Full text of Federal Reserve Bulletin : August 1980

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V o l u m e 66 □ N

um ber

8 □ A u g u s t 1980

FED ERAL RESERVE

BULLETIN
B o a rd o f G o v e r n o r s o f th e F e d e r a l R e se r v e

S y ste m

W a s h in g to n , D . C .

P u b l ic a t io n s

C o m m it t e e

Joseph R. Coyne, Chairman □ Stephen H. Axilrod □ John M. Denkler
Janet O. Hart □ James L. Kichline □ Neal L. Petersen □ Edwin M. Truman
Michael J. Prell, Staff Director
The F e d e r a l R e s e rv e B u l l e t i n is issued monthly under the direction of the staff publications committee. This committee is responsible for
opinions expressed except in official statements and signed articles. The artwork is provided by the Graphic Communications Section under the
direction of Peter G. Thomas. Editorial support is furnished by the Economic Editing Unit headed by Mendelle T. Berenson.




Table o f Contents
613 P e r s p e c t i v e s o n P e r s o n a l S a v i n g
Discussion of personal saving, which has
attracted increased attention in recent
years, with particular emphasis on its sharp
decline in the 1975-79 business expansion.
627 DOMESTIC FINANCIAL DEVELOPMENTS
i n t h e S e c o n d Q u a r t e r o f 1980
Quarterly report to Congress on financial
developments: interest rates reached rec­
ord levels in early spring and then fell
steeply until they came to a halt near the
end of the period.
635 I n d u s t r i a l P r o d u c t i o n
Output decreased about 1.6 percent in July.
636 S t a t e m e n t s t o C o n g r e s s
Chairman Paul A. Volcker offers his per­
sonal perspective on monetary policy and
stresses the need to maintain financial dis­
cipline in retoring price stability, particular­
ly in light of evidence that inflation under­
cuts other goals such as balanced growth
and full employment, before the Senate
Budget Committee on July 24, 1980. Similar
testimony was presented also to the House
Committee on Banking, Finance and Urban
Affairs, the Senate Committee on Banking,
Housing, and Urban Affairs, the House
Ways and Means Committee, and the
Senate Finance Committee.
641 Governor Nancy H. Teeters presents the
Board’s endorsement of the Consumer
Usury Study Commission Act and offers
the views of the Board on other consumerrelated legislation including its support for
the integration of the Fair Credit Billing Act
and the Electronic Fund Transfer Act, as
well as the amendment to the Truth in




Lending Act that removes the 5 percent
limit on discounts for cash, before the Sub­
committee on Consumer Affairs of the Sen­
ate Committee on Banking, Housing, and
Urban Affairs, July 24, 1980.
642 Governor Henry C. Wallich testifies on a
bill that would facilitate the establishment
and operation of export trading companies
and recommends a ceiling on the ownership
interest held by either individual banks or a
group of banks in an export trading com­
pany, before the Senate Committee on Bank­
ing, Housing, and Urban Affairs, July 25,
1980.
644 Chairman Volcker discusses the actions
taken by the Depository Institutions Dereg­
ulation Committee (DIDC) including the
DIDC’s most significant decision—adjust­
ing the ceiling rates payable on both 6- and
30-month floating ceiling deposits by chang­
ing the relationship of the rates to those on
the corresponding Treasury securities and
establishing minimum ceilings for each of
the deposit categories—before the Senate
Committee on Banking, Housing, and Ur­
ban Affairs, August 5, 1980.
649 A n n o u n c e m e n t s
Letter to Congress concerning monetary
target ranges for 1981.
Tentative schedule for implementation of
the Monetary Control Act.
Change in discount rate.
Return of special deposits held under the
Board’s credit restraint program.
Amendment to Regulation Z that increases
the tolerance for accuracy in annual per­
centage rates for certain mortgage transac­
tions. (See Legal Developments.)

Approval of policy for assessment of civil
money penalties for violation of certain
laws.
Amendment to Regulation T that permits
brokers and dealers to lend on mutual funds
shares.
Interpretation of Regulation Y pertaining to
operations subsidiaries of bank holding
companies. (See Legal Developments.)

Al

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

A3
A46
A54
A69

Domestic Financial Statistics
Domestic Nonfinancial Statistics
International Statistics
Special Tables

A73 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 ta tis tic a l R e le a s e s

A74 B o a r d o f G o v e r n o r s a n d S t a f f

Changes in Board staff.
Admission of one state bank to member­
ship in the Federal Reserve System.
653 L e g a l D e v e l o p m e n t s
Amendments to Regulations D and Z and
the credit restraint program; interpretation
of Regulation Y; various rules and bank
holding company and bank merger orders;
and pending cases.




A76 F e d e r a l O p e n M a r k e t C o m m i t t e e
a n d S ta f f ; A d v is o r y C o u n c ils
a h

Fed eral R e serve Ba n k s ,
B r a n c h e s , a n d O f f ic e s

A78 F e d e r a l R e s e r v e B o a r d
P u b lic a tio n s
A83 INDEX TO STATISTICAL TABLES
A85 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

Perspectives on Personal Saving
Carol Corrado and Charles Steindel o f the N a­
tional Income Section o f the Board's Division o f
Research and Statistics prepared this article
with the assistance o f Jeffrey Fuhrer. Footnotes
appear at the end o f the article.
Personal saving behavior has recently attracted
attention both as an element in the analysis of
cyclical movements in the economy and as an in­
dicator of prospects for capital formation. One
focus of discussion—and frequently of con­
cern—has been the sharp decline in the ratio of
personal saving to disposable personal income
during the 1975-79 business expansion.
Consumers often step up their rate of saving
during periods of economic expansion, after hav­
ing spent relatively large proportions of their in­
come to maintain their living standards when the
economy fell into recession. During the most re­
cent expansion, the behavior of personal saving
did not follow this pattern. Immediately follow­
ing the cyclical trough in early 1975, the rate of
personal saving reached an extremely high level
as income was buoyed by the payment of a tax
rebate. Then in 1976 the personal saving rate be­
gan to fall, and from the second half of 1976
through the first half of 1979, it generally fluc­
tuated around 5V4 percent, about 1 percentage
point below its postwar mean (chart 1). Sub­
sequently, the saving rate fell sharply further,
and by the end of 1979 it had reached 3V2 per­
cent, the lowest quarterly level in almost 30
years. In the first half of 1980, the rate of per­
sonal saving rose somewhat; still, it remained in
a historically low range as the economy entered
a period of business recession.
The analysis that follows examines these re­
cent developments in personal saving behavior.
The first section takes a detailed look at both per­
sonal saving flows and—the other side of the
coin—consumer spending patterns. Because the
behavior of consumers is influenced strongly by
their holdings of assets or debts, in the next sec­




tion attention turns to the balance sheet of the
household sector. Personal saving is then viewed
within the broader context of aggregate saving
and capital formation. The concluding section
summarizes the findings and discusses some of
their implications.

P e r s o n a l S a v in g a n d S p e n d in g

Saving may be described as the abstention from
current consumption, or it may be viewed as the
purchase of a capital asset. This section first dis­
cusses broad trends in the composition of per­
sonal saving flows characterized by type of asset
acquired. That discussion is followed by a more
detailed examination of the allocation of dis­
posable personal income to gain further insight in­
to the forces that have been motivating increases
in spending at the expense of saving.
Table 1 lays out a framework that is relevant as
background for analyzing saving flows. It shows
1. Personal saving rate
Percent

Average value 1952-79

National income and product accounts data, plotted annually to 1967
and quarterly from 1967 Q4. Shaded areas represent periods of busi­
ness recession as defined by the National Bureau of Economic Re­
search (NBER).

614

Federal Reserve Bulletin □ August 1980

1. Relation of current and capital account transactions
with stock-flow reconciliation
Type of account and type of transaction
Current account

Capital account

Income or expenditure
transaction

Household balance sheet
transaction
(2)

(1)

Net investment in tangible
assets

Disposable personal
income

p lu s : Net financial investment

(net acquisition of
financial assets less
net increase in
liabilities)

le s s : Personal outlays
equ a ls:

Personal saving

eq uals:

Household net investm ent,
or personal saving

p lu s : Net revaluations of

physical and financial
assets due to
price changes
eq u a ls:

Change in the value of
consum er net worth

the relation between transactions on the current
account, in which saving is measured as the
difference between disposable personal income
and personal outlays, and transactions on the
capital account, in which saving is measured as
the sum of purchases of tangible and financial
assets minus increases in debt. These two mea­
sures of personal saving are in principle equiv­
alent if they rest on consistent definitions of net
worth and of the income earned by the net worth.

The C om position o f P erson al Saving

less net increase in liabilities. Financial as­
sets acquired by households include deposits and
other claims on financial institutions, as well as
claims directly held against governments, for­
eigners, and corporate and noncorporate busi­
ness. Increases in household debt are sub­
tractions from the investment flows, and, on net,
NIPA personal saving excluding capital ex­
penditures on new homes is a measure of funds
made available by households for use by other
sectors.1
Purchases of consumer durable goods are part
of consumption in the NIPA; hence personal sav­
ing is reduced by the value of outlays on these
goods. The purchase of a durable good such as
an automobile or a home appliance, however,
constitutes for many people an investment in a
tangible asset rather than a current consumption
outlay. The reasoning is that these goods have
long lives and provide services that are con­
sumed by the owners over those lives. There­
fore, in recognition of the investment character
of durable goods, for some purposes it is desir­
able to modify the NIPA concept of personal
saving by adding in the net purchases of con­
sumer durables.2
The top curve of chart 2 shows this broader
measure of total consumer investment (or sav­
ing) that includes consumer durables as well as
new owner-occupied housing and net financial

2. Components of consumer investment
relative to disposable personal income
Percent

In the national income and product accounts
(NIPA), personal saving is measured on current
account, as shown in column 1 of table 1. In
the equivalent capital account transactions, de­
scribed in column 2, the major type of house­
hold tangible investment is the purchase of new
housing by owner-occupants, net of deprecia­
tion. New housing predominates in the household
investment total because most purchases of
existing homes are also sales, or disinvestments,
by other individuals and cancel out for the sector
as a whole.
Apart from net capital expenditures on homes,
household investment according to NIPA con­
cepts consists mainly of net financial invest­
ment—that is, net acquisition of financial assets



Housing
Net financial investment

NIPA data. Shaded areas represent periods of business recession as
defined by the NBER.
Housing covers expenditures by owner-occupants only. Both con­
sumer durables and housing are net of capital consumption. Net finan­
cial investment is derived as a residual and includes net investment in
noncorporate business.

P ersp e c tiv e s on P erson al Saving

615

2. Average rate of consumer investment, selected periods 1955-791
Percent of disposable personal income
Item

r 1955-79

1955-64

1965-74

1975-79

1975-76

1977-79

NIPA saving plus
net purchases of consum er d u ra b le s ......................

9.5

8.2

10.8

8.9

9.7

8.4

Net purchases of tangible assets2 ..........................
Consumer durables................................................
Owner-occupied housing.......................................
Net financial investment3 .........................................
Acquisition of financial assets3............................
Less: Increase in liabilities...................................
MEMO: NIPA saving r a te ...................................................

6.5
3.4
3.1
3.0
10.4
7.4

6.4
2.4
4.0
1.7
7.5
5.9

6.4
3.9
2.5
4.4
10.5

6.7
3.4
3.3

2.2
11.6

5.4
3.0
2.4
4.3

7.4
3.6
3.8

11.0

9.4

6.1

5.7

6.6

11.9
10.9

6.9

5.5

6.7

4.8

6.1

1.0

1. All rates calculated as average value of item for the period, di­
vided by average value of disposable personal income. Details may
not sum to totals because of rounding.
2. Excluding nonprofit plant and equipment expenditures.
3. Derived as residual; includes net investment in noncorporate
business.

S o u r c e s . The N ational Incom e an d P roduct A ccounts o f the
U nited S tates, 1929-74: Statistical Tables (Department of Commerce,
Bureau of Economic Analysis); subsequent issues of the Survey o f
Current Business; Flow o f Funds A ccoun ts 1949-78 (Board of Gover­

investment. The middle curve excludes durables
and is the more widely used NIPA concept of
personal saving. Finally, the bottom portion is
the rate of net financial household investment
(which includes net investment in noncorporate
business).
The composition of the broad measure of sav­
ing has varied substantially over subperiods of
the past 25 years (see table 2). Between 1955 and
1964, investment in owner-occupied housing was
at a notably high rate. As the chart highlights,
this strength was especially evident during the
mid-1950s, when household formation was rapid
and demands for shelter pent up during World
War II and its aftermath were still being worked
off. From the mid- to the late 1960s, all measures
of saving trended upward; then a leveling-off be­
gan that lasted through the mid-1970s. During
this ten-year period of high saving, the rate of
household acquisition of durable goods and fi­
nancial assets was particularly strong.
For the five years ending in 1979 the broad
measure of saving averaged about 2 percentage
points lower than the levels that had prevailed
during the high-saving period of 1965-74. The to­
tal dropped as increases in the rate of acquisition
of both owner-occupied housing and financial as­
sets were offset by a rise in household borrowing
of more than 3 percentage points. In part,
these changes in the composition of consumer
investment may have reflected demographic
trends: During the late 1970s a significant
portion of the nation’s population matured to the
age when traditionally households are formed
and their homes are equipped. On the average,
this age group devotes a relatively low propor­

tion of its income to saving, as the high propensi­
ty to acquire tangible assets is typically out­
weighed by low rates of net financial investment
associated with stepped-up borrowing.
During this five-year period, however, the
distinct break in the orientation of consumer
investment appears too abrupt to have been
solely demographic in origin. Between 197576—a period that encompasses the trough of the
last recession—and 1977-79, the rate of total tan­
gible investment jumped sharply, pushed partic­
ularly by the housing component. Net financial
investment by households fell substantially, as a
modest increase in the rate of acquisition of fi­
nancial assets was more than outweighed by a
dramatic rise in borrowing. The increase in tan­
gible investment and the fall in net financial in­
vestment resulted in a decline in the broad mea­
sure of saving during 1977-79 to about the average
level of the late 1950s and early 1960s.
It has been suggested that during recent years
the accumulation of tangible goods, and the bor­
rowing normally associated with those purchases,
has been bolstered by the anticipation of price
increases. To the extent that stockpiling of tangi­
ble goods is financed by borrowing or liquidation
of other assets, it does not affect the broad mea­
sure of saving. But because the rise in borrowing
outstripped the increase in net tangible invest­
ment in the late 1970s, much of the increase in
funds raised probably financed consumer spend­
ing, including household capital consumption,
rather than the accumulation of durable goods or
housing.
The decline in the NIPA saving rate between
1975-76 and 1977-79 was somewhat larger than




nors of the Federal Reserve System), and subsequent issues of the
flow of funds statistical release.

616

Federal Reserve Bulletin □ August 1980

the fall in the broad measure of saving. The dis­
crepancy is the result of a moderate increase,
0.6 percentage point, in the rate of acquisition of
consumer durables, probably arising from demo­
graphic trends and normal cyclical influences as
well as stockpiling. Inasmuch as the rate of net
purchases of consumer durable goods in 1977-79
was not out of line with historical experience,
factors other than the stockpiling of durable
goods played a more important role in account­
ing for the recent low levels of the NIPA saving
rate. A look at the allocation of disposable per­
sonal income in greater detail is useful in investi­
gating further the overall decline in this rate.

A llocation o f D isposable P ersonal Incom e
To obtain a more complete picture of the pro­
cesses that have been affecting saving, the con­
sumption and investment decisions of individuals
should be viewed together. A good starting point
is the various types of contractual payments that
may be regarded as limiting the discretion con­
sumers have, especially in the short run, over the
disposal of their income. Contributions to pen­
sion funds, payments of life insurance premiums,
scheduled payments of principal on consumer
and mortgage debt, and the like are obvious can­
didates for inclusion in “ contractual” saving.
When individuals have incurred debt, the inter­
est portion of the scheduled payment is a con­
tractual outlay, and the local property tax can be
regarded this way as well.
Table 3 shows the allocation of disposable per­
sonal income based on the simple notion of con­
tractual payments described above. Contractual
saving through increases in pension fund and life
insurance reserves has been rising relative to in­
come since the first half of the 1970s, while the
scheduled liquidation of home mortgage debt has
remained a relatively constant proportion over
the period for which data are available. Thus the
total of these forms of contractual saving, shown
in line 2 of table 3, was more than 1 percentage
point higher in 1977-79 than in the high-saving
period 1970-74.
On the outlay side, interest payments associat­
ed with home mortgages and other types of con­
sumer debt rose continuously in relation to dis­




posable personal income during the late 1960s
and 1970s, and other financial costs also rose;
meanwhile the share of income devoted to prop­
erty taxes paid by homeowners declined slightly
during the second half of the 1970s. On balance,
therefore, when the low-saving period 1977-79 is
compared with the high-saving period 1970-74,
the growth of total contractual outlays, which is
dominated by the rise in interest costs, accounts
for 1 percentage point of the rise of more than 2
percentage points in total NIPA outlays relative
to income.
Another category of obligatory payments en­
compasses outlays on goods and services typi­
cally thought of as “ essential” —household oper­
ation, personal transportation, medical care,
food and clothing, and legal services. These
costs, which were on a downtrend until 1974,
have claimed a growing share of income since
then: in 1977-79 the share was IV2 percent­
age points higher than it had been in the first half
of the decade. A significant part of this increase
presumably reflects the sharp rise in the relative
prices of some of these goods and services, par­
ticularly food and energy items, for which price
elasticities of demand are low in the short run.3
Discretionary saving and outlays are obtained
as residuals—that is, they are calculated by de­
ducting the contractual components from the re­
spective totals. The discretionary saving of indi­
viduals, therefore, consists of investment in
owner-occupied housing and discretionary ac­
quisition of financial assets, minus changes in
debts not associated with scheduled repayments
of mortgages. Most of gross mortgage borrowing
is used to purchase homes or to retire out­
standing mortgage debt and thus produces no
change in saving. But funds raised in mortgage
markets may exceed housing purchases and pos­
sibly finance consumption expenditures. Thus it
is useful to compare gross investment in owneroccupied housing with discretionary mortgage
borrowing to obtain an indicator of the volume of
funds made available for discretionary non­
housing uses. During recent years, discretionary
mortgage borrowing has exceeded new capital
expenditures on homes: in 1977-79 the excess
averaged about 23/4 percent of disposable per­
sonal income, a rise of l 3/4 percentage points
from the 1970-74 average (line 18).4

P ersp e c tiv e s on P erson al Saving

The total decline in discretionary saving,
which more than offset increased saving through
contractual payments, was not solely the result
of increased excess mortgage borrowing. A
sharp rise in nonmortgage borrowing by house­
holds during 1977-79 also played an important
role. On the other hand, households actually in­
creased their propensity to acquire discretionary
financial assets, on the average, during the same
period.5
Discretionary outlays on goods and services,
about one-third o f which consists of purchases of
consumer durables, do not appear to have ris­

617

en significantly in recent years, despite the
marked expansion o f borrowing. In the peak year
of consumer borrowing, 1978, the rate o f discre­
tionary spending was about equal to its average
for the 15 years 1965-79. Then in 1979 the share
devoted to these purchases fell 1 percentage
point, enough just to offset a rise in spending on
essentials that was probably brought about by
the sharp increase in energy prices in 1979. This
development suggests that individuals are begin­
ning to adjust their consumption of discretionary
goods and services to accommodate increases in
the relative prices of essential items.

3. Allocation of disposable personal income, selected periods 1965-791
Percent
Item

1965-79

1965-69

1970-74

1975-79

1975-76

1977-79

1978

1979

1. Disposable personal in com e............................

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

\

D evo ted to contractual paym ents

2. Saving or investment—total ............................
3.
Private pension funds and life insurance2 ..
4.
Scheduled principal payment on home
mortgages3 .............................................
5. Outlays—total....................................................
6.
Interest on installment and home
mortgage debt4 ......................................
7.
Other financial costs5 ....................................
8.
Property tax6 .................................................

n.a.
2.6

n.a.
2.4

3.8
2.3

4.8
3.1

4.4
2.8

5.0
3.3

5.2
3.5

4.8
3.2

n.a.
10.0

n.a.
9.1

1.5
9.7

1.6
10.6

1.6
10.1

1.6
10.8

1.7
10.8

1.6
11.1

5.2
2.7
1.9

4.7
2.4
1.9

5.0
2.6
2.1

5.9
2.9
1.8

5.3
2.9
2.0

6.1
2.9
1.8

6.1
2.9
1.8

6.5
3.0
1.7

47.6

47.6

47.0

48.3

47.9

48.5

48.1

49.0

n.a.

n.a.

5.3

2.9

4.4

2.1

2.0

2.0

4.7
n.a.

4.2
n.a.

4.5
8.9

5.5
8.5

4.5
8.2

6.0
8.7

6.3
8.8

5.9
8.1

n.a.

n.a.

5.5

7.8

5.9

8.7

8.8

8.5

2.9
34.3

2.6
35.2

2.6
34.2

3.3
33.5

2.2
33.2

3.9
33.6

4.3
33.9

3.5
33.0

2.0
6.2

1.8
6.5

1.9
7.3

2.2
5.5

2.1
6.7

2.3
4.8

2.3
4.9

2.3
4.5

n.a.
93.8
81.9

n.a.
93.5
82.8

- 1 .0
92.7
81.1

-2 .3
94.5
81.8

-1 .6
93.3
81.1

-2 .7
95.2
82.1

-2 .5
95.1
82.0

- 2 .6
95.5
82.0

D e vo te d to essentials

9. Goods and services7 .........................................
A vailable fo r discretionary paym en ts

10. Saving or investment—total ............................
11.
Owner-occupied housing,
gross of capital consumption................
12.
Acquisition of financial assets8 ....................
13.
L e ss: home mortgages, gross of
scheduled principal payments9 ............
14.
L ess: consumer credit
and other borrowing10 .........................
15. Outlays—goods and services .........................
M em o

16. Capital consumption11.......................................
17. NIPA personal saving (2+10-16) .................
18. Excess discretionary investment
in housing (11-13) ....................................
19. NIPA personal outlays (5 + 9 + 1 5 + 1 6 )............
20. Total goods and services (9+15) ....................

1. All rates calculated as average value of item for the period, di­
vided by average value of disposable personal income. Details may
not sum to totals because of rounding.
2. Flow of funds data.
3. Federal Reserve Board staff calculation; pertains to single-family
homes only and may not be strictly comparable with data for all own­
er-occupied homes.
4. Interest paid by consumers to business plus net interest paid by
owner-occupants of farm and nonfarm dwellings (NIPA).
5. Consists of financial services furnished without pay by financial
intermediaries and expense of handling life insurance (NIPA).
6. Tax paid by owner-occupants of farm and nonfarm dwellings
(NIPA).
7. Derived from NIPA detail on personal consumption ex­
penditures. The grouping consists of medical outlays; legal services;
household utilities and gasoline and oil; housing services less capital




consumption, net interest, and property taxes paid by owner-occupants; outlays for maintenance of household appliances, motor vehi­
cles, and furnishings and garments; purchases of food (excluding
alcoholic beverages and purchased meals), clothing and shoes, and
local transportation services (excluding taxis).
8. Derived as residual; not strictly comparable to flow of funds
data.
9. Net change in home mortgages (flow of funds) plus line 4.
10. Other consists of other mortgages; other consumer credit; bank
loans, n.e.c.; and other debts.
11. Allowance for owne -occupied housing.
n.a. Not available.
Sources. The National Income and Product Accounts of the
United States, 1929-74; subsequent issues of the Survey of Current
Business; and the Federal Reserve’s flow of funds statistical release,
various issues.

618

Federal Reserve Bulletin □ August 1980

To summarize, developments in the allocation
of household income during the 1977-79 period
reveal that the discretion of consumers over their
income continued to weaken: contractual saving
and outlays, as well as spending on essential
goods and services, increased relative to income
in comparison with the first half of the decade.
On the spending side, the rate of discretionary
consumption was relatively stable, despite a dip
in 1979. This stability was accomplished in the
face of the heightened pressure on household
budgets arising from the sharp advances in the
relative prices of essential goods and services.
Moreover, increasing nominal rates of interest
coupled with growing levels of outstanding debt
led to a sharp rise in interest payments relative
to income. Thus about half of the increase of
more than 2 percentage points in the NIPA out­
lay rate between 1970-74 and 1977-79 is ac­
counted for by the rise in contractual interest
costs; much of the remaining increase resulted
from an advance in the share of income de­
voted to essential goods and services that was
not offset by downward adjustments to other,
discretionary, consumption.6
On the saving side in capital accounts, the rate
of discretionary acquisition of financial assets
has been relatively well maintained. The drop in
personal saving is reflected, instead, predomi­
nantly by the excess of mortgage borrowing over
capital expenditures on housing and also by other
types of consumer borrowing that have grown
faster than the acquisition of assets.

C h a n g e s in C o n s u m e r Ba l a n c e
Sh eets

In the preceding section trends in the disposition
of personal income and their relationship to per­
sonal saving were discussed. In this section, at­
tention turns to balance sheet data that summa­
rize changes in consumer net worth over the past
25 years because personal saving and spending
decisions are influenced by the net worth of con­
sumers, as well as by their income. As shown in
column 2 of table 1, the net worth of consumers
can change through net investment in financial or
tangible assets or through revaluations of the
existing stock of assets (that is, through capital




gains or losses). Calculations of the size and dis­
tribution of capital gains and losses in real terms
are reported, followed by a discussion of the im­
plications of consumer balance sheet positions at
the end of 1979 for near-term trends in saving.7

Trends in C apital Gains an d L osses
The revaluation of an existing asset owing to a
rise in its market value—a nominal capital gain—
does not necessarily increase the asset owner’s
purchasing power over currently produced goods
and services. Purchasing power is enhanced only
if the price of an existing asset rises faster than
the general price level for goods and services; in
that case a real capital gain is said to have oc­
curred. The distinction between nominal and real
capital gains is drawn because widely accepted
theories of consumer behavior emphasize that
spending will be encouraged more by real gains
than by revaluations that serve only to maintain
the purchasing power of existing holdings.
During a period of inflation the distinction be­
tween a nominal and a real capital gain is of par­
ticular relevance to holders of fixed-price assets
and liabilities. As the overall price level rises, the
constant-dollar value of a deposit, such as a noninterest-bearing bank account, falls; the result is
a real capital loss. At the same time, inflation re­
duces the real value of existing debts that have a
fixed rate of interest, thus leading to a real capital
gain. Whether components of consumer balance
sheets that are not fixed in price bring about real
gains or losses during periods of inflation de­
pends upon the course of their prices in relation
to that for goods and services in general.
In any period a real capital gain or loss on an
asset can be calculated by comparing the change
in the constant-dollar purchasing power of the
asset with the cumulated real investment (or sav­
ing) in it. If the real value of the asset has grown
more (less) than real investment, then a real capi­
tal gain (loss) has occurred. Table 4 illustrates
changes in the real value of consumer net worth
and its components for selected periods since
1955 and contrasts these changes with the value
of the real investment made in each period. Current-dollar holdings and investments are deflated
by the NIPA personal consumption expenditures

P e rsp e c tiv e s on P erson al Saving

4.

619

Consumer investment and changes in net worth, selected periods 1955-791
Billions o f 1972 dollars2
Item, and change in value
or in net investment over period

1955-79

1970-74 1975-79

1975

1976

1977

1978

1979

411.8
262.2

-84.5
347.5

757.9
383.5

221.9
85.6

258.6
80.1

63.1
71.0

132.0
75.9

82.6
70.9

158.6
200.6

158.1
295.5

153.6
446.3

219.5
603.1

40.4
98.2

61.4
115.9

61.8
125.7

41.3
131.6

14.7
131.7

196.6
7.6

175.3
-9 .9

83.2
-31.0

-412.5
-25.3

110.0
-2 3 .6

96.6
- 3 .0

97.8
-2 .7

-6 8 .0
- 4 .8

-19.1
- 4 .6

2.7
-8 .5

48.1
55.8

63.6
65.1

42.8
81.5

-2 4 .2
92.8

75.2
145.0

25.7
22.5

23.8
26.2

2.4
30.6

11.7
33.9

11.7
31.9

59.8
-13.9

35.2
-4 .8

52.4
3.0

105.2
-1 8 .4

185.3
-6 2 .6

34.6
-8 .2

44.3
-11.7

30.6
-1 1 .9

51.0
-13.8

24.8
-17.0

-101.2
-128.3

-134.0
-158.7

-96.7
-181.9

-83.8
-264.0

-192.7
-431.3

-6 .6
-41.1

-4 1 .0 -6 4 .6 -5 3 .9
-73.2 -103.4 -110.9

-2 6 .6
-102.7

163.8
119.5

114.6
103.8

172.0
95.1

177.2
116.0

360.6
153.0

31.2
17.2

72.3
25.7

100.9
34.8

101.0
39.8

55.3
35.5

903.0
668.8
533.9

149.4
100.4
109.3

96.7
65.3
90.2

147.4
108.9
79.6

153.4
118.8
104.5

356.1
275.3
150.3

32.7
26.2
16.5

73.7
52.5
24.9

98.7
82.0
34.2

97.4
72.6
39.5

53.7
42.0
35.3

519.8
-179.5

84.2
28.2

14.5
- 7 .0

101.5
-16.4

98.9
-54.7

220.8
-129.6

23.2
-13.6

46.9
-2 1 .2

55.8
-32.1

62.9
-2 9 .7

32.1
-3 2 .9

Total net worth
1,953.7
1. Change ....................................
1,371.5
2. Investment ..............................
Deposits, credit market
instruments, and other3
3. Change.......................................
777.9
4. Investment ............................... 1,687.1
Corporate equities
5. Change.......................................
152.6
6. Investment4 ...............................
-82.3
Private pension fund and
life insurance reserves
7. Change .......................................
205.5
8. Investment ...............................
440.2
Equity in noncorporate business
9. C hange....................................
10. Investment ...............................
437.9
-96.7
Liabilities
11. Change .......................................
12. Investment ............................... -608.4
Tangible assets
-1,164.2
13. Change......................................
988.2
14. Investment ...............................
587.3

1955-59

1960-64

1965-69

455.2
182.2

413.3
196.1

88.1
141.5

M em o

Owner-occupied real estate
15. Change.......................................
16. Change excluding lan d ............
17. Investment ...............................
Equity in owner-occupied
real estate5
18. Change.......................................
19. Investment ...............................

1. Consumer durables and government pension and insurance
funds are not included in total net worth. Current-dollar nonequity
financial and liability stocks (including those held in private pension
fund and life insurance reserves) were derived by cumulating sea­
sonally adjusted flows from a 1952 Q4 benchmark. Current-dollar total
investment differs from NIPA personal saving by the discrepancy in
the flow of funds household sector. Details may not add to totals be­
cause of rounding.
2. Constant-dollar net worth and components were obtained by de­
flating current-dollar stocks at year-end by the average of the NIPA
personal consumption expenditures deflator for the fourth quarter of

the year indicated and the first quarter of the following year. Quarterly
data on current-dollar investment are deflated by the NIPA personal
consumption expenditures deflator and totaled to obtain constant-dol­
lar investment over longer periods.
3. Other consists of security credit and miscellaneous assets.
4. Excludes capital gains dividends.
5. Owner-occupied real estate less home mortgages.
S o u r c e s . Balance Sheets for U.S. Economy (Board of Governors
of the Federal Reserve System, Division of Research and Statistics,
Flow of Funds Section, June 1980), and the Federal Reserve’s flow of
funds statistical release, various issues.

deflator. (An appendix to this article elaborates
on some assumptions used in the construction of
table 4.)
In general, the calculations presented in table 4
suggest that real capital gains and losses, in the
aggregate and over a long period, have not great­
ly raised or lowered real consumer net worth.
Since the mid-1950s, constant-dollar net worth
has grown $1,950 billion, while the cumulated
value of investment has been about $1,400 bil­
lion. Thus from 1955 through 1979 consumers
had an average real capital gain of approximately
$23 billion per year, slightly under 4 percent of
average real disposable income in this period.
Over shorter time horizons, capital gains and
losses have had a significant impact on the size

and composition of consumer net worth. From
the mid-1950s through the 1960s, real wealth
grew substantially more than the cumulated val­
ue of investment. Gains that accrued to financial
assets, particularly corporate equity holdings
(table 4, line 5 less line 6), played a role in this
growth. Tangible assets held by households,
which consist primarily of real estate (land plus
structures), also had real gains over this pe­
riod, although these were not substantial until
the late 1960s (line 13 less line 14). In the first half
of the 1970s, consumers suffered a sizable capital
loss on their total net worth, but this loss was
followed by striking gains in 1975 and 1976 re­
flecting the cyclical swing in the corporate equity
market.




620

Federal Reserve Bulletin □ August 1980

In the late 1970s capital gains on owner-occu­
pied real estate were substantial (line 15 less line
17). As a result of the sharp rise in the price of
housing in relation to all consumer goods and
services, between 1977 and 1979 an average of
almost $50 billion per year in real capital gains
accrued to homeowners from their real estate,
more than three times the average for the 25
years 1955-79. When the accruals brought about
by this shift in relative prices are added to those
that occurred as inflation reduced the real value
of home mortgages, gains to homeowners were
even more substantial: between 1977 and 1979
the total real capital gain on home equity aver­
aged over $80 billion per year (line 18 less line
19). These large gains may have spurred con­
sumer spending, as is reflected in the recent in­
crease in the “liquefaction” —the turning into
cash—of equity in owner-occupied real estate.
Line 18 of table 3 shows one measure of this
liquefaction, and its marked increase in the late
1970s in relation to income may reflect down­
ward pressure exerted on the saving rate by the
substantial real capital gains on home equity.
Offsetting the stimulus to consumption pro­
vided by the large gains on equity in owneroccupied real estate in 1977-79 was a real
capital loss on corporate equity and a signifi­
cant decline in the purchasing power of deposits

5.

and credit market instruments (table 4, line 3 less
line 4). As a result, the real capital gain on the
total consumer balance sheet was $20 billion per
year in this period; this amount was less than the
$30 billion per year that accrued in the second
half of the 1960s and slightly smaller than the av­
erage yearly gain of $23 billion for the whole
1955-79 period. Thus, on balance and in the
aggregate, real capital gains accrued to con­
sumers in 1977-79 at about the average rate for
the last 25 years.8

Trends in the C om position o f N e t Worth
The ratio of net worth and its components to dis­
posable personal income are shown in table 5 to
provide some historical perspective on the com­
position of net worth. The aggregate value of
consumer net worth was about four and one-half
times disposable income at the end of 1959. Dur­
ing the 1960s the ratio of net worth to income fell
somewhat. The downtrend continued into the
1970s, and by the end of 1976 net worth was un­
der four times income. This latter decline reflect­
ed a dramatic drop in the value of corporate
equity in relation to income.
Capital gains on tangible assets and losses on
financial wealth in the late 1970s, together with

Consumer net worth and its components in relation to disposable personal income, selected years 1954-791
Ratio
Item

2. Financial assets net of liabilities .......................................................
3.
Deposits, credit market instruments, and corporate equities....
4.
Deposits, credit market instruments, and other3 ....................
5.
Corporate equities......................................................................
6.
Private pension fund and life insurance reserves .......................
7.
Equity in noncorporate business .................................................
8.
Liabilities .........................................................................................
9.
Home mortgages.........................................................................
10.
Consumer installment credit and other4 .................................
11. Tangible assets ....................................................................................

1959

1964

1969

4.0

4.4

4.2

4.0

3.0
2.0
1.1
.9
.3
1.2
.5
.3
.2
1.0

3.2
2.3
1.1
1.2
.4
1.1
.6
.4
.2
1.2

3.1
2.4
1.2
1.2
.4
1.0
.7
.4
.3
1.1

2.9
2.3
1.2
1.1
.4
.9
.7
.4
.3
1.2

.9
.8
.6

1.1
.9
.7

1.0
.8
.6

1.0
.8
.6

1954

1976

1979

3.4

3.6

3.6

2.1
1.7
1.2
.5
.3
.9
.7
.4
.3
1.2

2.4
1.9
1.2
.7
.3
.9
.7
.4
.3
1.2

2.2
1.8
1.2
.5
.3
.9
.8
.5
.3
1.4

1.1
.8
.7

1.1
.9
.7

1.3
1.0
.8

1974 1

M em o

12. Owner-occupied real estate ..............................................................
13.
Excluding land.................................................................................
14. Equity in owner-occupied real estate5 ..........................................
1. All ratios are the outstanding value of item at year-end divided
by the average of NIPA disposable personal income for the year in­
dicated and its value in the following year. Current-dollar nonequity
financial and liability stocks (including those held in private pension
fund and life insurance reserves) were derived by cumulating season­
ally adjusted flows from a 1952 Q4 benchmark.
2. Consumer durables and government pension and insurance




funds are not included in total net worth. Details may not add to totals
because of rounding.
3. Other consists of security credit and miscellaneous assets.
4. Other consists of other mortgages; other consumer credit; bank
loans, n.e.c.; and other debt.
5. Owner-occupied real estate less home mortgages.
S o u r c e s . Balance Sheets for U.S. Economy, June 1980, and the
Federal Reserve’s flow of funds statistical release, various issues.

P e rsp ec tives on P erson al Saving

the shift in saving flows from financial to tangible
forms, continued to shift the structure of the con­
sumer balance sheet heavily toward tangibles.
The ratio of deposits, credit market instruments,
and corporate equities to income fell lower while
the ratio of liabilities to income rose. Offsetting
the resulting decline in the ratio of net financial
wealth to income was an increase in the ratio of
tangible assets to income, especially in owneroccupied real estate. Indeed, the substantial rise
in the value of owner-occupied real estate was
enough to outstrip the rise in outstanding home
mortgages, so that the equity position of house­
holds in their real estate increased relative to in­
come (line 14), despite the increased pace of
liquefaction.
In 1979 household borrowing tailed off (lines 13
and 14 of table 3), a development suggesting
that individuals were attempting to rebuild finan­
cial wealth by restricting their rate of debt
acquisition. Expectations of an economic down­
turn probably operated with other factors to in­
hibit borrowing. One factor that may have acted
as a check on further liability acquisition was the
deterioration after 1976 in the ratio of the sum of
deposits, credit market instruments, and corpo­
rate equity holdings to liabilities, as shown by a
comparison of lines 3 and 8 of table 5. Another
factor discouraging borrowing was the absorp­
tion by interest payments on outstanding debt of
a substantial fraction of income (line 6 of table 3),
which had particular relevance given the uncer­
tain prospects for income growth.

P e r s o n a l S a v in g a n d N a t io n a l
CAPITAL FORMATION

Personal saving is a component of aggregate sav­
ing, and it contributes to the formation of capital
inasmuch as the amount of aggregate saving a na­
tion does must be equal to the amount of invest­
ment it undertakes. Expositions of income-determination theory often make the convenient
assumption that all saving takes place in the
household sector and all investment in the busi­
ness sector. This view is incomplete: the identity
between saving and investment applies solely to
their totals in an economy, and the simple dichot­
omy between household saving and business in­



621

vestment ignores funds supplied by other sec­
tors—business, government, and the rest of the
world—as well as the direct investment house­
holds undertake in their capacity as owner-occu­
pants of homes.
Gross saving as reported in the NIPA, which
covers saving by all U.S. persons and entities, is
a measure of aggregate saving before deductions
for depreciation of fixed capital. Line 1 of table 6
shows gross saving scaled by gross national
product. After falling during the last recession,
gross saving returned by the late 1970s to its his­
toric range above 15 percent of gross output. The
pattern was mirrored in the aggregate gross in­
vestment performance of the United States. The
net saving rate, obtained by removing the allow­
ance for replacing worn-out capital from the
gross saving rate, fell off markedly during 1975—
76. In contrast to gross saving, during the last
three years net saving recovered only partially,
as capital consumption, bolstered by high rates
of depreciation on short-lived plant and equip­
ment, continued to offset a large share of output.
Thus the aggregate amount of saving by U.S.
persons and other entities flowing into net invest­
ment was comparatively low from 1975 through
1979.
Because personal saving is a component of net
saving, it often has been suggested that increases
in household thrift will boost net saving and capi­
tal formation. But other factors affect the total of
potential funds available for net additions to the
capital stock at any given time. For instance, as
the historical trends shown in table 6 indicate,
net corporate saving was at a reduced rate
throughout the 1970s. On the other hand, part of
the low levels of net private saving in the late
1970s was offset by net capital inflows from
abroad; that is, net foreign investment was nega­
tive. Thus total domestic capital formation, in­
cluding investment in housing and inventories
(line 12), was larger in 1977-79 than is suggested
by the low rate of net saving. Domestic net fixed
investment, which excludes inventory accumula­
tion, was also well maintained by historic stan­
dards. However, the rise in the net nonresidential
share in the most recent period still left it IV2
percentage points lower than it was in the highinvestment period of the late 1960s.
As a result of the moderate pace of net non­
residential investment, the real nonresidential

622

6.

Federal Reserve Bulletin □ August 1980

U.S. saving and investment, selected periods 1955-79'
Percent of GNP
Item

1955-79

1955-59

1960-64

1965-69

1970-74

1975-76

1977-79

1. Gross saving.................................................
2.
Capital consumption2 ............................
3. Net saving3 ....................................................
4.
Net private saving .................................
5.
Net personal .......................................
6.
Net corporate.......................................
7.
Government surplus or deficit ( - ) .......
8.
Federal.................................................
9.
State and local ....................................

15.1
9.5
5.5
6.1
4.2
1.9
-.6
-1 .2
.6

15.8
9.4
6.4
6.7
4.3
2.3
- .2
.1
- .3

15.2
9.0
6.2
6.4
3.6
2.8
- .2
- .3
.1

15.8
8.5
7.3
7.5
4.4
3.1
.2
- .3
.0

15.1
9.3 .
5.9
6.3
5.0
1.3
- .5
-1 .2
.7

13.4
10.5
2.8
5.9
4.7
1.1
-3 .1
- 3 .8
.7

15.1
10.2
4.8
4.9
3.3
1.6
- .1
-1 .3
1.2

10. Gross investment.........................................
11. Net investment ............................................
12.
Net private domestic investm ent.........
13.
Net fixed investment .........................
14.
Net nonresidential .........................
15.
Net residential.................................
16.
Change in business inventories.........
17.
Net foreign investment .........................

15.3
5.7
5.9
5.1
2.7
2.5
.8
- .2

16.0
6.6
6.4
5.7
2.5
3.2
.7
.1

15.5
6.5
6.0
5.1
2.3
2.8
.9
.6

15.8
7.3
7.2
6.0
3.9
2.1
1.3
.1

15.3
6.0
6.3
5.5
3.0
2.5
.8
- .3

13.8
3.3
2.9
2.9
1.4
1.5
.0
.3

15.3
5.1
6.0
5.1
2.4
2.6
1.0
-1 .0

1. All rates are calculated as the average value of item for the peri­
od, divided by the average value of GNP. Gross saving differs from
gross investment, and net saving from net investment, by the NIPA
statistical discrepancy. Details may not add to totals because of
rounding.
2. With capital consumption adjustment.

capital stock expanded at an average annual rate
of 3.1 percent from 1977 through 1979, compared
with a 5.7 percent average rate over the late
1960s. Because this slowdown occurred during a
period of rapid expansion in the labor force, over
the last five years the real nonresidential capital
stock per worker has been virtually unchanged.
The recent disappointing performance of produc­
tivity in the United States may be related to this
lack of growth. Many factors have played a role
in these two interrelated developments: for ex­
ample, the dramatic increase in energy prices in
the United States probably has rendered a por­
tion of the capital stock less efficient and may
have reduced the demand for capital goods pend­
ing development of new technologies.9 To the
extent that the recent low rate of net non­
residential investment reflected such a weakness
in demand, higher rates of personal saving would
have had only a limited impact on the formation
of business capital.
Moreover, low productivity gains act to slow
the growth of real household income, a develop­
ment that emerged during the recent economic
expansion and that may, in turn, have been one
of the causes of the low personal saving rate.
From early 1975 to the middle of 1976, real dis­
posable income per household grew at the rela­
tively rapid annual rate of 23/4 percent, and per­
sonal saving averaged l lU percent of disposable
personal income (or 43/4 percent of gross national



3.
Gross saving less noncorporate and corporate capital consump­
tion. Foreign saving (capital grants received by the United States) is
not included in categories.
S o u r c e s . National Income and Product Accounts of the United
States, 1929-1974, and subsequent issues of the Survey of Current
Business.

product, as shown in table 6). From the middle of
1976 to late 1979, when personal saving fell to
5V4 percent of disposable income (3V3 percent of
GNP), growth in real household income aver­
aged only IV2 percent. Consumers are widely be­
lieved to base their spending decisions more on
perceptions of their long-run—“permanent” —
income than on current receipts. If these per­
ceptions were slow to adjust to the dimmer pros­
pects for real income gains, consumers may have
spent in the late 1970s as if real income even­
tually would return to its historical trend. Such a
rate of spending would result in a lower average
rate of personal saving. Thus if the low rate of
personal saving were a factor retarding non­
residential capital formation and productivity
growth, it contributed to forces that worked
against its own recovery.

SUM M ARY OF FINDINGS AND
Im p l ic a t io n s f o r t h e F u t u r e

The recent decline in the personal saving rate has
been accompanied by a decline in net financial
investment and an increase in purchases of tan­
gible assets, particularly owner-occupied hous­
ing. The sharp falloff in net financial saving by
households apparently did not reflect a reduced
propensity to acquire financial assets but rather a
large rise in borrowing. This reduced rate of net

P ersp e c tiv e s on P erson al Saving

financial saving by the household sector has
meant a diminution in funds advanced to other
sectors; such funds are used to finance business
capital investment and also government deficits.
Consumer balance sheets have shifted from fi­
nancial wealth to tangible assets, reflecting both
the swing in saving flows from financial to tan­
gible forms and the course of overall prices in
relation to those in asset markets.
This analysis of personal saving on household
current and capital accounts, and of its relation
to aggregate saving and capital formation, has
shed light on recent developments in personal
saving behavior and has implications for its fu­
ture course:
• The low rates of NIPA personal saving dur­
ing the second half of the 1970s, together with
related developments such as the increase in the
rate of residential investment and the increase in
borrowing by households, are probably partly re­
lated to demographic trends. However, short-run
movements of the saving rate—for instance, the
abrupt fall in 1976—most likely are independent
of demographic trends, which unfold slowly. In
any event, as demographic factors continue to
foster high levels of investment in housing, a
smaller proportion of the total of all funds sup­
plied tend to be available for nonresidential capi­
tal formation.
• Net purchases of durable goods—sometimes
considered a substitute for saving, but counted
as consumption in the NIPA—rose from 3.0
percent of income during 1975-76 to 3.6 percent
in 1977-79 (table 2), thus exerting some down­
ward pressure on the NIPA saving rate. This in­
crease in net purchases of durables, which often
has been attributed to stockpiling in advance of
price increases, was also in part the result of
normal cyclical influences and demographic
factors.
• Obligatory outlays—spending on items such
as essentials and contractual interest costs—
have been taking a growing fraction of income: in
1977-79 a measure of these payments claimed a
share more than 2 lh percentage points greater
than that in the late 1960s and early 1970s (table
3, lines 5 plus 9). While some of this rise was off­




623

set by a relatively low rate of spending on dis­
cretionary items, the increase appears to have
come mostly at the expense of saving. In capital
accounts the drop in aggregate personal saving
appears largely as an increase in the excess of
mortgage borrowing over expenditures on new
housing.
• Because real capital gains on equity in owner-occupied housing were largely offset by real
losses on financial assets, aggregate gains in the
late 1970s were not a significant support to con­
sumer purchasing power, especially when com­
pared with those of earlier periods. If net capital
gains on household wealth worked to stimulate
aggregate consumer spending, it was, therefore,
through a differential effect: boosts in consumer
spending associated with capital gains on homes
were greater than cuts stemming from capital
losses on financial assets.
• Some rebuilding of household financial
wealth relative to income might have been ex­
pected during 1979, given the high ratio of liabili­
ties relative to both financial assets and income,
and the prospect of declines in income growth. In
fact borrowing fell over 1979, and an increase in
net financial saving was evident by mid-1980.
• Low rates of personal saving probably were
not directly responsible for the recent relatively
low rates of nonresidential fixed investment. The
disruption to the U.S. economy caused by the
sharp rise in energy prices was at least one factor
that both temporarily reduced the demand for
capital goods and simultaneously, by increasing
the costs of essentials and reducing productivity
and income growth, depressed the rate of per­
sonal saving.
Many aspects of consumer behavior that im­
pinge on the saving decision have not been dis­
cussed in this article. Nonetheless, the above
analysis of household current and capital ac­
counts suggests that no one simple factor ex­
plains the recent sharp decline in the personal
saving rate. In any event, efforts to spur business
capital formation are likely to meet with only lim­
ited success if they are focused narrowly on
personal saving and do not treat incentives to
save and invest on a broader front.

624

Federal Reserve Bulletin □ August 1980

A p p e n d ix

A 2.

Inflation rates for housing, two indexes, 1970-79

Percent change, annual rate

Special assumptions used in the construction of
table 4 affect the calculation of the change in
holdings and cumulated investment in certain
categories of net worth and also influence the
change in aggregate net worth and the total of
cumulated investment:
1 . Undistributed corporate profits are not in­
cluded as a component of investment in corpo­
rate stock even though it is plausible that a large
portion of increases in equity values results from
corporate retentions; that is, that portion results
from acquisitions of financial or tangible assets
by corporations rather than from revaluations of
already existing assets. Lines 1 and 2 of table A l
show the impact of including retained earnings in
investment in corporate equity. Cumulative in­
vestment is increased and the estimate of the to­
tal capital gain over 1955-79 is reduced to $70
billion (line 1 minus line 2 ); the comparable
amount in table 4 is $582 billion.
2. Durable goods were excluded from con­
sumer balance sheets. Their inclusion would re­
duce the estimate of total capital gains in every
period because losses have consistently accrued
to holders of these assets. The overall effect
would be a reduction of the estimated total capi­
tal gain over 1955-79 to $312 billion (line 3 minus
line 4).
3. The net worth of government pension fund
and insurance reserves was also excluded from
A l.

Period

Commerce
Department1

National Association
of Realtors2

8.9
7.3
10.6
6.8
8.9
12.8
14.2
10.3

10.1
8.3
12.0
9.0
9.8
11.5
20.3
9.5

1970-79 ....................
1970-74 ....................
1975-79 ....................
1975 .........................
1976 .........................
1977 .........................
1978 .........................
1979 .........................

1. NIPA deflator for nonfarm residential structures. Changes are
measured fromfourth quarter to fourth quarter.
2. Average price of existing single-family homes sold, including
both structures and land. Changes are measured from December to
December.

consumer balance sheets, and net investment in
these funds excluded from personal investment,
in order to replicate the treatment of these funds
in the NIPA. Their inclusion would reduce the es­
timated total capital gain over 1955-79 to $481
billion (line 5 minus line 6 ).
4.
Existing stocks of reproducible assets are
valued at reproduction cost rather than at market
prices. Therefore, the use of the outstanding
nominal value of the housing stock on this basis
contains the assumption that the NIPA deflator
for residential construction is an appropriate as­
set price. In fact, while the NIPA construction
deflator recently has been rising relative to over­
all consumption prices—as reflected by the siz­
able capital gains calculated for owner-occupied
housing—other indexes of house prices, such as

Consumer investment and changes in net worth under alternative assumptions, selected periods 1955-791

Billions of 1972dollars
Total net worth concept,
andchange invalue or
net investment over period
Including retained earnings
1. Change..........................
2. Investment .....................
Including consumer durables
3. Change...........................
4. Investment .....................
Including government pension
fund and insurance reserves
5. Change...........................
6. Investment .....................
Including retained earnings,
consumer durables, and
government pension fund and
insurance reserves
7. Change...........................
8. Investment .....................
1. See notes to text table 4.




1955-79 1955-59

1960-64

1965-69

1970-74

1975-79

1975

1976

1977

1978

1979

1,953.7
1,883.8
2,249.9
1,938.1

455.2
257.8
495.4
240.0

413.3
301.2
439.4
257.9

411.8
418.0
497.0
403.7

-84.5
423.7
-19.1
495.3

757.9
483.1
837.1
541.2

221.9 258.6 63.1 132.0 82.6
96.7 99.3 96.1 99.8 91.2
236.3 275.7 83.0 152.5 89.8
106.6 110.6 107.3 114.1 102.6

2,059.9
1,578.8

468.2
200.2

433.8
220.9

432.3
297.4

-64.5
400.5

790.0
459.9

227.3 265.9
97.5 93.6

2,356.1
2,657.7

508.4
333.6

459.9
387.8

518.7
594.7

.9
624.5

869.2
717.2

241.7 283.0 91.6 160.1 93.0
129.7 143.4 148.2 156.1 139.8

71.7 139.6
86.9 93.9

85.8
87.9

S ou rce. Balance Sheets for U.S. Economy, June 1980, and the
Federal Reserve’s flow of funds statistical release, various issues.

P e rsp ec tiv es on P erson al Saving

the one for existing single-family homes com­
piled by the National Association of Realtors
(table A2), have risen faster, suggesting even
larger real gains.
5. All growth in the real value of land is con­
sidered a capital gain. No component of saving is
assumed to increase the value of land; further­
more, since households are apparently net sellers
of land to other sectors, this treatment tends to
understate actual gains on land.
6 . Holdings of corporate and government

625

bonds, which are included in deposits and credit
market instruments as well as in private pension
fund and life insurance reserves, are valued at
issue rather than market prices. The market val­
ue of these assets falls when interest rates rise.
As bonds approach maturity, their values rise to
the redemption price. In a period of sizable in­
creases in interest rates, such as the 1970s, there
is likely to be a wide divergence between the
market and issue values of outstanding bond
holdings.

Footnotes
1. The physical investment of noncorporate business could
be included with household tangible investment and the fi­
nancial activity of these firms could be combined with that
of households. This treatment would lump together tangible
investment by all individuals, in their capacity as both house­
holders and as proprietors. Alternatively, the activities of
noncorporate business can be treated separately from those
of households, as in the Federal Reserve’s flow of funds ac­
counts. In this view, which is used in this article, the equity
position of households in noncorporate business is represent­
ed by a single entry in household net financial wealth. There­
fore, household net financial investment includes net invest­
ment in noncorporate business.
2. Only net purchases of durable goods may be included
because the portion of gross purchases that serves to replace
worn-out stock is consumed. Moreover, when consumer du­
rables are considered as investment, in principle a rental in­
come in excess of depreciation may accrue to and be con­
sumed by owners, and therefore count as personal income.
This adjustment was not made because of the complexity of
measuring this income. In any event, only income and con­
sumption—not saving—would differ by its recognition.
3. In fact, food price elasticities in the short run may be
larger than commonly thought. The downgrading of food out­
lays and other budgetary adjustments by consumers are ana­
lyzed more fully in Susan Burch, “ Consumer Reaction to
High Inflation Rates” (Board of Governors of the Federal Re­
serve System, Division of Research and Statistics, National
Income Section, December 1978; processed).
4. This measure, which is intended to capture mortgage
borrowing against equity in existing owner-occupied real es­
tate, understates this borrowing to the extent that capital ex­
penditures on housing are financed by means other than mort­
gages, and overstates it to the extent that sales of land
involved in most house transactions are also financed by
mortgages. This borrowing is discussed in David F. Seiders,
Mortgage Borrowing against Equity in Existing Homes:
Measurement, Generation, and Implications for Economic
Activity , Staff Economic Studies 96 (Board of Governors of

the Federal Reserve System, May 1978).
5. However, in 1979 there was a significant restructuring
within this total away from savings deposits subject to inter­




est rate ceilings toward assets with market-determined yields.
See Charles Luckett, “ Recent Financial Behavior of House­
holds,” F e d e r a l R e s e r v e B u l l e t i n , vol. 66 (June 1980),
pp. 437-43.
6. The increase in the capital consumption allowance for
owner-occupied housing was an offset of 0.4 percentage point
over this period. When housing prices are rising rapidly, the
depreciation charge may grow more rapidly than the rental
income credited to houses, with the overall effect of depress­
ing the saving rate.
7. The data on net worth are taken from balance sheets for
the U.S. economy, prepared by the Federal Reserve staff,
that consist of estimates of stocks of reproducible physical
assets on a replacement-cost basis (obtained from the Depart­
ment of Commerce), land holdings at current market value,
and financial assets and liabilities (from the flow of funds ac­
counts). In these accounts, a measure of the net worth of con­
sumers that corresponds to the NIPA concept of consumer
investment (and the income from those investments) can be
derived from the balance sheet of the household sector when
holdings of consumer durable goods and government pension
and insurance reserves are excluded. With these exclusions,
the concepts of consumer and household net worth are identi­
cal.
8. Nominal capital gains, the increment to current-dollar
net worth not accounted for by current-dollar saving, were
very substantial in the late 1970s, averaging well over $250
billion per year during 1977-79. The deflated value of these
nominal gains would be many times larger than the real capi­
tal gains calculated from table 4. The discrepancy arises be­
cause the bulk of the nominal capital gains earned over this
period simply maintained the purchasing power of the exist­
ing capital stock. It is the remainder that is deflated to obtain
the real capital gain as defined in the text.
9. Recently there have been many studies of these issues.
As an example of the input-imputation approach to explaining
the productivity slowdown, see J. R. Norsworthy, Michael J.
Harper, and Kent Kunze, “The Slowdown in Productivity
Growth: Analysis of Some Contributing Factors,” Brookings
Papers on Economic Activity, 2:1979, pp. 387-421; for other
studies, see the references cited there.

627

Domestic Financial Developments
in the Second Quarter of 1980
This re p o rt , which w as sen t to the Joint E con om ­
ic C o m m ittee o f the U .S . C ongress on A u g u st 6 ,
1980, highlights the im p o rta n t develo p m en ts in
d o m estic financial m arkets during the spring a n d
early sum m er.

Interest rates reached record levels in early
spring, and then fell steeply over the course of
the second quarter. On balance, short-term rates
declined an unprecedented 7 to 10 percentage
points, reaching their lowest levels of the past
two years in June, while long-term security
yields retraced the increases recorded early in
the year. The plunge in interest rates principally
reflected an abrupt diminution of demands for
money and credit associated with the developing

contraction in economic activity and with bor­
rower response to the credit restraint actions
taken by the Federal Reserve in March. Also
contributing to the decline in rates were an ap­
parent reduction of inflationary expectations in
the light of the growing slack in the economy, the
smaller increases registered by major price in­
dexes in the second quarter, and the weakness of
the narrow money stock measures relative to the
Federal Reserve’s announced ranges for 1980.
Downward adjustments in administered rates, in­
cluding the commercial bank prime rate and
home mortgage rates, lagged well behind the
drop in market yields over most of the second
quarter.
The fall in market rates of interest came to a

Interest rates
Percent

SHORT TERM

LONG-TERM

Federal funds
Conventional mortgages
HUD

Aaa utility bonds

Treasury bills
3-month

.S. government bonds

"•"Federal Reserve discount rate

Monthly averages except for Federal Reserve discount rate andcon­
ventional mortgages (based on quotations for one day each month).
Yields: U.S. Treasury bills, market yields on three-month issues;
prime commercial paper, dealer offering rates; conventional mort­
gages, rates on first mortgages in primary markets, unweighted and
rounded to nearest 5 basis points, from U.S. Department of Housing



State and local
government bonds

and Urban Development; Aaa utility bonds, weighted averages of new
publicly offered bonds rated Aaa, Aa, and A by Moody’s Investors
Service and adjusted to Aaa basis; U.S. government bonds, market
yields adjusted to 20-year constant maturity by U.S. Treasury; state
and local government bonds (20 issues, mixed quality), Bond Buyer.

628

Federal Reserve Bulletin □ August 1980

Changes in selected monetary aggregates1

Based on seasonally adjusted data unless otherwise noted, inpercent
Item
Member bank reserves2
Total.....................................................
Nonborrowed..........................................
Monetary base3.......................................
Concepts of money4
M-1A ...................................................
M-1B ...................................................
M-2 .....................................................
M-3 .....................................................
Nontransaction components of M-2
Total (M-2 minus M-lB) ............................
Small time deposits................................
Savings deposits....................................
Money market mutual fund shares5 ..........
Overnight RPs andovernight
Eurodollar deposits5 .......................
Memo (change in billions of dollars)
Managed liabilities at commercial banks.........
Large time deposits, gross ........................
Nondeposit funds ....................................
Net due to foreign related institutions ......
Other6 ..............................................
U.S. government deposits at commercial
banks.................................................

1977

1978

1979

1979
Q2

Q3

1980
Q4

Ql

Q2

5.0
2.6
8.2

6.6
6.7
9.2

2.9
.7
7.7

-3.3
-7.4
5.0

5.3
7.3
9.5

12.3
6.2
9.5

4.3
3.3
7.6

1.2
7.8
5.3

7.7
8.1
11.5
12.6

7.4
8.2
8.4
11.3

5.0
7.6
8.9
9.8

7.2
10.4
10.2
9.3

7.8
9.6
10.7
10.8

4.5
5.0
7.1
9.1

4.8
5.9
7.2
7.8

-3.9
-2.4
5.4
5.7

12.8
15.1
9.8
5.9
42.5

8.5
16.2
-.5
163.9
25.4

9.4
23.1
-12.0
324.2
17.2

10.2
20.0
-10.1
204.1
58.5

11.1
14.7
-1.2
166.2
11.3

7.8
25.8
-21.6
120.0
-33.1

7.7
18.3
-21.1
151.9
-7.5

8.1
24.9
-25.3
82.7
-72.0

27.8
19.2
8.6
-3.8
12.4

73.5
50.4
23.1
6.6
16.5

59.7
19.6
40.1
25.2
15.0

13.4
-4.2
17.6
11.9
5.7

17.9
2.4
15.5
8.9
6.6

8.6
10.7
-2.1
.1
-2.1

10.6
6.4
4.2
-2.3
6.4

-4.1
5.9
-10.0
-8.4
-1.6

-.2

3.3

1.5

-.9

5.0

-4.0

1.6

-1.6

1. Changes are calculated fromthe average amounts outstanding in
each quarter.
2. Annual rates of change in reserve measures have been adjusted
for regulatory changes in reserve requirements.
3. Consists of total reserves (member bank reserve balances in the
current week plus vault cash held two weeks earlier), currency in cir­
culation (currency outside the U.S. Treasury, Federal Reserve Banks,
and the vaults of commercial banks), and vault cash of nonmember
banks.
4. M-l A is currency plus private demand deposits net of deposits
due to foreign commercial banks and official institutions. M-1B is
M-lA plus other checkable deposits (negotiable order of withdrawal
accounts, accounts subject to automatic transfer service, credit union
share draft balances, and demand deposits at mutual savings banks).

M-2 is M-1B plus overnight repurchase agreements (RPs) issued by
commercial banks, overnight Eurodollar deposits held by U.S. non­
bank residents at Carribbean branches of U.S. banks, money market
mutual fund shares, and savings and small time deposits at all deposi­
tory institutions. M-3 is M-2 plus large time deposits at all depository
institutions and termRPs issued by commercial banks and savings and
loan associations. For more information on the redefined monetary
aggregates, see the F e d era l R eserve B u lle t in , vol. 66 (February
1980), pp. 97-114.
5. Not seasonally adjusted.
6. Consists of borrowings from other than commercial banks
through federal funds purchased and securities sold under repurchase
agreements plus loans sold to affiliates, loans sold under repurchase
agreements, and other borrowings.

halt near the end of the quarter; yields on both
short- and long-term securities retraced a small
portion of their earlier declines in late June and
July. A growing federal deficit and discussions of
a possible tax cut contributed to the view that
market rates might have attained cyclical lows.
Nonetheless, the prime rate continued to move
downward in July, further narrowing the ex­
ceptionally wide gap that had existed relative to
market rates over the preceding months.
The narrow monetary aggregates, M-l A and
M-1B, dropped sharply in April, and despite pro­
gressive strengthening in May and June, con­
tracted for the quarter as a whole. The decline in
these aggregates was greater than would have
been expected on the basis of the historical rela­
tionship among money, interest rates, and income.
At the end of the quarter, M-l A and M-1B were

below levels consistent with the growth ranges
adopted by the Federal Open Market Committee
(FOMC) for the fourth quarter of 1979 to the
fourth quarter of 1980. In contrast, by June M-2
and M-3 were within the ranges set by the FOMC,
as growth of the nontransaction components of
the broader aggregates over the quarter was some­
what above the first-quarter pace.
Net funds raised in credit markets by domestic
nonfinancial sectors of the economy in the second
quarter totaled only $195 billion at a seasonally
adjusted annual rate, roughly half the pace of the
first three months of the year. Households,
faced with declining real incomes, heavy debt
burdens, and more stringent credit terms, cur­
tailed borrowing in both the home mortgage and
the consumer credit markets. Nonfinancial busi­
nesses also reduced their credit demands sub­




D o m estic F inancial D ev elo p m en ts , Q2 1980

stantially, as large runoffs in commercial bank
loans and smaller commercial mortgage borrow­
ing were only partly offset by stepped-up issu­
ance of commercial paper and bond financing.
U.S. Treasury borrowing was little changed from
the first-quarter pace on a seasonally adjusted
basis, while state and local government creditmarket financing picked up in response to lower
long-term rates.
The actions taken by the Federal Reserve on
March 14, some of which were under the author­
ity of the Credit Control Act, contributed to the
slower pace of credit growth in the second quar­
ter. As incoming data indicated that excessive
use of credit was no longer contributing to infla­
tion, the Board began a phaseout of the program,
relaxing various provisions in May and ending
the program entirely in July.

M onetar y A ggregates
a n d B a n k C r e d it

M-l A declined at a record annual rate near 4 per­
cent in the second quarter. With nominal gross
national product (GNP) showing almost no
change, the decline in M-1A translated into a AlU
percent increase in its velocity. Such an increase
in velocity, occurring as it did in the face of the
extraordinary drop in interest rates, indicates
that the public’s demand for transaction bal­
ances was exceptionally weak in the second
quarter. The surge in interest rates early in the
year may have triggered greater-than-usual ef­
forts by the public to economize on non-interestbearing assets; episodes of apparent weakness in
the demand for money also followed sharp inter­
est rate increases in 1974 and 1978. The reduc­
tion in M-l A in the second quarter also may have
reflected the surge in debt repayments, espe­
cially bank loans, and a speedup in the collection
of individual tax payments by the Treasury in the
second half of April. As a result of the latter
event, the balances built up to cover tax-payment checks were drawn down unusually quick­
ly. The second-quarter decline in M-1B was
somewhat less than in M-l A, owing to continued
rapid expansion of negotiable order of with­
drawal (NOW) accounts and accounts subject to
automatic transfer services (ATS) at commercial
banks.



629

M-2 growth slowed only moderately, to a 5 lU
percent pace, in the second quarter, with slightly
faster expansion in the nontransaction portion
offsetting in part the reduction in M-1B. The
growth rate of small-denomination time deposits
accelerated from its already rapid pace, boosted
by increased inflows to the variable-ceiling, 2 lh year-and-over small saver certificates (SSCs) and
by a reduced pace of outflows from fixed-ceiling
accounts. The strong expansion in SSCs largely
reflected desires of investors to lock in their high­
er yields. The six-month money market certifi­
cates (MMCs), meanwhile, expanded rapidly in
April, but then declined in May and June for the
first time since their introduction in mid-1978; on
a quarterly average basis, growth of MMCs re­
mained near the first-quarter pace. In early
June—following an action by the Depository In­
stitutions Deregulation Committee (DIDC) that
raised maximum rates payable on the two vari­
able-ceiling accounts relative to Treasury
yields—ceiling rates on both MMCs and SSCs
exceeded yields available on market in­
struments. 1
The reduced spread of market yields over reg­
ulatory ceilings at depository institutions, per­
haps coupled with a desire of the public to ac­
quire highly liquid assets in view of uncertain­
ties about economic prospects and future inter­
est rate movements, produced a progressive
strengthening of flows to savings accounts over
the second quarter. Outflows from savings ac­
counts were extremely large during April, but
were much reduced in May and reversed in June
at both banks and thrift institutions; the rise in
total savings deposits in June was the first since
July 1979. Nevertheless, on a quarterly average
basis, savings deposits fell somewhat more rap­
idly than in the preceding three months.
Inflows to money market mutual funds
(MMMFs) continued strong, though at a slower
rate than in the first quarter. Early in the second
quarter, expansion of MMMF assets halted tem1. The DIDC, created by the Depository Institutions Dereg­
ulation and Monetary Control Act of 1980, has been directed
to provide for the orderly phaseout of the interest rate ceil­
ings on time and savings deposits during the six-year period
beginning March 31, 1980. The new ceiling rate structure for
MMCs and SSCs is reported in the F e d e r a l R e s e r v e B u l ­
l e t i n , table 1.16, “ Maximum Interest Rates Payable,” page
A9.

630

Federal Reserve Bulletin □ August 1980

Components of
bank credit

Major categories of
bank loans

Change, billions of dollars
4

TREASURY SECURITIES

BUSINESS

n t , ,, +
, ,■..r-i.. li
0
"T=T"

16

12
8

4

8

OTHER SECURITIES

X I

J j __1

1M

4

n

40

+
0

' 40

TOTAL LOANS

4

8

S32
REAL ESTATE

12
8

24

[I

16

4

0

CONSUMER

n

n
I

n o n b a n k f in a n c i a l

16 ■■.

Q2

Q3

1979

Q4

Ql

Q2

1980

__—
11

.

Q2

Q3

1979

Q4

Ql

Q2

1980

Seasonally adjusted. Total loans and business loans are adjusted for
transfers between banks and their holding companies, affiliates, sub­
sidiaries, or foreign branches.

porarily, as the managements of most funds re­
stricted or suspended sales to new depositors in
response to the special deposit requirement an­
nounced by the Federal Reserve in mid-March.
By late April, however, after the Federal Re­
serve had modified the special deposit require­
ments and many MMMFs had formulated tech­
niques to enable them to accept new deposits,
the rapid growth of MMMFs resumed. Yields on
MMMF shares remained above those on most
other short-term market obligations over much
of the quarter, increasing their attractiveness to
investors.
Despite a substantial increase in nonborroiwed
reserves supplied through open market opera­
tions, expansion of total member bank reserves
slowed in the second quarter as banks, given
weakness in reservable deposits, repaid borrow­
ings at the Federal Reserve discount window.
The special surcharge of 3 percentage points on
frequent borrowing by large member banks at the



discount window, introduced in mid-March, was
removed in early May, and the basic discount
rate was lowered 1 percentage point late in May
and again in June. Nevertheless, by June the dis­
count rate, at 11 percent, was well above the fed­
eral runds rate and adjustment borrowing fell to
frictional levels. In late July, the discount rate
was lowered to 10 percent, an action designed to
bring the rate into closer alignment with short­
term market interest rates.
Bank credit declined at a 4 lh percent annual
rate between March and June, following an in­
crease of IIV2 percent over the preceding three
months. A record drop in loans more than offset
additions to bank holdings of securities. Reduc­
tions in business and consumer loans led the de­
cline, while real estate loans were virtually flat
following brisk expansion in the first quarter.
The falloff in loans—evident at both large and
small banks—reflected the reduced demands for
credit as economic activity weakened. In addi­
tion, tighter lending policies adopted by most
banks—a trend encouraged by the Federal Re­
serve’s special credit restraint program—further
curtailed credit growth. In particular, sluggish
downward adjustments in the prime lending rate
encouraged many business firms to shift their
credit demands from banks to other markets
where borrowing rates were more attractive.
With the sharp decline in bank credit, banks
were able to reduce their reliance on managed
liabilities. Eurodollar borrowings dropped $8 V2
billion and other nondeposit liabilities fell $ 1 V4
billion. Although net sales of large time deposits
totaled $53/4 billion on average for the quarter,
near the pace in the first three months of 1980,
such deposits also began to contract late in the
spring.

B u sin e ss Fin a n c e

Total funds raised by nonfinancial businesses in
debt and equity markets dropped markedly in the
second quarter. Although the cash needs of non­
financial corporations remained substantial as
profits weakened further and increased inventory
accumulation largely offset declines in fixed in­
vestment outlays, firms financed a large portion
of these needs through reductions in financial as­
sets. Most notably, after accumulating a large

D om estic Financial D evelopm ents, Q2 1980

Business loans and
short- and intermediate-term business credit

Seasonally adjusted annual rates of change, inpercent1
Period

Business loans
at banks2

Short- and
intermediate-term
business credit3

1973 ..................
1974 ..................
1975 ..................
1976 ..................
1977 ..................
1978 ..................
1979 ..................
1979-Q1..............
Q2..............
Q3..............
Q4..............
1980-Q1 ..............
Q2..............

21.8
19.3
-3.8
1.3
10.5
16.3
17.5
20.5
16.6
22.7
6.0
16.4
-7.9

21.5
23.5
-4.0
4.4
13.6
18.3
20.0
20.8
20.1
27.4
6.4
22.0
4.1

1. Growth rates calculated between last months of period.
2. Based on monthly averages of Wednesday data for domestically
chartered banks and an average of current and previous month-end
data for foreign-related institutions. Adjusted for outstanding amounts
of loans sold to affiliates. Includes holdings of bankers acceptances.
3. Short- and intermediate-term business credit is business loans at
commercial banks plus nonfinancial commercial paper plus finance
company loans to businesses and bankers acceptances outstanding
outside banks. Commercial paper is a prorated average of Wednesday
data. Finance company loans and bankers acceptances outstanding
are averages of current and previous month-end data.
volume o f liquid assets in the first quarter, when
they evidently increased their borrowing in antic­
ipation of credit controls, firms drew upon those
holdings in the second quarter. A major portion
o f the borrowing by businesses to fill the remain­
ing financing gap was concentrated in the bond
market, with firms taking advantage of lower
bond rates in many cases for the purpose of re­
structuring balance sheets. Business loans at
banks, meanwhile, contracted sharply, as the
lagging adjustment in the prime rate made alter­
native sources o f credit, including commercial
paper issuance, relatively more attractive to
firms.
The comparatively high cost of bank credit in
the second quarter was the result in part of the
increased cost of funds to banks associated with
special reserve requirements imposed in March,
coupled with bankers’ concerns about meeting
the loan growth guidelines of the special credit
restraint program. In May, the spread between
the prime rate and the rate on commercial paper
widened to an unprecedented l lh percentage
points; although the spread narrowed to about 3
percentage points in June, it still remained large
by historical standards. A survey of banks in
May indicated that a substantial portion of short­



631

term business loan extensions were being made
at rates below prime—especially for loans of
short maturity at money center banks. Even so,
the average effective rate on business loans in
early May was still well above the commercial
paper rate. As a result, many firms shifted their
short-term financing to the commercial paper
market ; net issuance of commercial paper surged
to a record level in May and continued to expand
rapidly in June.
Yields on corporate bonds, like other market
rates, declined sharply in the second quarter
from their record levels near the end of the first
quarter. The Federal Reserve index of yields on
recently issued Aaa-rated utility bonds fell from
more than 14 percent in late March to near 11
percent in late June. Spreads between yields on
Aaa-rated and lower-rated bonds, which wid­
ened substantially further in April, narrowed
somewhat in May and June, but they still re­
mained historically large.
As long-term interest rates fell, the volume of
corporate bond financing ballooned, with the
funds in many cases being used to repay bank
debt. Public offerings of new security issues to­
taled a record $67 (seasonally adjusted an­
nual rate) in the second quarter, with both non­
financial and financial concerns contributing to
the surge. The increased bond issuance by finan­
cial corporations mainly reflected the heavy pace
of intermediate- and long-term offerings by fi­
nance companies. Among nonfinancial corpora­
tions, all of the increase was accounted for by
industrial companies; issuance by utilities re­
mained at about the first-quarter pace. The pro­
portion of new bonds issued by nonfinancial
firms with maturities of 10 years or over rose apGross offerings of new security issues

Seasonally adjusted annual rates, inbillions of dollars
Type of security

1980

1979
Q2

Q3

Q4

Ql

Q2e

Domestic corporate....
Bonds ..................
Publicly offered.....
Privately offered ....
Stocks ..................

58
50
35
15
8

56
39
26
13
17

47
35
25
10
12

63
44
23
21
19

91
78
67
11
13

Foreign....................
State andlocal
government........

7

9

5

2

6

42

44

47

33

58

e Estimated.

632

Federal Reserve Bulletin □ August 1980

preciably in May and June, as investors were
more receptive to such long-term securities than
they had been in the first quarter when inflation­
ary fears had been intense.
Although public offerings of bonds by higher­
rated (Aa or above) corporations were especially
heavy during the second quarter, an increased
volume of lower-rated issues also was marketed.
These latter issues offset to some extent the ap­
parently reduced flow of credit in the private
placement market, a major source of funds for
lower-rated borrowers.
Stock prices rose substantially in the second
quarter. The major composite indexes of stock
prices advanced 13 to 26 percent, as investors
apparently gave more weight to declines in inter­
est rates than to prospects of lower earnings
associated with the contraction in economic ac­
tivity. The American Stock Exchange index con­
tinued to post the largest percentage rise, reflect­
ing the greater relative importance of oil and
natural gas industry shares on this exchange.
Stock prices continued their upward movement
in early July, with most indexes surpassing rec­
ord highs reached earlier in the year. Owing to
the increase in the major stock price indexes,
conventional measures of price-earnings ratios
edged up a bit, but they continued to be histori­
cally low. Following a record volume in the first
quarter, equity issuance fell back in the second
period to near the 1979 pace. Reductions in stock
prices late in the first quarter apparently dis­

couraged equity issues in April, and the greatly
increased attractiveness of debt financing result­
ing from declining bond yields during the quarter
also may have damped demands for equity funds.

G o v e r n m e n t F in a n c e

Gross bond issuance by state and local govern­
ments increased sharply in the second quarter,
to a record $58 billion (seasonally adjusted) annual
rate. The volume of tax-exempt bonds continued
to be bolstered by increased offerings of single­
family housing revenue bonds. In addition, total
financing needs of state and local units were en­
larged owing to slower growth of revenues. A
number of bond issues that had been postponed
early in the year because of high interest rates
generally, or because rates rose above statutory
ceilings for some governmental units, were
brought to market in the second quarter when
yields dropped.
The B ond B uyer index of yields on general ob­
ligation bonds fell substantially in the second
quarter, reaching its low est level this year in
May. Subsequently, the index edged back up to
near 8 percent in mid-July, but was still almost
VIi percentage points below its peak reached
early in the second quarter. The backup in rates
since the middle of the second quarter has been
relatively greater for tax-exempt yields than for
yields on corporate bonds, reflecting in part the

Federal government borrowing and cash balance

Not seasonally adjusted, inbillions of dollars

Treasury financing
Budget surplus, or deficit (-)..............
Off-budget deficit1............................
New cash borrowings or
repayments ( - ) ...........................
Other means of financing3..................
Change incash balance ....................
Federally sponsored credit agencies,
net cash borrowings4 ....................

Q3

Q4

Ql

Q2

Q3

Q4

Ql

Q2

-8.1
-3.1

-23.8
-.1

-20.4
-3.0

21.4
-5.2

15.1
1.0
4.9

15.3
2.6
-6.1

10.62
4.2
-8.6

-4.6
-1.9
9.8

-4.4
-4.2
12.4
2.9
6.7

-24.6
-.9
18.9
-1.7
-8.3

-27.1
-3.8
19.1
4.1
-7.7

8.2
-4.4
5.4
-3.1
5.9

6.1

5.2

6.3

5.5

4.7

7.3

8.6

1. Includes outlays of the Pension Guaranty Corporation, Postal
Service Fund, Rural Electrication and Telephone Revolving Fund,
Rural Telephone Bank, Housing for the Elderly or Handicapped
Fund, and Federal Financing Bank. All data have been adjusted to
reflect the return of the Export-Import Bank to the unified budget.
2. Includes $2.6 billion of borrowing from the Federal Reserve on
March 31, which was repaid April 4 after enactment of a new debtceiling bill.



1980

1979

1978

Item

5.6e

3. Checks issued less checks paid, accrued items, and other trans­
actions.
4. Includes debt of the Federal Home Loan Mortgage Corporation
(FHLMC), Federal Home Loan Banks, Federal Land Banks, Federal
Intermediate Credit Banks, Banks for Cooperatives, and Federal
National Mortgage Association.
e Estimated.

D om estic Financial Developm ents, Q2 1980

record volume of tax-exempt issues coupled with
some falloff in the demands for such bonds by
property-casualty insurance companies.
N et cash borrowing by the Treasury amounted
to about $5V2 billion (not seasonally adjusted) in
the second quarter, a period in which large tax
receipts usually reduce Treasury financing
needs. With the combined federal budget—in­
cluding off-budget agencies—moving to a slight
surplus position, the Treasury was able to in­
crease its operating cash balance over the quar­
ter; however, the increase was much smaller
than in the same quarter of the preceding year.
All the Treasury’s financing needs in the second
quarter were met by sales of marketable secu­
rities. Total marketable debt outstanding in­
creased approximately $10 billion, reflecting an
increase of $16 billion in the stock of coupon is­
sues that was partly offset by a decline of $6 bil­
lion in Treasury bills. Nonmarketable debt out­
standing, meanwhile, decreased $4V2 billion
during the quarter, with savings bond redemp­
tions, as in the previous quarter, accounting for
more than half of the decline. The runoff of sav­
ings bonds appeared to slow somewhat in June,
however, as the differential between market
rates and yields on such instruments narrowed.
Net borrowing by federally sponsored credit
agencies totaled slightly more than $5V2 billion
(not seasonally adjusted) in the second quarter,
below the record volume of the previous quarter.
Almost all of the net agency borrowing was con­
centrated in April. During the remainder of the
quarter, the major housing agencies reduced
their indebtedness, as the weakness in demand
for home mortgage credit and the increase in de­
posit flows greatly reduced the demand for ad­
vances from Federal Home Loan Banks and as
deliveries of mortgages to the Federal National
Mortgage Association (FNMA) slowed.

M o r t g a g e a n d C o n s u m e r F in a n c e

Activity in mortgage markets contracted sharply
in the second quarter. Faced with weak deposit
inflows and pressures on earnings margins, de­
pository institutions became very restrictive in
their mortgage lending. In April, average interest
rates on new commitments for conventional
home mortgages at savings and loan associations



633

rose to more than 16 percent; moreover, nonrate
loan terms and lending standards became more
stringent. On the demand side, many would-be
homebuyers that satisfied eligibility criteria re­
quired by lenders were deterred by high interest
costs and more stringent terms. Already bur­
dened with heavy debt, consumers were increas­
ingly reluctant to take on, in addition, the high
monthly house payments, especially as real in­
come declined and indications of a steep reces­
sion in activity became apparent. Businesses,
likewise, reduced their use of mortgage credit in
association with cutbacks in commercial con­
struction activity.
Consequently, net mortgage lending by com ­
mercial banks, savings and loan associations,
and mutual savings banks came to a virtual
standstill in the second quarter. A considerable
amount of mortgage funds was made available by
state and local government housing authorities,
as they expanded the issuance of tax-exempt
bonds for the purchase of residential mortgages
at below-market interest rates. H owever, in con­
trast with the last cyclical downturn, federal and
related agencies operating in the secondary mar­
ket provided only modest support to the mortgage
market. Federal programs that would provide
for purchases of home mortgages at belowmarket rates by the Government National MortNet change in mortgage debt outstanding

Seasonally adjusted annual rates, inbillions of dollars
1979
Mortgage debt
Ql Q2 Q3 Q4

1980
Ql Q2e

By type of debt

Total .............................. 156 164 161 150 144 74
Residential.................... 118 118 115 114 104 46
Other1 .......................... 38 47 46 36 40 28

By type of holder

Commercial banks..............
Savings and loans ..............
Mutual savings banks..........
Life insurance companies .....
FNMAand GNMA............
GNMA mortgage pools ......
FHLMC and FHLMCpools .
Other2 ............................

30
45
6
11
12
14
5
33

30
51
4
11
7
19
4
38

34
44
4
14
3
24
5
33

32
34
2
15
10
27
3
27

27 6
25 -1
2 *
16 13
12 9
18 17
3 3
41 27

1. Includes commercial and other nonresidential as well as farm
properties.
2. Includes mortgage companies, real estate investment trusts,
state and local credit agencies, state and local retirement funds, non­
insured pension funds, credit unions, Farmers Home Administration
and Farmers Home Administration pools, Federal Land Banks,
Federal Housing Administration, Veterans Administration, and
individuals.
e Partially estimated.
*Less than $0.5 billion.

634

Federal Reserve Bulletin □ August 1980

gage Association (GNMA) have not been used in
the current recession as they were in the last.
Also the pricing o f purchase commitments by
FNM A has not been particularly aggressive ow ­
ing in part to earnings problems experienced dur­
ing earlier quarters, and sales of mortgages to
FNM A based on purchase commitments made
previously fell off in the second quarter as mar­
ket interest rates declined. Rather than selling to
FNM A, mortgage companies sold most of the
Federal Housing Administration/Veterans Ad­
ministration mortgages that they had originated
by issuing passthrough securities that were guar­
anteed by GNMA.
By the end of the second quarter, there were
indications that mortgage market conditions
were improving. The decline in short-term mar­
ket interest rates over the quarter helped to re­
duce cost pressures at thrift institutions, while
enhancing deposit flows. As loan demands weak­
ened and deposit flows began to pick up, home
mortgage rates were lowered. At savings and




loans, the average interest rate on new com ­
mitments for conventional home mortgages fell
to near \ 2 lU percent in July, more than 4 per­
centage points below the peak in April. Although
mortgage commitment activity remained quite
weak in April and May, both new and out­
standing commitments at savings and loans in­
creased sharply in June.
Consumer installment credit outstanding con­
tracted at an average annual rate of IOV2 percent
in the April-May period, the first drop since May
1975 and the largest reduction in the postwar era.
Substantial decreases in both closed-end and re­
volving credit occurred, as consumers curtailed
expenditures and credit use in the face of declin­
ing real incomes and worsening employment
prospects. Credit-tightening measures by lenders
after imposition of the March credit-control
package contributed to the reduction in credit
use. The contraction in consumer credit was
most pronounced at commercial banks and credit
unions.
□

635

Industrial Production
R e le a se d f o r pu blica tio n A u gu st 15

Industrial production declined an estimated 1.6
percent in July, reflecting sharp curtailments in
the production o f most durable and nondurable
goods materials and further cutbacks in the out­
put o f business equipment, home goods, and
consumer nondurable goods. Output o f electric
and gas utilities—mainly because o f the heat
w ave—increased 1.7 percent, while that of man­
ufacturing dropped 1.9 percent and of mining 0.9
percent. The decline in July in total industrial
production follows revised decreases for April,
May, and June o f 2.3, 2.6, and 2.3 percent re­
spectively. At 138.8 percent o f the 1967 average,
the index in July was 9.0 percent below its level
in January 1980.
Output of consumer goods declined 1.1 per­
cent in July—about the same as in June and less
than in the preceding two months. These som e­
what smaller declines were related mainly to in­
creases in the output of automotive products, as
auto assemblies increased about 9.0 percent in
July to an annual rate o f 6.4 million units. Output
of both home goods and consumer nondurable
goods in July is estimated to have declined sharp­
ly further. Production o f business equipment was
reduced 1.4 percent in July ; large cutbacks in this
grouping also occurred in the preceding three
months. Output o f construction supplies was re­
duced further in July, but the decline was smaller
than in each o f the previous five months.
Production o f materials declined 2.1 percent in
1967 = 100
1980

Grouping

Total industrial production...........
Products, total...........................
Final products .......................
Consumergoods .................
Durable .........................
Nondurable.....................
Business equipment.............
Intermediate products .............
Construction supplies...........
Materials .................................
p Preliminary.

e Estimated.




Junep

Julye

Feb.

141.0
141.7
141.2
141.0
128.7
145.9
168.6
143.4
127.7
139.9

138.8
140.0
139.6
139.4
128.0
143.9
166.2
141.7
126.4
137.0

-.2
-.1
.3
.2
1.5
-.3
.5
-.9
-1.3
-.5

July. Production o f durable goods materials fell
2.8 percent further, reflecting sharp reductions in
output o f parts for consumer goods and equip­
ment and of basic metals (exacerbated by a strike
in the copper industry). Output o f nondurable
goods materials declined by a similar amount in
July as a consequence o f large reductions in pro­
duction o f textiles, paper, and chemicals. Energy
materials production, bolstered by weatherinduced use and generation of electricity, in­
creased more than 1.0 percent in July.
Seasonally adjusted, ratio scale, 1 9 6 7 = 1 00

Federal Reserve indexes, seasonally adjusted. Latest figures: July.
Auto sales and stocks include imports.
Percentage change frompreceding month
Percentage
change
July 1979
1980
to
July 1980
July
Mar.
Apr.
May
June
-.4
-.4
-.2
-.5
-.3
-.5
.1
-1.0
-1.2
-.3

N ote . Indexes are seasonally adjusted.

-2.3
-1.9
-1.4
-2.0
-5.3
-.7
-.9
-4.0
-7.5
-2.8

-2.6
-1.8
-1.4
-1.7
-5.4
-.3
-1.2
-3.1
-4.8
-4.0

-2.3
-1.5
-1.3
-1.0
-.3
-1.2
-2.1
-2.3
-4.8
-3.5

-1.6
-1.2
-1.1
-1.1
-.5
-1.4
-1.4
-1.2
-1.0
-2.1

-9.2
-6.5
-5.1
-7.6
-18.6
-2.9
-3.0
-11.1
-19.2
-13.1

636

Statements to Congress
S ta te m e n t by P aul A . V olcker, Chairm an, B o a rd
o f G overnors o f the F ed era l R e serve S y s te m , b e ­
fo re the B u dget C o m m itte e , U .S . S e n a te , July
24, 1980.

I am pleased to be here today to review the con­
duct of monetary policy and to report on the Fed­
eral R eserve’s economic objectives for the year
as a whole, as well as its tentative thinking on
policy goals for 1981. Our so-called HumphreyHawkins Report has already been distributed to
yo u .1 I would like simply to add some personal
perspective this morning on the course of mone­
tary policy, in the context of the economic pros­
pects and choices facing us with respect to other
policy instruments.
Seldom has the direction of economic activity
changed so swiftly as in recent months. Today
the country is faced simultaneously with acute
problems of recession and inflation. There have
been unprecedented changes in interest rates as
well as the imposition and removal of extraordi­
nary measures of credit restraint. The fiscal posi­
tion of the federal government is changing rapidlyIn these circumstances, confusion and uncer­
tainty can arise about our goals and policies, not
just those of the Federal Reserve, but of econom ­
ic policy generally. Therefore I particularly wel­
come this opportunity to emphasize the under­
lying continuity in our approach in the Federal
Reserve and its relationship to other economic
policies—matters that are critical to public un­
derstanding and expectations.
The Federal Reserve has been and will contin­
ue to be guided by the need to maintain financial
discipline—a discipline concretely reflected in
reduced growth over time of the monetary and
credit aggregates—as part of the process of re­
storing price stability. As I see it, this continuing
1. F e d e r a l
531-42.

