Full text of Federal Reserve Bulletin : February 1974
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FEDERAL RESERVE
BULLETIN
FEBRUARY 1974
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FEDERAL RESERVE BULLETIN
NUMBER 2 • VOLUME 60 • FEBRUARY 1974
CONTENTS
69
Financial Developments in the Fourth Quarter of 1973
79
Staff Economic Studies: Summary
81
Revision of the Money Stock Measures and Member Bank
Reserves and Deposits
97
Statements to Congress
108
Record of Policy Actions of the Federal Open Market Committee
123
Law Department
152
Directory of Federal Reserve Banks and Branches
167
Announcements
173
Industrial Production
Financial and Business Statistics
A
1
Contents
A
3
Guide to Tabular Presentation
A
3
Statistical Releases: Reference
A
4
U.S. Statistics
A
72
International Statistics
A 100
Board of Governors and Staff
A 102
Open Market Committee and Staff; Federal Advisory Council
A 103
Federal Reserve Banks and Branches
A 104
Federal Reserve Board Publications
A 107
Index to Statistical Tables
Map of Federal Reserve System on Inside Back Cover
EDITORIAL
COMMITTEE
J. Charles Partee
Ralph C. Bryant
Lyle E. Gramley
Joseph R. Coyne
Robert Solomon
Kenneth B. Williams
Elizabeth B. Sette
The Federal Reserve BULLETIN is issued monthly under the direction of the staff editorial
committee. This committee is responsible for opinions expressed except in official
statements and signed articles. Direction for the art work is provided by Mack Rowe.
Financial
Developments in the
Fourth Quarter
of 1973
This report, which was sent to the Joint Economic Committee of
the U.S. Congress, highlights the important developments in financial markets during the fall and early winter.
Conflicting economic pressures and an atmosphere of great uncertainty underlay financial developments in the fourth quarter of 1973.
The Nation's gross national product continued to expand at a
relatively rapid pace, but this expansion reflected mainly price
inflation. Real economic growth slowed, in part due to the energy
shortage. The Arab oil embargo and the sharp increase in oil prices
obscured the economic future, stimulated large-scale international
financial flows, and led to substantial readjustments of exchange
rates as the market evaluated likely differential balance of payments
impacts among countries.
During the second half of 1973, the narrowly defined money
stock expanded at a 3.7 per cent annual rate, much slower than
the 7.7 per cent growth rate of the first half. However, it grew
at a relatively rapid rate in the final months of the year when public
demands for cash balances may have been enhanced by precautionary motives in the uncertain financial and economic environment. The rapid Mx growth late in the year occurred with only
a small increase in reserves available to support private nonbank
deposits, as a reduction in large negotiable certificates of deposit
(CD's) freed reserves to support expansion in the demand deposit
component of Mx. Growth of the broader money stock aggregates
accelerated during the fourth quarter as improved inflows of consumer-type time and savings deposits at both commercial banks
70
FEDERAL RESERVE BULLETIN • FEBRUARY 1974
and nonbank thrift institutions supplemented the rise in Mx. For
the year as a whole, M x grew at a 5.7 per cent annual rate, while
the broader aggregates, M 2 and M 3 , each grew at an 8.6 per cent
rate.
Market rates of interest remained considerably below peak levels
reached during the summer. The flow of short-term credit to the
business sector, though sizable, was somewhat reduced from earlier
quarters of the year. There was a shift in the short-term credit
demands of large corporations away from commercial banks and
toward the commercial paper market, as market rates were low
relative to bank loan rates. At the same time, corporations increased
their issuance of securities in the capital markets. Flows to major
private mortgage lenders were much improved during the quarter,
but net mortgage debt formation fell sharply, in part reflecting
earlier cutbacks in commitments.
MONETARY
AGGREGATES
In the fourth quarter of 1973, reserves available to support private
nonbank deposits (RPD's) increased at the slowest rate in nearly
4 years. This largely reflected a decrease in the banking system's
demand for reserves occasioned by substantial run-offs of maturing
large CD's in October and November. During earlier quarters of
the year, when business loan demands were stronger and banks
aggressively sought additional loanable funds, large issues of CD's
by banks had greatly increased the demand for reserves.
Total reserves increased faster than RPD's in the fourth quarter,
as the System accommodated a net rise in the total of U.S.
Government and interbank deposits. In the process, nonborrowed
reserves expanded rapidly to offset the decline in member bank
borrowings from the Federal Reserve that accompanied the reduction in short-term market rates.
Measured on an end-month of quarter basis, Mx increased at
a 7.5 per cent seasonally adjusted annual rate during the fourth
quarter after showing little net change in the third quarter. When
measured on the quarterly average basis commonly employed in
calculations of such economic aggregates as gross national product,
the fourth-quarter growth rate of Mx was 3.9 per cent as compared
with a 5.5 per cent rate for the third. M 2 expanded at an annual
rate of 10.1 per cent from September to December, buoyed by
stronger inflows of consumer-type time and savings deposits at
commercial banks. M 3 rose at a 9.2 per cent rate over the period,
reflecting expansion in M 2 and improved deposit flows at nonbank
thrift institutions. These growth rates reflect year-end revisions in
the monetary aggregates, incorporating new benchmark data for
nonmember banks and updated seasonal adjustment factors. The
revisions raised measured 1973 growth rates for Mx by close to
1 per cent and for M 2 and M 3 by lesser amounts.
71
FINANCIAL DEVELOPMENTS, Q4 1973
TABLE 1
CHANGES IN SELECTED MONETARY AGGREGATES
In per cent, figures are seasonally adjusted annual rates
1973
1972
Item
Member bank reserves—
Total
Nonborrowed
Available to support private
nonbank d e p o s i t s 1
1973
Q1
Q2
Q3
Q4
10.6
7.7
7.8
7.2
6.4
-3.6
6.9
7.0
10.6
11.3
6.1
13.4
10.1
9.3
7.8
12.5
14.2
1.4
8.7
11.1
13.1
5.7
8.6
8.6
3.8
6.9
9.4
11.5
11.1
10.4
.2
5.2
4.5
7.5
10.1
9.2
7.7
10.9
13.0
6.1
8.8
8.9
7.0
8.8
10.8
7.5
8.7
9.1
5.5
7.9
7.2
3.9
8.5
7.4
Time and savings deposits at:
Commercial banks (other than
large C D ' s )
13.5
11.3
9.9
10.4
10.4
12.5
Nonbank thrift institutions
16.9
8.7
13.6
9.4
3.1
7.5
11.6
10.6
14.6
12.6
10.5
3.3
10.4
19.4
11.2
7.4
1.5
-2.3
Concepts of m o n e y 2 calculated f r o m —
End-month of quarter:
Mx
M2
M3
Quarterly average:
Mj
M2
M3
Bank credit proxy, adjusted
3
M E M O (Change in billions of
dollars, seasonally adjusted)—
Large C D ' s
U . S . Government demand
deposits at member banks
-L2
-
4.7
-
.3
-3.9
-
.1
*Total reserves less required reserves for U . S . Government and interbank deposits.
M i is currency plus private demand deposits adjusted.
M 2 is M x plus bank time and savings deposits adjusted other than large C D ' s .
M 3 is M 2 plus deposits at mutual savings banks and savings and loan associations.
3
Total member bank deposits plus funds provided by Euro-dollar borrowings and bankrelated commercial paper.
NOTE.—Changes are calculated from the average amounts outstanding in the last month
of each quarter, except the quarterly average calculation of concepts of m o n e y , which are
based on changes in the average amounts outstanding for a quarter. Annual rates of growth
have been adjusted for changes in reserve requirements.
Data for the m o n e y stock and other monetary aggregates have recently been revised
to reflect changes in seasonal adjustment factors and corrections to the latest benchmark
levels available for nonmember banks. A complete description of these revisions appears
on pp. 8 1 - 9 5 .
2
Special factors stemming primarily from the Arab oil embargo
may have enlarged money stock growth late in the year. As the
dollar gained strength in international markets because of the
presumed greater impact of the fuel shortage on foreign economies,
some foreign central banks sold dollar assets to support their own
currencies. In November some of the proceeds of these sales were
deposited temporarily at Federal Reserve Banks, thereby increasing
the growth of Mx in that month. Also, near year-end, the coincidence of European banking holidays with bank reporting dates led
to an apparent accumulation of dollar balances by foreign commercial banks at U.S. commercial banks. Uncertainties associated with
the energy crisis may also have induced domestic wealth holders
to seek refuge for a time in deposit claims of banks and thrift
institutions, rather than investing in marketable securities.
72
FEDERAL RESERVE BULLETIN • FEBRUARY 1974
The decline of interest rates on market instruments from peak
levels reached during the summer reduced the pressures toward
disintermediation. Inflows of consumer-type time and savings deposits at commercial banks, which had continued to be sizable
during the third quarter, increased somewhat further in the fourth
quarter. Growth of deposits at nonbank thrift institutions recovered
substantially from the depressed third-quarter rate.
Commercial banks and nonbank thrift institutions had competed
actively for consumer-type savings during the summer, with the
ceiling-free, 4-year certificate category created by the regulatory
agencies in July playing an important role in that competition. Both
Seasonally adjusted monthly averages.
is currency plus private demand deposits adjusted.
M 2 is Mj plus commercial bank time and savings deposits adjusted other than large C D ' s .
M:J is M 2 plus deposits at mutual savings banks and savings and loan associations.
groups of institutions had attracted large amounts of the ceilingfree deposits, some transferred from their own accounts and some
drawn from other institutions and market instruments. However,
commercial banks experienced larger net inflows of total consumer-type time and savings deposits than did thrift institutions.
The Congress passed legislation in October requiring the Federal
regulatory agencies to reimpose rate ceilings on all maturities of
time deposits. Consequently, ceilings of llA per cent for commercial banks and IVi per cent for thrift institutions were set on the
4-year accounts, effective November 1. Deposit inflows at thrift
institutions, particularly savings and loans, had already improved
significantly earlier in the fall in response to the decline in market
interest rates; these institutions were able, due to the continuance
of the lower market rates, to sell sizable volumes of the 4-year
certificates in November and December even with the new ceilings.
The accelerated expansion of demand and consumer-type time
FINANCIAL DEVELOPMENTS, Q4 1973
73
and savings deposits was one factor leading commercial banks to
permit a run-off in their large CD's. Also important was the
relatively high cost of CD funds—a cost that had been increased
by the imposition in late September of an additional 3 percentage
point marginal reserve requirement on such deposits above a
mid-May base (raising the marginal reserve requirement to 11 per
cent on CD's and related instruments at member banks). Between
September and November, the volume of CD's outstanding at large
banks was reduced by nearly $5 billion as offering yields on most
maturities were cut by 1 lA to Wi percentage points. In December
the 3 per cent marginal reserve requirement was suspended, and
commercial banks bid somewhat more aggressively for large CD's.
Nevertheless, large CD's outstanding decreased by a sufficiently
large amount over the quarter to offset much of the gain in other
deposit categories, and the result was the slowest growth of the
adjusted member bank credit proxy in 3 years.
BANK USES OF FUNDS
The run-off of large CD's at commercial banks was, in large
measure, a response to a pronounced slowing in the growth of
bank loans, particularly to nonfinancial businesses. During the
fourth quarter, commercial bank loans and investments grew at
an annual rate of only 4Vi per cent, as compared with the 15 per
cent pace recorded in the first 9 months of the year. While growth
in almost all major loan categories moderated during the quarter,
the most significant change was in business loans, which increased
at only about a 5 per cent annual rate compared with a 25 per
cent rate of gain over the first three quarters. Banks continued to
liquidate holdings of Treasury securities (on a seasonally adjusted
basis); for the year as a whole, the total decline in bank holdings
of such issues was nearly $9 billion. However, in the fourth quarter,
banks stepped up their acquisition of other securities—primarily
Federal agency and municipal issues—and the increase in these
investments offset the reduction during that period in holdings of
Treasury securities.
The slackening of business loan growth at commercial banks
was the product of two significant shifts in corporate financing
patterns. One of these was a movement toward greater reliance
on the capital markets in the fourth quarter. The second was a
substitution of commercial paper sales for bank borrowings, particularly in October and the first half of November. This substitution
was stimulated by a sizable cost advantage that was created by
the sharp decline in short-term market interest rates in September
and October, but which diminished thereafter as the commercial
bank prime rate began to move lower and commercial paper rates
firmed. By late November, rates had adjusted so as to provide
an incentive for some switching back to bank credit; dealer-placed
74
FEDERAL RESERVE BULLETIN • FEBRUARY 1974
BANK CREDIT
COMPONENTS
U.S. GOVT. SECURITIES
T U
JUL
BANK LOANS
MAJOR COMPONENTS
OTHER SECURITIES
BUSINESS
512
M
-
TOTAL LOANS
8
Ril inn:
REAL ESTATE
CONSUMER
n,P n n H ,
SECURITY
1
Q4
Seasonally adjusted. Loans adjusted
for transfers between banks and their
holding companies, affiliates, subsidiaries, or foreign branches. Bank
credit figures revised to incorporate
June 1973 Call Report data for nonmember banks and new seasonal adjustment factors.
I Q1
I I
Q2
+
I |
j Msamto
Q3
—Q4
4
Seasonally adjusted. Business adjusted for transfers between banks
and their h o l d i n g
companies,
affiliates, subsidiaries, or foreign
branches. Bank credit figures revised
to incorporate June 1973 Call Report
data for nonmember banks and new
seasonal adjustment factors.
commercial paper outstanding dropped slightly on a seasonally
adjusted basis during December.
The depressing impact of the fuel shortage on automobile sales
was reflected directly in bank loans to consumers and indirectly
in bank loans to nonbank financial institutions. Consumer credit
demands slackened, producing a slight reduction in the still relatively rapid growth rate of bank consumer loans. Finance companies, although requiring funds to finance auto inventories that built
up as sales weakened, borrowed less from banks and relied more
heavily on the commercial paper and bond markets.
Real estate loans at banks also slowed moderately in the fourth
quarter from the rapid pace of earlier months. However, compared
to previous periods of credit stringency, the expansion in real estate
loans remained very strong throughout 1973 as banks—with their
access to funds in the CD market unconstrained by Regulation Q
ceilings—generally found attractive the high rates available on
mortgages. For the year, bank holdings of real estate loans in-
75
FINANCIAL DEVELOPMENTS, Q4 1973
creased by nearly 20 per cent; this compared with an expansion
of only 3.6 per cent during 1970, the previous period of credit
stringency. The $19 billion supplied by commercial banks to the
mortgage market during 1973 constituted more than one-fourth of
total net mortgage debt formation.
NONBANK
INTERMEDIARIES AND
MORTGAGE MARKETS
The fourth quarter of 1973 saw a marked improvement in deposit
flows at nonbank thrift institutions, particularly at savings and loan
associations. During the third quarter, when short-term interest rates
reached their highest levels of the year, deposit withdrawals on
an unadjusted basis at savings and loans and mutual savings banks
exceeded new deposits by nearly $3.7 billion; in contrast, there
was a net new money inflow of approximately $2.3 billion during
the fourth quarter. The entire gain in deposits over the October-December period occurred in certificate accounts as passbook
deposits declined slightly. On a seasonally adjusted basis, total
deposits rose at an 8.0 per cent annual rate in the fourth quarter,
NONBANK SAVINGS ACCOUNTS up from 2.0 per cent during the preceding quarter.
With the abatement of pressures toward disintermediation, nonbank thrift institutions began to rebuild liquid asset portfolios and
to reduce reliance on nondeposit sources of funds. The indebtedness
of member thrift institutions to the Federal Home Loan Bank
m
System rose $850 million, but this increase was much smaller than
the $3.2 billion expansion during the third quarter. Mortgage loan
commitments at thrift institutions continued to decline, but at a
decelerated pace.
Net mortgage debt formation slowed sharply during the fourth
quarter
of 1973 and, on a seasonally adjusted basis, was about
_
one-third
below the peak first-quarter rate. Nearly all of the decrease
fk
Seasonally adjusted.
in mortgage debt growth occurred in the residential sector, but
TABLE 2
NET CHANGE IN MORTGAGE DEBT OUTSTANDING
In billions of dollars, seasonally adjusted quarterly rates
1972
1973
Change—
By type of debt:
Total
Residential
Other 1
At selected institutions:
Commercial banks
Savings and loans
Mutual savings banks
Insurance companies
FNMA-GNMA
Q4
Qi
Q2
Q3
Q4 e
17.1
12.6
4.5
19.8
14.7
5.1
18.9
13.7
5.2
17.6
12.2
5.4
13.4
8.6
4.8
4.5
8.6
1.5
1.2
.1
4.6
8.2
1.5
.4
.5
5.1
8.7
1.7
.5
.4
4.8
6.3
1.3
1.2
1.6
4.1
3.0
1.2
1.2
.7
i n c l u d e s commercial and other nonresidential as well as farm properties.
Partially estimated.
e
76
FEDERAL RESERVE BULLETIN • FEBRUARY 1974
the expansion in nonresidential mortgage debt also moderated.
Commercial banks accounted for the largest single share of total
net mortgage debt formation, as net lending by savings and loan
associations dropped further. Direct and indirect financing by the
Federally sponsored credit agencies fell in the last quarter of the
year, due to the reduced volume of FHLB advances and increased
resales of mortgages to private investors by the Government National Mortgage Association.
FUNDS RAISED IN
SECURITIES MARKETS
The volume of long-term securities issued by corporations and State
and local governments during the fourth quarter was substantially
larger than in previous quarters of 1973. A greatly expanded volume
of publicly offered bonds accounted for most of the increase in
new issues by the corporate sector. A resurgence in financings
by manufacturing and financial corporations played an important
role in boosting the volume of offerings. Private placements were
down somewhat from the high levels recorded in prior quarters.
TABLE 3
OFFERINGS OF NEW SECURITY ISSUES
Quarterly totals, in billions of dollars, not seasonally adjusted
1972
1973
T y p e of issue
Q4
Qi
Q2
Q3
Q4e
Corporate securities—Total
Bonds
Stocks
10.6
7.3
3.3
8.2
4.4
4.0
8.6
6.2
2.4
6.4
4.6
1.7
10.2
7.0
3.1
State and local government
bonds
5.9
5.9
5.9
5.2
6.6
e
Estimated.
NOTE.—Details may not add to totals because of rounding.
The increase in over-all bond volume was partly attributable to
the increased gap between internal funds generated and capital
outlays, but it was also influenced by the redirection of business
credit demands from short-term to long-term markets as corporations attempted to bolster liquidity and avoid what might have
proven to be more costly long-term financings in ensuing months.
The September-October stock market rally stimulated a spurt in
new equity issues, though offerings dropped off again as share
prices declined sharply over the last 2 months of the year.
State and local units sold the largest volume of long-term debt
since the first quarter of 1971. An exceptionally large volume of
revenue bonds was marketed, with industrial pollution control
issues continuing to increase in importance. Because these pollution
control bonds are used to finance business capital outlays, their
rapid growth has led to an increasing overstatement of State and
FINANCIAL DEVELOPMENTS, Q4 1973
77
local government credit needs and an understatement of corporate
financing requirements.
The U.S. Treasury borrowed $6.7 billion from the public during
the fourth quarter to finance a seasonal budgetary deficit and to
rebuild its cash balances. Treasury credit needs were increased by
foreign central bank redemptions of nonmarketable Treasury issues;
foreign central bank sales of marketable issues added further to
the quantity of Treasury securities that had to be acquired by
domestic buyers. At the same time, reduced credit demands by
Federally sponsored credit agencies provided some offset to the
increased Treasury borrowings.
TABLE 4
FEDERAL GOVERNMENT BORROWING AND CASH BALANCE
Quarterly totals, in billions of dollars, not seasonally adjusted
1973
1972
Item
Budget surplus, or deficit (—)
Net cash borrowings, or
repayments (—)
Other means of financing1
Change in cash balance
MEMO: Net borrowings by Federally sponsored credit agencies 2 ..
Q3
Q4
7.7
-1.1
-5.0
8.4
2.9
1.8
-6.5
-1.5
-.3
- .7
-2.5
-4.3
6.7
1.4
2.1
2.0
5.0
6.1
Q4
Ql
-10.5
-9.5
12.3
-.5
1.3
1.0
Q2
3. l e
C h e c k s issued less checks paid and other accrued items.
Includes debt of the Federal Home Loan Mortgage Corporation, Federal home loan banks,
Federal land banks, Federal intermediate credit banks, banks for cooperatives, and F N M A
(including discount notes and securities guaranteed by G N M A ) .
e
Estimated.
2
INTEREST RATES
Interest rates showed rather wide fluctuations during the fourth
quarter, but at year-end, rates were generally close to the levels
reached in the September market rally and well below their summer
peaks. Long-term rates were moving upward as the new year began
and a heavy schedule of new corporate and tax-exempt issues
developed.
The Federal funds rate tended downward between September
and December, declining by about one percentage point over the
span. This change, plus the reduced short-term credit demands of
the business sector in the latter half of the quarter, enabled money
market rates to remain, on balance, near their reduced September
levels despite the heavy volume of short-term Treasuries sold by
foreign central banks and by the U.S. Treasury. The market yield
on 3-month Treasury bills jumped sharply during November but
declined thereafter to IV2 per cent, about the same as at the
beginning of the quarter. Commercial paper rates, on the other
hand, exhibited more moderate fluctuations and ended the quarter
about one-half percentage point lower than their initial level.
CHART 2 INTEREST RATES
LONG-TERM
*Level of series was affected by issue of new 20-year U . S . Government bond in January.
Monthly averages except for conventional mortgages (based on quotations for one day
each month). Yields: U . S . Treasury bills, market yields on 3-month issues; prime commercial paper, dealer offering rates; conventional mortgages, rates on first mortgages in primary
markets, unweighted and rounded to nearest 5 basis points, from Dept. of Housing and
Urban Development; corporate bonds, weighted averages of new publicly offered bonds
rated Aaa, Aa, and A by M o o d y ' s Investors Service and adjusted to an Aaa utility basis;
U . S . Govt, bonds, market yields adjusted to 20-year constant maturity by U . S . Treasury;
State and local govt, bonds (20 issues, mixed quality), Bond Buyer.
In the capital markets, the increased volume of new bond
offerings was absorbed at relatively stable interest rates until midDecember. At that point, the heavy current and forward calendars
of new issues and some revision of market expectations regarding
the future course of monetary policy and interest rates pushed
long-term rates moderately higher. As a result, most bond rates
were roughly one-quarter percentage point higher at the end of
the quarter than at the beginning.
Mortgage interest rates trended downward during the quarter.
The prevailing contract rate on conventional mortgage loans in the
primary market fell from a record 8.95 per cent in September to
8.75 per cent in December. In the secondary market, average
auction yields accepted by the Federal National Mortgage Association on Government-underwritten mortgages declined more than
60 basis points between September and January. The ceilings on
Federal Housing Administration and Veterans Administration loans
were lowered in January from 8V2 per cent to 8 l A per cent.
Nevertheless, mortgage rates remained above this level, and in
some States usury ceilings continued to constrain mortgage flows.
78
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
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 BULLETIN
are available in mimeographed form. The list
of Federal Reserve Board publications at the
back of each BULLETIN includes a separate
section entitled "Staff Economic Studies " that
enumerates the studies for which copies are
currently available in that form.
Study Summary
THE IMPACT OF HOLDING COMPANY ACQUI!
CONCENTRATION IN BANKING
By Samuel H. Talley—Staff,
Prepared
as a staff paper
in early
Board of Governors
1974
Acquisitions of banks by bank holding companies have accelerated sharply since about 1968,
with most of the deposits having been acquired
by the 100 largest banking organizations in the
Nation. This development has revived a longstanding public concern over the possible emergence in banking of excessive aggregate concentration—generally defined as the percentage
of total deposits held by a given number of the
largest banking organizations in the Nation or
in a State. The public's basic concern is that
high levels of concentration will place excessive
economic power in the hands of a relatively
small number of banking organizations.
For purposes of the study, aggregate concentration in banking on the nationwide level was
measured by the percentage of total domestic
ON AGGREGATE
deposits held by the'100 largest banking organizations; and on the statewide level by the
percentage of total domestic deposits held by
the 5 largest banking organizations in the State.
The aim of the study was twofold: (1) to determine the changes in aggregate concentration on
the nationwide and statewide levels between
1968 and 1973; and (2) to measure the impact
of bank holding company acquisitions during
the period on these concentration measures.
The study found that nationwide aggregate
concentration fell from 49.0 to 47.0 per cent
between 1968 and 1973. This decline resulted
from the relatively slow internal growth of the
100 largest banking organizations in the Nation
and occurred even though these organizations
acquired banks during the period that held an
79
aggregate of almost $17 billion of deposits in
1973. If these holding company acquisitions
had not taken place, nationwide concentration
would have declined another 2.3 percentage
points over the period.
Between 1968 and 1973, statewide concentration increased in 28 States, declined in 22,
and remained constant in 1. Both the mean and
the median changes in statewide concentration
for the 50 States and the District of Columbia
were slightly less than 1 percentage point. Acquisitions by holding companies increased concentration in 24 States, with increases in excess
of 10 percentage points occurring in 6 States.
In States that permitted multibank expansion,
the effects of holding company acquisitions
varied with the type of branching allowed.
Holding company acquisitions increased concentration in almost all unit banking and limited
branching States, but in only about a third of
the statewide branching States. Holding company acquisitions that increased statewide concentration occurred almost entirely in States
with low or moderate concentration and had
almost no impact in States with a high degree
of concentration.
•
Revision of the Money Stock Measures and
Member Bank Reserves and Deposits
In late January the Board of Governors released
the annual revision of money stock measures
and related items. At the same time it revised
published data for member bank deposits and
reserves. 1
As usual, the revisions of the money stock
and of related measures include both the regular
updating of seasonal adjustment factors and the
annual benchmark revision, which incorporates
new estimates for nonmember domestic banks.
But this year's revisions also incorporate data
from new monthly reports filed by agencies and
branches of foreign banks and other internationally oriented banking institutions. In addition, minor corrections were made in back data
to adjust for changes in accounting procedures
in connection with the transfer of foreign funds.
The revisions also incorporate, in addition to
the usual June and December single-day nonmember bank benchmarks, single-day benchmarks from the March and October 1973 call
NOTE.—Darwin Beck and Joseph Sedransk of the
Board's Division of Research and Statistics prepared
this article.
lr
The money stock and related measures include Mx
(private demand deposits adjusted plus currency); M 2
(Mi plus commercial bank time and savings deposits
other than large negotiable certificates of deposit); and
M3 CM, plus deposits at mutual savings banks and
savings capital at savings and loan associations), as well
as (1) large negotiable time C D ' s outstanding at weekly
reporting banks and (2) U . S . Government deposits.
Monthly and weekly data for these series are published
in the BULLETIN and they also appear each week in
the Board's H . 6 press release.
Member bank reserves include total, nonborrowed,
and required reserves at member banks, as well as
reserves available to support private nonbank deposits
(RPD's). Member bank deposits and related series include all deposits subject to reserve requirements (the
credit proxy), the components of that total, consisting
of time and savings deposits and private and U . S .
Government demand deposits; and the adjusted credit
proxy (total member bank deposits subject to reserve
requirements plus Euro-dollar borrowing, bank-related
commercial paper, and other nondeposit items). Current
monthly data on the reserves and deposits series are
published in the BULLETIN and monthly and weekly
data appear in the Board's H . 3 press release.
report data. Since the early 1960's benchmark
data for nonmember banks had been available
only for June and December. The benchmark
adjustments for nonmember banks have been
large in recent years, but the current revision
incorporates the largest nonmember-bankbenchmark changes made in the history of the
series and points up the serious need for more
timely and more complete data for nonmember
banks.
The Board's staff has been investigating alternative methods for using the single-day nonmember bank data to make weekly and monthly
average estimates of nonmember bank deposits
included in the money stock measures. While
no new procedure has been incorporated in this
revision, results of some of the preliminary
work are described later in this article. The
different rates of growth obtained from alternative estimating methods illustrate the degree of
uncertainty in money stock estimates, given the
present limited availability of nonmember bank
statistics.
Revised monthly data back to January 1967,
both seasonally adjusted and not seasonally adjusted, on the money stock and related measures
and on member bank deposits and reserves are
shown on pages 90, 91, and 94. Revised weekly
data for Mx and M 2 for 1973 are shown on pages
92 and 93. Monthly and weekly data for earlier
years are available from the Banking Section,
Division of Research and Statistics.
EFFECTS OF THE REVISION
The nonmember-bank-benchmark adjustment
raised the level of the money stock series $1.0
billion in December 1972, $2.0 billion in March
1973, and by nearly $2.8 billion in both June
and October of 1973. In addition, minor data
corrections added from $300 million to $400
million to the level of Mx back to mid-1970.
On the other hand, revised estimates of M r t y p e
deposits at internationally oriented banking in-
81
FEDERAL RESERVE BULLETIN • FEBRUARY 1974
82
stitutions—that is, agencies and branches of
foreign banks and foreign investment banking
corporations—based on new monthly reports
filed by these institutions in 1973, reduced the
level of the money stock series by from about
$100 million starting in early 1967 to about $1.0
billion in 1973. Thus, on balance, the level of
the money stock series was lowered by amounts
ranging from $100 million to $900 million from
early 1967 to late 1972, raised by $200 million
in December 1972, and raised by from $1.2
billion to $2.5 billion in 1973.
Changes in member bank deposits and reserves were minor. Except for a modest adjustment that raised private demand and lowered
interbank deposits, revisions in these series reflect changes in seasonal adjustment factors. The
level of the RPD series was also raised slightly
as a result of the upward adjustment in private
member bank demand deposits.
Table 1 shows in percentage terms how much
the revisions affected annual rates of change in
the money stock and credit proxy. Based on halfyear comparisons, the revision raised the growth
somewhat in the second half of 1972 and the
first half of 1973. On the other hand, it
lowered M x growth slightly in the latter half of
1973. For 1973 as a whole Mx rose 5.7 per
cent, measured from the last month of the year
to the last month of the year. This is 0.7 of
a percentage point higher than the rate of increase based on the old series.
Differences in monthly growth rates (Table
2) were somewhat larger than for longer-run
periods. The largest difference occurred in January 1973, when the combination of the benchmark change and a change in the seasonal adjustment factor raised the growth rate about 5
percentage points—from —0.5 to 4.7 per cent.
For other months of the year changes in growth
rates were much smaller. Changes in the M 2
and M 3 growth rates were comparable to the
changes in M x . Only minor changes occurred
in growth rates for the adjusted credit proxy.
TABLE 1
CHANGES IN MONEY STOCK MEASURES AND THE ADJUSTED CREDIT PROXY
Based on average levels in final months of periods
Based on
quarterly average 1
M2
MX
MX
Period
Old
series
Revised
series
Adjusted credit proxy
Old
series
Revised
series
Old
series
Revised
series
Old
series
Revised
series
7.8
3.6
6.0
6.6
8.3
5.0
7.8
3.5
6.0
6.3
8.7
5.7
9.3
2.6
8.4
11.4
10.8
7.9
9.4
2.5
8.4
11.2
11.1
8.6
9.5
.4
8.2
9.4
11.6
10.7
9.5
.4
8.2
9.4
11.6
10.6
7.5
4.2
5.7
6.9
7.4
5.2
7.5
4.2
5.8
6.6
7.7
6.1
1971—HI
H2
10.1
3.0
9.9
2.6
14.9
7.4
14.8
7.1
10.1
8.4
10.0
8.4
8.9
4.7
8.7
4.3
1972—HI
H2
7.7
8.5
7.7
9.4
10.8
10.3
10.7
10.9
11.4
11.1
11.2
11.3
7.0
7.6
6.8
8.4
1973—HI
H2
6.0
4.0
7.7
3.7
7.7
7.8
9.1
7.8
13.8
7.0
13.8
7.0
5.8
4.5
7.3
4.7
1972—QI
Q2
Q3
Q4
9.2
6.1
8.2
8.6
9.0
6.2
8.7
9.9
12.7
8.5
10.3
10.2
12.3
8.9
10.8
10.6
11.0
11.5
9.8
12.1
10.5
11.6
10.2
12.1
5.3
8.5
7.9
7.2
5.3
8.2
8.2
8.4
1973—QI
Q2
Q3
Q4
1.7
10.3
.3
7.6
3.8
11.5
-.2
7.5
5.7
9.5
5.1
10.4
6.9
11.1
5.2
10.1
15.0
12.2
10.5
3.3
14.6
12.6
10.5
3.3
4.6
6.9
5.1
3.9
7.0
7.5
5.5
3.9
1968
1969
1970
1971
1972
1973
A n n u a l rates of growth are measured from fourth-quarter average to fourth-quarter average. Half-year growth
rates are measured from fourth- to second- and second- to fourth-quarter averages.
83
REVISION OF THE MONEY STOCK MEASURES
TABLE 2
COMPARISON OF MONEY STOCK
GROWTH RATES (1973)
Mx
M3
M2
Month
Old
series
Revised
series
Old
series
Revised
series
4.7
5.6
.9
6.4
5.9
4.7
9.4
6.1
5.2
9.8
9.0
6.9
11.7
9.1
7.2
7.5
10.7
12.4
6.0
13.9
14.2
8.1
9.8
10.4
8.3
11.8
12.8
8.4
9.1
10.4
8.6
10.3
11.9
July ..
Aug. .
Sept. .
5.0
-1.8
-2.3
4.1
-.9
-3.6
5.1
6.4
3.9
5.7
6.3
3.7
5.6
4.2
3.2
6.1
4.1
3.2
Oct. ..
Nov. .
Dec. .
4.6
10.0
8.1
5.0
10.4
7.1
10.4
11.4
9.0
10.8
10.9
8.5
9.1
9.9
8.8
9.1
9.7
8.5
Old
series
Revised
series
Jan. ..
Feb...
Mar. .
-.5
6.1
-.5
Apr...
May..
June..
of the Mi money stock, had little impact on
the general movement of the series. Seasonal
factors for time deposits other than CD's, a
component of a broader money stock measure,
M 2 , were also reviewed. But again, the addition
of one year's data and the benchmark revision
had little impact on the monthly factors.
MONEY STOCK
SEASONAL FACTOR REVIEW OF MONEY
STOCK MEASURES
Revisions in monthly seasonal adjustment factors were minor this year. As shown in Table
3, seasonal factors for the demand deposit component of Mx for 1973 changed in only 2
months, January and July. The January factor
declined and the July factor increased. The
seasonal adjustment factors for the currency
component revised somewhat more, but these
changes, associated with a smaller component
TABLE 3
Seasonally adjusted weekly averages of daily figures.
Weekly seasonal adjustment factors for all of
the money stock components were reviewed,
and as usual, the addition of one year of data
tended to smooth the week-to-week changes in
the series. In particular, as shown in Chart 1,
the extent of month-end drops and of beginning-of-month bulges in the demand deposit
component was reduced.
COMPARISON OF M1 SEASONAL
ADJUSTMENT FACTORS (1973)
BENCHMARK COMPONENT
Demand deposit
component
Currency
component
Month
Old
series
Revised
series
January
February
March
1.038
.990
.990
1.036
.990
.990
.994
.987
.990
.994
.987
.990
April
May
June
1.009
.979
.990
1.009
.979
.990
.992
.995
1.001
.994
.996
1.001
July
August
September
.992
.983
.993
.994
.983
.993
1.008
1.005
.999
1.008
1.004
.999
October
November
December
.998
1.006
1.032
.998
1.006
1.032
i.ooo
1.009
1.018
.999
1.008
1.016
Old
series
Revised
series
The money stock measures published by the
Board are based on daily deposits of member
banks reported weekly on a very current schedule. A substantial portion of the money stock
measures, now more than 25 per cent of the
demand deposit component of Mu represents
deposits at domestic nonmember banks. Inasmuch as these banks do not report on a current
basis, a large portion of the money stock is
estimated on the basis of single-day reports for
benchmark dates filed by these institutions with
the Federal Deposit Insurance Corporation. On
the basis of these reports the Board has estimated the nonmember bank component of the
FEDERAL RESERVE BULLETIN • FEBRUARY 1974
84
TABLE 4
S O U R C E S O F S E A S O N A L L Y A D J U S T E D Mx REVISION
Differences due to—
Revised
series
Month
Old
series
1972—December
255.5
255.7
.2
1973—January
February
March
255.4
256.7
256.6
256.7
257.9
258.1
1.3
1.2
1.5
.4
April
May
June
258.2
260.5
263.2
259.4
262.4
265.5
1.2
1.9
2.3
July
August
September
264.3
263.9
263.4
266.4
266.2
265.4
October
November
December
264.4
266.6
268.4
266.5
268.8
270.4
Difference
Domestic
nonmember
International
institutions
1.0
-1.4
.6
1.2
1.6
2.0
-
.8
.8
.9
.5
.4
.4
-.1
-.1
2.1
2.4
2.8
-1.1
-1.1
- .8
.3
.7
.3
2.1
2.3
2.0
-.4
.1
2.9
2.8
2.7
- .8
-1.0
-1.1
.4
.4
.4
2.1
2.2
2.0
.1
.1
.1
2.7
2.7
2.6
-1.1
-1.1
-1.1
.4
.5
.4
Seasonal
factors
* .t
Other 1
1
i n c l u d e s revisions due to changes in accounting procedures in connection with the transfer of foreign funds, other minor
corrections, and rounding.
money stock and incorporated these estimates
into the series. 2
In the past benchmarking was done annually
in connection
with the review of seasonal ad*
justment factors. The latest revision, however,
incorporates data from the March 28, 1973, and
the October 17, 1973, "surprise" call reports.
This is the first time since September 1962 that
money stock data have been benchmarked to
the surprise call reports. In the interim, data
from the spring and fall call reports, although
used for regulatory purposes, have not been
available in sufficient detail to be used as quarterly benchmarks for the money stock. As indicated earlier, the latest nonmember bank revision is the largest in the history of the series.
The December 1972 benchmark for nonmember
banks raised the level of the series $1.0 billion
and the June 1973 benchmark raised the level
an additional $1.8 billion.
This revision also incorporates new measures
of M r t y p e deposits at internationally oriented
banking institutions. Figures for such deposits
are now available from reports filed monthly by
these institutions with the Federal Reserve Bank
of New York. The first of these reports was filed
providing data for November 1972, but the
2
Current b e n c h m a r k i n g p r o c e d u r e s are d e s c r i b e d later
in the d i s c u s s i o n of a l t e r n a t i v e p r o c e d u r e s i n v e s t i g a t e d
b y t h e staff.
reports were not finalized until about mid-1973.
Previously, estimates of the deposits of branches
of foreign banks had been derived from June
and December call report data. Mi-type data for
agencies of foreign banks had been derived from
monthly reports filed with the New York State
Banking Department, and deposit-type liabilities of foreign investment banking institutions
had been estimated from annual reports published by these firms.
The new monthly reports now being filed by
these institutions indicate that the amounts of
M r t y p e liabilities of these institutions previously included in money stock measures had
been overestimated. Hence it was necessary to
re-estimate such liabilities for the period from
January 1967 to October 1972. These new estimates lowered the level of Mx by from $100
million to $800 million over this period.
ALTERNATIVE BENCHMARKING
PROCEDURES
In computing current weekly and monthly data
for the money stock, estimates of demand deposits at nonmember banks are included in the
deposit component, and estimates of vault cash
at such institutions are excluded from currency
outside the Treasury and the Federal Reserve
in arriving at the currency component. Since
actual data for nonmember bank deposits and
REVISION OF THE MONEY STOCK
MEASURES
vault cash are not available on a current basis,
estimates for these nonmember components are
based initially on data for a subset of member
banks. 3 Subsequently, when actual data for
nonmember banks become available from call
reports, they are used as benchmarks to revise
the initial interim estimates.
The benchmarking procedure used to revise
estimates of universe (member and nonmember)
monetary aggregates made between call report
dates utilizes the aggregate data for nonmember
and "country" member barjks for the most
recent call report dates. To illustrate the basic
features of the procedure, consider: (1) the
situation—for example, in 1972—when only
two call reports are available, and (2) the specific monetary aggregate estimated, demand deposits adjusted (DDA). From each call report
the ratio R = ( A g g r e g a t e
nonmember
DDA)/(Aggregate country bank DDA) is determined. For example, in late 1972, the actual
values of R for June 30, 1972, and December
31, 1971, are available CRjune and RDEC.).
Moreover,
the estimated value of R for June
A
1972, tfjuNE, is also known. Apart from adjustments made to account for structure changes
(for example, conversion of member to nonmember banks) and other known factors (for
example, changes in accounting practices associated with revised Regulation J) the difference
between R 3UNE and Jejune is distributed over the
26-week period between December 31, 1971,
and June 30, 1972.
The use of the ratios, R, for benchmarking
may be questioned because each ratio is based
on a single day of data. That is, on a particular
call report day, either the nonmember or the
country bank (or both) aggregate DDA may not
be a "representative" value. For nonmember
banks the observed value may be aberrant relative to the (unobserved) sequence of values of
nonmember bank aggregate DDA for the days
and weeks close to the call report. The same
phenomenon may occur with the daily sequence
of values of country member bank aggregate
DDA. Thus, for a particular call report day, the
ratio R may not be representative and because
3
Currently this subset is based on the group of banks
that were classified as "country banks" prior to Nov.
9, 1972. In this article, "country banks" refers to this
subset of member banks.
85
of the absence of supporting nonmember bank
data, this aberration will not be detected.
A possible alternative to the single-day
benchmarking procedure is to fit a model to the
historical sequence of semiannual ratios, R. If
the model provides a satisfactory representation,
then it may be used to "smooth" the observed
sequence of values of R. Such a procedure is
particularly useful when, as here, aberrant observations are likely to occur. Thus, for the
desired call report day, the value of the ratio
predicted by the model may be used: (1) in lieu
of the actual (observed) ratio for the call report
day; or (2) to adjust the actual (observed) ratio
for the call report day.
A large number of models have been fitted,
their properties assessed, and their implications
studied. To illustrate some of the possibilities,
three of these models are described in the Technical Appendix. The first of these models simply
fits a trend line to the semiannual observed
ratios, June 1967 to June 1973. This model
expresses the ratio at the time t, Rt, as a quadratic function of time. While the over-all
agreement of the reported values with those
predicted by this model is good, the model also
displayed certain characteristics that indicated
that important factors affecting the ratios may
have been left out. Since it has been observed
that monetary policy affects the growth of
member and nonmember deposits in differing
degrees, the 90-day Treasury bill rate was introduced as a rough proxy measure of monetary
policy restraint or ease. In the second model,
Rt is represented as a quadratic function of time
and as a linear function of the average 90-day
Treasury bill rate for the preceding half-year.
In the third model, the change in the average
90-day Treasury bill rate is substituted for the
level of the bill rate.
Table 5 shows—for purposes of illustration—half-year growth rates for the standard
revised series, the trend line model, and the
models that include interest rate variables.
Growth rates are shown for the period 1971-73.
As the table shows, differences in half-year
growth rates are substantial—more than 1.0 per
cent in some cases. Although these models
exhibit different money stock patterns in the
short run, they show similar patterns in the long
run. As indicated, these models are primarily
86
FEDERAL RESERVE BULLETIN • FEBRUARY 1974
TABLE 5
COMPARISON OF MONEY STOCK GROWTH RATES
BY USING ALTERNATIVE BENCHMARKING
PROCEDURES
ATL
ATL
Alternative
plus change
plus 90-day
trend
in 90-day
Treasury
line (ATL)
Treasury
bill rate
series
bill rate
Half-year
Standard
revised
series
1971—HI
H2
9.9
2.6
11.0
1.8
10.4
2.1
10.4
2.8
1972—HI
H2
7.7
9.4
7.5
9.7
7.2
10.2
7.0
10.1
1973—HI
H2
7.7
3.7
6.6
4.1
7.3
4.9
6.7
4.1
for illustrative purposes and one must be cautious about drawing conclusions from this analysis. All produce somewhat different results,
and they indicate the area of uncertainty in
current money stock estimates in view of the
very limited availability of nonmember bank
data.
REVISION OF MEMBER BANK DEPOSITS
AND RESERVES
As was noted earlier, the revision of member
bank deposits and reserves reflects primarily
changes in seasonal adjustment factors based on
the addition of one year's data. Private demand
deposits of member banks were raised slightly
from mid-1970 to date, and net interbank deposits were lowered by a like amount due to
changes in accounting procedures associated
with the transfer of international funds. The
revision of private demand deposits is also reflected in slightly higher RPD's.
The offsetting revisions described above were
applied to two member bank deposit components of the adjusted bank credit proxy—private
demand deposits and net interbank deposits—
and therefore had no effect on the level of the
credit proxy series. All of the changes in growth
rates for the adjusted credit proxy series shown
in Table 1 are attributable to the revised seasonal
adjustment factors. As the table shows, the
revisions were minor, and they had little effect
on annual rates of change. The biggest change
was a one-half percentage point reduction in the
growth rate in the first quarter of 1972. Seasonal
adjustment factors for components of member
bank deposits subject to reserves were also
revised, but these changes were minor and had
little effect on the profile of the seasonally
adjusted series.
MEMBER BANK RESERVES
In the past, seasonally adjusted required reserves of member banks have been derived by
multiplying seasonally adjusted member bank
deposits by the average reserve ratio for all
member banks, and adding to this derived series
reserves held against nondeposit-type funds
such as commercial paper and Euro-dollar borrowings. Seasonally adjusted total reserves were
derived by adding seasonally adjusted excess
reserves to seasonally adjusted required reserves. Seasonally adjusted nonborrowed reserves, were obtained by subtracting seasonally
adjusted borrowings from seasonally adjusted
total reserves.
During the past year the implementation of
the revision of Regulation J, effective November
9, 1972, and the seasonal borrowing privilege,
effective April 19, 1973, created discontinuities
in current and historical data. In connection with
the Regulation J revision, penalties for reserve
deficiencies associated with the change in Regulation J for certain member banks were waived
for a transition period from November 1972 to
June 1974. In November 1972 these allowable
waivers amounted to about $450 million. Over
the course of time, allowable waivers have
declined to about $70 million at the present
time. "Seasonal" borrowing increased gradually from April 1973 to a peak weekly average
level of $185 million in late August. Since then
such borrowing has declined steadily. In addition, when historical data for excess reserves
and borrowings are reviewed with new statistical tests and techniques, any underlying seasonal pattern in either of these series is so
overpowered by cylical and random movements
in the series that measurement is virtually impossible.
In light of the distortions in the current series
as well as the new evidence questioning the
measurability of seasonal movements in the
historical series, we have not attempted to make
seasonal adjustments in the current series for
excess reserves and borrowings and have
dropped the seasonal adjustment of historical
data.
REVISION OF THE MONEY STOCK MEASURES
We continue to make seasonal adjustments
in required reserves as described above. Seasonally adjusted total reserves are then derived
by adding the unadjusted excess reserves to
seasonally adjusted required reserves, while
seasonally adjusted nonborrowed reserves are
derived by substracting unadjusted borrowings
from total reserves. RPD's are derived by applying appropriate reserve requirement ratios to
TECHNICAL APPENDIX
This Appendix discusses a possible alternative to
the current nonmember benchmarking procedure.
This alternative is to fit models to the historical
sequence of ratios, R [R=(Aggregate nonmember
DDA)/(Aggregate country bank 1 DDA)], as determined from the semiannual call reports. Then,
for any specified call report day, the value of the
ratio predicted by ,the model may be used in lieu
of the observed ratio, or to adjust the observed
ratio.
87
seasonally adjusted private demand and time
deposits and adding reserves against nondeposit
funds and excess reserves not seasonally adjusted.
The above changes had little effect on
longer-run growth rate comparisons—that is,
annual, half-year, and quarterly—but in some
instances the impact on month-to-month
changes was substantial.
CHART A-1
Observed Values of the Ratio Rt
•••
•
•
• •
TABLE A-1
•
OBSERVED VALUES OF THE RATIO Rt
December 1961 through October 1973
Call report date
December 1961
June 1962.
December 1962
June 1963
December 1963
June 1964
December 1964
June 1965
December 1965
June 1966
December 1966
June 1 9 6 7 /
December 1 9 6 7 . . .
70
•
R,
50.25
50.61
50.71
51.03
51.60
51.68
53.13
52.67
54.14
53.96
54.97
54.71
55.62
NOTE.-/?, = (Aggregate
country bank D D A ) .
Call report date
June 1968
December 1 9 6 8 . . . .
June 1969
December 1 9 6 9 . . . .
June 1970
December 1 9 7 0 . . . .
June 1971
December 1971
June 1972
December 1 9 7 2 . . .
March 1973
June 1973
October 1973
nonmember
60
Rt
56.14
57.30
59.69
61.36
61.78
63.07
63.65
65.85
68.08
69.53
72.30
73.57
73.61
DDA)/(Aggregate
Semiannual values of R are available through
June 1973, while values of R for March and
October. 1973 have also been obtained. To illustrate the historical sequence, the Values of R from
December 1961 through October 1973 " are presented in Table A-1 and plotted in Chart A-1.
In this investigation a large number of models
have been considered, three of which are presented
below. Better results were obtained by considering
the sequence of ratios starting with June 1967, and
^ e e footnote 3, p. 85.
• •
i
50
»
.
the illustrative models exhibit this choice. A further question relates to the values of R for the
March 1973 and October 1973 44 surprise" call
reports. Without previous experience with such
call reports, it is difficult to assess their comparability with the historical sequence of semiannual
(June and December) call reports. Thus, models
have been 4 'fit" both including and excluding the
values of R for March 1973 and October 1973.
The three illustrative models express the ratio
at time t, Rt, as" a function of t and of other
independent'variables. In each case, the data used
to estimate the parameters of the model consist
of the values of Rt for the period June 1967
through June 1973 (the value of Rt for March 1973
is omitted).
The first model expresses Rt as a quadratic
function of t. The fitted model is
Rn = 54.13 + 0.6518f + 0.0577*2
(1)
88
FEDERAL RESERVE BULLETIN • FEBRUARY 1974
A
and the " f i t " for the individual points is exceptionally good. The estimated standard deviation of
the residuals is 0.46.
The third model represents Rt as a quadratic
function of time and as a linear function of the
change, Q , in the average 90-day Treasury bill
rate. Here Ct = Xt — Xf.J where Xt is the average
Treasury bill rate for the preceding half-year. The
specification in the second model would be appropriate if it were believed that the differential impact
of policy on deposit flows were permanent. One
alternative hypothesis is that both types of banks
experience the same sort of deposit response over
time. However, member banks feel the impact of
policy sooner than nonmember banks. This notion
would suggest specifying the interest rate variable
as a change from the previous period. Thus when
rates rise and stay at a new level for an extended
time, the model would predict a rise and then a
fall back to the (quadratic) trend line in the next
period when the value of the change variable
became zero.
Such a model has been fit, and
The observed values (R t ), fitted values (Rt), and
deviations (R t — Rt) are given in Table A-2, and
plotted in Chart A-2. While the over-all fit of
Equation 1 is good (the coefficient of determination, R 2 , is 0.98), the deviations show runs of
pluses and minuses. This suggests that there are
additional factors affecting Rt that have not been
included in the model. Note that the estimated
standard deviation of the residuals, s, is 0.79.
The second model represents Rt as a quadratic
function of time and as a linear function of the
average 90-day Treasury bill rate for the preceding
half-year. One possible hypothesis is that policy
has a more pronounced impact on member than
on nonmember banks. Thus when policy becomes,
say, tighter, the ratio R may rise. (This is predicated on an assumption that customers of member
banks are more interest sensitive since member
banks tend to be located near financial centers.)
Consequently, the level of interest rates was included in the model as a proxy for the stance of
policy.
The fitted model is
Rt2 = 51.81 4- 0.3543* + 0.0795* 2
+ 0.5794X,
Rt3 = 53.92 + 0.7441* + 0.0503* 2
+ 0.3842C r
(2)
The fitted values and deviations are given in Table
A-2, and plotted in Chart A-2. Again, the over-all
fit of Equation 3 is good (R2 = 0.99). The value
of s is 0.70.
where Xt is the average Treasury bill rate. The
fitted values and deviations are given in Table A-2,
and plotted in Chart A-2. Note that both the
over-all fit of Equation 2 is good (R 2 = 0.995),
TABLE A-2
OBSERVED VALUES, FITTED VALUES, AND DEVIATIONS OF RATIOS1
June 1967 through December 1973
Call report date
June 1967
December 1967
June 1968
December 1968
June 1969
December 1969
June 1970
December 1970
June 1971
December 1971
June 1972
December 1972
March 1973
June 1973
October 1973
December 1973
...
...
...
...
...
...
...
