
442.7
492.3

189.1

243.3

149.1

161.9

-1 1 .5
-1 5 .1

13.3
14.9

200.6
52.9
96.3
51.5
49.5

2 .0

123.3
215.6

1,404.0

1,540.3

638.6

686.2

230.0
55.8
106.1
68.0
65.7

7.8

130.1
231.2

764.2

153.3
430.4
472.4

231.3

156.7
437.1
484.6

159.3
444.7
498.2

166.3
458.8
513.9

177.0
466.6
528.8

179.1
475.3
539.6

244.4

254.3

243.4

155.4

159.8

164.9

167.6

14.5
15.9

18.3
20.4

21.5
22.0

- .9
1.4

13.8
14.1

19.7
20.4

3 .0

- 8.2
170.4
178.6

175.4
183.5

374.9

390.1

1,756.3

1,797.0

1,849.3

774.7

805.9

216.8
54.7
100.8
61.4
58.9

10.2

127.6
225.9

744.6

232.8

226.1

56.0
109.0
67.8
65.7

55.8
104.0
66.3
64.1

10.2

7 .9

128.5
230.4

761.7

746.0

244.3

57.0
110.6
76.7
74.3

168.5
165.6
370.0

258.0
177.0

57.9
119.2
81.0
78.5

273.3

183.3

60.2
123.1
90.0
87.6

- 8.1

143.3
246.7

831.3

247.8
390.8
626.8
147.4

258.2
428.0
699.2
143.5

303.4
460.9
782.0
160.2

285.6
459.0
751.6
155.0

301.9
459.7
770.8
159.4

313.4
464.1
791.8
159.6

312.6
460.6
813.8
166.9

334.4
471.5
833.7
171.2

345.0
486.3
851.5
186.2

8.9
7.1
1.8

-1 1 .5
- 9 .2
- 2 .2

13.3
4.1
9.3

14.5
- 2 .0
16.6

18.3
7.0
11.2

21.5
10.7
12.4

-.9
.6
- 3 .1

13.8
7.8
6.0

19.7
9.3
10.5

1,217.8

1,202.1

1,274.7

1,256.0

1,271.5

1,283.7

1,287.4

1,311.0

1,331.6

National income
31 Total...................................................................

1,136.0

1,217.0

1,364.1

1,321.0

1,353.9

1,379.6

1,402.1

1,450.2

32 Compensation of employees............. . .............
33
Wages and salaries ........................................
34
Government and Government enterprises
35
O ther..........................................................
36 Supplement to wages and salaries .................
37
Employer contributions for social
insurance............................................
38
Other labor income...................................

875.8

930.3

1,036.3

999.6

1,024.9

1,046.5

1,074.2

1,109.9

764.1

805.7

891.8

861.5

882.4

900.2

188.2
712.0

192.5
730.7

951.3

194.8
756.4

981.0

138.1

142.5

146.3

150.9

158.6

163.8

182.7
678.8

185.4
697.0

923.2

1,144.8

160.0
604.1

175.4
630.3

187.2
704.6

111.7

124.6

144.5

197.2
783.7

56.1
55.6

59.8

64.9

68.6
75.9

66.4
71.7

68.0

74.5

69.1
77.3

70.9
80.0

75.4
83.2

77.1

90.4
68.8

86.2
70.0

88.7
72.0

98 .7
77.4

21.2

86.7

39 Proprietors’ income 1..........................................
40 Business and professional1...........................
41 Farm 1............................................................

86 .4
60.9

23.2

88.0
69.4
18.6

86.9

25.4

86.0
62.8

21.6

16.2

16.6

95.1
74.3
20.7

42 Rental income of persons2...............................

21.4

22.3

23.3

23.0

22.9

23.3

24.1

24.5

25.3

43 Corporate profits1............................................
44 Profits before tax3........................................
45 Inventory valuation adjustment...................
46 Capital consumption adjustment.................

83.6
126.9
- 4 0 .4
- 2 .9

99.3
123.5
- 1 2 .0
-1 2 .2

128.1
156.9
-1 4 .1
-1 4 .7

126.5
153.5
-1 2 .4
-1 4 .6

129.2
159.2
-1 5 .5
- 1 4 .6

133.5
159.9
-1 1 .7
-1 4 .7

123.1
154.8
-1 6 .9
-1 4 .8

125.4
161.7
- 2 0 .6
- 1 5 .6

- 1 7 .8
- 1 5 .9

47 Net interest........................................................

69.0

79.1

88.4

85.0

86.5

90.1

92.0

95.3

98.7

1 With inventory valuation and capital consumption adjustments.
2 With capital consumption adjustments.




66.9
20.0

3 For after-tax profits, dividends, etc., see Table 1.50.
Source.—Survey o f Current Business (U.S. Dept, of Commerce).

N ation al Incom e Accounts
2.17

A 53

P E R S O N A L IN C O M E A N D S A V IN G
Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted.

Account

1974

1975

1977

1976

1976
Ql

Q2

Q3

Q4

Ql

Q2 p

1,520.1

Personal income and saving
1 Total personal income...........................................

1,154.9

1,253.4

1,382.7

1,338.1

1,366.7

1,393.9

1,432.2

1,476.8

2 Wage and salary disbursements.............................
3 Commodity-producing industries....................
4
Manufacturing...........................................
5 Distributive industries.......................................
6 Service industries..............................................
7 Government and government enterprises.......

764.6

805.7

891.8

861.5

882.4

900.2

923.2

951.3

274.6
211.4
184.3
145.1
160.5

275.0
211.0
195.4
159.9
175.4

308.4
238.2
217.1
179.0
187.2

298.6
230.6
208.2
172.0
182.7

306.7
236.7
213.7
176.6
185.4

310.8
240.2
220.2
180.9
188.2

317.7
245.1
226.4
186.7
192.5

328.9
255.4
234.5
193.0
194.8

981.0

345.1
265.6
240.7
198.0
197.2

8 Other labor income..............................................

55.6

64.9

75.9

71.7

74.5

77.3

80.0

83.2

86.7

9 Proprietors' income 1..............................................
10 Business and professional i...............................
11 Farm 1................................................................

86.2

60.9
25.4

86.0

62.8
23.2

88.0

86.9

90.4

86. 2

68.8
21.6

70.0
16.2

88.7

72.0
16.6

95.1

74.3
20.7

98 .7
11A

12 Rental income of persons2...................................

21.4

22.3

23.0

22.9

23.3

24.1

24.5

25.3

69.4
18.6
23.3

66.9
20.0

21.2

13 Dividends..............................................................

31.0

32.4

35.8

33.6

35.0

36.0

38.4

38.5

40.3

14 Personal interest income.......................................

103.0

115.6

130.3

125.0

127.5

132.2

136.4

140.3

145.3

15 Transfer payments................................................
16 Old-age survivors, disability, and health
insurance benefits......................................

140.8

176.8

192.8

190.3

188.7

194.3

198.0

203.5

203.9

70.1

81.4

92.9

88.1

89.3

95.8

98.4

99.9

101.9

17

Less: Personal contributions for social
insurance....................................................

47.7

50.4

55.2

53.9

54.8

55.6

56.6

59.6

60.8

18 Equals: Personal income...................................

1,154.9

1,253.4

1,382.7

1,338.1

1,366.7

1,393.9

1,432.2

1,476.8

1,520.1

L ess: Personal tax and nontax paym ents.. . .

170.3

169.0

196.9

184.8

192.6

200.6

209.5

224.4

224.9

20 Equals : Disposable personal income................

19

984.6

1,084.4

1,185.8

1,153.3

1,174.1

1,193.3

1,222.6

1,252.4

1,295.2

21

Less: Personal outlays.....................................

913.0

1,004.2

1,119.9

1,080.9

1,103.8

1,128.5

1,166.3

1,201.0

1,223.6

22 Equals: Personal saving.....................................

71.7

80.2

65.9

72.4

70.3

64.8

56.3

51.4

71.6

M emo items :
Per capita (1972 dollars):
Gross national product.....................................
Personal consumption expenditures................
Disposable personal income.............................
Saving rate (per cent)...........................................

5,746
3,589
3,973
7.3

5,629
3,629
4,014
7.4

5,924
3,817
4,137
5.6

5,853
3,761
4,107
6.3

5,916
3,794
4,130
6.0

5,961
3,820
4,135
5.4

5,966
3,892
4,177
4.6

6,064
3,934
4,202
4.1

6,148
3,946
4,280
5.5

23
24
25
26

Gross saving
27 Gross private saving..............................................

209.5

259.4

272.5

276.0

275.4

277.2

261.6

262.9

28
29
30

Personal saving..................................................
Undistributed corporate profits1.....................
Corporate inventory valuation adjustment....

71.7
.2
-4 0 .4

80.2
16.7
-1 2 .0

65.9
-1 4 .1

21.6

72.4
29.8
-1 2 .4

70.3
28.0
-1 5 .5

64.8
31.6
-1 1 .7

56.3
20.8
-1 6 .9

51.4
22.5
-2 0 .6

- 1 7 .8

31
32
33

Capital consumption allowances:
Corporate......................................................
Noncorporate................................................
Wage accruals less disbursements...................

84.6
53.1

101.7
60.8

111.8
67.2

108.7
65.1

110.4
66.6

112.9
68.0

115.2
69.2

117.6
71.4

120.0
73.1

-3 .2

- 6 4 .3

-3 5 .6

- 4 7 .1

-3 3 .3

-3 2 .4

-2 9 .4

242.5

233.1

246.5

252.8

254.7

275.6

244.4
2.2

254.1
- 1 .5

243.3
-5 .9

271.8
-1 7 .1

293.0
- 1 7 .4

4.5

8.0

5.3

3.3

34 Government surplus, or deficit ( —), national
income and product accounts .........................
35 Federal..............................................................
36 State and local..................................................

-1 0 .7
7.6

-7 0 .2
5.9

- 5 4 .0
18.4

-6 0 .3
13.3

-4 6 .2
12.9

-5 3 .5
21.1

-5 5 .9
26.5

71.6

- 1 1 .5

-3 8 .8
27.3

37 Capital grants received by the United States,
net..................................................................
38 Investment.............................................................
39 Gross private domestic.....................................
40 Net foreign........................................................

214.6
- 4 .5

210.1

201.0

41 Statistical discrepancy..........................................

5.8

5.9

189.1
11.8

1 With inventory valuation and capital consumption adjustments.
2 With capital consumption adjustment.




243.3
- .9

231.3
1.8

5.5

4.2

237.5

Source.—Survey o f Current Business (U.S. Dept, of Commerce).

A54
3.10

International Statistics □ August 1977
U .S. IN T E R N A T IO N A L T R A N S A C T IO N S

Sum m ary

Millions o f dollars; quarterly data are seasonally adjusted except as noted.1
1976
Item credits or debits

1974

1975

1977

1976

Ql

Q2

Q3

Q4

Ql

1 Merchandise exports.................
2 Merchandise imports................
3 Merchandise trade balance2.

98,306
103,673
-5 ,3 6 7

107,088
98,043
9,045

114,700
123,917
-9,217

26,998
28,324
-1 ,3 2 6

28,379
29,914
-1 ,5 3 5

29,603
32,387
-2 ,7 8 4

29,720
33,292
-3 ,5 7 2

29,476
36,456
-6 ,9 8 0

4 Military transactions, net.........
5 Investment income, net.............
6 Other service transactions, n et..

-2 ,0 8 3
8,744
865

-8 7 6
5,954
2,042

366
9,808
2,743

-6 5
2,437
523

-3 9
2,280
839

235
2,667
781

235
2,424
598

82
3,170
556

7 Balance on goods and services3 .
8
9

Remittances, pensions, and other transfers.
U.S. Govt, grants (excluding military).......

10 Balance on current account.
11 Not seasonally adjusted..
12 Change in U.S. Govt, assets, other than official reserve
assets, net (increase, —) ..................................................

2,160

16,164

3,699

1,569

1,545

889

-3 1 5

-3 ,1 7 2

-1 ,7 1 4
-5,4 7 5

-1 ,7 1 9
-2 ,8 9 3

-1 ,8 7 8
-3 ,1 4 6

-485
-5 4 4

-459
-556

-461
-1,4 7 5

-473
-572

-518
-627

-5 ,0 2 8

11,552

- 1 ,3 2 4

540
1,475

530
661

-1 ,0 3 7
-3 ,7 8 5

- 1 ,3 6 0
325

- 4 ,3 1 7
-3 ,6 2 2

365

-3 ,4 6 3

-4,213

-723

-9 4 4

-1,405

- 1,142

-895

-1,434

-6 0 7

- 2,530

-773

-1,578

-4 0 7

228

-388

-172
-1,2 6 5
3

-6 6
-466
-7 5

-7 8
-2 ,2 1 2
-240

-4 5
-237
-491

14
-798
-794

-1 8
-716
327

-2 9
-461
718

-3 8 9
59

18 Change in U.S. private assets abroad (increase, —).

-2 5 ,9 6 0

-27,478

-3 6 ,2 1 6

-9 ,2 5 4

-7 ,2 5 7

-6,597

-1 3 ,1 0 8

1,734

19
20
21

Bank-reported claims.

-1 9 ,5 1 6

-1 3 ,5 3 2

-3 ,6 3 0

-978
-2,394

-9 ,1 4 8

-4 8 0
-8 ,6 6 8

2,374

-2 ,1 2 4
-18,780

-289
-3,341

-4 ,7 5 4

-3 ,3 7 2

-2 ,3 5 7
-11,175

-2 0 ,9 0 4

22
23
24
25
26

Nonbank-reported claims ........................

-3 ,2 2 1

-1 ,4 4 7

- 1 ,9 8 6

-7 3 8

-1 ,0 0 4

723

-9 6 7

-3 5 9

13 Change in U.S. official reserve assets (increase, —).

14
15
16
17

G old........................................................................
SDR’s .....................................................................
Reserve position in IM F .......................................
Foreign currencies..................................................

Long-term.............
Short-term............

Long-term............................................
Short-term...........................................
U.S. purchase of foreign securities, net.
U.S. direct investments abroad, n e t.. . .

27 Change in foreign official assets in the United States (in­
crease, + ) .........................................................................
28
U.S. Treasury securities......................................................
29 Other U.S. Govt, obligations.............................................
30 Other U.S. Govt, liabilities4..............................................
31
Other U.S. liabilities reported by U.S. banks...................
32 Other foreign official assets5..............................................
33 Change in foreign private assets in the United States (in
crease,-]-)........................................................................
34
35
36
37
38
39
40
41
42

U.S. bank-reported liabilities ..............................................

Long-term.........................................................................
Short-term........................................................................
U.S. nonbank-reported liabilities .........................................
Long-term.........................................................................
Short-term.......................................................................
Foreign private purchases of U.S. Treasury securities, n et,
Foreign purchases of other U.S. securities, n et................
Foreign direct investments in the United States, net.......

43 Allocations of SDR’s ..............................................................
44 Discrepancy ..............................................................................
45 Owing to seasonal adjustments..........................................
46 Statistical discrepancy in recorded data before seasonal
adjustment....................................................................

47
48
49
50

M emo items :
Changes in official assets:
U.S. official reserve assets (increase,—) .............................
Foreign official assets in the U.S. (increase,-f).................
Changes in OPEC official assets in the U.S. (part of line 27
above)...............................................................................
Transfers under military grant programs (excluded from
lines 1, 4, and 9 above)...................................................