R eserve B u lle t in ,




vol. 66 (July 1980) pp.

effort does not reflect simply a concern about the
need for greater monetary and price stability for
its own sake—critical as that is—the experience
of the 1970s strongly suggests that the inflation­
ary process undercuts efforts to achieve and
maintain other goals, expressed in the Humphrey-Hawkins Act, of growth and employment.
As you know, our operating techniques since
last October have placed more emphasis on
maintaining reserve growth consistent with tar­
geted ranges for the various monetary aggre­
gates, with the implication that interest rates
might move over a wider range. Those targets
were reduced this year as one step toward
achieving monetary growth consistent with
greater price stability. For several months after
the new techniques were introduced in October,
the various aggregates were remarkably close to
the targeted ranges.
At that time, and for months earlier, you will
recall widespread anticipations of recession.
Nevertheless, reflecting a variety of develop­
ments at home and abroad—including an
enormous new increase in oil prices, political
volatility in the Middle East, and interpretations
of adverse budgetary developments—a marked
surge occurred in the most widely disseminated
price indexes and in inflationary expectations in
the early part of this year. Those expectations in
the short run probably helped to support busi­
ness activity for a time; in particular, consumer
spending relative to income remained very high,
with the consequence of historically (and funda­
mentally unhealthy) low saving rates and high
debt ratios. Speculation was rife in commodity
markets.
Spending and speculative activities of that
kind are ultimately unsustainable. But they carry
the clear threat of feeding upon themselves for a
time, contributing to among other things a fur­
ther acceleration of wage rates and prices. In that
way, inflation threatens to escalate still further in
a kind of self-fulfilling prophecy, posing the clear

637

risk that the subsequent economic adjustment
will be still more difficult.
Credit markets reflected these developments
and attitudes. Bond prices fell precipitously.
Long-term m oney—including mortgages—be­
came difficult to raise. Partly as a consequence,
short-term demands for credit ballooned in the
face o f sharply rising interest rates, at the ex­
pense in some instances of further weakening in
business balance sheets. That heavy borrowing
also was reflected in acceleration in the money
and credit aggregates during the winter.
An attempt to stabilize interest rates by the
provision of large amounts of bank reserves
through open market operations to support even
more rapid growth in money would probably
have been doomed to futility even in the short
run, for it could only have fed the expectations of
more inflation. It would certainly have been
counterproductive in terms of the overriding
long-term need to combat inflation and inflation­
ary anticipations. Instead, consistent with our
basic policy approaches and techniques, the Fed­
eral Reserve resisted accommodating the exces­
sive money and credit growth.
During this period of rising inflation and inter­
est rates, the administration and the Congress al­
so appropriately and intensively reviewed their
own budget planning. Coordinated with the an­
nouncement of the results of that broad govern­
ment effort and the decision of the President to
invoke the Credit Control Act of 1969, the Feder­
al Reserve announced on March 14 a series of
exceptional, temporary measures to restrain
credit growth, reinforcing and supplementing our
more traditional and basic instruments of policy.
The demand for money and credit dropped
abruptly in subsequent w eeks, reflecting the
combined cumulative effects of the tightening of
market conditions, the announcement of the new
actions, and the rather sudden weakening of eco­
nomic activity. In response, interest rates within
a few weeks fell about as fast—in some instances
faster and further—as they had risen in earlier
months. Growth in the aggregates slowed, and
for some weeks M -l A and M-1B turned sharply
negative.
There is no doubt in my mind that these lower
levels of interest rates can play a constructive
role in the process of restoring a better economic




equilibrium and of fostering recovery. Indeed,
there is already evidence—if still tentative—that
homebuilding and other sectors of the economy
sensitive to credit costs and availability are bene­
fiting. Meanwhile, progress is being made toward
reducing consumer indebtedness relative to in­
come and toward restructuring corporate bal­
ance sheets as bond financing has resumed at a
very high level. The sharp improvement in credit
market conditions has been accompanied by
slower rates of increase in consumer and pro­
ducer prices, helping to quiet earlier fears, on the
part of many, of an explosive increase in infla­
tion.
The suddenness of the change in market condi­
tions has, however, raised questions in some
minds as to whether the interest rate declines
were in some manner “ contrived” or “ forced”
by the Federal Reserve—whether, to put it
bluntly, the performance of the markets (togeth­
er with the phased removal of the special credit
restraints) reflects some weakening of our basic
commitment to disciplined monetary policy and
the priority of the fight on inflation. These per­
ceptions are not irrelevant, for they could affect
both expectations and behavior, most immedi­
ately in the financial and foreign exchange mar­
kets but also among businessmen and con­
sumers.
The facts seem to me quite otherwise.
Growth in money and credit since March has
certainly not exceeded our targets; the M -l mea­
sures have in fact been running below our target
ranges, and bank credit has declined in recent
months. While the decline in commercial loans of
banks can be explained in part by exceptionally
heavy bond and commercial paper issuance by
corporations, there is simply no evidence cur­
rently of excessive rates of credit expansion. In
these circumstances it is apparent that interest
rates have responded—and have been permitted
to respond—not to any profligate and potentially
inflationary increase in the supply of money, but
to changes in credit demands and (so far as long­
term interest rates are concerned) to reduced in­
flationary expectations.
It is in that context—with credit demands re­
duced and growth of credit running well within
our expectations and targets—that the special
credit restraint programs simply served no fur­

638

Federal Reserve Bulletin □ August 1980

ther purpose. Those measures were invoked to
achieve greater assurance that credit growth
would in fact slow and that appropriate caution
would be observed in credit usage. The special
restraints are inevitably cumbersome and arbi­
trary in specific application. They involve the
kind of intrusion into private decisionmaking and
competitive markets that should not be part of
the continuing armory of monetary policy; their
use was justified only by highly exceptional cir­
cumstances—circumstances that no longer exist.
Our normal and traditional tools of control
(which in fact have been solidified by the Mone­
tary Control Act passed earlier this year) are in­
tact and fully adequate to deal with foreseeable
needs.
Neither the decline in interest rates nor the re­
moval of the special restraints should be inter­
preted as an invitation to consumers or business­
men to undertake incautious or imprudent
borrowing commitments or as lack of concern
should excessive growth in money or credit reap­
pear. That is not happening now, but markets
(and the public at large) remain understandably
sensitive to developments that might aggravate
inflationary forces. As we saw only a few months
ago, consumers and businessmen will react
quickly to that threat in their lending and borrow­
ing behavior.
While the recent easing of financial pressures
helps to provide an environment conducive to
growth, we should not be misled. A resurgence
of inflationary pressures, or policies that would
seem to lead to that result, would not be consist­
ent with maintenance o f present—much less
lower—interest rates, receptive bond markets,
and improving mortgage availability. We in the
Federal Reserve believe the kind of commitment
we have made to reduce monetary growth over
time is a key element in providing assurance that
th$ inflationary process will be wound down.
I noted earlier that the money stock actually
dropped sharply during the early spring. In a
technical sense, working on the supply side, we
provided substantial reserves through open mar­
ket operations during that period. But com­
mercial banks, finding demands for credit and in­
terest rates dropping rapidly, repaid discount
window borrowings as their reserve needs dimin­
ished. In general terms, it seems clear that, at




least for a time, the demand for money subsided
(much more than can be explained on the basis of
established relationships to business activity and
interest rates) apparently because consumers
and others hastened debt repayment at the ex­
pense of cash balances and because the earlier
interest rate peaks had induced individuals to
draw on cash to place the funds in investment
outlets available in the market.
As the Report illustrates, growth in M -l has
clearly resumed, and the broader aggregate M-2
is now at or above the midpoint of its range. In
the judgment of the Federal Open Market Com­
mittee (FOMC), forcing reserves on the market
in recent weeks simply to achieve the fastest pos­
sible return to, for example, the midpoint of the
M -l ranges may well have required early reversal
of that approach, may have been inconsistent
with the close-to-target performance of the
broader aggregates, and therefore may have led
to unwarranted interpretations and confusion
about our continuing objectives. Depending on
the performance of the broader aggregates and
our continuing analysis of general economic de­
velopments, the FOMC is in fact prepared to
consider that M-l measures may fall significantly
short of the midpoint of their specified ranges for
the year.
I have emphasized the FOMC’s intention to
work toward the lower levels of monetary expan­
sion over time. In reviewing the situation this
month, the Committee felt that, on balance, it
would be unwise to translate that intention into
specific numerical targets for 1981 for the various
monetary aggregates at this time. That view was
strongly reinforced by certain important techni­
cal uncertainties related to the introduction of
negotiable order of withdrawal (NOW) accounts
nationwide next January, as well as by the need
to assess whether the apparent shift in demand
for cash that took place in the spring persists.
At the same time, the general nature of the po­
tential problems and dilemmas for 1981 and
beyond is clear enough; these are important
questions, not just for monetary policy but for
the full armory of public policy.
The targets for the monetary aggregates are
designed to be consistent with, and to encourage,
progress toward price stability without stifling
sustainable growth. But in the short run, the de­

Statem ents to Congress

mand for money (at any given level of interest
rates) tends to be related not to prices or real out­
put alone, but to the combined effects of both—
the nominal gross national product. If recovery
and expansion are accompanied by inflation at
current rates or higher, pressures on interest
rates could develop to the point at which con­
sistency o f strong economic expansion with re­
duced monetary growth would be questionable.
Obviously, a satisfactory answer cannot lie in
the direction o f indefinitely continued high levels
of unemployment and poor economic perform­
ance. But ratifying strong price pressures by in­
creases in the money supply offers no solution;
that approach could only prolong and intensify
the inflationary process—and in the end under­
mine the expansion. The insidious pattern of ris­
ing rates of inflation an d unemployment in suc­
ceeding cycles needs to be broken; with today’s
markets so much more sensitized to the dangers
o f inflation, economic performance would likely
be still less satisfactory if that pattern should
emerge again. The only satisfactory approach
must lie in a different direction—a credible effort
to reduce inflation further in the period ahead
and policies that hold out the clear prospect of
further gains over time, even as recovery takes
hold.
We are now in the process of seeing the infla­
tion rate, as recorded in the consumer and pro­
ducer price indexes, drop to or even below what
can be thought of as the underlying or core rate
of inflation of 9 to 10 percent. That core rate is
roughly determined by trends in wages and pro­
ductivity. We can take some satisfaction in the
observed drop of inflation and in the damping of
inflationary expectations. But the hardest part of
this job lies ahead, for we now need to make
progress in improving productivity or reducing
underlying cost and wage trends—as a practical
matter, both—to sustain the progress.
The larger the productivity gain, the smoother
will be the road to price stability—partly because
that is the only way of achieving and sustaining
growth in real incomes needed to satisfy the aspi­
rations of workers. Put in that light, the impor­
tance o f a concerted set of policies to reconcile
our goals—not simply relying on monetary pol­
icy alone—is apparent. While those other poli­
cies clearly extend beyond the purview of the




639

Federal Reserve, they obviously will bear on the
performance of financial markets and the econo­
my as the Federal Reserve moves toward reduc­
ing over time the rate of growth in money and
credit.
In that connection, I recognize the strong con­
ceptual case that can be made for action to re­
duce taxes. Federal taxes already account for a
historically large proportion of income. With in­
flation steadily pushing income taxpayers into
higher brackets and with another large payrolltax increase to finance social security scheduled
for 1981, the ratio will go higher still. The thesis
that this overall tax burden—and the way our tax
structure impinges on savings and investment,
costs, and incentives—damages growth and pro­
ductivity seems to me valid. Moreover, depend­
ing on levels of spending and the business out­
look next year, the point can be made that the
implicit and explicit tax increases in store for
next year will drain too much purchasing power
from the economy, unduly affecting prospects
for recovery.
But I must also emphasize the existence of po­
tentially adverse consequences that cannot be
escaped—to ignore them would be to jeopardize
any benefits from tax reduction and to risk fur­
ther damage to the economy.
Whatever the favorable effects of tax reduc­
tion on incentives for production and productiv­
ity over time, the more immediate consequences
for the size of the federal deficit, and potentially
for interest rates and for sectors of the economy
sensitive to credit market conditions, need to be
considered.
Many of the most beneficial effects of a tax re­
duction depend on a conviction that such a re­
duction will have some permanence, which in
turn raises questions of an adequate commitment
to complementary spending policies and appro­
priate timing. We are not dealing with the notion
of a “ quick fix” over the next few months for a
recession of uncertain duration, but of tax action
for 1981 and beyond at a time when federal
spending levels, even for fiscal 1981, appear to be
a matter of considerable uncertainty, with the di­
rection of movement higher.
Experience is replete with examples of stimu­
lation, undertaken with the best motives in the
world, that in retrospect has been ill-timed and

640

Federal Reserve Bulletin □ August 1980

excessive. Given the demonstrable frailty of our
economic forecasting, it takes a brave man in­
deed to project with confidence the precise na­
ture of the budgetary and economic situation that
will face the nation around the end of this year.
Moreover, an intelligent decision on the revenue
side of the budget implies knowledge of the
spending priorities of an administration and a
Congress, a matter that by the nature of things
can only be fully clarified after the election.
For all the developing consensus on the need
for “ supply side” tax reduction—and I share in
that consensus—some time seems to me neces­
sary to explore the implications of the competing
proposals and to reduce them to an explicit de­
tailed program for action. I have emphasized the
need to achieve not only improvement in produc­
tivity but also a lower trend of costs and wages;
despite its importance, I have seen little discus­
sion in the current context of how tax reduc­
tion plans might be brought to bear more directly
on the question of wage and price increases.
The continuing sensitivity of financial markets,
domestic and international, to inflationary fears
is a fact of life. It adds point and force to these
observations and questions. Tax and budgetary
programs leading to the anticipation of excessive
deficits and more inflation can be virtually as
damaging as the reality in driving interest rates
higher at home and the dollar lower abroad.
I believe it is obvious from these remarks that
a convincing case for tax reduction can be made
only when crucial questions are resolved—ques­
tions that are not resolved today. The appropri­
ate time for decision seems to me late this year or
early 1981. Spending plans for fiscal 1982 as well
as fiscal 1981 can be clarified. We will know if
recovery of business is firmly under way. There
will have been time to develop and debate the
most effective way of maximizing the cost-cut­
ting and incentive efforts of tax reduction, and to
see whether a tax program can contribute to a
consensus—a consensus that has been elusive in
the past—on wage and pricing policies consistent
with progress toward price stability. To go ahead

prematurely would surely risk dissipating the po­
tential benefits of tax reduction amid the fears
and actuality of releasing fresh inflationary
forces.
I have spoken before with this committee and
others about the need for changes in other areas
of economic policy to support our economic
goals. Paramount is the need to reduce our de­
pendence on foreign oil—a matter not unrelated
to tax policy. We need to attack those elements
in the burgeoning regulatory structure that im­
pede competition or add unnecessarily to costs.
And I believe it would be a serious mistake to
seek relief from our present problems by retreat
to protectionism at the plain risk of weakening
the forces of competition—the pressures on
American industry to innovate—and under­
mining the attack on inflation.
We are now at the critical point in our efforts
to reduce inflation while putting the economy
back on the path to sustainable growth in the
1980s.
I sense that the essential objectives are widely
understood and agreed on: the need to wind
down inflation even as recovery proceeds; the
importance of restoring productivity and increas­
ing incentives for production and investment; the
maintenance of open, competitive markets; and a
substantial reduction in our dependence on for­
eign energy.
You know as well as I how much remains to be
done to convert glittering generalities into practi­
cal action: to achieve and maintain the necessary
fiscal discipline; to make responsible tax reduc­
tion and reform a reality; to conserve energy and
increase domestic sources; and to tackle the reg­
ulatory maze. But I also know there is no escape
from facing up to the many difficulties. Our poli­
cies must be coherently directed toward the long­
er-range needs. In that connection, I believe that
economic policies, public and private, should
recognize that the need for discipline and for
moderation in the growth of money and credit
provides the framework for decisionmaking in
the Federal Reserve.
□

Chairm an V olcker su b m itte d sim ilar sta te m e n ts
to the S en a te co m m ittees on Banking, H ousin g,
an d U rban Affairs (July 22, 1980) an d on F inance

(July 28, 1980) an d to the H ou se com m ittees on
Banking, Finance an d U rban Affairs (July 23,
1980) an d on W ays an d M ean s (July 24, 1980).




Statem ents to Congress

S ta te m e n t by N a n cy H . T e e te rs , M em b er , B o a rd
o f G overn ors o f the F ed era l R eserve S ystem , b e ­
fo r e the S u b co m m ittee on C onsum er Affairs o f
the C o m m ittee on B ankin g , H ou sin g , an d U rban
A ffairs , U .S . S en ate, July 24, 1980.

I am pleased to appear before the subcommittee
this morning to deliver the Board’s endorsement
of the Consumer Usury Study Commission Act.
A more analytical approach to the regulation of
consumer credit is highly desirable, and the
Board hopes that this commission will make a
real contribution to the legislative process.
A study commission will be able to assess the
extent to which the recommendations of the N a­
tional Commission on Consumer Finance
(NCCF) have been fulfilled and, in addition, will
be able to update the N CC F’s recommendations,
particularly with respect to open-end credit
that has grown so rapidly since the NCCF re­
port was published in 1972. While the Board is
skeptical that much original research can be ac­
complished in the time given the commission, we
are hopeful that fruitful recommendations will re­
sult. The Board and its staff will be pleased to
assist the commission to the extent possible.
The Board has previously testified before this
subcommittee on the issue of federal rather than
state law regulating consumer credit matters. As
this subcommittee may recall, the Board did not
support the bill that prohibits use of the rule of
78s in certain transactions. The Board opposed
that bill not because it believes creditors should
continue to use the rule of 78s, but because it
believes state regulation is generally preferable
to federal regulation. This preference is based
not only on general philosophical principles but
also on the basis of experience in attempting to
impose a national, uniform disclosure standard
under the Truth in Lending Act. Whereas the
Board does not recommend retreating from the
goal of national, uniform disclosure, it is inclined
to recommend that substantive regulation be left
to the states.
The Board has generally favored the abolition
of artificial rate ceilings that reduce competition
among creditors, create unwarranted and unfair
subsidies among classes of consumers, and arti­
ficially reduce credit availability. Some limit on
the amount that can be charged may be neces­
sary for smaller transactions involving necessi­



641

tous borrowers, but beyond that the Board leans
toward allowing competition to set the rate.
The Board would suggest that the question of
consumer credit rates not be taken up in isolation
from other consumer and creditor rights and re­
sponsibilities. Consumer protections often affect
revenues or costs and, therefore, are an integral
part of any consideration of the rate issue. Fur­
thermore, we believe that a comprehensive ap­
proach is preferable to a piecemeal approach.
While the Board supports the idea of a study
commission, it hopes that this subcommittee
will, nonetheless, consider the Board’s recom­
mendation to integrate the Fair Credit Billing Act
and the newly enacted Electronic Fund Transfer
Act. A staff draft of an integration bill was re­
cently distributed to the Board’s Consumer Ad­
visory Council, and the Council is expected to
give the draft a preliminary review at its meeting
next week. The basic good sense of having simi­
lar, if not identical, rules for consumers to follow
in both credit and debit transactions speaks for
prompt consideration of the bill.
The Board continues to support the amend­
ment to the Truth in Lending Act that removes
the 5 percent limit on discounts for cash. In addi­
tion to the discount bill, you asked that the Board
comment on a further amendment that permits
merchants to impose a surcharge on credit-card
as opposed to cash transactions. To begin with,
from an economic standpoint, we do not per­
ceive any difference between a discount for cash
and a surcharge for credit. Most probably, how­
ever, a merchant can administer a surcharge
much more easily than a discount.
Permitting cash discounts or credit surcharges
makes a good deal of econom ic sense, in the
Board’s view, because it allows greater flexibili­
ty in allocating costs to those who should bear
them. If a credit-card transaction costs the mer­
chant more than a cash transaction, then the
merchant should have the right to pass that cost
along to the card user. If the consumer prefers to
use a credit card rather than bear the risks of car­
rying cash or the inconvenience of using a check,
the legislation not only would permit the card­
holder to do so but also would allow a merchant
to pass along the cost. The Board supports the
bill because it frees up the market, encourages
competition among payment mechanisms, and
leads to a more equitable distribution of costs.

642

Federal Reserve Bulletin □ August 1980

S ta te m e n t by H enry C. W allich, M em b er, B o a rd
o f G overnors o f the F ed era l R eserve S ystem , b e ­
fo r e the C om m ittee on B an kin g, H ousing, an d
Urban Affairs, U .S . S en a te, July 25, 1980.

I am pleased to testify on S. 2718, a bill that
would facilitate the establishment and operation
of export trading companies.
At the outset, I should like to reaffirm the view
of the Board that the United States needs a
strong export sector. The development of export
trading companies will probably assist in achiev­
ing this goal, although in my view fundamental
economic factors, such as U .S. price perform­
ance and exchange rates, will continue to be the
most important factors. Banks have an important
role to play in financing U .S. exports, and banks
can assist export trading companies in this coun­
try by providing financing and by offering a wide
range of export-related services. But bank own­
ership of trading companies raises broad issues
of public policy, some of which were set forth in
an earlier statement submitted to this committee.
My statement today on behalf of the Board of
Governors is limited to the issues raised by pro­
visions for bank ownership of trading companies,
and to possible ways of dealing with these issues.
The separation of banking and commerce has a
long tradition in American banking and is embod­
ied in several banking laws, most notably the
Bank Holding Company Act and the Glass-Steagall Act. The Federal Reserve believes that this
separation has been a major element of strength
for the American banking system and the Ameri­
can economy.
While I covered many of the problems in­
volved in permitting significant bank ownership
of trading companies in my earlier statement sub­
mitted to the committee, I would like to briefly
summarize the main problems.
• Banks that are engaged in commercial trad­
ing may be exposed to high risks, particularly
when leveraging is involved as is typically the
case with trading companies. This risk could well
be much larger than the original investment. I
might note that a few years ago a Japanese bank
reported losses of $0.5 billion from the failure of
a major trading company with which it was close­
ly associated.
• Bank supervisors would be involved to a
substantial degree in decisions regarding the op­



erations of trading companies; and the regula­
tions necessary to protect banks from a range of
possible future problems could well hamper the
operations of these trading companies.
•
Bank-owned trading companies and their
clients may have access to credit on more favor­
able terms than other companies; alternatively,
large banks could use bargaining power obtained
through trading-company affiliates to obtain an
increasing share of the banking business of client
firms. Although regulations can help avoid the
most blatant types of abuse (and the bill includes
provisions regarding terms of credits), it would
be a difficult task to supervise credit judgments
through regulations with the specificity needed to
ensure protection from unfair competition.
In light of these problems, the Federal Reserve
has tried to design safeguards that would make it
possible to permit a degree of bank participation
in export trading companies without breaching
the separation of banking and commerce. In this
connection it needs to be recognized that trading
companies may be engaged in importing, and
thus involved in some commercial activities in
the United States as well as in commercial activi­
ties abroad. Most of the Board’s recommenda­
tions have been incorporated in S. 2718, and they
have helped strengthen the provisions of the bill
by reducing risks to banks. But two important
provisions were omitted, and because the
Board’s recommendations represented an in­
tegrated proposal, the omissions substantially re­
duce the protections that the Federal Reserve be­
lieves are needed.
In particular, the Board urges that S. 2718 be
further amended to provide the following:
1. A banking organization would be permitted
to invest in an export trading company only up to
20 percent of the shares of the trading company.
2. A group of banking organizations could not
own more than 50 percent of the voting stock of
any single export trading company.
I should like to provide some background on
these proposals.
Although there may be debate on the exact
percentage of equity interest at which an investor
ceases to be essentially a portfolio investor and
becom es actively associated with management,
the best guideline appears to be the point at
which an investor can make use of equity ac­
counting—generally 20 percent. When an own­

Statem ents to Congress

ership interest is 20 percent or more, accepted
standards of accounting normally call for a bank
(or any company) to include on its balance sheet
and income statements its proportionate share of
the net assets and earnings of a company. Expe­
rience in international banking has generally
shown that when bank ownership in a foreign
company permits the use of equity accounting,
the bank frequently tends to become involved in
management aspects of the business and to be
identified with the company in the eyes of the fi­
nancial community. When such identification ex­
ists, a bank may find it necessary to stand behind
all of the liabilities of a company in case of finan­
cial difficulties, in order to preserve the bank’s
standing in international financial markets. For
companies that are highly leveraged, a bank’s
potential loss could well be much larger than the
original investment.
By contrast, at levels of ownership interest at
which equity accounting does not apply, the im­
mediate rewards to an investing bank would be
the dividends it might receive on shares and in­
come from loans or services provided to the trad­
ing company. Under those circumstances a bank
would tend to treat a trading company on an
“ arm’s-length” basis, and the bank’s reputation
would not become clearly associated with that of
the company in which it had invested.
To strengthen its recommendation on limiting
ownership interests, the Federal Reserve earlier
proposed that an export trading company could
not bear the name of an investing bank nor repre­
sent that it was affiliated with a bank. Provisions
to accomplish this have been included in S. 2718.
As we saw with real estate investment trusts in
the mid-1970s, public identification of a bank
with another enterprise can involve the bank in
substantial potential commitments and, in the
case of difficulties, in substantial losses, even
when there is no bank ownership interest. H ow­
ever, when a significant ownership interest ex­
ists, even if there is no public identification
through the name of the trading company, there
is also a likely commitment on the part of the
bank. Thus, in devising rules for export trading
companies when bank investments are contem­
plated, it is necessary to couple the restriction on
public identification of banks and trading com ­
panies with a limitation on bank ownership inter­
ests.



643

It is sometimes argued that banks can better
limit their risks by maintaining control over their
affiliates. This proposition may well be valid for
commercial banking affiliates; it does not, how­
ever, represent a basis for preferring to allow a
bank to acquire control over a commercial firm
rather than to limit bank involvement in manage­
ment of that firm through restrictions on bank
ownership.
The philosophy of the Federal Reserve pro­
posals—that bank ownership and management of
trading companies should be limited—was de­
signed not only to reduce risks to banks, but also
to hold to a minimum the need for regulation of
the operation of export trading companies, while
permitting banks to provide some financial sup­
port. Underlying this approach is the view of the
Board that bank supervisors need to develop
ways of reducing the burden of supervision, both
on the supervisory agencies and on the banking
community. In the area of international banking,
the Board has taken some steps to implement
this view in revising its Regulation K last year,
and the Board staff is reviewing proposals that
would further reduce the regulatory restrictions
on Edge corporations.
The export trading companies provided for in
S. 2718 would be organized and operated princi­
pally for the purpose of exporting goods or serv­
ices produced in the United States as well as pro­
viding services to facilitate such exports. If U .S.
banks were to have important ownership and
management interests in trading companies, they
would be engaged indirectly in a host of activities
not currently permissible under U .S. law. Under
the act, for example, trading companies could
purchase for export commodities and manufac­
tured goods, and could provide services in such
fields as accounting, tourism, engineering, archi­
tecture, and transportation. U .S. banking organi­
zations do not have extensive experience in
these nonbanking activities, nor do the bank su­
pervisory agencies.
The bill directs the bank regulatory agencies to
establish standards to ensure against unsafe or
unsound export trading company practices that
could affect any banking organization that con­
trolled a trading company. Development of the
requisite expertise to cope with the almost limit­
less range of activities that would be permitted to
export trading companies under S. 2718 would be

644

Federal Reserve Bulletin □ August 1980

time consuming and costly to the bank regulatory
agencies. If banks owned trading companies,
they would, of course, also need to develop ex­
pertise in those lines of activity in which the trad­
ing company specialized. In sum, in view of the
risks of bank ownership of trading companies,
and of the large costs that would be associated
with efforts to control those risks through regula­
tion, we believe there is a basic presumption that
bank ownership should only be allowed on a
scale that does not involve an important manage­
ment interest.
The second Board recommendation was that
S. 2718 contain a limit on the total investment in
a single export trading company by all banking
organizations combined. If banks as a group con­
trolled a trading company, the banks would
likely be identified with the company even
though none had an interest of 20 percent or
more. This identification could expose the in­
vesting banks to the risk of large losses in the
event of the failure of the trading company.
These recommended restrictions on bank in­
vestment do not represent severe restraints on
the operations of export trading companies. For
example, under the Federal Reserve proposal,
three banks together could supply up to 50 per­
cent of the capital of a trading company. And
that trading company would be able to operate
on the basis of its own business judgment with­
out being subject to the special operating rules
established by bank supervisory agencies that
are contemplated under S. 2718.
Banks can provide support to trading com­
panies in a number of ways apart from equity in­
vestments. First among these is financing—the
area in which the bank’s expertise is likely to be
of greatest value to the trading company. The
Federal Reserve proposals contemplated that a
banking organization could lend to any single ex­
port trading company an amount that together
with its investment in that company would not

exceed 10 percent of the bank’s capital, while to­
tal equity investment by a bank in one or more
trading companies could not exceed, in the ag­
gregate, 5 percent of the bank’s capital. Such
loans could be made by the bank, its Edge corpo­
rations, or other holding company affiliates.
These different members of a banking organi­
zation could also provide other services, such as
foreign exchange, information on foreign mar­
kets, letters of credit, advice on arranging ship­
ments, and insurance brokerage. I recognize
that, under the Board’s Regulation K, it would
not be possible for Edge corporations to supply
to export trading companies the full range of
services that a bank could supply, and I believe
that it would be appropriate to allow Edge corpo­
rations additional authority to enable them to as­
sist export trading companies. The Board might,
under appropriate restrictions, create for export
trading companies a special status under Regula­
tion K similar to that proposed last year for quali­
fied domestic business entities—a proposal on
which the Board has not yet acted.
Moreover, I should note that Regulation K
provides that Edge corporations will apply to the
Board to engage in providing services that would
be incidental to international or foreign business,
and the Board may expand that list of per­
missible financial services on the basis of the
facts submitted in the applications.
In conclusion I should reemphasize that the
U .S. economy would best be served by having
banking organizations assist trading companies
as bankers and limited investors rather than as
owner-operators of these firms. This arrange­
ment will permit banks to provide the financially
related services in which they have expertise,
while permitting trading companies to innovate
unfettered by regulation of their activities. At the
same time it will preserve the separation of bank­
ing and commerce and the role of banks as the
impartial arbiters of credit.
□

S ta te m e n t by P aul A . V olcker, Chairm an, B o a rd
o f G overn ors o f the F ed era l R eserve S ystem , b e ­
fo r e the C o m m ittee on B anking, H ousing, a n d
Urban A ffairs, U .S . S en a te, A u g u st 5, 1980.

I am pleased to be here this morning on behalf of
the Depository Institutions Deregulation Com­
mittee (DIDC) to discuss the actions taken by
that committee in the months since its creation




Statements to Congress

by the Depository Institutions Deregulation and
Monetary Control Act of 1980.
At the outset, I would like to emphasize my
personal view that the committee has worked ef­
fectively, with good coordination and coopera­
tion among the constituent agencies that make up
its membership. As might be expected, dif­
ferences of opinion or emphasis on some issues
have been expressed, but I have been much more
impressed with the degree of consensus that has
developed as we have attempted to solve com ­
mon problems. The committee staff, drawing on
the expertise of each agency, has provided a bal­
anced analysis of the issues, so that discussion
among the DIDC members has had a common
base as well as the ability to draw on the special
insights of the individual members. Our dis­
cussions have focused—I believe in a balanced
w ay—on the needs of savers and borrowers, the
relationship between DIDC decisions and the
pattern of economic growth, the needs of finan­
cial institutions within the context of a changing
competitive environment, and the charge of the
Congress to the committee to look toward the
eventual elimination of deposit rate ceilings. As
this listing suggests, we see our central responsi­
bility under the law as one of managing interest
rate ceilings in a manner that supports the na­
tion’s economic goals and prepares the way for
ultimate deregulation; the controversial matter of
the differential on various types of deposit in­
struments created after December 1975 should
be evaluated in that larger context.
The first major issue before the committee was
that of premiums and finders’ fees for new depos­
its. The issue had been under study by the vari­
ous agencies and had already been scheduled for
discussion by the Interagency Coordinating
Committee when the DIDC was created. While
the question of permitting or eliminating pre­
miums or finders’ fees is sometimes posed as an
issue o f further regulation rather than deregula­
tion, that view seems oversimplified. The fact is
that premiums and finders’ fees have been regu­
lated in large part as a means of enforcing depos­
it rate ceilings, but DIDC members have found
that current industry practices involving the use
of premiums and finders’ fees make it increas­
ingly difficult to administer such ceilings fairly
and effectively during the phaseout period. Regu­




645

latory limits on the value of gifts have been diffi­
cult to enforce, and it is evident that those limita­
tions are being widely exceeded in some
instances. The effect is to increase yields above
deposit rate ceilings and to divert valuable examin­
er time that clearly could better be spent eval­
uating the safety and soundness of institutions.
Offers of cash by some institutions to those that
bring a “ friend” to make a deposit have recently
increased deposit yields IV 2 or more percent­
age points above ceiling rates in some markets; it
is apparent that such finders’ fees are often
shared, directly or indirectly, with the depositor,
contrary to the intent of present regulation.
An extended comment period on DIDC pro­
posals to ban both premiums and finders’ fees for
any deposit subject to rate ceilings has resulted
in widespread comment. These comments, along
with other relevant material, are now being ana­
lyzed by our staff. Our present schedule calls for
the DIDC to make its decision on September 9.
In order to provide planning time for the indus­
try, the committee has already announced that,
should it take action on these proposals to elimi­
nate or significantly reduce premiums or finders’
fees, its decision would not be effective until D e­
cember 31.
In its most significant decision, the DIDC at
the end of May adjusted the ceiling rates payable
on both 6- and 30-month floating-ceiling depos­
its—those deposits whose ceiling rates are tied to
interest rates on Treasury securities with com ­
parable maturities. (See attachment I .1) The ad­
justments increased the ceilings by changing
their relationship to the yields on corresponding
Treasury securities and established minimum
ceilings for each of the deposit categories.
Several factors led us to take these actions.
With respect to increasing the ceilings relative to
Treasury securities, the primary objective was to
improve the competitive position of all deposi­
tory institutions in order to attract funds at a time
when the extreme pressures on earnings of
institutions seemed to be subsiding. Savings and
loan associations, mutual savings banks, and
smaller commercial banks—all of which had
1. The attachments to this statement are available on
request from Publications Services, Board of Governors
of the Federal Reserve System, Washington, D.C. 20551.

646

Federal Reserve Bulletin □ August 1980

been under liquidity pressure—are a primary
source of credit for housing, agriculture, and
small business. These institutions had been find­
ing it increasingly difficult to compete with alter­
native market instruments for funds, particularly
money market mutual funds and Treasury secur­
ities. In that connection, I should note that yields
on Treasury securities to which the deposit ceil­
ings are related are often significantly below oth­
er interest rates available in the market.
I believe all of the DIDC members are sensi­
tive to the reality of an environment in which the
cutting edge of competition faced by depository
institutions has been increasingly not among
themselves, but with nondeposit instruments —
and especially with new vehicles such as money
market mutual funds. Funds diverted to the mar­
ket or to money market funds do not directly find
their way into important credit markets—espe­
cially for housing, agriculture, and small busi­
n ess-em p h a sized by the institutions. By allow­
ing depository institutions the flexibility to offer
higher returns, the changes made by the com­
mittee should facilitate a larger increase in their
deposits and, consequently, in the flow of funds
to the credit markets they serve. Moreover, the
overall decline in interest rates occurring at the
time the actions were taken, by easing the earn­
ings pressures faced by many of these institu­
tions, made them better able to offer the more
competitive rates. In short, from the point of
view of both economic recovery and concern
with the long-run financial strength and com­
petitive posture of depository institutions, it
seemed to the committee a desirable time for
banks and thrift institutions to be placed in a
stronger position to increase flows of small time
deposits with floating ceilings.
The concept of minimum ceilings (which, at
the time the decision was made, were at levels
near or below those prevailing) was adopted in
part in recognition of the fact that Treasury se­
curity yields are not only generally below other
market rates but generally lead declines in other
rates available to savers. Thus, floating depositrate ceilings related to such instruments would
decline more rapidly than yields on other avail­
able instruments, such as money market mutual
funds. As a consequence, the competitive posi­
tion of depository institutions might, at least tem­




porarily, suffer should yields on Treasury secur­
ities, to which floating ceilings are tied, dip to
relatively low levels. In an environment of de­
clining interest rates, in which pressures on insti­
tutional earnings would in any event be reduced,
the best approach seemed to be to permit the
thrift institutions and small banks to compete
more effectively.
In the past, declines in interest rates have been
associated with an acceleration of deposit in­
flows to thrift institutions and small banks be­
cause their fixed-rate-ceiling deposits became in­
creasingly more attractive relative to competitive
instruments. Today, those fixed-rate deposits are
well below market rates. But establishment of a
minimum ceiling rate on the popular 6- and 30month floating-ceiling certificates potentially en­
ables depository institutions to enhance their
competitive performance in an environment of
relatively low rates.
In addition, the congressional mandate to the
DIDC to look toward ultimate removal of deposit-rate ceilings suggested that it would be desir­
able for the depository institutions, when consis­
tent with other goals, to gain experience with
greater competitive freedom in rate setting.
DIDC members are aware that there has been a
general tendency for institutions to pay the ceil­
ing rate, and that consequently, institutions may
be reluctant to follow open market rates down,
should they drop appreciably. In the short run, at
the minimum levels of the ceiling, the result
should be higher inflows of deposits than would
otherwise take place. Should rates in the open
market persist at lower levels, institutions should
in time respond; indeed, any other result would
cast in doubt the concept of deregulation.
The question of a differential in deposit rates
between thrift institutions and banks has, of
course, been highly controversial. The DIDC left
intact the differential of lU percent for 30-month
savings certificates. Those longer-term deposits
are considered particularly appropriate to the
longer-term nature of asset distribution of thrift
institutions and provide a more solid base and in­
centive for mortgage lending.
The DIDC, in establishing the new rate ceil­
ings, also faced the prospect that the decline in
interest rates would, under preexisting arrange­
ments, reintroduce a differential on six-month

Statem ents to Congress

money market certificates (MMCs) after more
than a year during which commercial banks and
thrift institutions had competed on equal terms.
Small commercial banks, which are significant
lenders not only in the mortgage market but also
to agriculture and to small businesses, could thus
have faced substantial deposit attrition and sig­
nificant pressure on their ability to extend credit
to vulnerable sectors o f the economy. In the
light o f that potential problem, the committee,
while permitting the differential to reappear
generally at levels of rates prevailing in recent
months, also permitted commercial banks tem­
porarily to reissue maturing MMCs to the same
holder at a rate equal to the thrift ceiling. More­
over, the minimum deposit ceiling established
made no allowance for a differential, mainly on
the basis that should those minimums be effective,
all institutions would be in a relatively favorable
position to attract deposits.
DIDC members, in evaluating the potential im­
pact o f the deposit-rate-ceiling adjustments o f
late May, were apprehensive that lenders might
not be willing to commit additional deposit in­
flows to mortgage and other credit markets be­
cause o f their concern that those deposits would
be rapidly withdrawn if market rates sub­
sequently rose. In the environment of rising in­
terest rates in late 1979 and early 1980, the vol­
ume o f withdrawals before maturity for the
purpose o f acquiring higher-yielding deposits—
often at the same institution—rose sharply be­
cause the early withdrawal penalty in the early
months of a deposit’s life was not sufficient to
offset the gain from reinvestment. Technically,
this situation reflected the provision that the min­
imum required penalty was imposed only on ac­
crued interest and did not require a reduction in
the amount of the original deposit; in the early
months of a deposit’s life, insufficient interest
has accrued to act as a deterrent to early with­
drawal when interest rates are rising appreciably.
In those circumstances, the original maturity of
the deposit lost significance. Therefore, in late
May, the DIDC modified the early withdrawal
rule to increase the early withdrawal penalty in
the early months of a deposit’s life, while leaving
the penalty in subsequent months virtually un­
changed; in the first months o f the life of the de­
posit, the penalty will exceed accrued interest.



647

While the committee is aware that the depositor
who breaks his deposit contract by withdrawing
the deposit before maturity may be concerned
upon finding his principal reduced by early with­
drawal penalties, a similar situation would also
occur if an investor were to liquidate a market
security before maturity in an environment of
rising rates. A depositor provided a market-oriented rate of return on a term deposit is, in ef­
fect, asked to share more o f the interest rate risk
formerly borne by the depository institution, a
risk that appeared to be limiting the willingness
of the institutions to commit funds to credit mar­
kets.
Since the DIDC acted in late May, on a sea­
sonally adjusted basis over the last two months,
small time deposits (mostly MMCs and smallsaver certificates) at all institutions have shown
only modest growth, but thrift institutions appear
to have performed somewhat better than com ­
mercial banks. Both banks and thrift institutions
have experienced outflows o f MMC balances, as
the ceiling rate on such deposits generally re­
mained below those available on alternative in­
vestments, despite the ceiling rate adjustment.
Both kinds of institutions have attracted larger
inflows o f 2 V2-year-or-longer, small-saver cer­
tificates, but thrift institutions, which have had
the advantage o f a 25-basis-point differential,
have done relatively better. Presumably, growth
in total small-denomination time deposits at both
sets o f institutions would have been slower, and
even negative, without the DIDC actions of late
May.
The biggest surprise has been the behavior of
savings accounts, which rose substantially at all
types of institutions in spite of ceiling rates well
below market rates. Undoubtedly, economic un­
certainty-including questions in depositor’s
minds about the interest rate outlook—has in­
creased the public’s desire to hold highly liquid
assets. Although the increase in total time and
savings deposits has not as yet been reflected in
expanded mortgage holdings at the various insti­
tutions, both outstanding and new commitments
by savings and loan associations registered in­
creases in June.
Questions have arisen about the effects of the
DIDC actions on mortgage rates. As a general
principle, the effect of the ceilings on mortgage

648

Federal Reserve Bulletin □ August 1980

rates must be viewed in the context of the entire
capital market, of which the mortgage market is
just one part. Mortgage rates are unlikely for
long to diverge substantially from other capital
market rates because many potential mortgage
buyers can shift freely from bonds to mortgages,
or the reverse. H owever, to the extent that high­
er ceilings increase the ability of depository insti­
tutions to compete for deposit funds, the flow of
mortgage credit should be enhanced, tending to
bring downward pressure on mortgage rates rela­
tive to the bond market. Deposit costs can at
times play some role in that process, but the cur­
rent spread between mortgage rates and deposit
costs appears wide enough to induce profitable
mortgage lending should deposit inflows materi­
alize in size, and that factor appears to have con­
tributed to the recent tendency for mortgage
rates to fall.




Finally, I would like to comment on S. 2927, a
bill that would require a differential of a full 25
basis points on all deposit categories established
after December 10, 1975, for 12 months, and then
reduce the differential 5 basis points per year for
the subsequent 5 years. The DIDC presently has
the authority to institute a schedule such as that
proposed in the bill for all such deposit cate­
gories and to create new deposit categories with
or without the differential. However, my own
feeling—reinforced by my actual experience in
working with the com mittee—is that the public
interest in the face of shifting and uncertain mar­
kets is likely to be enhanced by retaining flexibili­
ty within the overall context of working toward
deregulation. I understand some other members
of the committee may have a different view of the
matter; the bill has not been discussed at a com ­
mittee meeting.
□

649

Announcements
L e t t e r o n M o n e t a r y Ta r g e t R a n g e s

Following is the text of a letter sent by Chairman
Volcker on July 29, 1980, to Senator William
Proxmire and Representative Henry S. Reuss
discussing monetary target ranges for 1981:
It is apparent to me from the questions and dis­
cussions at the recent monetary policy oversight hear­
ing before your committee that confusion has unfortu­
nately arisen over the intent of the Federal Open Mar­
ket Committee in characterizing monetary target
ranges for 1981 only in general terms. I was, for in­
stance, disturbed that some members of the com­
mittee apparently seriously considered that the FOMC
was somehow signaling a reluctance to provide specif­
ic numerical targets for 1981 at an appropriate time—a
thought, I can confidently say, that has never entered
FOMC discussion.
Our concern was quite different. We wanted to
reiterate, as clearly as possible, the intent of the
FOMC “to seek reduced rates of monetary expansion
over coming years, consistent with a return to price
stability” and the “broad agreement in the Committee
that it is appropriate to plan for some further progress
in 1981 toward reduction of targeted ranges.” We be­
lieved then, and believe now, that those general state­
ments are the clearest and most useful indication of
intentions that we can make (and are responsive to the
requirements of P.L. 95-523, the Humphrey-Hawkins
Act) and we have been concerned that an attempt to
set forth precise numerical ranges for each target could
well prove to be ultimately a source of confusion
rather than clarity. A major part of the reason is that
certain institutional changes are in train or in pros­
pect—in particular the introduction of NOW accounts
on a nationwide basis but also the possible continued
development of money market funds—that will upset
“normal” relationships among the various aggregates
and their relationship to economic activity. While we
know these institutional changes are under way, the
magnitude of their impact is (and for a time inevitably
will remain) in substantial doubt. Moreover, the
FOMC wished to appraise for a period of time the last­
ing significance, if any, of the recent shortfall in M-l
relative to economic activity.
Unfortunately, our attempt to cut through the insti­
tutional uncertainty to describe the broad substances
of our intent with respect to monetary growth ranges
seems to be subject to misinterpretation. To attempt to




clear up any misunderstanding, let me indicate that,
abstracting from the institutional influences and ques­
tions cited above, the general intent of the FOMC at
this time can be summarized as looking toward a re­
duction in ranges for M-l A, M-1B, and M-2 for 1981
on the order of V2 percentage point. Converting that
approach into specific numerical ranges for next year
requires making a number of technical judgments that
involve considerable uncertainty and necessarily, at
this point, a degree of arbitrariness. Specific ranges for
each aggregate, and assumptions behind their deriva­
tion, follow this letter.
In accordance with usual procedures, all of the
ranges will have to be reassessed in or before next
February. The extent of downward adjustments in the
ranges not only will be influenced by the various tech­
nical factors described below, but also will be condi­
tioned by the speed with which inflationary biases in la­
bor and product markets can be reduced, and by the like­
lihood that the economy can make an orderly adaptation
to curtailed money growth. The need for public policies,
other than monetary policy, to move in a complemen­
tary way to speed those adjustments was, of course,
the essence of my testimony before the committee.
The appropriate performance of money growth in
1981, within the ranges adopted, relative to actual re­
sults in 1980 will also depend to some extent on the
outcome this year—on for instance, whether this year
sees a very slow growth in narrow money because the
public has, for one reason or another, economized
sharply on cash balances.
The FOMC approaches the targeting process with a
great deal of care, and is frankly concerned that
changes in numerical targets, particularly once speci­
fied in detail as below, will give rise to confusion even
when (perhaps particularly when!) such changes are
purely in response to a technical, institutional change
that has no real significance for monetary policy. But I
trust this additional information will, despite those
concerns, help further the greater public understanding
of monetary policy that we both wish to foster.

D erivation o f Specific M on etary G rowth R a n g es
fo r 1981 on the B asis o f Certain A ssu m ption s

A number of technical judgments need to be made in
deriving specific numerical monetary growth ranges
for the aggregates in 1981 consistent with the intention
to reduce ranges for M-l A, M-1B, and M-2 on the or­
der of V2 percentage point. These include: (a) the ex­

650

Federal Reserve Bulletin □ August 1980

tent to which the public will shift from demand
deposits to NOW accounts next year; (b) the extent to
which there will be shifts from savings accounts or
other interest-bearing assets to NOW accounts; (c) the
degree to which money market funds will continue
their phenomenal growth (in the process drawing
funds that would otherwise have flowed both through
institutions whose liabilities are in M-2 and the open
market); and (d) the extent to which the public will or
will not tend to return to longer-run relationships be­
tween cash holdings, interest rates, and the nominal
GNP—in other words, assessment of factors affecting
shifts in the public’s desire over the longer run to hold
money balances in relation to income.
The degree of shifting into NOW and ATS accounts
will depend on the aggressiveness with which banks
and other depository institutions promote the new ac­
counts, as well as on public response. Partly on the
basis of experience in various New England states it
may be estimated that in 1981 shifts from demand de­
posits to NOW accounts could lower M-l A growth by
amounts ranging from 1 to 5 percentage points. Simi­
larly, such shifts from savings accounts could raise
M-1B growth V2 to 2 V2 percentage points.
If the midpoints of those ranges are taken as the best
(but obviously crude) estimate available at the present
time, target ranges for M-l A and M-1B would be im­
plied of 0 to 2 V2 percent and 5 to
percent, respec­
tively. In essence, those changes represent a 1/2-point
reduction in the ranges adopted for 1980—which are
3 V2 to 6 percent for M-l A and 4 to 6 V2 percent for
M-IB—but with the downward adjustment noted above
for M-l A to allow for the effect of shifts into newly
introduced NOW accounts from demand deposits and
the upward adjustment for M-1B to allow for shifts
from other assets. The target growth range for M-l A
would have to be raised if shifts out of demand depos­
its were less than assumed, and lowered if shifts were
greater. Similar reasoning would apply to the range for
M-1B with regard to shifts out of savings deposits and
other interest-bearing assets. The ranges for M-l A and
M-1B also imply continued efforts in general by the
public to economize on transactions-type cash bal­
ances.
Consistent with a reduction in ranges on the order of
V2 percentage point, the growth range for M-2 for 1981
would be 5 V2 to 8 V2 percent unless money market
funds, included in M-2, are judged to be drawing sub­
stantial new amounts of funds that in the past would
have been lodged in open market instruments (which
are not in M-2). Consistent with the indicated M-l and
M-2 targets, M-3 and bank credit ranges of growth for
1981 of 6 V2 to 9 V2 percent and 6 to 9 percent, respec­
tively, could be the same as for 1980. Maintenance of
these ranges relative to M-l and M-2 is related to the
growth in housing, business, and other credit that
would be a normal accompaniment of the expected re­
covery in economic activity.
It should be emphasized that the relationship among
the specific numerical ranges for the M-ls and M-2 are
dependent at this state on necessarily rough, and



somewhat arbitrary, judgments of the impact of insti­
tutional change and must be considered illustrative.
These complications should not obscure the basic in­
tent of achieving a modest further reduction in mone­
tary growth rates next year, as the FOMC indicated
earlier. That the range for M-1B next year will, in all
likelihood, be higher than this year needs to be under­
stood as no more than a technical adjustment to ac­
commodate one-time shifts out of savings accounts in
response to the introduction of NOW accounts on a
nationwide basis. The reduction in M-l A is exaggerat­
ed downward for comparable reasons. The basic point
is that these ranges, abstracting from such shifts, are
expected to be lower than in the preceding year, and
thus reflect a further curtailment of money growth.

I m p l e m e n t a t io n o f
M o n etary Control A ct

The Federal Reserve Board has announced a ten­
tative schedule for carrying out provisions of the
Monetary Control Act. Included is a 60-day
grace period for the posting of reserve require­
ments by nonmember institutions.
Enacted last March 31, the act is designed to
improve the effectiveness of monetary policy by
applying new reserve requirements set by the
Federal Reserve for commercial banks, savings
banks, savings and loan associations, and credit
unions that offer transaction accounts or non­
personal time deposits.
The act also provides access to Federal Re­
serve services for all institutions subject to re­
serve requirements, and requires the Board to
publish a set of pricing principles and a proposed
schedule of fees for services by September 1,
1980. The Board is required to begin actual pric­
ing of services by September 1, 1981.
Three proposals—on reserve requirements,
the discount window, and passthrough arrange­
ments for reserve maintenance—have already
been issued by the Board. However, substantial
effort will still be required to complete and dis­
tribute reporting forms, to prepare operations
manuals, and to familiarize a large number of de­
pository institutions with the new requirements
and procedures.
Consequently, instead of the originally
planned September 1 start for implementing the
new reserve requirements, an alternative time­
table has been adopted that provides for large

Announcements

nonmember institutions to begin posting required
reserves by early November. Member banks
would continue to post reserves under existing
rules until that time. Reserves for member
banks—which will be reduced under the pro­
gram—will be adjusted later to ensure that re­
serves posted over the first year will be the same
as if the reduction had started in September.

651

mutual funds would be eliminated and that de­
posits would be returned on August 11.
Because of technical considerations relating to
the return of the special deposits as originally
proposed, the Board has decided to return the
deposits two weeks earlier than scheduled.

R e g u l a t i o n Z. A m e n d m e n t

Ch a n g e in D is c o u n t R a t e

The Federal Reserve Board approved a reduc­
tion in the discount rate from 11 percent to 10
percent, effective July 28, 1980. The action is a
purely technical adjustment to bring the discount
rate into alignment with the level of short-term
market interest rates and bank lending rates.
In making the change, the Board acted on
requests from the directors of the Federal Re­
serve Banks of N ew York, Cleveland, Rich­
mond, Atlanta, Chicago, St. Louis, Minneapolis,
Kansas City, Dallas, and San Francisco. (Sub­
sequently, the Board approved similar actions by
the directors of the Federal Reserve Banks of
Boston and Philadelphia, effective July 29, 1980.)
The discount rate is the interest rate that is
charged for borrowings from the District Federal
Reserve Banks.

R e t u r n o f S p e c ia l D e p o s it s

The Federal Reserve Board has announced that
it would return on July 28 to money market mu­
tual funds and like creditors some $573 million of
special deposits they have made with the Federal
Reserve under the requirements of the Board’s
credit restraint program initiated March 14 and
now being phased out.
The special deposit requirements of the pro­
gram called in part for money market mutual
funds to deposit with the Federal Reserve 15 per­
cent of the increases in their assets covered by
the program. This was reduced effective June 16
to V h percent. On July 3, the Board announced
that the program was no longer needed in light of
developments in the econom y, and said that the
special deposit requirement for money market



The Federal Reserve Board has approved, ef­
fective August 1, 1980, an amendment to Regula­
tion Z (Truth in Lending) that increases the toler­
ance for accuracy in disclosure of the annual
percentage rate in mortgage transactions in­
volving irregular payments or advances.
The amendment allows for a tolerance of V2 of
1 percentage point above or below the actual an­
nual percentage rate in the case of irregular mort­
gage transactions, through March 31, 1981.
After that date, the tolerance for accuracy re­
verts to the standard Vs of 1 percentage point
above or below the actual annual percentage rate
generally allowable under Regulation Z.
The Board’s action put into effect a recom­
mendation in the legislative history of the Truth
in Lending Simplification and Reform Act, under
which the Board is revising Regulation Z. The
congressional conference report on which the act
is based suggested that the Board temporarily re­
lax the rules for accuracy in disclosure of annual
percentage rates with respect to irregular mort­
gage transactions.
These are defined in the amendment as real
property transactions involving multiple ad­
vances (made, for example, in the course of con­
struction financing) or irregular payment sched­
ules other than the first payment period or the
first or last payment amount (for example, loans
with mortgage insurance premiums that vary
over the terms of the loan).
The Board acted in light of comment received
on a proposal made last May to permit temporar­
ily a more generous tolerance for error in the
case of irregular mortgage transactions.
The temporary relaxation is intended to give
mortgage lenders time to acquire and put into use
calculation tools adequate to make the complex
calculations required to determine accurately the
annual percentage rate for complicated mort­
gages.

652

Federal Reserve Bulletin □ August 1980

P o l ic y f o r A s s e s s m e n t of
Civ il M o n e y P e n a l t ie s

The Federal Reserve Board has approved a su­
pervisory policy for the assessment of civil mon­
ey penalties for violation of certain laws. The
policy was recommended to federal financial reg­
ulatory agencies by the Federal Financial Institu­
tions Examination Council.
The Financial Institutions Regulatory and In­
terest Rate Control Act of 1978 provides that the
Board may assess penalties for violations of cer­
tain provisions of statutes including the Change
in Bank Control Act, the National Banking Act,
the Bank Holding Company Act, and the Federal
Reserve Act.
The principal points in the statement of super­
visory policy with respect to civil money penal­
ties are as follows:
1. Establishment of procedures by the bank
regulatory agencies for the exchange of detailed
reports on enforcement actions taken.
2. Specification of the factors that should be
taken into consideration in deciding whether,
and in what amounts, civil money penalties
should be imposed.
The supervisory policy developed by the coun­
cil and adopted by the Board is additional to the
Board’s existing policies for implementation of
the civil money penalties provisions of the Finan­
cial Institutions Regulatory and Interest Rate
Control Act.

R e g u l a t i o n T: A m e n d m e n t

The Federal Reserve Board has announced ap­
proval, effective November 3, of an amendment
to Regulation T (Credit by Brokers and Dealers)
to permit brokers and dealers to lend on mutual
fund shares. The Board acted after consideration
of comment received on a proposed amendment
issued in 1979.
Under the amendment brokers and dealers can
extend and maintain credit only on fully paid-for
mutual fund shares. A broker-dealer would be
prohibited under provisions of the Securities E x­
change Act and existing rules of the Securities




and Exchange Commission from giving credit
on the initial purchase o f mutual fund shares.

R e g u l a t i o n Y: I n t e r p r e t a t i o n

The Federal Reserve Board has announced an
interpretation of its Regulation Y (Bank Holding
Companies), effective August 11, 1980. The in­
terpretation allows a bank holding company to
establish, without prior approval of the Board,
an operations subsidiary to perform services for
the bank holding company and its banking and
nonbanking subsidiaries that the bank holding
company could perform directly.

Ch a n g e s in B o a r d S taff

The Board of Governors has announced the fol­
lowing appointments in the Division of Con­
sumer and Community Affairs, effective August
10, 1980.
Glenn E. Loney as Assistant Director. Mr.
Loney, who joined the Board’s staff in February
1975, holds a B.A. from Michigan State Uni­
versity and a J.D. from the University of Michi­
gan Law School.
Dolores S. Smith as Assistant Director. Ms.
Smith came to the Board in December 1975; she
holds a B.A . from the University of Texas and a
J.D. from Georgetown University Law Center.
The Board has also announced the resignation
of Robert C. Plows, Assistant Director, Division
of Consumer and Community Affairs, effective
August 18, 1980.

S y s t e m M e m b e r s h i p .A d m is s io n o f S tate Ba n k

The following bank was admitted to membership
in the Federal Reserve System during the peri­
od July 11, 1980, through August 10, 1980:
O klahom a

Elk C i t y ............................ Elk City State Bank

653

Legal Developments
A m endm ents

to

R e g u l a t io n D

The Board of Governors has determined to rescind the
marginal reserve requirement on managed liabilities of
member banks (and Edge and Agreement Corpora­
tions) and United States branches and agencies of for­
eign banks with total worldwide consolidated bank
assets in excess of $1 billion, and the supplementary
reserve requirement imposed on large denomination
time deposits of member banks (and Edge and Agree­
ment Corporations).
Effective July 24, 1980, the Board amends Regula­
tion D as follows:
1. Sections 204.5(a) (1) (ii) and (2) (ii) are amended by
deleting the last two sentences.
2. Section 204.5(f) is deleted in its entirety.

A m endm ents

to

R e g u l a t io n Z

The Board of Governors has amended Regulation Z
(Truth in Lending) to increase the tolerance for accu­
racy in disclosing the annual percentage rate in irregu­
lar mortgage transactions to one-half of one percent­
age point.
Effective August 1, 1980, Regulation Z is amended
by adding paragraph (d) to read as follows:

1981, after which data the general standard of accura­
cy in paragraph (b) of this section shall apply.

A m e n d m e n t s to C r e d it R e st r a in t
S u bpart A

In view of current economic conditions, the Board of
Governors is terminating the reporting and special de­
posit requirements of the consumer credit restraint
program. The provisions regarding change in terms of
open-end and 30-day credit accounts will remain tem­
porarily in effect in order to permit the orderly phase­
out of those provisions.
1. Effective July 24, 1980, 12 C.F.R. Part 229, Sub­
part A is amended as follows:
(a) Sections 229.3 and 229.4 are removed and re­
served.
Section 229.3—[Reserved.]
Section 229.4—[Reserved.]
(b) Paragraph (d) is added to Section 229.6 as follows:
# Section 229.6—Change in Terms of Open-£nd
Credit Accounts

Section 226.5—Determination of Annual
Percentage Rate.
* * * * *
(d) Special rule fo r irregular m ortgage transactions .
Notwithstanding any other provision in this section,
the annual percentage rate in an irregular mortgage
transaction shall be considered accurate if it is not
more than one-half of one percentage point above or
below the annual percentage rate determined in ac­
cordance with either the actuarial method or the
United States Rule method. For the purpose of this
paragraph, an irregular mortgage transaction is a real
property transaction involving one or more of the fol­
lowing features: multiple advances, irregular payment
periods (other than an irregular first period, as defined
in footnote 5c), and irregular payment amounts (other
than irregular first and last payment amounts). This
paragraph shall cease to be effective on March 31,




* * * * *
(d) (1) A change in terms is effective under this sec­
tion, only if notice of such change is mailed or
delivered on or before September 5, 1980.
(2) A change-in-terms notice that is mailed or
delivered after September 5, 1980, is not subject
to this Subpart and must comply with the re­
quirements of Regulation Z (12 C.F.R. 226.7(f))
and other applicable Federal or State law.
2. Effective October 31, 1980, 12 C.F.R. Part 229,
Subpart A, §§ 229.1 through 229.6 are rescinded.

S u bpart B

On March 14, 1980, the Board adopted this Subpart to
restrain the expansion of short term credit through

654

Federal Reserve Bulletin □ August 1980

money market funds and other similar creditors. In
view of current economic conditions, the Board has
determined to rescind this Subpart, effective July 28,
1980.

S u bpart C

On March 14, 1980, the Board adopted this Subpart to
restrain the expansion of credit through nonmember
commercial banks. In view of current economic condi­
tions, the Board has determined to rescind this Sub­
part, effective July 24, 1980.

I n t e r p r e t a t io n

of

R e g u l a t io n Y

The Board of Governors has issued an interpretation
of Regulation Y (Bank Holding Companies and Change
in Bank Control) which delineates the conditions gov­
erning the holding and disposition of assets acquired
by bank holding companies and their banking or non­
banking subsidiaries in satisfaction of debts previously
contracted.
Effective July 22, 1980, Regulation Y is amended by
adding a new section 225.140 to read as follows:
Section 225.140—Disposition of Property
Acquired in Satisfaction of Debts Previously
Contracted.

S u bpart D

The Board is terminating the reporting requirements
that U.S. commercial banks, U.S. branches and
agencies of foreign banks, U.S. bank holding com­
panies, finance companies, and certain other selected
corporations are required to file in view of the phase­
out of the Board’s voluntary Special Credit Restraint
Program. Effective July 28, 1980, the Board rescinds
Subpart D.

A m e n d m e n t s t o R u l e s R e g a r d in g
D e l e g a t io n o f A u t h o r it y

The Board of Governors has delegated to the Director
of the Division of Banking Supervision and Regulation
the authority to approve the retirement of capital notes
of state member banks prior to maturity if, after the
proposed redemption, the bank’s capital position re­
mains satisfactory.
Effective July 1, 1980, section 265.2 is amended by
adding subparagraph (26) to read as follows:
Section 265.2—Specific Functions Delegated to
Board Employees and Federal Reserve Banks

(c) The Director of the Division of Banking Super­
vision and Regulation (or, in the Director’s absence,
the Acting Director) is authorized:

(26) To approve the retirement prior to maturity of
capital notes issued by a state member bank pur­
suant to sections 204.1(f) (3) (i) and 217.1(f) (3) (i) of
this Part (Regulations D and Q), provided the Direc­
tor is satisfied that that bank’s capital position will
be adequate after the proposed redemption.



The Board recently considered the permissibility, un­
der section 4 of the Bank Holding Company Act, of a
subsidiary of a bank holding company acquiring and
holding assets acquired in satisfaction of a debt pre­
viously contracted in good faith (a “dpc” acquisition).
In the situation presented, a lending subsidiary of a
bank holding company made a “dpc” acquisition of
assets and transferred them to a wholly-owned subsid­
iary of the bank holding company for the purpose of
effecting an orderly divestiture. The question present­
ed was whether such “dpc” assets could be held indef­
initely by a bank holding company subsidiary as in­
cidental to its permissible lending activity.
While the Board believes that “dpc” acquisitions
may be regarded as normal, necessary and incidental
to the business of lending, the Board does not believe
that the holding of assets acquired “dpc” without any
time restrictions is appropriate from the standpoint of
prudent banking and in light of the prohibitions in sec­
tion 4 of the Act against engaging in nonbank activi­
ties. If a nonbanking subsidiary of a bank holding com­
pany were permitted, either directly or through a
subsidiary, to hold “dpc” assets of substantial amount
over an extended period of time, the holding of such
property could result in an unsafe or unsound banking
practice or in the holding company engaging in an im­
permissible activity in connection with the assets,
rather than liquidating them.
The Board notes that section 4(c) (2) of the Bank
Holding Company Act provides an exemption from
the prohibitions of section 4 of the Act for bank hold­
ing company subsidiaries to acquire shares “dpc” . It
also provides that such “dpc” shares may be held for a
period of two years, subject to the Board’s authority to
grant three one-year extensions up to a maximum of
five years.1Viewed in light of the Congressional policy

1. The Board notes that where the dpc shares or other similar

Legal D evelopm ents

evidenced by section 4(c) (2), the Board believes that a
lending subsidiary of a bank holding company or the
holding company itself, should be permitted, as an in­
cident to permissible lending activities, to make acqui­
sitions of “dpc” assets. Consistent with the principles
underlying the provisions of section 4(c) (2) of the Act
and as a matter of prudent banking practice, such as­
sets may be held for no longer than five years from the
date of acquisition. Within the divestiture period it is
expected that the company will make good faith efforts
to dispose of “dpc” shares or assets at the earliest
practicable date. While no specific authorization is
necessary to hold such assets for the five-year period,
after two years from the date of acquisition of such
assets, the holding company should report annually on
its efforts to accomplish divestiture to its Reserve
Bank. The Reserve Bank will monitor the efforts of the
company to effect an orderly divestiture, and may or­
der divestiture before the end of the five-year period if
supervisory concerns warrant such action.
The Board recognizes that there are instances where
a company may encounter particular difficulty in at­
tempting to effect an orderly divestiture of “dpc” real
estate holdings within the divestiture period, notwith­
standing its persistent good faith efforts to dispose of
such property. In the Depository Institutions Deregu­
lation and Monetary Control Act of 1980, (P.L. 96-221)
Congress, recognizing that real estate possesses un­
usual characteristics, amended the National Banking
Act to permit national banks to hold real estate for five
years and for an additional five-year period subject to
certain conditions. Consistent with the policy under­
lying the recent Congressional enactment, and as a
matter of supervisory policy, a bank holding company
may be permitted to hold real estate acquired “dpc”
beyond the initial five-year period provided that the
value of the real estate on the books of the company
has been written down to fair market value, the car­
rying costs are not significant in relation to the overall
financial position of the company, and the company
has made good faith efforts to effect divestiture. Com­
panies holding real estate for this extended period are
expected to make active efforts to dispose of it, and
should keep the Reserve Bank advised on a regular
basis concerning their ongoing efforts. Fair market val­
ue should be derived from appraisals, comparable
sales or some other reasonable method. In any case,
“dpc” real estate would not be permitted to be held
beyond 10 years from the date of its acquisition.
With respect to the transfer by a subsidiary of other
“dpc” shares or assets to another company in the
interests represent less than 5 per cent of the total of such interests
outstanding, they may be retained on the basis of section 4(c) (6), even
if originally acquired dpc.



655

holding company system, including a section 4(c) (1)
(D) liquidating subsidiary, or to the holding company
itself, such transfers would not alter the original di­
vestiture period applicable to such shares or assets at
the time of their acquisition. Moreover, to ensure that
assets are not carried at inflated values for extended
periods of time, the Board expects, in the case of all
such intracompany transfers, that the shares or assets
will be transferred at a value no greater than the fair
market value at the time of transfer and that the trans­
fer will be made in a normal arms-length transaction.
With regard to “dpc” assets acquired by a banking
subsidiary of a holding company, so long as the assets
continue to be held by the bank itself, the Board will
regard them as being solely within the regulatory au­
thority of the primary supervisor of the bank.

B a n k H o l d in g C o m p a n y a n d B a n k M e r g e r
Or d e r s I s su e d b y the B o a r d o f G o v e r n o r s

O rders U nder S ection 3 o f Bank
H olding C om pany A c t

Central Colorado Company and C.C.B., Inc.,
Denver, Colorado
Order Approving Formation of
Bank Holding Companies
Central Colorado Company, Denver, Colorado, a lim­
ited partnership (“Partnership”), and its general part­
ner, C.C.B., Inc., Denver, Colorado (“CCB”), have
applied for the Board’s approval under section 3(a) (1)
of the Bank Holding Company Act (“Act”) (12 U.S.C.
§ 1842(a) (1)) of formation of bank holding companies
through the acquisition by Partnership of 100 percent
of the voting shares of Central Bancorporation, Inc.,
Denver, Colorado (“Bancorporation”), a registered
bank holding company. Bancorporation’s subsidiary
banks are Central Bank of Denver, Denver, Central
Bank of Academy Boulevard, Colorado Springs, Cen­
tral Bank of Aurora, Aurora, Central Bank of North
Denver, Denver, First National Bank of Glenwood
Springs, Glenwood Springs, First National Bank of
Grand Junction, Grand Junction, First National Bank
in Aspen, Aspen, First National Bank-North in Grand
Junction, Grand Junction, First National Bank in
Craig, Craig, Central Bank of Colorado Springs, Colo­
rado Springs, Central Bank of Greeley, Greeley,
Rocky Ford National Bank, Rocky Ford, all in Col­
orado (collectively “Banks”).
Notice of the applications affording opportunity for
interested persons to submit comments and views, has
been given in accordance with section 3(b) of the Act.

656

Federal Reserve Bulletin □ August 1980

The time for filing comments and views has expired,
and the Board has considered the applications and all
comments received in light of the factors set forth in
section 3(c) of the Act (12 U.S.C. § 1842(c)).
Partnership, a nonoperating limited partnership with
no subsidiaries, and its general partner, CCB, a nonop­
erating corporation with no subsidiaries, were orga­
nized for the purpose of becoming bank holding com­
panies through the indirect acquisition of Banks.
Applicants and their officers and directors are not as­
sociated with any other banks or banking organiza­
tions. Bancorporation through its twelve subsidiary
banks holds commercial bank deposits of $915.5 mil­
lion representing 8.41 percent of total deposits in com­
mercial banks in the state of Colorado.1
Upon consummation of the proposal Applicants
would be the fourth largest banking organization in the
state of Colorado with twelve subsidiary banks in eight
local banking markets in Colorado. Based on the rec­
ord, it appears that consummation of this proposal
would have no adverse effect upon competition, or the
concentration of banking resources in any relevant
area. Accordingly, the Board concludes that com­
petitive considerations associated with this proposal
are consistent with approval of the applications.
The financial and managerial resources and future
prospects of Applicants and Bancorporation and its
banking subsidiaries are generally satisfactory. Ac­
cordingly, the Board concludes that banking factors
are consistent with approval of the applications.
While no immediate changes in Bancorporation’s
operations or in the services offered to its customers are
anticipated to follow from consummation of the pro­
posed acquisition, convenience and needs consid­
erations are consistent with approval of the appli­
cations.
In connection with the applications, the Board has
considered a proposal submitted by Baldwin-United
Corporation and its subsidiary, D. H. Baldwin Com­
pany, both of Cincinnati, Ohio (collectively referred to
as “Baldwin”), for divesting Bancorporation. Baldwin
became a bank holding company on December 31,
1970, as a result of the 1970 Amendments to the Act by
virtue of its ownership of Central Bank of Denver,
Denver, Colorado. Baldwin also holds an insurance
company and a savings and loan association that it ac­
quired after June 30, 1968, both of which engage in
impermissible activities under the Act. In 1977, pur­
suant to section 255.4(d) of the Board’s Regulation Y
(12 C.F.R. § 225.4(d)), Baldwin filed an irrevocable
declaration to cease to be a bank holding company by

1. All banking data are as of March 31, 1979.




December 31, 1980. Baldwin submitted its divestiture
plan in order to fulfill its irrevocable declaration.
The first element of Baldwin’s divestiture plan is the
acquisition of Bancorporation by Partnership. Partner­
ship is a limited partnership created by a limited part­
nership agreement and CCB is its corporate general
partner. The shares of CCB will be sold to the direc­
tors, officers and employees of CCB and Banks. Part­
nership will sell Class I limited partnership interests to
a number of institutional investors (“Investors”). In
addition to those rights accorded to limited partners
under Colorado law, the Class I limited partners will
have the right to vote on the amendment of certain pol­
icy requirements provided for in the limited partner­
ship agreement. In exchange for the shares of Bancor­
poration, Baldwin will receive a Class II limited
partnership interest in Partnership. Baldwin’s only
rights under the limited partnership agreement are to
receive distributions on its interest from Partnership
and to have access to all information concerning Part­
nership. The agreement provides Baldwin with no vot­
ing rights of any kind.
The second element of the divestiture plan is Bald­
win’s sale of debentures with associated warrants to
Investors. The debentures and warrants are governed
by an indenture administered by an independent bank
trustee located outside of Colorado. The only use
Baldwin may make of the distributions it receives by
virtue of its Class II limited partnership interest is to
pay, in part, the interest on the debentures. The asso­
ciated warrants can be exercised for a proportionate
interest in Baldwin’s Class II limited partnership inter­
est. Partnership distributions received by Baldwin in
excess of a certain amount will be contributed by Bald­
win, on behalf of the warrant holders, toward the exer­
cise of the warrants. If such payments have not caused
the warrants to be fully exercised, thereby divesting
Baldwin of its ownership of the Class II limited part­
nership interest by 1995, the warrant holders must
commit to exercise the warrants or the warrants will
be sold by the trustee to purchasers willing to exercise
them. If the trustee is unable to sell the warrants by the
year 2001, Baldwin’s remaining interest in the Class II
limited partnership interest must be donated to Part­
nership.
In addition to the above, Baldwin and CCB have
provided, inter alia, the following commitments and
representations in order to assure that Baldwin will no
longer control Bancorporation and Banks and will not
control Partnership or CCB:
1. The officers and directors of Baldwin and its sub­
sidiaries are prohibited by the partnership agree­
ment from purchasing:
(i) the shares of the general partner, CCB; or
(ii) any Class I limited partnership interest.

Legal D evelopm ents

2. CCB’s board of directors will not hold more than
5 percent of Baldwin’s shares in the aggregate.
3. Persons or groups holding more than 5 percent of
Baldwin’s stock must choose between the invest­
ment in Baldwin and in Partnership or CCB.
4. Officers and directors of Baldwin and its sub­
sidiaries will be prohibited from acquiring stock in
an Investor.
5. Baldwin will not hold any of the debentures or
warrants it intends to issue.
6. Not more than 5 percent or more of the Class I
limited partnership interests will be sold to any bank
holding company or 25 percent or more to any com­
pany.
7. No interlocking directors, officers or employees
will be permitted between CCB, Partnership and
their subsidiaries, on the one hand, and Baldwin and
its subsidiaries, on the other.
8. There will be no interlocks between Baldwin and
Investors and approval of the Federal Reserve Bank
of Kansas City will be sought prior to any extension
of credit by Baldwin to any Investor.
9. CCB and Partnership will abide by the com­
mitments set forth in the Board’s Order of Septem­
ber 28, 1973, approving the acquisition by Baldwin
of five of Banks. (59 F ederal Reserve Bulletin
752 (1973)).
10. Partnership will seek the approval of the Re­
serve Bank for all current and proposed business
dealings with Baldwin of any kind.
11. Baldwin’s board of directors has submitted a
resolution to the effect that Baldwin will not attempt
to exercise control over Partnership.
12. Baldwin’s chief executive officer has submitted
an affidavit stating that he will not attempt to exer­
cise control over Partnership.
13. The boards of CCB and all twelve banks have
submitted resolutions that they will report any ac­
tion by Baldwin inconsistent with its status as a
Class II limited partner to the Reserve Bank.
14. Baldwin will not attend any meeting of Partner­
ship’s partners.
15. Baldwin will not offer any advice to CCB on
matters of policy and management and CCB will not
solicit such advice from Baldwin.
In order to determine whether the applications of
CCB and Partnership are consistent with the require­
ments of the Act, the Board has considered whether
the proposed transaction assures that Baldwin will no
longer control Bancorporation or Banks, and will not
acquire control of Partnership of CCB. Section 2(a) (2)
of the Act generally provides that one company con­
trols another if it controls 25 percent or more of the
other company’s voting securities, controls in any



657

manner the election of a majority of the directors or ex­
ercises a controlling influence over the other company.
The Board does not believe that Baldwin’s Class II
limited partnership interest constitutes a voting securi­
ty for purposes of section 2(a) (2) (A). The Board has
issued an interpretation of its Regulation Y which
states that for the purpose of assessing the adequacy of
a divestiture in situations where section 2(g) (3) of the
Act (12 U.S.C. § 1841(g) (3)) applies, limited partner­
ship interests will be considered to be voting secur­
ities. (12 C.F.R. § 225.139(c) (3)). Although this inter­
pretation is not directly applicable to the instant case,
the Board believes that as a general rule limited part­
nership interests afford limited partners a sufficient op­
portunity to influence the partnership’s affairs such
that limited partnership interests should be considered
voting securities for purposes of the Act. However,
Baldwin’s Class II limited partnership interest pro­
vides Baldwin with no legal means to influence CCB or
Partnership. Furthermore, the Class II limited partner­
ship interest has far fewer rights than the Class I inter­
ests and fewer than those accorded to limited partners
under state law. For these reasons, the Board finds
that Baldwin’s Class II limited partnership interest is
not a voting security.
The Board notes that three of the proposed directors
of CCB are senior officers of several of Banks, and
seven other proposed directors are directors of
Banks.2 Only one of the total of eleven proposed direc­
tors is not associated with any of Baldwin’s sub­
sidiaries. The composition of the proposed board of
directors of CCB raises some question regarding Bald­
win’s ability to influence CCB. The Board notes, how­
ever, that each director must make a substantial per­
sonal investment in CCB, and concludes that the size
of this investment greatly reduces the possibility that
Baldwin will be able to influence these individuals.
Moreover, it appears that the seven directors of Banks
involved will be “outside directors” to the extent that
they are not employees of Banks and will not be em­
ployees of CCB. Particularly in view of the size of the
investment involved, and in light of the other facts of
record, the Board believes that the proposed composi­
tion of CCB’s board of directors does not preclude a
finding that the proposed divestiture will be adequate.
Baldwin will also retain an indirect economic inter­
est in Bancorporation by virtue of its Class II interest.
The Board’s interpretation of section 2(g) (3) men­
tioned above states that “the retention of an economic
interest in the divested company that would create an
incentive for the divesting company to attempt to in­

2. Bancorporation’s board of directors will be identical to that of
CCB.

658

Federal Reserve Bulletin □ August 1980

fluence the management of the divested company will
preclude a finding that the divestiture is complete.”
(12 C.F.R. § 225.139 n.3). The Board is satisfied that
Baldwin has provided adequate safeguards to assure
that the Class II limited partnership interest will not
provide sufficient incentive for Baldwin to attempt to
influence CCB and Partnership. Baldwin will not have
the use of its distributions from Partnership which it is
required to pass on to the debenture holders. Further,
since the sale price of Baldwin’s Class II limited part­
nership interest is represented by the price of the
debentures, the degree to which Baldwin could benefit
from an increase in the value of Partnership is fixed.
Finally, the divestiture plan provides that Baldwin’s
Class II interest can begin to be acquired by the war­
rant holders after five years and will be completely
divested within twenty-one years at the latest. This
proposal contemplates, in essence, a deferred payment
for Baldwin’s interest in Banks and in many respects
resembles long-term debt.
After a review of Baldwin’s plan, together with the
limited partnership agreement, the debenture and war­
rant indenture, Partnership’s and CCB’s applications,
other submissions and applicable state and federal
law, the Board has determined that upon consum­
mation of Partnership and CCB’s acquisition of Ban­
corporation and the implementation of all of the other
elements of the divestiture plan, Baldwin will not con­
trol a bank or bank holding company and, accordingly,
will cease to be a bank holding company. However,
pursuant to the Board’s power under section 5(b) of
the Act (12 U.S.C. § 1844(b)) to issue orders to admin­
ister and carry out the purposes of the Act and to pre­
vent evasion thereof, the Board hereby conditions this
determination, as well as its approval of Partnership’s
and CCB’s applications under section 3(a)(1) of the
Act, upon compliance with the commitments made by
CCB, Partnership and Baldwin. Based upon the fore­
going and other considerations reflected in the record,
the Board concludes that consummation of the pro­
posal would be consistent with the public interest and
that the applications should be approved.
On the basis of the record, the application is ap­
proved for the reasons summarized above. The trans­
action shall not be made before the thirtieth calendar
day following the effective date of this Order or later
than three months after the effective date of this Or­
der, unless such period is extended for good cause by
the Board of Governors or by the Federal Reserve
Bank of Kansas City, pursuant to delegated authority.
By order of the Board of Governors, effective July 30,
1980.

Voting for this action: Vice Chairman Schultz and Gover­



nors Wallich, Teeters, Rice, and Gramley. Absent and not
voting: Chairman Volcker and Governor Partee.

(Signed) G riffith L. Garwood,
[seal]

Deputy Secretary o f the Board.

Concurring Statement o f Governors Teeters and Rice

Although we believe that Baldwin’s proposal to divest
Banks will, on balance, result in an adequate divesti­
ture, we are more concerned about the proposed com­
position of the board of directors of CCB than is the
majority of the Board. As noted in the majority opin­
ion, ten of the eleven proposed directors are now offi­
cers or directors of Banks, and thus have a previous
association with Baldwin. We believe that it would be
preferable for the majority of CCB’s board to consist
of persons not previously associated with Baldwin or
Banks. Nevertheless, the structure of the proposal,
and the extensive commitments made by the various
parties persuade us that the composition of CCB’s
board of directors will not provide Baldwin with a
means to exert control over Banks. Thus, while the
proposed composition of CCB’s board might, standing
alone, prompt us to vote to disapprove this appli­
cation, we believe that when viewed in the context of
the entire proposal, this factor is not sufficient to war­
rant denial.
July 30, 1980

National Bancshares Corporation of Texas,
San Antonio, Texas
Order Approving Acquisition o f Bank

National Bancshares Corporation of Texas, San An­
tonio, Texas, a bank holding company within the
meaning of the Bank Holding Company Act, has ap­
plied for the Board’s approval under section 3(a) (3) of
the Act (12 U.S.C. § 1842(a) (3)) to acquire 100 percent
(less directors’ qualifying shares) of the voting shares
of Harlandale Bank, San Antonio, Texas (“Bank”).
Notice of the application, affording opportunity for
interested persons to submit comments and views, has
been given in accordance with section 3(b) of the Act.
The time for filing comments and views has expired,
and the Board has considered the application and all
comments received in light of the factors set forth in
section 3(c) of the Act (12 U.S.C. § 1842(c)).
Applicant, the eleventh largest banking organization
in Texas, controls nine subsidiary banks with aggre­
gate deposits of approximately $786.0 million, repre­

Legal D evelopm ents

senting 1.1 percent of total commercial bank deposits
in the state.1 Bank ($41.0 million in deposits) ranks as
the 197th largest banking organization in Texas hold­
ing 0.06 percent of total deposits in commercial banks
in the state. Acquisition of Bank would not change Ap­
plicant’s ranking in the state nor have any serious ad­
verse effects on the concentration of banking re­
sources in Texas.
Bank is the fifteenth largest of 42 commercial bank­
ing organizations located in the relevant banking mar­
ket,2 controlling 1.1 percent of total market deposits.
Applicant is the second largest banking organization in
the market through its control of five subsidiary banks.
These banks currently hold deposits of $635.5 million,
representing 17.8 percent of total commercial bank de­
posits in the market. As the Board has noted in the
past, horizontal acquisitions by banking organizations
already represented in a market must be given careful
scrutiny in order to determine whether the adverse ef­
fects on competition would be so serious as to warrant
denial of the application. In this case, although acqui­
sition of Bank would result in the elimination of exist­
ing competition, the Board finds that consummation of
the proposal would not have significantly adverse
competitive effects. While consummation of the pro­
posed acquisition would increase Applicant’s share of
market deposits, Applicant’s rank within the market
would not change. In view of all the facts of record in
this matter, including the absolute and relative size of
Bank, the number of banking organizations within the
San Antonio banking market, and the fact that there
will remain numerous organizations that could serve
as entry vehicles for organizations not now represent­
ed in the market, the Board is of the opinion that the
acquisition’s adverse effects on competition are not so
serious as to warrant denial of the proposal, especially
in light of favorable convenience and needs consid­
erations.
The financial and managerial resources of Appli­
cant, its subsidiaries, and Bank are considered satis­
factory and the future prospects for each appear favor­
able. Thus, considerations relating to banking factors
are consistent with approval of the application. In con­
nection with the proposal to acquire Bank, Applicant
proposes to develop a bilingual advertising program
targeted to reach residents of the low- and moderateincome neighborhoods that constitute a large portion
of Bank’s service area. The Board is of the view that
this program may prove to be of significant benefit to

1. All banking data are as of June 30, 1979, and reflect bank hold­
ing company formations and acquisitions approved as of May 31, 1980.
2. The relevant banking market is approximated by the San Antonio
SMSA.



659

the community by informing area residents of the
range of banking services that Bank will make avail­
able to them. These services will include full retail
services and Applicant proposes to add a foreign ex­
change service to enable area residents to exchange
foreign currency at Bank’s current location. In addi­
tion to these services, Applicant has committed to ex­
pand Bank’s level of commercial lending, including the
making of Small Business Administration loans. Affili­
ation of Bank with Applicant will also provide Bank’s
customers with access to trust services and investment
assistance. In light of the above, considerations relat­
ing to the convenience and needs of the community to
be served lend such weight toward approval as to out­
weigh any adverse effects on competition that may re­
sult from consummation of the proposal. Accordingly,
it is the Board’s judgment that the subject proposal is
in the public interest and that the application should be
approved.
On the basis of the record, the application is ap­
proved for the reasons summarized above. The trans­
action shall not be made before the thirtieth calendar
day following the effective date of this Order, or later
than three months after the effective date of this Order
unless such period is extended for good cause by the
Board or by the Federal Reserve Bank of Dallas under
delegated authority.
By order of the Board of Governors, effective July 9,
1980.
Voting for this action: Chairman Volcker and Governors
Schultz, Wallich, Partee, Teeters, Rice, and Gramley.

(Signed) Cathy L. Petryshyn,
[seal]

Assistant Secretary of the Board .

The Union of Arkansas Corporation,
Little Rock, Arkansas
Order Approving Formation o f Bank Holding
Company

The Union of Arkansas Corporation, Little Rock, Ar­
kansas, 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 formation of a bank holding
company by acquiring 80 percent of the voting shares
of Union National Bank of Little Rock, Little Rock,
Arkansas (“Bank”).
Notice of the application, affording opportunity for
interested persons to submit comments and views, has
been given in accordance with section 2(b) of the Act.
The time for filing comments and views has expired,
and the Board has considered the application and all

660

Federal Reserve Bulletin □ August 1980

comments received in light of the factors set forth in
section 3(c) of the Act (12 U.S.C. § 1842(c)).
Applicant is a nonoperating company organized for
the purpose of becoming a bank holding company by
acquiring Bank ($240.1 million in deposits).1 Upon ac­
quisition of Bank, Applicant would control the third
largest of 260 commercial banking organizations in Ar­
kansas and approximately 3.1 percent of total deposits
in commercial banks in the state. Bank is the third
largest of 13 commercial banks located in the Little
Rock banking market2 and holds approximately 15
percent of the market’s total deposits in commercial
banks. Inasmuch as Applicant controls no other bank,
and no principal of Applicant is a principal of any other
bank located in the relevant banking market,3 consum­
mation of the proposed transaction would have no ad­
verse effects on either existing or potential com­
petition and would not increase the concentration of
resources in any relevant area. Therefore, competitive
considerations are consistent with approval.
The financial and managerial resources of Applicant
and Bank are satisfactory and the future prospects for
each appear favorable. In its consideration of this ap­
plication, the Board applied the less restrictive debt
service standards for one-bank holding company for­
mations announced by the Board earlier this year.4
While the Board stated at that time that these stan­
dards would be applicable to one-bank holding com­
panies whose subsidiary bank would have total assets
of approximately $150 million or less, the Board never­
theless intended to permit larger one-bank holding
companies to come under the policy if the Board found
that circumstances warranted such an exception. The
Board, after reviewing all the facts of record, finds that
such circumstances exist in this case.
Approval of this application would solidify local
ownership of Bank and perpetuate Bank’s current
management, both of which the Board finds in this in­
stance to be substantial public benefits. Applicant’s
principal and largest shareholder acquired control of
Bank in 1970, at a time when Bank’s future prospects
were uncertain, particularly in view of Bank’s opera­

1. All deposit data are as of June 30, 1978, and reflect bank
holding company formations and acquisitions approved as of June
30, 1980.
2. The relevant banking market is approximated by the Little
Rock-North Little Rock SMSA, which consists of Pulaski and Saline
Counties, Arkansas.
3. Three of the four principal shareholders of Applicant are
officers and directors of a one-bank holding company, Citizens
Bankshares Corporation, Jonesboro, Arkansas, which controls
Citizens Bank of Jonesboro, Arkansas ($92.8 million in deposits).
Bank and Citizens Bank of Jonesboro are located in separate banking
markets 90 miles apart.
4. 45 Federal Register 24,233 (1980).




tions under previous management and the fact it was
operating at a loss and losing large numbers of depos­
itors. Under the direction of Applicant’s principal,
Bank’s condition has become satisfactory and its fu­
ture prospects are favorable. Bank has improved and
expanded its services, and has added five branches
and tripled the amount of its deposits. The evidence of
record suggests that were Applicant’s principal to sell
Bank, local control of Bank probably would not be
preserved. Accordingly, the Board finds that under
these circumstances and in light of the general public
interest in preserving local ownership, it is appropriate
to apply the standards that would be applicable for one
bank holding company formations involving banks
with assets of less than $150 million. In applying such a
standard, it is the Board’s opinion that banking factors
are consistent with approval of the application.
While no immediate changes in Bank’s services are
anticipated as a result of approval of this application,
approval would probably serve to preserve local con­
trol of Bank, which the Board finds is generally in the
public interest. Thus, considerations relating to the
convenience and needs of the community to be served
lend weight for approval. Accordingly, it is the
Board’s judgment that the application should be ap­
proved.
On the basis of all the facts of record, the application
is approved for the reasons summarized above. The
transaction shall not be made before the thirtieth cal­
endar day following the effective date of this Order, or
later than three months after the effective date of this
Order unless such period is extended for good cause
by the Board or by the Federal Reserve Bank of St.
Louis pursuant to delegated authority.
By order of the Board of Governors, effective July 14,
1980.
Voting for this action: Chairman Volcker and Governors
Schultz, Wallich, Partee, Teeters, Rice, and Gramley.

(Signed) G riffith L. Garwood,
[seal]

Deputy Secretary of the Board.