A
A
A
Rt
Rn
Rt—Rn
Rn
54.71
55.62
56.14
57.30
59.69
61.36
61.78
63.07
63.65
65.85
68.08
69.53
72.30
73.57
73.61
54.84
55.67
56.61
57.66
58.83
60.12
61.52
63.04
64.67
66.42
68.28
70.26
71.29
72.36
73.45
74.56
-.13
-.05
-.47
-.36
.86
1.24
.26
.03
-1.02
-.57
-.20
-.73
-1.01
1.21
.16
54.61
55.45
56.64
57.62
59.12
60.95
62.17
63.11
63.77
65.97
67.40
70.13
71.71
73.40
75.39
76.92
R-Rn
.10
.17
-.50
-.32
.57
.41
-.39
-.04
-.12
-.12
.68
-.60
.59
.17
-1.78
A
A
Rts
Rt~Rt3
54.32
55.78
56.90
57.75
59.19
60.60
61.49
62.70
64.01
66.62
67.81
70.46
71.59
72.72
73.98
74.88
.39
-.16
-.76
-.45
.50
.76
.29
.37
-.36
-.77
.27
-.93
.71
.85
-.37
*The observed and fitted values of the ratio, R, at time t are denoted by Rt and Rt, respectively. RtJ
refers to the fitted values of R as determined from formula (J) in the text.
(3)
89
REVISION OF THE MONEY STOCK MEASURES
CHART A-2
Observed and Fitted Values of the Ratios
54.13 + 0.6518T + 0.0577T2
^
RF2 = 51.81 + 0.3543T • 0.0795T2 • 0.5794X,
^
^
RT3 « 53.92 + 0.7441T + 0.0503T2 + 0.3842C T
MONEY STOCK-SEASONALLY ADJUSTED
In billions of dollars (for footnotes see page 95)
Over-all measures
Year and
month
Mi
MI
(Currency
plus
demand
deposits 1 )
1967—January
February
March
April
May
June
July
August
September
October
November
December.. . .
175.3
177.1
178.4
177.8
179.6
181.1
182.5
183.5
184.6
185.6
186.2
186.9
Components and related items
Deposits at commercial banks
Nonbank
thrift
institutions 5
{Mi plus
time deposits at
coml. banks
other than
large CD's 2)
M3
(M2 plus
nonbank
thrift institutions 3 )
Currency
Other
Total
319.3
322.9
325.8
327.3
331.2
334.6
337.8
340.8
343.5
345.8
347.8
349.7
487.8
492.8
496.8
499.8
505.4
510.2
514.9
519.4
523.4
527.0
530.0
532.8
38.5
38.7
38.9
39.0
39.1
39.2
39.4
39.5
39.8
39.9
40.0
40.4
136.8
138.4
139.6
138.8
140.5
141.8
143.1
144.0
144.9
145.6
146.2
146.5
17.4
18.4
19.0
19.0
19.0
19.5
19.6
20.0
20.2
20.2
20.4
20.4
143.9
145.8
147.3
149.5
151.6
153.5
155.4
157.3
158.8
160.3
161.6
162.7
161.3
164.2
166.3
168.5
170.6
173.1
175.0
177.3
179.0
180.4
182.0
183.1
168.5
169.8
171.0
172.5
174.1
175.6
177.1
178.6
179.9
181.1
182.2
183.1
351.3
354. 1
356. 1
358.0
360.8
363. 1
365.2
368.8
371.8
375.1
379. 1
382.4
535.4
539.0
541.9
544.6
548.1
551.3
554.3
558.9
563.0
567.6
572.8
577.1
40.6
40.7
41.1
41.4
41.5
41.8
42.0
42.3
42.6
42.8
43.2
43.4
147. 1
148.0
148.4
149. 1
150.8
152.2
153.1
153.8
154.6
155.7
157. 1
158. 1
20.7
20.8
20.6
20. 1
20.0
19.9
21.0
21.7
22.1
22.8
23.0
23.3
163.7
165.3
166.7
167.6
168.5
169.1
170. 1
172.6
174.5
176.7
178.9
180.9
184.4
186.1
187.3
187.7
188.4
189.0
191.1
194.3
196.6
199.4
201.9
204.2
184.0
184.9
185.8
186.5
187.3
188.2
189.1
190.1
191.2
192.4
193.7
194.7
43.6
43.9
44. 1
44.2
44.4
44.7
44.9
45.2
45.3
45.6
45.9
46.
159.1
160. 1
160.6
161.3
161.7
162.2
162.7
161.9
162.2
162.5
162.8
21.5
20. 1
19.0
18.5
17.7
16.3
14.2
12.6
11.7
11.2
10.9
10.9
182.0
182.6
183.5
184.0
184.3
184.9
183.8
183.2
183. 1
183.1
183.6
183.5
203.4
202.8
202.5
202.5
202.1
201.2
198.0
195.8
194.9
194.3
194.4
194.4
195.7
196.7
197.5
197.9
198.3
199.0
199.3
199.6
200.4
200.8
201.3
201.7
182.7
182.4
183.5
185.4
186.9
188.2
191.2
194.4
196.7
199.2
201.2
203.9
193.1
193.0
195. 1
198.6
200.4
201.9
208.2
213.6
217.8
221.5
224.6
229.2
201.5
201.4
201.8
202.7
203.7
204.8
206.3
208.2
209.9
212.0
213.9
216.1
Demand
Time and savings
CD's 4
1968—January
February
March
April
May
June
July
August
September
October
November....
December. . . .
198.5
200.3
201.5
1969—January
February
March
April
May
June
July
August
September
October
November....
December. . . .
202.7
204.0
204.7
205.5
206.2
206.9
207.6
207. 1
207.5
208. 1
208.7
208.6
384.7
386.6
388.2
389.5
390.5
391.8
391.3
390.3
390.6
391.2
392.2
392.1
580.4
583.3
585.7
587.4
588.8
590.8
590.6
589.9
591.0
592.0
593.5
593.8
1970—January
February
March
April
May.
June
July
August
September....
October
November....
December. . . .
210.4
210.0
211.7
213.3
214.3
215.0
216.0
217.2
219.1
219.8
220.6
221.2
393. 1
392.4
395.2
398.7
401.2
403.3
407.1
411.7
415.7
419.0
421.8
425.2
594.6
593.7
597.
601.4
604.9
608.0
613.5
619.8
625.7
631.0
635.7
641.2
46.3
46.5
46.8
47.0
47.6
47.6
47.9
48. 1
48.2
48.5
48.7
49. 1
164.1
163.5
165.0
166.3
166.8
167.4
168.1
169.2
170.8
171.3
171.9
172.2
10.4
10.6
11.6
13.2
13.5
13.7
17.0
19.1
21.1
22.3
23.5
25.3
1971—January
February
March
April
May
June
July
August
September
October
November
December. . . .
221.8
224.2
226. 1
227.8
230.3
232.2
233.6
233.8
234. 1
234.9
234.8
235.2
429.4
436.5
443.3
447.8
452.7
456.7
459.4
461.2
462.9
466.5
469.5
473.0
648.9
659.7
670.0
678.5
686.8
693.8
699.5
704.0
708.5
715.0
720.7
726.9
49.4
49.8
50.0
50.5
50.8
51.0
51.5
51.6
51.9
52.2
52.3
52.6
172.4
174.5
176. 1
177.3
179.6
181.2
182. 1
182.2
182.2
182.7
182.5
182.6
26.5
27.4
28.3
28.2
28.8
29.6
30.4
30.5
31.3
32.1
32.1
33.0
207.6
212.3
217.2
220.0
222.4
224.5
225.9
227.4
228.8
231.6
234.7
237.9
234.1
239.6
245.5
248.2
251.2
254.1
256.3
257.9
260.1
263.8
266.7
270.9
219.4
223.2
226.8
230.7
234.1
237.0
240.1
242.8
245.6
248.5
251.3
253.9
1972—January
February
March
April
May
June
July
August
September....
October
November
December. . . .
235.5
238.2
240.5
242.0
242.8
244.2
246.6
247.9
249.5
251.3
252.6
255.7
477.3
482.9
487.6
490.6
494. 1
498.4
503.7
507.8
511.9
516.6
520.1
525.5
735.2
745.0
753.5
760.0
766.5
774.1
783.3
791.1
798.8
807.2
813.9
822.4
52.9
53.2
53.6
53.8
54.1
54.3
54.6
54.9
55.3
55.8
56.3
56.9
182.6
184.9
186.9
188.2
188.7
189.8
192.0
193.0
194.2
195.6
196.3
198.7
33.4
33.9
33.7
35.1
36.5
37.4
37.9
38.7
39.8
40.2
41.9
43.4
241.8
244.7
247. 1
248.5
251.3
254.3
257. 1
259.9
262.4
265.3
267.5
269.9
275.2
278.7
280.7
283.6
287.9
291.7
295.0
298.6
302.1
305.5
309.4
313.3
257.9
262.1
265.9
269.4
272.4
275.7
279.6
283.2
286.9
290.6
293.8
296.9
1973—January
February
March
April
May
June
July
August
September
October
November
December. . . .
256.7
257.9
258.1
259.4
262.4
265.5
266.4
266.2
265.4
266.5
268.8
270.4
529.6
532.3
534.6
538.3
543.6
549.4
552.0
554.9
556.6
561.6
566.7
570.7
830.4
836.7
841.7
847.7
855.0
863.5
867.9
870.9
873.2
879.8
886.9
893.2
57.1
57.5
58.0
58.6
58.9
59.4
59.5
59.8
60.2
60.4
60.9
61.6
199.6
200.4
200.1
200.8
203.4
206.2
207.0
206.4
205.2
206.1
207.9
208.8
44.7
49. 1
54.6
58.4
61.3
62.0
63.9
66.3
66.7
63.8
62.0
62.8
272.8
274.4
276.6
278.9
281.3
283.8
285.6
288.7
291.2
295.1
297.8
300.3
317.6
323.5
331.1
337.3
342.6
345.8
349.4
355.0
357.9
358.9
359.9
363.1
300.8
304.4
307.0
309.4
311.4
314.2
315.9
315.9
316.6
318.3
320.2
322.6
187.7
188.7
189.5
190.4
192.3
194.0
195.2
196. 1
197.3
1
1
162.5
91
MONEY STOCK—NOT SEASONALLY ADJUSTED
In billions of dollars (for footnotes see page 95)
Components and related items
Over-all measures
Year and
month
M2
MI
(Currency
plus
demand
deposits
M3
( M i plus
time de(M2 plus
posits at
nonbank
coml. banks
thrift inother than stitutions 3 )
large CD's 2)
Nonbank
thrift
institutions 5
Deposits at commercial banks
Currency
Time and savings
Demand
493.1
490.9
495.9
501.6
502.2
509.4
514.3
516.5
522. 1
527. 1
530.0
537.2
38.5
38.3
38.5
38.6
38.8
39.2
39.6
39.6
39.7
40.0
40.5
41.2
142.0
137.1
138.2
140.0
137.3
140.3
141.5
141.3
143.8
145.9
147.3
151.3
CD's 4
Other
Total
17.2
18.4
19.1
18.8
19.2
19.5
20.5
20.2
20. 1
20.8
20.6
143.6
145.6
147.8
150.1
152.1
153.9
155.7
157.4
158.9
160.5
160.6
161.5
160.8
164.1
166.9
168.9
170.9
173.1
175.3
177.9
179. 1
180.5
181.4
182. 1
169.0
169.8
171.4
172.9
174.0
176.1
177.5
178.2
179.6
180.8
181.6
183.1
1967—January. . ,
February.,
March. . . ,
April
May
June
July
August.. ..
September,
October. ..
November,
December.
180.5
175.5
176.7
178.7
176.1
179.5
181. 1
180.9
183.6
185.9
187.8
192.6
324.1
321.1
324.5
328.8
328.2
333.4
336.8
338.3
342.5
346.4
348.4
354.1
1968—January..
February.,
March. . .
April
M ay
June
July
August. . .
September
October. .,
November
December.
193.2
187.0
187.6
191.4
188.7
192.3
194.0
193.5
196.2
198.5
202.0
207.6
356.4
352.0
354.8
359.8
357.9
362.0
364.5
366.2
370.7
375.2
379.6
387.2
540.6
536.7
541.0
546.7
545.2
550.8
554.1
555.9
561.6
567.2
572.5
581.7
40.5
40.3
40.7
41.0
41.3
44.8
42.3
42.5
42.6
42.8
43.6
44.3
152.7
146.7
146.9
150.4
147.5
150.5
151.8
151.1
153.5
155.7
158.3
163.3
20.7
20.9
20.7
19.8
19.6
19.3
20.7
22.2
22.2
23.0
23.8
23.6
163.2
165.1
167.2
168.3
169.2
169.7
170.4
172.7
174.6
176.7
177.6
179.6
183.9
185.9
187.9
188.2
188.7
189.0
191. 1
194.8
196.7
199.7
201.4
203.2
184.2
184.7
186.2
186.9
187.3
188.8
189.6
189.7
190.9
192.0
192.9
194.6
1969—January..
February.
March
April
May
June
July
August
September
October. .,
November
December.
208.6
202.0
202.7
206.6
202.4
205.3
206.4
204.3
206.3
208.2
210.3
214.7
389.9
384.4
386.9
391.5
387.6
390.9
390.5
387.5
389.3
391.0
392.3
396.8
585.8
580.8
584.7
590.0
586. 1
590.7
590.5
586.9
489.3
591.4
592.6
598.2
43.5
43.4
43.7
43.8
44.2
44.7
45.2
45.4
45.3
45.6
46.4
46.9
165.1
159.0
162.8
158.2
160.6
161.2
159.0
161.0
162.5
163.9
167.7
21.6
20.2
19.0
18. 1
17.2
15.7
13.9
12.9
11.9
11.5
11.4
11.1
181.3
182.4
184.1
184.9
185.3
185.6
184. 1
183. 1
183.0
202.9
202.6
203.2
203.0
202.4
201.3
198.0
196.0
194.9
194.4
193.4
193.2
195.8
196.3
197.8
198.5
198.5
199.8
200.0
199.4
200.0
200.4
200.3
201.4
1970—January. .
February.,
March
April
May
June
July
August...
September
October. .
November
December.
216.4
207.8
209.6
214.4
210.6
213.4
214.8
214.6
217.9
219.6
222.1
227.6
398.6
390.1
394.0
401.0
398.6
402.6
406.3
408.9
414.4
418.5
421.6
429.9
600.0
591.0
596.2
604.2
602.6
608.2
613.5
616.9
623.9
629.9
634.5
645.5
46.1
45.9
46.3
46.6
47.3
47.7
48.3
48.3
48.2
48.5
49.2
50.0
170.3
161.9
163.3
167.8
163.3
165.7
166.6
166.3
169.6
171. 1
172.9
177.7
10.5
10.6
11.5
12.8
13.0
13. 1
16.5
19.5
21.5
23.2
24.6
25.8
192.7
193.0
195.9
199.3
201.1
202.3
208.0
213.8
218.1
1971—January. .
February.
March....
April
May
June
July
August...
September
October. .,
November,
December.
228.1
221.9
223.8
229.0
226.3
230.5
232.5
231.0
232.8
234.5
236.4
241.9
435.0
434.1
442.1
450.4
450.2
456.1
458.7
458.2
461.4
465.6
468.9
477.9
654.2
656.7
669.2
582.0
684.7
694.2
699.8
700.9
706.6
713.5
718.9
731.2
49.1
49.1
49.5
50. 1
50.5
51.0
51.9
51.9
51.9
52.2
52.7
53.5
179.0
172.7
174.3
178.9
175.8
179.4
180.6
179.1
180.9
182.3
183.6
188.4
26.9
27.3
1972—January. .
February.,
March
April
May
June
July
August...
September
October..
November
December.
241.9
235.6
238.1
243.4
238.6
242.4
245.7
244.8
248.1
250.9
254.2
263.0
482.8
480.4
486.9
494.1
492.2
497.9
502.7
504.5
509.9
515.0
518.7
530.6
740.4
742.0
753.2
764.5
765.1
774.7
783.4
787.6
796.4
805.0
811.2
826.6
52.5
52.6
53.1
53.5
53.9
54.4
55.1
55.1
55.3
55.7
56.7
57.9
1973—January. .
February.
March. . .
April
May
June
July
August...
September
October. .
November
December.
263.5
255.2
255.5
260.9
257.9
263.6
265.7
262.9
263.9
266.0
270.5
278.1
535.4
529.8
534.0
542.3
541.7
548.8
551.0
551.1
554.2
559.9
565.1
575.8
835.8
833.6
841.5
852.6
853.6
864.0
868.0
867.0
870.4
877.5
884.0
897.6
56.8
56.8
57.4
58.3
58.7
59.4
59.9
60.0
60.1
60.4
61.4
62.6
158.6
18.8
182.8
182.0
182. 1
182.3
184.4
186.6
188. 1
189.2
191.5
194.3
196.5
198.8
199.5
202.3
224.1
228.1
201.4
200.9
202.2
203.4
204.0
205.7
207.2
208.0
209.5
211.4
212.9
215.6
27. 1
27.5
28.3
29.5
31.2
32. 1
33.5
33.6
33.8
206.9
212.2
218.3
221.4
223.9
225.7
226.2
227.2
228.6
231.1
232.5
236.0
233.8
239.6
246.2
248.5
251.4
254.0
255.6
258.3
260.6
264.6
266.1
269.8
219.3
222.6
227.2
231.5
234.5
238.0
241.1
242.8
245.2
247.9
250.0
253.3
189.4
183.1
185.0
189.9
184.7
187.9
190.6
189.8
192.8
195.2
197.4
205.1
33.7
33.6
33.3
33.8
35.1
35.8
37.0
39.9
41.0
41.9
43.3
44.3
240.9
244.8
248.7
250.7
253.6
255.6
257.0
259.6
261.8
264.1
264.5
267.6
274.6
278.4
282.0
284.5
288.6
291.4
294.0
299.5
302.7
306.0
307.8
311.8
257.5
261.6
266.3
270.3
272.9
276.8
280.6
283.2
286.5
290.0
292.5
296.0
206.8
198.4
198.1
202.6
199.2
204.1
205.7
202.9
203.8
205.6
209.1
215.5
45.1
48.6
54.0
56.1
58.8
59.3
62.3
68.4
68.8
66.3
64.1
64.1
271.8
274.6
278.5
281.4
283.8
285.2
285.3
288.2
290.3
293.9
294.6
297.7
316.9
323.3
332.6
337.6
342.6
344.5
347.6
356.6
359.2
360.2
358.7
361.8
300.4
303.8
307.4
310.3
312.0
315.3
317.0
315.9
316.1
317.6
318.9
321.8
28.0
182.2
222.0
FEDERAL RESERVE BULLETIN • FEBRUARY 1974
92
MONEY STOCK—SEASONALLY ADJUSTED
In billions of dollars (for footnotes see page 95)
Components and related items
Over-all measures
Year
and
weekending
date
Mi
(Currency
plus
demand
deposits 1 )
Mi
(Mi plus
time dep.
at coml.
banks other
than large
time CD's 2)
Deposits at commercial banks
Currency
Time and savings
Demand
CD's4
Other
Total
1973
January
3
10
17
24
31
256.7
256.1
256.6
256.2
256.9
528.8
528.1
529.6
529.5
530.6
56.6
57.2
57.2
57.2
57.1
200.0
198.9
199.4
199.0
199.8
43.8
44.2
44.2
45.0
46.0
272.1
272.1
273.1
273.2
273.7
315.9
316.2
317.3
318.2
319.7
February
7
14
21
28
256.5
258.3
258.6
258.3
530.0
532.8
533.3
533.4
57.4
57.5
57.7
57.6
199.1
200.8
200.9
200.8
47.6
48.6
49.5
50.9
273.5
274.5
274.8
275. 1
321.1
323.1
324.2
325.9
March
7
14
21
28
258.4
257.8
258.5
258.4
534.2
533.7
535.2
535.7
57.8
57.9
58.1
58.1
200.6
199.8
200.4
200.3
52.0
54.2
55.0
56.0
275.8
275.9
276.8
277.4
327.8
330.1
331.8
333.4
April
4
11
18
25
258.2
258.6
259.5
259.6
535.7
536.3
538.9
539.0
58.2
58.6
58.7
58.8
200.0
200.0
200.8
200.8
57.4
58.4
58.1
58.7
277.5
277.8
279.5
279.4
334.8
336.1
337.6
338.1
May
2
9
16
23
30
260.3
261.4
262.3
262.9
263.0
540.1
541.5
543.5
544.7
545.2
58.6
59.0
58.9
59.0
59.0
201.7
202.4
203.4
203.9
203.9
59.4
60.7
61.3
61.7
62.0
279.8
280.1
281.1
281.8
282.3
339.2
340.8
342.4
343.5
344.2
June
6
13
20
27
264.1
265.3
266.3
266.3
547.2
548.8
550.2
550.5
59.2
59.4
59.4
59.4
204.9
205.9
206.9
207.0
61.3
62.0
61.8
62.4
283.1
283.5
283.9
284.1
344.4
345.5
345.7
346.5
July
4
11
18
25
266.1
266.5
266.8
266.3
550.9
551.4
552.4
552.2
59.3
59.5
59.5
59.5
206.8
207.1
207.4
206.8
62.9
63.2
63.6
64.4
284.8
284.9
285.5
285.9
347.7
348.1
349.1
350.3
August
1
8
15
22
29
266.1
266.0
266.3
266.7
266.3
553.0
553.7
554.4
555.8
555.7
59.4
59.8
59.8
59.9
59.9
206.6
206.2
206.6
206.8
206.4
64.9
65.6
66.4
66.5
66.6
286.9
287.7
288.1
289.1
289.4
351.8
353.3
354.5
355.6
356.0
September
5
12
19
26
265.1
265.4
265.4
265.4
555.7
556.1
556.4
557.1
59.9
60.1
60.1
60.1
205.2
205.3
205.3
205.3
66.5
66.8
67.4
66.7
290.6
290.7
291.0
291.7
357.1
357.4
358.4
358.4
October
3
10
17
24
31
266.0
265.8
267.8
265.1
266.2
558.8
559.9
562.7
560.9
562.2
60.2
60.7
60.4
60.5
60.2
205.8
205.1
207.5
204.6
206.1
65.2
64.0
63.5
63.7
63.5
292.8
294.0
294.8
295.8
296.0
358.0
358.0
358.3
359.5
359.5
November
7
14
21
28
268.1
269.1
269.4
269.0
565.7
567.2
566.8
567.2
60.7
60.9
61.1
61.0
207.4
208.2
208.3
208.0
62.5
61.9
61.9
61.9
297.6
298.1
297.4
298.2
360.1
360.0
359.3
360.1
December
5
12
19
26
269.1
270.7
270.9
271.0
568.2
569.7
571.8
571.6
61.0
61.5
61.6
62.0
208.1
209.2
209.4
208.9
61.7
63.0
62.2
63.0
299.1
298.9
300.9
300.7
360.8
361.9
363.1
363.7
93
REVISION OF THE MONEY STOCK MEASURES
MONEY STOCK—NOT SEASONALLY ADJUSTED
In billions of dollars (for footnotes see page 95)
Components and related items
Over-all measures
Year
and
weekending
date
MI
(Currency
plus
demand
deposits!)
M2
(Mi plus
time dep.
at coml.
banks other
than large
time CD's 2)
Deposits at commercial banks
Currency
U.S.
Govt.
deposits 6
Time and savings
Demand
CD's 4
Other
Total
1973
10
17
24
31
271.3
267.6
265.8
260.2
256.4
542.2
538.2
537.7
532.4
529.7
57.4
57.6
57.0
56.4
55.9
213.9
210.0
208.8
203.8
200.5
43.9
44.8
44.9
45.4
45.8
270.8
270.6
271.9
272.2
273.3
314.8
315.5
316.8
317.6
319.1
10.4
7.5
5.9
8.0
10.1
February
7
14
21
28
256.8
255.8
255.2
252.9
529.8
530.4
530.3
528.7
56.8
57.0
56.9
56.4
200.0
198.7
198.3
196.5
47.1
48.0
49.0
50.5
273.0
274.6
275.0
275.8
320.1
322.6
324.0
326.3
8.8
9. 1
10.9
10.6
March
7
14
21
28
256.3
255.4
256.2
253.7
533.2
533.3
534.9
533.5
57.4
57.6
57.5
57.1
198.9
197.8
198.7
196.6
52.1
53.9
54.2
55.2
276.9
277.9
278.7
279.8
329.0
331.8
333.0
335.0
9.7
8.5
11.6
11.6
April
4
11
18
25
258.5
261.5
263.9
259.4
538.8
541.8
546.1
541.1
57.7
58.7
58.5
58.1
200.8
202.9
205.5
201.2
55.7
56.6
55.6
56.2
280.4
280.2
282.2
281.7
336.0
336.8
337.8
337.9
10.3
6.3
6.1
9.4
May
2
9
16
23
30
258.9
257.7
259.1
256.6
257.0
541.3
540.3
542.7
540.9
542.0
57.8
59.1
58.8
58.6
58.6
201.1
198.6
200.3
198.0
198.4
56.5
57.9
58.5
59.4
59.7
282.4
282.5
283.6
284.4
285.0
338.9
340.4
342.1
343.8
344.7
11.7
10.9
8.5
7.8
6.9
June
6
13
20
27
262.4
264.2
265.0
261.7
547.7
549.7
550.1
546.3
59.4
59.7
59.5
59.0
203.0
204.4
205.5
202.7
59.3
59.7
58.5
59.5
285.3
285.5
285.1
284.6
344.6
345.2
343.6
344.1
5.1
3.4
8.5
9.7
July
4
11
18
25
266.4
268.0
267.0
263.4
552.1
552.7
552.1
548.6
59.8
60.5
60.1
59.6
206.6
207.5
206.9
203.8
59.8
60.7
61.9
63.8
285.7
284.7
285.1
285.2
345.5
345.4
347.0
349.0
10.1
6.6
5.1
6.3
August
1
8
15
22
29
283.3
263.7
264.4
263.4
260.2
549.7
551.1
552.1
552.0
548.8
59.4
60.5
60.3
60.0
59.4
203.9
203.3
204.2
203.4
200.7
64.9
66.6
68.2
69.1
69.9
286.4
287.3
287.7
288.6
288.7
351.3
353.9
355.9
357.7
358.6
6.2
5.0
3.9
4.0
3.5
September
5
12
19
26
263.3
265.6
265.5
260.9
553.6
555.4
555.3
551.4
60.3
60.5
60.1
59.6
203.1
205.1
205.5
201.3
69.1
69.0
69.2
68.8
290.2
289.9
289.8
290.6
359.3
358.9
359.0
359.4
3.2
3.7
5.1
6.9
October
3
10
17
24
31
264.7
265.6
267.7
264.2
266.2
556.7
558.6
561.4
558.6
560.5
59.8
61.0
60.5
60.4
59.8
204.8
204.5
207.2
203.8
206.4
67.5
66.8
66.3
66.3
65.5
292.0
293.0
293.6
294.4
294.3
359.5
359.7
359.9
360.7
359.8
8.0
6.5
5.2
5.8
5.6
November
7
14
21
28
270.1
271.2
270.9
269.6
564.8
566.1
564.8
564.1
61.1
61.5
61.7
61.3
209.0
209.8
209.3
208.2
64.5
63.9
64.2
64.1
294.7
294.9
293.9
294.5
359.2
358.8
358.1
358.6
5.7
3.7
3.9
4.1
December
5
12
19
26
273.2
276.5
278.3
278.7
569.0
572.6
576.6
576.9
61.8
62.6
62.7
63.3
211.4
213.9
215.7
215.4
63.5
64.4
63.4
64.4
295.8
296.1
298.3
298.3
359.3
360.5
361.7
362.7
4.4
3.2
5.6
8.6
AGGREGATE RESERVES AND MEMBER BANK DEPOSITS
In billions of dollars (for footnotes see page 95)
Deposits subject to reserve requirements9
Member bank reserves, S.A. 7
Total member
bank deposits
plus nondeposit
items 10
S.A.
Period
Total
Nonborrowed
Required
Available 8
Demand
Demand
Total
Time
and
savings
Total
Time
and
savings
Private
U.S.
Govt.
118.4
113.9
114.7
116.4
113.4
116.5
117.5
117. 1
119.4
121.1
122.3
125.9
Private
U.S.
Govt.
113.6
114.8
4.8
4.0
4.0
5.3
3.7
3.2
3.4
3.8
4.4
6.0
5.9
5.5
253.2
252.4
255.3
258.5
' 258.7
261.2
. 265.6
266.0
269.8
273.7.
274.5
278.5
131.1
134.0
136.3
137.9
139.4
141.3
143.1
145.2
146.0
146.9
147.6
148.1
129.1
130.3
5.3
5.5
5. 1
4.8
4.1
4.9
4.1
4.8
4.7
5.7
5.3
4.9
280.8
278.7
279.5
280.1
279.1
281.1
284.4
286.6
290.2
294.5
296.2
303.2
149.4
150.9
152.2
152.0
152.3
152.2
154.0
157. 1
158.6
161.0
162.3
163.8
S.A.
N.S.A.
3.7
4.5
4.3
4.3
5.8
3.4
5.1
3.7
4.4
5.7
4.6
4.5
253.6
256.3
259.2
261.3
262.7
265.6
268.5
272.0
274.5
277.9 .
279.8
279.9
256.8
.255.8
258.7
261.6
261.6
264.3
269.0
269.9
273.7
277.9
279.0
282.9
127.0
121.4
121.5
124.3
121.2
124.1
125.4
124.6
126.4
128. 1
130.2
,135.3
4.4
6.4
5.8
3.7
5.6
4.8
5.0
4.8
5. 1
5.4
3.6
4.1
281.3
283.5
284.5
284.6
286.4
289.0
291.4
295.8
298.0
301.7
304.2
306.6
285.1
283.2
284.2
284.9
284.7
287.3
291.1
293.5
' 297.4
301.7
303.4
310.2
311.0
306.5
306.6
306.9
305.1 ' 304.8
307.9
307.3
,307.2
309.0
309.4
311.1
,308.8
309.7
306.4 ,'304.4
306.1 . 305.5
304.9 1' 304.9
307.1
307.9
311.1
307.7
1967—January.. .
February..
March.. . .
April
May
June
July
August
September.
October...
November.
December.
23.59
23.80
23.47
23.44
23.43
23.63
23.94
24.18
24.37
24.67
24.78
24.81
23.18
23.44
23.27
23.29
23.35
23.53
23.83
24.10
24.28
24.54
24.64
24.58
23.19
23.43
23.06
23.04
23.07
23.28
23.53
23.82
24.03
24.33
24.42
24.44
21.55
21.83
21.54
21.28
21.50
21.73
21.98
22.13
22.19
22.27
22.40
22.50
249.9
252.9
255.8
258.2
259.7
252.5
265.1
268.2
270.6
273.7
275.3
275.5
131.5
134.1
135.9
137.6
139.2
141.3
142.8
144.7
146.0
146.9
148.1
148.8
1968—January.. .
February..
March. . . .
April.....
May
June
July
August
September.
October...
November.
December.
25.29
•25.68
25.71
25.64
25.72
25.96
25.14
26.58
26.49
26.75
26.96
27.28
25.05
25.31
25.05
24.96
24.98
25.26
25.61
26.01
25.99
26.31
26.42
26.54
24.91
25.29
25.37
25.31
25.36
25.63
25.79
26.25
26.13
26.51
26.66
26.86
23.06
23.24
23.33 23.37
23.55
23.64
23.81
24.06
24.16
24.14
24.36
24.86
276.9
279.0
279.8
279.8
280.7
282.8
284.7
288.9
290.7
294.5
297.1
299.6
149.8
151.1
151.8
151.8
152. 1
152.3
154.0
156.7
158.5
160.8
162.6
164.4
1969—January.. .
February..
March. . . .
April
May
June
July. . . .
August....
September.
October...
November.
December.
27.30
27.22
27.06
27.27
28.05
27.93
27.49
27.34
.27.28
27.39
27.82
28.01
26.56
26.39
26. 16
26.27
26.68
26.55
26.24
26.12
26.20
26.24
26.62
26.90
27.05
26.97
27.10
27.80
27.63
27.27
27. 10
27.00
27.22
27.59,
27.73
24.76
24.74
24.78
25.03
25.23
25.12
24.87
25.24
25. 12
25.12
<25.39
25.40
298.6
298.2
295.8
297.7
298.3
296.2
292.0
287.9
287.6
286.2
, 288.3
287.7
163.0
161.9
161.2
160.7
159.9
158,6
155.3
153.1
151.8
151.0
150.9
150.4
130.7
131.4
131.4
131.5
131.9
132.4
132.2
132.0
132.0,
131.8
132.1
131.9
4.9
5.0
3.2
5.5
6.5
5.3
4.4
2.8
3.8
3.4
5.3
5.3
303. 1
297.9
295.5
298.3
296.6
294.4
291.1
285.9
287.0
286.2
287.4
291.2
136.2
162.7
130.3
161.8
129.9
161.6'
132.8
160.9
• 160.1 * 128.6
130.9
158.6,
131.1
. 155.3
153. 1 / 1 2 9 . 2
130.8
151.8'
131.7
151.1
150.0 > 133*1
149.7 v 136.9
4.2
5.9
3.9
4.5
7.9
5.0
4.7
3.5
4.4
3.5
4.3
4.6
1970—January.. .
February..
March.. . .
April
May
June
July
August....
September.
October...
November.
December.
.27.97
27.69
27.64
28.17
27.94
28.02
28.33
28.70
29.07
28.68
28.75
29.19
27.01
26.61
26.74
27.33
26.98
27.14
26.97
27.86
28.47
28.21
28.34
28.86
27.80
27.48
27.48
28.02
27.79
27.83
28.16
28.52
28.82
28.47
28.52
28.95
25.40
25.40
25.44
25.73
25.85
26.01
26.09
26.55
27.13
27.16
26.93
27.10
286.9
285.1
288.0
293.1
292.5
294.4
300.3
306.1
309.9
313.3
316.7
321.3
149. 1
148.8
150.4
153.4
154.5
155.4
132.8
131.4
132.7
134.1
133.7
132.9
• 133.8
134.6
135.0
135.3
135.4
136. 1
5.0
4.9
4.9
5.6
4.4
6.1
5.4
5.6
5.3
5.3
6.2
6.5
291.2
285.1
,288.0
293.7
290.8
292.7
299.4
303.9
309.3
313.3
315.4
325.2
138.4
. 148.9
148.8, * 130.2
131.2
151.0
135.4
153.8
130.5
154.9
155.7 ' 131.5
132.8
160.9
132.0
166.0
133,7
169.9
135.1
173.2
174.9 - 136.0
178. 1
141.1
311.3
3.9
307.0
6.1
305.6 . 305.6
308.0
5.8 '-308.0
4.5 > 312 j 6 313.1
311.0
5.4
312.8
313.3
5.4 • 315.1
319.2
5.8
320. 1
322.7
5.9
342.8325.8
5.8
326.4
327.5
5.1; <327.5
328.2
4.6
329.4
336.8
6.0
332.9
1971—January.. .
February..
March.. . .
April
May
June
July
August
September.
October...
November.
December.
29.37
29.63
29.76
29.89
30.33
30.51
30.65
30.73
31.06
30.86
31.04
31.30
29.00
29.30
29.44
29.74
30.05
30.02
29.82
29.92
30.56
30.50
30.66
31.17
29.14
29.38
29.56
29.73
30.11
30.31
30.46
30.54
30.87
"30.70
30.80
31.12
27.25
•27.48
27.75
27.98
28.28
28.48
28.62
28.77
28.68
28.78
28.96
28.96
325.8
330.9
334.6339. 1
342.6
345.2
347.8
349.6
351.6
353.0
356.1
360.3
182.8
136.9
138.3
139.3
140.1
141.5
142.4
143.0
143.3
143.3
143.0
143.6
143.8
6.1
142.2
182.8
330.7
136.8
330.9
187: 1
137.8
192.3
334.6
141.5
339.8"
193.6
138.4
340.9 , 195.8
140.9
197.9
343.1
346.7 ' 198.9 . 1 4 2 . f
140.6
347. 1
200.8
141.9
* 350.9 ,202.7
142.7
205.9
^53.0
354.4
206.8 . 144.3
M49.2
364.6
209.7
1972—January.. .
February..
March....
April
May
June
July
August....
September.
October...
November.
December.
31.76
31.68
31.98
32.57
32.82
32.99
33.17
33.39
33.85
33.81
31.92
31.41
31.74
31.64
31.88
32.45
32.71
32.88
32.93
33.00
32.81
33.25
31.32
30.36
31.55
31.52
31.79
32.42
32.68
32.78
32.97
33.20
33.14
33.59
31.57
31.13
29.18
29.36
29.66
29.83
29.94
30.17
30.38
30.65
30.96
31.06
29.62
29.05
363.5
365.7
370.2
374.5
378.9
380.9
384.4
387.3
390.4
394.1
398.4
402.0
217.3
219.4
222.8
225.6
228.0
230.4
233.1
235.6
238.7
241.4
1973—January.. .
February..
March....
April
May
June
July
August
September.
October...
November.
December.
32.20
31.63
31.91
32.30
32.44
32.46
33.58
33.91
34.17
34.94
34.86
'35.10
31.04
30.04
30.08
30.59
30.60
30.61
31.62
31.74
32.32
33.47
33.46
33.81
31.94
•31.43
31.70
32.08
32.29
32.22*
33.29
.33.73
33.95
34.72
24.62
34.80
29.44
29.37
29.62
29.87
30.11
30.55
31.36
32.04..
32.39
32.84
32.71
32.91
404.7
409.0
416.3
421.4
425.1
428.9
431.1
436.7
438.6
439.7
440.4
442.2
244.0
248.9
255.4
260.9
265.1'
267.3
270.1
275.0
277.5 s
277.3
277;1
279 TO
26.82
161. 1
165.9
169.6
172.7
175.2
178.8
187.1
191.8
193.8
195.9
198. 1
199.6
200.5
202.1
205.0
207.1
210.4
213.6
216.2'
116.0
115.3
116.8
118.0
118.9
119.7
120.2
120.8
121.3
121.2
121.8
122.4
122.9
123.2
124.5
125.6
126.7
127.4
127.6
128.1
5.6
3.5
5.3
5.2
4.7
5. 1
5.8'
6.2
5.0
5.4
6.1
1
152.9
154.5
213.4
368.6
6.4
215.9
4.2
365.7
218.1,
5.7 ' 370.2
375.3
219.8
7.5
223.1
377.0
7.86.0
225.2
378.6
383.2
227.1
5.5
384.5
231.3
5.0
389.6
4.9
233.8
394; 1 • 236.2
5.8
6.8
396.4'
237.6
6.1 * 406.8
240.7
149.2'
143.7
' 145.5
149.0
. 145.1
147.8
150. 1
149.0
150.9
152.5
" 153.7
160.1
154.0
154.0
153.3
153.4
154.8
156.3"
157.1.
157.0
156:2
156.4
157.5
158.3
410.4
243:8
409.0
248.5
416.3 ' 256.2
7.1 - . 422.3 260.5.
423.0
264.5
5.2
•426.3
265.9
5.3
268.5
3 . 9 ' 429.9
433.7' 276.6>
4.8
437.7 . 279.0
5.0
278.8
439.7
6.0
276.6
438.2
5.8
278.5
4.9
447.5
160*. 0
152.4
151 i 6154.9'
151.4
154.8
156.
154.0
154.7
156.1
158.3
164.0
143 .'5
145.2
147.2
•147.6
148.4
149.3
150.9
'151.8
152.4
1528
6.7
6/1
7.6
5.6
7.0
4:5
4.7,
6.7
4.4 ,
5.7
5.8
6.3
4.3
3.2 '
5.7
340.8
335.9
339.5
339.5
341.6
341.6
344.9
344.2
345.0
346.7
347.6
349.6
351.0
352.1
351.1
353.5
355.6 . 354.9
357.8
357.8
359.7
361:5
368.7
364.3
6.0
372.6
367.5
369.3
6.1
369.3
6.6 , 373.9. . 373.9
378.8
6.5; « 378.1
380.8
8.8
>382.7
382.4
5.7
384.7
387. 1
6.1
388.3,
4.3
391.4
388.7
393.8
4.9 . 394.5
.5.4
398.4
398.4
. >5. 1 402.7
410.7
411.2
6.1
406.4
409.7
6.6
8.1
413.5'
421.2
8.5
6.8
426.6
7.0
430.5
434.5
5.6
437.6
5.1
3.1
443.8
4.1
445.9*
4.8* . 446.5,
3.2
447.5
449.6
5.0
415.4
413.5
421.2
427.4
428.4
432.0
436.4
440.8
445.0
446.5
445.3
454.9
REVISION OF THE MONEY STOCK MEASURES
95
NOTES TO TABLES
6
1
Includes (1) demand deposits at all commercial banks other
than those due to domestic commercial banks and the U . S .
Govt., less cash items in the process of collection and Federal
Reserve float; (2) foreign demand balances at Federal Reserve
Banks; (3) currency outside Treasury, Federal Reserve Banks,
and vaults of all commercial banks.
2
Includes—in addition to currency and demand deposits—
savings deposits, time deposits open account, and time certificates of deposit (CD's) other than negotiable time C D ' s issued
in denominations of $ 1 0 0 , 0 0 0 or more by large weekly reporting commercial banks. Excludes time deposits of the U . S .
Govt, and of domestic commercial banks.
3
Includes M 2 plus the average of the beginning- and end-ofmonth deposits of mutual savings banks and savings capital
at savings and loan associations.
4
Negotiable time C D ' s issued in denominations of $ 1 0 0 , 0 0 0
or more by large weekly reporting banks.
5
Average of beginning- and end-of-month deposits at mutual
savings banks and savings capital at savings and loan associations.
A t all commercial banks.
Averages of daily figures. Member bank reserve series
reflects actual reserve requirement percentages with no adjustment to eliminate the effect of changes in Regulations D and
M.
8
Reserves available to support private nonbank deposits are
defined as (1) required reserves for (a) private demand deposits,
(b) total time and savings deposits, and (c) nondeposit sources
subject to reserve requirements, and (2) excess reserves. This
series excludes required reserves for net interbank and U . S .
Govt, demand deposits.
9
Averages of daily figures. Deposits subject to reserve requirements include 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.
10
Total member bank deposits subject to reserve requirements, plus Euro-dollar borrowings, bank-related commercial
paper, and certain other nondeposit items. This series for
deposits is referred to as "the adjusted bank credit p r o x y . "
7
NOTES relating to changes in series over the 1 9 6 7 - 7 3 period for the tables on pp. 9 0 - 9 4 are as follows:
1. Effective Mar. 2, 1967, the reserve requirement of all
member banks against savings deposits and the first $5 million
of time deposits was reduced from 4 per cent to 3l/z per cent.
This action reduced required reserves and RPD's approximately
$425 million.
2. Effective Mar. 16, 1967, the reserve requirement of all
member banks against savings deposits and the first $5 million
of time deposits was reduced from V/2 per cent to 3 per cent.
This action reduced required reserves and RPD's approximately
$425 million.
3. Effective Jan. 11, 1968, the reserve requirement of reserve
city banks against net demand deposits in excess of $5 million
was increased from 16'/2 per cent to 17 per cent. This action
increased required reserves approximately $360 million and
R P D ' s $310 million.
4. Effective Jan. 18, 1968, the reserve requirement of
country banks against net demand deposits in excess of $5
million was increased from 12 per cent to 121^ per cent. This
action increased required reserves approximately $190 million
and RPD's $170 million.
5. Effective Apr. 17, 1969, the reserve requirement of all
member banks against net demand deposits was increased V2
percentage point. This action increased required reserves approximately $660 million and RPD's $590 million.
6. Effective Oct. 16, 1969, a 10 per cent marginal reserve
requirement was established on certain foreign borrowings,
primarily Euro-dollars, by member banks and on the sale of
assets to their foreign branches. This action increased required
reserves and RPD's approximately $400 million.
7. Effective Oct. 1, 1970, the reserve requirement of all
member banks against time deposits (other than savings deposits) in excess of $5 million was reduced from 6 per cent
to 5 per cent. At the same time, a 5 per cent reserve requirement
was imposed against funds obtained by member banks through
the issuance of commercial paper by their affiliates. This action
reduced required reserves and RPD's approximately $500 million (net).
8. Effective Jin. 7, 1971, the reserve percentage required
to be maintained against certain foreign borrowings, primarily
Euro-dollars, by member banks and the sale of assets to their
foreign branches was raised from 10 per cent to 20 per cent.
This action had little effect on required reserves and RPD's.
9. Effective Nov. 9, 1972, Regulations D and J were revised
to (1) adopt a system of reserve requirements against demand
deposits of all member banks based on the amount of such
deposits held by a member bank, and (2) to require banks—
member and nonmember—to pay cash items presented by a
Federal Reserve Bank on the day of presentation in funds
available to the Reserve Bank on that day. These changes
reduced required reserves approximately $2.5 billion, effective
Nov. 9; and $ 1 . 0 billion, effective Nov. 16, and increased
required reserves $300 million, effective Nov. 23. On the same
dates RPD's were reduced $ 2 . 3 billion and $785 million and
increased $235 million, respectively.
10. Effective June 21, 1973, the Board amended its Regulation D to establish a marginal reserve requirement of 8 per
cent against certain time deposits and to subject to the 8 per
cent reserve requirement certain deposits exempt from the^ate
limitations of the Board's Regulation Q. In addition, reserves
against certain foreign branch deposits were reduced from 10
per cent to 8 per cent. These changes had little effect on
required reserves or RPD's.
11. Effective July 12, 1973, reserve requirements were
imposed against finance bills. This action increased required
reserves and RPD's approximately $ 9 0 million.
12. Effective July 19, 1973, the reserve requirement against
all net demand deposits, except the first $2 million, was
increased V2 percentage point. This action increased required
reserves approximately $760 million and R P D ' s approximately
$670 million.
13. Effective Oct. 4, 1973, the marginal reserve requirement
against certain time deposits was increased from 8 per cent
to 11 per cent. This action increased required reserves and
RPD's approximately $465 million.
14. Effective Dec. 27, 1973, the marginal reserve requirement against certain time deposits was reduced from 1 1 per
cent to 8 per cent. This action reduced required reserves and
RPD's approximately $360 million.
Statements to Congress
Statement on foreign banking in the United
States by George W. Mitchell, Vice Chairman,
Board of Governors of the Federal Reserve
System, before the Subcommittee on International Finance of the Committee on Banking,
Housing and Urban Affairs, U.S. Senate, January 23, 1974.
INTRODUCTION
Mr. Chairman, I appreciate your invitation to
appear before the subcommittee in its hearings
on direct foreign investment in the United
States. Too often, direct foreign investment is
thought of as involving only industrial and
commercial institutions. The subcommittee's
recognition that such investment also involves
banks and other financial institutions is certainly appropriate.
The amount of direct investment by foreign
banks in U.S. banking facilities is small—less
than $1 billion. But in the case of banking, the
size of that direct capital investment does not
measure the importance of the activity. Banks
traditionally operate on a smaller capital base
than is typical in industry and commerce. The
principal business of banks is to assemble funds
from a variety of sources—deposits or borrowings in domestic or foreign money markets—
and to relend those funds to others. It is the
effects of these banking transactions—the
money flows and the business transactions they
accommodate—that should be used to assess
the implications of foreign investment in U.S.
banking offices. Judged by these activities, and
by their total assets of close to $35 billion, the
U.S. banking offices of foreign banks are still
not large compared to insured U.S. banks,
which have $762 billion in total assets and $59
billion in equity capital and reserves. But their
activities are growing and becoming increasingly important in certain U.S. financial markets. For example, commercial and industrial
loans at these institutions have now grown to
8 per cent of all such loans in the United States.
SOURCES AND USES OF FUNDS
FOREIGN-OWNED BANKS
BY
Banks traditionally rely on deposits of their
regular customers for the bulk of their resources. A second source of funds, and one
that is growing in importance, is the domestic
money market, which includes the market for
interbank loans and deposits. A third source of
funds is the international money market (including borrowing from affiliates abroad).
Euro-dollar borrowings and deposits are the
pre-eminent instruments in this market. Participants in both the domestic and international
money markets are sophisticated, and funds invested in these markets are highly interest sensitive and predominantly very short in maturity.
Banks engaged in international banking that
operate offices in a foreign country generally
have difficulty in establishing a large stable deposit base in the currency of the host country.
This is true both for U.S. banks operating
abroad and for foreign banks operating in the
United States. Therefore, when operating outside their home country, banks are inclined to
rely in some considerable measure on funds
supplied by their home offices. Frequently,
however, they encounter difficulties in bringing
funds from outside the host country. Many
countries impose limits on such capital inflows
through banks, both for balance of payments
reasons and because capital inflows can have
an unwanted effect on domestic credit flows.
Accordingly, banks in foreign countries seek to
supplement their resources from their home
countries by drawing on various parts of the
money market in the host country. Usually the
most important source of money market funds
for foreign banks is borrowing from the host
country's domestic banks. Other money market
sources of funds in the foreign country tend to
be very short term and in most countries quite
limited in amount.
The operations of foreign-owned banks in
97
98
the United States reflect these general characteristics of international banking. These banks
have to look to foreign sources for about 40
per cent of their resources of about $35 billion.
Foreign funds, of about $14 billion, are drawn
primarily from the home offices or other
affiliates of the parents. Funds obtained in the
United States consist mainly of deposits of nonbank customers, about $5 billion, and borrowings from nonaffiliated U.S. banks, almost $7
billion.
U.S. offices of foreign-owned banks lend and
otherwise invest about $5 billion more in the
United States than they obtain here—that is,
they are channeling that amount of foreign
funds into the U.S. economy. This figure
changes, of course, with shifts in relative
money market conditions here and abroad.
These foreign-owned offices use a large share
of their resources to make commercial and industrial loans in the United States. Such loans
account for about 40 per cent of their assets—a
substantially higher proportion than is the case
for domestically owned banks that are members
of the Federal Reserve. The foreign banks'
commercial and industrial loans are in good
part related to international business and reflect
the international orientation of these banks.
One-fourth of these loans are to foreign customers.
TYPES OF OPERATIONS OF FOREIGN
BANKING OFFICES
The U.S. activities of foreign-owned banks
depend in some degree on how and where they
are established in the United States. There are
also differences reflecting historical or ethnic
characteristics of the countries of domicile of
the parent banks.
Apart from the representative office, which
is essentially nothing more than a sales or service office and does not perform any banking
functions, there are three corporate alternatives
used by foreign banks conducting a banking
business in this country: subsidiary corporations, branches, and agencies. Subsidiaries may
be chartered under laws of some States; three
States in fact have issued such charters. They
can also be chartered under Federal law, but
the requirement that the directors must be U.S.
FEDERAL RESERVE BULLETIN • FEBRUARY 1974
nationals has limited the use of this alternative.
Branches of foreign banks are presently authorized to conduct a full-scale lending and deposit
business in five States. Agencies of foreign
banks are authorized in New York and California. Agencies and branches are similar in some
respects, but agencies do a wholesale banking
business, whereas branches engage in wholesale banking, retail banking, or both.
Agencies account for more than half the
assets of all foreign banking offices. Because
they cannot sell certificates of deposit, they rely
heavily on interbank (Federal funds) borrowing
and borrowings from directly related institutions abroad (Euro-dollars). These sources account for a total of about three-fourths of their
funds. They typically employ their funds in
money market loans and commercial and industrial loans, often related to international transactions.
Branches and subsidiary banks, on the other
hand, rely to a substantial degree on deposits:
for branches, deposits account for about onehalf of total liabilities, whereas in the case of
subsidiary banks, the share is about threefourths. Some of these deposits are obtained
from local business and from consumers, while
others are obtained by offering large-denomination certificates of deposit to money market
investors. Branches, like agencies, also obtain
funds from directly related institutions abroad
as well as from the interbank market. Subsidiary banks (particularly in California) and some
branches endeavor to conduct a retail banking
business similar to that of most U.S. banks;
other branches concentrate primarily on wholesale international banking.
There are 60 foreign banks with offices in the
United States. Most of these institutions are
very large banks; in the aggregate their worldwide deposits are over $450 billion. At recent
count, they had 115 offices in the United
States—68 in New York, 39 in California, and
8 in four other States. Relative to worldwide
deposits, Canadian and Japanese banks have
larger interests in U.S. offices than do banks
based in Great Britain, Western Europe, or
elsewhere. In total U.S. assets, Japanese banks
ranked first, followed by those in Western
Europe, Canada, and Great Britain.
99
STATEMENTS TO CONGRESS
The modes of operations of foreign-owned
banking offices in this country tend to vary according to the country of the parent bank.
1. Canada. Canadian banks operate both
agencies and subsidiary banks in California and
agencies in New York.
The Canadian agencies in New York draw
the funds they use to operate in the United
States largely from the head offices and foreign
branches of the Canadian-chartered banks although those funds may originally have been
acquired, in part, from the United States or
other non-Canadian sources.
In recent years, the Canadian agencies have
been using those funds increasingly in commercial loans and in arbitrage between the Eurodollar market and the domestic market for interbank loans. Their commercial loans are
largely to U.S. corporations to meet domestic
needs. Some of that loan business has been related to the growth of direct investment by
U.S. corporations in Canada. Although maintaining a longstanding role as specialists in
lending to U.S. securities dealers and brokers,
these agencies have recently been reducing
their emphasis on this type of activity.
2. Japan. Japanese banks, like the Canadian
banks, operate agencies and subsidiary banks
in California and agencies in New York.
