Full text of Federal Reserve Bulletin : December 1978

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DECEMBER 1978

FEDERAL RESERVE

BULLETIN
Nonbank Thrift Institutions in 1977 and 1978
Foreign Exchange Operations: Interim Report




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The BULLETIN may be obtained from the Division of Administrative Services, Board of Governors of the
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of the Board of Governors of the Federal Reserve System in a form collectible at par in U . S . currency.
(Stamps and coupons are not accepted.)




N U M B E R 12 •

V O L U M E 64 •

DECEMBER 1978

FEDERAL RESERVE

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

PUBLICATIONS COMMITTEE
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 FEDERAL RESERVE BULLETIN 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. Direction for the art work is provided
by Mack R. Rowe. Editorial support is furnished by the Economic Editing Unit headed by Mendelle T. Berenson.




Table of Contents
927

N O N B A N K THRIFT INSTITUTIONS
IN 1 9 7 7 A N D

1978

Unlike the pattern in previous periods of
rising interest rates, deposit flows at savings and loan associations and mutual
savings banks were robust until the end
of 1977, weakened through the second
quarter of 1978, and since June have accelerated again.
937

STAFF ECONOMIC

STUDIES

The study analyzes "The Relationship between Reserve Ratios and the Monetary
Aggregates under Reserves and Federal
Funds Rate Operating Targets" based on
a multi-asset portfolio model of the financial sector.
939

TREASURY A N D FEDERAL

RESERVE

O P E R A T I O N S : INTERIM R E P O R T

This report describes the market's pessimism toward the dollar until November 1,
when authorities of the United States and
several other industrial countries reinforced a major new eflort to correct the
falling dollar.
943

S T A T E M E N T TO C O N G R E S S

Chairman G. William Miller states that the
measures undertaken to strengthen the
dollar abroad will also help to control the
persistently high domestic rate of inflation, before the Joint Economic Committee, December 15, 1978.
947

R E C O R D OF POLICY A C T I O N S OF THE
FEDERAL O P E N MARKET

COMMITTEE

At the meeting on October 17, 1978, the
Committee decided that the existing
ranges for M-2 and M-3 provided for rates
of monetary growth over the year ahead



that were consistent with a moderation of
inflation under the President's program.
Thus, the Committee adopted ranges of
6!/2 to 9 per cent for M-2 and I V 2 to 10
per cent for M-3 for the period from the
third quarter of 1978 to the third quarter
of 1979. The Committee also indicated
that it expected growth of M-1 to be within
a range of 2 to 6 per cent over that period.
That range was both lower and wider than
the range of 4 to 6V2 per cent that had
been adopted in July, in recognition of the
uncertainty concerning the size and speed
of the expected shift of deposits from
demand to savings accounts resulting from
the introduction of ATS. The associated
range for commercial bank credit was %Vi
to 1IV2 per cent. The Committee also
decided that growth of M - 1 + within a
range of 5 to I V 2 per cent appeared to be
generally consistent with the ranges of
growth for the other monetary aggregates.
With respect to policy for the short run,
the Committee agreed to instruct the
Manager to seek a Federal funds rate of
around 9 per cent early in the period before
the next regular meeting and subsequently
to maintain the rate within a range of 8 3 A
to 9lA per cent. With regard to the specific
objective for the Federal funds rate within
that range, the Committee instructed the
Manager to be guided mainly by a range
of tolerance for the annual rate of growth
in M-2 over the October-November period
of 5V2 to 9V2 per cent, provided that the
rate of growth in M-l over that period did
not exceed 6V2 per cent.
On November 1 the Treasury and the
Federal Reserve announced a broad program to strengthen the dollar in foreign
exchange markets and thereby to counter
continuing domestic inflationary pressures.
As part of this program, the Committee
raised the range
for the Federal

funds rate to 9^2 to 9 3 A per cent and
instructed the Manager, in deciding on the
specific objective for the rate within that
range, to be guided by developing conditions in domestic and international financial markets.
962

LAW

Adoption of a simplified version of the
reports of condition and income for use
by small member banks.
Change in early-withdrawal penalty rule
for certain types of time deposits.
Admission of two State banks to membership in the Federal Reserve System.

DEPARTMENT

Change in frequency of issuance of the
Federal Reserve Chart Book.

Amendments to Regulations D, E, and K
and bank holding company and bank
merger orders and pending cases.
989

Publication of consumer pamphlet,
You Use a Credit Card."

ANNOUNCEMENTS

Transmission to Congress of tentative
schedule of prices for Federal Reserve
check and automated clearinghouse services.

997

Examination procedures developed by
Federal regulators of banks and thrift institutions under the Community Reinvestment Act.

A1

Revisions of Regulation K to conform
with certain provisions of the International
Banking Act. (See Law Department.)
Statement by the three bank regulatory
agencies indicating steps taken and
planned to implement the International
Banking Act of 1978.
Data available from a survey by the bank
regulatory agencies on foreign lending by
large U.S. banks as of June 30, 1978.
Deferral of Board action on amendments
to Regulation Z (Truth in Lending).
Publication of Improving the Monetary
Aggregates: Staff Papers and the Annual
Statistical Digest,
1973-1977.
Changes in Board staff.
Meeting of the Consumer Advisory Council.




INDUSTRIAL

4

'If

PRODUCTION

Output increased approximately 0.7 per
cent in November.
FINANCIAL AND BUSINESS

STATISTICS

A3 Domestic Financial Statistics
A46 Domestic Nonfinancial Statistics
A54 International Statistics
A70

B O A R D OF G O V E R N O R S A N D S T A F F

A72

O P E N M A R K E T COMMITTEE A N D
ADVISORY

A73

FEDERAL

STAFF;

COUNCILS

RESERVE

BANKS,

BRANCHES,

A N D OFFICES

A74

FEDERAL RESERVE BOARD

A79

I N D E X TO STATISTICAL T A B L E S

A81

I N D E X TO V O L U M E

A92

M A P OF F E D E R A L R E S E R V E

INSIDE B A C K

PUBLICATIONS

64

SYSTEM

COVER:

Guide to Tabular Presentation and Statistical Releases

Nonbank Thrift Institutions in 1977 and 1978
Sherry S. Atkinson, of the Capital
Markets
Section of the Division of Research and Statistics, prepared this article.
The pattern of deposit growth at savings and
loan associations and mutual savings banks
during the past 2 years has differed significantly
from the experience of previous periods of rising
interest rates. Yields on open market securities
have increased steadily since early 1977 and
now stand well above the maximum rates payable on deposit accounts at thrift institutions.
Despite these increases in market rates, deposit
flows remained relatively robust until the end
of 1977, when they began to weaken; this
weakness persisted through the second quarter
of 1978. With the introduction of a variableceiling certificate account on June 1, 1978,
however, deposit growth has accelerated to relatively strong levels.
The atypical deposit flows of 1977 and 1978
may be explained in large part by changes in
account structure that have resulted from regulatory actions during the 1970's. Following the
introduction of a number of time-account categories in the early years of the decade, the
proportion of total outstanding deposits in accounts with longer maturities has increased
considerably. This development has enhanced
the stability of deposit growth in periods when
market yields begin to rise. In addition, the
ability of thrift institutions to compete for funds
during periods of high interest rates has been
bolstered by the most recent adjustment in
deposit-rate regulations, which allows depositary institutions to issue 6-month certificates
whose ceiling rate varies weekly with Treasury
bill rates.
With greater flexibility in acquiring both deposits and nondeposit funds, savings and loan
associations and mutual savings banks have
reduced their mortgage lending activity only
moderately with the recent rise in interest



rates—in contrast to earlier periods of credit
stringency. Lending by these institutions had
reached a record level in late 1977 in response
both to sizable deposit inflows and to strong
mortgage loan demand. From late 1977 through
the third quarter of 1978, mortgage lending
contracted somewhat, largely in lagged response
to slower deposit flows; nevertheless, the thrift
institutions maintained a high level of mortgage
lending by relying more heavily on nondeposit
liabilities and by limiting their acquisition of
liquid assets. Moreover, the increased flow of
funds since the introduction of the 6-month
money market certificates has allowed the thrift
institutions to replenish liquid assets and to
increase mortgage lending commitments.
The money market certificates have been a
relatively expensive source of funds, in large
measure because they have attracted deposits
that otherwise would have been held in loweryielding accounts. However, the profitability of
the thrift industry had grown appreciably over
the 3 years prior to the introduction of the new
certificates, reaching historically high levels
during the first half of 1978. Given the record
favorable spread between the average cost of
funds and the return on funds in mid-1978,
most thrift institutions apparently have thus far
absorbed the additional cost of the money market certificates with little difficulty. Moreover,
the 6-month certificate has attracted new
funds—or maintained existing funds—that otherwise might have been diverted to alternative
investments. Thus, the new instrument allows
the institutions to extend more mortgage loans
at current high rates of interest, and consequently profitability over the longer run may
well be enhanced.
Credit unions only recently have been authorized to issue money market certificates, in
an effort to avoid a repetition of the net outflow
of deposits in October. Prior to that time, the
percentage growth in shares at credit unions had

928

Federal Reserve Bulletin • December 1978

outpaced deposit growth at other thrift institutions, continuing the trend of recent years. The
authorization to issue money market certificates
is one in a series of regulatory actions that have
broadened the asset and liability powers of
credit unions in 1977 and 1978.

1. Growth of deposits
Savings and loans and mutual savings banks combined
Seasonally adjusted annual rates, per cent
11 40

RAPID PORTFOLIO EXPANSION:
1977 Q1 through 1977 Q 3
Portfolio expansion of savings and loan associations and mutual savings banks remained
strong in the first three quarters of 1977 in spite
of increases in open market interest rates (Table
1). The strength in deposit growth underlying
this expansion was concentrated primarily in

1. Sources and uses of funds
Billions of dollars at seasonally adjusted annual rates
1977
runas

Ql

Q2

Q3

Q4

Q2

Q3

40.2
19.5
1.1
60.7

54.3
11.5
4.6
70.5

.8
50.2
5.5
56.5

7.6
50.6
2.5
60.7

15.5
49.1
5.9
70.5

8.2
4.5
12.7

6.9
1.9
8.8

11.6
1.5
13.1

.5
8.1
1.5
10.3

4.5
6.8
1.1
12.7.

.5
6.9
1.4
8.8

4.0
7.9
1.2
13.1

Ql

50.2
-1.7
3.5
52.0

51.5
6.1
3.9
61.4

Savings and loan associations
35.7
50.4
59.7
42.3
2.6
8.7
17.8
15.7
4.9
5.1
4.4
5.0
63.9
67.4
64.5
56.5

6.1
43.2
2.6
52.0

10.5
46.8
4.1
61.4

8.8
54.9
.3
63.9

13.0
.7
13.7

11.6
2.7
14.3

10.7
.7
11.4

5.8
4.1
3.7
13.7

8.1
2.5
3.7
14.3

2.8
7.2
.9
11.4

6.0
.4
6.4

7.1
.4
7.5

7.0
.4
7.4

Credit iunions
8.9
8.3
.4
.5
9.4
8.8

9.2
.5
9.7

8.3
.5
8.7

6.0
.5
6.5

.9
4.9
.5
6.4

.4
6.6
.4
7.5

-.4
7.3
.4
7.4

3.7
5.2
.4
9.4

1.5
7.7
.4
9.7

-1.5
9.8
.4
8.7

- 4
6.4
.4
6.5

SOURCES

Deposits
Borrowed funds 1
Other sources, n e t 2
Total

1978

iy/o

USES

Cash and investments 3
Mortgages 4
Other 5
Total
SOURCES

Deposits
..
Other sources, n e t 6
Total

6.0
58.2
3.2
67.4

-.3
60.7
4.2
64.5

Mutual savings banks
9.4
12.8
1.0
.9
13.8
10.3

USES

Cash and investments 7
Mortgages
Other 8
Total
..
SOURCES

Shares
Current surplus
Total

3.9
8.0
1.5
13.8

USES

Cash and liquid assets tf
Consumer c r e d i t . . ,
Mortgages
Total

1
Includes net changes in Federal home loan bank advances,
security repurchase agreements, bank loans, and corporate
bond liabilities.
2
Includes net changes in miscellaneous liabilities, profit
taxes payable, and current surplus less net change in assets
not set out separately under " u s e s . "
3
Includes net changes in deposits and currency, U . S .
Treasury and agency securities, State and local government
securities, open market paper, Federal funds, and repurchase
agreements.
4
Includes net change in mortgages less net change in loans
in process.




1.7
6.7
.4
8.8

5
Includes net changes in consumer credit and miscellaneous
assets.
6
Includes net changes in miscellaneous liabilities and general reserve accounts less net change in other assets not set
out separately under 4 ' u s e s . "
7
Includes net changes in cash and deposits, U . S . Treasury
and agency securities, State and local government securities,
commercial paper, and security repurchase agreements.
8
Includes net changes in corporate bonds and stock, consumer credit, and miscellaneous assets.
9
Includes net changes in demand deposits and currency,
savings and loan shares, and U . S . Government securities.

Nonbank Thrift Institutions

time accounts (Chart 1). The relatively rapid
growth in time deposits compared with passbook accounts continued a trend that has been
evident in the 1970's (Table 2). This restructuring of deposits has helped moderate deposit
outflows when interest rates begin to rise, owing
to the higher yields available on time deposits
and the substantial penalties exacted for withdrawal prior to maturity.
In the third quarter of 1977, deposit inflows
at both savings and loan associations and mutual
savings banks were exceptionally strong, even
though short-term interest rates by this time
exceeded ceiling rates on passbook and shorterterm time accounts (Chart 2). Although the
reasons for this strength in deposit growth remain uncertain, the number of thrift institutions
offering longer-term certificates at ceiling rates
did increase noticeably during this period. Also,
the relative growth of deposits at commercial
banks and at thrift institutions suggests that the
latter attracted a disproportionately large share
of the funds from 4-year certificates that were
maturing during the period. These deposits had
been acquired between July 1 and November
1, 1973, when 4-year certificates with minimum
denominations of $ 1 , 0 0 0 had no ceiling rate of
interest and became known as "wild cards."
They may have been especially interest sensitive, and therefore, those funds remaining in
deposit form upon maturing may have flowed
predominantly into thrift institutions because of
the interinstitutional differential in rate ceilings
of lA of a percentage point.
Net acquisitions of mortgages by savings and
loan associations and mutual savings banks accelerated throughout the first three quarters of
1977 to record levels. The demand for mortgage
funds, which was quite strong throughout this

2. Deposit mix at savings and loans
and mutual savings banks
Per cent of total deposits in time accounts

Year-end
1972
1973
1974
1975
1976
1977




FSLlC-insured
savings and loans

Mutual savings
banks

49.4
53.3
55.9
57.3
59.7
62.1

25.1
32.0
34.4
36.1
38.6
40.8

929

2. Treasury yields and deposit rate ceilings
Per cent per annum

Years to maturity
Ceilings are effective yields after compounding.

period, was associated not only with the expansion of residential construction, but also with
household borrowing against inflated equity in
the stock of existing homes. (See "Household
Borrowing in the Recovery," F E D E R A L R E SERVE B U L L E T I N , March 1978.) Even with the
rapid growth in mortgages, the strength in deposit flows enabled thrift institutions to continue
accumulating liquid assets. As a result, the
liquidity ratio at savings and loan associations
insured by the Federal Savings and Loan Insurance Corporation (FSLIC)—defined as the ratio
of cash and eligible liquid assets relative to
deposits and short-term borrowings—remained
in the range of 9 lA to 9 3 A per cent on a seasonally adjusted basis, well above the legal requirement of 7 per cent (Chart 3). By the end
of the third quarter, however, the rate of acquisition of cash and liquid assets by savings and
loan associations had begun to slow perceptibly.
Although the thrift institutions in general did
not rely heavily upon borrowed money during
these three quarters, a number of savings and
loan associations did increase their use of such
alternative sources of funds as security repurchase agreements (Rp's) and mortgage-backed
bonds. Funds raised with Rp's increased an
estimated $ 1 . 0 billion between December 1976
and September 1977. In addition, issuance of
mortgage-backed bonds in the first three quarters
of 1977 amounted to $600 million, about five
times the total amount issued previously by
savings and loan associations. These relatively
new instruments, which generally have had ma-

930

Federal Reserve Bulletin • December 1978

3. Liquidity of FSLIC-insured savings and loans
Per cent

Average liquidity ratio is cash and liquid assets eligible to
satisfy FHLBB regulatory requirements as a per cent of deposits plus borrowings payable within 1 year; seasonally adjusted.

turities of 5 to 10 years, are collateralized by
mortgages in the portfolios of the savings and
loan associations issuing the obligations.

DEPOSIT FLOW SLOWDOWN:
1977 Q 4 to 1978 Q 2
From the later months of 1977 through the
spring of 1978, deposit flows into thrift institutions weakened markedly as open market interest rates moved well above regulatory ceilings
on most deposit accounts. On a seasonally adjusted basis, deposit flows at savings and loan
associations and mutual savings banks combined fell from an average annual rate of $65.6
billion during the first three quarters of 1977
to $47.6 billion over the next three quarters
(Table 1). Short-term yields, which had surpassed the ceiling rate on passbook accounts in
the third quarter of 1977, rose to a level approximately 1 lA percentage points above that
ceiling by mid-1978. In response, net inflows
to passbook accounts had virtually ceased by
the first quarter of 1978. Moreover, intermediate-term market interest rates moved above
maximum rates payable on time deposits of all
maturities over this period, depressing the
growth of these accounts (Chart 2). Total deposit growth at savings and loan associations




and mutual savings banks declined to the
slowest rates since 1974 (Chart 4).
Mortgage lending activity reacted with a
characteristic lag to the decline in deposit
growth. For the first time in about 3 years, net
deposit flows and mortgage repayments—the
two major sources of funds to savings and loan
associations—failed to keep pace with mortgage
loan commitments. Consequently, the ratio of
outstanding commitments to future 3-month
cash flow from these sources began to rise
significantly in the fourth quarter of 1977, and
the associations started to reduce their commitment activity by early 1978 (Chart 5). Thus,
outstanding commitments at these institutions,
including loans in process, peaked at a record
$33.7 billion, seasonally adjusted, in December
1977. Net mortgage acquisitions by both savings and loan associations and mutual savings
banks, which reached an unprecedented annualized flow of $68.8 billion in the fourth quarter
of 1977, declined in the first quarter of 1978
by nearly 20 per cent—owing in part to
weather—and remained approximately at that
lower level in the second quarter. Even so, net
mortgage acquisition was still quite high and
was stronger than might have been anticipated
on the basis of past relationships between lending and deposit flows.
Thrift institutions were able to limit the decline in mortgage lending during this threequarter period in large part by borrowing exten4. Rates of deposit growth
Savings and loans and mutual savings banks combined
Per cent

1974

1976

1978

Seasonally adjusted annual rates based on month-end data.

Nonbank Thrift Institutions

5. Mortgage commitments and cash flow
Savings and loans
Billions of dollars

931

the first quarter of 1978, and a record $1.0
billion in the second quarter of 1978.
Liquidity positions at savings and loan associations and mutual savings banks deteriorated
throughout this period. Despite increases in the
dollar holdings of cash and investment securities
in the first half of 1978, the aggregate liquidity
ratio at FSLIC-insured savings and loan associations declined steadily on a seasonally adjusted
basis from 9.6 per cent in August 1977 to 8.3
per cent in May 1978 (Chart 3). The average
spread between actual and required liquidity
ratios for these institutions narrowed to an historical low in April 1978 prior to a reduction
in the required ratio to 6.5 per cent effective
May 1. Liquidity at mutual savings banks followed a similar trend.

EARNINGS INCREASED
THROUGH MID-1978
Commitments are as of the end of the month and include loans
in process. Cash flow includes mortgage repayments and net
changes in deposits in subsequent 3 months. Data are seasonally adjusted.

sively from the Federal home loan banks. From
September 1977 through mid-1978, outstanding
advances rose nearly $10 billion on a seasonally
adjusted basis to a record $26.2 billion. During
this period, the home loan banks made it known
to member institutions that advances would
likely remain available to help offset the pressures of the slowdown in deposit flows. Meanwhile, borrowings by savings and loan associations from other sources increased, especially
through Rp's.
Savings and loan associations also were able
to sustain their mortgage originations over this
period by selling more mortgages than they
purchased. Associations in California and certain other western States primarily accounted for
most of the increased volume of mortgage sales
in secondary markets; however, savings and
loan associations in other areas also increased
their mortgage sales relative to purchases. Net
sales of mortgages by the savings and loan
industry as a whole amounted to $0.5 billion
in the fourth quarter of 1977, $0.3 billion in




The profitability of savings and loan associations
and mutual savings banks—as measured by the
ratio of net income to average assets—began
a steady improvement in 1975, reaching an
historic high during the first half of 1978 (Chart
6). Despite the heavier reliance of thrift institutions on borrowed funds, which in general are
more expensive than deposits in periods of relatively high interest rates, the spread between
average mortgage returns and the average cost
of funds has risen steadily since the end of 1974.
6. Earnings of thrift institutions

932

Federal R e s e r v e Bulletin • D e c e m b e r 1978

At FSLIC-insured savings and loan associations
this spread reached a record high of 185 basis
points in the first half of 1978 (Table 3).
The profit margins of mutual savings banks
have remained significantly below those of savings and loan associations, a longstanding relationship that can be attributed to several factors.
Mutual savings banks are located primarily in
the large financial centers of the Northeast,
where there is intense competition for savings

3. Earnings position of FSLIC-insured
and loan associations

savings

Per cent

Cost of
funds 1

Interest
return on
mortgages

.life
4.76
4.66

(2)

(3)

1967
HI
H2

6.00
6.02

1.24
1.36

1968
HI
H2

4.71
4.76

6.08
6.17

1.37
1.41

1969
HI
H2

4 82
4.94

6.29
6.40

1.47
1.46

1970
HI
H2

5.24
5.36

6.50
6.62

1.26
1.26

1971
HI
H2

5.38
5.37

6.75
6.86

1.37
1.49

1972
HI
H2

5.39
5.37

6.93
7.02

1.54
1.60

1973
HI
H2

5.46
5.72

7.10
7.23

1.64
1.51

1974
HI
H2

6.00
6.28

7.35
7.51

1.35
1.23

1975
HI
H2

6.31
6.34

7.59
7.74

1.28
1.40

6.35
6.40

7.87
8.03

1.52
1.63

6.39
6.48

8.14
8.28

1.75
1.80

6.54

8.39

1.85

Period

Col. 2 less
col. 1

among the thrift institutions and where depositors are apparently sensitive to fluctuations in
yields on alternative investments. As a result,
during periods of high interest rates, these institutions experience relatively large deposit outflows and thus are limited in acquiring new
higher-yielding assets.
In addition, more than half of the assets of
the savings bank industry are in institutions in
New York State, where an &V2 per cent usury
ceiling has made it more difficult to earn a
market rate of return during periods of credit
stringency. 1 The greater concentration of savings and loan associations in the western and
southern States, where housing demand and
deposit growth have been relatively strong, has
enabled these institutions to earn higher profits
by maintaining a larger proportion of their portfolios in new, higher-yielding assets.
Despite increases in the level of earnings, the
capital position of thrift institutions—measured
as the ratio of net worth at savings and loan
associations, or general reserve accounts at mutual savings banks, to assets—has declined secularly (Chart 7). In early 1977, net worth relative to assets at savings and loan associations
leveled off at roughly 5.5 per cent, down a full
percentage point from early 1972. The decline
in the capital position of mutual savings banks
has been less pronounced, perhaps because of
their relatively weaker growth in deposits. Since
the beginning of 1977, the ratio of general
reserve accounts to assets of savings banks has
ranged between 6.7 and 6.8 per cent, only
slightly less than the 1972 ratio and down less
than V2 of a percentage point from the highs
experienced in 1974. However, the capital position of mutual savings banks has weakened
markedly from the ratio of 8.5 per cent recorded

1976
HI
H2

1977
HI

H2
1978
HI
1

Interest and dividends paid on savings, FHLB advances,
and other borrowed money as a per cent of average savings
and borrowings.




1
Mutual savings banks in N e w York State may hold
out-of-State—defined as nonadjoining-State—conventional mortgages in amounts up to 2 0 per cent of assets.
Furthermore, there is no limit on the dollar volume of
Government-underwritten mortgages, adjoining-State
mortgages, and mortgage-backed securities in portfolios
of N e w York State savings banks; and savings banks
may acquire limited amounts of corporate obligations,
municipal securities, U . S . Government securities, and
Federal agency securities.

Nonbank Thrift Institutions

7. Capital positions of thrift institutions

Capital positions are net worth as a per cent of assets for
savings and loan associations and general reserve accounts as
a per cent of assets for mutual savings banks. Data are for
end of period.

in the early 1960's and those of 9.0 to 9.5 per
cent in the 1950's.

THE REGULATORY
IN M I D - 1 9 7 8

CHANGES

In the face of markedly weakened deposit
growth and sharply increased reliance on
nondeposit funds, the Federal regulatory agencies authorized the issuance of two new certificates at commercial banks and thrift institutions
beginning June 1, 1978. These certificates were
designed to aid depositary institutions in attracting and retaining funds—especially during
periods of high interest rates—and to reduce the
potential for a serious disruption of mortgage
credit flows. The longer of the two certificates—the 8-year account—has a minimum denomination of $1,000 and carries a ceiling rate
of 8 per cent at thrift institutions and 13A per
cent at commercial banks. Even so, open market
rates on securities with comparable maturity
climbed above the ceiling rates on this instrument shortly after its introduction (Chart 2). As
a result, sales of this long-term certificate probably have been relatively sluggish, attracting
little additional money to the institutions.
In contrast, the other new time account—the
6-month money market certificate—was designed to yield a competitive return regardless




933

of open market rates. The maximum rates payable on newly issued money market certificates
vary weekly with the average discount yield on
newly issued 6-month Treasury bills. Thrift
institutions may pay a nominal yield of up to
25 basis points above the average discount rate
set in the weekly auction of 6-month Treasury
bills while commercial banks may pay interest
at the discount rate on such instruments. Depositary institutions may compound interest on
the money market certificate as on any other
deposit account. The minimum denomination of
the 6-month time deposit is $10,000, the same
as that for 6-month Treasury bills.
Surveys indicate that many depositary institutions have adopted this new instrument. At
the end of October, an estimated 75 per cent
of commercial banks, including almost all of
the large institutions, were offering the variable-ceiling certificate. Participation by thrift
institutions was also widespread, with roughly
90 per cent of savings and loan associations and
almost 70 per cent of mutual savings banks
issuing the money market certificate. Moreover,
the majority of institutions offering the 6-month
instrument were paying the maximum allowable
yields. These yields have increased sharply
since introduction of the new certificate (Chart
8), so that maximum effective yields at thrift institutions, which were about 13A per cent in June,
have since risen over 2 l A percentage points.
8. Yield on money market certificates
Thrift institutions

Per cent

Yields correspond to regulatory ceilings assuming continuous
compounding of interest on the basis of a 360-day year.

934

Federal R e s e r v e Bulletin • D e c e m b e r 1978

rate) since June, compared with about 6 per cent
earlier in 1978. In light of the sharp increases
in open market interest rates since mid-1978,
markedly weaker deposit growth would have
been expected in the absence of the new instrument; during previous periods of comparable
open market yields, deposit growth at thrift
institutions was in the range of roughly 3 to
5 per cent.
In the third quarter of 1978, thrift institutions
apparently used most of the proceeds of the
certificate sales to rebuild liquid assets and to
moderate their borrowing. In part this may reflect a normal lag in adjusting mortgage loan
originations following an unanticipated surge in
deposits; it likely also reflects a desire to repair
some of the damage done earlier in the year
to their balance sheets. Sizable increases were
recorded in cash and liquid assets at both mutual
savings banks and savings and loan associations. As a result, the liquidity ratio at FSLICinsured savings and loan associations, seasonally adjusted, increased for the first time this
year (Chart 3). At mutual savings banks, cash
and short-term investment securities rose relative to outstanding deposits.

DEPOSIT FLOWS R E B O U N D
The money market certificate has attracted a
sizable volume of deposits in its first 5 months
(Table 4). Through October 1978, sales at thrift
institutions are estimated to have totaled about
$34 billion, accounting for about 6 per cent of
total deposits outstanding at these institutions.
To a large extent, the growth of money market certificates at thrift institutions represents a
shifting of deposits from other accounts. Such
a shift is suggested by the recent pattern of
growth in time and passbook account deposits:
in the first 2 months of certificate issuance,
passbook deposits declined by an average annual rate of more than 15 per cent, while time
deposits grew at an average rate of more than
30 per cent (Chart 1). The institutions themselves have estimated that the proportion of
certificate sales representing new money—that
is, money new to the individual institutions—ranges from about 25 to 35 per cent for
mutual savings banks to about 4 0 to 50 per cent
for savings and loan associations. These percentages may not be a reliable gauge of the
aggregate impact on deposit flows, however, for
they include transfers of funds between like
institutions, and more important, they make no
allowance for the retention of shifted passbook
or maturing certificate dollars that might otherwise have been diverted to high-yielding open
market instruments.
An examination of aggregate data on thrift
institutions suggests that the money market certificate has had a significant positive impact on
the deposit growth of thrift institutions. The
combined growth of savings and loan associations and mutual savings banks has averaged
around 12% per cent (seasonally adjusted annual

With the enlarged flow of deposits to the
institutions, borrowing from Federal home loan
banks and others has declined significantly.
Following a seasonally adjusted increase in
home loan bank advances of about $ 6 . 0 billion
in the first 5 months of 1978, advances have
risen by less than $ 4 . 0 billion in the second 5
months. Over the same period, borrowing from
other sources has also dropped off markedly.
Outstanding mortgage commitments at savings and loan associations, which had been
declining since the end of 1977, bottomed out

4. Estimated inflows into money market certificate accounts
Billions of dollars except as noted
Certificates outstanding,
end of October

Inflows 1
Institution
Commercial banks
Savings and loans
Mutual savings b a n k s . . .
All

June

July

August

September

October

Amount

Per c e n t 2

2.1
4.9
1.6
8.6

3.4
6.0
1.9
11.3

2.3
3.1
1.5
6.9

1.9
4.0
1.1
7.0

4.2
6.9
2.8
13.9

13.9
24.9
8.9
47.7

3.5
5.9
6.4
5.0

1
Inflows into certificates at commercial banks and mutual savings banks through the last Wednesday of the month. Estimates
of the sales of certificates at savings and loan associations based on sample data for 247 large associations.
2
Per cent of total outstanding small-denomination time and savings deposits for commercial banks.




Nonbank Thrift Institutions

with the initial pick-up in deposit flows in June
and since then have risen appreciably on a
seasonally adjusted basis (Chart 5). Net mortgage acquisitions, on the other hand, have followed the normal lagged pattern, showing little
change in the third quarter of 1978.
However, to the extent that the money market
certificates stimulate the flow of funds to the
thrift institutions during periods of high interest
rates, the availability of residential mortgage
credit should be greater than in past periods of
comparable credit stringency. With the new
certificates, thrift institutions may book highyielding mortgages at a time when they otherwise would have been forced to contract their
portfolios.

EFFECT OF M O N E Y M A R K E T
CERTIFICATES O N EARNINGS
The money market certificates, which have increased the cost of funds to the thrift institutions, probably have cut into earnings. The
greatest cost impact is associated with the shifting of funds that otherwise would have remained
in passbook accounts or rolled over into time
accounts at the same institutions. For example,
funds that previously earned an effective yield
after compounding of no more than about 5l/i
per cent in passbook deposits, would have
earned effective yields averaging more than 83A
per cent if they had been transferred into money
market certificates between June and December
of this year. The cost burden of such shifting
has likely been heaviest for mutual savings
banks—especially those located in market areas
where there is intense competitive pressure to
offer the new certificates at ceiling rates. Compared with savings and loan associations, mutual savings banks have a greater proportion of
total deposits in large passbook accounts and
therefore are more vulnerable to costly deposit
shifting. With profit margins lower at savings
banks than at savings and loans, increases in
the cost of funds have a larger relative impact
on savings bank earnings. Moreover, the
spread between maximum effective rates paid
on newly issued money market certificates and
mortgage yields has narrowed fairly steadily




935

since June and in some parts of the country may
not now cover the cost of intermediation. Even
in the short run, however, the negative impact
on thrift institution earnings from the declining
rate of return on assets is mitigated by increased
accumulation of assets.
As a result of these earnings pressures, some
thrift institutions have become less aggressive
in advertising and promoting the certificates.
Scattered reports suggest that, in addition, a
number of thrift institutions have offered less
than maximum allowable rates, set purchase
maximums, or totally suspended certificate issuance. Competitive pressures in many market
areas have restricted this development. And
with the beginning of rollovers in early December, a number of institutions have again
stepped up promotion of the money market
certificate.
From a longer-run perspective, the new certificates could increase earnings over time, as
short-term interest rates decline, because they
have allowed the institutions to book more
high-yielding mortgages with an average life of
8 to 12 years. For this reason, many thrift
institutions intentionally may accept a negative
rate spread temporarily (when the cost of money
market certificates exceeds the mortgage yield)
in order to promote long-run profitability. The
relatively strong earnings position of thrift institutions, at least in the aggregate, permits such
a strategy. In contrast, during other periods in
which short-term interest rates exceeded longterm rates, the institutions experienced deposit
outflows and contractions in mortgage lending.

CONTINUED GROWTH AT
CREDIT UNIONS
In line with the trend of recent years, the percentage growth in shares of credit unions continued to outpace deposit growth at the other
thrift institutions. Share account balances at
credit unions increased $7.7 billion during
1977, representing a gain of 19.6 per cent.
Although share growth moderated to an annual
rate of 16.7 per cent in the face of high and
rising market interest rates during the first 9
months of 1978, it has remained well in excess

936

Federal Reserve Bulletin • December 1978

of the growth rate at savings and loan associations and mutual savings banks (Chart 9).
However, credit unions experienced net deposit
outflows in October, and consequently the National Credit Union Administration authorized
Federally chartered credit unions to offer the
6-month money market certificate beginning
November 20. Credit unions may issue certificates at the thrift-institution ceiling rate in minimum denominations of $10,000.
Consumer lending, the primary investment
outlet for credit unions, surged dramatically in
response to the exceptionally strong demand for
instalment credit that has marked the present
economic expansion. Credit unions increased
their outstanding consumer loans by a record
annual total of $6.5 billion during 1977, and
net lending accelerated to a seasonally adjusted
annual rate of $8.7 billion during the first half
of 1978 before moderating to $6.4 billion during
the third quarter. Loan-to-share ratios at credit
unions have climbed markedly during the past
2 years in the face of this heightened lending
activity, while the ratios of liquid assets to total
assets have declined to historic lows.
Since late 1977 the National Credit Union
Administration has authorized Federally chartered credit unions to offer a wider variety of
fixed-ceiling share accounts and has relaxed the
constraints on mortgage lending. In addition to
the traditional share account, which is similar
to a passbook savings account at other institutions, Federal credit unions now are permitted
to offer share certificates with maturities of 90
days or longer. The interest rate ceiling on these




9. Deposit growth at thrift institutions
Per cent

Seasonally adjusted annual rates.

certificates is 13A per cent—8 per cent for individual retirement and Keogh accounts—in contrast to the 7 per cent ceiling on regular share
accounts. In addition, some credit unions now
may offer "share draft" accounts, which permit
the depositor to withdraw funds via third-party
payments. Also, Federal credit unions have
been given authority to make 30-year residential
mortgage loans, an activity already permitted
for certain State-chartered credit unions. Previously, Federal credit unions had been limited
to 10-year maturities on such loans.
Finally, the Congress has recently enacted
legislation that would create a central liquidity
facility to meet the temporary and emergency
liquidity needs of credit unions. The facility
will provide these thrift institutions with a lender
of last resort designed to improve the financial
stability of its members.
•

937

Staff Economic Studies
The research staffs of the Board of Governors
of the Federal Reserve
System and of the
Federal Reserve Banks undertake studies that
cover a wide range of economic and financial
subjects,
and other staff members
prepare
papers related to such subjects. In some instances the Federal Reserve System
finances
similar studies by members
of the
academic
profession.
From time to time the results of studies that
are of general interest to the economics
profession and to others are summarized—or
they
may be printed in full—in this section of the
FEDERAL RESERVE

STUDY

BULLETIN.

In all cases the analyses and conclusions
set
forth are those of the authors and do not
necessarily indicate concurrence by the Board
of Governors,
by the Federal Reserve
Banks,
or by the members of their staffs.
Single copies of the full text of each of the
studies or papers summarized
in the B U L L E TIN are available in mimeographed
form. The
list of Federal Reserve Board publications
at
the back of each B U L L E T I N includes a separate section entitled uStaff Economic
Studies"
that enumerates
the papers prepared on these
studies for which copies are currently
available
in mimeographed
form.

S U M M A R Y

THE RELATIONSHIP BETWEEN RESERVE RATIOS
A N D THE M O N E T A R Y AGGREGATES UNDER RESERVES A N D
FEDERAL F U N D S RATE OPERATING TARGETS
K E N N E T H J. K O P E C K Y — S t a f f , B o a r d o f

Governors

Prepared

1978

as a staff paper

in the summer

of

This paper examines the theoretical relationship
between the required reserve ratios of banks
against demand and time deposits and both the
average level and the short-run variability (unexpected movements around the average level)
of a monetary aggregate such as demand deposits. The analysis is developed under two alternative Federal Reserve operating targets—reserves and Federal funds rate—and is based on
a multi-asset portfolio model of the financial
sector.
For the reserves operating target, the analysis
shows that both the level and the variability of
demand deposits are inversely related to the




demand deposit reserve ratio. Under this
operating target if one aim of policy were to
minimize demand deposit variability, the demand deposit reserve ratio should be set at its
upper limit—a result consistent with findings
that have been reported in the literature.
The analysis presented in this paper finds a
striking difference for the demand deposit reserve ratio in the case of a Federal funds rate
operating target. Under this operating target,
both the level and the variability of demand
deposits are either unaffected by or positively
related to the demand deposit reserve ratio.
Thus, a lowered reserve ratio against demand

938

Federal Reserve Bulletin • December 1978

deposits may lead to a reduction in demand
deposit variability.
Essentially, under a reserves operating target
causality runs from a policy-determined level
of bank reserves to an induced quantity of
deposits. The size of the resulting quantity of
deposits depends on the size of the reserve ratio,
with a higher reserve ratio inducing a smaller
quantity of deposits. For a funds rate operating




target, causality basically runs in the opposite
direction: deposits to reserves. Given the quantity of deposits demanded by the public at the
policy-determined level of the funds rate, sufficient reserves are created to enable banks to
satisfy their reserve requirements. Under a funds
rate operating target, the size of the reserve ratio
determines principally the size of the induced
quantity of reserves.
•

939

Treasury and Federal Reserve
Foreign Exchange Operations: Interim Report
This interim report, covering the period August
through October 1978, is the twelfth of a series
providing information on Treasury and System
foreign exchange operations to supplement the
regular series of semiannual reports that are
issued usually in March and September. It was
prepared by Alan R. Holmes, Manager,
System
Open Market Account,
and Executive
Vice
President in charge of the Foreign Function of
the Federal Reserve Bank of New York, and
Scott E. Pardee, Deputy Manager for Foreign
Operations of the System Open Market
Account
and Vice President in the Foreign Function of
the Federal Reserve Bank of New York.

During the 3-month period under review, market pessimism toward the dollar deepened. As
selling pressure intensified, dollar rates plunged
to record lows against several currencies, exceeding any levels justified by underlying economic conditions. On November 1, the U.S.
authorities reinforced a major new effort, in
coordination with the authorities of .several other
industrial countries, to correct what President
Carter termed "the excessive decline of the
dollar." The November 1 package was broadly
well received, and good two-way trading was
soon restored with the dollar at levels significantly above the lows at the end of October.
The market's pessimism during the August-October period reflected the persistence of
serious economic imbalances among major industrial nations. For some time, market participants and government officials alike had expressed concern over the differential rates of
economic growth between the United States,
which had posted a solid expansion since 1975,
and most other industrial countries, where
growth had been disappointingly slow. This




1. Federal Reserve
reciprocal currency arrangements
Millions of dollars

Institution

Amount
of facility,
Increases,
Oct. 31, 1978' Nov. 1, 1978

Austrian
National
Bank of
National
Bank of

National Bank
Bank of Belgium
Canada
Bank of Denmark
England

250
1,000
2,000
250
3,000

Bank of
German
Bank of
Bank of
Bank of

France
Federal Bank
Italy
Japan
Mexico

2,000
4,000
3,000
2,000
360

Amount
of facility,
Nov. 1, 1978
250
1,000
2,000
250
3,000

2,000
3,000

2,000
6,000
3,000
5,000
360

Netherlands Bank
Bank of Norway
Bank of Sweden
Swiss National Bank

500
250
300
1,400

Bank for International Settlements:
Swiss francs/dollars
Other authorized European
currencies/dollars

600

600

1,250

1,250

Total

22,160

2,600

7,600

500
250
300
4,000

29.760

difference in growth performance, coupled with
special factors such as the earlier jump in the
U.S. oil import bill, had contributed to a massive imbalance in trade and current accounts
among the industrial countries, with the United
States in substantial deficit and others—such as
Japan, Germany, and Switzerland—in substantial surplus.
The dollar exchange rates against the currencies of these countries had already declined
substantially over the previous year, but the
effects of these changes on trade balances had
not yet fully materialized. Moreover, the dollar's decline was contributing to the quickening
of inflation in this country. By contrast, in other
countries price performance was improving,
particularly where the appreciations of currencies lowered import costs.
Many market participants had become skeptical that these disparities in price trends would
be reversed in the near term and perceived a

940

Federal Reserve Bulletin • December 1978

considerable downslide risk for the dollar. Professional dealers, therefore, became reluctant to
buy and hold dollars whenever the dollar came
on offer. Trading in dollars became increasingly
one way. Some market participants found that
they could profit by selling dollars short, while
others sought to protect themselves against further erosion of the value of their assets by
shifting into foreign currencies and other commodities such as gold. Beginning in September,
the tensions in the dollar market were compounded by a renewed burst of speculation over
a possible realignment of currencies within the
European Community (EC) "snake" as a prelude to the broader European Monetary System
under negotiation by EC members. The German
mark was revalued against the other snake currencies on October 15, but the reversal of the
earlier positions had barely begun by the end
of the month.
By late summer, however, underlying conditions were beginning to improve, and there was
reason to expect that the improvement would
continue. Economic expansion in Germany and
Japan was more solidly based and the governments were introducing additional stimulative
measures. For Japan export and import volumes
were beginning to respond to the exchange-rate
change. At the same time, the growth of the
U.S. economy was moderating. Following the
bulge in the U.S. trade deficit early this year,
import demand was beginning to slacken while
exports were expanding rapidly. Moreover, further stabilization measures were being taken by
the U.S. authorities. Monetary and fiscal policies were progressively tightened. The Congress
passed the long-awaited energy bill. On October
24, President Carter announced a comprehensive
anti-inflation program, including additional
budgetary restraints and the introduction of voluntary wage and price guidelines.
Throughout the 3-month period, the Treasury and the Federal Reserve continued to intervene to counter disorderly conditions in the
New York market in operations conducted by
the Foreign Exchange Trading Desk of the Federal Reserve Bank of New York. These operations were mainly in German marks, on behalf
of both the Federal Reserve and the Treasury,




using balances acquired from correspondents or
drawing on the respective swap arrangements
with the German Federal Bank. The Desk also
intervened in New York in Swiss francs both
for the Federal Reserve, drawing on the swap
line with the Swiss National Bank, and for the
Swiss National Bank. In all, the Desk operated
on 31 of the 64 business days during the period,
selling on behalf of the U.S. authorities a total
of $2,204.4 million equivalent of German marks
and $294.2 million equivalent of Swiss francs.
By the end of October, however, the decline
of the dollar had clearly been excessive against
a number of major currencies. From the earlyAugust levels, the dollar had fallen by a net
18 per cent against the German mark, 17 per
cent against the Swiss franc, and 7 per cent
against the Japanese yen. Moreover, the dollar
had declined generally vis-a-vis other major
European currencies: against the French franc
by 10 per cent, the pound sterling by 8 per cent,
and the Italian lira by 6 per cent. And, in view
of the prevailing mood and trading conditions
in the exchange markets, few expected the dollar's slide to stop on its own or be reversed
over the short run.
For the United States, the dollar's decline
threatened to undermine the effort to curb inflation, including the newly announced voluntary
wage and price control program. It also threatened to undercut the efforts of the Japanese,
German, Swiss, and other governments to stimulate domestic growth. Consequently, by late
October the U.S. authorities were in close consultation with their counterparts in other countries, and the essential elements of a coordinated
approach to correct the situation were in place
by the end of the month.
On the morning of November 1, President
Carter, the U.S. Treasury, and the Federal Reserve announced various actions to be taken.
The President emphasized the link between this
program and the broader anti-inflation policies
of the U.S. Government as well as the fact that
the program had been developed and would be
implemented in close cooperation with major
governments and central banks abroad. The
program featured a further tightening of monetary policy, including a 1-percentage-point in-

Foreign Exchange

2. Foreign exchange operations:
Summary, July 31-October 31, 1978
Millions of dollars equivalent; data are on a transaction-date basis.

Type of transaction
Reciprocal currency
arrangements
Commitments outstanding,
July 31, 1978
Drawings or repayments ( - )
Aug. 1-Oct. 31, 1978
Commitments outstanding,
Oct. 31, 1978
U.S. Treasury swap arrangement
Commitments outstanding,
July 31, 1978
Drawings or repayments ( - ) ,
Aug. 1-Oct. 31, 1978
Commitments outstanding,
Oct. 31, 1978

Transactions with
German Federal Bank

r1,157.5
1
-551.9
1,256.1

197.0
796.9
343.5
650.4
Transactions with
Swiss National Bank

Reciprocal currency
arrangements
Commitments outstanding,
July 31, 1978
Drawings or repayments ( - ) ,
Aug. 1-Oct. 31, 1978
Commitments outstanding,
Oct. 31, 1978
Special swap arrangement
Commitments outstanding,
July 31, 1978
Repayments, Aug. 1-Oct. 31, 1978
Commitments outstanding,
Oct. 31, 1978
U.S. Treasury securities (foreign
currency series)
Commitments outstanding,
July 31, 1978
Issues or redemptions ( - )
Aug. 1-Oct. 31, 1978
Commitments outstanding,
Oct. 31, 1978

22.9
294.2
317.0

278.8
-91.9
186.9

850.4
-137.5
712.9

crease in the Federal Reserve discount rate to
an historic high of 9Vi per cent and a $30 billion
package of foreign currency resources to finance
U.S. participation in coordinated intervention in
the exchange markets. For the Federal Reserve,
this comprised a $ 7 . 6 billion increase in the
swap network through increases in the swap
arrangements with the German Federal Bank by
$2 billion to $6 billion, with the Bank of Japan
by $3 billion to $5 billion, and with the Swiss
National Bank by $ 2 . 6 billion to $4 billion. The
Federal Reserve also announced the activation
of the swap arrangement with the Bank of
Japan. For its part, the Treasury announced that
it would draw $3 billion from the U.S. reserve
position with the International Monetary Fund
and sell $2 billion equivalent of special drawing
rights to mobilize balances of German marks,
Japanese yen, and Swiss francs. The Treasury
also announced that it would issue foreign currency-denominated securities up to $10 billion.




Operations

941

The Desk followed up the announcements
with active intervention in the New York market
in German marks, Swiss francs, and Japanese
yen. These operations were fully coordinated
with intervention by other central banks in their
own markets and in N e w York for their own
account. The dollar rebounded sharply, and
there were similar favorable responses in U . S .
financial markets generally. Over the next days
the central banks occasionally found it necessary
to respond forcefully. Gradually, however, the
market came into better balance, with good
two-way trading at levels well above the lateOctober lows. The technical conditions alone
favored a firm dollar, as the covering of previous
short positions and unwinding of commercial
leads and lags began to bolster the demand for
dollars. But the central banks remained prepared
to intervene quickly and in size whenever renewed selling pressure on the dollar threatened
to erupt. By November 30, the dollar had advanced 11% per cent against the German mark,
\5l/2 per cent against the Swiss franc, and IW2
per cent against the Japanese yen.
As indicated, in intervention operations during the August-October period, the Desk of the
Federal Reserve Bank of N e w York sold German marks and Swiss francs on behalf of the
U.S. authorities. Of the $ 2 , 2 0 4 . 4 million
equivalent sales of German marks, $ 1 , 3 1 8 . 4
million was for the account of the Federal Reserve and $ 8 8 6 . 0 million for the Treasury. Of
the Federal Reserve's sales, $ 1 , 1 5 7 . 5 million
equivalent was financed by drawings under the
swap line with the German Federal Bank. The
rest was financed by balances acquired from
correspondents. However, the Federal Reserve
was able to liquidate a total of $551.9 million
of swap debt in marks from other acquisitions
of marks from correspondents during the 3month period. Consequently, net drawings by
the System in marks for the period amounted
to $605.6 equivalent, raising the total to $1
256.1 million equivalent by October 31.
Similarly, the Treasury financed $796.9 million of its intervention in marks by drawings
on its swap arrangement with the German Federal Bank, with the rest coming from balances.
The Treasury's repayment of previous swap

942

Federal R e s e r v e Bulletin • D e c e m b e r 1978

debt amounted to $343.5 million equivalent
during the 3-month period. Total debt under the
Treasury's swap line rose by a net of $ 4 5 3 . 4
million equivalent to $ 6 5 0 . 4 million equivalent
at the end of October.
In Swiss francs, the Federal Reserve sales of
$294.2 million equivalent were financed by further drawings on the swap arrangement with the
Swiss National Bank. The System's swap debt
for current operations in Swiss francs rose from
$22.9 million of francs in early August to
$ 3 1 7 . 0 million equivalent on October 31.
In addition, the Federal Reserve and the U.S.
Treasury continued with the program agreed to
in October 1976 for an orderly repayment of
pre-August 1971 Swiss franc-denominated liabilities still outstanding with the Swiss National
Bank. The Federal Reserve liquidated $91.9
million equivalent of special swap debt with the
Swiss central bank, leaving $186.9 million
equivalent of indebtedness still outstanding as
of October 31. These repayments were financed
with francs purchased directly from the Swiss
National Bank mainly against dollars but also
against marks. The Treasury used Swiss francs
purchased directly from the Swiss central bank
to repay $137.5 million equivalent of franc-




3. Net profits and losses (-) on U.S. Treasury
and Federal Reserve foreign exchange
operations, August 1 through October 31,
1978
Millions of dollars

Institution

Federal Reserve
Exchange Stabilization
Fund

Current
operations

Liquidations of
foreign currency
debts outstanding
as of Aug. 15, 1978

-15.3

-92.8

-3.2

-129.7

denominated securities, leaving $712.9 million
equivalent of these obligations still outstanding
as of October 31.
In view of the dollar's depreciation, repayments of earlier obligations in German marks
and Swiss francs led to realized net losses for
the Federal Reserve and the U.S. Treasury in
operations during the August-October period.
For the Federal Reserve, these losses amounted
to $15.3 million on current operations and $92.8
million on liquidations of the longer-term Swiss
franc indebtedness. For the Treasury, the realized net losses amounted to $3.2 million on
current operations and $129.7 million on liquidation of the longer-term Swiss franc indebtedness.
•

943

Statement to Congress
Statement by G. William Miller,
Chairman,
Board of Governors of the Federal
Reserve
System, before the Joint Economic
Committee
of the U.S. Congress, December 15, 1978.
Mr. Chairman, members of this committee,
thank you for the opportunity to participate in
this important dialogue. At present, the economy is at a critical juncture. Economic growth
has continued at a moderate pace, but the rate
of inflation is unacceptably high and poses an
ever-growing threat to our social and economic
structure. While the challenge for public policy
is clearly formidable, these problems are not
insurmountable. The Federal Reserve, for its
part, is continuing to pursue a monetary policy
that aims at a reduction of inflationary pressures
while encouraging continued economic growth
and high levels of employment.
The rise in economic activity has been both
vigorous and generally well balanced since the
present expansion began in early 1975. The
sharp swings in inventories and production that
have ended previous cyclical upswings have
been avoided. Growth in the latter part of this
year—well into the fourth year of expansion—
has moderated, but this represents a desirable
adjustment in the pace of activity, given the
intensification of inflationary pressures, the rise
in capacity use, and the decline in unemployment that has occurred over the expansion period.
The persistence and recent intensification of
high inflation has been the most serious problem
in the present expansion. Consumer price increases generally remained in the 6V2 per cent
range over the 1975-77 period, but these prices
have risen at a 9V2 per cent pace thus far this
year. Some of this acceleration can be attributed
to weather-related disturbances and to unexpected developments in the farm sector. Labor
cost pressures also have played an important




role as wage gains have moved up to about 8Vi
per cent during a period when growth in productivity has slowed to a virtual standstill. At
the same time, Government-mandated increases
in the minimum wage and in payments for social
security and unemployment insurance have
added a further premium to labor compensation.
Finally, the cumulative depreciation of the dollar's foreign exchange value has had an adverse
impact on domestic prices that has yet to run
its course.
Looking ahead, there is a threat that wage
demands could be further escalated, especially
with a heavy collective bargaining calendar for
1979 in an environment where inflationary expectations are intense. Cost pressures are also
likely to be further exacerbated by another round
of legislated increases in payroll taxes and the
minimum wage. However, the Government's
over-all anti-inflation program holds out the real
hope that inflationary pressures can be contained
and that the groundwork can be laid for gradual
attainment of price stability. The success of the
program requires cooperation, perseverance,
and patience from all groups of our society. An
important new ingredient of the program is the
quantitative standards. If adhered to, these
standards could very well help unwind the intractable spiral of wages and prices. But it is
particularly important that the program recognize that Government actions can, in themselves, be important sources of inflation; consequently, fiscal restraint and regulatory reform
are essential components of this comprehensive
set of proposals.
Inflation in the United States not only has
eroded the value of the dollar domestically but
has also been associated with a decline in its
international value. The drop in the exchange
value of the dollar, in turn, adversely affected
the domestic price level. It raised the cost of
imported goods and also resulted in a further

944

Federal Reserve Bulletin • December 1978

ratcheting up of domestic prices for those goods
competing with imports. While the dramatic
drop of late October underscored the problem
of deteriorating international confidence in the
value of the dollar, the period of decline in this
current episode dates back to late September
1977.
From that date to its low in late October of
this year, the dollar's exchange value declined
21 per cent on a weighted-average basis against
the currencies of the Group of Ten countries and
Switzerland. Against some individual currencies, of course, the decline was even greater,
amounting to 26 per cent against the German
mark, 34 per cent against the Japanese yen, and
38 per cent against the Swiss franc. Since important external imbalances between the United
States and major foreign countries have existed
for several years—most notably differential
growth and, more recently, disparate inflationary trends—some depreciation of the dollar
could be viewed as a necessary correction.
However, by midsummer it was clear that the
dollar's decline was continuing in trading that
was increasingly disorderly. Consequently, in
August the Federal Reserve announced a halfpoint increase in the discount rate and an elimination of reserve requirements on Euro-dollar
borrowings. At the same time, the Treasury
indicated that it would increase and extend its
regular monthly gold auctions.
These measures, which produced a brief rally
and then a few weeks of stability for the dollar,
were followed by another rise in the discount
rate, of 3A of a percentage point, between midSeptember and mid-October. But the dollar's
slide soon resumed, and it dropped alarmingly
to a level well below that warranted by basic
economic considerations. As a result, the severity of this latest decline threatened to undercut the anti-inflation program at home and lead
to an even greater erosion of confidence abroad.
Under these circumstances, more forceful action was clearly necessary. Accordingly, on
November 1 the Federal Reserve increased the
discount rate 1 percentage point and imposed
a supplementary reserve requirement of 2 per
cent on large time deposits. In addition, the




Federal Open Market Committee voted to take
further actions to tighten conditions in the
money market and thereby to resist excessive
expansion of money and credit. Furthermore,
in order to provide a substantial increase in
foreign exchange available to finance exchange
market intervention, swap lines were increased
with the central banks of Germany, Japan, and
Switzerland by a total of $7.6 billion. The U.S.
Treasury simultaneously announced its intention
to draw a portion of the U.S. reserve position
in the International Monetary Fund, to sell special drawing rights, and to issue foreign currency-denominated securities. Over all, $30
billion in key foreign currencies was mobilized
by the United States for forceful, coordinated
intervention to support the dollar in foreign
exchange markets. In addition, the Treasury
announced a further step-up in its rate of gold
sales.
The objective of this coordinated set of
measures was to correct the excessive depreciation of the dollar as part of the governmental
effort to reduce upward pressures on domestic
prices and to restore confidence at home and
abroad. When viewed in its entirety, the policy
initiatives of the administration and the Federal
Reserve provide a clear message that U.S. economic policy is one that recognizes fully the
need for an integrated approach in dealing with
foreign and domestic economic problems.
The measures taken on November 1 produced
a dramatic jump in the dollar's exchange value.
On that day alone the dollar advanced by 5 per
cent on a weighted-average basis and by about
the same amount against the mark, yen, and
Swiss franc. Substantial cooperative central
bank intervention over the following few weeks
provided support for the dollar as market participants tested the authorities' resolve. The
strength of the dollar generally has been sustained as the market appears to have adjusted
to a more favorable outlook generated by the
recent policy measures.
To date, the observable repercussions in domestic capital markets also have been generally
favorable. In the stock market, most composite
share-price measures are up from the November

Statement to Congress

1 announcement date following relatively sharp
declines in the preceding 2 weeks. Short-term
interest rates have moved as much as 1 percentage point higher since the announcement; however, over this same period interest rates for
longer-term maturities have been essentially
unchanged. The comparative stability of most
long-term bond rates, as well as the improvement in the dollar's exchange value, is most
encouraging and suggests that we may be beginning to reduce inflationary expectations.
A downward adjustment of price expectations
is an essential condition to slow the treadmill
of inflation, and monetary policy has an important role to play in this regard. However, at the
same time, the Federal Reserve will continue
to encourage a moderate expansion of over-all
activity, thus also facilitating the achievement
of the Nation's longer-run goals of growth and
full employment. Moreover, as I have emphasized before, monetary policy should not be
expected to shoulder the burden alone, and to
be effective, it must also be accompanied by
prudent restraint of fiscal policy.
Since April, credit conditions have become
progressively tauter as Federal Reserve policies
have allowed market rates to rise appreciably
in order to help restrain expansion in money
and credit. Yields on most short-term market
instruments, such as Federal funds and commercial paper, have risen more than 3 percentage points during this period, while interest rates
at the longer end of the maturity spectrum
generally have risen by less than a percentage
point.
Experience over recent years has taught us,
however, that in an inflationary environment,
expectational considerations tend to buffer the
impact of high interest rates on spending. Expectations of rising prices of real assets may
induce borrowers to incur high interest costs,
as is illustrated by the sustained pace of activity
in the housing market thus far this year. Indeed,
real interest rates—or observed rates adjusted
to take account of inflation—appear to be generally lower than in prior periods, especially if
taxes are taken into consideration.
Not only have expectations of borrowers and




945

lenders changed in the course of the current
expansion but also monetary institutions have
been given additional flexibility to compete for
funds. This has helped smooth adjustments of
credit markets to developing tightness and, as
a result, has helped avoid the repetition of
4
'credit crunch" episodes such as in 1969 and
1973-74. The new 6-month money market certificates, introduced half a year ago, have buttressed deposit growth at mortgage lending institutions when prevailing market interest rates
might otherwise have produced disintermediation. Consequently, total housing starts have
remained at a very high rate—2 million units—
during the first three quarters of this year.
Building activity may soon begin to decline, but
the drop-off next year should be relatively moderate, making it unlikely that the economy will
be thrown into a recession by a sharp housing
cycle.
Furthermore, signs generally remain on the
positive side for consumer spending, as real
consumption outlays currently are rising at
about the pace of over-all demands. Nonetheless, this represents a marked slowdown from
the rate of expansion earlier in the current
upswing. Near-term growth in consumer spending probably will be somewhat restrained by
high debt repayment burdens as well as by
efforts to boost personal savings rates back to
more normal levels.
In the business sector, capital spending activity continues to be characterized by substantial
momentum as equipment orders have moved up
briskly in recent months and construction contracts have been maintained at a high level.
However, the early surveys of 1979 investment
plans suggest that businessmen maintain a lingering caution about embarking on major expansion programs. These surveys—largely
taken before the November 1 measures—undoubtedly reflected the uncertainty associated
with an economy plagued by high inflation.
On balance, private demands appear healthy
at present, but a further moderation of growth
is likely over the year ahead. In this environment the Federal Reserve will continue to strive
for a gradual deceleration of monetary and credit

946

Federal Reserve Bulletin • December 1978

expansion in an effort to facilitate an easing of
inflationary pressures. We believe that the actions taken in late October and early November
will prove to be instrumental in the restoration
of both domestic price stability and orderly




conditions in foreign exchange markets. At the
same time, you can be assured that recent
measures in the international area were designed
to reinforce and not to sacrifice the achievement
of longer-term domestic aims.
•

947

Record of Policy Actions
of the Federal Open Market Committee
MEETING HELD ON OCTOBER 17, 1978
1. D o m e s t i c P o l i c y D i r e c t i v e
The information reviewed at this meeting suggested that output
of goods and services had expanded moderately in the third quarter,
but that the rate of growth appeared to be somewhat below the
average annual rate of about 4% per cent estimated by the Commerce Department for the first two quarters of the year. The rise
in average prices—as measured by the fixed-weight price index
for gross domestic business product—was rapid in the third quarter,
although it was well below the annual rate of about 12 per cent
in the second quarter.
Staff projections for the year ending in the third quarter of 1979
were little changed from those of a month earlier. They continued
to suggest that output of goods and services would grow somewhat
more slowly than over the first three quarters of 1978. The rate
of inflation was expected to remain rapid, although also moderating
a bit from its pace thus far in 1978. The unemployment rate was
projected to change little from its September level.
In September the index of industrial production increased an
estimated 0 . 5 per cent, close to the average rate of expansion in
the preceding 4 months. Nonfarm payroll employment changed
little in September following relatively small increases in July and
August. In manufacturing, employment was essentially unchanged
in September and the average workweek held steady at an advanced
level. The unemployment rate edged up from 5 . 9 to 6 . 0 per cent,
the rate prevailing on the average since the first quarter of the
year.
Total private housing starts declined slightly in August, but they
remained above an annual rate of 2 million units. Sales of new
houses fell for the third consecutive month; however, a surge in
sales of existing dwellings raised total sales of single-family homes
to a new high.
The dollar value of total retail sales was estimated to have
increased considerably in September following the large rise now




948

Federal Reserve Bulletin • December 1978




indicated for August. For the third quarter as a whole, however,
the advance in retail sales was substantially below the exceptional
gain in the second quarter. Unit sales of new automobiles fell in
September to an annual rate well below the average pace since
early spring.
Newly revised data suggested that the index of average hourly
earnings of private nonfarm production workers had risen at an
annual rate of 7.9 per cent through September 1978 compared with
an increase of 7.4 per cent for 1977 as a whole. In August, as
in July, the consumer price index rose more moderately than in
most earlier months of the year, as prices of some foods declined
substantially. In September, however, producer prices of food
products turned up sharply and contributed to a marked rise in
prices of producer finished goods. Announcement of a new Government program aimed at moderating increases in prices and wages
was expected to be made shortly after this meeting.
The trade-weighted value of the dollar against major foreign
currencies fell substantially from mid-September to mid-October
in frequently volatile exchange markets. The U.S. trade deficit
declined sharply in August, reversing the pronounced increase in
July; for the 2 months the deficit was close to the rate for the
second quarter and well below the high rate for the first quarter.
The expansion in total credit at U.S. commercial banks, which
had slowed in August, accelerated in September nearly to the pace
experienced on the average in earlier months of the year. Bank
investments and security loans rose in September after having
declined in August, while growth in real estate and business loans
moderated only slightly from the rapid rates recorded in other recent
months. Outstanding commercial paper of nonfinancial businesses
rose somewhat in September following a small decline in August.
Growth in the narrowly defined money supply ( M - l ) accelerated
further in September to an annual rate of about 14 per cent from
8.5 per cent in August. However, data for early October suggested
a sharply reduced growth rate in the current month. Inflows of
the interest-bearing deposits included in M-2 and M-3 remained
strong in September, and growth in the broader monetary aggregates also accelerated somewhat.
At its meeting on September 19 the Committee had decided on
ranges of tolerance for the annual rates of growth in M - l and M-2

Record of Policy Actions of FOMC

during the September-October period of 5 to 9 per cent and 6V2
to IOV2 per cent, respectively. The Committee had agreed that early
in the coming inter-meeting period operations should be directed
toward a Federal funds rate of around 8V2 per cent, slightly above
the prevailing level of about 83/s per cent. Subsequently, if the
2-month growth rates of M-1 and M-2 appeared to be significantly
above or below the midpoints of the indicated ranges, the objective
for the funds rate was to be raised or lowered in an orderly fashion
within a range of 8V4 to 8 3 A per cent.
Following the September 19 meeting the Manager of the System
Open Market Account began to seek bank reserve conditions
consistent with an increase in the weekly-average Federal funds
rate to around 8I/2 per cent. As September progressed, incoming
data suggested that growth in M - l would be around the upper limit
of the range specified by the Committee and that growth in M-2
would be in the upper portion of its range. Accordingly, the
Manager sought reserve conditions consistent with further increases
in the Federal funds rate, and by late September the rate was around
8% per cent, the upper limit of the inter-meeting range specified
by the Committee. During the first half of October the objective
for the funds rate remained 8% per cent, although on many days
the rate was above or below that level for technical reasons.
A considerable rise in interest rates on most short-term market
instruments was associated with the increase in the Federal funds
rate during the inter-meeting period. Yields on Treasury and corporate bonds also moved somewhat higher, but they remained
below their July peaks. Yields on State and local government bonds
changed little, reflecting in part a markedly reduced volume of
new issues. In late September commercial banks increased the rate
on loans to prime business borrowers from 9V2 to 93A per cent;
in mid-October this rate was raised further to 10 per cent.
The Board of Governors announced an increase in Federal
Reserve Bank discount rates from 13A to 8 per cent on September
22 and a further increase to 8I/2 per cent on October 13. Both
actions were taken primarily to bring the discount rate into closer
alignment with other short-term interest rates, but also in recognition of conditions affecting the dollar in foreign exchange markets.
The Board indicated in addition that the increase of V2 percentage
point in mid-October was approved in light of the continued high




949

950

Federal Reserve Bulletin • December 1978




rate of inflation and the recent rapid expansion of the monetary
aggregates.
In the Committee's discussion of the economic situation and
outlook, the members generally agreed that real output of goods
and services was likely to grow moderately over the year ending
in the third quarter of 1979, at a rate about or a little below that
projected by the staff. Given their expectations for output, the
members anticipated that over the period the unemployment rate
would change little from its recent level or would increase somewhat. All members expected that average prices of goods and
services would continue to rise rapidly.
Despite the general agreement that real output was likely to grow
moderately over the next four quarters, some members cited elements in the current situation that could contribute to a downturn
in activity before the end of the period. It was pointed out, for
example, that the current business expansion—now well into its
fourth year—had lasted for a long time by historical standards and
that the dynamics of business fluctuations suggested that a downturn
might well develop sometime within the coming year. Also, business-cycle history provided little encouragement for the expectation
that growth in output could gradually be slowed to a pace more
or less consistent with its long-run potential and with relative
stability in the unemployment rate. Moreover, rapid inflation was
viewed as a serious threat to the sustainability of the expansion
in output, although buying of goods might be buoyed for a time
by anticipation of further price increases.
At the same time, attention was drawn to favorable elements
in the economic situation. Specifically, housing starts and residential construction had been maintained at higher levels than had
been expected earlier, and the outlook for business fixed investment
seemed to have strengthened lately. Altogether, final sales apparently had picked up in recent months while growth in output
had moderated, tending to improve prospects for activity in the
months immediately ahead. Finally, there were grounds for believing that improvement in the net export position would lend strength
to domestic output.
At this meeting the Committee reviewed its 12-month ranges
for growth in the monetary aggregates. At its meeting in July 1978
the Committee had specified the following ranges for the period




Record of Policy Actions of FOMC

from the second quarter of 1978 to the second quarter of 1979:
M - l , 4 to 6V2 per cent; M-2, 6V2 to 9 per cent; and M-3, I V 2
to 10 per cent. The associated range for growth in commercial
bank credit was 8V2 to I I V 2 per cent. The ranges being considered
at this meeting were for the period from the third quarter of 1978
to the third quarter of 1979.
In contemplating ranges for growth of the monetary aggregates
over the year ahead, the Committee faced unusual uncertainties.
First, commercial banks were authorized to introduce an automatic
transfer service (ATS) on November 1, although there was a chance
that introduction would be stayed by court action; and in the closing
days of the session of the Congress just ended, Federally chartered
depositary institutions in New York State were authorized to offer
NOW accounts. ATS would provide for automatic shifts of funds
from interest-earning savings accounts to demand accounts, and
thus would enable customers to hold much lower balances in
demand accounts. This service, therefore, seemed likely to alter
substantially the relationship between growth of M - l and growth
of nominal GNP.
Second, no authoritative information was yet available on the
President's new program to moderate increases in wages and prices,
which was expected to be announced shortly after this meeting.
In the Committee's discussion of longer-run ranges, the point was
stressed that the program would have its greatest potential for
moderating inflationary expectations if it were perceived by the
public as an additional measure in the campaign against inflation
and not as a substitute for fiscal and monetary restraint.
With respect to ATS, a staff analysis had suggested that during
a transition period a significant shift in funds from demand deposits
to savings deposits at commercial banks was almost sure to occur,
but its size was uncertain. Therefore, the rate of growth of M - l
over the year ahead was likely to be lower than otherwise, but
the amount of the reduction could be within a fairly wide range.
Growth of M-2, on the other hand, might be raised marginally,
reflecting minor shifts of deposits from nonbank thrift institutions
to savings accounts at commercial banks. It appeared unlikely that
growth of M-3 would be noticeably affected.
A new measure of money, designated M - l + , had been developed
by the staff to provide background information with regard to the

951

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Federal Reserve Bulletin • December 1978




behavior of money, particularly the transactions demand for money,
during the transition period. Growth of this aggregate—defined as
M-1 plus savings deposits at commercial banks, NOW accounts
at nonbank thrift institutions, and demand deposits at mutual
savings banks—would not be affected by shifts from demand
deposits to savings deposits at commercial banks.
Members of the Committee suggested different approaches to
take account of the uncertainties noted above in setting the longerrun ranges for the aggregates. One proposal was to adopt ranges
for M - l , M-2, and M-3 as before, in the expectation that introduction of ATS would have little effect on growth of the aggregates
in the few months before the Committee would again consider its
longer-run ranges. Under this approach, a supplementary range for
growth in M - l adjusted for estimated effects of ATS and a range
for growth in M - 1 + might be indicated as "memorandum items"
for monitoring purposes.
Another proposal was to drop M - l from the list of aggregates,
adopting longer-run ranges only for M-2 and M-3 at this time.
It was suggested, along with this proposal, that additional work
on the concepts and measurement of money be undertaken with
a view to adopting new measures when the Committee next considered its longer-run ranges.
Additional proposals involved retaining M - l and adopting ranges
for M - l , M-2, and M-3 as before, with specific adjustments to
take account of the special uncertainties. One proposal was to adjust
downward both the upper and the lower limits of the range for
M - l by an estimate of the probable effects of ATS. Another was
to widen the range for M - l , chiefly by reducing the lower limit.
A third was to couple such a widening of the range for M - l with
notation of a supplementary range for M-l4- to aid in evaluating
the behavior of both M - l and M-2.
At the conclusion of the discussion, the Committee decided that
the existing ranges for M-2 and M-3 provided for rates of monetary
growth over the year ahead that were consistent with a moderation
of inflation under the President's program. Thus, the Committee
adopted ranges of 6V2 to 9 per cent for M-2 and IV2 to 10 per
cent for M-3 for the period from the third quarter of 1978 to the
third quarter of 1979. The Committee also indicated that it expected
growth of M - l to be within a range of 2 to 6 per cent over that




Record

of Policy Actions

of FOMC

period. That range was both lower and wider than the range of
4 to 6V2 per cent that had been adopted in July, in recognition
of the uncertainty concerning the size and speed of the expected
shift of deposits from demand to savings accounts resulting from
the introduction of A T S . The associated range for commercial bank
credit was 8V2 to I I V 2 per cent. The Committee also decided that
growth of M - 1 + within a range of 5 to I V 2 per cent appeared
to be generally consistent with the ranges of growth for the other
monetary aggregates.
The Committee adopted the following ranges for rates of growth
in monetary aggregates for the period from the third quarter of 1978
to the third quarter of 1979: M-2, 6V2 to 9 per cent; M-3, IVi
to 10 per cent. M - l was expected to grow within a range of 2
to 6 per cent over the period, depending in part on the speed and
extent of transfers from demand to savings deposits resulting from
the introduction of ATS. The associated range for bank credit is
SV2 to I I V 2 per cent. Growth of M - 1 + (M-l plus savings deposits
at commercial banks and NOW accounts) in a range of 5 to IV2
per cent was thought to be generally consistent with the ranges
for the foregoing aggregates.
Votes for this action: Messrs. Miller, Volcker,
Baughman, Coldwell, Eastburn, Jackson, Partee,
and Mrs. Teeters. Votes against this action: Messrs.
Wallich, Willes, and Winn. Absent and not voting:
Mr. Gardner.
Messrs. Wallich, Willes, and Winn dissented from this action
because, with the Committee's longstanding objective of slowing
the rate of inflation in mind, they preferred to specify an upper
limit of less than 6 per cent for the rate of growth of M - l , adjusted
for the estimated effects of A T S . In their v i e w , the upper limit
of 6 per cent, adjusted for A T S , represented an unwarranted
increase from the 6V2 per cent upper limit of the existing (pre-ATS)
range.
In the discussion of policy for the period immediately ahead,
members of the Committee noted that the uncertainties associated
with introduction of A T S would affect growth of the monetary
aggregates in the O c t o b e r - N o v e m b e r period—the 2-month period
for which growth ranges were being considered—in much the same
way as they would growth over the year ahead. Specifically, growth

953

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Federal Reserve Bulletin • December 1978




of M - l over the 2-month period might well be less than otherwise
by a significant but undetermined amount, and growth of M-2 might
be marginally greater.
As in the case of the longer-run ranges, various proposals were
advanced for taking account of the unusual uncertainties. In general, these proposals involved placing less emphasis on the behavior
of M - l as a guide to operations in the inter-meeting period and
more on the behavior of M-2, rather than the approximately equal
weight that typically had been given to the two aggregates. One
proposal was to drop M - l altogether as an operating guide. Another
was to give primary emphasis to M-2 and to specify only an upper
limit for M - l rather than a range, reflecting a judgment that rapid
growth in M - l would have significance for policy while slow
growth might represent chiefly transfers from demand to savings
accounts because of the introduction of ATS. A third proposal was
to widen the range for M - l , while indicating a range for M-1 +
as an aid in evaluating the behavior of the other monetary aggregates. At the same time, most members of the Committee favored
giving greater weight than usual to money market conditions in
the conduct of operations in the period until the next meeting of
the Committee.
In the discussion, concern was expressed about recent rates of
monetary growth, and most members believed that some additional
firming in money market conditions in the period immediately ahead
was needed to help assure a slowing in growth over the months
ahead. They favored directing open market operations toward an
increase in the Federal funds rate to about 9 per cent shortly after
this meeting, with an inter-meeting range of 8% per cent to either
9V4 or 9V2 per cent.
Other members believed that for the time being operations should
be directed toward maintaining the money market conditions currently prevailing, as represented by a Federal funds rate of about
8% per cent, because they felt that such a pause was needed to
evaluate the lagged impact of the substantial increases in interest
rates over recent months. These members suggested an inter-meeting range of 8% to 9 per cent.
With respect to the monetary aggregates, a number of members
proposed a range of Vi to 6V2 per cent for the annual rate of growth
in M - l over the October-November period. Those members who




Record

of Policy Actions

of FOMC

preferred to specify only an upper limit, rather than a range, for
growth in M - l over the 2-month period suggested limits of 5, 6,
and 7 per cent. For M - 2 , a range of 5 x h to 9 l h per cent was proposed
by the largest number of members; one slightly higher and one
slightly lower were also suggested.
At the conclusion of the discussion the Committee agreed to
instruct the Manager to seek a Federal funds rate of around 9 per
cent early in the period before the next regular meeting and
subsequently to maintain the rate within a range of 83A to 9 l A per
cent. With regard to the specific objective for the Federal funds
rate within that range, the Committee instructed the Manager to
be guided mainly by a range of tolerance for the annual rate of
growth in M - 2 over the O c t o b e r - N o v e m b e r period of 5lh to 9lh
per cent, provided that the rate of growth in M - l over that period
did not e x c e e d 6V2 per cent.
The f o l l o w i n g domestic policy directive was issued to the Federal
Reserve Bank of N e w York:
The information reviewed at this meeting suggests that real output
of goods and services grew moderately in the third quarter, although
the pace was somewhat below the average for the first two quarters
of the year. In September, as in August, the dollar value of total
retail sales rose considerably. Industrial production continued to
expand while nonfarm payroll employment changed little. The
unemployment rate edged up from 5.9 to 6.0 per cent. Average
producer prices of finished goods rose substantially in September,
as prices of foods increased sharply after having declined for 2
months. The advance in the index of average hourly earnings has
been somewhat faster so far in 1978 than it was on the average
during 1977.
The trade-weighted value of the dollar against major foreign
currencies has declined further since mid-September in frequently
volatile exchange markets. The U.S. trade deficit fell sharply in
August, reversing the jump recorded in July; for the 2 months the
deficit was close to the rate for the second quarter.
Growth in M - l , which had been rapid in August, accelerated
in September. Inflows of the interest-bearing deposits included in
M-2 and M-3 remained strong, and expansion in the broader
aggregates also accelerated somewhat. Short-term market interest
rates have risen further in recent weeks; long-term rates also have
increased, but they remain below their July peaks. An increase in

955

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Federal Reserve Bulletin • December 1978




Federal Reserve discount rates from 73A to 8 per cent was announced
on September 22; another increase to 8^2 per cent was announced
on October 13.
In light of the foregoing developments, it is the policy of the
Federal Open Market Committee to foster monetary and financial
conditions that will resist inflationary pressures while encouraging
continued moderate economic expansion and contributing to a sustainable pattern of international transactions. In setting ranges for
the monetary aggregates, the Committee recognized the uncertainties
concerning the effects that the November 1 introduction of the
automatic transfer service (ATS) would have on measures of the
money supply, especially M - l . Against that background, the Committee agreed that appropriate monetary and financial conditions
would be furthered by growth of M-2 and M-3 from the third quarter
of 1978 to the third quarter of 1979 within ranges of 6V2 to 9 per
cent and I V 2 to 10 per cent, respectively. The narrowly defined
money supply ( M - l ) was expected to grow within a range of 2
to 6 per cent over the period, depending in part on the speed and
extent of transfers from demand to savings deposits resulting from
the introduction of ATS. The associated range for bank credit is
8V2 to 1 1 p e r cent. Growth of M - 1 + (M-l plus savings deposits
at commercial banks and N O W accounts) in a range of 5 to I V 2
per cent was thought to be generally consistent with the ranges
of growth for the foregoing aggregates. These ranges are subject
to reconsideration at any time as conditions warrant.
In the short run, the Committee seeks to achieve bank reserve
and money market conditions that are broadly consistent with the
longer-run ranges for monetary aggregates cited above, while giving
due regard to developing conditions in domestic and international
financial markets more generally and to uncertainties associated with
the introduction of ATS. Early in the period before the next regular
meeting, System open market operations shall be directed at attaining a weekly-average Federal funds rate slightly above the current
level. Subsequently, operations shall be directed at maintaining the
weekly-average Federal funds rate within the range of 8 3 A to 9 l A
per cent. In deciding on the specific objective for the Federal funds
rate the Manager shall be guided mainly by a range of tolerance
for growth in M-2 over the October-November period of 5 V2 to
9V2 per cent, provided that growth of M - l over that period does
not exceed an annual rate of 6V2 per cent.
Votes for this action: Messrs. Miller, Volcker,
Baughman, Coldwell, Eastburn, Jackson, Partee,




Record

of Policy Actions

of FOMC

Wallich, and Winn. Votes against this action: Mrs.
Teeters and Mr. Willes. Absent and not voting:
Mr. Gardner.
Mrs. Teeters dissented from this action because she believed
that for the time being operations should be directed toward
maintaining the money market conditions currently prevailing. In
her v i e w , the Committee should wait to evaluate the effects of
the substantial increases in interest rates over recent months before
contemplating additional firming in m o n e y market conditions.
Mr. Willes dissented from this action because he believed that
it allowed for unacceptably rapid monetary growth. He preferred
an upper limit of 5 per cent for growth of M - l over the Octob e r - N o v e m b e r period; with respect to the Federal funds rate, he
favored raising the objective to 9 lA per cent during the inter-meeting
period, barring unforeseen weakness in monetary growth, and
providing l e e w a y to raise the objective to 9l/2 per cent if the
monetary aggregates appeared to be growing more rapidly than
expected.
Subsequent to the meeting, on October 3 1 , the Committee voted
to approve a delegation of authority to Chairman Miller to take
certain actions in implementation of a broad Government program
to strengthen the dollar in foreign exchange markets and thereby
to counter continuing domestic inflationary pressures, if he determined that the arrangements with the U . S . Treasury and with
certain foreign monetary authorities were substantially as contemplated in a consultation among the members of the Committee on
the preceding day.
Early on the morning of November 1 the Treasury and the Federal
Reserve announced measures being taken to implement such a
program. Specifically, the Board of Governors approved (1) an
increase of 1 percentage point, from 8*/2 to 9Vi per cent, in the
discount rate at the Federal Reserve Bank of N e w York, effective
immediately, and (2) establishment of a supplementary reserve
requirement, in addition to the existing reserve requirements on
deposits at member banks, equal to 2 per cent of time deposits
in denominations of $ 1 0 0 , 0 0 0 or more. At the same time the System
announced increases in its reciprocal currency (swap) arrangements
with the central banks of Germany, Japan, and Switzerland by
a total of $ 7 . 6 billion, to $15 billion, and activation of the swap

957

958

Federal R e s e r v e Bulletin • D e c e m b e r 1978




arrangement with the Bank of Japan. It further stated that the
foreign currencies available under the expanded arrangements
would be used along with foreign currencies available to the
Treasury in a program of forceful intervention in the exchange
markets in coordination with foreign central banks to correct recent
e x c e s s i v e m o v e m e n t s in exchange rates.
In a joint Treasury-Federal Reserve statement, other measures
to mobilize key foreign currencies were announced. They included
drawings on the U . S . reserve tranche in the International Monetary
Fund, for part of which activation of the General Arrangements
to Borrow was contemplated; sales of special drawing rights; and
issuance of U . S . Treasury securities denominated in foreign currencies. It was also announced that the Treasury would increase
its sales of gold to at least IV2 million ounces monthly beginning
in December.
A s part of this program, on October 31 the Federal Open Market
Committee voted to approve a delegation of authority to Chairman
Miller to m o d i f y the domestic policy directive by raising the range
for the Federal funds rate to 916 to 93A per cent and by instructing
the Manager, in deciding on the specific objective for the rate within
that range, to be guided by developing conditions in domestic and
international financial markets. The Chairman approved the modification of the directive on N o v e m b e r 1, effective on that date.
Votes for this action: Messrs. Miller, Volcker,
Baughman, Coldwell, Eastburn, Partee, Mrs.
Teeters, Messrs. Wallich, Willes, and Winn. Votes
against this action: None. Absent and not voting:
Messrs. Gardner and Jackson.