Orders U nder S ection 4 o f Bank H olding
C om pany A c t

BankAmerica Corporation,
San Francisco, California
Order Concerning Permissibility o f
Underwriting Home Loan Life Insurance

BankAmerica Corporation, San Francisco, California,
a bank holding company within the meaning of the

Legal D evelopm ents

Bank Holding Company Act, has applied for the
Board’s approval under section 4(c)(8) of the Act (12
U.S.C. § 1843(c)(8)) and section 225.4(b)(2) of the
Board’s Regulation Y (12 C.F.R. § 225.4(b)(2)), to en­
gage through its wholly-owned subsidiary, BA Insur­
ance Company, San Francisco, California (“BA Insur­
ance”), in underwriting home loan life insurance
directly related to residential real estate loans made or
acquired by its subsidiary bank, Bank of America,
N.A. & S.T. (“Bank”). The Board has not heretofore
determined this activity to be closely related to bank­
ing.
Section 225.4(a) of Regulation Y, (12 C.F.R. §
225.4(a)) provides that a bank holding company may
file an application to engage in activities other than
those determined to be permissible for bank holding
companies if it is of the opinion that the proposed ac­
tivities in the circumstances surrounding a particular
case are closely related to banking or managing or con­
trolling banks. The regulation further provides that the
Board will publish in the Federal Register a notice of
opportunity for hearing regarding the proposed activi­
ty only if the Board believes there is a reasonable basis
for the bank holding company’s opinion.
Since the Board has not found the proposed activity
to be closely related to banking, Applicant as a propo­
nent of the activity is required to demonstrate in ac­
cordance with section 225.4(a) of the Board’s Regula­
tion Y that there is a reasonable basis for its opinion
that these activities are closely related to banking.
Applicant contends that underwriting home loan life
mortgage insurance directly related to extensions of
credit by Applicant’s subsidiary bank is closely related
to banking. It bases its contention on the Board’s de­
termination that underwriting credit life, accident and
health insurance is permissible for bank holding com­
panies. Applicant argues that there is no substantive
difference between the underwriting activities it pro­
poses to engage in and those presently permissible.
Applicant concedes, however, that there are differenc­
es between its proposed underwriting activities and
the underwriting activities authorized by the Board’s
Regulation Y .1
In the circumstances presented, the Board con­
cludes that Applicant has failed to demonstrate that
there is a reasonable basis for the opinion that the ac­
tivity is closely related to banking or managing or con­
trolling banks as to be a proper incident thereto within
the meaning of the Section 225.4(a)(10) of the Board’s

Regulation Y or within the meaning of section 4(c)(8)
of the Act.
In determining whether a proposed activity is close­
ly related to banking, the Board found recent court de­
cisions dealing with section 4(c)(8) of the Act particu­
larly useful. A federal circuit court has set forth
guidelines for determining whether an activity is close­
ly related to banking: (1) Banks generally have in fact
provided the proposed services; (2) Banks generally
provide services that are operationally or functionally
so similar to the proposed services as to equip them
particularly well to provide the proposed services; or
(3) Banks generally provide services that are so in­
tegrally related to the proposed services as to require
their provision in a specialized form.2 The Board has
analyzed proposed activities in terms of the court’s
guidelines to determine whether there is a reasonable
basis for finding them closely related to banking.
In this regard, the Board finds that there is no evi­
dence in the record that banks have engaged in the
proposed activity. The Board understands that while
banks traditionally have been engaged in underwriting
credit life, accident and health insurance, banks in fact
have not been engaged in the underwriting of home
loan life mortgage insurance. Indeed, home loan life
mortgage insurance generally is underwritten by life
insurance companies and may more appropriately be
characterized as a type of term life insurance. Further,
there is insufficient evidence to support the conclusion
that the proposed activity is operationally or function­
ally so similar to activities presently conducted by
bank holding companies so as to indicate that bank
holding companies are particularly well equipped to
provide the proposed activity. In this regard, the
Board notes Applicant seeks to engage in the proposed
service only as reinsurer and will continue to utilize
the expertise of an independent, direct underwriter.
Lastly, there is no evidence that banks generally pro­
vide services that are so integrally related to the under­
writing of home loan life insurance as to require bank
holding companies to provide this service in a special­
ized form. In fact, this service presently is being sup­
plied by the insurance industry and home loan life in­
surance is not integrated into the lending transaction,
as is group credit life insurance. Accordingly, the
Board finds that there is no reasonable basis for finding

2. N ational Courier A ssociation v. B oard o f Governors o f the
F ederal R eserve S y s te m , 516 F.2d 1229 at 1737 (D.C. Cir. 1975).
These guidelines are cited, for example, in A ssociation o f Bank
Travel Bureaus, Inc. v. B oard o f G overnors o f the F ederal R eserve
System, 568 F.2d 549 (7th Cir. Jan. 12, 1978), and A labam a
A ssociation o f Insurance A gents v. B oard o f Governors o f the F ederal
R eserve S ystem , 533 F.2d 224, 241 (5th Cir. 1976), rehearing denied,

1. Unlike traditional credit life insurance, home loan life is not
group insurance, age is a factor in the premium charged, it is of
higher value and longer duration and is not offered to the borrower
658 F.2d 729 (1977), cert, denied, 435 U.S. 904 (Feb. 27, 1978).
at the time of the loan transaction.



661

662

Federal Reserve Bulletin □ August 1980

the activity is closely related to banking or managing
and controlling banks.
Based upon the foregoing and the other facts of rec­
ord, the Board concludes that there is no reasonable
basis for believing the proposed activity is closely re­
lated to banking or managing or controlling banks and
therefore a Federal Register notice of opportunity for
hearing on this matter should not be published.
By order of the Board of Governors, effective July 7,
1980.
Voting for this action: Chairman Volcker and Governors
Partee, and Gramley. Voting against this action: Governor
Rice. Present and not voting: Governor Schultz. Absent and
not voting: Governors Wallich and Teeters.

(Signed) G riffith L. Garwood,
[seal]

Deputy Secretary o f the Board.

Chemical N ew York Corporation,
New York, N ew York
Order Approving Transfer o f Factoring Business
and Assets from Chemical Bank to Chemical
Business Credit Corporation, and Establishment
o f de novo office

Chemical New York Corporation, New York, New
York, a bank holding company within the meaning of
the Bank Holding Company Act (the “Act”), has ap­
plied for the Board’s approval under section 4(c)(8) of
the Act (12 U.S.C. § 1843(c)(8)) and section 225.4(b)(2)
of the Board’s Regulation Y (12 C.F.R. § 225.4(b)(2)),
to transfer the California factoring assets and business
from its subsidiary bank, Chemical Bank, New York,
New York, to an existing nonbank subsidiary, Chem­
ical Business Credit Corporation (“CBCC”), and to
establish a de novo office of CBCC in Los Angeles,
California. In connection with these transactions,
CBCC, which is principally engaged in originating
leases for Applicant’s lead bank, will engage in the ac­
tivity of factoring of trade accounts receivables on a
notification and non-notification basis, and, as an ac­
commodation to its factoring clients, will engage from
time to time in other secured commercial lending ac­
tivities. Such activities have been determined by the
Board to be closely related to banking under the
Board’s Regulation Y (12 C.F.R. § 225.4(a)(1)).
Notice of the application, affording opportunity for
interested persons to submit comments and views on
the public interest factors has been duly published in
the Federal Register. 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 (12 U.S.C. § 1843(c)(8)).
Applicant, with consolidated assets of $39.4 billion,1
is the fifth largest banking organization in the United
States and the fourth largest in New York State. Appli­
cant’s domestic bank subsidiary, Chemical Bank, with
$29.0 billion in deposits, operates out of 266 offices
throughout New York State and 15 foreign branches,
and accounts for approximately 99 percent of Appli­
cant’s consolidated assets. Applicant also engages,
through six wholly-owned subsidiaries, in a variety of
nonbanking activities including mortgage banking,
consumer finance, and insurance. CBCC (assets of ap­
proximately $11.3 million), is one of Applicant’s non­
bank subsidiaries and, as previously noted, has been
engaged primarily in originating leases for Chemical
Bank. Chemical Bank entered the factoring business in
March 1968 through its acquisition of certain assets
and assumption of certain liabilities of L. F. Dommerich & Company, Inc. (“Dommerich”). At the time,
Dommerich, with total assets of $87.0 million, was the
eleventh largest factoring company in the United
States. Dommerich also engaged in a small amount of
commercial financing. Dommerich’s activities are cur­
rently conducted through Chemical Bank’s Factoring
and Finance Division (“F and F Division”), and based
upon a 1979 factoring volume of $1.6 billion, is the
fourth largest factor in the United States.2 Applicant
estimates that approximately 18.7 percent of the F and
F Division’s factoring volume was generated by its
Los Angeles office, the remainder being derived from
its headquarters in New York. The proposed transac­
tion involves the transfer of only the California factor­
ing business from Chemical Bank to CBCC (net asset
value of assets to be acquired is $31.3 million (as of
December 1, 1979)).
The Board believes that when a bank holding com­
pany indirectly acquires a nonbanking company
through a subsidiary bank and subsequently applies to
the Board to transfer ownership of such nonbanking
company or activity to a nonbank subsidiary and oper­
ate it pursuant to the authority of section 4(c)(8), the
Board must consider the transaction as if the non­
banking company was being acquired initially from an
independent third party. Accordingly, in such circum­
stances the Board must find that neither the original
acquisition of the nonbanking company nor the
Board’s approval of the section 4(c)(8) application
would result in an undue concentration of resources,
decreased or unfair competition, conflicts of interest,
or unsound banking practices.

1. All financial data are as of December 31, 1979, unless otherwise
indicated.
2. Daily News Record, February 4, 1980.

Legal D evelopm ents

This proposal is essentially a reorganization de­
signed to overcome certain competitive disadvantages
and operational inefficiencies resulting from state re­
strictions placed upon California representative offices
of out-of-state banks. Therefore, no immediate com­
petitive effects will result from the proposed transac­
tion. Since Applicant neither directly nor indirectly en­
gaged in factoring at the time of its indirect acquisition
of Dommerich, no existing competition was eliminated
by the acquisition. Although Applicant or Chemical
Bank could have entered the factoring industry de
novo, the high fixed cost of operations and the highly
specialized nature of the industry made such entry un­
likely. While Applicant could have been viewed as a
potential entrant through a smaller factoring firm, the
effect on potential competition does not appear to have
been serious, particularly in view of the existence of
several other potential entrants. Dommerich was also
engaged in limited secured commercial lending activi­
ties (outstanding loans of $4.7 million as of December
31, 1967) at the time of its acquisition by Chemical
Bank. Although Applicant, through Chemical Bank,
was also engaged in that activity at the time, it does
not appear that the acquisition eliminated significant
existing competition in view of the amount of Dom­
merich’s commercial lending activities. On the basis of
the facts of record, the Board finds that neither the
1968 acquisition, nor the subject reorganization, have
had or will have significant adverse effects upon either
existing or potential competition in the factoring or
commercial finance business. Accordingly, the Board
finds that competitive considerations relating to the
proposed transaction are consistent with approval.
There is no evidence in the record to indicate that
the proposed reorganization and establishment of a de
novo office of CBCC would lead to an undue concen­
tration of resources, conflicts of interest, or unsound
banking practices. Consummation of the proposal is
expected to provide some public benefits such as in­
creased efficiency by eliminating the need for approval
of California-originated transactions in New York.
The public would also benefit from the proposed ex­
pansion of the west coast factoring operations by the
existence of an additional source of such services.
Based upon the foregoing and other considerations
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 application is hereby approved. This
determination is subject to the conditions set forth in
section 225.4(c) of Regulation Y and to the Board’s
authority to require such modification or termination
of the activities of a holding company or any of its sub­
sidiaries as the Board finds necessary to assure com­
pliance with the provisions and purposes of the Act



663

and the Board’s regulations and orders issued there­
under, or to prevent evasion thereof.
The transaction shall be made not later than three
months after the effective date of this Order, unless
such period is extended for good cause by the Board or
by the Federal Reserve Bank of New York.
By order of the Board of Governors, effective July 29,
1980.
Voting for this action: Vice Chairman Schultz and Gover­
nors Wallich, Teeters, Rice, and Gramley. Absent and not
voting: Chairman Volcker and Governor Partee.

(Signed) G riffith L. Garwood,
[seal]

Deputy Secretary o f the Board.

First National Corporation of El Reno, In c.,
El Reno, Oklahoma
Order Approving Acquisition o f First Air Courier, Inc.

First National Corporation of El Reno, Inc., El Reno,
Oklahoma, a bank holding company within the mean­
ing of the Bank Holding Company Act, has applied for
the Board’s approval under section 4(c)(8) of the Act
and section 225.4(b)(2) of the Board’s Regulation Y to
engage de novo in air courier services through its sub­
sidiary, First Air Courier, Inc. (“Company”), El
Reno, Oklahoma. The Board has determined these ac­
tivities to be closely related to banking 12 C.F.R.
§ 225.4(a)(ll)
Notice of receipt of this application, affording op­
portunity for interested persons to submit comments
and views, has been given in accordance with section 4
of the Act (45 Federal Register 17,205 (1980)), and the
time for filing comments and views has expired. The
Board has considered the application and all com­
ments received in light of the considerations specified
in section 4(c)(8) of the Act.
Applicant, through its control of The First National
Bank and Trust Company (“ Bank”), El Reno, Okla­
homa (deposits of $40.2 million), is the 91st largest
banking organization in the state controlling 0.24 per­
cent of the total deposits in commercial banks in Okla­
homa. 1Through subsidiaries Applicant also engages in
mortgage banking, leasing, agricultural finance, and
credit-related insurance agency activities.
Applicant proposes to engage through Company in
transporting time-critical materials of limited intrinsic
value of the types utilized by banks and bank-related

1. Banking data are as of December 31, 1979.

664

Federal Reserve Bulletin □ August 1980

firms in performing their business activities.2 Com­
pany will provide these services for Applicant, Bank,
and other banks and bank-related firms. Company will
perform these activities from an office in El Reno,
Oklahoma, and will serve southern Kansas, south­
western Missouri, Oklahoma, and northern Texas.
Company proposes to offer a wider range of services
than those currently available to banks and bank-re­
lated firms located in these areas. A number of the
routes proposed by Company are not now served by
air courier or comparable services, and com­
mencement of Company’s activities will facilitate the
timely transportation of documents by financial insti­
tutions in Company’s service area. Furthermore, there
is no evidence in the record to indicate that this pro­
posal may lead to any undue concentration of re­
sources, decreased or unfair competition, conflicts of
interest, unsound banking practices, or other adverse
effects. In this connection, in accordance with the
Board’s principles governing bank holding company
performance of this activity, Company will operate as
an independent, profit-oriented subsidiary, and it will
explicitly price its services to all customers and re­
quire direct payment for all its services. In addition,
Company will not deny service to any bank or eligible
data processing firm, provided the service requested is
within Company’s practical capacity, and it will ad­
here to the other requirements of 12 C.F.R. § 225.129.
Based upon the foregoing and other considerations
reflected in the record, the Board has determined that
the balance of the public interest factors it is required
to consider under section 4(c)(8) is favorable. Accord­
ingly, the application is approved. This determination
is subject to the conditions set forth in section 225.4(c)
of Regulation Y and 12 C.F.R. § 225.129, and to the
Board’s authority to require such modification or ter­
mination of the activities of a holding company or any
of its subsidiaries as the Board finds necessary to as­
sure compliance with the provisions and purposes of
the Act and the Board’s regulations and orders issued
thereunder, or to prevent evasion thereof.
This activity shall be commenced not later than
three months after the effective date of this Order, un­
less that period is extended for good cause by the
Board or by the Federal Reserve Bank of Kansas City
pursuant to authority hereby delegated.
By order of the Board of Governors, effective July 28,
1980.

2. These materials will consist primarily of checks which have
been restrictively endorsed and other non-negotiable documents
relating to transfers of funds, as well as accounting data.




Voting for this action: Chairman Volcker and Governors
Schultz, Teeters, Rice, and Gramley. Voting against this ac­
tion: Governor Wallich. Absent and not voting: Governor
Partee.

(Signed) G riffith L. Garwood,
[seal]

Deputy Secretary of the Board.

Dissenting Statement o f Governor Wallich

I would deny this application because it involves the
use of real resources to economize paper money.
I do not dispute the majority’s conclusion that Ap­
plicant will provide a wider range of services than is
currently available to banks and bank-related firms
within the geographic area it intends to serve and that
as a result of Applicant’s services the timely transpor­
tation of financially-related documents will be facili­
tated.
However, I question whether there are public bene­
fits to the economy as a whole from the greater veloc­
ity of circulation of money.1 I believe that to employ
real resources in order to accelerate the velocity of
money, as proposed here, represents a misallocation
of resources. The time value of money increases with
inflation, resulting in rising interest rates, and the pri­
vate sector is consequently under pressure to use real
resources to economize paper money. Applicant’s
proposal would economize paper money by increasing
its velocity of circulation. However, if the velocity of
circulation increases, the Board must slow the growth
of the money supply in order to avoid inflationary con­
sequences. I believe it is more appropriate for the
Board to achieve a desired level of aggregate demand
and interest rates by providing a larger money supply
circulating less rapidly because paper money is gener­
ated by the banking system at virtually no cost where­
as air courier activities require the consumption of real
resources, such as fuel and airplanes.
It is true that without the proposed service, payees
of large checks might have recourse to even less eco­
nomic techniques for expediting collection. In my
view, however, the Board should not approve an un­
desirable proposal simply because even less desirable
alternatives may be legally available to the private sec­
tor. Under certain circumstances, the Federal Reserve
System itself may decide to expedite collection mea-

1. I will not here question benefits involved in the speedier dis­
tribution of information as well as the attendant reduction of risk due
to the speedier transportation of payment instruments. The eco­
nomic benefit conferred on payees, however, who as the majority
claims would obtain somewhat quicker use of their money, is offset
by the impact on payors, who lose the benefit of their funds earlier.

Legal D evelopm ents

sures, despite the real resources cost, if the alternative
were a significantly larger expenditure of real re­
sources by the private sector. I do not believe such
circumstances exist in the present case.
For the foregoing reasons, I believe this application
should be denied.
July 28, 1980

Old Colony Co-operative Bank,
Providence, Rhode Island
Order Approving Acquisition o f Rhode Island
Building-Loan Association

Old Colony Co-operative Bank, Providence, Rhode Is­
land, a bank holding company within the meaning of
the Bank Holding Company Act (“Act”), has applied
for the Board’s approval, under section 4(c)(8) of the
Act (12 U.S.C. § 1843(c)(8)) and section 225.4(b)(2) of
the Board’s Regulation Y (12 C.F.R. § 225.4(b)(2)), to
acquire all the assets and assume all the liabilities of
Mayflower Savings and Loan Association (“May­
flower”), Providence, Rhode Island, by consolidation,
and to operate Mayflower’s two offices as branches of
Applicant. Mayflower is a state-chartered mutual
building-loan association that engages primarily in ac­
cepting share deposits and making real estate mort­
gage loans. Although the Board has not added the op­
eration of a Rhode Island building-loan association to
the list of activities specified in section 225.4(a) of Reg­
ulation Y as generally permissible for bank holding
companies, in 1972 the Board determined that the op­
eration of such an institution was closely related to
Rhode Island banking and specifically approved Appli­
cant’s application to continue to engage in its activities
as a thrift institution.1
Notice of the application, affording an opportunity
for interested persons to submit comments and views,
has been duly published. 45 Federal Register 42,036
(1980). The time for filing comments and views has ex­
pired, and the Board has considered the application

1. Old Colony C o-operative B ank, 58 F e d e r a l Reserve B u lle t in
417 (1972). There has been little change in the facts material to the
Board’s determination since it was made, and the Board confirms that
operation of a state-chartered building-loan association in closely
related to banking in Rhode Island. See also N ew port Savings and
Loan A sso cia tio n , 58 F e d e r a l R eserve B u lle t in 313 (1972). These
two decisions are viewed as exceptions to the Board’s policy against
bank holding company control of savings and loan associations. See
D. H . B aldw in, 63 F e d e r a l R eserve B u lle t in 280, 284 n. 10.




665

and all comments received in light of the factors set
forth in section 4(c)(8) of the Act.
Applicant (aggregate deposits of $537.2 million as of
December 31, 1979), a state-chartered building-loan
association, is a bank holding company by virtue of its
control of Newport National Bank (“Newport Nation­
al”), Newport, Rhode Island (deposits of $52.1 mil­
lion).2 Applicant is the second largest thrift institution
and fifth largest financial organization in the state of
Rhode Island. Acquisition of Mayflower (deposits of
$20.9 million) would not change Applicant’s state
ranks and would not significantly increase the concen­
tration of resources in the state.
Applicant is headquartered in the Providence bank­
ing market3 and with Newport National jointly oper­
ates 16 branches in that market, controlling approxi­
mately 7.8 percent of the market’s time and savings
deposits in depository institutions, and ranking as the
second largest thrift institution in the market. May­
flower’s offices also operate in the Providence banking
market, and Mayflower controls 0.4 percent of the
market’s time and savings deposits and ranks as the
tenth largest thrift institution in the market. In view of
the small increase in Applicant’s market share result­
ing from this transaction and the weakness of May­
flower as an effective competitor in the market, it ap­
pears that consummation of the proposed transaction
would not have significant adverse effects on existing
competition.4 Moreover, under the circumstances
Mayflower clearly is not a likely entrant into any other
market Applicant serves.
Consummation of the proposal will facilitate the
continued availability of services to Mayflower’s cus­
tomers at its present locations and will protect depos­
its that exceed federal insurance limits. The Board

2. All financial data are as of June 30, 1979, unless otherwise
indicated.
3. The Providence banking market includes the towns of Millville,
Blackstone, Plainville, North Attleboro, Attleboro, Seekonk, Rehoboth, Norton, Burrillville, North Smithfield, Woonsocket, Cum­
berland, Glocester, Smithfield, Lincoln, Central Falls, Foster,
Scituate, Johnston, Cranston, Providence, North Providence, East
Providence, Pawtucket, Coventry, Warwick, West Warwick, Barring­
ton, Warren, Bristol, West Greenwich, East Greenwich, Exiter,
North Kingstown, South Kingstown, Narraganset, and Jamestown.
4. The Federal Home Loan Bank Board (“FHLBB”) and the
State Bank Commissioner, Mayflower’s primary supervisors, have
helped arrange its proposed consolidation with Applicant in order to
resolve Mayflower’s serious financial difficulties. Both supervisors
have approved the transaction and have recommended that the
Board approve this application. The FHLBB has also advised the
Board that it considers Applicant to be the only institution in Rhode
Island capable of acquiring Mayflower under the existing exigent
circumstances with the assistance of the Federal Savings and Loan
Insurance Corporation.

666

Federal Reserve Bulletin □ August 1980

views these public benefits as of considerable signifi­
cance. Applicant will also make new services available
to Mayflower’s customers. Furthermore, except as
noted below, there is no evidence in the record that
consummation of this transaction would result in any
undue concentration of resources, unfair competition,
conflicts of interest, unsound banking practices, or
other adverse effects on the public interest.
There is, however, one matter related to the appli­
cation that requires comment: the pairing of Appli­
cant’s thrift and commercial bank operations. New­
port National operates an office at each of Applicant’s
21 offices, and the two institutions share teller stations
at each location. With the approval of the Comptroller
of the Currency, Applicant intends to establish new
branches of Newport National at Mayflower’s two lo­
cations and to follow the same pattern of operation
there.
The Board has recently expressed its view that the
tandem operation of affiliated thrift institutions and
commercial banks in New Hampshire may entail seri­
ous adverse effect which only compelling public bene­
fits will justify under section 4(c)(8) of the Act.5 The
Board recognizes that a different view of tandem oper­
ations in Rhode Island is possible because of historical
and legal peculiarities affecting the operations and
competitive position of the state’s depository institu­
tions. Nearly all thrift institutions in Rhode Island are
associated with commercial banks in varying degrees,
and over half of them conduct common lobby opera­
tions. Consequently it is clear that the expansion of
tandem operations in the state will be less unsettling
structurally than it would be elsewhere.6 For purposes
of this application it is unnecessary to decide whether
considerations of competitive equity in Rhode Island
will invariably overcome objections to tendem opera­
tions there, because the specific proposal before the
Board entails compelling public benefits, unachievable
by other means, sufficient to outweigh those objec­
tions and any slightly adverse competitive effects asso­
ciated with the proposal.
5. First Financial Group of New Hampshire, Inc., 66 F e d e r a l
594 (1980).
6. The activities and powers of depository institutions in the state
are uniquely integrated, and have been for a long time. Each of
Rhode Island’s seven mutual savings banks, having authority under
state law to own a commercial bank, had acquired a commercial
bank by 1967. Congress enacted section 2(a)(5)(F) of the Act in order
to exempt these combined savings-commercial bank institutions from
bank holding company status. In order partially to redress the com­
petitive imbalance resulting fromthe superior competitive position of
the seven savings-commercial bank institutions, the Rhode Island
legislature, in May 1970, authorized state-chartered building—loan
associations to establish or acquire stock in a bank or trust company.
In 1971, the state authorized state-chartered credit unions with deposit
shares over $1 million to accept demand deposits.
R eserve B u lle t in




Based upon the foregoing and other considerations
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 application is approved. This deter­
mination is subject to the conditions set forth in sec­
tion 225.4(c) of Regulation Y and to the Board’s au­
thority to require such modification or termination of
the activities of a holding company or any of its sub­
sidiaries as the Board finds necessary to assure com­
pliance with the provisions and purposes of the Act
and the Board’s regulations and orders issued there­
under, or to prevent evasion thereof. The transaction
shall be made not later than three months after the ef­
fective date of this Order, unless that period is extend­
ed for good cause by the Board or by the Federal Re­
serve Bank of Boston acting pursuant to authority
hereby delegated.
By order of the Board of Governors, effective July 11,
1980.
Voting for this action: Chairman Volcker and Governors
Schultz, Wallich, Partee, Teeters, Rice, and Gramley.

(Signed) Griffith L. Garwood,
[seal]

D eputy Secretary o f the Board.

Orbanco, Inc.,
Portland, Oregon
Order Approving Retention o f
American Data Services, Inc.

Orbanco, Inc., Portland, Oregon, a bank holding com­
pany within the meaning of the Bank Holding Compa­
ny Act (“ Act”) has applied for the Board’s approval
under section 4(c)(8) of the Act (12 U.S.C.
§ 1843(c)(8)) and section 225.4(b)(2) of the Board’s
Regulation Y (12 C.F.R. § 225.4(b)(2)) to retain all of
the voting shares of American Data Services, Inc., Port­
land, Oregon (“ ADS”). ADS engages in the activities
of providing data processing services for the internal
operations of Applicant, its subsidiaries, and others,
and the leasing of computer equipment. Such activities
have been determined by the Board to be closely re­
lated to banking (12 C.F.R. §§ 225.4(a)(6), (8)).
Notice of the application, affording opportunity for
interested persons to submit comments and views on
the public interest factors, has been duly published (44
Federal Register 68,032). The time for filing comments
and views has expired, and the Board has considered
the application and all comments received in light of

Legal D evelopm ents

667

the public interest factors set forth in section 4(c)(8) of
the Act (12 U.S.C. § 1843(c)(8)).
Applicant, the third largest bank holding company in
Oregon, controls The Oregon Bank, Portland, Oregon,
which has deposits representing 5.3 percent of total
deposits in commercial banks in the state.1 In addition
to engaging in data processing activities, Applicant al­
so engages through nonbanking subsidiaries in finance
company and mortgage banking activities. Applicant
became a bank holding company as a result of the 1970
Amendments to the Act. Applicant acquired ADS in
1969 and under section 4 of the Act, has until Decem­
ber 31, 1980, to divest or, in the alternative, to secure
the Board’s approval to retain its interest in ADS.
The Board regards the standards of section 4(c)(8)
for the retention of shares in a nonbanking company to
be the same as the standards for a proposed section
4(c)(8) acquisition. When it acquired ADS, Applicant
was not engaged in data processing activities and this
transaction represented Applicant’s initial entry into
this activity. Therefore, no existing competition was
eliminated by Applicant’s acquisition of ADS. More­
over, in view of Company’s size and the large number
of data processing firms located in the Portland area in
1969, it does not appear that any significant potential
competition was eliminated. ADS now accounts for
less than one percent of total data processing sales in
the Portland area, and on the basis of this and other
facts of record, the Board concludes that Applicant’s
acquisition of ADS had no significant effects on com­
petition and that Applicant’s retention of Company al­
so would have no significant competitive effects.
Applicant also seeks the Board’s approval under
section 4(c)(8) of the Act for permission to engage
through ADS in the activity of providing contract key
entry services.2 Applicant contends that contract key
entry is closely related to banking within the meaning
of section 4(c)(8) of the Act and section 225.4(a)(8)(ii)
of the Board’s Regulation Y. Section 225.4(a)(8)(ii)
states that a bank holding company may engage in
“ storing and processing . . . banking, financial or re­
lated economic data, such as performing payroll, ac­

counts receivable or payable, or billing services.” Ap­
plicant contends that the phrase, “ storing and
processing . . . data” , includes key entry. In the alter­
native, Applicant contends that its contract key entry
services should be considered incidental to ADS’s oth­
er data processing activities since they are functionally
identical to the key entry service which is a necessary
step in the processing of data by ADS computers
(“regular key entry”), and consequently, engaging in
contract key entry would give ADS greater flexibility
in expanding or contracting its regular key entry ca­
pacity. Finally, Applicant asserts that even if contract
key entry is neither data processing nor incidental
thereto, it is otherwise closely related to banking.
The Board has considered the record in this matter
as well as the statute, its legislative history and rele­
vant court decisions, and is unable to conclude that
contract key entry is either data processing or reason­
ably necessary to ADS’s permissible data processing
activities. The Board views the phrase “processing
. . . data” within the meaning of section 225.4(a)(8) of
Regulation Y as being limited to those instances in
which the data are substantively changed. In contrast,
key entry involves the mere alteration of data from one
form to another. This position is consistent with the
Board’s prior determination that computer output to
microfilm (“COM”) is not a permissible incident to
data processing unless the data involved have been
previously processed by the bank holding company in­
volved.3 Applicant has produced no facts to demon­
strate that engaging in contract key entry is necessary
to the operation of its data processing service, and the
Board is not otherwise able to conclude that contract
key entry is a necessary incident to the permissible
data processing activities performed by ADS.4 The
Board also believes that contract key entry is not oth­
erwise closely related to banking because it is a basi­
cally clerical function that requires no expertise pecul­
iar to banking. Applicant has not produced any
evidence that banks commonly engage in this activity
or that banks require the provision of such services in
a specialized form.5 Accordingly, the Board concludes

1. Banking data are as of December 31, 1979, and reflect acquisi­
tions as of February 29, 1980.
2. Applicant describes contract key entry as:
a process whereby ADS obtains information from customers in the
form of source documents which are not machine readable, and then
converts the information into a form which is machine readable. To
accomplish this, ADS employs key entry operators who look at the
source documents and key the information they contain into a machine
which records the information on either a mechanical medium(punch
cards) or one of several magnetic media (cards, tapes, discs) in a form
which is machine readable. The machine readable data is then re­
turned to the customer who further processes the data using com­
puters which are not owned or operated by ADS.

3. 12 C.F.R. § 225.123(e)(4). Thus, only “on-line” is permissible.
The Board considers the contract key entry activities proposed by
Applicant to be analogous to “off-line” inasmuch as both of these
activities involve the alteration of data by various means, without
changing the substance of the data, and both are performed indepen­
dently of any data processing activity.
4. N ational Courier Association v. B oard o f Governors o f the F ed­
eral R eserve S y s te m , 516 F.2d 1229, 1240 (D.C. Cir. 1975).
5. An applicant bears the burden of demonstrating that an activity
is closely related to banking. N C N B Corporation v. Board o f G ov­
ernors, 599 F.2d 609 (4th Cir. 1979).




668

Federal Reserve Bulletin □ August 1980

that contract key entry is not closely related to bank­
ing.6
Retention of ADS by Applicant will result in public
benefits inasmuch as ADS will continue to serve as a
source of data processing services to its customers.
These benefits to the public are consistent with ap­
proval of the application and such approval can rea­
sonably be expected to continue to produce benefits to
the public that would outweigh possible adverse ef­
fects. There is no evidence in the record indicating that
retention of ADS would result in any undue concentra­
tion of resources, conflicts of interests, unsound bank­
ing practices, or other adverse effects.
Based upon the foregoing and other considerations
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) of the Act is
favorable. Accordingly, the application is hereby ap­
proved on the condition that Applicant divest its con­
tract key entry services by December 31, 1980. This
determination also is subject to the conditions set forth
in section 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 sub­
sidiaries as the Board finds necessary to assure com­
pliance with the provisions and purposes of the Act
and the Board’s regulations and orders issued there­
under, or to prevent evasion thereof.
By order of the Board of Governors, effective
July 8, 1980.
Voting for this action: Chairman Volcker and Governors
Schultz, Partee, Rice, and Gramley. Absent and not voting:
Governors Wallich and Teeters.

(Signed) Griffith L. Garwood,
[seal]

D eputy Secretary o f the Board.

Virginia National Bankshares, Inc.,
Norfolk, Virginia
Order Approving Insurance Agency Activities

Virginia National Bankshares, Inc. (“Applicant”),
Norfolk, Virginia, a bank holding company within the
meaning of the Bank Holding Company Act (“Act”),
has applied pursuant to section 4(c)(8) of the Act
(12 U.S.C. § 1843(c)(8)) and section 225.4(b)(1) of the
Board’s Regulation Y (12 C.F.R. § 225.4(b)(1)), for

permission to engage de novo, through its subsidiary,
VNB Insurance Agency, Inc., Norfolk, Virginia
(“Agency”), in the sale of property and casualty insur­
ance directly related to extensions of credit or mort­
gage loan servicing by Applicant’s lending subsidiaries
in Virginia. Such nonbank activities have been deter­
mined by the Board to be closely related to banking
and therefore permissible for bank holding companies
(12 C.F.R. § 225.4(a)(9)).
Notice of the application, affording opportunity for
interested persons to submit comments and views on
the public interest factors has been duly published.1
The time for filing comments and views has expired,
and the Board has considered the application and all
comments received, including those received from the
Independent Insurance Agents of America, Inc., and
numerous other insurance agents and trade organiza­
tions (“Protestants”),2 as well as those received from
the office of the Virginia Insurance Commissioner, in
the light of the considerations specified in section
4(c)(8) of the Act.
Applicant controls the second largest banking or­
ganization in Virginia, with aggregate domestic depos­
its of approximately $2 billion.3 Applicant proposes to
sell property and casualty insurance at the offices of
the following credit granting subsidiaries: Virginia Na­
tional Bank, VNB Mortgage Corporation, VNB
Equity Corporation, and Atlantic Credit Corporation
of Virginia. It is anticipated that the area to be served
for such insurance sales will be the area surrounding
each such office. After credit has been granted and a
borrower at one of these offices indicates that he wish­
es to receive a premium quotation from Agency, Ap­
plicant’s lending officers will put the borrower in con­
tact with one of two licensed insurance agents
employed by Applicant.
Section 4(c)(8) of the Act provides that the Board
may approve a bank holding company’s application to
engage in a nonbanking activity only after the Board
has determined that the proposed activity is so closely
related to banking as to be a proper incident thereto.
The Board has determined by regulation that the sale
as agent of credit-related insurance and the sale of in­
surance related to the provision of other financial serv­
ices, such as mortgage servicing, are permissible non­

1. This application was initially processed under the procedures set
forth in section 225.4(b)(1) of the Board’s Regulation Y (12 C.F.R.
§ 225.4(b)(1)) as a proposal to engage de novo in activities determined
by the Board to be closely related to banking. Because of the nature of
the protests filed and request for hearing, it was determined that the
application should be processed at the Board.
2. In total, the Board received approximately 150 letters of protest
6. This determination does not preclude ADS fromengaging in key regarding this application. In view of the large number of protests re­
entry type services in connection with its other, permissible data
ceived, the Board will not separately identify each Protestant.
processing activities.
3. Banking data are as of June 30, 1979.



Legal D evelopm ents

bank activites. This determination was affirmed in
Alabama Association o f Insurance Agents v. Board o f
Governors.4

To approve an application under section 4(c)(8) of
the Act the Board must also determine that the per­
formance of the proposed activities by a nonbank sub­
sidiary of a bank holding company can reasonably be
expected to produce benefits to the public such as
greater convenience, increased competition, or gains
in efficiency, that outweigh possible adverse effects,
such as undue concentration of resources, decreased
or unfair competition, conflicts of interests, or un­
sound banking practices. Section 4(c)(8) of the Act al­
so provides that the Board may approve a bank hold­
ing company’s application to engage in, or to acquire,
voting shares of a company engaged in nonbanking ac­
tivities only after notice of the proposal and an oppor­
tunity for a hearing on the matter.
Both Applicant and Protestants have made numer­
ous written submissions to support their respective po­
sitions regarding this application. In reaching the con­
clusions set forth below, the Board has considered the
application, Applicant’s supplementary comments and
submissions, and all of the comments and submissions
made by Protestants.
Protestants’ assertions may be summarized as fol­
lows: Applicant’s proposal is inconsistent with provi­
sions of Virginia law that limit the insurance agency
activities of bank holding companies and prohibit the
solicitation of insurance by unlicensed persons. The
fact that the insurance sales in question will be primar­
ily related to extensions of credit by Applicant will al­
low Applicant to compete unfairly for insurance busi­
ness since it will result in “voluntary tying” of
insurance sales to such extensions of credit. More­
over, the method by which Agency proposes to con­
duct its operations will be inconvenient for its custom­
ers since most of the offices of Applicant’s lending
subsidiaries will not have a licensed agent physically
present to serve the customer. Finally, Protestants
contend that Applicant’s proposal is not sufficiently
specific to allow the Board to act on it, and this lack of
specificity, as well as the issues raised above, should
be resolved through a formal hearing.
Applicant, in response to Protestants’ assertions,
contends that each of the conclusions reached by Pro­
testants is incorrect. Additionally, Applicant states
that its proposal will in fact result in increased com­
petition and greater convenience for its customers.
The Board will address each of these issues in turn.

4. 533 F.2d 224 (5th Cir. 1976). modified on rehearing, 558 F.2d 729
(1977), cert, denied, 435 U.S. 904 (1978).



669

State Law

Virginia law prohibits the licensing of bank holding
companies or their employees as agents for the sale of
property and casualty insurance.5 However, those
bank holding companies and their employees that were
licensed to sell insurance in Virginia on January 1,
1977, are exempted from this prohibition.6 In inter­
preting a particular state law, the Board considers the
statute itself, any judicial interpretations of that law,
and in the absence of any such interpretations, opin­
ions of the state’s Attorney General or relevant admin­
istrative agency. The courts of the State of Virginia
have not interpreted these provisions. However, the
Board’s staff solicited the views of the Office of the
Virginia Insurance Commissioner with regard to the
applicability of this exemption and the possibility that
Applicant’s proposal may result in its offices being en­
gaged in the unauthorized solicitation of insurance.7
The Assistant Insurance Commissioner has advised
the Board that Agency and its employees were law­
fully licensed on January 1, 1977, and that con­
sequently, Applicant’s proposal is not prohibited by
Virginia law. The Board believes that this opinion is
reasonable and consistent with the language of the Vir­
ginia statute.
With regard to the issue of solicitation, Applicant
states that its lending officers, after advising a custom­
er that the credit application had been granted, would
inform the customer that Agency offers insurance cov­
erage. With the borrower’s consent, the lending officer
would then provide Agency with sufficient information
to offer insurance to the customer. The Assistant In­
surance Commissioner has concluded that this method
of operation would not constitute unlawful solicitation
of insurance under Virginia law. The Board also be­
lieves this view is reasonable and consistent with the
relevant statutory language in view of the limited role
of the lending officer.
Unfair Competition

Section 106 of the Bank Holding Company Act prohib­
its a bank from requiring its customers to purchase in­
surance from it in order to receive credit. Although
section 106 applies directly only to banks, the Board
has applied the prohibition of that section to encompass
bank holding companies through section 225.4(c) of its
Regulation Y. Thus, any action taken by Applicant to

5. Virginia Code Section 38.1-327.10(A).
6. Virginia Code Section 38.1-327.10(E).
7. The relevant provisions of Virginia law regarding unauthorized
solicitation of insurance are Virginia Code Sections 38.1-327.1,
327.33.

670

Federal Reserve Bulletin □ August 1980

require the purchase of insurance from it is unlawful.
There is no evidence that Applicant has engaged in any
coercive tying in the past with regard to any of its ac­
tivities.
Protestants assert, however, that credit customers
may nevertheless believe that the likelihood that credit
will be granted may be enhanced by agreeing to pur­
chase insurance from Applicant, and that an effective
or voluntary tie will result. For the reasons explained
below, the Board finds this contention to be without
merit.
The possibility of voluntary tying is significantly re­
duced by the number of credit alternatives in the rele­
vant markets. The Board notes that there are from 4 to
20 commercial banks in each of the 16 markets in
which Applicant competes, as well as a number of oth­
er financial intermediaries, such as savings and loan
associations and credit unions. Moreover, in only one
of the six major Virginia markets (those that have been
designated Standard Metropolitan Statistical Areas)
does Applicant hold more than 10 percent of a mar­
ket’s total commercial bank deposits. Each of the
State’s five largest banking organizations is represent­
ed in these six markets, and Applicant does not appear
to be the dominant organization in any of these mar­
kets.
At the time the Board added the activity of selling
credit related insurance to the list of permissible activi­
ties for bank holding companies, it determined that ab­
sent unusual circumstances associated with a particu­
lar application, there are, as a general matter, no
significant adverse effects, such as voluntary tying, in­
herent in the performance of the activity by a bank
holding company on a de novo basis. The Board con­
tinues to believe that this is the case with regard to
insurance agency activities, particularly in view of the
court’s decision in Alabama Association of Insurance
Agents, supra. Protestants’ general objection to this
application on the basis that voluntary tying might oc­
cur is in substance an attack on the relevant regula­
tion, a regulation that was upheld in Alabama Associa­

gards these commitments as significant, and has relied
on them in acting on this application.9
Protestants also contend that Applicant’s size and
access to “inside” information about its customers
will provide Applicant with an unfair competitive ad­
vantage. The Board does not believe that the size of an
organization, standing alone, may properly be re­
garded as conveying an unfair competitive advantage.
In some instances larger organizations may experience
economies of scale that create an advantage over in­
efficient competitors, but the Board does not believe
that this advantage represents either unfair or de­
creased competition within the meaning of section
4(c)(8). Protestants have provided no evidence that
Applicant has used any “inside” information in mak­
ing insurance sales or that Applicant has in any other
way abused its access to any confidential information
regarding its customers. The Board believes that the
mere speculative possibility of such abuse provides
negligible, if any, weight against approval.10
Greater Convenience /Gains in Efficiency

Protestants state that because Applicant does not in­
tend to place a licensed agent at every lending office,
Applicant’s proposal will result in inconvenience for
customers who desire personal assistance in such mat­
ters as claims settlement. Protestants also contend that
the small number of agents employed by Applicant will
not be able to adequately advise customers regarding
the type of coverage best suited to the customer’s situ­
ation. In some respects, Applicant will not be a full
service insurance agency, because, for example, it

the customer may agree to make such a purchase out of gratitude to
Applicant for granting the credit. The Board does not believe that such
behavior by a consumer constitutes an adverse effect of the type de­
scribed in section 4(c)(8) of the Act. Furthermore, Applicant’s com­
mitment to advise the customer that they may choose the supplier of
any insurance eliminates any possible concern in this regard.
9. Protestants assert that the decision on real estate loan appli­
cations is commonly made by a committee and that consequently, the
question of insurance is often discussed before credit is granted. On
this basis, Protestants state that Applicant’s commitment regarding
tion.
the time at which insurance will be offered is “suspect,” and should
With regard to this particular application, it is the
be examined at a hearing. As noted above, however, the Board has
Board’s judgment that the commitments provided by
acted on this application in reliance on compliance with this com­
mitment. The Board has ample authority to ensure compliance with
Applicant clearly eliminate any possibility of volun­
this commitment, 12 U.S.C. §§ 1818(b), 1844(b), anda violation of this
tary tying as an adverse effect. Specifically, Applicant
commitment may be brought to the Board’s attention by anyone. A
has committed that it will inform credit customers that
hearing on this point thus appears to be unnecessary. In any event,
Applicant’s commitment to advise its customers that the customer
insurance is available from Applicant only after the
may choose the source of any insurance is sufficient to resolve this
customer has been advised that the credit has been
issue.
10. Among other things, Protestants assert that Applicant may so­
granted. Applicant has further committed that it will
licit insurance sales through advertisements placed in its depositor’s
advise each customer in writing that the customer may
monthly statements. Such a practice appears unlikely because under
choose the source of any insurance.8 The Board rethe Board’s regulations, Applicant will be limited to selling insurance
directly related to extensions of credit and other financial services. 12
C.F.R. § 225.4(a)(9). Thus, although Applicant could insure a house
8. Protestants also suggest that if a customer is advised after credit for which it is the mortgagee, it could not insure a house solely on the
has been granted that they may purchase insurance from Applicant,
basis that it was owned by one of Applicant’s depositors.




Legal D evelopm ents

cannot renew insurance coverage once the related loan
has been paid. Moreover, the insurance needs of the
relevant communities are being adequately served by
independent insurance agents, according to Protes­
tants, and thus Applicant’s proposal cannot result in
greater convenience for those communities.
Applicant responds that it currently assists its cus­
tomers in filing claims, will continue to provide such
assistance, and will hire additional insurance agents as
necessary to properly serve its customers. Customers
that choose to purchase insurance from Applicant will
receive faster and more efficient service because the
need to provide duplicative information will be elimi­
nated, and the established relationship between the
lending officers and insurance agents will promote the
rapid completion of necessary forms and allow more
complete responses to the customer’s questions. Fi­
nally, Applicant states that allowing the customer to
purchase insurance at the same time he secures credit
will provide the convenience of “one-stop shopping.”
The Board has considered the assertions of Appli­
cant and Protestants and concludes that on balance
Applicant’s proposal is not likely to result in signifi­
cant gains in convenience or efficiency. Some gains in
convenience and efficiency might be associated with
Applicant’s proposal, but Applicant has not provided
sufficient information for the Board to conclude that
such gains may reasonably be expected to occur.
Thus, the Board has accorded Applicant’s claims no
weight in acting on this application.
Having concluded that no significant gains in conve­
nience or efficiency have been demonstrated by Appli­
cant, it is necessary to consider Protestants’ assertion
that the limitations on the insurance services Appli­
cant proposes should be viewed as an adverse factor
lending weight toward denial of the proposal. The
Board believes that the fact that a holding company
either chooses not to offer certain services, or is pre­
vented by the Board’s regulations from offering those
services, does not represent an adverse effect within
the meaning of section 4(c)(8).11 The adverse effect as­
serted by Protestants, a decrease in convenience for
Applicant’s insurance customers, is not one of the ad­
verse effects enumerated in section 4(c)(8). It is also
not the kind of adverse effect set forth in that section.
Unlike each of the examples of adverse effects con­
tained in that section, the adverse effect asserted by
Protestants is completely avoidable from the borrow­
er’s perspective. For example, customers that desire
11.

671

face-to-face contact with an insurance agent can sim­
ply decline to purchase insurance from Applicant, and
Applicant has committed that it will so advise its cus­
tomers. The Board considers the insurance agency ac­
tivities of holding companies to be an alternative to,
rather than a replacement for, independent insurance
agents, and believes that insurance customers should
be allowed to choose between such alternatives. Pro­
testants, on the other hand, in effect assert that cus­
tomers should be denied this choice. Yet the fact that
this proposal will create an alternative source of insur­
ance is one of the principal public benefits associated
with the proposal.
Increased Competition

Applicant states that approval of its proposal will add
one new competitor in the state of Virginia and numer­
ous new locations where insurance may be obtained.
Applicant has committed to make its best efforts to of­
fer such insurance at the lowest practicable cost to the
customer, and has also committed to provide the cus­
tomer the option of financing the insurance premium
or paying for it directly.
While conceding that Applicant’s proposal would
create an additional competitor, Protestants dispute
Applicant’s assertion that the proposal would also add
many new locations where insurance may be pur­
chased. Protestants also state that because Applicant
may combine loan and insurance billing, higher costs
could result because the direct billing service offered
by some underwriters is highly efficient. Finally, Pro­
testants contend that the financing of insurance pre­
miums to be offered by Applicant may increase costs
for the consumer because most underwriters provide
premium deferral plans that effectively finance pre­
miums at rates more favorable than normal bank lend­
ing rates.
As noted above, Applicant will not have an insur­
ance agent at each of its lending offices. For this rea­
son, the Board is unable to accept Applicant’s asser­
tion that its proposal will create a large number of new
locations where insurance may be obtained. It is clear,
however, that consummation of this proposal will add
an additional competitor because Applicant seeks to
expand its insurance activites de novo. Because de
novo expansion provides an additional source of com­
petition, the Board views such expansion as being procompetitive in the absence of evidence to the con­
trary.12 With regard to applications filed under section

See A utom obile Leasing as an A ctivity fo r Bank Holding C om ­

62 F e d e r a l R eserve B u lle t in 930, 941 (1976). Contrary to
Protestants’ assertions, there is also no requirement that Applicant
show a “need” for the proposed insurance services. BankAmerica
Corporation (Decimus Corporation), 66 F e d e r a l R eserve B u lle t in
511,514 n. 18 (1980).

panies,




12. BankAm erica Corporation (Decimus Corporation) 66 F e d e r a l
Reserve B u lle t in 511 (1980); C iticorp (Person to Person), 65 F ed ­
e r a l R eserve B u lle t in 507 (1979); U .N . Bancshares, Inc., 59 F ed­
e r a l R eserve B u lle t in 204 (1973). The United States Court of Ap-

672

Federal Reserve Bulletin □ August 1980

4(c)(8) of the Act, Congress authorized the Board to
differentiate between activities commenced de novo
and activities commenced through the acquisition of a
going concern because Congress viewed de novo entry
as having beneficial effects on competition.13 The
Board concludes that the de novo nature of this pro­
posal represents a clear public benefit. This conclusion
is based on economic theory, Congressional instruc­
tion, and the Board’s experience in administering the
Act. Moreover, Applicant has committed to offer in­
surance at the lowest practicable cost to the customer.
The Board regards this as a commitment to offer the
lowest practicable total cost, including the costs of
billing, and believes that this moots protestants’ con­
cerns regarding direct billing. The possibility that the
premium financing to be offered by Applicant could
result in higher costs when compared to premium de­
ferral plans neither detracts from Applicant’s commit­
ment regarding cost nor represents an adverse effect
because such premium financing is optional.
On the basis of the preceeding discussion, the Board
concludes that the pro-competitive nature of Appli­
cant’s proposal can reasonably be expected to produce
benefits to the public. These clear public benefits eas­
ily outweigh the speculative adverse effects alleged by
Protestants with regard to unfair competition, which
adverse effects the Board has concluded are not likely
to occur. Indeed, the de novo nature of this proposal is
alone sufficient to outweigh such speculative adverse
effects. There is no evidence that any other adverse
effects may be associated with this proposal, such as
undue concentration of resources or unsound banking
practices.
Need fo r Hearing

Protestants assert, however, that further examination
of Applicant’s proposal is necessary for the Board to
conclude that the benefits associated with the appli­
cation outweigh adverse effects, and that such exami­
nation can only be accomplished through a formal
hearing. Indeed, Protestants state that such a hearing
is necessary simply to ascertain that Applicant will not
sell any types of insurance that the Board has not de­
termined to be permissible for bank holding com­
panies.
Applicant’s proposal is to sell insurance to protect
collateral in which it has a security interest as a result
of its extensions of credit, and other insurance normal­
ly sold to borrowers in conjunction with insurance propeals for the District of Columbia Circuit affirmed the Board’s
conclusions regarding the procompetitive nature of de novo entry in
Connecticut Bankers A ssn. v. B oard o f Governors, No. 79-1554 (D.C.
Cir. Feb. 7, 1980).
13. S. Rep. No. 91-1084, 91st Cong., 2nd Sess. 15, 16 (1970).



tecting such collateral. For example, Applicant pro­
poses to sell homeowners and motor vehicle insurance
that provides both physical damage and liability cov­
erage. The application also states that Applicant will
sell homeowners insurance in connection with one
other financial service: mortgage loan servicing where
the mortgagee is a beneficiary of the policy. The Board
has interpreted the insurance provisions of its Regula­
tion Y to authorize the sale of these types of insur­
ance.14
In order to be entitled to a hearing under section
4(c)(8) of the Act, a Protestant must present issues of
fact that are material to the Board’s decision and dis­
puted by the relevant parties.15 Moreover, although a
hearing request may not lightly be denied,
. . an
agency is not required to conduct an evidentiary hear­
ing when it can serve absolutely no purpose.” 16 Appli­
cant has committed not to sell any of the types of in­
surance that the Board has determined are not
permissible and Protestants do not assert that Appli­
cant in fact intends to sell any such insurance. Appli­
cant’s proposal is sufficiently specific to put com­
petitors and the public on notice regarding its
intentions, and the Board’s continuing supervisory au­
thority over bank holding companies enables it to pre­
vent the commencement of impermissible insurance
activities. Moreover, there is no evidence that Appli­
cant has engaged in any unauthorized insurance activi­
ties in the past. Thus, the Board concludes that materi­
al facts are not in issue regarding the scope of
Applicant’s proposal and that no purpose would be
served by ordering a hearing on this point.
Protestants assert that there are a number of other
material issues of fact in dispute that require a hearing.
It bears repeating, however, that Protestants do not
controvert the principal public benefit associated with
this proposal, the creation of an additional competitor
in the market. Most of the disagreement between Ap­
plicant and Protestant relates to Applicant’s con­
tention that greater convenience for the consumer will
result from this proposal. The Board has resolved this
issue in Protestants’ favor and, as indicated above, has
accorded no weight to Applicant’s claims of greater
convenience. Consequently, a hearing on this point
would serve no purpose.17 Similarly, the Board ac­
14. 12 C.F.R. § 225.128.
15. Connecticut Bankers A ssn., supra at 12. The court stated that
“a protestant does not become entitled to an evidentiary hearing
merely on request, or on a bald or conclusory allegation that such a
dispute exists.” Id.
16. Independent Bankers A ssn. v. B oard o f G overnors, 516 F.2d
1206, 1220 (D.C. Cir. 1975).
17. As explained above, the Board does not regard Protestants’
claims of inconvenience as material to the decision in this case in view
of the Board’s rejection of Applicant’s claims of increased conve­
nience.

Legal D evelopm ents

cepted Protestants’ assertions regarding the number of
new locations at which insurance may be obtained.
Protestants have also disputed Applicant’s state­
ments regarding the cost of insurance to the consumer.
The Board regards the commitment made by Appli­
cant in this respect as being sufficient to resolve this
issue. Moreover, this commitment constitutes a mate­
rial representation relied on by the Board, and the
Board is prepared to insure compliance with such
commitment by Applicant. Finally, Protestants con­
tend that Applicant’s proposal must be examined at a
hearing to determine whether voluntary tying is likely
to result. The Board has found that the commitments
made by Applicant in this regard, when coupled with
the relevant market structure, remove any possibility
that voluntary tying will occur. The Board is also pre­
pared to insure compliance with these commitments.
Furthermore, unlike the situation presented in Inde­
pendent Bankers Assn., supra, a case relied on by
Protestants, Applicant’s record is unblemished with
regard to the type of allegations made by Protestants.
Applicant has been engaged in selling both credit life
insurance and limited property insurance for almost
five years, and there is no evidence that its activities
have resulted in any voluntary tying. The regulation of
the property and casualty insurance activities of bank
holding companies is not a new area for the Board, and
the experience it has gained in this area over the years
persuades it that a hearing on this application can
serve no useful purpose.18
Balance o f Public Benefits and Adverse Effects

The Board finds that consummation of this proposal as
approved herein cannot reasonably be expected to
produce any undue concentration of resources, de­
creased or unfair competition, conflicts of interests,
unsound banking practices or other adverse effects.
Public benefits can reasonably be expected to result
from this proposal, and they are easily sufficient to
outweigh any possible adverse effects which the Board
has, in any event, found to be unlikely to occur. Pro­
testants argue that Applicant, nevertheless, bears a
heavy burden to show that the public benefits associat­
ed with its proposal outweigh “the other adverse ef­
fects that are inherent in bank holding company en­
gagement in property and casualty insurance
activities.” Protestants are in essence attacking the
validity of the regulation authorizing bank holding
companies to sell credit related insurance. Protestants
18. See A m erican B ancorp., Inc. v. B oard o f Governors, 509 F.2d
29, 39 (8th Cir. 1975) (bank holding company movement into un­
charted area lends weight to hearing request). Indeed, Protestant In­
dependent Insurance Agents of America, Inc. has appeared before the
Board in numerous application proceedings.



673

are barred from mounting such an attack by previous
litigation.19 In any event, Protestants’ claims regarding
the closely relatedness of the activity and the propriety
of bank holding company involvement in the activity
are, in the Board’s judgment, without merit. More­
over, when the Board determines that an activity is
permissible for bank holding companies, it makes an
implicit determination that the activity can generally
be expected to achieve net public benefits.20 The
Board believes that this general finding is sufficient to
overcome similarly general allegations that adverse ef­
fects are associated with an activity.
Based upon the foregoing and other considerations
reflected in the record, the Board has determined that
the balance of the public interest factors that the Board
is required to consider under section 4(c)(8) is favor­
able. Accordingly, the application is hereby approved.
This determination is subject to the conditions set
forth in section 225.4(c) of Regulation Y and to the
Board’s authority to require such modification or ter­
mination of the activities of a holding company or any
of its subsidiaries as the Board finds necessary to as­
sure 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 effect date of this Order, unless such
period is extended for good cause by the Board or by
the Federal Reserve Bank of Richmond, pursuant to
delegated authority.
By order of the Board of Governors, effective July
24, 1980.
Voting for this action: Governors Partee, Teeters, Rice,
and Gramley. Present and not voting: Vice Chairman Schultz
and Governor Wallich. Absent and not voting: Chairman
Volcker.

(Signed) G riffith L. Garwood,
[seal]

Deputy Secretary of the Board.

Orders U nder Section 2
o f Bank H olding C om pany A c t

1st State Corporation,
Chicago, Illinois
Order Granting Determination Under the
Bank Holding Company Act

1st State Corporation, Chicago, Illinois (“ 1st State”),
19. A labam a A ssn. o f Ins. A gen ts, supra.
20. C onnecticut Bankers A ssn., supra.

674

Federal Reserve Bulletin □ August 1980

a bank holding company within the meaning of section
2(a) of the Bank Holding Company Act of 1956, as
amended (12 U.S.C. § 1841 et seq.) (the “ Act”), has
requested a determination pursuant to section 2(g)(3)
of the Act, that with respect to the sale of all of the
outstanding voting shares of Parkway Towers Insur­
ance Agency, Inc. (“Parkway”) and First State Travel
Service, Inc. (“Travel”) to four individuals (“Trans­
ferees”), 1st State is not in fact capable of controlling
Transferees notwithstanding the fact that Parkway is
indebted to 1st State in connection with this transac­
tion, and such indebtedness is guaranteed by Transfer­
ees and Travel.
Under the provisions of section 2(g)(3) of the Act,
shares transfered after January 1, 1966, by any bank
holding company to a transferee that is indebted to the
transferor are deemed to be indirectly owned or con­
trolled by the transferor unless the Board, after oppor­
tunity for hearing, determines that the transferor is not
in fact capable of controlling the transferee.
1st State has not requested a hearing, but it has sub­
mitted evidence to the Board to show that it is not in
fact capable of controlling Parkway, Travel or Trans­
ferees, and the Board has received no contradictory
evidence. It is hereby determined that 1st State is not
in fact capable of controlling Parkway, Travel or
Transferees. This determination is based upon the evi­
dence of record in this matter that reflects the follow­
ing:
The sale of Parkway and Travel appears to have
been the result of arm’s length negotiations. There is
no evidence to indicate that the sale was motivated by
an intent to evade the requirements of the Act. The
terms of the indebtedness involved are limited to those
reasonably required to protect 1st State’s extension of
credit. Parkway has repaid a substantial portion of the
initial indebtedness, and the remainder represents less
than 20 percent of the total purchase price. The finan­
cial resources of Transferees are sufficient to support
the conclusion that 1st State is not in fact capable of
controlling Parkway, Travel or Transferees by reason
of this indebtedness. In addition, there are no officer or
director interlocks between 1st State or any of its sub­
sidiaries, on the one hand, and Parkway, Travel or
Transferees on the other hand. 1st State has submitted
a resolution of its board of directors stating that it is
not in fact capable of controlling Parkway, Travel or
Transferees, and that it will not attempt to control
them in the future. In addition, Parkway and Travel
have submitted corporate resolutions, and Transferees
have submitted affidavits, to the effect that they are
not and will not be controlled by 1st State.
Accordingly, it is ordered that the request of 1st
State for a determination pursuant to section 2(g)(3) is
granted. This determination is based upon the repre­



sentations made to the Board by 1st State, Parkway,
Travel and Transferees. In the event the Board should
hereafter determine that facts material to this determi­
nation are otherwise than as represented, or that 1st
State, Parkway, Travel, or Transferees have failed to
disclose to the Board other material facts, this deter­
mination may be revoked, and any change in the cir­
cumstances relied upon in making this determination
could result in the Board’s reconsideration of this de­
termination.
By order of the Board of Governors, acting through
its General Counsel, pursuant to delegated authority
(12 C.F.R. § 265.2(b)(1)), effective July 2, 1980.
(Signed) Cathy L. Petryshyn,
[seal]

A ssistant Secretary o f the Board.

United Rock Construction, Inc.,
Omaha, Nebraska
Order Granting Determination Under the
Bank Holding Company A ct

United Rock Construction, Inc., Omaha, Nebraska
(“United” ), a bank holding company within the
meaning of section 2(a) of the Bank Holding Company
of 1956, as amended (“the Act”) (12 U.S.C. § 1841(a)),
by virtue of its ownership of over 99 percent of the
issued and outstanding voting shares of National Se­
curity Bank of Superior, Superior, Nebraska, has
requested a determination, pursuant to section 2(g)(3)
of the Act that United is not in fact capable of controlling
Cass Mining Company, Omaha, Nebraska (“Cass”),
Harold S. Myers, or David C. Myers (“Myers Broth­
ers” ), individuals to whom it transferred 100 percent
of the voting shares of Cass, notwithstanding the fact
that the Myers Brothers are officers and directors of
both United and Cass.
Under the provisions of section 2(g)(3) of the Act,
shares transferred after January 1, 1966, by a bank
holding company to a transferee that is indebted to the
transferor or has one or more officers, directors,
trustees, or beneficiaries in common with or subject to
control by the transferor, are deemed to be indirectly
owned or controlled by the transferor unless the
Board, after opportunity for hearing, determines that
the transferor is not in fact capable of controlling the
transferee.1 No request for a hearing was made by
1. In its January 26, 1978, interpretation of section 2(g)(3), the
Board stated that the presumption would also apply where shares are
transferred directly to one or more persons who are directors or offi­
cers of the transferor. 12 C.F.R. 225.139.

Legal D evelopm ents

United. United has submitted evidence to the Board to
support its contention that it is incapable of controlling
either directly or indirectly the Myers Brothers. The
Board has received no contradictory evidence.
It is hereby determined that United is not, in fact,
capable of controlling Cass or the Myers Brothers.
This determination is based upon the evidence in the
matter, including the following facts. United is a close­
ly-held Nebraska corporation in which the Myers
Brothers each hold a 50 percent stock interest and
serve as its only officers and directors. Under section
4(a)(2) of the Bank Holding Company Act, United is
required to divest its construction operations on or be­
fore December 31, 1980. In anticipation of such a di­
vestiture, Cass was organized to hold United’s con­
struction operations, and its shares were spun off to
the Myers Brothers on a pro rata basis. Thus, United’s
interest in Cass has terminated. The Myers Brothers
are the only stockholders in Cass and are also its only
directors and officers, and the divestiture does not ap­
pear to have been a means for perpetuating United’s
control over the divested construction operations.
On the basis of the above and other facts of record
the Board concludes that control of both United and
Cass resides with the Myers Brothers as individuals
and that United does not control and is not in fact ca­
pable of controlling the Myers Brothers in their capac­
ity as transferees of Cass stock or otherwise.
Accordingly, it is ordered, that the request of United
for a determination pursuant to section 2(g)(3) be and
hereby is granted. This determination is based on the
representations made to the Board by United and the
Myers Brothers. In the event the Board should hereaf­
ter determine that facts material to this determination
are otherwise than as represented, or that United or
the Myers Brothers have failed to disclose to the
Board other material facts, this determination may be
revoked, and any change in the facts and circum­
stances relied upon by the Board in making this deter­
mination could result in the Board reconsidering the
determination made herein.
By order of the Board of Governors, acting through
its General Counsel, pursuant to delegated authority
(12. C.F.R. § 265.2(b)(1)), effective July 17, 1980.
(Signed) G riffith L. Garwood,
[seal]

Deputy Secretary o f the Board.

Certification Pursuant to the
Bank Holding C om pany Tax A c t o f 1976

Warner Communications Inc.,
New York, New York



675

Prior Certification Pursuant to the
Bank Holding Company Tax Act o f 1976

Warner Communications Inc., New York, New York
(“ WCI”), as the successor in interest to Kinney Serv­
ices, Inc. (formerly Kinney National Services, Inc.),
New York, New York, (“ Kinney”), has requested a
prior certification pursuant to section 6158(a) of the In­
ternal Revenue Code (the “ Code”), as amended by
section 3(a) of the Bank Holding Company Tax Act of
1976 (the “Tax Act”), that the proposed disposition by
WCI of certain shares of Common Stock of Garden
State National Bank, Paramus, New Jersey (“Garden
State”) held by it is necessary or appropriate to ef­
fectuate the policies of the Bank Holding Company
Act (12 U.S.C. § 1841 et seq.) (“ BHC Act”).
In connection with these requests, the following in­
formation is deemed relevant for purposes of issuing
the requested certification:1
1. WCI is a corporation organized under the laws of
the State of Delaware on December 30, 1971. Kin­
ney was a corporation organized under the laws of
the State of New York on December 26, 1961.
2. Between March 20, 1969 and July 7, 1970, Kin­
ney acquired ownership and control of 229,172
shares, representing 98.88 percent of the out­
standing voting shares, of Garden State Capital
Stock. On February 1, 1971, North Jersey National
Bank, Jersey City, New Jersey (“North Jersey
Bank”) was consolidated into Garden State. Pur­
suant to the terms of the consolidation Kinney ex­
changed its Garden State Capital stock for 602,402
shares of Class B Common Stock, representing
99.59 percent of the shares of that class out­
standing.2 Since that time Kinney or its successor
has received an additional 243,316 shares of Class B
Common Stock through stock dividends with re­
spect to the shares of Class B Common Stock that
were exchanged for the Capital Stock held by Kin­
ney on July 7, 1970.3

1. This information derives from WCI’s correspondence with the
Board concerning its request for this certification, Kinney’s Registra­
tion Statement filed with the Board pursuant to the BHC Act, and
other records of the Board.
2. Kinney also holds shares of Class Aand Class BCommon Stock,
that were acquired by it after July 7, 1970 through purchases and stock
dividends. Under subsection (c) of section 1101 of the Code property
acquired after July 7, 1970 generally does not qualify for the tax bene­
fits of section 1101(b) when distributed by an otherwise qualified bank
holding company, and WCI has not requested certification with re­
spect to these shares.
3. While subsection (c) of section 1101 of the Code generally prohi­
bits tax benefits for the distribution of property acquired after July 7,
1970, where such property was acquired by a qualified bank holding
corporation a transaction in which gain was not recognized under sec­
tion 305(a) of the Code, then section 1101(b) is applicable. Kinney and
WCI have indicated that pursuant to section 305(a) of the Code, no

676

Federal Reserve Bulletin □ August 1980

3. Kinney became a bank holding company on De­
cember 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 percent of
the outstanding voting shares of Garden State, and it
registered as such with the Board on August 17,
1971. Kinney 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 ownership and control on that date of more than
25 percent of the voting shares of Garden State.
4. On February 11, 1972, Kinney and WCI merged
pursuant to the laws of New York and Delaware
with WCI continuing as the surviving corporation.
Pursuant to contract and the laws of New York and
Delaware, WCI succeeded to all the properties, as­
sets and rights and liabilities of Kinney.4
5. WCI holds property acquired by it on or before
July 7, 1970, the disposition of which is necessary to
appropriate to effectuate section 4 of the BHC Act if
WCI were to remain a bank holding company
beyond December 31, 1980, which property is “pro­
hibited property” within the meaning of sections
6158(f)(1) and 1103(c) of the Code.
6. WCI proposes to dispose of all of the Class A and
Class B Common Stock of Garden State held by it
pursuant to a consolidation with New Garden State
National Bank, a wholly-owned subsidiary of Fidel­
ity Union Bancorporation, Newark, New Jersey
(“ Fidelity”). As consideration for the Garden State
shares, WCI will receive an aggregate of approxi­
mately $54.2 million, of which 60 percent will be
paid in cash and 40 percent in the form of notes of
Fidelity. The Fidelity notes will be payable in 28
equal quarterly payments for seven years following
the effective date of the consolidation, and will bear
interest at the prime rate in effect from time to time.
gains were recognized as a result of the stock dividends declared by
Bank. Accordingly, the shares of Class B Common Stock received as
stock dividends on shares of stock exchanged for Capital Stock of
Garden State held by Kinney on July 7, 1970, are eligible for tax bene­
fits.
4. Pursuant to section 1103(b)(3) of the Code a successor corpora­
tion in a reorganization described in section 368(a)(1)(F) may succeed
to the status of its predecessor corporation as a qualified bank holding
corporation.




7. WCI has committed to the Board that on and af­
ter the effective date of the consolidation, no person
holding an office or position (including an advisory
or honorary position) with WCI or any of its sub­
sidiaries as a director, policymaking employee or
consultant, who performs (directly or through an
agent, representative or nominee) functions com­
parable to those normally associated with such of­
fice or position, will hold any such office or position
or perform any such function with Fidelity or Gar­
den State or any of their present or future affiliates.
WCI has further committed that upon consum­
mation of the transaction, all persons now holding
such positions with both WCI and Garden State will
terminate their dual positions.
On the basis of the foregoing, it is certified that:
(A) WCI is a qualified bank holding corporation,
within the meaning of subsection (b) of section
1103 of the Code, and satisfies the requirements
of that subsection;
(B) 845,718 of the Class B Common Stock of
Garden State are “bank property” within the
meaning of section 6158(f)(3) of the Code and are
all or part of the property by reason of which
WCI controls (within the meaning of section 2(a)
of the BHC Act) a bank;
(C) the sale of the 845,718 shares of Class B
Common Stock of Garden State is necessary or
appropriate to effectuate the policies of the BHC
Act.
This certification is based upon the representations
and commitments made to the Board by WCI and up­
on the facts set forth above. In the event the Board
should hereafter determine that facts material to this
certification are otherwise than as represented by
WCI, or that WCI has failed to disclose to the Board
other material facts or has failed to meet its com­
mitments, 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 3, 1980.
(Signed) G riffith L. Garwood,
[seal]

Deputy Secretary o f the Board.

Legal D evelopm ents

677

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

By the B oard o f G overnors

During July 1980 the Board of Governors approved the applications listed below. Copies are available upon
request to Publications Services, Division of Support Services, Board of Governors of the Federal Reserve
System, Washington, D.C. 20551.
Section 3

Bank(s)

Applicant
First City Bancorporation of Texas, Inc.,
Houston, Texas
First Freeport Corporation,
Freeport, Texas
Knoff Bancshares, Inc.,
Cokato, Minnesota
Stapleton Bancorporation, Ltd.,
Denver, Colorado
Virginia National Bankshares, Inc.,
Norfolk, Virginia

Board action
(effective
date)

First National Bank of Madisonville,
Madisonville, Texas
Alvin National Bank,
Alvin, Texas
First National Bank of Cokato,
Cokato, Minnesota
Dominion Bank of Denver,
Denver, Colorado
The First National Bank of Troutville,
Troutville, Virginia

July 21, 1980
July 17, 1980
July 9, 1980
July 22, 1980
July 25, 1980

B y F ed era l R e serve Banks

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

Applicant
Albany Bancshares, Inc.,
Albany, Illinois
American Bancorp., Inc.,
Longview, Texas
Banco Central, S.A.,
Madrid, Spain
Banco Gering Corporation,
Gering, Nebraska
Buffalo Bancshares, Inc.,
Buffalo, Kentucky
Carbondale Bancshares, Inc.,
Carbondale, Illinois
Central Bancompany,
Jefferson City, Missouri
Central Indiana Bancorp, Inc.,
Fairland, Indiana
Central National Bancshares, Inc.,
Des Moines, Iowa



Bank(s)
First Trust & Savings Bank of
Albany
Albany, Illinois
American Bank,
Longview, Texas
United Americas Bank,
New York, New York
Bank of Gering,
Gering, Nebraska
The First National Bank of
Buffalo
Buffalo, Kentucky
MidAmerica Bank and Trust
Company of Carbondale,
Carbondale, Illinois
Empire Bank,
Springfield, Missouri
The Fairland National Bank,
Fairland, Indiana
Spencer National Bank,
Spencer, Iowa

Reserve
Bank

Effective
date

Chicago

July 23, 1980

Dallas

July 21, 1980

New York

July 17, 1980

Kansas City

July 3, 1980

St. Louis

July 23, 1980

St. Louis

July 18, 1980

St. Louis

July 10,1980

Chicago

July 25, 1980

Chicago

July 11, 1980

678

Federal Reserve Bulletin □ August 1980

Section 3—Continued

Applicant

Clarkfield Bancshares,
Inc.,
Clarkfield, Minnesota
Commercial Bankstock, Inc.,
Little Rock, Arkansas
Dallas Bancshares, Inc.,
Dallas, Texas
Darfur Bancshares, Inc.,
Darfur, Minnesota
East Troy Bancshares, Inc.,
East Troy, Wisconsin
Edwardsville Management Company,
Omaha, Nebraska
Eustis Bancshares, Inc.,
Lincoln, Nebraska
Extra Co.,
Temple, Texas
F and 0 , Inc.,
Montgomery, Minnesota
F.S.B. Holding Company,
Helena, Montana
Fidelity Banc Corporation,
Dodge City, Kansas
First Amherst Bancshares, Inc.,
Amherst, Texas
First Commercial Bancorp,
Sacramento, California
First Deerfield Corporation,
Chicago, Illinois
First Duncanville Corporation,
Duncanville, Texas
First Eldorado Bancorporation, Inc.,
Eldorado, Oklahoma
First International Bancshares, Inc.,
Dallas, Texas
First Minnetonka Bancorporation,
Inc.,
Minnetonka, Minnesota
First National Cincinnati Corporation,
Cincinnati, Ohio




Bank(s)

Farmers and Merchants State
Bank,
Clarkfield, Minnesota
The Commercial National Bank
of Little Rock,
Little Rock, Arkansas
Bank of Dallas,
Dallas, Texas
State Bank of Darfur,
Darfur, Minnesota
State Bank of East Troy,
East Troy, Wisconsin
Edwardsville National Bank
and Trust Co.,
Edwardsville, Illinois
Farmers State Bank,
Eustis, Nebraska
First National Bank of Temple,
Temple, Texas
First National Bank of
Montgomery
Montgomery, Alabama
First Security Bank of Helena,
Helena, Montana
The Fidelity State Bank and
Trust Co.,
Dodge City, Kansas
The First National Bank of
Amherst,
Amherst, Texas
First Commercial Bank,
Sacramento, California
First National Bank of
Deerfield,
Deerfield, Illinois
First National Bank of
Duncanville,
Duncanville, Texas
First State Bank,
Eldorado, Oklahoma
Guaranty Bond State Bank,
Tomball, Texas
First Minnetonka City State
Bank
Minnetonka, Minnesota
The Portsmouth Banking
Company,
Portsmouth, Ohio

Reserve
Bank

Effective
date

Minneapolis

July 18, 1980

St. Louis

July 17, 1980

Dallas

July 1, 1980

Minneapolis

July 25, 1980

Chicago

July 14, 1980

St. Louis

July 18, 1980

Kansas City

July 20, 1980

Dallas

July 11, 1980

Minneapolis

June 30,1980

Minneapolis

July 28,1980

Kansas City

July 10,1980

Dallas

July 23, 1980

San Francisco

July 14, 1980

Chicago

July 18, 1980

Dallas

July 3, 1980

Kansas City

July 3, 1980

Dallas

July 3, 1980

Cleveland

July 21, 1980

Cleveland

June 30, 1980

Legal Developments

679

Section 3—Continued

Applicant
The First National Corporation in
Ontonagon,
Ontonagon, Michigan
First National in Cordell Bancshares,
Inc.,
Cordell, Oklahoma
First Poteau Corporation,
Poteau, Oklahoma
First Schaumburg Bancorporation,
Inc.
Schaumburg, Illinois
First South Bankcorp,
Columbus Georgia
Florence Bancorporation, Inc.,
Florence, Wisconsin
Floyd County Bancshares, Inc.,
Floydada, Texas
Fremont State BancShares, Inc.,
Lincoln, Nebraska
Fremont BancShares, Inc.,
Lincoln, Nebraska
Great Lakes Financial Corporation,
Grand Rapids, Michigan
Key Banks Inc.,
Albany New York
LNB Bancshares, Inc.,
Leonard, Texas
Lake Benton Bancorporation, Inc.,
Lake Benton, Minneapolis
Le Sueur Bancorporation, Inc.,
Le Sueur, Minnesota
Lincoln East BancShares, Inc.,
Lincoln, Nebraska
Lone Oak Financial Corporation,
Lone Oak, Texas
Longview Capital Corporation,
Longview, Illinois
Manufacturers Bancshares, Inc.,
Miami, Florida
Mountain Banks, Ltd.,
Denver, Colorado




Reserve
Bank

Effective
date

The First National Bank,
Ontonagon, Michigan

Minneapolis

July 16, 1980

First National Bank in Cordell,
Cordell, Oklahoma

Kansas City

June 30, 1980

Poteau State Bank,
Poteau, Oklahoma
Heritage Bank of Schaumburg,
Schaumburg, Illinois

Kansas City

July 3, 1980

Chicago

July 18, 1980

Atlanta

July 10, 1980

Minneapolis

July 18, 1980

Dallas

July 22, 1980

Kansas City

July 11, 1980

Kansas City

July 11, 1980

Chicago

July 15, 1980

New York

July 17, 1980

Dallas

July 25, 1980

Minneapolis

July 3, 1980

Minneapolis

July 16, 1980

Kansas City

July 11, 1980

Dallas

July 15, 1980

Chicago

July 14, 1980

Atlanta

July 30, 1980

Kansas City

June 27, 1980

Bank(s)

The First National Bank of
Columbus,
Columbus, Georgia
State Bank of Florence,
Florence, Wisconsin
The First National Bank of
Floydada,
Floydada, Texas
Fremont First State Co.,
Lincoln, Nebraska
First National Bank & Trust
Co. of Fremont,
Fremont Nebraska
Montcalm Central Bank,
Stanton, Michigan
The Citizens National Bank and
Trust Co.,
Wellsville, New York
The Leonard National Bank,
Leonard, Texas
Farmers State Agency of Lake
Benton, Inc.,
Lake Benton, Minnesota
Le Sueur State Bank,
Le Sueur, Minnesota
LBE Co.,
Lincoln, Nebraska
Lone Oak State Bank,
Lone Oak, Texas
Longview State Bank,
Longview, Illinois
Manufacturers National Bank
Hialeah, Florida
Chapel Hills National Bank,
Colorado Springs, Colorado

680

Federal Reserve Bulletin □ August 1980

Section 3—Continued

Bank(s)

Applicant
National Commerce Corporation,
Birmingham, Alabama
North Community Bancorp, Inc.,
Chicago, Illinois
Ohio Citizens Bancorp, Inc.,
Toledo, Ohio
Patriot Bancorporation,
Boston, Massachusetts
Portales National Bancshares, Inc.,
Portales, New Mexico
Progressive Bancshares Corporation,
Houma, Louisiana
Raymondville Bancorp, Inc.,
Harlingen, Texas
Roberts Bancorporation, Inc.,
Roberts, Wisconsin
SBT Corporation,
Savannah, Georgia
Security State Bancshares of Bemidji,
Inc.,
Bemidji, Minnesota
Southwest State Corporation,
Sentinel, Oklahoma
Van Bancshares, Inc.,
Van, Texas
Westex Bancorp, Inc.,
Del Rio, Texas

National Bank of Commerce of
Birmingham,
Birmingham, Alabama
North Community Bank,
Chicago, Illinois
Ohio Citizens Trust Company
Harbor National Bank of
Boston,
Boston, Massachusetts
The Portales National Bank,
Portales, New Mexico
Progressive Bank and Trust
Company,
Houma, Louisiana
Raymondville Bank of Texas,
Raymondville, Texas
State Bank of Roberts,
Roberts, Wisconsin
First National Bank and Trust
Company,
Vidalia, Georgia
Security State Bank of Bemidji,
Bemidji, Minnesota
Southwest State Bank,
Sentinel, Oklahoma
First State Bank,
Van, Texas
Del Rio Bank & Trust Co.,
Del Rio, Texas

Reserve
Bank

effective
date

Atlanta

July 23, 1980

Chicago

July 16, 1980

Cleveland

June 30, 1980

Boston

July 2, 1980

Dallas

July 23, 1980

Atlanta

July 9, 1980

Dallas

June 30, 1980

Minneapolis

July 8, 1980

Atlanta

June 30, 1980

Minneapolis

July 24, 1980

Kansas City

July 10, 1980

Dallas

July 11, 1980

Dallas

July 31,1980

Sections 3 and 4

Applicant
Security State Agency of
Aitkin, Inc.,
Aitkin, Minnesota




Bank(s)
Security State Bank of
Aitkin,
Aitkin, Minnesota

Nonbanking
company
(or activity)
to continue to sell
insurance as a
general
insurance agent

Reserve
Bank

Effective
date

Minneapolis

June 29, 1980

Legal Developments

681

Section 4

Applicant
American Heritage Corporation,
St. Paul, Minnesota
Blue Hill Agency, Inc.,
Blue Hill, Nebraska
First Pennsylvania Corporation,
Philadelphia, Pennsylvania
The Girard Company,
Bala-Cynwyd, Pennsylvania
Houston Investments, Inc.,
Caledonia, Minnesota
Keystone Investment, Inc.,
Keystone, Nebraska
Kit Carson Insurance Agency, Inc.,
Kit Carson, Colorado
Maryland National Corporation,
Baltimore, Maryland

Meader Insurance Agency, Inc.,
Waverly, Kansas
North Central Banco, Inc.,
Hutchinson, Minnesota
Northstar Bancorporation, Inc.,
Wayzata, Minnesota
Old Stone Corporation,
Providence, Rhode Island
Republic of Texas Corp.,
Dallas, Texas
Roger Billings, Inc.,
Delphos, Kansas
Stamford Banco, Inc.,
Stamford, Nebraska
Valley Bancorporation,
Appleton, Wisconsin
Wausa Bancshares, Inc.,
Wausa, Nebraska
Western Bancshares, Inc.,
Stockton, Kansas




Nonbanking
company
(or activity)

Reserve
Bank

Effective
date

to engage in sale of insurance

Kansas City

July 11, 1980

to continue to engage in general
insurance agency activities
Pennco Life Insurance
Company,
Phoenix, Arizona
GIRACO Life Insurance
Company
Phoenix, Arizona
to continue to sell insurance as
a general insurance agent
to continue to engage in general
insurance agency activities
to continue to engage in general
insurance agency activities
to engage de novo in
underwriting as a reinsurer
credit life and credit accident
and health insurance
to continue to engage in general
insurance agency activities
to continue making loans for its
own account
Mithun Enterprises, Inc.,
Wayzata, Minnesota
to engage in underwriting
through reinsurance of credit
and health insurance
to continue to engage in general
insurance agent activities
to continue to engage in the sale
of general life insurance and
hazard insurance
to engage in general insurance
agency activities
to establish a de novo
subsidiary to engage in
insurance underwriting
to continue to engage in general
insurance agency activities
to continue to engage in
general insurance
activities

Kansas City

June 27, 1980

Philadelphia

July 25, 1980

Philadelphia

July 22, 1980

Minneapolis

July 22, 1980

Kansas City

July 10, 1980

Kansas City

July 11, 1980

Richmond

July 1, 1980

Kansas City

June 27, 1980

Minneapolis

July 30, 1080

Minneapolis

July 3, 1980

Boston

July 18, 1980

Dallas

July 18, 1980

Kansas City

July 11, 1980

Kansas City

July 3, 1980

Chicago

July 23, 1980

Kansas City

July 3, 1980

Kansas City

July 3, 1980

682

Federal Reserve Bulletin □ August 1980

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

th e

B oard

of

G overnors

This list o f pending cases does not include suits
against the Federal Reserve Banks in which the Board
o f Governors is not nam ed a party.
Martin-Trigona v. Board o f G overnors, filed July 1980,

U.S.C.A. for the District of Columbia.
U.S. League o f Savings Associations v. D epository
Institutions Deregulation Com m ittee, et al., filed

June 1980, U.S.D.C. for the District of Columbia.
Edwin F. Gordon v. Board o f Governors, et al., filed

June 1980, U.S. Supreme Court
Mercantile Texas Corporation v. Board o f Governors,

filed May 1980, U.S.C.A. for the Fifth Circuit.
Corbin, Trustee v. U nited States, filed May 1980,
United States Court of Claims.
Louis J. Roussel v. Board o f Governors, filed April
1980, U.S.D.C. for the District of Columbia.
U lyssess S. Crockett v. U nited States, et al., filed
April 1980, U.S.D.C. for the Eastern District of
North Carolina.
Angela Belk v. Governm ent o f Iran, et al., filed April
1980, U.S.D.C. for the District of South Carolina,
Columbia Division.
Independent Bank Corporation v. Board o f G over­
nors, filed October 1979, U.S.C. A. for the Sixth Cir­
cuit.
Wiley v. United States, et al., filed September 1979,
U.S.D.C. for the District of Columbia.
County N ational Bancorporation and TGB Co. v.
Board o f Governors, filed September 1979,
U.S.C.A. for the Eighth Circuit.
Edwin F. Gordon v. Board o f Governors, et al., filed
August 1979, U.S.D.C. for the Northern District of
Georgia.
Gregory v. Board o f Governors, filed July 1979,
U.S.D.C. for the District of Columbia.




Donald W. Riegel, Jr. v. Federal Open M arket Com ­
m ittee, filed July 1979, U.S.D.C. for the District of

Columbia.
Connecticut Bankers Association, et al., v. Board o f
Governors, filed May 1979, U.S.C.A. for the Dis­

trict of Columbia.
Independent Insurance Agents o f America, et al., v.
Board o f Governors, filed May 1979, U.S.C. A. for

the District of Columbia.
Independent Insurance Agents o f America, et al., v.
Board o f Governors, filed April 1979, U.S.C. A. for

the District of Columbia.
Independent Insurance A gents o f America, et al., v.
Board o f Governors, filed March 1979, U.S.C.A. for

the District of Columbia.
Credit and Commerce Am erican Investment, et al., v.
Board o f Governors, filed March 1979 U.S.C. A. for

the District of Columbia.
Independent Bankers Association o f Texas v. First
National Bank in D allas, et al., filed July 1978,

U.S.D.C. for the Northern District of Texas.
Security Bancorp and Security N ational Bank v.
Board o f Governors, filed March 1978, U.S.C. A. for

the Ninth Circuit.
Vickars-Henry Corp. v. Board o f Governors, filed De­

cember 1977, U.S.C.A. for the Ninth Circuit.
Investm ent Company Institute v. Board o f Governors,

filed September 1977, U.S.D.C. for the District of
Columbia.
Roberts Farm s , Inc. v. Com ptroller o f the Currency,
et al., filed November 1975, U.S.D.C. for the South­
ern District of California.
D avid Merrill, et al. v. Federal Open M arket Com ­
mittee, filed May 1975, U.S.D.C. for the District of
Columbia.

Al

Financial and Business Statistics
C ontents

D o m e s t i c F in a n c i a l S t a t i s t i c s

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

A3
A4
A5
A6

Assets and liabilities
All reporting banks
Banks with assets of $ 1 billion or more
A ll
Banks in New York City
A23 Balance sheet memoranda
A24 Commercial and industrial loans

Monetary aggregates and interest rates
Factors affecting member bank reserves
Reserves and borrowings of member banks
Federal funds and repurchase agreements of
large member banks

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

Federal Reserve Bank interest rates
A8 Member bank reserve requirements
A9 Maximum interest rates payable on time and
savings deposits at federally insured institutions
A10 Federal Reserve open market transactions

Al

A20
A21

A24 Major nondeposit funds of commercial banks
A25 Gross demand deposits of individuals,
partnerships, and corporations

F in a n c i a l M a r k e t s

Al 1 Condition and Federal Reserve note statements
A12 Maturity distribution of loan and security
holdings

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

M onetary

A29 Savings institutions—Selected assets and
liabilities

F ederal R eserve B a n k s

and

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

A12 Bank debits and deposit turnover
A13 Money stock measures and components
A14 Aggregate reserves and deposits of member
banks
A15 Loans and securities of all commercial banks

C o m m e r c ia l B a n k A s s e t s

and

L ia b il it ie s

A 16 Last-Wednesday-of-month series
A 17 Call-date series
A 18 Detailed balance sheet, September 30,1978




F e d eral Fin a n c e

A30
A31
A32
A32

Federal fiscal and financing operations
U.S. budget receipts and outlays
Federal debt subject to statutory limitation
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 □ August 1980

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

and

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

R eal E state

A40 Mortgage markets
A41 Mortgage debt outstanding

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

R eported

by

Banks

in

th e

U n it e d S ta te s

A58
A59
A61
A62

Liabilities to and claims on foreigners
Liabilities to foreigners
Banks’ own claims on foreigners
Banks’ own and domestic customers’ claims on
foreigners
A62 Banks’ own claims on unaffiliated foreigners
A63 Claims on foreign countries—Combined
domestic offices and foreign branches

S e c u r it ie s H o l d in g s

and

Tr a n s a c t i o n s

A64 Marketable U.S. Treasury bonds and notes—
Foreign holdings and transactions
A64 Foreign official assets held at Federal Reserve
Banks
A65 Foreign transactions in securities

R eported b y N
E n t e r p r is e s i n

B u s in e s s
U n it e d S t a t e s

o n b a n k in g
th e

A42 Total outstanding and net change
A43 Extensions and liquidations

A66 Liabilities to unaffiliated foreigners
A67 Claims on unaffiliated foreigners

F low

In te r est

of

F unds

and

Ex c h a n g e R ates

A44 Funds raised in U.S. credit markets
A45 Direct and indirect sources of funds to credit
markets

A68 Discount rates of foreign central banks
A68 Foreign short-term interest rates
A68 Foreign exchange rates

D o m e s t i c N o n f in a n c ia l S t a t i s t i c s

S p e c i a l T a b le s

A46 Nonfinancial business activity—Selected
measures
A46 Output, capacity, and capacity utilization
A47 Labor force, employment, and unemployment
A48 Industrial production—Indexes and gross value
A50 Housing and construction
A51 Consumer and producer prices
A52 Gross national product and income
A53 Personal income and saving

A69 Survey of Time and Savings Deposits
at Commercial Banks, April 30, 1980

In tern a tio n a l S ta tistic s

A54
A55
A55
A56

U.S. international transactions—Summary
U.S. foreign trade
U.S. reserve assets
Foreign branches of U.S. banks—Balance sheet
data
A58 Selected U.S. liabilities to foreign official
institutions



A73 G u i d e to T a b u la r P r e s e n t a t i o n a n d
S ta tistic a l R e le a se s

Domestic Financial Statistics

A3

1.10 MONETARY AGGREGATES AND INTEREST RATES

Q3

Q4

Q2

Ql

Mar.