The Japanese agencies have the same powers
as Canadian agencies, but in their lending
operations they have emphasized the financing
of U.S.-Japanese trade, and in some cases also
the financing of Latin American exports to
Japan.
The agencies obtain funds from their parent
banks' head offices in Japan and raise funds in
the U.S. market by selling their own acceptances and by borrowing from U.S. banks.
Some of the Japanese subsidiary banks in
California have been successful in developing
a retail banking business.
3. Europe. European banks have placed
greater emphasis historically on branch operations in New York City. Additionally, however, they have established some agencies and
subsidiaries in New York, including a few investment companies chartered under New York
State laws. European banks also have banking
subsidiaries in California, the largest being
First Western, which has just been acquired by
Lloyd's Bank.
Many European banks, in important but
varying degrees, use their New York branches
to channel payments that the parent banks generate through their worldwide financial operations. These foreign banks find it essential to
have offices in this country to handle efficiently
transactions that have grown to enormous dollar totals. Many of the European branches serve
their head offices not only for payments business in the United States but also for administering their payments activities worldwide.
Handling payments gives rise to other banking business. The huge volume of foreign exchange orders and the sharp swings in transaction balances that occur from day to day sometimes place substantial demands on these U.S.
offices for funds and on other days produce
large excess balances. To dispose of such
excess funds the U.S. offices of European
banks lend large amounts of money to U.S.
corporations and also furnish substantial funds
to their foreign head offices.
Most of the European banks that have offices
in this country are engaged here principally in
wholesale banking activities. However, some
British banks have been expanding into the retail banking market as well.
GROWTH OF FOREIGN BANKS'
ACTIVITIES
Growth of foreign banks' activities in the
United States since the mid-1960's has been
one aspect of the broad internationalization of
banking that has occurred during this period.
This is the counterpart in the banking area of
the flourishing growth of multinational business.
Measured from 1965, foreign banks' assets
in the United States have grown about sixfold.
It should be noted, however, that this striking
rate of increase has been roughly matched by
the sixfold expansion in the foreign assets of
a group of seven large U.S. banks that were
already actively engaged in international banking in the mid-1960's. And much the same reasons that account for the expansion of U.S.
banks abroad also account for the growth of
foreign banks in this country.
100
Foreign banks have followed their own
foreign customers who have come to the United
States to set up industrial and commercial
operations. Once here, they have assisted other
industrial concerns in investing in this country.
They have helped to finance the growing volume of trade and have provided information on
economic activity and trade opportunities both
in the United States and abroad.
Foreign banks have found that banking
offices in the United States afforded valuable
access to the U.S. money market, and banking
offices in New York have strengthened the ability of foreign banks to handle the daily settlements that arise from their own or their customers' transactions in dollars.
In sum, for any foreign bank, as for any
U.S. bank, an office in each major international
money market is viewed as a key ingredient in
an effective worldwide banking operation.
In addition to these broad financial considerations that have led to the expansion of international banking generally, the growth of
foreign banks in the United States has reflected
changes in legislation in several states. The decision of New York State about a dozen years
ago to permit foreign banks to establish
branches was one of the principal legislative
changes improving the opportunities for foreign
expansion in the United States. A few other
States have also liberalized laws regarding
foreign banks. Notably, several months ago Illinois amended its laws to permit a foreign
bank to establish a single branch within the
" L o o p " area of Chicago. Several foreign
banks are in the process of opening such
branches in Illinois.
NONBANKING ACTIVITIES
To this point, I have spoken about banking activities of foreign-owned institutions in this
country. These institutions also conduct some
other activities on the periphery of banking, but
it should be noted that these are not very large.
Certainly their nonbanking activities are insignificant compared with domestic bank holding
companies.
Several foreign banks have affiliates in the
United States engaged in the securities business—in some cases both as underwriters for
new issues and as brokers and dealers for do
FEDERAL RESERVE BULLETIN • FEBRUARY 1974
mestic or foreign issues. Several of these
affiliates have become members of regional
stock exchanges in this country.
The Canadian banks do some financial business in this country through trust subsidiaries,
in addition to their U.S. banking offices. These
trust units act mainly as custodian, paying
agent, and transfer agent for Canadian entities
that have issued securities in the United States.
British banks have few nonbanking direct investments here. One of them is continuing its
interests in real estate development projects,
and its investment banking interest in some
small U.S. companies, which it held before
passage of the Bank Holding Company Act
Amendments of 1970.
Japanese banks have small investments in
some Japanese companies that do business in
this country—notably the trading companies. In
Japan banks traditionally have taken equity interests of less than 10 per cent in nonfinancial
firms that are their important customers.
Several foreign banks (Italian, French, and
Greek banks) operating in the United States are
owned directly or indirectly by their respective
governments, which also own nonfinancial
companies that are doing business in the United
States.
CONCLUDING REMARKS
Mr. Chairman, my assignment today has been
to provide a factual presentation on the activities of foreign banks in the United States, and
I welcome the opportunity to assist in this way
in your inquiry. I should like to conclude my
remarks with a general comment or two.
In my view, the growing and substantial investment and operational activity of foreign
banking interests in this country has stimulated
competition in banking and financial markets
here. In addition, the access to markets in the
United States that foreign banks have enjoyed
has facilitated the activities of U.S. banks in
markets abroad.
At the same time, it should be noted that
these institutional developments have abetted
the greater movement of funds internationally
and in so doing have posed some problems in
implementing monetary policy in the United
States. In recent years the Board has taken several actions to modify the effect of international
STATEMENTS TO CONGRESS
101
monetary flows on domestic monetary and
credit conditions. However, foreign-owned
banking institutions, which are an important
channel for these flows, are not subject directly
to Federal Reserve legislation. Last June, therefore, when the Board as part of its anti-inflationary program introduced a marginal reserve
requirement for large certificates of deposit issued by member banks and asked nonmember
banks similarly to hold reserves, it requested
foreign-owned banking institutions to maintain
reserve deposits against increases in large CD's
and in net Euro-dollar borrowings above baseperiod levels. I am happy to say that foreign
banks acceded to this request.
Recognizing the growing importance of
foreign banking in the United States, the Board
established a Federal Reserve System Steering
Committee a year ago to review the status of
international banking regulations and to consider the public policy issues. The committee,
of which I am chairman, has made good
progress and hopes soon to submit recommendations to the Board.
•
Statement by Arthur F. Burns,
Chairman,
Board of Governors of the Federal Reserve
System, before the Subcommittee on Production
and Stabilization of the Committee on Banking,
Housing and Urban Affairs, U.S. Senate, February 6, 1974.
labor and capital were employed to the fullest.
The inflationary problem in 1970 and 1971
stemmed mainly from the pressure of rising
costs on prices. In general, wage rates were
increasing much faster than gains in productivity. Business firms found it difficult to absorb
the resulting rise in unit labor costs since their
profit margins were already seriously depressed.
Prices therefore rose, even though excess demand for goods and services had long since been
eliminated.
To some extent the inflation we then experienced was the aftermath of previous excess
demand. But as time passed, it became increasingly clear that the laws of economics were not
working as they once had. In a modern economy—and in other countries as well as our
own—wage rates have become fairly insensitive
to changes in the balance between labor demand
and supply, and increased costs of doing business are frequently passed through to buyers
even in slack markets.
The new economic policy inaugurated in August 1971 sought to break a chain of wage-price
increases that bore little relation to existing
economic conditions. It also included measures
to stimulate productivity gains, to increase
business capital investment, to halt the deterioration in our balance of payments, and to encourage other nations to work with us in designing a more flexible system of foreign exchange rates.
The early response to the new policy was
heartening. Consumers and businesses began to
spend more freely, and the pace of economic
I am pleased to meet with this committee to
discuss the desirability of extending the Economic Stabilization Act.
Your immediate concern is whether to extend
the existing authority under the Act, to modify
that authority, or to abolish it altogether. The
major question at issue is whether we would
be better served as a Nation by continuing to
operate with mandatory wage and price controls
or whether the time has come to return to our
historic tradition of reliance on free markets.
A considered judgment on this question requires careful analysis of our recent experience
with governmental intervention in wages and
prices. Let me begin, therefore, by assessing
the benefits and costs of the control program
over the past 2xh years.
The control program was instituted at a time
when economic conditions were very different
from what they are today. During the summer
of 1971 we had a sluggish economy, unemployment averaged 6 per cent of the labor force,
and a significant part of our industrial plant was
idle. Nevertheless, unlike earlier periods of
economic slack, the general price level continued to advance briskly. In fact the average rate
of price increase was about as high in the first
half of 1971 as it had been in 1969, when both
102
expansion quickened. Meanwhile, governmental efforts to hold down wage and price
increases met with some success. Broad measures of price performance registered significant
improvement in the early stages of the control
program, and there was little evidence that the
controls were distorting business decisions or
giving rise to serious inequities.
In the closing months of 1971 and most of
1972 the control program worked reasonably
well because the volume of unemployed labor
and capital—while diminishing—was still on
the high side. Increases of wage rates during
1972 were somewhat smaller than in 1971. And
although consumer outlays strengthened materially in 1972, the consumer price index rose only
3V4 per cent, or a full percentage point below
the preceding year.
Over the course of 1972, however, the economic climate began to change in ways that
threatened to undercut the control program. The
growth of over-all production spurted to a rate
well above its long-run potential, and demands
for labor, materials, and equipment strengthened steadily. Business firms began to experience some difficulty in adjusting production
schedules to the rapid growth in consumer demand, and delivery delays became more frequent—even though capacity constraints were
not yet limiting aggregate output. Toward the
end of the year the pace of economic expansion
also accelerated in Western Europe and Japan,
and prices of industrial raw materials began to
rise faster both here and abroad. As these tensions accumulated during 1972, it became evident that the controls were causing some distortion in the allocation of resources, that inequities
were becoming more numerous, and that pressures for modification of the program were
mounting.
Let me now turn to 1973, when fresh inflationary forces, reinforcing those already plaguing the economy, culminated in the sharpest
upsurge of the price level since the Korean war.
In view of the strong cyclical expansion in
production and employment that had occurred
in late 1972 and early 1973, it would have been
difficult to avoid additional upward pressure on
prices under the best of circumstances. In retrospect it might be argued that monetary and fiscal
FEDERAL RESERVE BULLETIN • FEBRUARY 1974
policies should have been somewhat less expansive during 1972, but it is my considered
judgment that possible excesses of this sort were
swamped by powerful special factors that added
a new dimension to our inflationary problem last
year.
Early in 1973 the move to Phase III made
it easier to pass on rising costs to product prices
and, here and there, to widen profit margins that
had previously been suppressed. Also, since the
inauguration of Phase III was widely interpreted
as a virtual abandonment of controls, inflationary expectations tended to worsen. Looking
back, however, it seems fair to conclude that
the forces of inflation became so powerful during 1973 that they could not be dealt with very
effectively by direct controls.
A major source of the inflationary problem
last year was the coincidence of booming economic activity in the United States and in other
countries. Production rose rapidly throughout
the industrial world, and inflation accelerated
everywhere. Among major industrial countries,
increases in consumer prices in 1973 ranged
from about 7 to 17 per cent. The United States
was toward the low end of this range.
Another complicating factor was the devaluation of the dollar. The value of the dollar
declined sharply in foreign exchange markets
during the first half of last year, thereby magnifying the impact of worldwide inflation on our
price level. The higher prices of foreign currencies raised, of course, the dollar prices of imported products, and these effects spread out
over the economy. Rising import prices led to
some substitution of domestic for foreign products and thus intensified upward pressures on
the price level. And as the dollar became
cheaper for foreign buyers, our export trade
expanded, thereby reinforcing the pressures of
domestic demand on existing resources.
Last year exports were also stimulated by the
worldwide expansion of industrial output. Our
country has long been a major supplier of industrial materials, component parts, and capital
equipment. Larger foreign orders for these items
added powerfully to growing domestic requirements. For example, foreign orders for durable
goods (excluding motor vehicles and parts) shot
up 25 per cent in the year ending in the fourth
STATEMENTS TO CONGRESS
quarter of 1973, while domestic orders during
the same period rose by 17 per cent.
The resulting demand pressures became particularly intense in the major materials-producing industries. Last year the rate of capacity
utilization in these industries—which include
petroleum refining, aluminum, steel, cement,
synthetic fibers, paper, paperboard, and the
like—reached the extraordinary level of 96 per
cent in the third quarter, or about as high as
this index could go. In many of these industries,
expansion of productive capacity had been neglected in recent years, in large part because of
the low rates of profitability from 1966 to 1971
and the restrictions imposed by a variety of
environmental controls. Since our industrial
plant last year was incapable of accommodating
the upsurge in demand, acute shortages developed for a wide range of basic materials.
To make matters worse, disappointing harvests in 1972—both here and abroad—caused
a sharp run-up in prices of food products during
the first 8 or 9 months of 1973, and the disruptive manipulation since last fall of petroleum
shipments and prices by some oil-exporting
countries has caused a spectacular advance in
the prices of gasoline and heating oil. Shortages
of these two categories of products, in fact,
account for a major share of our recent inflationary problem. About 60 per cent of the rise
in the consumer price index in 1973 stemmed
from increased prices of food and fuel; these
same commodities, together with farm products,
accounted for about 70 per cent of the rise in
wholesale prices last year.
In short the character of the inflation in 1973
was very different from the inflation that had
troubled us in earlier years. A worldwide boom
was in process; the dollar was again devalued;
and agricultural products, basic industrial materials, and oil were all in short supply, and price
increases of these products were enormous.
When an economy is beset by inflationary
forces of such exceptional character, governmental intervention in pricing decisions or wage
bargaining can hardly be .expected to be very
effective. Actually, governmental efforts to
maintain a meaningful control program in the
economic environment of 1973 aggravated the
growing scarcity of a host of goods in our
103
markets. In some instances price controls have
led to curtailment of less profitable lines of
production. For example, roof bolts needed to
increase output in the mining industry became
virtually unavailable for a time. In other instances, critically needed materials have been
exported because domestic prices were kept by
governmental fiat below the price level ruling
in international markets. This was a problem
in the market for copper scrap, for example,
before price controls on this material were lifted
in August of last year.
Moreover, in individual markets subject to
excess demand, the controls have apparently
encouraged devices for evading price ceilings.
There have been various reports of "tie-in"
sales, of old products being sold as new lines,
and—since imported goods are free from price
controls—of domestic goods being exported and
then reimported and sold at higher prices.
Thus, the controls accentuated during the past
year the vexing problem of scarcities that developed in many lines of production and distribution. The Cost of Living Council was well
aware of this problem and therefore moved
towards a gradual relaxation or removal of the
controls. But the damage done by the controls
in slowing production was significant, and it is
very doubtful if the control program helped to
moderate the average rate of inflation during
1973.
The Committee on Interest and Dividends
(CID) which I have been chairing, also encountered difficulties in discharging its responsibilities. Early in 1973 the CID encouraged
commercial banks to hold down their prime rate
of interest—that is, the rate charged their large
and most creditworthy business customers. Increasing costs of short-term borrowing in the
money market, however, soon made the prime
rate a bargain rate of interest. Since outstanding
loan commitments by banks were large, and the
total financing requirements of business were
growing, commercial banks found themselves
deluged with demands for loan accommodation.
Action was clearly needed to avert a drying up
of bank funds for small businesses, consumers,
and home buyers.
Adoption by the CID of criteria for a two-tier
prime rate structure alleviated the problem. A
104
flexible prime rate, one closely tied to the highly
competitive open market interest rates, was
permitted for large business borrowers who had
access to the national money and capital markets. At the same time, a more stable rate, tied
closely to actual costs, was to be maintained
by the banks for borrowers with few financing
alternatives—notably, small businesses, consumers, and farmers.
This experience and others we have had with
direct controls over the past IVi years have made
it abundantly clear that there is no good substitute for free markets in allocating resources and
in maintaining productive efficiency. The experience of other countries has been similar to
ours. Direct controls over wages and prices can
be a constructive influence for a short time,
particularly when there is significant slack in the
economy. Such was the case in late 1971 and
through much of 1972. But controls cannot
restrain the upward movement of prices very
long when aggregate demand is rising briskly
and acute shortages develop in major sectors of
the economy. Under such conditions a rigorous
control program gives rise to evasions and inequities, to inefficiencies, and to more acute and
widespread scarcities. And in some markets,
such as those for raw materials, agricultural
products, or internationally traded commodities,
direct controls over prices are—practically
speaking—unworkable.
Let me turn now to the outlook for prices
in 1974 and the role that controls might play
in dealing with inflationary pressures in the
months ahead.
The most pressing economic problem facing
the Nation at the present time is a shortage of
petroleum products that is adversely affecting
business activity and aggravating our price
problem. Hardships for some of our people and
inconveniences for many have become unavoidable.
Some downward adjustment of production
and employment is already under way. Sizable
cutbacks in production and layoffs of workers
have recently taken place, or have been announced, in the automobile industry, the airlines, homebuilding, and other industries. For
many countries, the adjustments will be more
severe than for us.
FEDERAL RESERVE BULLETIN • FEBRUARY 1974
Fortunately, the magnitude of the shortfall in
our oil imports now seems likely to be smaller
than it had originally appeared. However, the
sharply higher price of imported oil will impose
a burden that we cannot immediately escape.
Prices of gasoline and heating fuels have already
risen substantially, and—even if price controls
are continued—may need to rise further in order
to bring demand and supply into better balance.
It is, of course, of the utmost importance that
we permit markets to function in ways that will
result in economies in the use of energy by
business firms and consumers, and at the same
time encourage a burst of new investment in
facilities for exploring and producing crude oil
and other sources of energy.
Food prices are also likely to rise this year.
Stocks of major grains are low, and prospects
for world crop production in 1974 have been
dimmed by shortages of fertilizer. Furthermore,
meat supplies may be disappointingly small in
the first half of the year. Although the outlook
for food prices is by no means so gloomy as
it was a year ago, there is no assurance that
food prices will level out or decline very soon.
A more fundamental factor affecting the
course of inflation in 1974, however, may well
be the course of wage rates and unit labor costs.
Increases in wage rates have been edging up
since last spring; wages rose on the average at
an annual rate of about IVi per cent during the
last half of 1973. Even so, real weekly earnings
of production workers have declined over the
past year because prices have risen so sharply.
This year the collective bargaining calendar
is heavy and includes several pattern-setting
industries. Efforts of workers to obtain large
wage increases in order to prevent a further
erosion of real income would be entirely understandable. If economic activity proceeds sluggishly in 1974, as now seems likely, productivity gains will probably be even smaller than
they were last year. Substantial wage increases
would therefore put great upward pressure on
costs of production and ultimately on prices.
The several adverse influences on the price
level in 1974 are likely to be offset, in part,
by other developments. A slower pace of economic activity here and abroad may well cause
a decline in the prices of internationally traded
STATEMENTS TO CONGRESS
commodities, besides reducing shortages of industrial materials and component parts. Appreciation of the dollar in international exchange
markets over recent months will have a beneficial effect on the domestic price level. Imported
goods will tend to be less expensive, and the
demand for our exports will be moderated,
thereby increasing the supply of goods available
for the domestic market. Late in the year pressures on food prices may also ease somewhat,
as policies already adopted to increase agricultural production begin to bear frujt.
Realistically, however, we can hardly expect
a return to reasonable price stability in the near
future. Substantial increases in the prices of
numerous commodities and services are virtually inevitable this year. Relative prices of
many items are now badly out of balance. Prices
of materials, for example, have recently risen
very swiftly, and these cost increases are still
to be passed through to the prices of end-products. Efforts to prevent such price adjustments
would only prolong the distortions in production
from which we are now suffering. And any
determined attempt to force other prices down,
with a view to achieving average price stability
in the near future, would lead to intolerably high
unemployment.
The objective of public policy in these
difficult circumstances must be to establish a
dependable framework for a gradual return to
price stability over the next few years. In this
endeavor we will need to rely principally on
sound management of aggregate demand
through general monetary and fiscal policies.
In the current economic slowdown the task
of monetary policy will not be the same as in
a classical business recession, when a considerable easing in the supply of money and credit
can be expected to provide the financial basis
for the subsequent recovery. This year our Nation's capacity to produce may actually decline,
or at best rise at an abnormally low rate; declines in production and employment will tend
to be concentrated in specific industries and
regions of the country, rather than spread
broadly over the economy; and the price level
is likely to be rising at a disconcerting rate. Such
developments are outside the pattern of a typical
business recession, and a great deal of caution
105
will therefore be needed in framing monetary
policy. An easier monetary policy can be only
a marginally constructive influence in an energy-induced slowdown. Rapid growth of
money and credit is hardly an effective remedy
for a shortage of oil.
Fiscal policy can be used to better advantage
in this kind of economic slowdown. Selective
fiscal actions—such as an expanded program of
public service employment, or increased unemployment benefits for those who lose their jobs
because of the energy problem, or other special
assistance in areas particularly hard hit—can be
used more effectively to deal with local or
regional problems. And we should be able to
accomplish those objectives, I believe, without
sacrificing the longer-run fiscal discipline so
vital to restoration of general price stability.
In the current economic environment direct
controls cannot be of much benefit in curbing
inflation. In fact, comprehensive and relatively
inflexible controls over wages and prices would
probably do more harm than good because they
would prolong the distortions in production and
distribution that have become a major problem
during the past year. I believe, therefore, that
it would be unwise to extend the authority under
the Economic Stabilization Act for another year.
A more selective approach is needed.
For the remainder of 1974 continuation of
mandatory controls over petroleum products
appears unavoidable. The present shortages,
particularly of gasoline, would result in
skyrocketing prices if mandatory controls were
not retained for a time. The control authority
needed in this area is provided by the recently
enacted Emergency Petroleum Allocation Act,
which does not expire until early 1975.
Continuation of mandatory controls for health
services may also be appropriate. This sector
of the economy has demonstrated a high
propensity toward inflation in recent years, in
large part because the character of the industry
makes it difficult for competitive forces to work
effectively. A special program by the Department of Health, Education, and Welfare to
moderate the rise in the cost of drugs, hospital
care, and other medical services would help to
keep spending on health care within the reach
of our citizens, and it would also ho Id down
106
the growth of Federal expenditures for national
health programs.
In the construction industry the mandatory
authority available to the Construction Industry
Stabilization Committee has thus far remained
virtually unused. That committee, relying on
voluntary agreements between labor and management, has succeeded in reducing very substantially the rate of increase in construction
wages since the spring of 1971. A continuation
of mandatory control powers for the construction industry is perhaps unnecessary, but
I would hesitate to disturb arrangements that
have been so successful.
Except for these specific cases, I believe that
the time has come to scrap the present structure
of mandatory controls. The great mass of wages
and prices should again be left to private decisions in free markets. In some markets, however, a degree of governmental vigilance may
well be required to prevent abuses of economic
power.
Mandatory controls are not the answer. On
the other hand, a limited element of intervention
in pace-setting industries may result in appreciable improvements of wage and price performance. Authority would be needed to delay
wage and price changes so that mediation or
public hearings could be held and recommendations handed down. These recommendations could then be monitored and reports
issued on compliance so that the force of public
opinion could be brought to bear on wage or
price changes that are deemed detrimental to the
national interest. Functions of this kind could
best be handled by ad hoc boards for specific
cases, to be established by the Cost of Living
Council or some successor agency.
Installation of the necessary review machinery may take some time, however. Partly for
this reason, partly also because significant elements of the economy may still be under control
by April 30, extension of the Economic Stabilization Act for 2 or 3 months might be desirable
to allow time for an orderly transition to substantially free markets.
I believe that a determined national effort to
curb inflation also requires greater stress on
programs for reducing obstacles to supply, and
for encouraging investment in industries where
FEDERAL RESERVE BULLETIN • FEBRUARY 1974
capacity constraints are limiting the expansion
of our national economy. Events of this past
year have focused attention on the urgent need
to increase supplies of energy, and also to
expand the productive capacity of our basic
materials industries. Accelerated amortization
of capital facilities for such industries, using
techniques developed during the Korean war,
could help solve this problem by making adequate tax allowance for the high cost of pollution-control equipment and for risks attending
stepped-up investment in these vital industries.
Efforts to enlarge our supply potential, however, should go beyond the provision of investment incentives in the basic materials industries.
For example, vestiges of our former restrictive
agricultural policies could be removed, and the
minimum wage law could be modified to increase job opportunities for teenagers. Furthermore, a wide range of restrictive practices in
the private sector—from featherbedding to outdated building codes—cry out for reform.
Efforts to remove impediments to supply and
to improve productivity are more likely to be
successful if we establish machinery to focus
on this problem over the long run. I would
suggest, therefore, that the Council of Economic
Advisers be given the responsibility of developing specific programs, of making semiannual
reports on the progress being achieved, and of
recommending policies needed to further the
broad objective of expanding our capacity to
produce.
In summary, my suggestions to this committee are as follows: First, that our Nation again
permit wages and prices to be set preponderantly
in free markets, and that we depend principally
upon monetary and fiscal policies to establish
an economic environment conducive to a return
of general price stability; second, that mandatory control programs be confined to petroleum
products, health services, and the construction
industry; third, that the present Economic Stabilization Act be extended, if at all, for only
2 or 3 months beyond April 30th; fourth, that
the Cost of Living Council or a successor
agency assume responsibility for establishing ad
hoc boards that would seek through public
hearings, or in other ways short of compulsion,
to prevent abuses of economic power over
STATEMENTS TO CONGRESS
wages and prices in pace-setting industries;
fifth, that our Nation embark on a long-range
effort to reduce obstacles to the expansion of
supply, and that the Council of Economic Advisers be required to recommend programs
needed to further this objective, and to make
semiannual reports on progress achieved.
I believe that implementation of these suggestions will contribute to a slowing in the rate
of inflation over the course of 1974. In any
event, I hope that the Congress will look at all
sides of the inflation problem and consider
thoroughly these and other suggestions that may
come to its attention.
This Nation has been struggling with inflation
107
for almost a decade. Our citizens are well aware
of its seriousness, and they are realistic enough
to realize that there is no easy way to regain
price stability. But I am deeply concerned that
the patience of our people is wearing thin.
Failure to make significant headway this year
in reducing the rate of increase in prices may
destroy the confidence of businessmen and consumers in the capacity of our Government to
deal with an inflationary problem that is retarding economic progress and sapping the energies
of our people. Improvement in the price performance of our economy during 1974 is essential to our country's future and is well within
our means.
•
108
Record of Policy Actions
of the Federal Open Market Committee
MEETING HELD ON NOVEMBER 19-20, 19731
Domestic policy directive
The information reviewed at this meeting suggested that growth
in real output of goods and services—which had risen to an annual
rate of about 3.5 per cent in the third quarter from about 2.5 per
cent in the second quarter—would remain moderate in the current
quarter. Staff projections continued to suggest that, in the absence
of an oil crisis, growth of real output would slacken in the first
half of 1974 and that the rise in prices would remain rapid. It
was also suggested that continuation of the embargo on the flow
of Arab oil to the United States—announced in the latter part of
October—could have significantly adverse effects on the U.S.
economy.
In October industrial production continued to grow at a substantial pace, reflecting advances in output of business equipment and
consumer goods; output of materials, which was pressing against
the limits of capacity in some industries, changed little. Employment expanded in manufacturing, after a 3-month period of little
change, and total nonfarm payroll employment increased appreciably. The unemployment rate dropped from 4.8 to 4.5 per cent,
the lowest rate in V/2 years. And advance reports indicated that
retail sales rose substantially during the month, although sales of
new automobiles declined significantly.
The index of average hourly earnings of production workers on
nonfarm payrolls continued to advance at a relatively fast pace
in October. During the third quarter compensation per manhour
in the private nonfarm sector of the economy increased substantially
more than output per manhour, and unit labor costs rose sharply
further.
x
This meeting was held over a 2-day period beginning on the afternoon of
Nov. 19, 1973, in order to provide more time for the staff presentation concerning
the economic situation and outlook and the Committee's discussion thereof.
The uptrend in wholesale prices of industrial commodities accelerated in October, reflecting a large rise in prices of petroleum
products and other fuels and widespread increases among other
commodities. Wholesale prices of farm and food products fell
substantially for the second consecutive month, as a result of
marked decreases for livestock, meats, poultry, and soybeans;
however, the index remained well above the pre-freeze level of
early June. In September the rate of advance of the consumer price
index slowed as retail prices of foods declined slightly after having
risen sharply in August.
Staff projections for the first half of 1974 suggested that business
fixed investment would rise considerably further, that State and
local government purchases of goods and services would continue
to grow at a substantial rate, and that consumption expenditures
would expand at about the moderate pace of the second half of
1973. However, it was also anticipated that the decline in residential
construction outlays would persist and that business inventory
investment would level off.
U.S. merchandise exports rose sharply further in September—
reflecting for the most part considerable increases in exports of
capital equipment and industrial materials—while imports declined.
As a result, the trade balance moved into substantial surplus. For
the third quarter as a whole, the trade surplus was sizable for the
first time in 3 years. The over-all balance of payments on an official
settlements basis also was in substantial surplus in the third quarter,
and it remained so in October.
Following the announcement in late October of the large U.S.
trade surplus, demand for dollars rose considerably, and exchange
rates for the dollar appreciated against major foreign currencies.
The dollar registered a further sizable appreciation after the development of the oil crisis, which was interpreted in the markets as
creating particularly severe problems for the economies of Western
Europe and Japan.
Outstanding business loans of U.S. commercial banks, which
had increased little in September, were unchanged in October.
Business borrowers continued to shift to the commercial paper
market as market interest rates declined further relative to effective
rates on bank loans—even though most banks lowered the prime
rate applicable to large corporations from 10 to 93A per cent during
109
110
FEDERAL RESERVE BULLETIN • FEBRUARY 1974
the month and a few reduced the rate to 9V2 per cent. Expansion
in most other types of loans slowed in October, and banks continued
to liquidate substantial amounts of their holdings of Government
securities. Bank holdings of other securities—primarily Federal
agency issues—rose appreciably, but the increase in total bank
credit remained moderate.
The narrowly defined money stock (M x ) 2 rose moderately in
October, following 2 months of declines. Preliminary calculations
based on new benchmark data indicated that the level of the money
stock in recent months would be adjusted upward and that monetary
growth over the year ending in October had been somewhat faster
than the rate of 5.1 per cent suggested by the currently published
data. 3 Inflows of time and savings deposits other than large-denomination C D ' s picked up sharply, and the more broadly defined
money stock (M 2 ) 4 grew at a rapid pace. The outstanding volume
of large-denomination C D ' s declined substantially further as banks
continued to reduce the rates paid on such C D ' s , in response to
the further weakening in business loan demand at banks, to the
large inflows of consumer-type time deposits, and to the effect
on the cost of such funds of the recent increase in marginal reserve
requirements against large-denomination CD's. As a result, the
bank credit proxy 5 increased relatively little.
Net deposit inflows at nonbank thrift institutions improved
somewhat further in October, and the measure of the money stock
that includes such deposits (M 3 ) 6 rose appreciably after having
grown at a slow pace over the third quarter. Contract interest rates
on conventional mortgages and yields in the secondary market for
Federally insured mortgages declined.
On October 24 the Treasury announced that on October 30 and
2
Private demand deposits plus currency in circulation.
The measure of the money stock has been revised annually to incorporate
new seasonal adjustment factors and, among other things, benchmark adjustments
for deposits at nonmember banks on the basis of data reported for 2 days a year,
the last day of June and the last day of December; for member banks, deposits
are averages of daily figures. The growth rate cited is calculated on the basis
of the daily-average level in October 1973 relative to that in October 1972.
4
M X plus commercial bank time and savings deposits other than large-denomination CD's.
5
Daily-average member bank deposits adjusted to include funds from nondeposit
sources.
6
M 2 plus time and savings deposits at mutual savings banks and at savings
and loan associations.
3
RECORD OF POLICY ACTIONS OF FOMC
31 it would auction up to $1.5 billion of 2 5 ^ - m o n t h notes, up
to $2.0 billion of 6-year notes, and up to $300 million of 1934-year,
IV2 per cent bonds to refund $3.6 billion of publicly held bonds
maturing on November 15; on October 29 the Treasury set coupon
rates of 7 per cent for both of the note issues. In the auctions
the Treasury sold $1.5 billion of the 25 V2-month note at an average
price to yield 6.91 per cent, $2 billion of the 6-year note at an
average price to yield 6.82 per cent, and $300 million of the bond
at a price to yield 7.35 per cent to maturity. In addition, the
Treasury raised $1.2 billion of new cash by auctioning bills on
November 9 and 12; the funds were raised to meet cash needs
generated by redemptions of special Treasury securities by some
foreign monetary authorities, which in turn resulted from the
surplus in the U.S. balance of payments, and also to increase
Treasury cash balances because the authority to borrow directly
from Federal Reserve Banks had expired on October 31.
Short-term market interest rates in general declined further in
the first week after the Committee's meeting on October 16, in
large part because of continued market expectations that the
weakness of recent months in the behavior of the monetary aggregates would lead to more aggressive System efforts to supply
reserves and, consequently, to an easing in money market conditions. Later, however, when the aggregates strengthened and money
market conditions remained relatively stable, market expectations
changed and interest rates turned up. After the Treasury's early
November announcement of the sale of bills to raise new cash,
short-term rates—especially those on Treasury bills—rose further
to or above their levels of mid-October. Just before this meeting
the market rate on 3-month Treasury bills was 7.50 per cent, up
from a recent low of 7.02 per cent on October 24 and 7.19 per
cent on the day before the October meeting.
In long-term markets interest rates advanced somewhat in the
inter-meeting period in association with the rise in short-term rates
and with the expansion of demands for funds in the capital markets.
The volume of new public offerings of corporate bonds rose sharply
in October, and a further increase was in prospect for November.
The volume of new State and local government bonds also expanded substantially in October, but the volume appeared likely
to fall off in November.
111
112
FEDERAL RESERVE BULLETIN • FEBRUARY 1974
Soon after the October meeting, available data suggested that
in the October-November period the monetary aggregates would
grow at rates within acceptable ranges but that reserves available
to support private nonbank deposits (RPD's) would grow at a rate
below the range that the Committee had specified because an
anticipated upturn in the outstanding volume of large-denomination
C D ' s had not developed. Data becoming available later, however,
suggested that the monetary aggregates would grow at rates in
excess of acceptable ranges. System action to limit such monetary
expansion was tempered by the Treasury refunding that was in
process and by the unsettled conditions that developed in the
Government securities market for a time after the early November
announcement of Treasury sales of bills to raise new cash. The
Federal funds rate, which had been about 10 per cent at the time
of the October meeting, was at or above 10 per cent in the days
preceding this meeting. In the 5 weeks ending November 14,
member bank borrowings averaged about $1,446 million, down
from an average of $1,690 million in the preceding 4 weeks.
The Committee agreed that the economic situation and prospects
continued to call for moderate growth in monetary aggregates over
the months ahead. A staff analysis suggested that in the near term
the demand for money would expand in response to the sizable
increase in nominal GNP estimated for the fourth quarter and to
the uncertainties generated by the oil shortage. The analysis also
suggested that growth of consumer-type time and savings deposits
at banks would moderate from the high rates of recent months.
While the outstanding volume of large-denomination C D ' s was
expected to expand toward the end of the year in response to a
renewal of growth in business loans at banks, it was anticipated
that required reserves against such C D ' s would drop further in the
November-December period. Consequently, negative growth in
R P D ' s in that period—at an annual rate within a range of —1 to
— 3 per cent—was thought likely to be consistent with moderate
growth in both the narrowly and the more broadly defined money
stock over the months ahead. It was expected that such a change
in R P D ' s would be associated with little change in money market
conditions.
The Committee decided that operations should be directed at
fostering growth in R P D ' s during the November-December period
RECORD OF POLICY ACTIONS OF FOMC
at an annual rate within a range of —1 to —3 per cent, while
avoiding unduly sharp changes in money market conditions. The
members also agreed that, in the conduct of operations, account
should be taken of international and domestic financial market
developments, of the forthcoming Treasury financing, and of deviations in monetary growth from an acceptable range. It was
understood that the Chairman might call upon the Committee to
consider the need for supplementary instructions before the next
scheduled meeting if significant inconsistencies appeared to be
developing among the Committee's various objectives and constraints.
The following domestic policy directive was issued to the Federal
Reserve Bank of New York:
The information reviewed at this meeting suggests that growth
in economic activity in the fourth quarter is likely to remain at
about the moderate rate of the third quarter, but curtailment of oil
supplies from abroad has generated considerable uncertainty about
subsequent prospects. In October total nonfarm employment expanded substantially further, and the unemployment rate dropped
from 4.8 to 4.5 per cent. The advance in wage rates has remained
relatively rapid, and unit labor costs have been increasing at a fast
pace. Wholesale prices of industrial commodities rose sharply in
October, reflecting in part large increases for petroleum products;
although farm and food prices declined considerably further, they
remained well above the pre-freeze level of early June. In foreign
exchange markets, the dollar appreciated against major foreign
currencies following announcement in late October of a large surplus
in the U.S. merchandise trade balance, and the dollar strengthened
markedly further in early November as expectations grew that the
developing oil crisis would create particularly severe problems for
Western Europe and Japan. In the third quarter and in October,
the balance of payments on an official settlements basis was in
substantial surplus.
The narrowly defined money stock, which had declined in August
and September, rose moderately in October. The more broadly
defined money stock expanded sharply as a result of large net inflows
at banks of consumer-type time deposits. Net deposit inflows at
nonbank thrift institutions improved somewhat further. Bank credit
expansion remained moderate in October, reflecting in part a lack
of growth in business loans as borrowers shifted to the commercial
paper market. The outstanding volume of large-denomination CD's,
113
114
FEDERAL RESERVE BULLETIN • FEBRUARY 1974
which had begun to decline in late September, fell substantially
further. Short-term market interest rates, while fluctuating widely,
rose on balance from mid-October to mid-November. Rates on most
types of long-term market securities also advanced somewhat.
In light of the foregoing developments, it is the policy of the
Federal Open Market Committee to foster financial conditions conducive to abatement of inflationary pressures, a sustainable rate of
advance in economic activity, and equilibrium in the country's
balance of payments.
To implement this policy, while taking account of international
and domestic financial market developments, the Committee seeks
to achieve bank reserve and money market conditions consistent
with moderate growth in monetary aggregates over the months
ahead.
Votes for this action: Messrs. Burns, Hayes,
Balles, Brimmer, Bucher, Daane, Francis, Holland,
Mayo, Mitchell, and Sheehan. Vote against this
action: Mr. Morris.
Mr. Morris dissented from this action because he felt that in
view of the marked deterioration in the economic outlook that had
occurred over the past few weeks, stemming from the energy crisis,
a modest move in the direction of a more stimulative monetary
policy was appropriate.
Subsequent to the meeting it appeared that in the N o v e m b e r - D e cember period growth in the monetary aggregates might exceed
acceptable ranges. In view of that behavior, the System, under
ordinary circumstances, would have become somewhat more restrictive in its reserve-supplying operations, expecting that money
market conditions would tighten somewhat. On November 30,
however, the available members concurred in a recommendation
by the Chairman that, in light of current uncertainties regarding
the economic outlook and the sensitive state of financial market
psychology, the System aim to maintain current money market
conditions for the time being.
RECORD OF POLICY ACTIONS OF FOMC
MEETING HELD ON DECEMBER 17-18, 19731
1. Domestic policy directive
The information reviewed at this meeting suggested that growth
in real output of goods and services, which had been at an annual
rate of about 3.5 per cent in the third quarter, was slowing
appreciably in the current quarter. Staff projections suggested that
economic activity would weaken further in the first half of 1974
and that prices would rise appreciably, in part because of curtailment in oil supplies.
In November industrial production expanded slightly. Increases
in output in September and October were considerably less than
had been reported previously, however, and growth over the
3-month period was well below the pace of advance earlier in the
year. The value of new residential construction activity declined
further in November. Total nonfarm payroll employment continued
to rise, reflecting gains in manufacturing as well as in trade,
services, and State and local government. However, the unemployment rate—which had declined to 4.5 per cent in October—
moved back up to 4.7 per cent, about the rate that had prevailed
since June. Retail sales were unchanged in November, according
to the advance report; sales of new automobiles remained at the
reduced level of October.
Wholesale prices of industrial commodities continued to rise
sharply in November, reflecting extraordinarily large increases in
prices of gasoline and other petroleum products and also sizable
advances among metals, machinery, textiles, chemicals, and paper
products. Wholesale prices of farm and food products declined for
the third consecutive month, largely as a result of decreases in
prices of cattle, poultry, grains, fats and oils, and cotton. In October
the rate of increase in the consumer price index accelerated after
having slowed in September, as costs of fuels, health services,
and homeownership rose appreciably.
Staff projections of growth in real GNP in the first half of 1974
suggested that the shortfall in supplies of petroleum products then
^ h i s meeting was held over a 2-day period beginning on the afternoon of
Dec. 17, 1973, in order to enable the Committee to consider certain procedural
matters without infringing on the time available for its deliberations on current
monetary policy.
115
FEDERAL RESERVE BULLETIN • FEBRUARY 1974
116
envisioned would have its greatest impact on expenditures for
automobiles and various other travel-related goods and services;
as a result, the slower rate of growth in consumption expenditures
that had been developing in the current quarter was likely to persist
in the first half of 1974. It was also anticipated that the decline
in residential construction would be larger than had appeared likely
4 weeks earlier—because of the adverse effects of the oil shortage
on building in the more remote suburban areas and on construction
of vacation homes—and that the expansion in business fixed investment would be somewhat less vigorous. State and local government purchases of goods and services were still expected to
grow at a substantial rate.
In most other industrial countries, the prospect of a sustained
cut in oil supplies threatened even greater economic disruptions
than in the United States. From mid-November to mid-December,
major foreign currencies depreciated significantly further against
the dollar, and a number of foreign monetary authorities continued
to intervene in the exchange markets, selling dollars to prevent
their currencies from depreciating even more. The U.S. merchandise trade balance, which had been improving since early 1973,
was in large surplus in both September and October.
Outstanding business loans at U.S. commercial banks increased
in November—following 2 months of little or no change—in
association with a rise in interest rates in the commercial paper
market relative to effective rates on bank loans. However, total
bank credit expansion remained moderate, as growth in most other
types of loans slowed further and banks liquidated significant
amounts of their holdings of Government and other securities.
The narrowly defined money stock (M x ), 2 after changing little
over the third quarter, grew moderately in October and rapidly
in November. It appeared that the November rate of growth had
been affected by such temporary influences as expansion in precautionary balances held by the public in response to the new economic
uncertainties and increases in deposits of foreign commercial and
central banks. Inflows of time and savings deposits other than
large-denomination CD's—while down from the October level—
were still large, and growth in the more broadly defined money
2
Private demand deposits plus currency in circulation.
RECORD OF POLICY ACTIONS OF FOMC
stock (M 2 ) 3 remained substantial. The outstanding volume of
large-denomination C D ' s declined further in November, on the
average, although the volume turned up around the middle of the
month as banks raised the rates paid on such C D ' s in response
to the expansion in business loan demand at banks. Treasury
deposits also declined, and the bank credit proxy 4 changed little
for the second consecutive month. On December 7 the Federal
Reserve announced a reduction from 11 to 8 per cent in marginal
reserve requirements on large-denomination C D ' s , effective in the
statement week beginning on December 27, against deposits held
2 weeks earlier.
Net deposit inflows at nonbank thrift institutions improved
somewhat further in November, and expansion in the measure of
the money stock that includes such deposits (M 3 ), 5 like growth
in M 2 , remained substantial. Contract interest rates on conventional
mortgages and yields in the secondary market for Federally insured
mortgages declined for the second consecutive month.
Since the Committee's meeting on November 19-20 most short and long-term market interest rates had fluctuated in response to
changing expectations with regard to monetary policy and to the
impact of the fuel shortage on economic activity. Short-term rates
in general had fallen following the December 7 announcement of
the reduction in marginal reserve requirements against large-denomination C D ' s , and on balance, most had declined somewhat
over the inter-meeting period. Just before this meeting, the market
rate on 3-month Treasury bills was 7.47 per cent, compared with
an interim high of 7.82 per cent on November 23 and with 7.50
per cent just before the November meeting.
In long-term markets, some rates had increased slightly since
the November meeting while others had declined, and on balance,
rates had changed little. The volume of new public offerings of
corporate bonds—which had risen sharply in October—increased
somewhat further in November, and a less-than-seasonal decline
3
M j plus commercial bank time and savings deposits other than large-denomination CD's.
4
Daily-average member bank deposits, adjusted to include funds from
nondeposit sources.
5
M 2 plus time and savings deposits at mutual savings banks and at savings
and loan associations.
117
118
FEDERAL RESERVE BULLETIN • FEBRUARY 1974
was in prospect for December. The volume of new State and local
government bonds remained high in November, and a seasonal
decline appeared likely in the current month.
System open market operations since the meeting in midNovember had been guided by the Committee's decision to seek
bank reserve and money market conditions consistent with moderate
growth in monetary aggregates over the months ahead, while taking
account of international and domestic financial market developments. Soon after the November meeting, available data suggested
that growth in Mx and M 2 in the November-December period might
exceed acceptable ranges. Although it appeared that growth in
reserves available to support private nonbank deposits (RPD's)
would fall below the range of — 1 to —3 per cent that the Committee
had specified, for the most part the shortfall was attributable to
a larger-than-expected drop in required reserves against large-denomination CD's.
In view of the behavior of the monetary aggregates, the System,
under ordinary circumstances, would have become more restrictive
in its reserve-supplying operations, expecting as a result that money
market conditions would tighten somewhat. On November 30,
however, the available members of the Committee concurred in
a recommendation by the Chairman that, in light of current uncertainties regarding the economic outlook and the sensitive state of
financial market psychology, current money market conditions be
maintained for the time being. In the two statement weeks preceding
this meeting, the Federal funds rate averaged about lOVs per cent,
little changed from the rate prevailing in the days preceding the
November meeting. In the 4 weeks ending December 12, member
bank borrowings averaged about $1,410 million, close to the
average of about $1,446 million in the preceding 5 weeks.
A staff analysis suggested that, if prevailing money market
conditions were maintained, the rate of growth of the narrowly
defined money stock would be dampened over the months ahead
because of the effects on transactions demands for money of the
anticipated weakening in economic activity. Some easing of money
market and reserve conditions, and the further declines in short-term
market rates of interest likely to accompany such easing, would
help to sustain moderate growth in Mx and also—by encouraging
expansion in consumer-type time and savings deposits at banks
RECORD OF POLICY ACTIONS OF FOMC
and nonbank thrift institutions—in M 2 and M 3 . The analysis also
suggested that the outstanding volume of large-denomination C D ' s
would grow moderately, reflecting continuation of fairly strong
business demands for short-term credit and also the lower net cost
of such deposits to banks resulting from the recent reduction in
marginal reserve requirements against large-denomination C D ' s .
The Committee concluded that the economic situation and outlook called for a modest easing of monetary policy. The members
decided that for the period until the next meeting somewhat more
emphasis should be placed on money market conditions than had
been the case in recent months; specifically, they decided that
operations should be directed toward achieving some easing in bank
reserve and money market conditions, provided that the monetary
aggregates did not appear to be growing excessively. Taking into
account the staff analysis, the members expected that pursuit of
that objective would be consistent with growth in R P D ' s in the
December-January period at an annual rate within a range of 8V4
to 11 per cent. They agreed that, in the conduct of operations,
account should be taken of international and domestic financial
market developments, and as at other recent meetings, it was
understood that the Chairman might call upon the Committee to
consider the need for supplementary instructions before the next
scheduled meeting if significant inconsistencies appeared to be
developing among the Committee's various objectives and constraints.
The following domestic policy directive was issued to the Federal
Reserve Bank of New York:
The information reviewed at this meeting—including recent developments in industrial production, residential construction, and
retail sales—suggests that growth in economic activity is slowing
in the fourth quarter. A further weakening in activity and an
appreciable rise in prices are in prospect because of the curtailment
in oil supplies. In November nonfarm payroll employment expanded
further, but the unemployment rate, which had dropped in October,
rose again to about the level that had prevailed since midyear.
Wholesale prices of industrial commodities continued to rise sharply
in November, reflecting large additional increases for petroleum
products and widespread advances among other commodities; farm
and food prices declined further.
119
120
FEDERAL RESERVE BULLETIN • FEBRUARY 1974
In nearly all industrial countries abroad, concern has grown that
a sustained cut in oil supplies will disrupt economic activity. Major
foreign currencies have depreciated further against the dollar, and
intervention sales of dollars by foreign monetary authorities have
continued. The U.S. merchandise trade balance registered a strong
surplus in the September-October period.
The narrowly defined money stock, following little net change
over the third quarter, has grown at a relatively rapid pace over
the past 2 months. Growth in the more broadly defined money stock
has also been substantial, as net inflows at banks of consumer-type
time deposits have been large. Net deposit inflows at nonbank thrift
institutions improved somewhat further. Bank credit expansion
remained moderate in November, although business loans increased
after 2 months of little or no growth. On December 7 the Federal
Reserve announced a reduction from 11 to 8 per cent in marginal
reserve requirements on large-denomination CD's. Most short-term
market interest rates have declined somewhat on balance in recent
weeks, while movements in long-term market rates have been
mixed.
In light of the foregoing developments, it is the policy of the
Federal Open Market Committee to foster financial conditions conducive to resisting inflationary pressures, cushioning the effects on
production and employment growing out of the oil shortage, and
maintaining equilibrium in the country's balance of payments.
To implement this policy, while taking account of international
and domestic financial market developments, the Committee seeks
to achieve some easing in bank reserve and money market conditions,
provided that the monetary aggregates do not appear to be growing
excessively.
Votes for this action: Messrs. Burns, Balles,
Brimmer, Bucher, Daane, Holland, Mayo, Mitchell, Morris, Sheehan, and Kimbrel. Vote against
this action: Mr. Hayes.
Absent and not voting: Mr. Francis. (Mr. Kimbrel voted as an alternate for Mr. Francis.)
Mr. Hayes dissented from this action because, with the problems
of inflation increasing rather than abating and with the monetary
aggregates apparently growing more rapidly in 1973 than the
Committee had considered desirable, he favored a continuation of
the current degree of monetary restraint without noticeable relaxation unless signs of weakening in the economy became more
RECORD OF POLICY ACTIONS OF FOMC
apparent. He believed that, while there was not much that monetary
policy could do to relieve the economic problems arising f r o m the
oil shortage, a premature easing of policy could exacerbate the
problems of inflation.
Subsequent to the meeting it appeared that in the December-January period the annual rate of growth in R P D ' s might be
close to the upper limit of the range that had been specified by
the Committee and that rates of growth in M1 and M 2 might exceed
acceptable ranges, although a significant part of the growth in the
monetary aggregates could be attributed to an unanticipated increase
in deposits of foreign commercial banks at U . S . banks. On January
11 the available members—with the exception of Mr. Francis—
concurred in a recommendation by the Chairman that, in view of
the sensitive state of financial markets and the general economic
situation, the System aim to maintain prevailing money market
conditions for the time being.
2. Authorization for domestic open market operations
On January 4, 1974, a majority of Committee members voted
to increase from $2 billion to $3 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 January 22, 1974.
Votes for this action: Messrs. Burns, Hayes,
Brimmer, Holland, Mayo, Mitchell, Morris, Sheehan, and Clay. Vote against this action: Mr.
Francis.
Absent and not voting: Messrs. Balles, Bucher,
and Daane. (Mr. Clay voted as alternate for Mr.
Balles.)
This action was taken on recommendation of the System Account Manager. The Manager had advised that a substantial
volume of open market purchases of securities had been required
in the period since the Committee's meeting on December 18, 1973,
in order to offset reserve absorption resulting from market factors
and that a near-term need to supply reserves was in prospect; he
121
FEDERAL RESERVE BULLETIN • FEBRUARY 1974
122
had further advised that strength of the dollar in foreign exchange
markets suggested that foreign official sales of U.S. Treasury bills
might be heavy and that the System should be in a position to
acquire some of those bills while offsetting any undesired effects
on bank reserves by other means.
Mr. Francis dissented from this action because, in view of his
concern over the continuing rapid rate of growth in the monetary
aggregates, he preferred that additional reserves necessary to meet
requirements over the next few weeks be obtained through member
bank borrowings rather than provided through additions to System
holdings of securities. Moreover, he believed that foreign official
sales of Treasury bills should be absorbed in the market.
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 90 days after the meeting and are subsequently published in
t h e BULLETIN.
Law Department
Statutes, regulations, interpretations, and decisions
TRUTH IN LENDING
AMENDMENTS TO REGULATION Z
The Board of Governors has amended Regulation Z to revoke several provisions included when
the regulation was promulgated to assist creditors
in making the transition to compliance with the
rules.
Effective March 1, 1974, Regulation Z is
amended as set forth below:
1. Sections 226.6(j) and (k), 226.7(f), 226.602
and 226.605 are deleted.
2. As an incident to these amendments, §
226.6(1) is redesignated § 226.6(j).