-1,183
-18,333
-474
-2,747
-1 ,8 5 4
-1 ,3 6 8

-541
3,815

- 2 , A ll

145
-1,149
-1,357
-142

66
657
-2,743
-1,205

-1 0
-957
-2,171
-822

38
-3 9 7
-6 4 9
-5 3 2

10
-1 ,9 9 6
-8 ,7 3 0
-4 ,5 9 6

-191
-547
-2 ,4 6 0

6,960

3,847

6,977

5,852

9,333
566
4,938
893
2,215

1,998
68
1,524
-412
669

4,051

4,408
905
1,701
-2,158
2,104

17,945

3,070

3,282
902
724
5,818
254

22,631

7,376

16,575

3,009

3,333

5,131

5,102

-2,7 8 5

16,017
9

628

10,982

672

3,528

1,774

5,008

-5 ,2 4 9

111
161

-2 3 8

-2 9 7

—242

-241
-5 6
3,026
68
561

-311
69
-8 8
21
403

-4 3 3

10,981

16,008
1,844

-280
908
240

175
10,807
-6 1 6

-105

2,166
316
743
135
691

-1 6
3,544

1,260
66
1,819
-599
524

75
1,699

3,909
116
852
1,769
331

221
4,787

4,980
99
1,005
-405
173

96
-5,345

-9 0
1,934
697
378
3,695

334
-9 4
2,590
2,503
1,414

-947
331
2,783
1,250
2,176

-233
394
437
1,030
709

-162
-7 6
-592
131
504

- 1 ,5 5 5

5.660

9.763

3,355
111

1,865

129

-2,622

1,244

3,303

1,780

470

-1,555

5.660

9.763

2,638

1,736

3,866

1,523

329

-1 ,4 3 4
10,257

-607
5,259

-2 ,5 3 0
13,007

-773
2,323

-1,578
3,308

-407
1,251

228
6,125

-388
4,847

10,841

7,092

9,324

3,482

3,263

1,774

805

3,178

1,817

2,217

386

50

86

156

94

32

1 Seasonal factors are no longer calculated for lines 13 through 50.
2 Data are on an international accounts (IA) basis. Differs from the
Census basis primarily because the IA basis includes imports into the
U.S. Virgin Islands, and it excludes military exports, which are part of
Line 4.
3 Differs from the definition of “net exports of goods and services” in
the national income and product (GNP) account. The GNP definition




-432
-1,0 1 5
-6 ,2 3 6
-6 ,2 6 4

-377
-4,377

-5 8

-2 3 8
-195
1,191
879
827
799

excludes certain military sales to Israel from exports and excludes U.S.
Govt, interest payments from imports.
4 Primarily associated with military sales contracts and other transac­
tions arranged with or through foreign official agencies.
5 Consists of investments in U.S. corporate stocks and in debt securi­
ties of private corporations and state and local governments.
Note.—Data are from Bureau of Economic Analysis, Survey o f Cur­
rent Business (U.S. Department of Commerce).

Trade and Reserve Assets
3.11

A55

U .S. F O R E IG N T R A D E
Millions o f dollars; monthly data are seasonally adjusted.

1976
Item

1974

1975

1 EXPORTS of domestic and foreign
merchandise excluding grant-aid
shipments.........................................

97,908

2 GENERAL IMPORTS including
merchandise for immediate con­
sumption plus entries into bonded
warehouses......................................

100,252

3 Trade balance......................................

1976

1977

Dec.

Jan.

Feb.

Mar.

Apr.

May

June

107,130 ’'114,802

10,410

9,599

9,808

10,072

9,970

10,395

10,112

96,115 r120,678

11,020

11,269

11,674

12,459

12,593

11,616

12,932

-2 ,3 4 4 +11,014 ' —5,876

-6 1 0

-1 ,6 7 0

-1 ,8 6 6

-2 ,3 8 7

-2 ,6 2 3

-1 ,2 2 1

-2 ,8 2 0

Note.—Bureau of Census data reported on a free-alongside-ship
(f.a.s.) value basis. Before 1974 imports were reported on a customs
import value basis. For calendar year 1974 the f.a.s. import value was
$100.3 billion, about 0.7 per cent less than the corresponding customs
import value. The international-accounts-basis data shown in Table 3.10
adjust the Census basis data for reasons of coverage and timing. On the
export side , the largest adjustments are: (a) the addition of exports to
Canada not covered in Census statistics, and (b) the exclusion of military

exports (which are combined with other military transactions and are
reported separately in the “service account” ). On the import side, the
largest single adjustment is the addition of imports into the Virgin Islands
(largely oil for a refinery on St. Croix), which are not included in Census
statistics.
Source.—U.S. Dept, of Commerce, Bureau of the Census, Summary
of U.S. Export and Import Merchandise Trade (FT 900).

3.12 U.S. RESERVE ASSETS
Millions of dollars, end of period
1977
Type

1974

1975

1976

Jan.

Feb.

Mar.

Apr.

May**

Junep

July
3 18,927

1 Total....................................................

15,883

16,226

18,747

19,087

19,122

19,120

18,868

19,195

19,156

2 Gold stock, including Exchange
Stabilization F und1........................

11,652

11,599

11,598

11,658

11,658

11,658

11,658

11,658

11,658

11,658

3 Special Drawing Rights2...................

2,374

2,335

2,395

2,375

2,383

2,389

2,384

2,470

2,486

3 2,498

4 Reserve position in International
Monetary Fund...............................

1,852

2,212

4,434

4,682

4,819

4,812

4,720

4,972

4,920

34,716

5 Convertible foreign currencies..........

5

80

320

372

262

261

106

95

92

55

1 Gold held under earmark at F.R. Banks for foreign and international
accounts is not included in the gold stock of the United States; see Table
3.24.
2 Includes allocations by the International Monetary Fund of SDR’s
as follows: $867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971;
and $710 million on Jan. 1, 1972; plus net transactions in SDR’s.
3 Beginning July 1974, the IM F adopted a technique for valuing the




SDR based on a weighted average of exchange rates for the currencies
of 16 member countries. The U.S. SDR holdings and reserve position in
the IM F also are valued on this basis beginning July 1974. At valuation
used prior to July 1974 (SDR1 = $1.20635) total U.S. reserve assets
at end of July amounted to $19,003; SDR holdings, $2,572, and reserve
position in IMF, $4,718.

A56
3.13

International Statistics □ August 1977
S E L E C T E D U.S. L IA B IL IT IE S T O F O R E IG N E R S
Millions o f dollars, end o f period
1974
1975

Holder, and type o f liability

1977

1976

Jan.

Feb.

Mar.

Apr.

May*5

June^

1 Total...................

119,240

119,164

126,552

151,329

147,913

149,008

151,903

157,020

161,181

163,681

2 Foreign countries.

,115,918

115,842

120,929

142,846

139,994

141,023

143,806

149,306

152,490

155,497

76,801

76,823

80,712

91,900

93,046

93,858

96,782

99,748

101,526

102,967

53,057

53,079

49,530

53,528

54,515

54,796

56,040

57,486

58,268

57,354

5,059
16,339

5,059
16,339

6,671
19,976

11,788
20,648

12,017
20,622

12,725
20,495

13,772
21,106

14,694
20,976

15,846
20,950

17,773
20,917

2,346

2,346

4,535

5,936

5,892

5,842

5,864

6,592

6,462

6,923

30,314

30,106

29,516

37,377

33,510

33,088

32,858

35,356

36,226

37,370

8,803

8,913

10,701

13,569

13,438

14,077

14,166

14,202

14,738

15,160

8,305

8,415

10,000

12,592

12,441

13,056

13,008

12,873

13,384

13,602

498

498

701

977

997

1,021

1,158

1,329

1,354

1,558

3,322

3,322

5,623

8,483

7,919

7,985

8,097

7,714

8,691

8,184

3,171

3,171

5,292

5,450

4,625

3,918

4,278

5,287

6,556

5,728

151

151

331

3,033

3,294

4,067

3,819

2A H

2,135

2,456

Official institutions1.......................... .

Short-term, reported by banks in
the United States.2.................
U.S. Treasury bonds and notes:
Marketable3................................
Nonmarketable4 .........................
Other readily marketable
liabilities 5.............................

Commercial banks abroad:
8 Short-term, reported by banks in
the United States2,6...............
9 Other foreigners ..................................
10 Short-term, reported by banks in
the United States2..................
11 Marketable U.S. Treasury bonds
and notes3,7............................
12 Nonmonetary international and
regional organization8.................
13
Short-term, reported by banks
in the United States2 ..........
14
Marketable
U.S.
Treasury
bonds and notes3................

1 Includes Bank for International Settlements.
2 Includes Treasury bills as shown in Table 3.15.
3 Derived by applying reported transactions to benchmark data.
4 Excludes notes issued to foreign official nonreserve agencies.
5 Includes long-term liabilities reported by banks in the United States
and debt securities of U.S. Federally sponsored agencies and U.S. cor­
porations.
6 Includes short-term liabilities payable in foreign currencies to com­
mercial banks abroad and to other foreigners.
7 Includes marketable U.S. Treasury bonds and notes held by com­
mercial banks abroad and other foreigners.
8 Principally the International Bank for Reconstruction and Develop­
ment and the Inter-American and Asian Development Banks.

3.14

9 Data in the two columns shown for this date differ because of changes
in reporting coverage. Figures in the first column are comparable in cover­
age with those for the preceding date; figures in the second column are
comparable with those shown for the following date.
N ote.—Based on Treasury Dept, data and on data reported to the
Treasury Dept, by banks (including Federal Reserve banks) and brokers
in the United States. Data exclude the holdings of dollars of the Inter­
national Monetary Fund derived from payments of the U.S. subscription,
and from the exchange transactions and other operations of the IMF.
Data also exclude U.S. Treasury letters of credit and nonnegotiable, noninterest-bearing special U.S. notes held by nonmonetary international
and regional organizations.

SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period

Area

1974

1975

Jan.

Dec.3
1
2
3
4
5
6
7

Western Europe 1...........................
Canada............................................
Latin American republics..............
Asia..................................................
Africa..............................................
Other countries 2............................

Feb.

Mar.

Apr.

May?

JuneP

76,801

76,823

80,712

91,900

93,046

93,858

96,782

99,748

101,526

102,967

44,328
3,662
4,419
18,604
3,161
2,627

44,328
3,662
4,419
18,627
3,160
2,627

45,701
3,132
4,450
22,551
2,983
1,895

45,855
3,406
4,853
34,112
1,893
1,781

45,927
3,197
4,546
35,562
1,757
2,057

46,108
2,844
4,525
36,458
1,771
2,152

47,932
2,684
4,826
37,730
1,628
1,982

48,733
2,752
4,396
39,946
1,883
2,038

50,048
2,798
4,672
40,311
1,821
1,876

52,762
2,699
4,234
39,728
1,938
1,606

1 Includes Bank for International Settlements.
2 Includes countries in Oceania and Eastern Europe, and Western
European dependencies in Latin America.




1977

1976

3 See Note 9 to Table 3.13.
N ote.—D ata represent breakdown by area of line 3, Table 3.13.

Bank-reported Data

A57

3.15 SHORT-TERM LIABILITIES TO FOREIGNERS Reported by Banks in the United States
By Holder and by Type of Liability
Millions of dollars, end of period
1974

Holder, and type of liability

1975

Dec.8

1976
Dec.

1977
Jan.

Feb.

Mar.

Apr.

May2*

June*1

1 All foreigners, excluding the International
Monetary Fund............................................... 94,847

94,771

94,338 108,947 105,091 104,858 106,184 111,002 114,434 114,054

2

94,081

94,004

93,780 108,223 104,359 104,043 105,323 110,193 113,781

14,068
10,106
35,662
34,246

14,051
9,932
35,662
34,359

13,564
10,250
37,414
32,552

16,803
11,297
40,744
39,380

15,314
11,395
41,275
36,374

16,098
11,205
42,669
34,071

15,101
11,239
43,498
35,485

15,382
11,282
44,661
38,869

16,738
11,606
45,463
39,975

16,301
12,130
44,110
40,841

766

558

724

732

815

861

809

653

672

Payable in dollars ..............................................

3
4
5
6

Deposits:
Dem and......................................................
Time1..........................................................
U.S. Treasury bills and certificates 2.............
Other short-term liabilities3..........................

7

113,382

Payable in foreign currencies.............................

766

8 Nonmonetary international and regional
organizations4.................................................

3,171

3,171

5,293

5,450

4,625

3,918

4,278

5,287

6,556

5,728

9

3,171

3,171

5,284

5,445

4,621

3,912

4,275

5,284

6,550

5,715

139
111
497
2,424

139
111
497
2,424

139
148
2,554
2,443

290
205
2,701
2,250

166
230
2,890
1,335

216
237
2,779
680

203
236
2,743
1,093

119
207
2,849
2,109

172
166
2,977
3,234

228
156
2,521
2,811

8

5

4

6

3

3

6

13

Payable in dollars ...............................................

10
11
12
13

Deposits:
Demand......................................................
Time1..........................................................
U.S. Treasury bills and certificates..............
Other short-term liabilities5..........................

14

Pavable in foreign currencies.................. .........

15 Official institutions, banks, and other foreigners.. 91,676

91,600

89,046 103,497 100,466 100,940 101,906 105,716 107,878 108,326

16

90,910

90,834

88,497 102,778

13,928
9,995
35,165
31,822

13,912
9,796
35,165
31,961

13,426
10,102
34,860
30,109

Payable in dollars ..............................................

17
18
19
20

Deposits:
Dem and......................................................
Time1..........................................................
U.S. Treasury bills and certificates2............
Other short-term liabilities3..........................

21

16,513
11,092
38,042
37,130

99,738 100,131

15,148
11,166
38,386
35,039

15,882
10,968
39,889
33,391

101,048 104,910 107,231

107,667

16,565
11,440
42,485
36,741

16,074
11,974
41,589
38,030

14,898
11,003
40,755
34,392

15,262
11,076
41,813
36,760

Payable in foreign currencies.............................

766

766

549

719

728

809

858

805

647

660

22 Official institutions6...............................................

53,057

53,079

49,530

53,528

54,515

54,796

56,040

57,486

58,268

57,354

23

52,930

52,952

49,530

53,528

54,515

54,796

56,040

57,486

58,268

57,354

2,951

2,951
4,167
34,656
11,178

2,644
3,423
34,199
9,264

3,394
2,289
37,725
10,120

2,931
2,456
38,081
11,047

2,404
2,376
39,559
10,457

2,629
2,269

40,399
10,744

2,747
2,335
41,508
10,896

2,676
2,449
42,197
10,947

2,727
2,497
41,321
10,809

24
25
26
27
28

Payable in dollars ...............................................

Deposits:
Demand......................................................
Time1..........................................................
U.S. Treasury bills and certificates2.............
Other short-term liabilities5..........................

Pavable in foreien rurrenripx________

4,257

34,656
11,066
127

127

29 Banks and other foreigners....................................

38,619

38,520

39,515

49,969

45,951

46,144

45,866

48,230

49,609

50,972

30
31

37,980

37,881

38,966

49,250

45,335

45,008

48,963

50,312

28,966

32,788

32,279

32,000

47,425

36,658

45,223

7,534
8,231
1,885 33 1,856
232
335
19,119 19,241

9,104
2,279
119
25,156

8,475
2,074
122
22,111

9,387
1,779
102
21,011

8,401
1,739
108
21,752

8,721
1,675
104
24,060

9,778
1,805
108
23,889

9,557
2,198
101
24,854

32
34
35

Payable in dollars ..............................................

Banks7............................................................ 29,676
Deposits:
Dem and..................................................
8,248
Time1......................................................
1,942
232
U.S. Treasury bills and certificates...........
Other short-term liabilities3 . . . . ............ 19,254

29,467

34,551

35,580

36,710

Other foreigners.............................................
Deposits:
Dem and..................................................
Time1......................................................
U.S. Treasury bills and certificates...........
Other short-term liabilities5......................

8,304

8,414

10,000

12,592

12,441

13,056

13,008

12,873

13,383

13,603

37
38
39
40

2,729
3,796
277
1,502

2,730
3,744
277
1,664

3,248
4,823
325
1,604

4,015
6,524
198
1,854

3,741
6,636
183
1,876

4,091
6,813
229
1,924

3,868
6,996
248
1,896

3,803
7,065
201
1,804

4,111
7,186
180
1,906

3,790
7,279
168
2,366

41

Payable in foreign currencies.............................

639

639

549

719

728

809

858

805

647

660

36

1 Excludes negotiable time certificates of deposit, which are included
in “ Other short-term liabilities.”
2 Includes nonmarketable certificates of indebtedness and Treasury
bills issued to official institutions of foreign countries.
3 Includes liabilities of U.S. banks to their foreign branches, liabilities
of U.S. agencies and branches of foreign banks to their head offices and
foreign branches of their head offices, bankers acceptances, commercial
paper, and negotiable time certificates of deposit.
4 Principally the International Bank for Reconstruction and Develop­
ment, and the Inter-American and Asian Development Banks.
5 Principally bankers acceptances, commercial paper, and negotiable
time certificates of deposit.