2. Authorization for Foreign Currency Operations
On October 31 the Committee also voted to approve a delegation
of authority to Chairman Miller to negotiate increases in the
S y s t e m ' s swap arrangements with the German Federal Bank, the
Bank of Japan, and the S w i s s National Bank. In addition, the
Committee voted to approve a concurrent amendment to paragraph
2 of the authorization for foreign currency operations to raise
correspondingly the amounts specified there for the swap arrangements with those central banks.




Record

of Policy Actions

of FOMC

On N o v e m b e r 1 the Chairman approved increases of $ 2 billion,
$3 billion, and $ 2 . 6 billion in the System's swap arrangements with
the German Federal Bank, the Bank of Japan, and the Swiss
National Bank, respectively. Accordingly paragraph 2 of the authorization was amended, effective on that date, to read as f o l l o w s :
The Federal Open Market Committee directs the Federal Reserve
Bank of New York to maintain reciprocal currency arrangements
( " s w a p " arrangements) for the System Open Market Account for
periods up to a maximum of 12 months with the following foreign
banks, which are among those designated by the Board of Governors
of the Federal Reserve System under Section 214.5 of Regulation
N, Relations with Foreign Banks and Bankers, and with the approval
of the Committee to renew such arrangements on maturity:
Foreign bank

Amount of arrangement
(millions of dollars equivalent)
Austrian National Bank
250
National Bank of Belgium
1,000
Bank of Canada
2,000
National Bank of Denmark
250
Bank of England
3,000
Bank of France
2,000
German Federal Bank
6,000
Bank of Italy
3,000
Bank of Japan
5,000
Bank of Mexico
360
Netherlands Bank
500
Bank of Norway
250
Bank of Sweden
300
Swiss National Bank
4,000
Bank for International Settlements:
600
Dollars against Swiss francs
Dollars against authorized European
1,250
currencies other than Swiss francs
Votes for this action: Messrs. Miller, Volcker,
Baughman, Cold well, Eastburn, Partee, Mrs.
Teeters, Messrs. Wallich, Willes, and Winn. Votes
against this action: None. Absent and not voting:
Messrs. Gardner and Jackson.
Paragraph I D of the Committee's authorization for foreign currency operations authorizes the Federal Reserve Bank of N e w York,
for the System Open Market Account, to maintain an over-all open
position in all foreign currencies not to e x c e e d $ 1 . 0 billion, unless

959

960

Federal Reserve Bulletin • D e c e m b e r 1978




a larger position is expressly authorized by the Committee. On
June 20, 1978, the Committee had authorized an over-all open
position of $ 1 . 5 billion.
On October 2 7 , 1978, the Committee authorized an increase in
this limit to $ 2 billion in view of the scale of recent and potential
Federal Reserve operations in the foreign exchange markets undertaken pursuant to the Committee's foreign currency directive.
Votes for this action: Messrs. Miller, Volcker,
Baughman, Coldwell, Eastburn, Partee, Mrs.
Teeters, Messrs. Wallich, Willes, and Winn. Votes
against this action: None. Absent and not voting:
Messrs. Gardner and Jackson.
On October 31 the Committee voted to approve a delegation
of authority to Chairman Miller to authorize an open position of
$5 billion. On November 1 the Chairman authorized an open
position of that amount.
Votes for this action: Messrs. Miller, Volcker,
Baughman, Coldwell, Eastburn, Partee, Mrs.
Teeters, Messrs. Wallich, Willes, and Winn. Votes
against this action: None. Absent and not voting:
Messrs. Gardner and Jackson.

3 . A u t h o r i z a t i o n for D o m e s t i c O p e n M a r k e t O p e r a t i o n s
On N o v e m b e r 3, 1978, Committee members voted to increase from
$3 billion to $5 billion the limit on changes between Committee
meetings in System Account holdings of U . S . Government and
Federal agency securities specified in paragraph 1(a) of the authorization for domestic open market operations, effective immediately,
for the period ending with the close of business on N o v e m b e r 21,
1978.
Votes for this action: Messrs. Miller, Volcker,
Baughman, Coldwell, Eastburn, Partee, Mrs.
Teeters, Messrs. Wallich, Willes, and Winn. Votes
against this action: None. Absent and not voting:
Messrs. Gardner and Jackson.
This action was taken on recommendation of the System Account
Manager. The Manager had advised that large-scale sales of Treas-

Record of Policy Actions of FOMC

ury securities since the October meeting—required mainly to
counter the effect on member bank reserves of a steep decline in
Treasury balances at the Federal Reserve Banks and to accommodate substantial purchases of Treasury bills by foreign central
banks—had reduced the leeway for further sales to $365 million.
It now appeared likely that additional sales would be required as
current projections indicated a need for further reserve-absorbing
operations over the coming weeks.

Records of policy actions taken by the Federal Open Market Committee at each
meeting, in the form in which they will appear in the Board's Annual
Report,
are released about a month after the meeting and are subsequently published in
the BULLETIN.




961

Law Department
Statutes, regulations, interpretations, and decisions

RESERVES

OF MEMBER

BANKS

The Board of Governors has amended its Regulation D to modify the reserve balances that member banks are required to maintain against their
deposits.
Effective as to the reserves required to be held
during the week commencing November 16, 1978,
against deposits outstanding in the week beginning
November 2, 1978, § 204.5 of Regulation D is
amended to read as follows:
SECTION 2 0 4 . 5 — R E S E R V E

REQUIREMENTS

(a) RESERVE PERCENTAGE. Pursuant to the
provisions of Section 19 of the Federal Reserve
Act and § 204.2(a) and subject to paragraph (c)
of this section, the Board of Governors of the
Federal Reserve System hereby prescribes the following reserve balances that each member bank
of the Federal Reserve System is required to
maintain on deposit with the Federal Reserve Bank
of its district.
(1) If not in a reserve city—

(ii) 1 per cent of its time deposits outstanding
on or issued after October 16, 1975, that have
an initial maturity of 4 years or more; 2Vi per
cent of its time deposits outstanding on or issued
after December 25, 1975, that have an initial
maturity of 180 days or more but less than 4 years;
3 per cent of its time deposits up to $5 million,
outstanding on or issued after October 16, 1975,
that have an initial maturity of less than 180 days,
plus 6 per cent of such deposits in excess of $5
million: Provided, however, That in no event shall
the reserves required on its aggregate amount of
time and savings deposits be less than 3 per cent.
In addition, a member bank shall maintain a reserve balance equal to 2 per cent of its time
deposits of the following types:
(a) Time deposits of $100,000 or more; and




(b) Time deposits of $100,000 or more represented by promissory notes, acknowledgements of
advance, due bills, or similar obligations as provided in § 204.1(f); and
(c) Time deposits represented by ineligible
bankers' acceptances or obligations issued by a
member bank's affiliate, as provided in § 204.1(f).
However, the supplementary 2 per cent reserve
requirement shall not apply to a savings deposit,
or a time deposit, open account that constitutes
deposits of individuals, such as Christmas club
accounts and vacation club accounts, that are made
under written contracts providing that no withdrawal shall be made until a certain number of
periodic deposits have been made during a period
of not less than 3 months.

(2) If in a reserve city (except as to any bank
located in such a city that is permitted by the Board
of Governors of the Federal Reserve System, pursuant to § 204.2(a)(2), to maintain the reserves
specified in paragraph (a)(1) of this section)—

(ii) 1 per cent of its time deposits outstanding
on or issued after October 16, 1975, that have
an initial maturity of 4 years or more; 2Vi per
cent of its time deposits outstanding on or issued
after December 25, 1975, that have an initial
maturity of 180 days or more but less than 4 years;
3 per cent of its time deposits up to $5 million,
outstanding on or issued after October 16, 1975,
that have an initial maturity of less than 180 days,
plus 6 per cent of such deposits in excess of $5
million: Provided, however, That in no event shall
the reserves required on its aggregate amount of
time and savings deposits be less than 3 per cent.
In addition, a member bank shall maintain a reserve balance equal to 2 per cent of its time
deposits of the following types:

Law Department

(a) Time deposits of $100,000 or more; and
(b) Time deposits of $100,000 or more represented by promissory notes, acknowledgements of
advance, due bills, or similar obligations as provided in § 204.1(f); and
(c) Time deposits represented by ineligible
bankers' acceptances or obligations issued by a
member bank's affiliate, as provided in § 204.1(f).
However, the supplementary 2 per cent reserve
requirement shall not apply to a savings deposit,
or a time deposit, open account that constitutes
deposits of individuals, such as Christmas club
accounts and vacation club accounts, that are made
under written contracts providing that no withdrawal shall be made until a certain number of
periodic deposits have been made during a period
of not less than 3 months.

In this connection, the language "compliance
with the requirements of Regulation E is not necessary; b u t " in 12 C . F . R . § 201.108(d) has been
deleted.

CORPORATIONS
FOREIGN
UNDER

ENGAGED

BANKING

AND

THE FEDERAL

IN

FINANCING

RESERVE

SECTION

OF

WARRANTS

211.7—

*

Effective November 9, 1978, the Board of Governors has rescinded its Regulation E, Purchase
of Warrants, which governs the purchase by Federal Reserve Banks of certain short-term obligations of State or local governments.

BANK

HOLDING

BANK

MERGER

COMPANY
ORDERS

ORDERS U N D E R SECTION

BY

3

Acquisition

ACT

of Bank

Alabama Bancorporation, Birmingham, Alabama, a bank holding company within the meaning
of the Bank Holding Company Act, has applied
for the Board's approval under section 3(a)(3) of
the Act (12 U . S . C . § 1842(a)(3)) to acquire all
of the voting shares (less directors' qualifying
shares) of Lee County Bank, which will purchase
substantially all the assets and assume substantially
all the liabilities of The Bank of East Alabama
( " B a n k " ) , Opelika, Alabama. The purchasing
bank will operate under the name of Bank and




*

*

*

(c) . . . Such deposits shall be subject to Parts
204 (Regulation D) and 217 (Regulation Q) of this
chapter and shall be reported in the same manner
as if the Corporation were a member bank of the
Federal Reserve System.

THE BOARD

Alabama Bancorporation,
Birmingham, Alabama
Order Approving

*

STATES

AND

ISSUED

OF B A N K H O L D I N G C O M P A N Y

ACT

The Board of Governors has amended its Regulation K to remove the 10 per cent minimum
reserve requirement in the Board's regulation to
conform to the international Banking Act.
Effective November 16, 1978, the last sentence
of Section 211.7(c) of Regulation K is amended
to read as follows:

L I M I T E D O P E R A T I O N S IN T H E U N I T E D
PURCHASE

963

OF

GOVERNORS

has no significance except as a means to facilitate
the transaction. Accordingly, the proposed acquisition of shares of the purchasing bank is treated
in this Order as a proposed acquisition of the
shares of Bank.
Notice of the application, affording opportunity
for interested persons to submit 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 largest banking organization in
Alabama, controls 15 banks with aggregate deposits of $1.7 billion. 1 Its acquisition of Bank,

1

All banking data are as of December 31, 1977.

964

Federal Reserve Bulletin • December 1978

which holds deposits of $34.3 million, would
increase Applicant's share of commercial bank
deposits in the State by only 0.3 per cent, and
would have no appreciable effect upon the concentration of banking resources in Alabama.
Bank is the largest of eight banking organizations located in the relevant banking market 2
and holds approximately 21.6 per cent of total
deposits in commercial banks in the market. Applicant's closest subsidiary bank is located 62
miles southwest of Bank, in a separate banking
market. It appears that no meaningful competition
exists between Bank and any subsidiary bank of
Applicant, and it appears unlikely that any significant competition would develop between them in
the future. 3 Although Applicant is acquiring the
largest bank in the market, three other large bank
holding companies are already represented in the
market and, after acquisition, there will remain
in the market four independent banks that constitute potential entry vehicles. Based on these and
other facts of record, it is the Board's opinion that
consummation of the proposed transaction would
have no significant adverse effect on competition
or on the concentration of banking resources in
any relevant area. Thus, competitive considerations are consistent with approval of the application.

verse competitive effects that might be associated
with the proposal. Accordingly, it is the Board's
judgment that the proposed acquisition is consistent with the public interest and that the application
should be approved.
On the basis of the record, the application is
approved for the reasons summarized above. The
transaction shall not be made before the thirtieth
calendar day following the effective date of this
Order or later than three months after the effective
date of this Order unless such period is extended
for good cause by the Board or by the Federal
Reserve Bank of Atlanta pursuant to delegated
authority.
By order of the Board of Governors, effective
November 3, 1978.

The financial and managerial resources of Applicant and its subsidiary banks are regarded as
satisfactory and the future prospects of each appear
favorable. As a subsidiary of Applicant, the financial condition of Bank is expected to improve,
especially in light of Applicant's commitment to
inject additional capital into Bank. The managerial
resources and future prospects of Bank will similarly be strengthened to an important degree as
a result of the transaction. Banking factors, therefore, lend weight toward approval.
Applicant proposes to expand lending services
at Bank, to offer VA-guaranteed and FHA-insured
real estate loans, and to make available trust services to Bank's customers. Therefore, considerations relating to the convenience and needs of
the community to be served lend some weight
toward approval, sufficient to outweigh any ad-

First Arkansas Bankstock Corporation, Little
Rock, Arkansas, a bank holding company within
the meaning of the Bank Holding Company Act,
has applied for the Board's approval under section
3(a)(3) of the Act (12 U . S . C . § 1842(a)(3)) to
retain indirectly approximately 91 per cent of the
voting shares of First National Bank in Mena
( " B a n k " ) , Mena, Arkansas. These shares are held
by United Banks of Arkansas, Inc. ( " U n i t e d " )
Little Rock, Arkansas, a duly registered one-bank
holding company^ which is in turn controlled by
directors and officers of Applicant. 1
Notice of the application, affording opportunity
for interested persons to submit comments and
views, has been given in accordance with section

2
The relevant banking market is approximated by Lee
County, Alabama.
3
Although Applicant's mortgage subsidiary, Engle Mortgage Company, Montgomery, Alabama, derives some business
from the relevant market, it is primarily engaged there in
servicing mortgage loans, and it appears that consummation
of this proposal would eliminate no significant competition
between that subsidiary and Bank.




Voting for this action: Chairman Miller and Governors Wallich, Cold well, Partee, and Teeters. Absent and
not voting: Governors Gardner and Jackson.
( S i g n e d ) GRIFFITH L . GARWOOD,

[SEAL]

Deputy Secretary

of the

Board.

First Arkansas Bankstock Corporation,
Little Rock, Arkansas
Order Approving

Retention

of Bank

1
Upon approval of this application, the outstanding shares
of United would be held in trust for the benefit of Applicant
and its shareholders, and the acquisition debt and accumulated
interest of $ 2 . 4 million would be assumed by United. This
structure reflects an opinion of the Arkansas State Bank
Department that under State law Applicant may not hold the
shares of Bank directly, but they may lawfully be held in trust
for Applicant's benefit. This proposal involves a restructuring
of the existing trust relationship, but the proposed transaction
would not appear to alter materially the nature of the legal
relationship between Applicant and Bank upon which the State
legal opinion is based.

Law Department

3 of the Act (43 Fed. Reg. 19,079 (1978)). The
time for filing comments and views has expired,
and the Board has considered the application and
all comments received, including those of the
Comptroller of the Currency and protestants, 2 in
light of the factors specified in section 3(c) of the
Act (12 U . S . C . § 1842(c)).
Applicant seeks the Board's permission to retain
indirectly, through United, shares of Bank controlled by directors and officers of Applicant, pursuant to arrangements made in late 1970 and early
1971. Under these arrangements, Bank's shares
were acquired on Applicant's behalf and held by
United. To explore the circumstances surrounding
this transaction, the Board held formal evidentiary
hearings in October, 1976. Those hearings established that the transactions involving the indirect
acquisition of more than 25 per cent of Bank's
shares by Applicant's officers and directors, without prior Board approval, constituted a violation
of section 3 of the Act. 3
On March 13, 1978, the Board issued an Order
adopting the findings and conclusions in the Recommended Decision of the Administrative Law
Judge, who presided at the hearings, and stating
that " i t would be appropriate to process [Applicant's] application to retain its interest in Bank
and, in the context of that application, to review
the circumstances surrounding [Applicant's] acquisition of control of Bank as they relate to the
2
The protestants to this application include 42 Arkansas
banking institutions joining in a single protest, and represented
by Mr. Ray Smith ("the Smith protest"), and 4 Arkansas
banking institutions that have each filed protests separately.
Since the Smith protest includes all the issues the individual
protestants raise and some that they do not, including the need
for a hearing, this Order addresses the protested issues by
referring to the Smith protest.
3
These are the material facts: Applicant began negotiations
to acquire Bank in the fall of 1970, and decided that United,
a shell corporation controlled by officers and directors of
Applicant, should acquire Bank's shares and hold them for
subsequent sale to Applicant after Applicant had filed an
application with the Board and received the Board's approval,
pursuant to section 3(a)(3) of the Act, to acquire Bank. United
had originally been established for the purpose of reserving
the name of "United Banks of Arkansas" for Applicant's use.
The officers and directors of Applicant who held Bank's shares
through United regarded themselves as acting at all times on
behalf of Applicant and not for their personal account, and
it was informally expected that Applicant would stand behind
their acquisition debt to an unaffiliated bank if necessary.
Applicant, since the acquisition of Bank by United, has treated
Bank as an affiliate and has had a major role in the operations
of Bank, providing management and investment services and
reviewing Bank's examination reports and loan portfolio, as
well as providing data processing services. The original plan
to transfer the shares to Applicant was prevented by enactment
of a State law prohibiting the acquisition of additional banks
by existing holding companies.




965

financial and managerial resources factors in § 3(c)
of the A c t . " The Board has done this. In accordance with its policy on violations of the Act and
upon its examination of all the facts of record,
the Board is of the view that the specific facts
involved in the original indirect acquisition, even
viewed in isolation and absent other adverse considerations, might require denial of the application
but for Applicant's thorough and definite undertakings to guard against violations in the future. 4
Applicant, the largest bank holding company in
Arkansas, controls four banks (including Bank),
holding total deposits of $540.5 million, or approximately 7.8 per cent of the total deposits in
commercial banks in the State. 5 Bank's deposits
of $27.0 million comprise only 0.4 per cent of
total deposits in commercial banks in Arkansas,
and retention of Bank would have no appreciable
effect upon the concentration of banking resources
in the State. Bank is the slightly larger of two
banks in the relevant market, 6 with 50.3 per cent
of the deposits in commercial banks in that market.
None of Applicant's subsidiary banks competes in
the relevant banking market, and the nearest subsidiary bank of Applicant is located approximately
77 miles east of Bank. Viewing the competitive
situation both as it existed when Applicant obtained control of Bank and at this time, it appears
that the acquisition did not eliminate and, viewed
as a present acquisition, would not eliminate, any
existing banking competition in the relevant market.
While Applicant could have established a de
novo bank in the relevant market at the time of
affiliation of Applicant and Bank, the market did
not appear attractive for de novo entry at that time,
and the situation does not appear to have changed
in the intervening years. Moreover, a 1971 change
in Arkansas law prohibiting the additional acquisition of banks by a bank holding company would
4
The record reflects that before initiating this transaction
Applicant had reason to believe it to be lawful, and that
Applicant openly disclosed the principal aspects of its relationship with Bank to the Board and other regulatory authorities
and has cooperated fully with efforts by the Board's staff to
resolve the violation question. Applicant's cooperation, the
nature of the violation, and the fact that the transaction originated before the Board publicized its policy on such transactions, coupled with Applicant's undertaking a definite program
regarding its future conduct, together persuade the Board that
the violation does not reflect so adversely on Applicant's
management as to require denial of this application, though
no one of those considerations standing alone might be persuasive.
5
6

All banking data are as of December 31, 1977.
The relevant market is approximated by Polk County.

966

Federal Reserve Bulletin • December 1978

prevent Applicant from entering the relevant market by any means if disaffiliation were now required. Accordingly, retention of Bank would not
have a significant effect upon competition, nor
would it increase the concentration of resources
in any relevant area. Therefore, the Board concludes that competitive considerations are consistent with approval of the application.
The financial and managerial resources of Applicant and its subsidiaries, as well as those of
Bank, are consistent with approval, and their future prospects appear favorable.
In this connection, the Smith protest raises several questions regarding the managerial resources
of Applicant. Specifically, it urges the Board to
deny this application because of Applicant's violation of the Act in acquiring control of Bank and
certain other actions evidencing Applicant's
"continuous corporate misbehavior." The Smith
protest has requested that a formal hearing be held
in connection with these issues. The Board has
determined that the matters raised do not justify
further hearings or denial of this application.
Section 3(b) of the Act requires the Board to
hold a formal hearing when the primary supervisor
of the bank to be acquired, in this case the Comptroller of the Currency, recommends disapproval
of the application (12 U . S . C . § 1842(b)). Since
the Comptroller of the Currency has not recommended disapproval of the application, 7 there is
no statutory requirement that the Board hold a
formal hearing in this matter. 8
While there is no statutory requirement that a
hearing be held on this application, the Board has
nevertheless carefully reviewed the Smith protest.
With respect to the issue that Applicant should
not be allowed to retain a bank that it acquired
in violation of law, the Smith protest states that
the record on this issue " d o e s not appear to be
complete nor sufficient for the Board to make a
determination and additional evidence needs to be
developed to make an adequate r e c o r d . "
In October 1976, the protestants, represented by
Mr. Smith, participated as parties in four days of
evidentiary hearings held to decide the basic factual issues of whether, at what point in time, and

by what means Applicant gained control or exercised a controlling influence over Bank. 9 The
hearings not only fully exposed the substance of
the transaction, but also the motives and reasons
for Applicant's actions. A voluminous record was
developed on these issues, and there seem to be
no unexplored material factual questions relating
to that matter remaining. Certainly, the Smith
protest has identified none. In fact, rather than
identifying sections of the record that need to be
supplemented, it instead quotes extensively from
the record, including the transcript of the hearings,
the hearing exhibits, the proposed finding of facts
by Board Counsel and the Recommended Decision
of the Administrative Law Judge, in arguing that
the application should be denied. 1 0 Under the
circumstances, the Board is satisfied that the record
regarding Applicant's violation of the Act is sufficient for a proper evaluation of that violation, and
supports the determination made earlier in this
Order that the violation does not reflect so adversely on Applicant's managerial resources as to
require denial of this application.
In addition to its opposition based on Applicant's violation, the Smith protest requests a hearing to submit proof of Applicant's "continuous
corporate misbehavior over the last ten y e a r s . "
The charges regarding which the Smith protest
requests an opportunity to present evidence relate
principally to actions taken by Applicant's lead
bank, and accordingly are matters subject to the
primary supervisory authority of the Comptroller
of the Currency. In his comments to the Board
on this application, the Deputy Comptroller of the
Currency did not criticize any of these matters
raised by the Smith protest or the lead bank's
general conduct. To the contrary, he expressed the
opinion that, apart from consideration of Applicant's violation of the Act, which is addressed in
this Order, Applicant's managerial resources were
generally satisfactory. In the Board's view the
central relevant question bearing on Applicant's
managerial integrity in this case is its violation
of the Act. The Board believes that the remaining

7
The Comptroller of the Currency indicated, however, that
if the Board determined that Applicant had willfully violated
the Act, that Office would regard such a determination as a
sufficient basis for the Board to deny the application.
8
See, Farmers and Merchants Bank of Los Cruces v. Board
of Governors of the Federal Reserve System, 567 F.2d 1082,
1087 (D.C. Cir. 1977).

10
It should be further noted that the protestants' counsel,
in response to a question from Board Counsel near the conclusion of the hearings, agreed that the protestants were satisfied
with Applicant's voluntary cooperation in that proceeding in
producing needed witnesses and documents regarding the acquisition of Bank. Transcript of hearing on October 28, 1976,
at 680.




9
These hearings, along with the briefs, exhibits, findings,
and Recommended Decision of the Administrative Law Judge,
constitute part of the record considered by the Board in connection with this application.

Law Department

charges, even if proved, would by their number
and nature show at most isolated instances of
noncompliance rather than any coherent pattern of
disregard for or neglect of the lead bank's responsibilities as a regulated institution. Taking into
account the judgment of the bank's primary
supervisor, the Board believes that such proof
would not alter its judgment on Applicant's managerial resources in a way material to the outcome
.of this case. Even accepting each of these charges
as true, the Board finds that the substantial public
benefits associated with this application are more
than sufficient to outweigh any adverse finding on
these matters.
In summary, the Board has reviewed the record
of this application, including the views expressed
in the written submissions of the Smith protest and
Applicant's response to those submissions, and
concludes that the record is sufficiently complete
to render a decision on the application and that
no useful purpose would be served by holding
further formal hearings on any issue raised. Accordingly, the Smith protest's request for a hearing
is denied.
Considerations relating to convenience and
needs of the community being served favor approval of the application. As a result of its affiliation with Applicant, Bank has offered a number
of services that it would not have been able to
offer absent that affiliation. Specifically, as a subsidiary of Applicant, Bank has introduced F H A ,
VA, home improvement and student loans, Visa
and Master Charge services, additional types of
checking account services, and 24-hour banking
services through Bank's participation in Applicant's debit card program. Furthermore, affiliation
with Applicant has allowed Bank, through overline
loan participations, to increase substantially its
ability to serve the borrowing needs of its commercial customers. Also, such affiliation has resulted in increased benefits for its own employees.
It appears that disaffiliation would result in a
reduction in the level of services by Bank as an
independent organization. The Board finds that
approval of the proposed application would be in
the public interest and that the application should
be approved.
On the basis of the record, the application is
approved for the reasons summarized above. The
proposed restructuring of Applicant's interest in
Bank shall not be made before the thirtieth calendar day following the effective date of this Order
or later than three months after the effective date




967

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
November 3, 1978.
Voting for this action: Chairman Miller and Governors Wallich, Coldwell, Partee, and Teeters. Absent and
not voting: Governors Gardner and Jackson.
( S i g n e d ) THEODORE E . ALLISON,
[SEAL]

Secretary

of the

Board.

First Bancorp of N . H . , Inc.,
Manchester, New Hampshire
Order Approving

Acquisition

of Bank

First Bancorp of N . H . , Inc., Manchester, New
Hampshire, a bank holding company within the
meaning of the Bank Holding Company Act
( " A c t " ) , has applied for the Board's approval
under section 3(a)(3) of the Act (12 U . S . C .
§ 1842(a)(3)) to acquire 45.8 per cent or more of
the voting shares of Londonderry Bank and Trust
Company, Londonderry, New
Hampshire
( " B a n k " ) . Since Applicant currently owns 4 . 9 per
cent of the voting shares of Bank, upon consummation of the proposal Applicant would own 50.1
per cent or more of the voting shares.
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 application and all
comments received, including those submitted by
Bank's management ("Protestants"),

have

been

considered in light of the factors set forth in section
3(c) of the Act.
Applicant, the second largest banking organization in New Hampshire, controls four banks with
aggregate deposits of approximately $214 million,
representing 10.9 per cent of the total deposits in
commercial banks in New Hampshire. 1 Acquisition of Bank, the fifty-third largest banking organization in the State with deposits of $7.5 million,
would increase Applicant's share of commercial
1
All banking data relating to the State of New Hampshire
are as of December 31, 1977. All banking data relating to
the Manchester banking market are as of June 30, 1977. The
figures do not reflect the Board's approval by Order of September 15, 1978, of Applicant's application to acquire Wolfeboro National Bank, Wolfeboro, New Hampshire, since that
acquisition has not been consummated.

968

Federal Reserve Bulletin • December 1978

bank deposits in New Hampshire by less than
one-half of 1 per cent, and would not alter Applicant's State-wide ranking.
Protestants contend and the Board concurs that
Bank and Applicant's subsidiary bank in Manchester, New Hampshire, The Merchants National
Bank of Manchester ("Merchants B a n k " ) , as well
as its subsidiary Exeter Banking Company, Exeter,
New Hampshire, compete in the Manchester
banking market. 2 In the Manchester banking
market, Bank is the seventh largest of 11 commercial banking organizations, and controls 1.6
per cent of deposits in commercial banks in the
market. Applicant, with its two subsidiaries in the
market, controls deposits of $72.5 million, representing 19.1 per cent of market deposits, and ranks
as the second largest commercial banking organization in the relevant banking market. In addition
to its principal banking office, Merchants Bank has
three branches located in the Manchester banking
market.
Protestants allege that the proposed transaction
would have "serious adverse" effects on competition in the Manchester banking market and
southern New Hampshire. Protestants base their
conclusion concerning the competitive effects
upon the assertion that Bank competes effectively
and vigorously with Merchants Bank, as evidenced
by direct competition for commercial loans, for
municipal deposits and for the purchase of tax
anticipation notes between Bank and Applicant's
subsidiary. In addition, Protestants believe that
Bank should be regarded as a " f u l l service b a n k "
and therefore an effective competitor for so-called
"retail b a n k i n g " (i.e., loans and deposit accounts
by individuals and small businesses.) The Board
has examined the submissions of Protestants, and
based on all the facts of record, concludes that
while consummation of this proposal would eliminate some existing competition inasmuch as Applicant and Bank operate in the Manchester banking market, in view of the nature of the market,
as well as Bank's small size and its limited financial and managerial resources, the Board regards
the effects of the proposal on competition as being
2
The Manchester banking market, the relevant banking
market for the purposes of evaluating the proposed transaction,
is approximated by the Manchester, New Hampshire Ranally
Metro Area, and six contiguous towns. The Board notes that
the Manchester banking market is located adjacent to the
Nashua, N e w Hampshire, and Boston, Massachusetts, banking
markets, and there is evidence that a significant number of
the residents of Londonderry also commute to work and shop
in those adjacent markets.




only slightly adverse. Moreover, while the Manchester banking market is somewhat concentrated,
in view of the facts presented in the record of this
application, the Board does not regard the slight
increase in concentration of market deposits associated with this proposal as being significant. 3
Accordingly, the Board concludes that the proposed acquisition of Bank by Applicant would
have only slightly adverse effects on competition.
Moreover, when viewed in light of the other
considerations reflected in the record discussed
below, the Board does not view the effects on
competition as being so serious as to require denial
of this proposal.
The financial and managerial resources of Applicant and its subsidiaries are regarded as satisfactory, and their future prospects appear favorable. While Applicant intends to finance the acquisition with proceeds from a private placement
of notes, it appears from the record that Applicant
has sufficient financial resources to enable it to
service the debt while maintaining sufficient flexibility to meet any unanticipated difficulties. 4 As
a result of consummation of this proposal, Bank's
financial and managerial resources and future
prospects will be strengthened, particularly in light
of Applicant's commitment to inject needed capital
into Bank. Protestants state that if the application
is approved, a significant number of Bank's directors and officers, including its President, have
expressed their intention to resign their positions
3
In this connection the Board notes that three of N e w
Hampshire's four largest savings banks operate in the Manchester banking market, that together they hold almost twice
the amount of market deposits held by all 11 commercial banks
in the market, and that each one holds more deposits than
any one of the commercial banking organizations in the market.
While the Board continues to view commercial banking as a
distinct line of commerce, the Board recognizes that the presence of thrift institutions in the relevant banking market,
particularly in N e w England where thrift institutions have
certain expanded lending and deposit-taking powers, is one
of the factors that may be taken into account in analyzing the
competitive effects of a particular acquisition. See,
e.g.,
Board's Order approving the merger of Northeast Bancorp,
New Haven, Connecticut, with First Connecticut Bancorp,

Hartford, Connecticut,

6 0 FEDERAL

RESERVE

BULLETIN

375

(1974). In the instant case, the presence of thrift institutions
holding significant amounts of deposits in the Manchester
banking market, in the Board's view, lessens the severity of
the effects of the proposed transaction on competition in that
market.
4
Protestants contend that Applicant's financial projections
are erroneous, and consequently, that the acquisition debt to
be incurred by Applicant in connection with the proposed
acquisition would be unduly burdensome to Applicant. Protestants do not submit evidence in support of this contention,
and based upon its review of all the facts of record, the Board
concludes that Protestants' contention in this regard is without
merit.

Law Department

with Bank, and thereby to cause a depletion of
Bank's deposits. While Applicant has indicated its
intention to ask all of Bank's present directors and
officers to remain, Applicant is prepared, and in
the Board's view, able to provide satisfactory
successor management if the need arises. Furthermore, the Board notes that the overall operations
of Bank have declined somewhat in recent years
under Bank's present management, and therefore
the Board regards the availability to Bank of
Applicant's managerial resources as a positive
factor. With respect to the anticipated depletion
of Bank's deposits as a result of resignations,
Applicant is prepared to minimize the effects of
such depletion by transferring certain deposits
from its subsidiary banks to Bank. Based on the
foregoing and other facts of record, the Board
concludes that considerations relating to banking
factors lend weight toward approval of the application.
Upon consummation of the proposed transaction, Applicant intends to assist Bank in expanding
the range of services provided to its individual
customers. In particular, Applicant will cause
Bank to increase its hours of operation and to
introduce personal trust services, personal credit
cards, and automated customer services. In addition, Applicant will cause Bank to increase the
rates paid on Individual Retirement Accounts and
reduce the rate of interest charged on overdraft
loans. With regard to Bank's commercial customers, Applicant intends to assist Bank in offering
additional services, including corporate trust services, lock box, accounts receivable lending, and
import and export services.
Protestants believe that Bank is adequately
serving the needs of its customers and its community and that the proposed additional services are
already available in the market and in some cases
are offered by Bank through its correspondent
banks. In addition, Protestants contend that Bank
would be better able to meet the convenience and
needs of its customers in the future as an independent entity. While Bank may be adequately
serving its community, viewed in light of other
considerations reflected in the record and discussed
above, the Board believes that affiliation with
Applicant will improve Bank's ability to continue
to serve its customers and the community in the
future. Furthermore, while the proposed additional
services are not new to the market, in the Board's
view, their availability to the public at an additional location serves the convenience and needs




969

of the community. Thus, considerations relating
to the convenience and needs of the community
to be served lend weight toward approval of the
application, and together with considerations relating to banking factors, are sufficient to outweigh
the slightly adverse effects on competition that
would result from consummation of the proposal.
Accordingly, it is the Board's judgment that the
proposed acquisition would be in the public interest, and that the application should be approved.
On the basis of the record, the application is
approved for the reasons summarized above. The
transaction shall not be made (a) before the thirtieth calendar day following the effective date of
this Order or (b) later than three months after the
effective date of this Order, unless such period
is extended for good cause by the Board, or by
the Federal Reserve Bank of Boston pursuant to
delegated authority.
By order of the Board of Governors, effective
November 2, 1978.
Voting for this action: Chairman Miller and Governors Wallich, Coldwell, Jackson, Partee, and Teeters.
Absent and not voting: Governor Gardner.

[SEAL]

(Signed) GRIFFITH L . G A R W O O D ,
Deputy Secretary of the Board.

First City Bancorporation of Texas, Inc.,
Houston, Texas
Order Approving

Acquisition

of Bank

First City Bancorporation of Texas, Inc., Houston, Texas, a bank holding company within the
meaning of the Bank Holding Company Act, has
applied for the Board's approval under section
3(a)(3) of the Act (12 U S C. § 1842(a)(3)) to
acquire all of the voting shares (less directors'
qualifying shares) of the successor by merger to
The Lufkin National Bank, Lufkin, Texas
( " B a n k " ) . The bank into which Bank is to be
merged has no significance except as a means to
facilitate the acquisition of the voting shares of
Bank. Accordingly, the proposed acquisition of
shares of the successor organization is treated
herein as the proposed acquisition of the shares
of Bank.
Notice of the application, affording opportunity
for interested persons to submit comments and
views, has been given in accordance with § 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, including

970

Federal Reserve Bulletin • December 1978

those of the Department of Justice, in light of the
factors set forth in § 3(c) of the Act (12 U . S . C .
§ 1842(c)).
Applicant, the third largest banking organization
in Texas, controls 29 banks with aggregate deposits of approximately $4.7 billion, representing 7.8
per cent of total commercial bank deposits in
Texas. 1 Acquisition of Bank, with deposits of
$83.1 million, would increase Applicant's share
of Statewide commercial bank deposits by less
than two tenths of one per cent and would not
have an appreciable effect upon the concentration
of banking resources in the State.
Bank is the second largest of five banking organizations in the relevant banking market, 2 and
controls approximately 41.2 per cent of the total
deposits in commercial banks in the market. None
of Applicant's subsidiary banks compete in the
relevant banking market and Applicant's nearest
subsidiary banking office is located approximately
100 miles from Bank in a separate banking market.
From the record it appears that no significant
existing competition would be eliminated between
Bank and any of Applicant's subsidiary banks
upon consummation of this proposal.
With respect to potential competition, the
Department of Justice is of the view that approval
would remove Applicant as a means for deconcentrating the Angelina banking market. 3 While
it appears that consummation of the proposal
would have some adverse effects upon potential
competition, for the reasons indicated below, the
Board concludes that the proposal would have only
slightly adverse competitive effects.
Bank's position in the market has declined from
49.0 per cent, at the time of the Board's denial
action, to 41.2 per cent, and approval would not
appear to have the same adverse effects as was
previously expressed by the Board. With respect
to the attractiveness of the market to de novo entry,
as the Board has already indicated, the Angelina
market is not as attractive as it appeared at the
1
All banking data are as of December 31, 1977, and reflect
bank holding company acquisitions and formations approved
as of August 15, 1978.
2
The relevant banking market is approximated by Angelina
County, Texas.
3
By action of May 1, 1974, the Board denied Applicant's
proposal to acquire Bank in light of the effect such an acquisition would have upon potential competition at that time. Since
that action, the Board has had occasion to review the banking

structure

of

Texas

(63

FEDERAL

RESERVE

BULLETIN

500

(1977)) and to consider the attractiveness of the Angelina
banking market for de novo entry (62 FEDERAL RESERVE
BULLETIN 379 (1976)).




time of the Board's referenced denial action. 4
Moreover, upon consummation of this proposal
there will remain entry points for bank holding
companies not represented in the market. In view
of the foregoing and other facts of record, the
Board concludes that the proposed acquisition
would not have any adverse effect on existing
competition and only a slightly adverse effect on
potential competition.
The financial and managerial resources and future prospects of Applicant, its subsidiaries and
Bank are regarded as generally satisfactory, particularly in view of Applicant's commitment to
provide additional equity capital to Bank. Accordingly, considerations relating to banking factors
are consistent with approval of the application.
Following consummation of the proposal, Applicant intends to assist Bank in providing trust
services to its customers, as well as specialized
lending programs. Affiliation with Applicant will
also enable Bank to offer credit life and disability
insurance to its customers at rates less than the
rates currently charged by Bank. Considerations
relating to the convenience and needs of the community to be served lend some weight toward
approval of the application and outweigh the
slightly adverse competitive effects that will result
from consummation of this proposal. Accordingly,
it is the Board's judgment that the proposed acquisition would be in the public interest and that
the application should be approved.
On the basis of the record, the application is
approved for the reasons summarized above. The
transaction shall not be made 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 acting pursuant to delegated authority.
By order of the Board of Governors, effective
November 1, 1978.
Voting for this action: Chairman Miller and Governors Cold well, Jackson, Partee, and Teeters. Absent and
not voting: Governor Gardner. Dissenting: Governor
Wallich.

[SEAL]

(Signed) J O H N M . W A L L A C E ,
Assistant Secretary of the Board.

4
Board Order of March 23, 1976, approving the application
of Republic of Texas Corporation, Dallas, Texas, to acquire
First Bank & Trust, Lufkin, Texas (62 FEDERAL RESERVE
BULLETIN 378 (1976)).

La w Department

Dissenting

Statement

of Governor

Wallich

I would deny the application of First City Bancorporation to acquire The Lufkin National Bank
for those reasons set forth in the Board's original
denial of this case as well as the reasons in my
Dissenting Statements in the past Texas Commerce
Bancshares, Inc., First City Bancorporation of
Texas, Inc., D E T R O I T B A N K , and Northwest
Bancorporation decisions. 1 The evidence does not
seem to me to support the view that the situation
at hand has changed substantially from the time
when the Board originally considered this proposal. I continue to view the consummation of this
proposal as having adverse effects upon potential
competition which are not outweighed by convenience and needs considerations.
The acquisition of the Lufkin National Bank,
the second largest bank in the relevant market,
by First City Bancorporation, the third largest
banking organization in the State of Texas, would
perpetuate a pattern of acquisition whereby the five
largest banking organizations in Texas acquire the
leading banks in the State's secondary metropolitan areas. Continuation of this trend increases
the size disparity between the largest banking
organizations in Texas and all other banking organizations in the State. In addition, this pattern
encourages bank holding companies to eschew de
novo or foothold entry into attractive and highly
concentrated markets in favor of entry by a less
procompetitive means. While the majority has
already indicated 2 that it does not consider the
Angelina market as attractive for de novo entry
as it appeared at the time it first denied this case,
I disagreed with that determination 3 and continue
to do so, particularly in light of the continued
1
See the Dissenting Statements accompanying the Board
Orders approving the applications of Texas Commerce Bancshares, Inc., Houston, Texas, to merge with The Bancapital
Financial Corporation, Austin, Texas (63 FEDERAL RESERVE
BULLETIN 500 (1977)); First City Bancorporation of Texas,
Inc., Houston, Texas, to acquire City National Bank of Austin,

A u s t i n , T e x a s ( 6 3 FEDERAL RESERVE BULLETIN 6 7 4

(1977));

DETROITBANK Corporation, Detroit, Michigan, to acquire
Lake Shore Financial Corporation, Muskegon, Michigan (63
FEDERAL

RESERVE

BULLETIN

926

(1977));

and

Northwest

Bancorporation, Minneapolis, Minnesota, to acquire First National Bank, Fort Dodge, Iowa, in Fort Dodge, Iowa (63
FEDERAL RESERVE BULLETIN
2

1096

population growth of Angelina County at a rate
faster than that for the State of Texas (15.5 per
cent as compared with 14.6 per cent for the period
1970-1978); also, the ratio of population to banking offices for Angelina County remains higher
than that for the State of Texas (11,400 as against
9,294). Moreover, foothold entry is possible by
acquisition of one of the smaller banks in the
market. Finally, as in the acquisition by Republic
of Texas Corporation of First Bank & Trust, which
is also located in the Lufkin market, this acquisition could further solidify the position of Lufkin
National Bank in the market and thereby contribute
to the continuation of an already high degree of
market concentration, without any countervailing
public benefits. Accordingly, consummation of
this proposal would, in my view, eliminate a
potential entrant into the market without some
offsetting procompetitive benefits.
In light of the above, I would deny this application.

First National Holding Corp.,
Atlanta, Georgia
Order Denying Acquisition

of Bank

First National Holding Corp., Atlanta, Georgia,
a bank holding company within the meaning of
the Bank Holding Company Act, has applied for
the Board's approval under section 3(a)(3) of the
Act (12 U . S . C . § 1842(a)(3)) to acquire 100 per
cent of the voting shares of Gwinnett Bank and
Trust Company, Norcross, Georgia.
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)).
On the basis of the record, the application is
denied for the reasons set forth in the Board's
Statement, which will be released at a later date.
By order of the Board of Governors, effective
November 3, 1978.

(1977)).

Board Order of March 23, 1976, approving the application
of Republic of Texas Corporation, Dallas, Texas, to acquire
First Bank & Trust, Lufkin, Texas.
3
Dissenting Statement of Governors Holland and Wallich
accompanying Board Order of March 23, 1976, approving the
application of Republic of Texas Corporation, Dallas, Texas,
to acquire First Bank & Trust, Lufkin, Texas.




971

Voting for this action: Chairman Miller and Governors Wallich, Coldwell, Jackson, Partee, and Teeters.
Absent and not voting: Governor Gardner.

[SEAL]

(Signed) J O H N M . W A L L A C E ,
Assistant Secretary of the Board.

972

Federal Reserve Bulletin • December 1978

Statement by
Board of Governors of the
Federal Reserve System
Regarding Application of
First National Holding Corp. to Acquire
Gwinnett Bank and Trust Company
First National Holding Corp., Atlanta, Georgia,
a bank holding company within the meaning of
the Bank Holding Company Act, applied for the
Board's approval under section 3(a)(3) of the Act
(12 U.S.C. § 1842(a)(3)) to acquire all of the
voting shares of Gwinnett Bank and Trust Company ( " B a n k " ) , Norcross, Georgia. Notice of the
application was given in accordance with section
3(b) of the Act, and the time for filing comments
and views had expired. The Board 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)), and by Order dated November
3, 1978, the Board denied this application for the
reasons set forth below.
Applicant, the third largest bank holding company in Georgia, controls four subsidiary banks 1
with aggregate deposits of $1.58 billion, representing 11.0 per cent of the total deposits in
commercial banks in the State. 2 Acquisition of
Bank, with deposits of $24.4 million, would increase Applicant's share of deposits in commercial
banks in Georgia by less than two-tenths of one
per cent and would not have an appreciable effect
upon the concentration of banking resources in the
State.
Bank is the 27th largest bank in the Atlanta
banking market, 3 with 0.38 per cent of the deposits
in commercial banks in that market. Applicant's
lead bank is the second largest banking organization in the relevant market, with deposits of $1.4
billion, representing 22.3 per cent of deposits in
commercial banks in that market. While Applicant's lead bank operates 59 branches in the market, none of these branches is located in the county
of Bank, and State law precludes intercounty
branching and de novo entry by bank holding
companies. Accordingly, while consummation of

1
One of Applicant's subsidiary banks, The Bank of Dalton,
Dalton, Georgia (deposits of $ 2 2 . 7 million), must be divested
in accordance with a previous Board Order. 63 FEDERAL

RESERVE BULLETIN 9 2 9

this proposal would eliminate some existing competition between Applicant's banking subsidiaries
and Bank, the Board concludes that Applicant's
acquisition of Bank would not have significantly
adverse competitive effects in any relevant area.
The financial and managerial resources of Bank
are generally satisfactory, and its future prospects
appear favorable. As the Board has stated on a
number of occasions, however, a bank holding
company should be a source of financial and managerial strength for its subsidiaries. With respect
to Applicant, the Board stated in its September
28, 1977, Order approving the acquisition by Applicant of First Bank of Savannah, Savannah, and
The First National Bank of Dalton, Dalton, that
"Applicant should continue to strengthen [its]
financial resources before it attempts to expand
through proposals involving a diversion of its
existing resources." While the Board finds that
Applicant's financial condition has improved since
that Order was issued, the Board believes that
more substantial improvement should occur and
that Applicant is thus premature in submitting to
the Board a proposal for this acquisition. It is the
Board's view that at the present time Applicant
should continue to direct its resources toward
strengthening the financial position of its existing
structure. Accordingly, the Board concludes that
the banking factors of Applicant's proposal weigh
against approval of this application.
There is no evidence to indicate that the banking
needs of the community served by Bank are not
being met currently. Applicant proposes to expand
both the consumer and commercial services offered through Bank, principally by introducing the
expanded services and automation Applicant has
already made available through its other banking
subsidiaries. Consequently, convenience
and
needs considerations lend some weight toward
approval of the application. However, they are not
sufficient, in the Board's judgment, to outweigh
the adverse banking factors reflected in the record.
Accordingly, it is the Board's judgment that consummation of the proposal at this time would not
be in the public interest and that the application
should be denied.
Board of Governors of the Federal Reserve
System, effective November 8, 1978.

(1977).

2

All banking data are as of December 31, 1977.
The Atlanta banking market is approximated by the counties of Fulton, De Kalb, Cobb, Gwinnett, Douglas, Henry,
Clayton, and Rockdale.
3




[SEAL]

(Signed) J O H N M . W A L L A C E ,
Assistant Secretary of the Board.

La w Department

First Railroad & Banking Company of Georgia,
Augusta, Georgia

973

First Railroad & Banking Company of Georgia,
Augusta, Georgia, has applied for the Board's
approval under section 3(a)(3) of the Bank Holding
Company Act (12 U . S . C . § 1842(a)(3)) to acquire
80 per cent of the voting shares of First Georgia
Bank ( " B a n k " ) , Atlanta, Georgia, through a conversion of preferred shares of Bank that Applicant
acquired in 1975 with Board consent. 1
Notice of the application, affording opportunity
for interested persons to submit comments, has
been given in accordance with section 3(b) of the
Act. The time for filing comments has expired,
and the Board has considered the application and
all comments received in light of the factors set
forth in section 3(c) of the Act (12 U . S . C .
§ 1842(c)).
Applicant, the sixth largest banking organization in Georgia, controls one bank with aggregate deposits of approximately $279 million, representing 2 per cent of the total commercial bank
deposits in the State. 2 Acquisition of Bank ($92
million in deposits) would increase Applicant's
share of deposits Statewide by 0.6 per cent and
would not result in a significant increase in the
concentration of banking resources in Georgia.
Bank is the eighth largest of 32 banking organizations operating in the Atlanta banking market,
controlling 1.4 per cent of market deposits. 3 Applicant's banking subsidiary is located approximately 140 miles from Bank in a separate banking
market, and no significant existing competition
would be eliminated between Bank and Applicant's subsidiary bank by consummation of this
proposal. Although Applicant's finance company
subsidiary maintains one office in the Atlanta
banking market, the amount of existing competition between this subsidiary and Bank that would
be eliminated is slight since the finance company
office has total receivables of only $700,000. Applicant proposes to enter the market through the
acquisition of a bank having a small market share

of deposits. Moreover, it does not appear likely
that Bank would, at any time in the near future,
develop the potential to become the lead bank of
a regional banking organization. Accordingly, on
the basis of the size of Bank and Applicant and
other facts of record, the Board concludes that
consummation of the proposal would not have any
significant adverse effects upon competition.
The financial and managerial resources and future prospects of Applicant and its subsidiaries are
generally satisfactory, and those of Bank are consistent with approval in view of recent improvement in Bank's financial resources and the likelihood that affiliation with Applicant will further
strengthen Bank's financial and managerial resources and enhance its future prospects. Thus,
banking factors are consistent with approval of this
application.
Applicant plans to introduce some new services
to customers of Bank, including expanded time
and savings deposit programs, as well as leasing
and on-site trust services. In addition, affiliation
with Applicant will give Bank access to the specialized lending skills of the officers of Applicant's
largest banking subsidiary. These considerations
relating to the convenience and needs of the community to be served lend some weight toward
approval of the application and outweigh any adverse competitive effects that might result from
consummation of this proposal. Based upon the
foregoing and other considerations reflected in the
record, it is the Board's judgment that the proposed acquisition is in the public interest and that
the application should be approved.
On the basis of the record, the application is
approved for the reasons summarized above. The
transaction shall not be consummated before the
thirtieth calendar day following the effective date
of this Order, or later than three months after the
effective date of this Order unless such period is
extended for good cause by the Board, or by the
Federal Reserve Bank of Atlanta pursuant to delegated authority.
By order of the Board of Governors, effective
November 2, 1978.

1
Absent the Board's prior consent, such an acquisition of
convertible shares in some circumstances could represent an
acquisition of voting shares within the meaning of section 3(a)
of the Act without prior approval. Fulton National Corporation,

Voting for this action: Chairman Miller and Governors Wallich, Coldwell, Jackson, Partee, and Teeters.
Absent and not voting: Governor Gardner.

Order Approving

Acquisition

6 4 FEDERAL RESERVE BULLETIN

121

of Bank

(1978).

2

All banking data are as of December 31, 1977.
3
The Atlanta banking market is approximated by the counties of Fulton, DeKalb, Cobb, Douglas, Gwinnett, Henry,
Clayton, and Rockdale, Georgia.




[SEAL]

(Signed) J O H N M . W A L L A C E ,
Assistant Secretary of the Board.

974

Federal Reserve Bulletin • December 1978

Georgia Bancshares, Inc.,
Macon, Georgia
Order
Approving
Formation of Bank Holding

Company

Georgia Bancshares, Inc., Macon, Georgia, 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 100 per cent of the
voting shares of the successor by merger to The
Georgia Bank and Trust Company, Macon, Georgia ( " B a n k " ) . The company into which Bank is
to be merged has no significance except as a means
to facilitate the acquisition of the voting shares
of Bank. Accordingly, the proposed acquisition of
shares of the successor organization is treated
herein as the proposed acquisition of the shares
of Bank.
Notice of the application, affording opportunity
for interested persons to submit comments and
views, has been given in accordance with section
3(b) of the Act. The time for filing comments and
views has expired, and the Board has considered
the application and all comments received in light
of the factors set forth in section 3(c) of the Act
(12 U.S.C. § 1842 (c)).
Applicant is a nonoperating corporation formed
for the purpose of acquiring Bank, the fifteenth
largest bank in the State of Georgia. 1 Bank holds
approximately $84.5 million in deposits, representing 0.58 per cent of deposits in commercial
banks in the State; it is the second largest of twelve
banks located in the relevant banking market, 2
with approximately 23.2 per cent of total deposits
in commercial banks in that market. The proposal
is essentially a reorganization of existing ownership interests, and Applicant neither engages in
any activity directly nor holds shares of any other
bank or nonbank firm. Furthermore, none of Applicant's principals, officers or directors hold any
interest in, or serve in a similar capacity, with
any other bank located in the relevant market. It
appears that consummation of the proposal would
not eliminate competition or increase the concentration of banking resources in any relevant area. 3
Thus, the Board concludes that the effects of the
1

All banking data are as of March 3 1 , 1978.
The relevant market is approximated by Bibb, Houston,
Jones, and T w i g g s Counties, all in the State of Georgia.
3
Originally, Applicant proposed that its board of directors
would include eight directors w h o serve as directors or honorary directors of five savings and loan associations in M a c o n ,
Georgia. In response to Congress' passage of the Financial
2




proposal on competition are consistent with approval of the application.
The financial and managerial resources of Applicant, which are dependent upon those of Bank,
are regarded as satisfactory, and their future prospects appear favorable. Accordingly, banking factors are consistent with approval of the application.
Although Applicant does not propose to institute
any new services in connection with its acquisition
of Bank, considerations relating to the convenience and needs of the community to be served
are consistent with approval of the application. It
is the Board's judgment that the proposed transaction would be consistent with the public interest
and that the application should be approved.
On the basis of the record, the application is
approved for the reasons summarized above. The
transaction shall not be made before the thirtieth
calendar day following the effective date of this
Order or later than three months after the effective
date of this Order, unless such period is extended
for good cause by the Board, or by the Federal
Reserve Bank of Atlanta pursuant to delegated
authority.
By order of the Board of Governors, effective
November 1, 1978.
Voting for this action: Chairman Miller and Governors Wallich, Coldwell, Jackson, Partee, and Teeters.
Absent and not voting: Governor Gardner.

[SEAL]

(Signed) J O H N
Assistant Secretary

M.

WALLACE,

of the

Board.

Hawkeye Bancorporation,
Des Moines, Iowa
Order Granting
Request for
Reconsideration
and Approving Acquisition of Bank
Hawkeye Bancorporation, Des Moines, Iowa,
( " H a w k e y e " ) , a bank holding company within the

Institutions Regulatory Act of 1978 ( " F I R A " ) , which is currently awaiting the President's signature, Applicant has c o m mitted that it will not have any interlocking directors or officers
with any savings and loan association in the relevant market.
The FIRA includes a prohibition against, inter alia, director
interlocks b e t w e e n depository institutions, including c o m m e r cial banks and savings and loan associations, and bank holding
companies. W h i l e the FIRA "grandfathers" interlocks that
existed on the date of its enactment, it appears that the
interlocks proposed by Applicant in this case w o u l d not qualify
for the grandfather e x e m p t i o n . (See Board Order dated October
2 7 , 1978, approving the application by Commercial Bankshares, Inc., Griffin, Georgia, to b e c o m e a bank holding
company.)

Law Department

meaning of the Bank Holding Company Act; has
applied for the Board's approval under section
3(a)(3) of the Act (12 U . S . C . § 1842(a)(3)) to
acquire all of the voting shares (less directors'
qualifying shares) of Second National Bank, Eldora, Iowa ( " B a n k " ) , through the acquisition of
all of the voting shares of Second Bancorporation,
Eldora, Iowa ( " B a n c o r p o r a t i o n " ) .
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, including those submitted by the Iowa Department
of Banking, in light of the factors set forth in
section 3(c) of the Act (12 U . S . C . § 1842(c)).
By Order dated March 7, 1978, the Board
denied Hawkeye's application to acquire Bank.
Hawkeye has requested reconsideration of that
Order. The request for reconsideration is filed
pursuant to section 262.3(g)(5) of the Board's
Rules of Procedure, which provides that the Board
will not grant any request for reconsideration
"unless the request presents relevant facts that,
for good cause shown, were not previously presented to the Board, or unless it otherwise appears
to the Board that reconsideration would be approp r i a t e . " Hawkeye bases its request upon certain
information relating to the Board's definition of
the relevant banking market. The Board has examined the entire record in this application, and
finds that the request for reconsideration raises
relevant factual issues that appear appropriate in
the public interest for the Board to consider. Accordingly, the request for reconsideration is
granted and the Board's Order of March 7, 1978,
relating to Hawkeye is hereby vacated.
Applicant, the third largest banking organization
in Iowa, controls 17 banks with aggregate deposits
of approximately $559.9 million, representing 4.2
per cent of total deposits in commercial banks in
Iowa. 1 Acquisition of Bank, with deposits of $12.8
million, would increase Applicant's share of commercial bank deposits in Iowa by one-tenth of 1
per cent and would not have an appreciable effect
upon the concentration of banking resources in the
State.
Bank is the fifth largest of nine commercial
banking organizations in the relevant banking
1
Unless otherwise indicated, banking data are as of June
30, 1977.




975

market, 2 and controls 9.2 per cent of deposits in
commercial banks in the market. None of Hawkeye's subsidiary banks compete in the relevant
banking market, and Hawkeye's nearest subsidiary
bank is located in an adjacent, but separate, banking market. 3 From the entire record in this application, it appears that no significant competition
presently exists between Hawkeye's banking subsidiary and Bank, and it appears unlikely that any
significant competition will develop in the future.
Accordingly, consummation of this proposal
would not have any adverse effect upon competition. Therefore, the Board concludes that competitive considerations are consistent with approval
of the application.
The financial and managerial resources of Applicant and its subsidiaries are regarded as satisfactory, and their future prospects appear favorable. The financial and managerial resources and
future prospects of Bank are regarded as generally
satisfactory. Accordingly, considerations relating
to banking factors are consistent with approval of
the application. Upon consummation of the proposal, Applicant intends to assist Bank in providing its customers with additional services, such
as farm management, investment advice and data
processing. Therefore, considerations relating to
the convenience and needs of the community to
be served are consistent with approval. Accordingly, it is the Board's judgment that, upon consideration of all the facts of record, approval of
the application would be consistent with the public
interest and the application should be approved.
On the basis of the record, the application is
approved for the reasons summarized above. The
transaction shall not be made (a) before the thirtieth calendar day following the effective date of
this Order or (b) later than three months after the
effective date of this Order, unless such period
2
The relevant banking market is approximated by Hardin
County, Iowa.
3
In its Order of March 7, 1978, the Board defined the
relevant banking market to include a portion of Hardin County
and adjacent Grundy County in which one of Hawkeye's
banking subsidiaries is located. On that basis the Board concluded that the elimination of existing competition in that
market that would result from the proposed transaction was
an adverse factor that warranted denial of the application. In
light of Hawkeye's request for reconsideration, the Board has
reexamined its earlier findings with regard to the relevant
banking market, and based on the entire record in this application, particularly the distance between Bank and Applicant's
subsidiary bank and the lack of commercial intercourse between the cities in which these banks are located, the Board
has concluded that the relevant banking market in which to
analyze the competitive effects of this proposal should be
limited to Hardin County, Iowa.

976

Federal Reserve Bulletin • December 1978

is extended for good cause by the Board, or by
the Federal Reserve Bank of Chicago pursuant to
delegated authority.
By order of the Board of Governors, effective
November 3, 1978.
Voting for this action: Chairman Miller and Governors Wallich, Coldwell, Partee, and Teeters. Absent and
not voting: Governors Gardner and Jackson.

[SEAL]

(Signed) GRIFFITH L . G A R W O O D ,
Deputy Secretary of the Board.

Hunter Holding Co.,
Hunter, North Dakota
Order Denying
Formation of a Bank Holding

Company

Hunter Holding Co., Hunter, North Dakota, has
applied for the Board's approval under section
3(a)(1) of the Bank Holding Company Act of 1956
(12 U . S . C . § 1842(a)(1)) of formation of a bank
holding company by acquiring 100 per cent of the
voting shares (less directors' qualifying shares) of
Security State Bank of Hunter ( " B a n k " ) , Hunter,
North Dakota.
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 is a nonoperating corporation with no
subsidiaries, organized for the purpose of becoming a bank holding company through the acquisition of Bank, which has deposits of $7.8 million. 1
Upon acquisition of Bank, Applicant would control the 102nd largest bank in North Dakota,
controlling 0.2 per cent of the total deposits in
commercial banks in the State.
Bank is the 17th largest of 23 banking organizations in the Fargo-Moorhead banking market, 2
controlling 1.2 per cent of the market's commercial bank deposits. This proposal involves a restructuring of Bank's ownership from individuals
to a corporation controlled by the same individuals. One of Applicant's principals has a controlling interest in a second bank holding company.
1

All banking data are as of March 31, 1978.
The Fargo-Moorhead banking market is approximated by
Cass County, North Dakota, and Clay County, Minnesota.
2




However, the banking subsidiary of that holding
company is located outside Bank's market. It
appears from the facts of record that consummation of the proposal would not result in any increase in the concentration of banking resources
or any adverse effects upon competition in any
relevant area. Thus, the Board concludes that
competitive considerations are consistent with approval.
The Board has indicated on previous occasions
that a holding company should serve as a source
of financial and managerial strength to its subsidiary banks, and the Board examines closely the
managerial resources, financial condition, and future prospects of each applicant with this consideration in mind. 3 In this case, the Board concludes
that the record presents adverse considerations that
warrant denial of the proposal to form a bank
holding company.
With respect to financial considerations, the
Board notes that Applicant would incur debt in
connection with its proposed acquisition of Bank's
shares. Applicant proposes to service this debt
over a 12-year period with dividends to be declared
by Bank. In the Board's view, Applicant's projected income would not provide Applicant sufficient financial flexibility to service its acquisition
debt without adversely affecting the capital position of Bank, or to meet any unexpected problems
that might arise at Bank, even using projections
based on the figures provided by Applicant. Neither does it appear that the planned sale of Bank's
capital notes or other steps proposed by Applicant
will sufficiently improve the financial resources
and future prospects of Applicant or Bank or
enable Applicant to serve as a source of strength
to Bank. Therefore, the Board concludes that
considerations relating to financial resources and
future prospects weigh against approval of this
application.
Applicant's principals acquired control of Bank
in December, 1974. Material in the record reflects
that Bank's earnings and capital position have
3
The Bank Holding Company Act requires that the Board,
in acting upon an application to acquire a bank, inquire into
the financial and managerial resources of an applicant. While
this proposal involves the transfer of the ownership of Bank
from individuals to a corporation owned by the same individuals, the Act requires that before an organization is permitted
to become a bank holding company and thus obtain the benefits
associated with the holding company structure, it must secure
the Board's approval. Section 3(c) of the Act provides that
in every case the Board must consider, among other things,
the financial and managerial resources of both the applicant
company and the bank to be acquired.

Law Department

generally been lower than those of similarly situated banks in the State. Such results appear to be
attributable at least in part to the policies and
practices of Applicant's principals; and the Board
is unable to conclude that managerial considerations lend any weight toward approval of this
application.
No significant changes in Bank's operations or
in the services offered to Bank's customers are
anticipated to follow from consummation of the
proposed acquisition. Consequently,
considerations relating to the convenience and needs of
the community to be served are consistent with
but do not lend weight toward approval of this
application.
On the basis of the circumstances concerning
this application, the Board concludes that the
banking considerations involved in this proposal
present adverse factors bearing upon the financial
resources and future prospects of Applicant and
Bank. Such adverse factors are not outweighed by
any procompetitive effects or by benefits to the
convenience and needs of the community. Accordingly, it is the Board's judgment that approval
of the application would not be in the public
interest and that the application should be denied.
On the basis of the facts of record, the application is denied for the reasons summarized above.
By order of the Board of Governors, effective
November 29, 1978.
Voting for this action: Chairman Miller and Governors Coldwell, Partee, and Teeters. Absent and not
voting: Governor Wallich.

[SEAL]

(Signed) G R I F F I T H L. G A R W O O D ,
Deputy Secretary of the Board.

John-Wade Co.,
Santa Ana, California
Order
Approving
Formation of Bank Holding

Company

John-Wade Co., Santa Ana, California, 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 retaining approximately 60
per cent of the voting shares of Coast Bancorp,
Long Beach, California, a bank holding company
that controls Coast Bank ( " B a n k " ) , Long Beach,
California.
Notice of the application, affording opportunity




977

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)).
This application concerns the acquisition of an
indirect interest in Bank in violation of the Act.
Upon the effective date of the 1970 Amendments
to the Act, which brought one-bank holding companies within the Act's coverage, Applicant's
principals owned all the shares of Applicant and
of two other companies, Sierra Rock Products
Company ( " S i e r r a " ) and Orange County Rock
Products Company ( " O r a n g e C o u n t y " ) , which
respectively held 24 per cent and 35 per cent of
the voting shares of Coast Bancorp. These companies had acquired their interests in Bank before
June 30, 1968. By virtue of its indirect ownership
of more than 25 per cent of Bank, Orange County
was required to register as a bank holding company, but failed to do so, in violation of section
5(a) of the Act. In 1973 the two companies merged
into Applicant without the Board's prior approval,
a transaction that caused Applicant, which had no
prior interest in Bank, to become a bank holding
company indirectly controlling a majority of
Bank's shares, in violation of the Act. 1
The record reflects that this merger was undertaken on advice of counsel as an estate planning
measure and to simplify the business affairs of
Applicant's principals. In addition, it appears that,
while Applicant and its predecessor, Orange
County, were late in learning of their responsibilities under the Act, as soon as Applicant
learned of them it acted responsibly and in good
faith, contacting its Reserve Bank promptly and
cooperating fully with the Federal Reserve System
in seeking to resolve this matter. Applicant has
also furnished the Board definite and satisfactory
undertakings regarding its future conduct, and by
voluntarily relinquishing certain exemption privileges to which it might otherwise be entitled,
1
In addition, in 1976 Applicant acquired an additional 154
shares of Coast Bancorp, increasing its ownership of that
company from 5 9 . 4 9 to 5 9 . 9 8 per cent, in reliance on section
3(a)(B) of the Act, which permits a bank holding company
controlling a majority of a bank's shares to acquire additional
shares without prior Board approval. The privilege of section
3(a)(B) is available only to bank holding companies that lawfully control a majority of a bank's shares. Since Applicant
did not, its 1976 purchase was in violation of the Act, though
based on a reasonable misunderstanding of section 3(a)(B).

978

Federal Reserve Bulletin • December 1978

Applicant has provided sufficient evidence to persuade the Board that Applicant's future conduct
will be subject to adequate supervision and conform to the requirements of the Act. In accordance
with its policy regarding violations of the Act and
upon examination of all the facts of record, the
Board has concluded that Applicant's violations
do not reflect so adversely on Applicant's managerial resources as to require denial of its application to retain shares of Coast Bancorp.
By retaining its indirect interest in Bank, which
holds deposits of $41 million, Applicant would
control the 89th largest banking organization in
California and approximately 0.04 per cent of the
total deposits in commercial banks in the State. 2
Bank is the 61st largest commercial bank competing in the relevant banking market, holding approximately 0.1 per cent of the total deposits in
commercial banks in that market. 3 Since Applicant
has no other bank subsidiaries and is not under
common control with any other bank or bank
holding company, and since the merger by which
Applicant acquired Coast Bancorp's shares was in
the nature of a reorganization and consolidation
of existing interests in Bank by Applicant's
principals, it appears that retention of Applicant's
indirect interest in Bank would not have any adverse effect on competition or concentration of
banking resources in any relevant area, and that
its original acquisition of that interest did not have
any adverse effect. Thus, the Board concludes that
the effects of this proposed retention on competition are consistent with approval of the application.
In light of undertakings by Applicant that would
govern its future conduct and restrict its future
nonbank expansion, the financial and managerial
resources of Applicant are considered generally
satisfactory, as are the managerial and financial
resources of Bank and Coast Bancorp, and their
future prospects appear favorable. Thus, banking
factors are consistent with approval of the application.
Central to the Board's conclusion regarding
Applicant's managerial and financial resources,
however, is Applicant's agreement to curtail future
unsupervised expansion. Applicant now owns and
manages some real property in California and

2
Banking data are as of December 31, 1977, except as
otherwise noted.
3
The relevant banking market is approximated by the Los
Angeles RMA. Market data are as of June 30, 1977.




Hawaii, which it acquired between 1958 and 1973.
It appears that this ownership is permissible under
section 4(c)(ii) of the Act, 4 and the Board believes
that continued ownership will not jeopardize or
impair the financial resources of any organization
involved in this application.
However, Applicant has waived all rights under
the Act's exemption with respect to its future
acquisitions and activities. In the future it will not
acquire new properties or engage in new nonbank
activities except on the same terms applicable to
bank holding companies having no exemption or
grandfather rights, and then only with Board approval required for such other bank holding companies. This agreement is part of a series of
undertakings by Applicant designed to encourage
closer consultation between Applicant and the
Federal Reserve System, and to ensure that Applicant's future conduct will be in compliance with
the Act and subject to adequate supervision, to
the end that Applicant's financial resources will
be protected and the violations of the Act by
Applicant and its predecessor, Orange County,
will not recur. The agreement also recognizes the
fact that, while Applicant is the successor to
Orange County, a company covered in 1970 and
having exemption rights under section 4(c)(ii) of
the Act, it is also the successor to Sierra, a
company having no exemption or grandfather
rights under the Act. The retention by Applicant
of Sierra's indirect interest in Bank represents a
material expansion in a single organization of the
banking interest that gave rise to Orange County's
4
Orange County was a bank holding company covered in
1970 that, because of its ownership by a single family, was
entitled to the benefits of the family exemption of section
4(c)(ii) of the Act. Under that section Orange County could
have retained its nonbank assets and activities, whether or not
retention would have been permissible for other bank holding
companies under section 4(c)(8) of the Act, and it could have
expanded those activities and commenced new activities without Board approval. For example, under the family exemption,
Orange County could have acquired Applicant's real property
even though the Board has determined real estate development
and management to be impermissible for bank holding companies. Because all three companies that were merged in 1973
have at all times been wholly owned by the same family,
Applicant's acquisition of Orange County's indirect interest
in Bank effected no substantial change in the control of Bank
or the beneficial ownership of Bank's shares. Accordingly,
under section 2(e) of the Act, Applicant should be viewed as
a successor to Orange County and entitled to its rights under
the family exemption of the Act with respect to the retention
of its nonbank assets and activities. These assets and activities
will cease to be protected by the family exemption if at any
time 15 per cent or more of Applicant's shares become owned
by persons other than members of the family that now owns
those shares, and divestiture would then be required.

Law Department

exemption, and the Board regards the retention of
that interest acquired from Sierra as warranting
termination of Applicant's future exemption privileges as an appropriate condition to approval of
this application.
Although this application involves the retention
of an indirect interest in Bank, and its approval
would effect no changes in the banking services
offered by Bank, considerations relating to the
convenience and needs of the community to be
served are consistent with approval of the application. It has been determined that Applicant's retention of its shares of Coast Bancorp, subject to
the commitments of record, would be in the public
interest and that its application should be approved.
On the basis of the record, the application is
approved for the reasons and subject to the conditions summarized above.
By order of the Board of Governors, effective
November 1, 1978.
Voting for this action: Chairman Miller and Governors Wallich, Coldwell, Jackson, Partee, and Teeters.
Absent and not voting: Governor Gardner.

[SEAL]

(Signed) J O H N M. W A L L A C E ,
Assistant Secretary of the Board.

Keystone Bancshares, Inc.,
Monona, Iowa
Order Approving
a Bank Holding

Formation
Company

of

Keystone Bancshares, Inc., Monona, Iowa, has
applied for the Board's approval under section
3(a)(1) of the Bank Holding Company Act (12
U . S . C . § 1842(a)(1)) to become a bank holding
company through the acquisition of 80 per cent
or more of the voting shares of Peoples State Bank,
Elkader, Iowa ( " B a n k " ) .
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 is a nonoperating Iowa corporation
organized for the purpose of becoming a bank
holding company by acquiring Bank ($4.9 million




979

in deposits). 1 Upon acquisition of Bank, Applicant
would control the 604th largest banking organization in Iowa and approximately 0.03 per cent
of total deposits in commercial banks in the State.
Bank is the eighth largest of nine banks located
in the Elkader banking market 2 and holds approximately 5.4 per cent of the market's commercial
bank deposits. This proposal involves a restructuring of Bank's ownership from individuals to a
corporation controlled by the same individuals.
Applicant's two principals, who also serve as
officers and directors of Applicant, are principals
of a one-bank holding company and its subsidiary
bank, Union State Bank, Monona, Iowa ( " U n i o n
B a n k " ) , located in Bank's market. Union Bank
($10.2 million in deposits) is the fifth largest bank
in the market, controlling 11.2 per cent of market
deposits. At the time Applicant's principals acquired control of Bank, in January 1970, they
indirectly held the controlling interest in Union
Bank and served as its president and vice president. Bank and Union Bank together controlled
12.5 per cent of the deposits in the Elkader market,
or 2.7 per cent and 9.8 per cent, respectively. 3
Although the acquisition of Bank by Applicant's
principals eliminated some competition existing at
that time between Bank and Union Bank, in the
Board's judgment, the acquisition had only
slightly adverse effects upon competition. Upon
consummation of the subject proposal, the two
banks controlled by Applicant's principals would
hold aggregate deposits representing 16.6 per cent
of market deposits or slightly more than the deposits held by the market's second largest banking
organization. While approval of the subject proposal would further solidify the relationship between the two affiliated banks and reduce the
likelihood that the banks would become independent competitors in the future, based upon all
of the facts of record, including the small size of
the two banks, their rank in the market, and the
presence of banking alternatives in the Elkader
banking market, it appears that consummation of
the proposal would have only slightly adverse
effects upon competition.
Where principals of an applicant are engaged
in operating a chain of one-bank holding companies, the Board has indicated that it is appropriate
1
All deposit data are as of December 31, 1977, unless
otherwise noted.
2
The Elkader banking market is approximated by Clayton
County, Iowa.
3
Deposit data are as of December 31, 1969.

980

Federal Reserve Bulletin • December 1978

to apply multi-bank holding company standards in
assessing the financial prospects both of an applicant seeking to become a bank holding company
and of its proposed subsidiary bank. 4 Based upon
such analysis in this case, the financial and managerial resources and future prospects of Applicant,
Bank, and the affiliated bank and bank holding
company appear to be generally satisfactory, particularly in light of certain commitments made by
Applicant in connection with this application. The
future prospects of Applicant are entirely dependent upon the resources of Bank. Applicant proposes to service the debt to be incurred over a
twelve-year period through dividends to be declared by Bank and the tax benefit to be derived
from filing consolidated tax returns. In light of the
past earnings of Bank and Applicant's commitments, the anticipated growth in Bank earnings
appears to provide Applicant with sufficient financial flexibility to meet its annual debt servicing
requirements, while maintaining an adequate capital position for Bank. Therefore, considerations
relating to banking factors are consistent with
approval of the application.
Since Applicant's principals acquired control of
Bank in 1970, Bank has improved its banking
services to its customers, and recently has established a new office in Elkader, Iowa, to better serve
the convenience of Bank's customers. Following
consummation of the transaction, Applicant intends to assist Bank in continuing to provide these
banking services and to aid Bank in the construction of a new physical facility for its Elkader
office. These considerations relating to convenience and needs of the community to be served,
while not substantial, lend some weight toward
approval of this application. Accordingly, it is the
Board's judgment that the proposed acquisition
would be in the public interest and that the application should be approved.
On the basis of the record, the application is
approved for the reasons summarized above. The
transaction shall not be consummated before the
thirtieth calendar day following the effective date
of this Order or later than three months after the
effective date of this Order, unless such period
is extended for good cause by the Board, or by
the Federal Reserve Bank of Chicago pursuant to
delegated authority.
4
See, e.g., the Board's Order dated June 14, 1976, denying
the application of Nebraska Banco, Inc., Ord, Nebraska, to
become a bank holding company (62 FEDERAL RESERVE BUL-

LETIN 6 3 8

(1976)).




By order of the Board of Governors, effective
November 1, 1978.
Voting for this action: Chairman Miller and Governors Wallich, Coldwell, Jackson, Partee, and Teeters.
Absent and not voting: Governor Gardner.
( S i g n e d ) JOHN M . WALLACE,

[SEAL]

Assistant

Secretary

of the

Board.

Otto Bremer Company,
St. Paul, Minnesota
Order Approving

Acquisition

of Bank

Otto Bremer Company, St. Paul, Minnesota, a
bank holding company within the meaning of the
Bank Holding Company Act, has applied for the
Board's approval under § 3(a)(3) of the Act (12
U . S . C . § 1842(a)(3)) to acquire 68.2 per cent of
the voting shares of First National Bank of Crookston, Crookston, Minnesota ( " B a n k " ) .
Notice of the application, affording opportunity
for interested persons to submit comments and
views, has been given in accordance with § 3(b)
of the Act. The time for filing comments and views
has expired, and the Board has considered the
application and all comments received in light of
the factors set forth in § 3(c) of the Act (12 U . S . C .
§ 1842(c)).
Applicant, a wholly-owned subsidiary of Otto
Bremer Foundation, St. Paul, Minnesota ( " F o u n dation"), is a multi-bank holding company that
proposes to acquire shares of Bank from Foundation as part of a reorganization of Applicant and
Foundation. Applicant has 20 subsidiary banks in
Minnesota and North Dakota. In addition Applicant and Foundation together hold a majority interest in four other banks. The Otto Bremer organization is the third largest banking organization
in Minnesota, with 16 subsidiary banks (including
Bank) holding total deposits of $474.8 million,
which represents 2.9 per cent of total deposits in
commercial banks in the State. 1
Bank (deposits of $31.5 million) is the largest
bank in the relevant banking market, 2 controlling
33.6 per cent of the total deposits in commercial
banks in the market. T w o of Applicant's subsidiary banks are located in the same market and hold
total deposits of $34.4 million representing 36.7
1

Banking data are as of June 30, 1977.
The relevant market is approximated by the southwestern
one-third of Polk County and the northern edge of Norman
County, both in Minnesota.
2

Law Department

per cent of total deposits in commercial banks in
the market. Upon consummation of the proposal
Applicant would control 70.2 per cent of market
deposits. Three independent competitors would
remain in the market.
Although the relevant market will remain highly
concentrated upon consummation of this proposal,
it does not appear that Applicant's proposed acquisition of Bank as part of a corporate reorganization will contribute to the concentration of
banking resources in the market. Bank and Applicant's two bank subsidiaries in the market were
acquired more than 40 years ago by the individual
who established Applicant and Foundation, and
they have remained under common control since
that time. The banks were financially troubled at
the time of acquisition and it does not appear that
their acquisition was anticompetitive at that time.
Because of the long-standing relationship between
Applicant, Foundation and their subsidiary banks
it appears that no meaningful competition exists
between Bank and Applicant's two bank subsidiaries in the relevant market, and the proposed
acquisition of Bank therefore would not eliminate
any existing competition. Accordingly, in view of
the above and other facts of record, competitive
considerations appear consistent with approval of
the application.
The financial and managerial resources of Applicant, its subsidiaries and Bank are regarded as
generally satisfactory and the future prospects of
each appear favorable. Accordingly, banking factors are consistent with approval of the application.
Applicant does not propose to introduce any new
services at Bank in connection with the proposed
acquisition. However, considerations relating to
the convenience and needs of the community to
be served are consistent with approval of the
application. Accordingly, the Board concludes that
approval of the application would be consistent
with the public interest and that the application
should be approved.
On the basis of the record, the application is
approved for the reasons summarized above. The
transaction shall not be made before the thirtieth
calendar day following the effective date of this
Order or later than three months after the effective
date of this Order, unless such period is extended
for good cause by the Board, or by the Federal
Reserve Bank of Minneapolis pursuant to delegated authority.
By order of the Board of Governors, effective
November 3, 1978.




981

Voting for this action: Chairman Miller and Governors Wallich, Coldwell, Partee, and Teeters. Absent and
not voting: Governors Gardner and Jackson.
( S i g n e d ) JOHN M . WALLACE,
[SEAL]

Assistant

Secretary

of the Board.

Republic of Texas Corporation,
Dallas, Texas
Order Approving

Acquisition

of Bank

Republic of Texas Corporation, Dallas, Texas,
a bank holding company within the meaning of
the Bank Holding Company Act, has applied for
the Board's approval under section 3(a)(3) of the
Act (12 U.S.C. § 1842(a)(3)) to acquire all of the
voting shares (less directors' qualifying shares) of
the successor by merger to Texas State Bank,
Austin, Texas ( " B a n k " ) . The bank into which
Bank is to be merged has no significance except
as a means to facilitate the acquisition of the voting
shares of Bank. Accordingly, the proposed acquisition of shares of the successor organization is
treated herein as the proposed acquisition of the
shares of Bank.
Notice of the application, affording opportunity
for interested persons to submit views and recommendations, has been given in accordance with
section 3(b) of the Act (12 U.S.C. § 1842(b)).
The time for filing views and recommendations
has expired, and the application and all comments
have been considered in light of the factors set
forth in section 3(c) of the Act (12 U.S.C.
§ 1842(c)).
Applicant, the fourth largest banking organization in Texas, controls 16 banks with aggregate
deposits of approximately $4.08 billion, representing approximately 6.77 per cent of total deposits in commercial banks in the State. 1 Acquisition of Bank, the 60th largest banking organization
in the State with deposits of $86.5 million, would
increase Applicant's share of commercial bank
deposits in Texas by .14 per cent and would not
alter Applicant's ranking in the State.
Bank is the fifth largest of 21 banking organizations in the relevant banking market, 2 holding
4.6 per cent of the total commercial bank deposits
1
All banking data are as of December 31, 1977, and reflect
bank holding company formations and acquisitions approved
as of September 30, 1978.
2
The relevant banking market is approximated by the Austin
RMA as defined by Rand McNally & Company's 1978 Commercial Atlas & Marketing Guide. It includes most of Travis
and a small part of Williamson Counties.