BANK HOLDING COMPANY AND BANK MERGER ORDERS
ISSUED BY THE BOARD OF GOVERNORS
ORDERS UNDER SECTION 3 OF
BANK HOLDING COMPANY ACT
BHCO, INC.,
HARDIN, MONTANA
ORDER D E N Y I N G F O R M A T I O N OF B A N K
HOLDING
COMPANY
BHCo, Inc., Hardin, Montana, has applied for
the Board's approval under § 3(a)(1) of the Bank
Holding Company Act (12 U.S.C. 1842(a)(1)) of
formation of a bank holding company through the
acquisition of 97.8 per cent of the voting shares
of Big Horn County State Bank, Hardin, Montana
("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 in light of
the factors set forth in § 3(c) of the Act (12 U.S.C.
1842(c)).
Applicant, a nonoperating company with no
subsidiaries, was organized for the purpose of
becoming a bank holding company through the
acquisition of Bank, with deposits of $16.3 million. (All banking data are as of June 30, 1973.)
Bank is the larger of two banks in its relevant
banking market, 1 controlling approximately 66 per
cent of the total commercial bank deposits therein.
Upon acquisition of Bank, Applicant would become the 18th largest banking organization in
Montana and hold 0.7 per cent of total commercial
deposits in the State.
The purpose of the proposed transaction is to
effect a transfer of the ownership of Bank from
individuals to a corporation owned by the same
individuals with no change in Bank's management
or operations. The individuals who presently control Bank and who also organized Applicant are
members of the same family.
The principals involved in this case together
with other members of the same family also own
97 per cent of STS Corporation, 2 Billings, Montana, a one-bank holding company which owns
99.8 per cent of Security Trust and Savings Bank,
Billings, Montana ("Billings Bank"). Billings
Bank (deposits of $124 million) is the largest bank
in Montana, controlling 5.6 per cent of total commercial bank deposits in the State, and operates
in a separate but adjacent banking market approxx
The relevant banking market is approximated by the northern two-thirds of Big Horn County.
2
STS Corporation received Board approval to become a bank
holding company by Order dated November 15, 1971 (1971
Federal Reserve BULLETIN 1024).
123
124
imately 47 miles west of Bank. In addition, these
principals also control Bank of Commerce, Sheridan, Wyoming (deposits of $32 million), located
approximately 88 miles south of Bank, which
holds 2.8 per cent of total commercial bank deposits in Wyoming.
As indicated above, the proposed acquisition
represents a change in form of ownership of Bank,
and there are no significant proposed changes in
the operations or services of Bank. Therefore,
considerations relating to the convenience and
needs of the community to be served lend no
weight toward approval of the proposal. However,
as discussed below, the financial condition of
Applicant could impair Bank's ability to continue
to serve the banking needs of the relevant market.
Under the Bank Holding Company Act, the
Board is required to take into consideration the
financial and managerial resources and future
prospects of the proposed holding company and
the bank to be acquired. In the exercise of that
responsibility, the Board finds that considerations
relating to the financial resources of Applicant
warrant denial of the application. Applicant's
earning prospects are entirely dependent upon the
earnings of Bank; Applicant expects to service a
$1.5 million debt over a 12-year period through
Bank dividends averaging 45 per cent of Bank's
projected net income and through savings realized
by the holding company from filing consolidated
income tax returns. The projected earnings for
Bank do not, in the Board's view, provide Applicant with the necessary financial flexibility to meet
its annual debt servicing requirements as well as
any unexpected problems that might arise at Bank.
Furthermore, if Bank's projected rate of growth
is realized, Bank's total capital funds as related
to its total assets would become insufficient because of Applicant's inability to augment Bank's
capital due to its substantial debt servicing requirements. The above factors strongly suggest
that these financial requirements could place an
undue strain on Bank and thus impair Bank's
ability to be a viable banking organization in
meeting the banking needs of the community
which it serves. Such considerations lend weight
toward denial of the application.
The Board notes that the principals of Applicant
already control (through a one-bank holding company) Billings Bank, a bank with a capital ratio
which has been declining under the policy of its
present management. This precedent lends support
to the view that the financial plan in the instant
FEDERAL RESERVE BULLETIN • FEBRUARY 1974
case may not generate sufficient income from the
earnings of Bank to service its acquisition debt
and to maintain Bank's capital under a financially
sound program. 3 With respect to questions of
acquisition debt and debt equity ratios, the Board
has been relatively liberal in the standards it has
applied in cases when current or prospective
owner-chief executive is establishing, or has established, a one-bank holding company to hold the
direct equity interest in his bank. Such relative
liberality is regarded as in the public interest in
order to facilitate management succession on the
community level at the nation's many smaller
independent banks. In situations where this special
consideration does not pertain, the Board believes
it is prudent to apply somewhat more restrictive
standards, as is regularly done in analyzing multibank holding companies.
Under the above circumstances, in addition to
other facts of record, considerations relating to the
financial condition and prospects of Applicant lend
weight for denial of the application. While the
Board recognizes that denial of the application
would not necessarily affect immediately the control of Bank, the Board cannot sanction the use
of a holding company structure that, because of
limited financial resources, could impair the financial condition of the bank to be acquired, nor
would the public interest be served by such Board
action.
On the basis of all the facts in the record, and
in light of the factors set forth in § 3(c) of the
Act, it is the Board's judgment that the proposed
acquisition would result in a bank holding company with financial resources inadequate to service
its debt while maintaining Bank's capital account,
and that such condition could impair the ability
of Bank to meet the needs of the community which
it serves. Accordingly, the Board concludes that
consummation of the proposal would not be in the
public interest, and that the application should be
denied.
By order of the Board of Governors, effective
January 15, 1974.
Voting for this action: Vice Chairman Mitchell and Governors Brimmer, Sheehan, Bucher, and Holland. Absent and not
3
In a letter of comment received by the Board from the
Director of the Department of Business Regulation, State of
Montana, it was noted that Applicant's projection of earnings
appeared optimistic and it was recommended that the debt of
the proposed holding company should be substantially reduced
before approval of the subject application would be appropriate.
125
LAW DEPARTMENT
voting: Chairman Burns and Governor Daane.
(Signed)
[SEAL]
CHESTER
Secretary
B.
of
FELDBERG,
the
Board.
LLOYDS BANK LIMITED AND
LLOYDS FIRST WESTERN CORPORATION,
LONDON,ENGLAND
O R D E R A P P R O V I N G F O R M A T I O N OF B A N K
HOLDING
COMPANIES
Lloyds Bank Limited, London, England
("Lloyds B a n k " ) and its wholly-owned subsidiary
Lloyds First Western Corporation, Wilmington,
Delaware ("Lloyds First Western"), have applied
for the Board's approval under § 3(a)(1) of the
B a n k H o l d i n g C o m p a n y Act (12 U . S . C .
1842(a)(1)) of formation of bank holding companies through the acquisition of up to 100 per cent
of the voting shares of First Western Bank and
Trust C o m p a n y , L o s A n g e l e s , C a l i f o r n i a
( " B a n k " ) . Lloyds First Western is a Delaware
corporation recently organized by Lloyds Bank for
the sole purpose of acquiring Bank and has engaged in no business activities and has no subsidiaries. Accordingly, the applications of Lloyds
Bank and Lloyds First Western have been considered together and this Order contains the Board's
findings and conclusions with respect to both such
applications.
Notice of the applications, 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
applications and all comments received in light of
the factors set forth in § 3(c) of the Act (12 U.S.C.
1842(c)).
Lloyds Bank, with total consolidated assets of
approximately $13.4 billion, 1 operates over 2,300
branches throughout England, Wales and the
Channel Islands and, with its many subsidiary and
associated companies, provides a comprehensive
range of worldwide banking and financial services.
Lloyds Bank and its banking subsidiaries control
approximately $12.4 billion of deposits making
Lloyds Bank the fourth largest commercial bank
in Great Britain. Lloyds & Bolsa International
Bank, Limited, London, England, a wholly-owned
1
All banking and financial data pertaining to Lloyds Bank
and its subsidiaries are as of December 31, 1972 and reflect
a conversion rate of £ 1 = $ 2 . 3 4 6 5 .
subsidiary of Lloyds Bank, engages in banking
activities in New York City through a branch
office, which holds approximately $362 million of
deposits. Lloyds Bank and its subsidiaries have
no other banking offices in the United States.
Bank, which operates 96 offices throughout
California, is the eighth largest commercial bank
in the State as it holds $1.1 billion of deposits
representing 1.7 per cent of the total commercial
bank deposits in the State. 2 Since Lloyds Bank
and its subsidiaries do not compete with Bank in
any of the relevant banking markets in California
which Bank serves, consummation of the proposal
would eliminate no existing competition, nor
would it have a significant effect on the concentration of banking resources in any relevant area.
Although Lloyds Bank could enter any of the
local banking markets in California served by
Bank either de novo or through the acquisition of
a smaller bank, the acquisition of Bank by Lloyds
Bank would not have an adverse effect on potential
competition because consummation of the proposal would not give Lloyds Bank a dominant
share of the banking resources in any market
served by Bank, nor would it appear to foreclose
the entry of other banking organizations into any
such markets. Moreover, it appears that consummation of the proposal may increase competition,
as affiliation with Lloyds Bank should make Bank
a stronger and more vigorous competitor of other
California banks in local banking markets
throughout the State. Accordingly, the Board concludes that competitive considerations are consistent with approval of the applications.
The financial and managerial resources and the
future prospects of Lloyds Bank and its subsidiaries appear satisfactory. Since Lloyds First Western is a nonoperating corporation organized for the
sole purpose of acquiring Bank, its prospects
depend entirely upon those of Bank. The financial
condition and future prospects of Bank appear
satisfactory in view of the twofold commitment
of Lloyds Bank through Lloyds First Western to
inject an additional $10 million in capital into
Bank as soon as practicable after consummation
of the proposal, and to increase Bank's capital in
the future by reducing Bank's level of dividend
payments, which have been high under its present
owners. 3 Though Bank's management is consid2
All banking data for Bank are as of June 30, 1973.
Bank disbursed dividends averaging 6 7 . 8 per cent of net
income in the period 1969-1972.
3
126
ered satisfactory, Bank has suffered from high
management turnover due to several changes in
ownership during the past 12 years and uncertainty
concerning the future ownership of Bank. 4 Approval of the proposed transaction would provide
Bank with needed managerial stability and depth
and would make available to Bank's management
the knowledge and experience of the staff of
Lloyds Bank, especially in the areas of international and wholesale banking, where Bank has not
been an aggressive competitor relative to its size.
In addition, as previously noted, these increased
financial and managerial resources should significantly strengthen Bank's ability to compete with
other California banks. Thus, considerations relating to the financial and managerial resources of
Bank lend weight toward approval of the application. There is no evidence in the record to indicate
that the banking needs of the areas served by Bank
are not being met. However, the proposed acquisition, by increasing the financial and managerial
resources available to Bank, would enable Bank
to offer a wider range of services, particularly in
international and wholesale banking. In retail
banking, Bank would once more be able to open
new branches, thus increasing services and competition in local banking markets throughout the
State. 5 Therefore, the convenience and needs of
4
Bank was established by Western Bancorporation in 1961
pursuant to an agreement with the Antitrust Division of the
United States Department of Justice for the settlement of certain
antitrust litigation then pending against Western Bancorporation. The Board approved this acquisition of Bank, a proposed
new bank, by Western Bancorporation (then named Firstamerica Corporation) in its Order of January 27, 1961 (47
Federal Reserve BULLETIN 157). In 1963, Bank was sold to
Greatamerica Corp., Dallas, Texas, which owned no other
banking organizations. Bank was again sold in 1968 to Worldamerica Investors Corp., its present owner, a wholly-owned
subsidiary of World Airways, Inc., Oakland, California, which
both became one-bank holding companies as a result of the
1970 Amendments to the Act. World Airways, Inc. is a
certified U. S. Supplemental Air Carrier providing charter
carriage of passengers and cargo in and between the United
States and many foreign countries and apparently has held Bank
primarily as an investment. A proposed merger of Bank into
Wells Fargo Bank, N . A . , San Francisco, California, was
approved by the Comptroller of the Currency on December
20, 1971, conditioned upon divestiture by Wells Fargo Bank,
N . A . of all Bank's northern California banking offices to
another bank approved by the Comptroller. On January 17,
1972, consummation of the merger was enjoined by an antitrust
action instituted by the Antitrust Division of the United States
Department of Justice, which alleged that the transaction would
violate the provisions of the Clayton Antitrust Act. In October,
1972, the merger agreement between Bank and Wells Fargo
Bank, N . A . was terminated due to the inability of the parties
and the Antitrust Division to reach a mutually agreeable settlement.
5
Bank has not opened any new branch offices in California
since 1970.
FEDERAL RESERVE BULLETIN • FEBRUARY 1974
the communities to be served lend some weight
toward approval of the application. It is the
Board's judgment that the transaction would be
in the public interest and that the application
should be approved.
In connection with the present application,
Lloyds Bank has also applied for the Board's
permission to retain its indirect investments in the
voting shares of Balfour, Williamson, Inc., New
York City, and of Export Credit and Marketing
Corporation, New York City ( " E C M C " ) , and of
E C M C ' s wholly-owned subsidiaries Drake
America Corporation, New York City, Drake
America Corporation (P.R.), New York City, and
Export Credit Corporation, New York City. These
matters will be the subject of separate consideration by the Board under § 4(c)(9) of the Act.
On the basis of the record, the applications are
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 San Francisco pursuant to delegated authority.
By order of the Board of Governors, effective
December 10, 1973.
Voting for this action: Chairman Burns and Governors
Brimmer, Sheehan, and Holland. Present and abstaining:
Governor Bucher. Absent and not voting: Governors Mitchell
and Daane.
(Signed)
[SEAL]
CHESTER B .
FELDBERG,
Secretary
the
of
Board.
NORBANK, INC.,
CHICAGO, ILLINOIS
O R D E R D E N Y I N G F O R M A T I O N OF B A N K
HOLDING
COMPANY
Norbank, Inc., Chicago, Illinois, has applied for
the Board's approval under § 3(a)(1) of the Bank
Holding Company Act (12 U.S.C. 1842(a)(1)) of
formation of a bank holding company through
acquisition of 98.9 per cent or more of the voting
shares of Northbrook Trust & Savings Bank,
Northbrook, Illinois ( " 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
LAW DEPARTMENT
the factors set forth in § 3(c) of the Act (12 U.S.C.
1842(c)).
Applicant, a newly-formed corporation with no
operating history, was organized by the principal
shareholder of Bank 1 for the purpose of converting
ownership of Bank from an individual to a corporate basis. Upon acquisition of Bank ($41.3
million of deposits), Applicant would control .09
per cent of the total commercial bank deposits in
Illinois. 2 The proposed sole voting shareholder of
Applicant also owns a controlling voting interest
in Northwestco, Inc., Chicago, Illinois, a registered bank holding company, which owns all of
the outstanding voting shares (less directors'
qualifying shares) of the Northwest National Bank
of Chicago, Chicago, Illinois ("Northwest
Bank"). While Northwest Bank has deposits of
$257.7 million and is the 12th largest bank in
Illinois, the combined deposits of Bank and
Northwest Bank account for less than 1 per cent
of total commercial bank deposits in the Chicago
banking market. In addition, Bank and Northwest
Bank are separated by approximately 16 road miles
and neither bank appears to derive significant
business from the other's service area. 3 Accordingly, the Board concludes that there would be
no significant increase in the concentration of
banking resources in any relevant area and no
significant existing or potential competition would
be eliminated upon consummation of this proposal .
In applications to form one-bank holding companies, the Board has considered significant debt
in acquiring a bank as an adverse circumstance.
Significant acquisition debt may adversely affect
the ability of a holding company to meet the
financial needs of its subsidiary bank. The amount
and maturity of the debt, therefore, must be considered in relation to the ability of the holding
company to service the debt, and the likelihood
that Bank will need capital. The debt factor is then
balanced with other considerations in determining
whether the acquisition would be in the public
interest.
lr
The principal shareholder of Bank, who is also a director
of Bank, presently owns 3 9 , 5 6 0 of the 4 0 , 0 0 0 outstanding
shares of Bank. The remaining 4 4 0 shares of Bank are held
as qualifying shares by the other directors of Bank with the
understanding that they will be sold to the principal shareholder
for sale to the Applicant if the application is approved.
2
All banking data are as of December 31, 1972.
Although each bank is located in Cook County (Central
Chicago SMS A), Bank is located in a suburban area in the
far northern tip of the county, while Northwest Bank is located
on the north central side of Chicago.
127
Applicant, upon consummation of the proposed
transaction, would incur acquisition debt in the
amount of $3,380,000, which is to be repaid with
interest in 12 years with annual principal payments
beginning in 1976. Applicant, in its projections,
proposes to service this debt from no more than
a 50 per cent dividend payout from Bank. These
projections, however, appear optimistic. If earnings growth fails to keep pace with Applicant's
optimistic projections, the percentage of earnings
paid out as dividends of Bank might have to be
increased in order to service Applicant's acquisition debt, and this, in turn, could seriously inhibit
the growth of Bank's capital and have an adverse
effect on Bank's ability to service its relevant
market. In addition, even if Applicant's projections could be considered realistic, the requirements for servicing Applicant's substantial acquisition debt could seriously inhibit growth in Bank's
capital at a rate compatible with its projected asset
growth. These considerations relating to the financial and managerial resources of Applicant
therefore weigh heavily against approval of this
application. It should be emphasized, however,
that these factors in no way reflect upon the present
financial soundness of Bank, nor upon its future
financial condition absent consummation of the
instant proposal.
There is no evidence in the record that the
convenience and needs of the residents of Bank's
service area are not already adequately being
served, nor that approval of the instant proposal
would give rise to any significant public benefits.
Considerations relating to the convenience and
needs of the communities to be served thus lend
no weight toward approval of the application.
On the basis of all of the circumstances of this
case and the facts of record, the Board concludes
that the acquisition debt involved in this proposal
presents adverse circumstances bearing on the financial condition and prospects of Applicant and
Bank. Such circumstances are not outweighed by
any procompetitive factors or by circumstances
relating to the convenience and needs of the communities to be served. Accordingly, approval of
the application is not in the public interest and
the application should be denied.
On the basis of the record, the application is
denied for the reasons summarized above.
By order of the Board of Governors, effective
January 8, 1974.
Voting for this action: Vice Chairman Mitchell and Governors Brimmer, Sheehan, and Holland. Absent and not voting:
128
FEDERAL RESERVE BULLETIN • FEBRUARY 1974
Chairman Burns and Governors Daane and Bucher.
(Signed)
[SEAL]
CHESTER B .
Secretary
FELDBERG,
of the
Board.
FIRST CITY BANCORPORATION
OF TEXAS, INC.,
HOUSTON, TEXAS
O R D E R A P P R O V I N G A C Q U I S I T I O N S OF B A N K S
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 § 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 successors by merger to (1) The
First National Bank of San Angelo, San Angelo,
Texas ( " S a n Angelo B a n k " ) ; and (2) The First
National Bank of Paris, Paris, Texas ("Paris
B a n k " ) . The banks into which San Angelo Bank
and Paris Bank are to be merged have no significance except as a means to facilitate the acquisition
of the voting shares of San Angelo Bank and Paris
Bank. Accordingly, the proposed acquisitions of
the shares of the successor organizations are
treated herein as the proposed acquisitions of the
shares of San Angelo Bank and Paris Bank.
Notice of the applications, 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 none have been timely received.
The Board has considered the applications in light
of the factors set forth in § 3(c) of the Act (12
U.S.C. 1842(c)).
Applicant controls 18 banks with aggregate deposits of $2.4 billion representing approximately
7 per cent of total deposits in commercial banks
in Texas. 1 Acquisition of San Angelo Bank (deposits of $53.4 million) and of Paris Bank (deposits of $31.9 million) by Applicant would not
significantly increase the concentration of banking
resources in Texas.
San Angelo Bank ranks as the third largest bank
in its relevant banking market with approximately
22.5 per cent of deposits in the market. 2 There
is no substantial existing competition between any
1
A11 banking data are as of June 30, 1973, and reflect bank
holding company formations and acquisitions approved by the
Board through November 30, 1973.
2
The relevant banking market for analysis of the acquisition
of the San Angelo Bank is approximated by the San Angelo
SMSA.
of Applicant's banking subsidiaries and San Angelo Bank, nor is there a reasonable probability
of substantial future competition developing between any of Applicant's banking subsidiaries and
San Angelo Bank due to the distances involved
and Texas branching laws. Affiliation of San Angelo Bank with Applicant may enable the former
to become a more vigorous competitor of the
largest bank which controls approximately 36 per
cent of deposits in the market and is presently
affiliated with a large Texas bank holding company.
The Board, in its opinion on the application by
First International Bancshares, Dallas, to acquire
the Citizens First National Bank of Tyler, indicated a concern with the trend toward acquisitions
by the largest holding companies in Texas of
leading banks in secondary SMS As. The acquisition of San Angelo Bank is a marginal case but
does not warrant denial. San Angelo Bank is not
of such an absolute size that the proposed acquisition will significantly contribute to an imbalance
in state structure; nor will the acquisition retard
the development of the smaller holding companies
by removing those larger size banks in secondary
SMSA markets which could serve as principal
members of such smaller organizations.
Paris Bank is the largest bank in its relevant
banking market controlling about 40.5 per cent of
deposits in the market. 3 There is no substantial
existing competition between any of Applicant's
banking subsidiaries and Paris Bank, nor is there
a reasonable probability of future competition
developing between Applicant's banking subsidiaries and Paris Bank due to the distances involved
and Texas branching law. Nor is there any substantial existing competition or probability of substantial competition developing between San Angelo and Paris Bank due to the distance between
the two. Further, Applicant cannot be considered
a probable future entrant into the Lamar County
market since the market is relatively unattractive
as measured by the population and deposits per
banking office ratios, which are considerably lower
than the comparable Statewide averages, and also
due to the low population growth from 1960 to
1970 of Lamar County compared to the population
growth of the State as a whole during that period.
Based on these and other facts of record, the Board
3
The relevant banking market for analysis of the acquisition
of the Paris Bank is approximated by Lamar County. Lamar
County is not classified as a secondary S M S A .
129
LAW DEPARTMENT
concludes that the competitive considerations of
both applications are consistent with approval.
The financial and managerial resources and future prospects of Applicant, its subsidiary banks,
and San Angelo Bank and Paris Bank are generally
satisfactory particularly in view of Applicant's
commitment to add capital to San Angelo Bank,
Paris Bank, and one of its other banking subsidiaries. This factor weighs in support of approval
of both applications. Considerations relating to the
convenience and needs of the communities to be
served are consistent with approval of the applications. The Board concludes that both applications
are in the public interest and should be approved.
On the basis of the record, the applications are
approved for the reasons summarized above. The
transactions shall not be made (a) before the thirtieth calendar day following the effective date of
this Order or (b) later than three months after the
effective date of this Order unless such period is
extended for good cause by the Board or by the
Federal Reserve Bank of Dallas pursuant to delegated authority.
By order of the Board of Governors, effective
January 2, 1974.
Voting for this action: Vice Chairman Mitchell and Governors Daane, Brimmer, and Holland. Absent and not voting:
Chairman Burns and Governors Sheehan and Bucher.
(Signed)
CHESTER
Secretary
[SEAL]
B. FELDBERG,
of the Board.
CONCURRING STATEMENT OF
GOVERNOR DAANE
I concur in the decision of the majority to
approve the applications to acquire San Angelo
Bank and Paris Bank. However, I cannot concur
in the majority's attempt to distinguish its approval
of Applicant's acquisition of San Angelo Bank
from the Board's denial of the application of First
International Bankshares, Inc., Dallas, Texas, to
acquire Citizens First National Bank of Tyler,
Tyler, Texas, from which I dissented. San Angelo
Bank is one of the three leading banks in a secondary SMS A in Texas. Though ranking third in
such SMSA as opposed to the number one rank
of Tyler in its SMSA, there is no significant
difference in their respective market shares nor is
the Tyler SMSA that much more attractive an area
for entry than the San Angelo SMSA. For this
reason, I concur in the result but not the reasoning
by which the result is reached.
FIRST FINANCIAL C O R P O R A T I O N ,
T A M P A , FLORIDA
ORDER D E N Y I N G ACQUISITION OF B A N K
First Financial Corporation, Tampa, Florida, 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 90 per cent or more
of the voting shares of Citizens Bank and Trust
Company ( " Q u i n c y B a n k " ) , Quincy, Florida.
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 controls 15 banks with aggregate deposits of $878.6 million representing about 4.0 per
cent of deposits in commercial banks in Florida. 1
Acquisition of Quincy Bank (deposits of $16.9
million) by Applicant would not significantly increase the concentration of banking resources in
Florida.
Quincy Bank is the second largest among banks
in the relevant banking market, with control of
about 32 per cent of deposits in commercial banks
in the market. 2 Though Applicant is not presently
represented in this market, the Board has today
approved Applicant's acquisition of the third largest bank in the market, Gadsden State Bank. If
the Board also approved the application to acquire
Quincy Bank, consummation of both acquisitions
would result in Applicant having approximately
a 47 per cent share of the market and controlling
two of the four alternative sources of banking
services in the market. The Board considers such
concentration of market power through acquisition
to be undesirable particularly in view of the fact
that the relevant market is not likely to attract
future entry in the reasonably foreseeable future.
The population of the market has declined over
*A11 banking data are as of June 30, 1973, and represent
bank holding company formations and acquisitions approved
by the Board through November 30, 1973. The total of banks
controlled by Applicant does not include Gadsden State Bank,
Chattahoochee, Florida, whose acquisition by Applicant has
been approved by the Board as of this date.
2
The relevant banking market is approximated by Gadsden
County and a small portion of Jackson County, both of which
counties are located in the panhandle area of Florida.
FEDERAL RESERVE BULLETIN • FEBRUARY 1974
130
the last ten years, the per capita income is significantly below that in the State as a whole, and the
population and deposits per banking office ratios
are also lower than Statewide ratios. There is not
a reasonable probability of future entry that would
lessen the concentration of banking resources in
the market that would result from approval of both
the application to acquire Quincy Bank and that
to acquire Gadsden Bank. Based on the facts of
record, the Board concludes that consummation
of the transaction herein would have a substantially
adverse effect on competition in the market.
The financial and managerial resources and future prospects of Applicant, its subsidiary banks,
and Bank are regarded as generally satisfactory
and consistent with approval of the application.
However, these factors do not outweigh the substantial adverse effects that would result from
consummation of this transaction. Applicant's acquisition of Bank would provide Bank with additional capabilities that it might not be able to obtain
on its own. However, these considerations are not
sufficient to outweigh the substantial adverse effects described above. Moreover, these capabilities could probably be obtained through affiliation
of Bank with another banking organization not
presently represented in the market. The Board
concludes that the proposed transaction is not in
the public interest and should be denied.
On the basis of the record, the application is
denied.
By order of the Board of Governors, effective
December 27, 1973.
Voting for this action: Vice Chairman Mitchell and Governors Daane, Brimmer, and Holland. Absent and not voting:
Chairman Burns and Governors Sheehan and Bucher.
[SEAL]
(Signed) THEODORE E . ALLISON,
Assistant Secretary of the Board.
THE JACOBUS C O M P A N Y AND INLAND
FINANCIAL C O R P O R A T I O N ,
M I L W A U K E E , WISCONSIN
ORDER APPROVING ACQUISITION OF B A N K
The Jacobus Company ( " J a c o b u s " ) and its 43.1
per cent owned subsidiary, Inland Financial Corporation ( " I n l a n d " ) both of Milwaukee, Wisconsin, which are bank holding companies within the
meaning of the Bank Holding Company Act, have
applied for the Board's approval under § 3(a)(3)
to acquire all (except for directors' qualifying
shares) of the voting shares of Heritage Bank of
West Bend, West Bend, Wisconsin ( " B a n k " ) .
The acquisition will be made by Inland and as
a result Jacobus will indirectly acquire voting
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 in light of
the factors set forth in § 3(c) of the Act (12 U . S . C .
1842(c)).
Applicants control three banks with deposits of
approximately $97 million, representing less than
1 per cent of the total deposits of commercial
banks in the State of Wisconsin. (All data are as
of December 31, 1972.) Bank commenced operations on April 30, 1973, and its deposit totals are
as yet insignificant on a State-wide analysis. Bank
was organized by Inland's President in March,
1973. Funds for the acquisition were provided by
an independent third bank which loaned 100 per
cent of the purchase price ($600,000) at the prime
interest rate to Inland's President.
Bank's market area is approximated by upper
two-thirds of Washington County. Applicants have
banking offices within the SMS A, but the nearest
office is 27 miles from Bank. Applicants' nonbanking subsidiaries do not operate in Bank's
relevant market. Even if the affiliation between
Bank and Applicants did not exist, consummation
of the proposed transaction would not appear to
have a significant adverse effect on existing or
future competition between Applicants or their
subsidiaries and Bank. Furthermore, it appears
that Bank's entry into the West Bend banking
market, where the top two of the eight banking
organizations in the area already control about
two-thirds of the deposits held by the area's
commercial banks, will have salutary effects on the
market by adding an additional competitor.
Consummation of the proposed transaction would
appear to have no significant adverse effects on
existing or potential competition in any relevant
area.
Considerations relating to the financial condition, managerial resources and prospects of Applicants, their subsidiary banks, and Bank are
generally satisfactory and consistent with approval
of the applications. In this connection the Board
considered Inland's representations that it will
inject $500,000 of equity capital into its Milwaukee bank subsidiary by December, 1974. Considerations relating to the convenience and needs of
131
LAW DEPARTMENT
the community to be served also are consistent
with approval of the application.
As stated, Inland's President organized Bank in
March, 1973, and now Inland is seeking permission to buy Bank from its President. In a contract
of sale dated March 29, 1973, Inland agreed, in
part, that should the Board not approve this transaction, Inland would reimburse its President for
any loss sustained by him upon sale of Bank within
five years. The Board believes that an indemnification clause in situations such as this offers a
potential for shifting the risk of economic loss to
the holding company, and that such a provision
is an indicium of " c o n t r o l " (as that term is used
in § 2(a)(2) of the Bank Holding Company Act).
In a given case, an examination of the circumstances attending such an agreement could result
in a finding by the Board that an indemnification
agreement and/or other action of an applicant
constitutes control of a bank or other company,
which if occurring without prior approval of the
Board, constitutes a violation of the Act. Upon
study of the facts in the instant case, the Board
finds that no violation of the Act is apparent. Any
applicant before the Board is well advised, however, to avoid use of any indemnification, option,
or other reimbursement provisions in such manner
as to give rise to a question of whether the assumption of risk or other liability assumption may
be found to constitute control over the bank or
other organization involved.
As noted in the Board's Order dated February
25, 1972 (1972 Federal Reserve BULLETIN 306),
approving Applicants' acquisition of the voting
shares of Heritage Bank-Mayfair, Wauwatosa,
Wisconsin, Jacobus has filed a declaration, pursuant to § 4(c)(12) of the Bank Holding Company
Act, that it will cease to be a bank holding company by January 1, 1981. In addition, as the Board
stated in the earlier Order, Jacobus has committed
itself to divest itself of its interest in Inland within
90 days of the passage of enabling legislation
permitting distribution of Inland's shares to Jacobus shareholders on a tax free basis. Also,
Inland has agreed to divest itself of its interest
in Goetze-Haessler-James, Inc., an insurance
company subsidiary, no later than May 31, 1974
if Federal income tax legislation has been enacted
by that date.
On the basis of the record and in view of the
aforesaid commitments, the application is approved for the reasons summarized above. The
transaction shall not be made (a) before the thirtieth calendar day following the effective date of
this Order or (b) later than three months after the
effective date of this Order, unless such period
is extended for good cause by the Board, or by
the Federal Reserve Bank of Chicago pursuant to
delegated authority.
By order of the Board of Governors, effective
January 9, 1974.
Voting for this action: Chairman Burns and Governors
Mitchell, Brimmer, Sheehan, and Holland. Absent and not
voting: Governors Daane and Bucher.
(Signed)
[SEAL]
CHESTER
Secretary
B. FELDBERG,
of the Board.
MID AMERICA B A N C O R P O R A T I O N , INC.,
M E N D O T A HEIGHTS, M I N N E S O T A
ORDER D E N Y I N G ACQUISITION OF B A N K
Mid America Bancorporation, Inc., Mendota
Heights, 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 100 per cent of the voting shares (less
directors' qualifying shares) of The First National
B a n k of L a k e v i l l e , L a k e v i l l e , M i n n e s o t a
("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 none has been timely received.
The Board has considered the application in light
of the factors set forth in § 3(c) of the Act (12
U.S.C. 1842(c)).
Applicant controls eight banks with total deposits of $105 million, representing .9 per cent of
total commercial bank deposits held by Minnesota
banks, and is the sixth largest banking organization
in the State. (All banking data are as of June 30,
1973, and reflect formations and acquisitions approved through December 31, 1973.) The acquisition of Bank ($8 million deposits) would increase
Applicant's share of deposits by less than one per
cent and its rank among the State's banking organizations would not change. It appears, therefore,
that consummation of the proposal would not
result in a significant increase in the concentration
of banking resources in the State.
Bank, the only commercial bank in Lakeville,
is located just within the perimeter of the Minneapolis-St. Paul banking market and, with .1 of
one percentage point of the total deposits in the
market, is one of the smaller banking organizations
132
operating therein. With seven of Applicant's subsidiary banks operating in the relevant market,
Applicant controls 1.5 per cent of market deposits
and is the sixth largest banking organization in
the market. The nearest office of any of Applicant's subsidiary banks to an office of Bank is 13
miles to the north, and it appears that there is no
significant present competition between any of
Applicant's subsidiary banking offices and Bank.
Moreover, in view of the distances involved and
the large number of banking organizations in the
market (over 100), it appears unlikely that consummation of the proposal would foreclose the
development of significant potential competition
between Applicant and Bank. Accordingly, the
Board regards competitive considerations as being
consistent with approval of the application.
The present financial condition and managerial
resources of Applicant are considered to be generally satisfactory. However, in connection with the
proposed acquisition of Bank, Applicant would
incur a debt of approximately $1.5 million in order
to finance the purchase of Bank and to provide
capital for its subsidiary banks. Since becoming
a one-bank holding company in January 1969,
Applicant has acquired seven additional banks,
including three de novo institutions. In the Board's
view, the increased debt position attributable to
the proposed acquisition could impair Applicant's
future ability to meet the capital needs of its
existing subsidiaries, particularly the newly
formed banks. In this connection, the Board has
previously indicated its position that a holding
company should be a source of financial strength
for the banks in its system and that every proposed
acquisition should be closely examined to determine whether consummation thereof would serve
the best interest of the public as well as the banks
in the holding company system. In reviewing such
factors in this case, it is the judgment of the Board
that the financing plan proposed by Applicant does
not provide Applicant with the necessary financial
flexibility to meet the financial needs of its present
subsidiary banks or Bank. Consequently, on the
basis of the facts of this case, the Board finds
that considerations relating to the banking factors
lend weight for denial of the application.
With respect to convenience and needs considerations, there is no evidence in the record that
the major banking needs of the communities to
be served are not being met by existing institutions. Applicant states that it will assist Bank in
expanding its commercial lending activities and
may provide Bank with new banking facilities.
FEDERAL RESERVE BULLETIN • FEBRUARY 1974
While the proposed assistance to be rendered could
possibly enable Bank to better serve the public,
Applicant's ability to provide meaningful assistance to Bank appears doubtful in view of its
proposed debt structure and the need to service
its other subsidiary banks with additional capital.
Moreover, the ability of Applicant's other subsidiaries to continue their present range of banking
services may be hampered because of Applicant's
impaired capacity, under the financing plan
proposed, to provide its subsidiaries with additional capital if the need arises. Thus, the Board
is unable to conclude that considerations relating
to the convenience and needs provide any weight
for approval of the application.
In its consideration of the proposal, the Board
noted that the application contains information
indicating a previous purchase of the stock of Bank
by the Chairman of the Board of Applicant pending a Board determination with regard to the
proposed acquisition. The record also indicates
that there is an agreement between Applicant and
its Chairman whereby the Chairman, if required
to sell the stock to other than Applicant, would
be reimbursed for any loss incurred by such sale
of the bank stock not to exceed 25 per cent of
the contract price, and that Applicant would share
in a portion of any profits resulting from such sale.
As recently noted in another case involving a
similar agreement with an indemnification clause
between an Applicant and one of its officers, the
Board is seriously concerned with proposals that
indicate a holding company, acting through its
officers or directors, may have gained control of
the shares of a bank (or nonbank concern) without
specific Board approval, as required by the Act. 1
Accordingly, to re-emphasize the point earlier
noted by the Board, bank holding companies
should be circumspect in entering into any agreement which might reasonably indicate that the
holding company has in fact acquired a measure
of control over the shares involved, since such
action could subject the company to criminal penalties under § 8 of the Act. On this basis, and
in view of the Board's action herein, Applicant
should desist from taking any direct or indirect
action to control the management or policies of
Bank and should take all appropriate action to
*See Board Order of January 9, 1974, relating to the applications of Jacobus Company and Inland Financial Corporation,
both of Milwaukee, Wisconsin, to acquire Heritage Bank of
West Bend, West Bend, Wisconsin.
LAW DEPARTMENT
133
terminate any control relationship that may exist
with respect to shares of Bank.
On the basis of all the facts in the record, and
in light of the factors set forth in § 3(c) of the
Act, it is the Board's judgment that the proposed
acquisition would result in a bank holding company with financial resources inadequate to service
its debt without undue risk to the financial condition of its present subsidiaries and Bank, and that
such condition could impair the ability of such
banks to meet the needs of the communities
served. Accordingly, the Board concludes that
consummation of the proposal would not be in the
public interest, and that the application should be
denied.
By order of the Board of Governors, effective
January 31, 1974.
Voting for this action: Governors Brimmer, Sheehan,
Bucher, and Holland. Absent and not voting: Chairman Burns
and Governors Mitchell and Daane.
(Signed)
[SEAL]
B. FELDBERG,
Secretary of the Board.
CHESTER
OLD KENT FINANCIAL C O R P O R A T I O N ,
G R A N D RAPIDS, MICHIGAN
ORDER D E N Y I N G ACQUISITION OF B A N K
Old Kent Financial Corporation, Grand Rapids,
Michigan, 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 all
of the voting shares of the successor by merger
to National Lumberman's Bank and Trust Company, Muskegon, Michigan ( " 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 none has been timely received.
The Board has considered the application in light
of the factors set forth in § 3(c) of the Act (12
U . S . C . 1842(c)).
Applicant, which controls four banks with aggregate deposits of approximately $775 million,
representing 3.0 per cent of the total deposits in
commercial banks in Michigan, is the sixth largest
banking organization in the State. Acquisition of
Bank (deposits of $105 million) would increase
Applicant's rank among State organizations to
fifth; however, Applicant's share of the State deposits would be increased by less than one percentage point which would not significantly increase the concentration of banking resources on
a State-wide basis. 1
Bank is the second largest of three banks headquartered in the city of Muskegon (population
44,631), and with 24.3 per cent of total deposits
in the Muskegon-Grand Haven banking market, 2
is the second largest of five banks in that market.
The largest bank in the market and the third in
size, both headquartered in Muskegon, control
respectively, about 32 and 19 per cent of total
deposits in commercial banks in the market. The
fourth and fifth largest banks are both headquartered in Grand Haven and control 13 and 11.5
per cent, respectively, of total deposits in commercial banks in the market. 3
Applicant's lead bank, Old Kent Bank and Trust
Company ( " O l d K e n t " ) , is located in Grand
Rapids, approximately 35 miles east of Bank. Old
Kent, with deposits of about $688 million, is the
largest banking organization in the Grand Rapids
banking market and controls 49 per cent of the
commercial bank deposits located in that market.
While Bank and Old Kent are in banking markets
that are regarded as separate at this time, there
is some existing competition between them. Old
Kent obtains over $ 1 million in deposits and
derives almost $5 million in loans from Bank's
service area and has a high percentage of trust
clients in the Bank's service area. Bank obtains
over $3 million in deposits from Old Kent's service area. This competitive overlap between Bank
and Old Kent is likely to increase in the future.
Consummation of the proposal would thus eliminate existing competition as well as the probability
of increased competition developing between them
in the future.
Also, due to its size, proximity to the relevant
market and recent record of expansion in this area
of Michigan, Applicant is considered to be one
of the most likely entrants into the MuskegonGrand Haven market. Applicant has the resources
1
State banking data are as of June 30, 1973, adjusted to
reflect bank holding company formations and acquisitions approved by the Board through November 1, 1973.
2
The Muskegon-Grand Haven banking market is approximated by the Muskegon-Grand Haven Ranally Metro Area
which consists of most of Muskegon County and the northwest
corner of Ottawa County.
3
Market data are as of June 30, 1972.
134
and expertise to enter the Muskegon-Grand Haven
market de novo. While the city of Muskegon does
not appear particularly attractive for de novo entry,
the Board finds that the relevant market appears
to be capable of supporting new entry. The population per banking office ratio of 6,500 is well
above the State average of 5,495, while the deposits per banking office ratio of $14.5 million is
only slightly lower than the State average of $15.3
million. In addition, at least one section of the
market, the city of Norton Shores, which has
demonstrated rapid growth (with population increase of 25 per cent in the period 1960-70) and
has a population per banking office ratio of 7,432
relative to the State average of 5,495, could support new entry. Within this community, three
branches of other banking organizations are located, but no home offices. Due to the fact that
Michigan law prohibits additional banks from establishing branches there, it would appear that
Norton Shores is a viable area for new entry.
Given these factors, the Board concludes that
consummation of the proposed acquisition would
eliminate the likelihood that Applicant would enter
de novo and thus would have an adverse effect
on potential competition.
The Board is further concerned that Applicant
is in the process of acquiring a position of dominance in a four-county region in western Michigan
(approximated by Kent, Ottawa, and Muskegon
Counties, plus the lower one-third of Newaygo
County). Within this four-county region are located the Grand Rapids, Holland, Fremont and
Muskegon-Grand Haven banking markets. Applicant is the leading organization in the Grand
Rapids market, and has just consummated significant acquisitions in the Holland and Fremont markets, both adjacent to the Grand Rapids market.
Applicant now proposes to acquire the second
largest bank in the Muskegon-Grand Haven market, another market with close proximity to Grand
Rapids. At present, Applicant controls approximately 37 per cent of the total deposits in this
four-county region. Consummation of the present
proposal would increase Applicant's share of deposits in the region to about 42 per cent, whereas,
the second largest banking organization in the
region, Union Bank and Trust Company, Grand
Rapids (deposits of $313.5 million), holds 15.6
per cent of the total deposits. Approval of this
application would amplify the present size
disparity among the banking organizations in this
area of the State, as well as increasing concentration. The Board believes that, were this trend
FEDERAL RESERVE BULLETIN • FEBRUARY 1974
allowed to continue, it would have significantly
adverse effects upon competition in this area of
Michigan. In addition, approval of this acquisition
would remove Bank as an entry vehicle for a bank
holding company not already represented in this
region and thus it would make deconcentration less
likely.
On the basis of the foregoing and other facts
of record, the Board concludes that competitive
considerations relating to this application weigh
sufficiently against approval so that it should not
be approved unless the anticompetitive effects are
outweighed by considerations relating to the financial and managerial resources and future prospects of Applicant and Bank or the convenience
and needs of the communities to be served.
The financial and managerial resources and future prospects of Applicant and its subsidiary
banks are regarded as satisfactory and consistent
with approval of the application. Bank has sound
financial resources and satisfactory management,
but its earnings are below those of other banks
in its size class in Michigan, and prospects for
Bank's management succession are uncertain.
While Applicant has the resources to remedy
Bank's problems, it appears to the Board that those
problems could be remedied by other less anticompetitive means.
Applicant has indicated that it would effect
changes in Bank's services in the areas of its
physical facilities, management, trust services,
international services and services for larger commercial customers. However, there is no evidence
that the banking needs of the relevant market are
not presently being met.
The Board finds that the anticompetitive aspects
of the proposed acquisition are not outweighed by
considerations relating to financial and managerial
resources or the probable effect of the transaction
in meeting the convenience and needs of the community to be served.
On the basis of all relevant facts in the record,
the Board concludes that approval of the proposed
acquisition is not in the public interest, and the
application is denied for the reasons summarized
above.
By order of the Board of Governors, effective
January 25, 1974.
Voting for this action: Chairman Burns and Governors
Mitchell, Brimmer, Bucher, and Holland. Voting against this
action: Governors Daane and Sheehan.
(Signed)
[SEAL]
CHESTER
Secretary
B. FELDBERG,
of the Board.
LAW DEPARTMENT
DISSENTING S T A T E M E N T O F
G O V E R N O R S D A A N E AND S H E E H A N
We dissent from the majority's denial of this
application. In our view, any slight anti-competitive effects that might result from the proposal are
outweighed by the public benefits that would result
from the increased competition and financial expertise that would accompany Applicant's entry
into the Muskegon-Grand Haven banking market.
Bank appears to be a relatively conservative
banking organization that faces problems in the
areas of capital requirements and management
succession. Applicant's acquisition of Bank would
strengthen Bank's equity base, supplement present
management, and significantly improve the competitive climate in the Muskegon-Grand Haven
market.
W e disagree with the majority's conclusion that
significant existing competition would be eliminated between Bank and Applicant's lead bank,
Old Kent, by consummation of the proposed acquisition. Old Kent and Bank compete in different
geographic areas; Grand Rapids and Muskegon are
35 miles apart and both communities are local
economic and financial centers. Old Kent derives
an insignificant amount of deposits and loans from
the Muskegon area, representing less than 0.3 and
1.8 per cent, respectively, of the deposits and
loans in the relevant market. The loans that Old
Kent does obtain from the Muskegon area tend
to be of a commercial and industrial nature and
of such size that they normally cannot be serviced
by the local Muskegon banks. Bank draws only
an insignificant portion of the deposits in the Grand
Rapids banking market. Accordingly, we believe
the only conclusion that can be drawn is that there
is no significant existing competition between
Bank and Old Kent.
While consummation of the proposed acquisition would eliminate the possibility of potential
competition between Applicant and Bank, we do
not believe the development of potential competition to be likely, either by means of Applicant's
entry into the market de novo or by foothold
acquisition. The population of the city of Muskegon has decreased 5 per cent in the past decade
while there has been a 13 per cent population gain
for the State. Other indicators such as the deposits
per banking office ratio ($14.5 million for the
Muskegon market versus $15.3 million for the
State) also suggest the market is not especially
attractive for de novo entry. Further, no opportunity exists for the acquisition of a smaller bank
135
in the city of Muskegon in view of the fact that
the remaining two banks approximate Bank's size.
We find it difficult, therefore, to accept the
hypothesis that Applicant is a likely entrant into
the Muskegon-Grand Haven market and we conclude that there would be no significant elimination
of existing or potential competition as a result of
the proposed acquisition.
The majority has apparently included as a basis
for denial a concept of "regional d o m i n a n c e " by
Applicant in a four-county area of western Michigan, contending that Applicant's presence in the
Holland, Fremont and Grand Rapids market, in
conjunction with the proposed acquisition in Muskegon, would give Applicant a disproportionate
share of the total deposits in the region and adversely affect competition there. We do not consider the four-county region as a relevant area in
which to assess the competitive impact of this
proposal. Concentration ratios are only meaningful
when applied in a market context; and in our view,
the proper geographic area is the Muskegon-Grand
Haven banking market. We are further concerned
that this approach can lead to " g e r r y m a n d e r i n g "
on a case-by-case basis of areas within which
competitive effects are measured. W e therefore
believe the majority's conclusion that the size
disparity between Applicant and the next largest
bank holding company in the region will have
significantly adverse effects on competition in the
region to be an improper basis for denial.
We believe the competitive implications of the
proposed acquisition should be viewed in terms
of developments in Michigan's banking structure.
In recent years, Michigan has undergone significant structural changes in its major markets as
bank holding companies have expanded from their
local markets into neighboring financial centers.
We expect this movement to continue as it has
in other States such as Florida, Texas and Missouri. In our judgment, Grand Rapids, as Michigan's second largest metropolitan area, would be
a likely target for a host of new entrants made
up of the State's largest banking organizations.
Two major Michigan bank holding companies are
either presently or soon to be significant competitors in that market. Entry into other banking markets in western Michigan is also likely as other
organizations expand. Accordingly, we disagree
with the majority's conclusion that consummation
of the proposed acquisition would have adverse
effects on competition in this area of western
Michigan.
We find significant public benefits associated
136
FEDERAL RESERVE BULLETIN • FEBRUARY 1974
with this proposal. T h e financial and managerial
expertise of Applicant, as one of the State's leading organizations, should assist Bank in the expansion of its business and consumer loans. Applicant has already agreed to inject substantial
capital into Bank to bring it up to the level of
other banks in its size class in Michigan. Further,
Applicant will provide additional expertise to Bank
in the areas of commercial and f a r m lending and
international services. In addition, other banking
factors clearly add to the case for approval.
For the foregoing reasons, we conclude that the
benefits to the public to be derived f r o m this
proposal outweigh any slight adverse effects on
competition. Accordingly, we would approve this
application.
ORDERS UNDER SECTION 4(c)(8) OF
BANK HOLDING COMPANY ACT
THE CITIZENS AND SOUTHERN NATIONAL
BANK, CITIZENS AND SOUTHERN HOLDING C O M P A N Y , A T L A N T A , G E O R G I A
O R D E R D E N Y I N G A C Q U I S I T I O N OF ISON
FINANCE
CORPORATION
The Citizens and Southern National Bank and
Citizens and Southern Holding C o m p a n y , its subsidiary, both of Atlanta, Georgia, and both bank
holding companies within the meaning of the Bank
Holding C o m p a n y Act, have applied for the
B o a r d ' s approval, under § 4(c)(8) of the Act and
§ 225.4(b)(2) of the B o a r d ' s Regulation Y , to
acquire shares of Ison Finance Corporation
( " C o m p a n y " ) , Atlanta, Georgia.
Notice of the applications, affording opportunity
for interested persons to submit c o m m e n t s and
views on the public interest factors, has been duly
published (38 Federal Register 22826). T h e time
for filing c o m m e n t s and views has expired, and
none has been timely received.
The Citizens and Southern National Bank
( " B a n k " ) is the largest banking organization in
the State of Georgia and in the Atlanta market
area, with total market deposits of $ 1 . 3 billion. 1
C o m p a n y is engaged in the consumer finance
and consumer sales finance business, operating
seven offices in Florida, seven in A l a b a m a , two
in North Carolina, t w o in Georgia, one in South
Carolina, and one in Louisiana. It had outstandings
b a n k i n g data are as of December 31, 1972. Included in
these figures are the deposits of Bank and subsidiaries, including "five per cent affiliates" of Citizens and Southern Holding
Company.
amounting to $ 1 2 . 6 million as of year-end 1972.
C o m p a n y ' s activities are of the type determined
by the Board to be closely related to banking (12
CFR 2 2 5 . 4 (a)(1)).
C o m p a n y maintains an office in Fulton County
which is part of the Atlanta market. 2 That office
had $ 0 . 4 million in loans outstanding as of December 31, 1972, representing only 0 . 3 7 per cent
of total direct consumer finance c o m p a n y loans
outstanding in that area on that date. Bank and
its subsidiaries held direct consumer loans and
consumer paper outstanding of $ 6 6 . 5 million
deriving f r o m the Atlanta area at year-end 1972,
representing approximately 44 per cent of bank
consumer credit in the Atlanta market. H o w e v e r ,
if consumer loans by consumer finance companies
and credit unions are considered as well as those
by banks, B a n k ' s market share roughly approximates 17 per cent, and C o m p a n y ' s 0 . 1 per c e n t . 3
H e n c e , consummation of the proposed transaction
would not significantly increase Applicants' market share in the Atlanta area.
Applicants state that the Georgia consumer finance c o m p a n y licensing authority is unlikely in
the near future to grant licenses to new consumer
finance offices due to a backlog of license applications and contend that therefore their ability to
expand their consumer loan activities through de
novo m e a n s is restricted. Applicants' contention
notwithstanding, Bank and its indirect banking
subsidiaries are already present in the Atlanta
market and have substantial m e a n s available to
increase their consumer lending activities in that
area. H o w e v e r , any adverse effect consummation
of the proposed transaction m a y have on future
competition in consumer lending in the area would
not be significant in view of the fact that individual
borrowers in the Atlanta area may seek consumer
loans f r o m more than 80 consumer finance companies with 249 offices, 68 State-chartered credit
unions, and 56 commercial banks in the area.
T h e M a c o n office of C o m p a n y held $ 1 . 3 million
in outstandings at year-end 1972. Only $0.4 million of that total represented direct consumer
loans, and the remainder consisted of purchased
consumer paper. C o m p a n y originated approximately 2 per cent of total direct consumer loans
outstanding held by consumer finance companies
2
T h e Atlanta market is approximated by Fulton, DeKalb,
Gwinnett, Clayton, and Cobb Counties.