6 Foreign central banks and foreign central governments and their
agencies, and Bank for International Settlements.
7 Excludes central banks, which are included in “ Official institutions.”
8 Data in the two columns shown for this date differ because of changes
in reporting coverage. Figures in the first column are comparable with
those for the preceding date; figures in the second column are comparable
with those shown for the following date.
N ote.—“Short-term obligations” are those payable on demand, or
having an original maturity of 1 year or less.

A58

International Statistics □ August 1977

3.16 SHORT-TERM LIABILITIES TO FOREIGNERS Reported by Banks in the United States
By Country
Millions of dollars, end of period
1974

1975

Area and country

1977

1976

Dec. 7

Jan.

Feb.

Mar

Apr.

May**

June?

1

94,847

94,771

94,338 108,947 105,091 104,858 106,183 111,002 114,434 114,054

2 Foreign countries....................................................

91,676

91,600

89,046 103,497 100,466 100,940 101,906 105,715 107,878 108,326

3 Europe................................................................... 48,667
607
4
2,506
Belgium-Luxembourg....................................
5
369
Denm ark........................................................
6
266
Finland............................................................
7
4,287
8
9,420
9
Greece.............................................................
248
10
11
Italy.................................................................
2,617
3,234
12
Netherlands....................................................
13
1,040
14
310
382
15
Spain................................................................
1,138
16
9,986
17
Switzerland.....................................................
152
Turkey............................................................
18
7,559
19
183
Yugoslavia......................................................
20
Other Western Europe1................................. 4,073
21
82
22
U.S.S.R...........................................................
206
23
Other Eastern Europe...................................

48,813

43,988
754

24

Canada ................................................................

25
26
27
28
29
30
31
32
33
34
35
36
37
38
39

Argentina........................................................
Bahamas..........................................................
Brazil..............................................................
Chile...............................................................
Colombia........................................................
Cuba................................................................
Mexico............................................................
Panama...........................................................
Peru.................................................................
Uruguay..........................................................
Venezuela........................................................
Other Latin American republics...................
Netherlands Antilles2....................................
Other Latin America.....................................

40
41
42

Asia .....................................................................

China, People’s Republic of (Mainland)....
China, Republic of (Taiwan)........................
Hong K ong....................................................
India................................................................
Indonesia........................................................
Israel................................................................
Japan...............................................................
K orea..............................................................
Philippines......................................................
Thailand..........................................................
Middle East oil-exporting countries3...........
Other4.............................................................

44
45
46
47
48
49
50
51
52

607
2,506
369
266
4,287
9,429
248
2,577
3,234
1,040
310
382
1,138
10,139
152
7,584
183
4,073
82
206

2,898
332
391
7,733
4,357
284
1,072
3,411
996
195
426
2,286
8,514
118
6,886
126
2,970
40
200

401
2,411
419
367
4,590
5,495
346
2,703
2,817
793
228
546
1,593
9,619
82
8,711
121
2,136
45
162

44,363
499
2,566
569

312
4,817
4,677
302
2,361
3,181
746
209
555
1,717
8,927
88
10,368
96
2,144
50
178

45,049

509
2,607
809
306
4,748
4,490
350
2,625
2,924
906
184
501
2,047
8,798
81
10,704
111
2,132
41
176

48,217
410

2,640
974
242
4,920
4,825
409
3,509
3,111
999
238
586
2,431
8,436
68
11,944
102
2,136
66
172

50,389
464

2,673
1,208
258
5,090
4,270
556
4,635
3,529
1,196
162
668
2,391
9,322
127
11,471
115
2,019
73
162

3,076

4,784

4,519

4,815

4,324

4,823

4,869

4,210

14,942

19,010

17,847

18,529

19,089

20,437

19,944
1,971

20,726

2,744
1,175
432
1,172
8
2,764
984
219
251
2,992
2,270
215
2,745

1,698
3,768
1,349
394
1,196
7
2,822
941
224
234
2,462
2,363
207
3,061

29,933

28,404
44

886
1,448
1,034
276
305
7
1,770
488
272
147
3,413
1,316
158
519

21,073

50
818
530
261
1,221
386
10,897
384
747
333
4,633
813

1,770

510
272
165
3,413
1,316
158
589

1,147
1,827
1,227
317
417
6
2,066
1,099
244
172
3,289
1,494
129
1,507

21,130

21,539

886
1,054
1,034
276
305
7

123
50
818
1,025
530 43 623
126
261
1,221
369
389
386
10,931 10,218
384
390
698
747
252
333
4,623
6,461
844
867
103
38
130
84
2,814
383

343
68
169
63
2,239
491

60
61
62

Other countries...................................................

2,831

2,831
2,742

2,128

3,551

3,551

3,373

1,538
2,789
1,432
335
1,017
6
2,848
1,140
257
245
3,060
1,740
140
2,139

28,461

47
985
892
648
340
385
14,380
437
627
275
8,073
1,373
2,300

333
88
143
35
1,116
585

2,019
1,911

1,648
1,979
1,292
325
1,090
6
2,710
909
244
250
2,986
2,033
151
2,223

1,820
2,439
1,272
302
1,152
6
2,782
1,002
228
239
2,909
2,226
157
1,995

1,890
2,184
1,108
403
1,201
6
2,747
1,001
246
241
2,927
2,429
162
2,545

29,258
47

29,614
52

30,459

1,058
941
510
695
430
14,481
448
602
301
9,029
1,245

1,158
1,039
559
546
547
13,358
483
554
313
9,276
1,377

1,067
1,018
538
480
509
13,271
382
652
312
9,987
1,346

52
1,138
993
648
887
436
13,071
430
624
308
10,399
1,473

2,207
209
97
211

2,406
244

2,285

2,587

251
94
136
39
964
802

245
91
176
28
1,151
896

2,753

2,671

105
155
41
1,132
728

2,339
2,224
116

2,348

2,231
2,101

2,361

2,162
2,026

1,926

48
1,033
609

2,231
118

2,014
114

3,171

3,171

5,293

5,450

4,625

3,918

4,278

2,900
202
69

2,900
202
69

5,064
187
42

5,091
136
223

4,275
160
190

3,599
132
187

3,960
131
187

108

1,845
4,001
1,225
329
1,253
6
2,699
1,008
255
263
2,440
2,284
173
2,656

29,789
47

89

2,742
89

63 Nonmonetary international and regional




43,584

3,520

103
38
130
84
2,814
383

For notes see bottom of p. A59.

373
2,376
419
389
4,701
5,304
421
2,858
2,832
566
172
492
1,613
9,571
85
8,996
113
2,263
47
172

11,754

Egypt...............................................................
Morocco.........................................................
South Africa...................................................
Zaire...............................................................
Oil-exporting countries5................................
Other4.............................................................

International......................................................
Latin American regional...................................
Other regional6..................................................

9,999

188
2,672
51
255

43,765

3,517

Africa ..................................................................

64
65
66

348
2,268
363
419
4,875
5,965
403
3,206
3,007
785
239
565
1,693
9,453
166

12,038

53
54
55
56
57
58
59

Australia.........................................................
All other.........................................................

46,923

130

2,223
138

53
1,211
950
721
531
503
12,481
472
634
275
10,447
1,655
360
93
184
30
1,205
881

1,191
940
814
282
543
12,375
547
610
258
9,233
1,567
314
81
236
30
1,145
866

135

1,801
125

5,287

6,556

5,728

4,995
110
182

6,229
118
209

5,367
142
218

Bank-reported Data
3.17

S H O R T -T E R M L IA B IL IT IE S T O F O R E IG N E R S
S upplem ental “ O th e r” C ountries 1

A59

R eported by B anks in the U nited States

Millions o f dollars, end o f period
1975

Area and country

Apr.

1977

1976

Dec.

Apr.

Dec.

Apr.

38
43
43

68
40
236

50
32
131

Other Western Europe
Cyprus.......................
Iceland.......................
Ireland, Republic of.

17
20
29

Other Eastern Europe
Bulgaria.....................................
Czechoslovakia..........................
German Democratic Republic.
Hungary....................................
Poland.......................................
Rum ania...................................

13
11
18
11
42
14

19
32
17
13
66
44

14
11
3
11
74
29

34
19
11
18
75
19

16
64
23

Other Latin American republics
Bolivia.....................................
Costa Rica...............................
Dominican Republic...............
Ecuador...................................
El Salvador.............................
Guatemala...............................
H aiti........................................
Honduras.................................
Jam aica...................................
Nicaragua................................
Paraguay.................................
Surinam 2................................
Trinidad and Tobago.............

93
120
214
157
144
255
34
92
62
126
38

110
124
169
120
171
260
38
99
41
133
43

31

131

117
134
170
150
212
368
48
137
59
158
50
13
44

121
134
274
319
176
340
46
134
34
113
47
29
167

135
170
280
311
214
392
68
210
43
133
60
17
85

Other Latin America:
23 Bermuda................
24 British West Indies.

Apr.

1977

Dec

Apr.

Apr.

25
26
27
28
29
30
31
32
33
34
35
36
37

Other Asia
Afghanistan.................
Bangladesh...................
Burma..........................
Cambodia....................
Jordan..........................
Laos..............................
Lebanon.......................
Malaysia......................
Nepal...........................
Pakistan.......................
Singapore.....................
Sri Lanka (Ceylon)....
Vietnam.......................

19
50
49
4
30
5
180
92
22
118
215
13
70

41
54
31
4
39
2
117
77
28
74
256
13
62

57
44
34
3
23
2
132
130
34
92
344
10
66

55
54
13
4
37
1
140
394
32
188
280
22
50

38
39
40
41
42
43
44
45
46
47
48

Other Africa
Ethiopia (incl. Eritrea)
Ghana..........................
Ivory Coast.................
Kenya...........................
Liberia.........................
Southern Rhodesia... .
Sudan...........................
Tanzania......................
Tunisia.........................
Uganda.........................
Zambia.........................

76
13
11
32
33
3
14
21
23
38
18

60
23
18
19
53
1
12
30
29
22
78

72
45
17
39
63
1
17
20
34
50
14

41
27
10
46
76
1
22
48
19
43
35

48
37
26
185
95
1
30
57
15

48

43

75

All Other
49 New Zealand...............

170
199
100
197
177
627 1,311 2,284 1,874 2,377

1 Represents a partial breakdown of the amounts shown in the “Other”
categories on Table 3.16.

3.18 LONG-TERM LIABILITIES TO FOREIGNERS

1975

Area and country

90

23
133
511
35
135
300
27
50

55

2 Surinam included with Netherlands Antilles until January 1976.

Reported by Banks in the United States

Millions of dollars, end of period

Holder, and area or country

1974

1973

1976

1975

Dec.

Jan.

Feb.

Mar.

Apr.

MayP

June?

2,408

2,352

2,297

2,295

2,505

2,283

2,315

1 Total.......................................................................

1,462

2 Nonmonetary international and regional
organizations.......................................................

761

822

415

264

263

248

262

250

262

269

3 Foreign countries....................................................
4 Official institutions, including central banks. ..
5 Banks, excluding central banks........................

700
310
291
100

464
124
261
79

1,397
931
366
100

2,144
1,352
588
204

2,090
1,262
604
224

2,049
1,192
627
230

2,033
1,163
648
222

2,256
1,358
631
267

2,022
1,042
630
350

2,047
1,097
638
312

Area or country:
7 Europe................................................................

1,285

1,812

1977

9

United Kingdom............................................

470
159
66

226
146
59

330
214
66

537
313
134

555
313
144

580
296
122

571
354
103

583
304
131

594
297
148

612
312
132

10
11

Canada................................................................
Latin America....................................................

8
132

19
115

23
140

29
230

31
244

29
267

37
263

35
264

34
254

35
295

12
13

Middle East oil-exporting countries1...............
Other Asia2........................................................

82

14
15

African oil-exporting countries 3.......................
Other Africa4......................................................

894
8
*
1

1,251
96
*

1,186
67
*
1

1,104
67
*
2

1,091
67
lie
2

1,304
68
*
2

1,069
68
*

1

94
7
*
1

2

1,030
68
*
6

16

All other countries.............................................

7

*

*

1

4

1

1

1

1

1

4 Includes African oil-exporting countries until December 1974.

1 Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia,
and United Arab Emirates (Trucial States).
2 Includes Middle East oil-exporting countries until December 1974.
3 Comprises Algeria, Gabon, Libya, and Nigeria.

N ote.—Long-term obligations are those having an original maturity
of more than 1 year.

NOTES TO TABLE 3.16:
1 Includes Bank for International Settlements.
2 Surinam included with Netherlands Antilles until January 1976.
3 Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia,
and United Arab Emirates (Trucial States).
* Includes oil-exporting countries until December 1974.
5 Comprises Algeria, Gabon, Libya, and Nigeria.

6 Asian, African, and European regional organizations, except BIS,
which is included in “Other Western Europe.”
7 Data in the two columns shown for this date differ because of changes
in reporting coverage. Figures in the first column are comparable with
those shown for the preceding date; figures in the second column are
comparable with those shown for the following date.




A60

International Statistics □ August 1977

3.19 SHORT-TERM CLAIMS ON FOREIGNERS Reported by Banks in the United States
By Country
Millions of dollars, end of period

Area and country

1973

1974

1977

1976

1975

Dec.

Jan.

Feb.

Mar.

Apr.

May®

June®

1

20,723

39,056

50,231

69,126

63,719

63,447

65,187

65,874

68,143

70,553

2 Foreign countries....................................................

20,723

39,055

50,229

69,121

63,712

63,442

65,181

65,869

68,139

70,541

3 Europe.....................................................................
4
5
6
7
8
9
10
11
12 Netherlands........................................................
13
14 Portugal..............................................................
15
16
17
18
19
20
21 Other Western Europe.......................................
22 U.S.S.R...............................................................
23

3,970

6,255

8,987

12,162

10,486

10,764

10,887

12,033

12,917

13,761

11
147
48
108
621
311
35
316
133
72
23
222
153
176
10
1,459
10
25
46
44

21
384
46
122
673
589
64
345
348
119
20
196
180
335
15
2,580
22
22
46
131

15
352
49
128
1,471
436
49
370
300
71
16
249
167
237
86
4,718
38
27
103
108

44
662
85
141
1,448
563
79
929
304
98
65
429
177
482
173
6,158
45
52
99
130

41
554
72
137
1,246
511
57
875
246
124
80
362
112
539
199
4,960
60
53
82
178

42
611
64
131
1,372
667
85
802
510
127
90
375
85
530
207
4,671
64
60
95
175

58
570
67
141
1,343
535
54
870
252
133
98
291
74
496
274
5,218
37
56
104
218

63
470
84
126
1,511
550
70
946
385
142
90
363
116
496
291
5,939
31
51
108
203

43
589
88
130
1,546
503
65
979
362
148
100
302
79
473
322
6,803
55
40
82
209

53
765
84
113
1,468
578
51
875
462
126
96
284
105
483
333
7,461
58
51
90
222

24

1,955

2,776

2,817

3,100

2,944

3,512

3,737

3,701

3,554

3,607

25
26
27
28
29
30
31
32
33
34
35
36
37
38
39

5,900

12,377

34,060

31,459

31,487

32,057

867
14,102
3,145
379
598
13
3,332
869
739
39
1,260
1,120
41
4,985

914
15,431
2,951
357
544
13
3,295
849
733
39
1,241
1,132
41
4,518

31,789

32,550

33,472

499
883
900
151
397
12
1,373
274
178
55
518
493
13
154

720
3,405
1,418
290
713
14
1,972
505
518
63
704
852
62
1,142

20,532

8,224

16,226

16,057

17,765

16,686
4

15,471

16,118

16,596

30
1,089
265
23
55
337
9,472
1,574
479
446
1,050
651

5
1,124
317
32
53
328
9,486
1,736
463
491
1,389
693

15,760

16,917

1,028
229
28
54
344
10,579
1,710
592
421
981
715
1,519

1,478
126

1,603

1,572
146

1,559

35
783
8
291
309

152
34
778
7
243
344

40
41
42
43
44
45
46
47
48
49
50
51
52

Chile...................................................................
Cuba...................................................................
Mexico................................................................
Panama...............................................................
Peru.....................................................................
Other Latin American republics.......................
Netherlands Antilles1........................................
Other Latin America.........................................