982

Federal Reserve Bulletin • December 1978

in the market. Bank is the largest bank in the
market not affiliated with a bank holding company.
The four largest banking organizations in the market control, respectively, 26.1, 22.0, 18.1, and
12.7 per cent of market deposits, and three of the
four are affiliated with the State's largest banking
organizations. Applicant does not currently
operate in the market. Bank is located approximately 77 miles from Applicant's nearest subsidiary. Therefore, approval of this application would
have no adverse effect upon existing competition.
Affiliation of Bank with Applicant might decrease
market concentration by the introduction of a new
competitor into the market to compete with the
larger banking organizations in the market. While
consummation of the proposal would reduce the
number of independent banking organizations in
the Austin market, this does not appear to be
significant since a number of independent banks
would remain available as entry vehicles into the
market after consummation of the proposal. In
light of the above and other facts of record, it
is concluded that the proposed acquisition would
have no significantly adverse effects on competition. Thus, it is concluded that competitive considerations are consistent with approval of the
application.
The financial and managerial resources and future prospects of Applicant, its subsidiaries, and
Bank are regarded as generally satisfactory and
consistent with approval of the application, particularly in light of Applicant's commitment to inject
additional capital into Bank upon consummation
of the proposal. Thus, considerations relating to
banking factors are consistent with approval of the
application. Following consummation of the
transaction, Applicant plans to encourage Bank to
expand its commercial and industrial lending activities as well as continue aggressive consumer
banking programs. In addition, Bank will be able
to offer credit life and credit accident and health
insurance to its customers through Applicant's
insurance subsidiary at rates lower than the State's
maximum rates currently being charged by Bank's
carrier. Thus, considerations relating to convenience and needs of the community to be served
lend weight toward approval of the application.
Accordingly, it has been determined that the proposed acquisition would be in the public interest
and that the application should be approved.
On the basis of the record, the application is
approved for the reasons summarized above. The
transaction shall not be made 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 pursuant to delegated
authority.
By Order of the Secretary of the Board, acting
pursuant to delegated authority from the Board of
Governors, effective November 2, 1978.

[SEAL]

(Signed) J O H N
Assistant Secretary

M.

WALLACE,

of the

Board.

Texas American Bancshares, Inc.,
Fort Worth, Texas
Order Approving

Acquisition

of Bank

Shares

Texas American Bancshares, Inc., Fort Worth,
Texas, a bank holding company within the meaning of the Bank Holding Company Act, has applied for the Board's approval under section
3(a)(3) of the Act (12 U . S . C . § 1842(a)(3)) to
acquire 75 per cent of the voting shares of Bank
of Fort Worth ( " B a n k " ) , Fort Worth, Texas.
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, including those filed after the expiration of the comment period on behalf of Ella Jackson and Willie
Wingfield ( " P r o t e s t a n t s " ) , in light of the factors
set forth in section 3(c) of the Act (12 U . S . C .
§ 1842(c)).
Applicant is the seventh largest banking organization in Texas, with ten subsidiary banks holding
total deposits of $1.76 billion, representing 2.9
per cent of total deposits in commercial banks in
the State. 1 Bank, which is not among the larger
banking organizations in Texas, holds total deposits of $91.9 million representing 0.15 per cent of
total deposits in commercial banks in the State.
Bank is presently regarded as a subsidiary of
Applicant because of Applicant's direct ownership
of 24.99 per cent of Bank's outstanding voting
shares and control of an additional 3.5 per cent
of Bank's outstanding voting shares held by Applicant in a fiduciary capacity through the trust
department of Applicant's lead bank, Fort Worth
1

Banking data are as of December 31, 1977.

Law Department

National Bank ( " F W N B " ) , Fort Worth, Texas. 2
Because Bank is already a subsidiary of Applicant,
the effect of the acquisition of the remainder of
Bank's outstanding voting shares will be to consolidate Applicant's control of Bank, and approval
of the application would not result in any increase
in the percentage of bank deposits in the State
deemed to be controlled by Applicant.
Applicant is the largest banking organization in
the Fort Worth banking market with approximately
28.4 per cent of total deposits in commercial banks
in the market. 3 Of this market share 2.5 per cent
is held through Bank, and approval of the subject
application would result in consolidation of Applicant's control over Bank's market share. While
it appears that approval of the application would
eliminate some existing competition between Applicant and Bank, the amount of competition
eliminated would be slight in view of the longstanding relationship between Bank and Applicant's lead bank, F W N B . Bank was organized in
1946 by officers, directors, and shareholders of
F W N B ; a majority of Bank's shares was controlled
by F W N B for eight years, and the two institutions
have remained closely associated. Furthermore, 40
additional banking organizations will remain as
competitors in the Fort Worth banking market, and
the market will remain attractive for de novo entry.
Accordingly, the Board concludes that the proposed acquisition would have only slightly adverse
effects on existing competition.
The financial and managerial resources of Applicant and Bank are regarded as generally satisfactory and the future prospects of each appear
favorable. Accordingly, banking factors are consistent with approval of the application.
In connection with this application Protestants
have claimed that approval of the proposed acquisition would not serve the convenience and needs
of the Fort Worth community because, as they
allege, F W N B engages in illegal discriminatory
employment practices. This protest arises out of
complaints filed by Protestants with the Equal
Opportunity Employment Commission ( " E E O C " )
and subsequent suits filed by them against F W N B
and now pending before the United States District
2
As part of this proposal Applicant seeks authority to retain
the shares of Bank held by it in a fiduciary capacity beyond
a period of two years. Of these shares 1,184 (0.4 per cent)
will remain in the trust department of F W N B , and the remainder will be held directly by Applicant.
3
The Fort Worth banking market is approximated by the
Fort Worth R M A , consisting of Tarrant County and portions
of Denton, Johnson, Parker, and Wise Counties.




983

Court for the Northern District of Texas. In support of their allegations, Protestants state that
between 1971 and 1976, F W N B employed blacks
in less than 14 per cent of its work force, although
1970 census figures estimate that blacks constituted 14 per cent of the work force in the Fort
Worth SMS A, and Protestants claim that other
minorities have been similarly underrepresented.
Protestants believe that Applicant may extend discriminatory employment practices to Bank should
this application be approved.
Discrimination in employment on the basis of
race or sex is unlawful, and evidence of unlawful
conduct by a bank holding company may be relevant to the Board's consideration of applications
under the Act and may clearly bear on the managerial integrity of an applicant. 4 However, with
regard to Protestants' allegations of employment
discrimination, the Board concludes that the evidence submitted by Protestants does not support
any adverse finding regarding Applicant or the
likely effect of its acquisition of Bank.
This conclusion is supported by the actions of
those Federal agencies that are directly responsible
for the enforcement and implementation of equal
employment opportunity laws and regulations as
they affect Applicant. The EEOC has formally
considered Protestants' complaints
regarding
F W N B ' s employment practices and in both cases
has dismissed those complaints as being without
merit. Furthermore, the Treasury Department has
reviewed F W N B ' s equal employment opportunity
program and has certified that F W N B is in compliance with relevant standards pertaining to employment discrimination, and all employment data
submitted by Protestants predate this certification.
Under the circumstances, the Board believes that
Protestants' claims do not support an adverse
finding relevant to this application, and do not
warrant further postponement of Board consideration of this application. Neither does it appear
that Board action on this application will impair
any remedy available to Protestants by law.
In connection with this proposal Applicant proposes to expand Bank's services, including trust
services, payroll processing, and international
banking In addition, Bank will be able to offer
4
The Board notes, however, that there may be limits to
its ability to take into consideration, under the convenience
and needs standard of the Bank Holding Company Act, matters
of significant public interest that nevertheless are not directly
within the scope of the Board's regulatory responsibilities
Inc. v. Board of
under the Act. See Western Bancshares,
Governors, 4 8 0 F.2d 7 4 9 (10th Cir. 1973).

A 984

Federal Reserve Bulletin • December 1978

lower rates on credit-related insurance through
Applicant's insurance subsidiary and will benefit
from Applicant's lending expertise and provision
of data processing facilities. Accordingly, the
Board finds that consideration of the convenience
and needs of the community to be served lends
weight toward approval sufficient to outweigh the
slightly adverse competitive effects associated with
the proposal. It is the Board's judgment that the
proposed transaction is consistent with the public
interest and that the application should be approved.
On the basis of the record, the application is
approved for the reasons summarized above. The
transaction shall not be made before the thirtieth
calendar day following the effective date of this
Order, or later than three months after the effective
date of this Order unless such period is extended
for good cause by the Board, or by the Federal
Reserve Bank of Dallas pursuant to delegated
authority.
By order of the Board of Governors, effective
November 1, 1978.
Voting for this action: Chairman Miller and Governors Wallich, Coldwell, Jackson, Partee, and Teeters.
Absent and not voting: Governor Gardner.
( S i g n e d ) JOHN M .

[SEAL]

Assistant

Secretary

WALLACE,

of the

Board.

ORDER UNDER SECTION 4
OF B A N K HOLDING COMPANY A C T

National Detroit Corporation,
Detroit, Michigan
Order Approving Acquisition of
Pioneer Mortgage
Corporation
National Detroit Corporation, Detroit, Michigan, a bank holding company within the meaning
of the Bank Holding Company Act, has applied
for the Board's approval, under section 4(c)(8) of
the Act (12 U . S . C . § 1843(c)(8)) and section
225.4(b)(2) of the Board's Regulation Y (12
C . F . R . § 225.4(b)(2)), to acquire, through its
wholly owned subsidiary, NBD Mortgage Company ( " N B D " ) , Detroit, Michigan, certain assets
of Pioneer Mortgage Corporation ( " P i o n e e r " ) ,
Upland, California, and to engage in mortgage
banking activities from Pioneer's existing offices.
The proposed activities of originating, marketing,
and servicing mortgage loans have been deter-




mined by the Board to be closely related to banking (12 C . F . R . § 225.4(a)(1) and (3)).
Notice of the application, affording opportunity
for interested persons to submit comments and
views on the public interest factors, has been duly
published (43 Federal Register 47788 (1978)).
The time for filing comments and views has expired, and the Board has considered the application
and all comments received in light of the public
interest factors set forth in section 4(c)(8) of the
Act.
Applicant, the largest bank holding company in
Michigan, controls six banking subsidiaries and
has consolidated assets of $8.6 billion. 1 N B D ($47
million in assets as of September 30, 1978) engages in a general mortgage banking business
through offices in Michigan, Virginia, and California. As of December 1977, NBD had a mortgage servicing portfolio of $844 million and
ranked as the 51st largest mortgage banking firm
in the United States. Currently NBD has a mortgage portfolio of $973 million. Pioneer ($7.1
million in assets) currently services a mortgage
portfolio of approximately $78 million from its
main office in Upland, California, and from its
branch office in Roseville, California. Pioneer
makes and acquires mortgage loans for its own
account and for the account of others. Pioneer also
has a wholly owned subsidiary that offers casualty
insurance. However, Applicant does not intend to
acquire this subsidiary or engage in this activity.
From the record it does not appear that any
competition would be eliminated by consummation of this proposal. N B D ' s California office is
located in San Diego and opened for business in
1978. This office serves a market spearate and
distinct from that served by Pioneer, and Applicant
and Pioneer do not derive business from one
another's market. Moreover, without consummation of this proposal, it is doubtful that Pioneer
could remain a viable competitor in its market.
The Board finds that Applicant's acquisition of
Pioneer would have no adverse effect upon competition.
The acquisition of Pioneer will ensure the continued provision of mortgage banking services
from Pioneer's present locations and should increase the amount of mortgage funds available and
provide improved stability in the flow of mortgage
funds into the communities served. The Board
1
Unless otherwise indicated, all data are as of June 30,
1978.

Law Department

finds that evidence in the record indicates that
consummation of this proposal would not result
in any undue concentration of resources, conflicts
of interest, unsound banking practices, or any
other adverse effects upon the public interest.
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 reports by and make examinations of bank holding companies and their subsidiaries, and to require such modification or termination of the activities of a holding company or
any of its subsidiaries as the Board finds necessary
to assure compliance with the provisions and purposes of the Act and the Board's regulations and
orders issued thereunder, or to prevent evasion
thereof.
The transaction shall be made not later than
three months after the effective date of this Order
unless such period is extended for good cause by
the Board or by the Federal Reserve Bank of
Chicago pursuant to delegated authority.
By order of the Board of Governors, effective
November 22, 1978.
Voting for this action: Chairman Miller and Governors Wallich, Coldwell, Partee, and Teeters.
( S i g n e d ) GRIFFITH L . GARWOOD,

[SEAL]

Deputy Secretary

of the

Board.

PRIOR C E R T I F I C A T I O N P U R S U A N T TO T H E
B A N K H O L D I N G C O M P A N Y T A X A C T OF

1976

Investment Corporation of America,
Minneapolis, Minnesota
[Docket No. TCR 76-150]
Investment Corporation of America, Minneapolis, Minnesota ( " I n v e s c o " ) , has requested
a prior certification pursuant to section 1101(a) of
the Internal Revenue Code ( " C o d e " ) , as amended
by section 2(a) of the Bank Holding Company Tax
Act of 1976 ( " T a x A c t " ) , that Invesco's proposed
pro rata distribution to its shareholders of all its
shares of S&M Company, Minneapolis, Minnesota ( " S & M " ) , is necessary or appropriate to




985

effectuage section 4 of the Bank Holding Company
Act (12 U . S . C . § 1843) ( " B H C A c t " ) .
In connection with this request, the following
information is deemed relevant for purposes of
issuing the requested certification: 1
1. Invesco is a corporation organized on October 22, 1958, under the laws of the State of
Minnesota.
2. On August 26, 1966, Invesco acquired ownership and control of 31,696 shares, representing
approximately 79 per cent of the outstanding voting shares of River Forest State Bank, River
Forest, Illinois ( " B a n k " ) .
3. Invesco became a bank holding company on
December 31, 1970, as a result of the 1970
Amendments to the BHC Act, by virtue of. its
ownership and control at that time of more than
25 per cent of the outstanding voting shares of
Bank, and it registered as such with the Board
on June 28, 1971. Invesco would have been a bank
holding company on July 7, 1970, if the BHC
Act Amendments of 1970 had been in effect on
that date, by virtue of its ownership and control
on that date of more than 25 per cent of the voting
shares of Bank. Invesco presently owns and controls approximately 98 per cent of the outstanding
voting shares of Bank.
4. S&M is a wholesale distributor of automotive accessories and operates a retail hardware
store. Invesco acquired 100 per cent, or 40,000
of S & M ' s voting shares, on December 31, 1969.
To date, there have been no changes in the number
of percentage of S&M shares owned by Invesco.
However, prior to the proposed distribution, the
number of S & M ' s voting shares will be increased
to a number equal to the number of Invesco shares
then outstanding. 2 Under section 4 of the Bank
1
This information derives from Invesco's correspondence
with the Board concerning its request for this certification,
Invesco's Registration Statement filed with the Board pursuant
to the BHC Act, and other records of the Board.
2
Under subsection (c) of section 1101 of the Code, property
acquired after July 7, 1970, generally does not qualify for the
tax benefits of section 1101(a) when distributed by an otherwise
qualified bank holding company. However, where such property is acquired by a qualified bank holding company in a
transaction in which gain is not recognized under section 305(a)
of the Code, then section 1101(a) is applicable. Invesco has
indicated that these shares of S&M will be acquired in a
transaction in which gain would not be recognized under
section 305(a) of the Code. Accordingly, even though such
shares would be acquired after July 7, 1970, those shares would
nevertheless qualify as property eligible for the tax benefits
provided in section 1101(a) of the Act, by virtue of section
1101(c), if the shares of S&M are in fact received in a
transaction in which gain is not recognized under section 305(a)
of the Act.

A 986

Federal Reserve Bulletin • December 1978

Holding Company Act, Invesco may not retain its
shares of S&M if Invesco were to continue to be
a bank holding company beyond December 31,
1980.
5. Invesco has committed to the Board that it
will terminate all interlocking relationships between Invesco and S&M by December 31, 1978.
On the basis of the foregoing information it is
hereby certified that:
(A) Invesco 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) the shares of S&M are "prohibited prope r t y " within the meaning of section 1103(c) of
the Code; and
(C) the distribution by Invesco of all of its
shares of S&M is necessary or appropriate to
effectuate section 4 of the BHC Act.
This certification is based upon the representations made to the Board by Invesco and upon
the facts set forth above. In the event the Board

ORDERS

APPROVED

UNDER

BANK

should hereafter determine that facts material to
this certification are otherwise than as represented
by Invesco, or that Invesco has failed to disclose
to the Board other material facts, it may revoke
this certification. This certification is also granted
on the condition that after December 31, 1978,
no person holding an office or position (including
an advisory or honorary position) with Invesco or
any of its subsidiaries as an officer, director, policy-making employee or consultant, or who performs (directly, or through an agent, representative
or nominee) functions comparable to those normally associated with such office or position, will
hold any such office or position or perform any
such function with S&M or any of its subsidiaries.
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
November 15, 1978.
( S i g n e d ) GRIFFITH L .

[SEAL]

HOLDING

COMPANY

Deputy Secretary

GARWOOD,

of the

Board.

ACT

B Y T H E B O A R D OF G O V E R N O R S

During November 1978, the Board of Governors approved the applications listed below. Copies
are available upon request to Publications Services, Division of Administrative Services, Board of
Governors of the Federal Reserve System, Washington, D . C . 20551.
Section 3

Applicant

Gordon Financial Corporation,
Gordon, Texas
Quail Creek Bancshares, Inc.,
Oklahoma City, Oklahoma




Bank(s)

The First National Bank
of Gordon, Gordon, Texas
Quail Creek Bank, N . A . ,
Oklahoma City, Oklahoma

Board action
(effective
date)

November 1, 1978
November 2, 1978

Law Department

987

Sections 3 and 4

Applicant

Nonbanking
company
(or activity),

Bank(s)

Oklahoma National
Bancshares, Inc.,
Oklahoma City,
Oklahoma

Oklahoma National
Bank and Trust
C o . , Oklahoma
City, Oklahoma

B Y FEDERAL RESERVE

BANKS

Effective
date

To engage de novo in
credit-related insurance agency activities through an indirect
ownership interest in
Myriad Insurance
Agency, Inc.

November 27, 1978

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

Bank(s)

Applicant
Ruth Jones Nelson Finance
Corp., Correctionville,
Iowa
New Virginia Bancorporation,
Springfield, Virginia

Reserve
Bank

Effective
date

Chicago November 30, 1978
Corn Belt State Bank,
Correction ville, Iowa
Petersen State Bank,
Petersen, Iowa
Richmond November 29, 1978
First City Bank of Newport
News, Newport News, Virginia

Section 4

Applicant
First Texas Bancorp, Inc.

Nonbanking
Company
(or activity)
Underwriting credit life and credit
accident and health insurance
directly related to extensions of
credit by Applicant's subsidiaries

ORDER APPROVED U N D E R B A N K MERGER

Applicant
The Connecticut Bank and
Trust C o . , Hartford,
Connecticut



Reserve
Bank
Dallas

Effective
date
November 28, 1978

ACT

Bank(s)
Liberty National Bank,
Stamford, Connecticut

Effective
date
November 1, 1978

A 988

PENDING

Federal Reserve Bulletin • December 1978

CASES

INVOLVING

THE BOARD

OF

GOVERNORS

Does not include suits against the Federal Reserve Banks in which the Board of Governors is not named a party.

Ella Jackson, et al. v. Board of Governors, filed
November 1978, U . S . C . A . for the Fifth Circuit.
United Bank Corporation,
New York v. Board
of Governors, filed November 1978, U . S . C . A .
for the Second Circuit.
Metro-North State Bank, Kansas City v. Board
of Governors, filed October 1978, U . S . C . A . for
the Eighth Circuit.
Manchester-Tower
Grove Community
Organization/ACORN
v. Board of Governors,
filed
September 1978, U . S . C . A . for the District of
Columbia.
Cradelv. The United States and the Reserve Bank
of Philadelphia, filed July 1978, U . S . D . C . for
the Eastern District of Pennsylvania.
Beckley v. Board of Governors, filed July 1978,
U . S . D . C . for the Northern District of Illinois.
Independent Bankers Association of Texas v. First
National Bank in Dallas, et al., filed July 1978,
U . S . C . A . for the Northern District of Texas.
Mid-Nebraska Bancshares, Inc. v. Board of Governors, filed July 1978, U . S . C . A . for the District of Columbia.
NCNB Corporation v. Board of Governors, filed
June 1978, U . S . C . A . for the Fourth Circuit.
NCNB Corporation v. Board of Governors, filed
June 1978, U . S . C . A . for the Fourth Circuit.
Ellis Banking Corporation v. Board of Governors,
filed May 1978, U . S . C . A . for the Fifth Circuit.
United States League of Savings Associations
v.
Board of Governors, filed May 1978, U . S . D . C .
for the District of Columbia.
Hawkeye Bancorporation v. Board of Governors,
filed April 1978, U . S . C . A . for the Eighth Circuit.
Citicorp v. Board of Governors, filed March 1978,
U . S . C . A . for the Second Circuit.
Security Bancorp and Security National Bank v.
Board
of Governors,
filed
March 1978,
U . S . C . A . for the Ninth Circuit.
Michigan National Corporation v. Board of Governors, filed January 1978, U . S . C . A . for the
Sixth Circuit.
Wisconsin Bankers Association v. Board of Governors, filed January 1978, U . S . C . A . for the
District of Columbia.




Vickars-Henry Corp. v. Board of Governors, filed
December 1977, U . S . C . A . for the Ninth Circuit.
Emch v. The United States of America, et al.,
filed November 1977, U . S . D . C . for the Eastern
District of Wisconsin.
Corbin v. Federal Reserve Bank of New York,
Board of Governors, et al., filed October 1977,
U . S . D . C . for the Southern District of New
York.
Central Bank v. Board of Governors, filed October 1977, U . S . C . A . for the District of Columbia.
Investment Company Institute v. Board of Governors, filed September 1977, U . S . C . A . for the
District of Columbia.
BankAmerica
Corporation v. Board of Governors, filed May 1977, U . S . C . A . for the Northern
District of California.
BankAmerica
Corporation v. Board of Governors, filed May 1977, U . S . C . A . for the Ninth
Circuit.
National Automobile Dealers Association, Inc. v.
Board of Governors, filed November 1976,
U . S . C . A . for the Distrcit of Columbia.
Memphis Trust Company v. Board of Governors,
filed February 1976, U . S . D . C . for the Western
District of Tennessee
First Lincolnwood Corporation v. Board of Governors, filed February 1976, U . S . C . A . for the
Seventh Circuit.
Roberts Farms, Inc. v. Comptroller of the Currency, et al., filed November 1976, U . S . D . C .
for the Southern District of California.
Florida Association of Insurance Agents, Inc. v.
Board of Governors, and National
Association
of Insurance Agents, Inc. v. Board of Governors, filed August 1975, actions consolidated in
U . S . C . A . for the Fifth Circuit.
David R. Merrill, et al. v. Federal Open Market
Committee of the Federal Reserve System, filed
May 1975, U . S . D . C . for the District of Columbia.
Bankers Trust New York Corporation v. Board
of Governors, filed May 1973, U . S . C . A . for the
Second Circuit.

989

Announcements
PRICING FOR CERTAIN
FEDERAL RESERVE SERVICES
The Board of Governors on November 17, 1978,
approved for transmission to the Congress a preliminary schedule of prices for Federal Reserve
check and automated clearinghouse services.
The tentative schedule was developed by the
Board and the 12 Federal Reserve Banks as part
of a comprehensive plan to provide greater competitive equality among financial institutions. The
prices will not be implemented until effective steps
have been taken to alleviate the burden of membership in the Federal Reserve System.
Pricing schedules for other Federal Reserve
services, such as the shipment of coin and currency, wire transfers of funds, and the safekeeping
of securities, are under consideration.
The pricing of Federal Reserve services is part
of an over-all effort to modernize the role of the
Federal Reserve in the Nation's financial system
and the relationship of financial institutions, in
general, to the Federal Reserve.
This program has been under active consideration by the Congress since July 1978 when the
Board submitted its legislative proposals. These
proposals included a statement of the guidelines
that underlie the development by the Federal Reserve of a system of prices for its services.
The pricing of check collection services suggested in the schedule is based on the volume of
check clearings by the Federal Reserve in the first
half of 1978. The prices are meant to recoup direct
and indirect costs of providing such services. In
addition, adjustments totaling 11 per cent of these
costs have been added to reflect additional costs
that would be borne in the private sector. These
adjustments include capital costs, taxes, an allowance for dividends, and provision for reserve.
Prices for automated clearing and settlement
services have been calculated to be competitive
with check prices. Establishment of prices for
automated clearinghouse services at this level is
intended to encourage banks and their customers
to take advantage of the potentially lower cost of
electronic funds transfers as compared with the
cost of payments by check, while still affording



opportunity to develop competing automated
clearing and settlement services in the private
sector.
Before a final decision is made on pricing, the
Federal Reserve will consider the advisability of
establishing different prices for each zone in some
Federal Reserve districts.

COMMUNITY REINVESTMENT ACT:
Examination Procedures
Federal regulators of banks and thrift institutions
have made public the procedures developed by an
interagency task force for examination of financial institutions covered under the new Community
Reinvestment Act (CRA) and regulations.
The CRA became effective November 6. It is
intended to encourage Federally insured commercial banks, mutual savings banks, and savings and
loan associations to help meet the credit needs of
their entire communities, including low- and
moderate-income neighborhoods, while preserving
the flexibility needed to operate safely and
soundly.
The Federal Home Loan Bank Board supervises
savings and loan associations, the Federal Deposit
Insurance Corporation supervises mutual savings
banks and State-chartered commercial banks that
are not members of the Federal Reserve System,
the Federal Reserve supervises State-chartered
member banks, and the Comptroller of the Currency supervises national banks. The examination
procedures developed by the staffs of the four
agencies, working together, will be closely monitored and altered if necessary in the light of experience with the procedures.

REGULATION K: Revisions
The Board of Governors has announced revisions
of its Regulation K (Corporations Engaged in
Foreign Banking and Financing under the Federal
Reserve Act) to conform to certain provisions of
the new International Banking Act.
The International Banking Act (IBA), signed

A 990

Federal Reserve Bulletin • December 1978

into law September 17, 1978, for the first time
makes the operations of foreign banks in the
United States, through their branches, agencies,
and lending companies, subject to Federal law in
a manner similar to domestic banks.
The act assigns new responsibilities for the
activities of foreign banks in the United States to
the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the Federal Reserve Board. The three agencies have formed an
interagency task force to implement these responsibilities.
The Board announced that:
1. It is revising its Regulation K to remove the
10 per cent minimum reserve requirement that has
applied to domestic deposits of Edge Act corporations (U.S. corporations that banks may establish,
under a provision of the Federal Reserve Act—
Sec. 25(a), to engage in foreign banking and
finance). Edge corporations will, instead, under
the International Banking Act and Regulation K,
be subject to the same reserve requirements on
their domestic deposits as apply to member banks.
This amendment will be effective with the reserve computation period beginning November 16,
1978. The new level of required reserves must be
maintained beginning with the week ending December 6, 1978.
2. The Board is advising the Reserve Banks to
accept applications by foreign banks for the formation of Edge corporations and is revising the
relevant application form (FR 151) to conform to
provisions of the IBA by authorizing foreign
banks, with the approval of the Board, to own
a majority of the shares of an Edge corporation
and by removing the requirement that only U . S .
citizens may be directors of Edge corporations.
The act also authorizes the Board, after consultation with State bank supervisors, to impose reserve requirements and interest rate limitations on
branches and agencies of large foreign banks. The
Board expects to commence such consultations in
the near future. Following these consultations, and
prior to the imposition of any reserve requirements
and interest rate limitations, proposed regulations
will be published for comment.

STATEMENT: International
Banking Act of 1978
The following statement by the Comptroller of the
Currency, the Federal Deposit Insurance Corporation, and the Board of Governors indicates actions




taken and planned by the three agencies to implement the International Banking Act of 1978.

STATEMENT
This statement has been prepared in consultation
with and on behalf of the Comptroller of the
Currency, the Federal Deposit Insurance Corporation, and the Federal Reserve Board.
On September 17, 1978, the President signed
into law the International Banking Act of 1978,
Public Law 9 5 - 3 6 9 . Under this act foreign banks
operating in the United States through branches,
agencies, or commercial lending companies are to
be subject to Federal supervision and regulation
in a manner similar to domestic banks. The act
is a significant step toward applying the principle
of national treatment, or nondiscrimination, to
foreign banks operating in the United States.
Although certain aspects of the act are selfimplementing, others require administrative action
by either the Board of Governors of the Federal
Reserve System, the Secretary of the Treasury,
the Comptroller of the Currency, or the Federal
Deposit Insurance Corporation. The Board, the
Comptroller, and the FDIC have primary responsibility for implementing the act and have established a group to coordinate their efforts. Such a
coordinated effort is aimed at establishing a uniform system of Federal examination and supervision for U.S. offices of foreign banks. The following information is provided to address certain
questions that have been raised by organizations
subject to the act concerning their responsibilities
between the time of the act becoming law and the
issuance of implementing regulations by the agencies.
1. Reserve requirements on Edge
corporations.
The act amends section 25(a) of the Federal Reserve Act, 12 U . S . C . 611 (the " E d g e A c t " ) , by
removing the 10 per cent minimum reserve requirement on the domestic deposits of an Edge
corporation. The Board has amended its Regulation K, 1 2 C . F . R . 211, to conform to the removal
of the statutory minimum reserve requirement.
Domestic deposits of an Edge corporation will
continue to be subject to the same reserve requirements as a member bank.
The act also requires that the Board undertake
a general revision of Regulation K within a statutorily prescribed time frame. The Board is proceeding with that revision in light of the act's

Announcements

amendment of the Edge Act with respect to the
purposes and powers of Edge corporations.
2. Reserve
requirements
for branches
and
agencies of foreign banks. The act subjects Federal
branches and agencies of foreign banks with total
worldwide consolidated bank assets in excess of
$1 billion to Federal Reserve reserve requirements
and interest rate limitations. In addition, the act
authorizes the Board to impose reserve requirements and interest rate limitations on State
branches and agencies of foreign banks after consultation and cooperation with State bank supervisory authorities. The Board expects to commence
the consultative process with appropriate State
bank supervisory authorities in the near future.
After consultation, any proposed regulations to
subject State branches and agencies to reserve and
interest rate requirements will be published for
comment.
3. Ownership of Edge corporations by foreign
banks. The act amends the Edge Act to permit
foreign banks with the approval of the Board to
acquire a majority of the shares of an Edge corporation. The act also permits non-U.S. citizens
to serve as directors of an Edge corporation.
Foreign banks that seek to organize an Edge corporation or to acquire a majority of the shares of
an Edge corporation may file an application in
letter form with the Federal Reserve Bank of the
district in which the foreign bank's U.S. banking
activities are principally conducted or, if not currently conducting banking operations in the United
States, with the Federal Reserve Bank of the
district in which the Edge corporation is, or is to
be, located. Application procedures and information requirements will, to the extent possible, be
the same as for applications by domestic institutions to organize Edge corporations. In this connection, the Board has revised its form F.R. 151
(Articles of Association of an Edge Corporation)
to conform to the changes in the Edge Act. Copies
of the revised form will be available at the Reserve
Banks.
4. Licensing of Federal branches and Federal
agencies. The act authorizes the Comptroller of
the Currency to license and supervise Federal
branches or agencies in any State in which the
parent foreign bank is not operating a State branch
or agency and in which the establishment of a
foreign branch or agency is not prohibited by State
law. The Comptroller also may license an inter-




991

state Federal branch of a foreign bank where the
establishment of branches is permitted by State law
and the foreign bank enters into an agreement with
the Board to receive only deposits permissible for
an Edge corporation. The Comptroller's office is
currently formulating appropriate regulations and
procedures to implement the act. Those regulations
should be published for comment prior to December 31, 1978. Applications for Federal
branches and agencies received prior to the adoption of final regulations will be acknowledged and
will be held for consideration subject to the final
regulations.
5. Deposit insurance for branches of foreign
banks. Under the act, no foreign bank may establish or operate a Federal branch that receives
deposits of less than $100,000 without obtaining
Federal deposit insurance. State branches, in
States that require deposit insurance for Statechartered banks, that receive deposits of less than
$100,000 must be insured. An exemption from
mandatory deposit insurance may be granted by
the FDIC in the case of a State-licensed branch,
or by the Comptroller of the Currency in the case
of a Federal branch, if the branch is not engaging
in domestic retail deposit activity. Foreign bank
branches that are not subject to mandatory insurance may voluntarily apply for FDIC insurance
coverage.
A branch established prior to the date of enactment must obtain deposit insurance by September
17, 1979, if the branch is subject to the mandatory
insurance provisions. A branch established after
the date of enactment is immediately subject to
the act's provisions. Procedures and forms to be
used in applying for deposit insurance are being
developed and are expected to be available at an
early date. In the interim, applications may be filed
in letter form. Applications for Federal deposit
insurance received prior to the adoption- of final
regulations will be acknowledged and will be held
for consideration subject to the final regulations.
6. Registration with the Federal Reserve. The
act subjects any foreign bank that operates a
branch, agency, or commercial lending company
in the United States to provisions of the Bank
Holding Company Act in the same manner and
to the same extent as bank holding companies.
Applying section 5 of the Bank Holding Company
Act to foreign banks subject to the act requires
that those banks register with the Board. The
Board is in the process of drafting a registration

A 992

Federal Reserve Bulletin • December 1978

form suitable for this purpose. When completed,
these forms will be available at the Federal Reserve Banks.
7. Registration
of representative
offices. The
act also requires foreign banks that maintain offices, other than branches or agencies, in the
United States to register with the Secretary of the
Treasury by March 16, 1979, or, after that date,
upon establishment of such an office. Procedures
and forms for registration are being developed and
should be available before year-end. Foreign banks
are not expected to register with the Secretary of
the Treasury until such forms are available.

COUNTRY
LENDING

EXPOSURE
SURVEY

The results of a survey of foreign lending by large
U.S. banks during the first half of 1978 were made
public by the Comptroller of the Currency, the
Board of Governors, and the Federal Deposit Insurance Corporation on December 7, 1978.
The survey, conducted semiannually, covers
credits to (claims on) foreign residents held at all
domestic and foreign offices of 124 U.S. banking
organizations. In addition to information on types
of loans, loan maturities, types of borrowers, and
loan guarantees, the survey provides information
on commitments to provide funds to foreigners.
The survey data are given on a country-by-country
basis.
The results are discussed below.
GENERAL
The data indicate that in the first half of 1978 there
was very little growth in U.S. bank credits extended to foreigners. Cross-border and non-local
currency claims increased only $6 billion from
$194 to $200 billion, an annual rate of growth
of only 6 per cent. In addition, local currency
lending by foreign offices of U . S . banks increased
$2 billion to a total of $51 billion.

Cross-border and cross-currency loans are those
most closely associated with country risk; they
totaled $200 billion on the reporting date. About
42 per cent of such foreign lending was accounted
for by claims on residents of Switzerland and the
Group of Ten ( G - 1 0 ) 1 developed countries. Another 33 per cent represented loans to residents
of "other developed c o u n t r i e s , " " o i l exporting
c o u n t r i e s , " and " o f f s h o r e banking c e n t e r s . " 2
Cross-border and cross-currency credits to residents of less developed countries that are not
oil exporters amounted to approximately $49 billion, or some 25 per cent of the total.
In addition, the banks reported $51 billion in
local currency credits that were held by their
offices in foreign countries to residents of the
country in which the office was located. An example would be deutsche mark credits to German
residents held by the German branch of the reporting U . S . banks. To a large extent, these local
currency claims were matched by $44 billion in
local currency liabilities due to local residents.
Approximately 75 per cent of these claims were
on residents of Switzerland and the G-10 countries.
MATURITIES
About two-thirds of the reported cross-border and
cross-currency credits had a maturity of under one
year. Only $14 billion in credits had a maturity
in excess of 5 years. Short-term credits were
especially prominent in the G-10 countries and the
offshore banking centers where $86 billion out of
$108 billion total credits matured in less than one
year. This heavy concentration of short-term credits reflects the large volume of interbank lending
in these countries. Most such placements of deposits are for very short periods.
For most other groups of countries, short-term
credits accounted for about half of total credits,
although the proportion varied significantly among
individual countries.
T Y P E OF BORROWER

TYPES OF L O A N S

With respect to the type of customer, business with
other banks accounted for the largest amount,
equaling $100 billion. This was followed by pri-

The information gathered in the survey concentrated on lending data from a bank's offices in one
country to residents of another country or lending
in a currency other than that of the borrower's—
known as cross-border or cross-currency loans.

1
The G - 1 0 countries are: Belgium, Canada, France, Federal
Republic of Germany, Italy, Japan, Netherlands, Sweden,
United Kingdom, and the United States.
2
Off-shore banking centers are located in countries where
multinational banks conduct a large international money market
business.




Announcements

vate nonbank sector lending totaling $62 billion
and loans to the public sector amounting to $37
billion. This last category includes foreign central
governments, their political subdivisions and
agencies, foreign central banks, and commercial
nonbank enterprises owned by government. This
distribution varied significantly from country to
country. Here also, most of the credits to banks
were to those located in the G-10 countries and
the offshore banking centers.
GUARANTEES
Information is provided on the cross-border and
cross-currency credits that are guaranteed by residents of another country. Credits are reallocated
from the country of residence of the borrower to
another country by two methods.
First, credits to a bank branch located in one
country when the head office is located in another
country are allocated to the country of the head
office. Since a branch is legally a part of the parent,
credits to a branch are treated as being guaranteed
by the head office.
Second, credits to a borrower in one country
that are formally guaranteed by a resident of another country are allocated to the latter country.
These reallocations are thought to provide a better
approximation of country exposure in the banks'
portfolios than the unadjusted figures.
Most of the reallocations are accounted for by
the transfer of credits to branches (and, where
guaranteed, subsidiaries) of banks to their head
offices ($40 billion out of $51 billion). In general,
the reallocations primarily affected the offshore
banking centers and some of the developed countries. For example, credits to the offshore banking
centers decreased from $25 billion to $6 billion
and claims on the United Kingdom decreased from
$34 billion to $19 billion. For most less developed
countries, a relatively small portion of credits is
externally guaranteed. The total shown for credits
to foreigners by country of guarantor is about $175
billion, or $25 billion less than the total for credits
by country of borrower. This results from U.S.
residents guaranteeing about $28 billion in claims
on foreign residents and foreigners guaranteeing
about $3 billion in claims on U . S . residents.

COMMITMENTS TO PROVIDE
F U N D S FOR FOREIGNERS
The survey also provided information on contingent claims on foreigners. The banks were asked




993

to report such contingent claims only when the
bank had a legal obligation to provide funds. The
amounts reported total $55 billion; 75 per cent
of that total is in the private sector, including banks.

USE OF THE D A T A :

Comparison with

Earlier Surveys
The June 1978 survey is fully comparable to the
December 1977 survey, for which data were released on June 8, 1978. However, it is not fully
comparable to the June 1977 survey because adjustments were made to the form and its instructions subsequent to that date, and certain deviations from the instructions that were permitted in
the June 1977 version were not permitted this time
or in December 1977.

REGULATION Z: Deferred Action
The Board on November 17, 1978, determined to
make no further amendments of its Regulation Z
(Truth in Lending) except when action is unavoidable, pending completion of a comprehensive review by the Board of the regulation.
The Board's decision indefinitely deferred further action on the following:
1. Four proposed simplifying amendments to
Regulation Z published for comment in May 1977
to simplify disclosures in credit transactions of
itemization of the finance charge, of downpayments, and of the exclusion of certain fees from
the finance charge, as well as of the method of
computing unearned finance charges in cases of
prepayment.
2. A request by Union Planters National Bank
of Memphis to amend the regulation with respect
to an overdraft checking program the bank wishes
to sponsor.
3. Consideration of the Truth in Lending responsibilities of a purchaser of retail instalment
contracts.
4. Any further requests to the Board for
amendments to the regulation that the Board does
not regard as requiring immediate action.

TWO NEW BOARD PUBLICATIONS
Improving the Monetary Aggregates: Staff Papers
contains certain of the research papers that had
been prepared by the staff of the Board of Gover-

A 994

Federal Reserve Bulletin • December 1978

nors for use of the Advisory Committee on Monetary Statistics. The Advisory Committee had been
appointed in early 1974 to provide a technical
evaluation of, and a report on, the quality of the
monetary aggregates used by the Federal Reserve
in the formulation and implementation of monetary
policy. The Committee agreed that the staff papers
when published could be revised provided the final
versions contain essentially the same information
that had been made available to the Committee
during the course of its deliberations. The Committee also requested further investigation of its
tentative proposal for an alternative method of
calculating Af-1, and a paper presenting this further work is included in the volume.
Copies of the Staff Papers may be obtained from
Publications Services, Division of Administrative
Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. The price
is $4.00 per copy; in quantities of 10 or more
sent to one address, $3.75 each.
The Annual Statistical Digest, 1973-1977
is
designed as a compact source of economic—and
especially financial—data. The object is to lighten
the burden of assembling time series by providing
a single source of historical continuations of the
statistics carried regularly in the FEDERAL RESERVE BULLETIN. The Digest also offers, at least
once a year, a continuation of series that formerly
appeared regularly in the BULLETIN, as well as
certain special, irregular tables, which the BULLETIN also once carried. The domestic nonfinancial
series included are those for which the Board of
Governors is the primary source.
This issue of the Digest covers, in general, the
years 1973 through 1977. It serves to maintain
the historical series first published in Banking and
Monetary Statistics, 1941-70, and continued with
the first two issues of the Digest— for 1971-75
and 1972-76.
Copies of the Digest are available from Publications Services, Division of Administrative Services, Board of Governors of the Federal Reserve
System, Washington, D . C . 20551. The price is
$12.00 per copy.

CHANGES IN BOARD STAFF
The Board of Governors has announced the following appointment effective November 27, 1978.
Anne Geary, Chief Staff Attorney, as Assistant




Director in the Division of Consumer Affairs. Ms.
Geary, who joined the Board's staff in 1973, holds
a B . A . from Fordham University and a J.D. from
Boston University Law School.
The Board has also announced the promotion
of Edward C. Ettin, Associate Director in the
Division of Research and Statistics, to Deputy
Staff Director in the Office of Staff Director for
Monetary and Financial Policy, effective December 4, 1978.

MEETING OF
CONSUMER ADVISORY COUNCIL
The Consumer Advisory Council met on December 6 and 7, 1978.
The Council considered legislative recommendations in the consumer credit field and a draft
report on a Federal Reserve System consumer
education program to improve awareness of credit
costs, terms, and the use of credit. Other topics
included discussion of issues involved in electronic
funds transfer regulations, cost effectiveness statements for consumer credit regulations, and a proposal for the resolution of conflicting interpretations of Federal consumer credit laws.

REVISED REPORTS
FOR SMALL BANKS
The Board of Governors has announced adoption
of a simplified version of the reports of condition
and income that can be used by the great majority
of State member banks and that can markedly
reduce their reporting burden.
Banks eligible to report on the simplified forms
are those that have less than $100 million in total
assets and no foreign offices.
The revised reports for small banks can be used
in reporting for December 31, 1978.
The Board's simplified reports call for 40 per
cent fewer reporting items for eligible banks over
a year's time, compared with the corresponding
standard forms. The simplified reports can be used
by about 85 per cent of State member banks. If
they choose, eligible banks may continue to use
the standard form.
The simplified reporting requirements were
adopted substantially unchanged from proposals
made in October. Comment on the proposals was
favorable in nearly all instances.
The only substantive change from the October

Announcements

proposals was the restoration to the face of the
report of condition, in response to comment received, of detail on deposits by type of depositor.
In addition, procedures for choosing among optional forms of reporting were made more flexible.
The reports of income and condition are the
basic financial reports required to be made, in
some cases semiannually, in others quarterly, by
all Federally insured banks to their Federal bank
supervisors.
The reduction in the reporting burden in the
simplified basic financial reports of banks with no
foreign branches and with $100 million assets or
less results from:
1. Elimination of numerous specific items from
separate reporting, particularly in details as to
loans and deposits.
2. Reduction in the frequency (from semiannually to annually) in reporting whole sections and
certain items in the report of income.
3. Broadening of tests of significance to exempt
certain items from explicit listing.
Items have been added to both the standard and
the simplified reports for reporting on negotiable
orders of withdrawal (NOW) accounts and automatic transfer service (ATS) accounts, and for
money market certificates of deposit.
The revised basic reports for small banks
adopted by the Board are the same as those of
the Comptroller of the Currency and the Federal
Deposit Insurance Corporation, except that those
two agencies have adopted an additional reporting
schedule not required of State member banks.

REGULATION Q:
Amendment and Interpretation
The Board of Governors lightened the penalty
required for early withdrawal of certain types of
time deposits at member banks, effective December 11, 1978.
The Board said that its action is expected to
benefit particularly time deposits in long-term individual retirement accounts (IRA's) and Keogh
plan retirement accounts, thus furthering the congressional aim of promoting retirement savings.
At the same time the Board adopted, also effective December 11, an interpretation of Regulation
Q permitting withdrawal without penalty of interest earned on time deposits at member banks.
The change in the early-withdrawal penalty rule




995

under Regulation Q (Interest on Deposits) was
adopted as proposed for comment in July. It would
affect two types of time deposits:
1. Time deposit open account (TDOA), which
is a type of deposit that may provide for subsequent deposits to the account that may be viewed
either as resetting the maturity of the entire amount
on deposit, or as having a separate and distinct
maturity (equal to the same maturity as the original
deposit).
2. Notice accounts, accounts that do not have
a specified maturity but require the depositor to
give notice (for instance, 90 days) of intent to
withdraw all or part of the account.
The Board is aware that many member banks
have established IRA and Keogh plan retirement
savings accounts as T D O A or notice accounts.
These are special time accounts in which independently employed individuals (Keogh plan) or
persons working for companies without retirement
plans (IRA) can save for their retirement under
special tax deferral provisions.
The penalty for early withdrawal of all or part
of a time account is reduction of the interest paid
on the amount withdrawn to the passbook savings
rate (5 per cent at commercial banks) and forfeiture
of 90 days' interest at that rate. Generally, the
interest forfeiture penalty on the amount withdrawn from a time account applies back to the
original date of deposit of funds in the account.
The revised penalty rule requires, in the case
of early withdrawal at a member bank from: (1)
a notice account, that the minimum penalty apply
on the amount withdrawn for a period of time no
greater than the required notice period; and (2)
a T D O A , that the penalty on the amount withdrawn apply only to the length of the maturity
period specified for the original deposit. The original maturity period for IRA and Keogh accounts
must be at least 3 years if minimum interest is
to be paid on such accounts.
The interpretation of Regulation Q adopted by
the Board provides that a member bank may permit
a depositor to withdraw interest earned on a time
certificate of deposit at any time before maturity
without penalty, irrespective of the basis upon
which the member bank compounds or credits the
interest to the depositor's account. Previously,
member banks had been advised that interest became part of the underlying principal deposit and,
thus, was subject to early-withdrawal penalty requirements of Regulation Q when that interest was
credited or posted to the depositor's account.

A 996

Federal Reserve Bulletin • December 1978

SYSTEM MEMBERSHIP:
Admission of State Banks
The following banks were admitted to membership
in the Federal Reserve System during the period
November 16, 1978, through December 15, 1978:
Colorado
Aurora
Virginia
Keysville

Southeast State Bank of Aurora

Other pamphlets in the series explain consumer
protections under Equal Credit Opportunity, Truth
in Lending, Truth in Leasing, and Fair Credit
Billing, as well as how to file a consumer credit
complaint with the Federal Reserve System.
Copies of "If You Use A Credit C a r d " and
other consumer pamphlets may be obtained singly
or in bulk free of charge from the Board of
Governors in Washington or from any of the 12
Federal Reserve Banks.

State Bank of Keysville

CHART BOOK
NEW CONSUMER PAMPHLET
"If You Use A Credit C a r d , " the latest in a series
of consumer education pamphlets, is now available
for distribution.
The pamphlet explains credit-card protections
under Federal law, including how to limit risk if
a card is lost or stolen and what to do if goods
or services purchased with a credit card are not
satisfactory. It also explains how to compare
credit-card costs.




Beginning 1979 the Federal Reserve Chart Book
will be issued four times a year in February, May,
August, and November. The subscription price,
including one issue of the historical supplement,
will be $7.00 a year or $2.00 a copy in the United
States, its possessions, Canada, and Mexico.
Elsewhere the price will be $10.00 a year or $3.00
a copy. Copies may be obtained from Publications
Services, Division of Administrative Services,
Board of Governors of the Federal Reserve System, Washington, D. C. 20551.

997

Industrial Production
Released

for publication

December

15

Industrial production increased an estimated 0.7
per cent in November to 149.5 per cent of the
1967 average. Gains were widespread, but output
of consumer durable goods other than automotive
products declined. The advance in total industrial
production in November was somewhat stronger
than in the two preceding months but close to the
average monthly increase over the first 10 months
of the year. The November index is 7.3 per cent
above the level a year earlier.
Output of consumer goods rose 0.5 per cent,
due to a further sizable increase in the output of
automotive products and a fairly strong gain in
the production of consumer nondurable goods.
Production of home goods, which is nearly onefifth of the consumer goods component of the
index, declined in November for the second consecutive month because of cuts in the output of
appliances and furniture. Production of business
equipment is estimated to have increased 0.7 per
cent in November—somewhat more than in the
two preceding months, reflecting continued gains
in commercial, transit, and farm equipment. Output of construction and business supplies also
advanced sharply last month.
Production of materials advanced strongly again
in November. Production of durable goods mate-

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




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

1967 = 100

Percentage change from preceding month to—

1978

1978

Oct."

Nov.''

June

July

Aug.

Nov.

Percentage
change
11/77
to
11/78

148.5

149.5

.7

.8

.7

.4

.5

.7

7.3

147.3
144.5
149.8
162.6
144.7
166.9
157.4
156.7
150.5

148.2
145.3
150.6
163.3
145.6
168.1
158.6
157.9
151.6

.6
.4
.0
.2
-.1
1.0
1.4
1.1
.9

.7
.8
.5
.2
.6
1.2
.6
.9
1.0

.8
.8
.5
.4
.5
1.0
.5
.8
.5

.3
.3
.3
-.8
.8
.4
.3
.6
.6

.5
.5
.6
1.5
.3
.5
.4
.6
.7

.6
.6
.5
.4
.6
.7
.8
.8
.7

6.2
6.1
3.7
5.2
3.1
9.5
6.9
7.8
9.1

Industrial production

Total

rials increased by 0.8 per cent because of continued strength in output of basic metals and of
equipment and durable consumer parts, while production of nondurable goods materials rose only
slightly further. Output of energy materials advanced 0.9 per cent.

'Estimated.

Sept.

NOTE.—Indexes are seasonally adjusted.

Oct.

1

Financial and Business Statistics
CONTENTS
D O M E S T I C FINANCIAL STATISTICS

W E E K L Y REPORTING COMMERCIAL

A3
A4
A5

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

A6

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

POLICY INSTRUMENTS

A8 Federal Reserve Bank interest rates
A 9 Member bank reserve requirements
A10 Maximum interest rates payable on
time and savings deposits at Federally
insured institutions
A10 Margin requirements
A11 Federal Reserve open market
transactions
FEDERAL RESERVE B A N K S

BANKS

A25 Gross demand deposits of individuals,
partnerships, and corporations
FINANCIAL MARKETS

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

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

A29 Savings institutions—Selected assets
and liabilities

M O N E T A R Y A N D CREDIT AGGREGATES

FEDERAL F I N A N C E

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

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

COMMERCIAL B A N K ASSETS A N D LIABILITIES

A16 Last-Wednesday-of-month series
A17 Call-date series
A18 Detailed balance sheet, June 30, 1978




A2

Federal Reserve Bulletin • December 1978

SECURITIES M A R K E T S A N D
CORPORATE F I N A N C E

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
A3 8 Nonfinancial corporations—Assets and
liabilities
A3 8 Business expenditures on new plant
and equipment
A39 Domestic finance companies—Assets
and liabilities; business credit
R E A L ESTATE

A40 Mortgage markets
A41 Mortgage debt outstanding

I N T E R N A T I O N A L STATISTICS
A54 U . S . international transactions—
Summary
A55 U . S . foreign trade
A55 U . S . reserve assets
A56 Foreign branches of U.S. banks—
Balance sheet data
A58 Selected U.S. liabilities to foreign
official institutions
REPORTED BY B A N K S IN THE U N I T E D S T A T E S :

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

C O N S U M E R I N S T A L M E N T CREDIT

A42 Total outstanding and net change
A43 Extensions and liquidations
F L O W OF F U N D S

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

SECURITIES H O L D I N G S A N D TRANSACTIONS

A64 Marketable U . S . Treasury bonds and
notes—Foreign holdings and
transactions
A64 Foreign official assets held at F.R.
banks
A65 Foreign transactions in securities
REPORTED BY N O N B A N K I N G C O N C E R N S IN

D O M E S T I C N O N F I N A N C I A L STATISTICS

THE U N I T E D S T A T E S :

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

A66 Short-term liabilities to and claims on
foreigners
A67 Long-term liabilities to and claims on
foreigners




INTEREST A N D E X C H A N G E

RATES

A68 Discount rates of foreign central banks
A68 Foreign short-term interest rates
SPECIAL T A B L E
A69 Sales, revenue, profits, and dividends of
large manufacturing corporations
INSIDE BACK COVER
Guide to Tabular Presentation and
Statistical Releases

Domestic Financial Statistics

A3

1.10 MONETARY AGGREGATES AND INTEREST RATES
1978

1977

1978

Item
Q4r

Ql r

Q2r

Q3'

June r

July

Aug.r

Sept. r

Oct.

Monetary and credit aggregates
(annual rates of change, seasonally adjusted in per cent) 1 2

1
2
3

Member bank reserves
Total
Required
Nonborrowed

4
5
6
7

8
9
10
11

6.3
6.4
3.8

8.8
9.3
14.4

6.6
7.2
1.1

8.2
8.2
6.2

14.9
16.2
19.0

14.0
13.4
7.6

-8.2
-7.4
-3.2

8.1
7.4
10.7

7.6
8.3
1.3

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

7.5
6.8
8.1
10.6

6.2
4.9
6.9
7.7

9.9
6.9
7.9
7.8

7.6
5.3
8.9
10.1

7.5
4.0
7.8
8.4

4.8
1.5
8.0
9.4

8.5
8.7
10.4
11.7

14.1
12.2
12.5
14.0

3.7
1.8
7.0
9.9

Time and savings deposits
Commercial banks:
Total
Savings
Other time
Thrift institutions 2

13.0
5.4
11.6
14.4

12.8
2.6
11.4
8.9

10.1
1.6
10.5
7.6

9.5
1.3
17.3
11.6

6.1
-1.6
16.0
9.2

10.2
-4.3
22.5
11.2

7.5
8.1
14.2
13.9

13.8
9.7
13.6
16.0

7.9
-1.6
17.7
14.2

9.9

9.6

12.9

11.0

6.0

16.7

5.2

9.9

9.5

12 Total loans and investments at commercial banks 3

1977
Q4

1978

Q1

Q2

1978
Q3

July

Aug.

Sept.

Oct.

Nov.

Interest rates (levels, per cent per annum)

13
14
15
16

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

6.51
5.93
6.11
6.56

6.76
6.46
6.39
6.76

7.28
6.78
6.48
7.16

8.09
7.50
7.31
8.03

7.81
7.23
7.01
7.85

8.04
7.43
7.08
7.83

8.45
7.83
7.85
8.39

8.96
8.26
7.99
8.98

9.76
9.50
8.64
10.14

17
18
19

Long-term rates
Bonds:
U.S. Governments
State and local government 9
Aaa utility (new issue) 1 0

7.78
5.57
8.27

8.19
5.65
8.70

8.43
6.02
8.98

8.53
6.16
8.94

8.69
6.28
9.14

8.45
6.12
8.82

8.47
6.09
8.86

8.69
6.13
9.17

8.75
6.19
9.27

9.05

9.23

9.58

9.80

9.80

9.80

9.80

9.95

10.10

20

Conventional mortgages 1 1

1
M-l equals currency plus private demand deposits adjusted.
M - 1 + equals M-l plus savings deposits at commercial banks, N O W
accounts at banks and thrift institutions, credit union share draft accounts, and demand deposits at mutual savings banks.
M-2 equals M-l plus bank time and savings deposits other than large
negotiable certificates of deposit (CD's).
M-3 equals M-2 plus deposits at mutual savings banks, savings and
loan associations, and credit union shares.
2
Savings and loan associations, mutual savings banks, and credit
unions.
3
Quarterly changes calculated from figures shown in Table 1.23.
4
Seven-day averages of daily effective rates (average of the rates on
a given date weighted by the volume of transactions at those rates).
5
Rate for the Federal Reserve Bank of New York.




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

A4

DomesticNonfinancialStatistics • December 1978

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

Weekly averages of daily figures for weeks ending-

1978

1978

Factors

Sept.

Oct.

Nov.?

Oct. 18

Oct. 25

127,811

133,273

129,108

134,274

134,088

110,604
109,862

115,008
113,977

111,243
110,728

114,207
113,848

115,865
114,737

742
8,323
7,958

1,031
8,353
7,940

515
8,109
7,928

359
8,354
7,941

Nov.

Nov. 8

Nov. 15

133,496

129,011

126,996

130,439

130,701

115,694
114,112

112,622
112,170

109,186
109,186

110,556
109,689

111,842
111,336

1,128
8,388
7,938

1,582
8,391
7.937

452
8,009
7,932

7,932
7,932

867
8,343
7,932

506
8,060
7,918

Nov. 22p Nov. 29 *»

SUPPLYING RESERVE F U N D S
1

Reserve Bank credit outstanding....
U.S. Government securities1
Bought outright
Held under repurchase agreement
Federal agency securities
Bought outright
Held under repurchase agreement

2
3
4
5
6
7
8
9
10
11

Acceptances
Loans
Float
Other Federal Reserve assets

12
13

Gold stock
Special Drawing Rights certificate
account
Treasury currency outstanding

14

365

413

181

413

450

454

77

411

142

257
1,068
5,220
2,339

249
1,261
5,742
2,660

180

722
6,152
2,702

170
1,250
7,623
2,671

282
1,313
5,534
2,707

257
1,305
4,910
2.938

119
696
4,303
3,261

633
6,176
3,068

455
604
8,291
2,190

141
791
7,602
2,265

11,670

11,660

11,645

11,656

11,655

11,655

11,652

11,642

11,642

11,642

1,300
11,681

1,300
11,725

1,300
11,779

1,300
11,729

1,300
11,738

1,300
11,747

1,300
11,758

1,300
11,768

1,300
11,787

1,300
11,803

108,022
302

108,872
303

110,927
280

109,259
317

108,912
296

108,927
289

109,828
282

110,775
278

111,242
279

111,882

11,080
279
692

14,948
300
590

8,186

15,131
283
585

15,377
275
619

15,108
285
550

11,091
294
546

8,092
273
521

6,443
286
529

6,468
298
556

ABSORBING RESERVE F U N D S
15
16

Currency in circulation
Treasury cash holdings
Deposits, other than member bank
reserves with F.R. Banks:
Treasury
Foreign
Other 2

17
18
19
20
21

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

289
540

4,077

4,244

4,193

4,208

4,416

28,010

28,701

29,417

29,177

28,887

A,512
28,467

3,901

4,008

4,284

4,475

27,777

27,759

32,107

31,463

End-of-month figures

Wednesday figures

1978

1978

Sept.

Oct.

Nov.f

Oct. 18

Oct. 25

132,114

132,022

130,263

133,340

136,766

115,279
113,027

115,322
114,659

113,305
113,305

112,522
112,522

117,535
114,489

2,252
8,597
7,950

663
8,065
7,938

8,354
7,941

3,046
9,123
7,938

2,676
8,951
7,932

413

1,185

Nov.

305

Nov. 8

Nov. 15

Nov. 22p N o v . 29p

135,222

123,511

127,622

130,030

132,791

114,544
111,868

107,253
107,253

108,114
108,114

111,203
110,878

114,110

7,932
7,932

325
8,092
7,932

2,000
8,524
7,899

1,019

160

625

405
1,789
6,317
3,216

783
3,421
4,122

1,258
8,042
2,276

383
931
7,223
2,198

6,122
2,405

SUPPLYING RESERVE F U N D S
22

Reserve Bank credit outstanding
U.S. Government securities1
Bought outright
Held under repurchase agreement
Federal agency securities
Bought outright
Held under repurchase agreement

23
24
25
26
27
28
29
30
31
32

647

127
236
1,207
4,436
2,756

812
5,897
2,350

1,660
8,581
2,636

724
1,796
4,850
2,738

11,668

11,655

11,642

11,655

11,655

11,655

11,649

11,642

11,642

11,642

1,300
11,683

1,300
11,731

1,300
11,804

1,300
11,735

1,300
11,749

1,300
11,755

1,300
11,761

1,300
11,778

1,300
11,799

1,300
11,804

Currency in circulation
Treasury cash holdings
Deposits, other than member bank
reserves with F.R. Banks:
Treasury
Foreign
Other 2

107,663
299

109,307
276

112,045
310

109,271
398

109,063
294

109,503
289

110,656

111,277
277

111,820

275

112,291
310

16,647
325
628

15,467
305
531

6,587
379
567

15,348
252
554

11,748
257
624

14,322
244
573

7,989
249
652

7,557
313
448

6,153
285
565

7,236
275
479

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

4,372

4,560

4,545

4,253

4,653

4,575

3,913

4,144

A,219

4,584

26,830

26,260

30,577

27,954

34,831

30,425

24,484

28,327

Gold stock
Special Drawing Rights certificate
account
Treasury currency outstanding

35

7,932
7,932

715
1,365
3,719
2,439

Acceptances
Loans
Float
Other Federal Reserve assets

33
34

7,899
7,899

112,110

370

1,260

ABSORBING RESERVE F U N D S
36
37
38
39
40
41
42

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




in

31,395

32,363

voluntarily held with member banks and redeposited in full with Federal
Reserve Banks.
NOTE.—For amounts of currency and coin held as reserves, see Table

1.12.

Member Banks
1.12

RESERVES A N D BORROWINGS

A5

Member Banks

Millions of dollars
Monthly averages of daily figures
Reserve classification

All member banks
Reserves:
At F.R. Banks
Currency and coin
Total heldi
Required
Excess 1
Borrowings at F.R. Banks: 2
Total
6
Seasonal
7

1
2
3
4
5

Large banks in New York City
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23

Required
Borrowings 2
Large banks in Chicago
Reserves held
Required
Excess
Borrowings 2
Other large banks
Reserves held
Excess
Borrowings 2
All other banks
Reserves held
Required
Borrowings 2

1977

1978

Dec.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

27,057
9,351
36,471
36,297
174

27,155
8,992
36,231
35,925
306

27,776
9,028
36,880
36,816
64

27,890
9,151
37,119
36,867
252

27,840
9,345
37,262
37,125
137

28,570
9,542
38,189
38,049
140

28,079
9,512
37,666
37,404
262

28,010
9,605
37,689
37,614
75

28,701
9,654
38,434
38,222
212

29,417
9,818
39,313
39,516
-203

558
54

344
47

539
43

1,227
93

1,111
120

1,286
143

1,147
188

1,068
191

1,261
221

722
185

6,244
6,279
-35
48

6,276
6,193
83
21

6,247
6,320
-73
61

6,315
6,236
79
113

6,341
6,376
-35
54

6,606
6,581
25
129

6,334
6,290
44
58

6,182
6,251
-69
78

6,428
6,349
79
157

6,529
6,658
-129
48

1,593
1,613
-20
26

1,629
1,620
9
11

1,670
1,686
-16
11

1,697
1,669
28
19

1,668
1,670
-2
20

1,708
1,707
1
20

1,648
1,646
2
3

1,655
1,650
5
35

1,672
1,649
23
14

1,740
1,764
-24
3

13,993
13,931
62
243

13,729
13,662
67
92

14,135
14,077
58
249

14,106
14,079
27
500

14,250
14,225
25
536

14,553
14,569
-16
499

14,502
14,423
79
417

14,564
14,541
23
363

14,862
14,867
-5
408

15,392
15,435
-43
195

14,641
14,474
167
241

14,597
14,450
147
220

14,828
14,733
95
218

15,001
14,883
118
595

15,003
14,854
149
501

15,322
15,192
130
638

15,182
15,045
137
669

15,288
15,172
116
592

15,472
15,357
115
682

15,636
15,659
-23
476

Nov.f

Weekly averages of daily figures for weeks ending—
1978
Nov. 22p Nov. 29 p

Sept. 27

Oct. 4

Oct. 11

Oct. 18

Oct. 25

Nov. 1

Nov. 8

Nov. 15

All member banks
Reserves:
At F.R. Banks
Currency and coin
Total held i
Required
Excess i
Borrowings at F.R. Banks: 2
29
Total
30
Seasonal

28,525
9,842
38,441
38,218
223

28,890
9,904
38,869
38,746
123

27,890
10,031
37,997
37,647
350

29,177
9,500
38,756
38,875
-119

28,887
9,101
38,068
37,749
319

28,467
9,861
38,408
38,295
113

27,777
10,071
37,927
37,586
341

27,759
10,132
37,974
37,729
245

32,107
9,178
41,362
41,307
55

31,463
9,855
41,392
41,352
40

1,560
204

1,286
208

1,239
205

1,250
219

1,313
235

1,305
233

696
191

633
188

604
183

791
180

31
32
33
34

Large banks in New York City
Reserves held
Required
Excess
Borrowings 2

6,249
6,307
-58
113

6,586
6,551
35
174

6,225
6,209
16
263

6,650
6,730
-80
226

6,100
6,026
74
75

6,286
6,313
-27
99

6,240
6,199
41

6,222
6,257
-35
102

7,152
7,162
-10
4

6,762
6,980
-218
31

35
36
37
38

Large banks in Chicago
Reserves held
Required
Excess
Borrowings 2

1,693
1,618
75
4

1,681
1,677
4
6

1,613
1,612

1.741
1.742

1,569
1,569

1.659
1.660

1,605
1,587
18

3

36

12

10

1,621
1,603
18
9

1,972
1,998
-26
2

1,950
1,862
88
6

39
40
41
42

Other large banks
Reserves held
Required
Excess
Borrowings 2

14,892
14,799
93
727

15,045
15,091
-46
424

14,850
14,652
198
435

14,901
15,038
-137
397

14,868
14,738
130
428

14,888
14,877
349

14,740
14,621
119
191

14,812
14,758
54
137

15,804
16,084
-280
111

16,206
16,263
-57
237

43
44
45
46

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

15,607
15,494
113
716

15,557
15,427
,130
682

15,309
15,174
135
538

15,464
15,365
99
591

15,531
15,416
115
798

15,575
15,445
130
847

15,326
15,163
163
496

15,335
15,127
208
394

15,876
16,063
-187
426

16,053
16,247
-194
517

24
25
26
27
28

1

i 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 \yhen a
nonmember bank merges into an existing member bank, or when a




-1

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.

DomesticNonfinancialStatistics • December 1978

A6

1.13 FEDERAL FUNDS TRANSACTIONS Money Market Banks
Millions of dollars, except as noted
1978, week ending—
Type
Oct.

4

Oct. 11

Oct. 18

Oct. 25

Nov. 1

Nov. 8

Nov. 15

Nov. 22

Nov. 29

Total, 46 banks

1

Basic reserve position
Excess reserves1
LESS:

2
3

Borrowings at F.R. Banks
Net interbank Federal funds
transactions

r

65

182

-103

84

16

111

141

-31

75

261

344

404

227

205

59

106

38

168

15,375

18,536

17,470

13,747

14,187

17,146

17,945

16,936

15,861

-15,571

-18,698

-17,977

—13,890

-14,376

-17,094

-17,910

-17,004

-15,954

94.7

118.6

108.0

89.0

89.5

108.6

113.0

94.7

90.0

23,623
8,248
5,601

25,677
7,141
5,930

24,696
7,226
5,973

22,043
8,296
6,446

22,604
8,417
5,521

24,484
7,339
5,676

24,690
6,744
5,506

24,077
7,141
5,336

23,743
7,881
5,580

18,022
2,647

19,747
1,211

18,722
1,253

15,598
1,850

17,083
2,896

18,808
1,663

19,184
1,239

18,742
1,806

18,162
2,301

3,222
2,186
1,037

3,397
1,505
1,892

3,159
1,661
1,498

2,704
2,133
572

2,986
2,241
745

4,207
1,646
2,561

3,654
1,270
2,384

4,123
2,005
2,118

3,298
1,714
1,584

5

4

—1

EQUALS: N e t s u r p l u s , o r

4
5

deficit ( - ) :
Amount
Per cent of average required
reserves

6
7
8

Interbank Federal funds transactions
Gross transactions:
Purchases
Sales
Two-way transactions2
Net transactions:
Purchases of net buying banks...
Sales of net selling banks

9
10

Related transactions with U.S.
Government securities dealers
Loans to dealers 3
12
Borrowing from dealers 4
13
11

r

8 banks in New York City

14

Basic reserve position
Excess reserves1
LESS:

15
16

Borrowings at F.R. Banks
Net interbank Federal funds
transactions

34

76

-45

28

174

196

226

45

69

5,032

6,172

4,647

3,122

3,774

4,267

4,666

2,523

2,336

-5,173

-6,292

-4,918

-3,139

-3,843

-4,221

-4,763

-2,519

-2,370

87.0

112.4

80.7

57.7

67.5

75.3

84.6

39.0

37.6

5,953
921
921

7,238
1,067
1,067

5,813
1,166
1,024

4,964
1,842
1,606

5,404
1,630
1,090

5,595
1,328
1,303

5,593
927
927

4,785
2,262
1,246

4,687
2,351
1,441

5,032

6,172

4,789
142

3,358
236

4,314
540

4,292
25

4,666

3,538
1,016

3,246
911

1,968
491
1,477

2,148
547
1,602

1,717
564
1,152

1,610
556
1,054

1,773
510
1,263

2,718
454
2,264

2,249
496
1,753

2,524
633
1,891

1,864
759
1,106

45

102

21

EQUALS: N e t s u r p l u s , o r

17
18

deficit ( - ) :
Amount
Per cent of average required
Interbank Federal funds transactions
Gross transactions:

19
20
21
22
23

24
25
26

Sales
Two-way transactions2
Net transactions:
Purchases of net buying banks...
Sales of net selling banks
Related transactions with U.S.
Government securities dealers
Loans to dealers 3
Borrowing from dealers 4
Net loans

38 banks outside New York City
Basic reserve position
27

r

31

106

-59

56

16

65

136

-34

81

86

148

111

182

137

59

4

38

141

10,343

12,364

12,823

10,625

10,413

12,879

13,279

14,413

13,525

-10,398

-12,406

-13,059

'-10,751

-10,534

-12,873

-13,147

-14,485

-13,585

99.1

121.9

123.9

105.8

101.5

126.9

128.5

125.9

118.8

17,670
7,327
4,680

18,439
6,075
4,864

18,883
6,060
4,950

17,080
6,454
4,840

17,200
6,786
4,431

18,889
6,010
4,373

19,097
5,818
A,519

19,293
4,879
4,089

19,056
5,530
4,140

12,990
2,647

13,575
1,211

13,933
1,110

12,240
1,614

12,769
2,356

14,517
1,639

14,518
1,239

15,203
790

14,916
1,391

1,255
1,695
-440

1,249
958
291

1,442
1,096
346

1,095
1,577
-482

1,212
1,731
-518

1,489
1,192
297

1,405
774
631

1,598
1,372
226

1,434
956
478

LESS:

28
29

Borrowings at F.R. Banks
Net interbank Federal funds
transactions
EQUALS: N e t s u r p l u s , o r

30
31

deficit ( - ) :
Amount
Per cent of average required

35
36

Interbank Federal funds transactions
Gross transactions:
Purchases
Sales
Two-way transactions2
Net transactions:
Purchases of net buying banks...
Sales of net selling banks

37
38
39

Related transactions with U.S.
Government securities dealers
Loans to dealers3
Borrowing from dealers 4
Net loans

32
33
34

For notes see end of table.




Federal Funds
1.13

A7

Continued
1978, week ending—

|

Type
Oct. 4

Oct. 11

Oct. 18

Oct. 25

Nov. 1

Nov. 15

Nov. 8

Nov. 22

Nov. 29

5 banks in City of Chicago

40

Basic reserve position
Excess reserves 1

31

6

15

LESS:

41
42

43
44

Borrowings at F.R. B a n k s . . .
Net interbank Federal funds
transactions
EQUALS: Net surplus, or
deficit ( - ) :
Amount
Per cent of average required
reserves

48
49

Interbank Federal funds transactions
Gross transactions:
Purchases
Sales
Two-way transactions 2
Net transactions:
Purchases of net buying banks..
Sales of net selling banks

50
51
52

Related transactions with U.S.
Government securities dealers
Loans to dealers 3
Borrowing from dealers 4
Net loans

45
46
47

13

13

1

8

20

41

33
4,992

5,163

5,297

3,911

4,965

5,685

5,713

6,194

6,059

-4,960

-5,148

-5,323

-3,898

-4,951

-5,684

-5,705

-6,174

-6,017

316.5

342.2

325.7

266.1

318.5

375.4

380.9

331.3

344.4

6,147
1,156
1,156

6,395
1,232
1,232

6,749
1,452
1,452

5,242
1,331
1,331

6,348
1,384
1,384

6,703
1,018
1,018

7,065
1,352
1,352

7,363
1,169
1,169

7,134
1,075
1,075

4,992

5,163

5,297

3,911

4,964

5,685

5,713

6,194

6,059

344
325
19

208
189
19

334
241
93

77
396
-319

79
201
-122

191
224
-33

124
56
68

214
173
41

236
229
7

-54

33 other banks

53

Basic reserve position
Excess reserves 1
LESS:

54
55

56
57

Borrowings at F.R. B a n k s . . .
Net interbank Federal funds
transactions
EQUALS: Net surplus, or
deficit ( - ) :
Amount
Per cent of average required
reserves

61
62

Interbank Federal funds transactions
Gross transactions:
Purchases
Sales
Two-way transactions 2
Net transactions:
Purchases of net buying banks..
Sales of net selling banks

63
64
65

Related transactions with U.S.
• Government securities dealers
Loans to dealers 3
Borrowing from dealers 4
Net loans

58
59
60

-65

148

145

5,351

7,201

7,527

6,714

5,449

-5,438

-7,258

-7,736

-6,853

-5,583

83.7

86.8

60.9

43

3

64

129

182

137

59

4

38

7,194

7,566

8,220

-7,189

-7,441

-8,311

83.3

85.0

86.2

r

78.8

63.2

11,522
6,171
3,524

12,044
4,843
3,631

12,135
4,608
3,498

11,838
5,124
3,509

10,852
5,403
3,047

12,186
4,992
3,355

12,032
4,466
3,227

11,930
3,710
2,920

7,998
2,647

8,412
1,211

8,637
1,110

8,329
1,614

7,805
2,356

8,832
1,638

8,805
1,239

9,009
790

911
1,370
-459

1,041
769
272

,108
855
253

1,018
1,181

1,134
1,530
-396

,299
968
330

1,282
718
564

,384
,199
186

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




r

91
86

-163

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

NOTE.—Weekly averages of daily figures. For description of series,
see August 1964 BULLETIN, pp. 944-53. Back data for 46 banks appear
in the Board's Annual Statistical Digest, 1971-1975, Table 3.

A8

DomesticNonfinancialStatistics • December 1978

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

Under Sec. 10(b)2

Under Sees. 13 and 13a1

Federal Reserve
Bank

Special rate3

Regular rate
Rate on
11/30/78

Effective
date

Previous
rate

Rate on
11/30/78

Effective
date

Previous
rate

Rate on
11/30/78

Effective
date

Previous
rate

Rate on
11/30/78

Effective
date

91/2
91/2
91/2
91/2
91/4
9*4
91/2
91/2
91/2
91/2
9i/4
91/2

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

8V4
81/2
81/2
81/2
81/2
81/2
81/2
81/2
81/2
8i/4
81/4
81/2

10
10
10
10
10
10
10
10
10
10
10
10

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

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

101/4
101/4
101/4
10V4
loi/4
10%
101/2
101/2
101/2
101/2
101/2
101/2

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

9i/4
9V4
91/2
91/2
91/2
9i/4
91/2
91/2
91/2
91/2
91/4
91/2

121/2
121/2
121/2
121/4
121/4
12i/2
12V4
121/2
121/2
121/2
121/2
12V4

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

II1/2
IH/2
1H/4
IH/2
IH/2
IH/2
1H/4
1H/4
1H/4
1H/4
1H/6.
1H/4

Range
(or level)—
All F.R.
Banks

F.R.
Bank
of
N.Y.

1976—Jan.

19
23
Nov. 22
26

51/4-6
51/2
51/4-51/2
514

5*4
5*4
51/4
5V4

1977—Aug. 30
31
Sept. 2
Oct. 26

514-534
51/4-53/4

51/4
53/4

1978—Jan.

6-61/2
61/2
61/4-7
7
7-714
71/4

61/2
61/4
7
7
714
71/4

8
8-81/2
8V4
8*4-9*4
91/2

81/2
8V4
91/4
91/4

91/2

9i/4

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

Previous
rate

Range of rates in recent years5

Effective date

In effect Dec. 31, 1970
1971—Jan.

Feb.
July
Nov
Dcc.

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

1973—Jan. 15
Feb. 26
Mar. 2
Apr. 23

Range
(or level)—
All F.R.
Banks

F.R.
Bank
of
N.Y.

5%
5V4-5X
5V4
5-5V4
5-5 y4
5
4V4-5
4*A

51/2
5%
5%
51/4

4V4-5

5
5
5

4.
11.
18.
June 11.
15.
July 2.
Aug. 14.
23.

5
5
5

1974—Apr. 25.
30.
Dec. 9.

4V4

4V4-5
4V4
4%
4%
4y2-434
4VL-4V4 4%
4%
4*4
5

5%

Effective date

5
5%

5Vt
5*4

sy4
53/4-6

1973—May

6-6 *4

61/2

7
7-7*4

71/2
71/4-8
8
7V4-8
m

1975—Jan.

F.R.
Bank
of
N.Y.

53/4

6
6

61/4
6*4
7
7*4
7*4

13/4
13/4
714-734
13/4
714-734
71/4
1V4
m
6V4-1V4 63/4
6V4
6%
6V4
61/4-63^
6V4
61/4

16.

6.

10.

24.
Feb. 5.
7.
Mar. 10,
14,
May 16
23,

1 Discounts of eligible paper and advances secured by such paper or by
U.S. Govt, obligations or any other obligations eligible for F.R. Bank
purchase.
2
Advances secured to the satisfaction of the F.R. Bank. Advances
secured by mortgages on 1- to 4-family residential property are made at
the3 Section 13 rate.
Applicable to special advances described in Section 201.2(e)(2) of
Regulation A.




Range
(or level)—
All F.R.
Banks

6-6 y4
6

4

6
6

Effective date

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

In effect Nov. 30, 1978. ..

53/4
6

13/4

53/4
6

13/4
8

Advances to individuals, partnerships, or corporations other than
member banks secured by direct obligations of, or obligations fully
guaranteed as to principal and interest by, the U.S. Govt, or any agency
thereof.
5
Rates under Sees. 13 and 13a (as described above). For description
and earlier data, see the following publications of the Board of Governors:
Banking and Monetary Statistics, 1914-1941, Banking and Monetary
Statistics, 1941-1970, Annual Statistical Digest, 1971-75, and Annual
Statistical Digest, 1972-76.

Policy Instruments

A9

MEMBER BANK RESERVE REQUIREMENTS 1

1.15

Per cent of deposits
Requirements in effect
November 30, 1978

Previous requirements

Type of deposit, and deposit interval
in millions of dollars
Per cent

Effective date

Per cent

Effective date

7
9%

m

12%
161/4

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

10
12
13
161/z

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

3

3/16/67

m

3/2/67

3
5
2%
5 1

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

31/2
3
3

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

6
5
21/2
5 1

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

5
3
3

Net demand: 2
0-2
2-10
10-100
100-400
Over 400

H 3 /4

2

Time: -3
Savings
Other time: 4
0-5, maturing in—
30-179 days
180 days to 4 years
4 years or more
Over 5, maturing in—
30-179 days
180 days to 4 years

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

Legal limits

Net demand:
Reserve city banks
Other banks
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 .




Minimum

Maximum

10
7
3
0

22
14
10
22

(c) Effective August 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 per cent and 1 per cent, respectively. The Regulation D
reserve requirement on borrowings from unrelated banks abroad was
also reduced to zero from 4 per cent.
3
Negotiable orders of withdrawal (NOW) accounts and time deposits
such as Christmas and vacation club accounts are subject to the same
requirements
as savings deposits.
4
Effective November 2, 1978, a supplementary reserve requirement of
2 per cent was imposed on time deposits of $100,000 or more, obligations
of affiliates, and ineligible acceptances.
5
The average of reserves on savings and other time deposits must be
at least 3 per cent, the minimum specified by law.
NOTE.—Required reserves must be held in the form of deposits with
F.R. Banks or vault cash.