3
These market shares are computed from a total that includes
bank purchases of consumer paper but does not include consumer finance company purchases of consumer paper, data for
which is unavailable.
LAW DEPARTMENT
in the Macon area at year-end 1972 (roughly 1
per cent 4 of total consumer credit 5 outstanding in
the area). Seven branches of Bank located in Bibb
County, in which the City of Macon is located,
held $9.8 million in consumer credit outstanding
as of that date, representing 49 per cent of bank
consumer credit in that County and approximately
24 per cent 4 of total consumer credit outstanding
in that County. Bank apparently ranks thereby as
the largest consumer lender in the Macon area.
It is estimated that the aggregate market shares
of the four largest consumer lenders in the Macon
area amount to 51 per cent. 4 Although in another
context the amount of existing competition that
would be eliminated by approval of the applications may not be considered significant, where,
as here, an applicant is already dominant in a
concentrated market, its elimination of any independent competitive alternative is viewed as a
significant adverse effect. 6
As Applicants presently do not compete in any
geographic market in which Company competes
outside the State of Georgia, consummation of the
proposed transaction would not adversely affect
existing competition in those markets; nor would
future competition in those markets be adversely
affected as a substantial number of competitors are
represented in each of those markets, and the
proposed transaction may properly be characterized as a "foothold e n t r y " into those markets.
In its consideration of these applications, the
Board has examined certain covenants contained
in five-year employment agreements that, if the
transaction is consummated, would be entered into
with certain principal executives who are also
4
This market share is computed from a total that includes
bank purchases of consumer paper, but does not include
consumer finance company purchases of consumer paper, data
for which is unavailable.
5
The phrase "total consumer credit" as used herein includes
only direct consumer loans originated by banks, consumer
finance companies, and credit unions, and retail consumer
installment paper purchased and held by banks.
6
S e e The Stanley Works v. Federal Trade Commission,
469
F. 2d 498 (2d Cir. 1972), cert, denied, 4 1 2 U . S . 928 (1973).
The Conference Report accompanying the 1970 Amendments
to the Bank Holding Company Act states: "Where a bank
holding company seeks to engage in related activities through
acquisition, in whole or in part, of a going concern, the
elimination of existing competition will be an important negative factor, for other subsidiaries of the bank holding company,
or the company itself, may already be providing the products
and services in the market served by the company to be
acquired. In such circumstances, where the possible benefits
to the public of bank holding company activity are already
being provided, the elimination of an independent competitive
alternative will weigh heavily in the balance against approval."
H.R. Rep. No. 9 1 - 1 7 4 7 , 91st Cong., 2d Sess., 17 (1970).
137
shareholders, but apparently not the sole shareholders, of Company. The covenants are to the
effect that the respective executives refrain from
competing with Applicants during the terms of
their employment. The Board has found that such
covenants are reasonable in scope, duration, and
geographic area. T w o employment agreements,
however, contain additional covenants to the effect
that the respective executives would refrain from
competing with Applicants for an additional seven
years after termination of employment. The record
does not suggest that the executives who would
enter into such covenants would be privy to information that could be characterized as trade or
business secrets of Company; nor does it suggest
that the duration of such covenants would be
necessary to protect the good will of Company.
Courts have repeatedly refused to enforce such
post-employment covenants entered into by employees of consumer finance companies where
such covenants are of greater duration than is
necessary to protect a legitimate interest of the
employer. 7 In addition, where a post-employment
covenant binds a management employee whose
duties are not such as to bring him into substantial
contact with its customers, the covenant, in the
absence of protection of trade or business secrets,
would not be enforced by the courts. 8 Further,
even if the covenants are viewed as ancillary to
the proposed purchase of shares of Company by
Applicant, the Board finds that the durations of
the covenants are longer than necessary to protect
the good will proposed to be acquired. Since the
Board finds that the respective post-employment
covenants in the instant case are not necessary to
protect a legitimate interest of Applicants as purchasers or as employers, the Board concludes that
such covenants are in restraint of trade and therefore constitute a significant adverse factor in its
consideration of the applications.
There is no evidence in the record indicating
that consummation of the proposed transaction
would result in any unfair competition, conflicts
of interests, or unsound banking practices. It is
7
S e e United Loan Corporation
of Tampa v. Weddle,
11
So. 2d 629 (Fla. 1955); Tawney v. Mutual System of Maryland, 47 S. 2d 327 (Md. 1946); Securities Acceptance
Corporation v. Brown, 106 N . W . 2d 4 5 6 (Neb. 1960); Personal
Finance Co. of Lincoln v. Hynes, 265 N . W . 541 (Neb. 1936);
Household Finance Corporation
v. Sutton, 43 S.E. 2d 144
(W. Va. 1947).
8
Harry Livingston,
Inc. v. Macher, 54 A. 2d 169 (Del.
1947); Menter Co. v. Brock, 180 N . W . 553 (Minn. 1920);
Milwaukee Linen Supply Co. v. Ring, 246 N . W . 567 (Wise.
1933); Mutual Loan Co. v. Piece, 65 N . W . 2d 405 (la. 1954).
138
FEDERAL RESERVE BULLETIN • FEBRUARY 1974
anticipated that Company's affiliation with Applicants would result in the removal of certain limitations that the management of Company has imposed upon the amounts that may be loaned to
individual consumers in single transactions and
upon the types of loans made by Company. Applicants have stated that, as their subsidiary,
Company would make loans to individual creditworthy customers up to the legal limits permitted
by State law and would provide mobile home,
small appliance, and second mortgage loans, in
addition to the types of consumer loans presently
made by Company. These increases in service and
the indirect increase in competition that would
result therefrom, as well as the increased availability of financial resources and thereby lendable
funds that the proposed affiliation is expected to
provide, constitute benefits to the public. However, in the Board's judgment, these expected
benefits do not outweigh the adverse effects upon
competition noted above.
Accordingly, the applications are hereby denied.
By order of the Board of Governors, effective
January 2, 1974.
Voting for this action: Chairman Burns and Governors
Mitchell, Brimmer, Sheehan, Bucher, and Holland. Absent and
not voting: Governor Daane.
(Signed)
CHESTER
Secretary
[SEAL]
B. F E L D B E R G ,
of the Board.
C O N C U R R I N G S T A T E M E N T OF
GOVERNOR
BRIMMER
I would deny the applications by The Citizens
and Southern National Bank and Citizens and
Southern Holding Company to acquire Ison Finance Corporation. My decision is based on the
existence of covenants not to compete contained
in the proposed employment contracts between
Applicants and principal executives of Ison. Two
individuals have agreed, for a seven-year period
following termination of their employment, not to
be associated with a competitor of Ison. In effect,
such action would preclude the possibility of these
individuals undertaking to provide an alternative
source of consumer finance services in those markets in which Applicants would offer such services. The majority has considered whether these
particular covenants are reasonable in duration
and—finding that they are not—has concluded that
the covenants are not in the public interest. In my
view, such an analysis is not necessary to conclude
that a particular covenant not to compete violates
the public interest. A covenant not to compete,
by definition, is anticompetitive, and, in my judgment, that adverse effect cannot be justified as
reasonable. For reasons stated more fully in my
dissents to the application of Orbanco, Inc., to
acquire Far West Security Company (59 Federal
Reserve B U L L E T I N 368-369 (1973)), and the application of CBT Corporation to acquire General
Discount Corporation (59 Federal Reserve BULLETIN 471 (1973)), it is my view such covenants
serve to decrease competition and should not receive the general sanction of the Board that is
implied by the analysis that the Board has given
the particular covenants in this case. I would deny
these applications irrespective of the duration of
the covenants.
IRWIN UNION C O R P O R A T I O N ,
C O L U M B U S , INDIANA
O R D E R A P P R O V I N G A C Q U I S I T I O N OF IRWIN U N I O N
CREDIT INSURANCE
COMPANY
Irwin Union Corporation, Columbus, Indiana,
a bank holding company within the meaning of
the Bank Holding Company Act, has applied for
the Board's approval, under § 4(c)(8) of the Act
and § 225.4(b)(2) of the Board's Regulation Y,
to acquire all of the voting shares of Irwin Union
Credit Insurance Company, Phoenix, Arizona
( " C o m p a n y " ) , a company that will engage de
novo in the underwriting, as reinsurer, of credit
life and credit accident and health insurance in
connection with extensions of credit by Applicant's banking subsidiary. Such activities have
been determined by the Board to be closely related
to banking (12 CFR 225.4(a)(10)).
Notice of the application, affording opportunity
for interested persons to submit comments and
views on the public interest factors, has been duly
published (38 Federal Register 20299 and 21825).
The time for filing comments and views has expired, and none has been timely received.
Applicant controls one bank with total deposits
of $120.5 million, representing 0.9 per cent of
total deposits in commercial banks in Indiana, and
is the 18th largest banking organization in the
State. (All banking data are as of December 31,
1972.)
Company will be formed under Arizona law as
a limited capital stock life insurance company. As
Company will be qualified to underwrite insurance
directly only in Arizona, its activities will be
limited to acting as reinsurer of credit life and
139
LAW DEPARTMENT
credit accident and health insurance policies made
available in connection with extensions of credit
by Applicant's banking subsidiary. Such insurance
will be directly underwritten by an insurer qualified to underwrite in Indiana and will thereafter
be assigned or ceded to Company under a reinsurance agreement. Certain larger policies will be
" r e t r o c e d e d " or " r e a s s i g n e d " in part back to the
insurer by Company so as to avoid Company being
exposed to liabilities in excess of those permitted
by Arizona law. 1
Credit life and credit accident and health insurance is generally made available by banks and
other lenders and is designed to assure repayment
of a loan in the event of death or disability of
a borrower. Applicant also proposes to underwrite
joint credit life insurance. The Board has previously permitted such insurance to be underwritten when the credit extension was dependent upon
the income of both the husband and wife. 2 The
Board finds that joint credit life insurance, like
other forms of credit life insurance, is offered in
connection with an extension of credit and is
designed to assure repayment of an extension of
credit in the event of death of a co-signer or
co-maker of a note. Since each of the co-signers
or co-makers may be individually responsible for
repayment of the credit extension, the Board finds
insurance covering each to be directly related to
an extension of credit. Accordingly, the Board has
concluded that the sale and underwriting of joint
credit life insurance is directly related to an extension of credit when both of the insured parties are
co-makers or co-signers of the note issued in
connection with the extension of credit.
In connection with its addition of credit life
underwriting to the list of permissible activities
for bank holding companies the Board stated:
To assure that engaging in the underwriting of credit life and
credit accident and health insurance can reasonably be expected
to be in the public interest, the Board will only approve
applications in which an applicant demonstrates that approval
will benefit the consumer or result in other public benefits.
Normally such a showing would be made by a projected
reduction in rates or increase in policy benefits due to bank,
holding company performance of this service.
made available by Applicant's banking subsidiary
will reduce the rates for credit life insurance and
credit accident and health insurance by amounts
ranging between 5 and 15 per cent depending upon
the specific coverage being offered. The Board
believes the reduced cost of credit life and credit
accident and health insurance is procompetitive
and is in the public interest. The Board concludes
that such public benefits outweigh any possible
adverse effects of approval of the application.
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 §
4(c)(8) is favorable. Accordingly, the application
is hereby approved. This determination is subject
to the conditions set forth in § 225.4(c) of Regulation Y and to the Board's authority to require
such modification or termination of the activities
of a holding company or any of its subsidiaries
as the Board finds 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.
By order of the Board of Governors, effective
November 12, 1973.
Voting for this action: Chairman Burns and Governors
Mitchell, Daane, Brimmer, Bucher, and Holland. Absent and
not voting: Governor Sheehan.
(Signed)
ORDER APPROVING R E T E N T I O N OF
Board.
INVESTMENT
IN B A L F O U R , W I L L I A M S O N , I N C . , EXPORT CREDIT
MARKETING
CREDIT
TENTION
CORPORATION,
CORPORATION
AND
OF INVESTMENT
AND
EXPORT
DISAPPROVING
IN
DRAKE
RE-
AMERICA
CORPORATION A N D DRAKE AMERICA
CORPORATION
1
The.maximum amounts which may be insured by a limited
capital stock life insurance company under Arizona law are
$3,000 on any one life and $5,000 on any total disability claim.
2
Application of Northwest Bancorporation to acquire Banco
Credit Life Insurance Company (38 F.R. 14205).
FELDBERG,
of the
LLOYDS BANK LIMITED,
LONDON,ENGLAND
AND
Applicant has stated that Company and the direct
underwriter in Indiana which issues the credit life
and credit accident and health insurance policies
CHESTER B .
Secretary
[SEAL]
(P.R.)
Lloyds Bank Limited, London, England ("Lloyds
B a n k " ) , has applied for the Board's permission
to retain indirectly all of the voting shares of
Balfour, Williamson, Inc. New York City
140
( " B W " ) , 1 and to retain indirectly approximately
46.6 per cent of the voting shares of Export Credit
and Marketing Corporation, New York City
( " E C M C " ) , and of E C M C ' s wholly-owned subsidiaries Export Credit Corporation, New York
City ( " E C C " ) , Drake America Corporation, New
York City ( " D r a k e " ) , and Drake America Corporation (P.R.), New York City ( " D r a k e P . R . " ) ,
if Lloyds Bank becomes a bank holding company. 2
Lloyds Bank has received the Board's permission to become a bank holding company through
the acquisition of up to 100 per cent of the voting
shares of First Western Bank & Trust Company,
Los Angeles, California. Upon consummation of
that transaction, Lloyds Bank will be a foreign
bank holding company within the meaning of §
225.4(g)(l)(iii) of Regulation Y.
BW is principally engaged in financing imports
and exports to and from the United States. BW
represents foreign buyers of goods manufactured
or produced in the United States and temporarily
finances their purchases through a line of credit
or on open account. In some cases, BW performs
a similar function between buyers and sellers
within a foreign country or between two foreign
countries. Pursuant to its financing the purchases
of foreign buyers, BW will also often arrange
directly the shipment of goods from the United
States. BW also finances imports by United States
firms and corporations from foreign manufacturers
and suppliers. Import financing is normally done
pursuant to a credit agreement between BW and
the domestic purchaser. Such financing sometimes
includes loans or credit for working capital purposes. 3
E C M C owns all of the issued and outstanding
B a l f o u r , Williamson, Inc., N e w York City, is a whollyowned subsidiary of Balfour, Williamson & Co., Ltd., London, England, which in turn is a wholly-owned subsidiary of
Lloyds & Bolsa International Bank, Ltd., London, England,
which is wholly-owned by Lloyds Bank.
2
Export Credit and Marketing Corporation, New York City,
is a wholly-owned subsidiary of London America Finance
Corp., Ltd., London, England ( " L A F C " ) . Forty per cent of
the outstanding voting shares of LAFC are owned by Lloyds
& Bolsa International Bank, Limited, London, England, which
is wholly-owned by Lloyds Bank. An additional 4 0 per cent
of the outstanding voting shares of LAFC are owned by
Industrial & Commercial Finance Corp., London, England,
15.6 per cent of whose voting shares are owned by Lloyds
Bank. Consequently, Lloyds Bank indirectly owns approximately 4 6 . 6 per cent of Export Credit and Marketing Corporation, and its wholly-owned subsidiaries.
3
As a result of a loan default by two importer clients, BW
is temporarily operating three small retail stores in the Boston
area.
FEDERAL RESERVE BULLETIN • FEBRUARY 1974
capital stock of E C C , Drake and Drake P . R . 4
E C M C is a holding company and does not actively
engage in a trade or business for its own account.
ECC finances exports of goods manufactured in
the United States to credit-worthy foreign buyers
with credit terms of up to five years. Most of
E C C ' s export transactions are insured by the
Foreign Credit Insurance Association or through
Eximbank guarantees.
Drake is an export management company which
arranges the foreign sales of products manufactured in the United States by forming a foreign
distribution network for such products. Drake
takes nominal title to the goods and invoices its
foreign agents or distributors at the manufacturer's
cost plus a commission and interest on any credit
extended. Drake's services principally consist of
setting up and evaluating distribution networks,
processing firm orders it obtains from foreign
buyers with the manufacturer, and of expediting
shipments for the manufacturer, thus, functioning,
in effect, as a domestic manufacturer's export
department. Although Drake occasionally arranges
financing as an accommodation to foreign buyers,
this activity is considered as incidental to its primary export management services.
Drake P.R. manages the export and distribution
in Puerto Rico and other United States possessions
of goods manufactured in the United States. The
nature of its activities are identical to those of
Drake described above.
Section 4(c)(9) of the Act provides that the
prohibitions of section 4 shall not apply to the
investments or activities of foreign bank holding
companies that conduct the greater part of their
business outside the United States, if the Board
by regulation or order determines that, under the
circumstances and subject to the conditions set
forth in the regulation or order, the exemption
would not be substantially at variance with the
purposes of the Act and would be in the public
interest.
In § 225.4(g)(2)(iii) of Regulation Y, the Board
has determined that a foreign bank holding company may own or control voting shares of any
company that is not engaged, directly or indirectly,
in any activities in the United States except as shall
be incidental to the international or foreign business of such company. This "incidental t e s t " is
4
ECMC also owns all of the issued and outstanding capital
stock of Kimstone International Corporation, Ltd., a Canadian
corporation ( " K i m s t o n e " ) , which engages in no activities in
the United States. Lloyds may retain its indirect investment
in Kimstone under § 2(h) of the Act.
141
LAW DEPARTMENT
also used by the Board to determine the permissible scope of investments and activities in the
United States for Edge Act corporations under
section 25(a) of the Federal Reserve Act and the
Board's Regulation K and for domestic bank
holding company investments or activities in the
United States under § 4(c)(13) of the Bank Holding
Company Act and § 225.4(f) of Regulation Y. In
the Board's judgment, the activities of B W , except
as noted below, and of ECC are consistent with
the scope of activities permitted to Edge Act
corporations under § 211.7(d)(l)(ii) of Regulation
K 5 and domestic bank holding companies under
§ 4(c)(13) of the Bank Holding Company Act and
§ 225.4(f)(1) of Regulation Y. Accordingly, in the
Board's judgment the indirect investments by
Lloyds Bank in B W and ECC are exempt under
§ 225.4(g)(2)(iii) of Regulation Y and are thus
consistent with the purposes of the Act and in the
public interest.
The Board's approval of the retention of Lloyds
Bank of its investment in BW is, however, subject
to the conditions that, within two years from the
date as of which Lloyds Bank becomes a bank
holding company, BW cease engaging in the activity of arranging directly the shipment of goods
from the United States and BW cease operating
three small retail stores in the Boston area, which
BW is currently operating pursuant to a loan
default by an importer client. Performance of these
activities would give Lloyds Bank a competitive
advantage over domestic bank holding companies.
While an Edge Act corporation does not have the
statutory power to engage in making working
capital loans to importers, other banking and nonbanking subsidiaries of a domestic bank holding
company could engage in making such loans and
thus B W ' s performance of this activity under §
4(c)(9) of the Act would not be substantially at
variance with the purposes of the Act and would
be in the public interest.
In the Board's judgment, E C M C ' s investment
activities as described by Lloyds Bank are consistent with the purposes of the Act and in the
5
Section 211,7(d)(l)(ii) of Regulation K provides as follows:
§ 211.7(d): "It will ordinarily be considered incidental to the
international or foreign business of a [Edge] Corporation for
it to engage in the following transactions in the United States:
(1) Finance the following types of transactions, including
payments or costs (but not expenses in the United States of
an office or representative therein) incident thereto: . . . (ii)
the importation into or exportation from the United States of
goods.''
public interest, except as noted below, and so long
as E C M C does not invest in more than 5 per cent
of the voting shares, or acquire control over the
management or policies, of any company except
with prior Board approval.
The indirect investment by Lloyds Bank in the
shares of E C M C ' s wholly-owned subsidiaries
Drake and Drake P.R. are investments that would
not be permissible for a domestic bank holding
company under § 4(c)(8) of the Act since Drake
and Drake P.R. engage in commercial nonfinancial activities, which are not closely related to
banking or managing or controlling banks as to
be a proper incident thereto. Lloyds Bank has
sought an exemption for E C M C ' s investments in
Drake and Drake P.R. under § 4(c)(9) of the Act
and under § 225.4(g)(2)(iv) of Regulation Y on
the basis that Drake and Drake P.R. principally
engage in the United States in activities "facilitati n g " transactions in international or foreign commerce. 6 In the Board's judgment, however, the
activities of Drake and Drake P.R. do not meet
the conditions for exemption set forth in §
225.4(g)(2)(iv) of Regulation Y. The term "facilitating" is intended by the Board to cover international or foreign banking activities, such as those
carried on by New York "investment compan i e s , " 7 and is not intended to include nonbanking
activities such as the export management activities
of Drake or Drake P.R. In the Board's judgment,
Drake and Drake P.R. are essentially engaged
within the United States in a domestic commercial
business even though that business concerns international transactions.
The Board does not believe that an exception
is otherwise appropriate since it does not appear
the public benefits which are alleged for the retention of Drake and Drake P . R . , namely the promotion of United Stated exports, would outweigh the
policies of the Bank Holding Company Act regarding the separation of banking and commerce.
6
Section 225.4(g)(2)(iv) of Regulation Y provides, with prior
Board consent, that a foreign bank holding company may own
or control voting shares of any company principally engaged
in the United States in "financing or facilitating transactions
in international or foreign c o m m e r c e . " Since Lloyds Bank has
indicated that Drake and Drake P.R. engage only incidentally
in "financing transactions," exemption can only be sought
under "facilitating transactions in international or foreign
commerce."
7
See the Board's Order of February 7, 1972, approving
Banque Nationale de Paris' retention of its investment in all
of the voting shares of French American Banking Corporation,
a New York "investment c o m p a n y " chartered under Section
XII of the N e w York State Banking Law (58 Federal Reserve
BULLETIN
312).
142
Accordingly, on the basis of the foregoing and
other considerations reflected in the record, the
Board hereby denies Lloyds Bank's request for
exemption pursuant to § 4(c)(9) to retain its indirect investments in Drake and Drake P.R.
Based upon the foregoing and other considerations reflected in the record, and based upon
the assumption that Lloyds Bank will become a
bank holding company through the acquisition of
voting shares of First Western Bank and Trust
Company of Los Angeles, California, in accordance with its application approved by the Board,
the Board has made the following determinations:
1. Pursuant to § 4(c)(9) of the Act, the Board
has determined that the continued indirect ownership by Lloyds Bank of all of B W ' s voting shares,
is exempt from the prohibitions of section 4 of
the Act under § 225.4(g)(2)(iii) of Regulation Y,
subject to the following conditions:
(a) That BW cease to engage in the activity of
arranging directly the shipment of goods from the
United States within two years from the date as
of which Lloyds Bank becomes a bank holding
company; and
(b) That BW cease operating three retail stores
in the Boston area within two years from the date
as of which Lloyds Bank becomes a bank holding
company.
2. Pursuant to § 4(c)(9) of the Act and §
225.4(g)(3) of Regulation Y, the Board approves
the continued indirect ownership by Lloyds Bank
of approximately 46.6 per cent of the voting shares
of E C M C , so long as E C M C does not invest in
more than 5 per cent of the voting shares, or
acquire control over the management or policies,
of any company except with prior Board approval,
and subject to the following condition: that Lloyds
Bank dispose of its indirect 46.6 per cent interest
in the voting shares of Drake and Drake P.R.
within two years from the date as of which it
becomes a bank holding company.
3. Pursuant to § 4(c)(9) of the Act, the Board
has determined that the continued indirect ownership by Lloyds Bank of approximately 46.6 per
cent of the voting shares of ECC is exempt from
the prohibitions of section 4 of the Act under §
225.4(g)(2)(iii) of Regulation Y.
The foregoing determinations are subject to the
Board's authority to require reports by, and make
examinations of, holding companies and their
subsidiaries; 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
FEDERAL RESERVE BULLETIN • FEBRUARY 1974
purposes of the Act and the Board's regulations
and orders issued thereunder, or to prevent evasion
thereof; and to revocation by the Board if the facts
upon which it is based change in any material
respect.
By order of the Board of Governors, effective
January 9, 1974.
Voting for this action: Vice Chairman Mitchell and Governors Brimmer, Sheehan, and Holland. Absent and not voting:
Chairman Burns and Governors Daane and Bucher.
(Signed)
[SEAL]
CHESTER
Secretary
B. FELDBERG,
of the Board.
THE CHASE M A N H A T T A N C O R P O R A T I O N ,
N E W Y O R K , N E W YORK
ORDER D E N Y I N G ACQUISITION OF D I A L
FINANCIAL CORPORATION
The Chase Manhattan Corporation, New York,
New York, a bank holding company within the
meaning of the Bank Holding Company Act of
1956, has applied for the Board's approval, under
§ 4(c)(8) of the Act and § 225.4(b)(2) of the
Board's Regulation Y, to acquire all of the voting
shares of Dial Financial Corporation, Des Moines,
Iowa ( " D i a l " ) . Dial through its subsidiaries engages in the activities of making direct consumer
installment loans, secured and unsecured, to individuals (in most instances, by direct customer
contact, in some instances, by mail); selling credit
life, and credit health and accident insurance policies to those individuals; underwriting (in Missouri
only), or re-insurance of, such insurance; selling
to those individuals insurance on property (other
than automobiles) in which a subsidiary of Dial
has a security interest; purchasing installment sales
finance contracts from retailers; and providing data
processing services, including computerized general accounting services, computerized billing
services,
and computerized
delinquent
list
preparation, and the use of computer time, to its
subsidiaries and other consumer credit companies.
Notice of the application, affording opportunity
for interested persons to submit comments and
views on the public interest factors, has been duly
published (38 Federal Register 26832). The time
for filing comments and views has expired; and
the Board has considered all comments received
in light of the public interest factors set forth in
§ 4(c)(8) of the Act (12 U . S . C . 1843(c)(8)).
Applicant, a multi-bank holding company, is,
based upon domestic deposits, the largest banking
organization in New York State, and the second
largest nationally. Applicant controls The Chase
LAW DEPARTMENT
Manhattan Bank, N . A . , New York, New York
( " B a n k " ) , and six other commercial banks which,
collectively, hold $16.4 billion of domestic deposits, 1 representing 15 per cent of total deposits
in commercial banks in New York State. Applicant's total consolidated assets amount to $30.8
billion; assets of Bank represent 99 per cent ($30.4
billion) of this total. 2 During the four-year period
ending December 31, 1972, Applicant's consolidated assets increased by 60 per cent, consolidated
net income by 50 per cent, domestic and foreign
deposits by 50 per cent, and total equity capital
by 23 per cent. Applicant has acquired a number
of firms during this period, including four commercial banks and a mortgage company. Bank has
acquired during this period a substantial mortgage
company and a large factoring company. Applicant's nonbanking activities include mortgage
banking, commercial financing, and the provision
of investment advice and economic information.
It appears that Applicant is one of the leading
financial institutions in the United States and is
experiencing significant growth, both through acquisitions and de novo expansion.
Dial is a profitable enterprise and one of the
nation's major consumer finance companies. It
maintains 461 offices in 33 States. 3 Dial held, as
of December 31, 1972, total gross receivables of
$308.6 million and ranked as the twenty-first largest independent finance company in the nation.
Ninety-three per cent of Dial's total volume of
receivables outstanding represents direct cash
loans to individuals on an installment basis. In
addition to engaging in certain insurance sales and
underwriting activities, Dial has developed a data
processing system linking its branch offices to a
computer center ( " S W I F T " ) . Dial has aggressively marketed SWIFT to other consumer finance
companies, and, as of December 31, 1972, nine
consumer finance companies, including Dial,
operating more than 5,000 consumer finance
offices, approximately 25 per cent of the total
number of consumer finance offices in the United
States, utilized or had contracted to utilize SWIFT.
Only two other corporations compete with Dial
in this line of commerce, and Dial apparently is
the leading supplier in the market for such computer services.
1
Deposit data as of June 30, 1973.
2
Data as of December 31, 1972.
3
Data as of December 7, 1973.
143
The 1970 Amendments to the Act require that
the Board, in acting on an application under §
4(c)(8), consider whether the performance of a
particular activity by an affiliate of a bank holding
company " c a n reasonably be expected to produce
benefits to the public, such as greater convenience,
increased competition, or gains in efficiency, that
outweigh possible adverse effects, such as undue
concentration of resources, decreased or unfair
competition, conflicts of interests, or unsound
banking practices." This balancing test necessitates a positive showing of public benefits, outweighing the " p o s s i b l e " adverse effects of any
proposed acquisition, before an application may
be approved. Applicant must bear this burden.
The relevant service line to be considered in
evaluating the competitive effects of this proposal
is the making of personal installment loans. As
noted, about 93 per cent of Dial's outstandings
were in this service line at year-end, 1972. Applicant, through its banking subsidiaries, makes personal installment loans in various local markets
in New York State. The Board has previously
considered whether consumer finance companies
compete with commercial banks in the area of
personal loans to individuals, and has concluded
that such competition does exist. 4 Dial presently
does not operate any office in the local markets
served by Applicant's subsidiary banks. However,
Dial does solicit moderate-sized personal loans by
mail and, as of December 31, 1972, thereby held
receivables of approximately $143,000 deriving
from the service areas of Applicant's subsidiary
banks. The competition existing between Applicant and Dial that would be eliminated upon consummation of the proposed transaction would be
only slight.
With respect to the question of whether consummation of the proposal would eliminate any
significant competition in the future, the Board
finds that Dial and Applicant are aggressive e x - ,
pansion-minded concerns. Dial opened 25 de novo
offices in 1972, and, in late 1973, estimated that
it would open a total of 37 such offices in 1973.
Irrespective of the instant proposal, Dial contemplates opening 35 to 40 new offices in 1974. With
offices in Pennsylvania, Connecticut, Massachusetts, New Hampshire, and Rhode Island, and no
4
Order dated August 3, 1973, Denying Acquisition of Public
Loan Company by Bankers Trust Corporation, N e w York, N e w
York, 38 Federal Register 21822 (1973), 59 Federal Reserve
BULLETIN 694, 695 (1973).
144
office in New York State, Dial is considered one
of the most likely potential entrants into the
various local markets in New York State. A recent
increase in the maximum loan limit for consumer
finance companies in New York State enhances
the probability of such entry.
Bank is considered one of the leading retail
banks in the nation and operates 185 branch offices
in New York State, having opened eight such
offices in 1972. Bank also opened 15 branch offices
abroad in 1972 and has announced plans to open
30 consumer finance-type offices in the United
Kingdom. 5 As of December 31, 1972, Bank
ranked as the second largest consumer lender in
the New York City market, 6 having made 6.6 per
cent of the total personal loans outstanding in the
market, and ranked as the fourth largest supplier
of check credit, a form of personal loan, in that
market, with an estimated share of 12 per cent.
Applicant has demonstrated its ability to establish
a wide network of offices, to penetrate distant
markets, and to compete successfully in consumer
loan markets.
Applicant thus possesses the resources and expertise to enter the industry outside of New York
State either de novo or through a foothold acquisition and, absent the proposed acquisition, may be
expected to do so. Start-up costs and risks involved
in such entry are easily manageable by an organization possessing the resources commanded by
Applicant.
It thus appears likely that Applicant would,
absent this proposal, expand to compete with Dial
in the future, either de novo or through means of
a foothold entry. On the basis of the facts of record
it also appears likely that Dial would, absent this
proposal, expand to compete with Applicant in the
future. Chase Manhattan Bank is an important
source of personal installment loans in the New
York City market; and while Dial does not have
a large share of personal installment loans in major
metropolitan areas, it does have estimated market
shares in smaller metropolitan areas and rural
markets ranging from 3.1 to more than 16.0 per
cent. With respect to any individual market the
Board cannot determine that such entry is probable
or that any such market is so concentrated that
the elimination of the possibility of such entry
would have substantially adverse effects; however,
5
"Local Banking on an International S c a l e , "
Business
Weekl06,
107 (September 15, 1973).
6
This market is approximated by the five boroughs of New
York City plus Nassau and Westchester Counties.
FEDERAL RESERVE BULLETIN • FEBRUARY 1974
irrespective of the effect on particular markets, it
is clear to the Board that consummation of the
proposal would eliminate a substantial possibility
that Applicant and Dial would compete in the
future. The elimination of such potential competition constitutes an adverse factor under § 4(c)(8)
weighing against approval of the application.
In addition to the above possible adverse effects
of this proposal, Congress has required the Board
to consider under § 4(c)(8) whether bank holding
company acquisitions create a danger of undue
concentration of resources. Congress has pointed
to the dangers involved, particularly those involving concentration of power relating to money and
credit, and has directed the Board to consider all
reasonable ramifications when applying this aspect
of the standards of § 4(c)(8). It is the Board's
judgment that approval of this application, involving acquisition, by one of the nation's largest bank
holding companies, of a major consumer finance
company with a large national network of offices
and a commanding position in the market for
provision of data processing services to the industry, involves the issue of concentration in
credit-granting resources that was within the intent
of Congress in enacting the 1970 Amendments.
While the matter is not free of doubt and is one
on which reasonable differences of judgment may
occur, the Board has concluded that, at a minimum, this factor weighs against approval of the
application.
Applicant has made an attempt to meet its
burden of establishing public benefits which outweigh the adverse effects noted above. One such
public benefit is said to be an expansion of the
financial services offered by Dial to include the
making of small business loans, farm loans, and
first and second mortgage loans. The record does
not show to what extent such services are presently
competitively unavailable in the markets served by
Dial, but it does appear that many consumer finance companies are diversifying into the provision of a wider range of financial services. Dial,
which has demonstrated its ability to respond to
competitive challenges, would appear to be likely
to so diversify irrespective of its affiliation with
Applicant.
Nor would it appear likely that affiliation with
Applicant would make credit and capital more
readily available to Dial. From 1965 to 1972,
while the amount of consumer loans originated by
the consumer finance industry increased by 48 per
cent, the amount of personal loans originated by
Dial increased 103 per cent. Such increase was
145
LAW DEPARTMENT
15.8 per cent in 1972, while loans originated by
the industry increased by only 10.9 per cent. In
1972, Dial's return on investment was 15 per cent,
comparing favorably with an industry average of
12 per cent. The majority of Dial's short term
borrowings come from the issuance of commercial
paper, and such paper carries the highest rating.
As of year-end 1972, Dial had only utilized $4.5
million of its outstanding lines of credit of $61
million. It thus does not appear that affiliation with
Applicant may reasonably be expected to significantly increase the availability of capital or reduce
Dial's cost of funds.
Applicant has cited as a public benefit its plans
to open 150 de novo offices of Dial in the next
three years. However, irrespective of the proposed
affiliation, it appears that Dial would plan to open
a substantial number of new offices each year. In
view of this capability absent the transaction, the
Board does not view the proposed expansion as
a significant public benefit arising from consummation of the proposal.
Applicant has also proposed to implement an
experimental program under which personal loans
would be made with interest rates reflecting the
degree of credit risk assumed. It has proposed a
modest program affecting 10 per cent of the accounts at 10 per cent of the offices of Dial. The
Board regards reduction in rates in the consumer
finance industry as being an appreciable public
benefit. However, it appears that Dial has already
instituted such a program on a limited basis without Applicant's aid and that Dial possesses the
financial resources to expand the program if market
conditions are favorable. Applicant's proposal is
not considered substantially different in effect from
the policy implicit in action already taken by Dial.
While the proposed acquisition would clearly
lead to some public benefits, there is little indication that the above or other claimed benefits are
not likely to be obtained in the absence of the
acquisition. Accordingly, the Board concludes that
overall public benefits asserted by Applicant do
not outweigh the above-described adverse effects.
Based upon the foregoing and other considerations reflected in the record, the Board concludes that the public interest factors the Board
is required to consider under § 4(c)(8) do not
outweigh the probable adverse effects, and that the
application should be denied.
Accordingly, the application is herewith denied.
By order of the Board of Governors, effective
January 30, 1974.
Voting for this action: Chairman Burns and Governors
Mitchell, Brimmer, Bucher, and Holland. Voting against this
action: Governors Daane and Sheehan.
(Signed)
[SEAL]
CHESTER B . FELDBERG,
Secretary
of the
Board.
DISSENTING STATEMENT OF
GOVERNORS D A A N E AND S H E E H A N
In our view, the reasonably expected benefits
to the public from this proposal considerably outweigh any possible adverse effects. We would
therefore approve the application.
We find, as does the majority, that consummation of the proposed transaction would have no
significant adverse effects with respect to existing
competition. W e also agree that, absent the proposal, Applicant and Dial could possibly expand
to compete in some markets across the United
States. However, we ascribe a lesser degree of
probability and significance to this occurring and
little adversity in the elimination of this possibility.
We do not lightly dismiss Applicant's assertion
that it is not "economically feasible or practicable
for it to enter this field de novo." For Chase, as
for many institutions both large and small, the
shortage is often not opportunity or capital but a
shortage of competent managers. The majority's
prejudgment that Chase will now turn to a series
of small acquisitions or de novo entries to achieve
its objectives in the consumer finance field outside
of New York State is conjectural at best; it could
also be conjectured that it might decide to abandon
this market for other opportunities.
Dial is presumed by the Board's majority to be
equally aggressive and entrepreneurial on its own
rather than in combination with Chase. Dial's
record, while excellent, does not seem to support
that conclusion. The Board's majority accepts the
assertion that Dial, on its own, will open 150-200
offices over the next five years. Yet, in the past
five years, Dial had a net gain of 51 offices. On
the other hand, the Applicant has committed itself
to open 150 new offices of Dial in the next three
years. Applicant's commitment would be an assurance, as against at best a questionable possibility,
of a substantial expansion of Dial's activities and
competitive presence and constitutes significant
public benefit particularly in view of the market
shares held by the four largest members of the
industry.
In the vast majority of geographic markets in
which it competes, Dial accounts for less than 2
146
per cent of direct consumer installment loans. In
only 12 markets, none of which includes any major
metropolitan area, does Dial's market share exceed
2 per cent. Its largest market share in those 12
approximated 4.5 per cent, and there were numerous other consumer lenders in those markets.
In this connection, we do not accept the Board's
majority position that the relevant line of service
with respect to which this proposal is to be judged
is the providing of personal installment loans;
rather, the market is the broader one of consumer
lending. Thus viewed, Dial is the 39th largest (the
21st largest independent) firm in an industry in
which the four largest firms control 38 per cent
of the business. Applicant's acquisition can only
serve to deconcentrate the industry. Therefore, we
find no significant possible adverse effects from
the elimination of potential competition between
Applicant and Dial.
The most troublesome issue in this case is that
of undue concentration of resources. Dial is a
relatively large enterprise with a net income of
$7.7 million in 1972. But it is no giant and would
not appear in a list of the larger United States
enterprises. As mentioned before, Dial ranks 39th
in an industry of giants, led by G M A C , Sears
Roebuck, and others qualifying as the largest entities in our society.
With respect to Applicant, banking and finance
are industries where large corporate units exist but
where concentration is limited. Chase Manhattan
Bank, for example, has 2.6 per cent of the nation's
banking deposits. Applicant's share of the nation's
consumer installment business is approximately
three-tenths of one per cent. The addition of Dial's
two-tenths of one per cent of this total cannot have
any significant effects, particularly in an industry
characterized by strong competition among consumer finance companies, commercial banks, sales
finance companies, credit unions, retailers, and
savings and loan associations. No undue concentration of resources would result from approval of
this application. This is particularly true when one
considers the question in the context of particular
product lines and particular markets, rather than
as bigness, per se.
Against these minimal adverse effects we give
considerable weight to the public benefits associated with combining an obviously quite capable
Dial management team with an institution having
the financial resources of Chase Manhattan.
Chase can well afford the risks and costs of rapid
Dial expansion in the period immediately ahead.
Chase has a breadth of activity where profits in
FEDERAL RESERVE BULLETIN • FEBRUARY 1974
some business elements can balance costs and
perhaps losses in others.
Furthermore, expansion or de novo entry in the
consumer finance business can be quite difficult
in some areas of the country. Each location is
licensed and some States have various barriers to
entry including a "public convenience s t a n d a r d . "
In some instances entry can only be obtained
through acquiring an existing license.
While Dial has modestly innovated in its interest
rate practice with lower rates for larger loans quite
recently in a minor number of instances, Dial's
practice in most instances is to charge the maximum interest rate permitted by law—the industry
norm. Given the giant firms in this field, this
conduct can, perhaps, be understood for one of
the smaller participants. As part of the Chase
Manhattan Corporation we anticipate far more
vigorous price competition redounding to the consumers' benefit—given Chase's commitments in
its application.
While Dial has a strong balance sheet, restrictive loan covenants are said to impede expansion.
These limitations would not permit the rapid expansion which the majority suggests that Dial can
undertake alone. But the Chase/Dial combination
could expand much more rapidly than Dial has
in the past five years and we find this to be
significantly procompetitive.
Applicant's management committed itself in its
application not only to rapidly expand the Dial
enterprise but to specifically lower interest rates
in Dial offices and to move aggressively in other
areas. Its application stated:
1. CMC undertakes to establish 150 new Dial offices over a
three-year period thereby increasing service areas and competition.
2. CMC undertakes to establish as a new business of Dial
loans to small businesses and farmers in an amount aggregating
$50 million over a three-year period.
3. CMC undertakes through the Dial offices and facilities to
extend $200 million residential mortgage loans over a threeyear period.
4. CMC commits to offer through the Dial offices to individuals of superior credit standing sufficient loans in amounts of
$7,500 or more as to comprise within a three-year period at
least 15 per cent of Dial's total cash loan portfolio at an average
annual percentage rate of interest of no more than 15 per cent
as opposed to Dial's current average rate on such direct cash
loans outstanding of 17.3 per cent per annum. Loans in
amounts of $7,500 or more presently comprise only 3.3 per
cent of Dial's total direct cash loan portfolio.
5. CMC undertakes to reduce premiums by 5 per cent or to
provide equivalent benefits for accident and health insurance
made available through Dial's affiliate and to reduce premiums
on credit life insurance provided by such affiliate from 2 per
cent to 15 per cent (such reduction if in effect in 1973 would
have reduced premiums charged by approximately $600,000).
6. CMC will undertake a program of research and experi-
147
LAW DEPARTMENT
mentation with new loan products and services to be offered
through Dial offices. CMC's firm intention is to develop means
of better meeting the financial needs of consumers at lower
rates.
The above firm undertakings of Applicant set
forth public benefits which, in our opinion, are
clearly and irrefutably in the public interest. There
is a c o m m i t m e n t to markedly expand D i a l ' s services. T h e program to relate interest rates on personal loans to the degree of risk assumed would
be a helpful step toward breaking d o w n the consumer finance industry practice of generally
charging the m a x i m u m interest rate permitted by
law irrespective of the amount of credit risk.
Applicant's proposed specific program to m a k e
$50 million in loans to small businesses and farmers and $200 million in residential mortgage loans
over a three-year period represents another constructive step. While some of these programs may
be instituted by Dial itself, there is no question
that Applicant's support would m a k e their success
more certain and assure public benefits.
Against these real and substantial public benefits, we see no significant possible adverse effects
and must, therefore, dissent f r o m the B o a r d ' s
action denying this application.
ORDERS UNDER SECTIONS 3 AND 4 OF
BANK HOLDING COMPANY ACT
LINDSBORG BANCSHARES, INC.,
LINDSBORG, KANSAS
ORDER APPROVING FORMATION OF B A N K
HOLD-
ING C O M P A N Y A N D E N G A G I N G IN INSURANCE
A G E N C Y ACTIVITIES
Lindsborg Bancshares, I n c . , Lindsborg, Kansas, has applied for the B o a r d ' s approval under
§ 3(a)(1) of the Act (12 U . S . C . 1842(a)(1)) of
formation of a bank holding c o m p a n y through
acquisition of 81 per cent or more of the voting
shares of The Farmers State B a n k , Lindsborg,
Kansas ( " B a n k " ) .
At the same time, Applicant has applied for the
B o a r d ' s approval under § 4(c)(8) of the Act (12
U . S . C . 1843(c)(8)) and § 225.4(b)(2) of Regulation Y to engage in general insurance agency
activities in Lindsborg, Kansas (population of less
than 5,000). T h e operation by a bank holding
company of a general insurance agency in a community with a population not exceeding 5 , 0 0 0 is
an activity that the Board has previously determined to be closely related to banking (12 CFR
225.4(a)(9)(iii)(a)).
Notices of the receipt of the applications have
been given in accordance with § § 3 and 4 of the
Act, and the time for filing c o m m e n t s and views
has expired and none has been timely received.
The Board has considered the applications in light
of the factors set forth in § 3(c) of the Act, and
the considerations specified in § 4(c)(8) of the Act.
Applicant is a Kansas corporation organized for
the purposes of becoming a bank holding c o m p a n y
through acquisition of B a n k , and operating as an
insurance agency. B a n k , with deposits of $ 6 . 6
million, 1 representing 0 . 1 per cent of the c o m m e r cial bank deposits in the State, is the fifth largest
of eleven banks in M c P h e r s o n County and controls
approximately 8 per cent of total deposits in commercial banks in the county. Bank is the only bank
in Lindsborg. Since the proposal represents a restructuring of B a n k ' s ownership and Applicant has
no banking subsidiaries, acquisition of Bank by
Applicant would not eliminate any existing competition, nor would it appear to have any adverse
effect on other banks or on the development of
future competition in the relevant area. Accordingly, competitive considerations are consistent
with approval of the application.
T h e financial and managerial resources and f u ture prospects of Applicant and Bank are regarded
as satisfactory and consistent with approval. Although Applicant will incur debt in acquiring
B a n k , it appears that income f r o m Bank and insurance agency activities will provide sufficient
revenue to service the debt adequately without
impairing the financial condition of Bank. Considerations relating to the convenience and needs of
the community to be served, with respect to the
acquisition of B a n k , are consistent with approval
of the application. It is the B o a r d ' s judgment that
consummation of the transaction would be in the
public interest and that the application to acquire
Bank should be approved.
Applicant proposes to operate a general insurance agency business on B a n k ' s premises through
the acquisition of the Shogren-Larson Agency and
consolidation with the insurance agency identified
as Farmers State Bank A g e n c y . 2 Approval would
permit Applicant to offer B a n k ' s customers the
convenience of obtaining banking and insurance
services in conjunction with each other. There is
no evidence in the record indicating that consum1
2
Banking data are as of June 30, 1973.
Farmers State Bank Agency is engaged solely in the sale
of credit life insurance. Due to the limited nature of such
insurance activities, it does not appear that subject, acquisition
would have any significant effect on existing or future competition.
148
FEDERAL RESERVE BULLETIN • FEBRUARY 1974
mation of the proposal would result in any undue
concentration of resources, unfair competition,
conflicts of interest, unsound banking practices or
other adverse effects on the public interest.
Based on the foregoing and other considerations
reflected in the record, the Board has determined
that the considerations affecting the competitive
factors under § 3(c) of the Act and the balance
of the public interest factors the Board must consider under § 4(c)(8) both favor approval of the
Applicant's proposal.
Accordingly, the applications are approved for
the reasons summarized above. The acquisition of
Bank shall not be m a d e before the thirtieth calendar day following the effective date of this Order;
nor shall the acquisition of Bank, or the acquisition
of the Shogren-Larson Agency and the consolidation with Farmers State Bank A g e n c y , be made
later than three months after the effective date of
this Order unless such period is extended for good
cause by the Board or by the Federal Reserve Bank
of Kansas City pursuant to delegated authority.
The determination as to Applicant's insurance activities is subject to the conditions set forth in
Section 225.4(c) of Regulation Y and to the
B o a r d ' s authority to require reports by, and make
examinations of, holding companies and their
subsidiaries and to require such modification or
termination of the activities of a bank 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 B o a r d ' s
regulations and orders issued thereunder, or to
prevent evasion thereof.
By order of the Board of Governors, effective
January 30, 1974.
Voting for this action: Chairman Burns and Governors
Daane, Sheehan, Bucher, and Holland. Voting against this
action: Governor Brimmer. Absent and not voting: Governor
Mitchell.
[SEAL]
(Signed) CHESTER B. FELDBERG,
Secretary of the Board.
DISSENTING STATEMENT OF
GOVERNOR BRIMMER
I would deny the applications by Lindsborg
Bancshares, Inc., to acquire the Farmers State
Bank and the Shogren-Larson Agency. A management agreement incident to this proposal contains a covenant not to compete which, by its
terms, prohibits B a n k ' s m a j o r shareholder f r o m
engaging in the banking business within a ten mile
radius of Lindsborg for a period of eight years.
In addition, a covenant not to compete was executed which prohibits certain of B a n k ' s shareholders f r o m engaging in the business of banking
within 50 miles of Lindsborg for a period of five
years. In m y view, such covenants necessarily
inhibit competition and should not be sanctioned
by the Board.
T h e purpose and effect of the covenants in this
case is to preclude the possibility that the restricted
individuals would provide support for an alternative source of commercial banking services in
Lindsborg in the near future. For reasons stated
more fully in the dissent to the B o a r d ' s Order of
September 21, 1973, approving the acquisition by
First A l a b a m a Bancshares, Inc., of Citizens Bank
of Guntersville, such a consequence is inherently
anticompetitive. In order for this application to be
approved, Applicant would have to establish that
the anticompetitive effects of such a covenant " a r e
clearly outweighed in the public interest by the
probable effect of the transaction in meeting the
convenience and needs of the community to be
s e r v e d . " In my view, this has not been established; and the B o a r d ' s approval of this application
cannot be supported.
ORDERS NOT PRINTED IN THIS ISSUE
During January 1974, the Board of Governors approved the applications listed below. The orders
have been published in the Federal Register, and copies of the orders are available upon request to
Publications Services, Division of Administrative Services, Board of Governors of the Federal Reserve
System, W a s h i n g t o n , D . C . 20551.
ORDERS UNDER SECTION 3(a)(1) OF BANK HOLDING COMPANY ACT—
APPLICATIONS FOR FORMATION OF BANK HOLDING COMPANY
Applicant
Exchange National Corporation,
Bank(s)
E x c h a n g e National Bank and Trust
Board action
(effective
Federal
Register
date)
citation
1/31/74
39 F . R . 4 9 6 0
149
LAW DEPARTMENT
ORDERS UNDER SECTION 3(a)(1) OF BANK HOLDING COMPANY ACT—
APPLICATIONS FOR FORMATION OF BANK HOLDING COMPANY—Cont.
Applicant
Ardmore, Oklahoma
Integrity Holding C o m p a n y ,
Wilmington, Delaware
Rice Insurance Agency, Inc.
Strasburg, Colorado
Bank(s)
C o m p a n y , Ardmore, O k l a h o m a
Integrity Finance Corporation and
The First National Bank of
W i l m i n g t o n , Wilmington,
Delaware
The First National Bank
of Strasburg, Strasburg,
Colorado
Board
action
(effective
date)
1/29/74
1/29/74
Federal
Register
citation
2/8/74
39 F . R . 4695
2/6/74
39 F . R . 4695
2/6/74
ORDERS UNDER SECTION 3(a)(3) OF BANK HOLDING COMPANY A C T APPLICATIONS FOR ACQUISITION OF BANK
Applicant
Ameribanc, Inc.,
St. Joseph, Missouri
American B a n k c o r p , Inc.,
Lansing, Michigan
Barnett Banks of Florida, Inc.,
Jacksonville, Florida
The Chase Manhattan Corporation,
N e w York, N e w York
City National Bank Corporation,
M i a m i , Florida
Ellis Banking Corporation,
Bradenton, Florida
First Abilene Bankshares, Inc.,
Abilene, Texas
First Bancorp of N . H . , Inc.,
Exeter, N e w Hampshire
First at Orlando Corporation,
Orlando, Florida
First Wisconsin Bankshares Corporation, M i l w a u k e e , Wisconsin
Southeast Banking Corporation,
M i a m i , Florida
Southwest Bancshares, Inc.,
Houston, Texas
Tennessee Valley B a n c o r p , I n c . ,
Nashville, Tennessee
United Banks of Colorado, I n c . ,
Denver, Colorado
Bank(s)
Marceline State Bank,
Marceline, Missouri
American Bank of Charlotte,
Charlotte, Michigan
The Bayshore State Bank,
Bayshore Gardens ( P . O .