392

4
500
223
14
157
255
12,518
955
372
458
330
441

53 Africa ......................................................................
54 Egypt...................................................................
55 Morocco.............................................................
56 South Africa.......................................................
57 Zaire...................................................................
58 Oil-exporting countries4....................................
59 Other3................................................................

388

855

60 Other countries.......................................................
61 Australia.............................................................
62 All other.............................................................

286

China, People’s Republic of (Mainland)........
China, Republic of (Taiwan)............................
Hong K ong........................................................
India...................................................................
Indonesia............................................................
Israel...................................................................
Japan...................................................................
Thailand..............................................................
Middle East oil-exporting countries2...............
Other3.................................................................

63 Nonmonetary international and regional
organizations......................................................

31
140
147
16
88
155
6,398
403
181
273

35
5
129
61

158
243
43
1

111
18
329
98
115
185

565

466
99
*

1 Includes Surinam until January 1976.
2 Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia,
and United Arab Emirates (Trucial States).




1,203
7,570
2,221
360
689
13
2,802
1,052
583
51
1,086
967
49
1,885

22
736
258
21
102
491
10,776
1,561
384
499
524
684
1,228

101
9
545
34
231
308

609

962
15,340
3,378
396
575
13
3,419
1,021
690
38
1,552
1,140
40
5,495

3
987
361
41
76
554
10,992
1,722
559
422
1,312
735
1,486

132
13
763
29
256
293

549

937
13,872
3,456
370
593
13
3,366
760
737
41
1,296
1,127
45
4,848

151
19
798
16
238
298

618

535
73

450
99

512
105

1

5

7

13
797
11
249
282

149
26
792
10
343
283

873
14,157
3,186
420
565
13
3,302
753
756
35
1,197
1,079
54
5,401
3
1,099
337
24
41
287
9,397
1,807
490
468
1,170
638

886
15,127
3,061
362
505
13
3,239
840
741
36
1,359
1,176
36
5,170
15
1,221
298
34
39
280
9,591
1,912
488
519
1,469
730

905
16,063
2,968
415
494
13
3,189
905
791
32
1,348
1,148
67
5,133
54
1,232
334
34
72
327
9,912
1,859
406
561
1,271
855
1,775
141

36
812
9
422
355

779

125

663
116

1,013
894
119

963
846
117

1,009
877
132

5

6

5

4

13

729
604

3 Includes oil-exporting countries until December 1974.
4 Comprises Algeria, Gabon, Libya, and Nigeria,

Bank-reported Data
3.20 SHORT-TERM CLAIMS ON FOREIGNERS
By Type of Claim

A61

Reported by Banks in the United States

Millions of dollars, end of period
Type

1973

1974

1975

1976
Dec.

1977
Jan.

Feb.

Mar.

Apr.

May*7

June»

1

20,723

39,056

50,231

69,126

63,719

63,447

65,187

65,874

68,143

70,553

2 Payable in dollars ..................................................

20,061

37,859

48,683

67,481

61,987

61,488

63,290

64,188

66,379

68,776

7,660

11,287

13,194

18,300

16,072

16,234

15,756

935
9,764

784
9,730

16,396

16,651

16,081

3
4
5
6

Loans, to ta l ........................................................

Official institutions, including central banks.
Banks, excluding central banks.....................
All other, including nonmonetary interna­
tional and regional organizations.............

7
8
9

Collections outstanding.....................................
Acceptances made for accounts of foreigners...
Other claims1.....................................................

10 Payable in foreign currencies.................................
11
12
13

Deposits with foreigners....................................
Foreign government securities, commercial
and finance paper..........................................
Other claims.......................................................

381
7,332

613
7,665

2,838

3,574

4,916

5,773

5,487

5,535

5,241

5,105

5,066

5,085

4,307
4,160
3,935

5,637
11,237
9,694

5,467
11,147
19,054

5,846
12,367
30,968

5,833
12,018
28,064

5,868
12,009
27,378

6,190
12,793
28,550

6,316
12,976
28,499

6,292
13,045
30,391

6,389
13,151
33,155

662

1,196

1,368

1,645

1,732

1,959

1,897

1,686

1,764

1,778

428

669

656

1,063

1,126

1,091

1,100

918

864

861

119
115

289
238

340
372

89
493

145
460

272
596

323
474

332
436

377
522

302
614

284
4,538

1,451
11,076

1,251
9,334

741
10,550

967
10,618

980
10,016

1 Includes claims of U.S. banks on their foreign branches and claims made to, and acceptances made for, foreigners; drafts drawn against
of U.S. agencies and branches of foreign banks on their head offices and
foreigners, where collection is being made by banks and bankers for
foreign branches of their head offices.
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
N ote.—Short-term claims are principally the following items payable
by U.S. monetary authorities.
on demand or with a contractual maturity of not more than 1 year: loans

3.21 LONG-TERM CLAIMS ON FOREIGNERS

Reported by Banks in the United States

Millions of dollars, end of period

Type, and area or country

1
2

1973

5,996

1974

1977

1976

1975

Dec.

Jan.

Feb.

Mar.

Apr.

May*7

JuneP

12,201

12,457

12,287

12,208

7,179

9,536

11,660

11,684

11,829

By type:

Payable in dollars ...............................................

5,924

7,099

9,419

11,512

11,534

11,618

12,012

12,256

12,085

12,008

3
4
5
6

Loans, total ....................................................

5,446

6,490

8,316

9,935

10,411

10,392

1,351
1,567

1,535
2,218

1,625
2,192

1,647
2,193

1,642
2,273

10,318

1,324
929

1,404
2,178

10,131

10,533

1,422
2,212

9,953

3,698

4,237

5,399

6,301

6,371

6,377

6,591

6,693

6,478

6,444

7

Other long-term claims.....................................

478

609

1,103

1,577

1,581

1,487

1,604

1,723

1,693

1,690

8

Payable in foreign currencies.............................

72

80

116

148

150

211

190

201

202

200

By area or country:
9 Europe................................................................
10 Canada...............................................................
11 Latin America....................................................

1,271
490
2,116

1,908
501
2,614

2,704
555
3,468

3,232
586
4,806

3,309
518
4,878

3,362
536
4,906

3,616
566
4,908

3,698
558
4,990

3,650
501
5,036

3,663
483
5,066

1,582

1,619

1,795

1,882

1,835

1,841

1,896

1,933

1,884

1,830

Official institutions, including central banks
Banks, excluding central banks.................
All other, including nonmonetary interna­
tional and regional organizations.........

12
13
14
15

Asia .....................................................................

16
17
18

Africa ..................................................................

19

All other countries5...........................................

Japan...............................................................
Middle East oil-exporting countries1...........
Other Asia2 ....................................................

Oil-exporting countries 3................................
Other4.............................................................

1,156
591

251

1,331

258
384
977

355

366

747

387
146
1,349
883

383
117
1,334
856

363
123
1,356
876

417
152
1,327
890

416
149
1,368
953

420
149
1,316

409
152
1,270

898

855

355

62
305

151
596

264
619

201
655

206
670

211
678

228
725

213
685

210
645

181

171

267

269

288

308

327

327

319

311

1 Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia,
and United Arab Emirates (Trucial States).
2 Includes Middle East oil-exporting countries until December 1974.




296
220
1,279

1,634
2,240

3 Comprises Algeria, Gabon, Libya, and Nigeria.
4 Includes oil-exporting countries until December 1974.
5 Includes nonmonetary international and regional organizations.

A62

International Statistics □ August 1977

3.22 FOREIGN BRANCHES OF U.S. BANKS

Balance Sheet Data

Millions of dollars, end of period

Asset account

1973

1974

1976

1975
Nov.

1977
Dec.

Jan.

Feb.

M ar.r

Apr.

May?

229,580

All foreign countries
1 Total, all currencies............................ "121,866

151,905

176,493

207,734

219,432

212,415

215,914

223,222

223,044

6,900

6,743

7,639

7,999

6,563

7,062

7,303

8,860

2
3
4

Claims on United States .................

5,091

Parent bank.................................
Other............................................

1,886
3,205

4,464
2,435

5
6
7
8
9

Claims on foreigners .......................

111,974

138,712

10

Other assets.....................................

4,802

6,294

6,359

7,208

7,043

7,612

7,436

7,420

6,973

7,397

11 Total payable in U.S. dollars.............

79,445

105,969

132,901

156,597

167,717

163,026

165,461

172,352

171,956

176,642

4,599

6,603

6,408

3,628
2,780

4,296
3,001

4,375
3,330

2,960
3,323

6,283

6,774

3,714
3,061

6,904
3,611
3,293

8,487
5,419
3,068

6,988
3,941
3,047

96,209

123,496

145,986

156,808

152,831

155,063

161,922

160,167

166,162

3,623

3,526

3,303

3,492

Other branches of parent bank..
Other banks.................................
Official institutions.....................
Nonbank foreigners....................

19,177
56,368
2,693
33,736

27,559
60,283
4,077
46,793

12
13
14

Claims on United States ........... .

15
16
17
18
19

Claims on foreigners .......................

Other branches of parent bank..
Other banks.................................
Official institutions.....................
Nonbank foreigners...................

12,799
39,527
1,777
18,915

19,688
45,067
3,289
28,164

20

Other assets.....................................

1,828

3,157

Parent bank.................................
Other............................................

1,848
2,751
73,018

4,428
2,175

3,665
3,078

4,359
3,281

4,435
3,564

163,391

192,886

204,390

34,508
69,206
5,792
53,886

28,478
55,319
4,864
34,835
2,997

42,747
77,401
9,550
63,188

7,297

34,399
60,352
8,298
42,936
3,315

45,894
83,765
10,608
64,123

7,705

37,848
66,331
9,017
43,611
3,204

7,397

2,999
3,563

3,759
3,303

3,658
3,645

5,462
3,398

3,967
3,430

198,241

201,416

208,500

207,211

214,786

46,086
77,415
10,836
63,905

38,362
60,816
9,468
44,185
3,912

47,766
77,923
11,188
64,538

39,822
60,909
9,853
44,479

48,645
81,668
11,766
66,421

40,922
64,591
10,469
45,940

47,826
79,800
12,356
67,230

39,960
63,037
11,056
46,113

49,489
83,950
12,686
68,660

41,373
66,297
11,364
47,128

United Kingdom
21 Total, all currencies.............................

61,732

69,804

74,883

77,249

81,466

76,482

78,708

81,268

80,150

83,178

22
23
24

Claims on United States .................

1,789

3,248

2,392

3 ,426

3,354

2,262

1,772

2,311

2,541

2,714

25
26
27
28
29

Claims o f foreigners ........................

57,761

64,111

75,559

78,333
21,122

30

Other assets.....................................

2,183

2,445

2,159

2,345

2,253

2,225

2,224

2,092

2,050

2,131

31 Total payable in U.S. dollars.............

40,323

49,211

57,361

57,699

61,587

57,758

60,038

62,353

61,179

63,481

3,146

2,273

3,313
2,523

3,275

2,185

1,684

2,173

2,430

2,590

Parent bank.................................
Other............................................

Other branches of parent bank..
Other banks.................................
Official institutions.....................
Nonbank foreigners....................

738
1,051

8,773
34,442
735
13,811

2,472
776

12,724
32,701
788
17,898

1,449
943

70,331

17,557
35,904
881
15,990

2,538
888
71,477

17,949
35,846
1,168
16,514

2,376
978

75,859

19,753
38,089
1,274
16,743

1,377
885

71,995

19,483
34,827
1,377
16,309

1,011
761

74,713

21,450
35,517
1,615
16,130

1,302
1,009

76,865

21,115
37,074
1,606
17,070

1,698
843

21,733
35,559
1,611
16,656

1,850
863

38,635
1,631
16,945

32
33
34

Claims on United States .................

Parent bank.................................
Other............................................

1,642
730
912

35
36
37
38
39

Claims on foreigners .......................

37,817

6,509
23,389
510
7,409

10,265
23,716
610
10,102

15,645
28,224
648
9,604

54,121

53,541

15,405
27,008
817
10,311

17,249
28,983
846
10,410

57,488

54,735

17,183
26,184
1,110
10,258

19,114
26,767
1,340
10,271

18,712
28,352
1,310
10,968

19,256
26,917
1,297
10,424

57,894

60,030

40

Other assets....................................

865

1,372

967

845

824

838

862

839

855

861

71,579

Other branches of parent bank..
Other banks.................................
Official institutions.....................
Nonbank foreigners....................

2,468
678
44,694

1,445
828

789

2,374
902

1,372
813

1,008
676

57,492

1,297
876

59,342

1,690
740

1,842
748

18,642
29,498
1,306
10,584

Bahamas and Caymans
41 Total, all currencies............................

23,771

31,733

45,203

61,886

66,774

66,479

66,134

69,562

70,980

2,210
317

2,464

2,970

3,506

3,192

3,722

1,477
1,752

845
2,126

811
2,381

1,418
2,303

5,026

1,893

1,141
2,365

3,446

1,081
1,383

3,229

21,041

28,453

41,040

57,683

62,050

5,411
16,298
3,576
15,756

7,389
22,481
6,485
21,327

42
43
44

Claims on United States .................

45
46
47
48
49

Claims on foreigners ........................

50

Other assets....................................

520

815

933

1,232

1,217

1,748

1,413

1,333

1,300

1,419

51 Total payable in U.S. dollars.............

21,937

28,726

41,887

57,799

62,705

62,266

61,605

64,982

66,396

66,589

Parent bank.................................
Other............................................

Other branches of parent bank..
Other banks.................................
Official institutions.....................
Nonbank foreigners...................




1,928
9,895
1,151
8,068

3,478
11,354
2,022
11,599

8,144
25,354
7,101
21,451

61,539

8,463
23,836
7,004
22,236

60,999

7,815
23,435
7,225
22,523

1,073
2,372
64,783

9,060
25,339
7,495
22,890

2,734
2,293
64,654

8,095
25,234
7,784
23,540

3,579

1,289
2,290
66,581

8,703
25,585
8,062
24,231

Overseas Branches
3.22

A63

C ontinued

Liability account

1973

1974

1976

1975
Nov.

1977
Dec.

Jan.

Feb.

Mar. r

Apr.

May p

229,580

All foreign countries
121,866

151,905

176,493

207,734

219,432

212,415

215,914

223,222

223,044

53
54
55

To United States ...........................

5,610

11,982

20,221

30,290

32,836

30,411

30,515

34,455

33,112

21,054
13,402

18,342
14,770

20,536
14,270

56
57
58
59
60

To foreigners .................................

111,615

132,990

178,540

181,905

182,966

187,537

61

Other liabilities.............................

4,641

6,933

6,456

6,755

6,734

6,880

6,859

6,862

6,965

7,237

62 Total payable in U.S. dollars...........

80,374

107,890

135,907

161,054

173,092

167,589

170,533

177,247

177,092

181,836

5,027

11,437

19,503

29,399

32,049

29,475

29,601

33,512

32,148

33,920

73,189

92,503

112,879

128,231

52 Total, all currencies..........................
Parent bank...............................
Other..........................................

Other branches of parent bank.
Other banks...............................
Official institutions...................
Nonbank foreigners..................

1,642
3,968

18,213
65,389
10,330
17,683

63
64
65

To United States ...........................

66
67
68
69
70

To foreigners .................................

Other branches of parent bank.
Other banks...............................
Official institutions...................
Nonbank foreigners..................

12,554
43,641
7,491
9,502

71

Other liabilities.............................

2,158

Parent bank...............................
Other..........................................