A10

DomesticNonfinancialStatistics • December 1978

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

Type and maturity of deposit

In effect Nov. 30, 1978
Per cent

1 Savings
2
Negotiable 1orders of withdrawal
accounts
3
Money market time deposit of less than

$100,0002

6
7
8
9
10

90 days to 1 year:
Multiple-maturity
Single-maturity
4

1 to 2 years
2 to i y 2 years 4
i y 2 to 4 years 4
years 55

11
12
13

4 to 6
6 to 8 years
8 years or more 5

14

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

15

Previous maximum

Effective
date

Per cent

5

7/1/73

4 V4

5

1/1/74

(10)

(9)

(9)

( )

7/1/73

41/4

Other time (multiple- and singlematurity unless otherwise indicated) •
30-89 days:
4
Multiple-maturity
5
Single-maturity

6

9

m
m
m

6/1/78

Effective
date

5%

( )

5

1/1/74

(10)

(9)

(9)

( )

Per cent

7

5

9

(10)

1/21/70
9/26/66

5%

53/4
5y4

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

(7)

53/4

W
(10)

11/1/73

6 V4

6
6

(7)

6V4
m
8

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

(n)
7V4
7%
7%

12/23/74

8

6/1/78

7/6/77

8

6/1/78

(10)

higher than the rate for commercial banks. The most recent rates and
effective dates are as follows:

1 For authorized States only. Federally insured commercial banks,
savings and loan associations, cooperative banks, and mutual savings
banks in Massachusetts and New Hampshire were first permitted to offer
negotiable orders of withdrawal (NOW) accounts on Jan. 1, 1974.
Authorization to issue NOW accounts was extended to similar institutions
throughout New England on Feb. 27, 1976, and in New York State on
Nov. 10, 1978.
2
Must have a maturity of exactly 26 weeks and a minimum denomination of $10,000, and must be nonnegotiable.
3 For exceptions with respect to certain foreign time deposits see the
Federal Reserve BULLETIN for October 1962 (p. 1279), August 1965 (p.
1094), and February 1968 (p. 167).
4
A minimum of $1,000 is required for savings and loan associations,
except in areas where mutual savings banks permit lower minimum denominations. This restriction was removed for deposits maturing in less
than 1 year, effective Nov. 1, 1973.
5 $1,000 minimum except for deposits representing funds contributed
to an Individual Retirement Account (IRA) or a Keogh (H.R. 10) Plan established pursuant to the Internal Revenue Code. The $1,000 minimum
requirement was removed for such accounts in December 1975 and November 1976, respectively.
6 3-year minimum maturity.
7 July 1, 1973, for mutual savings banks; July 6, 1973, for savings and
loan associations.
8 Oct. 1, 1966, for mutual savings banks; Jan. 21, 1970, for savings and
loan associations.
9 Commercial banks, savings and loan associations, and mutual savings
banks were authorized to offer money market time deposits effective
June 1, 1978. The ceiling rate for commercial banks is the discount rate
on most recently issued 6-month U.S. Treasury bills. The ceiling rate for
savings and loan associations and mutual savings banks is V4 per cent

1.161

Per cent

(7)

1V4
7 Va

6/1/78

Previous maximum

7/20/66
9/26/66
5 Vi

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

Effective
date

(9)

5

7/1/73
7/1/73

6%

In effect Nov. 30, 1978

1/21/70

7/1/73

5%

Savings and loan associations and
mutual savings banks

Nov. 2
8.982
9.232

Thrifts

Nov. 9
9.419
9.669

Nov. 16

Nov. 23

Nov. 30

9.291
9.541

8.996
9.246

9.330
9.580

10

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

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

1 Margin stocks
2 Convertible bonds
3 Short sales

Mar. 11, 1968

June 8, 1968

May 6, 1970

Dec. 6, 1971

Nov. 24, 1972

Jan. 3, 1974

70
50
70

80
60
80

65
50
65

55
50
55

65
50
65

50
50
50

NOTE.—Regulations G, T, and U of the Federal Reserve Board of
Governors, prescribed in accordance with the Securities Exchange Act of
1934, limit the amount of credit to purchase and carry margin stocks
that may be extended on securities as collateral by prescribing a maximum
loan value, which is a specified percentage of the market value of the
collateral at the time the credit is extended. Margin requirements are the




difference between the market value (100 per cent) and the maximum
loan value. The term "margin stocks" is defined in the corresponding
regulation.
Regulation G and special margin requirements for bonds convertible
into stocks were adopted by the Board of Governors effective Mar. 11,
1968.

Policy Instruments

All

1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS
Millions of dollars
1978
Type of transaction

1975

1976

1977
Apr.

May

June

July

Aug.

Sept.

Oct.

2,635

1,978
2,148

U.S. GOVERNMENT SECURITIES
Outright transactions (excluding matched salepurchase transactions)
Treasury bills:

Others within 1 year: 1

1 to 5 years:
10

Exchange, or maturity shift
5 to 10 years:

14
15
16

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

17
1s
19

All maturities: 1
Gross purchases
Gross sales
Redemptions

11,562
5,599
26,431

14,343
8,462
2 5,017

3,886
-4
3,549
2 3,284
3,854

13,738
7,241
2,136

1,670

472

3,017

100

792

4.499
2.500

136

235

290

631

-79

467

73

563

-385

424

350

507

241

-490

-563

385

191

110

87

122

139

758

1,572

584

1,070

642

553

848

225

1,565

221,313 219,707
8,639
5,599
2 9,980 2 5,017

20,898
7,241
4,636

2,341

935
737
300

5,451

701
466

1,919
689

3,386

2,785
2,148

196,078 425,214
196,579 423,841

42,262
42,799

40,634
40,362

52,544
52,557

44,657
44,712

29,162
29,641

33,346
33,130

35,112
36,106

8,044
8,999

11,517
11,819

14,956
13,100

15,822
17,374

16,286
15,140

10,724
10,353

18,976
20,565

1,923

-674

-1,261

2,854

3,540

43

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

178,683
180,535

24 Net change in U.S. Government securities

Gross sales

168

-1,544

1,048

Repurchase agreements
Gross purchases
Gross sales

Net change in Federal agency obligations

171
-241

1,510

22
23

30

972
689

-4,697

151,205
152,132

29

701
466

135
-380

-i36

Matched sale-purchase transactions
Gross sales
Gross purchases

Outright transactions:
25
Gross purchases
26
Gross sales
27
Redemptions
Repurchase agreements:

53
-2,343

4,395

2 3,202
2,833
177
-2,588 -6,649

20
21

FEDERAL AGENCY OBLIGATIONS

416
737
300

7,434

9,087

5,798

246
1,616

169
891

223
1,433

15,175
15,567

10,520
10,360

13,811
13,638

978

882

163
-35

-545
410

145

101

176

238

1,526

-87

1,434

74

115

113

895

600

7,320

34

28
301

4

173
13

28

12

1,282
1,410

3,927
4,037

3,421
3,088

5,170
5,457

3,080
3,032

3,877
3,348

6,675
7,196

1,383

-128

-144

606

-291

-138

501

-521

-196
159

-480

-17

747

-753

28

419

-479

-480

-17

747

-753

28

419

-479

8,783

-2,305

2,744

4,460

-969

BANKERS ACCEPTANCES
31 Outright transactions, net
32 Repurchase agreements, net
33 Net change in bankers acceptances
34 Total net change in System Open Market
Account

127

-135

-37

8,539

9,833

7,143

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




1,315

-834

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

A12

DomesticNonfinancialStatistics • December 1978

1.18 FEDERAL RESERVE BANKS

Condition and F.R. Note Statements

Millions of dollars

Account
Nov. 1

Nov. 8

Wednesday

End of month

1978

1978

Nov. 15

Nov. 22*>

Nov. 29f

Sept.

Oct.

Nov.f

Consolidated condition statement
ASSETS
1 Gold certificate account
2 Special Drawing Rights certificate account
3
4
5

Loans:
Member bank borrowings
Other
Acceptances:

7

8

Q

U.S. Government securities
Bought outright:
Bills

11,642
1,300

11,642
1,300

11,642
1,300

11,668
1,300

11,655
1,300

11,642
1,300

298

298

296

289

274

292

300

275

1,789

783

1,258

931

1,260

1,365

1,207

812

383

370

715

236

7,932
1,019

7,932

7,932

7,932
160

7,899
625

7,950
647

7,938
127

7,899

45,585

40,970

41,831

43,558

44,790

47,551

48,376

45,985

54,526
11,757
111,868
2,676

54,526
11,757
107,253

53,926
12,357
108,114

54,855
12,465
110,878
325

54,855
12,465
112,110
2,000

53,859
11,617
113,027
2,252

54,526
11,757
114,659
663

54,855
12,465
113,305

Other

15

16
17
18

Total loans and securities

19
20

Cash items in process of collection

21
22

11,649
1,300

405
Federal agency obligations:

10
11
12
13
14

11,655
1,300

Other assets:
Denominated in foreign currencies

23

114,544

107,253

108,114

111,203

114,110

115,279

115,322

113,305

125,689

115,968

117,304/

120,609

124,264

125,956

124,830

122,016

13,265
395

10,071
396

18,419
396

14,581
397

12,709
396

9,492
394

13,366
395

11,824
396

27
2,794

27
3,699

25
1,855

29
1,772

47
1,962

20
2,025

27
2,334

53
1,901

155,423

143,408

151,237

150,619

152,594

151,147

154,207

149,407

98,336

99,471

100,071

100,584

101,070

96,572

98,154

100,825

30,425
14,322
244
573

24,484
7,989
249
652

28,327
7,557
313
2,325

31,395
6,153
285
565

32,363
7,236
275
479

26,830
16,647
325
628

26,260
15,467
305
531

30,577
6,587
379
567

45,564

33,374

38,522

38,398

40,353

44,430

42,563

38,110

6,948
1,683

6,650
1,597

8,500
1,678

7,358
1,647

6.587
1,784

5,773
1,700

8,930
1,686

5,927
1,725

152,531

141,092

148,771

147,987

149,794

148,475

151,333

146,587

1,068
1,029
795

1,069
1,029
218

1,070
1,029
367

1,073
1,029
530

1,073
1,029
698

1,061
1,029
582

1,069
1,029
776

1,073
1,029
718

155,423

143,408

151,237

150,619

152,594

151,147

154,207

149,407

91,803

92,756

94,738

92,934

91,855

86,450

83,606

92,412

LIABILITIES
24 Federal Reserve notes
Deposits:
Member bank reserves
25
26
27

28

Foreign
Other 2

29
30
31

Deferred availability cash items
Other liabilities and accrued dividends

32

Total liabilities
CAPITAL ACCOUNTS

33
34
35

Other capital accounts

36

Total liabilities and capital accounts

37

MEMO: Marketable U.S. Govt, securities held in
custody for foreign and intl. account

Federal Reserve note statement
110,796

111,296

111,759

112,272

112,423

109,590

110,741

112,445

40
41
42

F.R. notes outstanding (issued to Bank)
Collateral held against notes outstanding:
Gold certificate account
Special Drawing Rights certificate account....
Eligible paper
U.S. Government securities

11,655
1,300
1,581
96,260

11,649
1,300
587
97,760

11,642
1,300
682
98,135

11,642
1.300
756
98,574

11,642
1,300
1,170
98,311

11,668
1,300
1,137
95,485

11,655
1,300
1,094
96,692

11,642
1,300
692
98,811

43

Total collateral

110,796

111,296

111,759

112,272

112,423

109,590

110,741

112,445

38
39

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




2
includes certain deposits of domestic nonmember banks and foreignowned banking institutions voluntarily held with member banks and
redeposited in full with F.R. Banks.

Reserve Banks
1.19 FEDERAL RESERVE BANKS

A13

Maturity Distribution of Loan and Security Holdings

Millions of dollars

Type and maturity
Nov. 1
1 Loans
2
Within 15 days
16 days to 90 days.
3
4
91 days to 1 year...

1,796
1,701
95

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

405
405

Nov. \
783
673
110

Wednesday

End of month

1978

1978

Nov. 15

Nov. 22

Nov. 29

Sept. 30

931
876
55

1,260
1,222
38

1,363

1,206

75

98

383
383

370
370

715
715

236
236

1,257
1,197
60

Oct. 31

1,288

1,108

9 U.S. Government securities.
10
Within 15 days i
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

114,544
8,666
20,349
30,204
31,638
13,719
9,968

107,253
5,958
17,863
28,107
31,638
13,719
9,968

108,114
3,059
18,073
30,655
31,205
14,554
10,568

111,203
5,386
18,860
29,732
31,833
14,717
10,675

114,110
7,352
19,775
29,758
31,833
14,717
10,675

115,279
5,150
25,203
30,157
31,309
13,632
9,828

115,322
7,195
22,072
30,730
31,638
13,719
9,968

16 Federal agency obligations..
17
Within 15 days i
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

8,951
1,019
369
1,520
3,663
1,520
860

7,932

7,932
94
292
1,503
3,663
1,520
860

8,092
316
230
1,503
3,663
1,520
860

8,524
761
437
1,292
3,686
1,488
860

8,597
701
340
1,467
3,619
1,609
861

8,065
164
369
1,488
3,664
1,520
860

386
1,503
3,663
1,520
860

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.
1978
Bank group, or type
of customer

1975

1976

1977
July

June
Debits to demand deposits
1 All commercial banks
2 Major New York City banks. .
3 Other banks

25,028.5
9,670.7
15,357.8

29,180.4
11,467.2
17,713.2

34,322.8
13,860.6
20,462.2

41,538.5
15,976.0
25,562.5

2

Sept.

Aug.

Oct.

(seasonally adjusted)
40,575.1
15,355.3
25,219.7

42.722.1
16,432.9
26.289.2

41.811.6
15,495.9
26.315.7

42,855.9
15,437.3
27,418.6

420.4
60.9
359.5

461.4
67.2
394.2

141.6
549.6
98.6

144.1
530.1
102.2

1.9
5.3
1.7

2.1
5.8
1.9

Debits to savings deposits 3 (not seasonally adjusted)
4 AH customers
5 Business 1
6 Others

174.0
21.7
152.3

444.0
61.5
382.6

Demand deposit turnover
7 All commercial banks
8 Major New York City banks. .
9 Other banks

105.3
356.9
72.9

116.8
411.6
79.8

129.2
503.0
85.9

144.4
596.0
98.0

432.1
55.6
376.5
2

433.0
57.6
375.4

(seasonally adjusted)

139.0
553.0
95.5

146.2
577.5
99.7

Savings deposit turnover 3 (not seasonally adjusted)
10 All customers
11 Business 1
12 Others
1
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).
2
Represents accounts of individuals, partnerships, and corporations,
and of States and political subdivisions.
3 Excludes negotiable orders of withdrawal (NOW) accounts and
special club accounts, such as Christmas and vacation clubs.




1.6
4.1
1.5

2.0
5.5
1.8

2.0
5.1
1.8

2.0
5.2
1.8

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

A14

DomesticNonfinancialStatistics • December 1978

1.21 MONEY STOCK MEASURES AND COMPONENTS
Billions of dollars, averages of daily figures
1978
1974
Dec.

1975
Dec.

1976
Dec.

1977
Dec.
May

Item

June

July

Aug.

Sept.

Oct.

354.2
577.8
846.2
r
l,441.0
933.6
r
l,528.4

356.7
582.0
853.5
1,455.1
939.8
1,541.4

360.9
587.9
862.4
r
l,472.1
950.5
r
l,560.2

362.0
588.8
867.4
1,484.2
955.6
1,572.4

Seasonally adjusted
MEASURES 1
1
2
3
4
5
6

282.9
419.0
612.2
981.2
701.2
1,070.3

M-l
M-l -jM-2
M-3
M-4
M-5

295.2
456.4
664.7
1,092.5
746.1
1,173.8

313.5
516.8
740.5
1,236.5
803.2
1,299.2

338.5
560.2
809.5
1,376.1
883.5
1,450.1

350.6
575.2
835.2
1,419.9
922.2
1,506.9

352.8
577.1
840.6
1,429.8
927.3
1,516.5

COMPONENTS
7 Currency
Commercial bank deposits:
8
Demand
9
Time and savings
10
Savings
It
Negotiable CD's2
12
Other time

67.8

73.7

80.7

88.6

92.1

92.8

93.3

94.0

95.2

96.0

215.1
418.3
135.8
89.0
193.5

221.5
450.9
160.5
81.3
209.1

232.8
489.7
201.9
62.7
225.1

249.9
545.0
219.6
74.0
251.5

258.5
571.6
222.0
87.1
262.6

259.9
574.5
221.7
86.7
266.1

260.9
579.4
220.9
87.4
271.1

262.8
583.0
222.4
86.3
274.3

265.7
589.7
224.2
88.1
211A

266.1
593.6
223.9
88.2
281.5

13 Nonbank thrift institutions 3

369.1

427.8

496.0

566.6

584.7

589.2

59417

601.6

609.6

616.8

356.0
581.9
848.7
1,447.9
936.0
r
l ,535.3

354.2
579.3
850.8
r
l,453.0
938.8
1,541.0

358.8
583.2
858.4
1,466.4
948.7
1,556.7

361.3
586.2
864.5
1,478.8
955.3
1,569.6

Not seasonally adjusted
MEASURES i
14
15
16
17
18
19

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

291.3
426.2
617.5
983.8
708.0
1,074.3

303.9
463.6
670.0
1,095.0
753.5
1,178.4

322.6
524.2
745.8
1,238.4
810.0
1,320.7

348.2
568.1
814.9
1,377.5
890.9
1,453.4

345.3
571.7
833.6
1,420.3
918.2
1,405.0

69.0

75.1

82.1

90.1

91.9

92.9

94.1

94.3

95.0

95.8

222.2
159.7
58.5
416.7
134.5
90.5
191.7

228.8
162.8
62.6
449.6
159.1
83.5
207.1

240.5
169.4
67.5
487.4
200.2
64.3
222.9

258.1
177.5
76.2
542.6
217.7
75.9
249.0

253.3
172.6
76.9
572.9
223.8
84.6
264.5

258.8
175.7
79.1
576.6
223.8
86.3
266.5

262.0
Ml .1
80.3
579.9
223.1
87.3
269.5

259.9
176.1
79.9
584.6
222.2
88.0
21A A

263.8
178.2
r
81.8
589.9
222.1
90.3
211.5

265.6
179.2
82.6
594.0
222.0
90.8
281.2

0.4
366.3

0.7
424.9

1.4
492.7

2.1
562.5

2.6
586.7

2.6
593.2

2.7
599.3

2.8
602.1

2.9
'608.1

2.9
614.3

4.9

4.1

4.4

5.1

4.0

6.2

4.5

3.6

6.2

4.3

351.7
578.1
842.0
1,435.2
928.3
1,521.5

COMPONENTS
20 Currency
Commercial bank deposits:
21
Demand
22
Member
23
Domestic nonmember
24
Time and savings
25
Savings
26
Negotiable CD's 2
27
Other time
28 Other checkable deposits 4 3
29 Nonbank thrift institutions
30 U.S. Government deposits (all commerical banks)
1

Composition of the money stock measures is as follows:

M - l : Averages of daily figures for (1) demand deposits at commercial
banks other than domestic interbank and U.S. Govt., less cash items in
process of collection and F.R. float; (2) foreign demand balances at F.R.
Banks; and (3) currency outside the Treasury, F.R. Banks, and vaults
of commercial banks.
M - l + : M-l plus savings deposits at commercial banks, N O W accounts
at banks and thrift institutions, credit union share draft accounts, and
demand deposits at mutual savings banks.
M-2: M-l plus savings deposits, time deposits open account, and time
certificates of deposit (CD's) other than negotiable CD's of $100,000 or
more at large weekly reporting banks.
M-3: M-2 plus the average of the beginning- and end-of-month deposits

r

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

NOTES TO TABLE 1.23:
1 Adjusted to exclude domestic commercial interbank loans.
2 Loans sold are those sold outright to a bank's own foreign branches,
nonconsolidated nonbank affiliates of the bank, the bank's holding
company (if not a bank), and nonconsolidated nonbank subsidiaries of
the holding company. Prior to Aug. 28, 1974, the institutions included
had been defined somewhat differently, and the reporting panel of banks
was also different. On the new basis, both "Total loans" and "Commerical and industrial loans" were reduced by about $100 million.
3 Data beginning June 30, 1974, include one large mutual savings
bank that merged with a nonmember commercial bank. As of that date
there were increases of about $500 million in loans, $100 million in
"Other" securities and $600 million in "Total loans and investments."
As of Oct. 31, 1974, "Total loans and investments" of all commercial
banks were reduced by $1.5 billion in connection with the liquidation




of one large bank. Reductions in other items were: "Total loans," $1.0
billion (of which $0.6 billion was in "Commercial and industrial loans"),
and "Other securities," $0.5 billion. In late November "Commercial and
industrial loans" were increased by $0.1 billion as a result of loan reclassifications at another large bank.
4
Reclassification of loans reduced these loans by about $1.2 billion
as of Mar. 31, 1976.
5
Reclassification of loans at one large bank reduced these loans by
about $200 million as of Dec. 31, 1977.
NOTE.—Data are for last Wednesday of month except for June 30
and Dec. 31; data are partly or wholly estimated except when June 30
and Dec. 31 are call dates.

Monetary
1.22 AGGREGATE RESERVES AND DEPOSITS

Aggregates

A15

Member Banks

Billions of dollars, averages of daily figures
1978

1977
1974
Dec.

Item

1975
Dec.

1976
Dec.
Dec.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

38.17
37.11
37.97
606.4
416.0

38.44
37.16
38.26
608.1
417.5

186.3
4.1

187.2
3.5

605.9
416.6

608.4
418.5

184.7
4.6

186.9
3.0

Seasonally adjusted
36.57
1 Reserves 1
35.84
2 Nonborrowed
36.31
3 Required
4 Deposits subject to reserve requirements 2 . . 486.1
322.1
5 Time and savings
Demand:
160.6
6
Private
3.3
7
U.S. Government

34.68
34.55
34.42
504.6
337.1

34.93
34.89
34.29
528.9
354.3

36.14
35.57
35.95
569.1
387.0

36.67
36.34
36.47
582.1
399.2

36.95
36.39
36.80
586.0
400.7

37.26
36.05
37.04
592.0
406.0

37.73
36.63
37.55
595.6
407.1

38.19
36.88
38.00
600.3
410.5

164.5
2.9

171.4
3.2

178.5
3.6

179.6
3.4

182.0
3.3

183.5
2.6

184.6
3.9

186.1
3.7

186.5
3.3

r

37.91
36.77
37.74
601.1
411.4

r

N o t seasonally adjusted
8 Deposits subject to reserve requirements 2 .. 491.8
321.7
9
Time and savings
Demand:
166.6
10
Private
3.4
11
U.S. Government

510.9
337.2

534.8
353.6

575.3
386.4

579.4
399.3

588.6
401.2

588.3
406.1

596.8
408.6

600.6
411.1

599.2
412.8

170.7
3.1

177.9
3.3

185.1
3.8

176.6
3.5

183.8
3.6

179.3
2.9

183.7
4.5

186.4
3.2

183.9
2.5

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

1.23 LOANS AND INVESTMENTS

r

2
Includes total time and savings deposits and net demand deposits as
defined by Regulation D. Private demand deposits include all demand
deposits except those due to the U.S. Govt., less cash items in process of
collection and demand balances due from domestic commercial banks.

NOTE.—Back data and estimates of the impact on required reserves
and changes in reserve requirements are shown in Table 14 of the Board's
Annual Statistical Digest, 1971-1975.

All Commercial Banks

Billions of dollars; last Wednesday of month except for June 30 and Dec. 31
1978
1974
Dec. 313

Category

1975
Dec. 31

1976
Dec. 31

1977
Dec. 31
June 30

July 26p

Aug. 30p

Sept. 21p

Oct. 25f

Nov. 29f

Seasonally adjusted
1 Loans and investments1
2
Including loans sold outright 2
3
4
5
6

Loans:
Total
Including loans sold outright 2 ...
Commercial and industrial
Including loans sold outright 2 ...

Investments:
U.S. Treasury
7
Other
8

c
691.1
c

695.9

c
c

500.2
505.0

c
183.5
c

186.2

c

"51.1
139.8

c
721.8
c

726.2

c

496.9

c
501.3
C

176.2
c
178.7

c

c
80.1
144.8

c
785.1
c

788.9

870.6
875.5

932.2
936.7

940.7
945.3

944.6
949.3

952.4
957.0

960.9
964.8

966.3
970.0

c
538.9
c
542.7
04179.7
c4
182.1

617.0
621.9
5201.4
5204.2

667.8
672.3
219.0
221.2

675.1
679.7
220.8
223.1

680.2
684.9
222.8
225.2

687.3
691.9
224.6
226.9

696.8
700.7
227.0
228.9

706.7
710.4
228.9
230.8

c
98.0
148.2

95.6
158.0

100.2
164.2

100.6
165.0

97.9
166.5

97.2
167.9

95.2
168.9

90.3
169.3

c

N o t seasonally adjusted
1

9 Loans and investments
Including loans sold outright 2
10

705.6
710.4

737.0
741.4

801.6
805.4

888.9
893.8

938.7
943.2

936.6
941.2

942.0
946.7

951.4
956.1

958.4
962.3

969.1
972.8

11
12
13
14

Loans:
Total 1
Including loans sold outright 2 ...
Commercial and industrial
Including loans sold outright 2 ...

510.7
515.5
186.8
189.5

507.4
511.8
179.3
181.8

550.2
554.0
4182.9
4185.3

629.9
634.8
5205.0
5207.8

675.8
680.3
221.6
223.8

675.6
680.2
220.9
232.2

681.0
685.7
221.7
224.1

688.6
693.3
223.9
226.2

696.6
700.5
226.5
228.4

717.1
700.8
228.9
230.8

15
16

Investments:
U.S. Treasury
Other

54.5
140.5

84.1
145.5

102.5
148.9

100.2
158.8

97.9
165.1

96.1
164.9

94.8
166.2

95.0
167.7

93.5
168.3

92.6
169.5

For notes see bottom of opposite page.




DomesticNonfinancialStatistics • December 1978

A16

1.24 COMMERCIAL BANK ASSETS AND LIABILITIES

Last-Wednesday-of-Month Series

Billions of dollars except for number of banks
1976

19783

1977
1

Account
Dec.

Dec.

Apr.

Mar.

May

June

July*

Aug.f

Sept.3'

Oct.P

Nov.*

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

846.4
594.9

939.1
680.1

939.7
680.4

953.0
688.7

974.4
712.4

985.0
722.1

980.6
719.6

985.5
724.5

995.6 1 , 0 0 3 . 0 1 , 0 1 6 . 0
733.4
741.2
754.0

102.5
148.9

100.2
158.8

99.0
160.3

100.2
164.1

97.3
164.6

97.9
165.1

96.1
164.9

94.8
166.2

94.9
167.3

93.5
168.3

92.6
169.5

5
6
7
8
9

136.1
12.1
26.1
49.6
48.4

168.7
13.9
29.3
59.0
66.4

130.5
14.4
30.2
42.6
43.3

133.1
14.3
27.6
43.6
47.6

161.0
14.5
30.3
51.9
64.3

166.8
12.0
29.6
56.0
69.3

130.2
14.8
23.6
44.4
47.3

137.4
15.2
29.7
43.0
49.5

141.8
15.2
32.6
44.4
49.6

146.5
15.1
34.6
45.0
51.7

149.3
16.7
32.6
46.5
53.5

1,030.7

1,166.0

1,140.5

1,156.9

1,206.5

1,215.0

1,179.2

1,192.9

1,208.7

1,220.4

1,240.5

838.2

939.4

899.8

915.5

952.9

965.7

932.3

937.7

949.9

952.3

959.4

45.4
3.0
288.4

51.7
7.3
323.9

37.6
4.9
281.2

39.0
6.2
293.8

51.2
3.3
312.9

49.3
8.0
317.5

40.5
4.3
296.3

40.4
2.8
298.6

41.9
11.0
297.1

43.3
7.6
299.2

42.9
2.1
305.0

9.2
492.2

9.8
546.6

9.0
567.1

9.0
567.5

9.4
576.1

10.2
580.8

10.3
580.9

10.7
585.2

11.6
588.3

11.1
591.2

11.8
597.6

80.2
78.1

96.2
85.8

105.6
83.4

104.9
83.7

112.2
84.6

106.8
89.9

103.2
85.8

109.1
86.2

112.8
87.1

118.3
87.1

125.3
87.8

14,671

14,707

14,689

14,697

14,702

14,698

14,713

14,721

14,715

14,713

14,713

Cash assets
Reserves with F.R. Banks
Balances with banks
Cash items in process of collection..

10

Total

11

Deposits
Demand:
Interbank
U.S. Government
Other
Time:

12
13
14
15
16

assets/total

liabilities

and

Other

17
18

Borrowings
Total capital accounts 2

19

MEMO: Number of banks

Member
20
21

620.5
442.9

675.5
494.9

668.6
490.5

676.8
495.3

693.8
514.3

699.7
519.6

695.8
517.6

698.9
520.3

706.9
527.0

713.4
533.9

724.2
544.5

22
23

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

74.6
103.1

70.4
110.1

68.2
109.9

68.8
112.7

66.9
112.7

67.4
112.7

65.7
112.5

65.3
113.3

65.4
114.5

64.1
115.3

63.5
116.1

24
25
26
27
28

Cash assets, total
Currency and coin
Reserves with F.R. Banks
Balances with banks
Cash items in process of collection..

108.9
9.1
26.0
27.4
46.5

134.4
10.4
29.3
30.8
63.9

104.8
10.6
30.2
22.9
41.2

106.5
10.5
27.6
22.7
45.7

130.7
10.6
30.3
28.1
61.7

133.8
8.7
29.6
29.1
66.5

104.2
10.8
23.6
24.3
45.4

111.2
11.1
29.7
22.9
47.6

115.4
11.1
32.6
24.0
47.7

118.6
11.1
34.6
23.2
49.7

121.3
12.3
32.6
25.1
51.4

29

Total assets/total
capital 1

772.9

861.8

833.2

843.3

884.7

888.7

857.3

868.5

882.2

891.2

908.4

618.7

683.5

645.1

655.1

686.7

694.3

666.1

670.6

679.6

682.5

688.7

42.4
2.1
215.5

48.0
5.4
239.4

34.7
3.7
205.1

36.0
4.5
213.4

47.5
2.2
229.1

45.5
5.6
231.6

37.3
3.1
214.6

37.2
1.9
217.0

38.6
8.1
215.6

39.9
5.7
217.0

39.5
1.5
221.4

7.2
351.5

7.8
382.9

7.0
394.7

6.9
394.3

7.3
400.5

8.1
403.4

8.2
402.9

8.6
405.9

9.4
407.8

9.0
411.0

9.7
416.7

71.7
58.6

84.9
63.7

91.8
62.4

91.1
62.7

96.9
63.3

92.1
66.1

88.0
64.2

93.9
64.5

97.2
65.1

101.4
65.2

108.0
65.7

5,759

5,669

5,654

5,645

5,638

5,622

5,613

5,610

5,593

5,585

5,585

30

liabilities

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

31
32
33
34
35

Borrowings
Total capital accounts 2

36
37
38

MEMO: Number of banks
1

and

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




NOTE.—Figures include all bank-premises subsidiaries and other significant majority-owned domestic subsidiaries.
Commercial banks: AJ1 such banks in the United States, including
member and nonmember banks, stock savings banks, nondeposit trust
companies, and U.S. branches of foreign banks.
Member banks: The following numbers of noninsured trust companies
that are members of the Federal Reserve System are excluded from member banks in Tables 1.24 and 1.25 and are included with noninsured banks
in Table 1.25: 1976—December, 11; 1978—January, 12.

Commercial

Banks

A17

1.25 COMMERCIAL BANK ASSETS AND LIABILITIES Call-Date Series
Millions of dollars, except for number of banks
1977

1976

1978

1976

June 30

Dec. 31

1977

1978

Account
June 30

Dec. 31

Dec. 31

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

827,696

r

578,734
r
560,077
101,461
147,500
129,562

r

854,733

r

601,122
581,143

r

100,568
153,042
130,726

8
Demand:
U.S. Government

9
10
11

Other
Time:

12
13

Other

Dec. 31

June 30

National (all insured)

914,779

956,431

476,610

488,240

523,000

542,218

657,509
••636,318

695,443
672,207

340,691
329,971

351,311
339,955

384,722
372,702

403,812
390,630

99,333
l57,936
159,264

97,001
163,986
157,393

55,727
80,191
76,072

53,345
83,583
74,641

52,244
86,033
92,050

50,519
87,886
90,728

r

583,304

599,743

651,360

671,166

825,003

847,372

••922,657

945,874

469,377

476,381

520,167

526,932

3,022
44,064
285,200

2,817
44,965
284,544

7,310
r
49,843
319,873

7,956
47,203
312,707

1,676
23,149
163,346

1,632
22,876
161,358

4,172
25,646
181,821

4.483
22,416
176,025

8,248
484,467

7,721
507,324

8,731
536,899

8,987
569,020

4,907
276,296

4,599
285,915

5,730
302,795

5,791
318,215

81,137
75,502

r
89,339
'"79,082

98,351
83,074

54,421
41,319

57,283
43,142

63,218
44,994

68,948
47,019

14,425

14,397

14,381

4,735

4,701

4,654

4,616

1 , 0 0 3 , 9 7 0 1,040,945 1 , 1 2 9 , 7 1 2 1,172,772

7

June 30

14
15

Total capital accounts

75.291
72,061

16

MEMO: Number of banks

14,397

r

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

r
l10,243
r

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

'•189,579

195,452

r

210,442

217,384

231,086

245,748

267,910

284,221

149,491

152,472

163,436

167,403

206,134

218,519

239,053

251,539

429
19,295
52,204

371
20,568
52,570

1,241
r
22,346
57,605

1,158
23,117
55,550

917
1,619
69,648

813
1,520
70,615

1,896
1,849
80,445

2,315
1,669
81,131

2,384
75,178

2,134
76,827

2,026
80,216

2,275
85,301

956
132,993

988
144,581

973
153,887

920
165,502

30
31

17,310
13,199

19,697
13,441

r
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

1,023

1,019

1,014

1,005

8,639

8,705

8,729

8,760

17
Loans:
Gross
Net
Investments :
U.S. Treasury securities
Other

18
19
20
21
22

Total assets/total liabilities1

23
24

Demand:
25
26
27

Other
Time:

28
29

Other

Noninsured nonmember

r

Total nonmember

18,819

22,940

24,415

28,699

225,904

244,837

263,681

285,448

16,336
16,209

20,865
20,679

22,686
22,484

26,747
26,548

152,103
146,840

168,559
162,694

185,230
178,896

202,641
195,655

1,054
1,428
6,496

993
1,081
8,330

879
849
9,458

869
1,082
9,360

27,938
45,863
27,127

28,919
47,357
28,497

29,788
48,662
34,367

30,465
52,341
32,967

39

26,790

33,390

36,433

42,279

257,877

279,139

304,343

326,501

40

13,325

14,658

16,844

19,924

219,460

233,177

255,898

271,463

4
1,277
3,236

8
1,504
3,588

10
1,868
4,073

8
2,067
4,814

921
2,896
72,884

822
3,025
74,203

1,907
3,718
84,518

2,323
3,736
85,946

1,041
7,766

1,164
8,392

1,089
9,802

1,203
11,831

1,997
140,760

2,152
152,974

2,063
163,690

2,123
177,334

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

275

293

310

317

8,914

8,998

9,039

9,077

33
Loans:
34
35

Net
Investments:
U.S. Treasury securities
Other

36
37
38

Demand :
41
42
43

Time:
Interbank

44
45
46
47

Total capital accounts

48

MEMO: Number of banks
1

Includes items not shown separately.




For Note see Table 1.24.

r

A18

DomesticNonfinancialStatistics • December 1978

1.26 COMMERCIAL BANK ASSETS AND LIABILITIES Detailed Balance Sheet, June 30, 1978
Millions of dollars, except for number of banks.
Member banks 1
Asset account

Insured
All
commercial commercial
banks
banks

Nonmember
banks 1

Large banks
Total
New York
City

City of
Chicago

Other
large2

All other

166,754
11,950
29,574
43,092
6,779
6,093
69,266

157,393
11,883
29,566
38,158
5,007
3,588
69,192

133,786
8,691
29,566
23,166
2,775
3,110
66,478

40,354
795
4.104
10,382
520
439
24,113

5,594
190
1,537
248
5
384
3,231

48,783
2,878
12,499
3,539
782
1,484
27,602

39,054
4,828
11,426
8,996
1,468
803
11,533

32,967
3,259
8
19,926
4,004
2,982
2,788

261,272
97,872
39,847
117,257
6,204
92

259,360

97,002
39,486
117,018
5,767

178,753
67,406
25,193
82,541
3,549
64

20,609
9.623
1,800
8,881
305

7,979
2,955
1,353
3,480
191

57,297
22,215
7,362
26,626
1,071
23

92,868
32,613
14,678
43,554
1,981
41

82,519
30,466
14,654
34,716
2,655
27

7,160
4,062
986
1,676
345
92

7,156
4,062
986
1,676
345
88

7,010
4,044
976
1,657
270
64

3,026
1,907
428
610
82

978
713
80
133
52

19

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

2,756
1,352
423
824
133
23

251
72
45
90
3
41

150
17
11
19
75
27

20
21
22
23
24

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

254,112
93,810
38,861
115,582
5,859

252,204
92,940
38,499
115,343
5,422

171,743
63,362
24,217
80,884
3,279

17,583
7,716
1,373
8,271
223

7,002
2,242
1,273
3,347
139

54,541
20,863
6,939
25,802
938

92,617
32,541
14,633
43,464
1,979

82,369
30,448
14,644
34,697
2,580

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
8 Total securities held—Book value
9
U.S. Treasury
10
Other U.S. Govertment agencies
11
States and political subdivisions
12
All other securities
13
Unclassified total
14
15
16
17
18

25 Federal Reserve stock and corporate stock
26 Federal funds sold and securities resale agreement.
27
Commercial banks
28
Brokers and dealers
29
Others
30 Other loans, gross
31
LESS: Unearned income on loans.
32
Reserves for loan loss
33
Other loans, net
34
35
36
37
38
39
40
41
42
43
44

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

1,669

1,628

1,380

309

105

491

475

288

48,576
41,068
4,962
2,546

43,768

34,495
27,517
4,847
2,131

4,309
2,321
1,514
474

1,616
1,300
235
80

17,935
13,996
2,528
1,411

10,636
9,899
569
167

14,081
13,552
115
415

673,615
16,142
7,293
650,180

651,675

16,086
7,150
628,439

485,054
10,768
5,680
468,606

76,423
620
1,297
74,506

25,479
104
325
25 049

184,099
3,521
2,155
178,424

199,053
6,524
1,902
190,628

188,560
5,374
1,613
181,574

192,877
23,658
8,208
110,293
104,952
1,496
97,457
5,341
399
4,941
50,719

192,609
23,639
8,189
110,113
104,793
7,423
97,370
5,320
395
4,926
50,667

131,891
17,684
3,565
76,832
72,964
6,430
66,534
3,869
327
3,541
33,810

9,629
2,391
23
4,891
4,209
519
3,690
683
120
563
2,324

2,678
630
8
1,426
1,331
42
1,289
95
25
70
614

49,324
8,586
405
28,984
27,608
3,395
24,213
1,376
87
1,289
11,349

70,260
6,076
3,129
41,531
39,816
2,474
37,342
1,714
96
1,619
19,523

60,986
5,974
4.643
33,460
31,988
1,065
30,923
1,472
72
1,400
16,909

36,621
4,954
2,193

45
46
47
48
49
50
51
52
53
54

Loans to financial institutions
REIT's 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

44,426
8,348
5,263
12,864
1,480
16,471
11,716
4,425
27,018
221,591

35,472
8,341
3,116
6,610
1,458
15,948
11,340
4,337
26,993
210,907

33,355
7,949
2,398
6,447
1,312
15,249
11,043
3,604
14,813
170,678

11,483
2,114
702
2,931
240
5,496
6,567
403
161
38,588

4,015
812
123
272
53
2,755
1,457
294
178
13,149

14,985
4,369
1,307
2,648
775
5,886
2,706
1,896
3,630
67,555

2,873
654
265
596
245
1,113
313
1,011
10,844
51,387

11,071
399
2,865
6,417
168
1,222
673
821
12,205
50,913

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

Loans to individuals
Instalment loans
Passenger automobiles
Residential repair and modernization.
Credit cards and related plans
Charge-account credit cards
Check and revolving credit p l a n s . . .
Other retail consumer goods
Mobile homes
Other
Other instalment loans
Single-payment loans to individuals
All other loans

153,582
124,139
55,757
7,956
20,136
16,185
3,951
18,752
9,387
9,365
21,539
29,443
17,979

153,458
124,066
55,740
7,955
20,125
16,184
3,941
18,747
9,387
9,360
21,498
29,392
16,559

105,611
85,515
35,523
5,203
17,766
14,516
3,249
12,722
6,553
6,169
14,301
20,096
14,059

6,686
5,041
994
305
2,214
1,424
791
395
171
225
1,132
1,646
2,906

2,334
1,505
179
77
1,068
1,027
41
54
19
35
128
829
1,373

37,998
31,323
10,746
1,912
9,069
7,617
1,453
4,843
2,471
2,372
4,752
6,675
6,005

58,592
47,646
23,605
2,909
5,414
4,449
965
7,430
3,892
3,537
8,288
10,946
3,774

47,971
38,624
20,233
2,753
2,370
1,668
702
6,030
2,834
3,196
7,238
9,347
3,920

961,697

933,196

683,234

99,732

34,749

254,146

294,607

278,463

6,303
22,318
3,146
16,489
38,347

6,302
22,191
3,109
15,293
35,288

5,918
16,454
3,069
14,788
31,300

1,106
2,390
1,546
7,399
12,779

98
793
182
1,089
1,241

3,669
6,215
1,240
5,908
12,456

1,045
7,056
101
392
4,824

384
5,863
77
1,701
7,046

1,215,052

1,172,773

888,551

165,307

43,748

332,417

347,080

326,501

68 Total loans and securities, net
69
70
71
72
73

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

74 Total assets.
For notes see opposite page.




Commercial Banks
1.26

A19

Continued
Member banks 1
Liability or capital account

Insured
All
commercial commercial
banks
banks

Nonmember
banks 1

Large banks
Total
New York
City

City of
Chicago

Other
large 2

All other

374,758
1,626

367,867
1,425

282,751
1,217

65,198
588

10,932

100,994
291

105,627
337

92,006
409

279,829
7,964
18,210
1,840
38,924
8,721
17,643

278,459
7,956
18,138
1,351
37,963
7,815
14,760

206,399
5,641
12,421
1,317
36,639
7,679
11,440

33,292
584
830
1,084
18,730
6,007
4,083

7,802
187
184
25
2,147
225
361

78,702
2,043
3,564
170
11,503
1,249
3,473

86,603
2,828
7,842
37
4,260
198
3,522

73,430
2,323
5,789
524
2,285
1,042
6,204

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, etc
91
Commercial banks in United States
92
Banks in foreign countries

365,015
90
292

353,571
90
275

257,007
72
263

37,850

15,695

115

37

93,735
1
90

109,727
71
20

108,008
18
29

287,380
989
56,273
10,171
7,968
1,853

280,154
989
55,928
7,429
7,352
1,354

202,808
793
38,077
7,193
6,645
1,156

29,149
82
1,672
4,184
1,917
730

12,118
39
1,261
1,201
911
128

72,205
421
16,031
1,684
3,113
190

89,336
251
19,113
123
705
108

84,572
195
18,195
2,979
1,323
697

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

226,026
210.453
10,807
62
4,501
204

224,436
209,067
10,787
62
4,486
35

154,577
144,198
7,431
53
2,863
31

10,945
10,150
504

2,758
2,612
137

55,474
51,865
3,091
16
494
9

85,401
79,572
3,699
36
2,087
7

71,449
66,255
3,376
9
1,638
172

99 Total deposits

965,799

945,875

694,335

113,992

29,385

250,204

300,755

271,464

93,179
46,947
13,356
32,876
13,586
1,738
17,125
33,773

88,903
43,727
13,289
31,887
9,448
1,733
15,925
22,062

83,003
41,154
12,325
29.524
9,112
1,425
15,419
19,126

20,103
7,773
3,199
9,132
3,398
233
8,014
5,911

8,989
5,904
1,897
1,188
179
28
1,095
1,106

40,575
21,697
5,686
13,192
4,243
698
5,916
8,051

13,336
5,780
1,543
6,013
1,292
465
394
4,057

10,176
5,793
1,030
3,352
4,473
313
1,705
14,647

1,125,200

1,083,946

822,421

151,651

40,782

309,688

320,299

302,779

5,816

5,753

4,440

1,004

80

2,061

1,296

1,376

84,037
88
17,790
32,386
31,949
1,824

83,074
88
17,691
31,874
31,684
1,744

61,690
33
12,743
22,906
24.803
1,205

12,652

2,885

2,645
4,451
5,334
132

570
1,404
859
52

20,668
2
3,997
8,063
8,238
368

25,485
31
5,531
8,898
10,372
652

22,347
55
5,047
9,480
7,146
619

1,215,052

1,172,773

888,551

165,307

43,748

332,417

347,080

326,501

117 Demand deposits adjusted 4
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

258,603

252,756

173,993

21,771

5,368

59,847

87,007

84,610

151,066

142,173

121,518

35,452

5,619

44,611

35,836

29,548

53,196
647,386
181,510
941,481

47,463
628,167
174,479
923,749

36,121
468,342
143,050
675,725

5,530
74,085
31,979
106,594

1,901
24,972
12,833
28,441

16,558
178,557
61,496
243,663

12,132
190,728
36,742
297,026

17,075
179,043
38,459
265,756

95,273
13,002

90,853
8,533

85,358
8,027

21,859
3,433

9,825
171

40,469
3,437

13,205
986

9,915
4,975

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

18,948
183,339
155,925
27,414

17,750
177,602
151,931
25,671

16,686
145,695
123,685
22,001

9,406
32,476
28,200
4,277

1,269
13,253
11,450
1,803

4,796
62,711
52,439
10,271

1,215
37,245
31,595
5,650

2,262
37,653
32,240
5,413

14,698

14,381

5,621

12

9

153

5,447

9,077

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

100 Federal funds purchased and securities sold under
agreements to repurchase
101
Commercial banks
102
Brokers and dealers
103
Others
104 Other liabilities for borrowed money 3
105 Mortgage indebtedness 3
106 Bank acceptances outstanding
107 Other liabilities
108 Total liabilities
109 Subordinated notes and debentures
110 Equity capital
111
Preferred stock
112
Common stock
113
Surplus
114
Undivided profits
115
Other capital reserves
116 Total liabilities and equity capital
MEMO ITEMS:

129 Number of banks

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




273
16

*

9

NOTE.—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
p r e v i o u s BULLETINS.

A20

DomesticNonfinancialStatistics • December 1978

1.27 ALL LARGE WEEKLY REPORTING COMMERCIAL BANKS Assets and Liabilities
Millions of dollars, Wednesday figures
1978

Account

1 Total loans and investments
Loans:
Federal funds sold1
To commercial banks
To brokers and dealers involving—
U.S. Treasury securities
Other securities
To others

2
3
4
5
6
7
8
9

Other, gross
Commercial and industrial
Agricultural
For purchasing or carrying securities:
To brokers and dealers:
U.S. Treasury securities
Other securities
To others:
U.S. Treasury securities
Other securities
To nonbank financial institutions:
Personal and sales finance cos., etc
Other
Real estate
To commercial banks:
Domestic
Foreign
Consumer instalment
Foreign govts., official institutions, etc.
All other loans
LESS: Loan loss reserve and unearned income
on loans
Other loans, net

10
11
12
13
14
15
16
17
18
19
20
21
22
23

32
33

Investments:
U.S. Treasury securities
Bills
Notes and bonds, by maturity:
Within 1 year
1 to 5 years
After 5 years
Other securities
Obligations of States and political
subdivisions:
Tax warrants, short-term notes, and
bills
All other
Other bonds, corporate stocks, and
securities:
Certificates of participation 2
All other, including corporate stocks

34
35
36
37
38
39

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

24
25
26
27
28
29
30
31

40 Total assets/total liabilities
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56

Oct. 4

Oct. 11

Oct. 18

Oct. 25

Nov.

Nov. 8 p

Nov. 15 p Nov. 22p Nov. 29p

481,817

481,185

480,249

481,573

486,354

494,685

492,405

490,818

490,433

25,582
19,075

24,891
20,111

23,974
18,100

25,119
19,714

24,647
18,200

31,524
24,306

26,884
20,013

26,524
19,912

25,939
21,031

3,844
582
2,081

2,238
629
1,913

3,214
560
2,100

2,433
512
2,460

2,894
748
2,805

4,219
722
2,211

3,824
IIS
2,269

3,609
851
2,152

3,159
790
1,959

354,804
137,791
5,360

354,917
138,434
5,398

355,595
138,295
5,421

356,015
138,776
5,420

361,524
139,878
5,402

362,924
140,317
5,370

363,934
140,728
5,399

363,449
140,536
5,352

363,216
140,490
5,340

1,436
9,211

715
8,718

1,317
8,664

863
8,464

1,133
9,233

1,641
8,429

1,716
8,172

1,292
7,595

850
7,448

109
2,577

108
2,574

109
2,571

110
2,575

109
2,573

2,592

109
2,598

2,582

110
2,565

8,209
15,960
86,243

8,421
16,002
86,617

8,545
15,914
87,063

8,254
15,609
87,302

8,872
15,820
87,588

8,752
15,888
87,801

8,780
15,748
88,367

8,447
15,601
88,724

8,493
15,596
88,899

2,723
6,619
54,207
1,768
22,591

2,647
6,650
54,341
1,800
22,492

2,323
6,611
54,526
1,826
22,410

2,477
6,797
54,696
2,016
22,656

2,674
7,860
54,991
1,964
23,427

3,115
8,554
55,092
2,054
23,208

2,796
8,352
55,549
2,117
23,503

2,908
8,498
55,781
2,118
23,904

3,150
8,399
56,079
2,184
23,613

10,746
344,058

10,860
344,057

10,896
344,699

10,956
345,059

10,993
350,531

11,066
351,858

11,134
352,800

11,207
352,242

11,220
351,996

43,046
4,331

42,369
3,543

41,916
3,641

41,724
3,446

41,484
3,328

41,330
3,252

42,421
3,072

41,637
3,215

41,352
3,136

6,936
26,020
5,759
69,131

7,047
25,881
5,898
69,868

7,129
25,408
5,738
69,660

7,212
25,351
5,715
69,671

7,175
25,502
5,479
69,692

7,345
25,272
5,461
69,973

7,314
25,859
6,176
70,300

7,472
24,979
5,971
70,415

7,640
24,685
5,891
70,146

6,625
45,673

6,729
45,880

6,704
45,754

6,562
45,797

6,523
45,686

6,480
46,030

6,599
46,245

6,411
46,350

6,279
46,337

2,920
13,913

2,938
14,321

2,940
14,262

3,012
14,300

2,897
14,586

2,882
14,581

2,925
14,531

2,876
14,778

2,942
14,588

48,432
23,644
6,043
15,349
3,278
64,400

47,996
25,097
6,740
15,406
3,346
65,178

45,848
19,998
6,807
15,493
3,445
65,436

45,104
26,853
6,956
14,035
3,509
64,670

50,659
22,670
6,552
16,081
3,490
66,225

49,019
20,505
6,483
18,047
3,482
68,840

51,483
21,370
6,814
15,588
3,453
69,566

49,433
23,604
6,549
16,063
3,515
69,610

46,892
24,754
7,723
15,519
3,499
68,493

642,963

644,948

637,276

642,700

652,031

661,061

660,679

659,592

657,313

199,048
144,463
5,558
1,309

195,278
140,863
5,745
2,327

192,444
135,804
5,597
4,857

201,238
142,471
6,709
1,303

204,664
141,833
5,559
1,037

203,106
146,071
6,674
1,559

193,776
140,360
5,879
978

191,843
138,758
5,666
970

Deposits:
Demand deposits
198,648
Individuals, partnerships, and corporations. 139,241
States and political subdivisions
5,695
U.S. Government
3,760
Domestic interbank:
31,243
Commercial
1,071
Mutual savings
Foreign:
1,723
Governments, official institutions, e t c . . . .
6,565
Commerial banks
9,350
Certified and officers' checks
272,501
Time and savings deposits3
92,091
Savings 4
180,410
Time:
139,479
Individuals, partnerships, and corps
26,158
States and political subdivisions
6,736
Domestic interbank
6,366
Foreign govts., official institutions, e t c . . .

31,242
973

29,982
872

30,108
824

31,091
955

38,541
953

31,054
873

30,196
773

29,769
711

1,143
7,131
7,229
271,331
91,838
179,493
138,909
26,161
6,354
6,404

1,255
6,829
7,405
272,376
91,668
180,708
139,857
26,444
6,340
6,408

1,342
6,323
7,589
274,903
91,415
183,488
141,814
26,728
6,704
6,586

1,606
6,838
10,265
276,532
90,808
185,724
143,870
26,516
7,134
6,503

1,314
7,421
8,006
277,972
90,942
187,030
144,793
26,794
7,191
6,589

1,402
6,934
8,539
279,234
90,495
188,739
146,354
26,626
7,437
6,623

1,297
6,740
7,553
281,054
90,276
190,778
147,863
27,048
7,525
6,646

1,354
6,463
8,152
280,968
90,079
190,889
148,280
26,782
7,646
6,484

82,175

86,103

79,643

84,438

81,815

83,824

81,344

84,770

84,881

1,090
6,737
34,698

282
6,859
34,133

1,193
7,248
34,436

1,062
7,476
35,086

1,123
8,136
35,666

470
10,059
36,478

945
10,736
37,801

594
14,194
37,663

795
12,726
38,466

47,114

47,192

47,102

47,291

47,521

47,594

47,513

47,541

47,634

57 Federal funds purchased, etc.5
Borrowings from:
58
Federal Reserve Banks
59
Others
60 Other liabilities, etc. 6
61 Total equity capital and
subordinated
notes/debentures 7
1
2
3

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




5
6

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

Weekly Reporting

Banks

All

1.28 LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY Assets and Liabilities
Millions of dollars, Wednesday figures
1978

Account

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

Loans:
Federal funds sold1
To commercial banks
To brokers and dealers involving—
U.S. Treasury securities
Other securities
To others
Other gross
Commercial and industrial
Agricultural
For purchasing or carrying securities:
To brokers and dealers:
U.S. Treasury securities
Other securities
To others:
U.S. Treasury securities
Other securities
To nonbank financial institutions:
Personal and sales finance cos., etc
Other
Real estate
To commercial banks:
Domestic
Foreign
Consumer instalment
Foreign govts, official institutions, etc
All other loans
LESS: Loan loss reserve and unearned income
on loans
Other loans, net

32
33

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

34
35
36
37
38
39

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

24
25
26
27
28
29
30
31

40 Total assets/total liabilities
Deposits :
Demand deposits
Individuals, partnerships, and corporations
States and political subdivisions
U.S. Government
Domestic interbank:
Commercial
Mutual savings
,
Foreign:
Governments, official institutions, e t c . . . .
Commercial banks
Certified and officers' checks
Time and savings deposits3
Savings 4
Time
Individuals, partnerships and corps
States and political subdivisions
Domestic interbank
Foreign govts., official institutions, etc...

41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56

57 Federal funds purchased, etc.5
Borrowings from:
58
Federal Reserve Banks
59
Others
60 Other liabilities, etc. 6
61 Total equity capital
and subordinated notes/
debentures7
1
2
3

Oct. 4

Oct. 11

Oct. 18

Oct. 25

Nov. If

Nov. 8 p

Nov. 15P Nov. 22p Nov. 29*

98,005

96,646

96,714

97,288

99,672

101,323

100,781

100,092

99,600

4,439
2,364

3,886
2,404

4,024
2,354

4,839
2,725

4,843
2,265

6,131
3,949

5,101
2,736

5,946
3,835

6,351
4,511

1,542
4
529

965
4
513

1,078
4
588

1,089
4
1,021

1,374
6
1,198

1,479
10
693

1,788
14
563

1,647
9
455

1,464
2
374

75,380
37,282
155

74,606
37,503
157

74,859
37,333
164

74,927
37,856
170

77,294
38,234
181

77,765
38,390
185

77,557
38,547
189

76,466
38,269
189

75,966
38,114
189

1,297
4,846

590
4,516

1,203
4,575

766
4,446

1,025
4,683

1,407
4,025

1,543
4,133

1,180
3,756

759
3,739

26
358

27
356

28
351

28
361

27
354

27
340

27
340

27
338

27
333

2,857
4,864
9,708

2,993
4,861
9,767

3,103
4,810
9,808

2,919
4,714
9,851

3,301
4,778
9,856

3,170
4,757
9,875

3,123
4,530
9,921

2,868
4,441
9,982

2,966
4,506
9,964

1,024
3,168
4,954
441
4,400

882
3,149
4,989
430
4,386

691
3,110
5,005
429
4,249

720
3,148
5,026
592
4,330

851
3,803
5,042
529
4,630

1,212
4,226
5,059
527
4,565

941
3,829
5,250
550
4,634

877
3,931
5,285
582
4,741

1,077
3,783
5,293
644
4,572

1,843
73,537

1,858
72,748

1,864
72,995

1,880
73,047

1,910
75,384

1,911
75,854

1,932
75,625

1,943
74,523

1,953
74,013

9,146
1,429

8,738
982

8,584
1,141

8,315
848

8,276
781

8,261
751

8,934
111

8,436
875

8,283
797

534
5,937
1,246
10,883

507
5,915
1,334
11,274

627
5,597
1,219
11,111

636
5,695
1,136
11,087

741
5,749
1,005
11,169

835
5,721
954
11,077

844
5,819
1,494
11,121

849
5,315
1,397
11,187

933
5,176
1,377
10,953

1,807
6,887

1,992
7,000

1,963
6,866

1,845
6,933

1,829
6,937

1,677
6,994

1,783
6,992

1,722
7,004

1,630
6,998

527
1,662

529
1,753

527
1,755

521
1,788

520
1,883

521
1,885

521
1,825

520
1,941

518
1,807

15,158
6,921
921
8,220
1,740
25,015

14,254
8,156
1,010
7,371
1,760
25,962

14,568
3,715
1,014
8,353
1,771
26,412

15,781
6,586
1,050
7,677
1,783
25,486

16,825
4,698
1,014
8,990
1,819
25,933

17,060
8,374
1,029
10,621
1,843
27,322

16,251
5,890
1,068
8,051
1,852
27,414

15,545
5,052
981
8,753
1,853
28,768

15,911
5,533
1,137
8,105
1,852
27,524

155,980

155,159

152,547

155,651

158,951

167,572

161,307

161,044

159,662

55,113
27,652
501
1,127

53,862
28,713
524
128

54,377
28,439
484
368

54,205
27,172
536
699

56,927
28,727
747
82

63,258
29,381
438
114

55,780
29,758
628
158

54,016
28,570
474
75

53,398
27,828
424
77

14,197
599

14,716
524

15,145
458

16,157
444

15,110
469

22,733
515

14,634
448

15,319
375

15,209
345

1,502
4,754
4,781
46,097
9,585
36,512
27,915
1,909
2,227
3,632

928
5,384
2,945
45,919
9,563
36,356
27,580
1,964
2,275
3,713

1,020
5,127
3,336
46,466
9,566
36,900
27,926
2,000
2,340
3,807

1,030
4,588
3,579
46,808
9,485
37,323
28,101
2,035
2,474
3,887

1,346
4,899
5,547
48,108
9,392
38,716
29,372
2,061
2,642
3,822

1,052
5,393
3,632
48,518
9,390
39,128
29,586
2,099
2,788
3,848

1,173
5,170
3,811
49,828
9,343
40,485
30,478
2,122
3,094
3,942

1,068
5,005
3,130
50,290
9,323
40,967
30,853
2,138
3,133
4,022

1,088
4,607
3,820
50,161
9,296
40,865
30,864
2,102
3,149
3,925

22,433

23,629

19,110

22,072

20,149

22,093

20,180

21,391

21,381

360
3,905
14,978

480
4,329
15,537

0
4,771
15,507

716
5,039
16,332

0
5,694
16,215

189
5,112
15,973

13,323

13,421

13,425 |

13,432

13,438

13,448

*

471
3,507
15,059

3,563
14,860

425
3,'776
15,097

13,300

13,^26

13,296

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




5
6

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

A22

DomesticNonfinancialStatistics • December 1978

1.29 LARGE WEEKLY REPORTING COMMERCIAL BANKS OUTSIDE NEW YORK CITY
Assets and Liabilities
Millions of dollars, Wednesday figures
1978
Account

1 Total loans and investments.
Loans:
Federal funds sold1
To commercial banks
To brokers and dealers involving—
U.S. Treasury securities
Other securities
To others
Other, gross
Commercial and industrial
Agricultural
For purchasing or carrying securities:
To brokers and dealers:
U.S. Treasury securities
Other securities
To others:
U.S. Treasury securities
Other securities
To nonbank financial institutions:
Personal and sales finance cos., etc
Other
Real estate
To commercial banks:
Domestic
Foreign
Consumer instalment
Foreign govts., official institutions, etc
All other loans
LESS: Loan reserve and unearned income on
loans
Other loans, net

10
11
12
13
14
15
16
17
18
19
20
21

22
23

Investments:
U.S. Treasury securities
Bills
Notes and bonds, by maturity:
Within 1 year
1 to 5 years
After 5 years
Other securities
Obligations of States and political subdivisions :
Tax warrants, short-term notes, and bills
All other
Other bonds, corporate stocks, and
securities:
Certificates of participation2
All other, including corporate s t o c k s . . .
34
35
36
37
38
39

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

40 Total assets/total liabilities.
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56

Oct. 4

Oct. 11

Oct. 18

Oct. 25

Nov. If

Nov. 8?

Nov. 15^ Nov. 22? Nov. 29*>

383,812

384,539

383,535

384,285

386,682

393,362

391,624

390,726

390,833

21,143
16,711

21,005
17,707

19,950
15,746

20,280
16,989

19,804
15,935

25,393
20,357

21,783
17,277

20,578
16,077

20,588
16,520

2,302
578
1,552

1,273
625
1,400

2,136
556
1,512

1,344
508
1,439

1,520
742
1,607

2,740
712
1,584

2,036
764
1,706

1,962
842
1,697

1,695
788
1,585

279,424
100,509
5,205

280,311
100,931
5,241

280,736
100,962
5,257

281,088
100,920
5,250

284,230
101,644
5,221

285,159
101,927
5,185

286,377
102,181
5,210

286,983
102,267
5,163

287,250
102,376
5,151

139
4,365

125
4,202

114
4,089

97
4,018

108
4,550

234
4,404

173
4,039

112
3,839

91
3,709

83
2,219

81
2,218

81
2,220

82
2,214

82
2,219

84
2,252

82
2,258

84
2,244

83
2,232

5,352
11,096
76,535

5,428
11,141
76,850

5,442
11,104
77,255

5,335
10,895
77,451

5,571
11,042
77,732

5,582
11,131
77,926

5,657
11,218
78,446

5,579
11,160
78,742

5,527
11,090
78,935

1,699
3,451
49,253
1,327
18,191

1,765
3,501
49,352
1,370
18,106

1,632
3,501
49,521
1,397
18,161

1,757
3,649
49,670
1,424
18,326

1,823
4,057
49,949
1,435
18,797

1,903
4,328
50,033
1,527
18,643

1,855
4,523
50,299
1,567
18,869

2,031
4,567
50,496
1,536
19,163

2,073
4,616
50,786
1,540
19,041

8,903
270,521

9,002
271,309

9,032
271,704

9,076
272,012

9,083
275,147

9,155
276,004

9,202
277,175

9,264
277,719

9,267
277,983

33,900
2,902

33,631
2,561

33,332
2,500

33,409
2,598

33,208
2,547

33,069
2,501

33,487
2,295

33,201
2,340

33,069
2,339

6,402
20,083
4,513
58,248

6,540
19,966
4,564
58,594

6,502
19,811
4,519
58,549

6,576
19,656
4,579
58,584

6,434
19,753
4,474
58,523

6,510
19,551
4,507
58,896

6,470
20,040
4,682
59,179

6,623
19,664
4,574
59,228

6,707
19,509
4,514
59,193

4,818
38,786

4,131
38,880

4,741
38,888

4,717
38,864

4,694
38,749

4,803
39,036

4,816
39,253

4,689
39,346

4,649
39,339

2,393
12,251

2,409
12,568

2,413
12,507

2,491
12,512

2,377
12,703

2,361
12,696

2,404
12,706

2,356
12,837

2,424
12,781

33,274
16,723
5,122
7,129
1,538
39,385

33,742
16,941
5,730
8,035
1,586
39,216

31,280
16,283
5,793
7,140
1,674
39,024

29,323
20,267
5,906
6,358
1,726
39,184

33,834
17,972
5,538
7,091
1,671
40,292

31,959
12,131
5,454
7,426
1,639
41,51S

35,232
15,480
5,746
7,537
1,601
42,152

33,888
18,552
5,568
7,310
1,662
40,842

30,981
19,221
6,586
7,414
1,647
40,969

486,983

489,789

484,729

487,049

493,080

493,489

499,372

498,548

497,651

143,535
111,589
5,194
2,633

145,186
115,750
5,034
1,181

140,901
112,424
5,261
1,959

138,239
108,632
5,061
4,158

144,311
113,744
5,962
1,221

141,406
112,452
5,121
923

147,326
116,313
6,046
1,401

139,760
111,790
5,405
903

138,445
110,930
5,242
893

Deposits:
Demand deposits
Individuals, partnerships, and corporations,,
States and political subdivisions
U.S. Government
Domestic interbank:
Commercial
Mutual savings
Foreign:
Governments, official institutions, e t c —
Commercial banks
Certified and officers' checks
Time and savings
deposits3
Savings 4
Time
Individuals, partnerships, and corps.
States and political subdivisions
Domestic interbank
Foreign govts., official institutions, etc..

17,046
472

16,526
449

14,837
414

13,951
380

15,981
486

15,808
438

16,420
425

14,877
398

14,560
366

221
1,811
4,569
226,404
82,506
143,898
111,564
24,249
4,509
2,734

215
1,747
4,284
225,412
82,275
143,137
111,329
24,197
4,079
2,691

235
1,702
4,069
225,910
82,102
143,808
111,931
24,444
4,000
2,601

312
1,735
4,010
228,095
81,930
146,165
113,713
24,693
4,230
2,699

260
1,939
4,718
228,424
81,416
147,008
114,498
24,455
4,492
2,681

262
2,028
4,374
229,454
81,552
147,902
115,207
24,695
4,403
2,741

229
1,764
4,728
229,406
81,152
148,254
115,876
24,504
4,343
2,681

229
1,735
4,423
230,764
80,953
149,811
117,010
24,910
4,392
2,624

266
1,856
4,332
230,807
80,183
150,024
117,416
24,680
4,497
2,559

.

59,742

62,474

60,533

62,366

61,666

61,731

61,164

63,379

63,500

619
3,230
19,639

282
3,296
19,273

768
3,472
19,339

702
3,571
20,108

643
3,807
20,129

470
5,288
20,971

229
5,697
21,469

594
8,500
21,448

606
7,614
22,493

33,814

33,866

33,806

33,968

34,100

34,169

34,081

34,103

34,186

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

1 Includes securities purchased under agreements to resell.
Federal agencies only.
3 Includes time deposits of U.S. Govt, and of foreign banks, which
are4 not shown separately.
For amounts of these deposits by ownership categories, see Table 1.30.
2




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

Weekly Reporting

Banks

A23

1.30 LARGE WEEKLY REPORTING COMMERCIAL BANKS Balance Sheet Memoranda
Millions of dollars, Wednesday figures
1978
Account
Oct. 4

Oct. 11

Oct. 18

Oct. 25

Nov. If

Nov. 8*>

Nov. 15 p

Nov. 29*>

1
2
3

Total loans (gross) and investments adjusted 1
Large Banks
New York City banks
Banks outside New York City

470,765
96,460
374,305

469,287
95,218
374,069

470,722
95,533
375,189

470,338
95,723
374,615

476,473
98,466
378,007

478,330
98,073
380,257

480,730
99,036
381,694

479,205
97,323
381,882

477,472
95,965
381,507

4
5
6

Total loans (gross), adjusted
Large banks
New York City banks
Banks outside New York City

358,588
76,431
282,157

357,050
75,206
281,844

359,146
75,838
283,308

358,943
76,321
282,622

365,297
79,021
286,276

367,027
78,735
288,292

368,009
78,981
289,028

367,153
77,700
289,453

365,974
76,729
289,245

7
8
9

Demand deposits, adjusted 2
Large Banks
New York City banks
Banks outside New York City

115,213
24,631
90,582

118,501
24,764
93,737

117,121
24,296
92,825

112,375
21,568
90,807

118,185
24,910
93,275

116,067
23,351
92,716

119,010
24,737
94,273

113,169
23,077
90,092

114,212
22,201
92,011

90,230
24,818
65,412

89,329
24,738
64,591

89,987
25,149
64,838

92,248
25,605
66,643

94,306
26,956
67,350

95,430
27,382
68,048

96,673
28,606
68,067

97,589
29,003
68,586

97,703
28,916
68,787

63,916
17,706
46,210

63,293
17,491
45,802

63,876
17,730
46,146

65,443
17,936
47,507

67,286
19,137
48,149

68,117
19,389
48,728

69,148
20,190
48,958

69,987
20,486
49,501

70,235
20,479
49,756

26,314
7,112
19,202

26,036
7,247
18,789

26,111
7,419
18,692

26,805
7,669
19,136

27,020
7,819
19,201

27,313
7,993
19,320

27,525
8,416
19,109

27,602
8,517
19,085

27,468
8,437
19,031

34,786
6,672
28,114

34,653
6,597
28,056

35,084
6,703
28,381

35,411
6,720
28,691

35,748
6,948
28,800

36,073
7,025
29,048

36,132
6,963
29,169

36,884
7,030
29,854

36,732
7,037
29,695

21,057
5,350
15,707

21,059
5,266
15,793

21,258
5,329
15,929

21,391
5,342
16,049

21,830
5,602
16,228

21,940
5,584
16,356

22,045
5,460
16,585

22,399
5,512
16,887

22,465
5,551
16,914

13,729
1,322
12,407

13,594
1,331
12,263

13,826
1,374
12,452

14,020
1,378
12,642

13,918
1,346
12,572

14,133
1,441
12,692

14,087
1,503
12,584

14,485
1,518
12,967

14,267
1,486
12,781

85,750
8,894
76,856

85,470
8,863
76,607

85,319
8,853
76,466

84,937
8,801
76,130

84,581
8,741
75,840

84,683
8,737
75,946

84,301
8,719
75,582

84,140
8,704
75,436

83,925
8,669
75,256

5,121
481
4,640

5,124
All
4,647

5,102
473
4,629

5,163
470
4,693

5,111
462
4,649

5,135
457
4,678

5,105
449
4,656

5,055
440
4,615

5,064
448
4,616

1,197
194
1,003

1,225
212
1,013

1,223
223
1,000

1,297
197
1,100

1,095
180
915

1,096

916

180

1,065
166
899

1,058
168
890

1,066
167
899

23

19

24
17
7

18
11

21
9

28
16
12

24
9
15

23

12

12

24
12
12

10
11
12
13
14
15
16
17
18

19
20
21
22
23
24
25
26
27

Large negotiable time CD's included in time and
savings deposits 3
Total:
Large banks
New York City
Banks outside New York City
Issued to IPC's:
Large banks
New York City Banks
Banks outside New York City
Issued to others:
Large banks
New York City banks
Banks outside New York City
All other large time deposits 4
Total:
Large banks
New York City banks
Banks outside New York City
Issued to IPC's:
Large banks
New York City banks
Banks outside New York City
Issued to others:
Large banks
New York City banks
Banks outside New York City

37
38
39

Savings deposits, by ownership category
Individuals and nonprofit organizations:
Large banks
New York City banks
Banks outside New York City
Partnerships and corporations for profit: 5
Large banks
New York City banks
Banks outside New York City
Domestic governmental units:
Large banks
New York City banks
Banks outside New York City
All other:6
Large banks
New York City banks
Banks outside New York City

40
41
42

Gross liabilities of banks to their foreign branches
Large banks
New York City banks
Banks outside New York City

6,437
3,613
2,824

6,470
3,312
3,158

6,323
2,997
3,326

7,674
4,027
3,647

8,561
5,253
3,308

8,037
4,162
3,275

9,428
6,220
3,208

7,732
3,984
3,748

8,973
4,440
4,533

43
44
45

Loans sold outright to selected institutions by all
large banks 7
Commercial and industrial 8
Real estate 8
All other 8

1,961
287
1,748

1,972
288
1,736

2,086
283
1,648

,886
288
,678

1,911
291
1,592

1,898
295
1,563

1,846
296
1,540

1,796
305
1,569

1,859
297
1,564

28
29
30
31
32
33
34
35
36

16

11

7

1 Exclusive of loans and Federal funds transactions with domestic
commercial banks.
2
All demand deposits except U.S. Govt, and domestic commercial
banks, less cash items in process of collection.
3 Certificates of deposit (CD's) issued in denominations of $100,000 or
more.
4
All other time deposits issued in denominations of $100,000 or more
not included in large negotiable CD's.




7

5
Other than commercial banks.
6 Domestic and foreign commercial banks, and official international
organizations.
7
To bank's own foreign branches, nonconsolidated nonbank affiliates of the bank, the bank's holding company (if not a bank), and
nonconsolidated nonbank subsidiaries of the holding company.
8
Data revised beginning July 7, 1977, due to reclassifications at one
large bank.

A24

1.31

DomesticNonfinancialStatistics • December 1978

LARGE WEEKLY REPORTING COMMERCIAL BANKS Commercial and Industrial Loans
Millions of dollars
Outstanding
Industry classification

Net change during—

1978
Nov. 1

Nov. 8

Nov. 15

1978
Nov. 22

Nov. 29 &

Q2

1978
Sept.

Q3

Oct.

Nov.f

Total loans classified2
114,145

114,564

114,760

114,709

114,542

5,384

1,346

1,791

1,813

1,229

Durable goods manufacturing:
Primary metals
Machinery
Transportation equipment
Other fabricated metal products.
Other durable goods

2,688
5,452
2,646
2,431
3,953

2,685
5,438
2,659
2,431
3,994

2,692
5,476
2,650
2,434
3,986

2,677
5,432
2,586
2,425
3,966

2,597
5,464
2,626
2,409
3,985

43
177
66
181
382

-66
-16
-52
69
136

11
64
51
129
102

-68
61
-159
-78
-79

-67
15
38
-35
19

Nondurable goods manufacturing:
Food, liquor, and tobacco
Textiles, apparel, and leather...
Petroleum refining
Chemicals and rubber
Other nondurable goods

4,373
4,224
2,483
3,290
2,475

4,394
4,252
2,546
3,306
2,444

4,412
4,171
2,612
3,295
2,448

4,468
4,080
2,602
3,264
2,470

4,531
3,985
2,569
3,224
2,446

409
565
159
154
61

-101
240
-116
-101
213

2
-56
-45
69
81

186
-110
-47
-173
-47

191
-288
95
-71
13

10,446

10,518

10,648

10,663

10,628

883

172

124

17

34

1,866
9,574
8,865
5,531
1,786
5,463
5,144
14,193

1,899
9,579
8,924
5,493
1,737
5,549
5,116
14,268

1,835
9,584
8,979
5,454
1,782
5,531
5,127
14,331

1,807
9,540
9,020
5,527
1,747
5,600
5,121
14,383

1,789
9,521
8,959
5,513
1,766
5,541
5,116
14,423

-187
458
639
-147
249
38
483
1,134

-323
232
-80
53
68
89
110
520

-22
199
132
157
55
-15
17
413

61
279
636
34
-20
245
'-66
219

-16
70
129
-15
53
197
-39
245

8,387
3,711

8,520
3,579

8,460
3,478

8,429
3,459

8,445
3,573

296
-429

282
-149

6
233

257
210

152
251

5,164

5,233

5,375

5,443

5,432

-230

166

84

455

258

62

-60

-8

18

-1

140,490

6,601

1,333

1,742

1 Total
2
3
4
5
6

12 Mining, including crude petroleum
and natural gas
Trade:
13
Commodity dealers
14
Other wholesale
15
Retail
16 Transportation
17 Communication
18 Other public utilities
19 Construction
20 Services
21 All other domestic loans
22 Bankers acceptances
23 Foreign commercial and industrial
loans
MEMO ITEMS:

24 Commercial paper 1included in total
classified loans
25 Total commercial and industrial
loans of all large weekly reporting banks

139,878

140,317

140,728

140,536

1978
July 26

Aug. 30

Sept. 27

Nov. 29^

Q2 r

2,066

1,714

1978

1978
Oct. 25p

r

Sept.

Q3

Oct.

Nov."

"Term" loans classified3
51,905

52,618

53,019

53,762

54,705

1,820

1,726

401

743

943

27
28
29
30
31

Durable goods manufacturing:
Primary metals
Machinery
Transportation equipment
Other fabricated metal products...
Other durable goods

1,695
2,712
1,439
1,000
1,718

1,710
2,669
1,586
990
1,699

1,672
2,650
1,565
1,007
1,713

1,641
2,768
1,506
1,004
1,717

1,631
2,751
1,492
1,035
1,796

128
17
-69
87
106

-34
74
145
13
35

-38
-19
-21
17
14

-31
118
-59
-3
4

-10
-17
-14
31
79

32
33
34
35
36

Nondurable goods manufacturing:
Food, liquor, and tobacco
Textiles, apparel, and leather
Petroleum refining
Chemicals and rubber
Other nondurable goods

1,691
1,138
1,882
2,418
1,103

1,740
1,133
1,882
2,322
1,156

1,727
1,126
1,846
2,301
1,177

1,862
1,096
1,789
2,109
1,192

1,977
1,046
1,837
2,037
1,205

150
72
74
287
-86

56
4
-101
-111
86

-13
-7
-36
-21
21

135
-30
-57
-192
15

115
-50
48
-72
13

7,660

7,757

7,862

7,852

7,917

661

102

105

-10

65

305
2,372
3,224
3,732
1,102
4,053
2,288
7,104
2,860

-24
187
261
-136
85
-293
47
600
-149

22
185
-43
15
67
318
107
307
393

2
84
-36
21
19
-13
-21
191
97

18
-31
274
-35
-11
113
40
139
85

37
43
159
14
37
93
24
168
62

2,941

-185

86

55

261

118

26 Total

37 Mining, including crude petroleum
and natural gas
Trade:
38
Commodity dealers
39
Other wholesale
40
Retail
41 Transportation
42 Communication
43 Other public utilities
44 Construction
45 Services
46 All other domestic loans
47 Foreign commercial and industrial
loans

233
2,233
2,782
3,678
1,061
3,714
2,177
6,592
2,436

248
2,276
2,827
3,732
1,057
3,860
2,245
6,606
2,616

250
2,360
2,791
3,753
1,076
3,847
2,224
6,797
2,713

268
2,329
3,065
3,718
1,065
3,960
2,264
6,936
2,798

2,543

2,507

2,562

2,823

1
Reported for the last Wednesday of each month.
2 Includes "term" loans, shown below.
3 Outstanding loans with an original maturity of more than 1 year and




all outstanding loans granted under a formal agreement—revolving credit
or standby—on which the original maturity of the commitment was in
excess of 1 year.

Deposits and Commercial

Paper

A25

1.32 GROSS DEMAND DEPOSITS of Individuals, Partnerships, and Corporations
Billions of dollars, estimated daily-average balances
At commercial banks
1977

Type of holder

1 All

holders, individuals,
corporations

partnerships,

1975
Dec.

1976
Dec.

225.0

236.9

19.0
118.8
73.3
2.3
11.7

20.1
125.1
78.0
2.4
11.3

1974
Dec.

and

2 Financial business
5 Foreign
6 Other

1978

Mar.

June

Sept.

Dec.

Mar.

June

Sept.

250.1

242.3

253.8

252.7

274.4

262.5

271.2

278.8

22.3
130.2
82.6
2.7
12.4

21.6
125.1
81.6
2.4
11.6

25.9
129.2
84.1
2.5
12.2

23.7
128.5
86.2
2.5
11.8

25.0
142.9
91.0
2.5
12.9

24.5
131.5
91.8
2.4
12.3

25.7
137.7
92.9
2.4
12.4

25.9
142.5
95.0
2.5
13.1

At weekly reporting banks
1978
1975
Dec.

7 All

9
10
11
12

holders,

individuals,

partnerships,

Nonfinancial business
Consumer
Foreign
Other

and

1976
Dec.

1977
Dec.
Apr.

May

June

July

Aug.

Sept.

Oct.

124.4

128.5

139.1

135.6

134.3

136.9

139.9

137.7

139.7

141.3

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

17.9
70.9
37.6
2.2
7.0

18.1
70.7
36.0
2.4
7.1

19.0
71.9
36.6
2.3
7.1

19.4
73.7
37.1
2.3
7.3

19.4
72.0
36.8
2.4
7.1

18.9
74.1
37.1
2.4
7.3

19.1
75.0
37.5
2.5
7.2

NOTE.—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
BULLETIN, p. 466.

1.33 COMMERCIAL PAPER AND BANKERS ACCEPTANCES OUTSTANDING
Millions of dollars, end of period
1978
Instrument

1975
Dec.

1976
Dec.

1977
Dec.
Apr.

May

June

Aug.

July

Sept.

Oct.

Commercial paper (seasonally adjusted)

Financial companies: 1 2
Dealer-placed paper:
2
Total
3
Bank-related
Directly-placed paper:3
4
Total

48,459

53,025

65,209

70,289

71,213

74,536

74,900

73,960

r

76,988

77,152

6,202
1,762

7,250
1,900

8,871
2,132

9,670
2,078

10,314
2,217

10,327
2,442

10,617
2,633

10,868
2,935

n1,470
2,622

10,921
2,868

31,374
6,892

32,500
5,959

40,496
7,102

44,326
7,995

44,664
9,258

47,315
9,585

46,594
10,030

45,510
9,634

47,791
10,383

48,030
10,925

10,883

13,275

15,842

16,293

16,235

16,894

17,689

17,582

17,727

18,201

Dollar acceptances (not seasonally adjusted)
7 Total
8
9
10
11
12
13
14
15
16

Held by:
Accepting banks
Own bills
Bills bought
F.R. Banks:
Own account
Foreign correspondents
Others
Based on:
Imports into United States
Exports from United States
All other

18,727

22,523

25,654

26,256

26,714

28,289

27,579

28,319

27,952

30,579

7,333
5,899
1,435

10,442
8,769
1,673

10,434
8,915
1,519

7,091
6,117
974

7,286
6,365
921

7,502
6,520
983

7,244
6,345
899

7,048
6,131
917

7,647
6,461
1,186

8,379
7,012
1,366

1,126
293

991
375

954
362

550

679

625

568

633

556

557

9,975

10,715

13,904

18,614

18,749

20,160

19,766

20,638

19,748

21,644

3,726
4,001
11,000

4,992
4,818
12,713

6,532
5,895
13,227

7,108
6,216
12,932

7,027
6,494
13,193

7,578
6,906
13,805

7,415
6,565
13,599

7,885
6,558
13,876

7,957
6,350
13,644

8,575
6,665
15,339

1 Institutions engaged primarily in activities such as, but not limited to,
commercial, savings, and mortgage banking; sales, personal, and mortgage
financing; factoring, finance leasing, and other business lending; insurance
underwriting; and other investment activities.
2 Includes all financial company paper sold by dealers in the open
market.