Apr.

May

June

Monetary and credit aggregates
(annual rates of change, seasonally adjusted in percent)1

1
2
3
4

Member bank reserves
T o ta l...........................................................................
Required ...................................................................
Nonborrowed ...........................................................
Monetary base2 .......................................................

5.0
4.7
6.9
9.3

12.7
11.7
7.1
9.7

4.4
5.4
3.6
7.6

5
6
7
8
9

Concepts of money and liquid assets3
M - 1 A .........................................................................
M-1B .........................................................................
M-2 ...........................................................................
M-3 ...........................................................................
L .................................................................................

9.6
10.7

7i

10.8
12.2

4.5
5.0
7.1
9.1
8.5

4.8
5.9
7.2
7.8'
8.4'

10
11
12
13
14

Time and savings deposits
Commercial banks
T o ta l.......................................................................
Savings4 .................................................................
Small-denomination time5 ................................
Large-denomination time6 ................................
Thrift institutions7 ...................................................

9.1
.4
22.5
4.5
7.4

12.4
-16.5
32.1
19.7
6.7

8.4
-19.3
29.1
11.3
2.7

15 Total loans and securities at commercial banks8

13.4

8.7

9.4

Q3

Q4

2.0
2.0
8.1
5.4

- 3 .9
- 2 .4
5.4
5.7
n.a.

9.8

-22.6
33.9
10.1
4.9

- .5

-0.8

- .9
1.3
41.1'
7.7

- 1 .9
- .3
5.0'
4.4'
7.9'

-1 7 .7
-1 4 .1

-1.6'

5.6'

9.8'
8.9'
8.9

14.6
-2 2 .5
25.9
34.0

8.5
-3 5 .6
42.5
7.6
4.0'

15.0
-4 3 .3
54.4
16.2
3.0'

- 7 .5
14.1
8.5
7.9'

32.9
- 3 .1
-2 4 .8
9.2

18.7

2.6

- 4 .3

-6.1

-2.8

9.4
9.9
9.5

11.8'
11.5

1.6'

Q2

Ql

4.4
4.6
-29.3
6.9

-1.0
-1.8
17.1
6.1

4.3
2.7
15.5
1.7

0.3
-1 2 .7
7.5

Apr.

-2.6'
.0'

.7

6.6

May

11.4
14.9
17.5

12.8
n.a.

-1.6

July

Interest rates (levels, percent per annum)
Short-term rates
Federal funds9 .................................................................................
Federal Reserve discount10 ...........................................................
Treasury bills (3-month market yield)1 1 ......................................
Commercial paper (3-month)1112................................................

10.94
10.21
9.67
10.64

13.58
11.92
11.84
13.35

15.07
12.51
13.35
14.54

12.67
12.45
9.62
11.18

17.19
13.00
15.20
16.81

17.61
13.00
13.20
15.78

10.98
12.94
8.58
9.49

9.47
11.40
7.07
8.27

9.03
10.87
8.06
8.41

Long-term rates
Bonds
20 U.S. government1 3 .......................................................................
21
State and local government1 4 ....................................................
22
Aaa utility (new issue)1 5 .............................................................
23 Conventional mortgages16 .............................................................

9.03
6.28
9.64
11.13

10.18
7.20
11.21
12.38

11.78
8.23
13.22
14.32

10.58
7.95
11.78
12.70

12.49
9.17
14.00
16.05

11.42
8.63
12.90
15.55

10.44
7.59
11.53
13.20

9.89
7.63
10.96'
12.45

10.32
8.13
11.60
12.45

16
17
18
19

1. Unless otherwise noted, rates of change are calculated from average amounts
outstanding in preceding month or quarter. Growth rates for member bank reserves
are adjusted for discontinuities in series that result from changes in Regulations
D and M.
2. Includes total reserves (member bank reserve balances in the current week
plus vault cash held two weeks earlier); currency outside the U.S. Treasury, Federal
Reserve Banks, and the vaults o f commercial banks; and vault cash of nonmember
banks.
3. M-1A: Averages of daily figures for (1) demand deposits at all commercial
banks other than those due to domestic banks, the U.S. government, and foreign
banks and official institutions less cash items in the process of collection and
Federal Reserve float; and (2) currency outside the Treasury, Federal Reserve
banks, and the vaults of commercial banks.
M-1B: M -l A plus negotiable order of withdrawal and automated transfer service
accounts at banks and thrift institutions, credit union share draft accounts, and
demand deposits at mutual savings banks.
M-2: M-1B plus savings and small-denomination time deposits at all depository
institutions, overnight repurchase agreements at commercial banks, overnight
Eurodollars held by U.S. residents other than banks at Caribbean branches of
member banks, and money market mutual fund shares.
M-3: M-2 plus large-denomination time deposits at all depository institutions
and term RPs at commercial banks and savings and loan associations.
L: M-3 plus other liquid assets such as term Eurodollars held by U.S. residents
other than banks, bankers acceptances, commercial paper, Treasury bills and other
liquid Treasury securities, and U.S. savings bonds.




4. Savings deposits exclude NOW and ATS accounts at commercial banks.
5. Small-denomination time deposits are those issued in amounts of less than

$100,000.

6. Large-denomination time deposits are those issued in amounts of $100,000
or more.
7. Savings and loan associations, mutual savings banks, and credit unions.
8. Changes calculated from figures shown in table 1.23.
9. Averages of daily effective rates (average of the rates on a given date weighted
by the volume of transactions at those rates).
10. Rate for the Federal Reserve Bank of New York.
11. Quoted on a bank-discount basis.
12. Beginning Nov. 1977, unweighted average of offering rates quoted by at
least five dealers. Previously, most representative rate quoted by these dealers.
Before Nov. 1979, data shown are for 90- to 119-day maturity.
13. Market yields adjusted to a 20-year maturity by the U.S. Treasury.
14. Bond Buyer series for 20 issues of mixed quality.
15. Weighted averages of new publicly offered bonds rated Aaa, Aa, and A by
Moody’s Investors Service and adjusted to an Aaa basis. Federal Reserve com­
pilations.
16. Average rates on new commitments for conventional first mortgages on new
homes in primary markets, unweighted and rounded to nearest 5 basis points, from
Dept, of Housing and Urban Development.

A4

D om estic Financial Statistics □ August 1980

1.11

FACTORS AFFECTING MEMBER BANK RESERVES
Millions of dollars
Monthly averages of
daily figures

W eekly averages of daily figures for week-ending

1980

1980

Factors

18^

25p

2p

9p

16p

23p

30p

May.P

June?

JulyP

1 Reserve Bank credit outstanding..........................

139,561

141,246

141,814

140,213

141,632

142,451

142,291

143,315

142,916

138,456

2
3

U .S. government securities1 ...........................................
Bought outright .............................................................
Federal agency securities ...............................................
Bought outright .............................................................

122,336
121,623
713
9,020
8,875
145

122,060
121,662
398
8,937
8,874
63

121,141
120,059
1,082
9,126
8,875
251

122,735
122,003
732
8,963
8,875
88

123,928
123,387
541
8,904
8,875
29

121,810
121,810

5
6

120,689
120,282
407
8,974
8,877
97

123,227
122,766
461
8,925
8,873
52

123,114
122,670
444
8,952
8,873
79

119,884
119,654
230
8,920
8,873
47

9
10
11

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

75
1,028
3,642
5,153

171
365
3,997
5,357

74
390
4,777
5,576

245
396
3,858
5,446

163
318
3,930
5,522

101
348
3,606
5,564

215
5.695
5.696

117
332
5,339
5,375

68
354
4,879
5,548

49
629
3,309
5,667

12
13
14

G old s t o c k ............................................................................
Special drawing rights certificate a c c o u n t................
Treasury currency o u tsta n d in g ......................................

11,172
2,968
13,266

11,172
2,986
13,288

11,172
3,053
13,296

11,172
2,968
13,278

11,172
3,011
13,285

11,172
3,018
13,324

11,172
3,018
13,293

11,172
3,018
13,294

11,172
3,061
13,296

11,172
3,118
13,301

15
16

124,738
577

126,334
543

128,173
512

126,536
546

126,311
538

126,960
527

128,366
520

128,655
520

128,125
508

127,660
498

17
18
19

Currency in circulation ....................................................
Treasury cash holdings ....................................................
D eposits, other than member bank reserves, with
Federal Reserve Banks
T r e a su r y ............................................................................
F o r e ig n ...............................................................................
Other2 ...............................................................................

2,828
377
643

2,923
354
1,378

3,119
324
1,051

2,023
276
1,355

3,192
311
1,458

3,091
398
1,415

3,102
351
1,209

3,315
302
1,067

2,723
282
1,148

3,206
324
793

20
21

Other Federal Reserve liabilities and c a p ita l.........
Reserve accounts3 .............................................................

5,078
32,726

4,971
32,189

4,702
31,454

5,080
31,815

4,907
32,383

4,940
32,633

4,886
31,339

4,693
32,247

4,629
33,030

4,552
29,014

June

June

July

July

July

July

July

S upplying R eserve F unds

8.875
8.875

A bsorbing R eserve F unds

End-of-month figures

W ednesday figures

1980

1980

May/7

June/7

JulyP

June

18^

June

25p

July

2p

July

9p

July

16P

July

23p

July

30p

S upplying R eserve F unds
..................................

142,105

143,741

138,316

142,608

139,278

142,517

142,067

146,439

144,892

141,019

U .S. government securities1 ......................................
Bought outright ........................................................
H eld under repurchase agreements ..................
Federal agency securities ...........................................
Bought outright ........................................................

124,277
121,371
2,906
9,230
8,877

124,515
124,058
457
8,912
8,875

119,563
118,497
1,066
9,404
8,873

121,979
121,542
437
8,936
8,875

119.841
119.841

123.078
123.078

120.418
120.418

8.875
8.875

8.875
8.875

124,386
121,275
3,111
9,426
8,873

119.577
119.577

8.875
8.875

123,519
122,797
722
8,977
8,873

28

Held under repurchase agreements ..................

353

37

531

61

104

553

29
30
31
32

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

366
602
2,475
5,155

373
215
4,167
5,559

310
562
2,808
5,669

367
798
5,039
5,489

364
4,483
5,715

420
4,486
5,658

284
7,017
5,473

173
559
7,690
5,521

478
548
4,417
5,637

2,620
4,025
5,924

33
34
35

Gold s t o c k ............................................................................
Special drawing rights certificate a c c o u n t................
Treasury currency ou tsta n d in g ......................................

11,172
2,968
13,530

11,172
3,018
13,523

11,172
3,118
13,304

11,172
2,968
13,285

11,172
3,018
13,285

11,172
3,018
13,293

11,172
3,018
13,293

11,172
3,018
13,295

11,172
3,118
13,300

11,172
3,118
13,304

36
37

Currency in circulation ....................................................
Treasury cash holdings ....................................................
D eposits, other than member bank reserves, with
Federal Reserve Banks
T r e a su r y .............................................................................
F o r e ig n ...............................................................................
Other2 ...............................................................................
Other Federal Reserve liabilities and c a p ita l.........
Reserve accounts3 .............................................................

125,694
554

127,097
529

128,068
482

126,773
545

126,766
534

128,011
526

129,127
518

128,761
513

128,122
504

128,238
492

4,523
380
1,160
5,083
32,382

3,199
691
1,332
5,003
33,612

3,954
436
500
4,540
27,920

3,549
254
1,400
5,111
32,402

2,951
295
1,525
4,851
29,831

3,590
257
1,184
4,826
31,605

3,204
301
1,014
4,580
30,804

2,956
294
1,103
4,563
35,734

2,855
246
1,178
4,570
35,007

3,073
301
415
4,448
31,646

22 Reserve bank credit outstanding
23
24
25
26
27

8.873
8.873

A bsorbing R eserve F unds

38
39
40
41
42

1. Includes securities loaned—fully guaranteed by U.S. government securities
pledged with Federal Reserve Banks—and excludes (if any) securities sold and
scheduled to be bought back under matched sale-purchase transactions.
2. Includes special deposits under the credit restraint program held by money
market mutual funds and other financial intermediaries, held by nonmember banks




against managed liabilities, and held by any institution in conjunction with the
consumer credit restraint program.
3. Includes reserves of member banks, Edge Act corporations, and U.S. agencies
and branches of foreign banks.
Note: For amounts of 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 of daily figures
Reserve classification

1979

1978
Dec.

Nov.

1980
Dec.

Jan.

Feb.

Mar.P

Apr./7

May?

June/7

Julyp

All member banks

Reserves
At Federal Reserve Banks........................
Currency and coin ....................................
Total held1 .................................................
Required ...............................................
Excess1 ..................................................
Borrowings at Reserve Banks2
6 Total .........................................................
7 Seasonal ....................................................
1
2
3
4
5

31,158
10,330
41,572
41,447
125

32,030
10,737
42,908
42,753
155

32,473
11,344
43,972
43,578
394

32,712
12,283
45,170
44,928
242

31,878
11,063
43,156
42,966
190

32,400
10,729
43,352
42,907
445

33,663
10,895
44,769
44,678
91

32,726
10,998
43,933
43,793
140

32,189
11,137
43,531
43,280
251

31,454
11,285
42,927
42,509
418

874
134

1,906
146

1,473
82

1,241
75

1,655
96

2,828
152

2,443
156

1,028
64

365
12

390
5

7,120
7,243
-123
99

6,913
6,932
-19
143

7,401
7,326
75
66

7,758
7,760
-2
26

7,168
7,205
-37
125

7,276
7,194
82
60

7,603
7,655
-52
81

7,596
7,662
-66
31

7,482
7,600
-118
18

7,272
7,278
-6
54

1,907
1,900
7
10

1,940
1,950
-10
122

2,036
2,005
31
90

2,051
2,063
-12
60

1,968
1,941
27
97

1,886
1,961
-75
137

2,150
2,173
-23
60

1,922
1,906
16
28

1,868
1,868
0
1

1,785
1,866
-81
20

16,446
16,342
104
276

16,970
17,004
-34
803

17,426
17,390
36
707

18,078
18,065
13
647

17,246
17,265
-19
729

17,029
17,135
-106
1,479

17,644
17,991
-347
1,287

17,379
17,545
-166
808

17,049
17,199
-150
319

16,642
16,815
-173
296

16,099
15,962
137
489

16,582
16,398
184
838

16,734
16,536
198
610

16,904
16,692
212
508

16,403
16,229
174
704

16,261
16,233
28
1,152

16,314
16,367
-53
1,015

16,271
16,234
37
161

16,248
16,186
62
27

16,285
16,137
148
20

n.a.
n.a.
n.a.

308
288
20

336
303
33

339
323
16

328
303
25

317
300
17

339
299
40

335
295
40

374
332
42

379
354
25

n.a.
n.a.
n.a.

195
181
14

39
18
21

40
25
15

43
23
20

90
84
6

198
193
5

162
151
11

106
97
9

64
59
5

July 16p

July 23p

July 30p

Large banks in New York City

8 Reserves held ...............................................
9 Required ..................................................
10 Excess ......................................................
11 Borrowings2 ..................................................
Large banks in Chicago

12 Reserves held ...............................................
13 Required ..................................................
14 Excess ......................................................
15 Borrowings2 ..................................................
Other large banks

16 Reserves held ...............................................
17 Required ..................................................
18 Excess ......................................................
19 Borrowings2 ..................................................
All other banks

20 Reserves held ...............................................
21 Required ..................................................
22 Excess ......................................................
23 Borrowings2 ..................................................
Edge corporations

24 Reserves held ...............................................
25 Required ..................................................
26 Excess ......................................................
U.S. agencies and branches

27 Reserves held ...............................................
28 Required ..................................................
29 Excess ......................................................

Weekly averages of daily figures for week (in 1980) ending
May 28p

June 4p

June \ \ p

32,486
10,924
43,619
43,614
5

32,871
11,096
44,174
43,706
468

31,504
11,256
42,967
42,877
90

31,815
11,413
43,435
43,271
164

32,383
10,692
43,284
43,082
-202

32,633
11,238
44,065
43,794

111

31,339
11,559
43,089
42,583
506

32,247
11,502
43,936
43,596
340

33,030
10,504
43,726
43,742
-16

29,014
11,552
40,748
40,184
564

1,123
29

459
21

401
15

396
11

318
8

348
7

215
5

332
5

354
5

629
7

7,351
7,664
-313
48

8,152
8,005
147
0

7,258
7,542
-284
0

7,499
7,619
-120
78

7,362
7,352
10
0

7,525
7,680
-155
0

7,510
7,328
182
0

7,605
7,706
-101
0

7,081
7,334
-253
0

6,734
6,732
2
241

1,813
1,859
-46
108

1,828
1,873
-45
11

1,791
1,858
-67
0

2,062
1,902
160
0

1,591
1,825
-234
0

1,927
1,891
36
21

1,972
1,858
114
0

1,849
2,009
-160
64

1,958
2,005
-47
0

1,604
1,629
-25
5

17,185
17,400
-215
899

17,155
17,232
-77
393

16,822
16,995
-173
378

16,777
17,217
-440
291

17,211
17,202
9
297

17,381
17,432
-51
299

16,868
16,896
-28
204

17,061
17,237
-176
258

16,874
17,386
-512
342

15,539
15,751
-212
357

16,289
16,208
81
68

16,272
16,127
145
55

15,925
15,921
4
23

16,222
16,133
89
27

16,367
16,351
-16
21

16,501
16,435
66
28

16,267
16,097
170
11

16,293
16,168
125
10

16,516
16,560
-44
12

16,079
15,726
353
26

348
290
58

367
307
60

386
358
28

407
353
54

346
305
41

344
322
22

364
331
33

389
371
18

421
384
37

361
346
15

188
193
-5

173
162
11

217
205
12

60
47
13

57
47
10

39
34
5

79
73
6

114
105
9

81
73
8

n.a.
n.a.
n.a.

June 18p

June 25p

July 2p

July 9p

All member banks

Reserves
At Federal Reserve Banks........................
Currency and coin ....................................
Total held1 .................................................
Required ...............................................
Excess1 ..................................................
Borrowings at Reserve Banks2
35 Total .........................................................
36 Seasonal ....................................................
30
31
32
33
34

Large banks in New York City

37 Reserves held ...............................................
38 Required ..................................................
39 Excess ......................................................
40 Borrowings2 ..................................................
Large banks in Chicago

41 Reserves held ...............................................
42 Required ..................................................
43 Excess ......................................................
44 Borrowings2 ..................................................
Other large banks

45 Reserves held ...............................................
46 Required ..................................................
47 Excess ......................................................
48 Borrowings2 ..................................................
All other banks

49 Reserves held ...............................................
50 Required ..................................................
51 Excess ......................................................
52 Borrowings2 ..................................................
Edge corporations

53 Reserves held ...............................................
54 Required ..................................................
55 Excess ......................................................
U.S. agencies and branches

56 Reserves held ...............................................
57 Required ..................................................
58 Excess ......................................................

1. Adjusted to include waivers of penalties for reserve deficiencies in accordance
with Board policy, effective Nov. 19, 1975, of permitting transitional relief on a
graduated basis over a 24-month period when a nonmember bank merged into an
existing member bank, or when a nonmember bank joins the Federal




Reserve System. For weeks for which figures are preliminary, figures by class of
bank do not add to total because adjusted data by class are not available,
2. Based on closing figures,

A6

D om estic Financial Statistics □ August 1980

1.13

FEDERAL FUNDS AND REPURCHASE AGREEMENTS

Large Member Banks*

Averages of daily figures, in millions of dollars
1980, week ending Wednesday
June 4r
One day and continuing contract

1 Commercial banks in United States............................
2 Other depository institutions, foreign banks and foreign
official institutions, and U.S. government agencies
3 Nonbank securities dealers..........................................
4 All other ...................................................................
All other maturities

5 Commercial banks in United States............................
6 Other depository institutions, foreign banks and foreign
official institutions, and U.S. government agencies
7 Nonbank securities dealers..........................................
8 All other ...................................................................
Memo: Federal funds and resale agreement loans in ma­
turities of one day or continuing contract
9 Commercial banks in United States............................
10 Nonbank securities dealers..........................................

June 18r

June 25r

46,775

51,166

50,083

47,163

47,590

54,160

52,210

48,473

47,297

17,725
1,579
14,582

16,450
964
13,599

17,316
1,046
13,394

17,717
1,541
14,979

17,294
1,242
15,568

16,388
1,585
14,992

18,005
2,128
16,030

18,172
2,332
16,640

17,198
2,369
16,119

6,042

5,353

4,815

4,397

3,962

3,670

3,829

3,755

3,737

6,534
2,704
9,325

6,607
2,829
10,592

6,441
2,807
9,106

6,139
2,809
9,470

6,102
2,956
9,164

5,950
2,856
9,444

5,996
2,956
10,067

5,948
3,036
9,637

5,846
3,319
10,921

16,311
1,964

16,167
2,921

17,002
2,617

15,128
2,173

15,351
2,117

16,268
2,444

15,892
2,457

13,073
2,317

13,278
2,507

1. Banks witlf assets of $1 billion or more as of December 31, 1977.




July 2r

July 9r

July 16r

July 23'

July 30

June l l r

Policy Instruments

Al

1.14 FEDERAL RESERVE BANK INTEREST RATES
Percent per annum

Current and previous levels
Loans to member banks
Loans to all others
under sec. 13, last par .4

Under sec. 10(b)2
Federal Reserve
Bank

Under secs. 13 and 13a1
Regular rate
Rate on
7/31/80

Effective
date

Boston ...............
New York ..........
Philadelphia .........
Cleveland ............
Richmond............
Atlanta ...............

10
10
10
10
10
10

7/29/80
7/28/80
7/29/80
7/28/80
7/28/80
7/28/80

Chicago...............
St. Louis..............
Minneapolis ........
Kansas City .........
Dallas .................
San Francisco ... .

10
10
10
10
10
10

7/28/80
7/28/80
7/28/80
7/28/80
7/28/80
7/28/80

Special rate3

Rate on
7/31/80

Effective
date

Previous
rate

Rate on
7/31/80

Effective
date

11
11
11
11
11
11

101/2
WYi
\m
10Vi
10Vi
10Vi

7/29/80
7/28/80
7/29/80
7/28/80
7/28/80
7/28/80

IIV2

IIV2
W/2
11V2
IIV2
11 Vz

11
11
11
11
11
11

7/29/80
7/28/80
7/29/80
7/28/80
7/28/80
7/28/80

11
11
11
11
11
11

10Vi
10Vi
10Vi
10V2
10V2
10V2

7/28/80
7/28/80
7/28/80
7/28/80
7/28/80
7/28/80

11V2
11Vi
1V/2
11V2
i\Vi
11 Vi

11
11
11
11
11
11

7/28/80
7/28/80
7/28/80
7/28/80
7/28/80
7/28/80

Previous
rate

Previous
rate

Rate on
7/31/80

Effective
date

12
12
12
12
12
12

13
13
13
13
13
13

7/29/80
7/28/80
7/29/80
7/28/80
7/28/80
7/28/80

14
14
14
14
14
14

12
12
12
12
12
12

13
13
13
13
13
13

7/28/80
7/28/80
7/28/80
7/28/80
7/28/80
7/28/80

14
14
14
14
14
14

Previous
rate

Range of rates in recent years5

Effective date

In effect Dec. 31, 1970 ............
1971— Jan. 8 ......................
15 .......................
19 ......................
22 ......................
29 ......................
Feb. 13 ......................
19 .......................
July 16 ......................
23 .......................
Nov 11
.........
19 .......................
Dec. 13 .......................
17 .......................
24 .......................
1973—
Jan. 15 .......................
Feb. 26 .......................
Mar. 2 .......................
Apr. 23 .......................
May 4 .......................
11 .......................
18 .......................
June 11 .......................
15 .......................
July 2 .......................
Aug. 14 ......................
23 ......................

Range (or
level)—
All F.R.
Banks

F.R.
Bank
of
N.Y.

5V2
5V4-5V2
5V4
5-5V4

5V2

5-514
5
43/4-5
43/4
43/4-5
5
43/V5
43/4

4h-43/4

4V2-43A
4V2

5
5-5
5Vz
5V2-53/4
53/4
53/4-6
6
6-6 Vi
6Y2

1

7-7 Vi
IVi

5V4
5Va
5V4

5
5
5

43/4

5
5
5

43/4
43/4
4Vi
4V2

5
5V2
5Y2
5V2

53/4

6
6
6Y1
6V2

1974— Apr. 25
30
Dec. 9
16
1975— Jan.

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

6 ..............
10 ..............

F.R.
Bank
of
N.Y.

7^-8

8
8

73/4-8
73/4

73/4
73/4

IV4
1V4
IV4
63/4-7V4

1V4
1V4
lY'4

8

24
5
7
Mar. 10
14
May 16

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

1976— Jan. 19
23
Nov. 22
26

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

5V2-6

5k>
51/4-5^
5V4

5V4

1977— Aug. 30
31
Sept. 2
Oct. 26

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

5V4-53/4
5>/4-53/4
53/4

5V4
53/4
53/4

Feb.

1
1V2

IV2

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




Range (or
level)—
All F.R.
Banks

Effective date

63/4
6V4-63/4
6!/4
6-6V4

6

63/4
63/4

6V4
6V4
6
5V2
5Vi

5V4

6

Effective date

1978— Jan.

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

1979— July 20 ..............
Aug. 17 ..............
20 ..............
Sept. 19 ..............
21 ..............
Oct. 8 ..............
10 ..............
1980— Feb. 15
19
May 29
30
June 13
June 16
July 28
July 29

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

In effect July 31, 1980

Range (or
level)—
All F.R.
Banks

F.R.
Bank
of
N.Y.

6-6 V2
6Vi
6V2-I

6Yi
6V2
1
1
1V4
1V4

7

1-1V4

7l/4-73/4
73/4

73/4

8
8-8
8V2
8V2- 9V2
9V2

8
m
8Vi
9V2
9Y2

10
10-10 V2
10^
10^-11
11
11-12
12

10
\m
10V2
11
11
12
12

12-13
13
12-13

13
13
13

10

10

12
11-12
11
10-11
10

12
11
11
10
10

4. Advances to individuals, partnerships, or corporations other than member
banks secured by direct obligations of, or obligations fully guaranteed as to prin­
cipal and interest by, the U.S. government or any agency thereof.
5. Rates under secs. 13 and 13a (as described above). For description and earlier
data, see the following publications of the Board of Governors: Banking and
Monetary Statistics, 1914-1941 and 1941-1970; Annual Statistical Digest, 1971-1975,
1972-1976, 1973-1977, and 1974-1978.

A8

D om estic Financial Statistics □ August 1980

1.15 MEMBER BANK RESERVE REQUIREMENTS1
Percent of deposits
Requirements in effect
July 31, 1980

Type of deposit, and deposit interval
in millions of dollars

Net demand2

0-2 .......................................................................................................
2-10 ......................................................................................................
10-100 ..................................................................................................
100-400 .................................................................................................
Over 400 ...............................................................................................
Time and savings2-3-4
Savings ..................................................................................................
Time5
0-5, by maturity
30-179 days .....................................................................................
180 days to 4 years.........................................................................
4 years or more ..............................................................................
Over 5, by maturity
30-179 days ....................................................................................
180 days to 4 years.........................................................................
4 years or more ..............................................................................

Previous requirements

Percent

Effective date

Percent

Effective date

7
9V2
113/4
123/4
I6V4

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

10
12
13
16^

IVi

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

3

3/16/67

3Vi

3/2/67

3

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

3Vi
3
3

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

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

5
3
3

2Vi
1

6

2Vi

1

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

Legal limits

Net demand

Reserve city banks ............................................................................
Other banks ......................................................................................
Time......................................................................................................
Borrowings from foreign banks..............................................................
1. For changes in reserve requirements beginning 1963, see Board’s Annual
Statistical Digest, 1971-1975 and for prior changes, see Board’s Annual Report for

1976, table 13.
2. (a) Requirement schedules are graduated, and each deposit interval applies
to that part of the deposits of each bank. Demand deposits subject to reserve
requirements are gross demand deposits minus cash items in process of collection
and demand balances due from domestic banks.
(b) The Federal Reserve Act specifies different ranges of requirements for
reserve city banks and for other banks. Reserve cities are designated under a
criterion adopted effective Nov. 9, 1972, by which a bank having net demand
deposits of more than $400 million is considered to have the character of business
of a reserve city bank. The presence of the head office of such a bank constitutes
designation of that place as a reserve city. Cities in which there are Federal Reserve
Banks or branches are also reserve cities. Any banks having net demand deposits
of $400 million or less are considered to have the character of business of banks
outside of reserve cities and are permitted to maintain reserves at ratios set for
banks not in reserve cities. For details, see the Board’s Regulation D.
(c) Effective Aug. 24, 1978, the Regulation M reserve requirements on net
balances due from domestic banks to their foreign branches and on deposits that
foreign branches lend to U.S residents were reduced to zero from 4 percent and
1 percent, respectively. The Regulation D reserve requirement on borrowings
from unrelated banks abroad was also reduced to zero from 4 percent.
(d) Effective with the reserve computation period beginning Nov. 16, 1978,
domestic deposits of Edge corporations are subject to the same reserve require­
ments as deposits of member banks.
3. Negotiable order of withdrawal (NOW) accounts and time deposits such as
Christmas and vacation club accounts are subject to the same requirements as
savings deposits.




Minimum

Maximum

10
7
3
0

22
14
10
22

4. The average reserve requirement on savings and other time deposits must be
at least 3 percent, the minimum specified by law.
5. Effective Nov. 2, 1978, a supplementary reserve requirement of 2 percent
was imposed on large time deposits of $100,000 or more, obligations of affiliates,
and ineligible acceptances. This supplementary requirement was eliminated with
the maintenance period beginning July 24, 1980.
Effective with the reserve maintenance period beginning Oct. 25, 1979, a mar­
ginal reserve requirement of 8 percent was added to managed liabilities in excess
of a base amount. This marginal requirement was increased to 10 percent beginning
April 3,1980, was decreased to 5 percent beginning June 12,1980, and was reduced
to zero beginning July 24, 1980. Managed liabilities are defined as large time
deposits, Eurodollar borrowings, repurchase agreements against U.S. government
and federal agency securities, federal funds borrowings from nonmember insti­
tutions, and certain other obligations. In general, the base for the marginal reserve
requirement was originally the greater of (a) $100 million or (b) the average
amount of the managed liabilities held by a member bank, Edge corporation, or
family of U.S. branches and agencies of a foreign bank for the two statement
weeks ending Sept. 26, 1979. For the computation period beginning Mar. 20, 1980,
the base was lowered by (a) 7 percent or (b) the decrease in an institution’s U.S.
office gross loans to foreigners and gross balances due from foreign offices of other
institutions between the base period (Sept. 13-26,1979) and the week ending Mar.
12, 1980, whichever was greater. For the computation period beginning May
29,1980, the base was increased by iVi percent above the base used to calculate
the marginal reserve in the statement week of May 14-21, 1980. In addition,
beginning Mar. 19, 1980, the base was reduced to the extent that foreign loans
and balances declined.
N ote . Required reserves must be held in the form of deposits with Federal
Reserve banks or vault cash.

Policy Instruments

A9

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

Savings and loan associations and
mutual savings banks

Commercial banks
Type and maturity of deposit

In effect July 31, 1980
Percent

1 Savings .....................................................................
2 Negotiable order of withdrawal accounts 2 ...............
Time accounts 4
3
4
5
6
7
8
9
10
11
12

13
14

Fixed ceiling rates by maturity

30-89 days .............. .............................................
90 days to 1 year ..................................................
1 to 2 years 5 .........................................................
2 to 2Vi years 5 ......................................................
2Vi to 4 years 5 ......................................................
4 to 6 years 6 .........................................................
6 to 8 years 6 .........................................................
8 years or more 6 ...................................... ...........
Issued to governmental units (all maturities)8 .......
Individual retirement accounts and Keogh (H.R. 10)
plans (3 years or more)89 ...............................

Effective
date

Previous maximum
Percent

5V4
5

7/1/79
1/1/74

5V4
53/4

8/1/79
1/1/80
7/1/73
7/1/73
11/1/73
12/23/74
6/1/78
6/1/78

5Vi
53/4
53/4
,
a0 7V
4
(3)I
73/4

6/1/78

73/4

6Vi
IVa
IVi
73/4

Effective
date

In effect July 31, 1980
Percent

5

Percent

51/4
(3)

' 12/23/74

1/1/80
0)
0)
11/1/73
12/23/74
6/1/78
6/1/78

(3)
53/4
53/4
6
6
a IVi
(3)I
73/4

' 12/23/74

7/6/77

6/1/78

73/4

7/6/77

7/1/73
7/1/73
1/21/70
1/21/70
1/21/70
11/1/73

(3)
6
6Vz
IVi

73/4

Special variable ceiling rates by maturity

6-month money market time deposits10.................
2Vi years or m ore..................................................

1. July 1, 1973, for mutual savings banks; July 6, 1973, for savings and loan
associations.
2. For authorized states only, federally insured commercial banks, savings and
loan associations, cooperative banks, and mutual savings banks in Massachusetts
and New Hampshire were first permitted to offer negotiable order of withdrawal
(NOW) accounts on Jan. 1, 1974. Authorization to issue NOW accounts was
extended to similar institutions throughout New England on Feb. 27, 1976, and
in New York State on Nov. 10, 1978, and in New Jersey on Dec. 28, 1979.
3. No separate account category.
4. For exceptions with respect to certain foreign time deposits see the Federal
Reserve Bulletin for October 1962 (p. 1279), August 1965 (p. 1084), and Feb­
ruary 1968 (p. 167).
5. No minimum denomination. Until July 1, 1979, a minimum of $1,000 was
required for savings and loan associations, except in areas where mutual savings
banks permitted lower minimum denominations. This restriction was removed for
deposits maturing in less than 1 year, effective Nov. 1, 1973.
6. No minimum denomination. Until July 1, 1979, minimum denomination was
$1,000 except for deposits representing funds contributed to an Individual Retire­
ment Account (IRA) or a Keogh (H.R. 10) plan established pursuant to the
Internal Revenue Code. The $1,000 minimum requirement was removed for such
accounts in December 1975 and November 1976 respectively.
7. Between July 1, 1973, and Oct. 31, 1973, there was no ceiling for certificates
maturing in 4 years or more with minimum denominations of $1,000; however,
the amount of such certificates that an institution could issue was limited to 5
percent of its total time and savings deposits. Sales in excess of that amount, as
well as certificates of less than $1,000, were limited to the 6Vi percent ceiling on
time deposits maturing in 2Vi years or more.
Effective Nov. 1, 1973, ceilings were reimposed on certificates maturing in 4
years or more with minimum denomination of $1,000. There is no limitation on
the amount of these certificates that banks can issue.
8. Accounts subject to fixed rate ceilings. See footnote 6 for minimum denom­
ination requirements.
9. Effective January 1, 1980, commercial banks are permitted to pay the same
rate as thrifts on IRA and Keogh accounts and accounts of governmental units
when such deposits are placed in the new 2Vi-year or more variable ceiling cer­
tificates or in 26-week money market certificates regardless of the level of the
Treasury bill rate.
10. Must have a maturity of exactly 26 weeks and a minimum denomination of
$10,000, and must be nonnegotiable.
11. Commercial banks, savings and loan associations, and mutual savings banks
were authorized to offer money market time deposits effective June 1, 1978. The
ceiling rate for commercial banks on money market time deposits entered into
before June 5, 1980, is the discount rate (auction average) on most recently issued
six-month U.S. Treasury bills. Until Mar. 15, 1979, the ceiling rate for savings
and loan associations and mutual savings banks was Va percentage point higher
than the rate for commercial banks. Beginning March 15, 1979, the VVpercentagepoint interest differential is removed when the six-month Treasury bill rate is 9
percent or more. The full differential is in effect when the six-month bill rate is
8^4 per cent or less. Thrift institutions may pay a maximum 9 percent when the
six-month bill rate is between 83/4 and 9 percent. Also effective March 15, 1979,
interest compounding was prohibited on six-month money market time deposits
at all offering institutions. The maximum allowable rates in July for commercial
banks were as follows: July 3, 8.347; July 10, 8.364; July 17, 8.360; July 24, 8.156;
July 31, 8.526. The maximum .allowable rates in July for thrift institutions were




Effective
date

7/1/79
1/1/74

7/1/73
(3)
5Vi

Effective
date

Previous maximum

0)

0
1/21/70
1/21/70
1/21/70
11/1/73

nn

$
as follows: July 3, 8.597; July 10, 8.614; July 17, 8.610; July 24, 8.406; July 31,
8.776. Effective for all six-month money market certificates issued beginning June
5, 1980, the interest rate ceilings will be determined by the discount rate (auction
average) of most recently issued six-month U.S. Treasury bills as follows:
Bill rate

Commercial bank ceiling

Thrift ceiling

Treasury yield

Commercial bank ceiling

Thrift ceiling

8.75 and above
bill rate + Va percent
bill rate + Va percent
8.50 to 8.75
bill rate + Va percent
9.00
7.50 to 8.50
bill rate -I- Va percent
bill rate + Vi percent
7.25 to 7.50
7.75
bill rate -I- Vi percent
Below 7.25
7.75
7.75
The prohibition against compounding interest in these certificates continues. In
addition, during the period May 29, 1980, through Nov. 1, 1980, commercial banks
may renew maturing six-month money market time deposits for the same depositor
at the thrift institution ceiling interest rate.
12. Effective Jan. 1, 1980, commercial banks, savings and loan associations, and
mutual savings banks were authorized to offer variable-ceiling nonnegotiable time
deposits with no required minimum denomination and with maturities of 2Vi years
or more. The maximum rate for commercial banks is 3/4 percentage point below
the yield on 2Vi-year U.S. Treasury securities; the ceiling rate for thrift institutions
is Va percentage point higher than that for commercial banks. Effective Mar. 1,
1980, a temporary ceiling of 113/a per cent was placed on these accounts at com­
mercial banks; the temporary ceiling is 12 percent at savings and loan associations
and mutual savings banks. Effective for all variable ceiling nonnegotiable time
deposits with maturities of IVi years or more issued beginning June 2, 1980, the
ceiling rates of interest will be determined as follows:
12.00 and above
11.75
12.00
9.50 to 12.00
Treasury yield- Va percent
Treasury yield
Below 9.50
9.25
9.50
Interest may be compounded on these time deposits. The ceiling rates of interest
at which these accounts may be offered vary biweekly. Throughout July, the
maximum allowable rate at commercial banks was 9.25, and at thrift institutions
it was 9.50.
13. Between July 1, 1979, and Dec. 31, 1979, commercial banks, savings and
loan associations, and mutual savings banks were authorized to offer variable
ceiling accounts with no required minimum denomination and with maturities of
4 years or more. The maximum rate for commercial banks was 1V4 percentage
points below the yield on 4-year U.S. Treasury securities; the ceiling rate for thrift
institutions was Va percentage point higher than that for commercial banks.
Note. Before Mar. 31, 1980, the maximum rates that could be paid by federally
insured commercial banks, mutual savings banks, and savings and loan associations
were 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. Title II of the Depository Institutions Deregulation and Monetary
Control Act of 1980 (P.L. 96-221) transferred the authority of the agencies to
establish maximum rates of interest payable on deposits to the Depository Insti­
tutions Deregulation Committee. The maximum rates on time deposits in denom­
inations of $100,000 or more with maturities of 30-89 days were suspended in June
1970; such deposits maturing in 90 days or more were suspended in May 1973. For
information regarding previous interest rate ceilings on all types of accounts, see
earlier issues of the Federal Reserve Bulletin, the Federal Home Loan Bank
Board Journal, and the Annual Report of the Federal Deposit Insurance Corpo­
ration.

A 10
1.17

D om estic Financial Statistics □ August 1980
FEDERAL RESERVE OPEN MARKET TRANSACTIONS
Millions of dollars
1979
Type of transaction

1977

1978

1980

1979
Dec.

Jan.

Feb.

Mar.

Apr.

May

June

U .S. G overnment S ecurities
Outright transactions (excluding matched salepurchase transactions)

Treasury bills

13,738
7,241
0
2,136

16,628
13,725
0
2,033

16,623
7,480
0
2,900

2,464
378
0
0

0
1,722
0
790

187
1,590
0
400

1,370
0
0
0

2,428
108
0
0

838
232
0
0

322
0
274
0

3,017
0
4,499
2,500

1,184
0
-5,170
0

3,203
0
17,339
-11,308
2,600

90
0
571
-727
0

0
0
383
-403
0

0
0
1,822
-2,177
0

292
0
921
-809
0

109
0
179
-459
0

155
0
1,670
-5,276
0

121
0
412
-1,479
0

2,833
0
-6,649

4,188
0
-178

2,148
0
-12,693
7,508

398
0
-571
727

0
0
-383
403

0
0
-374
1,377

355
0
-921
809

373
0
-179
459

405
0
-1,302
3,000

465
0
-412
1,479

758
0
584

1,526
0
2,803

523
0
-4,646
2,181

81
0
0
0

0
0
0
0

0
0
-1,364
450

107
0
0
0

62
0
0
0

133
0
-25
1,300

164
0
0
0

553
0
1,565

1,063
0
2,545

454
0
0
1,619

51
0
0
0

0
0
0
0

0
0
-84
350

81
0
0
0

64
0
0
0

216
0
-342
976

129
0
0
0

Gross purchases ........................................................
Gross sales .................................................................
Redemptions ...............................................................

20,898
7,241
4,636

24,591
13,725
2,033

22,950
7,480
5,500

3,084
378
0

0
1,722
790

187
1,590
400

2,206
0
0

3,036
108
0

1,747
232
0

1,200
0
0

25
26

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

425,214
423,841

511,126
510,854

626,403
623,245

53,681
49,738

53,025
55,557

54,541
54,584

55,658
54,636

57,316
57,479

49,934
50,965

50,590
52,076

27
28

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

178,683
180,535

151,618
152,436

107,374
107,291

7,251
6,643

5,704
6,872

5,407
4,787

6,682
6,379

3,029
3,952

7,717
4,811

12,810
15,258

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

5,798

7,743

6,896

-629

-1,148

-1,140

1,486

2,168

5,452

238

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24

Gross purchases ........................................................
Gross sales .................................................................
Exchange ......................................................................
Redemptions ...............................................................

Others within 1 year1
Gross purchases ........................................................
Gross sales .................................................................
Maturity shift .............................................................
Exchange ......................................................................
Redemptions ...............................................................

1 to 5 years
Gross purchases ........................................................
Gross sales .................................................................
Maturity shift .............................................................
Exchange ......................................................................

5 to 10 years
Gross purchases ........................................................
Gross sales .................................................................
Maturity shift .............................................................
Exchange ......................................................................

Over 10 years
Gross purchases ........................................................
Gross sales .................................................................
Maturity shift .............................................................
Exchange ......................................................................

All maturities'

F ederal A gency O bligations

30
31
32

Outright transactions
Gross purchases ........................................................
Gross sales .................................................................
Redemptions ...............................................................

1,433
0
223

301
173
235

853
399
134

0
0
5

0
0
0

0
0
*

0
0
5

668
0
2

0
0
0

0
0
2

33
34

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

13,811
13,638

40,567
40,885

37,321
36,960

2,383
2,863

3,049
3,543

2,403
2,372

1,883
1,834

483
563

1,611
1,258

3,035
3,351

35

Net change in federal agency o b lig a tio n s..............

1,383

-426

681

-485

-494

31

45

586

353

-318

B ankers A cceptances

36
37

Outright transactions, n e t ...........................................
Repurchase agreements, net ....................................

-196
159

0
-366

0
116

0
434

0
-704

0
205

0
-34

0
-171

0
366

0
7

38

Net change in bankers accep ta n ces.........................

-37

-366

116

434

-704

205

-34

-171

366

7

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

7,143

6,951

7,693

-679

-2,345

-903

1,497

2,582

6,171

-73

1. Both gross purchases and redemptions include special certificates created
when the Treasury borrows directly from the Federal Reserve, as follows (millions
of dollars): September 1977, 2,500; March 1979, 2,600.




N ote . Sales, redemptions, and negative figures reduce holdings of the System
Open Market Account; all other figures increase such holdings. Details may not
add to totals because of rounding.

Reserve Banks

A ll

1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements
Millions of dollars
Wednesday

July 2p

July 9p

July 16p

End of month

July 23p

July 30?

MayP

JuneP

July?

Consolidated condition statement
Assets
11,172
3,018
393

11,172
3,018
383

11,172
3,018
389

11,172
3,118
391

11,171
3,118
391

11,172
2,968
401

11,172
3,018
408

11,172
3,118
399

420
0

284
0

559
0

548
0

2,620
0

602
0

215
0

562
0

0
0

0
0

0
173

0
478

0
0

0
366

0
373

0
310

8,875
0

8,875
0

8,873
104

8,873
553

8,873
0

8,877
353

8,875
37

8,873
531

48,801
0
58,174
16,103
123,078
0
123,078

46,141
0
58,174
16,103
120,418
0
120,418

48,520
0
58,174
16,103
122,797
722
123,519

46,998
0
58,174
16,103
121,275
3,111
124,386

45,300
0
58,174
16,103
119,577
0
119,577

47,972
0
57,425
15,974
121,371
2,906
124,277

49,781
0
58,174
16,103
124,058
457
124,515

44,220
0
58,174
16,103
118,497
1,066
119,563

17 Total loans and securities .........................................

132,373

129,577

133,228

134,838

131,070

134,475

134,015

129,839

18 Cash items in process of collection............................
19 Bank premises .........................................................
Other assets
20 Denominated in foreign currencies2 ......................
21 All other ..............................................................

11,281
441

13,636
443

14,813
446

10,365
447

9,923
445

8,386
448

9,375
441

8,312
445

2,340
2,877

2,386
2,644

2,205
2,870

2,170
3,020

2,215
3,264

2,304
2,403

2,339
2,779

2,201
3,022

22 Total assets ..............................................................

163,895

163,259

168,141

165,521

161,597

162,557

163,547

158,508

23 Federal Reserve notes...............................................
Deposits

115,638

116,737

116,368

115,717

115,816

113,118

114,502

115,654

Reserve accounts
24
Member banks ..................................................
25
Edge Act corporations ......................................
26
U.S. agencies and branches of foreign banks---27
Total ..................................................................
28 Special Deposits—Credit Restraint Program .........
29 U.S. Treasury—General account ..........................
30 Foreign—Official accounts ....................................
31 Other .......................................................................

31,328
251
26
31,605
580
3,590
257
604

30,366
375
63
30,804
606
3,204
301
408

35,241
376
117
35,734
643
2,956
294
460

34,422
525
60
35,007
712
2,855
246
466

31,183
463
0
31,646
0
3,073
301
415

31,804
376
202
32,382
550
4,523
380
610

33,187
397
28
33,612
578
3,199
691
754

27,548
372
0
27,920
0
3,954
436
500

1 Gold certificate account ...........................................
2 Special drawing rights certificate account.................
3 Coin .........................................................................
Loans
4 Member bank borrowings......................................
5 Other ...................................................................
Acceptances
6 Bought outright ....................................................
7 Held under repurchase agreements ......................
Federal agency obligations
8 Bought outright ....................................................
9 Held under repurchase agreements ......................
U.S. government securities
Bought outright
10
Bills ..................................................................
11
Certificates—Special .........................................
12
Notes ................................................................
13
Bonds ................................................................
14
Total1 ................................................................
15 Held under repurchase agreements ......................
16 Total U.S. government securities .............................

Liabilities

32 Total deposits ...........................................................

36,636

35,323

40,087

39,286

35,435

38,445

38,834

32,810

33 Deferred availability cash items ...............................
34 Other liabilities and accrued dividends3 .....................

6,795
2,239

6,619
2,007

7,123
1,991

5,948
2,002

5,898
1,880

5,911
2,389

5,208
2,250

5,504
1,957

35 Total liabilities .........................................................

161,308

160,686

165,569

162,953

159,029

159,863

160,794

155,925

36 Capital paid in .........................................................
37 Surplus .....................................................................
38 Other capital accounts .............................................

1,170
1,145
272

1,170
1,145
258

1,172
1,145
255

1,174
1,145
249

1,175
1,145
248

1,164
1,145
385

1,169
1,145
439

1,175
1,145
263

39 Total liabilities and capital accounts..........................

163,895

163,259

168,141

165,521

161,597

162,557

163,547

158,508

40 Memo: Marketable U.S. government securities held in
custody for foreign and international account----

82,071

82,298

82,267

81,860

82,246

75,691

82,226

82,862

Capital Accounts

Federal Reserve note statement
133,159

133,475

133,650

134,119

134,469

131,334

132,861

134,545

Gold certificate account ........................................
Special drawing rights certificate account ..............
Eligible paper .......................................................
U.S. government and agency securities.................

11,172
3,018
120
118,849

11,172
3,018
13
119,272

11,172
3,018
8
119,452

11,172
3,118
12
119,817

11,172
3,118
1,056
119,123

11,172
2,968
42
117,152

11,172
3,018
29
118,642

11,172
3,118
86
120,169

46 Total collateral .........................................................

133,159

133,475

133,650

134,119

134,469

131,334

132,861

134,545

41 Federal Reserve notes outstanding (issued to Bank) .
Collateral held, against notes outstanding

42
43
44
45

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




2. Beginning Dec. 29,1978, such assets are revalued monthly at market exchange
rates.
3. Includes exchange-translation account reflecting, beginning Dec. 29, 1978,
the monthly revaluation at market exchange rates of foreign-exchange commit­
ments.

A 12

D om estic Financial Statistics □ A ugust 1980

1.19 FEDERAL RESERVE BANKS

Maturity Distribution of Loan and Security Holdings

Millions of dollars

Type and maturity groupings
July 9

July 2

Wednesday

End of month

1980

1980

July 16

July 23

July 30

May 31

June 30

July 31

1 Loans—Total .............................................................
2 Within 15 days........................................................
3 16 days to 90 days..................................................
4 91 days to 1 year ....................................................

420
416
4
0

284
281
3
0

559
559
0
0

548
547
1
0

2,620
2,618
2
0

602
594
8
0

215
211
4
0

562
560
2
0

5 Acceptances—Total ....................................................
6 Within 15 days .......................................................
7 16 days to 90 days..................................................
8 91 days to 1 year ....................................................

0
0
0
0

0
0
0
0

173
173
0
0

478
478
0
0

0
0
0
0

366
366
0
0

373
373
0
0

310
310
0
0

9 U.S. Government securities—Total ............................
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.........................................................

123,078
3,772
27,352
30,797
33,418
13,601
14,138

120,418
3,566
24,909
30,786
33,418
13,601
14,138

123,519
6,201
26,522
29,639
33,418
13,601
14,138

124,386
6,710
26,285
30,234
33,418
13,601
14,138

119,577
3,312
25,461
29,647
33,418
13,601
14,138

124,277
4,821
28,363
31,349
32,298
13,437
14,009

124,515
3,633
28,039
31,686
33,418
13,601
14,138

119,563
4,693
21,908
31,328
33,895
13,601
14,138

16 Federal Agency obligations—T otal.............................
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.........................................................

8,875
62
518
1,584
4,702
1,265
744

8,875
100
714
1,351
4,701
1,265
744

8,977
141
715
1,353
4,774
1,250
744

9,426
637
761
1,269
4,765
1,250
744

8,873
83
761
1,310
4,724
1,251
744

9,230
528
417
1,612
4,670
1,259
744

8,912
223
518
1,499
4,663
1,265
744

9,404
615
761
1,310
4,770
1,204
744

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

1.20 BANK DEBITS AND DEPOSIT TURNOVER
Debits are shown in billions of dollars, turnover as ratio of debits to deposit. Monthly data are at annual rates.
1980'
Bank group, or type of customer

1977'

1978'

1979'
Feb.

Mar.

Apr.

May

June

61,354.5
25,508.0
35,846.4

61.574.7
24,788.9
36.785.7

137.8
79.0
604.8
821.6

158.7
80.2
587.5
826.4

202.9
871.8
131.2

201.5
817.1
133.7

9.9
8.9
3.6
4.3

10.2
8.6
3.4
4.2

Debits to demand deposits1 (seasonally adjusted)
1 All commercial banks .................................................
2 Major New York City banks......................................
3 Other banks ..............................................................

34,322.8
13,860.6
20,462.2

40,297.8
15,008.7
25,289.1

49,750.7
18,512.2
31,238.5

59,422.0
23,035.7
36,386.3

59,257.1
22,936.8
36,320.3

57,876.9
23,792.6
34,084.2

Debits to savings deposits2 (not seasonally adjusted)
4
5
6
7

ATS/NOW3 ................................................................
Business4 ...................................................................
Others5 .......................................................................
All accounts ..............................................................

5.5
21.7
152.3
179.5

17.1
56.7
359.7
432.9

83.3
77.4
557.6
718.2

118.0
79.3
616.6
813.9

125.4
84.8
679.0
889.2

167.7
86.8
720.7
975.2

Demand deposit turnovisr1 (seasonallyf adjusted)
8 All commercial banks.........
9 Major New York City banks
10 Other banks ......................

129.2
503.0
85.9

139.4
541.9
96.8

163.4
646.2
113.2

190.2
741.2
129.3

190.4
738.0
129.6

196.2
805.9
128.4

Savings deposit turnover2 (not seasonally adjusted)
11
12
13
14

ATS/NOW3 ................................................................
Business4 ...................................................................
Others5 .......................................................................
All accounts ..............................................................

6.5
4.1
1.5
1.7

1. Represents accounts of individuals, partnerships, and corporations, and of
states and political subdivisions.
2. Excludes special club accounts, such as Christmas and vacation clubs.
3. Accounts authorized for negotiable orders of withdrawal (NOW) and accounts
authorized for automatic transfer to demand deposits (ATS). ATS data availability
starts with December 1978.
4. Represents corporations and other profit-seeking organizations (excluding
commercial banks but including savings and loan associations, mutual savings
banks, credit unions, the Export-Import Bank, and federally sponsored lending
agencies).
5. Savings accounts other than NOW; business; and, from December 1978, ATS.




7.0
5.1
1.7
1.9

7.8
7.2
2.9
3.3

8.8
8.3
3.5
4.1

9.1
9.4
3.9
4.5

12.1
10.2
4.2
5.1

N ote : Historical data for the period 1970 through June 1977 have been esti­
mated; these estimates are based in part on the debits series for 233 SMSA’S,
which were available through June 1977. Back data are available from Publications
Services, Division of Administrative Services, Board of Governors of the Federal
Reserve System, Washington, D.C. 20551. Debits and turnover data for savings
deposits are not available before July 1977.

Monetary Aggregates

A 13

1.21 MONEY STOCK MEASURES AND COMPONENTS
Billions of dollars, averages of daily figures

Item

1976
Dec.

1977
Dec.

1978
Dec.

1979
Dec.
Feb.

Apr.

May

Seasonally adjusted
M easures 1
1
2
3
4

M -1A ......................................................
M-1B ......................................................
M-2 ..........................................................
M-3 ..........................................................

5 L2 ...............................................

305.0
307.7
1.166.7
1.299.7
1,523.5

328.4
332.5
1,294.1
1,460.3
1,715.5

80.7
224.4
447.7
396.6
118.0

88.7
239.7
486.5
454.9
145.2

351.6
359.9
1,401.5'
1.623.6
1.927.7

369.7
386.4
1,525.5
1,775.5'
2,141.1'

370.8
388.1
1,534.5'
1,786.9'
2,155.2'

373.7
391.3
1,546.7'
1,804.5'
2,175.9'

373.1
391.2
1,553.1'
1,811.1'
2,190.2'

367.6
386.6
1,549.8'
1,811.1'
2,200.4'

367.8
386.1'
1,562.4'
1,824.5'
2,216.8'

371.3
390.9
1,585.2
1,843.9

106.3
263.4
416.7'
656.5
219.4

107.3
263.5
411.8'
661.8'
222.5

108.1
265.6
403.1
671.4'
228.6

108.9
264.2
391.9'
687.6'
230.7'

109.0
258.6
377.3
708.3
234.2'

110.1
257.6'
372.7'
718.4
235.0'

111.0
260.3
380.6
719.8
230.7

C omponents

6
7
8
9
10

Currency ....................................
Demand deposits ........................
Savings deposits ..........................
Small-denomination time deposits3
Large-denomination time deposits4

97.6
253.9
476.1
533.8
194.7

Not seasonally adjusted
Measures1
11
12
13
14
15

M-1A ................................................
M-1B ................................................
M-2 ....................................................
M-3 ....................................................
L2 ......................................................

16
17
18
19
20
21
22
23

Currency ...........................................
Demand deposits ...............................
Other checkable deposits5 .................
Overnight RPs and Eurodollars6 .........
Money market mutual funds ..............
Savings deposits .................................
Small-denomination time deposits3 . ...
Large-denomination time deposits4 . ...

313.5
316.1
1,169.1
1,303.8
1,527.1

337.2
341.3
1,295.9
1,464.5
1,718.5

360.9
369.3
1,403.7
1,629.2
1,931.1

82.1
231.3
2.7
13.6
3.4
444.9
393.5
119.7

90.3
247.0
4.1
18.6
3.8
483.2
451.3
147.7

99.4
261.5
8.3
23.9
10.3
472.9
529.8
198.2

379.2
396.0
1,527.3'
1,780.8'
2,143.6'

375.6
392.9
1,537.8'
1,792.2'
2,161.8'

365.5
383.0
1,538.6'
1,796.6'
2,173.3'

366.3
384.4
1,550.0'
1,808.8'
2,190.8'

370.9
389.9
1,558.0'
1,817.2'
2,208.4'

362.1
380.5
1,559.5'
1,820.4'
2,210.6'

370.1
389.7
1,587.0
1,843.3
n.a.

106.5
269.1
17.3
26.7'
49.1
409.2
662.9'
224.4

106.8
258.7
17.6
27.1
56.7
400.0
674.6'
228.8

107.9
258.4
18.0
24.6
60.9'
392.2
690.9
231.6'

108.7
262.2
19.0
20.3
60.4'
379.7
710.9
232.1'

109.9
252.2
18.4
21.4'
66.8'
374.4'
719.4'
233.8'

111.1
259.0
19.6
22.6
74.2
382.8
720.6
228.3

C omponents

1. Composition of the money stock measures is as follows:
M-l A: Averages of daily figures for (1) demand deposits at all commercial banks
other than those due to domestic banks, the U.S. government, and foreign banks
and official institutions less cash items in the process of collection and Federal
Reserve float; and (2) currency outside the Treasury, Federal Reserve Banks, and
the vaults of commercial banks.
M-1B: M-1A plus negotiable order of withdrawal and automatic transfer service
accounts at banks and thrift institutions, credit union share draft accounts, and
demand deposits at mutual savings banks.
M-2: M-1B plus savings and small-denomination time deposits at all depositary
institutions, overnight repurchase agreements at commercial banks, overnight
Eurodollars held by U.S. residents other than banks at Caribbean branches of
member banks, and money market mutual fund shares.
M-3: M-2 plus large-denomination time deposits at all depositary institutions
and term RPs at commercial banks and savings and loan associations.




108.2
271.0
16.7
25.3
43.6
413.8
651.5
223.0

2. L: M-3 plus other liquid assets such as term Eurodollars held by U.S. residents
other than banks, bankers acceptances, commercial paper, Treasury bills and other
liquid Treasury securities, and U.S. savings bonds.
3. Small-denomination time deposits are those issued in amounts of less than
$100,000.
4. Large-denomination time deposits are those issued in amounts of $100,000
or more and are net of the holdings of domestic banks, thrift institutions, the U.S.
government, money market mutual funds, and foreign banks and official institu­
tions.
5. Includes ATS and NOW balances at all institutions, credit union share draft
balances, and demand deposits at mutual savings banks.
6. Overnight (and continuing contract) RPs are those issued by commercial
banks to the nonbank public, and overnight Eurodollars are those issued by Ca­
ribbean branches of member banks to U.S. nonbank customers.
N ote . Latest monthly and weekly figures are available from the Board’s
H.6(508) release. Back data are available from the Banking Section, Division of
Research and Statistics.

A14

D om estic Financial Statistics □ A ugust 1980

1.22 AGGREGATE RESERVES AND DEPOSITS Member Banks
Billions of dollars, averages of daily figures
Item

1977
Dec.

1978
Dec.

1979
Dec.

1979'
Nov.

1980

Dec.

Jan.

Feb.

Mar.

Apr.

May

June

Seasonally adjusted
1 Reserves1 ............................................................................

36.00

41.16

43.57

43.06

43.57

43.44

43.35

43.68

44.91

44.46

43.98

2 Nonborrowed .....................................................................
3 Required............................................................................
4 Monetary base2 ..................................................................

35.43
35.81
127.6

40.29
40.93
142.2

42.10
43.13
153.8

41.15
42.81
152.8

42.10
43.13
153.8

42.20
43.19
154.7

41.70
43.14
155.6

40.85
43.47
156.6

.42.45
44.64
157.9

43.44
44.28
158.5

43.60
43.77
158.9

5 Deposits subject to reserve requirements3 ............................

567.6

616.1

644.4

641.9

644.4

643.7

647.2

649.1

655.4

656.8

658.2

6 Time and savings................................................................
Demand
7 Private ............................................................................
8 U.S. government............................................................

385.6

428.8

451.1

450.1

451.1

451.9

454.4

457.9

464.2

467.7

467.8

178.5
3.5

185.1
2.2

191.5
1.8

190.0
1.9

191.5
1.8

189.5
2.3

190.9
1.9

189.4
1.8

188.7
2.4

187.3
1.8

188.7
1.7

Not seasonally adjusted
9 Monetary base2 ..................................................................

129.8

144.6

156.3

153.5

156.3

155.9

154.0

154.9

157.6

157.8

158.5

10 Deposits subject to reserve requirements3 ............................

575.3

624.0

652.6

642.2

652.6

652.1

643.9

648.0

657.7

651.5

657.1

11 Time and savings................................................................
Demand
Private ............................................................................
U.S. government............................................................

386.4

429.6

452.0

449.2

452.0

454.6

455.8

460.6

464.7

467.7

467.4

185.1
3.8

191.9
2.5

198.6
2.0

191.3
1.7

198.6
2.0

195.4
2.1

186.2
1.8

185.5
1.9

190.4
2.6

182.1
1.7

187.5
2.2

12
13

1. Member bank reserve series reflect actual reserve requirement percentages
with no adjustment to eliminate the effect of changes in Regulations D and M.
Effective Nov. 2, 1978, a supplementary reserve requirement of 2 percentage
points was imposed on time deposits of $100,000 or more. This action increased
required reserves approximately $3.0 billion in the week beginning Nov. 16, 1978.
Effective Oct. 11, 1979, an 8 percentage point marginal reserve requirement was
imposed on “managed liabilities” (liabilities that have been actively used to finance
rapid expansion in bank credit). On Oct. 25, 1979, reserves of Edge Act corpo­
rations were included in member bank reserves. This action raised required re­
serves $318 million. Effective Mar. 12, 1980, the marginal reserve requirement of
8 percentage points was raised to 10 percentage points. In addition the base upon
which the marginal reserve requirement is calculated was reduced. This action
increased required reserves about $1,693 million in the week ending April 2, 1980.




2. Includes total reserves (member bank reserve balances in the current week
plus vault cash held two weeks earlier); currency outside the U.S. Treasury, Federal
Reserve Banks, and the vaults of commercial banks; and vault cash of nonmember
banks.
3. 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. government, less cash items in process of collection and
demand balances due from domestic commercial banks.
N ote . Latest monthly and weekly figures are available from the Board’s
H.3(502) statistical release. Back data and estimates of the impact on required
reserves and changes in reserve requirements are available from the Banking
Section, Division of Research and Statistics.

Monetary Aggregates

A 15

1.23 LOANS AND SECURITIES All Commercial Banksi
Billions of dollars; averages of Wednesday figures
Category

1977
Dec.

1980

1979
Dec.

1978
Dec.

May

June

1977
Dec.

Seasonally adjusted
1 Total loans and securities2 ........................

891.1

2 U.S. Treasury securities ..........................
3 Other securities ......................................
4 Total loans and leases2 ............................
5 Commercial and industrial loans..........
6 Real estate loans .................................
7 Loans to individuals.............................
8 Security loans ......................................
9 Loans to nonbank financial institutions .
10 Agricultural loans.................................
11 Lease financing receivables .................
12 All other loans ....................................

99.5
159.6
632.1
211.25
175.25
138.2
20.6
25.85
25.8
5.8
29.5

1,014.33

1,132.54

93.4
173.13
747.83
246.5 6
210.5
164.9
19.4
27.17
28.2
7.4
43.63

93.8
191.5
847.24
290.54
242.44
182.7
18.3
30.34
31.0
9.5
42.6

1978
Dec.

1979
Dec.

1980
May

June

Not seasonally adjusted
1,155.1
94.6
199.7
860.7
297.8
250.6
178.3c
15.8
29.1
32.3
10.3
46.6C

1,152.1
97.0
201.5
853.6
296.4
250.2
174.5
15.7
27.7
32.4
10.5
46.1

899.1
100.7
160.2
638.3
212.65
175.55
139.0
22.0
26.35
25.7
5.8
31.5

1,023.83

1,143.04

94.6
173.93
755.43
248.26
210.9
165.9
20.7
27.67
28.1
7.4
46.63

95.0
192.3
855.74
292.44
242.94
183.8
19.6
30.84
30.8
9.5
45.9

1,152.1
95.2
200.1
856.8
298.5
249.6
176.9C
15.0
28.9
32.2
10.3
45.4C

1,155.7
97.3
202.1
856.3
298.1
250.0
174.0
15.8
28.0
32.6
10.5
47.4

M emo :

13 Total loans and securities plus loans sold2’9

895.9

1,018.I3

1,157.7

1,155.0

903.9

1,027.63

1,145.74’8

1154.8

1,158.6

14 Total loans plus loans sold2 9 ...................
15 Total loans sold to affiliates9 ...................
16 Commercial and industrial loans plus loans
sold9 ................................................
17 Commercial and industrial loans sold9 ..
18 Acceptances held .................................
19 Other commercial and industrial loans ..
20
To U.S. addressees11 ........................
21
To non-U.S. addressees ...................
22 Loans to foreign banks............................
23 Loans to commercial banks in the
United States.................................

636.9
4.8

751.63
3.8

850.004’8
2.88

863.3
2.6

856.5
2.8

643.0
4.8

759.23
3.8

858.44’8
2.88

859.4
2.6

859.1
2.8

213.95
2.7
7.5
203.75
193.85
9.95
13.5

248.56’10
1.9!°
6.8
239.7
226.6
13.1
21.2

292.3 4’8
1.88
8.5
282.0
263.2
18.8
18.7

299.5
1.7
8.4
289.4
269.4
20.0
21.1

298.3
1.9
8.5
287.9
268.0
19.9
20.0

215.35
2.7
8.6
203.95
193.75
10.35
14.6

250.16’10
1.910
7.5
240.9
226.5
14.4
23.0

294.24’8
1.88
9.4
283.1
263.2
19.8
20.1

300.2
1.7
8.0
290.5
270.5
19.9
20.3

299.9
1.9
8.4
289.7
269.8
19.9
20.7

92.4

94.7

56.9

88.2

93.4

54.1

57.3

1,135.34’8

77.8

1. Includes domestic chartered banks; U.S. branches, agencies, and New York
investment company subsidiaries of foreign banks; and Edge Act corporations.
2. Excludes loans to commercial banks in the United States.
3. As of Dec. 31, 1978, total loans and securities were reduced by $0.1 billion.
“Other securities” were increased by $1.5 billion and total loans were reduced by
$1.6 billion largely as the result of reclassifications of certain tax-exempt obliga­
tions. Most of the loan reduction was in “all other loans.”
4. As of Jan. 3, 1979, as the result of reclassifications, total loans and securities
and total loans were increased by $0.6 billion. Business loans were increased by
$0.4 billion and real estate loans by $0.5 billion. Nonbank financial loans were
reduced by $0.3 billion.
5. As of Dec. 31, 1977, as the result of loan reclassifications, business loans
were reduced $0.2 billion and nonbank financial loans $0.1 billion; real estate
loans were increased $0.3 billion.
6. As of Dec. 31, 1978, commercial and industrial loans were reduced $0.1
billion as a result of reclassifications.




60.3

81.9

7. As of Dec. 1, 1978, nonbank financial loans were reduced $0.1 billion as the
result of reclassification.
8. As of Dec. 1, 1979, loans sold to affiliates were reduced $800 million and
commercial and industrial loans sold were reduced $700 million due to corrections
of two banks in New York City.
9. Loans sold are those sold outright to a bank’s own foreign branches, non­
consolidated nonbank affiliates of the bank, the bank’s holding company (if not
a bank), and nonconsolidated nonbank subsidiaries of the holding company.
10. As of Dec. 31, 1978, commercial and industrial loans sold outright were
increased $0.7 billion as the result of reclassifications, but $0.1 billion of this
amount was offset by a balance sheet reduction of $0.1 billion as noted above.
11. United States includes the 50 states and the District of Columbia.
N ote . Data are prorated averages of Wednesday data for domestic chartered
banks, and averages of current and previous month-end data for foreign-related
institutions.

A 16

D om estic Financial Statistics □ August 1980

1.24 ASSETS AND LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS Last-Wednesday-of-Month Series
Billions of dollars except for number of banks
1979

1980

Account
Sept.

Oct.

Nov.

Dec.

Jan.

Feb.

1,112.1
833.8
53.6
249.4
530.9
91.9
186.4

1,118.4
839.0
54.0
249.8
535.3
91.5
187.8

1,118.0
836.7
52.6
248.0
536.1
92.1
189.3

1,143.3
860.1
62.9
253.4
543.7
92.5
190.7

1,133.4
849.7
57.2
252.6
540.0
92.4
191.2

1,143.6
857.0
58.0
256.2
542.9
93.6
192.9

148.5
16.7
31.6
40.7
59.5

160.7
16.6
34.1
45.5
64.6

158.1
18.2
34.7
43.7
61.5

146.4
17.9
28.4
37.7
62.4

148.4
17.3
28.3
43.7
59.0

149.9
17.1
30.7
43.4
58.7

Mar.

Apr.

M ayr

June

July

1,142.8
854.6
55.6
. 258.3
540.7
94.2
193.9

1,151.9
861.2
62.4
259.2
539.6
93.5
197.2

1,150.5
857.1
67.4
256.0
533.7
93.9
199.5

1,153.3
857.1
66.6
256.7
533.8
95.1
201.0

1,158.3
857.4
66.8
256.4
534.1
97.6
203.3

153.8
16.8
34.2
43.1
59.8

168.2
16.8
33.2
49.7
68.6

172.4
17.8
37.9
47.9
68.9

150.5
17.4
29.5
45.5
58.0

154.1
17.7
32.1
44.7
59.6

D omestically C hartered
C ommercial B anks 1

1 Loans and investments .............................
2 Loans, gross .................................................
3 Interbank ....................................................
4 Commercial and industrial ..................
5 Other ..........................................................
6 U.S. Treasury securities ...........................
7 Other securities ...........................................
8
9
10
11
12

Cash assets, total .........................................
Currency and coin ..................................
Reserves with Federal Reserve Banks
Balances with depository institutions
Cash items in process of collection ..

13

Other a s s e t s ....................................................

57.5

57.8

59.3

61.2

63.1

65.0

66.1

73.3

72.7

77.1

77.0

14

Total assets/total liabilities and capital .

1,318.2

1,336.9

1,335.4

1,351.0

1,344.9

1,358.4

1,362.7

1,393.5

1,395.7

1,380.9

1,389.4

15
16
17
18

Deposits .............................................
Dem and ......................................................
Savings ........................................................
Time .............................................................

996.6
358.7
213.4
424.5

1,023.6
376.6
207.6
439.4

1,017.6
365.1
205.0
447.4

1,030.6
377.6
203.4
449.7

1,022.5
362.4
200.6
459.6

1,028.9
358.7
199.9
470.3

1,032.1
354.5
196.5
481.1

1,060.0
377.4
189.3
493.4

1,057.3
370.2
192.3
494.8

1,044.7
358.1
197.8
488.8

1,050.1
363.6
205.7
480.8

19
20
21

Borrowings ....................................................
Other lia b ilitie s .............................................
Residual (assets less liabilities) .............

147.0
71.2
103.3

137.4
74.0
101.9

135.6
78.5
103.7

140.5
74.1
105.8

143.1
77.5
101.8

145.1
81.6
102.9

142.1
84.2
104.2

147.0
81.2
105.2

154.1
78.5
105.7

152.5
76.6
107.1

158.6
74.8
106.0

M emo :
U.S. Treasury note balances included in
b o rrow in g ...............................................
Number of b a n k s ...............................

17.8
14,616

8.4
14,605

5.0
14,608

12.8
14,610

15.0
14,594

8.1
14,609

9.4
14,626

14.3
14,629

5.1
14,639

13.1
14,646

7.6
14,658

n.a.

n.a.

22
23

A ll C ommercial B anking
Institutions2

24
25
26
27
28
29
30

Loans and investments ......................
Loans, gross ......................................
Interbank ........................................
Commercial and industrial ..............
Other .............................................
U .S. Treasury securities .....................
Other securities .................................

1,197.7
915.9
69.2
288.1
558.6
93.5
188.3

1,200.3
917.6
71.6
288.3
557.7
93.1
189.5

1,200.9
916.2
71.8
287.9
556.6
93.7
190.9

1,229.8
943.1
80.5
295.0
567.6
94.5
192.2

1,217.7
930.7
75.4
295.1
560.1
94.3
192.7

1,230.8
941.0
78.3
298.5
564.2
95.5
194.4

1,231.8
940.2
75.2
301.7
563.4
96.2
195.4

1,240.9
946.8
82.1
302.0
562.7
95.5
198.6

1,239.2
942.4
88.0
298.1
556.2
95.9
201.0

31
32
33
34
35

Cash assets, total ...............................
Currency and coin ..........................
Reserves with Federal Reserve Banks
Balances with depository institutions
Cash items in process of collection ..

172.2
16.7
32.5
62.4
60.6

179.9
16.6
34.9
62.5
65.9

176.7
18.2
35.6
60.0
62.9

169.5
17.9
29.0
59.0
63.7

166.5
17.3
28.9
59.8
60.4

168.8
17.1
31.3
60.5
60.0

174.0
16.8
35.0
61.1
61.2

187.3
16.8
33.9
66.6
69.9

190.7
17.8
38.7
63.8
70.4

36

Other a s s e t s ........................................

76.7

76.5

78.5

81.0

83.7

86.8

91.6

99.0

98.1

37

Total assets/total liabilities and capital

.

1,446.5

1,456.7

1,456.1

1,480.3

1,468.0

1,486.5

1,497.5

1,527.2

1,528.0

38
39
40
41

Deposits .............................................
Demand .........................................
Savings ...........................................
Time ............................................................

1,043.6
383.2
214.2
446.2

1,062.6
394.2
208.3
460.1

1,058.5
384.9
205.9
467.7

1,076.3
400.5
204.3
471.5

1,063.1
380.5
201.3
481.3

1,070.0
376.8
200.3
492.9

1,073.5
373.6
196.7
503.2

1,101.1
396.6
189.5
515.0

1,097.1
387.7
192.6
516.9

42
43
44

Borrowings ....................................................
Other lia b ilitie s .............................................
Residual (assets less liabilities) ..............

182.1
115.2
105.6

171.6
118.5
104.0

169.5
122.2
105.8

180.5
115.4
108.1

179.5
121.1
104.2

182.9
128.4
105.2

186.5
130.9
106.5

190.8
127.8
107.4

196.3
126.6
108.1

M emo :
U.S. Treasury note balances included in
b o rrow in g ...............................................
Number of banks ...............................

17.8
14,972

8.4
14,963

5.0
14,969

12.8
14,975

15.0
14,962

8.1
14,978

9.4
14,995

14.3
15,004

5.1
15,016

45
46

1. Domestically chartered commercial banks include all commercial banks in the
United States except branches of foreign banks; included are member and nonmember banks, stock savings banks, and nondeposit trust companies.
2. Commercial banking institutions include domestically chartered commercial
banks, branches and agencies of foreign banks, Edge Act and Agreement cor­
porations, and New York state foreign investment corporations.




N ote . Figures are partly estimated. They include all bank-premises subsidiaries
and other significant majority-owned domestic subsidiaries. Data for domestically
chartered commercial banks are for the last Wednesday of the month; data for
other banking institutions are for last Wednesday except at end of quarter, when
they are for the last day of the month.

Commercial Banks

A 17

1.25 COMMERCIAL BANK ASSETS AND LIABILITIES Call-Date Series
Millions of dollars, except for number of banks
1976

1977

1978

1976

June 30

Dec. 31

1977

1978

Account
Dec. 31

June 30

Dec. 31

Total insured

June 30

Dec. 31

June 30

National (all insured)

827,696

854,733

914,779

956,431

476,610

488,240

523,000

542,218

578,734
560,077

601,122
581,143

657,509
636,318

695,443
672,207

340,691
329,971

351,311
339,955

384,722
372,702

403,812
390,630

U.S. Treasury securities .........................................
Other .....................................................................
Cash assets .............................................................

101,461
147,500
129,562

100,568
153,042
130,726

99,333
157,936
159,264

97,001
163,986
157,393

55,727
80,191
76,072

53,345
80,583
74,641

52,244
86,033
92,050

50,519
87,886
90,728

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

1,003,970

1,040,945

1,129,712

1,172,772

583.304

599,743

651,360

671,166

8 Deposits.....................................................................

825,003

847,372

922,657

945,874

469,377

476,381

520,167

526,932

3,022
44,064
285,200

2,817
44,965
284,544

7,310
49,843
319,873

7,956
47,203
312,707

1,676
23,149
163,346

1,632
22,876
161,358

4,172
25,646
181,821

4,483
22,416
176,025

1 Loans and investments, gross ....................................
2
3
4
5
6

Loans

Gross .....................................................................
Net .........................................................................
Investments

9
10
11

U.S. government ....................................................
Interbank................................................................
Other .....................................................................

12
13

Interbank ................................................................
Other .....................................................................

8,248
484,467

7,721
507,324

8,731
536,899

8,987
569,020

4,907
276,296

4,599
285,915

5,730
302,795

5,791
318,215

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

75,291
75,061

81,137
75,502

89,339
79,082

98,351
83,074

54,421
41,319

57,283
43,142

63,218
44,994

68,948
47,019

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

14,397

14,425

14,397

14,381

4,735

4,701

4,654

4,616

Time and savings

State member (all insured)

Insured nonmember

144,000

144,597

152,514

157,464

207,085

221,896

239,265

256,749

102,277
99,474

102,117
99,173

110,243
107,205

115,736
112,470

135,766
130,630

147,694
142,015

162,543
156,411

175,894
169,106

18,849
22,874
32,859

19,296
23,183
35,918

18,179
24,091
42,305

16,886
24,841
43,057

26,884
44,434
20,631

27,926
46,275
20,166

28,909
47,812
24,908

29,595
51,259
23,606

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

189,579

195,452

210,442

217,384

231,086

245,748

267,910

284,221

24 Deposits.....................................................................

149,491

152,472

163,436

167,403

206,134

218,519

239,053

251,539

17 Loans and investment, gross......................................
18
19
20
21
22

Loans

Gross .....................................................................
Net .........................................................................
Investments

U.S. Treasury securities .........................................
Other .....................................................................
Cash assets .............................................................

Demand

25
26
27

U.S. government ....................................................
Interbank................................................................
Other .....................................................................

429
19,295
52,204

371
20,568
52,570

1,241
22,346
57,605

1,158
23,117
55,550

917
1,619
69,648

813
1,520
70,615

1,896
1,849
80,445

2,315
1,669
81,131

28
29

Interbank ................................................................
Other .....................................................................

2,384
75,178

2,134
76,827

2,026
80,216

2,275
85,301

956
132,993

988
144,581

973
153,887

920
165,502

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

17,310
13,199

19,697
13,441

21,736
14,182

23,167
14,670

3,559
17,542

4,155
18,919

4,384
19,905

6,235
21,384

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

1,023

1,019

1,014

1,005

8,639

8,705

8,729

8,760

Time and savings

Noninsured nonmember
33 Loans and investments, gross ....................................
Loans

Total nonmember

18,819

22,940

24,415

28,699

225,904

244,837

263,681

285,448

20,865
20,679

22,686
22,484

26,747
26,548

152,103
146,840

168,559
162,694

185,230
178,896

202,641
195,655

27,938
45,863
27,127

28,919
47,357
28,497

29,788
48,662
34,367

30,465
52,341
32,967

34
35

Gross .....................................................................
Net .........................................................................

16,336
16,209

36
37
38

U.S. Treasury securities .........................................
Other .....................................................................
Cash assets .............................................................

1,054
1,428
6,496

993
1,081
8,330

879
849
9,458

869
1,082
9,360

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

26,790

33,390

36,433

42,279

257,877

279,139

304,343

326,501

40 Deposits.....................................................................

13,325

14,658

16,844

19,924

219,460

233,177

255,898

271,463

4
1,277
3,236

8
1,504
3,588

10
1,868
4,073

8
2,067
4,814

921
2,896
72,884

822
3,025
74,203

1,907
3,718
84,518

2,323
3,736
85,946

Interbank................................................................
Other .....................................................................

1,041
7,766

1,164
8,392

1,089
9,802

1,203
11,831

1,997
140,760

2,152
152,974

2,063
163,690

2,123
177,334

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

4,842
818

7,056
893

6,908
917

8,413
962

8,401
18,360

11,212
19,812

11,293
20,823

14,649
22,346

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

275

293

310

317

8,914

8,998

9,039

9,077

41
42
43
44
45

Investments

Demand

U.S. government ....................................................
Interbank ................................................................
Other .....................................................................
Time and savings

1. Includes items not shown separately.




For Note see table 1.24.

A 18
1.26

D om estic Financial Statistics □ August 1980
COMMERCIAL BANK ASSETS AND LIABILITIES

Detailed Balance Sheet, September 30, 1978

Millions of dollars, except for number of banks
Member banks1
Asset account

Insured
commercial
banks

Large banks
Total

All other
New York
City

City of
Chicago

Non­
member
banks1

Other
large

1 Cash bank balances, items in process .........................................
2 Currency and coin ...................................................................
3 Reserves with Federal Reserve Banks......................................
4 Demand balances with banks in United States..........................
5 Other balances with banks in United States.............................
6 Balances with banks in foreign countries.................................
7 Cash items in process of collection...........................................

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

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

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

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

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

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

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

8 Total securities held—Book value ...............................................
9 U.S. Treasury..........................................................................
10 Other U.S. government agencies .............................................
11 States and political subdivisions ...............................................
12 All other securities ..................................................................
13 Unclassified total .....................................................................

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

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

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

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

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

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

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

14
15
16
17
18
19

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

6,833
4,125
825
1,395
394
94

6,681
4,103
816
1,381
316
66

3,238
2,407
401
363
67

708
408
82
117
101

2,446
1,210
278
794
145
19

290
78
55
107
3
47

151
23
9
14
78
28

20
21
22
23
24

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

255,366
90,943
39,253
119,865
5,305

173,196
61,661
24,641
83,745
3,149

17,570
7,117
1,426
8,803
224

7,210
2,282
1,201
3,588
138

55,825
20,840
7,452
26,629
903

92,591
31,422
14,561
44,724
1,884

82,185
29,293
14,613
36,123
2,156

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

1,656

1,403

311

111

507

475

253

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

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

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

3,290
1,987
821
482

1,784
1,294
396
94

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

10,427
9,717
541
169

9,365
9,090
140
135

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

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

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

79,996
675
1,347
77,974

26,172
107
341
25,724

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

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

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

34 Real estate loans .........................................................................
35 Construction and land development.........................................
36 Secured by farmland................................................................
37 Secured by residential properties .............................................
38
1- to 4-family residences.......................................................
39
FHA-insured or VA-guaranteed........................................
40
Conventional ...................................................................
41
Multifamily residences .........................................................
42
FHA-insured.....................................................................
43
Conventional ...................................................................
44 Secured by other properties.....................................................

203,386
25,621
8,418
117,176
111,674
7,503
104,171
5,502
399
5,103
52,171

138,730
19,100
3,655
81,370
77,422
6,500
70,922
3,948
340
3,609
34,605

10,241
2,598
23
5,362
4,617
508
4,109
746
132
613
2,258

2,938
685
34
1,559
1,460
44
1,417
99
27
72
660

52,687
9,236
453
31,212
29,774
3,446
26,328
1,438
88
1,350
11,786

72,863
6,581
3,146
43,236
41,570
2,502
39,068
1,665
92
1,573
19,901

64,656
6,521
4,763
35,806
34,252
1,003
33,249
1,554
59
1,495
17,566

45
46
47
48
49
50
51
52
53
54

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

37,072
8,574
3,362
7,359
1,579
16,198
11,042
4,280
28,054
213, 123

34,843
8,162
2,618
7,187
1,411
15,465
10,834
3,532
15,296
171,815

12,434
2,066
966
3,464
290
5,649
6,465
410
168
39,633

4,342
801
165
268
76
3,033
1,324
276
150
13,290

15,137
4,616
1,206
2,820
785
5,710
2,846
1,860
3,781
67,833

2,930
680
281
635
261
1,073
199
985
11,196
51,059

2,228
412
744
171
167
733
207
747
12,758
41,309

55 Loans to individuals ...................................................................
56 Installment loans .....................................................................
57
Passenger automobiles .........................................................
58
Residential repair and modernization ..................................
59
Credit cards and related plans...............................................
60
Charge-account credit cards...............................................
61
Check and revolving credit plans ......................................
62
Other retail consumer goods................................................
63
Mobile homes...................................................................
64
Other ...............................................................................
65
Other installment loans .......................................................
66 Single-payment loans to individuals .........................................
67 All other loans............................................................................

161,599
131,571
58,908
8,526
21,938
17,900
4,038
19,689
9,642
10,047
22,510
30,027
17,360

110,974
90,568
37,494
5,543
19,333
16,037
3,296
13,296
6,667
6,629
14,902
20,406
14,778

7,100
5,405
1,077
331
2,268
1,573
695
427
179
249
1,302
1,694
3,545

2,562
1,711
209
60
1,267
1,219
47
57
19
38
119
851
1,290

40,320
33,640
11,626
2,088
9,736
8,192
1,545
5,242
2,563
2,678
4,948
6,680
6,100

60,993
49,811
24,582
3,064
6,062
5,053
1,009
7,570
3,905
3,664
8,533
11,182
3,844

50,624
41,003
21,414
2,983
2,605
1,863
742
6,393
2,976
3,417
7,608
9,621
2,582

68 Total loans and securities, n e t......................................................

Other loans, gross, by category

956,579

696,833

102,383

35,536

259,820

299,094

259,867

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

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

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

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

96
795
188
1,258
1,000

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

1,041
7,133
96
409
5,275

505
5,926
46
521
4,249

74 Total assets ..................................................................................

1,198,495

904,182

170,899

44,170

338,079

351,034

294,595

69
70
71
72
73

For notes see opposite page.




Commercial Banks

A 19

1.26 Continued
Member banks1
Liability or capital account

Insured
commerical
banks

Large banks
Total

All other
New York
City

City of
Chicago

Non­
member
banks1

Other
large

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

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

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

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

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

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

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

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

84 Time deposits ..............................................................................
85 Accumulated for personal loan payments.................................
86 Mutual savings banks ..............................................................
87 Other individuals, partnerships, and corporations.....................
88 U.S. government .....................................................................
89 States and political subdivisions ..............................................
90 Foreign governments, central banks, e tc ..................................
91 Commercial banks in United States.........................................
92 Banks in foreign countries.......................................................

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

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

38.086
0
177
29,209
61
1.952
3,780
2,077
829

15,954
0
40
12,074
40
1,554
1,145
999
103

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

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

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

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

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

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

10,632
9,878
519
2
215
18

2,604
2,448
148
3
4
*

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

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

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

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

960,918

701,195

114,753

29,248

254,087

303,107

259,733

100 Federal funds purchased and securities sold under agreements
to repurchase .......................................................................
101 Commercial banks...................................................................
102 Brokers and dealers ................................................................
103 Others .....................................................................................

91,981
42,174
12,787
37,020

85,582
39,607
11,849
34,126

21,149
6,991
2,130
12,028

8,777
5,235
1,616
1,926

41,799
21,609
6,381
13,809

13,857
5,773
1,722
6,362

6,398
2,566
939
2,894

104
105
106
107

Other liabilities for borrowed money...........................................
Mortgage indebtedness ................................................................
Bank acceptances outstanding.....................................................
Other liabilities ..........................................................................

8,738
1,767
16,661
27,124

8,352
1,455
16,140
23,883

3,631
234
8,398
8,600

306
27
1,260
1,525

3,191
701
6,070
9,020

1,225
491
412
4,477

386
316
521
3,494

108 Total liabilities ............................................................................

1,107,188

836,607

157,026

41,144

314,868

323,569

270,849

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

5,767

4,401

1,001

79

2,033

1,287

1,366

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

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

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

12,871
0
2,645
4,541
5,554
132

2,947
0
570
1,404
921
52

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

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

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

116 Total liabilities and equity capital................................................

1,198,495

904,182

170,899

44,170

338,079

351,034

294,595

252,337

171,864

18,537

5,576

60,978

86,774

80,472

M emo :

117 Demand deposits adjusted2 .........................................................
Average for last 15 or 30 days

118 Cash and due from bank ............................................................
119 Federal funds sold and securities purchased under agreements to
resell ...................................................................................
120 Total loans .................................................................................
121 Time deposits of $100,000 or more .............................................
122 Total deposits..............................................................................
123 Federal funds purchased and securities sold under agreements to
repurchase ............................................................................
124 Other liabilities for borrowed money...........................................