1,477
3,550

5,809
6,173

26,941
65,675
20,185
20,189

5,641
5,795

19,330
43,656
17,444
12,072
3,951

12,165
8,057

149,815

34,111
72,259
22,773
20,672

11,939
7,564

28,217
51,583
19,982
13,097
3,526

19,059
11,231

170,690

41,711
78,369
23,967
26,643

18,821
10,578

34,008
55,900
20,924
17,398
3,424

19,894
12,942

179,862

44,309
83,852
25,828
25,873

19,680
12,368

18,728
11,683
175,124

44,288
79,486
25,771
25,580

18,480
10,996

19,261
11,253

46,327
78,295
26,631
27,288

19,015
10,585

47,661
80,031
26,199
28,014

20,800
12,712

46,175
82,668
26,125
27,998

18,097
14,051

34,806

48,157
84,018
27,298
28,065

20,280
13,640

134,352

137,290

140,155

141,220

144,098

22,811

17,016

37,706
56,772
23,038
16,836

3,516

3,761

3,643

3,580

3,724

3,819

137,527

37,037
60,597

39,372
56,096
23,598
18,223

40,691
57,750
23,411
18,303

39,096
60,513
23,216
18,395

40,696
60,835
24,324
18,242

United Kingdom
72 Total, all currencies..........................

61,732

69,804

74,883

77,249

81,466

76,482

78,708

81,268

80,150

83,178

2,431

3,978

5,646

1,459
4,061

5,997

5,101

4,871

6,365

6,272

5,845

510
3,468

2,122
3,523

5,520

57,311

63,409

67,240

69,368

73
74
75

To United States ...........................

76
77
78
79
80

To foreigners .................................

81

Other liabilities.............................

1,990

2,418

1,997

2,360

2,241

2,179

2,313

2,238

2,091

2,187

82 Total payable in U.S. dollars...........

39,689

49,666

57,820

58,757

63,174

59,009

61,331

63,346

62,373

64,343

2,173

3,744

5,415

5,330

5,849

4,876

4,704

6,189

6,108

Parent bank...............................
Other..........................................

Other branches of parent bank.
Other banks...............................
Official institutions...................
Nonbank foreigners..................

136
2,295
3,944
34,979
8,140
10,248

4,762
32,040
15,258
11,349

6,494
32,964
16,553
11,229

6,783
33,690
16,181
12,713

1,198
4,798

73,228

7,092
36,259
17,273
12,605

1,211
3,889

69,202

7,663
32,336
16,975
12,228

1,191
3,681
71,523

7,981
32,097
18,204
13,242

1,537
4,828
72,665

8,252
33,830
17,711
12,872

1,515
4,756

71,787

7,764
33,747
17,260
13,016

83
84
85

To United States ...........................

86
87
88
89
90

To foreigners .................................

Other branches of parent bank.
Other banks...............................
Official institutions...................
Nonbank foreigners..................

2,519
22,051
5,923
6,152

3,256
20,526
13,225
7,587

5,442
23,330
14,498
8,176

5,520
23,040
14,283
9,660

5,874
25,527
15,423
9,547

22,131

15,184
9,336

6,906
22,211
16,345
10,213

7,188
23,841
15,817
9,437

6,563
23,815
15,394
9,617

91

Other liabilities.............................

870

1,328

959

924

953

903

953

874

Parent bank...............................
Other..........................................

113
2,060
36,646

484
3,261

44,594

2,083
3,332
51,447

1,447
3,883

52,503

1,182
4,666
56,372

1,195
3,681

53,230

6,573

1,166
3,538
55,675

1,506
4,683
56,283

1,460
4,386

75,145

8,570
35,932
17,538
13,106

5,688

1,498
4,610

1,438
4,250

55,390

57,720

875

936

7,333
25,171
15,674
9,541

Bahamas and Caymans
23,771

31,733

45,203

61,886

66,774

66,479

66,134

69,562

70,980

71,579

93
94
95

To United States ...........................

1,573

22,723

21,689

21,672

2,636
2,180

11,147

20,676

307
1,266

4,815

16,163
6,560

15,191
6,499

15,241
6,431

23,090

25,175

7,628
3,520

14,797
5,879

24,314

96
97
98
99
100

To foreigners .................................

21,747

26,140

32,949

40,111

42,897

43,376

12,931
19,923
3,198
4,059

13,801
21,758
3,573
3,765

43,166

13,551
22,256
3,607
3,963

101

Other liabilities.............................

451

778

1,106

1,099

1,154

1,413

1,295

1,385

1,249

1,350

102 Total payable in U.S. dollars...........

22,328

28,840

42,197

58,367

63,417

62,851

62,416

65,792

67,199

67,556

Parent bank...............................
Other..........................................

Other branches of parent bank.
Other banks...............................
Official institutions...................
Nonbank foreigners..................




5,508
14,071
492
1,676

7,702
14,050
2,377
2,011

10,569
16,825
3,308
2,248

14,406
21,006
3,314
4,439

17,146
7,167

43,863

14,931
20,475
3,302
5,155

14,545
8,545

46,641

14,123
23,780
3,892
4,845

16,465
8,710
45,054

14,019
22,201
4,100
4,734

A64
3.23

International Statistics □ August 1977
MARKETABLE U.S. TREASURY BONDS AND NOTES

Foreign Holdings and Transactions

Millions of dollars

Country or area

1975

1976

1977
Jan.—
June?

1976
Dec.

1977
Jan.

Feb.

Mar.

Apr.®

Mayp

June?

Holdings (end of period) 4
1 Estimated total.....................

7,703

15,798

15,798

16,307

17,813

18,748

18,450

19,335

21,787

2 Foreign countries.................

7,372

12,765

12,765

13,014

13,746

14,929

16,024

17,200

19,331

1,085

2,330

2,330

2,300

2,504

2,870

3,505

3,624

4,862

3
4
5
6
7
8
9
10
11

Europe..............................

Belgium-Luxembourg..
Germany.......................
Netherlands.................
Sweden.........................
Switzerland...................
United Kingdom..........
Other Western Europe.
Eastern Europe............

13
215
16
276
55
363
143
4

14
764
288
191
261
485
323
4

14
764
288
191
261
485
323
4

14
764
287
191
271
476
293
4

14
789
367
188
324
512
306
4

14
894
388
188
317
713
354
4

14
1,112
388
188
397
1,069
332
4

16
1,112
418
148
429
1,181
316
4

18
1,262
492
149
439
2,190
312
4

12

Canada.............................

395

256

256

256

261

270

268

271

279

13
14
15
16

Latin America...............................
Venezuela...................................
Other Latin America republics.
Netherlands Antilles 1..............

200
4
29
161

312
149
35
118

312
149
35
118

314
149
21
125

295
149
21
121

405
258
26
120

448
193
21
119

472
193
21
113

481
193
18
114

17
18

Asia................................................
Japan..........................................

5,370
3,271

9,323
2,687

9,323
2,687

9,637
2,682

10,330
2,806

11,068
3,123

11,476
3,174

12,528
3,773

13,407
4,290

19

Africa............................................

543
*

543
*

506
*

356
*

305

279

279

All other....................................

321
*

305

20

11

23

27

23

21 Nonmonetary international and regional
organizations.....................................

331

3,033

3,033

3,294

4,068

3,819

2,426

2,135

2,456

22
23

322
9

2,905
128

2,905
128

3,180
114

3,948
119

3,700
118

2,318
108

2,032
103

2,353
103

International.........................................
Latin American regional.....................

Transactions (net purchases, or sales ( —), during period)
24 Total.....................

1,994

8,095

5,989

735

510

1,505

936

-298

885

2,451

25 Foreign countries.

1,814

5,393

6,566

428

249

732

1,184

1,094

1,176

2,131

1,612
202

5,116
276

5,985
580

421
6

229
21

709
23

1,047
137

922
172

1,152
24

1,927
203

28 Nonmonetary international and regional
organizations.....................................

180

2,702

-5 7 7

307

261

773

-248

-1 ,3 9 2

-291

321

M emo: Oil-exporting countries
29 Middle East 2.......................................
30 Africa 3.................................................

1,797
170

3,887
221

2,294
-2 6 4

140

254
-3 7

505
-1 5 0

408
-5 1

338

392
-2 6

397

26
27

Official institutions.
Other foreign..........

1 Includes Surinam until January 1976.
2 Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia,
and United Arab Emirates (Trucial States). Data not available until 1975.
3 Comprises Algeria, Gabon, Libya, and Nigeria. Data not available
until 1975.

4 Estimated official and private holdings of marketable U.S. Treasury
securities with an original maturity of more than I year. Data are based
on a benchmark survey of holdings as of Jan. 31, 1971, and monthly
transactions reports. Excludes nonmarketable U.S. Treasury bonds and
notes held by official institutions of foreign countries.

3.24 FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS
Millions of dollars, end of period

Assets

1974

1975

1977

1976
Jan.

Assets held in custody:
2 U.S. Treasury securities1...................................

Mar.

Apr.

May

June

July

418

353

352

383

361

349

305

436

379

468

55,600
16,838

60,019
16,745

66,532
16,414

66,992
16,343

68,653
16,304

71,435
16,271

73,261
16,282

73,964
16,221

74,098
16,184

75,443
16,179

1 Marketable U.S. Treasury bills, certificates of indebtedness, notes,
and bonds; and nonmarketable U.S. Treasury securities payable in dollars
and in foreign currencies.
2 The value of earmarked gold increased because of the changes in
par value of the U.S. dollar in May 1972 and in October 1973.




Feb.

N ote.—Excludes deposits and U.S. Treasury securities held for inter­
national and regional organizations. Earmarked gold is gold held for
foreign and international accounts and is not included in the gold stock
of the United States.

Investm ent transactions
3.25

A 65

F O R E IG N T R A N S A C T IO N S IN S E C U R IT IE S
Millions o f dollars

Transactions, and area or country

1975

1976

1977

1976

Jan.JuneP

Dec.

1977
Jan.

Feb.

Mar.

Apr.

Mayp

1,101
980

1,135
913

1,207
978

JuneP

U.S. corporate securities

1
2

Stocks
Foreign sales......................................................

15,347
10,678

18,227
15,474

7,214
5,972

1,562
1,287

1,425
1,137

1,162
1,036

1,184
927

3

Net purchases, or sales ( —) ...............................

4,669

2,752

1,242

274

288

126

121

222

229

257

4

Foreign countries................................................

4,651

2,740

1,224

281

290

124

116

222

209

263

5
6
7
8
9
10

Europe............................................................
France.........................................................
Germany.....................................................
Netherlands................................................

2,491
262
251
359
899
594

336
256
68
-199
-1 0 0
340

575
32
77
27
114
330

111
37
24
-3 5
-7
84

130
27
1
24
39
39

47
-1 0
-7
-5
23
36

72
4
-4
-1 0
30
55

105
-6
38
-7
38
47

128
-3
37
27
4
67

94
21
12
-2
-2 0
86

11
12
13
14
15
16

Canada............................................................
Latin America................................................
Middle East1..................................................
Other Asia2....................................................
Africa..............................................................
Other countries..............................................

361
-7
1,640
142
10
15

325
155
1,803
117
7
-4

5
88
499
51
*
6

60
1
115
9
2
-1 7

8
4
100
46
*
2

30
14
50
-17
*
1

9
14
17
3
*
1

-5
21
97
5
*
-1

-3 3
17
92
4
*
1

-4
18
143
10
*
2

18

12

-1 8

-6

-2

1

5

1

20

-7

5,408
4,642

5,529
4,322

3,723
1,715

533
524

400
322

534
214

348
208

856
245

609
332

976
394

17

Nonmonetary international and regional

Bonds3
18 Foreign purchases..............................................
19 Foreign sales.......................................................
20

Net purchases, or sales ( —) ..............................

766

1,207

2,008

9

78

320

140

611

277

582

21

Foreign countries................................................

1,795

1,248

1,957

6

73

329

112

566

308

569

22
23
24
25
26
27

Europe............................................................
France.........................................................
Germany.....................................................
Netherlands................................................
Switzerland.................................................
United Kingdom........................................

113
82
-6
-8
117
-5 2

92
40
-5 0
-2 9
158
23

877
-2 5
21
19
110
707

53
7
1
-2 0
13
54

8
-5
-4
2
15
8

281
-3
4
-2
32
225

75
-2
*
-3
31
43

100
-5
-4
-7
-4
106

99
-7
13
-2 8
19
102

314
-3
12
57
17
223

28
29
30
31
32
33

Canada............................................................
Latin America................................................
Middle East1..................................................
Other Asia2....................................................
Africa..............................................................
Other countries..............................................

128
31
1,553
-3 5
5
1

96
94
1,179
-165
-2 5
-2 1

77
9
981
18
-2
*

7
27
-2 1
-4 3
-1 4
-2

11
-5
59
1
*
*

55
8
-7
-8
*
*

-3
1
48
-6
-2
*

6
3
454
4
*
*

1
*
192
17
*
*

7
2
235
10
*
*

Nonmonetary international and regional
organizations............................................... -1 ,0 3 0

-4 1

49

3

4

-9

27

45

-3 1

13

34

Foreign securities
4
217
213

-1 8
181
199

-1 0 9
130
238

-6 2
187
249

-4 0
157
197

-7
204
211

-5 6
173
229

38 Bonds, net purchases, or sales ( —) ....................... -6 ,3 2 5
39 Foreign purchases..............................................
2,383
40 Foreign sales......................................................
8,708

-8 ,6 5 2 -2 ,0 3 7 -1 ,3 2 3
4,932
670
3,876
13,584
1,993
5,914

-3 0
818
848

-3 7 4
581
955

-5 6
628
684

-1 1
606
617

-8 6 6
607
1,473

-7 0 0
636
1,337

41 Net purchases, or sales ( —) of stocks and bonds.. -6 ,5 1 5

-8 ,9 7 3

36
37

Foreign purchases..............................................
Foreign sales......................................................

-189
1,541
1,730

-3 2 2
1,937
2,259

-2 9 2
1,032
1,323

-817

-1 ,3 1 9

-4 9

-4 8 3

-118

-5 1

-8 7 3

757

42 Foreign countries.................................................... -4 ,3 2 3 -7 ,0 7 8 -1 ,8 0 0
-8 4 4
43 Europe................................................................
-5 3
-507
44 Canada............................................................... -3 ,2 0 2 -5,1 6 8 -1 ,1 5 6
3
45 Latin America....................................................
-3 0 6
119
-7 0 0
46 Asia.....................................................................
-6 2 2
-2 7 6
48
4
15
47 Africa.................................................................
-4 1 6
48 Other countries..................................................
-155
16

-7 9 0
-1 4 0
-668
37
-2 4
2
3

-338
-2 1
-298
25
-5 3
-1
9

-4 8 8
-2 0 7
-265
42
-6 1
2
1

-1 4 9
54
-8 3
35
-155
*
*

4
2
-9 4
69
25
2

-2 0 1
-1 2 4
-1 2 8
-1 3
62
*
2

-6 2 8
-211
-2 8 8
-3 9
-9 4
3
2

-529

290

5

31

-5 5

-6 7 3

-1 2 9

49 Nonmonetary international and regional

-2 ,1 9 2

-1 ,8 9 8

1 Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq,
Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial
States).
2 Includes Middle East oil-exporting countries until 1975.




-531

3 Includes State and local government securities, and securities of U.S.
Govt, agencies and corporations. Also includes issues of new debt securities
sold abroad by U.S. corporations organized to finance direct investments
abroad.

A66

International Statistics □ August 1977

3.26 SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS Reported by Nonbanking Concerns
in the United States
Millions of dollars, end of period
1976

1977

1976

Type, and area or country
Mar.

June

Sept.

Dec.

Mar.?

Mar.

June

Liabilities to foreigners
1
By type:

2
3
4

Payable in foreign currencies.............................

Sept.

Dec.