3 As reported by financial companies that place their paper directly
with investors.
4
Includes public utilities and firms engaged primarily in activities such
as communications, construction, manufacturing, mining, wholesale and
retail trade, transportation, and services.

A26

DomesticNonfinancialStatistics • December 1978

1.34 PRIME RATE CHARGED BY BANKS on Short-term Business Loans
Per cent per annum
Month
Effective date

Rate

1978—Jan. 10.
May

5

26

Effective date
1978—Sept. 15

8%
81/2
8*4

June 16
30

9

Aug. 31.

9%

Oct.
Nov.

28,

9%
9%

13
27,

10
10%

1

10i/2
10%
11
11%

6

17,
24,

Average
rate

Rate
1977—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept

6.25
6.25
6.25
6.25
6.41
6.75
6.75
6.83
7.13
7.52
7.75
7.75

Nov
Dec

1.35 TERMS OF LENDING AT COMMERCIAL BANKS

Month

1978—Jan..
Feb.
Mar.
Apr.
May.
June,
July.
Aug.
Sept.
Oct..
Nov.

Survey of Loans Made, August 7-12, 1978
Size of loan (in thousands of dollars)

Item

All
sizes
1-24

25-49

50-99

100-499

500-999

1,000
and over

Short-term commercial and industrial loans
7,198,593
1,049,321
559,214
638,138
1,899,754
532,767
Amount of loans (thousands of dollars)
Number of loans
187,673
147,855
16,858
10,683
10,445
863
3.0
2.8
3.4
2.4
3.0
3.3
Weighted-average maturity (months).
9.97
10.45
10.19
10.30
10.19
9.93
Weighted-average interest rate (per cent per annum)..
9 . 3 1 - 1 0 . 4 7 9.25-11.65 9 . 3 4 - 1 0 . 5 0 9 . 7 3 - 1 0 . 7 5 9 . 3 8 - 1 0 . 6 4 9.31-10.43
Interquartile range 1
Percentage of amount of loans:
48.3
32.0
36.6
46.5
43.2
57.4
6
With floating rate
38.1
15.2
21.0
27.5
31.2
58.5
7
Made under commitment

1
2
3
4
5

2,519,400
970
3.1
9.47
9.00-9.88
60.1
54.9

Long-term commercial and industrial loans
8
9
10
11
12

Amount of loans (thousands of dollars)
1,417,990
Number of loans
22,251
Weighted-average maturity (months)
45.2
Weighted-average interest rate (per cent per annum)..
10.20
Interquartile range i
9.38-11.00
Percentage of amount of loans:
13
With floating rate
65.5
14
Made under commitment
51.3

293,717
19,735
33.7
10.66
9.89-11.57

355,547
99,274
669,452
2,218
150
148
47.2
57.7
47.4
10.35
9.83
9.96
9.38-11.02 9.25-10.50 9.00-10.48

30.1
25.0

62.3
35.7

55.1
50.6

84.3
71.2

Construction and land development loans
15
16
17
18
19
20
21
22
23
24
25

Amount of loans (thousands of dollars)
1,177,413
228,314
144,262
155,635
381,591
Number of loans
30,901
22,364
4,546
2,278
1,490
Weighted-average maturity (months)
8.4
10.7
9.6
3.8
7.2
Weighted-average interest rate (per cent per annum)..
10.43
10.27
10.66
11.05
10.33
Interquartile range *
9 . 9 5 - 1 1 . 0 2 9.27-10.87 10.00-11.00 10.00-12.73 10.03-10.70
Percentage of amount of loans:
With floating rate
49.3
12.3
13.0
18.3
80.2
Secured by real estate
92.9
85.4
97.1
94.5
97.1
Made under commitment
55.2
49.7
32.7
68.2
43.5
Type of construction: 1 - t o 4-family
42.1
77.2
71.3
64.9
20.2
Multifamily
8.5
1.2
10.0
1.7
7.8
Nonresidential
49.4
21.6
18.8
33.4
71.9
All
sizes

1-9

10-24

25-49

50-99

267,611
223
9.6
10.23
9.27-11.30
74.3
90.3
81.3
14.5
18.8
66.8

100-249

250
and over

Loans to farmers
26
27
28
29
30
31
32
33
34
35

Amount of loans (thousands of dollars)
824,790
Number of loans
63,389
Weighted-average maturity (months)
6.6
Weighted-average interest rate (per cent per annum)..
9.62
Interquartile range i
9.13-10.21
By purpose of loan:
Feeder livestock
9.49
Other livestock
9.47
Other current operating expenses
9.66
Farm machinery and equipment
9.63
Other
9.87

1 Interest rate range that covers the middle 50 per cent of the total
dollar amount of loans made.
2
Fewer than three sample loans.




159,057
45,994
7.5
9.33
8.77-9.73
9.13
9.36
9.27
9.52
9.61

150,908
157,111
10,109
4,942
10.2
6.6
9.33
9.46
8.77-9.73 9.00-10.00
9.11
9.44
9.44
9.53
9.22

9.37
10.03
9.26
9.86
9.67

82,007
92,298
183,409
689
1,338
317
3.9
6.1
5.8
9.51
9.92
10.15
9 . 2 0 - 9 . 8 4 9.25-10.38 9 . 5 4 - 1 0 . 9 7
9.48
8.86
9.81
9.41
9.77

9.60
10.19
9.96

(2>

10.39

9.91
9.76
10.41

(2)

10.28

NOTE.—For more detail, see the Board's 416 (G.14) statistical release,

Securities
1.36 INTEREST RATES

Markets

All

Money and Capital Markets

Averages, per cent per annum
1978, week ending—

1978
Instrument

1975

1976

1977
Aug.

Sept.

Oct.

Nov.

Nov. 4 Nov. 11 Nov. 18 Nov. 25 Dec. 2

Money market rates
1 Federal funds 1

5.82

5.05

5.54

8.04

8.45

8.96

9.76

9.29

9.77

9.68

9.68

9.85

Prime commercial paper 2 ' 3
2
90- to 119-day
3 4- to 6-month

6.26
6.33

5.24
5.35

5.54
5.60

7.83
7.90

8.39
8.44

8.98
9.03

10.14
10.23

9.62
9.68

10.16
10.27

10.28
10.38

10.13
10.22

10.20
10.28

4 Finance company paper, directly placed,
3- to 6-month 3 - 4

6.16

5.22

5.49

7.65

8.18

8.78

9.82

9.26

9.87

9.92

9.90

9.89

5 Prime bankers acceptances, 90-day 3 - 5

6.30

5.19

5.59

7.98

8.54

9.32

10.53

10.46

10.63

10.47

10.40

10.52

6.43

5.26
5.15

5.58
5.52

8.05
7.86

8.61
8.42

9.14
9.17

10.72
10.12

10.10
9.83

10.77
10.00

10.84
10.25

10.59
10.25

10.66
10.25

6.97

5.57

6.05

8.48

9.12

10.12

11.51

11.08

11.44

11.70

11.28

11.66

5.80
6.11
6.30

4.98
5.26
5.52

5.27
5.53
5.71

7.08
7.37
7.73

7.85
7.99
8.01

7.99
8.55
8.45

8.64
9.24
9.20

8.73
9.26
9.17

8.79
9.42
9.32

8.14
9.08
9.08

8.63
9.07
9.12

8.98
9.27
9.29

5.838
6.122

4.989
5.266

5.265
5.510

7.036
7.363

7.836
7.948

8.132
8.493

8.787
9.204

8.454
8.982

9.028
9.419

8.593
9.291

8.696
8.996

9.166
9.330

Large negotiable certificates of deposit
6
7
8 Euro-dollar deposits, 3-month 8

9
10
11
12
13

U.S. Government
securities
Bills: 3 -9
Market yields:
3-month
6-month
1-year
Rates on new issue: 1 0
3-month
6-month

Capital market rates

14
15
16
17
18
19
20
21
22
23

24
25
26

27
28
29
30
31
32
33
34
35

Government notes and bonds
U.S. Treasury
Constant maturities: 11
1-year
2-year
3-year
5-year
7-year
10-year
20-year
30-year
Notes and bonds maturing in — 1 2
3 to 5 years
Over 10 years (long-term)
State and local: 13
Moody's series:
Aaa
Baa
Bond Buyer series 14
Corporate bonds 15
Seasoned issues
All industries
By rating groups:
Aaa
Aa
A
Baa
Aaa utility bonds: 1 6
New issue
Recently offered issues
Dividend/price ratio
Preferred stocks
Common stocks

6.76

5.88

7.49
7.77
7.90
7.99
8.19

6.77
7.18
7.42
7.61
7.86

6.09
6.45
6.69
6.99
7.23
7.42
7.67

8.31
8.37
8.33
8.33
8.38
8.41
8.45
8.47

8.64
8.57
8.41
8.43
8.42
8.42
8.47
8.47

9.14
8.85
8.62
8.61
8.64
8.64
8.69
8.67

10.01
9.42
9.04
8.84
8.80
8.81
8.75
8.75

9.95
9.44
9.12
8.89
8.82
8.82
8.80
8.77

10.16
9.48
9.10
8.86
8.84
8.86
8.80
8.81

9.89
9.31
8.95
8.78
8.76
8.77
8.72
8.72

9.92
9.35
8.96
8.81
8.78
8.78
8.72
8.73

10.11
9.56
9.16
8.92
8.88
8.85
8.78
8.78

7.55
6.98

6.94
6.78

6.85
7.06

8.31
7.87

8.38
7.82

8.61
8.07

8.97
8.16

9.05
8.19

9.04
8.21

8.93
8.12

8.87
8.13

9.01
8.21

6.42
7.62
7.05

5.66
7.49
6.64

5.20
6.12
5.68

5.56
6.54
6.12

5.53
6.63
6.09

5.53
6.18
6.13

5.59
6.65
6.19

5.70
6.50
6.22

5.65
6.70
6.17

5.50
6.60
6.11

5.55
6.65
6.16

5.55
6.80
6.29

9.57

9.01

8.43

9.08

9.08

9.20

9.40

9.39

9.42

9.40

9.38

9.39

8.83
9.17
9.65
10.61

8.43
8.75
9.09
9.75

8.02
8.24
8.49
8.97

8.69
8.96
9.18
9.48

8.78
8.96
9.11
9.47

8.89
9.07
9.26
9.59

9.03
9.24
9.48
9.83

9.04
9.24
9.46
9.79

9.06
9.27
9.50
9.82

9.02
9.26
9.49
9.83

9.00
9.22
9.46
9.82

9.04
9.22
9.45
9.85

9.40
9.41

8.48
8.49

8.19
8.19

8.82
8.91

8.86
8.86

9.17
9.13

9.27
9.27

9.25
9.28

9.30
9.30

9.25
9.24

9.25

9.30
9.29

8.38
4.31

7.97
3.77

7.60
4.56

8.26
4.93

8.24
4.97

8.29
5.11

8.43
5.45

8.39
5.38

8.42
5.44

8.57
5.54

8.38
5.42

8.41
5.49

1 Weekly figures are 7-day averages of daily effective rates for the week
ending Wednesday; the daily effective rate is an average of the rates on
a given day weighted by the volume of transactions at these rates.
2
Beginning Nov. 1977, unweighted average of offering rates quoted
by five dealers. Previously, most representative rate quoted by those
dealers.
3
Yields are quoted on a bank-discount basis.
4
Averages of the most representative daily offering rates published by
finance companies for varying maturities in this range.
5 Average of the midpoint of the range of daily dealer closing rates
offered for domestic issues.
6
Weekly figures (week ending Wednesday) are 7-day averages of the
daily midpoints as determined from the range of offering rates; monthly
figures are averages of total days in the month. Beginning Apr. 5, 1978,
weekly figures are simple averages of offering rates.
7 Posted rates, which are the annual interest rates most often quoted
on new offerings of negotiable CD's in denominations of $100,000 or
more by large New York City banks. Rates prior to 1976 not available.
Weekly figures are for Wednesday dates.
8
Averages of daily quotations for the week ending Wednesday.




9
Except for new bill issues, yields are computed from daily closing
bid1 0prices.
Rates are recorded in the week in which bills are issued.
11
Yields on the more actively traded issues adjusted to constant
maturities by the U.S. Treasury, based on daily closing bid prices.
12
Unweighted averages for all outstanding notes and bonds in maturity
ranges shown, based on daily closing bid prices. "Long-term" includes
all bonds neither due nor callable in less than 10 years, including a number of very low yielding "flower" bonds.
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 close-of-business quotations.

A28

DomesticNonfinancialStatistics • December 1978

1.37 STOCK MARKET

Selected Statistics
1978

Indicator

1975

1976

1977

May

June

July

Aug.

Sept.

Oct.

Nov.

56.40
61.60
46.70
39.44
60.42

52.74
57.50
41.80
37.88
54.95

Prices and trading (averages of daily figures)
Common stock prices
45.73
51.88
30.73
31.45
46.62

54.45
60.44
39.57
36.97
52.94

53.67
57.84
41.07
40.91
55.23

54.49
59.14
44.21
39.47
57.95

6 Standard & Poor's Corporation (1941-43 = 1 0 ) 1 . .

85.17

102.01

98.18

97.41

7 American Stock Exchange (Aug. 31,1973 = 100).

83.15

101.63

116.18

142.26

18,568
2,150

21,189
2,565

20,936
2,514

35,261
4,869

30,514
4,220

1 New York Stock Exchange (Dec. 31,1965 = 50).
4
5

8
9

Utility
Finance

Volume of trading (thousands of shares) 2
New York Stock Exchange
American Stock Exchange

54.83
59.63
44.19
39.41
58.31

54.61
59.35
44.74
39.28
57.97

58.53
64.07
49.45
40.20
63.28

97.66

97.19

103.92

103.86

100.58

94.71

147.64

149.87

162.52

170.95

160.14

144.17

27,074
3,496

37,603
5,526

33,612
5,740

31,020
4,544

24,505
3,304

58.58
64.23
50.19
39.82
63.22

Customer financing (end-of-period balances, in millions of dollars)
10 Regulated margin credit at brokers/dealers 3
11
Margin stock 4
12
Convertible bonds
13
Subscription issues

5,540
5,390
147
3

8,166
7,960
204
2

9,993
9,740
250
3

10,910
10,660
245
1

11,332
11,090
242

11,438
11,190
247

11,984
11,740
243

12,626
12,400
225
1

12,307
12,090
216
1

MEMO: Free credit balances at brokers 6
Margin-account
Cash-account

475
1,525

585
1,855

640
2,060

755
2,395

700
2,300

710
2,295

795
2,555

825
2,655

2,464
885

14
15

Margin-account debt at brokers (percentage distribution, end of period)
16 Total
17
18
19
20
21
22

By equity class (in per cent): 7
Under 40
40-49
50-59
60-69
70-79
80 or more

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

24.0
28.8
22.3
11.6
6.9
5.3

12.0
23.0
35.0
15.0
8.7
6.0

18.0
36.0
23.0

15.0
33.0
26.0
13.0
7.0
6.0

16.0
34.0
26.0
12.0
7.0
5.0

13.0
34.0
25.0
14.0
8.0
6.0

12.0
34.0
23.0
16.0
9.0
6.0

15.0
36.0
23.0
13.0
7.0
6.0

47.0
20.0
15.0
8.0
5.0
5.0

11.0
6.0
5.0

Special miscellaneous-account balances at brokers (end of period)
23 Total balances (millions of dollars)«...
Distribution by equity status (per cent)
24
Net credit status
Debit status, equity o f —
25
60 per cent or more
26
Less than 60 per cent

7,290

8,776

9,910

10,516

43.8

41.3

43.4

42.6

40.8
15.4

47.8
10.9

44.9
11.7

46.0
11.4

t 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
Based on trading for a 5 - h o u r day.
3
Margin credit includes all credit extended to purchase or carry
stocks or related equity instruments and secured at least in part by stock.
Credit extended is end-of-month data for member firms of the New York
Stock Exchange.
In addition to assigning a current loan value to margin stock generally,
Regulations T and U permit special loan values for convertible bonds
and stock acquired through exercise of subscription rights.
4
A distribution of this total by equity class is shown on lines 23-28.




5 Nonmargin stocks are those not listed on a national securities exchange and not included on the Federal Reserve System's list of over-thecounter margin stocks. At brokers, such stocks have no loan value.
6
Free credit balances are in accounts with no unfulfilled commitments
to the brokers and are subject to withdrawal by customers on demand.
7
Each customer's equity in his collateral (market value of collateral
less net debit balance) is expressed as a percentage of current collateral
values.
8 Balances that may be used by customers as the margin deposit required for additional purchases. Balances may arise as transfers based
on loan values of other collateral in the customer's margin account or
deposits of cash (usually sales proceeds) occur.
NOTE.—For table on "Margin Requirements" see p. A-10, Table 1.161.

Thrift Institutions

A29

1.38 SAVINGS INSTITUTIONS Selected Assets and Liabilities
Millions of dollars, end of period
1978
1975

1976

1977

Feb.

Account

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.*

Savings and loan associations 9
1 Assets

338,233

391,907

459,241

469,685

475,281

480,947

487,052

491,576

498,301

504,298

508,977

515,216

387,591

392,428

397,284

402,305

407,965

411,956

416,677

420,971

425,093

44,188
43,433

43,987
44,019

45,621
44,502

2 Mortgages
3 Cash and investment
securities1
4 Other

278,590

323,005

381,163

30,853
28,790

35,724
33,178

39,150
38,928

41,599
40,495

41,823
41,030

41,853
41,810

42,444
42,303

41,505
42,106

43,627
42,718

5 Liabilities and net worth

338,233

391,907

459,241

469,685

475,281

480,947

487,052

491,576

498,301

504,298

508,977

515,216

285,743

335,912

386,800

391,840

398,992

399,550

401,930

408,586

411,660

413,972

420,405

19,083

27,840

28,714

29,323

31,904

32,759

34,270

35,730

422,858

20,634

37,219

38,595

39,920

17,524
3,110
5,128
6,949

15,708
3,375
6,840
8,074

19,945
7,895
9,911
9,506

20,602
8,112
9,902
13,462

21,030
8,293
10,414
10,518

22,692
9,212
10,937
12,186

23,323
9,436
11,386
14,239

24,875
9,395
11,632
10,046

26,151
9,579
11,540
11,972

27,363
9,856
11,422
13,906

28,632
9,963
11,222
10,676

29,506
10,414
11,183
12,834

12 Net worth 2

19,779

21,998

25,184

25,767

26,034

26,370

26,738

27,042

27,399

27,779

28,079

28,421

13 MEMO : Mortgage loan commitments outstandings..

10,673

14,826

19,875

20,614

22,308

23,398

23,939

22,927

22,393

22,047

21,648

21,337

6
7
8
9
10
11

Savings capital
Borrowed money
FHLBB
Other
Loans in process
Other

Mutual savings banks 1 0
14 Assets
15
16
17
18
19
20
21

121,056 134,812 147,287 149,528 150,962 151,383 152,202 153,175 154,315 155,210 156,110

Loans:
77,221
Mortgage
4,023
Other
Securities:
4,740
U.S. Government
State and local government. 1,545
27,992
Corporate and other 4
2,330
Cash
3,205
Other assets

81,630
5,183

88,195
6,210

89,247
7,398

89,800
7,782

90,346
7,422

90,915
7,907

91,555
7,771

92,230
8,207

92,866
8,379

93,403
8,418

5,840
2,417
33,793
2,355
3,593

5,895
2,828
37,918
2,401
3,839

5,737
2,808
38,605
1,838
3,895

5,677
2,850
38,964
1,990
3,899

5,670
2,915
39,146
1,940
3,945

5,491
2,994
39,225
1,798
3,873

5,304
3,008
39,427
2,163
3,946

5,269
3,025
39,639
2,029
3,915

5,210
3,098
39,592
2,080
3,985

5,172
3,180
39,639
2,293
4,006

22 Liabilities

121,056 134,812 147,287 149,528 150,962 151,383 152,202 153,175 154,315 155,210 156,110

23
24
25
26
27
28
29
30

109,873 122,877 134,017 135,200 136,997 136,931 137,307 138,709 139,128 139,308 140,816
109,291 121,961 132,744 133,846 135,558 135,349 135,785 137,089 137,430 137,690 139,068
76,116 75,578 75,423
69,653 74,535 78,005 77,837 78,783 78,170 78,273 77,321
39,639 47,426 54,739 56,009 56,775 57,179 57,512 59,768 61,313 62,112 63,645
1,439
1,354
1,521
1,698
1,582
1,620
1,747
582
916
1,272
1,619
3,735
4,155
4,481
4,636
4,152
3,969
4,570
2,755
2,884
3,292
5,246
10,174 10,230 10,301
10,414 10,497
10,551
10,725
8,428
9,052
9,978
10,654

Deposits
Regular: 5
Ordinary savings
Time and other
Other
Other liabilities
General reserve accounts
MEMO : Mortgage loan commitments outstanding6..

1,803

2,439

4,066

4,027

4,185

4,342

4,606

4,958

Life insurance companies
31 Assets
32
33
34
35
36
37
38

Securities:
Government
United States 7
State and
local
Foreign 8
Business
Bonds
Stocks

39
40
41
42

Mortgages
Real estate
Policy loans
Other assets

4,872

4,789

4,561

11

289,304

321,552

351,722

356,266

359,110

363,269

366,938

369,879

374,415

378,124

381,050

13,758

17,942

19,553

19,692

4,736
4,508
4,514

5,368
5,594
6,980

5,315
6,051
8,187

5,373
6,071
8,248

19,573
5,229

135,317

157,246

175,654

107,256
28,061

122,984
34,262

141,891
33,763

89,167
9,621
24,467
16,971

91,552
10,476
25,834
18,502

96,848
11,060
27,556
21,051

19,330

19,489

19,401

19,447

19,563

19,638

6,041
8,303

5,087
5,923
8,320

5,206
5,915
8,368

179,547

4,984
5,943
8,474

5,006
5,925
8,516

5,155
5,884
8,524

5,156
6,001
8,481

181,441

184,917

187,126

188,500

192,112

194,620

196,152

147,509
32,038

148,849
32,592

150,419
34,498

152,267
34,859

153,812
34,688

156,207
35,905

157,888
36,732

159,972
36,180

97,475
11,218
27,839
20,495

98,022
11,213
28,024
20,837

98,585
11,269
28,246
20,922

99,190
11,537
28,431
21,165

100,040
11,540
28,649
21,749

100,596
11,562
28,843
21,855

101,602
11,538
29,067
21,734

102,365
11,583
29,290
22,022

59,381
32,793
26,588

59,152
32,679
26,473

60,141
33,315
26,826

61,277
34,058
27,219

Credit unions
43 Total assets/liabilities and
capital
Federal
State

54,989
30,236
24,753

38,037
20,209
17,828

45,225
24,396
20,829

54,084
29,574
24,510

28,169

34,384

42,055

42,331

43,379

44,133

45,506

47,118

47,620

49,103

50,121

50,549

14,869
13,300

18,311
16,073

22,717
19,338

22,865
19,466

23,555
19,824

23,919
20,214

24,732
20,774

25,762
21,356

25,970
21,650

26,840
22,263

27,510
22,611

27,697
22,852

33,013
49 Savings
17,530
50
Federal (shares)
51
State (shares and deposits). 1 5 , 4 8 3

39,173

46,832

48,093

49,706

49,931

50,789

52,076

51,551

51,772

52,867

52,468

21,130
18,043

25,849
20,983

26,569
21,524

27,514
22,192

27,592
22,339

28,128
22,661

28,903
23,173

28,627
22,924

28,779
22,993

29,429
23,438

29,086
23,382

44
45

46 Loans outstanding
47
Federal
48
State

For notes see bottom of page A30.




56,703
31,274
25,429

56,827
31,255
25,572

58,018
31,925
26,093

60,909
33,718
27,191

A30

DomesticNonfinancialStatistics • December 1978

1.39 FEDERAL FISCAL AND FINANCING OPERATIONS
Millions of dollars
Calendar year
Type of account or operation

1
2
3
4
5

U.S. Budget
Receipts 1
Outlays 1
Surplus, or deficit
Trust funds 2
Federal funds

6
7

Off-budget entities surplus, or
deficit ( - )
Federal Financing Bank o u t l a y s . . .
Other 3

(—)

U.S. Budget plus off-budget, including Federal Financing Bank
Surplus, or deficit (—)
Financed by:
Borrowing from the public
9
Cash and monetary assets (de10
crease, or increase ( —))
11
Other 4
8

Transition
quarter
(JulySept.
1976)

Fiscal
year
1977

Fiscal
year
1978

1978

1977
HI

H2

HI

1978
Aug.

Sept.

81,772
94,742
-12,970
-1,952
-11,018

357,762
402,803
-45,041
7.833
-52,874

401,997
450,758
-48,761
12,693
-61,454

190,278
200,350
-10,072
7,332
-17,405

175,820
216,781
-40,961
4,293
-45,254

210,650
222,518
-11,870
4,334
-16,204

35,040
39,572
-4,532
3,890
-8,422

42,591
38,935
3,655
5,922
-2,267

-2,575
793

-8,415
-269

-10,660
354

-2,075
-2,086

-6,663
428

-5,105
-790

-1,056
-525

-753
-29

-14,752

-55,725

-59,067

-14,233

-47,196

-17,765

-6,113

-2,873

Oct.

28,745
42,691
-13,946
1,626
-15,572

-975
171

-14,750

18,027

53,516

59,106

16,480

40,284

23,374

9,039

2,821

6,484

-2,899
-373

-2,238
2,440

-3,023
2,984

-4,666
2,420

4,317
2,597

-5,098
-511

-956
-1,970

-9,731
9,783

7,082
1,184

17,418
13,299
4,119

19,104
15,740
3,364

22,444
16,647
5,797

16,255
15,183
1.072

12,274
7,114
5,160

17,526
11,614
5,912

13,078
12,068
1,010

22,444
16,647
5,797

15,545
15,467
78

MEMO ITEMS :

12 Treasury operating balance (level, end
of period)
13
Federal Reserve Banks
Tax and loan accounts
14

1
Effective June 1978, earned income credit payments in excess of
an individual's tax liability, formerly treated as income tax refunds, are
classified as outlays retroactive to January 1976.
2 Half years calculated as a residual of total surplus/deficit and trust
fund surplus/deficit.
3 Includes Pension Benefit Guaranty Corp.; Postal Service Fund; Rural
Electrification and Telephone Revolving Fund, Rural Telephone Bank;
and Housing for the Elderly or Handicapped Fund until October 1977.

4
Includes public debt accrued interest payable to the public; deposit
funds; miscellaneous liability (including checks outstanding) and asset
accounts; seignorage; increment on gold; net gain/loss for U.S. currency
valuation adjustment; net gain/loss for IMF valuation adjustment.

SOURCE.—"Monthly Treasury Statement of Receipts and Outlays of
the U.S. Government," Treasury Bulletin, and U.S. Budget, Fiscal Year
1978.

NOTES TO TABLE 1.38
1 Holdings of stock of the Federal home loan banks are included in
"other assets.'*
2 Includes net undistributed income, which is accrued by most, but not
all, associations.
3 Excludes figures for loans in process, which are shown as a liability.
4
Includes securities of foreign governments and international organizations and nonguaranteed issues of U.S. Government agencies.
5 Excludes checking, club, and school accounts.
6 Commitments outstanding (including loans in process) of banks in
New York State as reported to the Savings Banks Association of the
State of New York.
7
Direct and guaranteed obligations. Excludes Federal agency issues
not guaranteed, which are shown in this table under "business" securities.
8 Issues of foreign governments and their subdivisions and bonds of the
International Bank for Reconstruction and Development.
9 Data reflect benchmark revisions back to 1977.
10 Data for June, July, and August 1978 have been revised.
11 Data for 1977 and the first 6 months of 1978 have been revised by
the American Council of Life Insurance.




NOTE.—Savings and loan associations: Estimates by the FHLBB for
all associations in the United States. Data are based on monthly reports
of Federally insured associations and annual reports of other associations.
Even when revised, data for current and preceding year are subject to
further revision.
Mutual savings banks: Estimates of National Association of Mutual
Savings Banks for all savings banks in the United States. Data are reported on a gross-of-valuation-reserves basis.
Life insurance companies: Estimates of the American Council of Life
Insurance for all life insurance companies in the United States. Annual
figures are annual-statement asset values, with bonds carried on an
amortized basis and stocks at year-end market value. Adjustments for
interest due and accrued and for differences between market and book
values are not made on each item separately but are included, in total, in
"other assets."
Credit unions: Estimates by the National Credit Union Administration
for a group of Federal and State-chartered credit unions that account for
about 30 per cent of credit union assets. Figures are preliminary and
revised annually to incorporate recent benchmark data.

Federal Finance

A31

1.40 U.S. BUDGET RECEIPTS AND OUTLAYS
Millions of dollars
Calendar year
Source or type

Transition
quarter
(JulySept.
1976)

Fiscal
year
1977

Fiscal
year
1978

1977
HI

1978
H2

HI

1978
Aug.

Sept.

Oct.

Receipts
1 All sources

1

2 Individual income taxes, net
3
Withheld
Presidential Election Campaign
4
Fund
5
N o n withheld
6
Refunds i
7 Corporation income taxes:
8
Gross receipts
Refunds
9
10 Social insurance taxes and contributions, net
11
Payroll employment taxes and
contributions 2
12
Self-employment taxes and
contributions 3
13
Unemployment insurance
14
Other net receipts 4
15
16
17
18

Excise taxes
Customs deposits
Estate and gift taxes
Miscellaneous receipts 5

81,772

357,762

401,997

190,278

175,820

210,650

35,040

42,591

28,745

38,800
32,949

157,626
144,820

180,988
165,215

78,816
73,303

90,336
82,784

14,784
14,370

20,883
14,843

15,922
15,032

1
6,809
958

37
42,062
29,293

39
47,804
32,070

37
32,959
27,482

82,911
75,480
j
9.397
1,967

36
37,584
30,068

868
454

6,354
314

1,104
214

9,808
1,348

60,057
5,164

65,380
5,428

37,133
2,324

25,121
2,819

38,496
2,782

1,509
388

10,153
400

2,436
752

108,683

123,410

58,099

52,347

66,191

15,587

8,515

7,805

21,534

88,196

99,626

45,242

44,384

51,668

12,191

7,485

6,595

269
2,698
1,259

4,014
11,312
5,162

A,261
13,850
5,668

3,687
6,575
2,595

316
4,936
2,711

3,892
7,800
2,831

2,912
484

369
162
499

722
488

4,473
1,212
1,455
1,612

17,548
5,150
7,327
6,536

18,376
6,573
5,285
7,413

8,432
2,519
4,332
3,269

9,284
2,848
2,837
3,292

8,835
3,320
2,587
3,667

1,591
681
515
760

1,637
610
445
747

1,635
621
All
602

25,760

Outlays 8
19 All types i

94,742

402,803

450,758

200,350

216,781

222,518

39,572

38,935

42,691

20
21
22

22,307
2,180

97,501
4,831

105,192
6,083

48,721
2,522

50,873
2,896

52,979
2,904

9,742
987

9,006
387

9,197
324

1,161
794
2,532
584

4,677
4,172
10,000
5,526

4,721
6,045
11,022
7,618

2,108

2,318

2,628

5,477

2,395
2,487
4,959
2,353

405
620
982
386

403
933
1,391
283

367
821
878
949

1,391
3,306

-31
14,636

3,340
15,461

-946
7,723

-110
1,288

467
1,572

2,124
1,695

23
24
25

National defense
International affairs
General science, space, and
technology
Energy
Natural resources and environment.
Agriculture

26
27
28

Commerce and housing credit
Transportation
Community and regional
development
29 Education, training, employment,
and social services
30 Health
31 Income security 1
32
33
34
35
36
37

Veterans benefits and services
Administration of justice
General government
General-purpose
fiscal assistance
Interest 6
Undistributed offsetting receipts 6 - 7

1,340

6,283

11,255

3,149

4,924

5,928

1,218

1,439

929

5,162
8,720
32,795

20,985
38,785
137,905

25,889
44,529
145,640

9,775
18,654
70,785

10,800
19,422
71,081

12,792
21,391
75,201

2,716
4,039
12,266

2,263
3,595
12,756

2,144
4,037
11,815

3,962
859
878
2,092
7,246
-2,567

18,038
3.600
3,357
9,499
38,092
-15,053

18,987
3,786
3,544
9,377
44,040
-15,772

9,382
1,783
1,587
4,333
18,927
-6,803

9,864
1,723
1,749
4,926
19,962
-8,506

9,603
1,946
1,803
4,665
22,280
-7,945

1,529
317
340
36
3,539
-729

1,442
324
335
127
3,306
-1,089

1,647
328
785
2,019
3,030
-397

1 Effective June 1978, earned income credit payments in excess of an
individual's tax liability, formerly treated as income tax refunds, are
classified as outlays retroactive to January 1976.
2 Old-age, disability and hospital insurance, and Railroad Retirement
accounts.
3 Old-age, disability, and hospital insurance.
4
Supplementary medical insurance premiums, Federal employee retirement contributions, and Civil Service retirement and disability fund.
5 Deposits of earnings by Federal Reserve Banks and other miscellaneous receipts.
6 Effective September 1976, "Interest" and "Undistributed Offsetting
Receipts" reflect the accounting conversion for the interest on special
issues for U.S. Government accounts from an accrual basis to a cash basis.




7
Consists of interest received by trust funds, rents and royalties on
the Outer Continental Shelf, and U.S. Government contributions for
employee retirement.
8 For some types of outlays the categories are new or represent regroupings; data for these categories are from the Budget of the United
States Government, Fiscal Year 1979; data are not available for half years
or for months prior to February 1978.
Two categories have been renamed: "Law enforcement and justice"
has become "Administration of justice" and "Revenue sharing and
general purpose fiscal assistance" has become "General purpose fiscal
assistance."
In addition, for some categories the table includes revisions in figures
published earlier.

A32

DomesticNonfinancialStatistics • December 1978

1.41 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION
Billions of dollars
1977

1976

1978

Item
June 30

Sept. 30

1 Federal debt outstanding

631.9

2 Public debt securities
Held by public
3
4
Held by agencies

620.4
470.8
149.6

5 Agency securities
6
Held by public
7
Held by agencies

Dec. 31

Mar. 31

June 20

Sept. 30

729.2

747.8

758.8

780.4

718.9
564.1
154.8

738.0
585.2
152.7

749.0
587.9
161.1

771.5
603.6
168.0

10.3
8.5
1.8

10.2
8.4
1.8

9.9
8.1
1.8

9.8
8.0
1.8

8.9
7.4
1.5

Sept. 30

Dec. 31

June 30

2 646.4

665.5

685.2

709.1

634.7
488.6
146.1

653.5
506.4
147.1

674.4
523.2
151.2

698.8
543.4
155.5

11.5
9.5
2.0

11.6
29.7
1.9

12.0
10.0
1.9

10.8
9.0
1.8

621.6

635.8

654.7

675.6

700.0

720.1

739.1

750.2

772.7

9 Public debt securities
10 Other debt 1

619.8
1.7

634.1
1.7

652.9
1.7

673.8
1.7

698.2
1.7

718.3
1.7

737.3
1.8

748.4
1.8

770.9
1.8

11 MEMO: Statutory debt limit

636.0

636.0

682.0

700.0

700.0

752.0

752.0

752.0

798.0

8 Debt subject to statutory limit

1 Includes guaranteed debt of Govt, agencies, specified participation
certificates, notes to international lending organizations, and District of
Columbia stadium bonds.
2 Gross Federal debt and agency debt held by the public increased

1.42 GROSS PUBLIC DEBT OF U.S. TREASURY

$0.5 billion due to a retroactive reclassification of the Export-Import Bank
certificates of beneficial interest from loan asset sales to debt, effective
July 1, 1975.
NOTE.—Data from Treasury Bulletin (U.S. Treasury Dept.).

Types and Ownership

Billions of dollars, end of period
1978
Type and holder

1974

1975

1976

1977
July

i Total gross public debt
2
3
4
5
6
7
8
9
10
11
12

By type:
Interest-bearing debt
Marketable
Bills
Notes
Bonds
Convertible bonds 2
State and local government series
Foreign issues 3
Savings bonds and notes 4
Government account series

13 Non-interest-bearing debt
By holder:5
14
U.S. Government agencies and trust funds. . .
Federal Reserve Banks
15
16
17
18
19
20
21

Private investors
Commercial banks
Insurance companies
Other corporations
State and local governments

Aug.

Sept.

492.7

576.6

653.5

718.9

750.5

764.4

771.5

776.4

491.6
282.9
119.7
129.8
33.4
208.7
2.3
.6
22.8
63.8
119.1

575.7
363.2
157.5
167.1
38.6
212.5
2.3
1.2
21.6
67.9
119.4

652.5
421.3
164.0
216.7
40.6
231.2
2.3
4.5
22.3
72.3
129.7

715.2
459.9
161.1
251.8
47.0
255.3
2.2
13.9
22.2
77.0
139.8

749.5
481.0
160.1
266.6
54.4
268.4
2.2
20.8
20.8
79.7
144.7

763.4
485.6
160.6
268.5
56.4
227.8
2.2
24.2
22.2
79.9
149.0

767.0
485.2
160.9
267.9
56.4
281.8
2.2
24.2
21.7
80.2
153.3

775.5
491.7
161.2
272.6
57.8
283.8
2.2
24.1
24.0
80.5
152.7

1.1

1.0

1.1

3.7

1.0

1.0

4.6

.9

138.2
80.5

139.1
89.8

147.1
97.0

154.8
102.5

159.3
108.9

163.7
111.7

168.0
114.8

271.0
55.6
2.5
6.2

29.2

349.4
85.1
4.5
9.5
20.2
34.2

409.5
103.8
5.9
12.7
27.7
41.6

461.3
101.4
5.9
15.1
22.7
55.2

482.3
97.7
5.6
15.0
20.0
61.7

489.0
95.8
5.5
15.1
22.4
69.2

488.3
95.3
5.4
15.1
21.5
67.8

11.0

22
23

Individuals:
Savings bonds
Other securities

63.4
21.5

67.3
24.0

72.0
28.8

76.7
28.6

79.4
29.0

79.7
29.2

79.8
29.4

24
25

Foreign and international 6
Other miscellaneous investors 7

58.8
22.8

66.5
38.0

78.1
38.9

109.6
46.1

120.5
53.4

121.2
50.9

121.0
52.9

1
Includes (not shown separately): Securities issued to the Rural
Electrification Administration and to State and local governments, depositary bonds, retirement plan bonds, and individual retirement bonds.
2 These nonmarketable bonds, also known as Investment Series B
Bonds, may be exchanged (or converted) at the owner's option for \ l /i
per cent, 5-year marketable Treasury notes. Convertible bonds that have
been so exchanged are removed from this category and recorded in the
notes category above.
3 Nonmarketable foreign government dollar-denominated and foreign
currency denominated series.
4
Held almost entirely by U.S. Govt, agencies and trust funds.
5 Data for F.R. Banks and U.S. Govt, agencies and trust funds are
actual holdings; data for other groups are Treasury estimates.




Nov.

Oct.

6
Consists of the investments of foreign balances and international
accounts in the United States. Beginning with July 1974, the figures exclude
non-interest-bearing notes issued to the International Monetary Fund.
7
Includes savings and loan associations, nonprofit institutions, corporate pension trust funds, dealers and brokers, certain Govt, deposit
accounts, and Govt.-sponsored agencies.

NOTE.—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 Dept.); data by holder from Treasury
Bulletin.

Federal Finance
1.43 U.S. GOVERNMENT MARKETABLE SECURITIES

A33

Ownership, by maturity

Par value; millions of dollars, end of period
1978
Type of holder

1976

1976

1977
Aug.

Aug.

Sept.

All maturities
1 All holders
2 U.S. Government agencies and trust funds
3 Federal Reserve Banks
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

13 U.S. Government agencies and trust funds
14 Federal Reserve Banks
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

421,276

459,927

485,557

485,155

141,132

151,264

171,890

168,474

16,485
96,971

14,420
101,191

13,898
111,739

13,886
114,769

6,141
31,249

4,788
27,012

3,705
31,722

3,705
31,775

307,820
78,262
4,072
10,284
14,193
4,576
12,252
184,182

344,315
75,363
4,379
12,378
9,474
4,817
15,495
222,409

359,919
70,817
3,789
11,852
9,776
4,369
19,394
239,922

356,501
70,706
3,740
11,805
9,092
4,369
18,075
238,714

103,742
40,005
2,010
3,885
2,618
2,360
2,543
50,321

119,464
38,691
2,112
A,129
3,183
2,368
3,875
64,505

136,462
41,594
2,115
5,119
4,819
2,470
5,150
75,195

132,993
40,733
2,062
4,991
4,793
2,441
4,494
73,479

5 to 10 years

211,035

230,691

222,329

225,396

43,045

45,328

49,274

49,273

2,012
51,569

1,906
56,702

2,293
56,524

2,281
59,296

2,879
9,148

2,129
10,404

1,987
13,684

1,987
13,786

157,454
31,213
1,214
2,191
11,009
1,984
6,622
103,220

172,084
29,All
1,400
2,398
5,770
2,236
7,917
122,885

163,512
19,334
860
1,624
4,212
1,713
8,392
127,377

163,819
20,007
880
1,685
3,655
1,726
7,699
128,167

31,018
6,278
567
2,546
370
155
1,465
19,637

32,795
6,162
584
3,204
307
143
1,283
21,112

33,603
7,630
551
2,869
376
113
1,521
20,543

33,500
7,423
539
2,931
311
129
1,519
20,648

Bills, within 1 year
23 All holders
24 U.S. Government agencies and trust funds
25 Federal Reserve Banks
26 Private investors
27
Commercial banks
Mutual savings banks
28
29
Insurance companies
30
Nonfinancial corporations
31
Savings and loan associations
32
State and local governments
33
All others

Sept.

1 to 5 years

Total, within 1 year
12 All holders

1978
1977

10 to 20 years

163,992

161,081

160,615

160,936

11,865

12,906

16,608

16,573

449
41,279

32
42,004

2
45,895

1
48,160

3,102
1,363

3,102
1,510

3,273
1,928

3,273
1,917

122,264
17,303
454
1,463
9,939
1,266
5,556
86,282

119,035
11,996
484
1,187
4,329
806
6,092
94,152

114,719
5,906
206
742
2,265
374
6,166
99,060

112,775
5,862
199
750
1,657
373
5,280
98,654

7,400
339
139
1,114
142
64
718
4,884

8,295
456
137
1,245
133
54
890
5,380

11,407
950
135
1,317
159
57
1,133
7,655

11,383
1,060
132
1,304
162
56
1,080
7,590

Over 20 years

Other, within 1 year
34 All holders

47,043

69,610

61,714

64,460

14,200

19,738

25,457

25,439

35 U.S. Government agencies and trust funds
36 Federal Reserve Banks

1,563
10,290

1,874
14,698

2,291
10,630

2,280
11,136

2,350
3,642

2,495
5,564

2,640
7,881

2,640
7,994

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

35,190
13,910
760
728
1,070
718
1,066
16,938

53,039
15,482
916
1,211
1,441
1,430
r
l,825
28,733

48,793
13,428
654
882
1,947
1,339
2,225
28,318

51,044
14,145
681
934
1,998
1,353
2,419
29,513

8,208
427
143
548
55
13
904
6,120

11,679
578
146
802
81
16
1,530
8,526

14,936
1,309
128
923
210
16
3,199
9,152

14,805
1,483
128
894
171
18
3,282
8,830

NOTE.—Direct public issues only. Based on Treasury Survey of Ownership from Treasury Bulletin (U.S. Treasury Dept.).
Data complete for U.S. Govt, agencies and trust funds and F.R. Banks,
but data for other groups include only holdings of those institutions
that report. The following figures show, for each category, the number
and proportion reporting as of Sept. 30, 1978: (1) 5,466 commercial




banks, 464 mutual savings banks, and 727 insurance companies, each
about 90 per cent; (2) 435 nonfinancial corporations and 485 savings and
loan associations, each about 50 per cent; and (3) 493 State and local
governments, about 40 per cent.
"All others," a residual, includes holdings of all those not reporting
in the Treasury Survey, including investor groups not listed separately.

A34

DomesticNonfinancialStatistics • December 1978

1.44 U.S. GOVERNMENT SECURITIES DEALERS

Transactions

Par value; averages of daily figures, in millions of dollars
1978
Item

1 U.S. Government securities..
By maturity:
Bills
Other within 1 year
1-5 years
5-10 years
Over 10 years

2
3
4
5
6

1975

1976

1978, week ending Wednesday—

1977
Aug.

Sept.

Oct.

Sept. 13 Sept. 20 Sept. 27

Oct. 4

Oct. 11

Oct. 18

6,027

10,449

10,838

11,526

9,526

9,814

8,886

9,116

10,324

9,923

9,347

10,244

3,889
223
1,414
363
138

6,676
210
2,317
1,019
229

6,746
237
2,318
1,148
388

6,074
386
2,251
1,619
1,196

5,552
315
1,863
802
994

6,286
420
1,520
691
897

5,263
265
1,745
796
818

5,613
243
1,610
732
917

5,612
437
2,425
931
919

6,048
467
1,278
691
1,439

6,271
336
1,233
640
866

7,182
292
1,234
690
846

885

1,360

1,267

942

921

983

912

861

1,051

976

1,132

965

4,988
1,908
3,688

3,868
1,473
3,263

4,052
1,404
3,374

3,741
1,420
2,814

3,529
1,498
3,228

4,238
1,530
3,504

3,939
1,504
3,503

3,513
1,255
3,446

4,523
1,432
3,325

2,077

2,172

2,024

2,654

1,830

2,356

1,710

1,715

2,532

By type of customer:
U.S. Government securities
dealers
8
U.S. Government securities
brokers
9
Commercial banks
All others 1
10

1,750
1,451
1,941

3,407
2,426
3,257

3,709
2,295
3,567

11 Federal agency securities

1,043

1,548

693

7

1

Includes, among others, all other dealers and brokers in commodities
and securities, foreign banking agencies, and the F.R. System.
NOTE.—Averages for transactions are based on number of trading days
in the period.

1.45 U.S. GOVERNMENT SECURITIES DEALERS

Transactions are market purchases and sales of U.S. Govt, securities
dealers reporting to the F.R. Bank of New York. The figures exclude
allotments of, and exchanges for, new U.S. Govt, 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
1978
Item

1975

1976

1978, week ending Wednesday—

1977
Aug.

Sept.

Oct.

Aug. 23 Aug. 30 r

Positions

Sept. 6

Sept. 13 Sept. 20 Sept. 27

2

1 U.S. Government securities. .

5,884

7,592

5,172

2,753

2,948

1,428

a,915

2,831

2,931

3,792

3,906

1,490

2
3
4
5
6

4,297
265
886
300
136

6,290
188
515
402
198

4,772
99
60
92
149

2,330
348
-64
218
-78

2,824
405
-320
11
28

1,743
462
-593
-207
23

>-2,220
258
-555
89
-98

2,362
291
58
169
-48

2,579
236
-23
140

3,338
368
-67
177
-25

3,853
430
-456
22
58

1,789
445
-480
-194
-70

943

729

693

656

977

234

996

994

1,093

1,161

800

Bills
Other within 1 year
1-5 years
5-10 years
Over 10 years

7 Federal agency securities

r

567

i

3

Sources of financing
8 All sources
9
10
11
12

Commercial banks:
New York City
Outside New York City...
Corporations 1
All others

6,666

8,715

9,877

11,041

11,558

10,430

11,006

11,176

11,600

12,616

12,814

10,122

1,621
1,466
842
2,738

1,896
1,660
1,479
3,681

1,313
1,987
2,358
4,170

608
2,370
2,501
5,563

997
2,344
2,287
5,930

385
2,105
2,396
5,543

733
2,593
2,505
5,175

611
2,288
2,590
5,687

929
2,184
2,499
5,988

1,293
2,478
2,506
6,338

1,213
2,904
2,295
6,402

626
2,069
2,096
5,331

1
All business corporations except commercial banks and insurance
companies.
2
New amounts (in terms of par values) of securities owned by nonbank
dealer firms and dealer departments of commercial banks on a commitment, that is, trade-date basis, including any such securities that have
been sold under agreements to repurchase. The maturities of some repurchase agreements are sufficiently long, however, to suggest that the
securities involved are not available for trading purposes. Securities
owned, and hence dealer positions, do not include securities purchased
under agreements to resell.
3
Total amounts outstanding of funds borrowed by nonbank dealer




firms and dealer departments of commercial banks against U.S. Govt,
and Federal agency securities (through both collateral loans and sales
under agreements to repurchase), plus internal funds used by bank dealer
departments to finance positions in such securities. Borrowings against
securities held under agreement to resell are excluded where the borrowing
contract and the agreement to resell are equal in amount and maturity,
that is, a matched agreement.
NOTE.—Averages for positions are based on number of trading days
in the period; those for financing, on the number of calendar days in the
period.

Federal Finance
1.46 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES

A35

Debt Outstanding

Millions of dollars, end of period
1978
Agency

1975

1976

1977
Apr.

May

June

July

Aug.

Sept.

1 Federal and Federally sponsored agencies

97,680

103,325

110,409

115,903

119,728

121,239

123,497

124,478

126,579

2 Federal agencies
Defense Department21
3
4
Export-Import Bank -3
Federal Housing Administration 4
5
Government National Mortgage
Association
6
participation certificates5
Postal Service6
7
Tennessee Valley Authority
8
9
United States Railway Association 6

19,046
1,220
7,188
564

21,896
1,113
7,801
575

23,245
983
9,156
581

23,766
949
9,416
607

23,864
935
9,416
608

23,983
926
9,455
606

24,145
916
9,455
603

23,686
906
9,455
603

24,321
897
9,891
601

4,200
1,750
3,915
209

4,120
2,998
5,185
104

3,743
2,431
6,015
336

3,701
2,431
6,310
352

3,701
2,364
6,485
355

3,701
2,364
6,575
356

3,666
2,364
6,785
356

3,166
2,364
6,835
357

3,166
2,364
7,045
357

10 Federally sponsored agencies
Federal home loan banks
11
Federal Home Loan Mortgage Corporation..
12
Federal National Mortgage Association
13
14
Federal land banks
Federal intermediate credit banks
15
16 Banks for cooperatives
17
Student Loan Marketing Association 7
Other.
18

78,634
18,900
1,550
29,963
15,000
9,254
3,655
310
2

81,429
16,811
1,690
30,565
17,127
10,494
4,330
410
2

87,164
18,345
1,686
31,890
19,118
11,174
4,434
515
2

92,137
20,163
1,639
34,024
19,686
10,977
5,046
600
2

95,864
22,217
1,637
35,297
19,686
11,081
5,264
680
2

97,256
22,306
1,937
36,404
19,686
11,257
4,974
690
2

99,352
23,430
1,937
36,900
20,198
11,392
4,788
705
2

100,792
24,360
1,937
37,518
20,198
11,482
4,570
725
2

102,258
25,025
2,063
38,353
20,198
11,555
4,317
745
2

17,154

28,711

38,580

42,964

43,871

44,504

45,550

46,668

48,078

4,595
1,500
310
1,840
209

5,208
2,748
410
3,110
104

5,834
2,181
515
4,190
336

6,094
2,181
600
4,485
352

6,094
2,114
680
4,660
355

6,132
2,114
690
4,750
356

6,132
2,114
705
4,960
356

6,132
2,114
725
5,010
357

6,568
2,114
745
5,220
357

7,000
566
1,134

10,750
1,415
4,966

16,095
2,647
6,782

19,120
3,323
6,809

20,090
3,498
6,380

20,910
3,602
5,950

21,580
3,684
6,019

22,275
3,919
6,136

22,275
4,192
6,607

MEMO ITEMS :

19 Federal Financing Bank debt 6 - 8
Lending to Federal and Federally sponsored
agencies:
20
Export-Import Bank 3
21
Postal Service6
22
Student Loan Marketing Association 7
Tennessee Valley Authority
23
24
United States Railway Association 6
25
26
27

Other lending: 9
Farmers Home Administration
Rural Electrification Administration
Other

1 Consists of mortgages assumed by the Defense Department between
1957
and 1963 under family housing and homeowners assistance programs.
2
Includes participation certificates reclassified as debt beginning
Oct. 1, 1976.
3 Off-budget Aug. 17,1974, through Sept. 30,1976; on-budget thereafter.
4
Consists of debentures issued in payment of Federal Housing Administration insurance claims. Once issued, these securities may be sold
privately
on the securities market.
5
Certificates of participation issued prior to fiscal 1969 by the Government National Mortgage Association acting as trustee for the Farmers
Home Administration; Department of Health, Education, and Welfare;
Department of Housing and Urban Development; Small Business Administration;
and the Veterans Administration.
6
Off-budget.




7
Unlike other Federally sponsored agencies, the Student Loan
Marketing Association may borrow from the Federal Financing Bank
(FFB) since its obligations are guaranteed by the Department of Health,
Education, and Welfare.
8
The FFB, which began operations in 1974, is authorized to purchase
or sell obligations issued, sold, or guaranteed by other Federal agencies.
Since FFB incurs debt solely for the purpose of lending to other agencies,
its debt is not included in the main portion of the table in order to avoid
double counting.
9
Includes FFB purchases of agency assets and guaranteed loans;
the latter contain loans guaranteed by numerous agencies with the
guarantees of any particular agency being generally small. The Farmers
Home Administration item consists exclusively of agency assets, while the
Rural Electrification Administration entry contains both agency assets
and guaranteed loans.

A36

DomesticNonfinancialStatistics • December 1978

1.47 NEW SECURITY ISSUES of State and Local Governments
Millions of dollars
1978
Type of issue or issuer,
or use

1 All issues, new and refunding
2
3
4
5

1

By type of issue:
General obligation
Revenue
Housing Assistance Administration 2
U.S. Government loans
By type of issuer:

6
7
8

Special district and statutory authority
Municipalities, counties, townships, school d i s t r i c t s . . . .

9
By use of proceeds:
10
Education
11
Transportation
12
Social welfare
13
14
Industrial aid
Other purposes
15

1975

1977

1976

30,607

35,313

46,769

16,020
14,511

18,040
17,140

18,042
28,655

76

i 33

72

7,438
12,441
10,660

7,054
15,304
12,845

6,354
21,717
18,623

29,495

32,108

36,189

4,689
2,208
7,209
4,392
445
10,552

4,900
2,586
9,594
6,566
483
7,979

5,076
2,951
8,119
8,274
4,676
7,093

r

r

r
r

May

June r

July

5,515

4,363

2,222
3,273

Aug. r

Sept. r

Oct.

3,909

6,392

2,280

3,100

1,986
2,369

1,064
2,842

2,157
4,226

699
1,574

1,136
1,951

20

8

3

9

7

13

884
2,220
2,391

912
1,461
1,981

650
2,168
1,088

919
3,106
2,359

84
1,561
627

546
1,565
975

3,152

3,869

3,484

3,345

2,216

3,014

664
130
557
'966
371
464

406
359
819
698
421
1,166

499
291
942
1,235
238
279

277
632
686
955
338
457

399
298
688
501
88
242

308
420
826
1,137
152
171

SOURCE.—Public Securities Association.

1 Par amounts of long-term issues based on date of sale.
2 Only bonds sold pursuant to the 1949 Housing Act, which are secured
by contract requiring the Housing Assistance Administration to make
annual contributions to the local authority.

1.48 NEW SECURITY ISSUES of Corporations
Millions of dollars
1978
Type of issue or issuer,
or use

1 All issues

1

1975

1976

1977
Mar.

April

May

June

July

Aug.

53,619

53,488

54,205

4,442

3,285

4,035

5,215

4,226

3,311

2 Bonds.

42,756

42,380

42,193

3,620

2,811

2,996

3,810

3,718

2,529

By type of offering:
3
Public
4
Private placement

32,583
10,172

26,453
15,927

24,186
18,007

1,902
1,718

1,958
853

1,719
1,277

1,744
2,066

2,177
1,541

1,497
1,032

16,980
2,750
3,439
9,658
3,464
6,469

13,264
4,372
4,387
8,297
2,787
9,274

12,510
5,887
2,033
8,261
3,059
10,438

1,155
428
217
631
291
898

534
421
291
505
35
1,027

837
314
244
885
714

1,105
562
225
815
344
761

675
417
235
768
326
1,296

485
414
115
521
546
448

10,863

11,108

12,013

822

474

1,039

1,405

508

782

3,458
7,405

2,803
8,305

3,878
8,135

148
674

235
239

390
649

586
819

57
451

157
625

1,670
1,470

2,237
1,183
24
6,121
776
771

1,265
1,838
418
6,058
1,379
1,054

41
90
20
800

"28

10

88

366
245
38
429
5
320

167
167
40
31
27
76

236
110

627

15
183
28
238

5
6
7
8
9
10

By industry group:
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial

11 Stocks
By type:
12
Preferred
13
Common
14
15
16
17
18
19

By industry group:
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial

6,235
1,002
488

i Figures, which represent gross proceeds of issues maturing in more
than 1 year, sold for cash in the United States, are principal amount or
number of units multiplied by offering price. Excludes offerings of less
than $100,000, secondary offerings, undefined or exempted issues as
defined in the Securities Act of 1933, employee stock plans, investment




354
6
75

companies other than closed-end, intracorporate transactions, and sales to
foreigners.
SOURCE.—Securities and Exchange Commission.

Corporate Finance
1.49 OPEN-END INVESTMENT COMPANIES

A37

Net Sales and Asset Position

Millions of dollars
1978
Item

1976

1977
June

May

Apr.

July

Aug.

Sept.

Oct.

INVESTMENT COMPANIES
excluding money market funds
1
2
3

Sales of own shares 1
Redemptions of own shares 2

4
5
6

Assets 3
Cash position 4 .
Other

4,226
6,802
-2,496

6,401
6,027
357

625
580
45

558
831
-273

487
757
-270

474
645
-181

638
882
-244

519
673
-154

463
607
-144

47,537
2,747
44,790

45,049
3,274
41,775

46,594
4,592
42,002

46,969
4,642
42,327

46,106
4,493
41,613

47,975
4,285
43,690

49,299
3,948
45,351

48,151
3,703
44,448

43,462
3,869
39,593

1
Includes reinvestment of investment income dividends. Excludes
reinvestment of capital gains distributions and share issue of conversions
from one fund to another in the same group.
2
Excludes share redemption resulting from conversions from one fund
to 3another in the same group.
Market value at end of period, less current liabilities.

4
Also includes all U.S. Government securities and other short-term
debt securities.

NOTE.—Investment Company Institute data based on reports of members, which comprise substantially all open-end investment companies
registered with the Securities and Exchange Commission. Data reflect
newly formed companies after their initial offering of securities.

1.50 CORPORATE PROFITS AND THEIR DISTRIBUTION
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1977
Account

1975

1976

1978

1977
Ql

Q2

Q3

Q4

Ql

Q2

Q3P

120.4

155.9

173.9

164.8

175.1

177.5

178.3

172.1

205.5

208.6

2 Profits tax liability
3 Profits after tax

49.8
70.6

64.3
91.6

71.8
102.1

68.3
96.5

72.3
102.8

72.8
104.7

73.9
104.4

70.0
102.1

85.0
120.5

86 . 6
122.0

4 Dividends
5 Undistributed profits

31.9
38.7

37.9
53.7

43.7
58.4

41.5
55.0

42.7
60.1

44.1
60.6

46.3
58.1

47.0
55.1

48.1
72.4

50.1
71.9

89.2
127.9

97.1
150.8

106.0
164.4

102.0
157.0

105.0
165.1

107.6
168.2

109.3
167.4

111.3
166.4

113.3
185.7

115.4
187.3

1 Profits before tax

6 Capital consumption allowances
7 Net cash flow

SOURCE.—Survey of Current Business (U.S. Dept. of Commerce).




A38

DomesticNonfinancialStatistics • December 1978

1.51 NONFINANCIAL CORPORATIONS

Current Assets and Liabilities

Billions of dollars, except for ratio
1977

1976
Account

1974

1978

1975
Q3

Q4

Ql

Q2

Q3

Q4

Ql r

Q2

734.6

756.3

817.4

823.1

842.0

856.4

880.3

900.1

924.2

953.6

73.0
11.3
265.5
318.9
65.9

80.0
19.6
272.1
314.7
69.9

79.5
24.1
297.9
342.2
73.6

86.8
26.0
292.4
341.4
76.4

80.8
26.8
304.1
352.1
78.3

83.1
22.1
312.8
358.8
79.6

83.4
21.5
326.9
367.5
81.0

94.2
20.9
325.7
375.0
84.3

88.5
20.9
338.3
389.7
86.8

90.9
19.7
356.8
399.1
87.0

7 Current liabilities

451.8

446.9

484.0

487.5

502.6

509.5

528.9

543.2

570.4

590.6

8
9

272.3
179.5

261.2
185.7

271.2
212.8

273.2
214.2

280.2
222.4

286.8
222.7

297.8
231.1

306.8
236.3

317.2
253.2

331.4
259.2

10 Net working capital

282.8

309.5

333.4

335.6

339.5

346.9

351.4

357.0

353.8

363.0

11 MEMO: Current r a t i o 1 . .

1.626

1.693

1.689

1.688

1.675

1.681

1.664

1.657

1.620

1.615

1 Current assets
Cash
U.S. Government securities
Notes and accounts receivable
Inventories
Other

2
3
4
5
6

Notes and accounts payable
Other

1

(Total current assets)/(Total current liabilities).

SOURCE.—Federal Trade Commission.

NOTE.—For a description of this series see "Working Capital of Nonfinancial Corporations" in the July 1978 BULLETIN, pp. 533-37.

1.52 BUSINESS EXPENDITURES on New Plant and Equipment
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1977
Industry

1 All industries
Manufacturing
2
Durable goods industries
3
Nondurable goods industries
4
5
6
7
8
9
10
U

Nonmanufacturing
Mining
Transportation:
Railroad
Air
Other
Public utilities:
Electric
Gas and other
Communication
Commercial and other 1
1
2

Ql

Q2

Q3

Q4

Ql

Q2

Q3

Q42

135.72

152.28

130.16

134.24

140.38

138.11

144.25

150.76

155.13

158.98

27.75
32.33

31.53
36.23

26.30
30.13

27.26
32.19

29.23
33.79

28.19
33.22

28.72
32.86

31.40
35.80

32.11
36.54

33.89
39.72

4.49

4.78

4.24

4.49

4.74

4.50

4.45

4.81

4.80

5.07

2.82
1.63
2.55

3.28
2.45
2.27

2.71
1.62
2.96

2.57
1.43
2.96

3.20
1.69
1.96

2.80
1.76
2.32

3.35
2.67
2.44

3.09
2.08
2.23

3.64
2.97
2.37

3.05
2.08
2.05

21.57
4.21
15.43
22.95

24.49
4.48

21.19
4.16
14.19
22.67

21.14
4.16
15.32
22.73

21.90
4.32
16.40
23.14

22.05
4.18
15.82
23.27

23.15
4.78
17.07
24.76

23.83
4.62
18 18
24^71

25.04
4.22
} 43.44

25.94
4.28
42.90

Includes trade, service, construction, finance, and insurance.
Anticipated by business.

NOTE.—Estimates for corporate and noncorporate business, excluding




1978

1978 2

1977

agriculture; real estate operators; medical, legal, educational, and cultural
service; and nonprofit organizations.
SOURCE.—Survey of Current Business (U.S. Dept. of Commerce).

Corporate Finance
1.521 DOMESTIC FINANCE COMPANIES

A39

Assets and Liabilities

Billions of dollars, end of period
1977
1973

1972

Account

1974

1975

1978

1976
Q3

Q4

Q1

Q2

Q3

ASSETS
1
2
3
4
5
6
7
8

Accounts receivable, gross
Consumer
Business
Total
LESS: Reserves for unearned income and losses
Accounts receivable, net
Cash and bank deposits
Securities
All other

9 Total assets

31.9
27.4
59.3
7.4
51.9
2.8
.9
10.0

35.4
32.3
67.7
8.4
59.3
2.6
.8
10.6

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

42.3
50.6
92.9
11.7
81.2
2.5
1.8
14.2

44.0
55.2
99.2
12.7
86.5
2.6
.9
14.3

44.5
57.6
102.1
12.8
89.3
2.2
1.2
15.0

47.1
59.5
106.6
14.1
92.6
2.9
1.3
16.2

49.7
58.3
108.0
14.3
93.7
2.7
1.8
17.1

65.6

73.2

79.6

81.6

89.2

99.6

104.3

107.7

112.9

115.3

LIABILITIES
10 Bank loans
11 Commercial paper
Debt:
12
Short-term, n.e.c
13
Long-term, n.e.c
14
Other

5.6
17.3

7.2
19.7

9.7
20.7

8.0
22.2

6.3
23.7

5.4
25.7

5.9
29.6

5.8
29.9

5.4
31.3

5.4
29.3

4.3
22.7
4.8

4.6
24.6
5.6

4.9
26.5
5.5

4.5
27.6
6.8

5.4
32.3
8.1

5.4
34.8
13.7

6.2
36.0
11.5

5.3
38.0
12.9

6.6
40.1
13.6

6.8
41.3
15.2

15 Capital, surplus, and undivided profits

10.9

11.5

12.4

12.5

13.4

14.6

15.1

15.7

16.0

17.3

65.6

73.2

79.6

81.6

89.2

99.6

104.3

107.7

112.9

115.3

16 Total liabilities and capital

NOTE.—Components may not add to totals due to rounding.

1.522 DOMESTIC FINANCE COMPANIES

Business Credit

Millions of dollars, seasonally adjusted except as noted

Type

Accounts
receivable
outstanding Sept. 30,
19781

Changes in accounts
receivable during—

Extensions

Repayments

1978

1978

1978

July

Aug.

Sept.

July

Aug.

Sept.

July

Aug.

Sept.

1 Total

58,324

284

716

-234

14,688

15,417

15,530

14,404

14,701

15,764

2 Retail automotive (commercial vehicles)
3 Wholesale automotive
4 Retail paper on business, industrial, and
farm equipment
5 Loans on commercial accounts receivable...
6 Factored commercial accounts receivable....
7 All other business credit

13,732
10,150

111
103

247
-77

209
-506

1,073
6,148

1,222
6,314

1,202
6,119

962
6,045

975
6,391

993
6,625

15,647
4,316
2,472
12,007

210
-140
-11
11

295
-19
55
215

-154
150
83
-16

1,324
2,748

1,225
3,269

1,198
3,454

1,716

1,481

1,584

1,679

1,906

1,973

1,114
2,888
1,727
1,668

930
3,288
1,426
1,691

1,352
3,304
1,501
1,989

i Not seasonally adjusted.




A40

DomesticNonfinancialStatistics • December 1978

1.53 MORTGAGE MARKETS
Millions of dollars; exceptions noted.
1978
Item

1975

1976

1977
May

June

July

Aug.

Sept.

Oct.

Terms and yields in primary and secondary markets
P R I M A R Y MARKETS
Conventional mortgages on new homes
Terms: 1
1
2
3
4
5
6
7
8

Amount of loan (thous. dollars)
Loan/price ratio (per cent)
Maturity (years)
Fees and charges (per cent of loan amount) 2 .
Contract rate (per cent per annum)
Yield (per cent per annum):
FHLBB series 3
H U D series 4

44.6
33.3
74.7
26.8
1.54
8.75

48.4
35.9
74.2
27.2
1.44
8.76

54.3
40.5
76.3
27.9
1.33
8.80

59.8
44.2
75.5
27.7
1.34
9.14

62.6
45.9
75.6
28.3
1.40
9.23

61.9
45.3
75.3
28.2
1.40
9.34

63.6
46.4
75.3
28.0
1.43
9.45

'64.6
46.7
'74.1
27.8
1.36
9.50

66.8
48.6
74.4
28.0
1.37
9.61

9.01
9.10

8.99
8.99

9.01
8.95

9.37
9.60

9.46
9.75

9.57
9.80

9.70
9.80

9.73
9.80

9.83
4.95

9.19
8.52

8.82
8.17

7.96
8.04

9.67
8.71

9.05

9.92
9.16

9.78
8.96

9.78
8.95

9.93
9.16

9.26
9.37

8.99
9.11

8.73
8.98

9.66
9.90

9.91
10.10

10.01
10.19

9.81
10.11

9.78
10.02

10.03
10.19

SECONDARY MARKETS
9
10
11
12

Yields (per cent per annum):
FHA mortgages ( H U D series) ^
G N M A securities 6
F N M A auctions: 7
Government-underwritten loans

Activity in secondary markets
FEDERAL N A T I O N A L
MORTGAGE ASSOCIATION
13
14
15
16

Mortgage holdings (end of period)
Total
FHA-insured
V A-guaranteed
Conventional

17
18
19
20

31,824
19,732
9,573
2,519

32,904
18,916
9,212
4,776

34,370
18,457
9,315
6,597

37,937
19,382
10,255
8,300

38,753
19,608
10,398
8,747

39,409
19,763
10,457
9,189

40,325
20,034
10,535
9,752

41,189
20,325
10,575
10,289

41,957
20,625
10,565
10,767

Mortgage transactions (during period)
Purchases
Sales

4,263
2

3,606
86

497

1,551

1,148

945

1,230

1,132

1,053

Mortgage commitments: 8
Contracted (during period)
Outstanding (end of period)

6,106
4,126

6,247
3,398

1,333
4,698

3,439
10,271

1,517
10,395

927
10,171

527
9 419

882
9,068

1,900
9,547

7,042.6
3,848.3

4,929.8
2,787.2

1,184.5
794.0

2,117.7
1,093.7

1,095.0
636.6

756.7
471.5

499.1
277.2

717.9
335.9

1,964.8
832.4

1,401.3
765.0

2,595.7
1,879.2

591.6
359.4

1,935.8
968.3

574.5
342.0

316.0
178.9

224.7
128.5

484.7
283.7

1,156.8
495.6

Auction of 4-month commitments to buy—
Government-underwritten loans:
Offered 9
Accepted
Conventional
loans:
23
Offered 9
24
Accepted
21
22

FEDERAL HOME LOAN
MORTGAGE CORPORATION
25
26
27

Mortgage holdings (end of period) 1 0
Total
FHA/VA
Conventional

4,987
1,824
3,163

4,269
1,618
2,651

3,276
1,395
1,881

2,878
1,356
1,522

2,255
1,338
917

2,024
1,321
702

2,448
1,304
1,144

2,486
1,287
1,199

2,867
1,594
1,273

28
29

Mortgage transactions (during period)
Purchases
Sales

1,716
1,020

1,175
1,396

489
477

479
651

500
1,093

520
725

742
299

670
594

791
369

30
31

Mortgage commitments: 1 1
Contracted (during period)
Outstanding (end of period)

982
111

1,477
333

361
1,063

811
1,640

762
1,870

737
2,055

838
2,142

760
2,130

547
1,716

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 comentional first
mortgages, rounded to the nearest 5 basis points; from Dept. of Housing
and Urban Development.
5 Average gross yields on 30-year, minimum-downpayment, Federal
Housing Administration-insured first mortgages for immediate delivery
in the private secondary market. Any gaps in data are due to periods of
adjustment to changes in maximum permissible contract rates.
6 Average net yields to investors on Government National Mortgage
Association-guaranteed, mortgage-backed, fully-modified pass-through




securities, assuming prepayment in 12 years on pools of 30-year F H A / V A
mortgages carrying the prevailing ceiling rate. Monthly figures are
unweighted averages of Monday quotations for the month.
7
Average gross yields (before deduction of 38 basis points for mortgage
servicing) on accepted bids in Federal National Mortgage Association's
auctions of 4-month commitments to purchase home mortgages, assuming
prepayment in 12 years for 30-year mortgages. N o adjustments are made
for F N M A commitment fees or stock related requirements. Monthly
figures are unweighted averages for auctions conducted within the month.
8 Includes some multifamily and nonprofit hospital loan commitments
in addition to 1- to 4-family loan commitments accepted in FNMA's
free market auction system, and through the F N M A - G N M A Tandem
plans.
9
Mortgage amounts offered by bidders are total bids received.
10
Includes participations as well as whole loans.
11
Includes conventional and Government-underwritten loans.

Real Estate Debt

A41

1.54 MORTGAGE DEBT OUTSTANDING
Millions of dollars, end of period
1977
1973

Type of holder, and type of property

1 All holders
2
1- to 4-family
3
Multifamily
4
Commercial
5
Farm
6 Major financial institutions
7
Commercial banks1
8
1- to 4-family
9
Multifamily
10
Commercial
11
Farm
12
13
14
15
16

Mutual savings banks
1- to 4-family
Multifamily
Commercial
Farm

17
18
19
20

Savings and loan associations
1 - t o 4-family
Multifamily
Commercial

21
22
23
24
25

Life insurance companies
1- to 4-family
Multifamily
Commercial
Farm

26 Federal and related agencies
27
Government National Mortgage
28
1- to 4-family
29
Multifamily

Assn.

1974

1975

1978

1976
Q4

Ql

Q2

Q3*>

682,321
416,211
93,132
131,725
41,253

742,512
449,371
99,976
146,877
46,288

801,537
490,761
100,601
159,298
50,877

889,327
556,557
104,516
171,223
57,031

1,023,417
656,116
111,804
189,829
65,668

1,052,307
675,514
114,202
194,545
68,046

1,090,234
701,392
116,793
201,054
71,004

1,128,398
in,me
119,422
208,017
73,863

505,400
119,068
67,998
6,932
38,696
5,442

542,560
132,105
74,758
7,619
43,679
6,049

581,193
136,186
77,018
5,915
46,882
6,371

647,650
151,326
86,234
8,082
50,289
6,721

745,011
178,979
105,115
9,215
56,898
7,751

764,614
184,423
108,699
9,387
58,407
7,930

792,762
193,223
113,886
9,816
61,194
8,327

819,264
202,423
119,308
10,283
64,107
8,725

73,230
48,811
12,343
12,012
64

74,920
49,213
12,923
12,722
62

77,249
50,025
13,792
13,373
59

81,639
53,089
14,177
14,313
60

88,104
57,637
15,304
15,110
53

89,800
58,747
15,398
15,401
54

91,535
59,882
15,900
15,698
55

93,511
61,175
16,243
16,037
56

231,733
187,078
22,779
21,876

249,301
200,987
23,808
24,506

278,590
223,903
25,547
29,140

323,130
260,895
28,436
33,799

381,163
310,686
32,513
37,964

392,479
319,910
33,478
39,091

407,964
332,532
34,779
40,633

420,947
343,114
35,907
41,926

81,369
20,426
18,451
36,496
5,996

86,234
19,026
19,625
41,256
6,327

89,168
17,590
19,629
45,196
6,753

91,555
16,088
19,178
48,864
7,425

96,765
14,727
18,807
54,388
8,843

97,963
14,476
18,851
55,426
9,210

100,040
14,129
18,745
57,463
9,703

102,383
13,929
18,945
59,309
10,200

46,721
4,029
1,455
2,574

58,320
4,846
2,248
2,598

66,891
7,438
4,728
2,710

66,753
4,241
1,970
2,271

70,006
3,660
1,548
2,112

72,014
3,291
948
2,343

73,991
3,283
922
2,361

77,919
3,523
989
2,534

30
31
32
33
34

Farmers Home Admin
1- to 4-family
Multifamily
Commercial
Farm

1,366
743
29
218
376

1,432
759
167
156
350

1,109
208
215
190
496

1,064
454
218
72
320

1,353
626
275
149
303

1,179
202
408
218
351

618
124
102
104
288

668
135
110
112
311

35
36
37

Federal Housing and Veterans Admin.
1 - t o 4-family
Multifamily

3,476
2,013
1,463

4,015
2,009
2,006

4,970
1,990
2,980

5,150
1,676
3,474

5,212
1,627
3,585

5,219
1,585
3,634

5,225
1,543
3,682

5,295
1,565
3,730

38
39
40

Federal National Mortgage Assn...
1- to 4-family
Multifamily

24,175
20,370
3,805

29,578
23,778
5,800

31,824
25,813
6,011

32,904
26,934
5,970

34,369
28,504
5,865

36,029
30,208
5,821

38,753
32,974
5,779

41,189
35,437
5,752

41
42
43

Federal land banks
1- to 4-family
Farm

11,071
123
10,948

13,863
406
13,457

16,563
549
16,014

19,125
601
18,524

22,136
670
21,466

22,925
691
22,234

23,857
727
23,130

24,758
819
23,939

44
45
46

Federal Home Loan Mortgage
1 - t o 4-family
Multifamily

2,604
2,446
158

4,586
4,217
369

4,987
4,588
399

4,269
3,889
380

3,276
2,738
538

3,371
2,785
586

2,255
1,856
399

2,486
1,994
492

18,040
7,890
7,561
329

23,799
11,769
11,249
520

34,138
18,257
17,538
719

49,801
30,572
29,583
989

70,289
44,896
43,555
1,341

74,080
46,357
44,906
1,451

78,602
48,032
46,515
1,517

82,325
50,844
49,276
1,568

766
617
149

757
608
149

1,598
1,349
249

2,671
2,282
389

6,610
5,621
989

7,471
6,286
1,185

9,423
7,797
1,626

9,934
8,358
1,576

9,384
5,458
138
1,124
2,664

11,273
6,782
116
1,473
2,902

14,283
9,194
295
1,948
2,846

16,558
10,219
532
2,440
3,367

18,783
11,379
759
2,945
3,682

20,252
12,235
732
3,528
3,757

21,147
12,742
1,128
3,301
3,976

21,547
12,943
1,154
3,380
4,070

112,160
51 ,112
23,982
21,303
15,763

117,833
53,331
24,276
23,085
17,141

119,315
56,268
22,140
22,569
18,338

125,123
62,643
20,420
21,446
20,614

138,111
71,665
20,501
22,375
23,570

141,599
73,878
20,732
22,479
24,510

144,888
75,763
20,939
22,661
25,525

148,890
78,054
21,128
23,146
26,562

47 Mortgage pools or trusts 2
48
Government National Mortgage
49
1 - t o 4-family
50
Multifamily
51
52
53

Federal Home Loan Mortgage
1- to 4-family
Multifamily

54
55
56
57
58

Farmers Home Admin
1- to 4-family
Multifamily
Commercial
Farm

59 Individuals and others 3
60
1- to 4-family
61
Multifamily
62
Commercial
63
Farm

.

Corp.,

Assn.

Corp.

1 Includes loans held by nondeposit trust companies but not bank trust
departments.
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.




NOTE.—Based on data from various institutional and Govt, sources,
with some quarters estimated in part by Federal Reserve in conjunction
with the Federal Home Loan Bank Board and the Dept. of Commerce.
Separation of nonfarm mortgage debt by type of property, if not reported directly, and interpolations and extrapolations where required, are
estimated mainly by Federal Reserve. Multifamily debt refers to loans on
structures of 5 or more units.

A42

DomesticNonfinancialStatistics • December 1978

1.55 CONSUMER INSTALMENT CREDIT 1 Total Outstanding, and Net Change A
Millions of dollars
1978
Holder, and type of credit

1975

1976

1977
Apr.

May

June

July

Aug.

Sept.

Oct.

Amounts outstanding (end of period)
172,353

193,977

230,829

237,855

243,371

249,865

253,897

259,614

263,387

265,576

2
3
4
5
6
7
8

By major holder:
Commercial banks
Finance companies
Credit unions
Retailers 2
Savings and loans
Gasoline companies. ..
Mutual savings banks.

829,936
35,995
25,666
18,201
5,162
2,706
1,687

93,728
38,919
31,169
19,260
6,246
2,830
1,825

112,373
44,868
37,605
23,490
7,354
2,963
2,176

117,654
46,463
39,236
21,570
7,694
3,011
2,227

120,440
47,580
40,481
21,744
7,727
3,069
2,330

124,080
48,637
41,936
21,813
7,764
3,185
2,450

126,619
49,502
42,355
21,828
7,793
3,309
2,491

129,622
50,558
43,499
22,093
7,947
3,354
2,541

131,403
51,280
44,325
22,302
8,055
3,416
2,606

132,457
51,984
44,635
22,464
8,177
3,276
2,583

9
10
11
12
13
14

By major type of credit:
Automobile
Commercial banks. .
Indirect paper
Direct loans
Credit unions
Finance companies.,

57,242
33,287
19,332
13,955
12,741
11,214

67,707
39,621
22,072
17,549
15,238
12,848

82,911
49,577
27,379
22,198
18,099
15,235

87,747
52,619
29,317
23,302
18,808
16,320

90,359
54,078
30,169
23,909
19,357
16,924

93,261
55,754
31,128
24,626
20,054
17,453

95,289
57,071
31,907
25,164
20,254
17,964

97,687
58,453
32,667
25,786
20,801
18,433

99,062
59,085
33,067
26,018
21,196
18,781

100,159
59,778
33,415
26,363
21,344
19,037

15
16
17
18

Revolving
Commercial banks. .
Retailers
Gasoline companies.

15,019
12,313

17,189
14,359

2,706

2,830

39,274
18,374
17,937
2,963

38,426
19,055
16,360
3,011

38,967
19,378
16,520
3,069

40,001
20,135
16,681
3,185

40,553
20,566
16,678
3,309

41,629
21,314
16,961
3,354

42,420
21,935
17,069
3,416

42,579
22,165
17,138
3,276

19
20
21
22
23

Mobile home
Commercial banks.
Finance companies.
Savings and loans..
Credit unions

14,434
8,667
3,445
2,050
272

14,573
8,737
3,263
2,241
332

15,141
9,124
3,077
2,538
402

15,287
9,185
3,057
2,626
419

15,396
9,275
3,060
2,629
432

15,532
9,386
3,065
2,634
447

15,663
9,483
3,085
2,644
451

15,799
9,539
3,101
2,696
463

15,910
9,591
3,114
2,733
All

15,925
9,548
3,127
2,775
475

24
25
26
27
28
29
30

Other
Commercial banks
Finance companies
Credit unions
Retailers
Savings and loans
Mutual savings banks.