146,283

124,916

36,862

6,030

45,731

36,293

21,379

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

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

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

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

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

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

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

92,685
8,716

86,635
8,326

22,896
3,679

9,473
370

40,541
3,211

13,725
1,067

6,053
390

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

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

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

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

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

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

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

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

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

14,390

5,593

12

9

153

5,419

8,810

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




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

A 20

D om estic Financial Statistics □ August 1980

1.27 ALL LARGE WEEKLY REPORTING COMMERCIAL BANKS with Domestic Assets of $750 Million or More on
December 31, 1977, Assets and Liabilities
Millions of Dollars, W ednesday figures

Account
June 4

June 11

June 18

June 25

July 2p

July 9p

July 16^

July 23p

July 30p

53,685

51,339

53,888

48,142

57,210

51,437

58,997

48,650

49,044

17,641
33,903

17,855
32,363

18,834
33,803

17,932
31,203

18,728
33,843

19,389
33,266

18,093
37,000

17,490
35,298

17,720
33,412

519,227

516,434

517,866

515,343

522,621

518,630

516,300

512,736

514,441

37,413
6,240
31,173
6,437
20,104
4,632
75,053
3,468
71,584
16,632
52,460
6,540
45,920
2,493

37,455
5,382
32,072
6,453
20,759
4,861
75,894
4,108
71,786
16,672
52,612
6,623
45,989
2,501

36,332
4,045
32,287
6,151
21,148
4,988
74,973
3,218
71,755
16,627
52,594
6,553
46,042
2,533

36,545
4,194
32,351
6,210
21,116
5,024
75,345
3,537
71,808
16,562
52,646
6,492
46,153
2,601

36,958
4,098
32,861
6,190
21,752
4,918
75,590
3,934
71,656
16,501
52,526
6,382
46,145
2,628

37,483
4,466
33,016
6,226
21,882
4,908
75,786
3,957
71,829
16,443
52,734
6,437
46,297
2,652

37,434
4,592
32,842
6,308
21,694
4,840
75,471
3,495
71,977
16,416
52,944
6,534
46,409
2,616

37,863
4,749
33,113
6,554
21,745
4,814
75,411
3,092
72,318
16,400
53,290
6,590
46,700
2,629

38,141
4,911
33,230
6,697
21,718
4,815
75,533
3,052
72,481
16,387
53,449
6,605
46,844
2,645

19 Federal funds sold1 ...............................................
20 To commercial banks ........................................
21 To nonbank brokers and dealers in securities . ...
22 To others...........................................................
23 Other loans, gross ................................................
24 Commercial and industrial .................................
25
Bankers acceptances and commercial paper ...
26
All other .......................................................
27
U.S. addressees ..........................................
28
Non-U.S. addressees ...................................
29 Real estate ...........................................................
30 To individuals for personal expenditures............
To financial institutions
31
Commercial banks in the United States..........
32
Banks in foreign countries .............................
33
Sales finance, personal finance companies, etc .
34
Other financial institutions.............................
35 To nonbank brokers and dealers in securities ....
36 To others for purchasing and carrying securities2
37 To finance agricultural production .....................
38 All other ...........................................................
39 L ess: Unearned income ........................................
40
Loan loss reserve ........................................
41 Other loans, n e t....................................................
42 Lease financing receivables ...................................
43 All other assets......................................................

26,800
22,676
3,348
775
392,787
158,279
5,519
152,760
147,006
5,754
104,870
70,960

24,898
20,369
3,681
848
391,056
157,416
5,186
152,229
146,409
5,820
104,963
70,779

26,688
22,162
3,667
859
392,760
158,198
5,056
153,142
147,365
5,777
105,076
70,725

23,613
19,305
3,459
848
392,660
158,102
5,063
153,040
147,393
5,647
105,251
70,811

26,923
22,585
3,298
1,040
395,836
159,557
5,337
154,220
148,585
5,635
105,217
70,794

25,556
20,508
3,945
1,103
392,530
158,880
5,068
153,813
148,233
5,580
105,276
70,528

23,854
19,498
3,438
918
392,308
158,310
4,980
153,330
147,742
5,588
105,575
70,444

21,526
16,911
3,494
1,120
390,750
158,213
4,988
153,225
147,598
5,627
105,790
70,435

21,772
17,397
3,358
1,017
391,774
158,111
5,257
152,853
147,212
5,642
105,946
70,515

3,632
6,533
8,432
14,776
6,034
2,057
5,102
12,110
7,241
5,585
379,961
8,583
74,005

3,335
6,367
8,353
14,619
6,768
2,070
5,102
11,283
7,262
5,607
378,187
8,589
75,637

3,608
6,208
8,376
14,555
6,788
2,041
5,111
12,075
7,282
5,606
379,872
8,646
75,304

3,948
6,513
8,183
14,363
6,359
2,044
5,146
11,939
7,256
5,564
379,840
8,663
75,120

3,971
7,546
8,552
14,409
5,794
2,071
5,188
12,736
7,168
5,518
383,149
8,692
80,267

3,552
7,232
8,384
14,474
4,903
2,036
5,188
12,077
7,198
5,528
379,805
8,718
77,578

3,455
7,035
8,668
14,627
4,797
2,027
5,234
12,137
7,222
5,546
379,540
8,737
75,174

3,330
6,707
8,352
14,487
4,431
2,056
5,336
11,613
7,255
5,559
377,937
8,745
77,071

3,543
6,783
8,515
14,632
4,396
2,055
5,387
11,890
7,230
5,549
378,995
8,757
74,863

44

707,043

702,219

708,340

696,403

721,362

709,018

714,301

699,989

698,237

45 Demand deposits ..................................................
46 Mutual savings banks ........................................
47 Individuals, partnerships, and corporations.........
48 States and political subdivisions ........................
49 U.S. government ...............................................
50 Commercial banks in the United States..............
51 Banks in foreign countries .................................
52 Foreign governments and official institutions ....
53 Certified and officers’ checks.............................
54 Time and savings deposits ....................................
55 Savings ..............................................................
56
Individuals and nonprofit organizations..........
57
Partnerships and corporations operated for
profit.......................................................
58
Domestic governmental units..........................
59
All other .......................................................
60 Time ..................................................................
61
Individuals, partnerships, and corporations---62
States and political subdivisions .....................
63
U.S. government ...........................................
64
Commercial banks in the United States..........
65
Foreign governments, official institutions, and
banks ......................................................
Liabilities for borrowed money
66 Borrowings from Federal Reserve Banks..........
67 Treasury tax-and-loan notes...............................
68 All other liabilities for borrowed money3 ..........
69 Other liabilities and subordinated note and
debentures ......................................................

196,122
689
133,359
4,787
3,580
33,745
8,378
1,557
10,027
278,177
70,796
66,595

191,550
604
132,367
4,405
1,894
32,970
8,723
1,461
9,125
278,396
71,162
66,842

195,094
583
134,547
4,664
3,629
33,558
7,927
1,426
8,759
277,894
71,760
67,374

187,063
546
129,364
4,805
2,466
32,445
8,337
1,452
7,647
277,446
71,876
67,405

208,631
769
141,960
5,008
1,061
39,637
8,232
1,959
10,005
276,789
73,377
68,835

196,456
819
134,957
4,535
1,243
36,204
8,818
1,506
8,375
275,381
74,167
69,560

203,881
657
139,172
4,923
873
38,591
8,381
1,655
9,629
275,157
74,324
69,759

187,652
601
130,459
4,316
702
33,536
7,873
1,236
8,929
275,503
74,491
69,826

187,740
681
131,339
4,930
828
30,486
8,218
2,042
9,216
273,712
74,540
69,833

3,532
658
12
207,381
174,832
20,370
336
5,805

3,641
669
11
207,233
175,254
19,991
307
5,718

3,641
729
16
206,135
174,456
19,703
297
5,699

3,726
731
14
205,570
174,123
19,546
284
5,656

3,762
764
16
203,412
172,887
18,764
269
5,519

3,862
727
19
201,213
170,946
18,739
243
5,324

3,847
704
14
200,832
170,674
18,733
255
5,236

3,958
690
17
201,012
170,573
18,977
242
5,199

4,026
666
15
199,172
168,696
19,026
275
5,153

6,038

5,962

5,980

5,960

5,973

5,961

5,934

6,021

6,022

221
765
121,337

315
985
120,390

758
7,240
117,994

336
9,142
113,557

397
4,678
120,889

270
1,415
126,824

556
3,245
123,887

546
3,839
124,078

2,556
4,352
122,419

63,039

62,944

61,973

61,444

62,179

60,749

59,758

60,506

59,654

70

Total liabilities ......................................................................

659,663

654,580

660,953

648,988

673,564

661,094

666,484

652,124

650,432

71 Residual (total assets minus total liabilities)4 .........

47,380

47,638

47,387

47,415

47,797

47,924

47,817

47,865

47,805

1 Cash items in process of collection........................
2 Demand deposits due from banks in the United
States .............................................................
3 All other cash and due from depository institutions
4

Total loans and s e c u r itie s ..................................................

Securities

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

Total assets ............................................................................

Deposits

1. Includes securities purchased under agreements to resell.
2. Other than financial institutions and brokers and dealers.
3. Includes federal funds purchased and securities sold under agreements to
repurchase; for information on these liabilities at banks with assets of $1 billion
or more on Dec. 31, 1977, see table 1.13.




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

Weekly Reporting Banks

A21

1.28 LARGE WEEKLY REPORTING COMMERCIAL BANKS with Domestic Assets of $1 Billion or More on
December 31, 1977 Assets and Liabilities
Millions of dollars, Wednesday figures

June 4

June 11

June 18

June 25

51,268
18,204
31,529

45,661
17,322
29,184

July 2p

July 9p

July 16p

July 23p

July 30p

56,429
17,376
34,806

46,341
16,986
33,056

46,822
17,098
31,170

1 Cash items in process of collection...................................
2 Demand deposits due from banks in the United States ...
3 All other cash and due from depository institutions.........

51,061
16,933
31,936

48,950
17,172
30,490

4 Total loans and securities................................................

484,539

481,681

34,943
6,170
28,773
6,016
18,514
4,244
69,097
3,337
65,760
15,493
47,940
5,924
42,016
2,326

34,968
5,310
29,659
6,036
19,157
4,465
69,902
3,969
65,933
15,525
48,074
6,003
42,070
2,335

33,848
3,988
29,859
5,747
19,566
4,547
69,001
3,079
65,922
15,504
48,054
5,937
42,117
2,364

34,079
4,155
29,924
5,812
19,530
4,582
69,367
3,392
65,974
15,448
48,095
5,877
42,217
2,432

34,424
4,045
30.379
5,796
20,074
4,509
69,610
3,805
65,805
15.379
47,967
5,746
42,221
2,459

34,935
4,416
30,520
5,817
20,204
4,498
69,787
3,858
65,929
15,305
48,140
5,789
42,351
2,483

34,882
4,548
30,335
5,886
20,023
4,426
69,419
3,375
66,044
15,271
48,324
5,884
42,440
2,449

35,299
4,700
30,599
6,112
20,088
4,399
69,374
2,996
66,378
15,249
48,666
5,942
42,724
2,462

35,575
4,870
30.705
6,251
20,033
4,420
69,426
2,934
66,492
15,230
48,785
5,947
42,838
2,477

54,496
18,065
32,056

49,020
18,668
31,568

481,083

479,702

Securities

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

19 Federal funds sold1 .........................................................
20 To commercial banks ..................................................
21 To nonbank brokers and dealers in securities..............
22 To others.....................................................................
23 Other loans, gross ...........................................................
24 Commercial and industrial...........................................
25
Bankers’ acceptances and commercial paper ............
26
All other ..................................................................
27
U.S. addressees ....................................................
28
Non-U.S. addressees .............................................
29 Real estate ..................................................................
30 To individuals for personal expenditures......................
To financial institutions
31
Commercial banks in the United States.....................
32
Banks in foreign countries........................................
33
Sales finance, personal finance companies, e tc .........
34
Other financial institutions........................................
35 To nonbank brokers and dealers in securities..............
36 To others for purchasing and carrying securities2 .........
37 To finance agricultural production ...............................
38 All other .....................................................................
39 Less: Unearned income ..................................................
40
Loan loss reserve..................................................
41 Other loans, n e t..............................................................
42 Lease financing receivables .............................................
43 All other assets ..............................................................

23,976
20,173
3,044
759
368,399
150,185
5,412
144,773
139,071
5,702
98,621
62,640

22,087
17,876
3,377
834
366,641
149,326
5,085
144,240
138,472
5,769
98,725
62,473

23,940
19,692
3,404
844
368,314
150,061
4,952
145,108
139,385
5,723
98,808
62,430

21,291
17,369
3,092
829
368,213
149,984
4,953
145,031
139,438
5,593
98,986
62,512

24,104
20,017
3,060
1,028
371,303
151,407
5,232
146,174
140,598
5,576
98,957
62,489

22,461
17,828
3,543
1,090
368,145
150,769
4,961
145,808
140,288
5,520
99,043
62,251

21,135
17,114
3,162
860
367,880
150,207
4,882
145,325
139,798
5,527
99,322
62,167

19,035
14,799
3,129
1,106
366,327
150,133
4,893
145,239
139,677
5,562
99,539
62,148

19,211
15,248
2,966
996
367,319
150,030
5,157
144,872
139,302
5,570
99,694
62,223

3,542
6,476
8,268
14,430
5,984
1,832
4,943
11,476
6,619
5,258
356,522
8,342
71,997

3,248
6,270
8,197
14,268
6,716
1,836
4,946
10,636
6,637
5,281
354,723
8,349
73,638

3,514
6,106
8,214
14,208
6,737
1,818
4,949
11,469
6,656
5,280
356,378
8,403
73,281

3,852
6,423
8,017
14,014
6,301
1,815
4,983
11,324
6,628
5,238
356,347
8,420
73,058

3,888
7,457
8,384
14,058
5,740
1,840
5,026
12,056
6,552
5,193
359,558
8,448
78,249

3,468
7,140
8,210
14,113
4,832
1,818
5,026
11,474
6,578
5,201
356,366
8,475
75,532

3,368
6,933
8,506
14,263
4,726
1,819
5,070
11,499
6,598
5,219
356,063
8,494
73,157

3,237
6,580
8,187
14,113
4,372
1,837
5,171
11,010
6,616
5,234
354,477
8,501
75,047

3,455
6,641
8,352
14,238
4,342.
1,836
5,217
11,291
6,608
5,222
355,489
8,512
72,804

44 Total assets .....................................................................

664,808

660,280

665,852

654,729

679,012

666,813

671,762

658,116

656,109

45 Demand deposits .............................................................
46 Mutual savings banks ..................................................
47 Individuals, partnerships, and corporations .................
48 States and political subdivisions ...................................
49 U.S. government .........................................................
50 Commercial banks in the United States........................
51 Banks in foreign countries...........................................
52 Foreign governments and official institutions................
53 Certified and officer’s checks........................................
54 Time and savings deposits ...............................................
55 Savings.........................................................................
56
Individuals and nonprofit organizations.....................
57
Partnerships and corporations operated for profit
58
Domestic governmental units ...................................
59
All other ..................................................................
60 Time ............................................................................
61
Individuals, partnerships, and corporations ..............
62
States and political subdivisions ...............................
63
U.S. government ......................................................
64
Commercial banks in the United States.....................
65
Foreign governments, official institutions, and banks .
Liabilities for borrowed money
66 Borrowings from Federal Reserve Banks .....................
67 Treasury tax-and-loan notes..........................................
68 All other liabilities for borrowed money3 .....................
69 Other liabilities and subordinated note and debentures .

184,063
659
123,868
4,217
3,328
32,392
8,320
1,554
9,725
258,632
65,450
61,562
3,274
603
12
193,182
162,751
18,561
323
5,509
6,038

179,913
581
123,052
3,911
1,700
31,689
8,668
1,460
8,851
258,911
65,784
61,793
3,378
602
11
193,127
163,258
18,184
293
5,430
5,962

183,073
559
125,251
3,976
3,289
32,254
7,864
1,425
8,454
258,434
66,345
62,282
3,378
669
16
192,089
162,509
17,906
283
5,411
5,980

175,674
525
120.474
4,221
2,072
31,259
8,282
1,444
7,396
258,044
66,470
62,335
3,451
670
14
191,574
162,196
17,773
270
5,374
5,960

196,383
735
132,300
4,404
951
38,220
8,137
1,954
9,683
257,412
67,840
63,658
3,486
680
16
189,571
161,088
16,994
254
5,262
5,973

184,404
788
125,386
4,007
1,085
34,804
8,757
1,503
8,074
256,020
68,589
64,320
3,580
671
18
187,431
159,196
16,977
228
5,068
5,961

191,808
628
129,506
4,348
782
37,247
8,311
1,652
9,334
255,857
68,716
64,510
3,563
628
14
187,141
158,995
16,988
240
4,985
5,934

176,236
575
121,311
3,745
615
32,283
7,805
1,233
8,669
256,224
68,867
64,571
3,671
608
17
187,357
158,982
17,172
227
4,954
6,021

176.231
655
122,173
4,324
757
29,213
8,152
2,033
8,923
254,549
68,904
64,573
3,733
584
15
185,645
157.231
17,217
260
4,915
6,022

221
690
115,304
61,670

315
891
114,241
61,532

758
6,820
111,926
60,612

336
8,542
107,796
60,083

397
4,352
115,046
60,776

270
1,298
120,666
59,387

552
2,983
117,521
58,365

542
3,537
117,717
59,157

2,552
4,030
115,836
58,295

70 Total liabilities ................................................................

620,581

615,803

621,624

610.475

634,366

622,046

627,087

613,413

611,493

71 Residual (total assets minus total liabilities)4 ...................

44,227

44,476

44,229

44,254

44,646

44,766

44,676

44,703

44,616

Deposits

1. Includes securities purchased under agreements to resell.
2. Other than financial institutions and brokers and dealers.
3. Includes federal funds purchased and securities sold under agreement to
repurchase; for information on these liabilities at banks with assets of $1 billion
or more on Dec. 31, 1977, see table 1.13.




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

A22

D om estic Financial Statistics □ August 1980

1.29 LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY Assets and Liabilities
Millions of dollars, Wednesday figures

1980
June 4

June 11

June 18

June 25

July 2p

July 9p

July 16p

July 23

July 30p

1 Cash items in process of collection........................................
2 Demand deposits due from banks in the United States.........
3 All other cash and due from depository institutions..............

20,722
12,114
10,934

20,339
12,935
10,031

21,232
13,851
8,970

19,238
13,039
6,678

22,429
13,702
9,606

19,963
14,185
9,689

25,206
12,507
10,868

18,766
12,806
8,465

19,062
12,903
8,794

4 Total loans and securities1 ....................................................

113,967

111,880

113,489

113,036

115,351

112,765

112,570

111,391

111,634

6,892
703
5,410
779

7,066
657
5,532
877

7,280
531
5,790
959

7,282
472
5,795
1,014

7,648
440
6,273
936

7,670
436
6,282
951

7,657
540
6,219
898

7,823
735
6,194
894

7,952
793
6,239
920

13,317
2,803
9,926
1,651
8,275
588

13,419
2,821
10,003
1,667
8,336
595

13,368
2,749
10,042
1,700
8,342
576

13,374
2,698
10,049
1,685
8,364
627

13,302
2,626
10,074
1,624
8,450
603

13,321
2,587
10,120
1,645
8,475
613

13,324
2,608
10,100
1,616
8,485
615

13,407
2,584
10,216
1,638
8,578
607

13,445
2,584
10,248
1,649
8,599
613

19 Federal funds sold3 ..............................................................
20 To commercial banks .......................................................
21 To nonbank brokers and dealers in securities...................
22 To others..........................................................................
23 Other loans, gross ................................................................
24 Commercial and industrial................................................
25
Bankers’ acceptances and commercial paper .................
26
All other .......................................................................
27
U.S. addressees .........................................................
28
Non-U.S. addressees ..................................................
29 Real estate .......................................................................
30 To individuals for personal expenditures............................
To financial institutions
31
Commercial banks in the United States..........................
32
Banks in foreign countries.............................................
33
Sales finance, personal finance companies, etc................
34
Other financial institutions.............................................
35 To nonbank brokers and dealers in securities...................
36 To others for purchasing and carrying securities4 ..............
37 To finance agricultural production ....................................
38 All other ..........................................................................
39 L ess: Unearned income .......................................................
40
Loan loss reserve.......................................................
41 Other loans, n e t....................................................................
42 Lease financing receivables ..................................................
43 All other assets5 ....................................................................

6,731
5,005
1,466
261
89,812
47,228
2,527
44,701
42,842
1,859
13,175
8,828

5,211
3,393
1,547
271
88,981
46,557
2,195
44,362
42,481
1,882
13,214
8,825

6,160
4,246
1,744
171
89,480
46,941
2,174
44,767
42,872
1,894
13,276
8,832

6,550
5,054
1,288
208
88,609
46,398
2,010
44,388
42,551
1,836
13,328
8,832

7,038
5,265
1,464
310
90,092
47,429
2,265
45,164
43,263
1,901
13,291
8,826

6,035
3,862
1,643
530
88,490
47,447
2,065
45,382
43,545
1,837
13,283
8,818

6,146
4,228
1,559
359
88,200
46,889
1,931
44,958
43,137
1,822
13,338
8,806

5,606
3,681
1,444
481
87,352
46,898
1,986
44,912
43,107
1,804
13,378
8,800

4,879
3,083
1,359
436
88,158
47,208
2,079
45,129
43,308
1,821
13,470
8,817

1,738
3,037
3,525
4,781
3,344
346
284
3,525
1,052
1,734
87,026
1,661
32,768

1,541
2,917
3,466
4,708
4,220
346
273
2,913
1,053
1,743
86,185
1,658
33,004

1,432
2,670
3,519
4,686
4,104
338
253
3,429
1,058
1,742
86,681
1,662
31,768

1,540
2,857
3,452
4,468
3,800
343
256
3,334
1,065
1,713
85,831
1,653
31,461

1,426
3,599
3,457
4,462
3,207
352
246
3,797
1,040
1,690
87,362
1,660
35,518

1,182
3,216
3,390
4,508
2,651
333
257
3,405
1,055
1,696
85,740
1,686
33,339

1,088
3,125
3,508
4,563
2,753
329
273
3,528
1,057
1,701
85,442
1,690
30,202

1,059
2,954
3,455
4,411
2,584
345
377
3,092
1,084
1,714
84,555
1,691
31,778

1,129
2,968
3,539
4,462
2,565
350
396
3,253
1,092
1,709
85,358
1,673
29,721

44 Total assets ..........................................................................

192,166

189,848

190,972

185,107

198,265

191,627

193,043

184,897

183,786

45 Demand deposits ..................................................................
46 Mutual savings banks .......................................................
47 Individuals, partnerships, and corporations ......................
48 States and political subdivisions ........................................
49 U.S. government ..............................................................
50 Commercial banks in the United States.............................
51 Banks in foreign countries................................................
52 Foreign governments and official institutions.....................
53 Certified and officers’ checks.............................................
54 Time and savings deposits ....................................................
55 Savings ..............................................................................
56
Individuals and nonprofit organizations..........................
57
Partnerships and corporations operated for profit..........
58
Domestic governmental units ........................................
59
All other .......................................................................
60 Time .................................................................................
61
Individuals, partnerships, and corporations ...................
62
States and political subdivisions ....................................
63
U.S. government ...........................................................
64
Commercial banks in the United States..........................
65
Foreign governments, official institutions, and banks__
Liabilities for borrowed money
66 Borrowings from Federal Reserve Banks ..........................
67 Treasury tax-and-loan notes...............................................
68 All other liabilities for borrowed money6 ..........................
69 Other liabilities and subordinated note and debentures.........

66,334
339
31,789
512
860
19,146
6,550
1,314
5,824
48,838
9,210
8,776
302
127
5
39,629
33,550
1,616
66
1,471
2,926

65,321
302
30,887
455
417
20,071
6,766
1,226
5,196
49,159
9,339
8,886
314
135
4
39,820
33,900
1,531
35
1,460
2,895

65,806
263
32,195
501
1,054
20,043
5,859
1,174
4,717
49,067
9,496
8,986
323
179
7
39,571
33,693
1,482
35
1,465
2,896

63,990
265
31,488
613
507
19,789
6,526'
1,122
3,678
48,592
9,454
8,959
323
166
5
39,138
33,314
1,405
34
1,512
2,873

75,241
396
35,823
556
136
25,096
6,378
1,624
5,231
48,492
9,641
9,150
327
159
5
38,851
33,193
1,191
45
1,552
2,870

66,588
462
31,627
474
306
21,572
7,092
1,099
3,955
47,875
9,752
9,271
333
143
5
38,123
32,400
1,249
47
1,571
2,856

70,880
288
33,050
722
124
23,922
6,480
1,331
4,963
48,117
9,788
9,313
329
140
5
38,329
32,515
1,318
48
1,606
2,843

63,066
279
30,142
399
119
20,479
5,997
926
4,724
47,590
9,750
9,272
338
133
7
37,839
31,976
1,361
41
1,580
2,882

61,387
309
30,318
505
123
17,259
6,282
1,645
4,946
46,765
9,752
9,282
341
125
5
37,012
31,143
1,386
41
1,565
2,876

72
39,610
22,730

151
37,252
23,320

549
2,410
35,446
23,126

2,671
33,446
21,894

1,201
36,449
22,215

268
39,788
22,358

772
36,069
22,476

918
36,215
22,394

1,685
1,063
36,345
21,930

70 Total liabilities .....................................................................

177,585

175,203

176,405

170,593

183,598

176,878

178,314

170,183

169,175

71 Residual (total assets minus total liabilities)7 ........................

14,581

14,646

14,568

14,514

14,667

14,748

14,729

14,714

14,611

Securities

6 Trading account2 ..............................................................
7 Investment account, by maturity........................................
8
One year or less.............................................................
9
Over one through five years .........................................
10
Over five years..............................................................
11 Other securities2 ..................................................................
12 Trading account2 ..............................................................
13 Investment account ...........................................................
14
U.S. government agencies .............................................
15
States and political subdivision, by maturity...................
16
One year or less.........................................................
17
Over one year.............................................................
18
Other bonds, corporate stocks and securities.................
Loans

Deposits

1.
2.
3.
4.

Excludes trading account securities.
Not available due to confidentiality.
Includes securities purchased under agreements to resell.
Other than financial institutions and brokers and dealers.




j

5. Includes trading account securities.
6. Includes federal funds purchased and securities sold under agreements to
repurchase.
7. This is not a measure of equity capital for use in capital adequacy analysis
or for other analytic uses.

Weekly Reporting Banks

A23

1.30 LARGE WEEKLY REPORTING COMMERCIAL BANKS Balance Sheet Memoranda
Millions of dollars, Wednesday figures

1980
June

B anks with A ssets of

$750 M illion or

4

June

11

June

18

June

25

July

2p

July

9p

July

16^

July

23p

July

3QP

M ore

1 Total loans (gross) and securities adjusted1 ..................................
2 Total loans (gross) adjusted1 ...............................................................
3 Demand deposits adjusted2 .................................................................

505,744
393,279
105,113

505,599
392,250
105,347

504,984
393,679
104,019

504,909
393,019
104,010

508,750
396,202
110,723

507,295
394,026
107,572

506,115
393,209
105,420

505,308
392,035
104,764

506,280
392,606
107,382

4
5
6

Time deposits in accounts of $100,000 or m o r e ...........................
Negotiable CDs ...................................................................................
Other time d e p o s its ............................................................................

132,190
93,628
38,562

132,036
93,952
38,084

130,820
93,149
37,671

130,417
93,100
37,317

128,468
91,794
36,674

126,638
90,196
36,442

126,328
90,044
36,284

126,714
90,263
36,451

125,230
88,999
36,231

7
8
9

Loans sold outright to affiliates3 ........................................................
Commercial and industrial ...............................................................
Other .......................................................................................................

2,738
1,780
957

2,774
1,813
961

2,871
1,899
972

2,843
1,903
940

2,788
1,843
945

2,817
1,899
919

2,831
1,836
995

2,736
1,826
911

2,809
1,894
915

10 Total loans (gross) and securities adjusted1 .................................
11 Total loans (gross) adjusted1 ...............................................................
12 Demand deposits adjusted2 .................................................................

472,700
368,660
97,282

472,475
367,604
97,574

471,897
369,048
96,262

471,728
368,282
96,681

475,537
371,503
102,715

474,033
369,311
99,494

472,834
368,533
97,349

471,999
367,326
96,997

472,829
367,827
99,438

13
14
15

Time deposits in accounts of $100,000 or m o r e ...........................
Negotiable CDs ...................................................................................
Other time d e p o s its ............................................................................

123,933
87,605
36,328

123,862
88,008
35,855

122,711
87,281
35,429

122,355
87,266
35,089

120,540
86,086
34,454

118,770
84,523
34,246

118,537
84,403
34,134

118,954
84,681
34,273

117,577
83,532
34,045

16
17
18

Loans sold outright to affiliates3 ........................................................
Commercial and industrial ...............................................................
Other .......................................................................................................

2,699
1,755
944

2,734
1,786
947

2,831
1,876
955

2,806
1,881
924

2,755
1,822
933

2,781
1,875
906

2,794
1,812
982

2,698
1,800
898

2,771
1,868
903

19
20
21

Total loans (gross) and securities adjusted1-4 ...............................
Total loans (gross) adjusted1 ...............................................................
Demand deposits adjusted2 .................................................................

110,010
89,801
25,606

109,743
89,258
24,494

110,610
89,963
23,477

109,221
88,566
24,455

111,390
90.440
27,580

110,471
89,481
24,746

110,012
89,031
21,628

109,448
88,218
23,702

110,221
88,824
24,943

22
23
24

Time deposits in accounts of $100,000 or m o r e ...........................
Negotiable CDs ...................................................................................
Other time d e p o s its ............................................................................

30,467
22,258
8,209

30,609
22,488
8,121

30,248
22,324
7,924

29,868
22,116
7,752

29,547
21,844
7,702

28,888
21,180
7,709

29,143
21,370
7,773

28,862
21,034
7,829

28,119
20,319
7,800

B anks with A ssets of $1 B illion or M ore

B anks in N ew Y ork C ity

1. Exclusive of loans and federal funds transactions with domestic commercial
banks.
2. All demand deposits except U.S. government and domestic banks less cash
items in process of collection.




3. Loans sold are those sold outright to a bank’s own foreign branches, non­
consolidated nonbank affiliates of the bank, the bank’s holding company (if not
a bank), and nonconsolidated nonbank subsidiaries of the holding company.
4. Excludes trading account securities.

A 24
1.31

D om estic Financial Statistics □ August 1980
LARGE WEEKLY REPORTING COMMERCIAL BANKS

Domestic Classified Commercial and Industrial Loans

Millions of dollars
Outstanding

Net change during

1980

Industry classification

1979

Adjust­
ment
bank

1980

Mar. 26

Apr. 30

May 28

June 25

July 30p

1 Durable goods manufacturing ............

25,061

24,081

22,939

22,729

22,485

1,422

-2,332

-1,142

-210

-244

46

2 Nondurable goods manufacturing.......
3 Food, liquor, and tobacco................
4 Textiles, apparel, and leather .........
5 Petroleum refining ..........................
6 Chemicals and rubber .....................
7 Other nondurable goods.................

19,824
4,923
4,480
3,139
3,911
3,370

18,683
4,176
4,614
2,611
3,903
3,379

18,075
3,859
4,668
2,490
3,761
3,299

18,344
3,701
4,934
2,715
3,710
3,284

18,546
3,900
5,065
2,615
3,717
3,248

580
-302
132
461
61
229

-1,480
-1,222
454
-424
-202
-86

-608
-317
53
-122
-142
-80

269
-158
267
225
-51
-15

202
198
131
-99
7
-35

39
6
6
1
14
12

Q2

Ql

May

June

JulyP

8 Mining (including crude petroleum
and natural gas) ..........................

12,596

13,272

13,588

13,758

13,649

585

1,162

316

170

-108

14

9 Trade ................................................
10 Commodity dealers ........................
11 Other wholesale .............................
12 Retail .............................................

25,456
1,816
12,097
11,543

25,406
1,784
12,050
11,572

24,833
1,639
11,645
11,549

24,593
1,531
11,673
11,389

24,329
1,666
11,585
11,078

450
-323
71
702

-863
-285
-424
-154

-572
-144
-405
-23

-240
-108
28
-160

-264
135
-88
-311

121
6
34
82

14
15
16

13 Transportation, communication,
and other public utilities..............
Transportation ...............................
Communication...............................
Other public utilities ......................

18,292
7,516
2,747
8,028

18,832
7,692
2,846
8,293

18,507
7,543
2,800
8,164

18,745
7,600
2,839
8,306

18,999
7,754
2,883
8,362

448
376
224
-152

453
83
92
278

-325
-150
-46
-130

238
57
39
142

254
154
44
56

14
7
1
5

17 Construction ......................................
18 Services .............................................
19 All other1 ...........................................

5,874
20,211
15,655

5,902
20,444
15,640

5,832
19,977
15,125

5,970
20,299
14,999

5,781
20,612
14,900

73
715
550

96
89
-656

-70
-468
-515

138
323
-126

-189
313
-99

23
96
288

142,969

142,260

138,876

139,438

139,302

4,823

-3 ,5 3 1

- 3 ,3 8 4

561

-1 3 5

641

75,997

76,192

74,862

74,295

74,832

3,514

-1,702

-1,330

-567

537

33

20

Total domestic lo a n s ....................................

21

M emo : Term

loans (original maturity
more than 1 year) included in do­
mestic loans .................................

1. Includes commercial and industrial loans at a few banks with assets of $1
billion or more that do not classify their loans.

1.31.1

N ote . New series. The 134 large weekly reporting commercial banks with domestic assets of $1 billion or more as of December 31, 1977, are included in this
series. The revised series is on a last-Wednesday-of-the-month basis.

MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS'
Monthly averages, billions of dollars
December outstanding

Outstanding in 1979 and 1980

Source
1976

1
2
3
4
5
6

Total nondeposit funds
Seasonally adjusted2 .........................................................
Not seasonally adjusted ....................................................
Federal funds, RPs, and other borrowings from nonbanks
Seasonally adjusted3 .........................................................
Not seasonally adjusted ....................................................
Net Eurodollar borrowings, not seasonally adjusted..............
Loans sold to affiliates, not seasonally adjusted4-5 ...............

1977

1978

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May

June

54.7
53.3

61.8
60.4

85.4
84.4

124.0
126.8

118.8
117.4

122.5
121.2

129.2
125.9

133.4
130.4

124.2
121.2

120.1
123.2

110.9
111.0

47.1
45.8
3.7
3.8

58.4
57.0
-1.3
4.8

74.8
73.8
6.8
3.8

85.9
88.6
34.6
3.6

88.0
86.5
28.1
2.8

92.0
90.6
27.9
2.7

97.2
93.9
29.4
2.6

97.9
94.8
32.9
2.6

94.8
91.7
26.8'
2.6

94.2
97.4
23.2
2.6

93.1
93.1
15.1
2.8

-6.0
12.8
6.8

-12.5
21.1
8.6

-10.2
24.9
14.7

11.4
21.7
33.0

6.4
22.9
29.3

5.9
23.0
28.9

6.6
23.4
29.8

9.3
23.6
32.9

6.0'
24.4
30.4

2.7
27.3
30.0

-5.2
29.7
24.7

9.7
8.3
18.1
27.9
27.0
3.9
4.4
137.7
140.0

11.1
10.3
21.4
36.3
35.1
4.4
5.1
162.0
165.4

17.0
23.2
14.2
26.5
31.2
49.7
46.5
44.8
48.1
43.6
8.7
5.8
10.3C
5.6
213.0 228.5
217.9 229.9

21.7
28.9
50.5
49.2
47.9
8.1
9.6
227.7
233.0

22.0
29.6
51.6
51.0
48.3'
12.7
12.7
229.1
233.0

22.8
30.4
53.2
49.5
48.2
11.3
11.7
235.6
236.8

23.6
31.9'
55.6
45.0'
44.1'
7.5
7.8
237.1
239.2

20.9
28.5
49.4
41.5
40.6'
8.6
9.0
240.3
238.4

20.5
27.9
48.3
40.1'
42.1'
9.4
8.4
242.0
240.1

20.2
28.4
48.6
45.0
44.7
8.6
10.0
237.0
234.9

M emo

7 Domestic chartered banks net positions with own foreign
branches, not seasonally adjusted6 .................................
8 Gross due from balances ..................................................
9 Gross due to balances.......................................................
10 Foreign-related institutions net positions with directly related
institutions, not seasonally adjusted7 .............................
11 Gross due from balances ..................................................
12 Gross due to balances.......................................................
13 Security RP borrowings, seasonally adjusted8 ......................
14 Not seasonally adjusted ....................................................
15 U.S. Treasury demand balances, seasonally adjusted9 ..........
16 Not seasonally adjusted ....................................................
17 Time deposits, $100,000 or more, seasonally adjusted10.......
18 Not seasonally adjusted ....................................................

1. Commercial banks are those in the 50 states and the District of Columbia
with national or state charters plus U.S. branches, agencies, and New York in­
vestment company subsidiaries of foreign banks and Edge Act corporations.
2. Includes seasonally adjusted federal funds, RPs, and other borrowings from
nonbanks and not seasonally adjusted net Eurodollars and loans to affiliates.
Includes averages of Wednesday data for domestic chartered banks and averages
of current and previous month-end data for foreign-related institutions.
3. Other borrowings are borrowings on any instrument, such as a promissory
note or due bill, given for the purpose of borrowing money for the banking business.
This includes borrowings from Federal Reserve Banks and from foreign banks,
term federal funds, overdrawn due from bank balances, loan RPs, and partici­
pations in pooled loans. Includes averages of daily figures for member banks and
averages of current and previous month-end data for foreign-related institutions.




4. Loans initially booked by the bank and later sold to affiliates that are still
held by affiliates. Averages of Wednesday data.
5. As of Dec. 1, 1979, loans sold to affiliates were reduced $800 million due to
corrections of two New York City banks.
6. Includes averages of daily figures for member banks and quarterly call report
figures for nonmember banks.
7. Includes averages of current and previous month-end data until August 1979;
beginning September 1979 averages of daily data.
8. Based on daily average data reported by 122 large banks beginning February
1980 and 46 banks before February 1980.
9. Includes U.S. Treasury demand deposits and Treasury tax-and-loan notes at
commercial banks. Averages of daily data.
10. Averages of Wednesday figures.

Deposits and Commercial Paper
1.32

A25

GROSS DEMAND DEPOSITS of Individuals, Partnerships, and Corporations1
Billions of dollars, estimated daily-average balances
Commercial banks
Type of holder
1975
Dec.

1976
Dec.

19792

1978

1977
Dec.

Dec.

Mar.

June

1980
Sept.

Dec.

Mar.

June

1 AH holders—Individuals, partnerships, and
corporations..................................................

236.9

250.1

274.4

294.6

270.4

285.6

292.4

302.2

288.4

288.6

2
3
4
5
6

20.1
125.1
78.0
2.4
11.3

22.3
130.2
82.6
2.7
12.4

25.0
142.9
91.0
2.5
12.9

27.8
152.7
97.4
2.7
14.1

24.4
135.9
93.9
2.7
13.5

25.4
145.1
98.6
2.8
13.7

26.7
148.8
99.2
2.8
14.9

27.1
157.7
99.2
3.1
15.1

28.4
144.9
97.6
3.1
14.4

27.7
145.3
97.9
3.3
14.4

Financial business ...............................................
Nonfinancial business ..........................................
Consumer ...........................................................
Foreign................................................................
Other ..................................................................

Weekly reporting banks

1975
Dec.

7 All holders—Individuals, partnerships, and
corporations..................................................
8
9
10
11
12

Financial business ...............................................
Nonfinancial business ..........................................
Consumer ...........................................................
Foreign................................................................
Other ..................................................................

1976
Dec.

Dec.

Mar.

June

1980
Sept.

Dec.

Mar.

June

124.4

128.5

139.1

147.0

121.9

128.8

132.7

139.3

133.6

133.9

15.6
69.9
29.9
2.3
6.6

17.5
69.7
31.7
2.6
7.1

18.5
76.3
34.6
2.4
7.4

19.8
79.0
38.2
2.5
7.5

16.9
64.6
31.1
2.6
6.7

18.4
68.1
33.0
2.7
6.6

19.7
69.1
33.7
2.8
7.4

20.1
74.1
34.3
3.0
7.8

20.1
69.1
34.2
3.0
7.2

20.2
69.2
33.9
3.1
7.5

1. Figures include cash items in process of collection. Estimates of gross deposits
are based on reports supplied by a sample of commercial banks. Types of depositors
in each category are described in the June 1971 B ulletin, p. 466.
2. Beginning with the March 1979 survey, the demand deposit ownership survey
sample was reduced to 232 banks from 349 banks, and the estimation procedure
was modified slightly. To aid in comparing estimates based on the old and new
reporting sample, the following estimates in billions of dollars for December 1978
have been constructed using the new smaller sample; financial business, 27.0;
nonfinancial business, 146.9; consumer, 98.3; foreign, 2.8; and other, 15.1

1.33

19793

1978

1977
Dec.

3. After the end of 1978 the large weekly reporting bank panel was changed to
170 large commercial banks, each of which had total assets in domestic offices
exceeding $750 million as of Dec. 31, 1977. See “Announcements,” p. 408 in the
May 1978 B ulletin . Beginning in March 1979, demand deposit ownership esti­
mates for these large banks are constructed quarterly on the basis of 97 sample
banks and are not comparable with earlier data. The following estimates in billions
of dollars for December 1978 have been constructed for the new large-bank panel;
financial business, 18.2; nonfinancial business, 67.2; consumer, 32.8; foreign, 2.5;
other, 6.8.

COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING
Millions of dollars, end of period
1980
Instrument

1976
Dec.

1977
Dec.

1978
Dec.

19791
Dec.

Jan.

Feb.

Mar.

Apr.

May

June

Commercial paper (seasonally adjusted)
1 A11 issuers ...........................................................

53,010

65.036

83,420

112,803

116,718

116,446

119,893

120,865

121,011

123,937

7,263
1,900

8,888
2,132

12,300
3,521

17,579
2,784

17,768
3,034

17,308
3,010

18,254
3,142

18,881
3,467

18,526
3,591

19,100
3,188

32,622
5,959
13,125

40,612
7,102
15,536

51,755
12,314
19,365

64,931
17,598
30,293

66,342
19,221
32,608

65,368
19,922
33,770

64,440
19,338
37,199

66,088
19,143
35,896

63,792
18,824
38,693

62,623
19,436
42,214

Financial companies2

Dealer-placed paper3
Total ................................................................
Bank-related ....................................................
Directly placed paper4
4 Total ................................................................
5 Bank-related ....................................................
6 Nonfinancial companies5 ......................................

2
3

Bankers dollar acceptances (not seasonally adjusted)
7 Total ....................................................................

22,523

25,450

33,700

45,321

47,780

50,269

49,317

50,177

52,636

54,356

10,442
8,769
1,673

10,434
8,915
1,519

8,579
7,653
927

9,865
8,327
1,538

8,578
7,692
886

9,343
8,565
778

8,159
7,560
598

8,159
7,488
670

9,262
8,768
493

10,051
9,113
939

991
375
10,715

954
362
13,700

1
664
24,456

704
1,382
33,370'

0
1,431
37,771

205
1,417
39,303'

171
1,373
39,614

0
1,555
40,463

366
1,718
41,290

373
1,784
43,929

4,992
4,818
12,713

6,378
5,863
13,209

8,574
7,586
17,540

10,270
9,640
25,411

11,217
10,248
26,315

11,393
11,102
27,774

10,926
11,001
27,389

10,946
11,221
28,010

11,651
11,347
29,637

11,536
11,339
31,480

Holder

8 Accepting banks..................................................
9 Own bills .........................................................
10 Bills bought......................................................
Federal Reserve Banks
11 Own account....................................................
12 Foreign correspondents....................................
13 Others ................................................................
Basis

14. Imports into United States...................................
15 Exports from United States.................................
16 All other .............................................................

1. A change in reporting instructions results in offsetting shifts in the dealerplaced and directly placed financial company paper in October 1979.
2. Institutions engaged primarily in activities such as, but not limited to, com­
mercial, savings, and mortgage banking; sales, personal, and mortgage financing;
factoring, finance leasing, and other business lending; insurance underwriting; and
other investment activities.




3. Includes all financial company paper sold by dealers in the open market.
4. As reported by financial companies that place their paper directly with inves­
tors.
5. Includes public utilities and firms engaged primarily in such activities, as
communications, construction, manufacturing, mining, wholesale and retail trade,
transportation, and reserves.

A26
1.35

D om estic Financial Statistics □ A ugust 1980
PRIME RATE CHARGED BY BANKS on Short-Term Business Loans
Percent per annum
Effective date

Rate

Effective Date

Rate

Month

Average
rate

Month

Average
rate

1980—Mar. 4 ..............
7 ..............
14 ..............
19 ..............
28 ..............
Apr. 2 ..............
18 ..............
May 1
2 ...............

17^4
173/4
181/2
19
19Vi
20
19Vz
18V4-19
18Vi

1980—May 7 ...............
16 ...............
23 ...............
30 ...............
June 6 ...............
1 3 ...............
2 0 ...............
July 7 ...............
25 ...............

HVi
16Vz
14Vz

1979—Jan........................
Feb.......................
Mar.......................
Apr.......................
May .....................
June.....................
July .....................
Aug.......................
Sept.......................

11.75
11.75
11.75
11.75
11.75
11.65
11.54
11.91
12.90

1979—Oct........................
Nov.......................
Dec.......................
1980—Jan........................
Feb.......................
Mar.......................
Apr.......................
May .....................
Ju n e.....................
July .....................

14.39
15.55
15.30
15.25
15.63
18.31
19.77
16.57
12.63
11.48

1.35

14
13
12-12VS
12
11.50
11.00

TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, May 5-10, 1980
Size of loan (in thousands of dollars)
Item

All
sizes

1,000
1-24

25-49

50-99

100-499

500-999

and over

Short -T erm C ommercial and
Industrial Loans
1
2
3
4
5

Amount of loans (thousands of d o lla r s ).........................
Number of loans ....................................................................
Weighted-average maturity (months) .............................
Weighted-average interest rate (percent per annum)
Interquartile range1 ...........................................................

17.75
15.62-19.82

885,614
123,866
3.2
17.90
15.12-20.23

518,102
15,129
4.0
18.78
17.72-20.28

697,310
10,596
3.4
18.95
17.50-20.99

2,159,297
11,950
2.7
18.49
17.50-19.82

720,502
1,134
3.0
19.13
18.50-20.39

17.10
14.09-19.59

43.8
50.3
19.0

23.0
26.0
13.9

33.2
34.7
10.7

44.2
48.5
32.2

33.4
47.9
14.1

64.5
60.6
34.5

48.8
54.9
18.8

11,316,521
164,331

2.8

6,335,696
1,656

2.6

Percentage of amount of loans

6 With floating r a t e ....................................................................
7 Made under commitment ....................................................
8 With no stated maturity ......................................................
L ong -T erm C ommercial and
Industrial L oans
9
10
11
12
13

Amount of loans (thousands of d o lla r s ).........................
Number of loans ...................................................................
Weighted-average maturity (months) .............................
Weighted-average interest rate (percent per annum)
Interquartile range1 ...........................................................

1,339,749
15,243
42.8
18.37
17.50-20.00

171,216
13,992
33.9
18.26
15.00-21.34

181,145
845
44.6
18.64
17.75-20.50

105,761
152
42.4
18.62
18.00-20.06

881,627
254
44.2
18.30
17.51-19.75

74.0
71.1

30.1
29.4

76.7

69.4
71.8

82.5
79.7

Percentage of amount of loans
14 With floating r a t e ...................................................................
15 Made under commitment ....................................................

68.6

C onstruction and
L and D evelopment L oans
16
17
18
19
20

Amount of loans (thousands of d o lla r s ).........................
Number of loans ...................................................................
Weighted-average maturity (months) .............................
W eighted-average interest rate (percent per annum)
Interquartile range1 ...........................................................

1,110,511
16,924
7.4
18.32
17.50-20.40

91,724
8,317
3.7
17.14
14.75-19.56

114,305
3,208
4.3
15.68
13.10-18.00

199,312
2,904
7.3
18.69
18.00-20.48

494,589
2,292

19.56
20.00-20.32

210,581
203
9.5
16.99
13.00-19.66

71.0
94.4
45.1
11.9

23.2
82.0
74.3

35.8
96.9
64.4

10.0

48.3
97.9
39:7
7.2

92.4
97.5
25.9
7.8

82.3
87.7
72.2
27.1

35.5

77.0
1.9

86.0

70.9

8.7

3.3

4.4

5.5

10.7

24.7

85.8

19.5
9.5
70.9

8.0

Percentage of amount of loans
21
22
23
24

With floating r a t e ...................................................................
Secured by real e s t a t e ...........................................................
Made under commitment ....................................................
With no stated maturity ......................................................

11.0

Type of construction
25 1- to 4-family ..........................................................................
26 Multifamily ...............................................................................
27 Nonresidential ........................................................................

5.5

21.1

58.9

All
sizes

10-24

1-9

25-49

50-99

100-249

250
and over

L oans to F armers
28
29
30
31
32

Amount of loans (thousands of d o lla r s ).........................
Number of loans ....................................................................
Weighted-average maturity (months) .............................
Weighted-average interest rate (percent per annum)
Interquartile range1 ...........................................................

33

Feeder livestock ......................................................................
Other livestock ........................................................................
Other current operating e x p e n s e s ....................................
Farm machinery and equipment ......................................
Other ..........................................................................................

34
35
36
37

17.38
16.64-18.50

163,850
44,177
6.4
16.46
14.84-17.81

17.67
16.64
17.49
16.44
17.15

16.35
16.54
16.54
16.23
16.36

1,211,479
64,652

6.6

168,002
11,340
16.98
15.79-18.67

168,990
5,257
7.0
17.10
15.56-18.40

133,979
1,931
5.7
17.38
16.54-18.68

241,236
1,600
5.2
17.40
16.60-18.27

335,423
347
8.7
18.14
17.24-18.64

17.01
14.89
17.20
16.41
17.28

17.63
16.62
17.45
16.64
15.31

17.74
17.37
18.48

17.56

17.98

.7 $

18.61

nS

18.02

6.1

By purpose of loan

1. Interest rate range that covers the middle 50 percent of the total dollar amount
of loans made.
2. Fewer than 10 sample loans.




N ote .

(2)

15.35

For more detail, see the Board’s E . 2(416) statistical release,

(2)
(2)

Securities Markets

A ll

1.36 INTEREST RATES Money and Capital Markets
Averages, percent per annum

1980, week ending

1980
Instrument

1977

1978

1979
Apr.

May

June

July

July 4

July 11

July 18

July 25

Aug. 1

Money market rates
1 Federal funds1 ......................................
Commercial paper2 3
1-month .............................................
3-month .............................................
6-month .............................................
Finance paper, directly placed2'3
5 1-month .............................................
6 3-month .............................................
7 6-month .............................................
8 Prime bankers acceptances, 90-day34 ...
Certificates of deposit, secondary market5
9 1-month .............................................
10 3-month .............................................
11 6-month .............................................
12 Eurodollar deposits, 3-month6 ..............
2
3
4

U.S. Treasury bills37
Secondary market
3-month ..........................................
6-month ..........................................
1-year .............................................
Auction average8
16
3-month ..........................................
17
6-month ..........................................

13
14
15

5.54

11.20

10.98

5.42
5.54
5.60

7.76
7.94
7.99

10.86
10.97
10.91

16.10
15.78
14.93

9.60
9.49
9.29

8.56
8.27
8.03

8.53
8.41
8.29

8.75
8.44
8.26

8.52
8.36
8.21

8.58
8.43
8.30

8.39
8.35
8.26

8.75
8.68
8.61

5.38
5.49
5.50
5.59

7.73
7.80
7.78
8.11

10.78
10.47
10.25
11.04

15.70
14.05
13.68
15.63

9.30
9.09
9.01
9.60

8.01
7.59
7.42
8.31

8.37
8.03
8.03
8.58

8.12
7.60
7.60
8.66

8.35
7.95
7.92
8.58

8.50
8.13
8.14
8.55

8.31
8.10
8.10
8.44

8.55
8.25
8.25
8.97

5.48
5.64
5.92
6.05

7.88
8.22
8.61
8.74

11.03
11.22
11.44
11.96

16.23
16.14
15.80
17.81

9.77
9.79
9.78
11.20

8.53
8.49
8.33
9.41

8.59
8.65
8.73
9.33

8.69
8.70
8.85
9.61

8.58
8.63
8.61
9.23

8.65
8.70
8.79
9.43

8.45
8.50
8.56
9.16

8.78
8.93
9.11
9.30

5.27
5.53
5.71

7.19
7.58
7.74

10.07
10.06
9.75

13.20
12.88
11.97

8.58
8.65
8.66

7.07
7.30
7.54

8.06
8.06
8.00

7.92
7.88
7.86

8.03
7.91

7.98
7.99
7.93

7.93
7.99
7.94

8.44
8.49
8.43

5.265
5.510

7.221
7.572

10.041
10.017

14.003
13.618

9.150
9.149

6.995
7.218

8.126
8.101

8.149
8.097

8.209
8.114

8.169
8.110

7.880
7.906

8.221
8.276

Capital market rates
U .S. T reasury N otes and B onds

18
19
20
21
22
23
24
25
26

Constant maturities9
1-year ...............................................
2-year...............................................
2Vi-year10 ........................................
3-year ...............................................
5-year...............................................
7-year...............................................
10-year .............................................
20-year .............................................
30-year .............................................

27
28

Composite11
3 to 5 years12 ...................................
Over 10 years (long-term) ...............

6.09
6.45

8.34
8.34

6.69 ’
6.99
7.23
7.42
7.67

8.29 ’
8.32
8.36
8.41
8.48
8.49

6.85
7.06

10.67
10.12

9.39
9.45
9.05
9.44
9.95
10.09
10.18
10.44
10.36

8.16
8.73

9.71 ‘
9.52
9.48
9.44
9.33
9.29

13.30
12.50
11.25
12.02
11.84
11.49
11.47
11.42
11.40

8.30
7.89

9.58
8.74

10.83

9.82

5.20
6.12
5.68

5.52
6.27
6.03

5.92
6.73
6.52

7.95
9.19
8.63

32 Seasoned issues, all industries15 ..........

8.43

9.07

10.12

33
34
35
36

Aaa ................................................
Aa ..................................................
A ....................................................
Baa ..................................................

8.02
8.24
8.49
8.97

8.73
8.92
9.12
9.45

9.63
9.94
10.20
10.69

37
38

Aaa utility bonds16
New issue ........................................
Recently offered issues.....................

8.19
8.19

8.96
8.97

7.60
4.56

8.25
5.28

8.54
8.89

9.27 ’
9.53
9.84
10.25
10.32
10.24

8.51
8.94
9.05
9.15
9.47
9.74
10.11
10.15
10.06

‘ 9.16
9.46
9.78
10.18
10.26
10.19

9.40

9.83

9.69

9.77

6.80
8.02
7.59

7.11
7.98
7.63

7.51
8.63
8.13

7.00
8.25
7.88

7.40
8.50
7.95

7.50
8.60
8.03

7.50
8.50
8.19

8.15
9.30
8.59

13.21

12.11

11.64

11.77

11.67

11.68

11.78

11.80

11.94

12.04
13.06
13.55
14.19

10.99
11.91
12.35
13.17

10.58
11.39
11.89
12.71

11.07
11.43
11.95
12.67

10.84
11.29
11.90
12.66

10.94
11.30
11.88
12.61

11.09
11.45
11.94
12.66

11.11
11.50
11.94
12.65

11.33
11.61
12.09
12.70

10.03
10.02

12.90
12.91

11.53
11.64

10.96
11.00

11.60
11.41

11.50
11.18

11.48
11.26

11.54
11.33

11.65
11.44

11.92
12.00

9.07
5.46

11.06
6.05

10.20
5.77

9.78
5.39

9.81
5.20

9.79
5.36

9.95
5.26

9.82
5.17

9.77
5.10

9.70
5.10

8.91 ‘
9.21
9.45
9.78
9.89
9.81

8.65
9.03

8.57
8.95
9.05
9.19
9.44
9.76
10.20
10.29
10.19

8.58
9.02
9.23 ’
9.46
9.76
10.20
10.29
10.20

9.13
9.47
9.70
9.72
9.92
10.20
10.59
10.64
10.58

10.13

State and L ocal N otes and B onds

Moody’s series13
29 Aaa ....................................................
30 B a a ......................................................
31 Bond Buyer series14 ............................
C orpora te B onds

By rating group

39
40

M emo : Dividend/price

ratio17
Preferred stocks...............................
Common stocks ...............................

1. Weekly figures are seven-day averages of daily effective rates for the week
ending Wednesday; the daily effective rate is an average of the rates on a given
day weighted by the volume of transactions at these rates.
2. Beginning November 1977, unweighted average of offering rates quoted by
at least five dealers (in the case of commercial paper), or finance companies (in
the case of finance paper). Previously, most representative rate quoted by those
dealers and finance companies. Before November 1979, maturities for data shown
are 30-59 days, 90-119 days, and 120-179 days for commercial paper; and 30-59
days, 90-119 days, and 150-179 days for finance paper.
3. Yields are quoted on a bank-discount basis.
4. Average of the midpoint of the range of daily dealer closing rates offered for
domestic issues.
5. Five-day average of rates quoted by five dealers (three-month series was
previously a seven-day average).
6. Averages of daily quotations for the week ending Wednesday.
7. Except for auction averages, yields are computed from daily closing bid prices.
8. Rates are recorded in the week in which, bills are issued.
9. Yield on the more actively traded issues adjusted to constant maturities by
the U.S. Treasury, based on daily closing bid prices.
10. Each monthly figure is an average of only five business days near the end
of the month. The rate for each month was used to determine the maximum
interest
rate payable in the following month on small saver certificates, until June




2, 1980. Each weekly figure shown is calculated on a biweekly basis and is the
average of five business days ending on the Monday following the calendar week.
Beginning June 2, the biweekly rate is used to determine the maximum interest
rate payable in the following two-week period on small saver certificates. (See
table 1.16.)
11. Unweighted averages for all outstanding notes and bonds in maturity ranges
shown, based on daily closing bid prices. “Long-term” includes all bonds neither
due nor callable in less than 10 years, including several very low yielding “flower”
bonds.
12. The three- to five-year series has been discontinued.
13. General obligations only, based on figures for Thursday, from Moody’s
Investors Service.
14. Twenty issues of mixed quality.
15. Averages of daily figures from Moody’s Investors Service.
16. 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 closeof-business quotations.
17. Standard and Poor’s corporate series. Preferred stock ratio based on a sample
of ten issues: four public utilities, four industrials, one financial, and one trans­
portation. Common stock ratios on the 500 stocks in the price index.

A28
1.37

D om estic Financial Statistics □ August 1980
STOCK MARKET

Selected Statistics
1980

Indicator

1977

1978

1979'
Jan.

Feb.

Mar.

Apr.

May

June

July

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 ..................................................
6 Standard & Poor’s Corporation (1941-43 = 10)1 .
7 American Stock Exchange (Aug. 31, 1973 = 100)
Volume of trading (thousands of shares)

8 New York Stock Exchange ......................
9 American Stock Exchange ..........................

53.67
57.84
41.07
40.91
55.23
98.18
116.18

53.76
58.30
43.25
39.23
56.74
96.11
144.56

55.67
61.82
45.20
36.46
58.65
98.34
186.56

63.74
72.67
52.61
37.08
64.22
110.87
259.54

66.05
76.42
57.92
36.22
61.84
115.34
288.99

59.52
68.71
51.77
33.38
54.71
104.69
259.79

58.47
66.31
48.62
35.29
57.32
102.97
242.60

61.38
69.39
51.07
37.31
61.47
107.69
258.45

65.43
74.47
54.04
38.50
65.16
114.55
286.21

68.56
78.67
59.14
38.77
66.76
119.83
310.29

20,936
2,514

28,591
3,622

32,233
4,182

52,647
9,363

47,827
6,903

41,736
5,947

32,102
3,428

36,425
3,799

39,518
5,240

46,444
6,195

Customer financing (end-of-period balances, in millions of dollars)
11,035

11,615

11,987'

12,638

11,914

11,309

11,441

11,370

11 Margin stock3 ...........................................
12 Convertible bonds ....................................
13 Subscription issues ....................................

9,740
250
3

10,830
205
1

11,450
164
1

11,820
165'
2'

12,460
175
3

11,740
171
3

11,140
167
2

11,270
167
4

11,200
166
4

Free credit balances at brokers4
14 Margin-account ..........................................
15 Cash-account.............................................

640
2,060

835
2,510

1,050
4,060

1,180
4,680

1,320
4,755

1,365
5,000

1,290
4,790

1,270
4,750

1,345
4,790

10 Regulated margin credit at brokers/dealers2

Margin-account debt at brokers (percentage distribution, end of period)
16 Total ....................................................................
By equity class (in percent)5

17 Under 40 .............................................................
18 40-49 ..................................................................
19 50-59 ..................................................................
20 60-69 ..................................................................
21 70-79 ..................................................................
22 80 or m ore...........................................................

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

18.0
36.0
23.0
11.0
6.0
5.0

33.0
28.0
18.0
10.0
6.0
5.0

16.0
26.0
24.0
14.0
8.0
7.0

13.0
29.0
25.0
16.0
9.0
8.0

16.0
29.0
25.0
14.0
9.0
7.0

45.0
22.0
13.0
9.0
6.0
5.0

28.0
31.0
18.0
10.0
7.0
6.0

19.0
32.0
22.0
12.0
7.0
7.0

17.0
31.0
23.0
13.0
8.0
7.0

n. a.
1

1

Special miscellaneous-account balances at brokers (end of period)
23 Total balances (millions of dollars)6

9,910

13,092

44.9
11.7

45.1
13.6

16,303

16,498

16,687

16,339

16,543

16,920

49.0
8.2

47.4
8.4

41.9
12.4

44.0
11.7

43.6
10.6

43.4
9.0

Distribution by equity status (percent)

24 Net credit status.............................
Debt status, equity of
25 60 percent or more ...................
26 Less than 60 percent ...................

47.0
8.8

Margin requirements (percent of market value and effective date)7
Mar. 11, 1968
27 Margin stocks
28 Convertible bonds
29 Short sales........

70
50
70

1. Effective July 1976, includes a new financial group, banks and insurance
companies. With this change the index includes 400 industrial stocks (formerly
425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and 40
financial.
2. Margin credit includes all credit extended to purchase or carry stocks or
related equity instruments and secured at least in part by stock. Credit extended
is end-of-month data for member firms of the New York Stock Exchange.
In addition to assigning a current loan value to margin stock generally. Regu­
lations T and U permit special loan values for convertible bonds and stock acquired
through exercise of subscription rights.
3. A distribution of this total by equity class is shown on lines 17-22.
4. Free credit balances are in accounts with no unfulfilled commitments to the
brokers and are subject to withdrawal by customers on demand.




80
60
80

May 6, 1970

Dec. 6, 1971

Nov. 24, 1972

65
50
65

55
50
55

65
50
65

Jan. 3, 1974
50
50
50

5. Each customer’s equity in his collateral (market value of collateral less net
debit balance) is expressed as a percentage of current collateral values.
6. Balances that may be used by customers as the margin deposit required for
additional purchases. Balances may arise as transfers based on loan values of other
collateral in the customer's margin account or deposits of cash (usually sales pro­
ceeds) occur.
7. Regulations G, T, and U of the Federal Reserve Board of Governors, pre­
scribed 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 percent) and the
maximum loan value. The term “margin stocks” is defined in the corresponding
regulation.

Thrift Institutions
1.38 SAVINGS INSTITUTIONS

A29

Selected Assets and Liabilities

Millions of dollars, end of period
1980

1979
Account

1977

1978
Sept.

Oct.

Nov.

Dec.

Feb.

Jan.

Mar.

Apr.

May

June/7

594,733

Savings and loan associations
1 Assets ..........................................

459,241

579,307

582,252

585,685

589,498

591,108

593,321

2 Mortgages ...................................
3 Cash and investment securities1 ...
4 Other ..........................................

381,163 432,808 468,307 472,198 474,678 475,797
39,150 44,884 49,3013 49,220 48,180 46,541
38,928 45,850 52,871 54,833 56,064 56,969

476,448
48,473
57,331

477,303
50,168
58,214

479,078
50,899
59,521

480,165
50,576
60,367

480,092 481,149
52,670 52,616
60,559 60,968

5 Liabilities and net w orth..............

459,241 523,542 566,493 576,251

6
7
8
9
10
11

Savings capital..............................
Borrowed money ........................
FHLBB ...................................
Other ......................................
Loans in process..........................
Other ..........................................

523,542 570,479 576,251

578,922

579,307

582,252

585,685

589,498

591,108

593,321

386,800 430,953 462,626 464,489 465,646 470,171
27,840 42,907 52,738 54,268 54,433 55,375
19,945 31,990 37,620 39,223 39,638 40,441
14,934
7,895 10,917 15,118 15,045 14,795
9,911
10,721 10,909 10,766 10,159
9,511
9,904 12,497 14,673 16,324 11,684
9,506

472,236
55,233
40,364
14,869
8,735
13,315

473,862
55,276
40,337
14,939
8,269
15,385

478,265
57,346
42,413
14,933
8,079
12,683

478,591
57,407
42,724
14,683
7,660
14,260

481,613 486,821
55,353 54,923
41,529 40,658
13,824 14,265
6,990
7,126
16,246 13,079

578,922

594,733

12 Net worth2 ...................................

25,184

29,057

31,709

32,055

32,360

32,566

32,733

32,893

33,125

33,190

32,983

32,920

13 Memo: Mortgage loan com­
mitments outstanding3 ..........

19,875

18,911

22,397

20,930

18,029

16,007

15,559

16,744

15,844

14,193

13,929

15,426

Mutual savings banks4
14 Assets ..........................................
15
16
17
18
19
20
21

Loans
Mortgage .................................
Other ......................................
Securities
U.S. government5 .....................
State and local government . ...
Corporate and other6 ................
Cash ...........................................
Other assets.................................

14,287

158,174

163,431

163,133

163,205

163,405

163,252

164,270

165,107

165,366

166,340

88,195
6,210

95,157
7,195

97,973
9,982

98,304
9,510

98,610
9,449

98,908
9,253

98,940
9,804

99,220
10,044

99,151
10,131

99,045
10,187

99,163
10,543

5,895
2,828
37,918
2,401
3,839

4,959
3,333
39,732
3,665
4,131

7,891
3,150
37,076
3,020
4,339

7,750
3,100
37,210
2,909
4,351

7,754
3,003
37,036
3,010
4,343

7,658
2,930
37,086
3,156
4,412

7,387
2,887
37,114
2,703
4,417

7,436
2,853
37,223
3,012
4,481

7,629
2,824
37,493
3,361
4,518

7,548
2,791
37,801
3,405
4,588

7,527
2,727
38,246
3,588
4,547

163,431

163,133

163,205

163,405

163,252

164,270

165,107

165,366

166,340

22 Liabilities ....................................

147,287

158,174

23
24
25
26
27
28
29
30

134,017
132,744
78,005
54,739
1,272
3,292
9,978

142,701 146,252
141,170 144,258
71,816 65,676
69,354 78,572
1,531
2,003
5,790
4,565
10,907 11,388

Deposits ......................................
Regular7 ...................................
Ordinary savings...................
Time and o th er.....................
Other ......................................
Other liabilities............................
General reserve accounts ............
Memo: Mortgage loan com­
mitments outstanding8 ..........

4,066

4,400

4,123

145,096 144,828
143,263 143,064
62,672 61,156
80,591 81,908
1,834
1,764
6,600
6,872
11,437 11,504
3,749

3,619

146,006 145,044 145,171 146,328
144,070 143,143 143,284 144,214
61,123
59,252
58,234
56,948
82,947
83,891
85,050
87,266
1,936
1,901
1,887
2,115
7,135^
5,873c
6,665c
7,485c
11,525^
11,544
11,615
11,643
3,182

2,919

2,618

2,397

n.a.

145,821 146,637
143,765 144,646
54,669
54,247
89,517
89,977
1,990
2,056
7,916c
8,161
11,629
11,542
2,097

1,883

Life insurance companies
31 Assets ..........................................
Securities
Government ............................
United States9 .......................
State and local .....................
Foreign10 ..............................
Business ...................................
Bonds ...................................
Stocks ...................................
Mortgages ...................................
Real estate...................................
Policy loans .................................
Other assets.................................

32
33
34
35
36
37
38
39
40
41
42

351,722 389,924 421,660 423,760 427,496

431,453

436,226'

438,638'

439,733'

442,932' 447,020

20,009 20,379 20,429 20,486
5,122
4,822
5,067
5,075
6,354
6,402
6,295
6,339
9,010
9,017
9,015
8,785
198,105 216,500 216,183 217,856
162,587 177,698 178,633 179,158
35,518 38,802 37,550 38,698
106,167 114,368 115,991 117,253
11,764 12,740 12,816 12,906
30,146 33,046 33,574 34,220
23,733 24,627 24,767 24,775

20,294
4,984
6,392
8,918
218,284
178,828
39,456
118,784
13,047
34,761
26,283

20,378'
4,878'
6,433'
9,067'
222,332'
181,820'
40,512'
119,885'
13,083'
35,302'
25,246'

20,438'
4,898'
6,488'
9,052'
223,423'
182,521'
40,902'
120,926'
13,201'
35,839'
24,811'

20,545'
5,004'
6,454'
9,087'
221,214'
182,536'
38,678'
122,314'
13,512'
36,901'
25,247'

20,470' 20,529
5,059'
5,107
6,351'
6,352
9,060'
9,070
222,175' 223,556
182,750' 183,356
39,425' 40,200
123,587' 124,563
13,696' 13,981
38,166' 38,890
24,838' 25,501

19,553
5,315
6,051
8,187
175,654
141,891
33,763
96,848
11,060
27,556
21,051

n.a.

Credit unions
43 Total assets/liabilities and
capital ...................................

53,755

62,348

66,280

65,063

65,419

65,854

64,506

64,857

65,678

65,190

66,103

68,102

44
45
46
47
48
49
50
51

29,564
24,191
41,845
22,634
19,211
46,516
25,576
20,940

34,760
27,588
50,269
27,687
22,582
53,517
29,802
23,715

36,151
30,129
53,545
29,129
24,416
57,255
31,097
26,158

35,537
29,526
53,533
29,020
24,513
55,739
30,366
25,373

35,670
29,749
56,267
30,613
25,654
55,797
30,399
25,398

35,934
29,920
53,125
28,698
24,426
56,232
35,530
25,702

35,228
29,278
52,089
28,053
24,036
55,447
30,040
25,407

35,425
29,432
51,626
27,783
23,843
55,790
32,256
25,534

36,091
29,587
51,337
27,685
23,652
56,743
30,948
25,795

35,834
29,356
50,344
27,119
23,225
56,338
30,851
25,487

36,341
29,762
49,469
26,550
22,919
57,197
31,403
25,794

37,555
30,547
48,172
25,773
22,399
59,310
32,764
26,546

Federal ........................................
State ...........................................
Loans outstanding .......................
Federal ....................................
State ........................................
Savings ........................................
Federal (shares) .......................
State (shares and deposits).......

For notes see bottom of page A30.




A 30

D om estic Financial Statistics □ August 1980

1.39 FEDERAL FISCAL AND FINANCING OPERATIONS
Millions of dollars
Calendar year
Type of account or operation

year
1977

year
1978

year
1979

1979
HI

U.S. budget

1980
H2

HI

1980
Apr.

May

June

1 Receipts1 ...............................................
2 Outlays' ................................................
3 Surplus, or deficit( - ) ............................
4 Trust funds ........................................
5 Federal funds2 ....................................

357,762
402,725
-44,963
9,497
-54,460

401.997
450,836
-48,839
12.693
-61,532

465.940
493.673
-27.733
18.335
-46.069

246.574
245,616
958
4.041
-3,083'

233,952
263,044
-29.093
9.679
-38.773

270.864
289.899
- 19,035
4.383
-23.418

61.097
51.237
9.860
- 153
10.013

36.071
50.198
- 14.127
6.463
-20.590

59.055
46.702
12.353
1.361
10.992

Off-budget entities (surplus, or deficit
( -) )
6 Federal Financing Bank outlays ............
7 Other3 ..................................................

-8,415
-269

- 10.661
334

- 13,261
832

-7.712
-447

-5.909
805

-7.735
-528

- 1.848'
24

- 1.827'
- 364'

-511
121

-53.647

-59.166

-40.162

-7.201

-34.197

-27.298

8.036

- 16,318'

11.963

53.516

59.106

33.641

6.039

31.320

24.435

4.631

5.350

-4.615

-2.247
2.378

-3,023
3.083

-408
6.929

-8.878
10.040

3.059
- 182

-3.482
6,345

- 13,542
875

9.841
-1,127'

-7,135
-213

19.104
15,740
3,364

22.444
16.647
5.797

24.176
6.489
17.687

17.485
3.290
14.195

15.924
4.075
11.849

14,092
3.199
10.893

18.430
4.561
13.869

10.662
4.523
6.139

14.092
3.199
10,893

U.S. budget plus off-budget, including
Federal Financing Bank

8 Surplus, or deficit ( - ) ........................ .
Source or financing
9 Borrowing from the public.................
10 Cash and monetary assets (decrease, or
increase ( - ))4 .............................
11 Other5 ...............................................
Mlmo:
12 Treasury operating balance (level, end of
period) ...........................................
13 Federal Reserve Banks ......................
14 Tax and loan accounts........................

1. Effective June 1978, earned income credit payments in excess of an indi­
vidual's tax liability, formerly treated as income tax refunds, arc classified as
outlays retroactive to January 1976.
2. Half-year figures are calculated as a residual (total surplus/deficit less trust
fund surplus/deficit).
3. Includes Pension Benefit Guaranty Corporation; Postal Service Fund; Rural
Electrification and Telephone Revolving Fund; and Rural Telephone Bank.
4. Includes U.S. Treasury operating cash accounts; special drawing rights; gold
tranche drawing rights; loans to International Monetary Fund: and other cash and
monetary assets.

5. Includes 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; and profit on the sale of gold.
Sourcli. "Monthly Treasury Statement of Receipts and Outlays of the U.S.
Government, " Treasury Bulletin, and the Budget of the United States Government,
Fiscal Year 1981.

NOTES TO TABLE 1.38
1. Holdings of stock of the Federal Home Loan Banks are included in ‘'other
assets.”
2. Includes net undistributed income, which is accrued by most, but not all.
associations.
3. Excludes figures for loans in process, which arc shown as a liability.
4. The NAMSB reports that, effective April 1979. balance sheet data are not
strictly comparable with previous months. Beginning April 1979, data arc reported
on a net-of-valuation-reserves basis. Prior to that date, data were reported on a
gross-of-valuation-rcserves basis.
5. Beginning April 1979, includes obligations of U.S. government agencies.
Before that date, this item was included in "‘Corporate and other."
6. Includes securities of foreign governments and international organizations
and. prior to April 1979, nonguarantecd issues of U.S. government agencies.
7. Excludes checking, club, and school accounts.
8. Commitments outstanding (including loans in process) of banks in New York
State as reported to the Savings Banks Association of the state of New York.
9. Direct and guaranteed obligations. Excludes federal agency issues not guar­
anteed, which are shown in the table under “Business" securities.




10. Issues of foreign governments and their subdivisions and bonds of the In­
ternational Bank for Reconstruction and Development.
N o i l . Savings and loan associations: Estimates by the FHLBB for all associa­
tions in the United States. Data arc 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.
Life insurance companies: Estimates of the American Council of Life Insurance
for all life insurance companies in the United States. Annual figures arc annualstatement asset values, with bonds carried on an amortized basis and stocks at
year-end market value. Adjustments for interest due and accrued and for differ­
ences between market and book values are not made on each item separately but
are included, in total, in “other assets."
Credit unions: Estimates bv the National Credit Union Administration for a
group of federal and state-chartered credit unions that account for about 30 percent
of credit union assets. Figures are preliminary and revised annually to incorporate
recent benchmark data.

Federal Finance
1.40

A31

U.S. BUDGET RECEIPTS AND OUTLAYS
Millions of dollars
Calendar year
Source or type

Fiscal
year
1977

Fiscal
year
1978

Fiscal
year
1979

1979

1980

HI

H2

HI

1980
Apr.

May

June

R eceipts

1 All sources1 ...........................................

357,762

401,997

465,940

246,574

233,952

270,864

61,097

36,071

59,055

2 Individual income taxes, net .................
3 Withheld ...........................................
4 Presidential Election Campaign Fund .
5 Nonwithheld ......................................
6 Refunds1 ...........................................
Corporation income taxes
7 Gross receipts ....................................
8 Refunds .............................................
9 Social insurance taxes and contributions,
net . .................................................
10 Payroll employment taxes and
contributions2 .............................
11 Self-employment taxes and
contributions3 .............................
12 Unemployment insurance ...................
13 Other net receipts4 .............................

157,626
144,820
37
42,062
29,293

180,988
165,215
39
47,804
32,070

217,841
195,295
36
56,215
33,705

111,603
98,683
32
44,116
31,228

115,488
105,764
3
12,355
2,634

119,988
110,394
34
49,707
40,147

31,488
17,136
7
24,937
10,592

9,275
18,104
7
2,101
10,937

27,791
19,791
4
9,380
1,385

60,057
5,164

65,380
5,428

71,448
5,771

42,427
2,889

29,169
3,306

43,434
4,064

10,244
1,073

1,866
635

16,251
447

108,683

123,410

141,591

75,609

71,031

86,597

15,886

20,787

10,793

88,196

99,626

115,041

59,298

60,562

69,077

10,122

15,376

9,702

4,014
11,312
5,162

4,267
13,850
5,668

5,034
15,387
6,130

4,616
8,623
3,072

417
6,899
3,149

5,535
8,690
3,294

3,545
1,646
573

376
4,495
540

395
177
519

17,548
5,150
7,327
6,536

18,376
6,573
5,285
7,413

18,745
7,439
5,411
9,237

8,984
3,682
2,657
4,501

9,675
3,741
2,900
5,254

11,383
3,443
3,091
6,993

2,269
559
459
1,265

2,502
557
623
1,098

2,497
611
502
1,057

14
15
16
17

Excise taxes...........................................
Customs deposits ...................................
Estate and gift taxes .............................
Miscellaneous receipts5 ..........................
O utlays

402,725

450,836

493,673

245,616

263,044

289,899

51,237

50,198

46,702

National defense....................................
International affairs ...............................
General science, space, and technology ..
Energy ..................................................
Natural resources and environment .......
Agriculture ...........................................

97,501
4,813
4,677
4,172
10,000
5,532

105,186
5,922
4„742
5,861
10,925
7,731

117,681
6,091
5,041
6,856
12,091
6,238

57,643
3,538
2,461
4,417
5,672
3,020

62,002
4,617
3,299
3,281
7,350
1,709

69,132
4,602
3,150
3,126
6,668
3,193

11,593
837
508
625
1,123
156

11,543
648
516
624
1,130
478

11,885
325
527
657
1,159
623

Commerce and housing credit................
Transportation ......................................
Community and regional development ...
Education, training, employment, social
services ...........................................
29 Health ...................................................
30 Income security1 ....................................

-44
14,636
6,348

3,324
15,445
11,039

2,565
17,459
9,482

60
7,688
4,499

3,002
10,298
4,855

3,878
9,582
5,302

696
1,655
718

1,133
1,419
836

924
1,846
966

20,985
38,785
137,915

26,463
43,676
146,212

29,685
49,614
160,198

14,467
24,860
81,173

14,579
26,492
86,007

16,686
29,299
94,600

2,861
5,094
16,456

2,521
4,970
16,115

2,560
4,948
15,150

18,038
3,600
3,312
9,499
38,009
-15,053

18,974
3,802
3,737
9,601
43,966
-15,772

19,928
4,153
4,153
8,372
52,556
-18,489

10,127
2,096
2,291
3,890
26,934
-8,999

10,113
2,174
2,103
4,286
29,045
-12,164

9,758
2,291
2,422
3,940
32,658
-10,387

2,006
417
229
1,739
5,177
-654

18 All types1 ...............................................
19
20
21
22
23
24
25
26
27
28

31
32
33
34
35
36

Veterans benefits and services................
Administration of justice ......................
General government .............................
General-purpose fiscal assistance ..........
Interest6 .................................................
Undistributed offsetting receipts6-7 .........

1. Effective June 1978, earned income credit payments in excess of an indi­
vidual’s tax liability, formerly treated as income tax refunds, are classified as
outlays retroactive to January 1976.
2. Old-age, disability, and hospital insurance, and railroad retirement accounts.
3. Old-age, disability, and hospital insurance.
4. Supplementary medical insurance premiums, federal employee retirement
contributions, and Civil Service retirement and disability fund.
5. Deposits of earnings by Federal Reserve Banks and other miscellaneous re­
ceipts.




2,795
397
382
238
5,299
-845c

632
363
426
53
9,565
-5,905

6. Effective September 1976, “Interest” and “Undistributed offsetting receipts”
reflect the accounting conversion for the interest on special issues for U.S. gov­
ernment accounts from an accrual basis to a cash basis.
7. Consists of interest received by trust funds, rents and royalties on the Outer
Continental Shelf, and U.S. government contributions for employee retirement.
Source . “Monthly Treasury Statement of Receipts and Outlays of the U.S.
Government” and the Budget of the U.S. Government, Fiscal Year 1981.

A32

D om estic Financial Statistics □ August 1980

1.41 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION
Billions of dollars
1977

1978

1979

1980

Item
Dec. 31

June 30

Sept. 30

Dec. 31

Mar. 31

June 30

Sept. 30

Dec. 31.

Mar. 31

1 Federal debt outstanding.............................................

729.2

758.8

780.4

797.7

804.6

812.2

833.8

852.2

870.4

2 Public debt securities..................................................
3 Held by public .......................................................
4 Held by agencies ....................................................

718.9
564.1
154.8

749.0
587.9
161.1

771.5
603.6
168.0

789.2
619.2
170.0

796.8
630.5
166.3

804.9
626.4
178.5

826.5
638.8
187.7

845.1
658.0
187.1

863.5
677.1
186.3

5 Agency securities .......................................................
6 Held by public .......................................................
7 Held by agencies ....................................................

10.2
8.4
1.8

9.8
8.0
1.8

8.9
7.4
1.5

8.5
7.0
1.5

7.8
6.3
1.5

7.3
5.9
1.5

7.2
5.8
1.5

7.1
5.6
1.5

7.0
5.5
1.5

8 Debt subject to statutory limit ............... ....................

720.1

750.2

772.7

790.3

797.9

806.0

827.6

846.2

864.5

9 Public debt securities..................................................
10 Other debt1 ................................................................

718.3
1.7

748.4
1.8

770.9
1.8

788.6
1.7

796.2
1.7

804.3
1.7

825.9
1.7

844.5
1.7

862.8
1.7

11

752.0

752.0

798.0

798.0

798.0

830.0

830.0

879.0

879.0

M emo .

Statutory debt limit ........................................

1. Includes guaranteed debt of government agencies, specified participation
certificates, notes to international lending organizations, and District of Columbia
stadium bonds.

1.42

GROSS PUBLIC DEBT OF U.S. TREASURY

N otl .

Data from Treasury Bulletin (U.S. Treasury Department),

Types and Ownership

Billions of dollars, end of period
1980
Type and holder

1976

1977

1978

1979
Mar.

Apr.

May

June

July

653.5

718.9

789.2

845.1

863.5

870.0

877.9

877.6

881.7

2 Interest-bearing debt ..................................................
3 Marketable ................................................................
4 Bills .......................................................................
5 Notes .....................................................................
6 Bonds .....................................................................
7 Nonmarketable1 .........................................................
8 Convertible bonds2 ................................................
9 State and local government series............................
10 Foreign issues3 .......................................................
11
Government .......................................................
12
Public ..................................................................
13 Savings bonds and notes..........................................
14 Government account series4 ....................................

652.5
363.2
164.0
216.7
40.6
231.2
2.3
4.5
22.3
22.3
0
72.3
129.7

715.2
459.9
161.1
251.8
47.0
255.3
2.2
13*9
22 2

844.0
530.7
172.6
283.4
74.7
313.2
2.2
24.6
28.8
23.6
5.3
79.9
177.5

862.2
557.5
190.8
290.4
76.3
304.7
2.2
23.9
26.9
20.5
6.4
76.0
175.5

868.9
564.9
195.3
291.8
77.7
304.0

873.5
567.6
195.4
291.5
80.6
306.0

876.3
566.7
184.7
301.5
80.6
309.5

880.4
576.1
191.5
302.6
82.0
304.3

0
77.0
139.8

782.4
487.5
161.7
265.8
60.0
294.8
2.2
24.3
29.6
28.0
1.6
80.9
157.5

23.7
26.3
19.8
6.4
74.2
179.7

23.6
25.9
19.5
6.4
73.6
182.6

23.6
25.5'
19.0'
6.4'
73.4
186.8

23.5
25.8
19.3
6.4
73.3
181.5

15 Non-interest-bearing d e b t...........................................

1.1

3.7

6.8

1.2

1.2

1.1

4.4

1 Total gross public debt ...............................................
By type

By holder5

22.2

—

—

U.S. government agencies and trust funds.................
Federal Reserve Banks...............................................
Private investors.........................................................
Commercial banks ......................................................
Mutual savings banks .................................................
Insurance companies ..................................................
Other companies .......................................................
State and local governments ......................................

147.1
97.0
409.5
103.8
5.9
12.7
27.7
41.6

154.8
102.5
461.3
101.4
5.9
15.5
22.7
54.8'

170.0
109.6
508.6
94.7'
5.0'
14.9'
20.5'
70.1'

187.1
117.5
540.5
97.0
4.2
14.4
23.9
68.2

186.2
116.7
560.5
99.3
4.2
14.5
25.7
74.6

188.2
118.8
563.0
99.2
4.1
14.2
25.7
73.9

190.7
124.0
562.9
100.0
4.1
13.7
25.0
74.8

Individuals
24 Savings bonds .........................................................
25 Other securities ......................................................
26 Foreign and international6 .........................................
27 Other miscellaneous investors7 ...................................

72.0
28.8
78.1
38.9

76.7
28.6
109.6
46.0'

80.7'
30.1'
137.8'
54.9'

79.9
34.2
123.8
94.8

76.0
40.7
119.8
105.7

74.2
43.8
116.4
111.5

73.4
43.0
117.2
111.7

16
17
18
19
20
21
22
23

1. Includes (not shown separately): Securities issued to the Rural Electrification
Administration, depository bonds, retirement plan bonds, and individual retire­
ment bonds.
2. These nonmarketable bonds, also known as Investment Series B Bonds, may
be exchanged (or converted) at the owner’s option for l '/2 percent, 5-year mar­
ketable Treasury notes. Convertible bonds that have been so exchanged are re­
moved from this category and recorded in the notes category (line 5).
3. Nonmarketable dollar-denominated and foreign currency-denominated series
held by foreigners.
4. Held almost entirely by U.S. government agencies and trust funds.
5. Data for Federal Reserve Banks and U.S. government agencies and trust
funds are actual holdings; data for other groups are Treasury estimates.




—

1.3

n.a.

__

1.3

n. a.

6. Consists of the investments of foreign balances and international accounts in
the United States. Beginning with July 1974, the figures exclude non-interestbearing notes issued to the International Monetary Fund.
7. Includes savings and loan associations, nonprofit institutions, corporate pen­
sion trust funds, dealers and brokers, certain government deposit accounts, and
government 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 of the Public Debt of the United
States (U.S. Treasury Department); data by holder from Treasury Bulletin.

Federal Finance
1.43

U.S. GOVERNMENT MARKETABLE SECURITIES

A 33

Ownership, by maturity

Par value; millions of dollars, end of period
1980

1980
Type of holder

1978

1979

1978
Apr.

1979
Apr.

May

May

1 to 5 years

All maturities
1 All holders................................................................................

487,546

530,731

564,869

567,560

162,886

164,198

178,231

176,354

2 U.S. government agencies and trust funds...............................
3 Federal Reserve Banks.............................................................

12,695
109,616

11,047
117,458

10,760
118,825

10,382
124,003

3,310
31,283

2,555
28,469

2,241
31,036

2,558
32,962

4 Private investors.......................................................................
5 Commercial banks ................................................................
6 Mutual savings banks .................................................... .
7 Insurance companies .............................................................
8 Nonfinancial corporations ....................................................
9 Savings and loan associations ...............................................
10 State and local governments ................................................
11 All others ............................................................................

365,235
68,890
3,499
11,635
8,272
3,835
18,815
250,288

402,226
69,076
3,204
11,496
8,433
3,209
15,735
291,072

435,284
67,715
3,121
11,425
8,327
3,049
17,695
323,950

433,175
68,366
3,083
11,029
7,972
3,198
18,088
321,438

128,293
38,390
1,918
4,664
3,635
2,255
3,997
73,433

133,173
38,346
1,668
4,518
2,844
1,763
3,487
80,546

144,954
39,019
1,609
4,340
2,880
1,770
4,181
91,154

140,835
38,490
1,523
4,217
2,795
1,859
4,186
87,765

5 to 10 years

Total, within 1 year
12 All holders................................................................................

228,516

255,252

268,964

274,175

50,400

50,440

53,790

51,460

13 U.S. government agencies and trust funds...............................
14 Federal Reserve Banks.............................................................

1,488
52,801

1,629
63,219

1,363
62,601

1,086
63,190

1,989
14,809

871
12,977

1,650
12,029

1,398
13,745

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

174,227
20,608
817
1,838
4,048
1,414
8,194
137,309

190,403
20,171
836
2,016
4,933
1,301
5,607
155,539

205,000
18,752
786
1,730
4,126
1,051
6,145
172,409

209,899
20,636
868
1,714
4,032
1,204
6,640
174,806

33,601
7,490
496
2,899
369
89
1,588
20,671

36,592
8,086
459
2,815
308
69
1,540
23,314

40,111
7,451
485
3,170
393
160
1,959
26,493

36,317
6,745
458
2,956
348
68
1,749
23,993

10 to 20 years

Bills, within 1 year
23 All holders................................................................................

161,747

172,644

195,296

195,387

19,800

27,588

30,754

29,454

24 U.S. government agencies and trust funds...............................
25 Federal Reserve Banks.............................................................

2
42,397

0
45,337

1
46,335

1
49,195

3,876
2,088

4,520
3,272

3,772
3,842

3,608
3,577

26 Private investors.......................................................................
27 Commercial banks ................................................................
28 Mutual savings banks ...........................................................
29 Insurance companies ............................................................
30 Nonfinancial corporations ....................................................
31 Savings and loan associations ...............................................
32 State and local governments ................................................
33 All others ............................................................................

119,348
5,707
150
753
12
262
5,524
105,161

127,306
5,938
262
473
2,793
219
3,100
114,522

148,960
6,693
182
379
2,294
211
4,007
135,195

146,191
7,057
176
386
1,906
273
4,378
132,016

13,836
956
143
1,460
86
60
1,420
9,711

19,796
993
127
1,305
218
58
1,762
15,332

23,140
1,139
172
1,259
380
54
2,231
17,907

22,270
1,049
161
1,228
306
53
2,259
17,215

Other, within 1 year

Over 20 years

34 All holders................................................................................

66,769

82,608

73,668

78,788

25,944

33,254

33,130

36,117

35 U.S. government agencies and trust funds...............................
36 Federal Reserve Banks.............................................................

1,487
10,404

1,629
17,882

1,362
16,266

1,085
13,996

2,031
8,635

1,472
9,520

1,734
9,318

1,734
10,529

37 Private investors.......................................................................
38 Commercial banks ................................................................
39 Mutual savings banks ...........................................................
40 Insurance companies .............................................................
41 Nonfinancial corporations ....................................................
42 Savings and loan associations ...............................................
43 State and local governments ................................................
44 All others ............................................................................

54,879
14,901
667
1,084
2,256
1,152
2,670
32,149

63,097
14,233
574
1,543
2,140
1,081
2,508
41,017

56,040
12,059
604
1,351
1,833
841
2,138
37,214

63,707
13,579
692
1,328
2,126
931
2,262
42,790

15,278
1,446
126
774
135
17
3,616
9,164

22,262
1,470
113
842
130
19
3,339
16,340

22,079
1,354
69
927
548
13
3,180
15,988

23,855
1,445
73
914
492
15
3,254
17,660

N ote .

Direct public issues only. Based on Treasury Survey of Ownership from

Treasury Bulletin (U.S. Treasury Department).