Bradenton), Florida
Chase Manhattan Bank of the
Southern Tier (National
Association, Binghamton,
New York
City Bank of North M i a m i ,
North M i a m i , Florida
Parkway National Bank of Tallahassee, Tallahassee, Florida
Hereford State Bank,
Hereford, Texas
Concord National Bank,
Concord, New Hampshire
Wilton M a n o r s National Bank, and
Lauderdale Beach Bank, both of
Fort Lauderdale, Florida
First Wisconsin Bank of West
Green B a y , A s h w a u b e n o n ,
Wisconsin
Bank of East Orange,
Orlando, Florida
Citizens B a n k ,
Irving, Texas
C o m m e r c e Union Bank Chattanooga, Chattanooga, Tennessee
First State Bank of Fountain,
Fountain, Colorado
Board action
(effective
date)
Federal
Register
citation
1/29/74
39 F . R . 4 6 9 3
2/6/74
39 F . R . 4 9 5 8
2/8/74
39 F . R . 4 6 9 4
2/6/74
1/31/74
1/29/74
1/14/74
39 F . R . 2517
1/22/74
1/31/74
39 F . R . 4 9 5 9
2/8/74
39 F . R . 4 0 0 3
1/31/74
39 F . R . 1544
1/10/74
39 F . R . 1485
1/9/74
39 F . R . 4 6 1 6
2/5/74
1/24/74
1/3/74
1/2/74
1/28/74
1/28/74
39 F . R . 4617
2/5/74
1/29/74
39 F . R . 4 6 9 6
2/6/74
39 F . R . 2520
1/22/74
39 F . R . 1673
1/11/74
39 F . R . 2520
1/22/74
1/14/74
1/2/74
1/10/74
150
FEDERAL RESERVE BULLETIN • FEBRUARY 1974
ORDERS UNDER SECTION 3(a)(3) OF BANK HOLDING COMPANY A C T APPLICATIONS FOR ACQUISITION OF BANK—Cont.
Applicant
United First Florida Banks, Inc.,
T a m p a , Florida
Bank(s)
T h e Peoples Bank of Tallahassee,
Tallahassee, Florida
Board action
(effective
date)
1/10/74
Federal
Register
citation
39 F . R . 2521
1/22/74
ORDER UNDER SECTIONS 3(a)(1) and 3(a)(5) OF BANK HOLDING COMPANY A C T APPLICATION FOR ACQUISITION OF BANK
Applicant
T h e First National Holding
C o m p a n y , O k l a h o m a City,
Oklahoma
Bank(s)
T h e First National Bank and Trust
C o m p a n y of O k l a h o m a City,
O k l a h o m a City, O k l a h o m a
Board action
(effective
date)
1/18/74
Federal
Register
citation
39 F . R . 2006
1/24/74
ORDERS UNDER SECTION 4(c)(8) OF BANK HOLDING COMPANY A C T APPLICATIONS TO ENGAGE IN NONBANKING ACTIVITIES
Applicant
Nonbanking
company
(or activity)
Board
action
(effective
date)
American Fletcher Corporation,
Indianapolis, Indiana
BancOhio Corporation,
Columbus, Ohio
Charg-it of Florida, I n c . ,
Coral Gables, Florida
Midwest Econometrics, Inc.,
C o l u m b u s , Ohio
1/23/74
Bank of Virginia C o m p a n y ,
R i c h m o n d , Virginia
The Chase Manhattan Corporation,
N e w York, N e w York
C o m B a n k s Corporation,
Winter Park, Florida
F & M National Corporation,
Winchester, Virginia
First Pennsylvania Corporation,
Philadelphia, Pennsylvania
Rice Insurance A g e n c y , Inc.,
Strasburg, Colorado
Southwest Bancshares, I n c . ,
Houston, Texas
State Street Boston Financial
Corporation, Boston,
Massachusetts
United Penn Corporation,
Wilkes-Barre, Pennsylvania
Worcester B a n c o r p , Inc.,
Worcester, Massachusetts
Commonwealth Mortgage Company, R i c h m o n d , Virginia
Berkeley Credit Corporation,
N e w Y o r k , N e w York
C o m B a n k s Mortgage C o m p a n y ,
Winter Park, Florida
Peoples Loans, Incorporated,
Luray, Virginia
Cowart Finance Center, I n c . ,
Opelousas, Louisiana
Certain insurance activities
1/31/74
1/25/74
1/23/74
1/24/74
1/30/74
1/25/74
1/29/74
Mortgage Banking
1/14/74
Kentucky Mortgage C o m p a n y ,
Incorporated, Lexington,
Kentucky
Valley Consumer Discount
C o m p a n y , Exeter, Pennsylvania
Wornat Insurance A g e n c y , I n c . ,
Worcester, Massachusetts
1/8/74
1/15/74
1/28/74
Federal
Register
citation
39 F . R . 3862
1./30/7 4
39 F . R . 4 5 1 3
2/4/74
39 F . R . 4958
2/8/74
39 F . R . 3862
1/30/74
39 F . R . 4001
1/31/74
39 F . R . 4 9 6 0
2/8/74
39 F . R . 4 5 1 3
2/4/74
39 F . R . 4695
2/6/74
39 F . R . 2518
1/22/74
39 F . R . 2520
1/22/74
39 F . R . 2645
1/23/74
39 F . R . 4 6 1 8
2/5/74
LAW DEPARTMENT
151
ORDERS ISSUED BY FEDERAL RESERVE BANKS
During January 1974, applications were approved by the Federal Reserve Banks under delegated
authority as listed below. The orders have been published in the Federal Register, and copies of the
orders are available upon request to the Reserve Bank.
Applicant
Bank(s)
Northern States Bancorporation, Inc., Detroit, Michigan and Twin Gates Corporation, Wilmington, Delaware
Allied Bancshares, Inc.,
Houston, Texas
Allied Bancshares, Inc.,
Houston, Texas
Allied Bancshares, Inc.,
Houston, Texas
Allied Bancshares, Inc.,
Houston, Texas
Frost Bank Corporation,
San Antonio, Texas
First at Orlando Corporation,
Orlando, Florida
National Bank of Rochester,
Rochester, Michigan
Clear Creek Bank,
Seabrook, Texas
Deer Park Bank,
Deer Park, Texas
Fairbanks Bank of Houston,
Houston, Texas
First National Bank of
Crockett, Crockett, Texas
Parkdale State,
Corpus Christi, Texas
Coconut Grove Bank,
Miami, Florida and Sunshine State Bank, South
Miami, Florida
Popular Bancshares Corpora- North American Bank of
Tampa, Tampa, Florida
tion, Miami, Florida
Reserve
Bank
Effective
date
Federal
Register
citation
Chicago
1/18/74
39 F.R. 4514
2/4/74
Dallas
1/14/74
Dallas
1/14/74
Dallas
1/18/74
Dallas
1/14/74
Dallas
1.129114
Atlanta
1/18/74
39 F . R . 2804
1/24/74
39 F.R. 2805
1/24/74
39 F.R. 3863
1./30/7 4
39 F.R. 2805
1/24/74
39 F.R. 5229
2/11/74
39 F.R. 3864
1/30/74
Atlanta
1/8/74
39 F.R. 2309
1/18/74
Directory of
Federal Reserve Banks and Branches
Following is a list of the directorates of the Federal Reserve Banks and Branches as at present constituted.
T h e list shows, in addition to the n a m e of each director, his principal business affiliation, the class
of directorship, and the date when his term expires. Each Federal Reserve Bank has nine directors;
three Class A and three Class B directors, w h o are elected by the stockholding m e m b e r banks, and
three Class C directors, w h o are appointed by the Board of Governors of the Federal Reserve System.
Class A directors are representative of the stockholding m e m b e r banks. Class B directors at the time
of their election must be actively engaged in their district in c o m m e r c e , agriculture, or some industrial
pursuit, and m a y not be officers, directors, or employees of any bank. For the purpose of electing
Class A and Class B directors, the m e m b e r banks of each Federal Reserve district are classified by
the Board of Governors of the Federal Reserve System into three groups, each of which consists of
banks of similar capitalization, and each group elects one Class A and one Class B director. Class
C directors m a y not be officers, directors, employees, or stockholders of any bank. One Class C director
is designated by the Board of Governors as Chairman of the Board of Directors and Federal Reserve
Agent and another is appointed Deputy Chairman. Federal Reserve Branches have either five or seven
directors, of w h o m a majority are appointed by the Board of Directors of the parent Federal Reserve
Bank; the others are appointed by the Board of Governors of the Federal Reserve System. O n e of
the directors appointed by the Board of Governors at each Branch is designated annually as Chairman
of the Board in such a manner as the Federal Reserve Bank m a y prescribe.
N a m e s followed by footnote 1 (*) are Chairmen and those by footnote 2 ( 2 ) are Deputy C h a i r m e n .
N a m e s in capital letters indicate new appointments; all others are reappointments.
District 1—FEDERAL RESERVE BANK OF BOSTON
Term
expires
Class
Dec.
A:
MARK C.
WHEELER
WILLIAM M .
FRANCIS
HONEY
N.
SOUTH-
WORTH
Class
1974
1975
1976
B:
W.
GORDON ROBERTSON
ALFRED W .
G.
Class
President, N e w England Merchants National Bank, Boston,
Mass.
President, T h e M a r t h a ' s Vineyard National Bank, Vineyard
H a v e n , Mass.
Chairman of the Board, President, Concord National B a n k ,
Concord, N . H .
31
VAN
Bangor, Maine
1974
SINDERENPresident, T h e Southern N e w England Telephone C o m p a n y , N e w
WILLIAM MILLER
H a v e n , Conn.
President, Textron, Providence,
1975
R.I.
1976
C:
JAMES
S.
LOUIS W .
DUESENBERRY1
CABOT2
K E N N E T H I. G U S C O T T
152
Chairman, Department of E c o n o m i c s , Harvard University, C a m bridge, M a s s .
1974
Chairman of the Board, Cabot Corporation, Boston, Mass.
1975
President, Ken Guscott Associates, Boston, Mass.
1976
District 2—FEDERAL RESERVE BANK OF NEW YORK
Class
Term
expires
Dec. 31
A:
NORMAN
BRASSLER
NEWMAN E.
DAVID
Class
Jr.
B:
WILLIAM S .
JACK B .
SNEATH
JACKSON
MAURICE F.
Class
WAIT,
ROCKEFELLER
Chairman of the Board, Chief Executive Officer, N e w Jersey
B a n k , N . A . , Passaic, N . J .
1974
President, Adirondack Trust C o m p a n y , Saratoga Springs, N . Y . 1975
Chairman of the Board, T h e Chase Manhattan B a n k , N . A . , N e w
York, N.Y.
1976
GRANVILLE
President, Union Carbide Corporation, N e w Y o r k , N . Y .
President, J. C . Penney C o m p a n y , N e w Y o r k , N . Y .
Chairman of the Board, Texaco, N e w Y o r k , N . Y .
1974
1975
1976
Partner, Cravath, Swaine & M o o r e , N e w Y o r k , N . Y .
President, Kennecott Copper Corporation, N e w York, N . Y .
President, Carnegie Corporation of N e w Y o r k , N . Y .
1974
1975
1976
C:
GILPATRIC1
ROSWELL L.
MILLIKEN2
FRANK R .
ALAN
PIFER
BUFFALO BRANCH
Appointed
by Federal Reserve
THEODORE M .
CLAUDE
F.
MCCLURE
SHUCHTER
J. W A L L A C E E L Y
DANIEL G. RANSOM
Appointed
by Board
NORMAN
F.
of
Bank:
President, T h e Citizens National Bank and Trust C o m p a n y ,
Wellsville, N . Y .
President, Chief Executive Officer, Manufacturers and Traders
Trust C o m p a n y , Buffalo, N . Y .
President, Security Trust C o m p a n y of Rochester, N . Y .
President, W m . Hengerer C o m p a n y , B u f f a l o , N . Y .
1974
1975
1976
1976
Governors:
BEACH1
D O N A L D NESBITT
RUPERT WARREN
Vice President, General M a n a g e r , Kodak Park Division, Eastman
Kodak C o m p a n y , Rochester, N . Y .
1974
Owner-Operator, Silver Creek F a r m s , Albion, N . Y .
1975
Trico Products Corporation, Buffalo, N . Y .
1976
District 3—FEDERAL RESERVE BANK OF PHILADELPHIA
Class
A:
JOHN
C.
JOHN H .
TUTEN
HASSLER
T H O M A S L. M I L L E R
Chairman of the Board, Chief Executive Officer, National Central
Bank and National Central Financial Corporation, Lancaster,
Pa.
1974
President, T h e City National Bank and Trust C o m p a n y of Salem,
N.J.
1975
President, Upper Dauphin National B a n k , Millersburg, Pa.
1976
153
154
FEDERAL RESERVE BULLETIN • FEBRUARY 1974
District 3—FEDERAL RESERVE BANK OF PHILADELPHIA—Continued
Term
expires
Dec. 31
Class B:
C.
G R A H A M B E R W I N D , JR.
BERNARD D .
S.
WILLIAM
Class
BROEKER
MASLAND
President, Chief Executive Officer, Berwind Corporation, Philadelphia, Pa.
1974
Executive Vice President, Bethlehem Steel Corporation, Bethleh e m , Pa.
1975
President, C. H . Masland and Sons, Carlisle, Pa.
1976
C:
EDWARD W .
ROBINSON,
E D W A R D J. D W Y E R 1
JOHN
R.
COLEMAN2
JR.President, Provident H o m e Industrial Mutual Life Insurance
C o m p a n y , Philadelphia, Pa.
1974
Chairman of the Board, E S B Incorporated, Philadelphia, Pa.
1975
President, Haverford College, H a v e r f o r d , Pa.
1976
District 4—FEDERAL RESERVE BANK OF CLEVELAND
Class
A:
A.
BRUCE
DAVID
L.
BOWDEN
B R U M B A C K , JR.
EDWARD W .
Class
BARKER
1974
1975
1976
B:
DONALD E .
RENE C .
NOBLE
MCPHERSON
CHARLES Y. LAZARUS
Class
Retired Vice Chairman of the Board, Mellon Bank, N . A . , Pittsb u r g h , Pa.
President, Van Wert National B a n k , Van W e r t , Ohio
Chairman of the Board, Chief Executive Officer, First National
Bank of M i d d l e t o w n , Ohio
Chairman of the Board, Chief Executive Officer, Rubbermaid
1974
Incorporated, Wooster, Ohio
Chairman of the Board, Chief Executive Officer, Dana Corporation, Toledo, Ohio
1975
Chairman of the Board, Chief Executive Officer, F. & R. Lazarus
C o m p a n y , C o l u m b u s , Ohio
1976
C:
SHEPARD1
HORACE A .
OTIS A .
SINGLETARY
ROBERT
E.
KIRBY
2
Chairman of the Board, Chief Executive Officer, T R W Incorporated, Cleveland, Ohio
President, University of K e n t u c k y , Lexington, Ky.
President, Westinghouse Electric Corporation, Pittsburgh, Pa.
1974
1975
1976
CINCINNATI BRANCH
Appointed
E.
by Federal
Reserve
PAUL WILLIAMS
PAUL W .
ROBERT
CHRISTENSEN,
E.
HALL
J O S E P H F. R I P P E
Bank:
Chairman
Ky.
JR.President,
President,
Ohio
President,
of the Board, T h e Second National Bank of Ashland,
1974
T h e Cincinnati Gear C o m p a n y , Cincinnati, Ohio
1975
T h e First National Bank and Trust C o m p a n y , Troy,
1975
T h e Provident B a n k , Cincinnati, Ohio
1976
155
DIRECTORY OF FEDERAL RESERVE BANKS AND BRANCHES
District 4—FEDERAL RESERVE BANK OF CLEVELAND—Continued
CINCINNATI BRANCH—Continued
Appointed
by Board
President, General M a n a g e r , The G . A . Gray C o m p a n y , Cincinnati, Ohio
1974
President, M i a m i University, O x f o r d , Ohio
1975
Vice President, Office Products Division, I B M Corporation,
Lexington, K y .
1976
MARX1
GRAHAM E.
PHILLIP R .
CLAIR F .
of Governors:
Term
expires
Dec. 31
SHRIVER
VOUGH
PITTSBURGH BRANCH
Appointed
by Federal
CHARLES F.
WARD
ROBINSON F.
JERRY
A.
Reserve
BARKER
HALVERSON
M A L C O L M E. L A M B ING, J R .
Appointed
by Board
M.
of
Bank:
President, Gallatin National Bank, U n i o n t o w n , Pa.
1974
Chairman of the Board, Chief Executive Officer, PPG Industries,
Pittsburgh, Pa.
1975
President, The First National Bank and Trust C o m p a n y of
Wheeling, W . V a .
1975
President, T h e First National Bank of Pennsylvania, Erie, Pa. 1976
Governors:
President, Carnegie-Mellon University, Pittsburgh, Pa.
President, Koppers C o m p a n y , Pittsburgh, Pa.
G. J A C K S O N T A N K E R S - President, Consolidated Natural Gas C o m p a n y , Pittsburgh, Pa.
LEY
RICHARD
CYERT
DOUGLAS GRYMES1
1974
1975
1976
District 5—FEDERAL RESERVE BANK OF RICHMOND
Class A.-
EDWARD N .
JOHN N .
LUMPKIN
CLAUDE
Class
HENSON
B:
HENRY
OSBY L.
C.
HOFHEIMER
II
WEIR
ANDREW
Class
President, Farmers and Merchants National Bank of C a m b r i d g e ,
Md.
1974
Chairman, Chief Executive Officer, T h e South Carolina National
Bank, Columbia, S . C .
1975
President, Chairman of the Board, T h e First National Bank of
Asheboro, N . C .
1976
EVANS
L.
CLARK
Chairman, Virginia Real Estate Investment Trust, N o r f o l k , V a . 1974
General M a n a g e r - R e t i r e d , Metropolitan Washington-Baltimore
Area, Sears, Roebuck and C o m p a n y , Kensington, M d .
1975
President, Andy Clark Ford, Princeton, W . V a .
1976
C:
E.
CRAIG W A L L 2
ROBERT
W.
LAWSON,
E. ANGUS P O W E L L
JR. 1
Chairman of the Board, Canal Industries, C o n w a y , S . C .
1974
Senior Partner, Charleston Office, Steptoe and Johnson, Charleston, W . V a .
1975
Chairman of the Board, Lea Industries, R i c h m o n d , Va.
1976
FEDERAL RESERVE BULLETIN • FEBRUARY 1974
156
District 5—FEDERAL RESERVE BANK OF RICHMOND—Continued
Term
BALTIMORE BRANCH
Appointed
by Federal
Reserve
J. PIERRE B E R N A R D
C H A F F I N C H , JR.
J. R .
J. S T E V E N S O N PECK
DOUGLASS ADAMS
Appointed
by Board
of
Bank:
Dec.
31
Chairman of the Board, T h e Annapolis Banking and Trust C o m p a n y , Annapolis, M d .
1974
President, T h e Denton National B a n k , D e n t o n , M d .
1975
Chairman of the Board, Union Trust C o m p a n y of Maryland,
Baltimore, M d .
1976
President, T h e Parkersburg National B a n k , Parkersburg, W . V a . 1976
Governors:
G. HARLOW
W . B A R T O N , JR.
I. E. K I L L I A N
1
JAMES
expires
DAVID
President, West Virginia University, M o r g a n t o w n , W . V a .
1974
President, Barton-Gillet C o m p a n y , Baltimore, M d .
1975
M a n a g e r , Eastern Region, E x x o n Corporation, U . S . A . , Baltimore, Md.
1976
CHARLOTTE BRANCH
Appointed
L. D.
by Federal
Reserve
COLTRANE
III
WILLIAM W .
BRUNER
T H O M A S L. B E N S O N
P L A T O P E A R S O N , JR.
Appointed
by Board
CHARLES
ROBERT
CHARLES
F.
of
Bank:
President, T h e Concord National B a n k , Concord, N . C .
1974
Chairman of the Board, President, First National Bank of South
Carolina, Columbia, S . C .
1975
President, The C o n w a y National B a n k , C o n w a y , S . C .
1976
President, Citizens National Bank in Gastonia, N . C .
1976
Governors:
BENBOW
C. EDWARDS
W. DEBELL1
Senior Vice President, R . J . Reynolds Industries, WinstonSalem, N . C .
1974
President, Clemson University, C l e m s o n , S . C .
1975
General M a n a g e r , North Carolina W o r k s , Western Electric
C o m p a n y , Winston-Salem, N . C .
1976
District 6—FEDERAL RESERVE BANK OF ATLANTA
Class
A:
JACK
SAM
P. K E I T H
I. Y A R N E L L
J O H N T. O L I V E R , JR.
Class
President, First National Bank of West Point, Ga.
1974
C h a i r m a n , American National Bank and Trust C o m p a n y , Chattanooga, Tenn.
1975
President, First National Bank of Jasper, Ala.
1976
B:
U L Y S S E S V . G O O D W Y N Executive Vice President, Southern Natural Resources, Birm i n g h a m , Ala.
1974
GEORGE W. JENKINS
C h a i r m a n , Publix Super Markets, Lakeland, Fla.
1975
R O B E R T T . H O R N B E C K M a n a g e r , Tennessee Operations, A l u m i n u m C o m p a n y of
A m e r i c a , Alcoa, Tenn.
1976
Class C:
G. P A T T I L L O 1
F. E V A N S F A R W E L L
CLIFFORD M. KIRTL A N D , JR.
H.
President, Pattillo Construction C o m p a n y , Decatur, G a .
President, Milliken and Farwell, N e w Orleans, La.
President, Cox Broadcasting Corporation, Atlanta, G a .
1974
1975
1976
157
DIRECTORY OF FEDERAL RESERVE BANKS AND BRANCHES
District 6—FEDERAL RESERVE BANK OF ATLANTA—Continued
BIRMINGHAM BRANCH
Appointed
by Federal
Reserve
Term
expires
Dec. 31
Bank:
President, Chief Executive Officer, T h e First National Bank of
Hunts ville, Ala.
J O H N A L E X A N D E R , J R . President, City National Bank of B i r m i n g h a m , Ala.
LAWRENCE HARRIS
President, Slocomb National Bank, S l o c o m b , Ala.
J O H N M A P L E S , JR.
Executive Vice President, Union Bank and Trust C o m p a n y ,
M o n t g o m e r y , Ala.
W.
EUGENE MORGAN
Appointed
by Board
of
1974
1975
1976
1976
Governors:
C. B A U E R 1
President, South Central Bell, B i r m i n g h a m , Ala.
1974
F R A N K P. S A M F O R D , J R . C h a i r m a n of the Board, Liberty National Life Insurance C o m p a n y , B i r m i n g h a m , Ala.
1975
DAVID MATHEWS
President, University of Alabama, University, Ala.
1976
WILLIAM
JACKSONVILLE BRANCH
Appointed
by Federal
GUY W .
Reserve
BOTTS
J. F R A N C O
W I L L I A M K. D E V E E R
(Vacancy)
MICHAEL
Appointed
by Board
of
H. W . S C H M I D T 1
J A M E S E. L Y O N S
E G B E R T R. BEALL
W.
Vice Chairman of the Board, Barnett Bank of Jacksonville, N .
Jacksonville, Fla.
Chairman of the Board, City National Bank of M i a m i , Fla.
President, First National Bank in Palm B e a c h , Fla.
A.,
1974
1975
1976
1976
Governors:
GERT
Appointed
Bank:
NASHVILLE BRANCH
by Federal Reserve
President, TeLeVision 12 of Jacksonville, Fla.
President, Lyons Industrial Corporation, Winter H a v e n , Fla.
President, Beall's Department Stores, Bradenton, Fla.
1974
1975
1976
Bank:
President, Kingsport National Bank, Kingsport, Tenn.
E. C U R R Y
President, First National Bank of Pulaski, Tenn.
T. S C O T T F I L L E B R O W N , President, First American National Bank of Nashville, T e n n .
BRYAN WOODARD
ROBERT
1974
1975
1976
JR.
F R E D R. L A W S O N
Appointed
by Board
of
E D W A R D J. B O L I N G 1
JOHN
JAMES
C.
TUNE
W.
LONG
President, Blount National Bank of Maryville, T e n n .
1976
Governors:
President, The University of Tennessee, Knoxville, T e n n .
1974
Partner, Butler, M c H u g h , Butler, T u n e and Watts, Nashville,
Tenn.
1975
President, Robertson County Farm Bureau, Springfield, T e n n .
1976
NEW ORLEANS BRANCH
Appointed by Federal Reserve
Bank:
R. M C D O N N E L L
F. L A D D , JR.
J A M E S H. J O N E S
ARCHIE
ERNEST
CHARLES W. McCOY
President, Citizens National Bank, Meridian, Miss.
C h a i r m a n , The Merchants National B a n k , Mobile, Ala.
Chairman of the Board, Chief Executive Officer, First National
Bank of C o m m e r c e , N e w Orleans, La.
Chairman of the Board, President, Louisiana National B a n k ,
Baton R o u g e , La.
1974
1975
1976
1976
FEDERAL RESERVE BULLETIN • FEBRUARY 1974
158
District 6—FEDERAL RESERVE BANK OF ATLANTA—Continued
NEW ORLEANS BRANCH—Continued
Appointed
by Board
FRED ADAMS,
E D W I N J.
of
Governors:
President, Cal-Maine Foods, Jackson, Miss.
President, C a p l a n ' s M e n ' s Shops, Alexandria, La.
JR.
CAPLAN1
(Vacancy)
Term
expires
Dec. 31
1974
1975
1976
District 7—FEDERAL RESERVE BANK OF CHICAGO
Class
A:
FLOYD F.
WHITMORE
EDWARD BYRON
JAY
Class
J.
SMITH
DELAY
President, T h e O k e y - V e r n o n National B a n k , Corning, Iowa
1974
Chairman of the Board, The Northern Trust C o m p a n y , Chicago,
111.
1975
President, Huron Valley National B a n k , Ann Arbor, Mich.
1976
B:
JOHN T .
Executive Vice President, C u m m i n s Engine C o m p a n y , Col u m b u s , Ind.
1974
Chairman of Executive C o m m i t t e e , Oscar Mayer and C o m p a n y ,
M a d i s o n , Wis.
1975
President, Rolscreen C o m p a n y , Pella, Iowa
1976
HACKETT
OSCAR G .
MAYER
PAUL V. FARVER
Class C.WILLIAM H .
PETER B .
FRANKLIN1
CLARK2
ROBERT H. STROTZ
Chairman of the Board, Caterpillar Tractor C o m p a n y , Peoria,
111.
1974
Chairman of the Board, President, T h e Evening N e w s Association, Detroit, Mich.
1975
President, Northwestern University, Evanston, 111.
1976
DETROIT BRANCH
Appointed
by Federal
HAROLD A .
JOSEPH B .
ELGAS
FOSTER
ROLAND A .
ROBERT
Appointed
Reserve
M.
MEWHORT
SURD AM
by Board
of
DEFOE1
J O R D A N B. T A T T E R
President, Gay lord State B a n k , Gay lord, Mich.
1974
President, Ann Arbor Bank, Ann Arbor, Mich.
1975
Director, Consultant, Manufacturers National Bank of Detroit,
Mich.
1975
Chairman of the Board, National Detroit Corporation, Detroit,
Mich.
1976
Governors:
TOM KILLEFER
W. M.
Bank:
Vice President-Finance, General Counsel, Chrysler Corporation,
Detroit, Mich.
1974
Chairman of the Board, D e f o e Shipbuilding C o m p a n y , Bay City,
Mich.
1975
District Horticultural Agent, Cooperative Extension Servi c e - M i c h i g a n State University, Paw P a w , Mich.
1976
159
DIRECTORY OF FEDERAL RESERVE BANKS AND BRANCHES
District 8—FEDERAL RESERVE BANK OF ST. LOUIS
Class
Term
expires
Dec. 31
A:
EDWIN
WM.
S.
E.
Chairman of the Board, First National Bank in St. Louis, M o . 1974
Executive Vice President, 1st National Bank and Trust C o m p a n y ,
Centralia, 111.
1975
President, The City National Bank of M u r p h y s b o r o , 111.
1976
JONES
WEIGEL
R A Y M O N D
C.
B U R R O U G H S
Class
B:
JAMES M .
TUHOLSKI
E D W A R D J.
F R E D I.
Class
SCHNUCK
BROWN,
JR.
President, M e a d Johnson & C o m p a n y , Evansville, Ind.
Chairman of the Board, Schnuck Markets, Bridgeton, M o .
President, Arkansas Foundry C o m p a n y , Little R o c k , Ark.
1974
1975
1976
C:
PEIRCE1
FREDERIC M .
COOPER2
SAM
HARRY M .
YOUNG,
Chairman of the Board, General American Life Insurance C o m p a n y , St. Louis, M o .
1974
President, H u m k o Products, Division of Kraftco Corporation,
M e m p h i s , Tenn.
1975
Melrose Farms, Herndon, Ky.
1976
JR.
LITTLE ROCK BRANCH
Appointed
by Federal
Reserve
Bank:
T H O M A S E. H A Y S , J R .
THOMAS G. V I N S O N
President, First National Bank of H o p e , Ark.
President, First National Bank, Batesville, Ark.
FIELD W A S S O N
President, T h e First National B a n k , Siloam Springs, Ark.
H E R B E R T H . M C A D A M S Chairman of the Board, Chief Executive Officer, Union National
II
Bank of Little R o c k , Ark.
Appointed
by Board
AL
POLLARD
W.
M.
of
1976
Governors:
President, Al Pollard & Associates, Little R o c k , Ark.
1974
President, Arkansas Business Development Corporation, Little
R o c k , Ark.
1975
Chairman of the Board, Southland Building Products, Little
R o c k , Ark.
1976
PIERCE1
ROLAND R.
1974
1975
1975
REMMEL
LOUISVILLE BRANCH
Appointed
HUGH
by Federal
M.
Reserve
Chairman of the Board, First National Bank of Louisville, K y .
President, The American National Bank & Trust C o m p a n y of
Bowling Green, Ky.
President, The Seymour National B a n k , S e y m o u r , Ind.
President, The Scott County State Bank, Scottsburg, Ind.
SHWAB
H E R B E R T J.
SMITH
TOM G . V o s s
HAROLD E.
Appointed
JACKSON
by Board
of
HENDERSHOT1
JAMES H .
DAVIS
STROUBE
1974
1975
1975
1976
Governors:
JAMES C .
WILLIAM H .
Bank:
President, Reliance Universal Incorporated, Louisville, K y .
1974
Chairman of the Board, Chief Executive Officer, Porter Paint
C o m p a n y , Louisville, Ky!
1975
Associate D e a n , College of Science and Technology, Western
Kentucky University, Bowling Green, Ky.
1976
160
FEDERAL RESERVE BULLETIN • FEBRUARY 1974
District 8—FEDERAL RESERVE BANK OF ST. LOUIS—Continued
MEMPHIS BRANCH
Appointed
*
Dec.
by Federal Reserve
L. H I C K M A N
GARNER
RIDLEY ALEXANDER
C.
B E N N E T T HARRISON
WILLIAM M. CAMPBELL
Appointed
C.
by Board
of
L.
f?
31
Bank:
Chairman of the Board, President, T h e First National Bank of
O x f o r d , Miss.
1974
C h a i r m a n , T h e Second National Bank of Jackson, Tenn.
1975
Chairman of the Board, Union Planters National Bank of M e m phis, Tenn.
1975
Chairman of the Board, Chief Executive Officer, First National
Bank of Eastern Arkansas, Forrest City, Ark.
1976
Governors:
WHITNEY BROWN1
JEANNE
Term
Xpir
HOLLEY
(Vacancy)
President, S . C . Toof and C o m p a n y , M e m p h i s , Tenn.
1974
Assistant Professor of Business Education, University of Mississippi, University, Miss.
1975
1976
District 9—FEDERAL RESERVE BANK OF MINNEAPOLIS
Class A.ROY
Class
H.
JOHNSON
DAVID M .
SMITH
CHARLES
T.
B:
JOHN H .
Class
UNDLIN
President, The First National Bank of N e g a u n e e , Mich.
1974
President, First National Bank of River Falls, Wis.
1975
President, First National Bank of the Black Hills, Rapid City,
S.D.
1976
BAILEY
DAVID M .
HESKETT
WARREN
B.
JONES
President, The Cretex C o m p a n i e s , Elk River, M i n n .
1974
President, Montana-Dakota Utilities C o m p a n y , Bismarck, N . D . 1975
Secretary-Treasurer, T w o Dot Land and Livestock C o m p a n y ,
Harlowton, M o n t .
1976
C:
BRUCE B .
DAYTON1
J A M E S P. M c F A R L A N D 2
H O W A R D B. S W E A R E R
Chairman of the Board, Dayton Hudson Corporation, Minneapolis, M i n n .
Chairman of the Board, Chief Executive Officer, General Mills,
Minneapolis, M i n n .
President, Carleton College, Northfield, M i n n .
1974
1975
1976
HELENA BRANCH
Appointed
by Federal
ROBERT I.
JOHN
Reserve
PENNER
REICHEL
D O N A L D E. OLSSON
Appointed
by Board
of
Bank:
President, Citizens First National B a n k , Wolf Point, M o n t .
President, 1st National Bank in B o z e m a n , M o n t .
President, Ronan State B a n k , R o n a n , M o n t .
Governors:
D A V I D G. D R U M
President, Y-V Fertilizer Corporation, Billings, M o n t .
W I L L I A M A. C O R D I N G L E Y 1 Publisher, President, Great Falls Tribune, Great Falls, M o n t .
1974
1974
1975
1974
1975
DIRECTORY OF FEDERAL RESERVE BANKS AND BRANCHES
District 10—FEDERAL RESERVE BANK OF KANSAS CITY
Class
A:
JOHN A .
O'LEARY
ROGER D .
PHILIP
Class
KNIGHT,
H A M M
Term
expires
Dec. 31
Chairman of the Board, T h e Peoples State B a n k , Luray, Kans. 1974
Chairman of the Board, United Banks of Colorado, Denver,
Colo.
1975
President, First National Bank & Trust C o m p a n y , El Dorado,
Kans.
1976
B:
FRANK C .
LOVE
CECIL O .
EMRICH
D O N A L D
Class
JR.
161
J.
Of C o u n s e l — C r o w e , Dunlevy, Thweatt, S w i n f o r d , Johnson and
Burdick, O k l a h o m a City, Okla.
1974
President, C . O . Emrich Enterprises, N o r f o l k , Nebr.
1975
President, Hallmark Cards, Kansas City, M o .
1976
HALL
C:
ROBERT W .
WAGSTAFF1
HAROLD W .
ANDERSEN
PERSON2
ROBERT T .
Chairman of the Board, President, Coca-Cola Bottling C o m p a n y
of M i d - A m e r i c a , Kansas City, M o .
1974
President, World Publishing C o m p a n y , O m a h a World Herald,
O m a h a , Nebr.
1975
Chairman of the Board, President, Public Service C o m p a n y of
Colorado, Denver, Colo.
1976
DENVER BRANCH
Appointed
by Federal
ROBERT L .
DALE R.
FELIX
Reserve
TRIPP
HINMAN
BUCHENROTH,
Bank:
Chairman of the Board, Chief Executive Officer, Albuquerque
National Bank, Albuquerque, N . M .
1974
Chairman of the Board, The Greeley National B a n k , Greeley,
Colo.
1974
President, T h e Jackson State Bank, Jackson, W y o .
1975
JR.
Appointed
by Board
EDWARD R.
MAURICE
B.
of
Governors:
LUCERO
MITCHELL1
President, Colorado Economic Development Association, Lakew o o d , Colo.
1974
Chancellor, University of Denver, Indian Hills, Colo.
1975
OKLAHOMA CITY BRANCH
Appointed
by Federal
Reserve
Chairman of the B o a r d - R e t i r e d , National Bank of Tulsa, Okla. 1974
Executive Vice President, The Bank of W o o d w a r d , Okla.
1974
Chairman of the Executive Committee, T h e First National Bank
and Trust C o m p a n y of O k l a h o m a City, Okla.
1975
MARVIN MILLARD
HUGH
W.
Appointed
H.
C.
JONES
MCDONALD
by Board
of
Governors:
HARLEY CUSTER
JOSEPH H .
WILLIAMS1
Bank:
General M a n a g e r , O k l a h o m a Livestock Marketing Association,
O k l a h o m a City, Okla.
1974
President, The Williams Companies, Tulsa, Okla.
1975
FEDERAL RESERVE BULLETIN • FEBRUARY 1974
162
District 10—FEDERAL RESERVE BANK OF KANSAS CITY—Continued
Term
OMAHA BRANCH
Appointed
by Federal
W.
Reserve
Bank:
expires
Dec. 31
Chairman, T h e United States National Bank of O m a h a , Nebr. 1974
Vice Chairman of the Board, National Bank of C o m m e r c e Trust
& Savings, Lincoln, Nebr.
1975
ROY G. DINSDALE
Chairman of the Board, Farmers National Bank of Central City,
Nebr.
1975
Appointed by Board of Governors:
EDWARD
LYMAN
G L E N N YAUSSI
F. O W E N
President, Paxton & Vierling Steel C o m p a n y , O m a h a , Nebr.
D U R W A R D B. V A R N E R 1 President, University of Nebraska, Lincoln, Nebr.
EDWARD
1974
1975
District 11—FEDERAL RESERVE BANK OF DALLAS
Class
A:
A.
W.
RITER,
ROBERT H .
GENE
Class
D.
STEWART
III
ADAMS
President, Chairman of the Executive C o m m i t t e e , T h e Peoples
National Bank of Tyler, Tex.
1974
Chairman of the Board, First International Bancshares, Dallas,
Tex.
1975
President, T h e First National Bank of Seymour, Tex.
1976
B:
HUGH F.
Class
JR.
President, El Paso Natural Gas C o m p a n y , El Paso, Tex.
1974
President, M e s a Agro, Amarillo, Tex.
1975
President, F o l e y ' s , Division of Federated Department Stores,
Houston, Tex.
1976
STEEN
THOMAS W .
HERRICK
STEWART
ORTON
C:
IRVING
A.
MATHEWS
CHARLES T .
JOHN
BEAIRD2
LAWRENCE1
Chairman of the Board, Chief Executive Officer, Frost B r o s . ,
San Antonio, Tex.
1974
Chairman of the Board, Beaird-Poulan Division, Emerson Electric C o m p a n y , Shreveport, La.
1975
Chairman of the Board, Dresser Industries, Dallas, Tex.
1976
EL PASO BRANCH
Appointed
by Federal
WAYNE
REED
SAM
C.
Reserve
President, First National Bank in A l a m o g o r d o , N . M .
President, First National Bank of Lea County, H o b b s , N . M .
President, El Paso National Bank, El Paso, Tex.
President, Vice Chairman of the Board, T h e First National Bank
of Midland, Tex.
STEWART
H. C H I T T I M
D. Y O U N G , Jr.
J. K E L L Y
Appointed
by Board
of
HERBERT
BOWMAN2
M.
1974
1975
1975
1976
Governors;
GAGE HOLLAND1
ALLAN B.
Bank:
SCHWARTZ
O w n e r , G a g e Holland R a n c h , Alpine, Tex.
President, A m a x Arizona, T u c s o n , Ariz.
President, Popular Dry Goods C o m p a n y , El Paso, Tex.
1974
1975
1976
163
DIRECTORY OF FEDERAL RESERVE BANKS AND BRANCHES
District 11—FEDERAL RESERVE BANK OF DALLAS—Continued
Term
expires
Dec. 31
HOUSTON BRANCH
Appointed
by Federal
SETH W .
P.
S.
K.
Bank:
Chairman
Tex.
President,
President,
President,
DORBANDT
BOOKMAN
NAT
Reserve
PETERS
ROGERS
STUBBLEFIELD
Appointed
by Board
of
CARL B .
SHERMAN
ALVIN
THOMAS2
I.
THOMAS
J.
of the Board, President, First National Bank in Conroe,
T h e City National Bank of Bryan, Tex.
First City National Bank of H o u s t o n , T e x .
Victoria Bank & Trust C o m p a n y , Victoria, T e x .
1974
1975
1975
1976
Governors:
BARLOW
1
President, Houston Lighting & Power C o m p a n y , Houston, Tex. 1974
President, Prairie View A & M University, Prairie V i e w , Tex.
1975
President, Chief Executive Officer, Anderson, Clayton & C o m p a n y , Houston, Tex.
1976
SAN ANTONIO BRANCH
Appointed
by Federal
LEON
STONE
RICHARD W .
W.
O.
BEN
Reserve
ROBERSON
R.
Appointed
CALVERT
LOW
by Board
of
MARGARET
BROUGH
President,
President,
Chairman
President,
The Austin National Bank, Austin, Tex.
National Bank of C o m m e r c e of San Antonio, Tex.
of the Board, First National Bank at Brownsville, T e x .
First National Bank of Kerrville, Tex.
1974
1975
1975
1976
Governors:
III1
MARSHALL BOYKIN
PETE J. MORALES,
Bank:
Jr.2
Senior Partner, W o o d , Boykin & Wolter, Corpus Christi, Tex. 1974
President, General M a n a g e r , Morales Feed Lots, D e v i n e , Tex. 1975
SCARWILSON
President, Scarbroughs Department Store, Austin, Tex.
1976
District 12—FEDERAL RESERVE BANK OF SAN FRANCISCO
Class
A:
CARL E.
SCHROEDER
JAMES E .
A.
Class
W.
PHILLIPS
CLAUSEN
President, T h e First National Bank of Orange County, O r a n g e ,
Calif.
1974
President, First National Bank in Port A n g e l e s , W a s h .
1975
President, Chief Executive Officer, Bank of America N T & S A ,
San Francisco, Calif.
1976
B:
CHARLES R .
DAHL
JOSEPH
ROSENBLATT
CLAIR
L.
PECK
President, Chief Executive Officer, C r o w n Zellerbach, San Francisco, Calif.
1974
Honorary Chairman of the Board, T h e E i m c o Corporation, Salt
Lake City, Utah
1975
President, Chairman of the Board, C. L. Peck Contractors, Los
Angeles, Calif.
1976
FEDERAL RESERVE BULLETIN • FEBRUARY 1974
164
District 12—FEDERAL RESERVE BANK OF SAN FRANCISCO—Continued
Term
expires
Dec. 31
Class C:
MAS OJI
F. A L I B R A N D I 2
O. MEREDITH W I L S O N 1
JOSEPH
President, Oji Bros. F a r m , Y u b a City, Calif.
1974
President, Whittaker Corporation, Los Angeles, Calif.
1975
President, Director, Center for Advanced Study in the Behavioral
Sciences, Stanford, Calif.
1976
LOS ANGELES BRANCH
Appointed
by Federal
S.
DEZEMBER
GORDON
FERGUSON
RAYBURN
W.
Reserve
LINUS E.
SOUTHWICK
ROBERT
A.
Appointed
BARLEY
by Board
D.
(Vacancy)
Chairman of the Board, President, American National B a n k ,
Bakersfield, Calif.
President, National Bank of Whittier, Calif.
President, Valley National B a n k , Glendale, Calif.
President, United California B a n k , Los Angeles, Calif.
1974
1975
1976
1976
Governors:
VAUGHAN1
JOSEPH R .
LELAND
of
Bank:
PRATT
President, Knudsen Corporation, Los Angeles, Calif.
President, Kelco C o m p a n y , San Diego, Calif.
1974
1975
1976
PORTLAND BRANCH
Appointed
by Federal
Reserve
FRANK L .
SERVOSS
JAMES H .
STANARD
LEROY
Appointed
B.
President, Crater National Bank of M e d f o r d , Ore.
1974
Vice President, First National Bank of M c M i n n v i l l e , Ore.
1974
Chairman of the Board, Chief Executive Officer, United States
National Bank of O r e g o n , Portland, Ore.
1975
STAVER
by Board
of
Bank:
Governors:
R. H O W A R D 1
L O R A N L. S T E W A R D
JOHN
President, Lewis and Clark College, Portland, Ore.
President, B o h e m i a , E u g e n e , Ore.
1974
1975
SALT LAKE CITY BRANCH
Appointed
by Federal
RODERICK H .
ROY
W.
Reserve
BROWNING
SIMMONS
JOSEPH B I A N C O
Appointed
by Board
SAM H .
C.
President, Bank of Utah, O g d e n , Utah
President, Zions First National B a n k , Salt Lake City Utah
Chairman of the Board, President, Bank of Idaho, Boise, Idaho
1974
1974
1975
Governors:
BENNION1
THEODORE
of
Bank:
JACOBSEN
Secretary-Treasurer, V - l Oil C o m p a n y , Idaho Falls, Idaho
1974
Chairman of the Board, Jacobsen Construction C o m p a n y , Salt
L a k e City, Utah
1975
DIRECTORY OF FEDERAL RESERVE BANKS AND BRANCHES
165
District 12—FEDERAL RESERVE BANK OF SAN FRANCISCO—Continued
SEATTLE BRANCH
Appointed
by Federal
HARRY
ROBERT
JOSEPH
Appointed
C.
S. G O O D F E L L O W
C. W H I T W A M
C. BAILLARGEON
by Board
HENRY
THOMAS
Reserve
T.
of
BACON,
HIRAI
Bank
Term
expires
Dec. 31
President, Old National Bank of W a s h i n g t o n , Spokane, W a s h . 1 9 7 4
President, American National Bank of E d m o n d s , W a s h .
1974
Chairman of the Board, Chief Executive Officer, Seattle Trust
and Savings B a n k , Seattle, W a s h .
1975
Governors:
JR. 1
Vice C h a i r m a n , Simpson Timber C o m p a n y , Seattle, W a s h .
1974
President and Director, Quality Growers C o m p a n y , Woodinville,
Wash.
1975
Announcements
REDESIGNATION OF CHAIRMAN BURNS AS
CHAIRMAN OF THE BOARD
T h e President of the United States on January 28,
1974, issued an Order redesignating Arthur F.
Burns as Chairman of the Board of Governors of
the Federal Reserve System, to serve as such for
a term of 4 years f r o m February 1, 1974, unless
and until his services as a M e m b e r of the Board
of Governors shall have sooner terminated.
Dr. Burns, w h o s e 14-year term as a M e m b e r
of the Board will expire on January 31, 1984, has
served as both a M e m b e r of the Board and its
Chairman since February 1, 1970. Just prior to
his appointment to the Board, Dr. Burns served
as Counsellor to the President f r o m January 1969
to January 1970.
CHANGE IN BOARD STAFF
The Board of Governors announced the promotion
of John Nicoll, w h o has been Assistant General
Counsel in the Legal Division, to Deputy General
Counsel, effective February 8, 1974.
TERMINATION OF VFCR GUIDELINES
T h e Board of Governors announced on January
29, 1974, the immediate termination of its Voluntary Foreign Credit Restraint Guidelines (VFCR).
The program was designed to restrain foreign
lending and investment overseas by banks and
other financial institutions.
T h e B o a r d ' s announcement was m a d e in conjunction with actions by the Treasury Department
to reduce the interest equalization tax to zero and
by the C o m m e r c e Department to terminate its
foreign direct investment restriction. The Federal
Reserve has administered the V F C R program since
early 1965 at the request of the administration.
In announcing its action, the Board said it would
request banks and other financial institutions to
continue during 1974 to report their overseas
lending and investments to the Board, but in
substantially reduced detail.
COMMITTEE ON MONETARY MEASUREMENTS
In view of the importance of monetary measurements, the Board of Governors announced on
January 31, 1974, the formation of a special com
mittee of. prominent academic experts to review
concepts, procedures, and methodology involved
in estimating the m o n e y supply and other monetary
aggregates.
This committee, which is expected to complete
its studies within a year, will be chaired by Professor G . L. Bach of Stanford University.
Other committee m e m b e r s are Phillip D. Cagan
of Columbia University, w h o will serve as Executive Secretary of the committee; Milton Friedman
of the University of Chicago; Clifford G . Hildreth
of the University of Minnesota; Paul W . M c Cracken of the University of Michigan; Franco
Modigliani of the Massachusetts Institute of Technology; and Arthur M . O k u n of the Brookings
Institution.
DRAFT LEGISLATION FOR UNIFORM RESERVE
REQUIREMENTS
The Board of Governors on January 25, 1974, sent
to Congress draft legislation designed to implement its recommendations for uniform reserve
requirements. T h e proposed legislation has the
following purposes:
To achieve better m a n a g e m e n t of m o n e y and
credit, to provide a m o r e equitable system of
reserve requirements a m o n g financial institutions
that offer similar deposit services, and to permit
Federal Reserve lending assistance to a broader
range of financial institutions when and as they
come under unusual liquidity pressures.
The draft legislation would extend reserve requirements set by the Federal Reserve to the demand deposits and Negotiable Orders of Withdrawal ( N O W ' s ) , at all financial institutions—
commercial banks, savings and loan associations,
and mutual savings banks. The proposal would
also provide a widening of the permissible range
of reserve requirements.
The Board said the basic principle underlying
the proposed legislation is that equivalent cash
reserve requirements should apply to all deposits
that effectively serve as a part of the p u b l i c ' s
money balances, regardless of the type of institution in which those balances are held.
While providing a greater measure of monetary
control in the e c o n o m y , the draft legislation would
at the same time preserve the balance of supervi167
168
FEDERAL RESERVE BULLETIN • FEBRUARY 1974
sory powers inherent in a dual banking system.
M o r e than 3 , 0 0 0 of the smaller n o n m e m b e r banks
will be effectively exempt f r o m the new requirements. In addition, the proposal would not require
State banks to join the s y s t e m — m e m b e r s h i p
would be optional for these institutions. Regardless of their m e m b e r s h i p status, h o w e v e r , State
banks under the legislation would be subject to
Federal Reserve reserve requirements on demand
deposits and N O W accounts, and would have
access to Federal Reserve credit at the discount
w i n d o w . Supervision of thrift institutions also
would remain unchanged.
Reserve requirements set by State authorities
under State law vary f r o m State to State. In about
half, the percentage requirements for d e m a n d deposits are identical or differ very little (except for
large banks) f r o m the percentages now set by the
Federal Reserve. Percentages in 15 States are
higher while in 7 other States they are lower.
T h e major difference between State require-
ments and reserve requirements set by the Federal
Reserve, h o w e v e r , is in the form in which requirements are held. Reserve requirements set by
the Federal Reserve must be held, under law, in
the form of vault cash or funds deposited with
a Federal Reserve Bank. State requirements can
be satisfied not only by holding cash but also in
a number of other w a y s — b y holding deposits with
other banks or by holding interest-bearing Federal
or State securities. Reserves held in this manner
do not contribute to the monetary policy function
of reserves since the f u n d s are available to finance
additional deposits and credit expansion. T h u s , the
principal thrust of the proposed legislation would
be to change the form in which n o n m e m b e r banks
hold their reserves—that is, by requiring them to
hold reserves in the f o r m of cash or balances with
the Federal Reserve Banks.
The proposal, which differs in some details f r o m
earlier recommendations by the Board, would
provide a 4-year transition period—during which
FEDERAL RESERVE BANK AND BRANCH DIRECTOR CHANGES DURING 1973
Federal Reserve Bank
and Branch:
New
York
Philadelphia
William S. Sneath, President, Union Carbide Corporation, N e w Y o r k , N e w
Y o r k , was elected in Class B, G r o u p 2, on August 15.
William S. Masland, President, C . H . Masland and Sons, Carlisle, Pennsylvania, was elected in Class B, G r o u p 1, and John C. Tuten, Chairman of
the Boards and Chief Executive Officer, National Central Bank and National
Central Financial Corporation, Lancaster, Pennsylvania, was elected in Class
A , G r o u p 1, on March 13.
Richmond
Baltimore
J. Pierre Bernard, Chairman of the Board, T h e Annapolis Trust C o m p a n y ,
Annapolis, Maryland, was appointed on June 14 to succeed Tilton H .
D o b b i n , President and Chairman of the Executive Committee, Maryland
National Bank, Baltimore, M a r y l a n d , w h o resigned.
Birmingham
Frederick G. Koenig, Jr., President and Chief Executive Officer, A l a b a m a
By-Products Corporation, B i r m i n g h a m , A l a b a m a , resigned on July 11.
Atlanta
St.
Louis
Little Rock
Will H. Kelley, Chairman of the Board, T h e State First National Bank of
Texarkana, Arkansas, resigned on September 18.
Dallas
Houston
San
Francisco
Los Angeles
Carl B. Sherman, President, Houston Lighting and Power C o m p a n y , Houston, Texas, was appointed on August 18 to succeed R. M . Buckley,
President, Eastex Incorporated, Silsbee, T e x a s , w h o resigned on April 30.
Joseph R. V a u g h a n , President, Knudsen Corporation, Los Angeles, California, was appointed on July 27 to succeed Ruth Handler, President, Mattel,
H a w t h o r n e , California, w h o resigned on April 19.
ANNOUNCEMENTS
reserve requirements would gradually be phased
in—for institutions not now subject to Federal
Reserve requirements.
Details of the draft legislation are as follows:
1. Demand deposits would be subject to a
reserve requirement, set by the Board, ranging
from 5 per cent to 22 per cent. The present
range is from 7 per cent to 22 per cent—from
10 to 22 per cent at reserve city banks and
from 7 to 14 per cent at other banks. Under
the proposal, no distinction would be made
between reserve city and other banks.
2. Interest-bearing deposits from which
withdrawals may be made by negotiable instrument (such as NOW's) would be subject
to a reserve requirement ranging from 3 per
cent to 20 per cent. NOW accounts at member
banks in Massachusetts and New Hampshire—the only States where such accounts are
permissible—are at present subject to the reserve requirement that applies to time and
savings deposits, which may range from 3 per
cent to 10 per cent.
3. There would be no required reserves
against the first $2 million of net demand
deposits and NOW's at nonmember institutions.
4. Time and savings deposits of member
banks would be subject to a reserve requirement ranging from 1 per cent to 10 per cent
(instead of 3 per cent to 10 per cent as at
present). Time and savings deposits of nonmember institutions would not be subject to
Federal Reserve reserve requirements.