85,658
28,669
21,336
12,653
18,201
3,112
1,687

94,508
31,011
22,808
15,599
19,260
4,005
1,825

93,503
35,298
26,556
19,104
5,553
4,816
2,176

96,395
36,795
27,086
20,009
5,210
5,068
2,227

98,649
37,709
27,596
20,692
5,224
5,098
2,330

101,071
38,805
28,119
21,435
5,132
5,130
2,450

102,392
39,499
28,453
21,650
5,150
5,149
2,491

104,499
40,316
29,024
22,235
5,132
5,251
2,541

105,995
40,792
29,385
22,657
5,233
5,322
2,606

106,913
40,966
29,820
22,816
5,326
5,402
2,583

1 Total

Net change (during period) 3
7,765

21,647

35,278

4,106

4,280

4,207

3,466

3,632

3,680

3,123

32
33
34
35
36
37
38

By major holder:
Commercial banks
Finance companies
Credit unions
Retailers i
Savings and loans
Gasoline companies
Mutual savings banks

2,881
-82
3,766
87
829
104
180

10,792
2,946
5,503
1,059
1,085
124
138

18,645
5,948
6,436
2,654
1,111
132
352

2,447
879
670
58
115
-17
-46

2,260
861
849
135
67
22
86

2,387
624
797
234
57
20
88

2,100
671
513
144
10
-19
47

1,785
736
613
342
107
-1
50

1,714
847
639
328
94
9
49

1,388
863
644
115
105
16
-8

39
40
41
42
43
44

By major type of credit:
Automobile
Commercial banks
Indirect paper
Direct loans
Credit unions
Finance companies

2,976
513
-392
905
1,872
591

10,465
6,334
2,742
3,592
2,497
1,634

15,204
9,956
5,307
4,649
2,861
2,387

1,812
1,024
603
421
322
466

1,877
1,036
646
390
377
464

1,642
1,029
587
442
349
264

1,711
1,041
626
415
275
395

1,604
957
515
442
287
360

1,532
848
517
331
313
371

1,385
769
354
415
301
315

45
46
47
48

Revolving
Commercial banks
Retailers
Gasoline companies

1,340
1,236

2,170
2,046

104

124

6,248
4,015
2,101
132

683
587
113
-17

644
489
133
22

955
601
334
20

600
498
121
-19

737
358
380
-1

622
380
233
9

346
337
—7
16

49
50
51
52
53

Mobile home
Commercial banks
Finance companies
Savings and loans
Credit unions

-208
-330
-76
161
37

140
70
-182
192
60

565
387
-189
297
70

112
75
2
29
6

101
11
1
14
8

70
50
1
12
7

83
65
11
2
5

79
20
7
46
6

72
31
6
27
8

25
-25
-2
46
6

54
55
56
57
58
59
60

Other
Commercial banks
Finance companies
Credit unions
Retailers
Savings and loans
Mutual savings banks

3,657
1.462
-597
1,857
87
668
180

8,872
2,342
1,494
2,946
1,059
893
138

13,261
4,287
3,750
3,505
553
814
352

1,499
761
411
342
-55
86
-46

1,658
658
395
464
2
53
86

1,540
707
359
441
-100
45
88

1,072
496
265
233
23
8
47

1,212
450
369
320
-38
61
50

1,454
455
470
318
95
67
49

1,367
301
550
331
121
59
-8

31 Total

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
the2 option of repaying in two or more instalments).
Includes auto dealers and excludes 30-day charge credit held by
travel and entertainment companies.
3 Net change equals extensions minus liquidations (repayments, chargeoffs, and other credits); figures for all months are seasonally adjusted.




NOTE.—Total consumer noninstalment credit outstanding—credit
scheduled to be repaid in a lump sum, including single-payment loans,
charge accounts, and service credit—amounted to $58.2 billion at the end
of 1977, $55.0 billion at the end of 1976, $50.8 billion at the end of 1975,
and $48.4 billion at the end of 1974. Comparable data for Dec. 31, 1978
will be published in the February 1979 BULLETIN.
• Consumer instalment credit series have been revised from 1943,
effective Dec. 7, 1978. Information is available from Mortgage and
Consumer Finance Section, Division of Research and Statistics.

Consumer Debt
1.56 CONSUMER INSTALMENT CREDIT

A43

Extensions and LiquidationsA

Millions of dollars

Holder, and type of credit

1975

1976

1978

1977
Apr.

May

June

July

Aug.

Sept.

Extensions2
180,441

211,028

254,071

24,682

25,104

25,565

25,022

25,669

25,536

25,855

2
3
4
5
6
7
8

By major holder:
Commercial banks
Finance companies
Credit unions
Retailers i
Savings and loans
Gasoline companies...
Mutual savings banks.,

80,797
31,183
24,094
27 302
3,116
12,497
1,452

97,397
36,129
29,259
29,447
3,898
13,387
1,511

117,896
41,989
34,028
39,133
4,485
14,617
1,923

12,102
4,158
3,257
3,337
421
1,311
96

12,067
4,179
3,484
3,408
383
1,356
227

12,382
4,223
3,445
3,552
379
1,351
233

12,187
4,261
3,271
3,477
327
1,299
200

12,255
4,348
3,379
3,725
435
1,317
210

12,123
4,372
3,360
3,718
403
1,346
215

11,953
4,605
3,401
3,518
892
1,335
151

9
10
11
12
13
14

By major type of credit:
Automobile
Commercial banks..
Indirect paper
Direct loans
Credit unions
Finance companies..

52,420
30,095
16,578
13,517
12,683
9,642

63,743
37,886
20,576
17,310
14,688
11,169

75,641
46,363
25,149
21,214
16,616
12,662

7,434
4,511
2,502
2,009
1,596
1,327

7,592
4,547
2,550
1,997
1,680
1,365

7,595
4,541
2,505
2,036
1,667
1,387

7,652
4,639
2,554
2,085
1,629
1,384

7,744
4,660
2,562
2,098
1,632
1,452

7,542
4,479
2,519
1,960
1,641
1,422

7,511
4,355
2,384
1,971
1,643
1,513

15
16
17

36,956
24,459

43,934
30,547

18

Revolving
Commercial banks..
Retailers
Gasoline companies.

12,497

13,387

86,756
38,256
33,883
14,617

8,523
4,197
3,015
1,311

8,563
4,191
3,016
1,356

9,062
4,451
3,260
1,351

8,700
4,320
3,081
1,299

9,028
4,346
3,365
1,317

9,006
4,457
3,203
1,346

8,846
4,475
3,036
1,335

19
20
21
22
23

Mobile home
Commercial banks.
Finance companies.
Savings and loans..
Credit unions

4,328
2,625
767
815
121

4,859
3,064
702
929
164

5,425
3,466
643
1,120
196

529
336
72
103
18

527
346
69
92
20

510
327
73
90
20

509
335
78
78
18

531
310
75
127
19

494
297
77
100
20

604
352
73
154
25

24
25
26
27
28
29
30

Other
Commercial banks
Finance companies
Credit unions
Retailers
Savings and loans
Mutual savings banks.

86,737
23,618
20,774
11,290
27,302
2,301
1,452

98,492
25,900
24,258
14,407
29,447
2,969
1,511

86,249
29,811
28,684
17,216
5,250
3,365
1,923

8,196
3,058
2,759
1,643
322
318
96

8,422
2,983
2,745
1,784
392
291
227

8,398
3,063
2,763
1,758
292
289
233

8,161
2,893
2,799
1,624
396
249
200

8,366
2,939
2,821
1,728
360
308
210

8,495
2,890
2,873
1,699
515
303
215

8,894
2,771
3,019
1,733
482
738
151

22,732

1 Total

Liquidations2
31 Total.
32
33
34
35
36
37
38

By major holder:
Commercial banks
Finance companies
Credit unions
Retailers i
Savings and loans
Gasoline companies...
Mutual savings banks.

39
40
41
42
43
44

By major type of credit:
Automobile
Commercial banks..
Indirect paper
Direct loans
Credit unions
Finance companies..

45
46
47
48

Revolving
Commercial banks. .
Retailers
Gasoline companies.

49
50
51
52
53

Mobile home.
Commercial banks.
Finance companies.
Savings and loans..
Credit unions

54
55
56
57
58
59
60

Other
Commercial banks
Finance companies
Credit unions
Retailers
Savings and loans
Mutual savings banks.

172,676

189,381

218,793

20,576

20,824

21,358

21,556

22,037

21,857

77,916
31,265
20,328
27,215
2,287
12,393
1,272

86,605
33,183
23,756
28,388
2,813
13,263
1,373

99,251
36,041
27,592
36,479
3,374
14,485
1,571

9,655
3,279
2,587
3,279
306
1,328
142

9,807
3,318
2,635
3,273
316
1,334
141

9,995
3,599
2,648
3,318
322
1,331
145

10,087
3,590
2,758
3,333
317
1,318
153

10,470
3,612
2,766
3,383
328
1,318
160

10,409
3,525
2,721
3,390
309
1,337
166

49,444
29,582
16,970

60,437
36,407
19,842
16,565
13,755
10,275

5,622
1,899
1,588
1,274
861

5,715
3,511
1,904
1,607
1,303
901

5,953
3,512
1,918
1,594
1,318
1,123

5,941
3,598
1,928
1,670
1,354
989

6,140
3,703
2,047
1,656
1,345
1,092

6,010

10,811
9,051

53,278
31,552
17,834
13,718
12,191
9,535

35,616
23,223

41,764
28.501
13,263

7,840
3,610
2,902
1,328

7,919
3,702
2,883
1,334

8,107
3,850
2,926
1,331

8,100

12,393

80,508
34,241
31,782
14,485

3,822
2,960
1,318

8,291
3,988
2,985
1,318

8,384
4,077
2,970
1,337

4,536
2,955
843
654
84

4,719
2,994
884
737
104

4,860
3,079
832
823

126

417
261
70
74
12

426
269
67
78
12

440
277
72
78
13

426
270
67
76
13

452
290
68
81
13

422
266
71
73
12

83,080
22,156
21,371
9,433
27,215
1,633
1,272

89,620
23,558
22,764
11,461
28,388
2,076
1,373

72,988
25,524
24,934
13,711
4,697
2,551
1,571

6,697
2,297
2,348
1,301
377
232
142

6,764
2,325
2,350
1,320
390
238
141

6,858
2,356
2,404
1,317
392
244
145

7,089
2,397
2,534
1,391
373
241
153

7,154
2,489
2,452
1,408
398
247
160

7,041
2,435
2,403
1,381
420
236
166

12,612

1 Includes auto dealers and excludes 30-day charge credit held by
travel
and entertainment companies.
2
Monthly figures are seasonally adjusted.




3,487

3,631
2,002
1,629
1,328
1,051

A Consumer instalment credit series have been revised from 1943,
effective Dec. 7, 1978. Information is available from Mortgage and Consumer Finance Section, Division of Research and Statistics.

A44

DomesticNonfinancialStatistics • December 1978

1.57 FUNDS RAISED IN U.S. CREDIT MARKETS
Billions of dollars; quarterly data are at seasonally adjusted annual rates.

Transaction category, or sector

1973

1974

1975
1975

1976

1976

1977

1977
HI

H2

1978

HI

H2

HI

H2

HI

Nonfinancial sectors
203.8
1 Total funds raised
2
196.1
By sector and instrument:
8.3
3
7.9
4
Public debt securities
.4
Agency issues and mortgages
5
195.5
6
A11 other nonfinancial sectors
7.7
7
Corporate equities
187.9
X
Debt instruments
9
Private domestic nonfinancial sectors. . 189.3
7.9
10
Corporate equities
181.4
11
Debt instruments
105.0
12
Debt capital instruments
14.7
13
State and local obligations....
9.2
14
Corporate bonds
Mortgages:
46.4
15
Home
10.4
16
Multifamily residential
18.9
17
Commercial
5.5
18
Farm
76.4
19
Other debt instruments
20
23.8
Consumer credit
21
39.8
Bank loans n.e.c
22
2.5
Open market paper
10.3
23
Other
24
25
26
27
28
29
30
31
32
33
34
35
36

By borrowing sector
State and local governments
Households
Farm
Nonfarm noncorporate
Corporate
Foreign
Corporate equities
Debt instruments
Bonds
Bank loans n.e.c
Open market paper
U.S. Government loans

188.8
184.9

208.1
198.0

272.5
261.7

340.5
337.4

177.5
167.0

238.9
229.2

259.6
245.9

285.6
277.5

302.2
301.0

378.9
373.8

371.4
371.3

11.8
12.0
-.2
177.0
3.8
173.1
161.6
4.1
157.5
98.0
16.5
19.7

85.4
85.8
-.4
122.7
10.1
112.6
109.5
9.9
99.6
97.8
15.6
27.2

69.0
69.1
-.1
203.5
10.8
192.6
182.8
10.5
172.3
126.8
19.0
22.8

56.8
57.6
-.9
283.8
3.1
280.6
271.4
2.7
268.7
181.1
29.2
21.0

78.3
79.1
-.8
99.2
10.5
88.7
89.1
10.3
78.8
93.7
11.1
34.5

92.5
92.6
—. 1
146.4
9.7
136.6
130.0
9.5
120.5
101.9
20.0
19.9

73.5
73.4
.1
186.0
13.6
172.4
168.5
13.3
155.2
117.8
19.3
22.2

64.5
64.9
-.3
221.0
8.1
213.0
197.2
7.7
189.5
135.9
18.7
23.5

42.6
43.1
-.6
259.6
1.2
258.5
252.1
.5
251.6
163.4
29.3
16.0

71.0
72.2
-1.2
307.9
5.1
302.8
290.7
4.9
285.8
198.9
29.0
26.0

58.8
59.7
-.9
312.6
.1
312.5
298.8
.9
297.9
182.7
29.0
18.4

34.8
6.9
15.1
5.0
59.6
10.2
29.0
6.6
13.7

39.5
11.0
4.6
1.8
9.4
-14.0
-2.6
9.0

63.7
1.8
13.4
6.1
45.5
23.6
3.5
4.0
14.4

96.4
7.4
18.4
8.8
87.6
35.0
30.6
2.9
19.0

33.9
.1
9.1
5.1
-14.9
2.2
-23.7
-1.9
8.5

45.1
—. 1
12.9
4.1
18.6
16.6
-4.3
-3.2
9.5

56.9
.6
13.8
4.9
37.4
22.9
-2.7
5.6
11.6

70.5
3.1
12.9
7.3
53.6
24.3
9.6
2.4
17.3

88.5
6.4
14.2
8.9
88.2
35.7
34.0
3.5
15.0

104.2
8.4
22.6
8.7
86.9
34.4
27.2
2.4
23.0

91.4
9.7
24.5
9.8
115.2
44.8
47.1
5.2
18.1

189.3
13.2
80.9
9.7
12.8
72.7

161.6
15.5
49.2
7.9
7.4
81.8

109.5
13.2
48.6
8.7
2.0
37.0

182.8
18.5
89.9
11.0
5.2
58.2

271.4
25.9
139.6
14.7
12.6
78.7

89.1
8.8
37.1
8.5
-1.0
35.8

130.0
17.5
60.2
9.0
5.1
38.2

168.5
17.6
82.7
9.9
4.0
54.3

197.2
19.5
97.1
12.1
6.4
62.2

252.1
22.7
131.2
15.5
12.8
69.8

290.7
29.0
148.0
13.8
12.3
87.6

298.8
22.1
147.7
15.8
20.7
92.5

6.2
-.2
6.4
1.0
2.8
.9
1.7

15.3
-.2
15.6
2.1
4.7
7.3
1.5

13.2
.2
13.0
6.2
3.7
.3
2.8

20.7
.3
20.4
8.5
6.6
1.9
3.3

12.3
.4
11.9
5.0
1.6
2.4
3.0

10.0
.1
9.9
5.7
1.6
-.8
3.4

16.4
.2
16.2
6.8
5.9
1.4
2.2

17.5
.3
17.2
7.4
5.4
1.5
2.9

23.8
.3
23.5
9.7
7.9
2.4
3.6

7.5
.6
6.9
4.4
-3.2
2.7
3.1

17.2
.2
17.0
5.6
6.4
2.2
2.9

13.8
-.8
14.6
4.9
2.9
3.6
3.2

*

Financial sectors
37 Total funds raised
By instrument:
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
Bank loans n.e.c
47
Open market paper and Rp's
48
49
Loans from FHLB's
50
51
52
53
54
55
56
57
58
59
60

By sector:
Sponsored credit agencies
Mortgage pools
Private financial sectors
Commercial banks
Bank affiliates
Savings and loan associations
Other insurance companies
Finance companies
REIT's
Open-end investment companies
Money market funds

57.6

36.4

11.7

29.2

58.8

12.4

10.9

27.9

30.5

61.5

56.2

101.5

19.9
16.3
3.6

23.1
16.6
5.8
.7
13.3
.3
13.0
2.1
-1.3
4.6
.9
6.7

13.5
2.3
10.3
.9
-1.9
.6
-2.5
2.9
2.3
-3.6
—. 1
-4.0

18.6
3.3
15.7
-.4
10.6
1.0
9.6
5.8
2.1
-3.7
7.3
-2.0

26.3
7.0
20.5
-1.2
32.6
.6
32.0
10.1
3.1

12.9
3.1
9.2
.6
-2.0
.6
-2.6
4.0
3.1
-2.9
-5.4
-1.4

18.2
4.1
14.2

25.0
9.5
17.9
-2.3
36.5
.5
36.0
10.1
3.3
-2.3
21.4
3.4

40.1
24.1
16.0

9.7
-.2
10.0
6.4
1.5
-2.6
6.2
-1.5

19.0
2.6
17.2
- .7
11.5
2.3
9.2
5.2
2.7
-4.8
8.5
-2.5

27.5
4.4
23.1

14.4
4.3

14.2
1.6
11.5
1.1
-1.8
.6
-2.4
1.9
1.4
-4.3
5.1
-6.5

28.7
.7
28.0
10.1
2.9
2.3
7.4
5.2

61.4
1.1
60.3
8.5
2.4
.4
35.0
14.1

36.4
17.3
5.8
13.3
-5.6
3.5
6.3
.9
6.0
.6
-.7
2.4

11.7
3.2
10.3
-1.9
-1.4
.3
-2.2
1.0
.6
-1.4
-.1
1.3

29.2
2.9
15.7
10.6
7.5
-.8

58.8
5.8
20.5
32.6
4.8
1.3
11.9
.9
16.9
-2.4
-1.0
.2

12.4
2.7
11.5
-1.8
3.9
.9
-7.2
.9
-2.2
-1.5
.8
2.6

10.9
3.8
9.2
-2.0
-6.7
-.3
2.7
1.0
3.4
-1.2
-1.0
.1

27.9
4.0
14.2
9.7
9.0
-1.3
.1
.9
6.0
-2.1
-2.4
-.5

30.5
1.8
17.2
11.5
6.0
-.3
-.1
.9
6.9
-2.7
.4
.5

61.5
7.1
17.9
36.5
10.0
1.3
10.6
.9
17.4
-2.5
-.8
-.5

56.2
4.4
23.1
28.7
- A
1.2
13.1
1.0
16.4
-2.2
-1.2
.9

101.5
24.1
16.0
61.4
12.2
5.8
19.6
1.0
18.7
-1.2
-.6
5.9

287.5
-2.4
15.8
274.1
91.9
19.3
36.1
77.7
22.9
1
13'.3
12.9

316.0
.4
9.9
305.7
84.3
18.7
38.4
96.4
24.3
12.6
13.3
17.7

363.7
-.8
2.5
362.0
70.0
29.3
30.5
121.2
35.7
28.4
27.6
19.2

435.0
-1.2
7.0
429.2
98.6
29.0
41.7
146.7
34.4
35.9
11.9
31.0

472.9
-.6
1.7
471.7
99.0
29.0
31.8
137.6
44.8
50.4
43.7
35.4

37.7
1.5
36.2
3.5
-1.2
8.9
17.8
7.2
57.6
16.3
3.6
37.7
14.1
2.2
6.0
.5
9.4
6.5
-1.2

*

.9
6.4
-2.4
-1.0
*

*

*

All sectors
61 Total funds raised, by instrument
62
Investment company shares
63
Other corporate equities
64
Debt instruments
U.S. Government securities
65
66
State and local obligations
67
Corporate and foreign bonds
68
Mortgages
69
Consumer credit
70
Bank loans n.e.c
71
Open market paper and Rp's
72
Other loans




261.4
-1.2
10.4
252.3
28.3
14.7
13.6
79.9
23.8
51.6
21.2
19.1

225.1
-.7
4.8
221.0
34.3
16.5
23.9
60.5
10.2
38.3
14.8
22.6

219.8
-.1
10.8
209.1
98.2
15.6
36.4
57.2
9.4
-13.9
-2.4
8.7

301.7
-1.0
12.9
289.8
88.1
19.0
37.2
87.1
23.6
6.4
13.3
15.3

399.4
-1.0
4.8
395.6
84.3
29.2
36.1
134.0
35.0
32.2
19.8
25.1

189.8
.8
10.3
178.8
91.5
11.1
42.1
49.4
2.2
-26.4
2.4
6.5

249.8
-1.0
11.3
239.5
104.9
20.0
30.7
65.0
16.6
-1.3
-7.3
10.9

Flow of Funds

A45

1.58 DIRECT AND INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS
Billions of dollars, except as noted; quarterly data are at seasonally adjusted annual rates.
1975
1973

Transaction category, or sector

1 Total funds advanced in credit markets to
nonfinancial sectors

1974

1975

1976

1977

1976

1978

1977
HI

H2

HI

H2

HI

H2

HI

196.1

184.9

198.0

261.7

337.4

167.0

229.2

245.9

277.5

301.0

373.8

371.3

34.1
9.5
8.2
7.2
9.2

52.6
11.9
14.7
6.7
19.4

44.3
22.5
16.2
-4.0
9.5

54.5
26.8
12.8
-2.0
16.9

85.4
40.2
20.4
4.3
20.5

51.9
31.2
16.8
-6.5
10.4

36.7
13.7
15.7
-1.4
8.7

49.7
24.4
11.8
-1.5
15.0

59.3
29.3
13.7
-2.5
18.8

69.3
21.2
20.0
3.4
18.6

101.6
53.2
20.9
5.2
22.4

102.9
42.6
22.9
14.1
23.4

2.8
21.4
9.2
.6
19.9

9.7
25.6
6.2
11.2
23.1

15.1
14.5
8.5
6.1
13.5

8.9
20.6
9.8
15.2
18.6

11.8
26.9
7.1
39.5
26.3

15.8
16.0
7.0
13.0
14.2

14.3
13.1
10.1
-.8
12.9

6.3
20.0
13.7
9.7
18.2

11.5
21.2
6.0
20.6
19.0

6.1
26.7
10.2
26.4
25.0

17.6
27.2
4.1
52.7
27.5

19.2
44.3
12.9
26.5
40.1

182.0
18.8
14.7
10.0
48.4
97.2
7.2

155.3
22.4
16.5
20.9
26.9
75.4
6.7

167.3
75.7
15.6
32.8
23.2
16.1
-4.0

225.7
61.3
19.0
30.5
52.7
60.4
-2.0

278.2
44.1
29.2
22.3
83.2
103.7
4.3

129.3
60.2
11.1
40.0
17.1
-5.7
-6.5

205.4
91.2
20.0
25.6
29.2
37.9
-1.4

214.4
67.5
19.3
28.6
45.6
51.9
-1.5

237.1
55.1
18.7
32.3
59.7
68.9
-2.5

256.8
42.8
29.3
17.2
74.9
96.0
3.4

299.7
45.4
29.0
27.3
91.6
111.5
5.2

308.5
56.4
29.0
21.7
78.0
137.4
14.1

165.4
86.5
36.9
23.9
18.0

126.2
64.5
26.9
30.0
4.7

119.9
27.6
52.0
41.5
-1.1

191.2
58.0
71.4
51.7
10.1

249.6
85.8
84.8
62.0
16.9

101.2
14.8
49.3
38.1
-.9

138.7
40.5
54.6
44.9
-1.3

174.4
46.6
70.5
53.2
4.2

207.9
69.4
72.4
50.2
15.9

241.1
81.1
85.3
60.3
14.5

258.0
90.5
84.3
63.7
19.4

279.8
115.8
11A
69.3
17.7

24 Sources of funds
25
Private domestic deposits
26
Credit market borrowing

165.4
86.6
36.2

126.2
69.4
13.0

119.9
90.6
-2.5

191.2
121.5
9.6

249.6
136.0
32.0

101.2
89.9
-2.4

138.7
91.3
-2.6

174.4
108.3
10.0

207.9
134.6
9.2

241.1
127.0
36.0

258.0
145.0
28.0

279.8
119.4
60.3

27
28
29
30
31

42.5
5.8
-1.0
18.4
19.4

43.8
16.8
-5.1
26.0
6.0

31.9
.9
-1.7
29.6
3.1

60.1
5.1
—. 1
34.8
20.3

81.6
11.6
4.3
48.0
17.8

13.7
-.5
-3.8
21A
-9.4

50.0
2.4
.4
31.7
15.6

56.1
.1
2.3
35.8
17.2

64.1
9.5
-2.5
33.8
23.4

78.2
.1
-1.8
45.5
33.7

85.1
22.4
10.4
50.4
1.9

100.1
2.1
-.8
55.4
43.4

Private domestic nonfinancial investors
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

52.8
19.2
5.4
1.3
18.3
8.6

42.2
17.5
9.3
4.7
2.4
8.2

44.9
23.0
8.3
8.0
-.8
6.4

44.1
19.6
6.8
2.1
4.1
11.5

60.6
24.6
9.1
1.1
9.5
16.2

25.7
6.0
5.8
10.7
-1.8
4.9

64.1
39.9
10.8
5.3
.2
7.8

50.0
25.0
7.6
2.9
4.8
9.7

38.4
14.1
6.0
1.3
3.4
13.5

51.6
14.1
8.2
.4
13.0
15.9

69.6
35.2
10.1
1.8
6.0
16.5

89.0
35.8
11.6
-2.5
28.6
17.6

39
40
41
42

90.6
76.1
18.1
29.6
28.5

75.7
66.7
18.8
26.1
21.8

96.8
84.8
-14.1
39.4
59.4

128.8
112.2
-14.4
58.1
68.5

144.3
120.1
9.3
41.7
69.1

96.4
75.6
-27.8
40.5
62.9

97.2
93.9
-.3
38.2
56.0

114.3
99.5
-19.8
52.0
67.3

143.3
125.0
-9.1
64.3
69.8

132.6
110.5
-4.4
45.3
69.6

156.0
129.7
22.9
38.2
68.7

129.5
110.9
11.5
44.5
54.9

14.4
10.5
3.9

8.9
2.6
6.3

12.0
5.8
6.2

16.6
9.3
7.3

24.2
15.9
8.3

20.8
14.3
6.5

3.3
-2.6
5.9

14.8
8.9
6.0

18.3
9.-6
8.6

22.1
16.5
5.6

26.3
15.3
11.0

18.6
8.5
10.1

143.4

218.5

2
3
4
5
6
7
8
9
10
11

By public agencies and foreign:
Total net advances
U.S. Government securities
Residential mortgages
FHLB advances to S&L's
Other loans and securities
Totals advanced, by sector
U.S. Government
Sponsored credit agencies
Monetary authorities
Foreign
Agency borrowing not included in line 1 . .
Private domestic funds advanced

13
14
15
16
17
18

19
20
21
22
23

44

U.S. Government securities
State and local obligations
Corporate and foreign bonds
Residential mortgages
Other mortgages and loans
LESS : F H L B a d v a n c e s

Private financial intermediation
Credit market funds advanced by
financial institutions
Commercial banking
Savings institutions
Insurance and pension funds
Other finance

private

Other sources
Foreign funds
Treasury balances
Insurance and pension reserves
Other, net

Time and savings accounts
Large negotiable CD's
Other at commercial banks
At savings institutions
Demand deposits

46 Total of credit market instruments, deposits and currency

117.8

141.6

204.9

122.1

161.3

164.3

181.6

184.2

225.6

Public support rate (in per cent)
Private financial intermediation (in per
cent)
Total foreign funds

17.4

28.5

22.4

20.8

25.3

31.1

16.0

20.2

21.4

23.0

27.2

27.7

90.9
6.4

81.3
28.0

71.7
7.1

84.7
20.3

89.7
51.1

78.3
12.5

67.5
1.6

81.3
10.4

87.7
30.1

93.9
27.1

86.1
75.1

90.7
28.5

MEMO: Corporate equities not included
above
50 Total net issues
51
Mutual fund shares
52
Other equities
53 Acquisitions by financial institutions
54 Other net purchases

9.2
-1.2
10.4
13.3
-4.1

4.1
-.7
4.8
5.8
-1.6

10.7
-.1
10.8
9.7
1.0

11.9
-1.0
12.9
12.5
-.7

3.8
-1.0
4.8
6.2
-2.4

11.1
.8
10.3
11.5
-.4

10.3
-1.0
11.3
7.8
2.5

13.4
-2.4
15.8
13.1
.3

10.4
.4
9.9
12.0
-1.6

1.7
-.8
2.5
6.1
-4.4

5.8
-1.2
7.0
6.3
-.5

1.1
-.6
1.7
1.6
-.5

47
48
49

NOTES BY LINE NUMBER.

1.
2.
6.
11.
12.
17.
25.
26.
28.

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, and 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, and 44.
Includes farm and commercial mortgages.
Sum of lines 39 and 44.
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.




111.9

29. Demand deposits at commercial banks.
30. Excludes net investment of these reserves in corporate equities.
31. Mainly retained earnings and net miscellaneous liabilities.
32. Line 12 less line 19 plus line 26.
33-37. Lines 13-17 less amounts acquired by private finance. Line 37
includes mortgages.
45. Mainly an offset to line 9.
46. Lines 32 plus 38, or line 12 less line 27 plus line 45.
47. Line 2/line 1.
48. Line 19/line 12.
49. Sum of lines 10 and 28.
50. 52. Includes issues by financial institutions.
NOTE.—Full statements for sectors and transaction types quarterly,
and annually for flows and for amounts outstanding, may be obtained
from Flow of Funds Section, Division of Research and Statistics, Board
of Governors of the Federal Reserve System, Washington, D.C. 20551.

A46

Domestic Nonfinancial Statistics • December 1978

2.10 NONFINANCIAL BUSINESS ACTIVITY

Selected Measures

1967 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted.
1978
1975

Measure

1977

1976

Apr.

May

June

July

Aug. r

Sept. r

Oct. r

117.8

129.8

137.0

143.2

143.9

144.9

146.1

147.1

147.7

148.5

2
3
4
5
6
7

Market groupings:
Products, total
Final, total
Consumer goods
Equipment
Intermediate
Materials

119.3
118.2
124.0
110.2
123.1
115.5

129.3
127.2
136.2
114.6
137.2
130.6

137.1
134.9
143.4
123.2
145.1
136.9

143.0
140.5
147.5
130.8
152.1
143.7

143.1
140.5
147.0
131.6
152.6
145.1

144.0
141.1
147.0
133.0
154.7
146.4

145.0
142.2
147.7
134.7
155.6
147.9

146.2
143.3
148.4
136.3
156.4
148.6

146.6
143.8
148.9
136.7
156.8
149.5

147.3
144.5
149.8
137.2
157.4
150.5

8

Industry groupings:
Manufacturing

116.3

129.5

137.1

143.5

144.3

145.5

146.7

147.6

148.5

149.3

73.6
73.6

80.2
80.4

82.4
81.9

83.7
84.0

83.9
84.5

84.3
85.1

84.7
85.7

85.0
85.9

85.2
86.2

85.4
86.6

1

Capacity utilization (per cent) 1
9
Manufacturing
10
Industrial materials industries
11 Construction contracts 2

162.3

190.2

253.0

279.0

332.0

249.0

286.0

289.0

300.0

319.0

12 Nonagricultural employment, total3
13
Goods-producing, total
14
Manufacturing, total
15
Manufacturing, production-worker
16
Service-producing

117.0
97.0
94.2
91.2
127.9

120.7
100.4
97.7
95.3
131.9

125.0
104.2
101.0
98.6
136.4

129.8
108.6
104.3
102.0
141.5

130.1
108.7
104.4
102.1
141.9

130.7
109.3
104.5
102.0
142.5

130.8
109.4
104.4
101.8
142.5

130.9
109.2
104.3
101.6
142.8

131.0
109.3
104.3
101.6
142.9

131.6
110.1
105.1
101.8
143.4

17 Personal income, total 4
Wages and salary disbursements
18
19
Manufacturing

200.4
188.5
157.3

220.4
208.2
177.1

244.0
230.1
198.6

266.4
253.5
219.5

268.4
254.6
220.7

270.6
256.9
222.3

274.3
259.2
224.9

276.1
260.0
224.5

278.2
261.9
226.5

281.6
265.6
229.5

20 Disnosahle nersnnal incnme

199.6

217.5

239.3

21 Retail sales 5

184.6

203.5

224.4

244.8

245.4

246.3

244.9

251.7

253.5

256.9

Prices: 6
22
Consumer 7
23
Producer finished goods 8

161.2
163.4

170.5
170.3

'181.5
180.6

191.5
191.5

193.3
193.1

195.3
194.5

196.7
'196.0

197.8
195.3

199.3
196.9

200.9
199.7

1
Ratios of indexes of production to indexes of capacity. Based on data
from Federal Reserve, McGraw-Hill Economics Department, and Department of Commerce.
2
Index of dollar value of total construction contracts, including
residential, nonresidential, and heavy engineering, from McGraw-Hill
Informations Systems Company, F. W. Dodge Division.
3 The establishment survey data in this table have been revised to conform to the industry definitions of the 1972 Standard Industrial Classification (SIC) Manual and to reflect employment benchmark levels for
March 1977. In addition, seasonal factors for these data have been
revised, based on experience through May 1978. Based on data in Employment and Earnings (U.S. Dept. of Labor). Series covers employees
only, excluding personnel in the Armed Forces.
4
Based on data in Survey of Current Business U.S. Dept. of Commerce). Series for disposable income is quarterly.

265.5

267.5

5 Based on Bureau of Census data published in Survey of Current
Business (U.S. Dept. of Commerce)
6
Data without seasonal adjustment, as published in Monthly Labor
Review (U.S. Dept. of Labor). Seasonally adjusted data for changes in
the price indexes may be obtained from the Bureau of Labor Statistics,
U.S. Dept. of Labor.
7 Beginning Jan. 1978, based on new index for all urban consumers.
8 Beginning with the November 1978 BULLETIN, producer price data
in this table have been changed to the BLS series for producer finished
goods. The previous data were producer prices for all commodities.
NOTE.—Basic data (not index numbers) for series mentioned in notes
3, 4, and 5, and indexes for series mentioned in notes 2 and 6 may also be
found in the Survey of Current Business (U.S. Dept. of Commerce).
Figures for industrial production for the last 2 months are preliminary
and estimated, respectively.

2.11 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION
Seasonally adjusted
1977

1977

1978

1977

1978

1978

Series

Q1

Q4

Q3r

Q2

Output (1967 = 100)

Q4

Q1

Q2

Q3

Capacity (per cent of 1967 output)

Q4

Q1

Q2

Q3r

Utilization rate (per cent)

1 Manufacturing

139.9

139.8

144.4

147.6

168.7

170.3

172.0

173.7

82.9

82.1

84.0

85.0

2
3

148.2
135.6

148.2
135.4

154.1
139.3

158.1
142.0

175.1
165.3

176.8
166.9

178.5
168.5

180.2
170.2

84.6
82.0

83.8
81.1

86.3
82.7

87.7
83.5

138.9

139.2

145.1

148.7

168.9

170.4

171.7

173.0

82.2

81.7

84.5

85.9

137.7
109.4
155.0
159.5
117.9
132.3
188.9
121.9

137.9
110.5
158.0
163.1
115.3
136.5
194.9
119.1

144.0
117.5
163.2
167.7
117.1
139.7
201.4
125.5

150.3
124.4
163.0
168.2
116.8
134.6
204.2
127.1

172.8
145.5
180.4
188.9
143.0
152.5
223.6
145.7

174.0
145.8
182.3
190.8
143.5
153.6
226.6
147.2

175.2
146.1
184.4
193.1
144.1
154.8
230.1
147.8

176.3
146.5
186.5
195.4
144.7
155.8
233.5
148.4

79.6
75.2
85.9
84.5
82.4
86.7
85.4
83.7

79.3
75.8
86.7
85.5
80.3
88.9
86.0
80.9

82.2
80.4
88.5
86.8
81.2
90.3
87.5
84.9

85.3
84.9
87.4
86.1
80.7
86.4
87.5
85.6

Primary processing
Advanced processing

4 Materials
5
6
7
8
9
10
11
12

Durable goods
Basic metal
Nondurable goods
Textile, paper, and chemical
Textile
Paper
Chemical
Energy




Labor

Market

A47

2.12 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT
Thousands of persons; monthly data are seasonally adjusted. Exceptions noted.
1978
1975

Category

1976

1977
May

June

July

Aug.

Sept.

Oct.

Nov.

Household survey data
1 Noninstitutional population

1

2 Labor force 1(including Armed
Forces)
3 Civilian labor force
Employment:
4
Nonagricultural industries 2
5
Agriculture
Unemployment:
6
Number
7
Rate (per cent of civilian labor
force)
8 Not in labor force

153,449

156,048

158,559

160,713

160,928

161,148

161,348

161,570

161,829

162,033

94,793
92,613

96,917
94,773

99,534
97,401

102,374
100,261

102,671
100,573

102,734
100,618

'102,672
'100,550

102,993
100,870

103,184
101,062

103,764
101,647

81,403
3,380

84,188
3,297

87,302
3,244

90,877
3,235

91,346
3,473

91,038
3,387

91,221
3,360

91,457
3,411

'91,811
3,380

92,470
3,265

7,830

7,288

6,855

6,149

5,754

6,193

5,968

6,002

5,870

5,912

8.5

7.7

7.0

6.1

5.7

6.2

5.9

6.0

5.8

5.8

58,655

59,130

59,025

58,340

58,257

58,414

58,577

58,645

58,269

'86,163
'20,286
'887
'4,298
4,855
'19,546
'4,719
'16,127
'15,445

86,567
20,432
894
4,338
4,920
19,640
4,737
16,149
15,457

P87,034
p20,594
p
904
p
4,380
*>4,946
P19,705
p
4,759
*>16,245
p
15,501

Establishment survey data 4
9 Nonagricultural payroll employment3
10
Manufacturing
11
Mining
12 Contract construction
13 Transportation and public utilities.
14 Trade
15
Finance
16
Service
17
Government

76,945
18,323
r
752
r
3,525
4,542
'17,060
4,165
13,892
r
14,686

79,382
18,997
779
3,576
4,582
r
17,755
4,271
'14,551
r
14,871

82,256
19,647
809
r
3,833
'4,696
'18,492
4,452
'15,249
'15,079

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
and2 Earnings (U.S. Dept. of Labor).
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,




85,618
20,297
869
4,175
4,847
19,335
4,637
15,896
15,562

85,996
20,316
879
4,278
4,881
19,412
4,670
15,963
15,597

86,033
20,302
882
4,317
4,827
19,469
4,690
15,989
15,557

86,149
20,278
887
4,298
4,846
19,523
4,707
16,074
15,536

unpaid family workers, and members of the Armed Forces. Data are
adjusted to the February 1977 benchmark. Based on data from Employment
and Earnings (U.S. Dept. of Labor).
4
The establishment survey data in this table have been revised to
conform to the industry definitions of the 1972 Standard Industrial
Classification (SIC) Manual and to reflect employment benchmark
levels for March 1977. In addition, seasonal factors for these data have
been revised, based on experience through May 1978.

A48

Domestic Nonfinancial Statistics • December 1978

2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value
Monthly data are seasonally adjusted.

Grouping

1967
proportion

1977
1977
average

Sept.

Oct.

1978
Nov.

Apr.

May

June

July

Aug. r

Sept.

Oct.p

Nov.*

Index (1967 == 100)
MAJOR MARKET
100.00 137.1 138.5 138.9 139.3 143.2 143.9 144.9 146.1 147.1 147.7 148.5 149.5

1 Total index.
2 Products
3
Final products
4
Consumer goods
5
Equipment
6
Intermediate products.
7 Materials
Consumer goods
Durable consumer goods
Automotive products
Autos and utility vehicles
Autos
Auto parts and allied goods.

8
9
0
1
2
13
14
15
16
17

Home goods
Appliances, A/C, and T V . . .
Appliances and TV
Carpeting and furniture
Miscellaneous home goods.

18
19
20
21

Nondurable consumer goods
Clothing
Consumer staples
Consumer foods and tobacco.

22
23
24
25
26

Nonfood staples
Consumer chemical products.
Consumer paper products
Consumer energy products . . .
Residential utilities

27
28
29
30
31

Equipment
Business equipment
Industrial equipment
Building and mining equipment.
Manufacturing equipment
Power equipment

32
33
34
35

Commercial transit, farm equipment.
Commercial equipment
Transit equipment
Farm equipment

60.71 137.1 138.8
47.82 134.9 136.8
27.68 143.4 144.9
20.14 123.2 125.6
12.89 145.1 146.5
39.29 136.9 137.9

5.06 141.3 143.6 144.2 145.0 149.2 148.9
1.40 127.3 129.4 128.6 131.4 142.2 138.3
1.33 130.5 134.1 131.6 133.0 144.7 140.7
1.07 152.2 159.0 160.5 160.0 158.9 163.4
2.59 144.3 144.9 145.8 146.3 149.0 148.8

150.0
134.4
136.9
168.8
150.8

149.0 148.1
130.8 127.6
131.9
169.0
150.7 150.6

19.79
4.29
15.50
8.33
7.17
2.63
1.92
2.62
1.45

139.6 140.7 140.1
125.2 128.3 128.0
143.6 144.1 143.5
135.5 137.1 135.2
152.9
180.5
117.1
151.4
159.0

5.86 161.6
3.26 191.6
1.93 117.8
.67 142.3

6.42
6.47
1.14

140.8
149.5
164.6

45
46
47
48
49

Nondurable goods materials
Textile, paper, and chemical materials.
Textile materials
Paper materials
Chemical materials

50
51
52
53
54

Containers, nondurable. . . .
Nondurable materials n.e.c..
Energy materials
Primary energy
Converted fuel materials. . .

55
56
57
58

Supplementary groups
Home goods and clothing.
Energy, total
Products
Materials

For NOTE see opposite page.




152.4
182.5
116.4
148.6
153.8

153.4 155.1
183.7 186.9
117.6 118.5
149.1 149.9
155.8 155.6

164.4 165.1
193.7 195.4
125.1 123.3
134.9 142.1

153.3 153.4 154.8 155.5
182.5 182.0 185.5 186.7
117.7 117.9 118.0 117.5
149.9 150.7 150.8 151.9
159.0 157.2 159.0 159.9

83.6

143.2 144.9 146.5
149.7 150.5 150.1
162.7 163.0 160.9

148.5
155.6
163.5

150.4
155.0
162.7

20.35 134.5 135.7 137.1
4.58 132.0 135.8 135.4
5.44 143.1 146.8 147.6
10.34 131.1 129.8 132.4
5.57 110.9 106.8 110.0

155.9
188.0
117.3
152.0
160.1

157.2
189.1
119.2
153.1
161.0

158.3
190.1
121.1
153.6

159.4

165.9 172.6 172.3 174.4 177.5 179.9 180.8 182.0 183.8
197.4 203.8 204.2 206.9 210.6 212.2 214.1 214.5 216.5
118.9 133.7 132.2 132.3 134.9 138.5 138.3 140.9 141.7
147.8 132.9 131.9 137.3 138.5 141.3 142.0 143.0
82.9

78.9

150.0
133.9
135.6
167.9
151.3

160.2 161.8 163.8 165.4 166.0 166.9 168.1
149.7 150.9 151.9 152.8 153.1 153.6 154.3
226.0 227.3 228.9 228.1 226.9 226.4 227.0
121.3 122.8 122.6 123.9 124.7 125.8 126.5
149.2 149.2 152.8 154.6 155.1 155.1 155.9

79.3

80.9

149.7 148.9
139.0 133.7
141.0 136.8
166.0 168.5
148.8 149.1

141.2 141.8 141.7 141.6 142.4 143.1 144.3 144.7 145.6
126.4 124.9 125.4 124.8 125.1 126.6 128.9
145.3 146.6 146.2 146.3 147.3 147.8 148.7 149.1 150.1
136.7 140.8 139.9 139.0 140.2 140.8 141.4 141.1

12.63 149.2 152.1 152.6 153.5 159.3
6.77 138.5 141.4 141.8 142.6 147.8
1.44 202.5 204.5 205.7 206.7 225.1
3.85 113.9 117.6 118.5 118.7 119.0
1.47 140.2 141.4 139.8 142.1 147.3

79.6

Materials
Durable goods materials. ..
Durable consumer parts.
Equipment parts
Durable materials n.e.c..
Basic metal materials.

146.6 147.3 148.2
143.8 144.5 145.3
148.9 149.8 150.6
136.7 137.2 137.9
156.8 157.4 158.6
149.5 150.5 151.6
162.6 163.3
186.9 190.3
182.3 186.9
155.0 159.9
198.6 199.5

7.51

40
41
42
43
44

146.2
143.3
148.4
136.3
156.4
148.6

160.2
178.3
170.0
144.4
199.8

equipment...

Defense and space

139.5 143.0 143.1 144.0 145.0
137.0 140.5 140.5 141.1 142.2
145.2 147.5 147.0 147.0 147.7
125.8 130.8 131.6 133.0 134.7
148.4 152.1 152.6 154.7 155.6
139.0 143.7 145.1 146.4 147.9

7.89 153.1 155.6 156.8 155.2 161.8 160.2 160.6 160.9 161.5
2.83 174.2 177.0 179.4 173.6 184.3 180.0 179.9 182.2 182.1
2.03 169.2 172.6 176.1 167.6 182.7 175.6 173.4 176.7 175.6
1.90 148.4 151.6 154.3 147.5 159.1 151.6 149.8 152.7 151.1
.80 186.8 188.1 187.6 188.9 188.2 191.5 193.9 196.1 198.0

Intermediate products
37
Construction supplies
38
Business supplies
39
Commercial energy products.

36

138.9
136.5
144.9
125.0
147.8
138.9

137.2
136.5
147.2
132.3
107.9

84.6

85.9

152.1 153.5
157.0 157.6
163.0 164.1

87.1

87.3

87.3

87.3

154.7

155.7

156.7
158.1
167.6

157.9

158.2 158.1
167.4 167.6

142.7 143.9 145.4 148.7 150.4
136.8 137.9 138.7 142.0 142.2
154.8 155.8 157.4 161.7 162.9
138.9 140.3 141.8 144.7 147.6
116.7 117.5 118.2 121.7 125.4

151.8
144.8
164.6
148.3
126.2

152.8 154.0
145.5 146.6
165.5 166.5
149.1 150.4
126.9
164.3 164.7
169.5 169.6
118.2
137.6
204.8

10.47 153.5 153.9
7.62 158.3 159.0
1.85 113.0 114.5
1.62 133.5 135.2
4.15 188.2 188.2

154.4
160.0
118.5
134.4
188.5

155.4 162.0 163.5 164.1 162.5 162.7
159.3 166.4 167.9 168.8 168.3 167.0
117.8 116.5 116.7 118.0 117.1 116.0
132.2 139.2 140.1 139.9 135.1 131.5
188.6 199.5 201.7 202.9 204.0 203.7

163.8
169.2
117.4
137.3
204.9

161.5 162.2
131.6 132.7
126.3 128.3 129.4
112.2 115.9
143.5 143.7

1.70
1.14
8.48
4.65
3.82

150.9
125.3
122.4
107.3
140.7

151.2
124.1
123.5
110.0
140.0

148.9
125.4
124.0
112.2
138.4

156.7
128.5
123.0
111.6
136.9

160.5
134.6
123.9
115.5
134.1

161.9 162.8
135.8 135.0
125.2 127.5
114.4 116.1
138.6 141.4

155.4
135.7
127.9
116.7
141.6

9.35
12.23
3.76
8.48

133.9
132.5
155.4
122.4

136.5
132.5
153.0
123.5

136.8
133.0
153.3
124.0

136.5
132.3
153.2
123.0

138.0
133.1
154.1
123.9

138.2 138.3
134.2 135.9
154.3 154.6
125.2 127.5

138.0 139.2 140.3 139.7 139.6
136.4 136.1 135.9 137.4 138.5
155.6 156.7 157.5 157.8
127.9 127.0 126.3 128.3 129 A

161.8
134.8
127.0
115.4
141.3

2.13

Output

A49

Sept.

Nov.e

Continued

Grouping

1967
proportion

SIC
code

1977
1977
average

Sept.

Oct.

1978
Nov.

Apr.

May

June

July

Aug. r

Oct.f

Index (1967 = 100)
MAJOR I N D U S T R Y
1 Mining and utilities.,
2
Mining
3
Utilities
4
Electric

12.05 136.2
6.36 117.8
5.69 156.5
3.88 175.5

135.1
154.1
173.7

135.8 135.5 140.9 140.9 142.5
119.6 118.8 127.2 126.7 128.0
154.0 154.2 156.0 157.0 158.6
173.6 173.3 175.0 177.1 180.1

5
6
7

87.95
35.97
51.98

137.1
148.1
129.5

139.0
149.5
131.7

139.4 139.9
149.6 150.1
132.4 132.7

143.5
153.2
136.9

80.0
84.8
141.4 140.6
119.4 117.8
128.1 127.2
137.3 139.4
113.8 117.5
142.4 141.6
129.0 125.
137.9 137.8

Manufacturing.
Nondurable..
Durable

118.0

8
9
10
11

Mining
Metal mining
Coal
Oil and gas extraction
Stone and earth minerals.

.51
.69
4.40
.75

105.4
124.9

71.4
133.0
119.6
126.7

12
13
14
15
16

Nondurable manufactures
Foods
Tobacco products
Textile mill products...
Apparel products
Paper and products

8.75
.67
2.68
3.31
3.21

137.9
114.3
137.
124.2
137.4

138.3
113.5
140.7
127.7
139.1

17
18
19
20
21
22
23
24
25

4.72 124.9 124.2 125.7 126.2
7 . 7 4 180.7 181.3 182.3 183
1.79 141.0 141.9 141.4 140.5
2 . 2 4 232.2 239.5 236.3 238.5
.86 75.3
7 4 . 0 77.0 78.1

Printing and publishing
Chemicals and products...
Petroleum products
Rubber & plastic products.
Leather and products
Durable manufactures
Ordnance, private & government.
Lumber and products
Furniture and fixtures
Clay, glass, stone products

118.0
118.0

142.6
127
159.9
182.

142.5
126.0
160.8
183.2

141.8
124.3
161.2
183.3

144.3
154.0
137.6

145.5 146.7 147.6
154.9 155.0 155.6
139.0 141
142.2

148.5
156.6
142.9

122.3
129.5
127.3
128.9

120.0
131.7
126.3
130.1

121.
136.4
127.1
130.7

117.0
131.7
131.3

117.9
124.9
126.2
131.6

116.0
114.7
125.3
133.0

143.1
121.0
138.1
126.1
145.7

142.8
120.2
138.5
125.8
146.6

141.8
122.7
140.4
126.8
148.0

142.9
120.8
141.0
124.5
140.5

144.0
118.6
139.5
127.2
141.9

144.2
120.6
142.0
130.7
142.7

126.8

128.2 128.7 130.3 129.5 131.0
185.5 188.1 191.1 192.3 192.2 192.8
141.7 143.4 142.8 144.3 144.1 145.4
249.1 252.7 255.5 259.1 261.1 263.3
7 4 . 0 73.1
7 6 . 0 75.7
74.5
75.1
128.6

19,91
24
25
32

3.64
1.64
1.37
2.74

73.9
133.4
140.9
146.

75.1
137.1
145.6
145.5

7 4 . 4 74.1
135.7 137.5
146.6 146.0
148.0 152.8

73.0
136.9
148.9
156.7

74.3
136.5
152.8
157.9

74.7
138.7
156.2
159.8

75.2
138.1
158.1
158.8

75.2
136.9
159.0
159.5

74.4
139.2
160.3
160.9

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

110.2
103.4
130.9
144.8
141.9

109.0
104.6
133.6
147.4
144.6

113.5 111.2
107.7 104.3
133.8 135.8
148.9 149.7
144.2 146.0

114.3
109.0
139.5
152.2
152.3

115.5
110.5
140.4
152.9
152.9

117.5
114.5
142.3
154.6
154.1

123.0
119.0
144.0
156
157.9

126.0
120.9
145.8
157.3
156.9

127.8
123.0
146.3
158.7
158.3

31
32
33
34
35

Transportation equipment
Motor vehicles & parts
Aerospace & misc. trans, eq.
Instruments
Miscellaneous mfrs

37
371
372-9
38
39

9.27
4.50
4.77
2.11
1.51

121.1
159.7
84.7
159.1
149.1

125.5
165.6
87.7
160.3
150.7

124.3
168.4
82.8
162.2
151.0

122.0
163.0
83.3
163.
151.8

130.5
171.7
91.8
170.5
152.9

130
168.3
93.9
169.8
152.7

130.4
167.7
95.0
170.9
153.5

132.1
169.7
96.5
172.2
153.

133.4
171.0
98.3
175.4
153.8

132.9
168.9
98.9
174.6
154.1

Gross value (billions of 1972 dollars, annual rates)

MAJOR MARKET
36 Products, total
37
Final products
38
Consumer goods.
39
Equipment
40

Intermediate products.

, 1507.4
1390.9
1211.5
U13.4
U16.6

583.9 590.1 591.3 591.3 608.8 606.8 608 9
452.1 456.8 457.8 457.3 470.7 468.2 468.9
317.5 319.1 319.5 320.0 326.3 324.0 323.0
134.6 137.6 138.1 137.3 1 4 4 . 4 1 4 4 . 2 146.0

610.3 613.3 616.5 622.0
469.6 472.2 475.3 480.3
323.4 324.7 326.6 329.6
1 4 6 . 4 1 4 7 . 5 148.9 1 5 0 . 7

131.9

140.7

133.5

1 1972 dollars.
NOTE.—Published groupings include some series and subtotals not




133.8

134.1

138.3

138.6

140.3

141.4

141.5

141.9

shown separately. For description and historical data, see Industrial
Production—1976 Revision (Board of Governors of the Federal Reserve
System: Washington, D.C.), Dec. 1977.

A50

Domestic Nonfinancial Statistics • December 1978

2.14 HOUSING AND CONSTRUCTION
Monthly figures are at seasonally adjusted annual rates except as noted.
1978
1975

Item

1976

1977
Apr.

May

June

July

Aug. 1

Sept. 1

Private residential real estate activity
(thousands of units)
NEW U N I T S

4 Started
5
1-family
6
2-or-more-family
7 Under construction, end of period
8
1-family
2-or-more-family
9

1

10 Completed
11
1-family
12
2-or-more-family
13 Mobile homes shipped

14
15
16
17
18

1,296
894
402

18,133
12,265
5,861

1,740
1,157
583

1,597
1,058
539

1,821
1.123
698

1,632
1,035
597

1,563
1,020
543

1,731
1,092
639

1,160

892
268

1,538
1,163
377

1,986
1,451
535

2,165
1,492
673

2,054
1,478
576

2.124
1,441
683

2,119
1,453
666

2,025
1,440
585

2,081
1,462
619

1,003
531
472

1,147
655
492

1,442
829
613

1,274
774
500

1,282
770
513

1,296
774
522

1,299
780
519

1,300
786
514

1,315
788
527

1,297
866
430

1,362
1,026
336

1,652
1,254
398

1,943
1,515
428

1,854
1,426
428

1,890
1,344
546

1,942
1,286
656

1,970
1,367
603

1,929
1,405
524

213

246

252

258

263

283

272

544
383

639
433

819
407

827
410

846
412

831
418

794
418

784
418

792
419

39.3
38.9

44.2
41.6

48.9
48.2

53.3

55.7

56.7

54.9

56.3

57.6

42.5

48.1

54.4

59.3

62.3

63.2

63.0

63.0

64.9

2,452

3,002

3,572

3,880

3,770

3,780

3,890

4,080

3,950

35.3
39.0

38.1
42.2

42.9
47.9

48.2
53.6

47.8
54.8

48.4
55.1

49.4
56.5

50.3
57.5

50.2
57.7

927
669
278

1 Permits authorized
2
1-family
3
2-or-more-family

Merchant builder activity in
1-family units:
Number sold
Number for sale, end of period * . .
Price (thous. of dollars) 2
Median:
Units sold
Units for sale
Average:
Units sold
EXISTING UNITS (1-family)

19 Number sold
Price of units sold (thous. of
dollars): 2
20
Median
21
Average

Value of new construction
(millions of dollars)

4

CONSTRUCTION
22 Total put in place.

134,293

147,481

170,685

195,261

201,555

205,843

208,300

206,403

207,733

23 Private
24
Residential
25
Nonresidential, total
Buildings:
26
Industrial
27
Commercial
28
Other
29
Public utilities and other.

93,624
46,472
47,152

109,499
60,519
48,980

133,652
81,067
52,585

153,728
92,433
61,295

156,456
94,533
61,923

160,594
94,902
65,692

159,912
93,998
65,914

157,987
92,455
65,532

159,410
92,527
66,883

8,017
12,804
5,585
20,746

7,182
12,757
6,155
22,886

7,182
14,604
6,226
24,573

9,244
17,177
6,806
28,068

8,735
18,546
6,935
27,707

11,335
19,246
6,761
28,350

11,170
19,463
7,036
28,245

12,043
18,835
6,721
27,933

12,634
18,926
6,686
28,637

30 Public
31
Military..
32
Highway.
33
Conservati
34
Other 3 . . .

40,669
1,392
10,861
3,256
25,160

37,982
1,508
9,756
3,722
22,996

37,033
1,478
9,170
3,765
22,620

41,532
1,500
8,491
4,586
26,955

45,099
1,446
10,556
4,172
28,925

45,249
1,358
10,338
3,508
30,045

48,388
1,493
10,015
4,947
31,972

48,415
887

48,323
940

1 N o t at annual rates.
Not seasonally adjusted.
3 Beginning Jan. 1977 Highway imputations are included in Other.
4
Value of new construction data in recent periods may not be strictly
comparable with data in prior periods due to changes by the Bureau of
the Census in its estimating techniques. For a description of these changes
see Construction Reports (C-30-76-5), issued by the Bureau in July 1976.
2




NOTE.—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 for 14,000
jurisdictions reporting to the Census Bureau.

Prices

A51

2.15 CONSUMER AND PRODUCER PRICES
Percentage changes based on seasonally adjusted data, except as noted.
12 months to—

1977

Item

1977
Oct.

1 month to—

3 months (at annual rate) to—

1978

1978

1978
Oct.
Dec.

Mar.

June

Sept.

June

July

Aug.

Sept.

Oct.

Index
level
Oct.
1978
(1967
= 100)2

Consumer prices 3
6.5

8.9

4.9

9.3

11.4

7.8

.9

.5

.6

.8

.8

200.9

2 Commodities
3
Food
4
Commodities less food
5
Durable
6
Nondurable

5.7
7.0
4.9
4.6
5.1

8.4
11.5
7.0
8.4
5.3

4.9
4.2
5.4
5.2
5.1

9.3
16.4
6.1
8.7
3.1

11.2
20.4
7.2
9.0
5.5

6.3
3.0
7.8
8.3
7.3

.9
1.3
.6
.8
.4

.4
.0
.6
.7
.5

.4
.3
.5
.5
.5

.7
.5
.9
.9
.8

.7
.8
.7
.8
.5

191.8
216.8
179.1
178.8
178.1

7 Services
8
Rent
9
Services less rent

7.8
6.3
8.1

9.6
7.2
9.9

4.9
6.3
4.8

9.1
6.2
9.6

11.8
8.5
12.2

10.3
7.5
10.8

.9
.6
.9

.8
.5
.9

.8
.5
.9

.8
.8
.9

.8
.6
.8

217.6
167.4
226.7

6.3
6.4
7.8

8.3
8.4
12.9

5.0
5.3
7.1

8.1
8.0
12.2

9.3
9.9
14.5

9.1
8.3
14.7

.7
.9
1.2

.7
.7
1.2

.7
.6
1.0

.8
.7
1.3

.8
.8
1.2

196.7
194.0
237.0

1 All items

10
11
12

Other groupings:
All items less food
All items less food and energy
Homeownership

.

Producer prices, formerly Wholesale prices
13 Finished goods
14
15
16
17

Consumer
Foods
Excluding foods
Capital Equiptment

18 Materials
19
Intermediate!
Crude:
20
Nonfood
21
Food

6.8

8.6

7.2

5.0

.7

r

— .2

.9

.9

199.7

-.3
r
—1.4
r
.3
.4

.9
1.7
.5
.6

1.0
1.7
.6
.6

197.8
212.5
188.6
204.1

.1
.6

.9
.6

1.6
1.1

225.8
221.5

-.5
-1.8

1.0
1.9

2.1
3.6

298.2
224.4

.5
r

6.7
7.3
6.4
7.1

9.0
11.9
7.5
7.5

5.4
7.4
4.7
10.9

10.9
21.2
5.3
7.1

12.5
14.6
11.2
8.7

4.2
-1.0
7.6
7.4

.8
1.2
.5
.7

.5
r
—. 5
'1.0
.6

5.2
6.8

10.2
7.4

8.3
4.2

13.9
9.2

9.0
6.6

5.2
6.7

.7
.6

r
.2
r

3.7
.2

17.1
22.8

20.1
27.6

16.2
40.3

11.6
28.1

12.2
-9.4

1.6
1.9

2.4
-2.5

1 Excludes intermediate materials for food manufacturing and manufactured animal feeds.
2 Not seasonally adjusted.




11.4

9.6

.4

r

3
Beginning Jan. 1978 figures for consumer prices are those for all urban
consumers.

SOURCE.—Bureau of Labor Statistics.

A52

Domestic Nonfinancial Statistics • December 1978

2.16 GROSS NATIONAL PRODUCT AND INCOME
Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates.
1977
1975

1916

1978

1977

Account
Q2

Q4

Q3

QL

Ql

Q3

Gross national product
1
2
3
4
5

By source:
Personal consumption expenditures
Durable goods
Nondurable goods
Services

6
7
8
9

Gross private domestic investment
Fixed investment
Nonresidential
Structures
Producers' durable equipment
Residential structures
Nonfarm

10
11

12
13
14

Change in business inventories
Nonfarm

1,528.8

1,700.1

1,887.2

1,867.0

1,916.8

1,958.1

1 ,992.0

2,087.5

2,141.4

979.1
132.6
408.9
437.5

1,090.2
156.6
442.6
491.0

1,206.5
178.4
479.0
549.2

1,188.6
175.6
473.6
539.4

1,214.5
111.A
479.7
557.5

1,255.2
187.2
496.9
571.1

1,276.7

183.5
501.4
591.8

1,322.9
197.8
519.3
605.8

1,357.7
199.4
532.0
626.3

190.9
201.6
150.2
53.8
96.4
51.5
49.5

243.0
131.8
164.6
51.3
107.3
68.2
65.8

297.8
181.3
190.4
63.9
126.5
91.9
88.9

295.6
278.6
187.2
63.4
123.8
91.4
88.4

309.7
181.8
193.5
65.4
128.1
94.3
91.2

313.5
300.5
200.3
67.4
132.8
100.2
97.5

322.7
306.0
205.6
68.5
137.1
100.3
97.3

345.4
325.3
220.1
76.6
143.5
105.3
102.1

350.6
336.8
227.9
81.3
146.6
108.9
105.7

-10.7
-14.3

10.2
12.2

15.6
15.0

17.0
16.5

21.9
22.0

13.1
10.4

16.7
16.9

20.1
22.1

13.8
14.8

17

Net exports of goods and services
Exports
Imports

20.4
147.3
126.9

7.4
163.2
155.7

-11.1
175.5
186.6

-5.9
178.1
184.0

— 7.0
180.8
187.8

-23.2
112.1
195.2

-24.1
181.7
205.8

-5.5
205.4
210.9

-6.6
213.8
220.3

18
19
20

Government purchases of goods and services. .
Federal
State and local

338.4
123.1
215.4

359.5
129.9
229.6

394.0
145.1
248.9

388.8
142.9
245.9

399.5
146.8
252.7

412.5
152.2
260.3

416.7
151.5
265.2

424.7
147.2
277.6

439.6
154.0
285.6

1,539.6
686.6
259.0
All.5
697.6
144.7

1,689 9
760.3
304.6
455.7
778.0
161.9

1,871.6
832.6
341.3
491.3
862.8
191.8

1,850.0
825.8
339.1
486.7
850.0
191.3

1,894.9
844.7
346.5
498.2
875.3
196.8

1,945.0
859.6
347.4
512.2
893.6
204.9

1 ,975.3

861.8
351.2
510.6
926.4
203.8

2,067.4
912.2
375.8
536.4
952.0
223.4

2,127.6
928.5
380.6
547.9
977.4
235.5

-10.7
-8.9
-1.8

10.2
5.3
4.9

15.6
8.4
7.2

17.0
9.1
7.9

21.9
11.9
10.0

13.1
6.3
6.8

16.7
14.8
1.9

20.1
10.8
9.3

13.8
9.9
3.9

1,202.3

1,271.0

1,325.5

1,343.9

1,354.5

1 ,354.2

1,382.6

1,394.2

15
16

21
22
23
24
25
26

By major type of product:
Final sales, total
Goods
Durable
Nondurable
Services
Structures

27
28
29

Change in business inventories
Durable goods
Nondurable goods

30

MEMO: Total GNP in 1972 dollars

1,332.7 |

National income
31
32 Compensation of employees
33
Wages and salaries
Government and Government enterprises..
34
35
Other
36
Supplement to wages and salaries
Employer contributions for social
37
insurance
38
Other labor income
1

39 Proprietors' income
40
Business
and professional 1
Farm 1

41

42 Rental income of persons 2
43 Corporate profits 1
44
Profits before tax 3
45
Inventory valuation adjustment
46
Capital consumption adjustment
4 7 Net interest
1

1,215.0

1,359,2

1,515.3

1,499.3

1,537.6

1,576.9

1,603.1

1,688.1

1,731.0

931.1
805.9
175.4
630.4
125.2

1,036.8
890.1
187.6
702.5
146.7

1,153.4
983.6
200.8
782.9
169.8

1,140.5
973.4
198.1
775.3
167.1

1,165.8
993.6
201.7
791.9
172.2

1,199.7
1,021.2
208.1
813.1
178.4

1 ,241.0

1 ,050.8
211.4
839.3
190.2

1,287.8
1,090.2
213.9
876.3
197.6

1,316.9
1,113.2
216.8
896.4
203.7

60.1
65.1

69.1
77.0

79.4
90.4

18.6
88.5

19.9
92.2

82.4
96.1

90.2
100.0

93.6
104.0

95.8
107.9

87.0
63.5
13.5

88.6
70.2
18.4

99.8
19.5
20.3

98.9
78.9
20.0

97.2
80.8
16.5

107.3
82.3
25.1

105.0
83.1
21.9

110.1
86.1
24.0

114.5
89.5
25.0

11.A

22.5

22.5

22.4

22.4

22.7

22.8

22.2

24.3

95.9
120.4
-12.4
-12.0

127.0
155.9
-14.5
-14.4

144.2
173.9
-14.8
-14.9

143.7
175.1
-16.6
-14.8

154.8
177.5
-7.7
-15.0

148.2
178.3
-14.8
-15.3

132.6
172.1
-23.5
-16.1

163.4
205.5
-24.9
-17.2

168.4
208.6
-20.9
-19.3

18.6

84.3

95.4

93.7

97.3

99.0

101.7

104.6

107.1

With inventory valuation and capital consumption adjustments.
2 With capital consumption adjustments.




3 For after-tax profits, dividends, etc., see Table 1.50.
SOURCE.—Survey of Current Business (U.S. Dept. of Commerce).

National Income Accounts

A53

2.17 PERSONAL INCOME AND SAVING
Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted.
1978

1977
1975

1976

1977

Account
Q2

Q3

Q4

Ql

Q2

Q3

1,593.0

1,628.9

1,682.4

1,730.6

1,021.2

1,050.8

1,090.2

1,113.0

Personal income and saving
1,255.5

1 380.9

1,529.0

1,508.6

1,543.7

805.9

890.1

983.6

973.4

993.6

275.0
211.0
195.3
160.1
175.4

307.5
237.5
216.4
178.6
187.6

343.7
266.3
239.1
200.1
200.8

342.0
264.1
236.5
196.8
198.1

348.3
269.3
241.2
202.3
201.7

65.1

77.0

90.4

88.5

92.2

96.1

87.0

88.6

99.8

98.9

97.2

107.3

63.5
23.5

70.2
18.4

79.5
20.3

78.9
20.0

80.8
16.5

12 Rental income of persons 2

22.4

22.5

22.5

22.4

22.4

22.7

13 Dividends

31.9

37.9

43.7

42.7

44.1

46.3

14 Personal interest income

115.5

126.3

141.2

139.1

143.6

146.0

15 Transfer payments
16
Old-age survivors, disability, and health
insurance benefits

178.2

193.9

208.8

204.0

211.9

81.4

92.9

105.0

101.8

108.5

2 Wage and salary disbursements
3
Commodity-producing industries
4
Manufacturing
5
Distributive industries
6
Service industries
7
Government and government enterprises
8 Other labor income
Business and professional 1
Farm 1

10
11

17

LESS: Personal contributions for social
insurance

18 EQUALS : Personal income
19

LESS: Personal tax and nontax p a y m e n t s . . . .

357.1
277.3
247.5
208.5
208.1

82.3
25.1

365.9
286.9
257.0
216.5
211.4

387.0
296.1
266.4
222.8
213.9

396.5
302.1
271.4
224.5
216.6

100.0

104.0

107.9

105.0

110.1

114.5

83.1
21.9

86.1
24.0

89.5
25.0

22.8

22.2

24.3

47.0

48.1

50.1

151.4

156.3

160.8

215.9

219.2

220.6

230.6

110.1

112.1

113.7

121.1

50.5

55.5

61.0

60.5

61.4

62.6

67.2

69.2

70.5

1,255.5

1,380.9

1,529.0

1,508.6

1,543.7

1,593.0

1,628.9

1,682.4

1,730.6

168.8

196.5

226.0

223.3

224.6

233.3

237.3

249.1

263.1

20 EQUALS: Disposable personal income

1,086.7

1,184.4

1,303.0

1,285.3

1,319.1

1,359.6

1,391.6

1,433.3

1,467.5

21

LESS: Personal outlays

1,003.0

1,116.3

1,236.1

1,217.8

1,244.8

1,285.9

1,309.2

1,357.0

1,393.4

22 EQUALS: Personal saving

83.6

68.0

66.9

67.5

74.3

73.7

82.4

76.3

74.1

5,629
3,626
4,025
7.7

5,906
3,808
4,136
5.7

6,144
3,954
4,271
5.1

6,120
3,922
4,241
5.3

6,191
3,953
4,293
5.6

6,226
4,030
4,365
5.4

6,215
4,009
4,370
5.9

6,333
4,060
4,399
5.3

6,372
4,093
4,425
5.1

MEMO ITEMS :

Per capita (1972 dollars):
23
Gross national product
24
Personal consumption expenditures
25
Disposable personal income
26 Saving rate (per cent)

Gross saving
27 Gross private saving
28
29
30

Personal saving
Undistributed corporate profits 1
Corporate inventory valuation adjustment....

31
32
33

Capital consumption allowances:
Corporate
Noncorporate
Wage accruals less disbursements

34 Government surplus, or deficit (—), national
income and product accounts
35
Federal
36
State and local

259.8

270.7

290.8

288.6

310.7

304.3

305.4

319.9

326.5

83.6
14.2
-12.4

68.0
24.8
-14.5

66.9
28.7
-14.8

67.5
28.7
-16.6

74.3
38.0
-7.7

73.7
28.0
-14.8

82.4
15.6
-23.5

76.3
30.3
-24.9

74.1
31.7
-20.9

101.3
60.7

111.5
66.3

120.9
74.3

119.8
72.6

122.6
75.9

124.6
77.9

127.4
79.9

130.5
82.8

134.7
86.1

-64.4

-33.2

-18.6

-11.8

-25.2

-29.6

-21.1

-70.6
6.2

-53.8
20.7

-48.1
29.6

-40.3
28.5

-56.4
31.2

-58.6
29.0

-52.6
31.5

202.8

241.7

276.9

280.4

292.6

279.5

286.4

326.6

330.6

190.9
11.9

243.0
-1.2

297.8
-20.9

295.6
-15.2

309.7
-17.1

313.5
-34.1

322.7
-36.3

345.4
-18.9

350.6
-20.0

7.4

4.2

4.7

3.7

7.1

4.8

2.2

.5

3.0

6.2

1.1

-23.6
29.8

-22.6
23.7

37 Capital grants received by the United States,
net
38 Investment
39
Gross private domestic
40
Net foreign
41 Statistical discrepancy
1
2

With inventory valuation and capital consumption adjustments.
With capital consumption adjustment.




SOURCE.—Survey of Current Business (U.S. Dept. of Commerce).

A54

International Statistics • December 1978

3.10 U.S. INTERNATIONAL TRANSACTIONS

Summary

Millions of dollars; quarterly data are seasonally adjusted except as noted. 1
1977
1975

Item credits or debits

1976

1978

1977
Q2

Q4

Q3

Q2

Q1

1 Merchandise exports
2 Merchandise imports
3
Merchandise trade balance 2

107,088
98,041
9,047

114,694
124,047
-9,353

120,555
151,658
-31,103

30,630
37,258
-6,628

31,012
38,265
-7,253

29,434
39,639
-10,205

30,664
41,865
-11,201

35,067
42,869
-7,802

4 Military transactions, net
5 Investment income, net 3
6 Other service transactions, net

-876
12,795
2,095

312
15,933
2,469

1,334
17,507
1,705

295
4,487
412

467
4,609
583

5
3,813
482

210
4,877
538

575
4,620
699

7 Balance on goods and services 3 , 4
8 Remittances, pensions, and other transfers
9 U.S. Government grants (excluding military)
10 Balance on current account 3
12 Change in U.S. Government assets, other than official
reserve assets, net (increase, —)
13 Change in U.S. official reserve assets (increase, —)
14
Gold
15
Special Drawing Rights (SDR's)
16
Reserve position in International Monetary Fund (IMF)..
17
Foreign currencies

23,060

9,361

-10,558

-1,434

-1,594

-5,905

-5,576

-1,908

-1,721
-2,894

-1,878
-3,145

-1,932
-2,776

-480
-763

-490
-787

-473
-591

-504
-778

-549
-804

18,445

4,339

-15,265

-2,677
-2,500

-2,871
-5,182

-6,969
-5,247

-6,858
-6,382

-3,261
-2,811

-4,213

-3,679

-795

-1,098

-838

-896

-1,151

6

151

-83
-80
169

-9
133
27

-3,470
-607

-2,530

-66
-466
-75

-78
-2,212
-240

-231
-118
-121
-294
302

246

329

-60
-29
42
47

-16
324
-62

-104
437
-4

18 Change in U.S. private assets abroad (increase, — ) 3

-35,368

-43,865

-30,740

-11,214

-5,668

-13,862

-14,386

-4,144

19

Bank-reported claims

-13,532

-21,368

-11,427

-4,582

-1,779

-8,750

-6,270

1,422

20
21
22
23
24

Nonbank-reported claims
Long-term
Short-term
U.S. purchase of foreign securities, net
U.S. direct investments abroad, net 3

-1,357
-366
-991
-6,235
-14,244

-2,030
5
-2,035
-8,852
-11,614

-1,700
25
-1,725
-5,398
-12,215

-1,137
66
-1,203
-1,766
-3,729

1,389
205
1,184
-2,165
-3,113

-1,184
-279
-905
-731
-3,197

-2,222
-57
-2,165
-949
-4,945

-284
-268
-16
-1,116
-4,166

6,907
4,408
905
1,647
-2,158
2,104

18,073
9,333
573
4,993
969
2,205

37,124
30,294
2,308
1,644
773
2,105

7,884
5,123
610
417
752
982

8,246
6,948
627
332
-163
502

15,543
12,900
973
390
909
371

15,760
12,965
117
804
1,456
418

-4.924
-5,095
211
-310
-367
637

8,643

18,897

13,746

6,180

6,005

4,522

2,336

5,152

628

10,990

6,719

6,240

2,640

3,143

-314

1,679

319
406
-87

-507
-958
451

257
-620
877

-412
-176
-236

590
18
572

425
-242
667

495
38
457

10
-19
29

2,590
2,503
2,603

2,783
1,284
4,347

563
2,869
3,338

-1,370
725
996

1,251
513
1,012

-299
803
450

881
462
812

803
1,314
1,347

5,449

9,300

-954

616
-178

-4,766
-2,230

1,604
2,276

3,798
160

7,998
12

5,449

9,300

-954

794

-2,536

-672

3,638

7,986

-607
5,259

-2,530
13,080

-231
35,480

6
7,467

151
7,914

15,153

246
14,956

329
-4,614

7,092

9,581

6,733

1,344

1,438

1,024

1,963

-2,737

2,207

373

194

53

31

71

75

57

25 Change in foreign official assets in the United
(increase, - f )
26
U.S. Treasury securities
27
Other U.S. Government obligations
28
Other U.S. Government liabilities 5
29
Other U.S. liabilities reported by U.S. banks
30
Other foreign official assets 6

States

31 Change in foreign private assets in the United States
(increase, -j-) 3
32

U.S. bank-reported liabilities

33
34
35
36

U.S. nonbank-reported liabilities
Long-term
Short-term
Foreign private purchases of U.S. Treasury securities,
net
Foreign purchases of other U.S. securities, net
Foreign direct investments in the United States, net 3

37
38

39 Allocation of SDR's
41
42

Owini? to seasonal adjustments
Statistical discrepancy in recorded data before seasonal
adjustment
MEMO ITEMS:

Changes in official assets:
43
U.S. official reserve assets (increase, —)
44
Foreign official assets in the United States (increase, + ) . .
45 Changes in Organization of Petroleum Exporting Countries (OPEC) official assets in the Unites States (part
of line 25 above)
46 Transfers under military grant programs (excluded from
lines 1, 4, and 9 above).

1 Seasonal factors are no longer calculated for lines 13 through 46.
2 Data are on an international accounts (IA) basis. Differs from the
Census basis primarily because the IA basis includes imports into the
U.S. Virgin Islands, and it excludes military exports, which are part of
Line 4.
3 Includes reinvested earnings of incorporated affiliates.
4 Differs from the definition of "net exports of goods and services" in
the national income and product (GNP) account. The G N P definition




excludes certain military sales to Israel from exports and excludes U.S.
Government interest payments from imports.
3 Primarily associated with military sales contracts and other transactions arranged 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.
1978
1976

1977

Item

1975

1 EXPORTS of domestic and foreign
merchandise excluding grant-aid
shipments

107,589

115,156

96,573

121,009

147,685

14,496

13,992

13,723

14,779

14,090

15,120

15,138

11,016

-5,853

-26,534

-2,861

-2,238

-1,597

-2,987

-1,621

-1,691

-2,127

2 GENERAL IMPORTS including
merchandise for immediate consumption plus entries into bonded
3 Trade balance

121,151

NOTE.—Bureau of Census data reported on a free-alongside-ship
(f.a.s.) value basis. Effective January 1978, major changes were made in
coverage, reporting, and compiling procedures. The internationalaccounts-basis data adjust the Census basis data for reasons of coverage
and timing. On the export side, the largest adjustments are: (a) the addition
of exports to Canada not covered in Census statistics, and (b) the exclusion
of military exports (which are combined with other military transactions

Apr.

May

June

July

Aug.

Sept.

Oct.

11,635

11,754

12,126

11,793

12,469

13,429

13,011

and are reported separately in the "service account"). On the import
side, the largest single adjustment is the addition of imports into the
Virgin Islands (largely oil for a refinery on St. Croix), which are not
included in Census statistics.
SOURCE.—FT 900 "Summary of U.S. Export and Import Merchandise
Trade" (U.S. Dept. of Commerce, Bureau of the Census).

3.12 U.S. RESERVE ASSETS
Millions of dollars, end of period
1978
Type

1975

1 Total
2 Gold

stock,

including

4 Reserve position in
Monetary Fund

1976

1977
May

June

July

Aug.

Sept.

Oct.

Nov.*
3 17,967

16,226

18,747

19,312

18,966

18,864

18,832

18,783

18,850

18,935

11,599

11,598

11,719

11,718

11,706

11,693

11,679

11,668

11,655

11,642

2,335

2,395

2,629

2,760

2,804

2,860

2,885

2,942

3,097

31,522

2,212

4,434

4,946

4,347

4,270

4,177

4,196

4,214

4,147

31,099

80

320

18

141

84

102

23

26

36

4 3,704

Exchange

International

5 Convertible foreign currencies

1 Gold held under earmark at F.R. Banks for foreign and international
accounts is not included in the gold stock of the United States -* see Table
3.24.
2 I n c i t e s allocations by the International Monetary Fund (IMF) of
SDR's as follows: $867 million on Jan. 1, 1970; $717 "million on Jan. 1,
1971; and $710 million on Jan. 1, 1972; plus net transactions in SDR's.




3 Beginning July 1974, the I M F adopted a technique for valuing the
SDR based on a weighted average of exchange rates for the currencies
of 16 member countries. The U.S. S D R holdings and reserve position in
the IMF also are valued on this basis beginning July 1974.
4
Beginning November 1978, valued at current market exchange rates.

A56

International Statistics • December 1978

3.13 FOREIGN BRANCHES OF U.S. BANKS Balance Sheet Data
Millions of dollars, end of period

Asset account

1975

1976

1978

1977
Mar.

May 2

Apr.

June

July

Aug.