Data complete for U.S. government agencies and trust funds and Federal Re­
serve Banks, but data for other groups include only holdings of those institutions
that report. The following figures show, for each category, the number and pro­
portion reporting as of May 31, 1980: (1) 5,362 commercial banks,




460 mutual savings banks, and 725 insurance companies, each about 80 percent;
(2) 415 nonfinancial corporations and 481 savings and loan associations, each about
50 percent; and (3) 492 state and local governments, about 40 percent.
“All others,” a residual, includes holdings of all those not reporting in the
Treasury Survey, including investor groups not listed separately.

A34

D om estic Financial Statistics □ A ugust 1980

1.44 U.S. GOVERNMENT SECURITIES DEALERS Transactions
Par value; averages o f daily figures, in millions of dollars
1980
Mar.

1 U.S. government securities
2
3
4
5
6

By maturity

Bills........................
Other within 1 year .
1-5 years ...............
5-10 years .............
Over 10 years ........

Apr,

1980, week ending Wednesday
May

Apr. 2

Apr. 9

Apr. 16

Apr. 23

18,569

20,698

11,435
399
3,599
1,309
1,827

13,032
323
4,339
1,301
1,703

12,995
429
3,846
847
1,503

1,562

1,647

8.579
2,852
7.580

8,221
3,044
6,793

10,004
3,763
7,255

4,334

6,360

10,838

10,285

13,182

17,352

6,746
237
2,320
1,148
388

6,173
392
1,889
965
867

7,915
454
2,417
1,121
1,276

11,723
380
2,780
1,339
1,130

12,885
372
3,610
1,138
1,720

1,607

1,437

1,637

1,466

1,493

8,128
2,875
7,115

8,240
2,820
6,856

7,949
3,052
8,190

7,868
2,750
6,938

7,831
2,900
6,344

11,652
498
3,965
1,392
1,844

15,264
493
3,059
899
1,112

12,360
340
3,034
1,190
2,099

Apr. 30

May 7

13,487
557
5,563
1,174
1,887

By type of customer

7 U.S. government securities
dealers .....................
8 U.S. government securities
brokers .....................
9 Commercial banks ..........
10 All others1 ......................

3,709
2,294
3,567

3,838
1,804
3,508

5,170
1,904
4,660

6,934
2,313
6,614

11 Federal agency securities .

1,729'

1,894'

2,723'

2,923

1,268

1. Includes, among others, all other dealers and brokers in commodities and
securities, foreign banking agencies, and the Federal Reserve System.
N ote . Averages for transactions are based on number of trading days in the
period.

1.45

U.S. GOVERNMENT SECURITIES DEALERS

4,351

5,034

Transactions are market purchases and sales of U.S. government securities deal­
ers reporting to the Federal Reserve Bank of New York. The figures exclude
allotments of, and exchanges for, new U.S. government securities, redemptions
of called or matured securities, or purchases or sales of securities under repurchase,
reverse repurchase (resale), or similar contracts.

Positions and Sources of Financing

Par value; averages of daily figures, in millions of dollars
1980
Item

1979 and 1980, week ending Wednesday

1979
Mar.

Apr

May

Mar. 12

Mar. 19

Mar. 26

Apr. 2

Apr. 9

Apr. 16

Positions1
1 U.S. government securities

5,172

2,656

3,223

2,341

8,036

5,400

2,794

875

2,117

4,923

8,002

8,765

2
3
4
5
6

Bills.................................
Other within 1 y e a r.........
1-5 years ........................
5-10 years ......................
Over 10 years .................

4,772
99
60
92
149

2,452
260
-92
40
-4

3,813
-325
-455
160
30

3,000
-764
-518
336
286

7,870
-1,082'
683
61
505

4,028
-843
726
361
1,128

3,778
-672
-995
390
292

2,005
-773
-1,046
354
335

2,509
-826
-156
287
302

4,886
-970
799
39
170

7,769
-1,028
614
31

8,864
-1,051
318
87

616

546

7 Federal agency securities ..

693

606

1,471

284

1,207

1,254

-36

311

396

699

907

1,067

Financing2
8 All sources ...............................

9,877

10,204

16,003

14,236

19,829

19,358

16,953

13,375

12,624

12,971

17,801

21,376

Commercial banks
New York C ity .....................
Outside New York C ity.........
Corporations3 ..........................
All others.................................

1,313
1,987
2,358
4,158

599
2,174
2,379
5,052

1,396
2,868
3,373
4,104

-297
3,414
3,205
7,913

574
4,215
4,387
10,653

851
3,266
4,651
10,590

520
3,752
3,690
8,991

-474
3,267
2,827
7,754

-902
3,256
3,008
7,262

-1,044
3,405
3,196
7,414

588
3,622
3,793
9,798

1,021
4,417
5,112
10,827

9
10
11
12

1. Net amounts (in terms of par values) of securities owned by nonbank dealer
firms and dealer departments of commercial banks on a commitment, that is,
trade-date basis, including any such securities that have been sold under agree­
ments 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 agreement to resell.
2.Total amounts outstanding of funds borrowed by nonbank dealer firms and
dealer departments of commercial banks against U.S. government and federal




agency securities (through both collateral loans and sales under agreements to
repurchase), plus internal funds used by bank dealer departments to finance po­
sitions in such securities. Borrowings against securities held under agreeement to
resell are excluded when the borrowing contract and the agreement to resell are
equal in amount and maturity, that is, a matched agreement.
3.All business corporations except commercial banks and insurance companies.
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
1979
Agency

1976

1977

1980

1978
Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

1 Federal and federally sponsored agencies1 ...................

103,848

112,472

137,063

161,653

163,290

165,819

167,813

173,216

176,880

2 Federal agencies.........................................................
3 Defense Department2 .............................................
4 Export-import Bank3-4 ...........................................
5 Federal Housing Administration5 ............................
6 Government National Mortgage Association
participation certificates6 .................................
7 Postal Service7 .......................................................
8 Tennessee Valley Authority....................................
9 United States Railway Association7 ........................

22,419
1,113
8,574
575

22,760
983
8,671
581

23,488
968
8,711
588

24,224
748
8,812
545

24,715
738
9,191
537

24,883
729
9,176
539

25,013
719
9,144
546

25,583
709
9,627
550

25,776
688
9,615
537

4,120
2,998
4,935
104

3,743
2,431
6,015
336

3.141
2,364
7,460
356

3.004
1,837
8,825
453

2,979
1,837
8,997
436

2,979
1,837
9,182
441

2,979
1,837
9,347
441

2,979
1,837
9,440
441

2,937
1,837
9,695
467

10 Federally sponsored agencies1 ....................................
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 Farm Credit Banks1
............................
18 Student Loan Marketing Association8 .....................
19 Other .....................................................................

81,429
16,811
1,690
30,565
17,127
10,494
4,330
410
2

89,712
18,345
1,686
31,890
19,118
11,174
4,434
2,548
515
2

113,575
27,563
2,262
41,080
20,360
11,469
4,843
5,081
915
2

137,429
33,296
2,621
47,278
16,006
2,676
584
33,547
1,420
1

138,575
33,330
2,771
48,486
16,006
2,676
584
33,216
1,505
1

140,936
33,122
2,769
49,031
15,106
2,144
584
36,584
1,595
1

142,800
33,102
2,764
50,139
15,106
2,144
584
37,240
1,720
1

147,633
35,309
2,644
51,614
15,106
2,144
584
38,446
1,785
1

151,104
36,352
2,643
52,456
13,940
2,144
584
41 039
1,945
1

28,711

38,580

51,298

66,281

67,383

68,294

69,268

71,885

74,009

Export-import Bank4 ................................................
Postal Service7 ...........................................................
Student Loan Marketing Association8 ........................
Tennessee Valley Authority........................................
United States Railway Association7 ............................

5,208
2,748
410
3,110
104

5,834
2,181
515
4,190
336

6,898
2,114
915
5,635
356

7,953
1,587
1,420
7,100
453

8,353
1,587
1,505
7,272
436

8,353
1,587
1,595
7,457
441

8,353
1,587
1,720
7,622
441

8,849
1,587
1,785
7,715
441

8,849
1,587
1,945
7,970
467

Other Lending10
26 Farmers Home Administration ...................................
27 Rural Electrification Administration ..........................
28 Other .........................................................................

10,750
1,415
4,966

16,095
2,647
6,782

23,825
4,604
6,951

31,950
6,272
9,546

32,050
6,484
9,696

32,145
6,701
10,015

32,565
6,874
10,106

33,410
7,039
11,059

34,755
7,155
11,281

M emo :

20 Federal Financing Bank debt7’9 ...................................
Lending to federal and federally sponsored agencies

21
22
23
24
25

1. In September 1977 the Farm Credit Banks issued their first consolidated
bonds, and in January 1979 they began issuing these bonds on a regular basis to
replace the financing activities of the Federal Land Banks, the Federal Interme­
diate Credit Banks, and the Banks for Cooperatives. Line 17 represents those
consolidated bonds outstanding, as well as any discount notes that have been
issued. Lines 1 and 10 reflect the addition of this item.
2. Consists of mortgages assumed by the Defense Department between 1957
and 1963 under family housing and homeowners assistance programs.
3. Includes participation certificates reclassified as debt beginning Oct. 1, 1976.
4. Off-budget Aug. 17, 1974, through Sept. 30, 1976; on-budget thereafter.
5. Consists of debentures issued in payment of Federal Housing Administration
insurance claims. Once issued, these securities may be sold privately on the se­
curities market.
6. Certificates of participation issued prior to fiscal 1969 by the Government
National Mortgage Association acting as trustee for the Farmers Home Admin­
istration; Department of Health, Education, and Welfare; Department




of Housing and Urban Development; Small Business Administration; and the
Veterans Administration.
7. Off-budget.
8. Unlike other federally sponsored agencies, the Student Loan Marketing As­
sociation may borrow from the Federal Financing Bank (FFB) since its obligations
are guaranteed by the Department of Health, Education, and Welfare.
9. 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.
10. Includes FFB purchases of agency assets and guaranteed loans; the latter
contain loans guaranteed by numerous agencies with the guarantees of any par­
ticular 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.

A 36

D om estic Financial Statistics □ A ugust 1980

1.47 NEW SECURITY ISSUES of State and Local Governments
Millions of dollars
1979

Type of issue or issuer,

1977

Dec.
All issues, new and refunding1 ...............................................

1980

1979

1978

Jan.

Feb.

Mar .p

Apr.P

Mayp

46,769

48,607

43,490

3,583

3,049

2,390

2,385

4,833

4,570

18,042
28,655

17,854
30,658

12,109
31,256

855
2,712

1,166
1,875

935
1,445

731
1,648

1,662
3,170

1,534
3,032

72

95

125

16

6 State .....................................................................................
Special district and statutory authority .................................
8 Municipalities, counties, townships, school districts..............

6,354
21,717
18,623

6,632
24,156
17,718

4,314
23,434
15,617

2,102
896

699
1,392
951

327
1,224
830

1,200
786

466
2,175
2,192

749
2,276
1,539

Issues for new capital, to tal..................................................

36,189

37,629

41,505

3,186

3,022

2,357

2,379

4,704

4,501

5,076
2,951
8,119
8,274
4,676
7,093

5,003
3,460
9,026
10,494
3,526

5,130
2,441
8,594
15,968
3,836
5,536

408
214
409
1,724
157
274

231
172
552
1,290
63
714

356
178
360

191
156

488

297
193

440

1

Type of issue

2
3
4
5

General obligation................................................................
Revenue ..............................................................................
Housing Assistance Administration2 ....................................
U.S. government loans.........................................................

10

8

6

1

4

Type of issuer

7

9

569

393

Use of proceeds

10
11
12
13
14
15

Education ............................................................................
Transportation ..........................................................................................
Utilities and conservation......................................................
Social welfare ............................................................................................
Industrial aid ............................................................................................
Other purposes.....................................................................

6,120

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 contri­
butions to the local authority.

Source .

1,021
103
339

1,133

211
248

299
607
2,062
315
933

688

1,801

484
1,038

Public Securities Association.

1.48 NEW SECURITY ISSUES of Corporations
Millions of dollars
Type of issue or issuer,
or use

1979
1977

1978

1980

1979
Nov.

Oct.

Dec.

Jan/

Feb.

Mar.

Apr.

1 All issues1 ...........................................................

53,792

47,230

51,464

4,601

3,831

3,801

6,210

4,452

4,353

5,646

2 Bonds ..................................................................

42,015

36,872

40,139

3,572

2,612

2,475

4,834

2,856

2,771

4,744

24,072
17,943

19,815
17,057

25,814
14,325

2,669
903

1,583
1,029

1,500
975

2,450
2,384

1,426
1,430

1,985
786

3,828
916

Manufacturing ....................................................
Commercial and miscellaneous ............................
Transportation ....................................................
Public utility .......................................................
Communication ..................................................
Real estate and financial......................................

12,204
6,234
1,996
8,262
3,063
10,258

9,572
5,246
2,007
7,092
3,373
9,586

9,667
3,941
3,102
8,118
4,219
11,095

1,336
221
295
1,124
435
161

319
207
289
658
854
287

308
375
194
763
74
762

943
634
431
1,338
483
1,006

960
262
227
635
533
238

693
215
94
1,423
196
152

1,718
429
158
596
590
1,252

11 Stocks ..................................................................

11,777

10,358

11,325

1,029

1,219

1,326

1,376

1,596

1,582

902

3,916
7,861

2,832
7,526

3,574
7,751

195
834

443
776

282
1,044

287
1,089

88
1,508

525
1,057

223
679

1,189
1,834
456
5,865
1,379
1,049

1,241
1,816
263
5,140
264
1,631

1,679
2,623
255
5,171
303
1,293

151
98

158
286
2
607
2
165

224
430

333
313
59
535

380
426
58
627
39
65

598
404
36
408
27
109

81
374
9
319
53
67

Type of offering

3 Public ..................................................................
4 Private placement ...............................................
5
6
7
8
9
10

Industry group

Type

12 Preferred .............................................................
13 Common .............................................................
Industry group

14 Manufacturing ....................................................
15 Commercial and miscellaneous ............................
16 Transportation ....................................................
17 Public utility .......................................................
18 Communication ..................................................
19 Real estate and financial......................................

1. Figures, which represent gross proceeds of issues maturing in more than one
year, sold for cash in the United States, are principal amount or number of units
multiplied by offering price. Excludes offerings of less than $100,000, secondary
offerings, undefined or exempted issues as defined in the Securities Act of




662
47
70

365
1
306

135

1933, employee stock plans, investment companies other than closed-end, intra­
corporate transactions, and sales to foreigners,
Source .

Securities and Exchange Commission.

Corporate Finance
1.49

OPEN-END INVESTMENT COMPANIES

A 37

Net Sales and Asset Position

Millions of dollars
1979
Item

1978

1980

1979
Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May

June

Investment C ompanies1

1 Sales of own shares2 ...........................................
2 Redemptions of own shares3 ...............................
3 Net sales .............................................................

6,645
7,231
-586

7,495
8,393
-898

690
579
111

748
743
5

957
776
181

773
882
-109

723
892
-169

1,010
762
248

1,175
647
528

1,772
775
997

4 Assets4 ................................................................
Cash position5 ..................................................
5
Other ..............................................................
6

44,980
4,507
40,473

49,493
4,983
44,510

48,613
4,984
43,629

49,277
4,983
44,294

51,278
5,702
45,576

49,512
5,895
43,617

44,581
5,644
38,937

47,270
5,862
41,708

50,539
6,209'
44,330'

52,946
6,495
46,451

5. Also includes all U.S. government securities and other short-term debt se­
curities.

1. Excluding money market funds.
2. Includes reinvestment of investment income dividends. Excludes reinvest­
ment of capital gains distributions and share issue of conversions from one fund
to another in the same group.
3. Excludes share redemption resulting from conversions from one fund to an­
other in the same group.
4. Market value at end of period, less current liabilities.

N ote . Investment Company Institute data based on reports of members, which
comprise substantially all open-end investment companies registered with the Se­
curities and Exchange Commission. Data reflect newly formed companies after
their initial offering of securities.

1.50 CORPORATE PROFITS AND THEIR DISTRIBUTION
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1978
Account

1977

1978

1979

1980

1979
Q3

Q4

Ql

Q2

Q3

Q4

Q l'

1 Profits before tax .................................................

177.1

206.0

236.6

212.0

227.4

233.3

227.9

242.3

243.0

260.4

Profits tax liability...............................................
Profits after tax ..................................................
Dividends ........................................................
Undistributed profits ........................................
Capital consumption allowances ..........................
Net cash flow ......................................................

72.6
104.5
42.1
62.4
109.3
171.7

84.5
121.5
47.2
74.4'
119.8
194.1

92.5
144.1
52.7'
91.4
131.0
222.3'

87.5
124.5
47.8
76.7'
120.5'
197.2'

95.1
132.3
49.7
82.6
123.0'
205.6'

91.3
142.0
51.5
90.5
125.4'
215.9'

88.7
139.3
52.3
86.9'
130.4
217.3

94.0
148.3
52.8
95.5
132.8
228.3

96.1
146.9
54.4
92.5
135.2
227.7

102.4
158.0
56.7
101.3
137.4
238.7

2
3
4
5
6
7

Source . Survey of Current Business (U .S.




Department of Commerce).

A 38
1.51

D om estic Financial Statistics □ August 1980
NONFINANCIAL CORPORATIONS

Current Assets and Liabilities

Billions of dollars, except for ratio
1978
Account

1975

1976

1979

1980

1977
Q3

Q4

Ql'

Q2r

Q3'

Q4r

Ql

1 Current assets......................................................

759.0

826.3

900.9

992.6

1,028.0

1,079.1

1,106.7

1,165.3

1,197.7

1,233.2

2
3
4
5
6

Cash ...................................................................
U.S. government securities .................................
Notes and accounts receivable.............................
Inventories .........................................................
Other ..................................................................

82.1
19.0
272.1
315.9
69.9

87.3
23.6
293.3
342.9
79.2

94.3
18.7
325.0
375.6
87.3

91.7
16.1
376.4
415.5
92.9

103.7
17.8
381.9
428.3
96.3

102.1
19.1
405.6
453.0
99.3

99.7
20.7
418.1
466.9
101.3

103.3
17.7
447.8
490.3
106.1

115.8
17.6
451.8
503.0
109.5

110.5
17.2
465.9
521.2
118.4

7 Current liabilities ................................................

451.6

492.7

546.8

626.0

661.9

701.3

720.4

770.0

801.7

831.4

8 Notes and accounts payable.................................
9 Other ..................................................................

264.2
187.4

282.0
210.6

313.7
233.1

356.2
269.7

375.1
286.8

393.4
307.9

409.2
311.2

441.6
328.3

460.5
341.2

473.3
358.1

10 Net working capital .............................................

307.4

333.6

354.1

366.6

366.1

377.8

386.3

395.3

396.0

401.8

11

1.681

1.677

1.648

1.586

1.553

1.539

1.536

1.513

1.494

1.483

M emo :

Current ratio 1 ........................................

1. Ratio of total current assets to total current liabilities.

All data in this table reflect the most current benchmarks. Complete data are
available upon request from the Flow of Funds Section, Division of Research and
Statistics.

For a description of this series, see “Working Capital of Nonfinancial
Corporations” in the July 1978 B ulletin , pp. 533-37.
N ote :

Source :

1.52

Federal Trade Commission.

BUSINESS EXPENDITURES on New Plant and Equipment
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1979
Industry

1 AH industries.......................................................
Manufacturing

2 Durable goods industries ....................................

3 Nondurable goods industries ...............................
Nonmanufacturing

4 Mining ................................................................
Transportation
5 Railroad ...........................................................
6 Air ..................................................................
7 Other ..............................................................
Public utilities
8 Electric............................................................
9 Gas and other..................................................
10 Communication ..................................................
11 Commercial and other1 ........................................

1978

Q2

Q3

Q4

Ql

Q22

Q32

Q42

177.09

165.94

173.48

179.33

186.95

191.36

191.00

195.54

199.41

31.66
35.96

38.23
40.69

34.00
37.56

36.86
39.56

39.72
40.50

41.30
43.88

42.30
45.01

42.18
44.64

43.70
47.28

44.06
48.07

4.78

5.56

5.46

5.31

5.42

6.06

6.02

6.72

5.88

6.14

3.32
2.30
2.43

3.93
3.24
2.95

4.02
3.35
2.71

3.66
3.26
2.79

4.03
3.10
3.16

4.20
3.39
3.15

4.40
2.98
2.94

3.80
4.33
3.03

3.58
4.23
3.17

4.16
3.47
3.58

29.48
4.70
18.16
25.71

32.56
5.07
20.56
29.35

27.70
4.66
18.75
27.73

28.06
5.18
20.29
28.51

28.32
5.01
20.41
29.66

26.02
5.50
22.71
30.72

Estimates for corporate and noncorporate business, excluding agricul-




Ql
153.82

1. Includes trade, service, construction, finance, and insurance.
2. Anticipated by business.
N ote :

1980

1979

28.78
27.43
27.02
5.57
5.44
5.69
22.48 \> 53.43 V 55.00 |
30.86

25.98
6.19
57.76

ture; real estate operators; medical, legal, educational, and cultural service; and
nonprofit organizations.
S ource : Survey of Current Business

(U.S. Dept, of Commerce).

Corporate Finance

A 39

1.53 DOMESTIC FINANCE COMPANIES Assets and Liabilities
Billions of dollars, end of period
1979
1974

Account

1975

1976

1977

1980

1978
01

Q2

Q3

Q4

Ql

A ssets
A ccounts receivable, gross
Consumer ............................................................................
Business .................................................................................
Total ...................................................................................
L ess: Reserves for unearned income and losses . . .
Accounts receivable, n e t ..................................................
Cash and bank deposits ..................................................
Securities ...............................................................................
All other ...............................................................................

36.1
37.2
73.3
9.0
64.2
3.0
.4
12.0

36.0
39.3
75.3
9.4
65.9
2.9
1.0
11.8

38.6
44.7
83.4
10.5
72.9
2.6
1.1
12.6

44.0
55.2
99.2
12.7
86.5
2.6
.9
14.3

52.6
63.3
116.0
15.6
100.4
3.5
1.3
17.3

54.9
66.7
121.6
16.5
105.1

58.7
70.1
128.8
17.7
111.1

62.3
68.1
130.4
18.7
111.7

65.7
70.3
136.0
20.0
116.0

67.7
70.6
138.4
20.4
118.0

23.81

24.6

25.8

24.9

23.7

9 Total assets .........................................................

79.6

81.6

89.2

104.3

122.4

128.9

135.8

137.4

140.9

141.7

9.7
20.7

8.0
22.2

6.3
23.7

5.9
29.6

6.5
34.5

6.5
38.1

7.3
41.0

7.8
39.2

8.5
43.3

9.7
40.8

4.9
26.5
5.5

4.5
27.6
6.8

5.4
32.3
8.1

6.2
36.0
11.5

8.1
43.6
12.6

6.7
44.5
15.1

8.8
46.0
14.4

9.1
47.5
15.4

8.2
46.7
14.2

7.4
48.9
15.7

1
2
3
4
5
6
7
8

L iabilities

10
11
12
13
14

Bank loans ..........................................................................
Commercial paper .............................................................
Debt
Short-term, n .e .c ..............................................................
Long-term n .e .c ...............................................................
Other .................................................................................

15

Capital, surplus, and undivided p r o f it s ....................

12.4

12.5

13.4

15.1

17.2

18.0

18.2

18.4

19.9

19.2

16 Total liabilities and capital ...................................

79.6

81.6

89.2

104.3

122.4

128.9

135.8

137.4

140.9

141.7

1. Beginning Ql 1979, asset items on lines 6, 7, and 8 are combined.
N ote . Components may not add to totals due to rounding.

1.54

DOMESTIC FINANCE COMPANIES

Business Credit

Millions of dollars, seasonally adjusted except as noted

Type

Accounts
receivable
outstanding
May 31,
19801

Changes in accounts
receivable

Extensions

Repayments

1980

1980

1980

Mar.

Apr.

May

Mar.

Apr.

May

Mar.

Apr.

May

1 Total .............................................................

70,534

-5

277

-507

17,370

14,754

14,422

17,375

14,477

14,929

2 Retail automotive (commercial vehicles).......
3 Wholesale automotive ...................................
4 Retail paper on business, industrial and
farm equipment ....................................
5 Loans on commercial accounts receivable and
factored commercial accounts receivable .
6 All other business credit...............................

14,149
12,685

-250
-415

-364
39

-491
-136

952
4,917

844
4,502

699
3,846

1,202
5,332

1,208
4,463

1,190
3,982

19,947

680

403

-13

1,614

1,304

1,267

934

901

1,280

7,413
16,340

153
-173

-233
432

88
45

7,908
1,979

6,269
1,835

6,814
1,796

7,755
2,152

6,502
1,403

6,766
1,751

1. Not seasonally adjusted.




A40

D om estic Financial Statistics □ August 1980

1.55 MORTGAGE MARKETS
Millions of dollars; exceptions noted.
1980
Item

1976

1977

1978
Jan.

Feb.

Mar.

Apr.

May

June

Terms and yields in primary and secondary markets
P rimary M arkets

Conventional mortgages on new homes
Terms1
1 Purchase price (thousands of dollars).......
2 Amount of loan (thousands of dollars) . . .
3 Loan/price ratio (percent) ......................
4 Maturity (years) ......................................
5 Fees and charges (percent of loan amount)1
6 Contract rate (percent per annum)..........
Yield (percent per annum)

7 FHLBB series3 ........................................
8 HUD series4 ...........................................

48.4
35.9
74.2
27.2
1.44
8.76

54.3
40.5
76.3
27.9
1.33
8.80

62.6
45.9
75.3
28.0
1.39
9.30

76.9
54.4
73.0
28.1
2.11
11.48

8.99
8.99

9.01
8.95

9.54
9.68

11.87
12.80

8.82
8.17

8.68
8.04

9.70
8.98

8.99
9.11

8.73
8.98

9.77
10.01

79.8
56.6
72.5
28.8
1.79
11.60

77.7
55.1
72.0
27.4
1.98
12.25

83.1
59.4
73.6
28.3
2.04
12.64

88.0
61.3
72.4
28.8
2.17
13.26

81.3
58.0
74.1
28.4
2.21
12.24

11.93
14.10

12.62
16.05

13.03
15.55

13.68
13.20

12.66
12.45

12.60
11.94

n.a.
13.16

14.63
13.79

13.45
12.55

11.99
11.30

11.85
11.04

12.90
13.20

14.48
14.12

15.64
16.62

14.61
16.29

12.87
13.54

12.35
12.93

55.419

S econdary M arkets

Yield (percent per annum)

9 FHA mortgages (HUD series)5 ...............
10 GNMA securities6 ...................................
FNMA auctions7
11 Government-underwritten loans ..........
12 Conventional loans .............................

Activity in secondary markets
F ederal N ational M ortgage A ssociation

Mortgage holdings (end of period)

13 Total ..........................................................................................
14 FHA-insured ......................................................................
15 VA-guaranteed .................................................................
16 Conventional ......................................................................
17
18
19
20

Mortgage transactions (during period)
Purchases .................................................................................
Sales ..........................................................................................

Mortgage commitments8
Contracted (during period) .............................................
Outstanding (end of period) ...........................................

32,904
18,916
9,212
4,776

34.370
18.457
9.315
6.597

43.311
21.243
10,544
11.524

52.106
24.906
10.653
16.546

53.063
25.146
10.885
16.853

53,990

54.843

55,328

n.a.
n.a.

17.079

n.a.
n.a.

n.a.
n.a.

17.453

17,858

18,001

3,606
86

4,780
67

12.303
5

1,163
0

1.087'
0

1.063
0

1.021
0

589
0

206
0

6,247
3,398

9.729
4.698

18.960
9,201

508
5,671

999
5,504

825
5.078

507
4.371

391
4,064

441
4,215

7.974.1
4.846.2

12,978
6,747.2

516.0
213.8

1.169.4
563.7

1.267.3
426.1

493.7
199.4

608.7
214.1

602.5
266.5

5.675.2
3.917.8

9,933.0
5,110.9

443.1
247.2

412.1
147.8

918.6
239.9

135.2
65.8

279.7
109.1

169.7
76.0

4,269
1,618
2,651

3.276
1.395
1.881

3.064
1.243
1.822

4.124
1,098
3,026

4.145
1.092
3.052

4.235
1.086
3.149

4.255
1.080
3.175

4,031
1,076
2,955

4,014
1,072
2,942

1,175
1,396

3,900
4.131

6.524
6.211

280
180

248
207

193
106

231
199

176
391

225
232

1,477
333

5.546
1.063

7,451
1,410

296
779

197
726

186
700

189
643

491
932

577
1,246

n.a.
n.a.

Auction of 4-month commitments to buy

21
22
23
24

Government-underwritten loans
Offered9 ..............................................................................
Accepted ............................................................................
Conventional loans
Offered9 ...............................................................................
Accepted ............................................................................

4.929.8
2.787.2
2.595.7
1.879.2

)

F ederal H ome Loan Mortgage C orporation

25
26
27
28
29
30
31

Mortgage holdings (end of period)10
Total ..........................................................................................
FH A/VA ............................................................................
Conventional ......................................................................

Mortgage transactions (during period)
Purchases .................................................................................
Sales ..........................................................................................

Mortgage commitments11
Contracted (during period) .............................................
Outstanding (end of period) ...........................................

1. Weighted averages based on sample surveys of mortgages originated by major
institutional lender groups. Compiled by the Federal Home Loan Bank Board in
cooperation with the Federal Deposit Insurance Corporation.
2. Includes all fees, commissions, discounts, and "points" paid (by the borrower
or the seller) in order to obtain a loan.
3. Average effective interest rates on loans closed, assuming 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 Department 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 sec­
ondary 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 Associ­
ation guaranteed, mortgage-backed, fully modified pass-through




securities, assuming prepayment in 12 years on pools of 30-year FHA/VA mort­
gages 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 ad­
dition to 1- to 4-family loan commitments accepted in FNMA’s free market auction
system, and through the FNMA-GNMA tandem plans.
9. Mortgage amounts offered by bidders are total bids received.
10. Includes participation as well as whole loans.
11. Includes conventional and government-underwritten loans.

Real Estate Debt

A 41

1.56 MORTGAGE DEBT OUTSTANDING
Millions of dollars, end of period
1979
Type of holder, and type of property

1977

1978

1980

1979
Q2

03

04

Ql

Q2p

1,023,505

1,172,754

l,333,550r

1,252,426

1,295,935

1,333,550

1,362,802

1,385,310

1- to 4-family .............................................................
Multifamily ................................................................
Commercial ................................................................
Farm ..........................................................................

656,566
111,841
189,274
65,824

761,843
121,972
212,746
76,193

872,068'
130,713'
238,412'
92,357'

816,940
125,916
224,499
85,071

846,287
128,270
232,208
89,170

872,068
130,713
238,412
92,357

890,189
132,795
243,839
95,979

903,326
134,603
247,275
100,106

6 Major financial institutions ........................................
7 Commercial banks1 .................................................
8
1- to 4-family ......................................................
9
Multifamily .........................................................
10
Commercial .........................................................
Farm ....................................................................
11

745,011
178,979
105,115
9,215
56,898
7,751

848,095
213,963
126,966
10,912
67,056
9,029

939,487'
245,998'
145,975'
12,546'
77,096'
10,381'

894,385
229,564
136,223
11,708
71,945
9,688

920,231
239,627
142,195
12,221
75,099
10,112

939,487
245,998
145,975
12,546
77,096
10,381

951,898
251,198
149,061
12,811
78,725
10,601

959,294
253,098
150,188
12,908
79,321
10,681

98,908'
64,706'
17,180'
16,963'
59

97,155
63,559
16,876
16,662
58

97,929
64,065
17,010
16,795
59

98,908
64,706
17,180
16,963
59

99,151
64,865
17,223
17,004
59

99,101
64,832
17,214
16,996
59

1 All holders..................................................................
2
3
4
5

12
13
14
15
16

Mutual savings banks .............................................
1- to 4-family ......................................................
Multifamily .........................................................
Commercial .........................................................
Farm ....................................................................

88,104
57,637
15,304
15,110
53

95,157
62,252
16,529
16,319
57

17
18
19
20

Savings and loan associations...................................
1- to 4-family ......................................................
Multifamily .........................................................
Commmercial ......................................................

381,163
310,686
32,513
37,964

432,808
356,114
36,053
40,641

475,797
394,436
37,588
43,773

456,543
377,516
37,071
41,956

468,307
387,992
37,277
43,038

475,797
394,436
37,588
43,773

479,078
397,156
37,847
44,075

481,149
398,872
38,011
44,266

21
22
23
24
25

Life insurance companies ........................................
1- to 4-family ......................................................
Multifamily .........................................................
Commercial .........................................................
Farm ....................................................................

96,765
14,727
18,807
54,388
8,843

106,167
14,436
19,000
62,232
10,499

118,784
16,193
19,274
71,137
12,180

111,123
14,489
19,102
66,055
11,477

114,368
14,884
19,107
68,513
11,864

118,784
16,193
19,274
71,137
12,180

122,471
16,850
19,590
73,618
12,413

125,946
17,879
19,722
75,682
12,663

26 Federal and related agencies......................................
27 Government National Mortgage Association ..........
28
1- to 4-family ......................................................
29
Multifamily .........................................................

70,006
3,660
1,548
2,112

81,853
3,509
877
2,632

97,293
3,852
763
3,089

90,095
3,425
800
2,625

93,143
3,382
780
2,602

97,293
3,852
763
3,089

104,045
3,919
749
3,170

108,658
4,500
860
3,640

30
31
32
33
34

Farmers Home Administration ...............................
1- to 4-family ......................................................
Multifamily .........................................................
Commercial .........................................................
Farm ....................................................................

1,353
626
275
149
303

926
288
320
101
217

1,274
417
71
174
612

1,200
363
75
278
484

1,383
163
299
262
659

1,274
417
71
174
612

2,757
1,139
408
409
801

3,257
1,345
482
483
947

35
36
37

Federal Housing and Veterans Administration.......
1- to 4-family ......................................................
Multifamily .........................................................

5,212
1,627
3,585

5,419
1,641
3,778

5,764
1,863
3,901

5,597
1,744
3,853

5,672
1,795
3,877

5,764
1,863
3,901

5,833
1,908
3,925

5,894
1,953
3,941

38
39
40

Federal National Mortgage Association...................
1- to 4-family ......................................................
Multifamily .........................................................

34,369
28,504
5,865

43,311
37,579
5,732

51,091
45,488
5,603

48,206
42,543
5,663

49,173
43,534
5,639

51,091
45,488
5,603

53,990
48,394
5,596

55,419
49,837
5,582

41
42
43

Federal Land Banks ...............................................
1- to 4-family ......................................................
Farm ....................................................................

22,136
670
21,466

25,624
927
24,697

31,277
1,552
29,725

28,459
1,198
27,261

29,804
1,374
28,430

31,277
1,552
29,725

33,311
1,708
31,603

35,574
1,893
33,681

44
45
46

Federal Home Loan Mortgage Corporation............
1- to 4-family ......................................................
Multifamily .........................................................

3,276
2,738
538

3,064
2,407
657

4,035
3,059
976

3,208
2,489
719

3,729
2,850
879

4,035
3,059
976

4,235
3,210
1,025

4,014
3,037
977

47 Mortgage pools or trusts2 ...........................................
48 Government National Mortgage Association ..........
1- to 4-family ......................................................
49
50
Multifamily .........................................................

70,289
44,896
43,555
1,341

88,633
54,347
52,732
1,615

119,278
76,401
74,546
1,855

102,259
63,000
61,246
1,754

110,648
69,357
67,535
1,822

119,278
76,401
74,546
1,855

124,097
80,905
78,934
1,971

128,740
84,282
82,209
2,073

51
52
53

Federal Home Loan Mortgage Corporation............
1- to 4-family ......................................................
Multifamily .........................................................

6,610
5,621
989

11,892
9,657
2,235

15,180
12,149
3,031

13,708
11,096
2,612

14,421
11,568
2,853

15,180
12,149
3,031

15,454
12,359
3,095

16,120
12,886
3,234

54
55
56
57
58

Farmers Home Administration ...............................
1- to 4-family ......................................................
Multifamily .........................................................
Commercial .........................................................
Farm ....................................................................

18,783
11,397
759
2,945
3,682

22,394
13,400
1,116
3,560
4,318

27,697
14,884
2,163
4,328
6,322

25,551
14,329
1,764
3,833
5,625

26,870
14,972
1,763
4,054
6,081

27,697
14,884
2,163
4,328
6,322

27,738
14,926
2,159
4,495
6,158

28,338
15,248
2,205
4,594
6,291

59 Individual and others3 .................................................
60 1- to 4-family .........................................................
61 Multifamily .............................................................
62 Commerical .............................................................
63 Farm .......................................................................

138,199
72,115
20,538
21,820
23,726

154,173
82,567
21,393
22,837
27,376

177,492'
96,037'
23,436'
24,941'
33,078'

165,687
89,345
22,094
23,770
30,478

171,913
92,580
22,921
24,447
31,965

177,492
96,037
23,436
24,941
33,078

182,762
98,930
23,975
25,513
34,344

188,618
102,287
24,614
25,933
35,784

1. Includes loans held by nondeposit trust companies but not bank trust depart­
ments.
2.Outstanding principal balances of mortgages backing securities insured 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.




N ote . Based on data from various institutional and governmental sources, with
some quarters estimated in part by the Federal Reserve in conjunction with the
Federal Home Loan Bank Board and the Department of Commerce. Separation
of nonfarm mortgage debt by type of property, if not reported directly, and in­
terpolations and extrapolations when required, are estimated mainly by the Federal
Reserve. Multifamily debt refers to loans on structures of five or more units.

A42

D om estic Financial Statistics □ A ugust 1980

1.57 CONSUMER INSTALLMENT CREDIT* Total Outstanding, and Net Change
Millions of dollars
1980
Holder, and type of credit

1977

1978

Apr.

May

Amounts outstanding (end of period)
1 Total ..................................

By major holder

Commercial banks . .. .
Finance companies . .. .
Credit unions ............
Retailers2 ...................
6 Savings and loans.......
7 Gasoline companies ...
8 Mutual savings banks ..

311,122

311,122

308,984

308,190

307,621

306,131

303,759

301,378

112,373
44,868
37,605
23,490
7,354
2,963
2,176

136,189
54,298
45,939
24,876
8,394
3,240
2,693

149,604
68,318
48,186
27,916
10,361
4,316
2,421

149,604
68,318
48,186
27,916
10,361
4,316
2,421

148,868
68,724
47,270
26,985
10,320
4,433
2,384

148,249
69,545
46,707
26,309
10,543
4,467
2,370

147,315
70,421
46,521
25,841
10,755
4,421
2,347

145,405
71,545
45,731
25,746
10,887
4,503
2,314

143,174
72,101
44,907
25,792
10,930
4,581
2,274

140,922
73,118
43,740
25,724
10,995
4,664
2,215

Automobile ...............
10 Commercial banks ..
11
Indirect paper
12
Direct loans.........
13
Credit unions..........
14
Finance companies ..

82,911
49,577
27,379
22,198
18,099
15,235

102,468
60,564
33,850
26,714
21,967
19,937

115,022
65,229
37,209
28,020
23,042
26,751

115,022
65,229
37,209
28,020
23,042
26,751

114,761
64,824
37,020
27,804
22,604
27,333

115,007
64,544
36,949
27,595
22,335
28,128

115,281
64,047
36,821
27,226
22,246
28,988

115,014
62,978
36,325
26,653
21,868
30,168

114,318
61,928
35,791
26,137
21,474
30,916

113,174
60,584
34,929
25.655
20,916
31,674

15
16
17
18

Revolving...................
Commercial banks ..
Retailers.................
Gasoline companies .

39,274
18,374
17,937
2,963

47,051
24,434
19,377
3,240

55,330
28,954
22,060
4,316

55,330
28,954
22,060
4,316

54,420
28,841
21,146
4,433

53,522
28,575
20,480
4,467

52,662
28,241
20,000
4,421

52,217
27,889
19,825
4,503

51,823
27,456
19,786
4,581

51,246
26,926
19.656
4,664

19
20
21
22
23

Mobile home ..............
Commercial banks ..
Finance companies ..
Savings and loans ...
Credit unions..........

15,141
9,124
3,077
2,538
402

16,042
9,553
3,152
2,848
489

17,409
9,991
3,390
3,516
512

17,409
9,991
3,390
3,516
512

17,387
9,968
3,415
3,502
502

17,476
9,974
3,428
3,578
496

17,596
9,978
3,475
3,650
494

17,668
9,965
3,523
3,694
486

17,642
9,927
3,529
3,709
477

17,779
10,039
3,544
3,731
465

24
25
26
27
28
29
30

Other ........................
Commercial banks ..
Finance companies ..
Credit unions..........
Retailers.................
Savings and loans ...
Mutual savings banks

93,503
35,298
26,556
19,104
5,553
4,816
2,176

110,068
41,638
31,209
23,483
5,499
5,546
2,693

123,361
45,430
38,177
24,632
5,856
6,845
2,421

123,361
45,430
38,177
24,632
5,856
6,845
2,421

122,416
45,235
37,976
24,164
5,839
6,818
2,384

122,185
45,156
37,989
23,876
5,829
6,965
2,370

122,082
45,049
37,958
23,781
5,841
7,106
2,347

121,232
44,573
37,854
23,377
5,921
7,193
2,314

119,976
43,863
37,656
22,956
6,006
7,221
2,274

119,179
43,373
37,900
22,359
6,068
7,264
2,215

2
3
4
5

By major type of credit

9

Net change (during period)3
31 Total ..................................................

35,278

44,810

35,491

1,349

1,372

2,295

1,437

-1,985

-3,434

-3,463

18,645
5,948
6,436
2,654
1,111
132
352

23,813
9,430
8,334
1,386
1,041
276
530

13,414
14,020
2,247
3,040
1,967
1,076
-273

218
1,087
-455
282
165
115
-63

433
1,096
-324
120
7
50
-10

783
1,376
-373
53
306
166
-16

17
1,174
-215
243
204
48
-34

-2,237
984
-743
-65
83
14
-21

-2,495
105
-977
-58
75
-42
-42

-2,659
625
-1,362
-108
89
8
-56

39 Automobile ........................................
40 Commercial banks ..........................
41
Indirect paper .............................
42
Direct loans.................................
43 Credit unions...................................
44 Finance companies..........................

15,204
9,956
5,307
4,649
2,861
2,387

19,557
10,987
6,471
4,516
3,868
4,702

12,554
4,665
3,359
1,306
1,075
6,814

682
122
260
-138
-213
773

972
83
72
11
-134
1,023

881
22
48
-26
-177
1,036

395
-412
-86
-326
-82
889

-645
-1,335
-698
-637
-373
1,063

-1,343
-1,246
-626
-620
-482
385

-1,738
-1,519
-945
-574
-660
441

45 Revolving...........................................
46 Commercial banks ..........................
47 Retailers.........................................
48 Gasoline companies ........................

6,248
4,015
2,101
132

7,776
6,060
1,440
276

8,279
4,520
2,683
1,076

432
24
293
115

289
109
130
50

575
383
26
166

611
395
168
48

-388
-260
-142
14

-488
-308
-138
-42

-748
-562
-194
8

49 Mobile hom e......................................
50 Commercial banks ..........................
51 Finance companies ..........................
52 Savings and loans............................
53 Credit unions...................................

565
387
-189
297
70

897
426
74
310
87

1,366
437
238
668
23

108
-22
84
51
-5

120
68
48
10
-6

198
57
32
115
-6

128
17
57
57
-3

36
-30
41
33
-8

-33
-54
5
23
-7

97
74
13
23
-13

54 Other ................................................
55 Commercial banks ..........................
56 Finance companies..........................
57 Credit unions...................................
58 Retailers.........................................
59 Savings and loans............................
60 Mutual savings banks.......................

13,261
4,287
3,750
3,505
553
814
352

16,580
6,340
4,654
4,379
-54
731
530

13,292
3,792
6,968
1,149
357
1,299
-273

127
94
230
-237
-11
114
-63

-9
173
25
-184
-10
-3
-10

641
321
308
-190
27
191
-16

303
17
228
-130
75
147
-34

-988
-612
-120
-362
77
50
-21

-1,570
-887
-285
-488
80
52
-42

-1,074
-652
171
-689
86
66
-56

32
33
34
35
36
37
38

By major holder

Commercial banks ..............................
Finance companies..............................
Credit unions ....................................
Retailers2 ...........................................
Savings and loans...............................
Gasoline companies ............................
Mutual savings banks..........................
By major type of credit

1. The Board’s series cover most short- and intermediate-term credit extended
to individuals through regular business channels, usually to finance the purchase
of consumer goods and services or to refinance debts incurred for such purposes,
and scheduled to be repaid (or with the option of repayment) in two or more
installments.
2. Includes auto dealers and excludes 30-day charge credit held by travel and
entertainment companies.
3. Net change equals extensions minus liquidations (repayments, charge-offs,
and other credit); figures for all months are seasonally adjusted.




N ote . Total consumer noninstallment credit outstanding—credit scheduled to
be repaid in a lump sum, including single-payment loans, charge accounts, and
service credit—amounted to $70.9 billion at the end of 1979, $64.7 billion at the
end of 1978, $58.6 billion at the end of 1977, and $55.4 billion at the end of 1976.

Consumer Debt

A 43

1.58 CONSUMER INSTALLMENT CREDIT Extensions and Liquidations
Millions of dollars; monthly data are seasonally adjusted.
1980

1979
Holder, and type of credit

1977

1978

1979
Dec.

Jan.

Feb.

Mar.

Apr.

May

June

Extensions
254,071

298,351

322,558

25,671

26,702

27,076

26,620

22,548

21,239

20,698

117,896
41,989
34,028
39,133
4,485
14,617
1,923

142,720
50,505
40,023
41,619
5,050
16,125
2,309

149,599
61,518
36,778
46,092
7,333
19,607
1,631

11,370
5,249
2,396
4,054
632
1,895
75

12,126
5,540
2,527
4,010
485
1,889
125

12,004
5,639
2,495
4,042
775
2,004
117

11,315
5,700
2,501
4,358
665
1,987
94

9,338
4,841
1,865
3,870
555
1,978
101

8,812
4,304
1,615
3,880
536
2,011
81

8,574
4,324
1,302
3,881
576
1,971
70

9 Automobile .........................................................
10 Commercial banks ...........................................
11
Indirect paper...............................................
12
Direct loans..................................................
13 Credit unions ..................................................
14 Finance companies...........................................

75,641
46,363
25,149
21,214
16,616
12,662

88,987
53,028
29,336
23,692
19,486
16,473

91,847
50,596
28,183
22,413
18,301
22,950

7,131
3,808
2,181
1,627
1,223
2,100

7,780
4,026
2,154
1,872
1,348
2,406

7,659
3,936
2,096
1,840
1,338
2,385

7,240
3,394
1,978
1,416
1,306
2,540

5,725
2,398
1,433
965
962
2,365

5,192
2,354
1,353
1,001
838
2,000

4,770
2,160
1,092
1,068
708
1,902

15 Revolving ...........................................................
16 Commercial banks ...........................................
17 Retailers .........................................................
18 Gasoline companies..........................................

86,756
38,256
33,883
14,617

104,587
51,531
36,931
16,125

120,728
60,406
40,715
19,607

10,196
4,683
3,618
1,895

10,475
5,030
3,556
1,889

10,458
4,920
3,534
2,004

11,038
5,200
3,851
1,987

10,293
4,929
3,386
1,978

10,089
4,745
3,333
2,011

9,635
4,342
3,322
1,971

19 Mobile home.......................................................
20 Commercial banks ...........................................
21 Finance companies...........................................
22 Savings and loans.............................................
23 Credit unions ..................................................

5,425
3,466
643
1,120
196

6,067
3,704
886
1,239
238

6,395
3,720
797
1,687
191

490
245
97
140
8

558
351
87
112
8

597
304
80
207
6

506
263
90
143
10

436
220
84
128
4

324
166
52
103
3

464
302
53
110
-1

24 Other ..................................................................
25 Commercial banks ...........................................
26 Finance companies...........................................
27 Credit unions ..................................................
28 Retailers .........................................................
29 Savings and loans.............................................
30 Mutual savings banks ......................................

86,249
29,811
28,684
17,216
5,250
3,365
1,923

98,710
34,457
33,146
20,299
4,688
3,811
2,309

103,588
34,877
37,771
18,286
5,377
5,646
1,631

7,854
2,634
3,052
1,165
436
492
75

7,889
2,719
3,047
1,171
454
373
125

8,362
2,844
3,174
1,151
508
568
117

7,836
2,458
3,070
1,185
507
522
94

6,094
1,791
2,392
899
484
427
101

5,634
1,547
2,252
774
547
433
81

5,829
1,770
2,369
595
559
466
70

1 Total ....................................................................
By major holder

2 Commercial banks ...............................................
3 Finance companies...............................................
4 Credit unions ......................................................
5 Retailers1 .............................................................
6 Savings and loans.................................................
7 Gasoline companies.............................................
8 Mutual savings banks ..........................................
By major type of credit

Liquidations
218,793

253,541

287,067

24,322

25,330

24,781

25,183

24,533

24,673

24,161

99,251
36,041
27,592
36,479
3,374
14,485
1,571

118,907
41,075
31,689
40,233
4,009
15,849
1,779

136,185
47,498
34,531
43,052
5,366
18,531
1,904

11,152
4,162
2,851
3,772
467
1,780
138

11,693
4,444
2,851
3,890
478
1,839
135

11,221
4,263
2,868
3,989
469
1,838
133

11,298
4,526
2,716
4,115
461
1,939
128

11,575
3,857
2,608
3,935
472
1,964
122

11,307
4,199
2,592
3,938
461
2,053
123

11,233
3,699
2,664
3,989
487
1,963
126

39 Automobile .........................................................
40 Commercial banks ...........................................
41
Indirect paper...............................................
42
Direct loans..................................................
43 Credit unions ..................................................
44 Finance companies...........................................

60,437
36,407
19,842
16,565
13,755
10,275

69,430
42,041
22,865
19,176
15,618
11,771

79,293
45,931
24,824
21,107
17,226
16,136

6,449
3,686
1,921
1,765
1,436
1,327

6,808
3,943
2,082
1,861
1,482
1,383

6,778
3,914
2,048
1,866
1,515
1,349

6,845
3,806
2,064
1,742
1,388
1,651

6,370
3,733
2,131
1,602
1,335
1,302

6,535
3,600
1,979
1,621
1,320
1,615

6,508
3,679
2,037
1,642
1,368
1,461

45 Revolving ...........................................................
46 Commercial banks ...........................................
47 Retailers .........................................................
48 Gasoline companies..........................................

80,508
34,241
31,782
14,485

96,811
45,471
35,491
15,849

112,449
55,886
38,032
18,531

9,764
4,659
3,325
1,780

10,186
4,921
3,426
1,839

9,883
4,537
3,508
1,838

10,427
4,805
3,683
1,939

10,681
5,189
3,528
1,964

10,577
5,053
3,471
2,053

10,383
4,904
3,516
1,963

49 Mobile home.......................................................
50 Commercial banks ...........................................
51 Finance companies...........................................
52 Savings and loans.............................................
53 Credit unions ..................................................

4,860
3,079
832
823
126

5,170
3,278
812
929
151

5,029
3,283
559
1,019
168

382
267
13
89
13

438
283
39
102
14

399
247
48
92
12

378
246
33
86
13

400
250
43
95
12

357
220
47
80
10

367
228
40
87
12

54 Other ..................................................................
55 Commercial banks ...........................................
56 Finance companies...........................................
57 Credit unions ..................................................
58 Retailers .........................................................
59 Savings and loans.............................................
60 Mutual savings banks ......................................

72,988
25,524
24,934
13,711
4,697
2,551
1,571

82,130
28,117
28,492
15,920
4,742
3,080
1,779

90,296
31,085
30,803
17,137
5,020
4,347
1,904

7,727
2,540
2,822
1,402
447
378
138

7,898
2,546
3,022
1,355
464
376
135

7,721
2,523
2,866
1,341
481
377
133

7,533
2,441
2,842
1,315
432
375
128

7,082
2,403
2,512
1,261
407
377
122

7,204
2,434
2,537
1,262
467
381
123

6,903
2,422
2,198
1,284
473
400
126

31 Total ....................................................................
32
33
34
35
36
37
38

By major holder

Commercial banks ...............................................
Finance companies...............................................
Credit unions ......................................................
Retailers1 .............................................................
Savings and loans.................................................
Gasoline companies.............................................
Mutual savings banks ..........................................
By major type of credit

1. Includes auto dealers and excludes 30-day charge credit held by travel and
entertainment companies.




A 44
1.59

D om estic Financial Statistics □ August 1980
FUNDS RAISED IN U.S. CREDIT MARKETS
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1977
Transaction category, sector

1974

1975

1976

1977

1978

1979

1979

1978

HI

H2

HI

H2

HI

H2

408.5

Nonfinancial sectors
1 Total funds r a is e d ...............................................................
2 Excluding equities ...............................................
By sector and instrument

3 U.S. government ................................................
4 Treasury securities...........................................
5 Agency issues and mortgages............................
6 All other nonfinancial sectors .............................
7 Corporate equities ...........................................
8 Debt instruments .............................................
9 Private domestic nonfinancial sectors...............
10
Corporate equities ........................................
11
Debt instruments ..........................................
12
Debt capital instruments............................
State and local obligations .....................
13
14
Corporate bonds....................................

210.8

271.9

400.3

395.2

187.4

200.7

335.4

398.2

390.9

296.9

378.9

384.5

261.1

373.8

387.1

416.1

383.2

409.3

380.5

11.8
12.0
-.2
179.5
3.8
175.6
164.1
4.1
160.0
98.0
16.5
19.7

85.4
85.8
-.4
125.4
10.1
115.3
112.1
9.9
102.1
98.4
16.1
27.2

69.0
69.1
-.1
202.9
10.8
192.0
182.0
10.5
171.5
123.5
15.7
22.8

56.8
57.6
-.9
281.8
3.1
278.6
267.9
2.7
265.1
175.6
23.7
21.0

53.7
55.1
-1.4
346.6
2.1
344.5
314.4
2.6
311.8
196.6
28.3
20.1

37.4
38.8
-1.4
357.9
4.4
353.5
335.9
3.5
332.4
201.9
21.4
21.2

46.1
46.7
-.6
252.0
1.2
250.8
241.5
.5
241.0
158.7
22.3
16.6

67.4
68.6
-1.2
311.5
5.1
306.4
294.2
4.9
289.3
192.5
25.0
25.4

61.4
62.3
-.9
323.1
-2.6
325.7
302.5
-1.8
304.3
188.0
27.8
20.6

46.0
47.9
-1.9
370.2
6.8
363.4
326.3
7.0
319.2
205.1
28.7
19.6

27.3
29.6
-2.3
355.9
2.7
353.2
340.2
2.8
337.4
202.6
17.4
23.2

47.4
47.9
-.5
361.2
6.0
355.2
333.1
4.1
329.0
201.5
25.3
19.4

39.5
*

96.4
7.4
18.4
8.8
89.5
40.6
27.0
2.9
19.0

104.5
10.2
23.3
10.2
115.2
50.6
37.3
5.2
22.2

110.2
8.9
25.2
15.0
130.5
42.3
50.0
10.9
27.3

89.7
6.4
14.8
9.0
82.3
36.6
27.3
3.4
14.9

103.1
8.4
21.9
8.7
96.7
44.5
26.7
2.4
23.2

99.8
9.3
21.2
9.3
116.3
50.1
43.1
5.3
17.8

109.2
11.2
25.4
11.1
114.1
51.0
31.4
5.1
26.5

111.0

8.1
25.7
17.1
134.8
47.3
47.7
10.8
29.0

109.4
9.8
24.7
13.0
127.4
37.2
53.5
10.9
25.8

191.3

338.5

298.1

402.5

15
16
17
18
19
20
21
22
23

Home ................................................
Multifamily residential ......................
Commercial ........................................
Farm ..................................................
Other debt instruments.............................
Consumer credit ....................................
Bank loans n.e.c.....................................
Open market paper ..................... .......
Other ....................................................

34.8
6.9
15.1
5.0
62.0
9.9
31.7
6.6
13.7

4.6
3.8
9.7
-12.3
-2.6
9.0

63.7
1.8
13.4
6.1
48.0
25.6
4.0
4.0
14.4

24
25
26
27
28
29

By borrowing sector ....................................
State and local governments......................
Households ...............................................
Farm .........................................................
Nonfarm noncorporate .............................
Corporate ................................................

164.1
15.5
51.2
8.0
7.7
81.7

112.1
13.7
49.5
8.8
2.0
38.1

182.0
15.2
90.7
10.9
5.4
59.8

267.9
20.4
139.9
14.7
12.5
80.3

314.4
23.6
162.6
18.1
15.4
94.7

335.9
18.0
164.2
24.6
15.5
113.6

241.5
15.7
129.4
15.7
13.4
67.3

294.2
25.0
150.4
13.8
12.5
92.4

302.5
21.0
156.1
15.3
16.3
93.7

326.3
26.1
169.1
20.8
14.5
95.8

340.2
14.4
167.7
23.4
15.0
119.6

333.1
21.6
160.5
25.8
16.1
109.2

30
31
32
33
34
35
36

Foreign............................................................
Corporate equities ........................................
Debt instruments .........................................
Bonds .......................................................
Bank loans n.e.c.........................................
Open market paper ...................................
U.S. government loans .............................

15.4
-.2
15.7
2.1
4.7
7.3
1.6

13.3
.2
13.2
6.2
3.9
.3
2.8

20.8
.3
20.5
8.6
6.8
1.9
3.3

13.9
.4
13.5
5.1
3.1
2.4
3.0

32.3
-.5
32.8
4.0
18.3
6.6
3.9

22.0
.9
21.1
4.1
2.9
11.2
3.0

10.5
.6
9.9
4.4
-.4
2.7
3.1

17.3
.2
17.1
5.7
6.5
2.2
2.9

20.6
-.8
21.4
5.0
9.3
3.6
3.6

43.9
-.2
44.1
3.0
27.3
9.6
4.2

15.7
-.1
15.8
3.5
3.1
6.1
3.1

28.1
1.9
26.2
4.7
2.3
16.3
2.8

11.0

Financial sectors
37

39.2

12.7

24.1

54.0

81.4

86.2

47.7

60.3

80.7

82.1

87.9

84.5

38 U.S. government related ....................................
39 Sponsored credit agency securities ...................
40 Mortgage pool securities...................................
41 Loans from U.S. government ..........................
42 Private financial sectors ......................................
43 Corporate equities ...........................................
44 Debt instruments .............................................
45
Corporate bonds...........................................
46
Mortgages ....................................................
47
Bank loans n.e.c............................................
Open market paper and repurchase
48

23.1
16.6
5.8
.7
16.2
.3
15.9
2.1
-1.3
4.6
3.8

13.5
2.3
10.3
.9
-.8
.6
-1.4
2.9
2.3
-3.7
1.1

18.6
3.3
15.7
-.4
5.5
1.0
4.4
5.8
2.1
-3.7
2.2

26.3
7.0
20.5
-1.2
27.7
.9
26.9
10.1
3.1
-.3
9.6

41.4
23.1
18.3
0
40.0
1.7
38.3
7.5
.9
2.8
14.6

52.4
24.3
28.1
0
33.8
.9
32.9
6.9
-1.2
-.4
18.4

22.6
7.1
17.9
-2.3
25.1
.9
24.2
10.2
3.1
-1.8
9.8

29.9
6.8
23.1
0
30.4
.8
29.6
10.1
3.0
1.2
9.5

38.5
21.9
16.6
0
42.2
2.2
40.0
8.5
2.1
2.5
13.5

44.3
24.3
20.1
0
37.8
1.1
36.7
6.4
-.3
3.1
15.7

45.9
21.7
24.2
0
41.9
2.7
39.2
8.9
-.4
-1.4
24.4

58.9
26.8
32.0
0
25.7
-1.0
26.7
5.0
-1.9
.5
12.4

Loans from Federal Home Loan Banks.........

6.7

-4.0

-2.0

4.3

12.5

9.2

2.9

5.8

13.2

11.8

7.7

10.6

17.3
5.8
16.2
1.2
3.5
4.8
.9
6.0
.6
-.7

3.2
10.3
-.8
1.2
.3
-2.3
1.0
.5
-1.4
-.1

2.6
15.7
5.5
2.3
-.8
.1
.9
6.4
-2.4
-1.0

5.8
20.5
27.7
1.1
1.3
9.9
.9
17.6
-2.2
-.9

23.1
18.3
40.0
1.3
6.7
14.3
1.1
18.6
-1.0
-1.0

24.3
28.1
33.8
1.6
4.5
9.8
1.0
19.2
-.2
-2.1

4.7
17.9
25.1
.8
1.3
8.3
.9
16.7
-2.4
-.6

6.8
23.1
30.4
1.5
1.2
11.5
1.0
18.5
-2.0
-1.3

21.9
16.6
42.2
1.5
5.8
16.4
1.0
18.9
-1.0
-.5

24.3
20.1
37.8
1.1
7.6
12.2
1.1
18.2
-1.0
-1.5

21.7
24.2
41.9
1.3
6.2
9.9
1.0
24.3
-.5
-.3

26.8
32.0
25.7
1.8
2.9
9.7
.9
14.2
.1
-3.9

Total funds r a is e d ...............................................................

By instrument

49

By sector

50 Sponsored credit agencies....................................
51 Mortgage pools....................................................
52 Private financial sectors ......................................
53 Commercial banks ...........................................
54 Bank affiliates..................................................
55 Savings and loan associations............................
56 Other insurance companies .............................
57 Finance companies...........................................
58 REITs ............................................................
59 Open-end investment companies......................

All sectors
60

Total funds raised, by in str u m e n t................................

230.5

223.5

296.0

392.5

481.7

481.4

345.8

439.2

465.2

498.3

471.0

493.1

61 Investment company shares .................................
62 Other corporate equities......................................
63 Debt instruments ................................................
64 U.S. government securities .............................
65 State and local obligations ...............................
66 Corporate and foreign bonds............................
67 Mortgages .......................................................
68 Consumer credit ...............................................
69 Bank loans n.e.c................................................
70 Open market paper and R P s............................
71 Other loans ......................................................

-.7
4.8
226.4
34.3
16.5
23.9
60.5
9.9
41.0
17.7
22.7

-.1
10.8
212.8
98.2
16.1
36.4
57.2
9.7
-12.2
-1.2
8.7

-1.0
12.9
284.1
88.1
15.7
37.2
87.1
25.6
7.0
8.1
15.3

-.9
4.9
388.5
84.3
23.7
36.1
134.0
40.6
29.8
15.0
25.2

-1.0
4.7
478.0
95.2
28.3
31.6
149.0
50.6
58.4
26.4
38.6

-2.1
7.3
476.2
89.9
21.4
32.2
158.1
42.3
52.5
40.5
39.5

-.6
2.6
343.8
71.2
22.3
31.2
122.9
36.6
25.1
15.9
18.5

-1.3
7.2
433.3
97.4
25.0
41.1
145.1
44.5
34.4
14.0
31.8

-.5
.1
465.5
100.0
27.8
34.2
141.6
50.1
54.9
22.4
34.6

-1.5
9.4
490.4
90.4
28.7
29.1
156.4
51.0
61.8
30.4
42.5

-.3
5.7
465.6
73.4
17.4
35.5
161.4
47.3
49.5
41.3
39.8

-.3.9
8.9
488.1
106.3
25.3
29.1
154.8
37.2
56.3
39.7
39.2




Flow o f Funds

A45

1.60 DIRECT AND INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS
Billions of dollars, except as noted; quarterly data are at seasonally adjusted annual rates
1977
Transaction category, or sector

1 Total funds advanced in credit markets to nonfinancial
sectors ................................................................

1974

1975

1976

1977

1978

1978

1979

1979
HI

H2

HI

H2

HI

H2

187.4

200.7

261.1

355.4

398.2

390.9

296.9

373.8

387.1

409.3

380.5

402.5

53.7
11.9
14.7
6.7
20.5

44.6
22.5
16.2
-4.0
9.8

54.3
26.8
12.8
-2.0
16.6

85.1
40.2
20.4
4.3
20.2

109.7
43.9
26.5
12.5
26.9

80.3
2.2
36.1
9.2
32.8

66.1
27.1
18.9
2.9
17.2

104.2
53.3
22.0
5.8
23.1

102.8
43.7
22.2
13.2
23.7

116.6
44.0
30.7
11.8
30.1

43.6
-27.5
33.7
7.7
29.7

117.6
32.1
38.5
10.6
36.4

9.8
26.5
6.2
11.2
23.1

15.1
14.8
8.5
6.1
13.5

8.9
20.3
9.8
15.2
18.6

11.8
26.8
7.1
39.4
26.3

20.4
44.6
7.0
37.7
41.4

22.6
57.7
7.7
-7.7
52.4

5.9
21.6
10.2
28.3
22.6

17.8
32.0
4.0
50.4
29.9

19.4
39.4
13.4
30.6
38.5

21.4
49.8
.5
44.9
44.3

24.3
50.6
-.8
-30.4
45.9

20.9
64.9
16.4
15.4
58.9

156.8
22.4
16.5
20.9
26.9
76.8
6.7

169.7
75.7
16.1
32.8
23.2
17.9
-4.0

225.4
61.3
15.7
30.5
52.7
63.3
-2.0

276.5
44.1
23.7
22.5
83.3
107.3
4.3

330.0
51.3
28.3
22.5
88.2
152.2
12.5

363.0
87.6
21.4
25.8
82.9
154.4
9.2

253.5
44.1
22.3
18.0
77.1
94.9
2.9

299.6
44.1
25.0
27.0
89.4
119.7
5.8

322.8
56.3
27.8
24.1
86.7
141.1
13.2

337.1
46.4
28.7
20.9
89.6
163.3
11.8

382.8
100.9
17.4
28.3
85.3
158.6
7.7

343.8
74.2
25.3
23.6
80.5
150.7
10.6

19 Credit market funds advanced by private financial
institutions ...........................................................
20 Commercial banking ...............................................
21 Savings institutions .................................................
22 Insurance and pension funds ...................................
23 Other finance .........................................................

125.5
66.6
24.2
29.8
4.8

122.5
29.4
53.5
40.6
-1.0

190.3
59.6
70.8
49.9
10.0

255.9
87.6
82.0
67.9
18.4

296.9
128.7
75.9
73.5
18.7

293.0
121.1
54.6
72.9
44.3

249.1
84.6
81.4
65.2
18.0

265.0
90.7
82.6
70.6
21.2

301.7
132.5
75.8
76.9
16.6

292.0
125.0
75.9
70.2
20.8

314.4
128.7
57.8
75.4
52.5

272.9
115.0
51.4
70.5
36.1

24 Sources of funds.........................................................
25 Private domestic deposits ........................................
26 Credit market borrowing ........................................
27 Other sources .........................................................
28
Foreign funds ......................................................
29
Treasury balances ...............................................
30
Insurance and pension reserves............................
31
Other, net ...........................................................

125.5
67.5
15.9
42.1
10.3
-5.1
26.2
10.6

122.5
92.0
-1.4
32.0
-8.7
-1.7
29.7
12.7

190.3
124.6
4.4
61.3
-4.6
-.1
34.5
31.4

255.9
141.2
26.9
87.8
1.2
4.3
49.4
32.9

296.9
142.5
38.3
116.0
6.3
6.8
62.7
40.3

293.0
135.5
32.9
124.5
26.3
.4
54.0
43.8

249.1
138.6
24.2
86.2
1.6
.1
45.3
39.3

265.0
143.8
29.6
91.7
.8
8.5
53.4
29.0

301.7
138.3
40.0
123.5
5.7
1.9
66.2
49.6

292.0
146.7
36.7
108.6
6.9
11.6
59.2
31.0

314.4
118.4
39.2
156.8
53.2
5.5
55.9
42.2

272.9
152.0
26.7
94.3
-.6
-4.7
52.1
47.4

32 Direct lending in credit markets.................................
33 U.S. government securities ....................................
34 State and local obligations......................................
35 Corporate and foreign bonds...................................
36 Commercial paper ..................................................
37 Other .....................................................................

47.2
18.9
9.3
5.1
5.8
8.0

45.8
24.1
8.4
8.4
-1.3
6.2

39.5
16.1
3.8
5.8
1.9
11.8

47.5
23.0
2.6
-3.3
9.5
15.7

71.4
33.2
4.5
-1.4
16.3
18.7

102.9
56.2
*
9.3
10.7
26.7

28.6
11.9
-.5
-.1
8.2
9.2

64.1
34.2
5.7
-6.5
10.8
19.9

61.1
32.1
7.0
-3.7
8.2
17.5

81.7
34.4
2.0
1.0
24.4
20.0

107.6
64.4
*
8.2
10.4
24.6

97.5
47.5
-.1
10.6
10.6
28.9

38 Deposits and currency.................................................
39 Security RPs ...........................................................
40 Money market fund shares......................................
41 Time and savings accounts......................................
42
Large at commercial banks .................................
43
Other at commercial banks .................................
44
At savings institutions..........................................
45 Money ....................................................................
46
Demand deposits .................................................
47
Currency .............................................................

73.8
-2.2
2.4
65.4
18.4
25.3
21.8
8.2
1.9
6.3

98.1
.2
1.3
84.0
-14.3
38.8
59.4
12.6
6.4
6.2

131.9
2.3
*
113.5
-13.6
57.9
69.1
16.1
8.8
7.3

149.5
2.2
.2
121.0
9.0
43.0
69.0
26.1
17.8
8.3

151.8
7.5
6.9
115.2
10.8
43.3
61.1
22.2
12.9
9.3

143.5
6.6
34.4
83.3
-.7
39.3
44.7
19.1
11.2
7.9

144.5
4.3
-.5
115.3
-4.5
47.5
72.3
25.4
19.6
5.8

154.5
.2
.9
126.7
22.6
38.4
65.7
26.8
16.1
10.8

148.7
9.8
6.1
110.7
10.1
42.1
58.5
22.1
11.6
10.5

154.8
5.1
7.7
119.8
11.4
44.5
63.8
22.3
14.2
8.1

128.4
18.5
30.2
73.7
-25.5
43.7
55.5
6.0
-4.0
10.0

157.9
-5.3
38.6
92.6
24.2
34.7
33.7
32.0
26.1
5.9

48 Total of credit market instruments, deposits and
currency ..............................................................

By public agencies and foreign

2 Total net advances......................................................
3 U.S. government securities ....................................
4 Residential mortgages .............................................
5 FHLB advances to savings and loans......................
6 Other loans and securities ......................................
7
8
9
10
11

Total advanced, by sector

U.S. government .......................................................
Sponsored credit agencies ..........................................
Monetary authorities ..................................................
Foreign .....................................................................
Agency borrowing not included in line 1 .....................
Private domestic funds advanced

12 Total net advances......................................................
13 U.S. government securities ....................................
14 State and local obligations ......................................
15 Corporate and foreign bonds...................................
16 Residential mortgages .............................................
17 Other mortgages and loans ....................................
18 L ess: Federal Home Loan Bank advances..............
Private financial intermediation

Private domestic nonfinancial investors

121.0

143.9

171.4

197.0

223.2

246.4

173.1

218.6

209.8

236.6

236.0

255.4

Public support rate (in percent) .............................
Private financial intermediation (in percent) ..........
Total foreign funds ................................................

28.7
80.0
21.5

22.2
72.2
-2.6

20.8
84.4
10.6

25.4
92.5
40.5

27.5
90.0
44.0

20.5
80.7
18.7

22.2
98.2
29.9

27.9
88.5
51.2

26.5
93.5
36.3

28.5
86.6
51.8

11.5
82.1
22.8

29.2
79.4
14.9

M emo : Corporate equities not included above
52 Total net issues...........................................................
53 Mutual fund shares ................................................
54 Other equities.........................................................

4.1
-.7
4.8

10.7
-.1
10.8

11.9
-1.0
12.9

4.0
-.9
4.9

3.7
-1.0
4.7

5.2
.-2.1
7.3

2.1
-.6
2.6

5.9
-1.3
7.2

-.4
-.5
.1

7.9
-1.5
9.4

5.4
-.3
5.7

5.0
-3.9
8.9

55 Acquisitions by financial institutions ..........................
56 Other net purchases ..................................................

5.8
-1.7

9.6
1.1

12.3
-.4

7.4
-3.4

7.6
-3.8

16.6
-11.4

6.8
-4.7

8.1
-2.2

.4
-.8

14.7
-6.8

14.5
-9.1

18.7
-13.6

49
50
51

N otes by line num ber .

1.
2.
6.
11.
12.
17.
25.
26.
28.
29.

Line 2 of p. A-44.
Sum of lines 3-6 or 7-10.
Includes farm and commercial mortgages.
Credit market funds raised by federally sponsored credit agencies, and net
issues of federally related mortgage pool securities. Included below in lines
3, 13, 33.
Line 1 less line 2 plus line 11. Also line 19 less line 26 plus line 32. Also sum
of lines 27, 32, 39, 40, 41, and 46.
Includes farm and commercial mortgages.
Sum of lines 39, 40, 41, and 46.
Excludes equity issues and investment company shares. Includes line 18.
Foreign deposits at commercial banks, bank borrowings from foreign branches,
and liabilities of foreign banking agencies to foreign affiliates.
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.
47. Mainly an offset to line 9.
48. Lines 32 plus 38, or line 12 less line 27 plus 45.
49. Line 2/line 1.
50. Line 19/line 12.
51. Sum of lines 10 and 28.
52. 54. Includes issues by financial institutions.
N ote . Full statements for sectors and transaction types quarterly, and annually
for flows and for amounts outstanding, may be obtained from Flow of Funds
Section, Division of Research and Statistics, Board of Governors of the Federal
Reserve System, Washington, D.C. 20551.

A46

D om estic Nonfinancial Statistics □ August 1980

2.10 NONFINANCIAL BUSINESS ACTIVITY

Selected Measures

1967 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted.
1979

Measure

1977

Dec.

Jan.

Feb.

Mar.

Apr.

May

June?

July*

138.2

146.1

152.2

152.2

152.6

152.3

151.7

148.2

144.3

141.0

138.8

137.9
135.9
145.3
123.0
145.1
138.6

144.8
142.2
149.1
132.8
154.1
148.3

149.7
147.0
150.5
142.2
160.0
156.0

149.7
147.0
148.5
145.0
159.9
156.2

150.0
147.0
148.2
145.4
160.8
156.7

149.9
147.4
148.5
146.0
159.3
155.9

149.3
147.1
147.8
146.1
157.7
155.4

146.4
145.1
144.8
145.4
151.4
151.1

143.8
143.1
142.4
143.9
146.7
145.0

141.7
141.2
141.0
141.5
143.4
139.9

140.0
139.6
139.4
139.9
141.7
137.0

8 Manufacturing .............................................................

138.4

146.8

153.2

152.8

153.4

152.7

151.9

147.9

143.5

139.8

137.2

9
10

Capacity utilization (percent)1-2
Manufacturing .........................................................
Industrial materials industries ...................................

81.9
82.7

84.4
85.6

85.7
87.2

84.3
87.2

84.4

86.0

83.8
85.4

83.1
84.9

80.7
82.3

78.1
78.7

75.8
75.7

74.2
74.0

11

Construction contracts3 ..............................................

160.5

174.3

183.0

183.0

190.0

171.0

155.0

130.0

125.0

145.0

n.a.

12
13
14
15
16
17
18
19
20

Nonagricultural employment, total4 .............................
Goods-producing, to tal.............................................
Manufacturing, total .............................................
Manufacturing, production-worker........................
Service-producing ....................................................
Personal income, total5 ...............................................
Wages and salary disbursements .............................
Manufacturing ......................................................
Disposable personal income ........................................

125.3
104.5

143.2
274.1
258.1
222.4
217.7

137.8
114.1
107.9
104.5
150.8
323.7
300.1
254.7

138.3
114.6
107.8
104.2
151.3
326.6
302.5
256.7

138.6
114.2
107.8
103.9
151.9
328.1
305.1
259.2
259.4

138.5
113.6
107.7
103.8
152.2
330.4
307.4
260.8

137.5'
110.5'
104.3'
99.1'
152.3'
331.6'
306.2'
254.4'
261.9

136.7'
109.0'

98.8
136.7
244.4
230.2
198.3
194.8

136.0
114.0
107.9
104.9
148.1
307.1
287.2
246.8
242.5

138.2

101.2

131.4
109.8
105.3

136.4
107.6
101.5
95.9
152.2

21

Retail sales6 ................................................................

229.8

253.8

280.9

294.8

303.6

301.8

292.4

286.6

285.0

288.9

294.7

Prices7
22 Consumer ................................................................
23
Producer finished goods...........................................

181.5
180.6

195.4
194.6

217.4
216.1

229.9
228.1

233.2
232.4

236.4
235.7

239.8
238.2

242.5
240.0

244.9
241.0

247.6
242.6

246.6

1

Industrial production1 ..................................................

1980

1979

1978

Market groupings

Products, total .............................................................
Final, total ..............................................................
Consumer goods ..................................................
5
Equipment ...........................................................
6 Intermediate .............................................................
7 Materials .....................................................................
2
3

4

Industry groupings

102.8

1. The industrial production and capacity utilization series have been revised.
For a description of the changes see the August 1979 B ulletin , pp. 603-07.
2. Ratios of indexes of production to indexes of capacity. Based on data from
Federal Reserve, McGraw-Hill Economics Department, and Department of Com­
merce.
3. Index of dollar value of total construction contracts, including residential,
nonresidential, and heavy engineering, from McGraw-Hill Information Systems
Company, F. W. Dodge Division.
4. Based on data in Employment and Earnings (U.S. Department of Labor).
Series covers employees only, excluding personnel in the Armed Forces.
Monthly data for lines 12 throuth 16 reflect March 1979 benchmarks; only sea­
sonally adjusted data are presently available.

2.11

112.1

106.1
101.7
152.6
330.6'
306.2'
257.8'

102.8'
97.3'
152.0'
332.9
306.4
251.6

n.a.
n.a.
n.a.

n.a.

5. Based on data in Survey of Current Business (U.S. Department of Commerce).
Series for disposable income is quarterly.
6. Based on Bureau of Census data published in Survey of Current Business.
7. Data without seasonal adjustment, as published in Monthly Labor Review.
Seasonally adjusted data for changes in the price indexes may be obtained from
the Bureau of Labor Statistics, U.S. Department of Labor.
N ote : Basic data (not index numbers) for series mentioned in notes 4, 5, and
6, and indexes for series mentioned in notes 3 and 7 may also be found in the

Survey of Current Business.

Figures for industrial production for the last two months are preliminary and
estimated, respectively.

OUTPUT, CAPACITY, AND CAPACITY UTILIZATION*
Seasonally adjusted
1980

1979

1979

1980

1979

1980

Series
Q3

Q4

01

02'

Output (167 = 100)

03

Q4

01

Q2'

Capacity (percent of 1967 output)

03

Q4

01

Q2'

Utilization rate (percent)

1 Manufacturing .............................................

152.9

153.0

152.7

143.7

179.5

180.8

182.3

183.8

84.6

84.6

83.8

78.2

2 Primary processing........................................
3 Advanced processing ....................................

161.8
148.1

161.8
148.2

160.1
148.7

145.2
142.8

185.7
176.2

187.2
177.4

188.7
178.8

190.2
180.4

86.5
83.5

86.4
83.6

84.9
83.1

76.4
79.2

4 Materials ......................................................

156.3

156.3

156.0

145.3

179.5

181.0

182.5

184.1

86.3

86.3

85.4

78.9

5 Durable goods .............................................
6 Metal materials..........................................
7 Nondurable goods ........................................
8 Textile, paper, and chemical .....................
9
Textile ..................................................
10
Paper ....................................................
11
Chemical ...............................................
12 Energy .........................................................

156.1
119.5
178.2
187.0
123.7
148.4
230.4
129.9

156.3
119.5
178.3
186.9
123.7
148.4
230.2
129.1

155.2
117.2
178.5
186.2
121.5
142.7
232.1
129.9

141.7
100.4
165.8
172.1
114.6
139.5
210.4
128.8

184.5
140.7
195.3
203.2
137.7
150.6
253.3
148.3

186.0
141.1
197.3
205.3
138.1
151.6
256.3
149.2

187.7
141.5
199.1
207.3
138.5
152.9
259.4
149.8

189.3
141.3
201.3
209.6
139.1
154.5
262.6
150.5

83.9
84.7
90.3
91.1
89.6
97.9
89.8
86.8

84.0
84.7
90.4
91.0
89.6
97.9
89.8
86.6

82.7
82.9
89.6
89.8
87.7
93.3
89.5
86.7

74.8
71.1
82.4
82.1
82.4
90.3
80.2
85.6

1. The capacity utilization series has been revised. For a description of the
changes, see the August 1979 B ulletin , pp. 606-07.




L a b o r M a rk e t
2.12

A 47

LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT
Thousands of persons; monthly data are seasonally adjusted. Exceptions noted.
1980
Category

1977

1978

1979
Jan.

Feb.

Mar.

Apr.

May'

Juner

July

H ousehold S urvey D ata

1 Noninstitutional population1 ...................

158,559

161,058

163,620

165,101

165,298

165,506

165,693

165,886

166,105

166,391

Labor force (including Armed Forces)1 ..
3 Civilian labor force ............................

99,534
97,401

102,537
100,420

104,996
102,908

106,310
104,229

106,346
104,260

106,184
104,094

106,511
104,419

107,230
105,142

106,634
104,542

107,302
105,203

Nonagricultural industries2 ..............
Agriculture ....................................

87,302
3,244

91,031
3,342

93,648
3,297

94,534
3,270

94,626
3,326

94,298
3,358

93,912
3,242

93,609
3,379

93,346
3,191

93,739
3,257

Number ..........................................
7
Rate (percent of civilian labor force)
8 Not in labor force...................................

6,855
7.0
59,025

6,047
6.0
58,521

5,963
5.8
58,623

6,425
6.2
58,791

6,307
6.0
58,951

6,438
6.2
59,322

7,265
7.0
59,182

8,154
7.8
58,657

8,006
7.7
59,471

8,207
7.8
59,091

2

Employment

4
5

6

Unemployment

E stablishment S urvey D ata

9 Nonagricultural payroll employment3 ....

82,423

86,446

89,497

91,031

91,186

91,144

90,951

90,468

89,973

89,735

Manufacturing........................................
Mining ..................................................
Contract construction ............................
13 Transportation and public utilities .........
14 Trade ....................................................
15 Finance ..................................................
16 Service ..................................................
17 Government ..........................................

19,682
813
3,851
4,713
18,516
4,467
15,303
15,079

20.476
851
4,271
4,927
19,499
4,727
16,220
15.476

20,979
958
4,642
5,154
20,140
4,964
17,047
15,613

20,971
999
4,745
5,202
20,529
5,091
17,462
16,032

20,957
1,007
4,659
5,198
20,637
5,101
17,540
16,087

20,938
1,009
4,529
5,202
20,610
5,115
17,580
16,161

20,642
1,012
4,467
5,178
20,531
5,119
17,618
16,384

20,286
1,023
4,436
5,167
20,487
5,137
17,659
16,273

19,999
1,026
4,371
5,134
20,437
5,150
17,631
16,225

19,742
1,013
4,320
5,121
20,496
5,158
17,716
16,169

10
11
12

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. Department of La­
bor).
2. Includes self-employed, unpaid family, and domestic service workers.




3. Data include all full- and part-time employees who worked during, or
received pay for, the pay period that includes the 12th day of the month, and
exclude proprietors, self-employed persons, domestic servants, unpaid family
workers, and members of the Armed Forces. Data are adjusted to the March 1979
benchmark and only seasonally adjusted data are available at this time. Based on
data from Employment and Earnings (U.S. Department of Labor).

A 48
2.13

D om estic Nonfinancial Statistics □ August 1980
INDUSTRIAL PRODUCTION

Indexes and Gross Value'

Monthly data are seasonally adjusted.
Grouping

1967
pro­
por­
tion

1979

1979
age

July

Sept.

Oct.

1980
Nov.

Dec.

Jan.

Feb.

Mar.

Apr/

May

JuneP

July"

Index (1967 = 100)
M ajor M arket

1 Total

in d e x ...........................................................

100.00

152.2

152.8

152.4

152.2

152.1

152.2

152.6

152.3

151.7

148.2

144.3

141.0

138.8

2 Products .................................................
3 Final products ....................................
4
Consumer goods .............................
5
Equipment ......................................
6 Intermediate products ........................
7 Materials ...............................................

60.71
47.82
27.68
20.14
12.89
39.29

149.7
147.0
150.5
142.2
160.0
156.0

149.7
147.1
150.8
142.1
159.4
157.6

149.9
147.2
149.7
143.9
159.8
156.3

149.6
146.8
149.7
142.9
159.8
156.3

149.4
146.6
148.9
143.6
159.8
156.4

149.7
147.0
148.5
145.0
159.9
156.2

150.0
147.0
148.2
145.4
160.8
156.7

149.9
147.4
148.5
146.0
159.3
155.9

149.3
147.1
147.8
146.1
157.7
155.4

146.4
145.1
144.8
145.4
151.4
151.1

143.8
143.1
142.4
143.9
146.7
145.0

141.7
141.2
141.0
141.5
143.4
139.9

140.0
139.6
139.4
139.9
141.7
137.0

Consumer goods

9
10
11

Automotive products ..........................
Autos and utility vehicles................
Autos .........................................

7.89
2.83
2.03
1.90
80

155.5
167.7
154.3
136.7
201.6

157.2
170.3
155.6
141.8
207.8

151.8
157.6
139.7
128.0
203.0

152.6
159.2
142.4
129.0
202.1

149.2
150.6
131.0
118.3
200.3

146.6
141.8
121.4
110.2
193.6

142.4
131.3
108.7
98.0
188.5

144.5
142.1
124.6
116.8
186.7

144.0
141.0
122.0
114.9
189.1

136 4
126.3
102.3
97.1
187.4

129.1
119.0
92.6
88.4
186.0

128.7
121.4
97.0
95.7
183.1

128.0
127.6
106.1
105.1
182.1

13
14
15
16

Home goods ......................................
Appliances, A/C, and T V ................
Appliances and TV .....................
Carpeting and furniture...................

5.06
1.40
1.33
1.07
2.59

148.7
127.5
129.3
170.6
151.1

149.8
129.7
131.6
171.9
151.6

148.5
129.6
132.2
169.7
150.0

148.8
128.0
130.2
169.2
151.7

148.4
129.7
132.4
169.1
150.0

149.3
134.2
136.5
168.8
149.4

148.6
128.9
130.0
171.2
149.9

145.8
122.4
124.4
168.6
149.1

145.7
122.1
125.0
169.1
148.8

142.0
114.8
117.5
166.0
146.8

134.8
102.8
106.0
156.3
143.3

132.8
105.1
108.1
148.7
141.2

128.2
100.6

18 Nondurable consumer goods .................
19 Clothing .............................................
20 Consumer staples ...............................
21
Consumer foods and tobacco..........
22
Nonfood staples .............................
23
Consumer chemical products .......
24
Consumer paper products............
25
Consumer energy products..........
26
Residential utilities...................

19.79
4.29
15.50
8.33
7.17
2.63
1.92
2.62
1.45

148.5
129.1
153.8
145.4
163.6
205.5
120.8
153.0
165.2

148.2
126.9
154.1
147.0
162.4
206.1
119.9
149.8
158.5

148.9
129.0
154.3
146.5
163.5
207.2
121.1
150.8
162.2

148.6
127.7
154.3
146.7
163.2
206.4
121.6
150.5
164.2

148.7
129.1
154.2
145.9
163.8
207.9
119.3
152.2
166.7

149.2
129.1
154.8
146.8
164.2
207.8
121.0
152.2
166.3

150.5
128.3
156.7
148.4
166.4
210.5
123.7
153.4
164.6

150.1 149.3
126.8 126.2
156.5 155.6
148.3 147.9
166.1 164.6
210.7 208.9
122.3 121.5
153.3 151.8
165.9

148.2
125.0
154.7
147.0
163.5
206.9
120.4
151.6

147.7
125.8
153.8
146.7
162.1
203.8
118.5
152.2

145.9

143.9

151.6
143.7
160.9
199.7
119.1
152.5

149.7

12.63
6.77
1.44
3.85
1.47

171.3
152.1
206.1
130.3
156.3

171.4
151.3
207.4
130.3
151.0

173.6
153.5
212.0
130.4
156.3

172.0
151.2
200.6
130.8
156.3

172.5
153.3
204.4
132.5
157.6

174.1
153.1
204.4
132.1
157.8

175.0
157.4
222.9
132.6
158.1

175.8 175.9
158.8 159.0
230.2 235.2
132.8 132.4
156.7 153.7

174.4
159.5
239.5
131.9
153.0

172.3
157.9
241.6
129.5
149.9

168.6
154.2
239.5
125.3
146.2

166.2
152.4
242.1
123.0
141.6

Commercial transit, farm ...................
Commercial ....................................
Transit ...........................................
Farm ...............................................

5.86
3.26
1.93
67

193.4
227.8
152.2
144.9

194.6
227.0
155.2
151.0

196.8
231.4
156.3
145.3

195.9
234.2
154.9
128.0

194.6
232.2
150.3
139.5

198.4
236.9
153.3
141.0

195.3
237.8
143.8
137.1

195.4 195.5
237.7 239.9
146.6 143.3
129.9 129.6

191.7
235.6
143.7
116.4

189.1
233.1
137.1
124.6

185.1
225.9
138.3
121.4

182.1
221.2
138.3

36 Defense and space .................................

7.51

93.2

92.8

94.0

94.0

95.0

95.9

95.8

96.0

96.1

96.6

96.1

96.1

95.8

6.42
6.47
1.14

156.9
163.1
172.3

156.4
162.4
167.8

156.3
163.2
169.8

156.8
162.7
172.2

156.7
162.9
174.4

156.0
163.8
175.7

156.4
165.0
172.3

154.3
164.2
169.0

152.4
163.0
171.3

140.9
161.9
173.7

134.1
159.2
174.7

127.7
158.9

126.4

40 Durable goods materials........................
41 Durable consumer parts .....................
42 Equipment parts.................................
43 Durable materials n.e.c........................
44
Basic metal materials......................

20.35
4.58
5.44
10.34
5.57

157.8
137.1
189.9
150.0
124.0

160.7
138.5
192.1
154.0
130.5

157.6
132.2
192.0
150.7
124.8

157.2
132.0
192.7
149.6
121.4

156.0
126.8
195.1
148.3
119.9

155.6
123.8
196.6
148.0
117.7

156.3
122.2
199.8
148.6
118.8

154.9
120.9
199.3
146.6
116.5

154.5
121.0
199.9
145.5
116.8

148.5
110.9
196.1
140.1
108.9

141.7
101.7
191.2
133.2
101.3

134.8
97.2
183.3
125.9
94.4

131.0
94.1
181.7
120.7

45 Nondurable goods materials...................
46 Textile, paper, and chemical materials .
47
Textile materials.............................
48
Paper materials...............................
49
Chemical materials..........................
50 Containers, nondurable ......................
51 Nondurable materials n.e.c..................