5. Every institution that receives demand
deposits or offers NOW accounts would be
required to report its deposit liabilities and
required reserves, if any, as the Board requested.
6. Nonmember institutions that would be
required to maintain Federal Reserve reserve
requirements would be able to obtain credit
through the Federal Reserve discount window,
subject to regulations issued by the Board.
7. A transition period of 4 years would apply
to the total amount of demand deposits held
by nonmember institutions at the time of enactment of the new law. During the first calendar year following the date of enactment, an
institution would be required to carry 20 per
cent of the required reserve on these base
period demand deposits, 40 per cent during the
second year, 60 per cent during the third year,
80 per cent during the fourth year, and 100
per cent after that. Additions to demand deposits beyond the base period amount would
be subject to the full reserve requirement.
8. The new law would become effective at
the beginning of the first calendar year following its enactment.
The essential function of Federal Reserve reserve requirements is to serve as a fulcrum for
monetary policy. Such reserve requirements pro-
169
vide a known and controllable base through which
the reserve-supplying and reserve-absorbing actions of the Federal Reserve can affect the supply
of money and credit. The different reserve requirements set by the various States do not serve
this purpose.
Federal Reserve reserve requirements, however,
presently apply only to banks that are members
of the Federal Reserve System—about 5,700 of
14,000 total commercial banks in the country.
The proportion of demand deposits held by
member banks has been declining over the years,
however, so that the Federal Reserve's control
over bank reserves (and the money supply) has
been eroding. In 1960 member banks held about
83 per cent of the demand deposits that make up
the money supply. Presently, about 75 per cent
of the demand deposit component of the money
supply is held at member banks. Also, the demand
deposit component of the money supply has grown
more rapidly at nonmember banks than at member
banks, and the rate of growth at nonmember banks
has varied much more from year to year. Since
1960 the demand deposit component of the money
supply held at nonmember banks has grown by
about 164 per cent, while the growth at member
banks has been about 61 per cent.
In a letter transmitting the draft legislation to
Congress, Board Chairman Arthur F. Burns described the situation in this way:
Recent trends in nonmember demand deposits and in the development of NOW accounts surely presage a continued, and perhaps
accelerated, growth of money-type deposits at
nonmember financial institutions. No one can
be certain at what exact point this growth will
make control over monetary aggregates ineffective, but erosion of the reserve base progressively weakens the reliability of our
present monetary instruments.
The proposed legislation extends reserve requirements set by the Federal Reserve only to
accounts which are directly employed in making money payments—that is, to demand deposits and to savings accounts with third party
payment features. The proposal does not recommend applying Federal reserve requirements to time and savings deposits other than
NOW accounts. These deposits do in some
degree serve a money-like function, but they
are not highly active deposits. Also, under
present conditions, there do not appear to be
frequent, or large-scale, shifts of funds back
and forth between demand and time (or savings) accounts. Shifts among demand deposits,
NOW accounts, and other time deposits would
become more prevalent in the future, however.
The proposed legislation is not intended to
alter the existing chartering options for banking
FEDERAL RESERVE BULLETIN • FEBRUARY 1974
170
institutions, to favor or disadvantage different
types of institutions, or to change the balance
among supervisory authorities. State-chartered
institutions may continue either to join the
Federal Reserve System or not, as they choose.
Whether they do or do not—and it is anticipated that many would remain outside the
System—they would become subject to reserve
requirements set by the Federal Reserve on
demand deposits and on NOW and similar
savings accounts.
Thus, the specific proposals have been
drawn in such a way as to achieve more precision in monetary control and more equity in
competition without altering the diversified
banking and financial structure that now serves
the country. . . .
CHANGE IN SWAP ARRANGEMENTS
The Federal Reserve announced on February 1,
1974, that its reciprocal currency " s w a p " arrangement with the Bank of Italy had been increased by $1 billion, bringing the total of that
arrangement to $3 billion. A swap arrangement
is a renewable, short-term facility under which a
central bank agrees to exchange on request its own
currency for the currency of the other party up
to a specified amount over a specified period of
time.
In conjunction with this a n n o u n c e m e n t , Federal
Reserve Chairman Arthur F. Burns said that the
Federal Reserve System will consider possible
increases in its other swap lines, as needed.
Australian National Bank
National Bank of Belgium
Bank of Canada
National Bank of Denmark
Bank of England
Bank of
German
Bank of
Bank of
Bank of
France
Federal Bank
Italy
Japan
Mexico
$
250
1,000
2,000
250
2,000
2,000
2,000
3,000
2,000
180
Netherlands Bank
Bank of Norway
Bank of Sweden
Swiss National Bank
500
250
300
1,400
Bank for International Settlements
Swiss francs/dollars
Other European currencies/dollars
600
1,250
Total
18,980
The $1 billion increase in the Federal Reserve
arrangement with the Bank of Italy enlarges the
S y s t e m ' s swap network with 14 central banks and
the Bank for International Settlements to $ 1 8 . 9 8
billion. The Federal Reserve swap network was
initiated in 1962. In all reciprocal currency arrangements the Federal Reserve Bank of New
York acts on behalf of the Federal Reserve System
under the direction of the Federal Open Market
Committee.
The Federal R e s e r v e ' s reciprocal currency arrangements (in millions of dollars) are shown in
the accompanying table.
ISSUANCE OF SPECIAL ROUTING NUMBERS TO
THRIFT INSTITUTIONS
The Board of Governors announced on February
14, 1974, that the Federal Reserve had begun
authorizing issuance of special routing numbers to
thrift institutions. The numbers enable these institutions to participate, where authorized by State
or Federal law, in the S y s t e m ' s check clearance
and automated clearing-house facilities by routing
entries through a Federal Reserve m e m b e r bank.
The Federal Reserve Bank of Boston has authorized
103 such " p a s s - t h r o u g h "
clearing
numbers to mutual savings banks and savings and
loan associations in Massachusetts and New
Hampshire. In this case, the numbers are used to
facilitate the clearing of negotiable orders of withdrawal ( N O W ' s ) , which function as checks and
are written by customers of the thrift institutions
against their savings accounts.
T h e Congress last fall authorized customers of
all depository institutions in the two States to write
the check-like N O W ' s on interest-paying savings
accounts. Previously, checks could be written only
against non-interest-paying d e m a n d deposits. Authorization of N O W ' s created a new type of f u n d s
transfer instrument, calling for revision of established clearance practices. T h e numbers assigned
appear as a part of the magnetic ink encoding on
the lower left corner of such instruments.
The Board also said it was authorizing issuance
of similar numbers to mutual savings banks and
savings and loan associations, as it becomes necessary, to enable them to make effective use,
through participating commercial banks, of facilities operated by the Federal Reserve in automated
clearing-house arrangements.
Such automated clearing-house facilities are in
use in California and Georgia in connection with
electronic f u n d s transfer systems being operated
by groups of private banks. The pass-through
numbers can be used to afford customers of nonbank depository institutions parallel treatment in
the receipt of deposits transferred electronically
through such automated clearing houses. Thrift
institutions making use of such special routing
numbers can enable their customers to receive, for
e x a m p l e , payroll deposits made electronically
through an automated clearing house, by routing
171
ANNOUNCEMENTS
the deposit through m e m b e r banks. Wherever
statutory authority permits, and automated facilities exist, these numbers could also be used to
accommodate payments arrangements in which
customers of thrift institutions agree to allow their
accounts to be debited electronically for contractual obligations, such as h o m e insurance p r e m i u m ,
rent, mortgage, and utility bill payments.
It should be pointed out that the assignment of
these routing numbers does not convey any new
services to thrift institutions, but rather facilitates
more efficient automated provision of those services that thrift institutions and their customers are
presently receiving.
The individual identification clearance numbers
for thrift institutions are being established in the
same manner as numbers identifying banks for
check clearance have been established in the past.
The thrift institution—as would a bank desiring
a number for routing purposes—requests a number
from the R a n d - M c N a l l y C o m p a n y , in Chicago,
which assists in administering the numbering system used to sort and route checks. Rand-McNally
informs the appropriate Federal Reserve Bank of
the request and the number assigned, and the
Reserve Bank authorizes the requesting institution
to use the number. T h e number can then be used
for routing purposes in Federal Reserve check
processing computers and sorters, and in automated clearing-house computers.
AMENDMENT TO REGULATION H
The Board of Governors has announced a regulatory amendment effective March 2, 1974, prohibiting State-chartered m e m b e r banks f r o m lending
on improved real estate or a mobile home in an
identified flood hazard area unless the property is
covered by appropriate flood insurance. The restriction applies also to such property in any community in a designated flood hazard area not participating in the national flood insurance program
by July 1, 1975.
In both cases the lending restrictions being
added to the B o a r d ' s Regulation H — d e a l i n g with
unsafe, unsound, or illegal banking practices—are
required to implement the Flood Disaster Protec-
tion Act of 1973 (P.L. 9 3 - 2 3 4 ) . T h e new legislation, signed into law by the President D e c e m b e r
31, 1973, increases the limits of coverage. T h e
Act requires Federal agencies regulating financial
institutions to direct institutions subject to their
rules:
. . . not to make, increase, extend, or renew
(after March 2, 1974) any loan secured by
improved real estate, or mobile home, located
or to be located in an area identified by the
Secretary (of Housing and Urban Development) as an area having special flood hazards,
where Federal flood insurance is available,
unless
. . . the property is covered for the term
of the loan by flood insurance in an amount
at least equal to the outstanding principal balance or to the maximum limit of coverage
. . . under the Act, whichever is less.
A similar prohibition affects lending on property
in communities located in designated flood hazard
areas unless, by July 1, 1975, such communities
are participating in the national flood insurance
program.
An exception applies to State-owned property
covered under self-insurance satisfactory to the
Secretary of H U D . T h e Secretary is required to
publish lists of states falling within the exemption.
Other Federal regulatory agencies are publishing
similar rules restricting lending under the new
flood insurance legislation.
ADMISSION OF STATE BANKS TO MEMBERSHIP
IN THE FEDERAL RESERVE SYSTEM
The following banks were admitted to m e m b e r s h i p
in the Federal Reserve System during the period
January 16, 1974, through February 15, 1974:
Florida
Kissimmee
Sarasota
Mississippi
Poplarville
Montana
Helena
Virginia
Springfield
Marine Bank of Kissimmee
Palmer Bank of Gulf Gate
First Citizens Bank and
Trust C o m p a n y of Poplarville
First Security Bank of Helena
Northern Virginia Bank
Industrial Production
Released for publication February 15
Industrial production declined an estimated 0 . 8 per
cent further in January and, at 125.7 per cent of
the 1967 average, was 3 per cent above a year
earlier. As in D e c e m b e r , when the index declined
0 . 6 per cent, there was a sharp decline in auto
assemblies and associated reductions in output of
automotive supplying industries, as well as further
cuts in electric and gas consumption by residential
and commercial users. Other major sectors of the
index registered little change or declined.
Auto assemblies were cut back 15 per cent
further to a seasonally adjusted rate of 6 . 9 million
units. Production schedules for February were set
at a 7.0-million-unit rate. Production of household
appliances apparently declined in January and
output of nondurable consumer goods was also off.
Output of business equipment was unchanged at
near-record levels. Production of steel mill products was maintained at record levels in January.
Production of consumer durable materials parts
declined sharply in January, but output of nondurable goods materials changed little. Output of
construction products was d o w n further.
INDUSTRIAL PRODUCTION
SEASONALLY ADJUSTED, RATIO SCALE, 1967=100
-
/ - ^ V
l
1968
127.5
125.2
123.5
133.4
139.0
131.2
127.7
126.7
124.1
122.2
130.9
134.7
129.5
127.3
125.7
123.0
121.1
129.2
130.0
128.9
127.2
Intermediate products ..
Construction products
Materials
131.4
135.4
131.7
130.5
134.9
131.0
129.4
134.0
130.3
1974
Per cent
changes from-
1968
1970
1972
1974
Per cent changes, annual rate
1973
Month
ago
e
1972
1974
1973
Total
Products, total
Final products
Consumer goods
Durable goods
Nondurable goods
Business equipment .
Preliminary
1970
F.R. indexes, seasonally adjusted. Latest figures: January.
Jan. 6
p
l
V/DURABLE
MANUFACTURES
Dec.p
Revised
I
_
Nov. 1-
r
l
NONDURABLE
^
MANUFACTURES/^
I
Seasonally adjusted
1967 = 100
Industrial production
TOTAly'
Year
ago
QII
-.8
-.9
-.9
-1.3
-3.5
-.5
2.9
1.9
2.1
-.5
-4.4
1.2
- . 1
-.7
-.5
3.4
4.7
5.5
5.3
5.0
3.7
9.3
1.3
10.9
4.6
7.4
7.0
QUI
6.1
3.9
4.3
1.8
-8.8
6.6
11.2
4.0
6.9
8.4
QIV
1.3
1.3
2.6
.6
-3.6
2.2
8.4
-3.2
0
Estimated
173
A 1
Financial and Business Statistics
CONTENTS
A
3
GUIDE TO TABULAR PRESENTATION
A
3
STATISTICAL RELEASES: REFERENCE
U.S. STATISTICS:
A
4
A
A
A
A
A
A
A
A
7
8
9
10
11
12
14
15
Member bank reserves, Federal Reserve Bank credit,
and related items
Federal funds—Major reserve city banks
Reserve Bank interest rates
Reserve requirements
Maximum interest rates; margin requirements
Open market account
Federal Reserve Banks
Bank debits
U.S. currency
A
A
A
A
A
A
A
A
A
A
A
A
16
17
18
24
29
30
31
31
32
35
36
37
Money stock
Bank reserves; bank credit
Commercial banks, by classes
Weekly reporting banks
Business loans of banks
Demand deposit ownership
Loan sales by banks
Open market paper
Interest rates
Security markets
Stock market credit
Savings institutions
A
A
A
A
A
A
A
39
40
42
45
48
49
54
Federally sponsored credit agencies
Federal finance
U.S. Government securities
Security issues
Business finance
Real estate credit
Consumer credit
Continued
on next
page
107 FEDERAL RESERVE BULLETIN • FEBRUARY 1974
U.S. STATISTICS—Continued
A
A
A
A
A
A
A
A
58
62
62
64
66
66
68
70
Industrial production
Business activity
Construction
Labor force, employment, and earnings
Consumer prices
Wholesale prices
National product and income
Flow of funds
INTERNATIONAL STATISTICS:
A
A
A
A
A
A
A
A
A
A
72
73
74
75
76
91
92
93
94
95
U.S. balance of payments
Foreign trade
U.S. gold transactions
U.S. reserve assets; position in the IMF
International capital transactions of the United States
Foreign exchange rates
Central bank rates
Open market rates; arbitrage on Treasury bills
Gold reserves of central banks and governments
Gold production
TABLES PUBLISHED PERIODICALLY:
A
96
A
A
98
99
A
107
Earnings and expenses of Federal Reserve Banks, 1973
Number of banking offices:
Analysis of changes
On, and not on, Federal Reserve Par List
INDEX TO STATISTICAL TABLES
A 3
Guide to Tabular Presentation
SYMBOLS AND ABBREVIATIONS
e
N.S.A.
Estimated
c
Corrected
p
Preliminary
r
Revised
rp
R e v i s e d preliminary
IPC
SMSA
A
L
S
U
I, II,
III, I V
Quarters
*
n.e.c.
Not elsewhere classified
A.R.
S.A.
A n n u a l rate
M o n t h l y (or quarterly) figures adjusted for
s e a s o n a l variation
M o n t h l y (or quarterly) figures not adjusted
for s e a s o n a l variation
I n d i v i d u a l s , partnerships, and c o r p o r a t i o n s
Standard metropolitan statistical area
Assets
Liabilities
S o u r c e s of f u n d s
U s e s of f u n d s
A m o u n t s insignificant in terms of the particular unit ( e . g . , l e s s than 5 0 0 , 0 0 0
w h e n the unit is m i l l i o n s )
(1) Z e r o , ( 2 ) n o figure to b e e x p e c t e d , or
( 3 ) figure d e l a y e d
GENERAL INFORMATION
M i n u s s i g n s are u s e d to indicate ( 1 ) a d e c r e a s e , ( 2 )
a n e g a t i v e figure, or ( 3 ) an o u t f l o w .
A h e a v y vertical rule is u s e d in the f o l l o w i n g instances: (1) to the right (to the left) of a total w h e n
the c o m p o n e n t s s h o w n to the right (left) of it add to
that total (totals separated by ordinary rules i n c l u d e
m o r e c o m p o n e n t s than t h o s e s h o w n ) , ( 2 ) to the right
(to the left) of i t e m s that are not part of a b a l a n c e s h e e t ,
(3) to the left of m e m o r a n d u m i t e m s .
" U . S . G o v t , s e c u r i t i e s " m a y i n c l u d e guaranteed
i s s u e s of U . S . G o v t , a g e n c i e s (the flow of f u n d s figures
a l s o i n c l u d e not f u l l y guaranteed i s s u e s ) as w e l l as direct
o b l i g a t i o n s of the Treasury. " S t a t e and local g o v t . "
a l s o i n c l u d e s m u n i c i p a l i t i e s , special districts, and other
political s u b d i v i s i o n s .
In s o m e of the tables details d o not add to totals
b e c a u s e of r o u n d i n g .
T h e f o o t n o t e s l a b e l e d N o t e ( w h i c h a l w a y s appear
last) p r o v i d e (1) the s o u r c e or s o u r c e s of data that d o
not originate in the S y s t e m ; (2) n o t i c e w h e n
figures
are e s t i m a t e s ; and (3) i n f o r m a t i o n on other characteristics of the data.
TABLES PUBLISHED SEMIANNUALLY OR ANNUALLY,
WITH LATEST BULLETIN REFERENCE
Quarterly
Sales, revenue, profits, and dividends of large manufacturing
corporations
Semiannually
Banking offices:
Analysis of changes in number
On, and not on, Federal Reserve
Par List, number
Annually
Bank holding companies:
List, Dec. 31, 1971
Banking offices and deposits of
group banks, Dec. 31, 1972
Banking and monetary statistics:
1972
Issue
Page
Dec. 1973
Annually—Continued
A-96
Feb. 1974
A-98
Feb. 1974
A-99
June 1972
A-98
June 1973
A-102—A-104
Mar. 1973
July 1973
A-100—A-114
A-96—A-99
Issue
Banks and branches, number,
by class and State
Apr. 1973
Flow of funds:
Assets and liabilities:
1961-72
Sept. 1973
A-71.14—A-71.28
Sept. 1973
A-70—A-71.13
Feb. 1974
May 1973
A-96—A-97
A-96—A-97
May 1973
May 1973
June 1973
A-96—A-105
A-106—A-lll
A-96—A-101
Jan. 1974
A-96—A-97
Flows:
1961-72
Income and expenses:
Federal Reserve Banks
Insured commercial banks
Member banks:
Calendar year
Income ratios
Operating ratios
Stock market credit
A-96—A-97
Statistical Releases
LIST PUBLISHED SEMIANNUALLY, WITH LATEST BULLETIN REFERENCE
Issue
Anticipated schedule of release dates for individual releases
Dec. 1973
Page
A-104
A 4
BANK RESERVES AND RELATED ITEMS • FEBRUARY 1974
MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS
(In millions of dollars)
Factors supplying reserve funds
Reserve Bank credit outstanding
Period or date
U.S. Govt, securities
Bought
outright
1
Held
under
repurchase
agreement
Loans
Float 2
Gold
stock
Other
F.R.
assets 3
Total
Special
Drawing
Rights
certificate
account
Treasury
currency
outstanding
Averages of daily figures
2,612
2,404
24,744
21,606
29,060
17,518
22,759
20,047
22,879
17,954
56,610
64,100
66,708
74,255
76,851
10,367
10,367
11,105
10,132
10,410
400
400
400
7,1
7,611
8,293
1.078
1.079
78,063
77,600
79,219
80,542
81,889
80,546
83,880
82,445
81,809
83,643
83,755
85,642
10,410
10,410
10,410
10,410
10,410
10,410
10,410
10,410
10,410
10,933
11,567
11,567
400
400
400
400
400
400
400
400
400
400
400
400
8,321
8,353
8,406
8,444
8,478
8,518
8,538
8,549
8,584
8,613
8,642
8,668
3,271
1,258
86,455
11,567
400
8,705
2,194
2,642
2,877
3,339
1,281
1,378
826
871
82,701
82,749
85,044
84,438
11,567
11,567
11,567
11,567
400
400
400
400
8,626
8,629
8,650
8,659
1,475
1,303
1,488
1,039
2,500
2,580
3,353
4,684
942
963
1,037
1,229
84,569
83,673
85,577
87,260
11,567
11,567
11,567
11,567
400
400
400
400
8,661
8,666
8,668
8,672
613
209
72
107
375
1,210
776
989
1,182
1,221
4,073
4,399
3,601
3,180
2,152
1,204
1,232
1,211
1,271
1,329
87,499
87,397
86,633
86,008
85,880
11,567
11,567
11,567
11,567
11,567
400
400
400
400
400
8,682
8,683
8,691
8,723
8,726
904
100
1,915
1,258
2,124
3,099
916
1,152
84,133
86,072
11,567
11,567
400
400
8,684
8,716
959
2,240
1,329
84,763
11,567
400
8,729
9
78
5
381
142
94
83
170
652
1,117
1,665
52,454
57,295
61,310
68,868
70,790
75
205
378
290
304
765
1,086
321
107
1,049
3,251
3.235
3,570
3,905
3,479
72,194
72,307
74,019
75,353
76,758
75,355
77,448
76,653
76,073
78,042
78,457
79,701
71.711
72,082
73,624
74,914
76,205
75,047
76,875
76,475
75.712
77,500
77,937
78,833
483
225
395
439
553
308
573
178
361
542
520
868
1,165
1,593
1,858
1,721
1,786
1,789
2,051
2,143
1,861
1,467
1,399
1,298
3,267
2,556
2,387
2,319
2,247
2,369
3,113
2,566
2,924
2,933
2,763
3,414
1,329
1,004
839
1,043
960
942
1,180
1,018
889
80,793
80,608
185
1,045
28
78,007
77,154
79,692
78,886
78,007
76,867
78,365
78,404
287
1,327
482
1,170
1,521
1,572
1,287
5
12
19
26
79,532
78,727
79,571
80.087
78,232
78,036
78,752
79,242
1,300
691
819
845
2
9
80,851
80,880
80,762
80,309
81.088
80,238
80,671
80,690
80,202
80,713
79,107
80,495
78,203
80,395
80,167
80,167
1939—Dec
1941—Dec
1945—Dec
1950—Dec
1960—Dec
2,510
2,219
23,708
20,345
27,248
2,510
2,219
23,708
20,336
27,170
1968—De c
1969—De c
1970— Dec
1971—De c
1972—De c
52,529
57,500
61,688
69,158
71,094
1973—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
1974—Jan. *
2,204
1,032
982
1,138
1,122
2,956
3,239
4,322
4,629
5,396
6,810
6.841
Week ending—
1973—Nov.
7
14
21
Dec.
1974—Jan.
16*
23*
30 *
r
r
End oi month
1973—No v
Dec
1974—Jan. *
Wednesday
77,207
79,417
80,862
79,466
9
9
8
8
11,201
77,406
78,441
78,507
2,011
2,421
959
840
3,992
1,385
1,486
2,997
3,146
3,649
3,750
1,315
1,375
859
923
82,406
88,036
86,873
85,685
11,567
11,567
11,567
11,567
400
400
400
400
8,626
8,630
8,656
8,661
5
12
19
26*
79,639
78,206
81,965
76,740
8
9
8
9
78,203
77,590
79,223
76,740
1,436
616
2,742
687
1,581
1,569
485
3,883
3,097
5,198
5,593
970
1,056
1,063
1,964
85,357
84,039
90,035
84,843
11,567
11,567
11,567
11,567
400
400
400
400
8,664
8,668
8,668
8,675
2*
82,641
79,232
81,175
81,251
81,922
8
9
8
8
8
80,667
79,232
80,671
80,501
80,742
1,974
993
2,103
1,239
2,664
1,601
5,912
4,541
4,246
3,069
2,224
1,202
1,444
1,310
1,294
1,373
91,018
87,385
88,078
88,353
87,270
11,567
11,567
11,567
11,567
11,567
400
400
400
400
400
8,677
8,685
8,720
8,723
8,729
1973—Nov. 14
7
21
28
Dec.
1974—Jan.
935
23*
16 p
30*
504
750
1,180
1
Includes Federal agency issues held under repurchase agreements as
of Dec. 1, 1966, and Federal agency issues bought outright as of Sept. 29,
1971.
2
Beginning with 1960 reflects a minor change in concept; see Feb. 1961
BULLETIN, p . 1 6 4 .
8
Beginning Apr. 16, 1969, "Other F.R. assets" and "Other F.R.
liabilities and capital" are shown separately; formerly, they were
netted together and reported as "Other F.R. accounts."
4
Includes industrial loans and acceptances until Aug. 21, 1959, when
industrial loan program was discontinued. For holdings of acceptances
on Wed. and end-of-month dates, see tables on F.R. Banks on following
pages. See also note 2.
5 Includes certain deposits of domestic nonmember banks and foreignowned banking institutions held with member banks and redeposited in
full with Federal Reserve Banks in connection with voluntary participation by nonmember institutions in the Federal Reserve System's program
of credit restraint.
Notes continued on opposite page.
FEBRUARY 1974 • BANK RESERVES AND RELATED ITEMS
A 5
MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS—Continued
(In millions of dollars)
Factors absorbing reserve funds
Treasury
cash
holdings
Deposits, other
than member bank
reserves,
with F.R. Banks
Treasury
Foreign
Other
F.R.
accounts 3
Other 2,5
Member bank
reserves
Other
F.R.
liabilities
and
capital 3
Period or date
Currency
and
coin 6
With
F.R.
Banks
Total 7
Averages of daily figures
739
1,531
1,247
920
250
353
495
360
1,194
849
1.926
1,449
225
146
145
290
272
458
458
735
728
631
364
382
384
414
413
386
346
344
349
622
340
323
2,033
2,956
3,598
3,471
4,121
2,408
3,375
1,674
792
1,718
1,772
1,892
294
302
338
275
330
266
341
300
332
266
522
406
644
645
666
666
652
698
782
838
781
> 752
i 689
' 717
349
2,488
427
2,402
2,189
2,269
1,290
408
616
592
625
615
522
756
656
427
453
350
-1,105
1939—Dec.
1941—Dec.
1945—Dec.
1950—Dec.
1960—Dec.
11,473
12,812
16,027
17,391
16,688
2,595
11,473
12,812
16.027
17,391
19,283
2,192
2,265
2,287
2,362
22,484
23,071
23,925
25,653
24,830
4,737
4,960
5,340
5,676
6,095
27,221
28,031
29,265
31,329
31,353
1968—Dec.
1969—Dec.
1970—Dec.
1971—Dec.
1972—Dec.
2,365
2,482
2,530
2,622
2,721
2,732
2,846
2,877
2,848
2,866
2,854
2,942
26,220
25,432
25,848
26,281
26,214
25,776
27.156
27;377
27,509
28,457
28,260
28,352
6,463
6,031
5,856
5,824
6,007
6,086
6,274
6,296
6,402
6,371
6,383
6,635
32,962
31,742
31,973
32,277
32,393
32.028
33.542
33,785
34,019
34,912
34,727
35,068
1973—Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
2,904
29,283
7,193
36.543
248
292
493
739
1,029
;
1974—Jan.*
Week ending—
34,625
34,871
35,090
34,428
1973—Nov.
7
14
21
28
6,400
6,912
6,545
6,508
34,902
34,444
35,203
35,430
Dec.
5
12
19
26
28,808
29,499
29,682
29,336
28,985
6,781
6,730
7,893
7,178
7,099
35,656
36,296
37,642
36,581
36,151
1974—Jan.
3,025
2,669
28,108
27,060
6,400
6,781
34,592
33,908
3,101
28,253
6,987
35,307
364
338
333
329
2,087
1,120
1,946
1,853
332
580
557
651
5 662
5 696
5 684
2,726
2,738
2,913
2,986
334
315
307
328
1,884
1,597
1,654
2,228
440
297
397
531
5
5
5
5
670
651
674
694
2.958
2,769
2,923
3,047
28,418
27,448
28,574
28,838
331
329
350
363
359
2,254
2,344
2,170
2,351
3,099
331
544
318
398
494
5
5
5
5
5
978
699
706
709
646
2,977
2,776
2,850
2.959
3,059
5 722
r
28,062
28,040
29,009
28,058
r
6,479
6,747
5,997
6,286
r
2
9
16*
23*
30*
End of month
5 672
5 1,419
317
317
1,945
2,542
420
251
352
2,844
392
353
343
333
333
1,557
1,530
1,404
2,001
413
552
759
516
5
5
5
5
654
697
662
645
2,679
2,808
2,988
3,029
27,717
32,547
30,828
29,133
6,479
6,745
5,997
6,286
34,280
39,376
36,909
35,503
333
335
303
321
1,705
1,524
2,092
2,716
369
297
283
729
5
5
5
5
716
632
670
593
2,720
2,801
2,986
3,021
29,169
27,374
32,212
25,361
6,400
6,912
6,545
6,508
35,653
34,370
38,841
31,953
330
356
370
368
370
1,985
2,880
1,851
2,898
3,013
309
543
239
713
485
5
5
5
5
5
713
705
650
693
668
2,758
2,777
2,948
3,001
3,103
33,111
29,096
31,621
30,990
30,350
6,781
6,730
7,893
7,178
7,099
39,959
35,893
39,581
38,235
37,516
1973—Nov.
Dec.
1974—Jan.*
Wednesday
6 Part allowed as reserves Dec. 1, 1959—Nov. 23, 1960; all allowed
thereafter. Beginning with Jan. 1963, figures are estimated except for
weekly averages. Beginning Sept. 12, 1968, amount is based on closeof-business figures for reserve period 2 weeks previous to report date.
7 Beginning with week ending Nov. 15, 1972, includes $450 million of
reserve deficiencies on which F.R. Banks are allowed to waive penalties
for a transition period in connection with bank adaptation to Regulation J
as amended effective Nov. 9, 1972. Beginning 1973, allowable deficiencies
1973—Nov.
7
14
21
28
Dec. 5
12
19
26*
1974—Jan.
2*
9*
16*
23*
30*
included are (beginning with first statement week of quarter): Ql, $279
million; Q2, $172 million; Q3, $112 million; Q4, $84 million.
8
Includes securities loaned—fully secured by U.S. Govt, securities
pledged with F.R. Banks.
9 Includes securities loaned—fully secured by U.S. Govt, securities
pledged with F.R. Banks. Also reflects securities sold, and scheduled to
be bought back, under matched sale/purchase transactions.
For other notes see opposite page.
A 6
BANK RESERVES AND RELATED ITEMS • FEBRUARY 1974
RESERVES AND BORROWINGS OF MEMBER BANKS
(In millions of dollars)
Large banks 2
All member banks
All other banks
New York City
Borrowings
Reserves
Period
Total
held 1
Required
Excess 1
1939 Dec
1941 Dec
1945 Dec
1950—Dec
11 473
12,812
16,027
17,391
6,462
9,422
14,536
16,364
5,011
3,390
1,491
1,027
3
5
334
142
2,611
989
48
125
192
58
540
295
14
8
I960—Dec
1965—Dec
1967—Dec
1968 Dec
1969—Dec
1970—Dec
1971—De c
1972—De c
19,283
22,719
25,260
27,221
28,031
29,265
31,329
31,353
18,527
22,267
24,915
26,766
27,774
28,993
31,164
31,134
756
452
345
455
257
272
165
219
87
454
238
765
1,086
321
107
1,049
29
41
18
100
56
34
25
-20
19
111
40
230
259
25
35
301
4
15
8
15
18
7
1
13
1973
32,962
31,742
31,973
32,277
32,393
32,028
33,542
33,785
34,019
34,912
34,727
35,068
32,620
31,537
31,678
32,125
32,275
31,969
33,199
33,539
33,782
34,712
34,523
34,806
342
205
295
152
118
59
343
246
237
200
204
262
1,165
1,593
1,858
1,721
1,786
1,789
2,051
2,143
1,861
1,467
1,399
1,298
193
324
176
146
110
145
135
109
115
74
180
74
2
5
30
77
124
163
147
126
84
41
95
-13
72
38
-35
-62
144
37
-7
11
27
-23
36,543
36,396
147
1,045
18
53
Jan
Feb
May
June
July
Aug
Sept
Oct
Dec
1974—Jan.f
Total
Seasonal
Excess
Borrowings
Other
City of Chicago
Excess
Borrowings
Excess
Borrowings
Excess
Borrowings
5
1,188
1,303
418
232
1
96
50
671
804
1,011
663
3
4
46
29
8
23
13
85
27
4
8
55
100
67
50
90
6
42
-35
-42
20
228
105
270
479
264
22
429
623
330
267
250
177
189
174
-160
40
92
80
180
321
28
42
264
-6
8
6
-4
22
-7
24
1
-24
43
108
105
102
9
12
28
67
53
62
54
28
28
— 33
-33
7
-111
-65
-78
-23
6
31
-11
-19
28
578
693
857
828
881
904
855
754
712
589
593
761
-1
-28
-47
45
40
37
88
98
81
115
136
133
286
471
723
738
783
712
994
1,227
972
750
598
435
135
-48
17
-67
543
142
350
149
-21
46
-82
204
713
66
201
260
10
-10
17
-26
15
279
19
189
19
110
83
-107
-24
-165
-10
525
420
635
511
806
39
-15
23
-40
-35
234
183
273
307
393
454
115
195
28
13
24
103
-52
10
-26
917
759
851
842
169
102
109
42
836
778
856
1,165
Week ending—
1973
Jan
3
10
17
24
31
32,604
32.506
34,009
32,511
32,556
32,044
32,380
33,668
32,545
32,103
560
126
341
-34
453
1,751
688
1,298
1,097
1,309
1973—July
4
11
18
25
33,328
32.507
33,723
33,827
32,697
32,527
33,262
33,793
631
-20
461
34
2,402
1,680
1,720
2,081
111
117
117
128
190
-131
232
-150
50
57
-51
-2
56
8
15
22
29
34,051
33,455
33,827
33,600
33,796
33,552
33,381
33,511
33,558
33,673
499
74
316
42
123
2,095
2,006
1,914
2,133
2,561
141
158
148
163
185
266
-40
24
-24
-47
90
50
172
137
12
24
-3
2
-21
88
41
54
36
68
-5
-68
21
-84
2
785
741
656
712
948
114
46
162
36
77
1,222
1,134
1,154
1,213
1,408
Sept.
5
12
19
26
34,121
33,525
33,860
34,144
33,644
33,401
33,724
34,070
477
124
136
74
2,363
1,488
1,704
2,189
168
145
139
150
201
-46
-4
-21
143
•32
91
217
29
-5
3
27
117
20
15
127
29
-38
-40
-80
799
590
758
855
106
101
65
36
1,304
846
840
990
Oct.
3
10
17
24
31
34,672
34,795
35,015
35,111
34,948
34,220
34,395
35,106
34,741
34,817
452
400
-91
370
131
1,519
1,351
1,169
1,912
1,455
144
131
120
125
119
88
128
-158
131
-69
43
43
26
185
72
7
1
-9
7
30
41
9
58
66
81
130
10
-81
40
1
463
535
520
901
473
143
177
73
108
85
972
764
565
760
829
Nov.
7
14
21
28
265
146
384
85
1,170
1,521
1,572
1,287
93
80
85
84
102
-92
111
-56
192
262
224
94
-54
12
61
15
28
-8
29
65
-33
ioi
Dec
1974—Jan.
r
34,625
34,87l
35,090
34,428
r
34,360
34,725
34,706
34,343
r
2
-13
r
r
383
716
625
541
r
141
125
122
103
r
583
482
708
624
5
12
19
26
34,902
34,444
35,203
35,430
34,456
34,472
34,892
34,958
446
-28
311
472
1,475
1,303
1,488
1,039
57
45
40
35
168
-139
137
106
15
-23
29
30
11
11
163
29
-37
-34
81
889
769
837
676
150
87
95
171
575
421
488
363
2
9
\6P
23P
30p
35,656
36,296
37,642
36,581
36,151
35,268
36,210
37,321
36,675
35,875
388
86
321
-94
276
1,210
776
989
1,182
1,221
31
19
20
13
17
80
2
54
-141
99
140
271
45
183
20
-6
-47
11
-12
-52
141
44
24
-96
31
-126
31
599
174
679
627
734
223
160
158
118
131
330
287
265
372
467
1 Beginning with week ending Nov. 15, 1972, includes $450 million of
reserve deficiencies on which F.R. Banks are allowed to waive penalties
for a transition period in connection with bank adaptation to Regulation J
as amended effective Nov. 9, 1972. Beginning 1973, allowable deficiencies
included are (beginning with first statement week of quarter): QI, $279
million; Q2, $172 million; Q3, $112 million; Q4, $84 million.
2
Beginning Nov. 9, 1972, designation of banks as reserve city banks
for reserve-requirement purposes has been based on size of bank (net
demand deposits of more than $400 million), as described in the Bulletin
for July 1972, p. 626. Categories shown here as "Large" and "All other"
parallel the previous "Reserve city" and "Country" categories, respectively
(hence the series are continuous over time).
NOTE.—Monthly and weekly data are averages of daily figures within
the month or week, respectively. Beginning with Jan. 1964 reserves are
estimated except for weekly averages.
Borrowings at F.R. Banks: Based on closing figures.
Effective Apr. 19, 1973, the Board's Regulation A, which governs lending by Federal Reserve Banks, was revised to assist smaller member banks
to meet the seasonal borrowing needs of their communities.
FEBRUARY 1974 • MAJOR RESERVE CITY BANKS
A 7
BASIC RESERVE POSITION, AND FEDERAL FUNDS AND RELATED TRANSACTIONS
(In millions of dollars, except as noted)
Less—
Reporting banks
and
week ending—
Total—46
Net transactions
Gross transactions
Net-
Borrowings
at F.R.
Banks
Net
interbank
Federal
funds
trans.
Per cent
Surplus
of
avg.
or
deficit required
reserves
Purchases
Excess
Related transactions with
U.S. Govt, securities dealers
Interbank Federal funds transactions
Basic reserve position
Total
two-way
transactions 2
Purchases
of net
buying
banks
Sales
of net
selling
banks
Loans
to
dealers 3
Borrowings
from
dealers 4
Net
loans
banks
Dec.
5
12
19
26
178
9
40
333
322
531
768
180
12,076
14,409
14,949
14,190
-12,219
-14,732
-15,677
-14,037
80.5
98.0
100.5
90.8
18,089
20,065
20,537
19,890
6,013
5,655
5,588
5,700
5,041
4,936
5,028
4,987
13,048
15,129
15,509
14,903
972
720
561
713
1,801
2,067
2,322
2,660
669
523
503
446
1,132
1,545
1,819
2,214
Jan.
2
9
16
23
30
183
21
30
-99
18
605
357
321
420
415
13,536
15,414
17,150
18,338
13,483
-13,536
-15,750
-17,441
-16,857
-13,880
89.1
96.1
102.1
102.3
87.7
20,164
21,147
22,323
21,005
19,504
6,629
5,733
5,173
4,667
6,021
5,743
4,787
4,430
4,141
4,773
14,421
16,360
17,894
16,864
14,732
886
946
744
526
1,249
2,732
2,460
2,329
2,309
1,919
563
420
465
502
542
2,169
2,040
1,864
1,807
1,377
102
163
3,774
4,759
4,940
4,944
-3,625
-4,881
-5,017
-4,757
58.7
79.8
78.7
76.1
4,686
5,589
5,788
5,843
912
830
848.
899
912
830
848
899
3,774
4,759
4,940
4.944
1,198
1,429
1,674
1,669
351
334
329
273
847
1,096
1,344
1,395
-4,418
-5,135
-6,189
-4,870
-3,229
69.2
76.7
88.8
72.7
50.9
5,560
5,823
6,955
5,732
4,582
1,144
878
744
748
1,339
1,144
878
744
748
1,204
4,416
4.945
6,212
4,625
3,378
135
1,803
1,642
1,663
1,555
1,263
343
222
302
308
286
1,460
1,420
1,361
1,247
976
95.4
110.1
115.4
100.7
13,403
14,476
14,749
14,047
5,101
4,825
4,740
4,801
4,129
4,106
4,180
4,088
9,274
10,370
10,570
9,959
972
720
561
713
603
638
649
991
318
189
174
172
285
449
475
819
886
946
744
526
1,114
929
819
667
754
657
220
198
163
194
256
709
621
503
560
401
8 in New York City
Dec.
5
12
19
26
149
-19
86
Jan.
2
9
16
23
30
126
40
23
-70
29
127
230
176
15
4,417
4,945
6,212
4,624
3,243
12.
26.
29
28
-46
145
322
429
606
180
8,302
9,650
10,009
9,246
-8,594
-10,051
2.
9.
57
-19
8
-30
478
127
321
244
400
9,119
10,469
10,939
11,713
10,240
-9,541
-10,615
-11,252
-11,987
-10,651
102.8
109.6
111.2
122.6
112.3
14,604
15,324
15,368
15,633
14,922
5,485
4,855
4,430
3,919
4,682
4,599
3,909
3,686
3,393
3,569
10,005
11,415
11,682
12,239
11,354
3,455
3,838
4,085
3,208
-3,442
-3,856
-4,108
-3,151
232,7
247.3
251.3
206.1
4,386
4,570
4,766
4,007
931
732
859
732
3,527
3,838
4,084
3,281
356
405
366
364
356
405
366
364
3,072
3,686
3,984
4,513
4,101
-3,172
202.3
211.3
258.6
251.7
797
922
843
672
729
3,073
-3,976
-4,498
-4,116
3,870
4,607
4,827
5,185
4,830
435
396
364
382
343
436
396
364
382
343
188
38 outside
New York City
Dec.
5.
19.
Jan.
16.
23.
30.
-11
-10,661
-9,281
5 in City of Chicago
Dec.
26.
14
-7
-23
57
2.
41
5.
12.
19.
Jan.
9.
16.
23.
30.
-16
8
15
-14
11
141
44
-3,745
216.4
681
799
681
727
797
922
3,685
828
672
693
3,999
4,513
4,138
33 others
Dec.
Jan.
5.
12.
19.
26.
16
35
-23
89
322
418
606
180
4,847
5,812
5,924
6,038
-5,153
-6,196
-6,553
-6,130
86.2
79.7
9,018
9,906
9,983
10,040
4,171
4,094
4,059
4,002
3,270
3,374
3,498
3,361
5,747
6,532
6,485
6,679
901
720
561
641
247
233
283
627
318
189
174
172
-71
44
109
455
2.
9.
16
-3
23.
30.
-44
-3
338
84
321
244
400
6,047
6,783
6,955
7,201
6,139
-6,369
-6,870
-7,276
-7,489
-6,535
82.6
86.4
88.3
93.2
83.3
10,735
10,717
10,541
10,448
10,092
4,688
3,933
3,586
3,247
3,954
3,802
2,987
2,858
2,721
2,876
6,932
7,729
7,683
7,727
7,216
886
946
728
526
,078
493
423
302
372
314
220
198
163
194
256
273
224
139
178
58
16.
68.4
81.8
1 Based upon reserve balances, including all adjustments applicable to
the reporting period. Prior to Sept. 25,1968, carryover reserve deficiencies,
if any, were deducted. Excess reserves for later periods are net of all carryover reserves.
2
Derived from averages for individual banks for entire week. Figure
for each bank indicates extent to which the bank's weekly average purchases and sales are offsetting.
3 Federal funds loaned, net funds supplied to each dealer by clearing
banks, repurchase agreements (purchases of securities from dealers
subject to resale), or other lending arrangements.
4
Federal funds borrowed, net funds acquired from each dealer by
clearing banks, reverse repurchase agreements (sales of securities to
dealers subject to repurchase), resale agreements, and borrowings secured
by Govt, or other issues.
NOTE.—Weekly averages of daily figures. For description of series
and back data, see Aug. 1964 BULLETIN, pp. 944-74.
F.R. BANK INTEREST RATES • FEBRUARY 1974
A 8
CURRENT RATES
(Per cent per annum)
Loans to member banks—
Under Sees. 13 and 13a 1
Loans to all others under
last par. Sec. 13 3
Under Sec. 10(b) 2
Federal Reserve Bank
Rate on
Jan. 31,
1974
Effective
date
Previous
rate
Rate on
Jan. 31,
1974
Effective
date
Previous
rate
Rate on
Jan. 31,
1974
Effective
date
Previous
rate
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
71/2
m
71/2
m
71/2
m
Aug.
Aug.
Aug.
Aug.
Aug.
Aug.
23,
14,
14,
14,
14,
16,
1973
1973
1973
1973
1973
1973
7
7
7
7
7
7
8
8
8
8
8
8
Aug.
Aug.
Aug.
Aug.
Aug.
Aug.
23,
14,
14,
14,
14,
16,
1973
1973
1973
1973
1973
1973
m
m
m
71/2
71/2
71/2
4
9i/ 2
9i/i
91/i
9i/i
4
9i/ 2
4
9i/2
Aug.
Aug.
Aug.
Aug.
Aug.
Aug.
23,
14,
14,
14,
14,
16,
1973
1973
1973
1973
1973
1973
9
9
9
9
9
9
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
71/2
m
71/2
71/2
71/2
71/2
Aug.
Aug.
Aug.
Aug.
Aug.
Aug.
14,
14,
14,
14,
14,
14,
1973
1973
1973
1973
1973
1973
7
7
7
7
7
7
8
8
8
8
8
8
Aug.
Aug.
Aug.
Aug.
Aug.
Aug.
14,
14,
14,
14,
14,
14,
1973
1973
1973
1973
1973
1973
m
71/2
714
71/2
71/2
71/2
4
9i/ 2
4
9i/ 2
4
Aug.
Aug.
Aug.
Aug.
Aug.
Aug.
14,
14,
14,
14
14,
14,
1973
1973
1973
1973
1973
1973
9
9
9
9
9
9
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. Maximum maturity: 90 days except that discounts of certain
bankers' acceptances and of agricultural paper may have maturities not
over 6 months and 9 months, respectively.
2 Advances secured to the satisfaction of the F.R. Bank.
Maximum
maturity: 4 months.
3 Advances to individuals, partnerships, or corporations other than
member banks secured by direct obligations of, or obligations fully
9i/2
491/2
491/2
91/2
guaranteed as to principal and interest by, the U.S. Govt, or any
agency thereof. Maximum maturity: 90 days.
4
Also effective on the same dates as the other rates shown above for
the eight Reserve Banks so designated, a rate of 7Vi percent was approved
on advances to nonmember banks, to be applicable in special circumstances
resulting from implementation of changes in Regulation J, which became
effective on Nov. 9, 1972. See "Announcements" on p. 942 of the Oct.
1 9 7 2 BULLETIN a n d p . 9 9 4 o f t h e N o v . 1 9 7 2 BULLETIN.
SUMMARY OF EARLIER CHANGES
(Per cent per annum)
Effective
date
Range
(or level)—
All F.R.
Banks
IV2
1
F.R.
Bank
of
N.Y.
IV2
1955—Apr. 14
15
May 2
Aug. 4
5
12
Sept. 9
13
Nov. 18
23
l /2-13/ 4
1V2-1V4
13/4
134-214
1 3 4-214
2 -214
2 -214
21/4
21/4-21/2
21/2
IV2
134
134
134
2
2
214
214
21/2
21/2
1956—Apr. 13
20
Aug. 24
31
21/2-3
234-3
234-3
3
23/4
23/4
3
3
31/2
3
3
1957—Aug.
9
23
Nov. 15
Dec. 2
1958—Jan.
Mar.
Apr.
May
Aug.
Sept.
Oct.
Nov.
22
24
7
13
21
18
9
15
12
23
24
7
3
-31/2
31/2
-3i/ 2
3
234-3
234-3
21/4-3
214-234
3
21/4
l 4-2i/4
3
1%
l 4-2
l34-2
2
2 -21/2
21/2
3
3
3
234
21/4
21/4
21/4
3
1 4
134
3
l /4
2
2
2
21/2
Effective
date
1959—Mar.
6
16
May 29
June 12
Sept. 11
18
1960—June
3,
10,
14,
Aug. 12,
Sept. 9,
1963—July 17,
F.R.
Bank
of
N.Y.
2i/ 2 -3
3
3 -31/2
3
3
31/2
31/2-4
4
3i/ 2 -4
31/2-4
31/2
3
-31/2
3
3
31/2
31/2-4
26,
1964—Nov. 24,
30,
1965—Dec. 6,
13,
1967—Apr.
7,
14.
Nov. 20,
27,
1968—Mar. 15,
22,
Apr. 19,
26,
Aug. 16,
30,
Dec. 18,
20,
1969—Apr.
4
NOTE.—Rates under Sees. 13 and 13a (as described in table and notes
above). For data before 1955, see Banking and Monetary Statistics, 1943,
pp. 439-42, and Supplement to Section 12, p. 31.
Range
(or level)—
All F.R.
Banks
-31/2
4
4
4
4
4
4
31/2
31/2
31/2
3 V2
4
4
41/2
41/2
-41/2
4
4
5V4-51/2
51/2
41/2
41/2
41/2
5
51/2
51/2
51/2
51/4
51/2
51/2
51/2-6
6
4
-41/2
41/2
41/2-5
5
5 -51/2
51/2
5*4-51/2
51/4
6
1970—Nov. 11.
13.
16.
Dec. 1.
4.
11 .
1971—Jan.
3
3
-41/2
41/2
4
31/2
31/2
Effective
date
6
Feb.
July
Nov.
Dec.
8.
15.
19.
22.
29.
13.
19.
16.
23.
11.
19.
13.
17.
24.,
1973—Jan. 15.
Feb. 26.,
Mar. 2.
Apr. 23.,
May 4.
18.'!
June 11..
15.,
July
2.,
Aug. 14.
23.
In effect Jan. 31, 1974.
Range
(or level)—
All F.R.
Banks
534-6
534
51/2-53/4
51/2-53/4
51/2
5!4-5i/ 2
51/4
5 -514
5 -5i/ 4
5
434-5
434
434-5
5
434-5
434
41/2-434
41/2-434
41/2
F.R.
Bank
of
N.Y.
6
53/4
534
534
51/2
51/2
514
51/4
514
5
5
5
434
5
5
5
434
434
41/2
41/2
61/2
7
7 -71/2
71/2
5
5^2
51/2
51/2
53/4
6
6
61/2
6i/ 2
7
7i/ 2
71/2
71/2
71/2
5
5
-5i/ 2
51/2
51/2-534
534
534-6
6
6
-61/2
FEBRUARY 1974 • RESERVE REQUIREMENTS
A 9
RESERVE REQUIREMENTS ON DEPOSITS OF MEMBER BANKS
(Deposit intervals are in millions of dollars. Requirements are in per cent of deposits.)
Net demand
Effective
date 1
Reserve city
Over
5
0-5
In effect
Jan 1 1963
1966
j u iy
Sept
1967—Mar
Mar
1968—Jan.
1969—Apr
1970—Oct
14 21
8 15
2
16
11, 1 8 . . .
17
1
Other
161/2
17
17
171/2
Over
5
0-5
12
121/2
0-5
Other time
4
4
3^2
3
31/2
3
2-10
10-100 100-400
Over
5
1972—Nov. 9 .
Nov. 16
5
6
8
1973—July 19
In effect
Jan. 31, 1974
8
10
12
Id/2
12V2
7
IOI/2 121/2
I61/2
13
131/2
131/2
Savings
Over
400 5
171/2
0-5
Over
5 6
83
83
85
3
3
5
18
18
5
Present legal requirement:
Net demand deposits, reserve city banks
Net demand deposits, other banks
Time deposits
1
When two dates are shown, the first applies to the change at reserve
city banks and the second to the change at country banks. For changes
prior
to 1963 see Board's Annual Reports.
2
(a) 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) Requirement schedules are graduated, and each deposit interval
applies to that part of the deposits of each bank.
(c) Since Oct. 16, 1969, member banks have been required under
Regulation M to maintain reserves against foreign branch deposits computed on the basis of net balances due from domestic offices to their foreign
branches above a specified base and against foreign branch loans to U.S.
residents, which until June 21,1973, were also maintained above a specified
base. The reserve-free base relating to net balances due from domestic
banks to foreign branches is being reduced gradually beginning July 5,
1973, and will be eliminated by April 1974. The applicable reserve percentage, originally 10 per cent, was increased to 20 per cent on Jan. 7,1971,
and effective June 21, 1973, was reduced to 8 per cent. Regulation D imposes a similar reserve requirement on borrowings above a specified base
from foreign banks by domestic offices of a member bank. The reserve-free
base related to this type of borrowings is being reduced gradually and will
be eliminated by April 1974. For details, see Regulations D and M and
appropriate supplements and amendments thereto.
3
Effective Jan. 5, 1967, time deposits such as Christmas and vacation
club accounts became subject to same requirements as savings deposits.
