Full text of Federal Reserve Bulletin : August 1977
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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 ■ n 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 731 732 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 eral Reserve System, Washington, D.C. 20551. 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Each volume $1.00, 10 or more of same volume to one address, $.85 each. 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 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