10.47
7.62
1.85
1.62
4.15
1.70
1.14

174.9
182.9
121.0
143.2
226.1
164.5
136.7

174.6
182.8
122.2
146.2
224.1
163.1
137.5

176.7
185.9
124.4
148.1
228.2
161.8
136.9

177.2
186.1
124.3
148.6
228.4
166.1
134.4

178.3
186.7
123.2
148.4
230.2
168.1
137.4

179.5
187.8
123.7
148.2
232.0
169.6
138.8

180.8
188.6
122.3
146.3
234.8
174.1
138.5

178.3 176.5
185.7 184.3
122.5 119.8
139.9 141.8
231.8 229.8
172.6 167.7
137.2 137.2

173.7
181.3
118.0
141.2
225.3
165.8
135.0

164.7
171.0
114.6
138.4
208.9
156.4
135.1

158.9
163.9
111.3
138.9
197.1
152.8
135.1

154.5
159.1

52 Energy materials ...................................
53 Primary energy ...................................
54 Converted fuel materials.....................

8.48
4.65
3.82

128.4
113.0
147.2

129.1
112.8
148.8

128.1
113.6
145.7

128.5
114.6
145.3

130.1
114.9
148.7

128.7
113.5
147.3

127.7
113.1
145.3

130.5
113.5
151.3

131.6
115.6
151.1

129.4
116.4
145.3

128.5
116.1
143.6

128.4
116.5
142.8

129.9

9.35
12.23
3.76
8.48

139.7
137.8
158.8
128.4

139.3
137.1
155.2
129.1

139.5
136.8
156.5
128.1

139.1
137.2
157.1
128.5

139.5
139.0
159.0
130.1

140.0
138.1
159.3
128.7

139.3
137.3
159.1
127.7

137.1
139.0
158.1
130.5

136.7
139.6
157.7
131.6

134.2
138.3
158.3
129.4

130.7
137.9
159.0
128.5

129.2
138.0
159.7
128.4

125.8
139.3

Equipment

27 Business ................................................
28 Industrial ...........................................
29
Building and mining........................
30
Manufacturing .................................
31
Power .............................................
32
33
34
35

Intermediate products

37 Construction supplies.............................
38 Business supplies ...................................
39 Commercial energy products ..............
Materials

Supplementary groups

55 Home goods and clothing......................
56 Energy, total ..........................................
57 Products .............................................
58 Materials ...........................................
For notes see opposite page.




137.0

160.2

129.9’

Output

A 49

2.13 Continued
Grouping

SIC
code

1967
pro­
por­
tion

1979

1980

1979
July

Sept.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May

June^

July*

Index (1967 = 100)
Major Industry
12.05
6.36
5.69
3.88
87.95
35.97
51.98

144.5
125.3
166.1
185.8
153.2
163.3
146.3

143.7
124.7
164.8
182.2
154.1
164.1
147.2

144.5
125.8
165.3
184.1
153.5
164.6
145.9

146.0
128.1
166.1
184.3
153.2
164.0
145.7

147.7
130.0
167.4
185.7
153.0
164.5
145.0

148.3
131.6
167.0
186.0
152.8
164.7
144.5

147.4
132.6
163.9
183.0
153.4
166.1
144.7

148.6
132.8
166.1
185.0
152.7
165.1
144.1

150.2
132.9
169.6

149.2
133.0
167.2

149.7
133.2
168.0

150.0
133.1
168.8

150.7
131.9
171.6

151.9
164.4
143.3

147.9
161.6
138.5

143.5
157.9
133.5

139.8
154.1
129.9

137.2
151.2
127.5

10
11,12
13
14

.51
.69
4.40
.75

126.8
133.6
121.7
137.6

128.6
137.1
120.4
136.4

122.1
142.6
121.6
137.5

124.1
144.7
124.2
138.2

132.0
141.9
126.0
141.2

136.8
145.0
127.2
141.0

137.6
141.0
128.5
145.3

136.6
136.0
130.3
142.0

132.7
137.2
131.6
136.8

122.4
143.4
132.5
133.1

119.8
145.0
133.8
128.3

117.0
150.0
134.0
123.6

149.6
134.5

146.2

1 Mining and utilities .................
2 Mining .................................
3 Utilities.................................
4
Electric .............................
5 Manufacturing ..........................
6 Nondurable ..........................
7 Durable ...............................
Mining

8
9
10
11

Metal ......................................
Coal ........................................
Oil and gas extraction..............
Stone and earth minerals .........

12
13
14
15
16

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

147.9
117.1
143.8
130.7
150.8

149.4
118.9
143.0
129.7
154.0

148.8
115.6
146.9
131.2
155.3

148.6
115.6
146.0
128.5
154.1

148.3
113.0
147.9
128.8
153.3

148.9
116.6
147.1
128.3
154.7

150.0
118.7
147.8
127.2
156.0

150.2
120.0
143.7
128.0
150.5

150.3
123.1
141.9
128.0
151.6

148.7
120.4
140.2
127.1
147.3

149.5
117.2
135.1
126.9
144.6

144.8

17
18
19
20
21

Printing and publishing............
Chemicals and products............
Petroleum products .................
Rubber and plastic products ....
Leather and products................

27
28
29
30
31

4.72
7.74
1.79
2.24
.86

136.9
210.4
143.6
270.0
71.3

135.6
210.5
143.9
278.0
69.7

137.1
212.0
143.1
272.9
70.8

137.2
211.4
141.1
274.5
70.1

136.2
215.1
142.1
271.3
70.4

137.8
216.5
142.6
262.3
71.2

138.9
217.7
146.7
266.9
73.2

139.9 139.2
216.0 214.5
144.4 141.6
267.9 264.8
71.9 71.7

136.5
209.4
137.9
263.5
69.8

135.0
199.8
133.7
251.0
70.3

133.8
191.7
132.5
241.6
69.3

22 Ordnance, private and
government .......................
23 Lumber and products................
24 Furniture and fixtures ..............
25 Clay, glass, stone products.......

19,91
24
25
32

3.64
1.64
1.37
2.74

75.5
136.9
161.4
163.3

74.6
135.2
159.5
163.3

75.3
138.6
162.0
160.6

75.3
138.7
163.3
162.3

77.0
136.1
162.9
162.8

77.0
131.7
161.0
164.4

76.6
131.6
161.0
165.1

76.7
130.2
159.2
162.6

76.9
125.4
159.5
156.5

77.3
105.2
158.2
149.3

77.1
103.6
151.7
142.9

76.5
103.1
146.2
138.2

26
27
28
29
30

Primary metals ........................
Iron and steel .......................
Fabricated metal products.........
Nonelectrical machinery ..........
Electrical machinery ................

33
331.2
34
35
36

6.57
4.21
5.93
9.15
8.05

121.2
113.2
148.5
163.6
175.0

127.1
119.0
149.3
165.3
174.4

121.7
115.0
146.5
165.1
176.7

118.0
108.2
147.5
162.3
177.3

117.2
108.0
146.9
162.8
179.5

115.4
106.6
146.1
162.9
181.2

116.4
107.2
145.0
166.9
181.7

111.9
103.4
145.3
166.1
179.7

113.6
106.0
144.7
166.0
179.5

106.5
97.4
141.8
163.2
177.2

96.5
84.2
134.5
162.0
171.4

89.5
74.8
128.5
157.1
166.9

123.5
154.2
164.0

31 Transportation equipment.........
32 Motor vehicles and p arts.......
33 Aerospace and miscellaneous
transportation equipment
34 Instruments .............................
35 Miscellaneous manufactures ....

37
371

9.27
4.50

135.3
160.0

135.5
160.2

131.7
150.6

133.7
150.6

128.2
139.9

125.9
135.4

122.4
127.6

126.2
135.4

124.3
131.7

114.7
114.9

109.5
106.3

110.1
107.9

110.6
108.9

372-9
38
39

4.77
2.11
1.51

112.0
174.9
153.7

112.2
174.0
155.7

113.9
172.9
153.6

117.7
175.0
154.5

117.1
173.3
155.3

117.0
175.0
153.7

117.5
175.8
154.0

117.5
175.0
152.0

117.2
173.8
152.0

114.5
173.8
151.2

112.4
171.0
146.3

112.1
169.3
142.7

112.2
166.5
141.7

Nondurable manufactures

129.9

132.7
132.0

Durable manufactures

76.5

83.9

Gross value (billions of 1972 dollars, annual rates)
Major Market
36

Products, t o t a l ..................................

37 Final ........................................
38 Consumer goods ...................
39 Equipment ............................
40 Intermediate ............................

507.4

624.1

622.7

622.6

621.6

617.8

619.0

617.1

620.8

615.5

599.4

589.3

581.5

575.4

390.92
277.52
113.42
116.62

479.9
326.3
153.7
144.2

479.6
326.0
153.6
143.2

478.8
323.6
155.2
143.8

477.6
324.6
153.0
144.0

474.4
321.9
152.5
143.4

475.2
321.6
153.6
143.8

472.7
319.6
153.1
144.5

477.5 473.9
321.8 320.0
155.7 153.8
143.3 141.7

463.8
312.1
151.7
135.6

457.5
307.3
150.2
131.8

452.9
304.2
148.7
128.6

448.1
302.3
145.9
127.2

1. The industrial production series has been revised. For a description of the
changes, see “Revision of Industrial Production Index” in the August 1979 Bulletin , pp. 603-05.
2. 1972 dollars.




N ote . Published groupings include some series and subtotals not shown separately. For description and historical data, see Industrial Production—1976 Revision
(Board of Governors of the Federal Reserve System: Washington, D.C.), December 1977.

A 50

D om estic Nonfinancial Statistics □ August 1980

2.14 HOUSING AND CONSTRUCTION
Monthly figures are at seasonally adjusted annual rates except as noted.
1979'
Item

1977

1978

1980

1979'
Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May'

June

Private residential real estate activity (thousands of units)
N ew U nits

1 Permits authorized ............................
2 1-family ........................................
3 2-or-more-family ............................

1,677
1,125
551

1,801
1,183
618

1,552
981
570

1,287
773
514

1,247
776
471

1,271
780
491

1,168
708
460

968
556
412

789
473
316

825
495
330

1,059
622
437

4 Started .............................................
5 1-family ........................................
6 2-or-more-family ............................

1,987
1,451
536

2,020
1,433
587

1,745
1,194
551

1,522
980
542

1,548
1,055
493

1,419
1,002
417

1,330
786
544

1,041
617
424

1,030
628
402

913
628
285

1,191
747
444

7 Under construction, end of period1 ..
8 1-family ........................................
9 2-or-more-family ............................

1,208
730
478

1,310
765
546

1,140
639
501

687
501

1,160
662
498

1,163
669
494

1,095
622
473

1,062'
589'
473'

984
538
446

921
500
421

10 Completed ........................................
11 1-family ........................................
12 2-or-more-family ............................

1,656
1,258
399

1,868
1,369
499r

1,855
1,286
570

1,831
1,240
591

1,880
1,328
552

1,787
1,276
511

1,832
1,230
602

1,669'
1,093'
576'

1,891
1,124
767

1,535
959
576

13 Mobile homes shipped......................

277

276

277

251

241

276

226

201

162

820

818
419

709
402

617
399

571
398

584
396

548
384

458
377'

343
365

461
352

535
343

49.0

55.8

62.7

63.9

61.5

63.2

64.8

62.3

62.9

63.5

66.8

54.4

62.7

71.9

74.2

72.6

72.5

76.6

71.1'

73.9

73.8

77.9

3,450

3,350

3,210

2,990

2,750

2,310

2,480

55.6
64.6

56.5
65.2

57.9
68.2

59.0
69.4

59.5
69.4

61.2
71.2

63.4
74.1

Merchant builder activity in 1-family
units

14 Number sold ....................................
15 Number for sale, end of period1 .......
Price (thousand of dollars)2

Median
Units sold ....................................
Average
17 Units sold ....................................
16

n.a.
n.a.

E xisting U nits (1-family)

3,905

18 Number sold ....................................
Price of units sold (thous. of dollars)2

19 Median .............................................
20 Average ...........................................

42.8
47.1

48.7
55.1

55.5
64.0

60.4
70.6

Value of new construction3 (millions of dollars)
C onstruction

21 Total put in place...............................

173,969'

205,457'

228,948'

239,372'

244,045'

259,580'

248,756'

237,132'

226,529'

220,060

214,975

22 Private ...............................................
23 Residential......................................
24 Nonresidential, total .......................
Buildings
Industrial .................................
25
Commercial .............................
26
27
Other ......................................
Public utilities and other..............
28

135,799'
80,957'
54,842'

159,555'
93,423'
66,132'

179,948'
99,029'
80,919'

187,394'
101,812'
85,582'

191,191'
102,127'
89,064'

198,097'
105,814'
92,283'

191,732'
101,519'
90,213'

180,616
93,991
86,625

172,362'
84,495'
87,867'

166,101
78,420
87,681

162,821
75,250
87,571

7,713
14,789
6,200
26,140

10,993
18,568
6,739
29,832

14,953'
24,924'
7,427'
33,615'

15,790'
27,743'
7,857'
34,192'

15,879'
29,422'
8,274'
35,489'

15,810'
31,614'
9,207'
35,652'

15,690'
30,727'
8,508'
35,288'

13,916
29,911
8,515
34,283

13,611
30,878
8,220
35,158'

14,197'
30,149
8,571
34,764

14,851
29,352
8,017
35,351

29 Public ................................................
30 Military .........................................
31 Highway .........................................
32 Conservation and development.......
33 Other4 .............................................

38,172
1,428
9,380
3,862
23,502

45,901
1,501
10,713
4,457
29,230

49,001'
1,641'
11,915'
4,586'
30,859'

51,978'
1,749'
12,170'
4,950'
33,109'

52,855'
1,743'
12,858'
5,121'
33,133'

61,483'
1,773'
16,892'
5,141'
37,677'

57,023'
1,530'
15,693'
5,325'
34,475'

56,516
1,895
13,606kr
5,686'
35,329'

54,167
1,931
14,393
5,000
32,843

53,959
1,551
12,470
6,147
33,791

52,154
1,600
n.a.
n.a.
n.a.

1. Not at annual rates.
2. Not seasonally adjusted.
3. Value of new construction data in recent periods may not be strictly com­
parable 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 January 1977 “Highway” imputations are included in “Other”.




N ote . Census Bureau estimates for all series except (a) mobile homes, which
are private, domestic shipments as reported by the Manufactured Housing Institute
and seasonally adjusted by the Census Bureau, and (b) sales and prices of existing
units, which are published by the National Association of Realtors. All back and
current figures are available from originating agency. Permit authorizations are
those reported to the Census Bureau from 14,000 jurisdictions through 1977, and
16,000 jurisdictions beginning with 1978.

Prices

A 51

2.15 CONSUMER AND PRODUCER PRICES
Percentage changes based on seasonally adjusted data, except as noted
12 months to
Item
1979
June

1980
June

1 month to

3 months (at annual rate) to
1979
Sept.

1980
Dec.

Mar.

Index
level
June
1980
(1967
= 100)!

1980
June

Feb.

Mar.

Apr.

May

June

C onsumer P rices2

1 All items.................................................

10.9

14.3

13.8

13.1

18.1

11.6

1.4

1.4

.9

.9

1.0

247.6

2 Commodities ..........................................
3 Food ..................................................
4 Commodities less food .......................
5
Durable ..........................................
6
Nondurable ....................................
7 Services .................................................
8 Rent ..................................................
9 Services less rent ...............................

11.1
10.1
11.6
9.9
13.8
10.6
6.8
11.1

11.7
7.1
13.7
9.2
19.6
18.1
9.4
19.5

13.3
6.5
16.4
9.1
25.2
14.3
10.2
14.9

12.5
12.1
12.7
13.2
12.8
15.8
9.0
16.9

16.1
3.8
22.1
7.6
39.8
20.9
8.3
22.8

5.0
5.6
4.7
6.8
3.5
21.6
10.0
23.3

1.2
0.0
1.7
.5
3.0
1.5
.8
1.7

1.2
1.0
1.3
.2
2.4
1.9
.5
2.0

.5
.5
.5
.5
.6
1.5
.2
1.7

.3
.3
.4
.6
.2
1.6
1.0
1.7

.3
.5
.3
.5
.1
1.8
1.2
1.9

232.8
252.0
221.4
208.6
236.3
274.2
191.1
290.0

11.1
9.5
14.9

15.9
13.6
23.8

13.4
10.9
19.5

14.2
13.9
25.6

21.7
15.7
24.1

13.0
13.5
26.6

1.6
1.1
1.5

1.5
1.2
2.1

1.1
1.1
1.9

1.0
1.0
1.8

1.1
1.1
2.3

245.5
233.7
320.4

9.9
10.2
6.7
12.2
8.9
12.5
11.8

13.5
15.0
3.3
21.2
10.1
13.3
16.0

16.1
20.7
15.3
23.4
5.9
19.7
19.4

13.3
14.6
8.6
17.9
10.0
15.8
17.0

19.3'
21.6'
-1.2'
34.8'
13.4'
16.4'
24.0'

6.0
4.0
7.8
10.1
10.9
2.8
4.4

1.4
1.7
-.4
2.8
.7
2.0
1.8

1.3
1.5
1.0
1.7
.7
-.1
.5

.5
.0
-2.8
1.4
1.9
-.6
.3

.3
.4
.1
.4
.0
.6
.1

.8
.7
.7
.7
.9
.7
.8

242.6
244.5
231.0
248.8
237.5
282.0
279.9

21.9
11.0

17.0
-2.3

25.1
16.4

27.8
5.7

21.9'
-16.7'

-3.9
-10.5

3.3
2.2

-1.5
-2.7

-.5
-6.1

.1
2.4

-.5
1.1

407.9
242.5

Other groupings

10 All items less fo o d .................................
11 All items less food and energy...............
12 Homeownership ....................................
P roducer P rices

13 Finished goods ......................................
14 Consumer ..........................................
15
Foods .............................................
16
Excluding foods .............................
17 Capital equipment .............................
18 Materials ...............................................
19 Intermediate3 ....................................
Crude
20
Nonfood ..........................................
21
Food ...............................................

1. Not seasonally adjusted.
2. Figures for consumer prices are those for all urban consumers.




3. Excludes intermediate materials for food manufacturing and manufactured
animal feeds.
S ource . Bureau of Labor Statistics.

A 52

D om estic Nonfinancial Statistics □ August 1980

2.16 GROSS NATIONAL PRODUCT AND INCOME
Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates.
1979
Account

1977

1978

1980

1979
Ql

Q2

Q3

Q4

Ql

Q2p

G ross N ational P roduct

1 Total

1,899.5

2,127.6

2,368.8

2,292.1

2,329.8

2,396.5

2,456.9C

2,520.8

2,523.4

Personal consumption expenditures ...............................
Durable goods ...................................................................
Nondurable goods .............................................................
Services .................................................................................

1,210.0
178.8
481.3
549.8

1,350.8
200.3
530.6
619.8

1,509.8
213.0
596.9
699.8

1,454.2
213.8
571.1
669.3

1,475.9
208.7
581.2
686.0

1,528.6
213.4
604.7
710.6

1,580.4
216.2
630.7
733.5

1,629.5
220.2
652.0
757.3

1,628.2
197.0
654.4
776.8

6
7
8
9
10
11
12

Gross private domestic in v e stm en t..................................
Fixed investment ...............................................................
Nonresidential ...............................................................
Structures ......................................................................
Producers’ durable e q u ip m en t.............................
Residential structures ..................................................
N o n fa r m ........................................................................

303.3
281.3
189.4
62.6
126.8
91.9
88.8

351.5
329.1
221.1
76.5
144.6
108.0
104.4

387.2
369.0
254.9
92.6
162.2
114.1
110.2

373.8
354.6
243.4
84.9
158.5
111.2
107.8

395.4
361.9
249.1
90.5
158.6
112.9
109.1

392.3
377.8
261.8
95.0
166.7
116.0
112.0

387.2
381.7
265.2
100.2
165.1
116.4
112.1

387.7
383.0
272.6
103.3
169.4
110.4
105.9

366.9
355.2
265.9
102.7
163.2
89.3
85.7

13
14

Change in business inventories ....................................
Nonfarm ..........................................................................

21.9
20.7

22.3
21.3

18.2
16.5

19.1
18.8

33.4
32.6

14.5
12.6

5.6
2.1

4.7
4.4

11.7
12.4

15
16
17

Net exports of goods and s e r v ic e s ....................................
Exports .................................................................................
Imports .................................................................................

-9.9
175.9
185.8

-10.3
207.2
217.5

-4.6
257.5
262.1

4.0
238.5
234.4

-8.1
243.7
251.9

-2.3
267.3
269.5

-11.9
280.4
292.4

-13.6
308.1
321.7

1.3
307.3
306.0

18
19
20

Government purchases of goods and s e r v ic e s.............
Federal ...................................................................................
State and local ...................................................................

396.2
144.4
251.8

435.6
152.6
283.0

476.4
166.6
309.8

460.1
163.6
296.5

466.6
161.7
304.9

477.8
162.9
314.9

501.2
178.4
322.8

517.2
186.2
331.0

527.0
192.5
334.5

21
22
23
24
25
26

Final sales, t o t a l ......................................................................
G o o d s .....................................................................................
Durable ............................................................................
Nondurable ......................................................................
Services .................................................................................
Structures .............................................................................

1,877.6
842.2
345.9
496.3
866.4
190.9

2,105.2
930.0
380.4
549.6
969.3
228.2

2,350.6
1,030.5
423.1
607.4
1,085.1
253.2

2,272.9
1,011.8
425.5
586.2
1,041.4
238.9

2,296.4
1,018.1
422.4
595.7
1,064.2
247.5

2.381.9
1,036.0
424.4
611.6
1,100.6
259.8

2,451.4
1,056.3
420.2
636.1
1,134.0
266.6

2,516.1
1,086.2
421.5
664.8
1,169.5
265.1

2,511.7
1,080.8
416.3
664.5
1,201.3
241.3

27
28
29

Change in business inventories .........................................
Durable goods ....................................................................
Nondurable goods .............................................................

21.9
11.9
10.0

22.3
13.9
8.4

18.2
13.0
5.2

19.1
18.4
.7

33.4
24.3
9.1

14.5
7.3
7.2

5.6
1.8
3.8

4.7
-9.3
14.0

11.7
8.3
3.4

30

M emo : Total GNP in 1972 d o lla r s ..................................

1,340.5

1,431.6

1,430.6

1,422.3

1,433.3

1,440.3

1,444.7

1,410.8

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

By source

2
3
4
5

By major type of product

1,399.2

N ational Income

31

Total ............................................................................................

1,525.8

1,724.3

1,924.8'

1,869.0

1,897.9

1,941.9

1,990.4

2,035.4

32
33
34
35
36
37
38

Compensation of employees .............................................
Wages and s a la r ie s .............................................................
Government and government en ter p r ises...........
Other .................................................................................
Supplement to wages and s a la r ie s ...............................
Employer contributions for social insurance . . . .
Other labor income ......................................................

1,156.9
984.0
201.3
782.7
172.9
81.2
91.8

1,304.5
1,103.5
218.0
885.5
201.0
94.6
106.5

1,459.2'
1,227.4'
233.5
993.9
231.8
109.1
122.7

1,411.2
1,189.4
228.1
961.3
221.8
105.8
116.0

1,439.7
1,211.5
231.2
980.3
228.2
107.9
120.3

1,472.9
1,238.0
234.4
1,003.6
234.8
109.9
124.9

1,513.2
1,270.7
240.2
1,030.5
242.5
113.0
129.6

1,555.2
1,303.6
243.5
1,060.1
251.6
117.2
134.4

1,566.1
1,309.3
247.3
1,062.0
256.8
118.0
138.8

39
40
41

Proprietors’ incom e1 .............................................................
Business and professional1 .............................................
Farm1 .....................................................................................

100.2
80.5
19.6

116.8
89.1
27.7

130.8
98.0
32.8

129.0
94.8
34.2

129.3
95.5
33.7

130.3
99.4
30.9

134.5
102.1
32.5

130.0
102.3
27.7

119.2
97.1
22.2

42

Rental income of persons2 .................................................

24.7

25.9

27.3

26.8

26.6

43
44
45
46

Corporate profits1 .................................................................
Profits before tax3 .............................................................
Inventory valuation ad ju stm en t....................................
Capital consumption a d ju stm en t..................................

150.0
177.1
-15.2
-12.0

167.7
206.0
-25.2
-13.1

178.2'
236.6'
-41.8
-16.7

178.9
233.3
-39.9
-14.5

176.6
227.9
-36.6
-14.7

180.8
242.3
-44.0
-17.6

176.4
243.0
-46.5
-20.1

175.0
260.4
-63.2
-22.2

47

Net interest ..............................................................................

94.0

109.5

129.7

122.6

125.6

131.5

139.2

148.1

1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustments.




26.9

27.0

27.0

3. For after-tax profits, dividends, and the like, see table 1.50.
Source. Survey o f Current Business (Department of Commerce).

n.a.

27.3
n.a.
n.a.

-27.8
-24.6
156.8

National Income Accounts

A53

2.17 PERSONAL INCOME AND SAVING
Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted.
1979
Account

1977

1978

1980

1979
Q2

Ql

Q3

Q4

Q2p

Ql

P ersonal Income and S aving

Total personal income.............................................

1,531.6

1,717.4

1,924.2

1,852.6

1,892.5

1,946.6

2,005.0

2,057.4

2,078.3

2 Wage and salary d isb u rsem en ts........................................
3
Commodity-producing in d u strie s..................................
4
M anufacturing.................................................................
5
Distributive industries ......................................................
Service industries ...............................................................
7
Government and government en ter p r ises................

984.0
343.1
266.0
239.1
200.5
201.3

1,103.3
387.4
298.3
269.4
228.7
217.8

1,227.6
435.2
330.9
300.8
257.9
233.7

1,189.3
423.0
324.8
291.1
247.2
228.0

1,212.4
431.7
328.5
295.8
252.8
232.1

1,238.1
438.3
331.9
304.0
261.3
234.5

1,270.5
447.8
338.3
312.4
270.2
240.1

1,303.7
460.0
347.2
320.1
280.0
243.6

1,309.3
453.7
341.4
320.8
287.5
247.3

91.8

122.7
130.8
98.0
32.8
26.9
52.7
192.1
252.0

116.0
129.0
94.8
34.2
27.3
51.5
181.0
237.3

120.3
129.3
95.5
33.7
26.8
52.3
187.6
243.6

124.9
130.3
99.4
30.9
26.6
52.8
194.4
260.8

129.6
134.5

80.5
19.6
24.7
42.1
141.7
208.4

106.5
116.8
89.1
27.7
25.9
47.2
163.3
224.1

138.8
119.2
97.1

32.5
27.0
54.4
205.5
266.5

134.4
130.0
102.3
27.7
27.0
56.7
217.2
274.9

27.3
58.6
229.3
282.2

142.0

143.6

1

6

8 Other
10

labor income ...............................................................

Business and professional1 .............................................

12 Rental income of persons2 .................................................

100.2

102.1

16

Old-age survivors, disability, and health insurance
105.0

116.3

132.4

123.8

127.1

138.7

140.0

17

L ess: Personal contributions for social insurance ..

61.3

69.6

80.7

78.7

79.8

81.2

82.9

18 E quals - Personal income .................................................

1,531.6

1,717.4

1,924.2

1,852.6

1,892.5

1,946.6

2,005.0

86.6
2,057.4

22.2

86.4
2,078.3

L ess: Personal tax and nontax p a y m e n ts..................

226.4

259.0

299.9

280.4

290.7

306.6

321.9

320.0

324.3

20 E quals : Disposable personal income ...........................

1,305.1

1,458.4

1,624.3

1,572.2

1,601.7

1,640.0

1,683.1

1,737.4

1,754.0

21

19

L ess : Personal o u t la y s ......................................................

1,240.2

1,386.4

1,550.5

1,493.0

1,515.8

1,569.7

1,623.4

1,672.9

1,671.1

22 E quals : Personal saving ....................................................

65.0

72.0

73.8

79.2

85.9

70.3

59.7

64.4

82.9

23
24
25
26

M emo :
Per capita (1972 dollars)
Gross national product ....................................................
Personal consumption expenditures ...........................
Disposable personal in c o m e ...........................................
Saving rate ( p e r c e n t).............................................................

6,181
3,974
4,285
5.0

6,402
4,121
4,449
4.9

6,494
4,194
4,512
4.5

6,514
4,197
4,536
5.0

6,459
4,155
4,510
5.4

6,494
4,195
4,501
4.3

6,509
4,227
4,502
3.5

6,514
4,222
4,502
3.7

6,346
4,110
4,428
4.7

27

Gross saving ...........................................................

276.1

324.6

363.9

362.2

374.3

367.3

351.9

346.6

n.a.

28
29
30
31

Gross private saving .............................................................
Personal saving ......................................................................
Undistributed corporate profits1 ......................................
Corporate inventory valuation adjustment ..................

295.6
65.0
35.2
- 1 5 .2

324.9
72.0
36.0
- 2 5 .2

349.6
73.8
32.9
- 4 1 .8

345.2
79.2
36.1
- 3 9 .9

360.5
85.9
35.6
- 3 6 .6

352.1
70.3
34.0
- 4 4 .0

340.7
59.7
25.9
- 4 6 .5

343.7
64.4
15.9
- 6 3 .2

n.a.
82.9
n.a.
- 2 7 .8

121.3
74.1

132.9
84.0

147.7
95.3

139.9
89.9

145.1
93.9

150.4
97.5

155.3
99.8

159.6
103.7

163.9
107.1

- 1 9 .5
- 4 6 .3
26.8

- .3
- 2 7 .7
27.4

13.2
- 1 1 .4
24.6

15.8
-1 1 .7
27.6

12.7
- 7 .0
19.7

14.0
- 1 1 .3
25.3

- 1 5 .7
25.8

1.7
- 2 2 .9
24.6

n.a.
n.a.

1.1

1.1

1.1

1.1

1.1

1.2

1.2

Gross investment ....................................................

283.6

327.9

367.6

362.8

373.1

375.6

359.1

357.5

352.5

40 Gross private d o m e stic ........................................................
41 Net foreign ...............................................................................

303.3
- 1 9 .6

351.5
-2 3 .5

387.2
- 1 9 .5

-11.0

373.8

395.4
- 2 2 .3

392.3
- 1 6 .7

387.2
-2 8 .1

387.7
- 3 0 .2

366.9
- 1 4 .4

Statistical discrepancy .............................................

7.5

3.3

2.9

.6

-1.3

8.3

7.2

11.0

n.a.

G ross S aving

C a p i t a l c o n s u m p t i o n a llo w a n c e s

32 Corporate .................................................................................
33 Noncorporate ..........................................................................
34 Wage accruals less disbursements
......................
35 Government surplus, or deficit ( - ) , national income
and product a c c o u n ts ....................................................
36
Federal ...................................................................................
37
State and local ...................................................................
38 Capital grants received by the United States, net . . .
39

42

1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.




S o u rce.

S u r v e y o f C u r r e n t B u s in e s s

10.0

(Department of Commerce).

A54

International Statistics □ A ugust 1980

3.10 U.S. INTERNATIONAL TRANSACTIONS Summary
Millions of dollars; quarterly data are seasonally adjusted except as noted.1
1980

1979
Item credits or debits

1977

1978

1979
Ql

1 Balance on current account .............................................
2 Not seasonally adjusted................................................

Q2

Q3

Q4

Ql

-14,068

-14,259

-788

1,408
1,697

-1,493
-61

1,099
-2,909

-1,802
486

-2,567
-2,405

3
4
5
6
7
8
9

Merchandise trade balance2 .........................................
Merchandise exports ................................................
Merchandise imports ................................................
Military transactions, net .............................................
Investment income, net3 ...............................................
Other service transactions, n e t......................................
M emo : Balance on goods and services3 4 ......................

-30,873
120,816
-151,689
1,628
17,988
1,794
-9,464

-33,759
142,054
-175,813
886
20,899
2,769
-9,204

-29,469
182,055
-211,524
-1,274
32,509
3,112
4,878

-5,114
41,805
-46,919
-29
7,038
837
2,732

-8,070
42,815
-50,885
-102
7,271
791
-110

-7,060
47,198
-54,258
-443
9,319
690
2,506

-9,225
50,237
-59,462
-700
8,883
792
-250

-10,875
54,708
-65,583
-700
10,123
761
-691

10
11

Remittances, pensions, and other transfers...................
U.S. government grants (excluding military).................

-1,830
-2,775

-1,884
-3,171

-2,142
-3,524

-464
-860

-484
-899

-529
-878

-665
-887

-564
-1,312

12 Change in U.S. government assets, other than official re­
serve assets, net (increase, - ) ..................................

-3,693

-4,644

-3,783

-1,102

-991

-766

-925

-1,461

13 Change in U.S. official reserve assets (increase, - ) ........
14 Gold ............................................................................
15 Special drawing rights (SDRs) ......................................
16 Reserve position in International Monetary F und........
17 Foreign currencies .......................................................

-375
-118
-121
-294
158

732
-65
1,249
4,231
-4,683

-1,106
-65
-1,136
-189
283

-3,585
0
-1,142
-86
-2,357

343
0
6
-78
415

2,779
0
0
-52
2,831

-644
-65
0
27
-606

-3,246
0
-1,152
-34
-2,060

18 Change in U.S. private assets abroad (increase, - ) 3 ....
19 Bank-reported claims....................................................
20 Nonbank-reported claims .............................................
21 U.S. purchase of foreign securities, n e t ........................
22 U.S. direct investments abroad, net3 ............................

-31,725
-11,427
-1,940
-5,460
-12,898

-57,279
-33,631
-3,853
-3,450
-16,345

-56,858
-25,868
-2,029
-4,643
-24,318

-3,081
6,181
-2,442
-1,001
-5,819

-14,631
-7,839
935
-513
-7,214

-27,228
-16,997
-932
-2,143
-7,156

-11,918
-7,213
410
-986
-4,129

-7,110
-978
n.a.
-787
-5,345

23 Change in foreign official assets in the United States
(increase, +) .............................................................
24 U.S. Treasury securities ...............................................
25 Other U.S. government obligations .............................
26 Other U.S. government liabilities5 ...............................
27 Other U.S. liabilities reported by U.S. banks...............
28 Other foreign official assets6 ........................................

36,574
30,230
2,308
1,159
773
2,105

33,292
23,523
666
2,220
5,488
1,395

-14,270
-22,356
465
-714
7,219
1,116

-8,744
-8,752
-5
-128
-72
213

-10,095
-12,859
94
122
2,354
195

5,789
5,024
335
216
56
158

-1,221
-5,769
41
-924
4,881
550

-7,765
-5,503
801
-43
-3,365
345

14,167
6,719
473

30,804
16,259
1,640

51,845
32,668
1,692

10,945
7,001
-543

16,502
12,082
579

19,152
13,185
606

5,246
400
1,050

12,781
5,902
n.a.

534
2,713
3,728

2,197
2,811
7,896

4,830
2,942
9,713

2,564
803
1,120

-120
1,149
2,812

1,466
677
3,217

920
313
2,564

3,279
2,477
1,123

0
-880

0
11,354

1,139
23,822

1,139
3,020
74

0
10,364
1,167

0
-825
-3,641

0
11,264
2,400

1,152
8,215
-115

-880

11,354

23,822

2,946

9,197

2,816

8,864

8,330

29 Change in foreign private assets in the United States
(increase, + )3 ...........................................................
30 U.S. bank-reported liabilities........................................
31 U.S. nonbank-reported liabilities...................................
32 Foreign private purchases of U.S. Treasury securities,
net .........................................................................
33 Foreign purchases of other U.S. securities, n e t ............
34 Foreign direct investments in the United States, net3 ...
35 Allocation of SDRs .........................................................
36 Discrepancy .....................................................................
37 Owing to seasonal adjustments ....................................
38 Statistical discrepancy in recorded data before seasonal
adjustment .............................................................
M emo :

Changes in official assets
U.S. official reserve assets (increase, - ) ......................
Foreign official assets in the United States
(increase, + ) .........................................................
41 Change in Organization of Petroleum Exporting Countries
official assets in the United States (part of line 23
above) .......................................................................
42 Transfers under military grant programs (excluded from
lines 4, 6, and 11 above)...........................................

39
40

-375

732

-1,106

-3,585

343

2,779

-644

-3,246

35,416

31,072

-13,556

-8,616

-10,216

5,573

-297

-7,722

6,351

-1,137

5,508

-1,361

238

1,676

4,955

2,721

204

236

305

29

49

88

139

91

1. Seasonal factors are no longer calculated for lines 13 through 42.
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 6.
3. Includes reinvested earnings of incorporated affiliates.
4. Differs from the definition of “net exports of goods and services” in the
national income and product (GNP) account. The GNP definition makes various
adjustments to merchandise trade and service transactions.




5. Primarily associated with military sales contracts and other transactions ar­
ranged with or through foreign official agencies.
6. Consists of investments in U.S. corporate stocks and in debt securities of
private corporations and state and local governments.
Note. Data are from Bureau of Economic Analysis, Survey of Current Business
(U.S. Department of Commerce).

Trade and Reserve Assets

A55

3.11 U.S. FOREIGN TRADE
Millions of dollars; monthly data are seasonally adjusted.
1979
Item

1977

1978

Dec.
1 EXPORTS of domestic and foreign
merchandise excluding grant-aid
shipments ....................................

121,150

143,578

1980

1979

181,637

16,742

Jan.

17,348

2 GENERAL IMPORTS including mer­
chandise for immediate consump­
tion plus entries into bonded
warehouses .................................

147,685

171,978

206,326

19,665

20,945

3 Trade balance ....................................

-26,535

-28,400

-24,690

-2,923

-3,597

N ote . Bureau of Census data reported on a free-alongside-ship (f.a.s.) value
basis. Effective January 1978, major changes were made in coverage, reporting,
and compiling procedures. The international-accounts-basis data adjust the Census
basis data for reasons of coverage and timing. On the export side, the largest
adjustments are: (a) the addition of exports to Canada not covered in Census
statistics, and (b) the exclusion of military exports (which are combined with other
military transactions and are reported separately in the “service account”).

3.12

Feb.

Mar.

Apr.

May

June

18,534

18,468

21,640

20,607

19,308

20,528

19,893

-4,407

-2,073

-840

-2,850

-1,251

17,233

17,678

18,642

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.
S ource . FT 900 “Summary of U.S. Export and Import Merchandise Trade”
(U.S. Department of Commerce, Bureau of the Census).

U.S. RESERVE ASSETS
Millions of dollars, end of period
1980
Type

1977

1978

1979
Jan.

Feb.

Mar.

Apr.

May

June

JulyP

1 Total1 ................................................

19,312

18,650

18,928

20,962

20,840

21,448

21,521

21,794

21,921

21,828

2 Gold stock, including Exchange Stabili­
zation Fund1 ...............................

11,719

11,671

11,172

11,172

11,172

11,172

11,172

11,172

11,172

11,172

3 Special drawing rights2-3 .....................

2,629

1,558

2,724

3,871

3,836

3,681

3,697

3,744

3,782

3,842

4 Reserve position in International Mone­
tary Fund2 ...................................

4,946

1,047

1,253

1,251

1,287

1,222

1,094

1,157

1,385

1,410

5 Foreign currencies4 ............................

18

4,374

3,779

4,668

4,545

5,373

5,558

5,721

5,582

5,404

1. Gold held under earmark at Federal Reserve Banks for foreign and inter­
national accounts is not included in the gold stock of the United States; see table
3.22.
2. Beginning July 1974, the IMF adopted a technique for valuing the SDR based
on a weighted average of exchange rates for the currencies of 16 member countries.
The U.S. SDR holdings and reserve position in the IMF also are valued on this
basis beginning July 1974.




3. Includes allocations by the International Monetary Fund of SDRs as follows:
$867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; $710 million on Jan.
1, 1972; $1,139 million on Jan. 1, 1979; and $1,152 million Jan. 1, 1980; plus net
transactions in SDRs.
4. Beginning November 1978, valued at current market exchange rates.

A 56
3.13

International Statistics □ August 1980
FOREIGN BRANCHES OF U.S. BANKS

Balance Sheet Data

Millions of dollars, end of period
1979
Asset account

1976

1977

1980

19781
Nov.

Dec.

Jan.

Feb.

Mar.

372,099

371,483

Apr.

MayP

All foreign countries
1 Total, all currencies............................

219,420

258,897

306,795

365,587

375,861

378,582

2 Claims on United States.....................
3 Parent bank....................................
4 Other .............................................

7,889
4,323
3,566

11,623
7,806
3,817

17,340
12,811
4,529

37,606
31,133
6,473

32,302'
25,929
6,373'

31,603'
24,788
6,815'

39,736'
32,192
7,544'

35,656'
28,224
7,432'

34,156
26,266
7,890

35,575
26,116
9,459

5 Claims on foreigners ..........................
6 Other branches of parent bank.......
7 Banks .............................................
8 Public borrowers2 ............................
9 Nonbank foreigners ........................

204,486
45,955
83,765
10,613
64,153

238,848
55,772
91,883
14,634
76,560

278,135
70,338
103,111
23,737
80,949

313,409
79,076
122,004
25,568
86,761

317,109'
79,661
123,344'
26,060
88,044'

313,816'
75,419
125,070'
25,797'
87,530'

316,993'
78,185
124,417'
26,045'
88,346'

319,748'
80,574
125,983'
25,473'
87,718'

325,367
79,541
130,067
25,202
90,557

326,150
76,329
130,201
25,412
94,208

15,370

16,079

16,338

16,857

276,017

276,711

364,166

360,373

10 Other assets........................................

7,045

8,425

11,320

14,572

11 Total payable in U.S. dollars..............

167,695

193,764

224,940

266,544

277,613

277,415

12 Claims on United States.....................
13 Parent b ank....................................
14 Other .............................................

7,595
4,264
3,332

11,049
7,692
3,357

16,382
12,625
3,757

36,362
30,652
5,710

31,171'
25,632
5,539'

30,518'
24,516
6,002'

38,519'
31,812
6,707'

34,476'
27,872
6,604'

32,872
25,896
6,976

34,330
25,796
8,534

15 Claims on foreigners ..........................
16 Other branches of parent bank.......
17 Banks .............................................
18 Public borrowers2 ............................
19 Nonbank foreigners ........................

156,896
37,909
66,331
9,022
43,634

178,896
44,256
70,786
12,632
51,222

203,498
55,408
78,686
19,567
49,837

223,201
60,397
92,730
21,160
48,914

229,053'
61,525
96,192'
21,618'
49,718'

226,781'
58,084'
97,905'
21,536'
49,256'

229,013'
60,217
97,188'
21,790'
49,818'

233,717'
63,434'
99,318'
21,369'
49,596'

235,804
61,787
103,148
20,985
49,884

234,069
58,898
102,631
21,208
51,332

20 Other assets........................................

3,204

3,820

5,060

6,981

7,421'

7,858

8,485

8,518

8,937

9,016

14,755'
267,645

14,954'
265,157

United Kingdom
21 Total, all currencies............................

81,466

90,933

106,593

131,959

130,873

128,417

133,793

136,654

138,915

138,930

22 Claims on United States.....................
23 Parent b ank....................................
24 Other .............................................

3,354
2,376
978

4,341
3,518
823

5,370
4,448
922

11,841
9,892
1,949

11,117
9,338
1,779

10,147
8,207
1,940

10,697
8,584
2,113

11,990
9,838
2,152

11,533
9,300
2,233

11,399
9,140
2,259

25 Claims on foreigners ..........................
26 Other branches of parent bank .......
27 Banks .............................................
28 Public borrowers2 ............................
29 Nonbank foreigners ........................

75,859
19,753
38,089
1,274
16,743

84.016
22.017
39,899
2,206
19,895

98,137
27,830
45,013
4,522
20,772

115,656
33,487
52,580
4,868
24,721

115,123
34,291
51,343
4,919
24,570

113,617
31,995
52,177
4,559
24,886

118,212
35,187
53,127
4,499
25,399

119,290
35,536
52,509
5,860
25,385

122,105
36,015
54,020
5,578
26,492

121,851
34,312
54,069
5,591
27,879

30 Other assets........................................

2,253

2,576

3,086

4,462

4,633

4,653

4,884

5,374

5,277

5,680

31 Total payable in U.S. dollars..............

61,587

66,635

75,860

93,502

94,287

91,760

96,228

99,711

100,628

98,809

32 Claims on United States.....................
33 Parent b ank....................................
34 Other .............................................

3,275
2,374
902

4,100
3,431
669

5,113
4,386
727

11,352
9,697
1,655

10,746
9,297
1,449

9,820
8,161
1,659

10,285
8,467
1,818

11,620
9,778
1,842

11,071
9,179
1,892

10,988
9,059
1,929

35 Claims on foreigners ..........................
36 Other branches of parent bank.......
37 Banks .............................................
38 Public borrowers2 ............................
39 Nonbank foreigners ........................

57,488
17,249
28,983
846
10,410

61,408
18,947
28,530
1,669
.12,263

69,416
22,838
31,482
3,317
11,779

80,127
27,993
36,604
3,311
12,219

81,294
28,928
36,760
3,319
12,287

79,740
26,842
37,487
3,274
12,137

83,603
29,907
38,185
3,253
12,258

85,452
30,204
37,768
4,589
12,891

86,818
29,980
39,159
4,277
13,402

85,013
28,466
38,594
4,277
13,676

40 Other assets........................................

824

1,126

1,331

2,023

2,247

2,200

2,340

2,639

2,739

2,808

117,839

114,748

115,742

116,465

Bahamas and Caymans
66,774

79,052

91,735

108,872

42 Claims on United States.....................
43 Parent b ank....................................
44 Other .............................................

3,508
1,141
2,367

5,782
3,051
2,731

9,635
6,429
3,206

23,856
19,868
3,988

19,124'
15,196
3,928'

19,680'
15,366
4,314'

27,154'
22,414
4,740'

21,806'
17,298
4,508'

20,057
15,269
4,788

21,408
15,338
6,070

45 Claims on foreigners ..........................
46 Other branches of parent bank.......
47 Banks .............................................
48 Public borrowers2 ............................
49 Nonbank foreigners ........................

62,048
8,144
25,354
7,105
21,445

71,671
11,120
27,939
9,109
23,503

79,774
12,904
33.677
11,514
21,679

81,959
8,854
40,050
12,658
20,397

86,652'
9,689
43,120'
12,893
20,950'

87,838'
10,242
44,062'
12,908'
20,626'

86,829'
10,265
42,435'
13,121'
21,008'

89,279'
13,659
44,450'
11,324'
19,846'

91,590
13,438
47,131
11,345
19,676

90,962
12,454
46,720
11,626
20,162

41 Total, all currencies............................

50 Other assets........................................

1,217

1,599

2,326

3,057

51 Total payable in U.S. dollars..............

62,705

73,987

85,417

101,932

For notes see opposite page.




108,910

3,134'
102,302

110,946

3,428

3,856

3,663

4,095

4,095

105,013

111,504

108,550

109,631

110,841

Overseas Branches

A 57

3.13 Continued
1979
Liability account

1976

1977

1980

19781
Nov.

Dec.

Jan.

Feb.

Mar.

372,099

371,483

Apr.

MayP

All foreign countries
52 Total, all currencies ............................
53 To United States ...............................
54 Parent b ank....................................
55 Other banks in United States.......... }
56 Nonbanks........................................
57 To foreigners......................................
58 Other branches of parent bank .......
59 Banks .............................................
60 Official institutions..........................
61 Nonbank foreigners ........................

219,420

258,897

306,795

365,587

375,861

378,582

32,719
19,773
12,946

44,154
24,542
19,613

57,948
28,464
12,338
17,146

62,179
19,274
13,897
29,008

66,573'
24,275
15,132'
27,166'

70,341'
24,763'
13,175
32,403'

71,118'
22,866
14,889'
33,363'

67,624'
22,383
12,351
32,890'

69,463
24,241
12,832
32,390

72,792
26,518
13,091
33,183

179,954
44,370
83,880
25,829
25,877

206,579
53,244
94,140
28,110
31,085

238,912
67,496
97,711
31,936
41,769

289,555
77,188
128,024
34,958
49,385

283,324'
77,601
122,829'
35,664
47,230'

276,189'
72,846
122,044'
33,073'
48,226'

286,262'
73,602'
130,252'
34,221
48,187'

289,466'
76,709
129,306
34,806
48,645'

290,944
75,041
130,701
35,007
50,195

289,959
72,499
130,769
34,838
51,853

364,166

360,373

62 Other liabilities...................................

6,747

8,163

9,935

13,853

14,269

13,843'

63 Total payable in U.S. dollars..............

173,071

198,572

230,810

272,166

273,752

270,597'

31,932
19,599
12,373

42,881
24,213
18,669

55,811
27,393
12,084
16,334

59,889
18,089
13,698
28,102

64,485'
23,216
14,935'
26,334'

67,957'
23,624'
12,845
31,488'

68,599'
21,636
14,482'
32,481'

68 To foreigners......................................
69 Other branches of parent bank.......
70 Banks .............................................
71 Official institutions..........................
72 Nonbank foreigners ........................

137,612
37,098
60,619
22,878
17,017

151,363
43,268
64,872
23,972
19,251

169,927
53,396
63,000
26,404
27,127

204,654
59,429
83,605
28,521
33,099

201,456'
60,513
80,671'
29,048
31,224'

195,229'
56,779
80,988'
26,691'
30,771'

205,511'
57,714
89,238'
27,727
30,832

73 Other liabilities...................................

3,527

4,328

5,072

7,623

64 To United States ...............................
65 Parent b ank....................................
66 Other banks in United States.......... |
67 Nonbanks........................................

7,811

7,411'

14,719'
282,200

8,090

14,393'

15,454

15,831

283,616

284,819

65,363'
21,195
12,004
32,164'

67,109
22,996
12,583
31,530

70,306
25,195
12,777
32,334

209,157'
61,249
88,055
28,321
31,532'

207,742
59,375
87,622
28,612
32,133

205,463
56,528
86,945
28,316
33,674

8,146'

8,765

9,050

282,666

United Kingdom
74 Total, all currencies ............................
75 To United States ...............................
76 Parent b an k ....................................
77 Other banks in United States.......... |
78 Nonbanks........................................
79 To foreigners......................................
80 Other branches of parent bank.......
81 Banks .............................................
82 Official institutions..........................
83 Nonbank foreigners ........................

81,466

90,933

106,593

131,959

130,873

128,417

133,793

136,654

138,915

138,930

5,997
1,198
4,798

7,753
1,451
6,302

9,730
1,887
4,232
3,611

19,612
2,516
7,381
9,715

20,986
3,104
8,715
9,167

20,378
3,014
7,631
9,733

20,808
2,758
7,627
10,423

19,921
2,140
6,502
11,279

20,838
2,301
6,382
12,155

19,877
2,118
6,265
11,494

73,228
7,092
36,259
17,273
12,605

80,736
9,376
37,893
18,318
15,149

93,202
12,786
39,917
20,963
19,536

106,766
12,463
49,299
23,060
21,944

104,032
12,567
47,620
24,202
19,643

102,117
11,458
48,872
21,822'
19,965'

106,524
11,099
53,031
22,890
19,504

110,473
14,799
53,204
23,303
19,167

111,375
14,268
53,955
23,453
19,699

111,770
13,801
54,314
23,628
20,027

84 Other liabilities...................................

2,241

2,445

3,661

5,581

5,855

5,922

6,461

6,260

6,702

7,283

85 Total payable in U.S. dollars..............

63,174

67,573

77,030

94,983

95,449

92,771

97,391

101,293

101,629

101,170

5,849
1,182
4,667

7,480
1,416
6,064

9,328
1,836
4,144
3,348

19,138
2,467
7,338
9,333

20,552
3,054
8,673
8,825

19,827
2,968
7,569
9,290

20,206
2,724
7,467
10,015

19,381
2,089
6,351
10,941

20,337
2,252
6,318
11,767

19,284
2,060
6,210
11,014

90 To foreigners......................................
91 Other branches of parent bank .......
92 Banks .............................................
93 Official institutions..........................
94 Nonbank foreigners ........................

56,372
5,874
25,527
15,423
9,547

58,977
7,505
25,608
15,482
10,382

66,216
9,635
25,287
17,091
14,203

73,542
8,337
29,424
19,139
16,642

72,397
8,446
29,424
20,192
14,335

70,597
7,793
30,988
17,995'
13,821'

74,705
7,322
34,694
18,923
13,766

79,251
10,894
35,300
19,255
13,802

78,296
10,468
34,485
19,554
13,789

78,279
9,998
34,509
19,558
14,214

95 Other liabilities...................................

953

1,116

1,486

2,303

2,500

2,347

2,480

2,661

2,996

3,607

117,839

114,748

86 To United States ...............................
87 Parent b ank....................................
88 Other banks in United States.......... |
89 Nonbanks........................................

Bahamas and Caymans
66,774

79,052

91,735

108,872

108,910

115,742

116,465

97 To United States ...............................
98 Parent b ank....................................
99 Other banks in United States.......... |
100 Nonbanks........................................

22,721
16,161
6,560

32,176
20,956
11,220

39,431
20,356
6,199
12,876

34,995
10,937
5,545
18,513

37,674'
15,080
5,346'
17,248'

43,092'
16,801
4,609
21,682'

43,580'
15,099
6,351'
22,130'

40,896'
15,341
4,778
20,777'

41,841
16,989
5,417
19,435

45,561
19,114
5,720
20,727

101 To foreigners......................................
102 Other branches of parent bank .......
103 Banks .............................................
104 Official institutions..........................
105 Nonbank foreigners ........................

42,899
13,801
21,760
3,573
3,765

45,292
12,816
24,717
3,000
4,759

50,447
16,094
23,104
4,208
7,041

71,259
21,078
36,498
5,176
8,507

68,578'
20,875
33,611'
4,866
9,226'

65,229'
20,559
30,504'
5,020
9,146'

71,132'
22,150
34,701'
5,016
9,265'

70,804'
22,401
33,760
4,958
9,685'

70,583
22,470
33,028
5,435
9,650

67,957
20,041
32,128
5,461
10,327

96 Total, all currencies............................

106 Other liabilities...................................

1,154

1,584

1,857

2,618

2,658

107 Total payable in U.S. dollars..............

63,417

74,463

87,014

103,339

103,393

1. In May 1978 the exemption level for branches required to report was increased, which reduced the number of reporting branches.
2. In May 1978 a broader category of claims on foreign public bor-




110,946

2,625'
105,997

3,127
112,929

3,048'
110,074

3,318

2,947

111,389

112,387

rowers, including corporations that are majority owned by foreign governments,
replaced the previous, more narrowly defined claims on foreign official institutions.

A 58
3.14

International Statistics □ A ugust 1980
SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period
1979

Item

1

1977

Total1 ..................................................................

' 1978'

1980

1979'

Dec.'

Jan.'

Feb.'

Mar.'

Apr.'

Mayf

Jun&p

131,097

162,589

149,466

149,466

145,999

145,037

142,069

140,500

143,390

148,821

18,003
47,820

23,290
67,671

30,411
47,666

30,411
47,666

24,739
48,864

24,491
48,234

27,226
42,797

27,923
40,527

28,416
42,371

28,750
45,907

32,164
20,443
12,667

35,894
20,970
14,764

37,669
17,387
16,333

37,669
17,387
16,333

38,152
17,434
16,810

37,888
17,384
17,040

37,785
16,784
17,477

37,718
16,384
17,948

38,104
16,184
17,955

39,821
15,954
18,389

70,748
2,334
4,649
50,693
1,742
931

93,089
2,486
5,046
58,817
2,408
743

85,602
1,898
6,371
52,697
2,412
486

85,602
1,898
6,371
52,697
2,412
486

82,628
1,922
4,780
53,456
2,480
733

79,852
2,347
4,916
54,602
2,392
928

77,119
1,644
6,099
53,997
2,419
791

74,154
1,903
5,979
54,403
3,316
745

74,089
2,134
6,034
57,317
2,889
927

75,195
2,157
5,989
61,921
2,694
865

By type

Liabilities reported by banks in the United States2
U.S. Treasury bills and certificates3 .....................
U.S. Treasury bonds and notes
4 Marketable ......................................................
5
Nonmarketable4 ...............................................
6 U.S. securities other than U.S. Treasury securities5
2
3

By area
7

Western Europe1 .................................................
................................................................
Latin America and Caribbean.............................
Asia ...................................................................
Africa ..................................................................
Other countries6 ..................................................

8 Canada

9
10
11
12

1. Includes the Bank for International Settlements.
2. Principally demand deposits, time deposits, bankers acceptances, commercial
paper, negotiable time certificates of deposit, and borrowings under repurchase
agreements.
3. Includes nonmarketable certificates of indebtedness (including those payable
in foreign currencies through 1974) and Treasury bills issued to official institutions
of foreign countries.
4. Excludes notes issued to foreign official nonreserve agencies. Includes bonds
and notes payable in foreign currencies.

3.15

5. Debt securities of U.S. government corporations and federally sponsored
agencies, and U.S. corporate stocks and bonds.
6. Includes countries in Oceania and Eastern Europe.
N ote : Based

on Treasury Department data and on data reported to the Treasury
Department by banks (including Federal Reserve Banks) and securities dealers
in the United States.

LIABILITIES TO AND CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in Foreign Currencies
Millions of dollars, end of period
1978
Item

1976

Dec.'
1 Banks’ own liabilities .....................................................................
2 Banks’ own claims1 .........................................................................
3
Deposits .....................................................................................
4
Other claims ...............................................................................
5 Claims of banks’ domestic customers2 .............................................

781
1,834
1,103
731

1. Includes claims of banks’ domestic customers through March 1978.
2. Assets owned by customers of the reporting bank located in the United States
that represent claims on foreigners held by reporting banks for the accounts of
their domestic customers.




1979

1980

1977

925
2,356
941
1,415

N ote :

thorities.

2,347
3,663
1,798
1,864
367

June'
1,978
2,559
1,371
1,189
573

Sept.'
2,393
2,700
1,356
1,344
616

Dec.'
1,870
2,438
1,032
1,406
592

Mar.'
2,237
2,812
1,212
1,600
1,056

Data on claims exclude foreign currencies held by U.S. monetary au-

Bank-Reported Data

A 59

3.16 LIABILITIES TO FOREIGNERS Reported by Banks in the United States
Payable in U.S. dollars
Millions of dollars, end of period

Holder and type of liability

Feb.

Dec.
1 All foreigners .............................................

Mar.

Apr.

May

June/>

110,657

166,796'

187,339'

184,844'

193,998'

185,977

180,552'

182,847

185,841

16,803
11,347

18,996
11,521

78,699'
19,211
12,441
9,693'
37,353'

117,146'
23,308'
13,671'
16,277'
63,890'

113,543'
20,791'
12,504'
12,692'
67,556'

122,689'
22,520'
12,741'
12,471'
74,957'

119,118
22,678
12,877
14,611
68,951

115,586'
22,319'
12,627'
15,020'
65,620

116,323
22,541
12,668
15,914
65,200

116,711
25,969
12,748
16,682
61,313

40,744

48,906

68,202

70,193'
48,573

71,301'
49,860'

71,309
49,360

66,859
44,408

64,966'
42,232

66,524
44,088

69,129
47,173

17,396
2,499'

19,270
2,350'

18,931
2,509

19,407
2,542

19,701
2,750

19,944'
2,790'

19,643
2,793

19,429
2,527

3,274

2,607

2,351'

1,227

1,758

1,968'

1,845

231
139

906
330
84
492

709'
260
151'
298

444
164
89
191

393
153
78
162

383
160
79
144

648'
241
93
314'

447
144

842
99
92
652

1,701
201

1,643
102

783
102

1,319
114

1,376
157

1,320
87

1,398
82

1,637

1,499
1

1,538
2

681
0

1,206
0

1,218
0

1,233
0

1,317
0

1,551
0

65,822

90,706'

78,077'

73,603'

72,725

70,023

68,450'

71,147

74,657

3,394
2,321

3,528
1,797

12,129'
3,390
2,550
6,189'

18,163'
4,704'
3,041'
10,418'

12,347'
3,725'
2,309'
6,313'

12,151
3,680
2,367
6,104

14,527
3,928
2,397
8,202

14,547'
4,734
2,392
7,421'

15,293
4,484
2,581
8,227

16,216
5,007
2,646
8,564

37,725

47,820

78,577
67,415

59,914
47,666

61,256

60,575
48,234

55,497
42,797

53,903
40,527

55,854
42,731

58,441
45,907

10,992
170

12,196
52

12,357
35

12,303
37

12,668
32

13,341
35

13,084
40

12,485
48

37,174

57,464'

88,384'

91,389'

100,450'

95,162

92,013'

92,106

89,734

9,104
2,297

52,674'
15,320'
11,249
1,453
2,618'

83,383'
19,493'
13,257'
1,724'
4,512'

86,007'
18,451'
11,820'
1,278'
5,353

94,974'
20,017'
13,345
1,304'
5,369'

89,381
20,430
13,371
1,574
5,485

86,198'
20,578'
12,681'
1,498'
6,399'

86,279
21,079
13,033
1,423
6,623

84,270
22,958
15,025
1,443
6,490

Own foreign offices3 ...............................

37,353'

63,890'

67,556'

74,957'

68,951

65,620

65,200

61,313

36 Banks’ custody liabilities4 ............................
37 U.S. Treasury and certificates.................
38 Other negotiable and readily transferable
instruments6 ....................................
39 Other ......................................................

4,790'
300

5,000'
422

5,382
533

5,475
566

5,781
675

5,815
771

5,828
764

5,463
594

2,425
2,065'

2,405
2,173'

2,573
2,276

2,559
2,350

2,559
2,547

2,462
2,582

2,491
2,574

2,593
2,277

14,736

16,020

18,526'

19,110'

19,033

17,748

18,971

4,304
7,546

12,990
4,242
8,353
394

14,890'
5,087'
8,755
1,048

15,171'
5,343'
8,992
836

14,828
5,219
8,827
781

14,193'
4,663
8,645'

14,305
4,880
8,576
849

15,383
5,839
8,568
977

3,030
285

3,636
382

3,939
446

4,205

3,928'
847

3,443
511

586

2,481
264

3,131
123

3,320
199

3,339
154

3,256

173'

2,752
180

10,906

11,395

11,236

2 Banks’ own liabilities .................................
3 Demand deposits ....................................
4 Time deposits1 ........................................
5 Other2 ....................................................
6 Own foreign offices3 ...............................
7 Banks’ custody liabilities4 ............................
8 U.S. Treasury bills and certificates5 .........
9 Other negotiable and readily transferable
instruments6 ....................................
10 Other ......................................................
11 Nonmonetary international and regional
organizations7 ......................................
12 Banks’ own liabilities .................................
13 Demand deposits ....................................
14 Time deposits1 ........................................
15 Other2 ....................................................
16 Banks’ custody liabilities4 ............................
17 U.S. Treasury bills and certificates..........
18 Other negotiable and readily transferable
instruments6 ....................................
19 Other ......................................................
20 Official institutions8 ....................................
21 Banks’ own liabilities .................................
22 Demand deposits ....................................
23 Time deposits1 ........................................
24 Other2 ....................................................
25 Banks’ custody liabilities4 ............................
26 U.S. Treasury bills and certificates5 .........
27 Other negotiable and readily transferable
instruments6 ....................................
28 Other ......................................................
29 Banks9 .......................................................
30 Banks’ own liabilities .................................
31 Unaffiliated foreign banks ......................
32
Demand deposits .................................
33
Time deposits1 ....................................
34
Other2 ................................................
35

40 Other foreigners ..........................................
41 Banks’ own liabilities .................................
42 Demand deposits ....................................
43 Time deposits .........................................
44 Other2 ....................................................
45 Banks’ custody liabilities4 ............................
46 U.S. Treasury bills and certificates..........
47 Other negotiable and readily transferable
instruments6 ....................................
48 Other ......................................................

5,714
290
205

2,701

54,956

10,933
2,040

119

12,814
4,015
6,524
198

49 Memo: Negotiable time certificates of deposit
in custody for foreigners......................
1. Excludes negotiable time certificates of deposit, which are included in “Other
negotiable and readily transferable instruments.” Data for time deposits before
April 1978 represent short-term only.
2. Includes borrowing under repurchase agreements.
3. U.S. banks: includes amounts due to own foreign branches and foreign sub­
sidiaries consolidated in “Consolidated Report of Condition” filed with bank reg­
ulatory agencies. Agencies, branches, and majority-owned subsidiaries of foreign
banks: principally amounts due to head office or parent foreign bank, and foreign
branches, agencies or wholly owned subsidiaries of head office or parent foreign
bank.
4. Financial claims on residents of the United States, other than long-term
securities, held by or through reporting banks.




14,746'
5,082'

111
111

11,670

11,685

11,773

5. Includes nonmarketable certificates of indebtedness and Treasury bills issued
to official institutions of foreign countries.
6. Principally bankers acceptances, commercial paper, and negotiable time cer­
tificates of deposit.
7. Principally the International Bank for Reconstruction and Development, and
the Inter-American and Asian Development Banks.
8. Foreign central banks and foreign central governments and the Bank for
International Settlements.
9. Excludes central banks, which are included in “Official institutions.”

A 60
3.16

International Statistics □ A ugust 1980
LIABILITIES TO FOREIGNERS Continued
1979
Area and country

1976

1977

1980

1978
Dec.

Jan.

Feb.

Mar.

Apr.

May

June?

1

110,657

126,168

166,796'

187,339'

184,844'

193,998'

185,977

180,552'

182,847

185,841

2 Foreign countries ................................................

104,943

122,893

164,190'

184,987'

183,617'

192,285'

184,218

178,584'

181,002

183,362

3 Europe ................................................................
4 Austria .............................................................
5 Belgium-Luxembourg ......................................
6 Denmark .........................................................
7 Finland .............................................................
8 France .............................................................
9 Germany .........................................................
10 Greece .............................................................
11 Italy ................................................................
12 Netherlands ......................................................
13 Norway ...........................................................
14 Portugal ...........................................................
15 Spain ..............................................................
16 Sweden.............................................................
17 Switzerland ......................................................
18 Turkey .............................................................
19 United Kingdom...............................................
20 Yugoslavia.......................................................
21 Other Western Europe1 ...................................
22 U.S.S.R.............................................................
23 Other Eastern Europe2 ....................................

47,076
346
2,187
356
416
4,876
6,241
403
3,182
3,003
782
239
559
1,692
9,460
166
10,018
189
2,673
51
236

60,295
318
2,531
770
323
5,269
7,239
603
6,857
2,869
944
273
619
2,712
12,343
130
14,125
232
1,804
98
236

85,159'
513
2,552
1,946
346
9,208
17,286
826
7,739
2,402
1,271
330
870
3,121
18,225'
157
14,265
254
3,440'
82
325

90,904'
413
2,375'
1,092
398
10,401
12,935
635
7,782
2,327
1,267
557
1,259
2,005
17,954'
120
24,694'
266
4,070
52
302

86,731'
378
2,109'
955
455
10,534
10,345
832
7,825
2,529
1,229
550
1,192
1,845
16,745'
232
25,083'
157
3,474
46
217

85,753'
379
2,407'
587
5444
11,247
8,960
627
7,394
2,485
1,156
438
1,146
1,978
16,950'
118
25,300'
149
3,455
41
390

85,278
335
2,365
613
484
11,004
8,618
618
7,399
2,377
1,500
314
1,242
1,692
15,625
138
26,810
115
3,693
37
300

82,806
444
2,369
615
522
11,303
5,320
617
7,429
2,022
1,391
537
1,418
1,847
14,859
136
27,187
122
4,301
33
334

82,656
352
2,795
588
435
10,839
5,427
610
6,942
2,128
1,221
339
1,386
1,632
14,517
136
27,247
144
5,521
40
354

82,908
383
4,097
553
438
11,199
6,951
626
5,778
2,676
1,282
390
1,364
1,998
14,734
153
24,164
254
5,453
49
366

24 Canada ................................................................

4,659

4,607

6,969

7,379

9,541

9,556

8,507

8,048

8,201

8,868

25 Latin America and Caribbean .............................
26 Argentina .......................................................
27 Bahamas .........................................................
28 Bermuda .........................................................
29 Brazil ..............................................................
30 British West Indies ..........................................
31 Chile ................................................................
32 Colombia .........................................................
33 C uba................................................................
34 Ecuador ...........................................................
35 Guatemala3 ......................................................
36 Jamaica3 ...........................................................
37 Mexico .............................................................
38 Netherlands Antilles ........................................
39 Panama ...........................................................
40 Peru ................................................................
41 Uruguay ...........................................................
42 Venezuela .......................................................
43 Other Latin America and Carribbean ..............

19,132
1,534
2,770
218
1,438
1,877
337
1,021
6
320

23,670
1,416
3,596
321
1,396
3,998
360
1,221
6
330

2,870
158
1,167
257
245
3,118
1,797

2,876
196
2,331
287
243
2,929
2,167

31,606
1,484
6,752
428
1,125
5,991
399
1,756
13
322
416
52
3,417
308
2,968
363
231
3,821
1760

49,633'
1,582
15,354'
430
1,005
11,074'
469
2,617
13
425
414
76
4,096
499
4,483
383
202
4,192
2,318

50,843'
1,635
16,629'
447
1,405
11,908
396
2,882
10
386
394
96
3,980
344
4,770
376
216
3,083
1,886

57,933'
1,632
22,288'
560
1,156
12,958'
471
2,840
5
412
391
90
3,973
524
4,663'
388
210
3,518
1,856'

51,583
1,582
16,352
534
1,367
11,812
445
2,825
6
459
426
97
4,001
419
4,418
363
240
4,075
2,161

48,874'
1,679
14,454
479
1,645
11,585
444
2,905
23
357
403
132
4,302
411
4,505
392
216
3,104'
1,837

48,953
1,903
16,535
512
1,527
9,571
416
2,780
7
337
350
138
4,111
335
4,082
412
208
3,953
1,775

46,939
1,705
13,034
576
1,445
10,216
450
2,854
6
455
360
91
3,918
250
4,173
346
232
4,688
2,140

44 Asia ...................................................................
China
Mainland ......................................................
45
46
Taiwan .........................................................
47 Hong Kong ......................................................
48 India ................................................................
49 Indonesia .........................................................
50 Israel ..............................................................
51 Japan ..............................................................
52 Korea ..............................................................
53 Philippines .......................................................
54 Thailand...........................................................
55 Middle-East oil-exporting countries4 ................
56 Other Asia ......................................................

29,766

30,488

36,492'

32,928'

32,056'

34,510'

34,222

33,519

35,984

39,660

48
990
894
638
340
392
14,363
438
628
277
9,360
1,398

53
1,013
1,094
961
410
559
14,616
602
687
264
8,979
1,250

67
502
1,256
790
449
688
21,927
795
644
427
7,534'
1,414

49
1,393
1,672
527
504
707
8,907'
993
800
277'
15,217'
1,881'

46
1,386
1,694
544
743
517
9,434'
959
729
408
14,089'
1,506

32
1,567
1,776
579
693
507'
10,663'
1,019
772
284
14,992
1,625'

34
1,888
1,897
558
658
759
9,651
1,069
669
414
15,686
1,638

35
1,076
1,857
576
935
560'
9,383'
1,008
789
407
15,189
1,704

30
1,632
1,708
740
670
570
10,792
988
885
472
15,724
1,771

44
1,534
2,256
633
807
579
12,712
1,087
883
405
16,711
2,010

57 Africa ..................................................................
58 Egypt ..............................................................
59 Morocco...........................................................
60 South Africa ....................................................
61 Zaire................................................................
62 Oil-exporting countries5 ...................................
63 Other Africa....................................................

2,298
333
87
141
36
1,116
585

2,535
404
66
174
39
1,155
698

2,886
404
32
168
43
1,525
715

3,239
475
33
184
110
1,635
804

3,332'
449
50
270'
128
1,503
932

3,170
332
33
195
93
1,665
852

3,325
318
31
313
102
1,660
901

4,203
438
41
294
84
2,462
885

3,810
376
31
316
86
2,231
768

3,708
346
35
325
107
2,100
796

64 Other countries ..................................................
65 Australia .........................................................
66 All other .........................................................

2,012
1,905
107

1,297
1,140
158

1076
838
239

904
684
220

1,114
853
261

1,363
1,054
309

1,304
992
312

1,133
881
252

1,397
1,150
247

1,279
1,008
271

67 Nonmonetary international and regional
organizations ................................................
68 International ....................................................
69 Latin American regional...................................
70 Other regional6 ................................................

5,714
5,157
267
290

3,274
2,752
278
245

2,607
1,485
808
314

2,351'
1,238'
806'
308

1,227
829'
84'
314

1,712
618
780
315

1,758
652
746
361

1,968'
863'
813
292

1,845
766
790
289

2,479
1,375
802
302

1. Includes the Bank for International Settlements. Beginning April 1978, also
includes Eastern European countries not listed in line 23.
2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German Dem­
ocratic Republic, Hungary, Poland, and Romania.
3. Included in “Other Latin America and Caribbean” through March 1978.




4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
5. Comprises Algeria, Gabon, Libya, and Nigeria.
6. Asian, African, Middle Eastern, and European regional organizations, except
the Bank for International Settlements, which is included in “Other Western
Europe.”

Bank-Reported Data

A61

3.17 BANKS’ OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in U.S. Dollars
Millions of dollars, end of period
1979
Area and country

1976

1977

1980

1978
Dec.

Jan.

Feb.

Mar.

Apr.

May

June/*

1 Total ....................................................................

79,301

90,206

115,479'

133,762'

127,614'

131,088'

130,775

133,331'

139,504

148,331

2 Foreign countries .................................................

79,261

90,163

115,423'

133,730'

127,579'

131,055'

130,739

133,298'

139,471

148,298

3 Europe ................................................................
4 Austria .............................................................
5 Belgium-Luxembourg ......................................
6 Denmark .........................................................
7 Finland .............................................................
8 France .............................................................
9 Germany .........................................................
10 Greece .............................................................
11 Italy ................................................................
12 Netherlands ......................................................
13 Norway ...........................................................
14 Portugal ...........................................................
15 Spain ..............................................................
16 Sweden.............................................................
17 Switzerland ......................................................
18 Turkey .............................................................
19 United Kingdom...............................................
20 Yugoslavia ........................................................
21 Other Western Europe1 ...................................
22 U.S.S.R.............................................................
23 Other Eastern Europe2 ....................................

14,776
63
482
133
199
1,549
509
279
993
315
136
88
745
206
379
249
7,033
234
85
485
613

18,114
65
561
173
172
2,082
644
206
1,134
338
162
175
722
218
564
360
8,964
311
86
413
566

24,232'
140
1,200'
254
305
3,735
845
164
1,523
677
299
171
1,120'
537
1,283
300
10,172
363
122
366
657

28,389'
284
1,339'
147
202
3,302
1,159
154
1,631'
514
276
330
1,051
542
1,166'
149
13,789
611
175
290
1,277

24,906'
258
1,416
126
262
3,086
921
136
1,390'
472
177
288
948
747
939'
128
11,370'
569
203
263
1,205

25,592'
315
1,524
156
237
3,197
1,209
141
1,407'
610
175
213
1,015
702
1,363'
131
10,886'
565
227
265
1,254'

25,810
331
1,631
207
188
2,984
1,308
191
1,488
535
254
227
914
593
1,356
123
10,950
598
225
253
1,453

24,525'
337'
1,590'
203
223
2,811
1,153'
244
1,462'
480'
170
247
1,020
618
826'
132
10,462
593
330
257
1,366

26,157
291
1,471
168
273
2,740
1,104
329
1,748
457
172
246
1,106
661
916
151
11,803
614
266
247
1,394

29,811
306
1,987
167
306
2,689
1,132
346
1,938
591
218
300
1,195
683
1,247
143
13,973
656
208
291
1,433

24 Canada ................................................................

3,319

3,355

5,152

4,143'

4,023'

4,142

4,186

3,923'

4,283

5,017

25 Latin America and Caribbean.............................
26 Argentina ........................................................
27 Bahamas .........................................................
28 Bermuda .........................................................
29 Brazil ..............................................................
30 British West Indies ..........................................
31 Chile ................................................................
32 Colombia .........................................................
33 C uba................................................................
34 Ecuador ...........................................................
35 Guatemala3 ......................................................
36 Jamaica3 ...........................................................
37 Mexico .............................................................
38 Netherlands Antilles ........................................
39 Panama ..........................................................
40 Peru ................................................................
41 Uruguay ...........................................................
42 Venezuela ........................................................
43 Other Latin America and Caribbean................

38,879
1,192
15,464
150
4,901
5,082
597
675
13
375

45,850
1,478
19,858
232
4,629
6,481
675
671
10
517

4,822
140
1,372
933
42
1,828
1,293

4,909
224
1,410
962
80
2,318
1,394

57,443'
2,281
21,428'
184
6,251
9,692
972
1,012
0
705
94
40
5,479'
273
3,098'
918
52
3,474
1,490'

67,925'
4,417'
18,828'
496
7,731'
9,762
1,442'
1,614
4
1,025
134
47
9,095'
248
6,031'
652
105
4,695'
1,598

65,600'
4,683
20,743'
434
7,555
7,819'
1,376
1,655
4
1,001
114
51
8,957'
325
4,432
585
100
4,246'
1,518

66,251'
4,899
19,214'
314
7,618
10,136
1,430
1,698
4
1,025
105
44
9,021'
397
3,919
634
82
4,196'
1,515

65,152
4,969
19,262
313
8,010
7,364
1,367
1,526
4
1,023
109
42
9,231
513
4,652
701
90
4,457
1,520

68,257'
4,992
21,045
321
8,112
8,584
1,334'
1,539
5
1,011
108
43
9,191
663
4,643'
654
84
4,231'
1,696'

71,476
5,117
23,177
296
8,064
8,985
1,355
1,408
4
1,007
107
43
9,724
696
4,538
628
154
4,528
1,646

73,583
5,190
24,940
198
8,317
8,534
1,323
1,426
4
1,053
120
36
10,045
825
4,939
695
102
4,274
1,562

44 Asia ....................................................................
China
45
Mainland ......................................................
46
Taiwan .........................................................
47 Hong Kong ......................................................
48 India ................................................................
49 Indonesia .........................................................
50 Israel ..............................................................
51 Japan ..............................................................
52 Korea ..............................................................
53 Philippines ........................................................
54 Thailand...........................................................
55 Middle East oil-exporting countries4 ...............
56 Other Asia ......................................................

19,204

19,236

25,386'

30,625'

30,173'

32,337

32,827

33,912'

34,902

36,815

3
1,344
316
69
218
755
11,040
1,978
719
442
1,459
863

10
1,719
543
53
232
584
9,839
2,336
594
633
1,746
947

4
1,499
1,479'
54
143
888
12,671'
2,282
680
758
3,125'
1,804

35
1,821
1,804
92
131
990
16,921'
3,796
737
935
1,548'
1,813

28
1,700
1,804
136
117
812
17,027
4,080
649
971
1,400'
1,448

51
1,691
2,127
90
128
787
18,899
4,356
645
993
1,211
1,359

49
1,524
1,888
120
132
734
19,433
4,726
696
877
1,437
1,211

48
1,626'
2,001
87
166
829
20,311'
4,853
693
857
1,178'
1,263

40
1,889
2,362
61
128
828
20,394
5,057
717
918
978
1,530

75
2,113
2,279
81
154
1,023
21,256
5,333
780
918
1,257
1,546

57 Africa ..................................................................
58 Egypt ..............................................................
59 Morocco...........................................................
60 South Africa ....................................................
61 Zaire................................................................
62 Oil-exporting countries5 ...................................
63 Other ..............................................................

2,311
126
27
957
112
524
565

2,518
119
43
1,066
98
510
682

2,221
107
82
860
164
452
556

1,795'
112
103
445
144'
391
600'

1,899
130
106
412
146
507
599

1,775
154
109
342
144
451
574

1,729
128
118
337
143
353
649

1,800
135
128
362
143'
443
588

1,770
134
107
465
108
325
632

2,029
93
121
617
107
364
727

64 Other countries ..................................................
65 Australia .........................................................
66 All other .........................................................

772
597
175

1,090
905
186

988
877
111

855'
673
182'

978
803
175

958
789
170

1,035
803
232

880
713
167

883
695
187

1,044
847
196

67 Nonmonetary international and regional
organizations6 ...............................................

40

43

56

32

35

33

36

33

34

33

1. Includes the Bank for International Settlements. Beginning April 1978, also
includes Eastern European countries not listed in line 23.
2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German Dem­
ocratic Republic, Hungary, Poland, and Romania.
3. Included in “Other Latin America and Caribbean” through March 1978.
4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).




5. Comprises Algeria, Gabon, Libya, and Nigeria.
6. Excludes the Bank for International Settlements, which is included in “Other
Western Europe.”
N ote . Data for period prior to April
customers on foreigners.

1978

include claims of banks’ domestic

A62

International Statistics □ A ugust 1980

3.18 BANKS’ OWN AND DOMESTIC CUSTOMERS’ CLAIMS ON FOREIGNERS Reported by Banks in the
United States
Payable in U.S. Dollars
Millions of dollars, end of period

1980

1979

Type of claim
Feb.

127,614'
14,932'
46,414'
36,281'
4,933'
31,349'
29,986'

131,088'
15,052'
47,003'
39,018'
5,153'
33,864'
30,015'

Mar.

126,698'

153,710'

2
3
4
5
6
7
8

Banks’ own claims on foreigners......................
Foreign public borrowers .................................
Own foreign offices1 ........................................
Unaffiliated foreign banks ...............................
Deposits ........................................................
Other ...........................................................
All other foreigners..........................................

115,479'
10,263'
41,502'
40,538'
5,480'
35,058'
23,176'

133,762'
15,434'
47,305'
41,016'
6,253'
34,762'
30,007'

9
10
11
12

Claims of banks’ domestic customers2 ..............
Deposits...........................................................
Negotiable and readily transferable instruments3
Outstanding collections and other claims4 .........

11,219
480
5,385
5,353

19,948
955
12,974
6,019

22,372
1,208
14,559
6,605

13

M emo :

14,969'

18,044'

20,095

12,924

21,259

1 Total ...................................................................................

79,301

Jan.

5,756

6,176

Customer liability on acceptances.........

Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United
States5 .......................................................

May

June/7

133,331'
15,151'
46,163
40,990'
6,093'
34,897'
31,027'

139,504
15,090
49,940
42,838
6,486
36,353
31,635

148,331
15,817
55,900
43,621
6,518
37,102
32,994

24,131

24,905

153,147

23,900

130,775
15,428
45,248
39,692'
5,479
34,213
30,407

25,509

24,874

4. Data for March 1978 and for period prior to that are outstanding collections
only.
5. Includes demand and time deposits and negotiable and nonnegotiable certif­
icates of deposit denominated in U.S. dollars issued by banks abroad. For de­
scription of changes in data reported by nonbanks, see July 1979 B ulletin , p. 550.

1. U.S. banks: includes amounts due from own foreign branches and foreign
subsidiaries consolidated in “Consolidated Report of Condition” filed with bank
regulatory agencies. Agencies, branches, and majority-owned subsidiaries of foreign
banks: principally amounts due from head office or parent foreign bank, and
foreign branches, agencies, or wholly owned subsidiaries of head office or parent
foreign bank.
2. Assets owned by customers of the reporting bank located in the United States
that represent claims on foreigners held by reporting banks for the account of their
domestic customers.
3. Principally negotiable time certificates of deposit and bankers acceptances.

3.19

Apr.

N ote : Beginning April 1978, data for banks’ own claims are given on a monthly
basis, but the data for claims of banks’ own domestic customers are available on
a quarterly basis only.

BANKS’ OWN CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Banks in the United States
Payable in U.S. Dollars
Millions of dollars, end of period
1979

1978

1980

Maturity; by borrower and area
Sept.
1 Total...........................................................................................
By borrower

2 Maturity of 1 year or less1 ...........................................................
3 Foreign public borrowers.........................................................
4 All other foreigners..................................................................
5 Maturity of over 1 year1 ..............................................................
6 Foreign public borrowers .........................................................
7 All other foreigners..................................................................

Dec.

Mar.

June

Sept.

Dec.

Mar.

60,105r

73,773'

71,638'

77,738'

87,571'

86,209'

85,265

47,239'
3,711
43,528'
12,866'
4,245'
8,620'

58,481'
4,583
53,898'
15,291'
5,361'
9,930'

55,459'
4,627
50,832'
16,179
5,948'
10,231'

60,069'
4,604
55,465'
17,669'
6,433'
11,236'

68,390'
6,062'
62,329'
19,181'
7,652'
11,529'

65,195'
7,033'
58,162'
21,014'
8,103'
12,911'

63,901
6,843
57,058
21,364
8,419
12,945

10,518'
1,953
18,632'
14,010
1,535
591

15,176'
2,670
20,990'
17,579
1,496
569

12,396'
2,514
21,724'
16,992
1,290
541

14,028'
2,703
23,144'
18,191
1,438
565

16,794'
2,471
25,687'
21,515'
1,399
524

15,209'
1,777'
24,964'
21,673'
1,078
493

13,850
1,818
23,177
23,386
1,043
627

3,102
794
6,877
1,303
580
211

3,142
1,426
8,466'
1,407
637
214

3,103
1,456
9,325
1,486
629
180

3,488'
1,221
10,279'
1,884'
614
183

3,658'
1,364
11,771'
1,578'
623
188

4,145'
1,317'
12,821'
1,911'
652
169

4,253
1,214
13,397
1,729
620
152

By area

8
9
10
11
12
13
14
15
16
17
18
19

Maturity of 1 year or less1
Europe.....................................................................................
Canada .....................................................................................
Latin America and Caribbean..................................................
Asia ........................................................................................
Africa......................................................................................
All other2 ...............................................................................
Maturity of over 1 year1
Europe .....................................................................................
Canada.....................................................................................
Latin America and Caribbean..................................................
Asia ........................................................................................
Africa......................................................................................
All other2 ...............................................................................

1. Remaining time to maturity.
2. Includes nonmonetary international and regional organizations.




Bank-Reported Data
3.20

A63

CLAIMS ON FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks1
Billions of dollars, end of period
1978
Area or country

1

1976

1979

1980

1977
Mar.

June2

Sept.

Dec.

Mar.

June

Sept.

Dec.

Mari’

206.8

240.0'

244.7

247.1

247.6

266.4'

263.8

275.5'

293.8'

303.6'

307.7

2 G-10 countries and Switzerland ...............................................
3 Belgium-Luxembourg ...........................................................
4 France .................................................................................
5 Germany ..............................................................................
6 Italy .....................................................................................
7 Netherlands...........................................................................
8 Sweden ................................................................................
9 Switzerland ...........................................................................
10 United Kingdom ..................................................................
11 Canada .................................................................................
12 Japan ...................................................................................

100.3
6.1
10.0
8.7
5.8
2.8
1.2
3.0
41.7
5.1
15.9

116.4
8.4
11.0
9.6
6.5
3.5
1.9
3.6
46.5
6.4
18.8

116.9
8.3
11.4
9.0
6.0
3.4
2.0
4.0
46.7
7.0
19.1

112.6'
8.3
11.4
9.1
6.4
3.4
2.1
4.1
44.9'
5.1
17.9

113.5'
8.4
11.7
9.7
6.1
3.5
2.2
4.3
44.2'
4.9'
18.5'

124.8'
9.0
12.2
11.3'
6.7'
4.4
2.1
5.4
47.3
6.0
20.6

119.0'
9.4
11.7
10.5
5.7
3.9
2.0
4.5
46.4'
5.9
19.0

125.3
9.7
12.7
10.8
6.1
4.0
2.0
4.8
50.3'
5.5
19.6'

135.8
10.7
12.0
12.8'
6.1
4.7
2.3
5.0
53.7'
6.0
22.4'

138.1'
11.1
11.6
12.2'
6.3
4.8
2.4
4.8
56.0'
6.5'
22.4

140.5
10.8
12.0
11.4
6.2
4.3
2.4
4.4
57.4
6.8
25.0

13 Other developed countries.......................................................
14 Austria.................................................................................
15 Denmark ..............................................................................
16 Finland.................................................................................
17 Greece ..................................................................................
18 Norway ................................................................................
19 Portugal ................................................................................
20 Spain ...................................................................................
21 Turkey .................................................................................
22 Other Western Europe.........................................................
23 South Africa.........................................................................
24 Australia ..............................................................................

15.0
1.2
1.0
1.1
1.7
1.5
.4
2.8
1.3
.7
2.2
1.2

18.6
1.3
1.6
1.2
2.2
1.9
.6
3.6
1.5
.9
2.4
1.4

19.7
1.5
1.8
1.2
2.1
1.9
.7
3.6
1.4
1.5
2.5
1.5

19.4
1.5
1.7
1.1
2.3
2.1
.6
3.6
1.4
1.2
2.4
1.4

18.6
1.5
1.9
1.0
2.2
2.1
.5
3.5
1.5
.9
2.2
1.3

19.4
1.7
2.0
1.2
2.3
2.1
.6
3.4
1.5
1.3
2.0
1.4

18.2
1.7
2.0
1.2
2.3
2.1
.6
3.0
1.4
1.1
1.7
1.3

18.2
1.8
1.9
1.1
2.2
2.1
.5
3.0
1.4
.9'
1.8
1.4

19.7
2.0
2.0
1.2
2.3
2.3
.7
3.3
1.4
1.3'
1.7
1.3

19.9
2.0
2.2
1.2
2.4
2.3
.7
3.5
1.4
1.4
1.3
1.3

18.8
1.7
2.2
1.1
2.4
2.4
.6
3.5
1.4
1.4
1.1
1.1

25 Oil-exporting countries3 ...........................................................
26 Ecuador ................................................................................
27 Venezuela ............................................................................
28 Indonesia..............................................................................
29 Middle East countries...........................................................
30 African countries ..................................................................

12.6
.7
4.1
2.2
4.2
1.4

17.6
1.1
5.5
2.2
6.9
1.9

19.2
1.3
5.5
2.1
8.3
2.0

19.2
1.4
5.6
1.9
8.4
1.9

20.4
1.6
6.2
1.9
8.7
2.0

22.7
1.6
7.2
2.0
9.5
2.5

22.6
1.5
7.2
1.9
9.4
2.6

22.7
1.6
7.6
1.9
9.0
2.6

23.4
1.6
7.9
1.9
9.2
2.8

22.9'
1.7
8.7
1.9
8.0
2.6

21.9
1.8
7.9
1.9
7.8
2.5

31 Non-oil developing countries....................................................

44.2

48.7

49.7

49.1

49.6

52.5

53.8

55.8'

58.7'

62.7'

64.0

1.9
11.1
.8
1.3
11.7
1.8
2.8

2.9
12.7
.9
1.3
11.9
1.9
2.6

3.0
13.0
1.1
1.2
11.2
1.7
3.4

3.0
13.3
1.3
1.3
11.0
1.8
3.3

2.9
14.0
1.3
1.3
10.7
1.8
3.4

3.0
14.9
1.6
1.4
10.7'
1.7
3.6

3.1
14.9
1.7
1.5
10.9
1.6
3.5

3.5
15.1
1.8
1.5
10.7'
1.4
3.3

4.1
15.1
2.2
1.7
11.3'
1.4
3.6

5.1
15.3
2.5
2.2
11.9'
1.5
3.7

5.6
15.1
2.5
2.2
12.2
1.2
3.7

.0
2.4
.2
1.0
3.1
.5
2.2
.7
.5

.0
3.1
.3
.9
3.9
.7
2.5
1.1
.4

.0
3.1
.3
.8
3.6
.7
2.6
1.1
.4

.0
2.5
.2
.7
3.6
.6
2.7
1.1
.3

.0
2.4
.3
.7
3.5
.6
2.8
1.1
.3

.0
2.9
.2
1.0
3.9
.6
2.8
1.2
.2

.1
3.1
.2
1.0
4.2
.6
3.2
1.2
.3

.1
3.3
.2
.9
5.0
.7
3.7
1.4
.4

.1
3.5
.2
1.0
5.3
.7
3.7
1.6
.3

.1
3.4'
.2
1.3
5.5
.9
4.2'
1.6
.4

.1
3.6
.2
.9
6.4
.8
4.4
1.4
.4

Egypt ...................................................................................
Morocco ..............................................................................
Zaire ...................................................................................
Other Africa5 .......................................................................