Mar.®

Claims on foreigners

6,365

6,307

6,449

6,654

6,632

12,699

13,847

13,172

14,188

14,956

5,715

5,683

5,715

5,943

5,871

11,712

12,850

12,111

13,205

14,004

650

625

734

710

762

988

997

1,060

984

952

480
508

558
439

592
468

442
541

387
565

12,697

13,846

13,170

14,187

17
193
30
131
363
358
47
335
146
52
22
432
84
270
31
2,602
28
14
96
75

5,151
21
195
26

5,271
21

14,953

17
116
35
31
355
305
41
406
176
58
45
516
80
207
26
2,282
30
18
106
80

Deposits with banks abroad in reporter’s

5
By area or country:
6 Foreign countries....................................................
7 Europe.................................................................
8
9
10
11
12
13
14
15
16
17
Portugal..........................................................
18
19
20
21
22
23
United Kingdom............................................
24
Yugoslavia......................................................
25
Other Western Europe...................................
26
U.S.S.R...........................................................
27
Other Eastern Europe...................................

1977

6,146

6,061

6,263

6,445

6
296
12
5
205
152
25
125
162
23
3
68
25
162
14
924
91
6
23
10

13
233
12
1
159
228
29
116
170
22
3
51
24
213
20
837
108
7
10
16

15
183
13
17
185
256
28
148
141
24
5
36
35
243
16
888
113
8
19
14

10
166
7
2
200
174
48
131
141
29
13
40
34
190
13
879
123
7
9
13

2,337

2,271

2,386

2,227

6,441
2,124
9

169
15
2
163
173
80
135
168
37
23
52
35
214
12
689
113
6
15
7

4,932

5,326

135
413
492
56
358
142
43
28
336
62
253
23
2,365
30
17
81
79

5,217

164
56
77
426
378
51
384
166
51
40
369
90
241
25
2,445
26
20
156
85

23
170
49
40
422
366
90
473
172
42
35
325
92
154
32
2,476
30
18
104
36

28

Canada ................................................................

315

373

328

380

404

2,234

2,202

2,197

2,465

2,428

29
30
31
32
33
34
35
36
37
38
39
40
41
42
43

Latin America ....................................................

1,194

1,095

1,028

1,036

1,117

2,565

3,055

2,816

3,563
44

4,358
41

44
45
46
47
48
49
50
51
52
53
54
55

Asia .....................................................................

56
57
58
59
60
61

Africa ..................................................................

62
63
64

Other countries....................................................

Argentina........................................................

Chile...............................................................
Cuba................................................................
Panama...........................................................
Peru.................................................................
Uruguay..........................................................
Venezuela........................................................
Other Latin American republics...................

China, People’s Republic of (Mainland)___
China, Republic of (Taiwan)........................
Hong K ong....................................................
India................................................................
Indonesia........................................................
Israel...............................................................
Japan..............................................................
K orea..............................................................
Philippines......................................................
Thailand..........................................................
Other Asia......................................................
Egypt..............................................................
Morocco..........................................................
South Africa...................................................
Zaire...............................................................
Other Africa...................................................

49
376
97
11
16
*
92
10
30
2
163
75
58
214

1,733

5
110
23
9
141
26
307
53
18
18
1,022
502

30
7
113
7
345
65

Australia.........................................................
All other..........................................................

47
18

65 Nonmonetary international and regional
organizations...................................................

219

49
330
97
15
19
*
12

1,752

2,027
1

2,138

129
33
11
144
32
275
85
28
23
1,260

20
112
40
23
134
39
229
77
53
24
1,385

426

588
21

12
31
3
184
99
55
130
8
124
28
10
133
34
290
62
18
11
1,035
527
22

32
88
12
372

25
42
65
24
270

44

67

32
12

246

1 Includes Surinam until 1976.
N ote.—Reported by exporters, importers, and industrial and com-




44
260
72
17
13
*
98
34
25
4
219
141
10
100

48
251
58
16
11
*
74
10
32
3
222
104
68
129

43
54
36
429

42
256
49
16
18

48
883
475
27
47
1
332
84
38
4
156
170
7
294

43
1,150
462
46
57
1
332
101
39
4
186
184
10
440

2,154
21

2,491

35
100
66
60
155
42
1,163
105
106
20
638

2,729

113
42
39
137
37
206
97
59
19
1,378
574
29
21

343
22

378

*

117
12
24
4
260
101
11
2

23
215
104
51
160
53
1,170
131
114
19
691

39
925
417
26
66
1
352
83
35
22
215
179
9
447

2,421

11
136
88
53
193
48
1,010
142
93
23
624
406

1,367
683
34
59
1
332
74
42
5
194
276
9
441

1,824
536
35
75
1
317
105
32
6
214
234
14
918

2,325

2,371

392

429

23
200
96
55
210
41
908
118
86
22
566

30
130
107
36
246
50
963
130
84
26
466

33
39
446

10
80
23
207

28
12
83
25
230

36
9
78
28
255

28
10
87
21
247

133

155

178

172

150

1

1

1

1

2

59
18

57
19

76

68

186

208

192

49
19

97
36

100
56

112
67

107
65

71
12
80
17
249
114
36

mercial concerns and other nonbanking institutions in the United States.
Data exclude claims held through U.S. banks and intercompany accounts
between U.S. companies and their affiliates.

Nonbank-reported Data
3.27

S H O R T -T E R M C L A IM S O N F O R E IG N E R S

A67

R eported by L arge N on b an k in g C oncerns in the U nited States

Millions o f dollars, end o f period

1977

1976
Type and country
1
2
3
4
5
6
7
8
9
10
11
12

By type:

Payable in dollars ................................... ...........

1973

1974

3,185

3,357

1975

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.?

May**

3,799

5,141

5,440

5,381

5,590

6,314

6,226

7,370

3,042

4,518

4,772

4,676

4,935

4,308
368

4,558
377

5,696

5,555

6,736

2,641

2,604
37

2,660

Deposits..........................................................
Short-term investments 1...............................
Payable in foreign currencies.............................

544

431
113

697

429
268

511
246

624

408
216

669

383
286

705

397
308

654

339
315

619

317
302

672

634

Deposits..........................................................
Short-term investments 1...............................

By country:
United Kingdom................................................
Canada................................................................
Bahamas..............................................................
Japan...................................................................
All other..............................................................

1,128
775
597
336
349

1,350
967
391
398
252

1,306
1,156
546
343
446

1,695
1,552
1,062
138
694

1,837
1,539
1,247
113
704

1,854
1,292
1,320
130
785

1,846
1,338
1,412
165
829

1,879
1,468
1,709
147
1,111

1,713
1,503
1,649
155
1,206

1,889
1,642
2,350
158
1,331

2,591
69

i Negotiable and other readily transferable foreign obligations payable
on demand or having a contractural maturity of not more than 1 year
from the date on which the obligation was incurred by the foreigner.

2,710
332
757

4,131
387

4,399
373

5,241
455

4,973
582

6,213
523

362
310

300
334

N ote.—Data represent the assets abroad of large nonbanking con­
cerns in the United States. They are a portion of the total claims on
foreigners reported by nonbanking concerns in the United States and
are included in the figures shown in Table 3.26.

3.28 LONG-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS
in the United States

Reported by Nonbanking Concerns

Millions of dollars, end of period
1977

1976
Area and country

Mar.

June

Sept.

Dec.

Mar.p

1977

1976
Mar.

June

Sept.

Dec.

Mar.p

Claims on foreigners

Liabilities to foreigners
1 Total.......................................................................

4,064

3,928

3,718

3,508

3,438

5,178

5,037

4,974

4,979

4,936

2 Europe....................................................................
3 Germany............................................................
4 Netherlands........................................................
5 Switzerland.........................................................
6 United Kingdom................................................

3,109
446
214
484
1,572

2,985
425
214
467
1,486

2,813
406
270
327
1,445

2,693
396
258
260
1,409

2,617
391
254
178
1,372

973
34
22
56
349

984
35
211
56
365

953
73
211
54
298

910
72
156
57
297

897
84
154
52
257

7 Canada...................................................................

144

166

111

89

82

1,468

1,511

1,507

1,530

1,470

8 Latin America........................................................
9 Bahamas.............................................................
10 Brazil..................................................................
11 Chile...................................................................
12 Mexico................................................................

248
184
5
1
6

222
157
5
1
6

230
132
5
1
7

243
138
5
1
17

244
139
5
1
19

1,776
7
183
312
209

1,609
37
165
306
187

1,552
37
172
244
219

1,521
36
133
248
195

1,488
34
124
210
180

13 Asia.........................................................................
14 Japan..................................................................

495
394

489
388

498
402

423
397

432
413

685
129

712
85

739
80

773
77

816
96

15 Africa.....................................................................

2

2

2

2

2

214

163

165

187

198

16 All other i ..............................................................

65

64

64

58

59

61

59

58

58

67

1 Includes nonmonetary international and regional organizations.




A68

International Statistics □ August 1977

3.29 DISCOUNT RATES OF FOREIGN CENTRAL BANKS
Per cent per annum
Rate on July 31, 1977
Country

Month
effective

Per
cent

Argentina........................
Austria.............................
Belgium...........................
Brazil...............................
Canada............................
Denmark.........................

Rate on July 31, 1977

18.0
5.5
6.0
28.0
7.5
9.0

Feb.
June
June
May
May
Mar.

Rate on July 31, 1977

Country
Per
cent

1972
1977
1977
1976
1977
1977

10.5
3.5
13.0
5.0
4.5
3.5

Germany, Fed. Rep. of.
Italy...............................
Netherlands..................

N ote.—Rates shown are mainly those at which the central bank either
discounts or makes advances against eligible commercial paper and/or
government securities for commercial banks or brokers. For countries with

Country

Month
effective
Sept.
Sept.
June
Apr.
June
May

1976
1975
1977
1977
1942
1977

Per
cent
6.0
8.0
1.5
8.0
5.0

United Kingdom..........

Month
effective
Sept.
Oct.
July
May
Oct.

1976
1976
1977
1977
1970

more than one rate applicable to such discounts or advances, the rate
shown is the one at which it is understood the central bank transacts the
largest proportion of its credit operations.

3.30 FOREIGN SHORT-TERM INTEREST RATES
Per cent per annum, averages of daily figures
1974

Country, or type

1975

1977

1976
Feb.

1 Euro-dollars........
2 United Kingdom.
3 Canada................
4
5
6
7

Apr.

May

June

July

11.01
13.34
10.47

7.02
10.63
8.00

5.58
11.35
9.39

5.08
11.56
7.78

5.13
10.31
7.63

5.16
8.59
7.58

5.80
7.63
7.44

5.78
7.81
7.16

5.80
7.77
7.27

9.80

4.87
3.01
5.17
7.91

4.19
1.45
7.02
8.65

4.64
1.68
6.04
9.81

4.70
2.88
5.73
9.87

4.57
2.61
4.89
9.33

4.43
3.98
3.03
9.13

4.24
3.80
2.84
9.01

4.20
3.01
3.05
8.67

10.37
6.63
11.64

16.32
10.25
7.70

15.86
7.59
7.50

16.57
7.07
7.20

16.26
7.01
6.46

15.49
6.94
5.75

14.65
6.88
6.05

14.09
6.85
6.25

Germany
Switzerland.
Netherlands.
France........

8 Italy. . . .
9 Belgium.
10 Japan. . .

N ote.—Rates are for 3-month interbank loans except for—Canada,
finance company paper; Belgium, time deposits of 20 million francs and

3.31

Mar.

over; and Japan, loans and discounts that can be called after being held
over a minimum of two month-ends.

FOREIGN EXCHANGE RATES
Cents per unit of foreign currency
Country/currency

1 Australia/dollar..................
2 Austria/shilling...................
3 Belgium/franc.....................
4 Canada/dollar.....................
5 Denmark/krone.................

1974

143.89
5.3564
2.5713
102.26
16.442

1975

1977

1976
Feb.

Mar.

Apr.

May

June

July

109.94
5.8822
2.7258
95.125
17.038

110.53
5.9252
2.7509
95.103
16.710

110.31
5.9533
2.7700
95.364
16.638

110.80
5.9647
2.7713
94.549
16.544

112.20
6.1691
2.8208
94.230
16.769

26.296
20.075
41.812
11.313
171.74

24.899
20.133
42.119
11.310
171.90

24.530
20.190
42.394
11.320
171.85

24.524
20.240
42.453
11.286
171.91

24.902
20.607
43.827
11.342
172.26

130.77
5.7467
2.7253
98.30
17.437

101.41
16.546

109.04
5.8453
2.7114
97.295
16.891

27.285
23.354
40.729
11.926
222.16

25.938
20.942
39.737
11.148
180.48

26.169
20.083
41.582
11.285
171.03

122.15
5.5744
2.5921

6
7
8
9
10

26.565
Finland /markka.................
20.805
France/franc.......................
38.723
Germany/deutsche m ark...
12.460
India/rupee.........................
Ireland/pound..................... 234.03

11
12
13
14
15

Italy/lira..............................
Japan/yen...........................
Malaysia/ringgit.................
Mexico/peso.......................
Netherlands/guilder...........

16
17
18
19
20

New Zealand/dollar...........
Norway/krone....................
Portugal/escudo.................
South Africa/rand..............
Spain/peseta.......................

140.02
18.119
3.9506
146.98
1.7337

121.16
19.180
3.9286
136.47
1.7424

99.115
18.327
3.3159
114.85
1.4958

95.192
18.904
3.0717
115.00
1.4475

95.689
19.035
2.5778
115.00
1.4530

96.129
18.909
2.5752
114.93
1.4536

96.002
18.956
2.5818
115.00
1.4491

96.264
18.915
2.5802
114.88
1.4404

97.160
19.023
2.5953
114.98
1.2382

21
22
23
24

Sri Lanka/rupee.................
Sweden/krona.....................
Switzerland/franc...............
United Kingdom/pound. . .

14.978
22.563
33.688
234.03

14.385
24.141
38.743
222.16

11.908
22.957
40.013
180.48

11.442
23.543
39.669
171.03

12.820
23.726
39.209
171.74

13.676
23.004
39.582
171.90

13.700
22.962
39.694
171.85

13.664
22.625
40.170
171.91

13.700
22.991
41.487
172.26

84.11

82.20

89.68

90.55

90.45

90.13

89.99

89.91

88.67

M emo:
25 United States/dollar 1........

.15372
.34302
41.682
8.0000
37.267

.15328
.33705
41.753
8.0000
39.632

.12044
.33741
39.340
6.9161
37.846

.11327
.35087
40.011
4.4084
39.813

1 Index of weighted-average exchange value of U S. dollar against cur­
rencies of other G-10 countries plus Switzerland. May 1970 parities = 100.
Weights are 1972 global trade of each of the 10 countries.




.11276
.35687
40.152
4.3978
40.079

.11264
.36339
40.305
4.4076
40.464

.11279
.36046
40.255
4.3890
40.7009

.11295
.36652
40.270
4.3582
40.326

.11330
.37756
40.443
4.3528
40.983

N ote.—Averages of certified noon buying rates in New York for cable
transfers.

A69

Guide to
Tabular Presentation and Statistical Releases
GUIDE TO TABULAR PRESENTATION
S ym bols

p
r
rp
e
c
n.e.c.
Rp’s
IPC’s
G

and

A

b b r e v ia t io n s

Preliminary
Revised
Revised preliminary
Estimated
Corrected
Not elsewhere classified
Repurchase agreements
Individuals, partnerships, and corporations

eneral

In fo rm

SMSA’s
REIT’s
*

Standard metropolitan statistical areas
Real estate investment trusts
Amounts insignificant in terms of the partic­
ular unit (e.g., less than 500,000 when
the unit is millions)
(1) Zero, (2) no figure to be expected, or
(3) figure delayed or, (4) no change (when
figures are expected in percentages).

a t io n

obligations of the Treasury. “ State and local govt.”
also includes municipalities, special districts, and other
political subdivisions.
In some of the tables details do not add to totals
because of rounding.

Minus signs are used to indicate (1) a decrease, (2)
a negative figure, or (3) an outflow.
“ 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

s t a t is t ic a l r e l e a s e s
L

is t

P

u b l is h e d

Sem

ia n n u a l l y

,

w it h

L

atest

B

u l l e t in

R

eference

Anticipated schedule of release dates for individual releases ....................................




Issue

P age

June 1977

A-78

A 70

Board of Governors of the Federal Reserve System
A rthur
H

enry

F.