271,696

'269,542

275,065

287,368

9,254
5,096
4,158

10,348
6,142
4,206

14,975
10,724
4,251

250,700
'55,236
'94,659
'23,401
'77,404

254,585
58,746
92,854
23,311
79,674

262,063
63,493
95,192
23,852
79,526

All foreign countries
1 Total, all currencies
2
3
4

Claims on United States
Parent bank
Other

5
6
7
8
9

Claims on foreigners
Other branches of parent bank
Banks
Public borrowers1
Nonbank foreigners

10

Other assets

11 Total payable in U.S. dollars
12
13
14

Claims on United States
Parent bank
Other

15
16
17
18
19

Claims on foreigners
Other branches of parent bank
Banks
Public borrowers1
Nonbank foreigners

20

Other assets

176,493

219,420

258,897

263,468

260,558

6,743
3,665
3,078

7,889
4,323
3,566

11,623
7,806
3,817

11,013
6,708
4,305

13,754
9,348
4,406

163,391
34,508
69,206
5,792
53,886

204,486
45,955
83,765
10,613
64,153

238,848
55,772
91,883
14,634
76,560

243,316
55,554
95,348
15,284
77,130

237,447
51,817
92,370
15,207
78,053

r

259,442

r

r

8,727
4.863
3.864
r

241,774
r
52,713
91,912
21,139
"76,010

10,891
6,750
r
4,141

r

251,783
r
55,357
r
96,638
22,495
'77,293

r

6,359

7,045

8,425

9,139

9,357

8,941

9,022

9,588

10,132

10,330

132,901

167,695

193,764

194,855

194,168

192,466

202,792

198,205

200,915

211,962

6,408
3,628
2,780

7,595
4,264
3,332

11,049
7,692
3,357

10,320
6,611
3,709

12,952
9,158
3,795

8,035
4,712
3,323

10,107
6,580
'3,527

8,473
4,906
3,567

9,349
5,758
3,591

14,167
10,554
3,613

123,496
28,478
55,319
4,864
34,835

156,896
37,909
66,331
9,022
43,634

178,896
44,256
70,786
12,632
51,222

180,341
43,502
71,934
13,276
51,628

176,877
40,628
70,504
13,232
52,513

180,331
41,209
70,124
18,275
50,723

188,590
43,544
r
74,842
19,515
50,689

185,425
43,447
'71,592
'20,416
'49,970

187,038
46,326
69,594
20,221
50,897

193,357
50,880
71,762
20,474
50,241

2,997

3,204

3,820

4,195

4,339

4,100

4,095

4,307

4,528

4,438

r

r

United Kingdom
21 Total, all currencies
22
23
24

Claims on United States
Parent bank
Other

25
26
27
28
29

Claims on foreigners
Other branches of parent bank
Banks
Public borrowers1
Nonbank foreigners

30

Other assets

31 Total payable in U.S. dollars
32
33
34

Claims on United States
Parent bank
Other

35
36
37
38
39

Claims on foreigners
Other branches of parent bank
Banks
Public borrowers1
Nonbank foreigners

40

Other assets

74,883

81,466

90,933

90,162

87,100

89,645

93,538

92,989

93,341

99,084

2,392
1,449
943

3,354
2,376
978

4,341
3,518
823

3,075
2,274
802

2,506
1,548
958

2,333
1,476
857

3,142
2,279
863

2,615
1,515
1,100

2,820
1,791
1,029

2,940
2,045
895

70,331
17,557
35,904
881
15,990

75,859
19,753
38,089
1,274
16,743

84.016
22.017
39,899
2,206
19,895

84,648
21,092
41,612
2,192
19,753

81,871
19,514
40,436
2,020
19,901

84,700
19,550
40,807
4,150
20,193

87,808
19,944
43,044
4,400
20,420

87,479
20,438
42,462
4,750
19,829

87,575
21,661
40,401
4,532
20,981

93,364
24,691
42,677
4,505
21,491

2,159

2,253

2,576

2,439

2,724

2,612

2,588

2,895

2,946

2,780

57,361

61,587

66,635

64,565

62,330

63,565

67,016

65,452

64,457

69,908

2,273
1,445
828

3,275
2,374
902

4,100
3,431
669

2,850
2,236
614

2,312
1,520
793

2,163
1,452
711

2,870
2,178
692

2,321
1,386
935

2,337
1,483
854

2,598
1,914
684

54,121
15,645
28,224
648
9,604

57,488
17,249
28,983
846
10,410

61,408
18,947
28,530
1,669
12,263

60,610
17,603
28,947
1,710
12,349

58,845
16,531
28,177
1,631
12,507

60,277
16,406
28,324
3,254
12,293

63,043
17,025
30,686
3,366
11,966

61,938
17,438
29,455
3,785
11,260

60,907
18,305
27,310
3,502
11,790

66,142
20,934
29,759
3,440
12,009

967

824

1,126

1,104

1,173

1,125

1,103

1,193

1,213

1,168

84,692

Bahamas and Caymans
41 Total, all currencies
42
43
44

Claims on United States
Parent bank
Other

45
46
47
48
49

Claims on foreigners
Other branches of parent bank
Banks
Public borrowers1
Nonbank foreigners

50

Other assets

51 Total payable in U.S. dollars
For notes see opposite page.




45,203

66,774

79,052

82,947

84,409

82,083

3,229
1,477
1,752

3,508
1,141
2,367

5,782
3,051
2,731

6,761
3,585
3,176

9,908
6,710
3,198

5,237
2,502
2,735

41,040
5,411
16,298
3,576
15,756

62,048
8,144
25,354
7,105
21,445

71,671
11,120
27,939
9,109
23,503

74,397
11,367
29,602
9,438
23,990

72,720
9,565
28,712
9,362
25,082

74,846
10,580
29,045
11,424
23,797

82,145

85,654

88,754

6,441
3,449
>"2,992

5,132
2,381
2,751

5,620
2,751
2,869

10,052
7,090
2,962

76,282
10,803
'30,307
12,394
22,118

74,988
10,292
'29,302
'12,599
'22,795

77,949
12,134
29,749
12,461
23,605

76,651
12,348
29,472
12,362
22,469

r

r

933

1,217

1,599

1,789

1,781

2,000

1,969

2,025

2,085

2,051

41,887

62,705

73,987

77,521

79,324

76,660

79,277

76,494

79,701

83,006

Overseas Branches

A57

3.13 Continued

1978
1975

Liability account

1976

1977
Mar.

Apr.

May 2

June

July

Aug.

Sept.f

All foreign countries
176,493

219,420

258,897

263,468

260,558

'259,442

'271,696

'269,542

275,065

287,368

53
54
55
56

20,221
To United States
12,165
Parent bank
Other banks in United States.. • } 8,057
Nonbanks

32,719
19,773
12,946

44,154
24,542
19,613

50,860
27,650
23,209

49,088
26,643
22,445

49,907
28,422
f 9,003
1 12,482

'50,534
25,199
'10,371
'14,964

' 51,450
'27,722
8,608
15,120

52,565
29,051
7,659
15,855

49,148
24,583
10,028
14,537

57
58
59
60
61

149,815
To foreigners
34,111
Other branches of parent bank. .
72,259
Banks
22,773
Official institutions
.
20,672
Nonbank foreigners

179,954
44,370
83,880
25,829
25,877

206,579
53,244
94,140
28,110
31,085

204,629
52,090
90,557
28,018
33,963

202,946
48,850
91,699
28,568
33,830

'202,232
50,368
87,567
29,776
'34,521

213,670
53,547
'93,413
'31,414
'35,296

'209,943
'53,788
'88,364
'31,831
'35,960

213,978
56,955
89,237
31,452
36,334

228,907
61,599
97,587
33,119
36,602

62

Other liabilities

52 Total, all currencies

.

r

6,456

6,747

8,163

7,980

8,524

'7,303

'7,492

'8,149

8,522

9,313

135,907

173,071

198,572

199,879

197,575

196,746

207,117

202,407

205,074

215,495

64
65
66
67

19,503
To United States
11,939
Parent bank
Other banks in United States.. • } 7,564
Nonbanks

31,932
19,559
12,373

42,881
24,213
18,669

49,248
27,321
21,927

47,811
26,348
21,463

48,278
27,787
t 8,704
i 11,787

'48,820
24,477
'10,078
'14,265

'49,535
'26,951
8,286
14,298

50,457
28,159
7,286
15,012

46,996
23,633
9,690
13,673

68
69
70
71
72

112,879
To foreigners
28,217
Other branches of parent bank. .
51,583
Banks
19,982
Official institutions
.
13,097
Nonbank foreigners

137,612
37,098
60,619
22,BIB
17,017

151,363
43,268
64,872
23,972
19,251

146,406
41,636
60,353
23,593
20,824

145,350
39,214
61,665
23,865
20,606

144,758
40,099
57,871
25,124
21,664

' 154,513 '148,763
42,682
'42,852
'62,434
'56,273
'26,587
'26,843
'22,810
22,795

150,474
45,620
55,288
26,175
23,391

163,798
49,978
63,229
27,398
23,193

73

Other liabilities

3,526

3,527

4,328

4,224

4,414

3,710

63 Total payable in U.S. dollars

.

3,784

4,109

4,143

4,701

92,989

United Kingdom
74 Total, all currencies.

74,883

81,466

90,933

90,162

87,100

89,645

93,538

93,341

99,084

75
76
77
78

To United States.
Parent b a n k . . .

5,646
2,122
• } 3,523

5,997
1,198
4,798

7,753
1,451
6,302

7,609
1,646
5,962

7,266
1,983
5,283

6,758
1,636
( 2,346
X 2,776

8,174
1,822
3,273
3,079

8,011
'1,959
2,987
3,065

6,978
1,905
2,290
2,783

7,991
1,872
3,108
3,011

79
80
81
82
83

.
To foreigners
Other branches of parent bank
Banks
Official institutions
Nonbank foreigners....

73,228
7,092
36,259
17,273
12,605

80,736
9,376
37,893
18,318
15,149

80,036
8,674
36,250
19,262
15,850

77,169
8,014
34,940
18,817
15,399

80,108
9,009
35,980
19,087
16,032

82,703
9,700
'36,856
'20,074
'16,073

' 81,847
'10,098
'34,662
'20,863
16,224

82,991
11,708
35,293
19,863
16,127

87,720
12,006
37,677
21,535
16,502

84

Other liabilities

Nonbanks.

85 Total payable in U.S. dollars.
86
87
88
89

To United States.
Parent bank...

90
91
92
93
94

To foreigners
Other branches of parent ban!
Banks
Official institutions
Nonbank foreigners

95

Other liabilities.

Nonbanks.

• |

67,240
6,494
32,964
16,553
11,229

r

1,997

2,241

2,445

2,518

2,665

2,779

2,661

3,131

3,372

3,373

57,820

63,174

67,573

65,477

62,662

64,025

67,936

65,671

64,926

70,227

5,415
2,083
3,332

5,849
1,182
4,667

7,480
1,416
6,064

7,250
1,598
5,652

6,938
1,953
4,985

6,446
1,609
( 2,281
X 2,556

7,852
1,794
3,176
2,882

r
7,652
'1,926
2,904
2,822

6,606
1,852
2,209
2,545

7,610
1,805
3,052
2,753

51,447
5,442
23,330
14,498
8,176

56,372
5,874
25,527
15,423
9,547

58,977
7,505
25,608
15,482
10,382

57,045
6,747
23,075
16,213
11,009

54,498
6,202
22,115
15,672
10,509

56,274
6,696
22,554
15,908
11,116

58,856
7,259
'23,472
'16,866
11,259

'56,636
'7,696
'20,527
'17,397
11,016

57,015
9,163
20,601
16,113
11,138

61,271
9,317
22,936
17,699
11,319

959

953

1,116

1,182

1,227

1,305

1,228

1,383

1,305

1,346

Bahamas and Caymans
96 Total, all currencies

45,203

66,774

79,052

82,947

84,409

82,083

84,692

82,145

85,654

88,754

97
98
99
100

To United States
11,147
Parent bank
7,628
Other banks in United States.
'
}
3,520
Nonbanks

22,721
16,161
6,560

32,176
20,956
11,220

38,380
23,854
14,526

37,256
22,289
14,967

37,350
23,255
( 5,625
I 8,470

'35,185
19,078
'5,514
'10,593

36,908
21,755
4,587
10,566

39,532
23,187
4,509
11,836

34,243
18,403
5,517
10,323

101
102
103
104
105

To foreigners
Other branches of parent bank..
Banks
Official institutions
Nonbank foreigners

42,899
13,801
21,760
3,573
3,765

45,292
12,816
24,717
3,000
4,759

43,153
10,839
23,374
3,060
5,880

45,610
10,288
25,847
3,489
5,986

43,394
11,250
21,452
4,419
6,273

'48,088
11,657
'25,752
4,583
'6,096

43,782
11,165
21,951
4,221
6,445

44,597
11,436
21,884
4,598
6,679

52,706
14,762
27,371
4,468
6,105

106

Other liabilities

1,414

1,543

1,339

1,419

1,455

1,525

1,805

80,243

78,254

80,650

78,131

81,314

84,316

107 Total payable in U.S. dollars
1

32,949
10,569
16,825
3,308
2,248
1,106

1,154

1,584

42,197

63,417

74,463

In May 1978 a broader category of claims on foreign public borrowers,
including corporations that are majority owned by foreign governments,
replaced the previous, more narrowly defined claims on foreign official
institutions.




78,467
2

In May 1978 the exemption level for branches required to report
was increased, which reduced the number of reporting branches.

A58

International Statistics • December 1978

3.14 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period
1978
Item

1975

1976

1977
Apr.
• r

May
A.

1 Total i
2 Liabilities reported by banks in the United
States 2
3 U.S. Treasury bills and certificates 3
U.S. Treasury bonds and notes:
4
Marketable
5
Nonmarketable 4
6 U.S. securities other than U.S. Treasury
securities 5

82,572

95,634 1 3 1 , 0 9 0

16,262
34,199

17,231
37,725

6,671
19,976

11,788
20,648

5,464

8,242

8
9
10
11
12
13

Western Europe 1
Canada
Latin America and Caribbean
Asia
Africa
Other countries 6

r

July

Aug.

Sept.?

Oct.*

By type
140,571

144,138 146,084 145,148 152,861

18,003
47,820

19,569
57,649

19,054
56,447

18,808
55,594

19,445
56,842

20,049
56,299

19,690
55,014

22,711
57,967

32,157
20,443

32,880
19,444

32,314
19,355

32,836
19,284

34,149
19,214

34,860
20,375

35,564
20,304

36,140
21,426

12,667

13,280

13,785

14,049

14,488

14,501

14,576

14,617

82,572

95,634 131,090 142,822 140,955 140,571 144,138 146,084 145,148

152,861

45,701
3,132
4,461
24,411
2,983
1,884

45,882
3,406
4,926
37,767
1,893
1,760

1 Includes the Bank for International Settlements.
2
Principally demand deposits, time deposits, bankers acceptances,
commercial paper, negotiable time certificates of deposit, and borrowings
under repurchase agreements.
3
Includes nonmarketable certificates of indebtedness (including those
payable in foreign currencies through 1974) and Treasury bills issued to
official institutions of foreign countries.
4
Excludes notes issued to foreign official nonreserve agencies. Includes
bonds and notes payable in foreign currencies.




June

142,822 140,955

r

B.
7 Total

r

70,748
2,334
4,649
50,693
1,742
924

73,761
2,477
5,567
58,050
1,872
1,095

By area

72,777
2,680
5,425
57,219
1,945
909

74,455
2,593
4,668
56,199
1,689
967

75,739
2,490
4,629
58,081
2,220
979

79,723
2,071
4,621
56,848
2,036
785

80,205
1,497
3,898
56,808
2,006
734

85,300
2,619
4,619
57,407
2,184
732

5 Debt securities of U.S. Govt, corporations and Federally sponsored
agencies, and U.S. corporate stocks and bonds.
6
Includes countries in Oceania and Eastern Europe.
NOTE.—Based on Treasury Dept. data and on data reported to the
Treasury Dept. by banks (including Federal Reserve Banks) and securities
dealers in the United States.
• For a description of the changes in the International Statistics
tables, see July 1978 BULLETIN, p. 612.

Nonbank-reported

Data

A59

3.15 LIABILITIES TO FOREIGNERS Reported by Banks in the United States
Payable in U.S. dollars
Millions of dollars, end of period

1975

Item

1976

1977
Apr.Ar
A.

95,590

1 All foreigners
2 Banks' own liabilities..
3
Demand deposits....
4
Time deposits 1
5
Other 2
6
Own foreign offices 3 .
7 Banks' custody liabilities 4
U.S. Treasury bills and certificates 5
8
9
Other negotiable and readily transferable
instruments 6
10
Other
11 Nonmonetary
international
organizations 7

and

16 Banks' custody liabilities 4
17
U.S. Treasury bills and certificates
18
Other negotiable and readily transferable
instruments 6
19
Other
20 Official institutions 8 .
21
22
23
24

Banks' own liabilities.
Demand deposits...
Time deposits 1
Other 2

25
26
27

Banks' custody liabilities 4
U.S. Treasury bills and certificates 5
Other negotiable and readily transferable
instruments 6
Other

29 Banks 9 .
30
31
32
33
34
35
36
37
38
39

Banks' own liabilities
Unaffiliated foreign banks.
Demand deposits
Time deposits 1
Other 2

50,461

2,701

54,956

75,255
57,126

••75,864
57,629

76,601
57,264

75,535
56,665

14,806
2,597

14,958
2,600

15,506
2,623

r

15,512
2,722

16,691
2,646

15,994
2,876

3,274

3,069

3,129

2,942

2,678

2,823

3,406

231
139

785
267
103
416

501
286
61
154

480
265
119
97

1,017
257
644

808
142
97
569

767
144
99
523

2,283
892

2,627
1,153

2,462
922

1,662
228

2,014
368

2,639
1,036

1,391

1,473

1,537
3

1,432

1,645

1,603

65,822

77,217

75,501

74,402

76,286

76,348

74,703

9,601
3,701
1.901
3; 999

9.017
3.092
1,982
3,943

8,453
2,611
1,981
3,862

9,422
3,473
2,277
3,673

9,085
2,643
2,595
3,848

9,462
3,307
2,563
3,592

67.616
57,649

66,483
56,447

65,949
55,594

66.864
56,842

67,263
56,299

65,241
55,014

9,479
489

9,453
583

9,857
498

9,498
524

10,326
638

9,636
592

46,762

43,338

43,363

42,921

45,532

50,321

42,495
13,995
10.220
1.375
2,399

38,960
14.165
10,338
1,325
2,502

38,824
13,454
10,164
1,255
2,035

38,358
13,680
10,240
1,321
2,119

41,028
13,073
9,229
1,390
2,454

45.542
13,775
9,711
1,606
2,458

28,500

24,795

25,369

24,679

27,955

31,767

4,267
314

4,378
363

4,540
300

r

4,562
269

4,504
296

4,779
307

2,182
1,771

2,251
1,764

2,355
1,885

r

2,416
1,877

2.381
1,828

2,538
1,934

14,736

14,837

15.166

15,218

15,407

15,829

15,507

4,304
7,546

12,460
3,762
8,280
418

12.836
4,106
8,173
557

12,914
4,149
484

12,631
3,983
8,208
441

13,009
4,090
8,552
368

12,632
4,041
8,226
365

2.376
286

2,330
297

2,304
310

2,776
290

2,819
301

2,875
308

1.754
336

1,780
253

1,757
237

2,165
320

2,339
179

2,218

9,255

9,290

9,428

9,385

9,964

9,793

706

3,394
2,321

3,528
1,797

34,199

37,725

47,820

7,534
1,873

37,174

9,104
2,297

Banks' custody liabilities 4
U.S. Treasury bills and certificates
Other negotiable6 and readily transferable
instruments
Other

41
42
43
44

Banks' own liabilities.
Demand deposits...
1
Time deposits
Other 2

45
46
47

Banks' custody liabilities 4
U.S. Treasury bills and certificates
Other negotiable and readily transferable
instruments 6
Other

335

10,100
3,248
4,823

325

119

12,814
4,015
6,524

198

49 MEMO: Negotiable time certificates of deposit
held in custody for foreigners
1
Excludes nejgotiable time certificates of deposit, which are included
in "Other negotiable and readily transferable instruments."
2
Includes borrowings under repurchase agreements.
3
U.S. banks: includes amounts due to own foreign branches and
foreign subsidiaries consolidated in "Consolidated Report of Condition"
filed with bank regulatory agencies. Agencies, branches, and majorityowned subsidiaries of foreign banks: principally amounts due to head
office or parent foreign bank, and foreign branches, agencies or whollyowned subsidiaries of head office or parent foreign bank.
4
Financial claims on residents of the United States, other than longterm
securities, held by or through reporting banks.
5
Includes nonmarketable certificates of indebtedness (including those
payable in foreign currencies through 1974) and Treasury bills issued to
official institutions of foreign countries.




143,938

75,818
58,260

2,644
3,423

29,330

137,293 140,532

76,542
59,140

48,906

2,554

141,884 137,133 135,926

68,403
17,203
12,495
6,939
31,767

40,744

42,335

10,933
2,040

141

240

Oct.?

By holder and type of liability

63,931
16,104
12,634
7,238
27,955

37,414

290
205

Sept.?

61.429
17,953
11,921
6,876
24,679

18,996
11,521

139
148

Aug.

60,671
17,189
11,635
6,477
25,369

16,803
11,347

5,714

July

61,315
17,823
11,542
7,156
24,795

13,564
10,267

5,699

June r

65,342
17,951
11,660
7.232
28,500

Own foreign offices 3

40 Other foreigners.

48

126,168

regional

12 Banks' own liabilities.
13
Demand deposits...
14
Time deposits 1
15
Other 2

28

110,657

Mayr

8,281

116

1

r

349

6
Principally bankers acceptances, commercial paper, and negotiable
time certificates 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."

NOTE.—Data for time deposits prior to April 1978 represent shortterm only.
A For a description of the changes in the International Statistics
Tables, see July 1978 BULLETIN, p. 612.

A60
3.15

International Statistics • December 1978
Continued
1978
Item

1975

1977

1976

Apr.Ar
B.
1 Total

95,590

110,657 126,168

2 Foreign countries.

89,891

104,943

3 Europe
4
Austria
Belgium-Luxembourg
Denmark
Finland
France
Germany
Greece
Italy
Netherlands
Norway
Portugal
Spain
Sweden
Switzerland
Turkey
United Kingdom
Yugoslavia
Other Western Europe 1
U.S.S.R
Other Eastern Europe 2

44,072
759
2,893
329
391
7,726
4,543
284
1,059
3,407
994
193
423
2,277
8,476
118
6,867
126
2,970
40
197

47,076
346
2,187
356
416
4.876
6,241
403
3,182
3,003
782
239
559
1,692
9,460
166
10,018
189
2,673
51
236

Sept.*>

134,615

137,709

140,532

63,214
324
3,019
1,063
433
5,521
11,023
588
6,013
3,015
1,465
164
659
3,177
13,121
249
11,029
192
1,909
62
186

'62,984
'352
2,893

64,302
'351
2,756
1,335
352
'6,550
10,029
597
'6,869
3,118
1,869
191
688
3,385
12,415

'64,662
372
2,277
1,542
407
7,353
9,727
646
'7,036
3,078
1,737
227
709
3,340
11,888
147
11,770
192
1,935
55
222

67,339
424
2,174
1,593
416
7,989
10,766
826
8,055
3,240
1.516
324
752
3,355
12,102
137
10,956
149
2,311
46
210

69,009
431
2,368
1,673
415
8,060
11,205
865
7,394
2,756
1,208
521
762
3,341
13,157
226
11,796
167
2,337
65
262

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
4,607
23,670
1,416
3,596
321
1,396
3,998
360
1,221
6
330

2,070
129
1,115
243
172
3,309
1,393

2,870
158
1,167
257
245
3,118
1,797

2,876
196
2,331
287
243
2,929
2,167

44 Asia
45
China, People's Republic of (Mainland).
46
China, Republic of (Taiwan)
47
Hong Kong
48
India
49
Indonesia
50
Israel
51
Japan
52
Korea
53
Philippines
54
Thailand
55
Middle East oil-exporting countries 5
56
Other Asia

22,384
123
1,025
605
115
369
387
10,207
390
700
252
7,355
856

29,766
48
990
894
638
340
392
14,363
438
628
277
9,360
1,398

30,488
53
1,013
1,094
961
410
559
14,616
602
687
264
8,979
1,250

57 Africa
58
Egypt
59
Morocco
60
South Africa
61
Zaire
62
Oil-exporting countries 6 .
63
Other Africa

3,369
342
68
166
62
'2,240
'491

2,298
333
87
141
36
'1,116
'585

2,535
404
174
39
1,155
698

2,697
455
31
167
46
1,393
605

64 Other countries.,
65
Australia
66
All other

2,119
2,006
113

2,012

1,905
107

1,297
1,140
158

67 Nonmonetary international and regional
organizations

5,699

5,714

68
69
70

5,415
188
96

5,157
267
290

1 Includes the Bank for International Settlements. Beginning April
1978, also includes Eastern European countries not listed in line 23.
2
Beginning April 1978 comprises Bulgaria, Czechoslovakia, German
Democratic Republic, Hungary, Poland, and Romania.
3
Included in "Other Latin America and Caribbean" through March
1978.
4
Includes Surinam through December 1975.
5 Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia,
and United Arab Emirates (Trucial States).

1,110

'396
'6,276
9,537
563
'6,364
2,993
1,643
288
717
3,302
12,534
200
11,609
168
'1,731
96
211

5,922

4,659

110

11,471
229
'1,666
66
255

6,600

5,816

5,623

5,890

5,122

'25,049
2,260
3,327
'339
1,298
3,949
361
1,300
7
318
552
46
'2,970
289
'2,609
274
208
3,298
'1,643

'25,425
1,692
'3,954
'396
1,220
'4,769
376
1,424
7
325
448
66
'2,776
320
'2,386
282
220
'3,157
'1,606

24,831
1,550
3,629
383
1,295
4,009
380
1,,429
9
378
415
75
2,921
435
2,639
309
218
3,229
1,530

27,259
1,453
4,601
372
1,382
5,474
346
1,486
10
347
419
59
3,171
288
2,628
311
185
3,208
1.517

29,276
1,393
7,245
409
1,351
5,378
351
1,431
7
405
347
78
3,113
317
2,741
320
197
2,558
1,637

36,424
50
1,224

'35,463
47

35,171

1,489
962
451
568
'19,731
817
688
304
'8,059
'1,285

1,195
1,191
798
597
519
20,374
714
640
320
7,267
1,510

33,463
44
1,262
1,211
762
309
440
19,755
736
566
296
6,719
1,364

33,390
45

937
649
486
20,153
111
601
258
8.961
1,211

33,665
53
1,053
1,085
899
330
476
19,020
748
595
297
7,894
'1,213

3,013
594
28
175
73
1,365
IIS

2,578
463
67
160
52
1,198
638

2,645
All
IA
238
45
1,270
601

29,092

1,861

7,259
373
1,412
4,814
394
1,329
6
356
458
41
2.960
212
2,226
309
221
3,225
1,636

1,118

'1,060

r

47

1,202
833
347
432
19,889
760
622
289
6,351
1,339

2,360
402
28
226
44
'979

1,467
1,258
209

1,267
1,129
138

' 1,414
'1,21
203

1,315
1,158
157

1,180
1,051
130

1,090
898
191

3,274

3,069

'3,129

2,942

2,678

2,823

3,406

2,752
278
245

2,601
162
306

2,430
430
'269

2,31
395
236

2,027
411
241

2,157
437
228

2,339
799
269

'681

150,871

1,280

2,643
461
29
185
49
1,244
'676

66

Oct.?

By area and country

132,983

19,132
1,534
2,770
218
1,438
1.877
337
1,021
6
320




Aug.

134,005

2,979

International
Latin American regional.
Other regional 7

July

141,884 '137,133 '135,926 '137,293 140,532 143,938

15,028
1,146
1,874
184
1,219
1,311
319
417
6
120

Canada.

June

122,893 138,816

25 Latin America and Caribbean
26
Argentina
27
Bahamas
28
Bermuda
29
Brazil
30
British West Indies
31
Chile
32
Colombia
33
Cuba
34
Ecuador
35
Guatemala 3
36
Jamaica 3
37
Mexico
38
Netherlands Antilles 4
39
Panama
40
Peru
41
Uruguay
42
Venezuela
43
Other Latin America and Caribbean.,

24

May

6
Comprises Algeria, Gabon, Libya, and Nigeria.
7
Asian, African, Middle Eastern, and European regional organizations,
except the Bank for International Settlements, which is included in
"Other Western Europe."

A For a description of the changes in the International Statistics
tables, see July 1978 BULLETIN, p. 612.

Nonbank-reported

Data

3.16 BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in U.S. Dollars
Millions of dollars, end of period
1978
Area and country

1975

1976

1977
Apr.Ar

Mayr

June

July

Aug.

Sept.f

1 Total

58,308

79,301

90,206

88,231

87,832

r

87,212

r

87,349

91,844

94,226

2 Foreign countries.

58,275

79,261

90,163

88,183

87,797

r

87,180

'87,313

91,806

94,187

11,109
35
286
104
180
1,565
380
290
443
305
131
30
424
198
199
164
5,170
210
76
406
513

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
1,334
338
162
175
722
218
564
360
8,964
31'
86
413
566

15,239
76
586
145

15,811
94
793
185
184
1,679
751
279
1,,184
468
209
132
699
184
390
306
6,951
285
137
362
536

r

16,249
105
731
145
182
1,891
787
204
965
383
217
126
706
219
685
309
n ,270
320
153
319
534

15,762
116
634
129
190
1,813
689
190
1,078
436
210
140
669
244
631
313
6,961
300
165
305
548

16,829
107
823
146
216
2,523
632
125
1,027
405
163
105
714
290
1,013
305
6,933
280
125
343
553

18,239
95
946
147
221
2,792
751
127
1,028
380
263
100
758
326
841
305
7,779
306
129
371
574

3 Europe
4
Austria
5
Belgium-Luxembourg...
6
Denmark
7
Finland
8
France
9
Germany
10
Greece
11
Italy
12
Netherlands
13
Norway
14
Portugal
15
Spain
16
Sweden
17
Switzerland
18
Turkey
19
United Kingdom
20
Yugoslavia
21
Other Western Europe 1.
22
U.S.S.R
23
Other Eastern E u r o p e 2 .

180

1,638
694
200
885
416
190
131
592
199
697
280
6,817
380
267
319
621

r

2,834

3,319

3,355

2,733

2,412

25 Latin America and Caribbean
26
Argentina
27
Bahamas
28
Bermuda
29
Brazil
30
British West Indies
31
Chile
32
Colombia
33
Cuba
34
Ecuador
35
Guatemala 3
36
Jamaica 3
37
Mexico
38
Netherlands Antilles 4
39
Panama
40
Peru
41
Uruguay
42
Venezuela
43
Other Latin America and Caribbean.

23,863
1,377
7,583
104
3,385
1,464
494
751
14
252

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

48,994
1,533
21,968
178
4,301
7,914
721
550

46,942
1,595
21,041
345
4,443
6,272
717
578

3,745
72
1,138
805
57
1,319
1,302

4,822
140
1,372
933
42
1,828
1,293

4,909
224
1,410
962
80
2,318
1,394

523
61
19
4,460
201
2,185
888
51
2,151

529
79
42
4,505
206
2,147
920
58
2,233
1,233

44 Asia
45
China, People's Republic of (Mainland).
46
China, Republic of (Taiwan)
47
Hong Kong
48
India
49
Indonesia
50
Israel
51
Japan
52
Korea
53
Philippines
54
Thailand
55
Middle East oil-exporting c o u n t r i e s 5 . . . .
56
Other Asia

17,706
22
1,053
289
57
246
721
10,944
1,791
534
520
744
785

3
1,344
316
69
218
755
11,040
1,978
719
442
1,459
r
863

19,236
10
1,719
543
53
232
584
9,839
2,336
594
633
1,746
947

18,045
20
1,412
826
53
165
432
9,528
1,850
614
686
1,492
967

19,448
22
1,456
754
70
137
494
9,741

1,933
123
8
657
181
382
581

2,311
126
27
957
112
524
565

2,518
119
43
1,066
98
510
682

2,226
79
35
1,039
77
426
569

2,218
72
37
1,055
80
441
533

830
700
130

772
597
175

1,090
905
186

947
780
167

33

40

43

48

24 Canada

57 Africa
58
Egypt
59
Morocco
60
South Africa
61
Zaire
62
Oil-exporting countries 6 .
63
Other
64 Other countries.,
65
Australia
66
All other
67 Nonmonetary International and Regional
Organizations 7

19,204

1 Includes the Bank for International Settlements. Beginning April
1978, also includes Eastern European countries not listed in line 23.
2
Beginning April 1978 comprises Bulgaria, Czechoslovakia, German
Democratic Republic, Hungary, Poland, and Romania.
3
Included in "Other Latin America and Caribbean" through March
1978.
4
Includes Surinam through December 1975.
5
Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia,
and United Arab Emirates (Trucial States).




1,288

2,493

3,116

3,343

3,447

45,990
r
l,556
18,725
145
r
4,659
7,412
745
615

46,974
1,572
19,643
145
4,599
6,872
745
648

49,469
1,566
22,172
194
4,858
6,885
809
690

50,265
1,694
19,898
141
5,264
8,400
742
728

562
90
53
r
4,865
212
r
l,901
930
53
r
2,240
r
1,227

546
83
49
5,068
206
2,278
918
52
2,337
1,212

560
115
44
5,004
198
1,625
928
56
2,515
1,250

646
78
46
4,978
230
2,280
966
52
2,752
1,371

r

1

r

19,317
13
1,343
769
80
146
468
10,023
r
2,328
r
680
711
r
rl,575

r

18,326

l,181

5
1,193
698
46
139
445
9,779
r
l r,937
641
725
1,551
1,167

18,918
31
1,177
666
73
125
504
9,876
1,925
743
693
1,951
1,155

2,136
70
38
1,054
79
383
r
512

2,133
79
36
1,036
79
340
563

2,267
62
42
1,058
79
459
566

2,160
67
38
1,025
82
407
542

965
798
166

995
828
167

1,002
836
167

980
835
145

1,069
900
169

34

31

36

38

39

1,801

751
730
2,521
970

r

19,007
8
1,241
689
76
151
544
10,215
1,930
733
634
1,668
1,117

6
Comprises Algeria, Gabon, Libya, and Nigeria.
7
Excludes the Bank for International Settlements, which is included
in "Other Western Europe."

• Data for period prior to April 1978 include claims of banks' domestic
customers on foreigners. For a description of the changes in the International Statistics tables, see July 1978 BULLETIN, p. 612.

A61

A62

International Statistics • December 1978

3.17 BANKS' OWN AND DOMESTIC CUSTOMERS' CLAIMS ON FOREIGNERS Reported by Banks in the
United States
Payable in U.S. Dollars
Millions of dollars, end of period
1978

1975

Type of claim

1976

1977
Apr.Ar

1 Total

58,308

79,301

May r

June r

July

Aug.

96,184

90,206

Sept.?

Oct.f

103,342

2 Banks' own claims on foreigners.

88,231

87,832

87,212

87,349

91,844

94,226

96,394

Foreign public borrowers.
Own foreign offices 1
Unaffiliated foreign banks.
Deposits
Other
All other foreigners

5,516
35,960
28,142
4,403
23,738
18,613

5,739
35,882
27,772
4,656
23,115
18.439

6,036
31,590
30,166
5,116
25,050
19,419

6,858
33,813
27,499
4,623
22,876
19,179

7,292
37,325
27,400
4.352
23,049
19,826

7,634
34,757
31,492
4,480
27,012
20,343

7,948
36,383
30,924
3,865
27,059
21,139

9 Claims of banks' domestic customers 2 .
10
11

Deposits
Negotiable and
readily transferable instruments 3
Outstanding collections and other c l a i m s 4 . . . .

12

13 MEMO: Customer liability on
1

8,973

5,467

5,756

acceptances.

U.S. banks: includes amounts due from own foreign branches and
foreign subsidiaries consolidated in "Consolidated Report of Condition"
filed with bank regulatory agencies. Agencies, branches, and majorityowned subsidiaries of foreign banks: principally amounts due from head
office or parent foreign bank, and foreign branches, agencies, or whollyowned
subsidiaries of head office or parent foreign bank.
2
Assets owned by customers of the reporting bank located in the
United States that represent claims on foreigners held by reporting banks
for the account of their domestic customers.




6,176

9,116

389

500

3,694
4,889

3,724
4,892

11,995

12,747

3

Principally negotiable time certificates of deposit and bankers acceptances.
4
Data for March 1978 and for period prior to that are outstanding
collections only.
NOTE.—Beginning April 1978, data for banks' own claims are given
on a monthly basis, but the data for claims of banks' domestic customers
are available on a quarterly basis only.
A For a description of the changes in the International Statistics
tables, see July 1978 BULLETIN, p. 612.

Nonbank-reported

Data

A63

3.18 BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Banks in the United States
Payable in U.S. Dollars
Millions of dollars, end of period

1978

Maturity; by borrower and area

Junef
1 Total
By borrower:
4

All other foreigners

1979

1978 A

1979

Dec.

Sept.f

55,128

59,516

43,682
2,919
40,763

46,684
3,640
43,044

5
6
7

Maturity of over 1 year *
Foreign public borrowers .
All other foreigners

11,445
3,162
8,283

12,832
3,928
8,904

8
9
10
11
12
13

By area:
Maturity of 1 year or less 1
Europe
Canada
Latin America and Caribbean
Asia
Africa
All other 2

9,532
1,615
17,036
13,515
1,461
523

10,386
1,943
18,518
13,712
1,535
591

14
15
16
17
18
19

Maturity of over 1 year*
Europe . . .
Canada
Latin America and Caribbean
Asia
Africa
All other 2

2,979
330
5,979
1,282
629
247

3,104
793
6,843
1,305
577
211

. . . . .

1 Remaining time to maturity.
Includes nonmonetary international and regional organizations.

Mar.

June

Sept.

• The first available data are for June 1978. For a description of the
changes in the International Statistics tables, see July 1978 BULLETIN,
p. 612.

2

3.19 LIABILITIES TO AND CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in Foreign CurrenciesA
Millions of dollars, end of period
1978

1977
Item

1974

1975

1976
Nov.

1 Banks' own liabilities
2 Banks' own claims 1
3
Deposits
4
Other claims
5 Claims of banks' domestic customers 2

766
1,276
669
607

560
1,459
656
802

1 Includes claims of banks' domestic customers through March 1978.
2 Assets owned by customers of the reporting bank located in the
United States that represent claims on foreigners held by reporting banks
for the accounts of their domestic customers.




781
1,834
1,103
731

944
2,086
841
1,245

Dec.

Jan.

925
2,356
941
1,415

831
2,371
940
1,432

Feb.
885
2,317
895
1,422

Mar.
986
2,383
948
1,435

1
NOTE.—Data on claims exclude foreign currencies held by U.S. monetary authorities.
A For a description of the changes in the International Statistics
Tables, see July 1978 BULLETIN, p. 612.

A64

International Statistics • December 1978

3.20 MARKETABLE U.S. TREASURY BONDS AND NOTES

Foreign Holdings and Transactions

Millions of dollars
1978

1978
Country or area

1976

1977
Jan.Oct.2>

Apr.

June

May

July

Aug.

Sept.P

Oct.P

Holdings (end of period)
1 Estimated total...

15,799

'38,640

'39,682

'39,387

'40,658

'41,148

'41,573

42,180

43,622

2 Foreign countries.

12,765

'33,894

'34,833

'34,366

'34,964

'36,306

'37,119

37,826

38,472

2,550
14
764
288
191
261
485
323
4

'73,936
19
3,168
911
100
'497
8,888
349
4

'13,628
19
3,820
1,079
175
'464
7,737
333

'72,966
19
4,031
1,070
175
'468
6,856
348

'75,706
19
4,361
1,113
185
'529
'6,527
371

' 14,226 '14,154
19
19
5,531
5,761
1,113
1,278
200
210
'590
'636
'6,403
'5,862
370
387

14,689
19
6,157
1,306
211
694
5.909
393

15,260
19
6,645
1,356
231
731
5,915
365

9
10

Europe
Belgium-Luxembourg..
Germany
Netherlands
Sweden
Switzerland
United Kingdom
Other Western Europe.
Eastern Europe

12

Canada.

256

288

253

261

264

275

276

276

151

13
14
15
16

Latin America and Caribbean
Venezuela
Other Latin American and Caribbean.
Netherlands Antilles

313
149
47
118

551
199
183
170

535
189
184
162

503
174
167
162

494
174
158
162

485
174
149
162

545
244
139
162

445
144
139
162

426
144
119
162

17
18

Asia
Japan.

9,323
2,687

18,745
6,860

20,070
8,332

20,137
8,964

20,605
9,616

20,831
9,927

21,647
10,791

21^919
11,096

21,938
11,560

19

Africa

543

362

341

491

491

491

491

491

691

11

6

8

4

-3

7

5

6

20

*

All other.

21 Nonmonetary international and regional
organizations
22
23

International
Latin American regional.

3,034

4,746

4,849

'5,021

5,694

4,842

'4,454

4,354

5,150

2,906
128

4,646
100

4,740
110

4,931
90

5,633
61

4,809
33

4,421
33

4,354

5,118
33

*

Transactions (net purchases, or sales (—), during period)
24 Total

8,096

'22,843

4,981 ' - 1 , 5 8 4

-295

'1,271

490

425

639

1,410

25 Foreign countries

5,393

'21,130

4,576 ' - 1 , 6 7 9

-467

'599

1,342

813

706

646

26
27

5,119
274

'20,369
'762

3,984 ' - 1 , 7 0 4
593
26

-566
98

'522
77

1,313
29

710
103

704
3

577
69

28 Nonmonetary international and regional
organizations

2,704

1,713

405

95

171

671

-852

-387

-67

764

MEMO: Oil-exporting countries
29
Middle East i
30
Africa 2

3,887
221

4,451
-181

-1,421
330

-72

-563
150

-185

-85

-31

-31

-401
200

Official institutions
Other foreign

1 Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia,
and United Arab Emirates (Trucial States).
2 Comprises Algeria, Gabon, Libya, and Nigeria.

3 Estimated official and private holdings of marketable U.S. Treasury
securities with an original maturity of more than 1 year. Data are based
on a benchmark survey of holdings as of Jan. 31, 1971, and monthly
transactions reports. Excludes nonmarketable U.S. Treasury bonds and
notes held by official institutions of foreign countries.

3.21 FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS
Millions of dollars, end of period

Assets

1975

1976

1978

1977
May

1 Deposits
Assets held in custody:
2
U.S. Treasury securities 1
3
Earmarked gold 2

July

Aug.

Sept.

Oct.

NOV.p

353

352

424

453

288

347

309

325

305

379

60,019
16,745

66,532
16,414

91,962
15,988

100,146
15,667

99,465
15,620

101,696
15,594

102,902
15,572

102,699
15,553

107,934
15,548

112,434
15,525

1 Marketable U.S. Treasury bills, certificates of indebtedness, notes,
and bonds; and nonmarketable U.S. Treasury securities payable in dollars
and in foreign currencies.
2 The value of earmarked gold increased because of the changes in
par value of the U.S. dollar in May 1972 and in October 1973.




June

NOTE.—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

3.22 FOREIGN TRANSACTIONS IN SECURITIES
Millions of dollars
1978
Transactions, and area or country

1978

1977

1976

Jan.Oct.f

Apr.

June'

May

Aug.

July

Sept.f

Oct.f

U.S. corporate securities

1
2

Stocks
Foreign purchases
Foreign sales

18,227
15,475

14,155
11,479

17,087
15,255

1,864
1,151

2,391
1,963

2,055
1,936

1,305
1,296

2,444
2,678

2,257
2,115

1,510
1,523

3

Net purchases, or sales ( —)

2,753

2,676

1,831

713

427

119

9

-235

141

-14

4

Foreign countries

2,740

2,661

1,878

720

427

139

9

-235

144

-15

336
256
68
-199
-100
340

1,006
40
291
22
152
613

980
85
348
-19
-476
1,078

508
79
125
16
103
173

323
-2
52
9
31
229

39
-39
83
-18
-76
101

-6
-15
17
9
-52
50

-152
9
-54
-22
-184
110

-33
2
24
7
-115
54

-91
-4
-30
7
-120
58

324
155
1,803
119
7
-4

65
127
1,390
59
5
8

-69
137
669
171
-10
1

44
37
97
35
-1

-58
36
90
39
-4

-12
33
59
23
-3

-16
-35
69
-5
1

-18
48
-134
35
-12
-1

17
1
120
35
5
-1

22
13
42
-4
2
2

13

15

-47

-7

1

-21

*

-3

1

5,529
'4,327

7,739
'3,546

6,638
4,494

'311
'345

'779
333

669
302

1,029
'596

872
490

611
542

733
530

5
6
7
8
9
10

Europe

11
12
13
14
15
16

Canada
Latin America and Caribbean
Middle East 1
Other Asia
Africa
Other countries

17

Germany
Netherlands
Switzerland
United Kingdom

Nonmonetary international and regional
organizations

*

*

*

*

*

2

Bonds
18
Foreign purchases
19
Foreign sales
20

Net purchases, or sales (—)

'1,202

'4,192

2,144

'-35

'446

367

'433

383

69

203

21

Foreign countries

'1,243

'4,096

1,938

'-33

'448

295

'411

330

72

143

'86
39
-49
-29
'155
23

'1,863
-34
'-20
72
'94
'1,703

797
9
111
25
-147
812

'-96
'-5
10
3
-33
-54

41
8
21
-3
-36
75

157
-3
14
-7
5
154

'387
13
18
11
-74
416

137
6
38
18
-20
89

89
-2
3
19
43

89
-10
-12
-4
9
110

96
94
1,179
-165
-25
-21

141
64
1,695
338
-6

13
1
33
'15

9
12
370
'14

6
2
91
39

14
-8
135
-116

24
17
99
52

16
11
-73
29

-5
13
-19
66

-41

96

22
23
24
25
26
27

Europe

28
29
30
31
32
33

Canada
Latin America and Caribbean
Middle East 1
Other Asia
Africa
Other countries

34

Germany
Netherlands
Switzerland

Nonmonetary international and regional
organizations

*

95
74
839
129
—1
4
207

*

*

1

1

-2

*
*

*

*

-1

*

1

*

*

*

*
*

72

22

53

-3

60

Foreign securities
35 Stocks, net purchases, or sales (—)
36
Foreign purchases
37
Foreign sales

-323
1,937
2,259

-410
2,255
2,665

373
3,069
2,696

143
404
261

-13
271
284

-61
247
308

10
333
323

51
382
331

-69
261
330

-19
299
318

38 Bonds, net purchases, or sales (—)
39
Foreign purchases
40
Foreign sales

-8,774 '-5,095
4,932
'8,040
13,706 '13,134

-3,620
9,115
12,735

-501
'1,221
'1,721

-39
1,017
1,056

-636
1,095
1,730

-291
921
1,212

-196
982
1,178

33
759
726

-683
935
1,618

41 Net purchases, or sales ( —) of stocks and bonds..

-9,097 '-5,504

-3,248

-358

-51

-697

-281

-145

-36

-702

42 Foreign countries
Europe
43
44
Canada
45
Latin America and Caribbean
46
Asia
47
Africa
Other countries
48

-7,199 '-3,947
-850 '-1,100
-5,245 -2,404
-3
-80
-733
'-97
48
2
-416
-267

-3,009
16
-2,967
187
353
-442
-155

'-429
'156
-807
120
'144
'-44
2

-67
-194
-80
72
131
4

-742
-220
-420
-68
192
-44
-182

-283
-171
-146
8
44
-25
7

-150
94
-161
-17
54
-123
3

-70
-86
-41
-12
69
-1
1

-513
13
-747
-17
231
1
6

49 Nonmonetary international and regional
organizations

-1,898

-239

70

16

45

2

5

34

-1,557

1
Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq,
Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial
States).




*

-189

2
Includes State and local government securities, and securities of U.S.
Govt, agencies and corporations. Also includes issues of new debt securities
sold abroad by U.S. corporations organized to finance direct investments
abroad.

A66

International Statistics • December 1978

3.23 SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS Reported by Nonbanking Concerns
in the United States
Millions of dollars, end of period
1977

1978

1977

1978

Type, and area or country
June

Sept.

Dec.

Mar.

June?

June

Sept.

Liabilities to foreigners

Dec.

Mar.

June?

Claims on foreigners

1 Total.

6,624

7,315

7,971

8,448

8,817

16,352

15,249

16,293

18,481

18,293

By type:
2
Payable in dollars.

5,909

6,459

7,171

7,564

7,992

15,192

14,132

14,863

16,762

16,711

801

884

825

1,160

1,117

1,430

1,718

1,582

3
4
5

Payable in foreign currencies
Deposits with banks abroad in reporter's
name
Other

By area or country:
6 Foreign countries
Europe.
Austria
9
Belgium-Luxembourg..
10
Denmark
Finland
12
France
13
Germany
14
Greece
15
Italy
16
Netherlands
17
Norway
18
Portugal
19
Spain
20
Sweden
21
Switzerland
22
Turkey
23
United Kingdom
24
Yugoslavia
Other Western Europe.
25
U.S.S.R
26
Other Eastern Europe.,
27
28

715

6,454
2,253
23
151
14
10
156
163
73
138
212
12
20
68
36
236
21
780
110
6
16
10

Canada.

857

7,161
2,335
19
126
16
11
170
226
78
107
180
12
12
74
41
257
97
784
92
9
11
14

8,685
3,028
26
167
22
9
323
355
82
156
221
13
25
105
38
282
92
976
84
18
19
18

620
809

724
995

616
907

16,351
5,799
26
212
40
90
413
377
86
440
182
42
30
322
92
179
37
3,012
28
15
76
102

15,248
5,077
24
226
44
59
430
393
52
352
161
38
34
307
91
146
32
2,495
20
15
62
96

16,291
5,797
24
211
56
13
513
453
41
387
166
42
69
387
117
220
39
2,825
20
25
55
135

18,479
5,626
21
187
47
13
545
411
42
382
184
42
27
408
117
238
35
2,706
24
33
44
121

18,291
5,326
28
155
40
53
543
419
40
459
187
47
54
376
78
296
29
2,374
27
29
37
56

451

504

530

524

2,709

2,649

2,682

3,429

3,486

1,186
40
308
49
17
42

1,352
53
310
62
14
26

1,419
74
307
78
23
27

5,000
51
2,309
457
28
72

4,619
53
1,963
414
40
85

4,491
53
2,028
517
45
84

5,895
53
3,108
499
40
80

6,067
61
3,108
494
37
79

114
22
15
3
222
118
25
209

169
12
22
5
280
107
41
250

185
71
17
9
197
101
30
299

301
121
28
5
237
237
8
1,146

302
222
30
5
251
257
8
989

314
91
32
5
269
281
12
759

312
175
30
6
306
268
24
994

331
97
30
4
311
235
19
1,261

29
30
31
32
33
34
35
36
37
38
39
40
41
42
43

Latin America
Argentina
Bahamas
Brazil
Chile
Colombia
Cuba
Mexico
Panama
Peru
Uruguay
Venezuela
Other Latin American republics.
Netherlands Antilles
Other Latin America

1,028
50
223
37
24
22
120
11
21
3
208
141
17
151

103
12
13
4
225
122
9
154

44
45
46
47
48
49
50
51
52
53
54
55

Asia.
China, People's Republic of (Mainland).
China, Republic of (Taiwan)
Hong Kong
India
Indonesia
Israel
Japan
Korea
Philippines
Thailand
Other Asia

2,017
2
138
27
41
80
45
183
88
73

56
57
58
59
60
61

Africa
Egypt
Morocco
South Africa.
Zaire
Other Africa.

62
63
64

Other countries.,
Australia
All other

*

*

*

*

*

*

*

*

*

*

2,850

3,000

1
167
32
26
57
68
761
99
95
11
1,535

170
29
11
59
59
799
107
107
27
1,631

2,323
1
131
93
51
184
70
927
158
90
22
591

2,403
P
139
73
42
185
46
1,026
153
111
24
590

2,782
9
157
98
38
375
38
1,068
171
99
23
708

2,976
22
144
85
85
185
47
1,379
133
94
32
770

2,836
21
173
93
93
153
43
1,157
170
94
30
808

591
13
112
20
46
400

612
19
130
30
55
378

603
25
148
39
57
335

370
24
11
69
17
248

346
22
10
75
19
221

393
38
21
75
15
245

408
33
22
71
11
111

433
38
16
85
16
279

111
93
18

93
75
18

104
89
14

111
97
14

149
110
40

153
113
41

146
111
35

145
111
34

144
109
34

154

215

147

132

1

1

1

1

2

2,640

1,329

152
25
44
60
58
604
75
78
17
1,526

2,871
8
156
40
37
56
63
695
103
74
17
1,623

609
33
72
27
39
438

588
45
105
29
48
361

98
78
20
170

NOTE.—Reported by exporters, importers, and industrial and commercial concerns and other nonbanking institutions in the United States.




8,301
2,854
26
171
23
12
273
335
108
104
253
9
7
94
37
229
93
954
82
8
15
23

414
703

448

1,035
50
229
76
13
24

65 Nonmonetary international and regional
organizations

7,756
2,512
21
116
14
9
238
284
85
128
232
7
11
77
28
263
108
756
90
10
24
12

448
713

Data exclude claims held through U.S. banks and intercompany accounts
between U.S. companies and their affiliates.

Nonbank-reported Data
3.24 SHORT-TERM CLAIMS ON FOREIGNERS

A67

Reported by Large Nonbanking Concerns in the United States

Millions of dollars, end of period
1978
Type and country

1974

1976

1975

1977
June

July

Aug.

Sept.*

1 Total

3,357

3,799

5,720

7,179

9,306

9,679

8,912

8,924

10,092

8,550

By type:
2
Payable in dollars
3
Deposits
Short-term investments 1 .
4

2,660
2,591
69

3,042
2,710
332

4,984
4,505
479

6,158
5,740
418

8,090
7,367
723

8,534
7,897
637

7,771
7,218
553

7,639
7,156
483

8,804
8,243
561

7,331
6,894
437

697
429
268

757
511
246

735
404
331

1,021

1,216

1,145
544
601

1,142
599
543

1,285
669
616

1,289
669
620

1,220
725
495

1,350
967
391
398
252

1,306
1,156
546
343
446

1,838
1,698
1,355
133
716

1,660
2,866
3,612
266
1,275

1,683
2,547
2,975
273
1,435

1,861
2,513
3,222
286
1,042

1,839
3,008
3,541
292
1,412

2,171
2,440
2,235
905
799

5
6
7
8
9
10
11
12

Payable in foreign currencies
Deposits
Short-term investments 1 .
By country:
United Kingdom
Canada
Bahamas
Japan
All other

i Negotiable and other readily transferable foreign obligations payable
on demand or having a contractural maturity of not more than 1 year
from the date on which the obligation was incurred by the foreigner.

553
468

645
571

2,144
1,777
1,904
153

1,817

2,810

3,025
318
1,336

1,201

NOTE.—Data represent the assets abroad of large nonbanking concerns in the United States. They are a portion of the total claims on
foreigners reported by nonbanking concerns in the United States and
are included in the figures shown in Table 3.26.

3.25 LONG-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS
in the United States

Reported by Nonbanking Concerns

Millions of dollars, end of period
1977

1977

1978

1978

Area and country
June

Dec.

Sept.

Mar.

June»

June

Sept.

Dec.

Mar.

June*

Claims on foreigners

Liabilities to foreigners
1 Total

3,358

3,388

3,259

3,234

3,158

4,914

4,715

5,073

5,140

5,060

2 Europe
3
Germany
Netherlands
4
5
Switzerland
6
United Kingdom

2,504
370
262
177
1,277

2,602
407
272
224
1,295

2,499
255
287
241
1,276

2,571
295
292
241
1,284

2,494
282
266
236
1,270

901
76
147
43
283

829
76
81
42
282

860
70
82
49
310

935
73
81
48
332

936
65
76
55
363

79

76

71

67

66

1,486

1,462

1,776

1,792

1,811

250
142
6
1
30

250
141
7
1
28

1,452
34
125
208
178

1,367
36
134
201
187

1,402
40
144
203
177

1,387
42
154
194
183

1,298
2
143
190
188

284
250

286
251

851
111

829
94

817
66

810
83

803
78

7 Canada
8 Latin America
9
Bahamas
10
Brazil
11
Chile
12
Mexico

297
160
7
1
26

289
151
7
1
30

284
148
7
1
30

13 Asia
14
Japan

408
386

358
319

342
305

15 Africa
16 All other 1

3

3

2

2

2

158

165

161

156

154

67

59

60

60

60

67

63

59

60

59

* Includes nonmonetary international and regional organizations.




A68

International Statistics • December 1978

3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKS
Per cent per annum
Rate on Nov. 30, 1978

Rate on Nov. 30, 1978
Country

Argentina
Austria
Belgium
Brazil
Canada
Denmark

Country
Per
cent.

Month
effective

Per
cent

France
Germany, Fed. Rep. of.
Italy
Japan
Mexico
Netherlands

18.0
Feb. 1972
June 1978
4.5
6.0
July 1978
33.6
July 1978
10.75 Nov. 1978
8.0
July 1977

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

3.27

Rate on Nov. 30, 1978

Country

9.5
3.0
10.5
3.5
4.5
6.5

Month
effective
Aug.
Dec.
Sept.
Mar.
June
Oct.

1977
1977
1978
1978
1942
1978

Per
cent
7.0
6.5
1.0
12.5
5.0

United Kingdom

Month
effective
Feb.
July
Feb.
Nov.
Oct.

1978
1978
1978
1978
1970

more than one rate applicable to such discounts or advances, the rate
shown is the one at which it is understood the central bank transacts the
largest proportion of its credit operations.

FOREIGN SHORT-TERM INTEREST RATES
Per cent per annum, averages of daily figures
1978
1975

Country, or type

1977

1976

June
1 Euro-dollars
2 United Kingdom
3 Canada
4
5
6
7

Aug.

Oct.

Sept.

Nov.

7.02
10.63
8.00

5.58
11.35
9.39

6.03
8.07
7.47

8.33
10.02
8.12

8.52
10.13
8.23

8.48
9.42
8.77

9.12
9.29
9.08

10.12
10.44
9.68

11.51
12.00
10.37

4.87
3.01
5.17
7.91

4.19
1.45
7.02
8.65

4.30
2.56
4.73
9.20

3.61
1.38
4.60
7.94

3.71
1.74
5.61
7.61

3.64
0.67
6.27
7.39

3.67
0.58
6.91
7.40

3.90
0.24
11.23
7.37

3.81
0.20
8.86
7.06

10.37
6.63
11.64

16.32
10.25
7.70

14.26
6.95
6.22

11.75
5.61
4.75

11.75
5.84
4.75

11.75
7.09
4.64

10.94
7.24
4.51

10.99
8.55
4.44

11.17
9.19
4.78

Germany
Switzerland
Netherlands
France

8 Italy
9 Belgium
10 Japan

July

NOTE.—Rates are for 3-month interbank loans except for—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

Country/currency

1975

1976

1978

1977
June

July

Aug.

Sept.

Oct.

Nov.

Australia/dollar
Austria/shilling
Belgium/franc
Canada/dollar
Denmark/krone

130.77
5.7467
2.7253
98.30
17.437

122.15
5.5744
2.5921
101.41
16.546

110.82
6.0494
2.7911
94.112
16.658

113.83
6.6718
3.0590
89.143
17.723

114.94
6.7547
3.0864
88.921
17.846

115.41
6.9490
3.1834
87.690
18.171

115.29
7.0102
3.2207
85.739
18.411

116.87
7.4526
3.4503
84.546
19.584

114.53
7.1808
3.3389
85.244
19.025

6
7
8
9
10

Finland/markka
France/franc
Germany/deutsche m a r k . . .
Jndia/rupee
Ireland/pound

27.285
23.354
40.729
11.926
222.16

25.938
20.942
39.737
11.148
180.48

24.913
20.344
43.079
11.406
174.49

23.390
21.841
47.984
11.900
183.72

23.809
22.531
48.647
12.245
189.49

24.381
22.998
50.084
12.483
194.06

24.586
22.909
50.778
12.445
195.95

25.454
23.767
54.430
12.643
200.75

24.932
22.958
52.508
12.458
196.08

11
12
13
14
15

Italy/lira
Japan /yen
Malaysia/ringgit
Mexico/peso
Netherlands/guilder

16
17
18
19
20

New Zealand/dollar
Norway/krone
Portugal/escudo
South Africa/rand
Spain/peseta

121.16
19.180
3.9286
136.47
1.7424

99.115
18.327
3.3159
114.85
1.4958

96.893
18.789
2.6234
114.99
1.3287

101.90
18.450
2.1857
114.93
1.2587

103.85
18.524
2.1939
115.00
1.2885

105.42
19.018
2.2042
115.00
1.3344

105.58
19.189
2.1948
115.00
1.3605

107.37
20.325
2.2342
115.00
1.4317

105.41
19.736
2.1510
115.04
1.4051

21
22
23
24

Sri Lanka/rupee
Sweden/krona
Switzerland/franc
United Kingdom/pound...

14.385
24.141
38.743
222.16

11.908
22.957
40.013
180.48

11.964
22.383
41.714
174.49

6.2859
21.690
53.046
183.72

6.3245
22.012
55.443
189.49

6.3926
22.523
60.013
194.06

6.3855
22.592
63.765
195.95

6.3757
23.349
65.117
200.75

6.4695
22.856
59.766
196.08

1
2
3
4
5

MEMO:

25 United States/dollar*

.15328
.33705
41.753
8.0000
39.632

r

98.34

.12044
.33741
39.340
6.9161
37.846

'105.57

.11328
.37342
40.620
4.4239
40.752

'103.31

.11634
.46744
41.964
4.3840
44.716

'94.74

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
the Weighted-Average Exchange Value of the U.S. Dollar: Revision" on
page 700 of the August 1978 BULLETIN.




.11804
.50101
42.447
4.3756
45.076

92.44

.11952
.53002
43.433
4.3758
46.203

89.99

.12050
.52656
43.603
4.3907
46.733

89.51

.12317
.54478
45.627
4.3904
50.017

86.04

.11857
.52066
45.415
4.3881
48.512

88.86

NOTE.—Averages of certified noon buying rates in New York for cable
transfers.

Business Finance

A69

4.10 SALES, REVENUE, PROFITS, AND DIVIDENDS—Large Manufacturing Corporations
Millions of dollars
1976
Industry

1977

Q3

Q4

Q1

Q2

Total (170 corps.)
Sales
Total revenue
Profits before taxes
Profits after taxes
MEMO: PAT unadjusted 1
Dividends

667,821
676,596
71,885
34,707
36,016
14,491

748,757
758,013
78,909
37,854
38,391
17,532

161,596
164,631
16,894
8,442
8,550
3,480

180,462
181,546
18,587
8,113
9,340
4,371

177,430
179,496
18,874
9,056
9,107
3,840

190,302
192,996
21,468
10,472
10,553
4,269

Nondurable goods industries (86 corps.): 2
Sales
Total revenue
Profits before taxes
Profits after taxes
MEMO: PAT unadjusted 1
Dividends

362,935 404,141
368,184 409,601
42,694 45,906
22,284
18,571
19,768
19,468
8,944
7,910

88,678
90,967
10,632
4,871
4,962
1,990

99,926
100,174
10,793
4,058
4,868
2,094

95,836
96,948
11,074
4,837
4,880
2,185

101,035
102,807
12,064
5,160
5,224
2,227

Durable goods industries (84 corps.): 3
Sales
Total revenue
Profits before taxes
Profits after taxes
MEMO: PAT unadjusted 1
Dividends

304,886
308,412
29,191
16,136
16,548
6,577

344,616
348,412
33,003
18,283
17,804
8,588

72,918
73,664
6,262
3,571
3,588
1,490

80,536
81,372
7,794
4,055
4,472
2,277

81,594
82,548
7,800
4,219
4,227
1,655

62,568
63,142
5,750
2,890
3,013
1,259

68,422
69,168
6,040
3,172
3,309
1,433

16,048
16,221
1,462
817
827
309

16,701
16,533
1,310
630
734
318

64,125
64,837
8,197
4,511
4,622
1,918

70,251
70,906
8,530
4,604
4,831
2,186

15,878
16,084
2,008
1,130
1,163
481

196,154 221,694
199,688 225,338
28,144
25,857
10,072
9,555
10,684
10,168
4,615
4,089

Selected industries:
Food and kindred products (28 corps.):
Sales
Total revenue
Profits before taxes
Profits after taxes
MEMO: PAT unadjusted 1
Dividends
Chemical and allied products (22 corps.):
Sales
Total revenue
Profits before taxes
Profits after taxes
MEMO: PAT unadjusted 1
Dividends
Petroleum refining (15 corps.):
Sales
Total revenue
Profits before taxes
Profits after taxes
MEMO: PAT unadjusted 1
Dividends

1978

1976
Q3

Q4

Qlr

180,384 200,641
182,488 203.033
20,421
18,146
8,989
9,337
10,075
8,656
5,438
3,985

195,072
197,471
19,725
9,693
9,684
4,306

97,144
98,232
11,195
5,144
5,234
2,268

110,126
111,614
11,573
4,430
5,249
2,264

104,522
105,877
11,347
5,137
5,136
2,402

89,267
90,189
9,404
5,312
5,329
2,042

83,240
84,256
6,951
4,193
3,422
1,717

90,515
91,419
8,848
4,559
4,826
3,174

90,550
91,594
8,378
4,556
4,548
1,904

15,903
16,155
1,448
739
746
342

16,776
17,136
1,560
825
835
352

16,947
17,239
1,526
826
836
364

18,796
18,638
1,506
782
892
375

17.470
17,860
1,535
839
840
397

16,410
16,612
1,893
929
1,081
548

17,103
17,271
2,112
1,192
1,181
514

17,347
17,526
2,290

1,289
539

17,586
17,743
2,062
1,184
1,178
553

18,215
18,366
2,066
940
1,183
580

18,930
19.117
2,353
1.334
1,317
567

46,923
48,744
6,559
2,606
2,635
1,036

56,510
56,649
6,834
2,085
2,617
1,065

52,344
52,891
6,746
2,498
2,546
1,163

55,903
57,096
7,396
2,655
2,708
1,160

51,593
52,130
6,818
2,694
2,756
1,166

61,854
63,221
7,184
2,225
2,674
1,126

56,996
37,695
6.832
2.615
2,627
1,247

1,288

Primary metals and products (23 corps.):
Sales
Total revenue
Profits before taxes
Profits after taxes
MEMO: PAT unadjusted 1
Dividends

54,044
54,825
2,834
1,652
1,947
926

58,713
59,488
1,476
1,579
1,474

13,751
13,958
701
513
521
230

13,119
13,313
576
127
400
251

13,773
13,963
460
260
274
234

15,573
15,769
100
536
553
246

14,454
14,636
239
493
287
266

14,913
15,120
677
290
360
342

15,459
15,681
390
173
183
226

Machinery (27 corps.):
Sales
Total revenue
Profits before taxes
Profits after taxes
MEMO: PAT unadjusted 1
Dividends

87,274
88,519
11,320
6,181
6,202
2,383

96,820
98,380
13,158
7,158
7,204
3,495

21,133

2,700
1,461
1,467
602

24,059
24,460
3,370
1,837
1,864
663

22,727
23,051
2,900
1,573
1,571
712

24,380
24,702
3,318
1,805
1,804
767

24,317
24,767
3,264
1,771
1,782
702

25,396
25,860
3,676
2,009
2,047
1,314

25,472
25,831
3,209
1,749
1,745
823

107,563
108,394
8,909
4,870
4,918
2,062

127,049
127,816
10,738
5,747
5,861
2,607

24,250
24,500
1,272
705
704
372

28,208
28,250
2,087
1,166
1,219
983

31,069
31,350
2,988
1,599
1,603
392

33,502
33,716
3,489
1,914
1,926
698

28,835
29,104
1,575
892
898
413

33,643
33,646
2,686
1,342
1,434
1,104

33,713
33,987
2,986
1,654
1,648
473

Motor vehicles and equipment (9 corps.):
Sales
Total revenue
Profits before taxes
Profits after taxes
MEMO: PAT unadjusted 1
Dividends

1,088

1
Profits after taxes unadjusted are as reported by the individual companies. These data are not adjusted to eliminate differences in accounting
treatments of special charges, credits, and other nonoperating items.
2
Includes 21 corporations in groups not shown separately.
3 Includes 25 corporations in groups not shown separately.

NOTE.—Data are obtained from published reports of companies and
reports made to the Securities and Exchange Commission. Sales are net




21,280

Q2

of returns, allowances, and discounts, and exclude excise taxes paid directly by the company. Total revenue data include, in addition to sales,
income from nonmanufacturing operations and nonoperating income.
Profits are before dividend payments and have been adjusted to exclude
special charges and credits to surplus reserves and extraordinary items not
related primarily to the current reporting period. Income taxes (not
shown) include Federal, State and local government, and foreign.
Previous series last published in June 1972 BULLETIN, p. A-50.

70

Federal Reserve Board of Governors
G . WILLIAM MILLER, Chairman

PHILIP E . COLDWELL

HENRY

J. C H A R L E S

C.

WALLICH

PARTEE

OFFICE O F STAFF DIRECTOR FOR
M O N E T A R Y A N D FINANCIAL POLICY

OFFICE O F B O A R D M E M B E R S
THOMAS J. O ' C O N N E L L , Counsel
to the
Chairman
JOSEPH R . C O Y N E , Assistant
to the
Board
K E N N E T H A . G U E N T H E R , Assistant
to the
Board
SIDNEY L . JONES, Assistant
to the
Board
JAY P A U L B R E N N E M A N , Special
Assistant
to the

Board
FRANK O ' B R I E N , J R . , Special
Assistant
to the
Board
JOSEPH S . SIMS, Special
Assistant
to the
Board
D O N A L D J. W I N N , Special
Assistant
to the
Board

STEPHEN H . AXILROD, Staff
Director
EDWARD C . ETTIN, Deputy
Staff
Director
MURRAY A L T M A N N , Assistant
to the
Board
PETER M . KEIR, Assistant
to the
Board
STANLEY J. SIGEL, Assistant
to the
Board
NORM AND R . V . BERNARD, Special
Assistant

to

the

Board

DIVISION O F R E S E A R C H A N D STATISTICS
L E G A L DIVISION
N E A L L . PETERSEN, General
Counsel
ROBERT E . M A N N I O N , Associate
General
A L L E N L . RAIKEN, Associate
General
CHARLES R . M C N E I L L , Assistant
to the

JAMES L . KICHLINE,
Director
JOSEPH S . ZEISEL, Deputy
Director
JOHN H . KALCHBRENNER, Associate
Counsel
Counsel
General

Counsel

JOHN J. MINGO, Senior

Research

ELEANOR J. STOCKWELL, Senior

Director

Division

Officer
JAMES R. WETZEL, Senior Research
JAMES M . B R U N D Y , Associate

Officer

Research

Division

Division

Research

Officer

Division

Officer

OFFICE O F T H E S E C R E T A R Y

ROBERT A . EISENBEIS, Associate

Research

Division

Officer
THEODORE E . ALLISON,
Secretary
GRIFFITH L . GARWOOD, Deputy
Secretary
*JOHN M . WALLACE, Assistant
Secretary
RICHARD H . PUCKETT, Manager,
Regulatory

Improvement

Project

JARED J. E N Z L E R , Associate

Research

Division

Officer
J. CORTLAND G . PERET, Associate

Division

Research

Officer

MICHAEL J. PRELL, Associate

Research

Division

Officer
HELMUT F . W E N D E L , Associate

DIVISION O F C O N S U M E R AFFAIRS

ROBERT M . FISHER, Assistant
JANET O . H A R T ,
Director
NATHANIEL E . BUTLER, Associate
JERAULD C . KLUCKMAN, Associate

Research

Division

Officer
Research

Division

Officer
Director
Director

FREDERICK M . STRUBLE, Assistant

Research

Division

Officer
STEPHEN P . TAYLOR, Assistant

Research

Division

Officer

DIVISION O F B A N K I N G
SUPERVISION A N D R E G U L A T I O N

LEVON H . GARABEDIAN, Assistant

Director

DIVISION O F I N T E R N A T I O N A L FINANCE
JOHN E . R Y A N ,
Director
TFREDERICK C . SCHADRACK, Deputy
Director
FREDERICK R . D A H L , Associate
Director
WILLIAM W . W I L E S , Associate
Director
JACK M . EGERTSON, Assistant
Director

DON E. KLINE, Assistant
ROBERT S . PLOTKIN, Assistant
THOMAS A . SIDMAN, Assistant
SAMUEL H . TALLEY, Assistant
WILLIAM TAYLOR, Assistant

Director
Director
Director
Director
Director

EDWIN M . T R U M A N ,
Director
ROBERT F . GEMMILL, Associate
Director
GEORGE B . H E N R Y , Associate
Director
CHARLES J. SIEGMAN, Associate
Director
SAMUEL PIZER, Senior
International
Division

Officer
JEFFREY R . SHAFER, Associate

International

Division

Officer
D A L E W . HENDERSON, Assistant

International

Division

Officer
LARRY J. PROMISEL, Assistant
*On loan f r o m the Federal Reserve Bank of Atlanta.
f O n loan from the Federal Reserve Bank of N e w York.




International

Division

Officer
RALPH W . SMITH, J R . , Assistant

Officer

International

Division

71

and Official Staff
NANCY H . TEETERS

OFFICE OF
STAFF DIRECTOR FOR

MANAGEMENT

JOHN M. DENKLER, Staff
Director
ROBERT J. LAWRENCE, Deputy Staff
D O N A L D E . ANDERSON, Assistant

Construction

WILLIAM H . W A L L A C E , Staff

Equal Employment

Director

for

of

PROCESSING

CHARLES L . HAMPTON,
Director
BRUCE M . BEARDSLEY, Associate
Director
UYLESS D . BLACK, Assistant
Director

GLENN L. CUMMINS, Assistant

DAVID L . S H A N N O N ,

Director

CHARLES W . W O O D , Assistant

HARRY A. GUINTER, Assistant

Director

JOHN KAKALEC,
Controller
EDWARD T . M U L R E N I N , Assistant

Controller

DIVISION OF ADMINISTRATIVE

JOHN D . SMITH, Assistant




LORIN S . MEEDER, Assistant

CONTROLLER

WALTER W . KREIMANN,

Director
Director

Director

Director
Director

OPERATIONS

JAMES R . KUDLINSKI,
Director
WALTER A L T H A U S E N , Assistant
Director
BRIAN M . CAREY, Assistant
Director

Director

JOHN L. GRIZZARD, Assistant

P. D. RING, Assistant

RAYMOND L . T E E D , Assistant

DIVISION OF
FEDERAL RESERVE BANK

Director

PERSONNEL

JOHN R. WEIS, Assistant

ALBERT R . HAMILTON,
Director
CLYDE H . FARNSWORTH, J R . , Associate
Director
CHARLES W . B E N N E T T , Assistant
Director
JOHN F . HOOVER, Assistant
Director

Director

ROBERT J. ZEMEL, Assistant

OFFICE OF THE

DIVISION OF FEDERAL RESERVE
BANK EXAMINATIONS AND BUDGETS

Opportunity

DIVISION OF DATA

DIVISION OF

Director

Director

Management

JOSEPH W . DANIELS, S R . , Director

OFFICE OF STAFF DIRECTOR FOR
FEDERAL RESERVE BANK ACTIVITIES

SERVICES

Director
Director

A 72

Federal Reserve Bulletin • December 1978

FOMC and Advisory Councils
FEDERAL OPEN MARKET COMMITTEE
G.

WILLIAM MILLER,

ERNEST T .
PHILIP E .

Chairman

BAUGHMAN
COLDWELL

PAUL A .

VOLCKER,

Vice

HENRY C.

NANCY H.

MARK H .

WILLES

WILLIS J.

WINN

TEETERS

DAVID P. EASTBURN

Secretary
Assistant
Secretary
T H O M A S J . O ' C O N N E L L , General
Counsel
E D W A R D G . G U Y , Deputy General
Counsel
R O B E R T E . M A N N I O N , Assistant General
Counsel
STEPHEN H . AXILROD,
Economist
J O S E P H B U R N S , Associate
Economist
J O H N M . D A V I S , Associate
Economist
V.

BERNARD,

ALAN R.
PETER D .

HOLMES,

WALLICH

Associate
Economist
Associate
Economist
IRA K A M I N O W , Associate
Economist
P E T E R M . K E I R , Associate
Economist
J A M E S L . K I C H L I N E , Associate
Economist
J O H N P A U L U S , Associate
Economist
E D W I N M . T R U M A N , Associate
Economist
J O S E P H S . Z E I S E L , Associate
Economist

MURRAY ALTMANN,
NORMAND R.

Chairman

J. CHARLES PARTEE

RICHARD G .

DAVIS,

EDWARD C.

ETTIN,

Manager, System Open Market Account
Deputy Manager for Domestic
Operations
Deputy Manager for Foreign Operations

STERN LIGHT,

SCOTT E .

PARDEE,

FEDERAL A D V I S O R Y COUNCIL
GILBERT F.
J. W .
HENRY S.

WOODBRIDGE,

WALTER B .
WILLIAM B .
M.

WRISTON,

T E N T H F E D E R A L RESERVE D I S T R I C T ,

FIRST DISTRICT

FRANK A .

S E C O N D DISTRICT

RICHARD H .

FIFTH DISTRICT
HERBERT V .

President
President

PLUMMER,

CLARENCE C .

F O U R T H DISTRICT

LUMPKIN,

Vice

SIXTH

DISTRICT

EDWARD BYRON SMITH, SEVENTH

E A G L E S O N , J R . , T H I R D DISTRICT

BROCK W E I R ,

JOHN H .

B R A D L E Y , T W E L F T H FEDERAL RESERVE DISTRICT,

MCLEAN,

JAMES D .

BARKSDALE,
VAUGHAN,

BERRY,

EIGHTH

NINTH

ELEVENTH

DISTRICT
DISTRICT

DISTRICT

DISTRICT

Secretary
Associate
Secretary

PROCHNOW,

WILLIAM J. KORSVIK,

CONSUMER A D V I S O R Y COUNCIL
K. S U L L I V A N , St. Louis, Missouri, Chairman
D. W A R R E N , Los Angeles, California, Vice Chairman
R I C H A R D F. K E R R , Cincinnati, Ohio
R O L A N D E . B R A N D E L , San Francisco, California
R O B E R T J . K L E I N , New York, New York
A G N E S H . B R Y A N T , Detroit, Michigan
P E R C Y W . L O Y , Portland, Oregon
J O H N G . B U L L , Fort Lauderdale, Florida
R . C. M O R G A N , El Paso, Texas
R O B E R T V. B U L L O C K , Frankfort, Kentucky
R E E C E A. O V E R C A S H , JR., Dallas, Texas
L I N D A M. C O H E N , Washington, D.C.
R A Y M O N D J . S A U L N I E R , New York, New York
R O B E R T R . D O C K S O N , Los Angeles, California
A N N E G . D R A P E R , Washington, D.C.
E. G . S C H U H A R T , Dalhart, Texas
C A R L F E L S E N F E L D , New York, New York
B L A I R C. S H I C K , Cambridge, Massachusetts
J E A N A. F o x , Pittsburgh, Pennsylvania
J A M E S E. S U T T O N , Dallas, Texas
M A R C I A A. H A K A L A , Omaha, Nebraska
T H O M A S R . S W A N , Portland, Maine
J O S E P H F. H O L T I I I , Oxnard, California
A N N E G A R Y T A Y L O R , Alexandria, Virginia
R I C H A R D H . H O L T O N , Berkeley, California
R I C H A R D D. W A G N E R , Simsbury, Connecticut
E D N A D E C O U R S E Y J O H N S O N , Baltimore, Maryland
R I C H A R D L . W H E A T L E Y , JR., Stillwater, Oklahoma




LEONOR

WILLIAM

A 73

Federal Reserve Banks, Branches, and Offices
FEDERAL RESERVE BANK,
branch, or facility
Zip

Chairman
Deputy Chairman

President
First Vice President

BOSTON*

02106

Louis W. Cabot
Robert M. Solow

Frank E. Morris
James A. Mcintosh

NEW YORK*

10045

Robert H. Knight
Boris Yavitz
Donald R. Nesbitt

Paul A. Volcker
Thomas M. Timlen

Buffalo

14240

John T. Keane

PHILADELPHIA

19105

John W. Eckman
Werner C. Brown

David P. Eastburn
Richard L. Smoot

CLEVELAND*

44101

Willis J. Winn
Walter H. MacDonald

Cincinnati
Pittsburgh

45201
15230

Robert E. Kirby
Otis A. Singletary
Lawrence H. Rogers, II
G. Jackson Tankersley

RICHMOND*

23261

E. Angus Powell
Maceo A. Sloan
I. E. Killian
Robert C. Edwards

Robert P. Black
George C. Rankin

Baltimore
21203
Charlotte
28230
Culpeper Communications
and Records Center . 22701
ATLANTA
Birmingham
Jacksonville
Miami
Nashville
New Orleans

30303
35202
32203
33152
37203
70161

CHICAGO*

60690

Detroit

48231

ST. LOUIS

63166

Little Rock
Louisville
Memphis

72203
40201
38101

MINNEAPOLIS

55480

Helena
KANSAS CITY
Denver
Oklahoma City
Omaha
DALLAS
El Paso
Houston
San Antonio

59601
64198
80217
73125
68102
75222
79999
77001
78295

SAN FRANCISCO

94120

Los Angeles
Portland
Salt Lake City
Seattle

90051
97208
84125
98124

Vice President
in charge of branch

Robert E. Showalter
Robert D. Duggan

Jimmie R. Monhollon
Stuart P. Fishburne
Albert D. Tinkelenberg

Clifford M. Kirtland, Jr.
William A. Fickling, Jr.
Harold B. Blach, Jr.
James E. Lyons
Alvaro L. Carta
John C. Bolinger
Edwin J. Caplan

Monroe Kimbrel
Kyle K. Fossum

Robert H. Strotz
John Sagan
Jordan B. Tatter

Robert P. Mayo
Daniel M. Doyle

Armand C. Stalnaker
William B. Walton
G. Larry Kelley
James H. Davis
Jeanne L. Holley

Lawrence K. Roos
Donald W. Moriarty

James P. McFarland
Stephen F. Keating
Patricia P. Douglas

Mark H. Willes
Thomas E. Gainor

Harold W. Andersen
Joseph H. Williams
A. L. Feldman
Christine H. Anthony
Durward B. Varner

Roger Guffey
Henry R. Czerwinski

Irving A. Mathews
Charles T. Beaird
Josefina Salas-Porras
Alvin I. Thomas
Pete Morales, Jr.

Ernest T. Baughman
Robert H. Boykin

Joseph F. Alibrandi
Cornell C. Maier
Caroline L. Ahmanson
Loran L. Stewart
Sam Bennion
Lloyd E. Cooney

John J. Balles
John B. Williams

Hiram J. Honea
Charles B. East
F. J. Craven, Jr.
Jeffrey J. Wells
George C. Guynn

William C. Conrad

John F. Breen
Donald L. Henry
L. Terry Britt

John D. Johnson

Wayne W. Martin
William G. Evans
Robert D. Hamilton

Fredric W. Reed
J. Z. Rowe
Carl H. Moore

Richard C. Dunn
Angelo S. Carella
A. Grant Holman
Gerald R. Kelly

* 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.




A 74

Federal Reserve Board Publications
Available from Publications Services, Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551.
Where
a charge is indicated,
remittance should
accompany

request and be made payable to the order of the Board
of Governors of the Federal Reserve System in a form
collectible
at par in U.S. currency.
(Stamps
and
coupons are not
accepted.)

THE

B A N K CREDIT-CARD AND CHECK-CREDIT P L A N S .

FEDERAL
RESERVE
SYSTEM—PURPOSES
FUNCTIONS. 1 9 7 4 . 1 2 5 p p .

AND

A N N U A L REPORT

SURVEY OF CHANGES IN FAMILY FINANCES.

FEDERAL RESERVE B U L L E T I N .

Monthly.

$20.00

per

year or $2.00 each in the United States, its possessions, Canada, and Mexico; 10 or more of same
issue to one address, $ 1 8 . 0 0 per year or $1.75
each. Elsewhere, $ 2 4 . 0 0 per year or $ 2 . 5 0 each.
BANKING

AND

MONETARY

STATISTICS,

1914-1941.

(Reprint of Part 1 only) 1976. 682 pp. $5.00.
BANKING

AND

MONETARY

STATISTICS,

1968.