.4
.3
.2
1.2

.3
.5
.3
.7

.3
.4
.3
1.4

.3
.5
.2
1.2

.4
.5
.2
1.3

.4
.6
.2
1.4

.5
.6
.2
1.4

.7
.5
.2
1.5

.6
.5
.2
1.6

.6
.6
.2
1.7

.7
.5
.2
1.8

52 Eastern Europe .......................................................................
53 U.S.S.R..................................................................................
54 Yugoslavia............................................................................
55 Other ...................................................................................

5.2
1.5
.8
2.9

6.3
1.6
1.1
3.7

6.3
1.4
1.2
3.7

6.4
1.4
1.3
3.7

6.6
1.4
1.3
3.9

6.9
1.3
1.5
4.1

6.7
1.1
1.6
4.0

6.7
.9
1.7
4.1

7.2
.9
1.8
4.6

7.6'
1.0
1.8
4.8'

7.3
.6
1.9
4.9

56 Offshore banking centers.........................................................
57 Bahamas ..............................................................................
58 Bermuda ..............................................................................
59 Cayman Islands and other British West Indies .....................
60 Netherlands Antilles .............................................................
61 Panama6 ..............................................................................
62 Lebanon ..............................................................................
63 Hong Kong...........................................................................
64 Singapore ............................................................................
65 Others7 ................................................................................

24.7
10.1
.5
3.8
.6
3.0
.1
2.2
4.4
.0

26.1
9.8
.6
3.8
.7
3.1
.2
3.7
3.7
.5

28.8
11.3
.6
4.6
.7
3.1
.2
4.1
3.9
.3

32.4'
12.1'
.7
7.2'
.6
3.3
.1
4.1
3.8
.5

30.2'
11.6'
.7
6.8'
.6
3.1
.1
4.0
2.9
.5

31.1'
10.3'
.7
7.4'
.8
3.0
.1
4.4'
3.9
.5

33.7'
12.1'
.6
7.2'
.8
3.4
.1
4.8
4.2
.4

36.9'
14.3'
.7
7.5'
1.0
3.8'
.1
4.9
4.2
.4

38.5'
12.9'
.7
9.5'
1.1
3.4'
.2
5.5
4.9
.4

40.4'
13.5
.8'
9.5
1.2
4.3'
.2
6.0
4.5
.4

42.2
13.6
.6
11.2
.9
4.9
.2
5.7
4.7
.4

66 Miscellaneous and unallocated8 ................................................

5.0

5.3

5.9

8.1

8.6

9.1

9.5

9.9

10.6

11.7'

13.1

32
33
34
35
36
37
38

Latin America

Argentina ............................................................................
Brazil ...................................................................................
Chile.....................................................................................
Colombia..............................................................................
Mexico ..................................................................................
Peru .....................................................................................
Other Latin America ...........................................................
Asia

39
40
41
42
43
44
45
46
47
48
49
50
51

China
Mainland ...........................................................................
Taiwan ..............................................................................
India.....................................................................................
Israel ...................................................................................
Korea (South) .....................................................................
Malaysia4 ..............................................................................
Philippines............................................................................
Thailand ..............................................................................
Other Asia ...........................................................................
Africa

1. The banking offices covered by these data are the U.S. offices and foreign
branches of U.S.-owned banks and of U.S. subsidiaries of foreign-owned banks.
Offices not covered include (1) U.S. agencies and branches of foreign banks, and
(2) foreign subsidiaries of U.S. banks. To minimize duplication, the data are
adjusted to exclude the claims on foreign branches held by a U.S. office or another
foreign branch of the same banking institution. The data in this table combine
foreign branch claims in table 3.13 (the sum of lines 7 through 10) with the claims
of U.S. offices in table 3.17 (excluding those held by agencies and branches of
foreign banks and those constituting claims on own foreign branches). However,
see also footnote 2.
2. For June 1978 and subsequent dates, the claims of the U.S. offices




in this table include only banks’ own claims payable in dollars. For earlier dates
the claims of the U.S. offices also include customer claims and foreign currency
claims (amounting in June 1978 to $10 billion).
3. Includes Algeria, Bahrain, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Oman,
Qatar, Saudi Arabia, and United Arab Emirates in addition to countries shown
individually.
4. Foreign branch claims only through December 1976.
5. Excludes Liberia.
6. Includes Canal Zone beginning December 1979.
7. Foreign branch claims only.
8. Includes New Zealand, Liberia, and international and regional organizations.

A 64

International Statistics □ A ugust 1980

3.21 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Holdings and Transactions
Millions of dollars

Country or area

1978

1979

Jan.JuneP

Dec.

Jan.

Feb.

Mar.

Apr.

May

Holdings (end of period)1

10 Other Western Europe ....................................
11 Eastern Europe ...............................................
12 Canada ................................................................

44,938

50,307'

50,307'

52,831'

53,202'

52,997'

52,091'

51,371

53,131

39,817

44,875

44,875

46,780'

46,557'

46,534'

46,430'

46,907

48,727

17,072
19
8,705
1,358
285
977
5,373
354

23,705
60
12,937
1,466
647
1,868
6,236
491

23,705
60
12,937
1,466
647
1,868
6,236
491

25,353'
60
14,081
1,407
640
1,894
6,757'
514

24,902'
55
13,797
1,414
636
1,564
6,923'
512

24,611'
27
13,489
1,453
633
1,534
6,995'
478

24,008'
28
13,207'
1,473
642
1,528
6,603'
527

24,075
28
13,225
1,412
653
1,574
6,665
519

24,377
28
12,976
1,437
647
1,731
7,001
556

152

232

232

231

389

394

381

385

423

13 Latin America and Caribbean.............................
14 Venezuela ........................................................
15 Other Latin American and Caribbean..............
16 Netherlands Antilles ........................................
17 Asia ....................................................................
18 Japan ..............................................................
19 Africa ..................................................................
20 All other ...........................................................

416
144
110
162
21,488
11,528
691
-3

546
183
200
163
19,804
11,175
591
-3

546
183
200
163
19,804
11,175
591
-3

546
183
200
163
20,061
10,844
591
-3

547
183
201
164
20,130
10,420
591
-3

552
183
206
164
20,390
9,631
591
-3

581
183
199
199
20,872
9,533
593
-6

592
183
209
200
21,269
9,543
593
-7

696
280
215
200
22,751
9,545
492
-11

21 Nonmonetary international and regional
organizations .................................................

5,121

5,432'

5,432'

6,051

6,645'

6,463

5,661

4,464

4,404

22
23

5,089
33

5,388
40

5,388
40

6,016
35

6,592
53

6,407
53

5,606
53

4,401
63

4,338
63

International ....................................................
Latin American regional...................................

Transactions (net purchases, or sales (--), during period)
24 Total2 ..................................................................

6,297

5,368

2,824

527

2,527'

371

-207

-906'

-717

1,757

25 Foreign countries2 ...............................................
26 Official institutions...........................................
27 Other foreign2 ..................................................

5,921
3,729'
2,193'

5,059
1,776'
3,284'

3,852
2,152
1,699

600
547
53

1,904'
483'
1,421'

-223
-264
41

-22
-103
79

-105'
-67
-37'

478
386
92

1,820
1,717
103

28 Nonmonetary international and regional
organizations .................................................

375

311

-1,027

-73

624

594

-185

-802

-1,195

-63

Oil-exporting countries
29 Middle East3 .......................................................
30 Africa4 ................................................................

-1,785
329

-1,015
-100

4,424
-100

168

550

500

1,014

471

462

1,427
-100

M emo :

2. Beginning December 1978, includes U.S. Treasury notes publicly issued to
private foreign residents denominated in foreign currencies.
3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
4. Comprises Algeria, Gabon, Libya, and Nigeria.

1. Estimated official and private holdings of marketable U.S. Treasury securities
with an original maturity of more than 1 year. Data are based on a benchmark
survey of holdings as of Jan. 31, 1971, and monthly transactions reports. Excludes
nonmarketable U.S. Treasury bonds and notes held by official institutions of for­
eign countries.

3.22

FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS
Millions of dollars, end of period
1980
Assets

1977

1978

1979
Jan.

1 Deposits..............................................................
Assets held in custody

2 U.S. Treasury securities1 ....................................
3 Earmarked gold2 ................................................

Mar.

Apr.

May

June

July/7

424

367

429

439

450

468

618

380

691

436

91,962
15,988

117,126
15,463

95,075
15,169

97,116
15,138

96,200
15,109

89,290
15,087

85,717
15,057

88,489
15,037

93,661
15,034

95,525
15,034

1. Marketable U.S. Treasury bills, 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 international and
regional organizations. Earmarked gold is gold held for foreign and international
accounts and is not included in the gold stock of the United States,

Investment Transactions

A65

3.23 FOREIGN TRANSACTIONS IN SECURITIES
Millions of dollars

Transactions, and area or country

1978

1979

1980

1979

Jan.June/7

Dec.

1980
Jan.

Feb.

Mar.

Apr.

May

June/7

U.S. corporate securities
Stocks
1 Foreign purchases ...............................................
2 Foreign sales .......................................................

20,145'
17.723

22.643'
21,017'

16,803
14,241

2,376'
2,202'

3,128'
2.439'

4,477'
3,355'

2,724
2,380

1,985
1,719

1,940
1,958

2,550
2,390

3 Net purchases, or sales ( - ) .................................

2,423'

1,627'

2,563

173'

689'

1,121'

344

266

-17

160

4 Foreign countries ................................................

2,469'

1,610'

2,558

169'

688'

1,124'

342

263

-19

162

1,283
47
620
-22
-585
1,230
74
151
781
189'
-13
3

217'
122
-221
-71
-519
964
552'
-19'
656
211'
-14
7

1,870
200
73
-134
382
1,285
349
106
206
23
- 1
6

75
8
-10
-25
-68
155
44'
40
32
-21
-3
2

506
71
35
8
153
215
42
92
15
30
0
2

856'
133
52'
-41
375
333'
130'
34'
50
58
-1
-3

156
-49
-25
-6
-36
277
130
-49
97
8
2
-2

129
14
3
-30
-75
194
66
6
145
-81
0
-2

105
23
14
-40
-17
106
-42
-4
-60
-21
0
3

118
9
-5
-25
-19
160
24
27
-42
28
-2
8

17

4

4

1

-2

2

3

2

-2

8,826'
7,575'

7,992
5.486

963'
546'

1,149
548'

934
594

1,237
838

1,654
1,137

1,280
1,217

1,737
1,152

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

Europe ................................................................
France ............................................................
Germany .........................................................
Netherlands ......................................................
Switzerland ......................................................
United Kingdom...............................................
Canada ................................................................
Latin America and Caribbean .............................
Middle East1 .......................................................
Other Asia .........................................................
Africa ..................................................................
Other countries ..................................................

17 Nonmonetary international and regional
organizations ................................................

-46

Bonds2
18 Foreign purchases ...............................................
19 Foreign sales .......................................................

7,975
5,681'

20 Net purchases, or sales ( - ) .................................

2,294'

1,251'

2,507

417'

601'

340

399

518

63

586

21 Foreign countries ................................................

1,885'

1,351'

2,538

431'

469'

275

407

568

289

529

22
23
24
25
26
27
28
29
30
31
32
33

Europe ................................................................
France .............................................................
Germany .........................................................
Netherlands ......................................................
Switzerland ......................................................
United Kingdom...............................................
Canada ................................................................
Latin America and Caribbean.............................
Middle East1 .......................................................
Other Asia .........................................................
Africa ..................................................................
Other countries ..................................................

744'
30
6'
12
-202'
930
102
98
810
131
-1
1

639'
11
72'
-202
-118'
814'
89'
109'
424
88'
1
1

996
90
207
-56
96
643
77
97
1.324
28
4
12

33
1
2
-20
7
36
-16
15
406
-6 '
0
0

151'
8
-5
-3
6
195
25
14
280
-1 '
0
0

42
1
6
-30
8
71
28
10
181
3
2
8

315
15
11
0
3
265
8
9
79
-4
0
0

251
7
104
-14
79
36
2
13
295
7
0
0

132
47
104
-14
11
-34
9
25
104
17
1
0

105
12
-14
6
-10
110
5
27
383
5
0
4

34 Nonmonetary international and regional
organizations ................................................

409

-101'

-31

-14

132

65

-8

-50

-226

57

Foreign securities
35 Stocks, net purchases, or sales ( - ) .....................
36 Foreign purchases ...........................................
37 Foreign sales ....................................................

527
3,666
3,139

-786
4,615
5,401

-1,086
3,439
4,525

-130
406
536

-233
625'
858

-425'
805'
1,230

-2
665
667

-40
402
442

-241
450
691

-146
491
637

38 Bonds, net purchases, or sales ( - ) .....................
39 Foreign purchases ...........................................
40 Foreign sales ....................................................

-4,054'
11,043
15,096'

-3,970'
12,375'
16,345'

-1,072
8,014
9,086

-320'
1,124
1,444'

-48'
1,264'
1,313'

-74'
1,379
1,453'

17
1,181
1,164

- 12
1,072
1,084

-251
1,479
1,730

-704
1,638
2,342

41 Net purchases, or sales ( —), of stocks and bonds . .

-3,527'

-4,756'

-2,158

-451'

-281'

-499'

15

-52

-491

-849

42
43
44
45
46
47
48

-3,340'
-65'
-3,238
201
349'
-441
-146

-4,006'
-1,640'
-2,609'
348'
- 108'
-23'
25

-2,330
-734
-1,442
171
-361
7
28

-588'
-282
-142
-39'
-128
2
3

-359'
176
-330
5
-204'
-2
-4

-500'
-126'
-415
101
-46'
-1
-13

-33
54
-161
29
49
0
-3

-72
-80
3
14
-12
3
0

-498
-214
-256
45
-82
4
5

-868
-543
-283
-23
-65
3
44

-750'

172

138

1

48

20

7

19

Foreign countries ................................................
Europe ................................................................
Canada................................................................
Latin America and Caribbean .............................
Asia ...................................................................
Africa ..................................................................
Other countries ..................................................

49 Nonmonetary international and regional
organizations ................................................

-187

1. Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, Kuwait,
Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial States).




78

2. Includes state and local government securities, and securities of U.S. government 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 1980

3.24 LIABILITIES TO UN AFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the
United States1
Millions of dollars, end of period
1979

1978
Type, and area or country

1980

1978
Sept.

Mar.

June

Sept.

Dec.

Mar .p

1 Total ...........................................................

10,099

11,085

14,808

12,786

14,418

15,305

15,490

16,905'

17,245

2 Payable in dollars......................................
3 Payable in foreign currencies2 .................

9,390
709

10,284
801

11,500
3,308

11,955
831

11,497
2,921

12,528
2,777

12,578
2,912

13,911r
2,994

14,351
2,894

By type
4 Financial liabilities ....................................
5 Payable in dollars..................................
6 Payable in foreign currencies...............

6,253
3,844
2,409

5,995
3,793
2,202

5,890
3,822
2,068

5,951
3,790
2,161

7,281
5,078
2,203

7,739
5,583
2,156

7 Commercial liabilities ..............................
8 Trade payables ......................................
9 Advance receipts and other liabilities .

8,555
4.062
4.493

8,423
3,569
4,854

9,415
4,317
5,098

9,539
4,084
5,455

9,624'
4,369'
5,255'

9,506
4,104
5,401

10
11

Payable in dollars..................................
Payable in foreign currencies...............

7,656
899

7,703
719

8,706
709

8,788
750

8,834'
790

8,768
738

12
13
14
15
16
17
18

By area or country
Financial liabilities
Europe ...................................................
Belgium-Luxembourg .......................
France ...............................................
Germany ...........................................
Netherlands ........................................
Switzerland ........................................
United Kingdom................................

3,855
289
167
366
389
248
2,063

3,601
266
139
311
422
244
2,007

3,429
315
134
283
401
235
1,842

3,553
277
126
381
520
190
1,860

4,549
345
168
497
834
168
2,342

4,764
303
188
520
858
172
2,519

19

Canada ...................................................

244

252

290

300

445

368

20
21
22
23
24
25
26

Latin America and Caribbean .............
Bahamas ...........................................
Bermuda ............................................
Brazil .................................................
British West Indies ..........................
Mexico ...............................................
Venezuela ..........................................

1,353
426
56
10
190
102
49

1,343
411
41
13
197
101
55

1,389
442
37
19
185
131
68

1,330
345
37
14
194
122
71

1,483
347
109
18
514
121
72

1,770
436
106
22
693
108
70

27
28
29

Asia .......................................................
Japan .................................................
Middle East oil-exporting countries3

791
714
32

790
714
23

772
706
25

757
700
19

795
723
31

816
732
26

30
31

Africa .....................................................
Oil-exporting countries4 .................

5
2

5
1

6
2

5
1

4
1

12
1

32

All other5 ............................................

5

5

5

5

4

10

33
34
35
36
37
38
39

Commercial liabilities
Europe .................................................
Belgium-Luxembourg .....................
France .............................................
Germany ..........................................
Netherlands ......................................
Switzerland ......................................
United Kingdom..............................

3,033
75
321
529
246
302
824

3,003
70
350
395
224
329
870

3,306
81
353
471
230
439
997

3,395
103
394
539
206
348
1,015

40

Canada .................................................

667

614

645

709

41
42
43
44
45
46
47

Latin America ....................................
Bahamas ..........................................
Bermuda ..........................................
Brazil ...............................................
British West Indies .........................
Mexico .............................................
Venezuela ........................................

997
25
97
74
53
106
303

1,168
16
42
61
89
236
356

1,322
65
82
165
121
203
323

1,387
89
48
186
21
256
359

1,323'
69
32
203
21
257'
301

1,257
4
47
228
20
235
211

48
49
50

Asia .....................................................
Japan ...............................................
Middle East oil-exporting countries3

2,912
429
1,523

2,622
401
1,122

3,007
489
1,225

2,985
506
1,070

2,859'
481
1,021'

2,875
568
878

51
52

Africa ...................................................
Oil-exporting countries4 .................

743
312

779
343

891
410

775
370

728
384

742
382

53

All other5 ...........................................

203

237

243

287

237

263

1. For a description of the changes in the International Statistics tables, see July
1979 Bulletin, p. 550.
2. Before December 1978, foreign currency data include only liabilities denom­
inated in foreign currencies with an original maturity of less than one year.




3,625'
137
467'
534'
227'
310
1,078'
852

3,683
118
503
532
288
382
995
686

3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
4. Comprises Algeria, Gabon, Libya, and Nigeria.
5. Includes nonmonetary international and regional organizations.

Nonbank-Reported Data
3.25 CLAIMS ON UN AFFILIATED FOREIGNERS
United States1

A67

Reported by Nonbanking Business Enterprises in the

Millions of dollars, end of period

Type, and area or country
Sept.
1 Total ...........................................................
2 Payable in dollars......................................
3 Payable in foreign currencies2 .................

18,300
1,050

June

Sept

21,298

27,655

23,260

30,117

29,522

19,880
1,418

24,600
2,994

21,292
1,968

27,307
2,811

26,627
2,895

27,407
2,665

27,098'
3,044'

28,857
2,760

31,617

By type
4 Financial claims ........................................
5 Deposits.................................................
6
Payable in dollars..............................
7
Payable in foreign currencies...........
8 Other financial claims...........................
9
Payable in dollars..............................
10
Payable in foreign currencies...........

16,323
10,847
9,785
1,062
5,476
3,880
1,597

19,400
13,933
13,013
920
5,467
3,920
1,547

18,534
12,905
11,967
938
5,629
4,042
1,587

18,296
12,886
11,987
899
5,410
4,013
1,397

17,456
11,810
10,927
883
5,646
3,883
1,763

18,928
13,257
12,496
761
5,671
4,108
1,563

11 Commercial claims....................................
12 Trade receivables ..................................
13 Advance payments and other claims ..

11,332
10,744

10,718
10,012
706

10,988
10,330
658

11,776
11,016
760

12,685'
11,997'

12,689
12,000
689

14
15

Payable in dollars..................................
Payable in foreign currencies...............

10,995
336

10,374
344

10,618
370

11,407
369

12,287'
398'

12,253
436

16
17
18
19
20
21
22

By area or country
Financial claims
Europe ...................................................
Belgium-Luxembourg .......................
France ...............................................
Germany ............................................
Netherlands ........................................
Switzerland ........................................
United Kingdom................................

5,050
48
178
510
103
98
3,856

5,180
63
171
266
85
96
4,261

5,475
54
183
361
62
81
4,488

6,403
33
191
391
51
85
5,365

6,066
32
177
401
53
73
5,009

5,827
19
290
296
39
89
4,779

23

Canada ...................................................

4,521

5,196

5,132

4,736

4,777

4,735

24
25
26
27
28
29
30

Latin America and Carribbean...........
Bahamas ............................................
Bermuda ............................................
Brazil .................................................
British West Indies ...........................
Mexico ...............................................
Venezuela ..........................................

5,594
2,902
80
151
1,280
162
150

7,939
4,148
63
156
2,443
160
142

6,839
3,216
57
141
2,281
158
151

5,993
2,831
31
133
1,717
155
139

5,624
2,294
30
163
1,851
158
133

7,382
3,325
34
128
2,591
161
132

31
32
33

Asia .......................................................
Japan .................................................
Middle East oil-exporting countries3

922
307

829
207
16

216
17

818
222
21

693
190
16

675
205
18

34
35

Africa .....................................................
Oil-exporting countries4 ...................

181
10

204
26

227
23

277
41

253
49

265
40

3,827
170
470
421
307
232
731

4,121
179
518
448
262
224
818

36

All other5 ................. ............................

37
38
39
40
41
42
43

Commercial claims
Europe ...................................................
Belgium-Luxembourg .......................
France .............................................
Germany ............................................
Netherlands ........................................
Switzerland ........................................
United Kingdom................................

52
3,979
144
609
399
267
198
827

3,805
173
490
504
275
230
676

4,891'
203
* 727'
580
298
269
905

4,748
209
703
513
345
348
923

44

Canada ...................................................

1,094

1,109

1,104

1,171

45
46
47
48
49
50
51

Latin America and Caribbean.............
Bahamas ............................................
Bermuda ............................................
Brazil .................................................
British West Indies ...........................
Mexico ...............................................
Venezuela ..........................................

2,547
109
215
629
9
506
292

2,395
117
241
495
10
489
274

2,406
98
118
503
25
584
296

2,598
16
154
568
13
650
346

2,859
21
197
647
16
704
342

2,999
30
135
655
11
832
349

52
53
54

Asia .......................................................
Japan .................................................
Middle East oil-exporting countries3

3,085
979
717

2,765
896
682

2,970
1,005
685

3,116
1,128
701

3,299'
1,127
700'

3,346
1,242
657

55
56

Africa .....................................................
Oil-exporting countries4 ...................

447
136

443
131

487
139

549
140

556
133

57

All other5 ..............................................

200

194

220

240'

1. For a description of the changes in the International Statistics tables, see July
1979 Bulletin, p. 550.
2. Prior to December 1978, foreign currency data include only liabilities de­
nominated in foreign currencies with an original maturity of less than one year.




840'

851

519
114

3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
4. Comprises Algeria, Gabon, Libya, and Nigeria.
5. Includes nonmonetary international and regional organizations.

A68

International Statistics □ August 1980

3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKS
Percent per annum
Rate on July 31, 1980

Rate on July 31, 1980

Austria ............................
Belgium ..........................
Brazil ..............................
Canada ............................
Denmark ........................
France ..............................

Rate on July 31, 1980

Country

Country
Per­
cent

Month
effective

6.75
12.0
33.0
10.18
13.0
9.5

Mar. 1980
July 1980
Nov. 1978
July 1980
Feb. 1980
Aug. 1977

Country

Germany, Fed. Rep. of ..
Ita ly ..................................
Japan ..............................
Mexico ............................
Netherlands .....................
Norway ............................

Note. 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

Per­
cent

Month
effective

7.5
15.0
9.0
4.5
9.5
9.0

May 1980
Dec. 1979
Mar. 1980
June 1942
June 1980
Nov. 1979

Sweden ............................
Switzerland .....................
United Kingdom .............
Venezuela .......................

Per­
cent

Month
effective

10.0
3.0
16.0
8.5

Jan. 1980
Feb. 1980
July 1979
May 1979

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.

3.27 FOREIGN SHORT-TERM INTEREST RATES
Percent per annum, averages of daily figures
1980
1977

Country, or type

1979

1978

Jan.

Feb.

Mar.

Apr.

May

June

July

1
2
3
4
5

Eurodollars ...........................................
United Kingdom....................................
Canada ...................................................
Germany ...............................................
Switzerland ...........................................

6.03
8.07
7.47
4.30
2.56

8.74
9.18
8.52
3.67
0.74

11.96
13.60
11.91
6.64
2.04

14.33
17.30
13.93
8.79
5.45

15.33
17.72
13.96
8.94
5.19

18.72
18.07
14.72
9.51
6.57

17.81
17.70
16.31
10.12
6.87

11.20
16.97
13.23
10.18
5.85

9.41
16.68
11.73
10.00
5.64

9.33
15.82
10.91
9.59
5.29

6
7
8
9
10

Netherlands ...........................................
France ...................................................
Italy .......................................................
Belgium .................................................
Japan .....................................................

4.73
9.20
14.26
6.95
6.22

6.53
8.10
11.40
7.14
4.75

9.33
9.44
11.85
10.48
6.10

11.85
12.31
17.00
14.38
8.44

11.99
12.63
17.88
14.45
9.10

11.48
13.94
18.12
16.23
12.37

10.76
12.84
16.91
17.10
13.51

11.18
12.62
17.20
16.31
13.63

10.72
12.37
17.25
14.69
13.51

10.06
11.87
17.49
13.30
12.89

Note. Rates are for 3-month interbank loans except for the following:
Canada, finance company paper; Belgium, time deposits of 20 million

francs and over; and Japan, loans and discounts that can be called after
% being held over a minimum of two month-ends.

3.28 FOREIGN EXCHANGE RATES
Cents per unit of foreign currency
1980
Country/currency

1977

1978

1979
Jan.

Feb.

Mar.

Apr.

May

June

July

1
2
3
4
5

Australia/dollar .......................
Austria/schilling .....................
Belgium/franc ........................
Canada/dollar ........................
Denmark/krone .......................

110.82
6.0494
2.7911
94.112
16.658

114.41
6.8958
3.1809
87.729
18.156

111.77
7.4799
3.4098
85.386
19.010

110.97
8.0689
3.5688
85.912
18.568

110.41
7.9815
3.5221
86.546
18.326

109.03
7.5539
3.3395
85.255
17.325

109.10
7.4513
3.3156
84.311
17.104

113.02
7.8112
3.4759
85.178
17.859

115.29
7.9421
3.5335
86.836
18.215

115.85
8.0578
3.5766
86.783
18.487

6
7
8
9
10

Finland/markka .......................
France/franc............................
Germany/deutsche mark ........
India/rupee ............................
Ireland/pound ........................

24.913
20.344
43.079
11.406
174.49

24.337
22.218
49.867
12.207
191.84

27.732
23.504
54.561
12.265
204.65

27.082
24.750
57.986
12.519
214.31

26.912
24.413
57.203
12.529
211.59

25.998
23.188
54.039
12.270
202.25

26.158
22.985
53.310
12.395
198.98

27.084
23.920
55.828
12.727
207.41

27.448
24.310
56.584
12.751
211.16

27.699
24.657
57.245
12.875
214.74

11
12
13
14
15

ItalyAira ..................................
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............................

96.893
18.789
2.6234
114.99
1.3287

103.64
19.079
2.2782
115.01
1.3073

102.23
19.747
2.0437
118.72
1.4896

98.690
20.373
2.0051
121.64
1.5124

97.960
20.483
2.0634
122.90
1.5006

95.451
19.815
2.0116
123.59
1.4446

94.704
19.739
1.9798
123.88
1.3918

97.641
20.377
2.0298
126.43
1.4104

98.729
20.608
2.0422
129.00
1.4280

98.643
20.762
2.0466
130.79
1.4122

21
22
23
24

Sri Lanka/rupee .....................
Sweden/krona ........................
Switzerland/franc ...................
United Kingdom/pound.........

11.964
22.383
41.714
174.49

6.3834
22.139
56.283
191.84

6.4226
23.323
60.121
212.24

6.4323
24.112
62.693
226.41

6.4350
23.974
60.966
228.91

6.4098
23.008
56.710
220.45

6.1500
22.872
56.857
220.94

6.1900
23.731
60.131
230.20

6.2186
23.995
61.207
233.59

6.3288
24.238
62.203
237.32

103.31

92.39

88.09

85.52

86.37

90.26

91.09

86.96

85.29

84.65

Memo:
25 United States/dollar1 .............

.11328
.37342
40.620
4.4239
40.752

.11782
.47981
43.210
4.3896
46.284

.12035
.45834
45.720
4.3826
49.843

.12427
.42041
45.868
4.3780
52.527

1. Index of weighted average exchange value of U.S. dollar against currencies of other G-10 countries plus Switzerland. March 1973 = 100.
Weights are 1972-76 global trade of each of the 10 countries. Series
revised as of August 1978. For description and back data, see “Index of




.12346
.40934
45.896
4.3789
51.886

.11635
.40246
44.956
4.3739
49.270

.11417
.39980
43.817
4.3779
48.570

.11860
.43766
45.691
4.3763
50.673

.11973
.45894
46.625
4.3684
51.578

.12026
.45232
46.658
4.3511
52.337

the Weighted-Average Exchange Value of the U.S. Dollar: Revision” on page
700 of the August 1978 Bulletin.
Note. Averages of certified noon buying rates in New York for cable transfers.

Time and Savings Deposits
4.10 TIM E AND SAVINGS DEPOSITS

A69

Held by Insured Commercial Banks on Recent Survey Dates
Deposits

Types of deposits, denomination,
and original maturity

Number of issuing banks
Oct. 31,
1979

Jan. 30,
1980

Millions of dollars

Apr. 30,
1980

Oct. 31,
1979

Jan. 30,
1980

Percentage change
Apr. 30,
1980

Oct. 31Jan. 30

Jan. 30Apr. 30

Total time and savings deposits........................................

14,375

14,231

14,209

650,160

667,613

686,683

2.7

2.9

Savings................................................................................
Holder
Individuals and nonprofit organizations.......................
Partnerships and corporations operated for profit
(other than commercial banks) ............................
Domestic governmental units ......................................
All other ........................................................................

14,375

14,227

14,209

207,983

202,397

190,192

-2 .7

-6 .0

14,375

14,227

14,209

194,249

188,550

177,648

-2 .9

-5 .8

10,055
8,462
1,594

10,390
8,712
1,981

10,242
8,849
1,431

9,758
3,600
377

9,309
4,079
460

8,118
3,939
486

-4 .6
13.3
22.0

-12.8
-3 .4
5.7

Interest-bearing time deposits, less than $100,000 .........
Holder
Domestic governmental units1 ......................................
30 up to 90 d a y s.........................................................
90 up to 180 d a y s.......................................................
180 days up to 1 y e a r ...............................................
1 year and over .........................................................
Other than domestic governmental units1 ...................
30 up to 90 d a y s.........................................................
90 up to 180 d a y s.......................................................
180 days up to 1 y e a r ...............................................
1 up to 2Yi y e ars.......................................................
2Vz up to 4 y e a rs.......................................................
4 up to 6 y e ars...........................................................
6 up to 8 y e ars...........................................................
8 years and o v e r.........................................................
IRA and Keogh Plan time deposits, 3 years or more .
Money market certificates, $10,000 or more, exactly 6
months ....................................................................
Variable interest rate ceiling time deposits of less than
$100,000 with maturities of 2Yi years or more2 ..

14,276

14,119

14,094

233,219

248,681

272,316

6.6

9.5

10,156
4,556
6,210
3,736
8,177
14,189
4,605
10,670
7,943
13,907
12,869
13,629
11,534
8,265
10,232

10,577
4,508
6,450
4,371
8,500
14,006
4,666
10,679
7,395
13,536
12,631
13,564
11,568
8,650
10,347

9,680
4,050
5,920
4,278
7,608
14,012
4,357
10,528
7,405
13,392
12,773
13,412
11,443
8,310
10,284

2,506
403
925
372
806
134,012
2,664
21,442
2,808
20,838
14,106
44,842
23,652
3,661
4,642

2,290
368
819
389
715
119,622
2,143
19,798
2,360
17,676
11,960
40,129
22,419
3,138
5,012

1,792
464
449
371
507
98,009
1,750
16,706
2,179
13,552
9,323
33,237
18,832
2,430
5,077

-8 .6
-8 .8
-11.5
4.5
-11.3
-10.7
-19.5
-7 .7
-16.0
-15.2
-15.2
-10.5
-5 .2
-14.3
8.0

-21.8
26.3
-45.2
-4.5
-29.1
-18.1
-18.3
-15.6
-7 .7
-23.3
-22.0
-17.2
-16.0
-22.6
1.3

13,109

13,548

13,666

92,059

117,816

158,647

28.0

11,606

12,612

3,940

8,792

34.7
123.2

Interest-bearing time deposits, $100,000 or more .........

12,863

12,711

12,519

203,187

211,016

218,617

3.9

3.6

Non-interest-bearing time deposits..................................
Less than $100,000 .........................................................
$100,000 or more ...........................................................

1,464
1,175
606

1,340
1,015
611

1,463
1,166
607

4,566
965
3,601

4,632
931
3,701

3,966
940
3,027

1.4
-3.5
2.8

-14.4
.9
-18.2

Club accounts (Christmas savings, vacation, and the
like) ............................................................................

8,551

8,931

8,968

1,206

889

1,593

-26.2

79.1

1. Excludes all money market certificates, IRAs, and Keogh Plan accounts.
2. Effective Jan. 1, 1980, commercial banks, savings and loan associations, and
mutual savings banks are authorized to offer variable ceiling accounts with no
required minimum denomination and with maturities of 2Vi years or more. The
maximum rate for commercial banks is 3A percentage points below the yield on
2^-year U.S. Treasury securities: the ceiling rate for thrift institutions is V4 per­
centage point higher than that for commercial banks.




Note: All banks that had either discontinued offering or never offered certain
types of deposits as of the survey date are not counted as issuing banks. However,
small amounts of deposits held at banks that had discontinued issuing certain types
of deposits are included in the amounts outstanding.
Details may not add to totals because of rounding.

A70
4.11

Special Tables □ August 1980
SMALL-DENOMINATION TIME AND SAVINGS DEPOSITS Held by Insured Commercial Banks on January 30,
1980, and April 30, 1980, Compared with Previous Survey, by Type of Deposit, by Most Common Rate Paid on New
Deposits in Each Category, and by Size of Bank

Deposit group, original
maturity, ana distribu­
tion of deposits by
most common rate
Apr. 30,
1980

Jan. 30,
1980

Size of bank
(total deposits in millions of dollars)

Size of bank
(total deposits in millions of dollars)

Less than 100

Less than 100

Apr. 30,
1980

Jan. 30,
1980

Apr. 30,
1980

Jan. 30,
1980

Apr. 30,
1980

Jan. 30,
1980

Apr. 30,
1980

Jan. 30,
1980

Apr. 30,
1980

Jan. 30,
1980

Amount of deposits (in millions of dollars)
or percentage distribution

Number of banks, or percentage distribution
Savings deposits
Individuals and nonprofit
organizations
Issuing b an k s............................
Distribution, to ta l.................
4.50 or le ss ............................
4.51-5.00
5.01-5.25
Memo: Paying ceiling rate1 . . . .

14,209
100
4.7
8.1
87.3
87.3

14,119
100
2.1
8.4
89.5
89.5

12,994
100
4.7
8.2
87.1
87.1

12,908
100
1.8
8.7
89.5
89.5

1,215
100
4.2
6.4
89.4
89.4

1,211
100
5.8
4.8
89.4
89.4

177,648
100
5.3
6.2
88.4
88.4

188,120
100
4.7
5.9
89.4
89.4

64,052
100
6.3
6.8
87.0
87.0

68,303
100
3.7
6.5
89.8
89.8

113,596
100
4.8
5.9
89.2
89.2

119,818
100
5.3
5.5
89.2
89.2

Partnerships and corporations
Issuing b a n k s............................
Distribution, to ta l.....................
4.50 or le ss ............................
4.51-5.00
................
5.01-5.25
Memo: Paying ceiling rate1

10,242
100
1.3
6.5
92.2
92.2

10,360
100
.9
7.4
91.8
91.8

9,057
100
1.3
6.6
92.0
92.0

9,176
100

1,184
100
1.0
6.3
92.7
92.7

8,118
100

7.5
91.6
91.6

1,185
100
1.0
5.7
93.3
93.3

8.4
90.8
90.8

9,307
100
.8
7.6
91.6
91.6

2,253
100
.6
12.8
86.6
86.6

2,640
100
.4
8.1
91.6
91.6

5,865
100
.9
6.7
92.4
92.4

6,667
100
.9
7.5
91.6
91.6

Domestic governmental units
Issuing b a n k s............................
Distribution, to ta l.....................
4.50 or le ss ............................
4.51-5.00
5.01-5.25
Memo: Paying ceiling rate1

8,830
100
3.2
6.4
90.4
90.4

8,660
100
1.0
5.7
93.4
93.4

7,964
100
3.5
6.5
90.0
90.0

7,782
100
.9
5.5
93.6
93.6

866
100
1.2
5.5
93.3
93.3

879
100
1.6
6.7
91.6
91.6

3,939
100
.6
7.3
92.1
92.1

3,i
100
.2
9.5
90.3
90.3

2,419
100
.6
6.4
92.9
92.9

2,189
100
(2)
11.0
89.0
89.0

1,520
100
.4
90.1
90.1

1,691
100
.5
7.6
91.9
91.9

All other
Issuing b an k s............................
Distribution, to ta l.....................
4.50 or less ............................
4.51-5.00
5.01-5.25
Memo: Paying ceiling rate1

1,422
100
9.8
5.6
84.7
84.7

1,958
100
4.0
6.2
89.9
89.9

1,194
100
9.5
6.0
84.5
84.5

1,753
100
3.6
6.6
89.8

228
100
11.0
3.4
85.6
85.6

205
100
7.3
2.3
90.4
90.4

481
100
3.5
18.2
78.3
78.3

451
100
2.7
13.5
83.8
83.8

300
100
1.5
27.2
71.3
71.3

268
100
1.6
17.7
80.7
80.7

181
100
6.7
3.3
90.0
90.0

183
100
4.2
7.4
88.4
88.4

Time deposits less than $100,000
Domestic governmental units
30 up to 90 days
Issuing b an k s.........................
Distribution, to ta l.................
5.00 or le ss ........................
5.01-5.50
5.51-8.00
Memo: Paying ceiling rate1

4,043
100
26.0
30.0
44.0
38.2

4,480
100
27.1
31.8
41.1
30.6

3,429
100
28.1
25.8
46.1
40.3

3,853
100
28.1
29.2
42.7
31.3

614
100
14.1
53.5
32.4
26.5

626
100
20.9
48.1
30.9
26.5

450
100
11.4
15.2
73.4
33.4

367
100
23.0
17.9
59.1
50.0

164
100
25.5
10.6
63.9
54.8

238
100
27.9
12.0
60.1
47.5

286
100
3.2
17.9
78.9
21.1

129
100
14.0
28.8
57.2
54.5

90 up to 180 days
Issuing b a n k s........................
Distribution, to ta l.................
5.00 or le ss........................
5.01-5.50
5.51-8.00
Memo: Paying ceiling rate1

5,915
100
6.9
28.0
65.0
20.9

6,450
100
3.3
44.6
52.1
13.4

5,176
100
7.6
27.4
65.0
20.8

5,700
100
3.5
45.3
51.2
12.3

739
100
2.0
32.8
65.2
21.9

750
100
1.2
39.7
59.0
21.8

448
100
3.3
43.4
53.3
16.7

819
100
1
34.7
63.5
42.6

290
100
4.2
41.5
54.3
15.3

641
100
1.8
31.3
66.9
49.1

158
100
1.6
46.8
51.5
19.4

178
100
2.0
46.7
51.3
19.2

180 days up to 1 year
Issuing b a n k s........................
Distribution, to ta l.................
5.00 or le ss ........................
5.01-5.50
5.51-8.00
Memo: Paying ceiling rate1

4,271
100
4.4
40.4
55.1
23.4

4,279
100
2.8
39.8
57.3
28.4

3,744
100
5.1
42.8
52.1
23.6

3,725
100
3.2
40.9
55.9
29.1

527
100
(2)
23.3
76.7
21.4

554
100
.2
32.8
67.0
24.2

371
100
.1
25.3
74.6
32.5

352
100
.1
36.8
63.1
31.1

223
100
2
33’4
66.4
38.5

206
100
.1
49.0
50.9
35.2

148
100
(2)
12.9
87.1
23.5

147
100
(2)
19.7
80.2
25.4

1 year and over
Issuing b an k s........................
Distribution, to ta l.................
5.50 or le ss ........................
5.51-6.00
6.01-8.00
Memo: Paying ceiling rate1

7,599
100
6.1
48.7
45.2
11.9

8,499
100
6.9
55.0
38.0
11.4

6,877
100
6.2
47.7
46.0
11.2

7,767
100
7.1
54.7
38.3
11.1

722
100
4.6
57.9
37.6
18.8

732
100
5.2
59.1
35.7
14.0

507
100
13.8
42.9
43.2
16.3

715
100
8.8
54.3
36.9
13.2

424
100
14.7
42.8
42.5
13.0

615
100
9.2
56.5
34.3
10.3

82
100
9.4
43.4
47.2
33.2

100
100
6.6
40.6
52.7
31.1

For notes see end of table.




Time and Savings Deposits
4.11

A ll

SM ALL-DENOM INATION TIME A N D SAVINGS DEPOSITS Continued
Size of bank
(total deposits in millions of dollars)

Size of bank
(total deposits in millions of dollars)
Deposit group, original
maturity, and distribu­
tion of deposits by

Time deposits less than $100,000 (cont.)
Other than domestic governmental units
30 up to 90 days
Issuing banks..........................................
Distribution, to ta l..................................
5.00 or less ........................................
5.01-5.25 ............................................
Memo: Paying ceiling rate1 .....................

All banks

All banks
Less than 100

Less than 100

100 and over

100 and over

Apr. 30, Jan. 30, Apr. 30, Jan. 30, Apr. 30, Jan. 30,
1980
1980
1980
1980
1980
1980

Apr. 30, Jan. 30, Apr. 30, Jan. 30, Apr. 30, Jan. 30,
1980
1980
1980
1980
1980
1980

Number of banks or percentage distribution

Amount of deposits (in millions of dollars)
or percentage distribution

4,355
100
29.4
70.6
70.6

4,576
100
28.2
71.8
71.8

3,499
100
32.3
67.7
67.7

3,711
100
28.0
72.0
72.0

855
100
17.3
82.7
82.7

865
100
29.0
71.0
71.0

1,732
100
13.9
86.1
86.1

2,142
100
19.8
80.2
80.2

387
100
8.0
92.0
92.0

396
100
4.1
95.9
95.9

1,345
100
15.6
84.4
84.4

1,746
100
23.4
76.6
76.6

10,528
100

10,679
100

12,293
100

3$
69.3
69.3

7,506
100
(2)
33.5
66.5
66.5

10,355
100

63.0
63.0

19,798
100
(2)
46.6
53.4
53.2

6,351
100

34^
66.0
66.0

1,205
100
(2)
45.9
54.1
53.3

16,706
100

5$
44.5
44.4

9,474
100
(2)
56.7
43.3
43.3

1,205
100

3$
61.0
61.0

9,323
100
(2)
39.6
60.4
60.4

4$
59.1
59.1

£
45.5
45.1

180 days up to 1 year
Issuing banks..........................................
Distribution, total..................................
4.99 or less ........................................
5.00-5.50 ............................................
5.51-5.75 ............................................
Memo: Paying ceiling rate1 .....................

7,398
100
2.2
52.5
45.3
45.3

7,202
100
.5
63.5
36.0
35.8

6,555
100
2.4
55.2
42.5
42.5

6,315
100
.6
66.9
32.6
32.6

843
100
.5
31.9
67.6
67.6

887
100
.5
39.5
60.1
59.0

2,172
100
.1
35.0
64.8
64.8

2,179
100
(2)
55.3
44.6
44.6

763
100
.2
49.4
50.5
50.5

818
100
(2)
60.1
39.9
39.9

1,409
100
.1
27.3
72.6
72.6

1,361
100
(2)
52.4
47.5
47.5

1 up to 2Yi years
Issuing banks..........................................
Distribution, to ta l..................................
5.50 or less ........................................
5.51-6.00 ............................................
Memo: Paying ceiling rate1 .....................

13,391
100
.6
99.4
99.0

13,536
100
.1
99.9
99.0

12,187
100
.4
99.6
99.2

12,331
100

1,205
100
1.4
98.6
97.6

13,527
100
.6
99.4
99.1

17,676
100
.6
99.4
99.0

8,524
100
.1
99.9
99.8

11,336
100

. 0$
99.1

1,204
100
1.9
98.1
97.7

10$
99.8

5,003
100
1.3
98.7
97.9

6,340
100
1.7
98.3
97.7

2Yi years up to 4 years
Issuing banks..........................................
Distribution, total..................................
6.00 or less ........................................
6.01-6.50 ............................................
Memo: Paying ceiling rate1 .....................

12,727
100
2.8
97.2
96.9

12,549
100
.8
99.2
99.2

11,543
100
2.8
97.2
96.9

11,360
100
.6
99.4
99.4

1,184
100
2.7
97.3
97.0

1,189
100
2.2
97.8
97.3

9,295
100
2.8
97.2
96.9

11,908
100
.7
99.3
94.0

5,389
100
3.9
96.1
96.0

6,957
100
(2)
100.0
100.0

3,906
100
1.4
98.6
98.2

4,951
100
1.6
98.4
85.6

4 up to 6 years
Issuing banks..........................................
Distribution, total..................................
7.00 or less ........................................
7.01-7.25 ............................................
Memo: Paying ceiling rate13 ...................

13,407
100
5.8
94.2
93.2

13,322
100
5.7
94.3
94.2

12,213
100
5.9
94.1
93.0

12,131
100
5.9
94.1
94.1

1,195
100
4.2
95.8
95.1

1,191
100
3.5
96.5
95.7

33,133
100
3.5
96.5
96.0

39,808
100
3.7
96.3
96.2

18,589
100
4.6
95.4
94.7

22,099
100
4.3
95.7
95.7

14,544
100
2.0
98.0
97.8

17,709
100
3.1
96.9
96.7

6 up to 8 years
Issuing banks..........................................
Distribution, total..................................
7.25 or less ........................................
7.26-7.50 ............................................
Memo. Paying ceiling rate13 .....................

11,440
100
2.7
97.3
96.9

11,453
100
1.7
98.3
97.9

10,289
100
2.8
97.2
96.9

10,307
100
1.7
98.3
98.0

1,150
100
1.9
98.1
97.4

1,146
100
2.0
98.0
97.2

18,794
100
1.1
98.9
98.8

22,369
100
4.1
95.9
95.8

8,369
100
.4
99.6
99.5

9,847
100
1.1
98.9
98.8

10,425
100
1.7
98.3
98.3

12,522
100
6.5
93.5
93.5

8 years and over
Issuing banks..........................................
Distribution, total..................................
7.50 or less .......................................
7.51-7.75 ............................................
Memo: Paying ceiling rate1 3 ...................

8,304
100
3.0
97.0
96.8

8,594
100
2.8
97.2
97.2

7,277
100
2.7
97.3
97.3

7,538
100
2.5
97.5
97.5

1,027
100
5.8
94.2
93.3

1,055
100
4.8
95.2
95.2

2,424
100
14.9
85.1
85.1

3,121
100
10.9
89.1
89.1

926
100
2.0
98.0
98.0

1,291
100
.1
99.9
99.9

1,498
100
22.8
77.2
77.2

1,830
100
18.6
81.4
81.4

IRA and Keogh Plan time deposits, 3 years
or more
Issuing banks..............................................
Distribution, total ....................................
7.50 or less ............................................
7.51-8.00 ...............................................
8.01-12.00 ..............................................
Memo: Paying ceiling rate1 .....................

10,156
100
22.4
45.6
32.0
6.8

10,347
100
24.5
59.1
16.4
(2)

9,039
100
24.0
43.7
32.3
6.3

9,227
100
26.2
56.5
17.3
(2)

1,117
100
9.2
61.0
29.8
10.5

1,119
100
11.2
80.2
8.6
(2)

5,051
100
7.9
56.6
35.5
12.9

5,012
100
8.9
77.5
13.6
(2)

1,915
100
12.5
44.0
43.5
13.5

1,873
100
13.0
68.0
19 0
(2)

3,136
100
5.1
64.3
30.6
12.5

3,138
100
6.5
83.2
10 3
(2)

Money market certificates, $10,000 or more,
6months
Issuing banks.............................................
Distribution, total ....................................
9.99 or less ............................................
10.00-10.99
11.00-11.49
11.50-11.89 ............................................
Memo: paying ceiling rate1 .......................

13,666
100
.3
6.1
(2)
93.6
93.5

13,548
100
.8
(2)
.1
99.1
96.8

12,452
100
.3
6.6
(2)
93.1
93.1

12,338
100
.9

1,214
100
.1
1.4
(2)
98.5
97.5

1,210
100
.1
(2)
.9
99.0
97.6

158.647
100
.4
1.5
(2)
98.1
97.7

117,816
100

72,861
100
.7
2.3

53,684
100

85,786
100

1
100.0
99.3

i
98.2

64,132
100
.1
(2)
.5
99.5
98.5

90 up to 180 days
Issuing banks..........................................
Distribution, total..................................
4.99 or less ........................................
5.00-5.50 ............................................
5.51-5.75 ............................................
Memo: Paying ceiling rate1 .....................

For notes see end of table.




8
99.1
96.7

2
99.1
98.9

9$
97.0

Special Tables □ August 1980

A ll
4.11

SMALL-DENOMINATION TIME AND SAVINGS DEPOSITS Continued
Size of bank
(total deposits in millions of dollars)
All banks

Deposit group, original
maturity, ana distribu­
tion of deposits by
most common rate

Less than 100

100 and over

Apr. 30, Jan. 30, Apr. 30, Jan. 30, Apr. 30, Jan. 30,
1980
1980
1980
1980
1980
1980
Time deposits less than $100,000 (cont.)

Less than 100

Number of banks, or percentage distribution

12,611
100
(2)
7.5
1.2
91.3
90.3

11,601
100
.3
99.7
i2)
(2)
97.4

11,428
100
(2)
7.7
1.3
91.0
90.0

10,434
100
(2)
100.0

6,297
100
51.9
23.6
8.1
16.4

6,385
100
60.2
18.9
8.0
12.9

5,849
100
52.9
23.5
8.0
15.7

100 and over

Apr. 30, Jan. 30, Apr. 30, Jan. 30, Apr. 30, Jan. 30,
1980
1980
1980
1980
1980
1980
Amount of deposits (in millions of dollars)
or percentage distribution

Variable interest rate ceiling time de­
posits of less than $100,000 with
maturities of 2!/2 years or more

Issuing banks.............................................
Distribution, total ....................................
9.99 or less ............................................
10.00-10.99 ............................................
11.00-11.49 ............................................
11.50-11.75 ............................................
Memo: Paying ceiling rate1 .....................

Size of bank
(total deposits in millions of dollars)

All banks

1,168
100
2.5
97.5

(2)
97.4

1,183
100
.2
5.3
.9
93.6
93.2

5,932
100
62.0
17.9
8.0
12.1

448
100
39.2
25.6
9.8
25.3

(2)
97.1

8,787
100
.1
4.9
.9
94.1
93.9

3,939
100
.5
99.5
(2)
(2)
91.3

4,813
100
(2)
6.3
1.1
92.6
92.6

2,253
100
(2)
100.0
(2)
(2)
85.4

3,974
100
.2
3.3
.7
95.8
95.5

1,687
100
1.1
98.9
(2)
(2)
98.9

453
100
36.1
31.7
8.2
24.1

979
100
25.3
26.7
17.3
30.6

562
100
25.5
28.0
19.2
27.3

541
100
29.7
28.5
12.6
29.2

307
100
32.5
26.4
15.2
25.9

438
100
20.0
24.5
23.2
32.4

255
100
17.0
30.0
24.0
29.0

Club accounts

Issuing banks.............................................
Distribution, total ....................................
0.00 .........................................................
O.Ol-^.OO ...............................................
4.01-4.50 ...............................................
4.51-5.50 ...............................................

1. See Bulletin table A8 for the ceiling rates that existed at the time of each
survey.
2. Less than .05 percent.
3. In October 1979 these deposit categories included the variable ceiling rate
account of 4 years and over issued since July 1, 1979; the ceiling rate on such
accounts was 7.60 percent in October. In January 1980 all variable ceiling accounts
were excluded from these categories and hence the fixed rate ceilings that apply
to each maturity category are shown in the table.

Note. All banks that either had discontinued offering or had never offered
particular types of deposits as of the survey date are not counted as issuing banks.
Moreover, the small amounts of deposits held at banks that had discontinued
issuing deposits are not included in the amounts outstanding. Therefore, the deposit
amounts shown in table 4.10 may exceed the deposit amounts shown in the table.
The most common interest rate for each instrument refers to the stated rate per
annum (before compounding) that banks paid on the largest dollar volume of
deposit inflows during the 2-week period immediately preceding the survey date.
Details may not add to totals because of rounding.

4.12 AVERAGE OF MOST COMMON INTEREST RATES PAID on Various Categories of Time and Savings Deposits
at Insured Commercial Banks, April 30, 1980
Bank size (total deposit in million of dollars)
A/pv ui u^pwaii, n u iu ti, cuiu

original maturity

All size
groups

Less
than 20

20 up
to 50

50 up
to 100

100 up
to 500

500 up
to 1,000

1,000
and over

Savings and small-denomination time deposits.........................................

7.97

8.21

8.31

8.06

7.94

7.57

7.72

Savings, total ..............................................................................................
Individuals and nonprofit organizations.................................................
Partnerships and corporations................................................................
Domestic governmental units ................................................................
All other ..................................................................................................

5.18
5.18
5.22
5.22
5.08

5.18
5.18
5.18
5.22
5.25

5.18
5.17
5.22
5.23
5.20

5.11
5.10
5.22
5.22
4.92

5.21
5.21
5.23
5.22
4.77

5.15
5.15
5.17
5.19
5.25

5.19
5.19
5.24
5.23
5.20

Other time deposits in denominations of less than $100,000, total.......
Domestic governmental units, total .......................................................
30 up to 90 days...................................................................................
90 up to 180 days.................................................................................
180 days up to 1 year ..........................................................................
1 year and over ...................................................................................

6.69
6.22
6.14
5.94
6.42
6.38

6.61
6.28
6.98
5.59
6.66
6.12

6.78
6.36
6.43
6.28
6.11
6.52

6.79
6.29
6.45
5.68
6.55
6.74

6.71
5.85
5.57
5.83
6.00
6.83

6.63
6.83
6.81
7.01
6.80
6.62

6.58
6.56
6.62
6.19
6.82
6.61

Other than domestic government units, to ta l.......................................
30 up to 90 days...................................................................................
90 up to 180 days.................................................................................
180 days up to 1 y ear..........................................................................
1 up to 2Yi years.................................................................................
2Yi up to 4 years.................................................................................
4 up to 6 years.....................................................................................
6 up to 8 years.....................................................................................
8 years or more ...................................................................................

6.70
5.14
5.65
5.65
5.98
6.47
7.22
7.48
7.68

6.63
5.22
5.70
5.58
6.00
6.45
7.23
7.50
7.71

6.79
5.18
5.69
5.66
6.00
6.44
7.24
7.50
7.75

6.80
5.23
5.61
5.50
6.00
6.50
7.24
7.50
7.75

6.73
5.22
5.64
5.68
5.98
6.47
7.23
7.49
7.73

6.63
4.58
5.69
5.62
5.98
6.40
7.17
7.45
7.51

6.58
5.22
5.63
5.67
5.93
6.49
7.15
7.45
7.61

IRA and Keogh Plan time deposits, 3 years or m ore..........................

9.24

9.59

9.78

9.36

9.09

8.92

9.02

Money market certificates, exactly 6 months.......................................

11.86

11.81

11.84

11.89

11.87

11.83

11.88

Variable interest rate ceiling time deposits of less than $100,000 with
maturities of 2Yi years or more* .....................................................

11.68

11.69

11.63

11.73

11.68

11.67

11.68

Club accounts2 .............................................................................................

4.01

2.46

3.63

3.86

4.38

4.12

4.58

1. See note 2 in table 4.10.
2. Club accounts are excluded from all of the other categories.
Note. The average rates were calculated by weighting the most common rate




reported on each type of deposit at each bank by the amount of that type of deposit
outstanding. All banks that had either discontinued offering or never offered
particular types of deposit as of the survey date were excluded from the calculations
for those specific types of deposits.

A73

Guide to
Tabular Presentation and Statistical Releases
G u id e t o Ta b u l a r P r e s e n t a t io n

S ym bols a n d A b b revia tio n s
c
e
P
r

Corrected
Estimated
Preliminary
Revised (Notation appears on column heading
when more than half of figures in that column
are changed.)
Amounts insignificant in terms of the last decimal
place shown in the table (for example, less than
500,000 when the smallest unit given is mil­
lions)

0
n.a.
n.e.c.
IPCs
REITs
RPs
SMSAs

Calculated to be zero
Not available
Not elsewhere classified
Individuals, partnerships, and corporations
Real estate investment trusts
Repurchase agreements
Standard metropolitan statistical areas
Cell not applicable

G eneral Inform ation
Minus signs are used to indicate (1) a decrease, (2) a negative
figure, or (3) an outflow.
“U.S. government securities” may include guaranteed is­
sues of U.S. government agencies (the flow of funds figures
also include not fully guaranteed issues) as well as direct obli­

gations of the Treasury. “ State and local government” also
includes municipalities, special districts, and other political
subdivisions.
In some of the tables details do not add to totals because of
rounding.

S t a t is t ic a l R e l e a s e s

L ist P u blish ed S em ian nu ally, with L a te st Bulletin R eference
Anticipated schedule of release dates for periodic releases




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

Issue

Page

August 1980

A-80

A74

Federal Reserve Board of Governors
P a u l A . V o l c k e r , Chairm an
F r e d e r ic k H . S c h u l t z , Vice Chairm an

H e n r y C. W a l l ic h
J. C h a r l e s P a r t e e

O f f ic e o f B o a r d M e m b e r s

O f f ic e o f S t a f f D ir e c t o r f o r
M o n e t a r y a n d F in a n c ia l P o l ic y

Joseph R. Coyne, Assistant to the Board
Jay Paul Brenneman, Special Assistant to the Board
Frank O’Brien, Jr., Special Assistant to the Board
Joseph S. Sims, Special Assistant to the Board
D onald J. Winn, Special Assistant to the Board
L e g a l D iv is io n

N eal L. Petersen, General Counsel
Robert E. Mannion, Deputy General Counsel
Charles R. M cN eill, Assistant to the General Counsel
J. V irgil M attin gly, Assistant General Counsel
G ilbert T. Schw artz, Assistant General Counsel
O f f ic e o f t h e S e c r e t a r y

Theodore E. A lliso n , Secretary
G riffith L. Garwood, Deputy Secretary
Barbara R. Lowrey, Assistant Secretary
*Cathy L. Petryshyn, Assistant Secretary
D iv is io n o f C o n s u m e r
a n d C o m m u n it y A f f a ir s

Janet O. Hart, Director
N ath an iel E. B u tler, Associate Director
Jerauld C. Kluckman, Associate Director
Glenn E. Loney, Assistant Director
D olores S. Smith, Assistant Director
D iv is io n o f B a n k in g
S u p e r v is io n a n d R e g u l a t io n

John E. Ryan, Director
Frederick R. D ahl, Associate Director
W illiam Taylor, Associate Director
W illiam W. Wiles, Associate Director
Jack M. Egertson, Assistant Director
Robert A. Jacobsen, Assistant Director
Don E. Kline, Assistant Director
Robert S. Plotkin, Assistant Director
Thomas A. Sidman, Assistant Director
Samuel H . T a lle y , Assistant Director




Stephen H. A xilrod, Staff Director
Edward C. E ttin, Deputy Staff Director
Murray A ltm ann, Assistant to the Board
Peter M. Keir, Assistant to the Board
S ta n ley J. S igel, Assistant to the Board
Normand R. V. Bernard, Special Assistant to the Board
D iv is io n o f R e s e a r c h a n d S t a t is t ic s

James L. K ichline, Director
Joseph S. Zeisel, Deputy Director
M ichael J. P r e ll, Associate Director
Robert A. Eisenbeis, Senior Deputy Associate Director
tJoHN J. Mingo, Senior Deputy Associate Director
E leanor J. S to c k w ell, Senior Deputy Associate Director
Jared J. E nzler, Deputy Associate Director
J. C ortland G. P eret, Deputy Associate Director
Helm ut F. W endel, Deputy Associate Director
Martha Bethea, Assistant Director
Robert M. Fisher, Assistant Director
Frederick M. S trub le, Assistant Director
Stephen P. Taylor, Assistant Director
Levon H. Garabedian, Assistant Director (Administration)
D iv is io n o f I n t e r n a t io n a l F in a n c e

Edwin M. Truman, Director
Robert F. Gemmill, Associate Director
George B. Henry, Associate Director
Charles J. Siegman, Associate Director
Samuel Pizer, Staff Adviser
Jeffrey R. Shafer, Deputy Associate Director
D ale W. Henderson, Assistant Director
Larry J. Promisel, Assistant Director
Ralph W. Smith, Jr., Assistant Director

A75

and Official Staff
N a n c y H. T e e t e r s
E m m e t t J. R ic e

L y l e E. G r a m l e y

O f f ic e o f
S t a f f D ir e c t o r f o r M a n a g e m e n t

O f f ic e o f S t a f f D ir e c t o r f o r
F e d e r a l R e s e r v e B a n k A c t iv i t i e s

John M. D enkler, Staff Director
Edward T. M ulrenin, Assistant Staff Director
Joseph W. D aniels, Sr. , Director o f Equal Employment Op­

William H. W allace, Staff Director
Harry A. Guinter, Assistant Director for Contingency
Planning

portunity
D iv is io n o f D a t a P r o c e s s in g

Charles L. Hampton, Director
Bruce M. B eardsley, Associate Director
U yless D. B lack, Assistant Director
Glenn L. Cummins, Assistant Director
Robert J. Zemel, Assistant Director
D iv is io n o f P e r s o n n e l

David L. Shannon, Director
John R. Weis, Assistant Director
Charles W. Wood, Assistant Director
O f f ic e o f t h e C o n t r o l l e r

John Kakalec, Controller
George E. Livingston, Assistant Controller
D iv is io n o f S u p p o r t S e r v ic e s

D onald E. Anderson, Director
Robert E. Frazier, Assistant Director
W alter W. Kreimann, Associate Director

*On loan from the Federal Reserve Bank of Cleveland.
tOn leave of absence.




D iv is io n o f F e d e r a l R e se r v e
B a n k O p e r a t io n s

James R. Kudlinski, Director
Clyde H. Farnsw orth, Jr., Deputy Director
W alter A lthau sen , Assistant Director
Charles W. B enn ett, Assistant Director
Lorin S. Meeder, Assistant Director
P. D. Ring, Assistant Director
David L. Robinson, Assistant Director
Raymond L. Teed, Assistant Director

A76

Federal Reserve Bulletin □ August 1980

FOMC and Advisory Councils
F e d e r a l O p e n M a r k e t C o m m it t e e

Anthony M. Solomon, Vice Chairman

Paul A. V olcker, Chairman
Lyle E. Gramley
Roger Guffey
Frank E. Morris

J. Charles Partee
Emmett J. Rice
Lawrence K. Roos
Frederick H. Schultz

Murray Altmann, Secretary
NormandR. V. Bernard, Assistant Secretary
N ea l L. Petersen, General Counsel
James H. O ltm an , Deputy General Counsel
Robert E. Mannion, Assistant General Counsel
Stephen H. A xilrod, Economist
A lan R. Holmes , Adviser for Market Operations
A n a tol Balbach, Associate Economist
John Davis, Associate Economist

N ancy H. Teeters
Henry C. Wallich
Willis J. Winn

Richard G. Davis, Associate Economist
Thomas Davis, Associate Economist
Robert Eisenmenger, Associate Economist
Edward C. E ttin, Associate Economist
George B. Henry, Associate Economist
P eter M. Keir, Associate Economist
James L. K ichline, Associate Economist
Edwin M. Truman, Associate Economist
Joseph S. Zeisel, Associate Economist

Peter D. S te rn lig h t, Manager for Domestic Operations, System Open Market Account
S co tt E. Pardee, Manager for Foreign Operations, System Open Market Account

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

Clarence C. Barksdale, Eighth District, President
James D. Berry, Eleventh District, Vice President
Henry S. Woodbridge, Jr., First District
Donald C. Platten, Second District
William B. Eagleson, Jr., Third District
Merle E. Gilliand, Fourth District
J. Owen Cole, Fifth District

Robert Strickland, Sixth District
Roger E. A nderson, Seventh District
Clarence G. F rame, Ninth District
Gordon E. Wells, Tenth District
Chauncey E. Schmidt, Twelfth District

Herbert V. Prochnow, Secretary
William J. Korsvik, Associate Secretary

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

W illiam D. Warren, Los Angeles, California, Chairman
Marcia A. Hakala, Omaha, Nebraska, Vice Chairman
Julia H. Boyd, Washington, D.C.
Roland E. Brandel, San Francisco, California
Ellen Broadman, Washington, D.C.
James L. Brown, Milwaukee, Wisconsin
Mark E. Budnitz , Atlanta, Georgia
Robert V. Bullock, Frankfort, Kentucky
Richard S. D’Agostino, Philadelphia, Pennsylvania
Joanne Faulkner, New Haven, Connecticut
Vernard W. Henley, Richmond, Virginia
Juan Jesus Hinojosa, McAllen, Texas
Shirley T. Hosoi, Los Angeles, California
F. Thomas Juster, Ann Arbor, Michigan
Richard F. Kerr, Cincinnati, Ohio
Robert J. Klein, New York, New York




Harvey M. Kuhnley, Minneapolis, Minnesota
The Rev. Robert J. McEwen , S.J., Boston, Massachusetts
R. C. Morgan, El Paso, Texas
Margaret Reilly-Petrone, Upper Montclair, New Jersey
Rene Reixach, Rochester, New York
Florence M. Rice, New York, New York
Ralph J. Rohner, Washington, D.C.
Henry B. Schechter, Washington, D.C.
Peter D. Schellie, Washington, D.C.
E. G. Schuhart, II, Amarillo, Texas
Charlotte H. Scott, Charlottesville, Virginia
Richard A. Van Winkle, Salt Lake City, Utah
Richard D. Wagner, Simsbury, Connecticut
Mary W. Walker, Monroe, Georgia

A ll

Federal Reserve Banks, Branches, and Offices
FEDERAL RESERVE BANK,
branch, or facility
Zip

Chairman
Deputy Chairman

President
First Vice President

BOSTON* .................. 02106

Robert M. Solow
Robert P. Henderson

Frank E. Morris
James A. McIntosh

NEW YORK* ............. 10045

Robert H. Knight, Esq.
Boris Yavitz
Frederick D. Berkeley, III

Anthony M. Solomon
Thomas M. Timlen

John W. Eckman
Werner C. Brown

David P. Eastburn
Richard L. Smoot

Robert E. Kirby
J. L. Jackson
Lawrence H. Rogers, II
William H. Knoell

Willis J. Winn
Walter H. MacDonald

Maceo A. Sloan
Steven Muller
Catherine Byrne Doehler
Robert E. Elberson

Robert P. Black
Jimmie R. Monhollon

Buffalo....................... .14240
PHILADELPHIA

19105

CLEVELAND* .......... 44101
Cincinnati.................. 45201
Pittsburgh.................. 15230
RICHMOND* .............. 23261
Baltimore................... 21203
Charlotte ................... 28230

JohnT. Keane

Robert E. Showaiter
Robert D. Duggan

Robert D. McTeer, Jr.
Stuart P. Fishburne

Culpeper Communications
and Records Center 22701

ATLANTA .................. 30301
Birmingham ............. 35202
Jacksonville ............. 32231
Miami ....................... .33152
Nashville .................. 37203
New Orleans............. 70161
CHICAGO*.................. 60690
Detroit....................... 48231
ST. LOUIS .................. 63166
Little R ock............... ,72203
Louisville .................. 40232
Memphis .................. 38101
MINNEAPOLIS.......... 55480
Helena....................... ,59601
KANSAS CITY .......... 64198
Denver....................... 80217
Oklahoma City.......... 73125
Omaha....................... 68102
DALLAS .................... 75222
El Paso....................... 79999
Houston.................... 77001
San Antonio ............. 78295
SAN FRANCISCO ..... 94120
Los Angeles .............
Portland....................
Salt Lake C ity..........
Seattle.......................

,90051
97208
84125
98124

Vice President
in charge of branch

Albert D. Tinkelenberg
William A. Fickling, Jr.
John H. Weitnauer, Jr.
Harold B. Blach, Jr.
Joan W. Stein
David G. Robinson
Robert C. H. Mathews, Jr.
George C. Cortright, Jr.

William F. Ford
Robert P. Forrestal

John Sagan
Stanton R. Cook
Howard F. Sims

Robert P. Mayo
Daniel M. Doyle

Armand C. Stalnaker
William B. Walton
E. Ray Kemp, Jr.
Richard O. Donegan
Charles S. Youngblood

Lawrence K. Roos
Donald W. Moriarty, Jr.

Stephen F. Keating
William G. Phillips
Patricia P. Douglas

E. Gerald Corrigan
Thomas E. Gainor

Joseph H. Williams
Paul H. Henson
Caleb B. Hurtt
Christine H. Anthony
Robert G. Lueder

Roger Guffey
Henry R. Czerwinski

Irving A. Mathews
Gerald D. Hines
Chester J. Kesey
Gene M. Woodfin
Carlos A. Zuniga

Ernest T. Baughman
Robert H. Boykin

Cornell C. Maier
Caroline L. Ahmanson
Harvey A. Proctor
Loran L. Stewart
Wendell J. Ashton
Vacancy

John J. Balles
John B. Williams

Hiram J. Honea
Charles D. East
F. J. Craven, Jr.
Jeffrey J. Wells
Pierre M.Viguerie

William C. Conrad

John F. Breen
Donald L. Henry
Robert E. Matthews

Betty J. Lindstrom

Wayne W. Martin
William G. Evans
Robert D. Hamilton

Joel L. Koonce, Jr.
J. Z. Rowe
Carl H. Moore

Richard C. Dunn
Angelo S. Carella
A. Grant Holman
Gerald R. Kelly

*Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; Cranford, New Jersey 07016;
Jericho, New York 11753; Utica at Oriskany, New York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West
Virginia 25311; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202.




A78

Federal Reserve Board Publications
Copies are available from PUBLICATIONS SERVICES.
ROOM MP-510, BOARD OF GOVERNORS OF THE FED­
ERAL RESERVE SYSTEM, WASHINGTON, D.C. 20551.
When a charge is indicated, remittance should accompany

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Annual Statistical Digest
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Lending Functions of the Federal Reserve Banks.
1973. 271 pp. $3.50 each; 10 or more to one address,
$3.00 each.
Improving the Monetary Aggregates: Report of the
A dvisory Committee on Monetary S tatistics .
1976. 43 pp. $1.00 each; 10 or more to one address, $.85
each.
A nnual Percentage R ate Tables (Truth in Lending—
Regulation Z) Vol. I (Regular Transactions). 1969. 100
pp. Vol. II (Irregular Transactions). 1969. 116 pp. Each
volume $1.00; 10 or more of same volume to one ad­
dress, $.85 each.
Federal Reserve Measures of Capacity and Capacity
U tilization. 1978. 40 pp. $1.75 each; 10 or more to one
address, $1.50. each.
The Bank Holding Company Movement to 1978: A
Compendium. 1978. 289 pp. $2.50 each; 10 or more to
one address, $2.25 each.
Improving the Monetary Aggregates: Staff Papers.
1978. 170 pp. $4.00 each; 10 or more to one address,
$3.75 each.
1977 Consumer Credit Survey. 1978. 119 pp. $2.00 each.
Flow of Funds Accounts. 1949-1978. 1979. 171 pp.
$1.75 each; 10 or more to one address, $1.50 each.

A79

C o n su m e r E d u c a t io n P a m ph le ts
Short pamphlets suitable for classroom use. Multiple
copies available without charge.

Alice in Debitland
The Board of Governors of the Federal Reserve System
Consumer Handbook To Credit Protection Laws
The Equal Credit Opportunity Act and . . . Age
The Equal Credit Opportunity Act and . . . Credit Rights in
Housing
The Equal Credit Opportunity Act and . . . Doctors,
Lawyers, Small Retailers, and Others Who May Provide
Incidental Credit
The Equal Credit Opportunity Act and . . . Women
Fair Credit Billing
The Federal Open Market Committee
Federal Reserve Bank Board of Directors
Federal Reserve Banks
Federal Reserve Glossary
How to File A Consumer Credit Complaint
If You Borrow To Buy Stock
If You Use A Credit Card
Truth in Leasing
U.S. Currency
What Truth in Lending Means to You
S t a f f S t u d ie s
Studies and papers on economic and financial subjects that
are o f general interest.

Sum m aries Only P rin ted in the Bulletin
Requests to obtain single copies o f the full text or to be
added to the mailing list fo r the series may be sent to Pub­
lications Services.

The Relationship B etween Reserve Ratios and the
Monetary A ggregates U nder Reserves and Fed­
eral Funds Rate Operating Targets, by Kenneth J.
Kopecky. Dec. 1978. 58 pp.
Tie-ins Between the Granting of Credit and Sales of
Insurance by Bank Holding Companies and Other
Lenders, by Robert A. Eisenbeis and Paul R. Schweitzer.
Feb. 1979. 75 pp.
Geographic Expansion of Banks and Changes in Bank­
ing Structure, by Stephen A. Rhoades. Mar. 1979. 40
pp.
Impact of the Dollar Depreciation on the U.S. Price
Level: An A nalytical Survey of Empirical Esti­
mates, by Peter Hooper and Barbara R. Lowrey. Apr.
1979. 53 pp.
Innovations in Bank Loan Contracting: Recent Evi­
dence by Paul W. Boltz and Tim S. Campbell. May 1979.
40 pp.




Measurement of Capacity U tilization: Problems and
Tasks, by Frank de Leeuw, Lawrence R. Forest, Jr.,
Richard D. Raddock, and Zoltan E. Kenessey. July 1979.
264 pp.
The Market for F ederal Funds and Repurchase
Agreements, by Thomas D. Simpson. July 1979. 106 pp.
Impact of Bank Holding Companies on Competition
and Performance in Banking Markets, by Stephen
A. Rhoades and Roger D. Rutz. Aug. 1979. 30 pp.
The GNMA-Guaranteed Passthrough S ecurity: Mar­
ket Development and Implications for the Growth
and Stability of Home Mortgage L ending , by
David F. Seiders. Dec. 1979. 65 pp.
Foreign Ownership and The Performance of U.S.
Banks, by James V. Houpt. July 1980. 27 pp.

P rin ted in Full in the Bulletin
A n A ssessment of B ank H olding Companies , by
Robert J. Lawrence and Samuel H. Talley. January 1976.

R e p r in t s
Most o f the articles reprinted do not exceed 12 pages.

Measures of Security Credit. 12/70.
Revision of Bank Credit Series. 12/71.
Assets and Liabilities of Foreign Branches of U.S. Banks.
2/72.
Bank Debits, Deposits, and Deposit Turnover—Revised
Series. 7/72.
Yields on Newly Issued Corporate Bonds. 9/72.
Yields on Recently Offered Corporate Bonds. 5/73.
Rates on Consumer Instalment Loans. 9/73.
New Series for Large Manufacturing Corporations. 10/73.
The Structure of Margin Credit. 4/75.
Industrial Electric Power Use. 1/76.
Revision of Money Stock Measures. 2/76.
Revised Series for Member Bank Deposits and Aggregate Re­
serves. 4/76.
Industrial Production— 1976 Revision. 6/76.
Federal Reserve Operations in Payment Mechanisms: A
Summary. 6/76.
New Estimates of Capacity Utilization: Manufacturing and
Materials. 11/76.
The Commercial Paper Market. 6/77.
The Federal Budget in the 1970’s. 9/78.
Redefining the Monetary Aggregates. 1/79.
Implementation of the International Banking Act. 10/79.
Changes in Bank Lending Practices, 1977-79. 10/79.
U.S. International Transactions in 1979: Another Round of
Oil Price Increases. 4/80.
Perspectives on Personal Saving. 8/80.

A80

A n t ic ip a t e d S c h e d u l e o f R e l e a s e D a t e s f o r P e r io d ic R e l e a s e s B o ard of G o v e r n o r s of th e F ed eral R eserv e S ystem 1

W e e k ly R e le a s e

A p p r o x im a te
R e le a s e D a y 2

D a te o r P e r io d
to w h ic h D a ta
R e fe r

Aggregate Reserves and Member Bank Deposits. H.3 (502)

Monday

Week ended previous
Wednesday

Actions of the Board; Applications and Reports H.2 (501)

Friday

Week ended previous
Saturday

Assets and Liabilities of Domestically Chartered Commercial Banks
H.8 (510)

Wednesday

Wednesday, 2 weeks
earlier

Changes in State Member Banks. K.3 (615)

Tuesday

Week ended previous
Saturday

Factors Affecting Bank Reserves and Condition Statement of Federal
Reserve Banks. H.4.1 (503)

Friday

Week ended previous
Wednesday

Foreign Exchange Rates. H.10 (512)

Monday

Week ended previous
Friday

Money Stock Measures. H.6 (508)

Friday

Week ended Wednes­
day of previous week

Selected Borrowings in Immediately Available Funds of Large Member
Banks. H.5 (507)

Wednesday

Week ended Thursday
of previous week

Selected Interest Rates. H. 15 (519)

Monday

Week ended previous
Saturday

Weekly Consolidated Condition Report of Large Commercial Banks
and Domestic Subsidiaries. H.4.2 (504)

Friday

Wednesday, 1 week
earlier

Weekly Summary of Banking and Credit Measures. H.9 (511)

Friday

Week ended previous
Wednesday; and
week ended Wednes­
day of previous week

M o n th ly R e le a s e s

Capacity Utilization: Manufacturing and Materials. G.3 (402)

Mid-month

Previous month

Changes in Status of Banks and Branches. G.4.5 (404)

25th of month

Previous month

Commercial and Industrial Loans to U.S. Addresses Excluding Bank­
ers’ Acceptances and Commercial Paper by Industry. G.27 (429)

1st Wednesday of
month

Last Wednesday of pre­
vious month

Consumer Installment Credit. G. 19 (421)

3rd working day of
month

2nd month previous

Debits and Deposit Turnover at Commercial Banks. G.6 (406)

25th of month

Previous month

Federal Reserve System Memorandum on Exchange Charges. K.14
(628)

5th of month

Period since last release

Finance Companies. G.20 (422)

5th working day of
month

2nd month previous

Foreign Exchange Rates. G.5 (405)

1st of month

Previous month

Release dates are those anticipated or usually met. However, it should be noted that for some releases there is normally a certain
variability because of reporting or processing procedures. Moreover, for all series unusual circumstances may, from time to time, result in
a release date being later than anticipated.




A81

A pproxim ate
R elease D ay

D ate or P erio d
to which D ata
R efer

Industrial Production. G.12.3 (414)

Mid-month

Previous month

Loan Commitments at Selected Large Commercial Banks. G.21 (423)

20th of month

2nd month previous

Loans and Investments at all Commerical Banks. G.7 (407)

20th of month

Previous month

Major Nondeposit Funds of Commercial Banks. G. 10 (411)

20th of month

Previous month

Maturity Distribution of Outstanding Negotiable Time Certificates of
Deposit. G.9(410)

24th of month

Last Wednesday of pre­
vious month

Monthly Report of Condition for U.S. Agencies, Branches, and Domes­ 15th of month
tic Banking Subsidiaries of Foreign Banks. G .ll (412)

2nd month previous

Research Library—Recent Acquisitions. G.15 (417)

1st of the month

Previous month

Selected Interest Rates. G. 13 (415)

6th of month

Previous month

Summary of Equity Security Transactions. G. 16 (418)

Last week of month

Release date

14th of April, July,
October, and Jan­
uary

Previous quarter

Q uarterly R elea ses
Automobile Credit E .4 (114)

Finance Rates and Other Terms on Selected Types of Consumer Install- 25th of January,
ment Credit Extended by Major Finance Companies. E. 10 (120)
April, July, and
October

2nd month previous

Flow of Funds: Seasonally adjusted and unadjusted. Z. 1 (780)

15th of February,
May, August, and
November

Previous quarter

Geographical Distribution of Assets and Liabilities of Major Foreign
Branches of U.S. Banks. E .ll (121)

15th of March,
June, September,
and December

Previous quarter

Finance Rates on Selected Consumer Installment Loans at Reporting
Commercial Banks. E. 12 (122)

15th of March,
June, September,
and December

February, May, Au­
gust, and November

Survey of Terms of Bank Lending. E.2 (111)

15th of March,
June, September,
and December

February, May, Au­
gust, and November

Assets and Liabilities of Commercial Banks, by Class of Bank. E.3.4
(113)

May and November

End of previous De­
cember and June

Check Collection Services—Federal Reserve System. (E.9) 119

February and July

Previous 6 months

List of OTC Margin Stocks. E.7 (117)

April and October

Sem iannual R elea ses

May and November
Assets, Liabilities, and Capital Accounts of Commercial and Mutual
Savings Banks—Reports of Call (Joint Release of the Federal Deposit
Insurance Corporation, the Board of Governors of the Federal Re­
serve System, and Office of the Comptroller of the Currency. Pub­
lished and distributed by FDIC.)




Release date
End of previous De­
cember and June

A82

A pproxim ate
R elea se D ay

D ate or P erio d
to which D ata
R efer

Annual R elea ses
Aggregate Summaries of Annual Surveys of Security Credit Extension.
C.2 (101)

February

End of previous June

Bank Holding Companies and Subsidiary Banks. C.6 (105)

March

Previous year

Insured Bank Income by Size of Bank. C.4 (103)

End of May

Previous year

State Member Banks of Federal Reserve System and Nonmember
Banks that Maintain Clearing Accounts with Federal Reserve Banks
G.4(403)

1st quarter of year

End of previous year

(Supplements issued monthly)

15th of month

Previous month




A83

Index to Statistical Tables
R eferen ces are to p a g e s A -3 through A -7 2 although the prefix “ A ” is o m itte d in this index
ACCEPTANCES, bankers, 10, 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, 11
Nonfinancial corporations, current, 38
Automobiles
Consumer installment 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. government securities)
New issues, 36
Yields, 3
Branch banks
Assets and liabilities of foreign branches of U.S. banks, 56
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
Capital accounts
Banks, by classes, 16, 17, 19, 20
Federal Reserve Banks, 11
Central banks, 68
Certificates of deposit, 23, 27
Commercial and industrial loans
Commercial banks, 15, 18,26
Weekly reporting banks, 20, 21, 22, 23, 24
Commercial banks
Assets and liabilities, 3, 15-19, 20-23, 69-72
Business loans, 26
Commercial and industrial loans, 24, 26
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, 25, 27, 39
Condition statements (See Assets and liabilities)
Construction, 46, 50
Consumer installment credit, 42,43
Consumer prices, 46, 51
Consumption expenditures, 52, 53
Corporations
Profits, taxes, and dividends, 37
Security issues, 36,65
Cost of living (See Consumer prices)
Credit unions, 29,42, 43
Currency and coin, 5, 16,18
Currency in circulation, 4, 13
Customer credit, stock market, 28
DEBITS to deposit accounts, 12
Debt (See specific types o f debt or securities)
Demand deposits
Adjusted, commercial banks, 12, 15, 19
Banks, by classes, 16, 17, 19, 20-23, 69-72
Ownership by individuals, partnerships, and
corporations, 25
Subject to reserve requirements, 14
Turnover, 12



Deposits (See also specific types)
Banks, by classes, 3, 16, 17, 19, 20-23, 29, 69-72
Federal Reserve Banks, 4, 11
Subject to reserve requirements, 14
Turnover, 12
Discount rates at Reserve Banks (See Interest rates)
Discounts and advances by Reserve Banks (See Loans)
Dividends, corporate, 37
EMPLOYMENT, 46, 47
Eurodollars, 27
FARM mortgage loans, 41
Farmers Home Administration, 41
Federal agency obligations, 4, 10, 11, 12, 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, 30, 35
Federal funds, 3,6, 18, 20, 21, 22, 27, 30
Federal Home Loan Banks, 35
Federal Home Loan Mortgage Corporation, 35, 40,41
Federal Housing Administration, 35,40,41
Federal Intermediate Credit Banks, 35
Federal Land Banks, 35, 41
Federal National Mortgage Association, 35, 40, 41
Federal Reserve Banks
Condition statement, 11
Discount rates (See Interest rates)
U.S. government securities held, 4, 11, 12, 32, 33
Federal Reserve credit, 4, 5, 11, 12
Federal Reserve notes, 11
Federally sponsored credit agencies, 35
Finance companies
Assets and liabilities, 39
Business credit, 39
Loans, 20, 21, 22, 42,43
Paper, 25, 27
Financial institutions, loans to, 18, 20-22
Float, 4
Flow of funds, 44, 45
Foreign
Currency operations, 11
Deposits in U.S. banks, 4, 11, 19, 20, 21, 22
Exchange rates, 68
Trade,55
Foreigners
Claims on, 56, 58,61,62,63,67
Liabilities to, 23, 56-60, 64-66
GOLD
Certificates, 11
Stock,4,55
Government National Mortgage Association, 35,40,41
Gross national product, 52, 53
HOUSING, new and existing units, 50
INCOME, personal and national, 46, 52, 53
Industrial production, 46,48
Installment loans, 42,43
Insurance companies, 29, 32, 33,41

A84

Insured commercial banks, 17, 18, 19, 69-72
Interbank loans and deposits, 16, 17
Interest rates
Bonds, 3
Business loans of banks, 26
Federal Reserve Banks, 3, 7
Foreign countries, 68
Money and capital markets, 3, 27
Mortgages, 3, 40
Prime rate, commercial banks, 26
Time and savings deposits, 9, 72
International capital transactions of the United States, 56-67
International organizations, 56-61^ 64-67
Inventories, 52
Investment companies, issues and assets, 37
Investments (See also specific types)
Banks, by classes, 16, 17, 18, 20, 21, 22, 29
Commercial banks, 3, 15, 16, 17, 18
Federal Reserve Banks, 11, 12
Life insurance companies, 29
Savings and loan associations, 29
LABOR force, 47
Life insurance companies (See Insurance companies)
Loans (See also specific types)
Banks, by classes, 16, 17, 18, 20-23, 29
Commercial banks, 3, 15-18, 20-23, 24, 26
Federal Reserve Banks, 3, 4, 5, 7, 11, 12
Insurance companies, 29,41
Insured or guaranteed by United States, 40,41
Savings and loan associations, 29
MANUFACTURING
Capacity utilization, 46
Production, 46, 49
Margin requirements, 28
Member banks
Assets and liabilities, by classes, 16, 17, 18
Borrowings at Federal Reserve Banks, 5, 11
Federal funds and repurchase agreements, 6
Number, by classes, 16, 17, 19
Reserve requirements, 8
Reserves and related items, 3, 4, 5, 14
Mining production, 49
Mobile home shipments, 50
Monetary aggregates, 3, 14
Money and capital market rates (See Interest rates)
Money stock measures and components, 3, 13
Mortgages (See Real estate loans)
Mutual funds (See Investment companies)
Mutual savings banks, 3, 9, 20-22, 29, 32, 33, 41
NATIONAL banks, 17
National defense outlays, 31
National income, 52
Nonmember banks, 17, 18, 19
OPEN market transactions, 10
PERSONAL income, 53
Prices
Consumer and producer, 46, 51
Stock market, 28
Prime rate, commercial banks, 26
Production, 46,48
Profits, corporate, 37
REAL estate loans
Banks, by classes, 18, 20-22, 29,41




Real estate loans—Continued
Life insurance companies, 29
Mortgage terms, yields, and activity, 3,40
Type of holder and property mortgaged, 41
Repurchase agreements and federal funds, 6
Reserve requirements, member banks, 8
Commercial banks, 16, 18, 20,21, 22
Federal Reserve Banks, 11
Member banks, 3, 4, 5, 14, 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, 9, 29, 33, 41, 44
Savings deposits (See Time deposits)
Savings institutions, selected assets, 29
Securities (See also U.S. government securities)
Federal and federally sponsored agencies, 35
Foreign transactions, 65
New issues, 36
Prices, 28
Special drawing rights, 4, 11, 54, 55
State and local governments
Deposits, 19, 20, 21, 22
Holdings of U.S. government 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
Prices, 28
TAX receipts, federal, 31
Time deposits, 3, 9, 12, 14, 16, 17, 19, 20, 21, 22, 23, 69-72
Trade, foreign, 55
Treasury currency, Treasury cash, 4
Treasury deposits, 4, 11, 30
Treasury operating balance, 30
UNEMPLOYMENT, 47
U.S. balance of payments, 54
U.S. government balances
Commercial bank holdings, 19, 20, 21, 22
Member bank holdings, 14
Treasury deposits at Reserve Banks, 4, 11, 30
U.S. government securities
Bank holdings, 16, 17, 18,20,21,22,29,32,33
Dealer transactions, positions, and financing, 34
Federal Reserve Bank holdings, 4, 11, 12, 32, 33
Foreign and international holdings and transactions, 11,
32, 64
Open market transactions, 10
Outstanding, by type and ownership, 32, 33
Rates, 3, 27
Utilities, production, 49
VETERANS Administration, 40,41
WEEKLY reporting banks, 20-24
Wholesale prices, 46, 51
YIELDS (See Interest rates)

A85

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

D is tr ic ts

a n d

T h e ir

B r a n c h

T e r r ito r ie s

Helena
M in n e a p o lis
Detroit
C h ic a g o
\ SaltLake City
Louisville

K an sas

t. L o u is
ZarlotV

Oklahoma City

H ouston !

tan Antonio

January 1978

ALASKA
HAWAII

Legend

Boundaries of Federal Reserve Districts

Federal Reserve Bank Cities

Boundaries of Federal Reserve Branch
Territories

Federal Reserve Branch Cities
Federal Reserve Bank Facility

©

Board of Governors of the Federal Reserve
System