Bu

C. W

rns,

Steph en S. G

Chairman

D irecto r
E. A n d e r s o n , A ssista n t D irecto r for
C onstruction M anagem ent
G o r d o n B . G r i m w o o d , A ssista n t D irector
and P rogram D irecto r fo r
C ontingency Planning
D

onald

il t o n

W . H ud so n ,

A ssista n t to the

Chairman
J o s e p h R. C o y n e , A ssista n t to the B oard
K e n n e t h A . G u e n t h e r , A ssistan t to the
J a y P a u l B r e n n e m a n , Special A ssista n t

B oard
to the

C oldw

M.

ell

L il l y

S t e p h e n H . A x i l r o d , Staff D irecto r
A r t h u r L. B r o i d a , D eputy Staff D irector
M u r r a y A l t m a n n , A ssistan t to the B oard
P e t e r M . K e i r , A ssistan t to the B oard
S t a n l e y J. S i g e l , A ssistan t to the B oard
N o r m a n d R. V . B e r n a r d , Special A ssistan t

to

the B oard

B oard
F r a n k O ’B r i e n , J r .,

E.
a v id

Counsel to the

Chairman
M

Vice Chairman

OFFICE OF STAFF
DIRECTOR FOR M ONETARY POLICY

OFFICE OF BO ARD MEMBERS
T h o m a s J. O ’C o n n e l l ,

J o h n M . D e n k l e r , S taff D irector
R o b e r t J . L a w r e n c e , D epu ty Staff

D

J. C h a rles P a r tee

P h il ip C . J a c k s o n , J r .

OFFICE OF
STAFF DIRECTOR FOR M AN A G EM EN T

ardner,

P h il ip

a l l ic h

Special A ssista n t to the

B oard
J o s e p h S . S i m s , Special A ssista n t to
D o n a l d J. W i n n , Special A ssistan t

the B oard
to the

DIVISION OF RESEARCH A N D STATISTICS

B oard
J a m e s L . K i c h l i n e , D irecto r
J o s e p h S . Z e i s e l , D eputy D irector
E d w a r d C . E t t i n , A sso cia te D irecto r
J o h n H. K a l c h b r e n n e r , A sso cia te D irector

DIVISION OF D A T A PROCESSING
C h a r l e s L. H a m p t o n , D irector
B r u c e M . B e a r d s l e y , A sso cia te D irector
U y l e s s D . B l a c k , A ssistan t D irecto r
G l e n n L. C u m m i n s , A ssistan t D irecto r
R o b e r t J. Z e m e l , A ssistan t D irecto r

J o h n D . H a w k e , J r .,
B a l d w in B . T u t t l e ,

D a v i d L. S h a n n o n ,
C harles W . W o o d ,




D irector
A ssistan t D irecto r

S enior R esearch

D ivision Officer
G eneral Counsel
D eputy G eneral

Counsel
E. M a n n i o n , A ssistan t G eneral
Counsel
A l l e n L. R a i k e n , A ssistan t G eneral Counsel
C h a r l e s R . M c N e i l l , A ssista n t to the
General Counsel

R obert

DIVISION OF PERSONNEL

E l e a n o r J. S t o c k w e l l ,

LEGAL DIVISION

e t z e l , Senior R esearch D ivision
Officer
R o b e r t A. E i s e n b e i s , A sso cia te R esearch
D ivision Officer
t J o h n J. M i n g o , A sso cia te R esearch D ivision
Officer
J. C o r t l a n d G . P e r e t , A sso cia te Research
D ivision Officer

Ja m e s R . W

D IV IS IO N O F C O N S U M E R A F F A IR S

O F F IC E O F T H E C O N T R O L L E R
J o h n K a k a l e c , C on troller
T y l e r E . W i l l i a m s , J r ., A ssistan t

J a n e t O. H a r t , D irector
N a t h a n i e l E. B u t l e r , A sso cia te D irector
J e r a u l d C. K l u c k m a n , A sso cia te D irecto r

Controller

DIVISION OF ADM INISTRATIVE SERVICES
W a l t e r W . K r e i m a n n , D irector
J o h n D . S m i t h , A ssista n t D irector

OFFICE OF THE SECRETARY
T h e o d o r e E. A l l i s o n ,
G r if f it h L . G a r w o o d ,

OFFICE OF STA FF DIRECTOR FOR
FEDERAL R ESER V E B A N K ACTIVITIES
W il l ia m H . W a l l a c e ,

S ta ff Director

D IVISION OF FEDERAL RESERVE
B A N K EX A M INA TIO N S A N D BUDGETS
A l b e r t R . H a m i l t o n , A ssociate D irector
C l y d e H . F a r n s w o r t h , J r . , A ssistan t D irector
J o h n F . H o o v e r , A ssista n t D irector
P . D . R i n g , A ssista n t D irector

DIVISION OF
FEDERAL RESERVE B A N K OPERATIONS
J a m e s R . K u d l i n s k i , D irector
W a l t e r A . A l t h a u s e n , A ssistan t D irector
B r i a n M. C a r e y , A ssistan t D irector
H a r r y A . G u i n t e r , A ssista n t D irector




*R o b e r t

Secretary
D eputy Secretary
E. M a t t h e w s , A ssistan t Secretary

F . W e n d e l , A ssociate Research
D ivision Officer
J a m e s M. B r u n d y , A ssista n t Research
D ivision Officer
J a r e d J. E n z l e r , A ssista n t Research D ivision
Officer
R o b e r t M. F i s h e r , A ssista n t Research
D ivision Officer
R i c h a r d H . P u c k e t t , A ssista n t Research
D ivision Officer
S t e p h e n P . T a y l o r , A ssista n t Research
D ivision Officer
L e v o n H . G a r a b e d i a n , A ssista n t D irector

t H

elm ut

DIVISION OF BANKING
SUPERVISION A N D REGULATION
J o h n E . R y a n , D irector
fFREDERiCK C. S c h a d r a c k , D eputy D irector
F r e d e r i c k R . D a h l , A ssociate D irector
W i l l i a m W . W i l e s , A ssociate D irector
Ja c k M . E g e r t s o n , A ssistan t D irector
D o n E . K l i n e , A ssistan t D irector
T h o m a s E . M e a d , A ssistan t D irector
R o b e r t S . P l o t k i n , A ssistan t D irector
T h o m a s A. S i d m a n , A ssistan t D irector
S a m u e l H . T a l l e y , A ssistan t D irector
W i l l i a m T a y l o r , A ssistan t D irector
* On loan from the Federal Reserve Bank of Philadelphia,
On loan from the Federal Reserve Bank of New York.

t

DIVISION OF INTERNATIONAL FINANCE
E d w i n M . T r u m a n , D irector
J o h n E . R e y n o l d s , Counselor
R o b e r t F. G e m m i l l , A ssociate D irector
G e o r g e B . H e n r y , A ssociate Director
C h a r l e s J. S i e g m a n , A ssociate Director
R e e d J. I r v i n e , Senior International

Division Officer
Senior International Division
Officer

Sa m u e l P iz e r ,

$ On leave of absence.

A ll

Federal Open Market Committee
A

rthur

F. B

P h il ip E . C o l d w
Stephen S. G
R oger G

u r n s

,

C hairm an

ell

ardner

P

A. V

V ice Chairm an

,

olcker

P h il ip C . Ja c k s o n , Jr .

J. C h a r l e s P a r t e e

D

Law

a v id

M . L il l y

R obert P. M

uffey

aul

Frank E. M

Secretary
D eputy Secretary
N o r m a n d R . V . B e r n a r d , A ssistan t
Secretary
T h o m a s J. O ’C o n n e l l , General Counsel
E d w a r d G . G u y , D eputy G eneral Counsel
B a l d w i n B . T u t t l e , A ssistan t G eneral
Counsel
S t e p h e n H . A x i l r o d , Econom ist

H

ayo

rence

enry

K . R oos

C. W

a l l ic h

o r r is

A sso cia te Econom ist
A ssociate Econom ist
T h o m a s D a v i s , A ssociate Econom ist
R o b e r t E i s e n m e n g e r , A ssociate Econom ist
E d w a r d C . E t t i n , A ssociate Econom ist
J a m e s L . K i c h l i n e , A sso cia te Econom ist
J o h n E . R e y n o l d s , A ssociate Econom ist
K a r l S c h e l d , A ssociate Econom ist
E d w i n M . T r u m a n , A ssociate Econom ist
J o s e p h S . Z e i s e l , A sso cia te Econom ist

A r t h u r L . B r o id a ,

A n a t o l B a lb a c h ,

M u r r a y A ltm a n n ,

R ic h a r d G . D a v is ,

M an ager, System Open M arket A ccount
D eputy M an ager fo r D om estic O perations
S c o t t E . P a r d e e , D eputy M anager for Foreign O perations
A la n R . H o lm e s ,

P e te r D . S te r n lig h t,

Federal Advisory Council
R ic h a r d D . H i l l , f i r s t f e d e r a l r e s e r v e d is t r ic t ,
G ilb e r t F. B r a d le y , t w e l f t h
W

alter

B. W

f e d e r a l r e s e r v e d is tr ic t,

r is t o n , s e c o n d f e d e r a l

D o nald E. L asa ter,

t h ir d f e d e r a l

e ir , f o u r t h

R ic h a r d H . V

federal

f if t h

J. W . M

federal

Frank A . Plum m er,




federal

federal

aughan

,

n in t h

feder al

cL e a n

,

tenth

federal

RESERVE DISTRICT

r e s e r v e d is t r i c t

r e s e r v e d is t r i c t

e ig h t h

RESERVE DISTRICT

r e s e r v e d is t r i c t

Jo h n H . L u m p k i n ,

seventh

r e s e r v e d is t r i c t

r e s e r v e d is t r i c t

M . B rock W

E d w a r d B y r o n S m it h ,
r e s e r v e d is t r i c t

r e s e r v e d is t r i c t

R o g e r S . H il l a s ,

President
Vice President

six t h

B en F. L o v e ,

federal

eleventh

RESERVE DISTRICT
H e r b e r t V . P r o c h n o w , Secretary
W illia m

J. K o r s v i k ,

A ssociate Secretary

federal

A73

Federal Reserve Banks, Branches, and Offices
FEDERAL RESERVE BANK,
branch, or facility
Zip

Chairman
Deputy Chairman

President
First Vice President

BOSTON* ...............

02106

Louis W. Cabot
Robert M. Solow

Frank E. Morris
James A. McIntosh

NEW YORK* .........

10045

Buffalo ................

14240

Frank R. Milliken
Robert H. Knight
Paul A. Miller

Paul A. Volcker
Thomas M. Timlen
John T. Keane

PHILADELPHIA

19105

John W. Eckman
Werner C. Brown

David P. Eastburn
Richard L. Smoot

CLEVELAND*

44101

Horace A. Shepard
Robert E. Kirby
Lawrence H. Rogers, II
G. Jackson Tankersley

Willis J. Winn
Walter H. MacDonald

E. Angus Powell
E. Craig Wall, Sr.
I. E. Killian
Robert C. Edwards

Robert P. Black
George C. Rankin

Cincinnati ............. 45201
Pittsburgh ............. 15230
RICHMOND* ............23261
Baltimore ................ 21203
Charlotte ................ 28230
Culpeper Communications
and Records Center.. 22701
ATLANTA ............... 30303
Birmingham ..........
Jacksonville ..........
Miami ...................
Nashville ...............
New Orleans .........

35202
32203
33152
37203
70161

CHICAGO* ............. 60690
Detroit ................... 48231
ST. LOUIS ............... 63166
Little Rock ............ 72203
Louisville ............. 40201
Memphis ............... 38101
MINNEAPOLIS

55480

Helena ................... 59601
KANSAS CITY

64198

Denver ................. 80217
73125
Oklahoma City
Omaha .................. 68102
DALLAS .................. 75222
El Paso .................. 79999
Houston ................ 77001
San Antonio .......... 78295
SAN FRANCISCO ... .94120
Los Angeles ..........
Portland ................
Salt Lake City ......
Seattle ...................

90051
97208
84110
98124

Vice President
in charge of branch

Robert E. Showalter
Robert D. Duggan

Jimmie R. Monhollon
Stuart P. Fishburne
Albert D. Tinkelenberg

H. G. Pattillo
Clifford M. Kirtland, Jr.
William H. Martin, III
Gert H. W. Schmidt
David G. Robinson
John C. Bolinger
George C. Cortright, Jr.

Monroe Kimbrel
Kyle K. Fossum

Peter B. Clark
Robert H. Strotz
Jordan B. Tatter

Robert P. Mayo
Daniel M. Doyle

Edward J. Schnuck
William B. Walton
Ronald W. Bailey
James C. Hendershot
Frank A. Jones, Jr.

Lawrence K. Roos
Donald W. Moriarty

James P. McFarland
Stephen F. Keating
Patricia P. Douglas

Mark H. Willes
Clement A. Van Nice

Harold W. Andersen
Joseph H. Williams
A. L. Feldman
James G. Harlow, Jr.
Durward B. Varner

Roger Guffey
Henry R. Czerwinski

Irving A. Mathews
Charles T. Beaird
Gage Holland
Alvin I. Thomas
Marshall Boykin, III

Ernest T. Baughman
Robert H. Boykin

Joseph F. Alibrandi
Cornell C. Maier
Joseph R. Vaughan
Loran L. Stewart
Sam Bennion
Lloyd E. Cooney

John J. Balles
John B. Williams

Hiram J. Honea
Edward C. Rainey
W. M. Davis
Jeffrey J. Wells
George C. Guynn

William C. Conrad

John F. Breen
Donald L. Henry
L. Terry Britt

John D. Johnson

Wayne W. Martin
William G. Evans
Robert D. Hamilton

Fredric W. Reed
J. Z. Rowe
Carl H. Moore

Richard C. Dunn
Angelo S. Carella
A. Grant Holman
James J. Curran

*
Additional offices of these Banks are located at Lewiston, M aine 04240; W indsor Locks, Connecticut 06096; Cranford,
New Jersey 07016; Jericho, New York 11753; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West Virginia
25311; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202.




A 74

Federal Reserve Board Publications
Available from Publications Services, Division of A d­
ministrative Services, Board of Governors of the Fed­
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S u r v e y o f F in a n c ia l C h a r a c te r is tic s o f C o n ­
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S u r v e y o f C h a n g e s in F a m i l y F i n a n c e s . 1968. 321
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R e p o r t o f t h e J o in t T r e a s u r y -F e d e r a l R e se r v e
S tu d y o f th e
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M a r k e t . 1969. 48 p p . $.25 e a c h ; 10 or m o r e to
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J o in t T r e a s u r y -F e d e r a l R e se r v e S t u d y o f t h e
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F u n c t i o n s . 1974. 125 pp.

and

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B a n k in g a n d M o n e t a r y S t a t i s t i c s ,
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M o n e t a r y S t a t i s t i c s , 1941-1970.
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M ark et

P o lic ie s

d u res— S ta ff

and

S tu d ie s .