102 pp. $ 1 . 0 0 each; 10 or more to one address,
$.85 each.

1941-1970.

1976. 1,168 pp. $15.00.
A N N U A L STATISTICAL DIGEST, 1 9 7 1 - 7 5 . 1 9 7 6 . 3 3 9 p p .

$ 4 . 0 0 per copy for each paid subscription to Federal Reserve Bulletin. All others, $5.00 each.
A N N U A L STATISTICAL DIGEST, 1 9 7 2 - 7 6 . 1 9 7 7 . 3 8 8 p p .

$10.00 per copy.
A N N U A L STATISTICAL DIGEST, 1 9 7 3 - 7 7 . 1 9 7 8 . 3 6 1 p p .

1968.

321

pp. $ 1 . 0 0 each; 10 or more to one address, $.85
each.
REPORT OF THE JOINT TREASURY-FEDERAL RESERVE
S T U D Y OF THE U . S . GOVERNMENT SECURITIES

MARKET. 1969. 48 pp. $.25 each; 10 or more to
one address, $.20 each.
JOINT TREASURY-FEDERAL RESERVE STUDY OF THE
GOVERNMENT SECURITIES MARKET: STAFF S T U D -

IES—PART 1. 1970. 86 pp. $ . 5 0 each; 10 or more
to one address, $ . 4 0 each. PART 2. 1971. 153 pp.
and PART 3. 1973. 131 pp. Each volume $1.00;
10 or more to one address, $.85 each.
O P E N MARKET POLICIES AND OPERATING PROCED U R E S — S T A F F STUDIES.
1971. 2 1 8 pp.
$2.00

each; 10 or more to one address, $1.75 each.

$ 1 2 . 0 0 per c o p y .
FEDERAL RESERVE CHART BOOK. Issued four t i m e s a

REAPPRAISAL OF THE FEDERAL RESERVE DISCOUNT
MECHANISM. Vol. 1. 1 9 7 1 . 2 7 6 p p . Vol. 2 . 1 9 7 1 .

year in February, May, August, and November
Subscription includes one issue of Historical Chart
Book. $7.00 per year or $2.00 each in the United
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HISTORICAL CHART BOOK. Issued annually in Sept.
Subscription to Chart Book includes one issue.
$1.25 each in the United States, its possessions,
Canada, and Mexico; 10 or more to one address,
$1.00 each. Elsewhere, $ 1 . 5 0 each.

173 pp. Vol. 3. 1972. 220 pp. Each volume $3.00;
10 or more to one address, $ 2 . 5 0 each.

CAPITAL MARKET DEVELOPMENTS. W e e k l y . $ 1 5 . 0 0 p e r

year or $ . 4 0 each in the United States, its possessions, Canada, and Mexico; 10 or more of same
issue to one address, $13.50 per year or $.35 each.
Elsewhere, $ 2 0 . 0 0 per year or $ . 5 0 each.
SELECTED INTEREST AND EXCHANGE R A T E S — W E E K L Y
SERIES OF CHARTS. W e e k l y . $ 1 5 . 0 0 p e r y e a r or

$ . 4 0 each in the United States, its possessions,
Canada, and Mexico; 10 or more of same issue
to one address, $ 1 3 . 5 0 per year or $.35 each.
Elsewhere, $ 2 0 . 0 0 per year or $.50 each.
THE FEDERAL RESERVE ACT, as a m e n d e d through D e -

cember 1976, with an appendix containing provisions of certain other statutes affecting the Federal
Reserve System. 307 pp. $2.50.
REGULATIONS OF THE BOARD OF GOVERNORS OF THE
FEDERAL RESERVE SYSTEM
PUBLISHED INTERPRETATIONS OF THE BOARD OF G O V -

ERNORS, as of June 30, 1977. $7.50.
INDUSTRIAL P R O D U C T I O N — 1 9 7 6 EDITION.

1977.

304

pp. $ 4 . 5 0 each; 10 or more to one address, $ 4 . 0 0
each.




T H E ECONOMETRICS OF PRICE DETERMINATION

CON-

FERENCE, October 30-31, 1970, Washington, D . C .
1972. 397 pp. Cloth ed. $5.00 each; 10 or more
to one address, $ 4 . 5 0 each. Paper ed. $ 4 . 0 0 each;
10 or more to one address, $ 3 . 6 0 each.
FEDERAL RESERVE STAFF S T U D Y : W A Y S TO MODERATE
FLUCTUATIONS
IN
HOUSING
CONSTRUCTION .

1972. 487 pp. $ 4 . 0 0 each; 10 or more to one
address, $ 3 . 6 0 each.
LENDING

FUNCTIONS

OF

THE

FEDERAL

RESERVE

BANKS. 1973. 271 pp. $ 3 . 5 0 each; 10 or more
to one address, $ 3 . 0 0 each.
IMPROVING THE MONETARY AGGREGATES ( R e p o r t of t h e

Advisory Committee on Monetary Statistics).
1976. 43 pp. $ 1 . 0 0 each; 10 or more to one
address, $.85 each.
A N N U A L PERCENTAGE R A T E TABLES ( T r u t h in

Lend-

ing—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 address, $.85 each.
FEDERAL RESERVE MEASURES OF CAPACITY AND C A PACITY UTILIZATION. 1 9 7 8 . 4 0 p p . $ 1 . 7 5 e a c h ,

10 or more to one address, $1.50. each.
T H E B A N K 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.

Federal Reserve Board Publications

CONSUMER EDUCATION

REPRINTS

PAMPHLETS

(Short pamphlets suitable for classroom
copies available without
charge.)

use.

Multiple

CONSUMER HANDBOOK T O CREDIT PROTECTION L A W S
T H E E Q U A L CREDIT OPPORTUNITY A C T AND . . . A G E
T H E E Q U A L CREDIT OPPORTUNITY A C T A N D . . .
CREDIT RIGHTS IN HOUSING
T H E E Q U A L CREDIT OPPORTUNITY A C T A N D . . .
DOCTORS, LAWYERS, SMALL RETAILERS,
AND
OTHERS W H O M A Y PROVIDE INCIDENTAL CREDIT
T H E E Q U A L CREDIT OPPORTUNITY A C T AND .
WOMEN
FAIR CREDIT BILLING
A G U I D E TO FEDERAL RESERVE REGULATIONS
H o w TO FILE A CONSUMER CREDIT COMPLAINT
IF Y O U BORROW T O B U Y STOCK
IF Y O U U S E A CREDIT C A R D
TRUTH IN LEASING
U . S . CURRENCY
W H A T T R U T H IN L E N D I N G M E A N S TO Y O U
STAFF ECONOMIC

subjects
economic

SUMMARIES O N L Y PRINTED IN THE B U L L E T I N

(Limited supply of mimeographed
copies of full text
available upon request for single
copies.)
STRUCTURE A N D PERFORMANCE STUDIES IN B A N K I N G :
A SUMMARY A N D E V A L U A T I O N , b y S t e p h e n A .

Rhoades. Dec. 1977. 45 pp.
1960, by John T. Rose. Jan. 1978. 4 4 pp.
PROBLEMS IN APPLYING DISCRIMINANT ANALYSIS IN
CREDIT SCORING M O D E L S , b y R o b e r t A . E i s e n b e i s .

Jan. 1978. 28 pp.
FINANCING

REQUIREMENTS

OF

COMMERCIAL BANKS: 1977-81, by Gerald A. Hanweck and John J. Mingo. Feb. 1978. 34 pp.
MORTGAGE BORROWING A G A I N S T EQUITY IN EXISTING
HOMES: M E A S U R E M E N T , G E N E R A T I O N , A N D IMPLICATIONS FOR ECONOMIC ACTIVITY, b y D a v i d F .

Seiders. May 1978. 42 pp.
T H E BEHAVIOR OF MEMBER B A N K REQUIRED RESERVE
RATIOS AND THE EFFECTS OF BOARD A C T I O N ,

1968-77, by Thomas D. Simpson. July 1978. 39
pp.
FOOTHOLD ACQUISITIONS A N D B A N K MARKET STRUC-

TURE, by Stephen A. Rhoades and Paul Schweitzer, July 1978. 8 pp.
INTEREST RATE CEILINGS AND DISINTERMEDIATION, b y

Edward F. McKelvey. Sept. 1978. 105 pp.
T H E RELATIONSHIP B E T W E E N RESERVE RATIOS A N D
THE M O N E T A R Y AGGREGATES U N D E R RESERVES
A N D FEDERAL F U N D S R A T E OPERATING TARGETS,

by Kenneth J. Kopecky. Dec. 1978. 58 pp.
PRINTED IN F U L L IN THE B U L L E T I N

Staff Economic




Studies

MEASURES OF SECURITY CREDIT. 1 2 / 7 0 .
REVISION OF B A N K CREDIT SERIES. 1 2 / 7 1 .
ASSETS A N D LIABILITIES OF FOREIGN BRANCHES OF
U . S . BANKS. 2 / 7 2 .
B A N K DEBITS, DEPOSITS, A N D DEPOSIT T U R N O V E R —
REVISED SERIES. 7 / 7 2 .
YIELDS ON N E W L Y ISSUED CORPORATE B O N D S . 9 / 7 2 .
RECENT ACTIVITIES OF FOREIGN BRANCHES OF U . S .
BANKS. 1 0 / 7 2 .
REVISION OF CONSUMER CREDIT STATISTICS. 1 0 / 7 2 .
O N E - B A N K HOLDING COMPANIES BEFORE THE 1 9 7 0
AMENDMENTS. 1 2 / 7 2 .
YIELDS ON RECENTLY OFFERED CORPORATE B O N D S .
5/73.
RATES ON CONSUMER INSTALMENT L O A N S . 9 / 7 3 .
N E W SERIES FOR LARGE M A N U F A C T U R I N G CORPORATIONS. 1 0 / 7 3 .
U . S . ENERGY SUPPLIES A N D U S E S , Staff
Economic
T H E STRUCTURE OF MARGIN CREDIT. 4 / 7 5 .
N E W STATISTICAL SERIES ON L O A N COMMITMENTS AT
SELECTED LARGE COMMERCIAL B A N K S . 4 / 7 5 .
RECENT TRENDS IN FEDERAL B U D G E T POLICY. 7 / 7 5 .
RECENT DEVELOPMENTS IN INTERNATIONAL FINANCIAL
MARKETS. 1 0 / 7 5 .
M I N N I E : A SMALL VERSION OF THE M I T - P E N N - S S R C

ECONOMETRIC MODEL, Staff Economic Study by
Douglas Battenberg, Jared J. Enzler, and Arthur
M. Havenner. 11/75.
A N ASSESSMENT OF B A N K HOLDING COMPANIES,

A N ANALYSIS OF FEDERAL RESERVE ATTRITION SINCE

CAPITAL

(Except for Staff Papers, Staff Economic Studies, and
some leading articles, most of the articles reprinted do
not exceed 12 pages.)

Study by Clayton Gehman. 12/73.

STUDIES

Studies and papers on economic and financial
that are of general interest in the field of
research.

EXTERNAL

A 75

shown under

4

'Reprints."

Staff

Economic Study by Robert J. Lawrence and Samuel H. Talley. 1/76.
INDUSTRIAL ELECTRIC POWER U S E . 1 / 7 6 .
REVISION OF M O N E Y STOCK M E A S U R E S . 2 / 7 6 .
SURVEY OF FINANCE COMPANIES, 1 9 7 5 . 3 / 7 6 .
REVISED SERIES FOR MEMBER B A N K DEPOSITS
AGGREGATE RESERVES. 4 / 7 6 .

AND

INDUSTRIAL P R O D U C T I O N — 1 9 7 6 R e v i s i o n . 6 / 7 6 .
FEDERAL RESERVE OPERATIONS IN PAYMENT M E C H A NISMS: A S U M M A R Y . 6 / 7 6 .
RECENT G R O W T H IN ACTIVITIES OF U . S . OFFICES OF
BANKS. 1 0 / 7 6 .
N E W ESTIMATES OF CAPACITY UTILIZATION: M A N U FACTURING A N D MATERIALS. 1 1 / 7 6 .
B A N K HOLDING C O M P A N Y FINANCIAL DEVELOPMENTS
IN 1 9 7 6 . 4 / 7 7 .
SURVEY OF TERMS OF B A N K L E N D I N G — N E W SERIES.
5/77.
T H E COMMERCIAL PAPER M A R K E T . 6 / 7 7 .
CONSUMPTION A N D FIXED INVESTMENT IN THE ECONOMIC RECOVERY A B R O A D . 1 0 / 7 7 .
RECENT DEVELOPMENTS
IN U . S .
INTERNATIONAL
TRANSACTIONS. 4 / 7 8 .
T H E FEDERAL B U D G E T IN THE 1 9 7 0 ' S .

9/78.

SUMMARY MEASURES OF THE DOLLAR'S FOREIGN E X CHANGE V A L U E . 1 0 / 7 8 .
SURVEY OF TIME AND SAVINGS DEPOSITS AT A L L COMMERCIAL B A N K S , JULY 1 9 7 8 . 1 1 / 7 8 .

A 76

Federal Reserve Bulletin • December 1978

ANTICIPATED SCHEDULE OF RELEASE DATES FOR PUBLIC PERIODIC RELEASES
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
DATE OR PERIOD
TO WHICH D A T A
REFER

WEEKLY RELEASES

APPROXIMATE
RELEASE D A Y

Aggregate Reserves and Member Bank Deposits 502 (H.3)

Tuesday

Week ended previous
Wednesday

Applications and Reports Received or Acted on and All Other Actions
of the Board 501 (H.2)

Friday

Week ended previous
Saturday

Assets and Liabilities of All Commercial Banks in the United
States 510 (H.8)

Wednesday

Wednesday, 2 weeks
earlier

Tuesday

Week ended previous
Saturday

Wednesday

Wednesday, 1 week
earlier

Wednesday

Week ended 3 Wednesdays earlier

Thursday

Week ended previous
Wednesday

Monday

Week ended previous
Friday

Thursday

Week ended Wednesday of previous week

Friday

Week ended Wednesday of previous week

Monday

Week ended previous
Saturday

Weekly Condition Report of Large Commercial Banks in New York
and Chicago 506 (H.4.3)

Thursday

Previous Wednesday

Weekly Condition Report of Large Commercial Banks and Domestic
Subsidiaries 504 (H.4.2) 3

Wednesday

Wednesday, 1 week
earlier

Weekly Summary of Banking and Credit Measures 511 (H.9)

Thursday

Week ended previous
Wednesday; and
week ended Wednesday of previous
week

1st and 16th
of month

Period since last release

Assets and Liabilities of all Member Banks, by Districts 408 (G.7.1)

14th of month

Last Wednesday of
previous month

Automobile Credit 428 (G.26)

6th working day
of month

2nd month previous

Changes in State Member Banks 615 (K.3)
Commercial and Industrial Loans Outstanding by Industry 514 (H.12)2
Deposits, Reserves, and Borrowings of Member Banks 509 (H.7)
Factors Affecting Bank Reserves and Condition Statement of Federal
Reserve Banks 503 (H.4.1)
Foreign Exchange Rates 512 (H.10)
Money Stock Measures 508 (H.6)
Reserve Positions of Major Reserve City Banks 507 (H.5)
Selected Interest Rates and Bond Prices 519 (H.15)

SEMIMONTHLY RELEASE
Research Library—Recent Acquisitions 601 (J.2)

MONTHLY RELEASES

1
Release dates are those anticipated or usually met. H o w e v e r , it should be noted that for s o m e 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.
2
On second Wednesday of month, contains monthly data release.
3
Contains revised H . 4 . 3 data.

NOTE.—The Board's official mailing list is being computerized, and n e w three-digit identification c o d e s have been assigned
to each individual release. The n e w c o d e , as well as the current symbol, will be used for several months; thereafter, only
the n e w code will appear.




A 77

APPROXIMATE
RELEASE D A Y

D A T E OR PERIOD
TO WHICH D A T A
REFER

Capacity Utilization: Manufacturing and Materials 402 (G.3)

17th of month

Previous month

Changes in Status of Banks and Branches 404 (G.4.5)

25th of month

Previous month

Consumer Instalment Credit 421 (G.19)

3rd working
day of month

2nd month previous

MONTHLY RELEASES (cont.)

Debits and Deposit Turnover at Commercial Banks 406 (G.6)

25th of month

Previous month

Federal Reserve System Memorandum on Exchange Charges 628 (K. 14)

5th of month

Period since last release

Finance Companies 422 (G.20)

5th working
day of month

2nd month previous

Foreign Exchange Rates 405 (G.5)

1st of month

Previous month

Industrial Production 414 (G.12.3)

15th of month

Previous month

Interest Rates on Selected Consumer Instalment Loans at Reporting
Commercial Banks 411 (G.10)

15th of month

2nd month previous

Loan Commitments at Selected Large Commercial Banks 423 (G.21)

20th of month

2nd month previous

Maturity Distribution of Outstanding Negotiable Time Certificates of
Deposit 410 (G.9)

24th of month

Last Wednesday of
previous month

Monthly Report of Condition for U.S. Agencies, Branches, and Domestic
Banking Subsidiaries of Foreign Banks 412 (G.ll)

15th of month

2nd month previous

Selected Interest Rates and Bond Prices 415 (G.13)

6th of month

Previous month

Summary of Equity Security Transactions 418 (G.16)

Last week of
month

Release date

Monthly Supplement to Survey of Terms of Bank Lending 416
(G. 14)

15th of month

3rd month previous

QUARTERLY RELEASES
Finance Rates and Other Terms on Selected Types of Consumer
25th of January,
Instalment Credit Extended by Major Finance Companies 120 (E. 10) April, July,
October

2nd month previous

Flow of Funds: Seasonally adjusted and unadjusted 780 ( Z . l )

15th of February, May,
August,
November

Previous quarter

Geographical Distribution of Assets and Liabilities of Major Foreign
Branches of U . S . Banks 121 ( E . l l )

15th of
March, June,
September,
December

Previous quarter

Sales Revenue, Profits, and Dividends of Large Manufacturing Corpo- 10th of March
July, Septemrations 116 (E.6)
ber, December

2nd quarter previous

S E M I A N N U A L RELEASES
Assets and Liabilities of Commercial Banks, by Class of Bank
113 (E.3.4)

May and November

End of previous December and June

Check Collection Services—Federal Reserve System 119 (E.9)

February
and July

Previous 6
months




A 78

Federal Reserve Bulletin • December 1978

SEMIANNUAL RELEASES (cont.)
APPROXIMATE
RELEASE D A Y

DATE OR PERIOD
TO WHICH D A T A
REFER

List of OTC Margin Stocks 117 (E.7)

June 30, December 31

Release date

Assets, Liabilities, and Capital Accounts of Commercial and Mutual
Savings Banks—Reports of Call (Joint Release of the Federal
Deposit Insurance Corp., the Board of Governors of the Federal
Reserve System, and Office of the Comptroller of the Currency.

May and November

End of previous December and June

Aggregate Summaries of Annual Surveys of Security Credit Extension
101 (C.2)

February

End of previous June

Insured Bank Income by Size of Bank 103 (C.4)

End of May

Previous year

State Member Banks of Federal Reserve System and Nonmember
Banks that Maintain Clearing Accounts with Federal Reserve
Banks 403 (G.4)

1st quarter of
year

End of previous year

15th of month

Previous month

Published and distributed by FDIC.)
A N N U A L RELEASES

(Supplements issued monthly)




79

Index to Statistical Tables
References are to pages A-3 through A-69 although the prefix "A" is omitted in this index
ACCEPTANCES, bankers, 11, 25, 27
Agricultural loans, commercial banks, 18, 2 0 - 2 2 , 26
Assets and liabilities (See also Foreigners):
Banks, by classes, 16, 17, 18, 2 0 - 2 3 , 29
Domestic finance companies, 39
Federal Reserve Banks, 12
Nonfinancial corporations, current, 38
Automobiles:
Consumer instalment credit, 42, 43
Production, 48, 49
BANKERS balances, 16, 18, 20, 21, 22
(See also Foreigners)
Banks for cooperatives, 35
Bonds (See also U . S . Govt, securities):
New issues, 36
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, 12
Central banks, 68
Certificates of deposit, 23, 27
Commercial and industrial loans:
Commercial banks, 15, 18, 23, 26
Weekly reporting banks, 20, 21, 22, 23, 24
Commercial banks:
Assets and liabilities, 3, 15-19, 2 0 - 2 3
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, 24, 25, 27, 39
Condition statements (See Assets and liabilities)
Construction, 46, 50
Consumer instalment credit, 42, 43
Consumer prices, 46, 51
Consumption expenditures, 52, 53
Corporations:
Profits, taxes, and dividends, 37
Sales, revenue, profits, and dividends of large
manufacturing corporations, 69
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, 14
Customer credit, stock market, 28
DEBITS to deposit accounts, 13
Debt (See specific types of debt or




securities)

Demand deposits:
Adjusted, commercial banks, 13, 15, 19
Banks, by classes, 16, 17, 19, 2 0 - 2 3
Ownership by individuals, partnerships, and
corporations, 25
Subject to reserve requirements, 15
Turnover, 13
Deposits (See also specific types of deposits):
Banks, by classes, 3, 16, 17, 19, 2 0 - 2 3 , 29
Federal Reserve Banks, 4, 12
Subject to reserve requirements, 15
Turnover, 13
Discount rates at F.R. Banks (See Interest rates)
Discounts and advances by F.R. Banks (See Loans)
Dividends, corporate, 37, 69
EMPLOYMENT, 46, 47
Euro-dollars, 27
FARM mortgage loans, 41
Farmers Home Administration, 41
Federal agency obligations, 4, 11, 12, 13, 34
Federal and Federally sponsored credit agencies, 35
Federal finance:
Debt subject to statutory limitation and
types and ownership of gross debt, 32
Receipts and outlays, 30, 31
Treasury operating balance, 30
Federal Financing Bank, 30, 35
Federal funds, 3, 6, 18, 20, 21, 22, 27, 30
Federal home loan banks, 35
Federal Home Loan Mortgage Corp., 35, 40, 41
Federal Housing Administration, 35, 40, 41
Federal intermediate credit banks, 35
Federal land banks, 35, 41
Federal National Mortgage Assn., 35, 40, 41
Federal Reserve Banks:
Condition statement, 12
Discount rates (See Interest rates)
U.S. Govt, securities held, 4, 12, 13, 32, 33
Federal Reserve credit, 4, 5, 12, 13
Federal Reserve notes, 12
Federally sponsored credit agencies, 35
Finance companies:
Assets and liabilities, 39
Business credit, 39
Loans, 20, 21, 22, 42, 43
Paper, 25, 27
Financial institutions, loans to, 18, 2 0 - 2 2
Float, 4
Flow of funds, 44, 45
Foreign:
Currency operations, 12
Deposits in U.S. banks, 4, 12, 19, 20, 21, 22
Exchange rates, 68
Trade, 55
Foreigners:
Claims on, 60, 61, 66, 67
Liabilities to, 23, 5 6 - 5 9 , 6 4 - 6 7
GOLD:
Certificates, 12
Stock, 4, 55
Government National Mortgage Assn., 35, 40, 41
Gross national product, 52, 53

A 80

Federal Reserve Bulletin • December 1978

HOUSING, new and existing units, 50
INCOME, personal and national, 46, 52, 53
Industrial production, 46, 48
Instalment loans, 42, 43
Insurance companies, 29, 32, 33, 41
Insured commercial banks, 17, 18, 19
Interbank deposits, 16, 17, 20, 21, 22
Interest rates:
Bonds, 3
Business loans of banks, 26
Federal Reserve Banks, 3, 8
Foreign countries, 68
Money and capital markets, 3, 27
Mortgages, 3, 40
Prime rate, commercial banks, 26
Time and savings deposits, maximum rates, 10
International capital transactions of the United
States, 5 6 - 6 7
International organizations, 5 6 - 6 1 , 6 4 - 6 7
Inventories, 52
Investment companies, issues and assets, 37
Investments (See also specific types of investments):
Banks, by classes, 16, 17, 18, 20, 21, 22, 29
Commercial banks, 3, 15, 16, 17, 18
Federal Reserve Banks, 12, 13
Life insurance companies, 29
Savings and loan assns., 29
LABOR force, 47
Life insurance companies (See Insurance
companies)
Loans (See also specific types of loans):
Banks, by classes, 16, 17, 18, 2 0 - 2 3 , 29
Commercial banks, 3, 15-18, 2 0 - 2 3 , 24, 26
Federal Reserve Banks, 3, 4, 5, 8, 12, 13
Insurance companies, 29, 41
Insured or guaranteed by U . S . , 40, 41
Savings and loan assns., 29
MANUFACTURING:
Capacity utilization, 46
Production, 46, 49
Margin requirements, 10
Member banks:
Assets and liabilities, by classes, 16, 17, 18
Borrowings at Federal Reserve Banks, 5, 12
Number, by classes, 16, 17, 19
Reserve position, basic, 6
Reserve requirements, 9
Reserves and related items, 3, 4, 5, 15
Mining production, 49
Mobile home shipments, 50
Monetary aggregates, 3, 15
Money and capital market rates (See Interest
rates)
Money stock measures and components, 3, 14
Mortgages (See Real estate loans)
Mutual funds (See Investment companies)
Mutual savings banks, 3, 10, 2 0 - 2 2 , 29, 32, 33, 41
NATIONAL banks, 17, 19
National defense outlays, 31
National income, 52
Nonmember banks, 17, 18, 19
OPEN market transactions, 11
PERSONAL income, 53
Prices:
Consumer and wholesale, 46, 51
Stock market, 28
Prime rate, commercial banks, 26
Production, 46, 48
Profits, corporate, 37, 69




REAL estate loans:
Banks, by classes, 18, 2 0 - 2 3 , 29, 41
Life insurance companies, 29
Mortgage terms, yields, and activity, 3, 40
Type of holder and property mortgaged, 41
Reserve position, basic, member banks, 6
Reserve requirements, member banks, 9
Reserves:
Commercial banks, 16, 18, 20, 21, 22
Federal Reserve Banks, 12
Member banks, 3, 4, 5, 15, 16, 18
U.S. reserve assets, 55
Residential mortgage loans, 40
Retail credit and retail sales, 42, 43, 46
SALES, revenue, profits, and dividends
of large manufacturing corporations, 69
Saving:
Flow of funds, 44, 45
National income accounts, 53
Savings and loan assns., 3, 10, 29, 33, 4 l , 44
Savings deposits (See Time deposits)
Savings institutions, selected assets, 29
Securities (See also U.S. Govt, securities):
Federal and Federally sponsored agencies, 35
Foreign transactions, 65
New issues, 36
Prices, 28
Special Drawing Rights, 4, 12, 54, 55
State and local govts.:
Deposits, 19, 20, 21, 22
Holdings of U.S. Govt, securities, 32, 33
New security issues, 36
Ownership of securities of, 18, 20, 21, 22, 29
Yields of securities, 3
State member banks, 17
Stock market, 28
Stocks (See also Securities):
New issues, 36
Prices, 28
TAX receipts, Federal, 31
Time deposits, 3, 10, 13, 15, 16, 17, 19, 20, 21,
22, 23
Trade, foreign, 55
Treasury currency, Treasury cash, 4
Treasury deposits, 4, 12, 30
Treasury operating balance, 30
UNEMPLOYMENT, 47
U.S. balance of payments, 54
U.S. Govt, balances:
Commercial bank holdings, 19, 20, 21, 22
Member bank holdings, 15
Treasury deposits at Reserve Banks, 4, 12, 30
U.S. Govt, securities:
Bank holdings, 16, 17, 18, 20, 21, 22, 29,
32, 33
Dealer transactions, positions, and financing, 34
Federal Reserve Bank holdings, 4, 12, 13, 32, 33
Foreign and international holdings and
transactions, 12, 32, 64
Open market transactions, 11
Outstanding, by type of security, 32, 33
Ownership, 32, 33
Rates in money and capital markets, 3, 27
Yields, 3
Utilities, production, 49
VETERANS Administration, 40, 41
WEEKLY reporting banks, 2 0 - 2 4
Wholesale prices, 46
YIELDS (See Interest rates)

A 81

Index to Volume 64
GUIDE TO PAGE REFERENCES IN MONTHLY ISSUES
Other ("A " pages)
Text
Index to
etc.
Issue
Issue
Total
tables
total
July
January
1-78
76-77
1-66
August
67-152
1-78
February
76-77
September..
153-254
1-78
76-77
March
October . . .
255-344
1-78
76-77
April
November..
345-430
1-78
76-77
May , .. .
December .
431-520
79-80
1-82
June
(References to " A " pages in this index are to such pages in

Pages
ACCEPTANCES, bankers, interpretation of
Regulation A
427, 486
Adlum, Merle D . , appointed director, Seattle
Branch
245
Altmann, Murray, appointed Secretary, Federal
Open Market Committee
779
Anderson, Donald E., appointed Director, Division
of Support Services
826
Annual Report, 1977
519
Annual Statistical Digest, 1973-1977
994
Anthony, Christine H., appointed director, Oklahoma City Branch
241
Articles:
Consumer rights under Equal Credit Opportunity
and Fair Credit Billing Acts, exercise
363
Corporate finance, recent developments
431
Corporations, nonfinancial, new series on working capital
533
Dollar's foreign exchange value
783
Economic expansion in 1977
1
EFT and privacy
279
Federal budget in 1970's
701
Financial developments, quarterly reports to
Congress (See Statements to Congress)
Household borrowing in recovery
153
Inflation, recent behavior
521
Insured commercial bank income in 1977
441
Monetary policy and open market operations in
1977
265
Nonbank thrift institutions in 1977 and 1 9 7 8 . . 927
Repurchase agreements and Federal funds
353
Time and savings deposits at commercial banks,
surveys
76, 367, 623, 837
Treasury and Federal Reserve foreign exchange
operations, reports
161, 448, 717, 939
U.S. international transactions, recent developments
255
Assets and liabilities of overseas branches of
member banks, data from year-end reports of
condition
516
Atkinson, Sherry S., article
927
Austin, James R., appointed director, Nashville
Branch
235
Axilrod, Stephen H., designated Staff Director for
Monetary and Financial Policy
923




Other C'A pages)
Text
etc.
Index to
total
Total
tables
521-614
1-78
76-77
615-700
1-78
76-77
701-782
1-78
76-77
783-828
1-78
76-77
829-926
1-78
76-77
927-998
1-92
79-80
the December issue.)

Pages
BANK holding companies (For orders issued to
individual companies under the Bank Holding
Company Act, see Bank Holding Company
Act):
Community Reinvestment Act, interagency regulations implementing, and examination
procedures
145, 611, 8 2 1 , 9 8 9
Competition in Banking Act of 1977,
statement
179
Delegation by Board of certain authority regarding, amendment of rules
112
Improper payments by, joint policy statement of
Federal bank regulatory agencies
61, 146
Publication
922
Regulation Y (See Regulations and rules, Board
of Governors)
Rules of Procedure, amendment to revise procedures relating to
881
Staff economic study
532
Tax transactions between State member banks
and their parent holding companies, Board
policy statement
519, 825
Bank Holding Company Act:
Orders issued:
ACORN FINANCIAL CORP
307
Alabama Bancorporation
963
Allied Bancshares, Inc
912
American Bancor, Ltd
673
Ames Holding Company, Ltd
332
Ancorp Bancshares, Inc
220
B-O-B Financial Corporation
227
Banco Nacional de Mexico, S . A . , Mexico
City, Mexico; and Banamex Holding Company and Ammex Holding Company, Los
Angeles, Calif
488
BancOhio Corporation
421
Bank Land Company
771
Bank of Montana System
420
Bankshares of Nebraska, Inc
409
Barnett Banks of Florida, Inc
910
Bates County Bancshares, Inc
817
Bellevue Holding Corporation, Geneva, Switzerland
802
BYRON BANCSHARES, INC
817
Calcon Bancshares, Inc
308

A 82

Federal Reserve Bulletin • December 1978

Pages
Bank Holding Company Act—Continued
Orders issued—Cont.
Capitol Bancorporation
Central Bancshares of the South,
Inc
42,
Central National Bancshares, Inc
Central National Corporation
Centran Corporation, Inc
Charter Techny Bancorporation, Inc
Chemical Financial Corporation
Chemical New York Corporation
495,
Chevalier, Inc
Citicorp
Citizens and Southern Corporation
Citizens and Southern Holding
Company
Citizens Bancorporation
Citizens Bancshares, Inc
Citizens Bankshares, Inc
Citizens State Banco
City Bancshares, Inc
Coffeyville Financial Corporation
Combanks Corporation
Commerce Bancshares, Inc
576,
Commerce Companies, Inc
Commercial Bankshares, Inc
Commercial National Corporation
Community Bancorporation
Community Banks, Inc
Community State Agency, Inc
Dakota Bankshares, Inc
Delta Bancshares Company
Depositors Trust Company
DETROITBANK Corporation
Dexter Banking Company
Duclarkee, Inc
:
EICHER BANCORPORATION
El Paso Bancshares, Inc
Ellis Banking Corporation
Empire Bancorp, Inc
Equitable Bancorporation
Everest Bancshares, Inc
Ewing Agency, Inc
Exchange Bancorporation, Inc
F & M National Corporation
Fidelity American
Bankshares
Fidelity Union Bancorporation
Financial Bancshares, Inc
First Affiliated Bancorporation, Inc
First Agency of Hastings, Inc
First Alabama Bancshares, Inc
First American Bank
Corporation
First Amtenn Corporation
First and Merchants Corporation
First Arkansas Bankstock
Corporation
First Banc Group of Ohio, Inc
First Bancgroup—Alabama Inc
First Bancorp, Inc
First Bancorp of N . H . , Inc
First Bank Holding Company
First Bank System, Inc
First Chandler Corp
First City Bancorporation of Texas,
Inc
326, 327, 402,
First Colonial Corporation
First Commerce Corporation
First Corporation
FIRST EVERGREEN CORPORATION
First Financial Bancshares, Inc
First Formoso, Inc




771
603, 674
113, 675
420, 899
333
114
512
136,333,
496, 513
572
321
772
766, 772
142
910
757
56
573
332
574
758, 803
603
883
494
603
142
692
310, 676
142
213
805
28
806
399
694
400, 884
512
497
511
583
817
512
899
512
227
333
332
115, 770
818
43
695
325, 964
807, 808
603
328, 420
817, 967
694
29
771
511, 969
141
509
771, 772
771
227
584

Pages
Bank Holding Company Act—Continued
Orders issued—Cont.
First Gridley BanCorporation, Inc
420
First Hays Bancshares, Inc
694
First International Bancshares, Inc
116, 403
First Kansas Bancorp
771
First Missouri Banks, Inc
118, 421
First National Bank Shares, Ltd
311
First National Boston Corporation
678
First National Corporation
56
First National Financial Corporation
119
First National Holding Corp
971, 972
First National Schaumburg Corporation
141
First Railroad & Banking Company of
Georgia
973
First Security Corporation
511, 910
First Steuben Bancorp, Inc
421, 809
First Texas Bancorp, Inc
987
First Thomas Ban Corp
489
First Union Bancorporation
411
First Virginia Banks, Inc
818
Florida National Banks of Florida, Inc
911
Forest City Limited
771
Franklin Bancgroup & Co
511
Fulton National Corporation
121
Galveston County Bancshares, Inc
694
Georgia Bancshares, Inc
974
Gering National Company
690
Glen Rose Bancshares, Inc
585
Gordon Financial Corporation
986
Grady Holding Company
603
Great Southwest Ban Corp, Inc
586
Gretna Company
313
Guaranty Corporation
817
HaleCo BancShares, Inc
695
Harrison Bancorporation
603
Harrogate Corporation
771
Hawarden Bancshares, Inc
332
Hawkeye Bancorporation
315, 512, 694, 974
Heaton Bank Holding Company
124
Herget Financial Corp
817
Holladay Bancorporation
759
Hunter Holding Co
976
Illini Bancorp, Inc
679
Illinois Neighborhood Development Corporation
45
Indian Head Banks, Inc
771
Jacobus Company
126
JEFCO, Inc
490
Johnson County Bankshares, Inc
902
John-Wade Co
977
Joy Development Corporation
886
Junction City First National
Company
56
Kansas City Bancshares, Inc
31
588
Kenco Bancshares, Inc
Keystone Bancshares, Inc
979
Kremmling Holding Company
142
Kyowa Bank, Ltd., Tokyo, Japan
492
Loomis Company
911
Madison National Company
332
Manchester Financial Corp
32
Mankato Bankshares, Inc
760
Manufacturers Hanover Corporation
499
Marine Corporation
50
Marshall & Ilsley
Corporation
911
Memphis Bancshares, Inc
142
Mercantile Bancorporation, Inc
412, 680
Mercantile Texas Corporation
762
Michigan National Corporation
127, 316
Mid-America Bancshares, Inc
603
Midland Capital Co
512
Mid-Nebraska Bancshares, Inc
589

Index to Volume 64

Pages
Bank Holding Company Act—Continued
Orders issued—Cont.
Midwest Bancorp, Inc
317
Mizrahi Holdings Association and United
Mizrahi Bank, Ltd., Tel Aviv, Israel
319
Moline Manufacturing Company
764
Mountain Financial Services, Inc
911
Muyskens Corporation
695
NCNB Corporation
504, 506, 904
National Bancshares Corporation of
Texas
332, 493, 887, 911
National Detroit Corporation
227, 763, 984
New Hampton Bancshares, Inc
682
New Virginia Bancorporation
987
Northwest Arkansas Bancshares, Inc
217
Northwest Bancorporation
911
Northwest Ohio Bancshares, Inc
332
Oakland Financial Services, Inc
695
Oklahoma National Bancshares, Inc
987
Old Capitol Bancorporation, Inc
141
Old Stone Corporation
906, 911
Omaha National Corporation
414
Orbanco, Inc
46, 594
Otto Bremer Company
980
Otto Bremer Foundation and Otto Bremer
Company
683
Overland Park Bancshares, Inc
593
PDB Investment Corporation
603
Pacesetter Financial Corporation
35, 513
Palatine Bancorporation, Inc
332
Parish National Corporation
36
Pecatonica Bancshares, Inc
817
People's Corporation
814
Phelps County Bancshares, Inc
695
Philadelphia National Corporation
508
Pioneer Bancorporation, Inc
890
Pittsburg Bancshares, Inc
227
Platte County Bancshares, Inc
684
Polk County Banco, Inc
603
Quail Creek Bancshares, Inc
986
Republic Bancorporation, Inc
685
Republic National Bancshares, Inc
897
Republic of Texas Corporation . . . 133, 3 3 2 , 5 9 1 ,
595, 603, 686, 911, 981
Retirement Research Foundation
891
Royal Trust Company, Montreal, Quebec,
Canada
404
Royal Trustco Limited, Ottawa, Ontario,
Canada; and Royal Trust Bank Corp.,
Miami, Fla
332
Ruth Jones Nelson Finance Corp
987
SBT Corporation
332
St. Joseph Bancshares, Inc
817
San Bancorp
141
Santa Fe Trail Banc Shares, Inc
512
Schroders Limited, London, England
48
2nd Charter Financial Corporation
134
Security Bancorp
405
Security Bancshares, Inc
892
Security Pacific Corporation
333
Shawnee Bank Shares, Inc
603
Sibley Bancorporation
911
Snowmass Bancorp, Inc
332
Southwest Bancshares, Inc
818
State Bancshares, Inc
811
Stepp, Inc
223
Stratton Agency, Inc
603
Strawn Bancshares, Inc
695
Suburban Bancorporation
142
Sueco, Inc
218
Summit Home Insurance Company
767
Tayco Corporation
135
Tennessee Homestead Company
34
Texas American Bancshares, Inc
982




A 83

Pages
Bank Holding Company Act—Continued
Orders issued—Cont.
Texas Commerce Bancshares, Inc
320, 812
Texas Panhandle Bancshares, Inc
911
Tracy Bancorp
51
Tri County Investment Co
512
Triro Bancorporation, Inc
688
Trust Company of Georgia, Trust Company
Bank, and Trust Company of Georgia Associates
333
Tulbancorp, Inc
894
Union Bancgroup & Co
. . . 512
United Bancorp
222
United Bank Corporation of New York
894
United Banks of Colorado, Inc
37
United Michigan Corporation
421
United Missouri Bancshares, Inc
39, 415
Viking Corporation
407
Walter E. Heller International Corporation.. 329
Weatherford Bancshares, Inc
689
Wedge Holding Company
408
Weld State Company
224
West Point Bancorp, Inc
227
Western Banks of Wyoming, Inc
332
WINGO, LTD
142
WISCUB, Inc
40
Woodford Investment Company
695
Rules of Procedure, amendment to revise procedures for certain applications under
881
Bank Holding Company Tax Act of 1976:
Certifications issued:
Brantley Company, Inc
417
Evans Insurance Agency, Inc
597
GATX Corporation (formerly General American Transportation Corporation)
226
Industrial National Corporation
330
Investment Corporation of America
985
King Ranch, Inc
138
Kyanite Mining Corporation
598
Lindoe, Inc
600
Republic of Texas Corporation
139
Schnitzler Corporation
600
Serco Investment Company
510, 768
304 Corporation
602
Time Holdings, Inc
54, 768
Tracy Bancorp
55
Trans-Western Corp
693
UniCapital Corporation
419, 694
University Bancorp, Inc
815
Voyageur Development Corporation
769
Bank market structure, staff economic study
532
Bank Merger Act:
Orders issued:
Apple Capital Bank, Mount Jackson, Va
513
Bank of Mid-Jersey, Bordentown Township,
N.J
333
Bank of Utah, Ogden, Utah
817
Bank of Virginia-Richmond, Richmond, Va... 912
Connecticut Bank and Trust Co., Hartford,
Conn
987
Conway Trust Company, Conway, N.H
772
F.B.G. Bank of Mount Sterling, Mount Sterling, Ohio
817
First State Bank of Miami, Miami, Fla
912
First Virginia Bank-Eastern, Warrenton, Fauquier County, Va
817
Hamilton Bank and Trust Company, Bailey's
Crossroads, Va
333
Hillsboro Bank and Savings Co., Hillsboro,
Ohio
52
Metropolitan Bank and Trust Company,
Tampa, Fla
421
Southern Bank and Trust Company, Richmond, Va
513, 817

A 84

Federal Reserve Bulletin • December 1978

Pages
Bank stock loans, statement on survey
285
Bank supervision and regulation (Federal):
Banking system, statements on condition
458
Community Reinvestment Act, interagency regulations implementing, and examination procedures
145, 611, 821, 989
Competition in Banking Act of 1977, statement
179
Condition and income reports, proposed simplification by bank regulatory agencies
825, 994
Data processing centers, uniform interagency
rating system
922
Equal Credit Opportunity Act and Fair Housing
Act, statement on Board's enforcement
742
Examination procedure relating to "country
risk" factors involved in international lending
by U.S. banks, adoption of uniform interagency system
920
Foreign banks, statement to Congress on International Banking Act of 1978, amendment of
Regulation K, and statement of bank regulatory agencies
538, 963, 989, 990
Improper payments by banks and bank holding
companies, joint policy statement of regulatory agencies
61, 146
Inside investment information, Board policy
statement on misuse
339
Rating system for banks, adoption by regulatory
agencies of uniform system
426
Securities transactions, proposed uniform interagency standards
922
Trust assets, revised interagency requirements
for reporting
921
Trust departments, adoption of uniform interagency rating system
824
Bankers acceptances, interpretation of Regulation
A
427, 486
Banking system, U . S . , statement on condition... 458
Bennett, Charles W . , appointed Assistant Director,
Division of Federal Reserve Bank Examinations
and Budgets
923
Bierer, William E., appointed director, Pittsburgh
Branch
232
Board of Governors (See also Federal Reserve
System):
Bank holding companies, actions concerning
(See Bank holding companies)
Budgets of Reserve Banks, approval
63
Division of Administrative Services, redesignated Division of Support Services, effective
Jan. 1, 1979
826
Dollar, joint Treasury-Federal Reserve statement on measures to strengthen
917
Film on functions of Nation's central bank,
availability
779
Interpretations (See Interpretations)
Legislation (See Legislation)
Litigation, pending cases .. 57, 143, 228, 3 3 4 , 4 2 2 ,
514, 604, 695, 772, 818, 912, 988
Meetings open to public, procedures for requesting materials scheduled to be discussed
and recordings of open meetings
63, 780
Members:
Burns, Arthur F., resignation, and designation
as Acting Chairman
59, 249
Gardner, Stephen S., Vice Chairman, death 919
Jackson, Philip C., Jr., resignation
918
Lilly, David M., resignation
249
Lists
246, 335, 774, 914
Miller, G. William, appointment and designation as Chairman
248
Teeters, Nancy H., appointment
777
Members and officers
A70
Publications (See Publications and releases)




Pages
Board of Governors—Continued
Regulations and rules (See Regulations and
rules)
Seasonal adjustment techniques, formation of
committee to review
341
Staff changes:
Anderson, Donald E
826
Axilrod, Stephen H
923
Bennett, Charles W
923
Brundy, James M
779
Daniels, Joseph, Sr
149
Ettin, Edward C
994
Farnsworth, Clyde H., Jr
428
Geary, Anne
994
Grim wood, Gordon B
612
Grizzard, John L
826
Hamilton, Albert R
428
Hawke, John D . , Jr
149
Henderson, Dale W
779
Hudson, Milton W
149
Jones, Sidney L
149
Kreimann, Walter W
826
Mannion, Robert E
64
Matthews, Robert E
149
Mead, Thomas E
428
Meeder, Lorin S
519
Minehan, Cathy E
149, 519
Petersen, Neal L
252
Prell, Michael J
779
Promisel, Larry J
779
Puckett, Richard H
612
Raiken, Allen L
64
Shafer, Jeffrey R
779
Smith, Ralph W., Jr
779
Struble, Frederick M
779
Teed, Raymond L
923
Tuttle, Baldwin B
64
Wallace, John M
519
Staff economic studies (See Staff economic
studies)
Statements to Congress (See Statements to Congress)
Statistical reporting to, reduction
518, 698
Supervision and regulation (See Bank supervision and regulation)
Bonds, certain nonconvertible corporate bonds,
amendment of Regulation T
428, 801, 823
Brabec, Edward F., appointed Class C director,
Chicago
236
Brackett, Pearl C., appointed director, Baltimore
Branch
233
Branch banks:
Federal Reserve:
Directors (See Directors)
Vice Presidents in charge
A73
Foreign branches of member banks:
Assets and liabilities, data from year-end reports of condition
516
Reserve requirement on foreign borrowings,
amendment of Regulations D and M 756, 777
Broida, Arthur L., Secretary, Federal Open Market
Committee, retirement
779
Brown, Wilson M., Jr., elected Class A director,
Philadelphia
231
Brundy, James M . , appointed Associate Research
Division Officer, Division of Research and Statistics
779
Bryan, Merle G . , appointed director, Portland
Branch
244
Budget, Federal, statements and
article
84, 190, 701
Budgets of Reserve- Banks, approval and
statement on review
63, 90
BULLETIN tables (See Tables)

Index to Volume 64

Pages
Burns, Arthur F.:
Designation as Acting Chairman, Board of Governors
249
Resignation as Member, Board of Governors..
59
CAPACITY and capacity utilization,
publication
148
Capital, article on new series on working capital
of nonfinancial corporations
533
Capital financing requirements of commercial
banks, 1977-81, staff economic study
82
Chart Book, Federal Reserve
996
Check clearing and collection (See Transfers of
funds)
Coldwell, Philip E.:
Banking system, U . S . , statement
458
Competition in Banking Act of 1977,
statement
179
Federal Reserve System:
Expenditures, review, and 1978 budgets,
statement
90
Membership, and issue of pricing for Federal
Reserve services, statement
647
$1 coin, statement
453
Truth in Lending Act, statement
740
Commercial banks (See also Member banks):
Capital financing requirements, external, staff
economic study
82
Condition and income reports (See Condition
and income reports)
Consumer credit survey, 3-year extension and
revisions
698
Foreign banks (See Foreign banks)
Insured, article on income in 1977
441
Loans, reduction in statistical reporting to
Board
518
Loans and investments, revisions in series
518
Time and savings deposits, surveys
76, 367,
623, 837
Condition and income reports:
Revisions and availability
64, 147, 251
Simplification, by bank regulatory
agencies
825, 994
Consumer Advisory Council
145, 250, 5 1 8 , 6 9 7 ,
994, All
Consumer credit (See credit)
Corporate finance, article
431
Corporations, nonfinancial, article
533
Cousins, Jane C., appointed director, Miami
Branch
235
Craighead, Rodkey, appointed director, Detroit
Branch
237
Credit (See also Loans):
Brokers and dealers (See Regulations and rules,
Board of Governors: T)
Consumer:
Advisory Council 145, 250, 518, 697, 994, A72
Community Reinvestment Act, regulations
implementing
145, 611, 821, 989
Equal Credit Opportunity (See Equal Credit
Opportunity)
Fair Credit Billing Act, article
363
Fair Debt Collection Practices Act
341
Housing (See Real estate)
Interest rates charged by commercial banks,
reduction in statistical reporting
518
Leasing (See Leasing)
Mortgages (See Real estate)
Pamphlets
922, 996
Survey, 3-year extension and revisions
698
Truth in Lending Act (See Truth in Lending)
Reserve Banks (See Federal Reserve Banks)
Stocks (See Stock market)
Credit-scoring models, staff economic study
13




Credit unions, statement
Currency and coin, statement

A 85

Pages
631
453

DANIELS, Joseph W . , Sr., appointed Director of
Equal Employment Opportunity
Davis, Jean McArthur, elected Class B director,
Atlanta
Decio, Arthur J., elected Class B director,
Chicago
DeMilner, Lawrence E., article
Deposits:
Interest rates (See Interest on deposits)
Reserve requirements (See Reserve requirements)
Time and savings, at commercial banks,
surveys
76, 367, 623,
Directors:
Federal Reserve Banks:
Actions and responsibilities, amendment
Chairmen and Federal Reserve Agents.229,
Class C directors, statement
Deputy Chairmen
229,
List
Federal Reserve branch banks:
Actions and responsibilities, amendment..
Chairmen and Deputy Chairmen
229,
List
Qualifications, revision of regulations...571,
Discount rates at Reserve Banks (See Interest
rates)
Dividends in 1977:
Federal Reserve Banks
Insured commercial banks
Dollar
453, 700, 783, 917,
Donegan, Richard O., appointed director, Louisville Branch
EARNINGS and expenses:
Condition and income reports (See Condition
and income reports)
Federal Reserve Banks, 1977
Insured commercial banks, 1977, article
Economic expansion in 1977, article
Economy:
Condition and outlook, and conduct of monetary
policy, statements . . . . 185, 190, 373, 543,
642, 843,
Eisenbeis, Robert A . , staff economic study
Elberson, Robert E., appointed director, Charlotte
Branch
Electronic funds transfer (EFT) systems (See
Transfers of funds)
Employment, statement
Equal Credit Opportunity:
Act:
Enforcement, proposed guidelines for, and
statement
611,
Exercise of consumer rights under, article..
Regulation B (See Regulations and rules, Board
of Governors)
Erkins, Robert A . , appointed director, Salt Lake
City Branch
Ettin, Edward C., appointed Deputy Staff Director,
Office of Staff Director for Monetary and Financial Policy
Euro-dollar borrowings,
756, 777, 917,
Examinations (See Bank supervision and regulation)
Exports, U . S . , statement

149
234
236
521

837
568
A73
552
A73
229
568
A73
229
611

63
441
943
238

63
441
1
548,
943
13
233
377

742
363

244
994
962
86

FAIR CREDIT BILLING ACT, article
363
Fair Housing Act, statement
742
Farnsworth, Clyde H., Jr., appointed Associate
Director, Division of Federal Reserve Bank Examinations and Budgets
428

A 86

Federal Reserve Bulletin • December 1978

Pages
Federal Advisory Council
A72
Federal budget:
In 1970's, article
701
Statements
84, 190
Federal funds:
Article
353
Staff economic study
937
Survey
149
Federal Open Market Committee:
Foreign exchange markets, Treasury-Federal
Reserve joint intervention
60
Foreign exchange operations, reports
161,448,
717, 939
Members and officers:
Altmann, Murray, Secretary, appointment
779
Broida, Arthur L., Secretary, retirement . . . 779
List
A72
Monetary policy and open market operations in
1977, article
265
Policy actions, record
15, 98, 195, 2 9 0 , 3 8 2 ,
465, 556, 656, 745, 791, 848, 947
Swap arrangements
60, 250, 917
Federal Reserve Act, statement
552
Federal Reserve Banks:
Branches (See Branch banks)
Budgets, approval, and statement on review of
System expenditures for 1977 and 1978
budget
63,90
Chairmen and Deputy Chairmen
170, A73
Credit extended by, interpretation of Regulation
A
427, 486
Delegation by Board of certain authority to,
amendment of rules
112
Directors (See Directors)
Discount rates (See Interest rates)
Earnings and expenses, 1977
63
Presidents and Vice Presidents, list
A73
Purchase of warrants, Regulation E
918, 963
Transfers of funds (See Transfers of funds)
Federal Reserve Chart Book
996
Federal Reserve notes, statement
552
Federal Reserve System (See also Board of Governors):
Bank supervision and regulation (See Bank
supervision and regulation)
Dollar, joint Treasury-Federal Reserve statement
on measures to strengthen
917
Expenditures, review, and 1978 budgets, statement
90
Film on functions of Nation's central bank.. 779
Foreign exchange markets, Treasury-Federal
Reserve joint intervention
60
Foreign exchange operations of Treasury and
Federal Reserve, reports
161, 448, 717, 939
Legislation (See Legislation)
Map of districts and their branch territories .. A92
Membership:
Admissions of State banks . . 6 4 , 149, 252, 429,
519, 613, 780, 826, 923, 996
Attrition since 1960, staff economic study ..
12
Proposed legislation, statements .. 636, 642, 647
Swap arrangements
250, 917
Transfers of funds (See Transfers of funds)
Fickling, William A . , Jr., appointed Class C
director, Atlanta
234
Finance, corporate, article
431
Financial developments, quarterly reports to Congress
67, 345, 615, 829
Foreign banks:
International Banking Act of 1978
538, 963
989, 990
Reserve requirement on foreign borrowings,
amendment of Regulations D and M . . . 756, 111




Pages
Foreign currency arrangements
250, 917
Foreign exchange markets, announcement of
Treasury-Federal Reserve joint intervention . . .
60
Foreign exchange operations of Treasury and Federal Reserve, reports
161, 448, 717, 939
Foreign exchange value of dollar (See Dollar)
Foreign lending by large U.S. banks,
surveys
60, 515, 992
Freund, James L., article
1
GARDNER, Stephen S.:
Budget, Federal, statement
Vice Chairman, Board of Governors, death . . .
Garner, John H., appointed director, San Antonio
Branch
Gavitt, William S., appointed director, Buffalo
Branch
Geary, Anne, appointed Assistant Director, Division of Consumer Affairs
Gelbach, John A . , elected Class A director,
Cleveland
Gonzales, Arthur L., appointed director, El Paso
Branch
Gough, Joseph M., Jr., appointed director, Baltimore Branch
Grimwood, Gordon B., Assistant Director and
Program Director for Contingency Planning,
Office of Staff Director for Management, retirement
Grizzard, John L., appointed Associate Division
Director for Building Services, Division of Support Services
Grobel, Lynn D . , appointed director, Helena
Branch
HAMILTON, Albert R., appointed Director, Division of Federal Reserve Bank Examinations
and Budgets
Hanweck, Gerald A . , staff economic study
Harlow, James G., Jr., elected Class B director,
Kansas City
Hawke, John D . , Jr., General Counsel, resignation
Henderson, Dale W., appointed Assistant International Division Officer, Division of International
Finance
Hill, Richard D . , elected Class A director, Boston
Hillenmeyer, Walter W . , Jr., appointed director,
Cincinnati Branch
Holmes, Alan R., reports . . . 161, 265, 448, 717,
Hooper, Peter, article
Housing (See Real estate)
Howard, William E., Jr., appointed director, New
Orleans Branch
Huckfeldt, Joe J., appointed director, Omaha
Branch
Hudson, Milton W . , Assistant to Chairman, resignation

84
919
242
230
994
231
242
233

612
826
239

428
82
240
149
779
229
232
939
783
236
241
149

INCOME and expenses (See Earnings and expenses)
Incomes policies, statements
94, 454
Individual retirement accounts (IRA's), amendment and interpretation of Regulation Q .. 4 2 3 , 4 7 9 ,
519, 571, 698, 995
Industrial production, Board releases . . . 6 5 , 151, 253,
343, 430, 520, 614, 699, 781, 827, 925, 997
Inflation, article
521
Insured commercial banks (See Commercial banks)

Index to Volume 64

Pages
Interest on deposits (See also Interest on deposits):
Ceiling rate authority, statement
631
Retirement accounts, increase in ceiling rate,
technical amendment of Regulation Q . . 5 1 9 , 571
Time deposits:
Early withdrawal, amendment and interpretation of Regulation Q
698, 995
New types, amendment, Regulation Q . . . 423, 479
Transfers of funds, automatic, from savings to
checking accounts, amendment of Regulation
Q to permit
424, 479
Treasury tax-and-loan investment program,
amendment of Regulation Q to exempt..398, 427
Interest rates (See also Interest on deposits):
Ceilings and disintermediation, staff study... 715
Consumer loans by commercial banks, reduction
in statistical reporting to Board
518
Federal Reserve Banks, changes
59, 423, 610,
777, 821, 917
International statistics, revised tables
612
International transactions of United States, article 255
Interpretations, Board of Governors:
Bank holding companies
148, 211
Credit:
Reserve Bank, extension of kinds of bankers
acceptances eligible for discount
427, 486
Securities, acceptance of "purpose statements" by mail for loans on securities
purchases
567, 611
Equal Credit Opportunity
337, 396, 428
Interest on deposits, early withdrawal of time
deposits without penalty
995
Truth in Lending:
Certain open-end credit plans secured by consumers' residences, right of rescission . . . 671
Disclosure of loss of interest when time deposit is security for loan, proposed
778
Official staff interpretations
396, 428
Repayment of debt in varying amounts. .428, 518,
757, 779
Terms, change in
882
Investments
518, 629
JACKSON, Philip C., Jr.:
Community Reinvestment Act, Home Mortgage
Disclosure Act, extension of Regulation Q
authority, and central liquidity facility for
credit unions, statement
Equal Credit Opportunity Act and Fair Housing
Act, statement
Resignation as Member, Board of Governors..
Jellison, Fern, appointed director, Los Angeles
Branch
Johns, Lawrence A . , appointed director, Detroit
Branch
Jones, Sidney L., appointed Assistant to Board..
Jordan, Thomas A . , elected Class B director, Richmond

631
742
918
243
237
149
232

KEOGH plan retirement accounts, amendment and
interpretation of Regulation Q
423, 4 7 9 , 5 1 9 ,
571, 698, 995
Kesey, Chester J., appointed director, El Paso
Branch
242
Kopecky, Kenneth J., staff economic study
937
Kreimann, Walter W . , appointed Associate Division Director for Staff Support, Division of
Support Services
826
LEASING, pamphlet explaining Consumer Leasing Act, and adoption of criteria for exemption
from leasing laws and Regulation Z 426, 428, 481
Lefever, David M . , article
837




A 87

Pages
Legislation:
Bank supervision and regulation:
Competition in Banking Act of 1977, statement
179
Foreign banks (International Banking Act of
1978), statement to Congress, amendment
of Regulation K, and statement of Federal
bank regulatory agencies . . 5 3 8 , 963, 989, 990
Consumer credit:
Community Reinvestment Act:
Regulations implementing, interagency, and
examination procedures.. 145, 611, 821, 989
Statement
631
Equal Credit Opportunity Act (See Equal
Credit Opportunity)
Fair Credit Billing Act, article
363
Fair Debt Collection Practices Act, fact
sheet
341
Fair Housing Act, proposed guidelines for
enforcement, and statement
611, 742
Home Mortgage Disclosure Act, statement.. 631
Leasing (See Leasing)
Truth in Lending Act (See Truth in Lending)
Credit unions, proposed establishment of central
liquidity facility
631
Dollar, statement on bill to change size, weight,
and design of $1 coin
453
Federal Reserve System:
Branch directors, qualifications, revision of
regulation to conform with Federal Reserve
Reform Act of 1977
571, 611
Federal Reserve Act, proposed amendments. 552
Membership decline, statements . 636, 642, 647
Reserve requirements, universal, and Board
program to encourage membership in System, proposed
605
Flood insurance program, amendment of Regulation H
397
Full Employment and Balanced Growth Act
(Humphrey-Hawkins bill), statement
377
Government in the Sunshine Act, statement . . . 651
Interest on deposits, statement on proposed extension of ceiling rate authority, changes . . . 631
Small Business Investment Act of 1958, statement
629
Tax, statement
736
Treasury Department, statement on extending
direct borrowing authority from
542
Leyendecker, Claude E., appointed director, El
Paso Branch
242
Lilly, David M . , resignation as Member, Board
of Governors
249
Litigation, pending cases involving Board of Governors
57, 143, 228, 334, 4 2 2 , 5 1 4 ,
604, 695, 772, 818, 912, 988
Loans (See also Credit):
Bank stock, statement on survey
285
Commercial bank loans and investments, revisions in series
518
Executive officers of member banks, amendment
of Regulation O to increase limit and to
clarify
211, 251, 611, 670
Foreign lending by large U.S. banks,
surveys
60, 515, 992
Interest loss when time deposit is security
for, proposed interpretation on disclosure.. 778
Real estate (See Real estate)
Statistical reporting to Board, reduction
518
Luckett, Charles A . , article
153
MCBRIDE, Lloyd, appointed director, Pittsburgh
Branch
232
McKelvey, Edward F., staff economic study
715

A 88

Federal Reserve Bulletin • December 1978

Pages
McKetta, John J., appointed director, San Antonio
Branch
243
McKinney, John A . , elected Class B director,
Kansas City
240
McMahon, James D . , appointed director, Los Angeles Branch
243
Mannion, Robert E., appointed Associate General
Counsel
64
Margin requirements (Regulations G, T, and U):
Acceptance of "purpose statements" by mail for
loan on securities purchases, new interpretation of Regulations G and U
567, 611
Certain nonconvertible corporate bonds, amendment of Regulation T
428, 801, 823
Over-the-counter stocks (See Over-the-counter
margin securities)
Subordinated capital loan to another broker or
dealer, amendment of Regulation T
611, 670
Matthews, Robert E., return to Federal Reserve
Bank of Philadelphia
149
Mead, Thomas E., Assistant Director, Division of
Banking Supervision and Regulation, retirement
428
Meeder, Lorin S., appointed Assistant Director,
Division of Federal Reserve Bank Operations.. 519
Mellish, Donald L., appointed director, Seattle
Branch
245
Member banks (See also National banks):
Branches (See Branch banks)
Credit extended by Reserve Banks
427, 486
Loans:
Executive officers, amendment of Regulation
O to increase limit and to clarify
211,251,
611, 670
Statistical reporting to Board, reduction
518
Reserve requirements (See Reserve requirements)
State member banks (See State member banks)
Supervision and regulation (See Bank supervision and regulation)
Transfers of funds (See Transfers of funds)
Mergers (See Bank Merger Act)
Mettler, Ole R., elected Class A director, San
Francisco
243
Michelson, Gertrude, appointed Class C director,
New York
230
Miller, G. William:
Appointment as Member and designation as
Chairman, Board of Governors
248
Bank supervision and regulation, foreign banks,
statement
538
Banking system, U . S . , statement
458
Dollar rescue operations and their domestic implications, statement
943
Federal budget, statement
190
Federal Reserve System membership,
636, 642
Government in the Sunshine Act, statement . . . 651
Monetary policy, conduct, and condition and
outlook for national economy, statements .. 185, 190, 373, 543, 548, 642, 843, 943
Tax legislation, statement
736
Millsaps, Fred R., appointed director, Miami
Branch
235
Minehan, Cathy E., temporary appointment as Assistant Secretary of Board, and return to Federal
149, 519
Reserve Bank of New York
Mingo, John J., staff economic study
82
Monetary aggregates, staff papers on improving.. 993
Monetary policy:
Article
265
Conduct, and condition and outlook for national
economy, statements
185, 190, 3 7 3 , 5 4 3 ,
548, 642, 843, 943
Money stock, revision
338




Pages
Morisse, Kathryn A . , article
255
Mortgages (See Real estate)
Morton, John, article
783
Muller, Steven, appointed Class C director, Richmond
233
NATIONAL banks:
Condition and income reports (See Condition
and income reports)
Reserve requirement on foreign borrowings,
amendment of Regulation M
756, 111
Supervision and regulation (See Bank supervision and regulation)
OPEN market operations (See Federal Open Market Committee)
Opper, Barbara N., article
Over-the-counter margin securities:
Certain nonconvertible corporate bonds, amendment of Regulation T
801,
List:
Requirements for inclusion
251, 427,
Revisions
342,

441
823
480
825

PARDEE, Scott E., reports
161, 448, 717, 939
Parks, Virginia, appointed director, Seattle
Branch
245
Partee, J. Charles:
Bank stock loans, statement on survey
285
Federal Reserve Act, statement on proposed
amendments
552
Full Employment and Balanced Growth Act,
statement
377
Treasury Department, statement on extension of
direct borrowing authority
542
Payments mechanism (See Transfers of funds)
Petersen, Neal L., appointed General Counsel . . . 252
Phillips, Frederic H., elected Class A director,
Richmond
323
Policy actions, Federal Open Market Committee
(See Federal Open Market Committee)
Prell, Michael J., appointed Associate Research
Division Officer, Division of Research and
Statistics
779
Production (See Industrial production)
Promisel, Larry J., appointed Assistant International Division Officer, Division of International
Finance
779
Publications and releases in 1978:
Annual Report, 1977
519
Annual Statistical Digest, 1973-1977
994
Bank Holding Company Movement to 1978: A
Compendium
922
Consumer pamphlets
250, 922, 996
Federal Reserve Chart Book
996
Federal Reserve Measures of Capacity and Capacity Utilization
148
Foreign lending survey ("Country Exposure
Report")
60
Improving the Monetary Aggregates:
Staff
Papers
993
Leasing, pamphlet explaining Leasing Act
426
List of available publications
A74
Over-the-counter margin stock list
251,342,
427, 480, 825
Puckett, Richard H., appointed Manager, Regulatory Improvement Project, Office of Secretary... 612
RAIKEN, Allen L., appointed Associate General
Counsel
64
Real estate:
Brokers, proposed amendment of Regulation B.. 920
Community Reinvestment A c t . . . . 1 4 5 , 6 1 1 , 8 2 1 , 989

Index to Volume 64

Pages
Real estate—Continued
Fair Housing Act, proposed guidelines for enforcement, and statement
611, 742
Home mortgage disclosure, exemption actions
from Regulation C and statement
251, 631
Household borrowing in recovery, article
153
Housing, new consumer pamphlet
250
Loans in identified
flood-hazardous
areas,
amendment of Regulation H
397
Mortgage borrowing against equity in existing
homes, staff economic study
361
Regulation Z, interpretations and
amendment..428, 518, 671, 697, 756, 778, 779
Record of policy actions, Federal Open Market Committee (See Federal Open Market Committee)
Regulations and rules, Board of Governors:
A, Extensions of Credit by Federal Reserve
Banks:
Bankers acceptances, interpretation to extend kinds eligible for discount
427, 486
B, Equal Credit Opportunity:
Adverse action, amendment
306, 337
Collection of information, interpretations
337
Implementation, proposed guidelines
611
Official staff interpretations, revised procedures, amendment
396, 428
Real estate brokers and business credit, proposed amendments relating to
920
C, Home Mortgage Disclosure:
Exemption actions
251
D, Reserves of Member Banks:
Borrowings from member bank with head
office outside United States,
amendment
27, 756, 111
Foreign borrowings, amendment
756, 111
Supplemental, on all large-denomination time
deposits and certain other liabilities,
amendment
917, 962
Treasury tax-and-loan investment program,
amendment exempting
398, 427
E, Purchase of Warrants:
Cancellation
918, 963
F, Securities of Member State Banks:
Disclosures to stockholders, proposed amendment
251
Securities and Exchange Commission regulations, amendments to conform
859
G, Securities Credit by Persons Other Than
Banks, Brokers, or Dealers:
Acceptance of 4 'purpose statements'' by mail,
new interpretation
567, 611
Over-the-counter margin stock list, amendment
251, 427, 480
H, Membership of State Banking Institutions in
the Federal Reserve System:
Real estate loans in identified flood-hazardous
areas, amendment
397
Securities transactions, proposed amendment
to establish uniform records and procedures
148
Transfer agents, amendment
27
K, Corporations Engaged in Foreign Banking
andFinancing Underthe Federal Reserve Act:
Reserve requirements on U.S. deposits,
amendment for conformity with International Banking Act of 1978
963, 989
M, Foreign Activities of National Banks:
Reserve requirement on foreign borrowings,
amendment
756, 111
O, Loans to Executive Officers of Member
Banks:
Indebtedness under bank credit-card, checkcredit, or similar plan, amendment.. .611, 670
Limit, amendment to increase
211, 251




A 89

Pages
Regulations and rules—Continued
Q, Interest on Deposits:
Retirement accounts, increase in ceiling rate,
technical amendment
519, 571
Time deposits:
Early withdrawal, amendment and
interpretation
698 995
New types, amendment
423, 479
Transfers of funds, automatic, from savings
to checking accounts, amendment to
permit
424, 479
Treasury tax-and-loan investment program,
amendment exempting
398, 427
Regulation relating to Reserve Bank directors,
actions and responsibilities
568
Regulations Relating to Branches of Federal
Reserve Banks, revision for conformity with
Federal Reserve Reform Act of 1977 . . 5 7 1 , 611
Rules of Procedure, amendments.... 880, 881, 882
Rules Regarding Delegation of Authority,
amendments
112, 485, 756, 880
Rules regarding public observation of meetings,
amendments
756
T, Credit by Brokers and Dealers:
Certain nonconvertible corporate bonds:
Credit on, amendment
801, 823
Margin requirements on, proposed
amendment
428
Over-the-counter margin stock list, amendment
251, 427, 480
Subordinated capital loart to another broker or
dealer, amendment
611, 670
U, Credit by Banks for the Purpose of Purchasing or Carrying Margin Stocks:
Acceptance of "purpose statements" by mail,
new interpretation
567, 611
Over-the-counter margin stock list, amendment
251, 427, 480
Y, Bank Holding Companies:
Acting as general insurance agents, comment
invited
518
Check verification as permissible activity,
proposed amendment
698
Divestitures in certain situations, interpretation
211
Foreign offices, proposed amendment
342
Municipal securities dealer activities, amendment
306
Nonbank activities, proposed change in provisions concerning publication of notice of
intention to commence
611
Registration or application for expansion, approval of several technical changes affecting, and other revised rules
920
Sale of insurance, proposed revision
342
Selling money orders, traveler's checks, savings bonds, and certain courses, proposed
amendment
251
Transfer agents, amendment
27
Transferred shares or other assets, interpretation
148
Underwriting and dealing in Govt, securities,
Board decisions on
148
Z, Truth in Lending:
Billing:
Cash-advance check transactions, amendment
147
Descriptive, of nonsale credit transactions
on open-end credit accounts, amendment
112
Certain open-end credit plans secured by consumers' residences, amendment and interpretation concerning right of recission
671, 697

A 90

Federal Reserve Bulletin • December 1978

Pages
Regulations and rules—Continued
Z, Truth in Lending—Cont.
Consumer leasing laws, exemption from,
amendment
428, 481, 485
Credit transactions, exemption from
919
Deferred action on all amendments except
where unavoidable
993
Disclosure of loss of interest when time deposit is used as security for loan, proposed
interpretation
778
Official staff interpretations, revised procedures, amendment
396, 428
Record retention requirements for lenders in
credit transactions, amendment
486, 517
Repayment of debt in varying amounts:
All cases, proposed revised interpretation
and amendment
428, 518, 778
Disclosure, amendment, and withdrawal of
proposed revision of interpretation 756, 779
Minor irregularities, maximum irregular
period limits, interpretation
757
Terms, amendment of interpretation
882
Repurchase agreements and Federal funds, survey
and article
149, 353
Reserve requirements:
Member banks:
Changes (See Regulations and rules, Board
of Governors: D)
Staff economic studies
531, 937
Universal, and Board program to encourage
membership in Federal Reserve System, proposed legislation
605
Revisions (See also Tables):
Commercial bank loans and investments series.. 518
Condition and income reports, and availability
of preliminary data
64, 147, 251
Money stock
338
Rhoades, Stephen A . , staff economic study
532
Rose, John T., staff economic study
12
SAG A N , John, appointed Class C director, Chicago
236
Savings and loan associations
145, 4 2 3 , 4 7 9 ,
611, 821, 989
Schneider, Phillip W . , appointed director, Portland
Branch
244
Schweitzer, Paul, staff economic study
532
Seasonal adjustment techniques, formation of
committee to review
341
Securities (See specific types):
Bank stock loans, statement on survey
285
Municipal securities dealer activities, amendment of Regulation Y
306
Nonconvertible corporate bonds, amendment of
Regulation T
428, 801, 823
Over-the-counter (See Stock market)
State member banks:
Securities and Exchange Commission regulations, amendment of Regulation F to conform
859
Transactions, proposed amendment of Regulation H to establish uniform records and
procedures
148
Transfer agents, amendment of Regulations H
and Y
27
Stock market (See Stock market)
Seiders, David F., article and staff economic
study
153, 361
Shafer, Jeffrey R., appointed Associate International Division Officer, Division of International
Finance
779
Shirley, George S., appointed director, Birmingham Branch
234




Pages
Simpson, Thomas D . , staff economic study
531
Smaby, James H., elected Class A director, Minneapolis
239
Smith, Ralph W . , Jr., appointed Assistant International Division Officer, Division of International
Finance
779
Smith, Wayne J., article
353
Staff economic studies (summaries):
Bank market structure, effect of bank holding
company foothold acquisitions on
532
Commercial banks, external capital financing
requirements, 1977-81
82
Credit-scoring models, problems in applying
discriminant analysis
13
Federal Reserve System attrition since 1960,
analysis
12
Interest rate ceilings and disintermediation
715
Member bank required reserve ratios, behavior
and effects of Board action, 1968-77
531
Mortgage borrowing against equity in existing
homes
361
Relationship between reserve ratios and monetary aggregates under reserves and Federal
funds rate operating targets
937
State member banks:
Condition and income reports (See Condition
and income reports)
Fair Debt Collection Practices Act, fact sheet... 341
Home mortgage disclosure, exemption actions
from Regulation C, and statement
251, 698
Membership in Federal Reserve System:
Admissions
64, 1 4 9 , 2 5 2 , 4 2 9 , 5 1 9 , 6 1 3 , 7 8 0 ,
8 2 6 , 9 2 3 , 996
Legislation, proposed, statements . . . 636, 642, 647
Mergers (See Bank Merger Act)
Real estate loans in identified flood-hazardous
areas, amendment of Regulation H
397
Securities (See Securities)
Supervision and regulation (See Bank supervision
and regulation)
Tax transactions between parent holding companies and, Board policy statement
825
Statements to Congress (includes reports):
Bank stock loans, survey
285
Banking system, U . S . , condition
458
Budget, Federal, financial implications of expanding public debt
84
Community Reinvestment Act
631
Competition in Banking Act of 1977
179
Credit unions, proposed establishment of central
liquidity facility
631
Dollar:
$1 coin, bill to change size, weight,
and design
453
Rescue operations and their domestic
implications
943
Equal Credit Opportunity Act and Fair Housing
Act, Board's enforcement
742
Exports, U . S . , influences of recent exchange-rate
movements on
86
Federal budget
190
Federal Reserve Act, proposed amendments to expand type of collateral eligible to secure Federal
Reserve notes, and to expand number of Class C
directors of Reserve Banks
552
Federal Reserve System:
Expenditures, review, and 1978 budgets
90
Membership, proposed legislation to stem attrition, and related issues
636, 642, 647
Financial developments, quarterly reports to
Congress:
Q4, 1977
67
Q l , Q2, andQ3, 1978
3 4 5 , 6 1 5 , 829

Index to Volume 64

Pages
Statements to Congress—Continued
Foreign banks, proposed legislation
538
Full Employment and Balanced Growth Act
377
Government in the Sunshine Act
651
Home Mortgage Disclosure Act
631
Incomes policies
94, 454
Interest on deposits, proposed extension of ceiling
rate authority and adoption of changes
631
Monetary policy, conduct and condition and
outlook for national economy
185, 190,373,
5 4 3 , 5 4 8 , 6 4 2 , 8 4 3 , 943
Small Business Investment Act of 1958, proposed
amendment
629
Tax legislation
736
Treasury Department, extension of direct borrowing authority
542
Truth in Lending Act, simplification
740
Stein, Joan, appointed director, Jacksonville
Branch
235
Sternlight, Peter D., report
265
Stock market:
Acceptance of "purpose statements" by mail for
loans on securities purchases, new interpretation of Regulations G and U
567, 611
Nonconvertible corporate bonds, amendment of
RegulationT
428,801,823
Over-the-counter margin stock list:
Requirements for inclusion, change..251, 4 2 7 , 4 8 0
Revisions
342, 825
Subordinated capital loan to another broker or
dealer, amendment of Regulation T . . . 6 1 1 , 670
Stocks, statement on survey of bank
stock loans
285
Stringham, Fred H., appointed director, Salt Lake
City Branch
244
Stroube, William H., appointed Class C director,
St. Louis
237
Struble, Frederick M., appointed Assistant Research Division Officer, Division of Research
and Statistics
779
Supervision and regulation (See Bank supervision
and regulation)
Surveys:
Bank stock loans, statement
285
Consumer credit, extension and revisions
698
Consumer rights under Equal Credit Opportunity
and Fair Credit Billing Acts, article on exercise of
363
Foreign lending by large U.S. banks...60, 515, 992
Repurchase agreements and other borrowings by
banks in Federal funds
149
Time and savings deposits at commercial
banks
76, 367, 623, 837
Trust assets, revised interagency requirements
for reporting
921
Swap arrangements
60, 250, 917
TABLES (See also Revisions; for index to tables
published monthly, see guide at top of p.
A81):
Annual Statistical Digest, 1973-1977
Consumer credit, 3-year extension of survey and
revisions
Corporations, nonfinancial, new series on working capital
Erratum
Foreign exchange value of U.S. dollar, revision
of index of weighted-average value
International statistics, revised
Tax legislation, statement
Tax transactions between State member banks and
parent holding company, Board statement




A 91

Pages
Teed, Raymond L., appointed Assistant Director,
Division of Federal Reserve Bank Examinations
and Budgets
923
Teeters, Nancy H., appointed Member, Board of
Governors
Ill
Terteling, Joseph L., appointed director, Salt Lake
City Branch
244
Thrift institutions, nonbank, in 1977 and 1978,
article
927
Transfers of funds:
EFT (electronic funds transfers) and privacy,
article
279
Nationwide network for electronic payments and
for clearing services, Board approval for, and
completion
425, 823
Prices, preliminary schedule, for Federal Reserve check collection and automated clearinghouse services
989
Proposed actions of Board
64
Savings to checking accounts,
automatic,
amendment of Regulation Q to permit, effective Nov. 1, and guidance on advertising of
plans for
424, 479, 778, 823
Treasury Department:
Direct borrowing authority, statement
542
Dollar, joint Treasury-Federal Reserve statement on measures to strengthen
917
Foreign exchange markets, joint intervention
with Federal Reserve
60
Foreign exchange operations of Treasury and
Federal Reserve, reports
161, 448, 717, 939
Swap arrangements, change
60, 250, 917
Truth in Lending:
Act:
Consumer leasing laws, exemption
from
428, 485
Simplification, statement
740
Regulation Z (See Regulations and rules, Board
of Governors)
Tschinkel, Sheila, report
265
Tuttle, Baldwin B., Deputy General Counsel, resignation
64
U.S. GOVERNMENT securities:
Underwriting and dealing in Federal Govt, and
municipal securities by bank holding companies, Board decisions on
148
U.S. international transactions, article
255
V A U G H A N , J. R., elected Class B director, San
Francisco
243

700
612
736

WALLACE, John M . , temporary appointment as
Assistant Secretary of Board
Wallich, Henry C.:
Exports, U . S . , statement
Incomes policies, statements
94,
Small Business Investment Act of 1958, statement
Warrants, cancellation of Regulation E
918,
Watkins, Hays T., elected Class B director,
Cleveland
Weber, Arnold R., appointed Class C director,
Cleveland
Williams, J. Earl, appointed director, Houston
Branch
Williams, John R., articles
367,
Willson, Hugh M., elected Class A director, Atlanta
Wire transfers of funds (See Transfers of funds)
Wright, Rebekah F., article

825

YOHN, Frederick O . , Jr., article

994
698
533
149

519
86
454
629
963
231
231
242
623
234
76
431

A 92

The Federal Reserve System
Boundaries of Federal Reserve Districts and Their Branch Territories

Helena
Minneapolis
Detroit
Chicago
Omaha*

\Salt Lake City
Denver

Kansas

tsfcu lpep|

Louisvil

City

t.

fichjnoi

Louis

'harlotte.
\Oklahoma City*

[M^imphisSashm

l

"geles
Mile Rock

Birminghai

Atlanta

Dallas®
UPaso

jacW>*vitte
Houston i

^Orleans

\San Antonio

January 1 9 7 8

* a
>
HAWAII

©

0

LEGEND




®

Federal Reserve Bank Cities
Federal Reserve Branch Cities
Federal Reserve Bank Facility

Guide to
Tabular Presentation and Statistical Releases
GUIDE TO TABULAR

PRESENTATION

SYMBOLS AND ABBREVIATIONS
P
r

n.e.c.
Rp's
IPC's

Preliminary
Revised (Notation appears on column heading
when more than half of figures in that
column are changed.)
Estimated
Corrected
Not elsewhere classified
Repurchase agreements
Individuals, partnerships, and corporations

SMSA's
REIT's

Standard metropolitan statistical areas
Real estate investment trusts
Amounts insignificant in terms of the particular unit ( e . g . , less than 5 0 0 , 0 0 0 when
the unit is millions)
(1) Zero, (2) no figure to be expected, or
(3) figure delayed or, (4) no change (when
figures are expressed in percentages).

GENERAL INFORMATION
Minus signs are used to indicate (1) a decrease, (2)
a negative figure, or (3) an outflow.
" U . S . Government securities" may include guaranteed issues of U . S . Government agencies (the flow of
funds figures also include not fully guaranteed issues)

STATISTICAL

as well as direct obligations 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.

RELEASES

LIST PUBLISHED SEMIANNUALLY, WITH LATEST BULLETIN REFERENCE
Anticipated schedule of release dates for individual releases




Issue
June 1978

Page
A-76