O p e r a tin g

P roce­

1971. 218 p p . $2.00
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ea ch ; 10 or m o r e to o n e
R e a p p r a is a l o f t h e F e d e r a l R e s e r v e D is c o u n t
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B a n k s . 1973. 271 p p . $3.50 e a ch ; 10 or m o r e
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I m p r o v in g t h e M o n e t a r y A g g r e g a t e s (R e p o r t o f th e
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A n n u a l P e r c e n t a g e R a t e T a b l e s (Truth in Lend­

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Federal R eserve B oard Publications

CONSUMER EDUCATION PAMPHLETS
(Short pamphlets suitable for classroom use. Multiple
copies available without charge.)
T h e E q u a l C r e d it O p p o r t u n i t y A c t a n d . . . A g e
T h e E q u a l C r e d it O p p o r t u n i t y A c t a n d . . .
D o c to r s, L a w y e r s,
S mall
R e t a il e r s ,
and
O t h e r s W h o M a y P r o v i d e I n c i d e n t a l C r e d it
T h e E q u a l C r e d it O p p o r t u n i t y A c t a n d .
W om en
F a ir C r e d it B i l l i n g
If Y ou B o rr o w T o B u y S to ck
U.S. C u r r e n c y
W h a t T r u t h in L e n d i n g M e a n s t o Y o u

STAFF ECONOMIC STUDIES
Studies and papers on economic and financial subjects
that are of general interest in the field of economic
research.
Summaries Only Printed in the B ulletin
(Limited supply of mimeographed copies of full text
available upon request for single copies.)
T he G r o w th
1 9 5 6 -7 3 ,

o f M u ltib a n k

H o ld in g

C o m p a n ie s :
1976. 27

by Gregory E. Boczar. Apr.

pp.
E x te n d in g M e r g e r A n a ly s is B e y o n d t h e S in g le M a r k e t F r a m e w o r k , b y S te p h e n A . R h o a d e s .
M a y 1976. 25 p p .
S e a s o n a l A d j u s t m e n t o f M x— C u r r e n t l y P u b ­
l i s h e d a n d A l t e r n a t i v e M e t h o d s , by Edward
R . Fry. May 1976. 22 pp.
E f f e c t s o f NOW A c c o u n t s o n C o s t s a n d E a r n i n g s
o f C o m m e r c i a l B a n k s in 1974-75, by John D.
P a u lu s . Sept. 1976. 49 pp.
R e c e n t T r e n d s in L o c a l B a n k i n g M a r k e t S t r u c ­
t u r e , b y S a m u e l H. T a lle y . M a y 1 9 7 7 . 2 6 p p .

Printed

in

Full

in the

REPRINTS
(Except for Staff Papers, Staff Economic Studies, and
some leading articles, most of the articles reprinted do
not exceed 12 pages.)
R e v is e d

In d ex

of

M a n u fa c tu r in g

C a p a c ity ,

Staff Economic Study by Frank de Leeuw with
Frank E. Hopkins and Michael D. Sherman. 1 1 /6 6 .
U.S.

I n te r n a tio n a l
T r a n s a c tio n s :
1 9 6 0 -6 7 . 4 /6 8 .
M e a s u r e s o f S e c u r i t y C r e d i t . 12/70.




5/73.
C r e d it-C a r d a n d C h e c k -C r e d it P la n s a t C om m er­
c i a l B a n k s . 9/73.
R a t e s o n C o n s u m e r I n s t a l m e n t L o a n s . 9/73.
N e w S e r ie s f o r L a r g e M a n u f a c t u r in g C o r p o r a ­
t i o n s . 10/73.
U .S . E n e r g y S u p p l i e s a n d U s e s , Staff Economic

Study by Clayton Gehman. 12/73.
I n f l a t i o n a n d S t a g n a t i o n in M a j o r F o r e i g n I n ­
d u s t r i a l C o u n t r i e s . 10/74.
T h e S t r u c t u r e o f M a r g i n C r e d i t . 4/75.
N e w S t a t i s t i c a l S e r ie s o n L o a n C o m m itm e n ts a t
S e l e c t e d L a r g e C o m m e r c i a l B a n k s . 4/75.
R e c e n t T r e n d s in F e d e r a l B u d g e t P o l i c y . 7/75.
R e c e n t D e v e l o p m e n t s in I n t e r n a t i o n a l F i n a n c i a l
M a r k e t s . 10/75.
M IN N IE : A S m a l l
V e rs io n
of
th e
MIT-PENN-SSRC E c o n o m e t r i c M o d e l , Staff

Economic Study by Douglas Battenberg, Jared J.
Enzler, and Arthur M . Havenner. 11/75.
A n A s s e s s m e n t o f B a n k H o l d i n g C o m p a n ie s , Staff
Economic Study by Robert J. Lawrence and
Samuel H . Talley, 1/76.
I n d u s t r i a l E l e c t r i c P o w e r U s e . 1/76.
R e v i s i o n o f M o n e y S t o c k M e a s u r e s . 2/76.
S u r v e y o f F i n a n c e C o m p a n ie s , 1975. 3/76.
I n d u s t r i a l P r o d u c t i o n — 1976

Staff Economic Studies shown in list below.

A

R e v is e d M e a s u r e s o f M a n u f a c t u r i n g C a p a c it y
U t i l i z a t i o n . 10/71.
R e v i s i o n o f B a n k C r e d i t S e r i e s . 12/71.
A s s e ts a n d L ia b ilit ie s o f F o r e ig n B r a n c h e s o f
U .S . B a n k s . 2/72.
B a n k D e b its , D e p o s its , a n d D e p o s it T u r n o v e r —
R e v i s e d S e r i e s . 7/72.
Y i e l d s o n N e w l y I s s u e d C o r p o r a t e B o n d s . 9/72.
R e c e n t A c t i v i t i e s o f F o r e i g n B r a n c h e s o f U .S .
B a n k s . 10/72.
R e v i s i o n o f C o n s u m e r C r e d i t S t a t i s t i c s . 10/72.
O n e - B a n k H o l d i n g C o m p a n ie s B e f o r e t h e 1970
A m e n d m e n t s . 12/72.
Y ie ld s o n R e c e n t ly O ff e r e d C o r p o r a te B o n d s.

R e v is e d S e r ie s f o r M em b er B a n k
A g g r e g a t e R e s e r v e s . 4/76.

B ulletin

T rend s

in

A 75

D e p o sits

and

Revision. 6/76.

F e d e r a l R e s e r v e O p e r a t i o n s in P a y m e n t M e c h a ­
n ism s: A S u m m a r y . 6/76.
R e c e n t G r o w t h in A c t i v i t i e s o f U .S . O f f i c e s o f
B a n k s . 10/76.
N e w E s t im a te s o f C a p a c ity U t i l i z a t i o n : M a n u ­
f a c t u r i n g a n d M a t e r i a l s . 11/76.
U .S . I n t e r n a t i o n a l T r a n s a c t i o n s in a R e c o v e r i n g
E c o n o m y . 4/77.
B a n k H o ld in g C om p an y F in a n c ia l D e v e lo p m e n ts
in 1976. 4/77.
C h a n g e s in B a n k L e n d i n g P r a c t i c e s , 1976. 4/77.
S u r v e y o f T erm s o f B a n k L e n d in g — N e w S e r ie s .

5/77.
C h a n g e s in T im e a n d S a v i n g s D e p o s i t s a t
m e r c i a l B a n k s , O c t . -Jan. 1977. 6/77.
T h e C o m m e r c i a l P a p e r M a r k e t . 6/77.

C om ­

A76

Index to Statistical Tables
References are to pages A-3 through A-68 although the prefix “A” is omitted in this index
ACCEPTANCES, bankers, 11, 25, 27
Agricultural loans, commercial banks, 18, 20-22, 26
Assets and liabilities (See also Foreigners):
Banks, by classes, 16, 17, 18, 20-23, 29
Domestic finance companies, 39
Federal Reserve Banks, 12
Nonfinancial corporations, current, 38
Automobiles:
Consumer instalment credit, 42, 43
Production, 48, 49
BANKERS balances, 16, 18, 20, 21, 22
(See also Foreigners)
Banks for cooperatives, 35
Bonds (See also U.S. Govt, securities):
New issues, 36, 37
Yields, 3
Branch banks:
Assets and liabilities of foreign branches of U.S.
banks, 62
Liabilities of U.S. banks to their foreign
branches, 23
Business activity, 46
Business expenditures on new plant and
equipment, 38
Business loans (See Commercial and industrial loans)
CAPACITY utilization, 46, 47
Capital accounts:
Banks, by classes, 16, 17, 19, 20
Federal Reserve Banks, 12
Central banks, 68
Certificates of deposit, 23, 27
Commercial and industrial loans:
Commercial banks, 15, 18, 23, 26
Weekly reporting banks, 20, 21, 22, 23, 24
Commercial banks:
Assets and liabilities, 3, 15-18, 20-23
Business loans, 26
Commercial and industrial loans, 24
Consumer loans held, by type, 42, 43
Loans sold outright, 23
Number, by classes, 16, 17, 19
Real estate mortgages held, by type of holder and
property, 41
Commercial paper, 3, 24, 25, 27, 39
Condition statements (See Assets and liabilities)
Construction, 46, 50
Consumer instalment credit, 42, 43
Consumer prices, 46, 51
Consumption expenditures, 52, 53
Corporations:
Profits, taxes, and dividends, 38
Security issues, 36, 37, 65
Cost of living (See Consumer prices)
Credit unions, 29, 42, 43
Currency and coin, 5, 16, 18
Currency in circulation, 4, 14
Customer credit, stock market, 28
DEBITS to deposit accounts, 13
Debt (See specific types of debt or securities)
Demand deposits:
Adjusted, commercial banks, 13, 15, 19
Banks, by classes, 16, 17, 19, 20-23




Demand deposits—Continued
Ownership by individuals, partnerships, and
corporations, 25
Subject to reserve requirements, 15
Turnover, 13
Deposits (See also specific types of deposits):
Banks, by classes, 3, 16, 17, 19, 20-23, 29
Federal Reserve Banks, 4, 12
Subject to reserve requirements, 15
Discount rates at F.R. Banks (See Interest rates)
Discounts and advances by F.R. Banks (See Loans)
Dividends, corporate, 38
EMPLOYMENT, 46, 47
Euro-dollars, 15, 27
FARM mortgage loans, 41
Farmers Home Administration, 41
Federal agency obligations, 4, 11, 12, 13, 34
Federal and Federally sponsored credit agencies, 35
Federal finance:
Debt subject to statutory limitation and
types and ownership of gross debt, 32
Receipts and outlays, 30, 31
Treasury operating balance, 30
Federal Financing Bank, 35
Federal funds, 3, 6, 18, 20, 21, 22, 27, 30
Federal home loan banks, 35
Federal Home Loan Mortgage Corp., 35, 40, 41
Federal Housing Administration, 35, 40, 41
Federal intermediate credit banks, 35
Federal land banks, 35, 41
Federal National Mortgage Assn., 35, 40, 41
Federal Reserve Banks:
Condition statement, 12
Discount rates (See Interest rates)
U.S. Govt, securities held, 4, 12, 13, 32, 33
Federal Reserve credit, 4, 5, 12, 13
Federal Reserve notes, 12
Federally sponsored credit agencies, 35
Finance companies:
Assets and liabilities, 39
Busines credit, 39
Loans, 20, 21, 22, 42, 43
Paper, 25, 27
Financial institutions, loans to, 18, 20-23
Float, 4
Flow of funds, 44, 45
Foreign:
Currency operations, 12
Deposits in U.S. banks, 4, 12, 19, 20, 21, 22
Exchange rates, 68
Trade, 55
Foreigners:
Claims on, 60, 61, 66, 67
Liabilities to, 23, 56-59, 64-67
GOLD:
Certificates, 12
Stock, 4, 55
Government National Mortgage Assn., 35, 40, 41
Gross national product, 52, 53
HOUSING, new and existing units, 50

Federal Reserve Bulletin □ August 1977

INCOME, personal and national, 46, 52, 53
Industrial production, 46, 48
Instalment loans, 42, 43
Insurance companies, 29, 32, 33, 41
Insured commercial banks, 17, 18, 19
Interbank deposits, 16, 17, 20, 21, 22
Interest rates:
Bonds, 3
Business loans of banks, 26
Federal Reserve Banks, 3, 8
Foreign countries, 68
Money and capital market rates, 3, 27
Mortgages, 3, 40
Prime rate, commercial banks, 26
Time and savings deposits, maximum rates, 10
International capital transactions of the United
States, 56-67
International organizations, 56-61, 65-67
Inventories, 52
Investment companies, issues and assets, 37
Investments (See also specific types of investments):
Banks, by classes, 16, 17, 18, 20, 21, 22, 29
Commercial banks, 3, 15, 16, 17, 18
Federal Reserve Banks, 12, 13
Life insurance companies, 29
Savings and loan assns., 29
LABOR force, 47
Life insurance companies (See Insurance companies)
Loans (See also specific types of loans):
Banks, by classes, 16, 17, 18, 20-23, 29
Commercial banks, 3, 15-18, 20-23, 24, 26
Federal Reserve Banks, 3, 4, 5, 8, 12, 13
Insurance companies, 29, 41
Insured or guaranteed by U.S., 40, 41
Savings and loan assns., 29
MANUFACTURERS:
Capacity utilization, 46, 47
Production, 46, 49
Margin requirements, 28
Member banks:
Assets and liabilities, by classes, 16, 17, 18
Borrowings at Federal Reserve Banks, 5, 12
Number, by classes, 16, 17, 19
Reserve position, basic, 6
Reserve requirements, 9
Reserves and related items, 3, 4, 5, 15
Mining production, 49
Mobile home shipments, 50
Monetary aggregates, 3, 15
Money and capital market rates (See Interest rates)
Money stock measures and components, 3, 14
Mortgages (See Real estate loans)
Mutual funds (See Investment companies)
Mutual savings banks, 3, 10, 20-22, 29, 32, 33, 41
NATIONAL banks, 17, 19
National defense outlays, 31
National income, 52
Nonmember banks, 17, 18, 19
OPEN market transactions, 11
PERSONAL income, 53
Prices:
Consumer and wholesale, 46, 51
Stock market, 28
Prime rate, commercial banks, 26
Production, 46, 48
Profits, corporate, 38



REAL estate loans:
Banks, by classes, 18, 20-23, 29, 41
Life insurance companies, 29
Mortgage terms, yields, and activity, 3, 40
Type of holder and property mortgaged, 41
Reserve position, basic, member banks, 6
Reserve requirements, member banks, 9
Reserves:
Commercial banks, 16, 17, 18, 20, 21, 22
Federal Reserve Banks, 12
Member banks, 3, 4, 5, 15, 16, 18
U.S. reserve assets, 55
Residential mortgage loans, 40
Retail credit and retail sales, 42, 43, 46
SAVING:
Flow of funds, 44, 45
National income accounts, 53
Savings and loan assns., 3, 10, 29, 33, 41, 44
Savings deposits (See Time deposits)
Savings institutions, selected assets, 29
Securities (See also U.S. Govt, securities):
Federal and Federally sponsored agencies, 35
Foreign transactions, 65
New issues, 36, 37
Prices, 28
Special Drawing Rights, 4, 12, 54, 55
State and local govts.:
Deposits, 19, 20, 21, 22
Holdings of U.S. Govt, securities, 32, 33
New security issues, 36
Ownership of securities of, 18, 20, 21, 22, 29
Yields of securities, 3
State member banks, 17
Stock market, 28
Stocks (See also Securities):
New issues, 36, 37
Prices, 28
TAX receipts, Federal, 31
Time deposits, 3, 10, 15, 16, 17, 19, 20, 21,
22, 23
Trade, foreign, 55
Treasury currency, Treasury cash, 4
Treasury deposits, 4, 12, 30
Treasury operating balance, 30
UNEMPLOYMENT, 47
U.S. balance of payments, 54
U.S. Govt, balances:
Commercial bank holdings, 19, 20, 21, 22
Member bank holdings, 15
Treasury deposits at Reserve Banks, 4, 12, 30
U.S. Govt, securities:
Bank holdings, 16, 17, 18, 20, 21, 22, 29,
32, 33
Dealer transactions, positions, and financing, 34
Federal Reserve Bank holdings, 4, 12, 13, 32, 33
Foreign and international holdings and
transactions, 12, 32, 64
Open market transactions, 11
Outstanding, by type of security, 32, 33
Ownership, 32, 33
Rates in money and capital markets, 27
Yields, 3
Utilities, production, 49
VETERANS Administration, 40. 41
WEEKLY reporting banks, 20-24
Wholesale prices, 46
YIELDS (See Interest rates)

A ll

A 78

The Federal Reserve System
B o u n d a r ie s o f F e d e r a l R e s e r v e
:r'“..V* - :

D is tr ic ts a n d T h e ir B r a n c h

... >,

yvy 4

January 1977

^ .■y, jt

T e r r ito r ie s
" v ■1.... i

V rm tfy t& g a fa C m

LEGEND
—

Boundaries of Federal Reserve Districts

----- Boundaries of Federal Reserve Branch
Territories
Q

Board of Governors of the Federal
Reserve System




®

Federal Reserve Bank Cities

•

Federal Reserve Branch Cities
Federal Reserve Bank Facility