For4 other notes see 2(b) and 2(c) above.
Effective Nov. 9, 1972, a new criterion was adopted to designate reserve cities, and on the same date requirements for reserves against net
demand deposits of member banks were restructured to provide that each
member bank will maintain reserves related to the size of its net demand
deposits. The new reserve city designations are as follows: A bank having
net demand deposits of more than $400 million is considered to have the
3
Time
Effective
date
0-2
Savings
4
121/2
13
Net demand 2 , 4
Other time
12
16i/2
...
Time 3
(all classes of
banks)
2
Minimum
Maximum
10
7
3
22
14
10
character of business of a reserve city bank, and the presence of the head
office of such a bank constitutes designation of that place as a reserve
city. Cities in which there are F.R. Banks or branches are also
reserve cities. Any banks having net demand deposits 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 Regulation D and appropriate supplements and amendments.
5
Reserve city banks.
6 Except as noted below, effective Dec. 27, 1973, member banks are
subject to an 8 per cent marginal reserve requirement against increases
in the aggregate of (a) outstanding time deposits of $100,000 and over,
(b) outstanding funds obtained by the bank through issuance by a bank's
affiliate of obligations subject to the existing reserve requirements on time
deposits, and (c) funds from sales of finance bills. The 8 per cent requirement applies to balances above a specified base, but is not applicable to
banks that have obligations of these types aggregating less than $10 million.
For the period June 21 to Aug. 30, 1973, (a) included only single-maturity
time deposits. Previous requirements have been: 8 per cent for (a) and (b)
from June 21 to Sept. 19, 1973, and for (c) from July 12 to Sept. 19, 1973;
and 11 per cent from Sept. 20 to Dec. 26, 1973. For details, see Regulation
D and appropriate supplements and amendments.
7 The 16 Vi per cent requirement applied for one week, only to former
reserve city banks. For other banks, the 13 per cent requirement was
continued in this deposit interval.
8
See preceding columns for earliest effective date of this rate.
NOTE.—All required reserves were held on deposit with F.R. Banks
June 21, 1917, until Dec. 1959. From Dec. 1959 to Nov. 1960, member
banks were allowed to count part of their currency and coin as reserves;
effective Nov. 24, 1960, they were allowed to count all as reserves. For
further details, see Board's Annual Reports.
M A X I M U M INTEREST RATES; MARGIN REQUIREMENTS • FEBRUARY 1974
A 10
MAXIMUM INTEREST RATES PAYABLE ON TIME AND SAVINGS DEPOSITS
(Per cent per annum)
Rates beginning July 1, 1973
Rates July 20, 1966—June 30, 1973
Effective date
Effective date
Type of deposit
Type of deposit
July 20,
1966
Apr. 19,
1968
Jan. 21,
1970
4%
Savings deposits
Other time deposits—21
Multiple maturity:
30-89 days
90 days to 1 year..
1 year to 2 years. .
2 years or more. . .
Single-maturity:
Less than $100,000—
30 days to 1 year..
1 year to 2 years. .
2 years and over. . .
$100,000 or more—
30-59 days
60-89 days
90-179 days
180 days to 1 year.
1 year or more
1
Sept. 26,
1966
4%
5
5%
4
5
5*4
5
5%
5%
5 V4
5%
5%
5%
For exceptions with respect to certain foreign time deposits, see
2
Multiple-maturity time deposits include deposits that are automatically renewable at maturity without action by the depositor and deposits
that are payable after written notice of withdrawal.
3 Maximum rates on all single-maturity time deposits in denominations
of $100,000 or more have been suspended. Rates that were effective
Jan. 21, 1970, and the dates when they were suspended are:
per
per
per
per
per
cent)
cent |
cent ]
cent [
cent)
5
5
6
6 fc
2*
6%
713/4
()
5Vi
(4)
(3)
3
|61/4
6*4
6 lA
6%
7l
l /i
Savings deposits
Other time deposits (multiple- and singlematurity)—
Less than $100,000:
30-89 days
90 days to 1 year
1 year to 2% years
2Vi years or more
4 years or more in minimum denomination of $1,000
$100,000 or more
.
June 24, 1970
May 16, 1973
Rates on multiple-maturity time deposits in demonination of $100,000
or more were suspended July 16, 1973, when the distinction between
single- and multiple-maturity deposits was eliminated.
4 Between July 1 and Oct. 31, 1973, there was no ceiling for 4-year
certificates with minimum denomination of $1,000. The amount of such
certificates that a bank could issue was limited to 5 per cent of its total
time and savings deposits. Sales in excess of that amount were subject to
the 6Vi per cent ceiling that applies to time deposits maturing in 2Vi years
or more.
Effective Nov. 1, 1973, a ceiling rate of 7V4 per cent was imposed on
certificates maturing in 4 years or more with minimum denomination
of $1,000. There is no limitation on the amount of these certificates that
banks may issue.
NOTE.—Maximum rates that may be paid by member banks are established by the Board of Governors under provisions of Regulation Q;
however, a member bank may not pay a rate in excess of the maximum
rate payable by State banks or trust companies on like deposits under
the laws of the State in which the member bank is located. Beginning
Feb. 1, 1936, maximum rates that may be paid by nonmember insured
commercial banks, as established by the FDIC, have been the same as
those in effect for member banks.
For previous changes, see earlier issues of the BULLETIN.
MARGIN REQUIREMENTS
(Per cent of market value)
For credit extended under Regulations T (brokers and dealers),
U (banks), and G (others than brokers, dealers, or banks)
On margin stocks
Beginning
date
1937—Nov.
1945—Feb.
July
1946—Jan.
1947—Feb.
1949—Mar.
1951—Jan.
1953—Feb.
1955—Jan.
Apr.
1958—Jan.
Aug.
Oct.
I960—July
1962—July
1963—Nov.
1
5
5
21
1
30
17
20
4
23
16
5
16
28
10
6
1968—Mar. 11
June
8
1970—May
6
1971—Dec.
6
1972—Nov. 24
Effective Jan.
On convertible bonds
Ending
date
1945—Feb.
July
1946—Jan.
1947—Jan.
1949—Mar.
1951—Jan.
1953—Feb.
1955—Jan.
Apr.
1958—Jan.
Aug.
Oct.
1960—July
1962—July
1963—Nov.
1968—Mar.
June
1970—May
1971—Dec.
1972—Nov.
1974—Jan.
3, 1974
4.
20.
31
29.
16.
19.
3
22.
15
4.
15,
27,
9.
5.
10
7.
5
22,
2
On short sales
(T)
40
50
75
50
50
75
100
100
75
50
75
50
60
70
50
70
90
70
50
70
75
50
75
50
60
70
50
70
90
70
50
70
70
80
65
55
65
50
50
60
50
50
50
50
70
80
65
55
65
50
NOTE.—Regulations G, T, and U, prescribed in accordance with the Securities Exchange Act of 1934, limit the amount of credit
to purchase and carry margin stocks that may be extended on securities as collateral by prescribing a maximum loan value, which is
a specified percentage of the market value of the collateral at the time the credit is extended; margin requirements are the difference
between the market value (100 per cent) and the maximum loan value. The term margin stocks is defined in the corresponding regulation.
Regulation G and special margin requirements for bonds convertible into stocks were adopted by the Board of Governors effective
Mar. 11,1968.
Nov. 1,
1973
(( 3 ))
(3)
(3)
(3)
6
BULLETIN f o r F e b . 1 9 6 8 , p . 167.
30-59 days
60-89 days
90-179 days
180 days to 1 year
1 year or more
July 1,
1973
FEBRUARY 1974 • OPEN MARKET ACCOUNT
A 11
TRANSACTIONS OF THE SYSTEM OPEN MARKET ACCOUNT
(In millions of dollars)
Outright transactions in U.S. Govt, securities, by maturity (excluding matched sale-purchase transactions)
Treasury bills
1
Others within 1 year
Period
11,074 5,214
8,896 3,642
8,522 6,467
1970
1971
1972
1972
Dec
1971 Jan
Feb
Mar.. . .
May....
June....
July....
Aug.. . .
Sept
Oct
Nov....
Dec
Exch.,
Gross maturity
sales shifts, or
redemptions
-3,483
-6,462
2,933
99
1,036
125
2,160
1,064
2,545
Gross
purchases
498
530
695
260
623
218
495
945
401
153
489
70
Total outright
Gross
sales
Gross
purchases
Gross Exch. or
sales maturity
shifts
Gross Exch. or
sales maturity
shifts
Gross Exch. or
sales maturity
shifts
Gross
purchases
848
1,338
789
5,430
4,672
-1,405
249
933
539
-1,845
685
-2,094
93
311
167
61
3,476
79
-2,068
32
78
51
-1,408
25
200
200
51
600
163
60
456
564
-102
150
250
351
836
-919
-813
1,101
10
41
75
1.515
34
-1,316
1,316
123
27
17
Matched
sale-purchase
transactions
(Treasury bills)
1
Redemptions
Gross
sales
Gross
purchases
37
Gross
sales
12,177
16,205
23,319
12,177
16,205
23,319
33,859
44,741
31,103
33,859
43,519
32,228
941
498
135
4,142
4,142
4,863
4,765
405
1,205
4,521
1,941
2,101
1,105
4,630
3,405
9,632
6,981
4,735
2,089
3,435
9,719
2,774
6,024
5,664
7,379
5,621
7,651
2,234
3,309
8,220
6,637
9,523
8,928
3,034
5,478
5,978
8,240
5,621
6,686
2,492
2.752
7,859
7,525
10,202
2,116
599
1,656
1,218
-1,367
893
2,076
-1,005
72
2,325
-1,360
1,387
623
218
495
945
401
153
489
70
1,101
10
1,205
4,521
1,941
2,101
1,105
4,630
3,405
9,632
6,981
4,735
2,089
3,435
1
Before Nov. 1973 BULLETIN, included matched sale-purchase transactions,
which are now shown separately.
2
Includes special certificates acquired when the Treasury borrows
directly from the Federal Reserve, as follows: June 1971, 955; Sept. 1972,
38; Aug. 1973, 351; Sept. 1973, 836.
-2,220
331
35
Federal agency obligations
Net
change
in U.S.
Govt,
securities
2,160
2,019
2,862
200
200
51
600
163
60
807
1,400
100
680
-34
125
116
5,214
3,642
6,467
530
695
260
-78
468
-23
Repurchase
agreements
(U.S. Govt,
securities)
Gross
purchases
11
19
127
50
12,362
12,515
10,142
1,855
1,754
1,569
1,584
717
1,274
1,666
1,006
1,316
2,117
1,116
2,145
Over 10 years
5-10 years
1-5 years
-135
941
1,855
1,558
1,569
1,377
717
1,047
1,640
655
480
2,117
583
1,919
Gross
purchases
Gross
purchases
Gross Redempsales
tions
Gross
purchases
2
Outright
Sales or
redemptions
Gross
purchases
4,988
8,076
— 312
485
1,197
370
149
14
Repurchase
agreements,
net
101
-88
18
14
19
21
19
6
20
30
4
3
84
229
174
176
74
212
Bankers'
acceptances,
net
106
157
-95
-20
20
-126
Repurchase
agreements
Outright
-6
22
-9
13
48
-28
61
-65
-29
25
35
181
-145
36
7
11
-3
—1
7
-1
-17
-12
-7
-9
8
-2
23
23
95
-66
-36
-52
78
-41
69
-46
-34
-26
3 Net change in U.S. Govt, securities, Federal agency obligations, and
bankers' acceptances.
NOTE.—Sales, redemptions, and negative figures reduce System holdings ; all other figures increase such holdings.
CONVERTIBLE FOREIGN CURRENCIES HELD BY FEDERAL RESERVE BANKS
(In millions of U.S. dollar equivalent)
End of
period
Total
Pounds
sterling
1969—Dec
1970—Dec
1971—Dec
1,967
257
18
1,575
154
3
1972—Oct
Nov
Dec
211
200
192
1973—Jan
Feb
Mar
Apr
May
June..
July
Aug
Sept
Oct
•
*
*
92
4
4
4
4
4
4
*
4
4
*
*
*
*
*
*
*
*
*
Austrian
schillings
Belgian
francs
Canadian
dollars
Danish
kroner
French
francs
199
German
marks
60
98
2
Italian
lire
Japanese
yen
Netherlands
guilders
Swiss
francs
3*
4
4
8
164
164
164
16
20
20
21
7
6
67
20
3
3
3
3
3
3
3
3
3
3
125
A 12
FEDERAL RESERVE BANKS • FEBRUARY 1974
CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS
(In millions of dollars)
End of month
Wednesday
Jan. 30
Jan. 23
Jan.16
1973
1974
1974
Item
Jan. 9
Jan. 2
Jan. 31
Dec. 31
Jan. 31
Assets
11,460
400
Special Drawing Rights certificate account
Loans:
Acceptances:
Federal agency obligations:
U.S. Govt, securities:
Bought outright:
Held under repurchase agreements
Total U.S. Govt, securities
11,460
400
11,460
400
11,460
400
11,460
400
11,460
400
11,460
400
10,303
400
305
293
280
266
268
311
271
353
1,601
2,664
1,239
2,103
993
959
1,258
1,310
67
83
65
10
65
43
65
65
205
68
68
82
59
1,927
160
1,909
72
1,920
22
1,920
1,920
312
1,927
1,937
42
1,311
61
37,075
36,929
37,088
35,649
37,084
36,500
36,897
30,989
38,591
3,149
38,514
3,149
38,514
3,149
38,514
3,149
38,514
3,149
38,591
3,149
38,412
3,149
36,681
3,463
i 78,815
1,020
i 78,592
678
i 78,751
482
1,277,312
i 78,747
1,662
1 78,240
i 78,458
58
1 71,133
889
79,835
79,270
79,233
77,312
80,409
78,240
78,516
72,022
83,673
2*7,.577
224
83,990
^8,906
224
82,522
2*10,800
225
81,400
2*10,500
224
83,904
2*12,943
223
81,194
2*6,792
224
81,821
8,168
223
74,845
8,264
194
1,148
1,069
7
1,078
29
1,191
4
975
1
1,104
4
925
92
1,053
*104,788
2*106,343
2*106,772
2*105,470
2*110,177
2*101,486
103,272
95,504
61,816
62,211
62,909
63,510
64,270
61,687
64,262
56,589
»30,350
3,013
485
2-30,990
2,898
713
2*31,621
2*29,096
2,880
543
2*33,111
1,985
309
2*28,253
2,844
392
27,060
2,542
251
26,727
2,747
310
Other assets:
Liabilities
Deposits:
Other:
All other 3
Total liabilities
1,851
239
668
693
650
705
713
657
1,633
674
2*34,516
2*35,294
2*34,361
2*33,224
2*36,118
2*32,146
31,486
30,458
5,353
994
5,837
993
6,554
1,034
5,959
962
7,031
1,043
4,552
974
4,855
981
5,881
675
2*102,679
2*104,335
2*104,858
2*103,655
2* 1 0 8 , 4 6 2
2*99,359
101,584
93,603
849
844
416
848
844
316
847
844
223
846
844
125
843
844
28
850
844
433
844
844
797
793
311
p104,788
2*106,343
2*106,772
2*105,470
2*110,177
2*101,486
103,272
95,504
562
575
584
610
579
589
581
198
24,346
24,654
25,478
25,622
26,293
24,592
26,365
30,155
Capital accounts
Other capital accounts
Total liabilities and capital accounts
Contingent liability on acceptances purchased for
Marketable U.S. Govt, securities held in custody for
Federal Reserve Notes—Federal Reserve Agents' Accounts
F.R. notes outstanding (issued to Bank)
Collateral held against notes outstanding:
U.S. Govt, securities
Total collateral
i See note 8 on p. A-5.
67,200
67,498
67,741
67,931
68,055
67,151
68,161
61,931
2,485
66,485
2,485
66,485
2,485
66,485
2,555
66,435
2,555
66,435
2,485
66,485
2,555
66,335
2,021
61,625
68,970
68,970
68,970
68,990
68,990
68,970
68,890
63,646
2 See note 9 on p. A-5.
3 See note 5 on p. A-4.
FEBRUARY 1974 • FEDERAL RESERVE BANKS
A 13
STATEMENT OF CONDITION OF EACH FEDERAL RESERVE BANK ON JANUARY 31, 1974
(In millions of dollars)
Item
Boston
Total
New
York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
Minneapolis
St.
Louis
Kansas
City
San
Francisco
Dallas
Assets
Gold certificate account
Special Drawing Rights certificate
account
F.R. notes of other banks
Other cash
Loans:
Secured by U.S. Govt, and agency
obligations
Other
Acceptances:
Federal agency obligations:
Bought outright
U.S. Govt, securities:
Bought outright 1
Total loans and securities
Cash items in process of collection...
Other assets:
Denominated in foreign currencies..
All other
11,460
711
2,249
818
956
1,114
767
2,420
166
194
445
467
1,153
400
1,810
311
23
144
19
93
352
29
23
84
4
33
141
35
36
174
33
22
226
44
70
120
34
15
58
21
7
28
10
15
52
33
14
129
15
49
302
34
594
365
12
2
140
15
33
5
34
77
69
96
82
40
41
26
58
7
14
14
15
24
100
54
503
104
145
142
107
297
78
40
79
86
258
178,240
3,558 20,438
4,236
5,874
5,763
4,328
12,068
3,187
1,634
3,189
3,508
10,457
81,194
3,660 21,164
4,378
6,053
6,051
4,613
12,446
3,349
1,682
3,296
3,633
10,869
339
364
27
862
14
810
15
990
16
351
14
414
35
625
17
684
12
1,150
8
1,927
88
8,173
224
162
45
1,422
10
1,104
49
2 1
313
57
77
81
59
156
42
26
40
47
157
4,813 25,633
5,714
7,686
8,365
6,556
16,252
4,016
2,396
4,523
5,001
13,722
63,497
3,131
15,689
4,000
5,103
5,687
3,331
10,548
2,541
1,148
2,460
2,389
7,470
28,253
2,844
392
1,086
201
15
6,799
643
3 117
1,075
184
18
1,848
157
33
1,594
280
21
2,226
152
27
4,072
259
58
898
177
13
772
56
8
1,271
130
15
1,836
189
20
4,776
416
47
104,677
Total assets
68
68
Liabilities
F.R. notes
Deposits:
Member bank reserves
U.S. Treasurer—General account..
Other:
All other 5
657
4
556
24
15
14
7
2
2
2
7
24
Total deposits
32,146
1,306
8,115
1,301
2,038
1,910
2,419
4,396
1,090
838
1,418
2,052
5,263
5,933
974
244
44
1,037
251
253
52
286
76
570
71
600
58
825
146
274
39
340
22
520
39
406
43
578
133
4,725 25,092
5,606
7,503
8,238
6,408
15,915
3,944
2,348
4,437
4,890
13,444
215
215
111
41
42
25
76
74
33
48
47
32
63
62
23
134
132
71
28
29
15
20
20
8
35
35
16
46
46
19
109
108
61
4,813 25,633
5,714
7,686
8,365
6,556 16,252
4,016
2,396
4,523
5,001
13,722
4 150
29
52
33
93
20
14
24
32
75
8,068
Deferred availability cash items
Other liabilities and accrued dividends
Total liabilities
102,550
Capital accounts
Capital paid in
Other capital accounts
Total liabilities and capital accounts..
Contingent liability on acceptances
purchased for foreign correspondents
850
844
433
104,677
589
35
34
19
24
43
Federal Reserve Notes—Federal Reserve Agents' Accounts
F.R. notes outstanding (issued to
Bank)
Collateral held against notes outstanding:
Gold certificate account
U.S. Govt, securities
67,151
3,327
16,577
4,086
5,385
5,959
3,705
10,987
2,690
1,198
2,600
2,569
2,485
66,485
175
3,230 16,850
400
3,800
350
5,200
700
5,390
700
3,900 10,600
155
2,620
1,240
2,700
5
2,655
8,300
Total collateral
68,970
3,405
4,200
5,550
6,090
3,900
2,775
1,240
2,700
2,660
8,300
1
2
16,850
See note 8 on p. A-5.
After deducing $0 million participations of other Federal Reserve
Banks.
3
After deducting $275 million participations of other Federal Reserve
Banks.
11,300
4
After deducting $439 million participations of other Federal Reserve
Banks.
5
See note 5 on p. A-4.
A 14
FEDERAL RESERVE BANKS; BANK DEBITS • FEBRUARY 1974
MATURITY DISTRIBUTION OF LOANS AND U.S. GOVERNMENT SECURITIES
HELD BY FEDERAL RESERVE BANKS
(In millions of dollars)
End of month
Wednesday
1974
Item
Jan. 31
Dec. 31
Jan. 31
2,103
2,093
10
993
973
20
959
940
19
1,257
1,250
7
1,310
1,307
3
63
45
65
20
45
270
220
50
68
28
40
68
19
49
141
80
61
79,270
5,816
19,982
21,079
23,128
7,503
1,762
79,233
5,701
19,587
21,552
23,128
7,503
1,762
77,312
4,664
19,394
20,861
23,128
7,503
1,762
80,409
7,918
18,717
21,381
23,128
7,503
1,762
78,240
4,869
18,668
22,233
23,128
7,580
1,762
78,516
4,495
20,352
21,369
23,035
7,503
1,762
72,022
7,277
15,674
16,933
24,484
6,108
1,546
1,981
121
104
234
791
492
239
1,942
43
94
282
787
497
239
1,920
11
104
282
787
497
239
2,232
312
115
282
787
497
239
1,927
39
104
234
819
492
239
1,980
60
115
282
787
497
239
1,372
61
55
199
597
269
191
Jan. 23
Jan. 16
Loans—Total
Within 15 days
16 days to 90 days.
91 days to 1 year..
1,601
1,592
2,664
2,655
9
1,239
1,230
9
Acceptances—Total..
Within 15 days.. . .
16 days to 90 days.
91 days to 1 year..
150
109
41
75
33
42
79,835
7,042
19,192
21,131
23,128
7,580
1,762
2,087
199
104
234
819
492
239
Federal agency obligations—Total.
Within 15 days 1
16 days to 90 days
91 days to 1 year
Over 1 year to 5 years
Over 5 years to 10 years
Over 10 years
1973
Jan. 2
Jan. 30
U.S. Government securities—Total.
Within 15 daysi
16 days to 90 days
91 days to 1 year
Over 1 year to 5 years
Over 5 years to 10 years
Over 10 years
1974
Jan. 9
108
1
Holdings under repurchase agreements are classified as maturing
within 15 days in accordance with maximum maturity of the agreements.
BANK DEBITS AND DEPOSIT TURNOVER
(Seasonally adjusted annual rates)
Debits to demand deposit accounts 1
(billions of dollars)
Period
Total
233
SMSA's
1972—Dec..
1973—Jan..,
Feb..
Mar..
April
May.
June.
July.,
Aug..
Sept..
Oct..
Nov. :
Dec..
1
Leading SMSA's
N.Y.
6 others
2
Total 232
SMSA's
(excl.
N.Y.)
226
other
SMSA's
Total
233
SMSA's
Leading SMSA's
N.Y.
6 others
2
Total 232
SMSA's
(excl.
N.Y.)
226
other
SMSA's
14.783.7
6,604.8
3,495.4
8,178.9
4.683.5
90.7
215.7
95.6
61.8
48.9
15,444.5
16,069.5
15,954.5
15.966.3
16,447.0
16.634.4
17.218.8
17,885.3
17.914.5
18.388.6
19,050.0
18,618.3
6.855.4
7,227.0
6.844.8
6.297.5
7,177.0
7.244.6
7,381.4
7.744.6
8,025.3
8,137.2
8.437.9
8.097.7
3.631.7
3.804.8
3.868.7
3,852.6
3.913.4
4,046.6
4.277.8
4,315.3
4,192.1
4.413.5
4,515.5
4,433.1
589.1
842.4
109.7
038.8
270.1
409.8
837.4
140.6
889.1
251.3
612.0
520.6
4,957.3
5.037.6
5.241.0
5.186.2
5.356.7
5.363.3
5,559.5
5,825.3
5.697.1
5.837.8
6,096.5
6,087.5
93.8
97.9
97.1
95.7
97.8
99.9
102.6
106.1
107.4
109.5
113.2
109.9
224.0
238.0
228.3
228.9
235.1
245.0
247.5
252.5
266.4
265.3
274.9
269.8
97.9
103.1
104.4
64.1
66.1
67.8
66.2
67.3
68.7
71.3
73.6
72.4
74.7
77.1
75.5
51.2
52.0
53.9
52.5
53.6
54.0
55.8
58.4
57.5
58.8
61.3
60.6
Excludes interbank and U.S. Govt, demand deposit accounts.
Boston, Philadelphia, Chicago, Detroit, San Francisco-Oakland, and
Los Angeles-Long Beach.
2
Turnover of demand deposits
101.8
103.6
107.5
111.5
113.5
111.5
116.3
118.5
113.5
NOTE.—Total SMSA's includes some cities and counties not designated
as SMSA's.
For back data see pp. 634-35 of July 1972 BULLETIN.
FEBRUARY 1974 • U.S. CURRENCY
A 15
DENOMINATIONS IN CIRCULATION
(In millions of dollars)
Large denomination currency
Coin and small denomination currency
Total
in circulation i
Total
Coin
1939
1941
1945
1947
7,598
11,160
28,515
28,868
5,553
8,120
20,683
20,020
590
751
1,274
1,404
1950
1955
195 9
27,741
31,158
32,591
19,305
22,021
23,264
196 0
196 1
196 2
196 3
196 4
32,869
33,918
35,338
37,692
39,619
196 5
196 6
196 7
196 8
196 9
End of period
2
$2
$5
$10
$20
Total
$50
$100
$500
559
695
1,039
1,048
36
44
73
65
1,019
1,355
2,313
2,110
1,772
2,731
6,782
6,275
1,576
2,545
9,201
9,119
2,048
3,044
7,834
8,850
460
724
2,327
2,548
919
1,433
4,220
5,070
191
261
454
428
425
556
801
782
20
24
7
5
32
46
24
17
1,554
1,927
2,304
1,113
1,312
1,511
64
75
85
2,049
2,151
2,216
5,998
6,617
6,672
8,529
9,940
10,476
8,438
9,136
9,326
2,422
2,736
2,803
5,043
5,641
5,913
368
307
261
588
438
341
4
3
3
12
12
5
23,521
24,388
25,356
26,807
28,100
2,427
2,582
2,782
3,030
3,405
1,533
1,588
1,636
1,722
1,806
88
92
97
103
111
2,246
2,313
2,375
2,469
2,517
6,691
6,878
7,071
7,373
7,543
10,536
10,935
11,395
12,109
12,717
9,348
9,531
9,983
10,885
11,519
2,815
2,869
2,990
3,221
3,381
5,954
6,106
6,448
7,110
7,590
249
242
240
249
248
316
300
293
298
293
3
3
3
3
2
10
10
10
4
4
42,056
44,663
47,226
50,961
53,950
29,842
31,695
33,468
36,163
37,917
4,027
4,480
4,918
5,691
6,021
1,908
2,051
2,035
2,049
2,213
127
137
136
136
136
2,618
2,756
2,850
2,993
3,092
7,794
8,070
8,366
8,786
8,989
13,369
14,201
15,162
16,508
17,466
12,214
12,969
13,758
14,798
16,033
3,540
3,700
3,915
4,186
4,499
8,135
8,735
9,311
10,068
11,016
245
241
240
244
234
288
286
285
292
276
3
3
3
3
3
4
4
4
4
197 0
197 1
57,093
61,068
39,639
41,831
6,281
6,775
2,310
2,408
136
135
3,161
3,273
9,170
9,348
18,581
19,893
17,454
19,237
4,896
5,377
12,084
13,414
215
203
252
237
3
2
4
4
1972—Dec.
66,516
45,105
7,287
2,523
135
3,449
9,827
21,883
21,411
5,868
15,118
193
225
2
4
1973—Jan..
Feb.
Mar.
Apr.
May
June
July.
Aug.
Sept.
Oct..
Nov.
Dec.
64,312
64,696
65,180
66,094
67,161
67,771
68,223
68,376
68,217
69,043
70,296
72,497
43,133
43,431
43,699
44,313
45,074
45,428
45,564
45,553
45,398
45,927
46,799
48,288
7,274
7,290
7,320
7,382
7,446
7,498
7,542
7,577
7,597
7,644
7,696
7,759
2,380
2,370
2,368
2,406
2.439
2,433
2.440
2,430
2,435
2,480
2,528
2,639
135
135
135
135
135
135
135
135
135
135
135
135
3,218
3,213
3,209
3,234
3,302
3,309
3,301
3,288
3,288
3,333
3,418
3,614
9,243
9,330
9,352
9,447
9,613
9,648
9,602
9,566
9,505
9,616
9,819
10.226
20,883
21,091
21,314
21,707
22,138
22,405
22,544
22,557
22,437
22,718
23,204
23,915
21,179
21,266
21,482
21,781
22,088
22,343
22,659
22,822
22,819
23,116
23,497
24,210
5,742
5,755
5,787
5,887
5,974
6,024
6,116
6,149
6,112
6,182
6,290
6,514
15,013
15,089
15,274
15,476
15,697
15,903
16,130
16,261
16,296
16,524
16,799
17,288
192
192
191
190
189
189
188
188
187
186
186
185
224
224
223
222
221
220
219
219
218
217
217
216
2
2
2
2
2
2
2
2
2
2
2
2
4
4
4
4
4
4
4
4
4
4
4
4
$1
2
i Outside Treasury and F.R. Banks. Before 1955 details are slightly
overstated because they include small amounts of paper currency held
by the Treasury and the F.R. Banks for which a denominational breakdown is not available.
$1,000 $5,000 $10,000
Paper currency only; $1 silver coins reported under coin.
NOTE.—Condensed from Statement of United States Currency and
Coin, issued by the Treasury.
KINDS OF UNITED STATES CURRENCY OUTSTANDING AND IN CIRCULATION
(Condensed from Circulation Statement of United States Money, issued by Treasury Department. In millions of dollars)
Held in the Treasury
Kind of currency
Gold
Gold certificates
Federal Reserve notes
Treasury currency—Total
Dollars
Fractional coin
United States notes
In process of retirement 3
Total—Dec. 31,1973
Nov 30 1973
Dec. 31 1972
1
Total, outstanding, As security
Dec. 31,
against
Treasury
1973
gold
cash
certificates
11,567
(11,460)
68,161
8,716
(11,460)
767
7,338
323
288
4
88,443
4
86,481
481,214
(11,460)
(11,460)
(10,303)
Outside Treasury and F.R. Banks. Includes any paper currency held
outside the United States and currency and coin held by banks. Estimated totals for Wed. dates shown in table on p. A-5.
2
Consists of credits payable in gold certificates, the Gold Certificate
Fund—Board of Governors, FRS.
3 Redeemable from the general fund of the Treasury.
107
For
F.R.
Banks
and
Agents
2
Held by
F.R.
Banks
and
Agents
1973
1972
Nov.
30
Dec.
31
64,130
8,368
61,991
8,305
58,619
7,897
727
6,969
321
288
671
6,615
320
291
1
3,897
271
7
69
1
27
243
733
7,026
321
288
4,170
4,408
4,050
72,497
11,459
11,459
10,302
1
Dec.
31
i 34
77
317
317
345
11,459
Currency in circulation
70,296
66,516
4
Does not include all items shown, as gold certificates are secured by
gold. Duplications are shown in parentheses.
NOTE.—Prepared from Statement of United States Currency and Coin
and other data furnished by the Treasury. For explanation of currency
reserves and security features, see the Circulation Statement or the Aug.
1961 BULLETIN, p. 9 3 6 .
A 16
MONEY STOCK • FEBRUARY 1974
MEASURES OF THE MONEY STOCK
(In billions of dollars)
N o t seasonally adjusted
Seasonally adjusted
Month or week
Mi
Mi
M2
Mi
Mz
Mi
Composition of measures is described in the NOTE below.
1970—Dec. r
1971—Dec.r....
1972—Dec.'....
221.2
235.2
255.7
425.2
473.0
525.5
641.2
726.9
822.4
227.6
241.9
263.0
429.9
477.9
530.6
1973 '•-Feb
Mar
April
May
June
July
Aug
Sept
Oct
Nov
Dec
257.9
258. 1
259.4
262.4
265.5
266.4
266.2
265.4
266.5
268.8
270.4
532.3
534.6
538.3
543.6
549.4
552.0
554.9
556.6
561.6
566.7
570.7
836.7
841.7
847.7
855.0
863.5
867.9
870.9
873.2
879.8
886.9
893.2
255.2
255.5
260.9
257.9
263.6
265.7
262.9
263.9
266.0
270.5
278. 1
529.8
534.0
542.3
541.7
548.8
551.0
551. 1
554.2
559.9
565. 1
575.8
1974—Jan
269.7
573.8
898.2
276.9
579.8
270.3
269.5
270.0
269.0
268.5
572.5
572.0
573.7
573.8
573.8
284.5
282.3
280.0
273.8
269.0
584.9
583.3
582.4
577.5
573.7
Week ending—
1974—Jan.
2.
9..
16.
23 p
30p
NOTE.—Composition of the money stock measures is as follows:
Mi: Averages of daily figures for (1) demand deposits of commercial
banks other than domestic interbank and U.S. Govt., less cash items in
process of collection and F.R. float; (2) foreign demand balances at F.R.
Banks; and (3) currency outside the Treasury, F.R. Banks, and vaults of
commercial banks.
Mi: Averages of daily figures for Mi plus savings deposits, time de-
posits open account, and time certificates other than negotiable CD's of
$100,000 of large weekly reporting banks.
Ms: Mt plus the average of the beginning- and end-of-month figures
for deposits of mutual savings banks and for savings capital of savings
and loan associations.
For description and back data, see "Revision of the Money Stock Measures and Member Bank Deposits" on pp. 81-95 of this BULLETIN.
COMPONENTS OF MONEY STOCK MEASURES AND RELATED ITEMS
(In billions of dollars)
Not seasonally adjusted
Seasonally adjusted
j
Commercial banks
Commercial banks
Month
or
week
Currency
Demand
deposits
Time and savings
deposits
CD's i
Other
Total
Nonbank
thrift
institu-2
tions
Currency
Demand
deposits
Time and savings
deposits
CD's 1
Other
Nonbank
thrift
institutions 2
U.S.
Govt.
deposits 3
Total
1970—Dec. r
1971—Dec. r
1972—Dec. r
49.1
52.6
56.9
172.2
182.6
198.7
25.3
33.0
43.4
203.9
237.9
269.9
229.2
270.9
313.3
216.1
253.9
296.9
50.0
53.5
57.9
177.7
188.4
205.1
25.8
33.8
44.3
202.3
236.0
267.6
228. 1
269.8
311.8
215.6
253.3
296.0
7.3
6.9
7.4
1973 r -Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
57.5
58.0
58.6
58.9
59.4
59.5
59.8
60.2
60.4
60.9
61.6
200.4
200. 1
200.8
203.4
206.2
207.0
206.4
205.2
206.1
207.9
208.8
49.1
54.6
58.4
61.3
62.0
63.9
66.3
66.7
63.8
62.0
62.8
274.4
276.6
278.9
281.3
283.8
285.6
288.7
291.2
295.1
297.8
300.3
323.5
331. 1
337.3
342.6
345.8
349.4
355.0
357.9
358.9
359.9
363. 1
304.4
307.0
309.4
311.4
314.2
315.9
315.9
316.6
318.3
320.2
322.5
56.8
57.4
58.3
58.7
59.4
59.9
60.0
60.1
60.4
61.4
62.6
198.4
198.1
202.6
199.2
204.1
205.7
202.9
203.8
205.6
209.1
215.5
48.6
54.0
56.1
58.8
59.3
62.3
68.4
68.8
66.3
64.1
64. 1
274.6
278.5
281.4
283.8
285.2
285.3
288.2
290.3
293.9
294.6
297.7
323.3
332.6
337.6
342.6
344.5
347.6
356.6
359.2
360.2
358.7
361.8
303.8
307.4
310.3
312.0
315.3
317.0
315.9
316. 1
317.6
318.9
321.7
9.9
10.4
8.3
8.7
7. 1
6.5
4. 1
5.3
6.0
4.3
6.3
1974—Jan
61.8
207.9
65.5
304.1
369.6
324.4
61.5
215.3
66.1
302.9
369.0
324.9
8.0
61.5
61.7
61.8
62.0
61.9
208.8
207.8
208.2
207.0
206.6
64.3
64.8
64.7
65.8
67.0
302.2
302.5
303.7
304.8
305.3
366.5
367.3
368.4
370.6
372.3
61.9
62.3
61.8
61.3
60.7
222.5
220.0
218.2
212.5
208.3
64.6
65.6
65.6
66.5
66.9
300.5
301.0
302.4
303.7
304.7
365. 1
366.6
368.0
370.2
371.6
Week ending—
1974
Tan
2
r
9
16
23 p
30®
1 Negotiable time certificates of deposit issued in denominations of
$100,000 or more by large weekly reporting commercial banks.
2
Average of the beginning and end-of-month figures for deposits of
mutual savings banks and savings capital at savings and loan associations.
3
At all commercial banks.
See also NOTE above,
10.0
8.5
6.2
7.4
9.1
FEBRUARY 1974 • BANK RESERVES; BANK CREDIT
A 17
AGGREGATE RESERVES AND MEMBER BANK DEPOSITS
(In billions of dollars)
Total
Required
Available 2
plus nondeposit
items 4
N.S.A.
S.A.
Nonborrowed
Total member
Deposits subject to reserve requirements 3
Member bank reserves, S.A. 1
Demand
Total
Time
and
savings
Private
U.S.
Govt.
Total
Demand
Time
and
savings
Private
U.S.
Govt.
S.A.
N.S.A.
1970—Dec. r
1971—Dec. rr
1972—Dec.
29.19
31.30
31.41
28.86
31.17
30.36
28.95
31.12
31.13
27.10
28.96
29.05
321.3
360.3
402.0
178.8
210.4
241.4
136.1
143.8
154.5
6.5
6.1
6.1
325.2
364.6
406.8
178. 1
209.7
240.7
141.1
149.2
160.1
6.0
5.7
6.1
332.9
364.3
406.4
336.8
368.7
411.2
1973—Jan.
Feb...
Mar..
Apr..
May.
June.
July..
Aug..
Sept..
Oct...
Nov..
Dec..
32.20
31.63
31.91
32.30
32.44
32.46
33.58
33.91
34.17
34.94
34.86
35.10
31.04
30.04
30.08
30.59
30.60
30.61
31.62
31.74
32.32
33.47
33.46
33.81
31.94
31.43
31.70
32.08
32.29
32.22
33.29
33.73
33.95
34.72
34.62
34.80
29.44
29.37
29.62
29.87
30.11
30.55
31.36
32.04
32.39
32.84
32.71
32.91
404.7
409.0
416.3
421.4
425.1
428.9
431.1
436.7
438.6
439.7
440.4
442.2
244.0
248.9
255.4
260.9
265.1
267.3
270.1
275.0
277.5
277.3
277.1
279.0
154.0
154.0
153.3
153.4
154.8
156.3
157.1
157.0
156.2
156.4
157.5
158.3
6.7
6.1
7.6
7.1
5.2
5.3
3.9
4.8
5.0
6.0
5.8
4.9
410.4
409.0
416.3
422.3
423.0
426.3
429.9
433.7
437.7
439.7
438.2
447.5
243.8
248.5
256.2
260.5
264.5
265.9
268.5
276.6
279.0
278.8
276.6
278.5
160.0
152.4
151.6
154.9
151.4
154.8
156.2
154.0
154.7
156.1
158.3
164.0
6.6
8.1
8.5
6.8
7.0
5.6
5.1
3.1
4.1
4.8
3.2
5.0
409.7
413.5
421.2
426.6
430.5
434.5
437.6
443.8
445.9
446.5
447.5
449.6
415.4
413.5
421.2
427.4
428.4
432.0
436.4
440.8
445.0
446.5
445.3
454.9
1974—Jan.*.
35.85
34.80
35.69
32.80
446.7
283.2
157.4
6.1
453.0
283.1
163.4
6.4
454.2
460.5
1
Averages of daily figures. Member bank reserve series reflects actual
reserve requirement percentages with no adjustment to eliminate the
effect of changes in Regulations D and M. Required reserves were increased by $660 million effective Apr. 16, 1969, and $400 million effective
Oct. 16, 1969; were reduced by $500 million (net) effective Oct. 1, 1970.
Required reserves were reduced by approximately $2.5 billion, effective
Nov. 9, 1972; by $1.0 billion, effective Nov. 15; and increased by $300
million
effective Nov. 22.
2
Reserves available to support private nonbank deposits are defined
as (1) required reserves for (a) private demand deposits, (b) total time
and savings deposits, and (c) nondeposit sources subject to reserve requirements, and (2) excess reserves. This series excludes required reserves
for net interbank and U.S. Govt, demand deposits.
3 Averages of daily figures. Deposits subject to reserve requirements
include 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.
4
Total member bank deposits subject to reserve requirements, plus
Euro-dollar borrowings, bank-related commercial paper, and certain
other nondeposit items. This series for deposits is referred to as "the adjusted bank credit proxy."
NOTE.—For description of revised series and for back data, see article
"Revision of the Money Stock Measures and Member Bank Reserves and
Deposits" on pp. 61-79 of the Feb. 1973 BULLETIN.
Due to changes in Regulations M and D, member bank reserves include
reserves held against nondeposit funds beginning Oct. 16, 1969. Back data
may be obtained from the Banking Section, Division of Research and
Statistics, Board of Governors of the Federal Reserve System, Washington,
D.C. 20551.
LOANS AND INVESTMENTS AT ALL COMMERCIAL BANKS
(In billions of dollars)
Not seasonally adjusted
Seasonally adjusted
Total i
Plus
loans
sold 2
Commercial
and industrial 3
Total
Plus
loans
sold 2
U.S.
Treasury
Other 4
Securities
Loans
Securities
Loans
Total
loans
and
invest-1
ments
Total
loans
and
invest-1
ments
Total 1
Plus
loans2
sold
Commercial
and industrial 3
Total
Plus
loans
sold 2
114.6
U.S.
Treasury
Other 4
71.5
71.3
86.1
104.7
117.1
116.5
116.8
117.7
118.6
119.9
1968—Dec.
1969—Dec.
1970—Dec.
1971—Dec.
1972—Dec.
31..
315.
31..
31..
31..
390.2
401.7
435.5
484.8
556.4
258.2
279.1
291.7
320.3
377.8
283.0
294.7
323.1
380.4
95.9
105.7
110.0
115.9
129.7
108.3
112.1
117.5
131.4
60.7
51.5
57.9
60.1
61.9
71.3
71.1
85.9
104.4
116.7
400.4
412.1
446.8
497.9
571.4
264.4
286.1
299.0
328.3
387.3
290.0
301.9
331.1
389.9
98.4
108.4
112.5
118.5
132.7
134.4
64.5
54.7
61.7
64.9
67.0
1973—Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
31..
28. .
28. .
25. .
30. .
30..
25*..
29*..
26*..
31*.
28*.
31*.
564.7
575.4
583.6
589.6
597.7
602.0
608.2
388.4
400.3
409.0
414.7
421.1
423.8
431.3
440.0
442.7
444.6
447.9
448.8
133.3
138.1
141.8
143.9
146.8
148.2
151.4
153.6
154.0
154.0
155.5
156.3
135.0
140.2
143.8
146.2
149.0
150.4
154.0
156.5
156.9
156.9
158.2
158.9
61.8
60.6
60.4
61.0
61.0
61.6
59.6
57.7
56.3
54.9
54.5
53.2
117.1
117.6
117.4
117.5
119.3
616.0
618.2
621.7
624.6
625.4
385.8
397.2
405.8
411.1
417.4
420.3
427.3
435.3
438.1
440.0
443.6
444.5
121.3
123.0
123.8
126.8
126.5
127.7
565.6
571.1
580.6
587.3
594.8
605.6
606.8
612.0
617.9
621.4
624.5
642.3
383.5
392.6
401.7
408.3
416.6
426.6
429.1
434.6
439.1
439.9
442.1
455.6
386.1
395.7
404.8
411.9
420.3
430.1
433.1
439.3
443.8
444.5
446.4
459.9
132.0
136.6
141.7
144.4
146.4
150.4
151.8
152.2
154.1
153.3
154.6
159.9
133.7
138.7
143.7
146.7
148.6
152.6
154.4
155.1
157.0
156.2
157.3
162.5
65.6
61.6
61.2
60.4
58.3
57.9
56.4
54.7
54.8
55.6
57.3
58.6
121.4
122.8
123.9
125.9
125.1
128.1
1974—Jan.
30*.
633.6
450.2
454.6
158.5
161.1
53.9
129.5
633.1
446.2
450.7
156.8
159.4
58.1
128.8
1
Adjusted to exclude domestic commercial interbank loans. See also
note 3.
2
Loans sold are those sold outright by commercial banks to own subsidiaries,
foreign branches, holding companies, and other affiliates.
3
Beginning June 30, 1972, commercial and industrial loans were reduced by about $400 million as a result of loan reclassifications at one
large bank.
4
Beginning June 30, 1971, Farmers Home Administration insured notes
totaling approximately $700 million are included in "Other securities"
rather
than in "Loans."
5
Beginning June 30, 1969, data revised to include all bank-premises
subsidiaries and other significant majority-owned domestic subsidiaries;
earlier data include commercial banks only. Also, loans and investments
are now reported gross, without valuation reserves deducted, rather than
120.1
111.0
120.2
121.1
net of valuation reserves as was done previously. For a description of the
revision, see Aug. 1969 BULLETIN, pp. 642-46. Data shown in above table
have been revised to include valuation reserves.
NOTE.—Total loans and investments: For monthly data, Jan. 1959June 1973, see Nov. 1973 BULLETIN, pp. A-96-A-97, and for 1948-58,
Aug. 1968 BULLETIN, pp. A-94-A-97. For a description of the current
seasonally adjusted series see the Nov. 1973 BULLETIN, pp. 831-32, and
the Dec. 1971 BULLETIN, pp. 971-73. Commercial and industrial loans:
For monthly data, Jan. 1959-June 1973, see Nov. 1973 BULLETIN, pp.
A-96-A-98; for description see July 1972 BULLETIN, p. 683. 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.
A 18
COMMERCIAL BANKS • FEBRUARY 1974
PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK
(Amounts in millions of dollars)
Deposits
Loans and investments
Securities
Cash
assets 3
Class of bank
and date
Total
U.S.
Treasury
Other"
Total
assets—
Total
liabilities
and
capital
accounts 4
Interbank 3
Total 3
Other
Borrowings
Demand
Demand
Times
Time
U.S.
Govt.
Other
All commercial banks:
1941—Dec. 3 1 . . .
1945—Dec. 31 . . .
1947—Dec. 31 6.
1967—Dec. 3 0 . . .
1968—Dec. 31 . . .
1969—Dec. 31
1970—Dec. 3 1 . .
1971—Dec. 31..
1972—Dec. 3 1 . .
50,746
124,019
116,284
359,903
401,262
421,597
461,194
516,564
598,""
21,714
26,083
38,057
235,954
265,259
295,547
313,334
346,930
414,696
21,808 7,225 26,551
90,606 7,331 34,806
69,221 9,006 37,502
62,473 61,477 77,928
64,466 71,537 83,752
54,709 71,341 89,984
61,742 86,118 93,643
64,930104,704 99,832
67,028 117,084113,128
79,104
160,312
155,377
451,012
500,657
530,665
576,242
640,255
739,033
71,283
150,227
144,103
395,008
434.023
435,577
480,940
537,946
616,037
44, 349
10,982
105 ,921
14,065
240 1,343 94,367
12,792
21,883 1,314 5,234 184,066
24,747 1,211 5,010 199,901
735 5,054 208,870
27,174
30,608 1,975 7,938 209,335
32,205 2,908 10,169 220,375
33,854 4,194 10,875 252,223
15,952
30,241
35,360
182,511
203,154
193,744
231,084
272,289
314,891
23
219
65
5,777
8,899
18,360
19,375
25,912
38,083
1973—Jan.
Feb.
Mar.
Apr.
May
June
July
Aup.
Sept.
Oct.
Nov.
Dec.
31..
28..
28..
25..
30..
30..
25P.,
29p.
26f.
31 p.
26p.
591,270
599,970
608,320
616,480
622,340
635,756
634,220
640,100
645,150
652,330
656,700
675,820
409,220
421,500
429,400
437,520
444,120
456,780
456,480
462,630
466,420
470,780
474,300
490,680
65,560116 490 96,490
61,620116 850 99,590
61,180117 740 90,980
60,400118 ,560 91,580
58,330119 ,890 95,410
57,877121 ,099 103,608
56,360121 380 95,880
54,720122 750 92,010
54,800123 930100,030
55,640125 9 1 0 ! l l l , 7 2 0
57,300125 ; 100 104,140
58,180126 960 95,650
716,680
729,670
729,250
738,740
749,470
769,908
761,870
765,200
778,070
798,550
794,420
806,420
589,850
598,520
596,690
604,570
611,920
629,215
618,670
618,440
628,700
643,790
635,940
650,290
29,260
29,530
25,960
26,220
27,770
31,047
28,710
26,500
27,720
32,830
30,130
25,720
228,040
227,190
220,290
225,170
229,050
236,953
228,310
224,450
227,880
240,390
237,650
249,520
318,260
326,260
334,520
337,390
344,040
345,191
349,070
357,410
357,700
358,070
356,800
360,250
42,700
45,480
45,420
45,830
47,360
49,299
52,580
53,150
56,180
60,220
62,400
60,290
1974—Jan.
30?.
670,340 483,430 58,140128,770103,050 807,320 648,480 31,640 6,400
Members of
F.R. System:
1941—Dec.
1945—Dec.
1947—Dec.
1967—Dec.
1968—Dec.
1969—Dec.
1970—Dec.
1971—Dec.
1972—Dec.
28P.
3,890
4,170
4,530
4,880
5,250
5,590
5,830
6,620
7,190
6,820
7,010
6,850
10,400
11,370
11,390
10,910
5,810
10,434
6,750
3,460
8,210
5,680
4,350
7,950
9 , 3 9 0 232,510 368,540 65,110
18,021 19,539 5,961 23,113 68,121
31 . . . 43,521
3 1 . . . 107,183 22,775 78,338 6,070 29,845 138,304
97,846 32,628 57,914 7,304 32,845 132,060
31...
3 0 . . . 293,120 196,849 46,956 49,315 68,946 373,584
3 1 . . . 325.086 220,285 47,881 56,920 73,756 412,541
31 7 336.738 242,119 39,833 54,785 79,034 432,270
365,940 253,936 45,399 66,604 81,500 465,644
31..
3 1 . . . 405.087 277,717 47,633 79,738 86,189 511,353
3 1 . . . 465,788 329,548 48,715 87,524 96,566 585,125
61,717
129,670
122,528
326,033
355,414
349,883
384,596
425,380
482,124
10,385
13,576
12,353
20,811
23,519
25,841
29,142
30,612
31,958
4
140 1,709 37,136 12,347
208
64 22,179 69,640 24,210
54
50 1,176 80,609 28,340
1,169 4,631 151,980 147,442 5,370
1,061 4,309 163,920 162,605 8,458
609 4,114 169,750 149,569 17,395
1,733 6.460 168,032 179,229 18,578
2,549 8,427 174,385 209,406 25,046
3,561 9,024 197,817 239,763 36,357
565,071
575,322
573,564
580,412
587,722
604.414
597,607
600,202
611,359
628,710
624,258
632,728
458,943
465,495
462,997
468,385
473,623
486,770
478,417
478,273
486,975
499,093
491,405
502,194
27,757
28,037
24,505
24,744
26,139
29,311
27,121
24,972
3,260
3,537
3,895
4,242
4,621
4,879
5,121
5,911
6,480
6,112
6,298
6,136
458,760
465,024
470,997
476.739
480,394
490,533
489,240
494,200
498,322
504,120
507,176
524,142
324,637
334,601
340,665
346.865
351,223
360,908
360,813
365,951
368,842
371.866
374,148
388,327
47,333
43,698
43,259
42,517
41,030
41,080
39,331
38,233
38,372
39,375
40,752
41,718
86,790
86,725
87,073
87,357
88,141
88,545
89,096
90,016
91,108
92,879
92,276
94,097
82,499
85,364
77,719
78,219
81,169
88,227
82,091
78,475
85,802
96,251
89,652
79,946
1973—Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
31...
28...
28...
25...
30. . .
30. . .
25...
29.. .
26...
31...
28...
26...
1974—Jan.
30?.. 518,513 381,390 41,684 95,439 88,597 635,082 501,262 30,004 5,690
Large member banks:
New York City: s,
1941—Dec. 3 1 . . .
1945—Dec. 3 1 . . .
1947—Dec. 31 . . .
1967—Dec. 3 0 . . .
1968—Dec. 31 . . .
1969—Dec. 31
1970—Dec. 3 1 . . .
1971—Dec. 3 1 . . .
1972—Dec. 3 1 . . .
241,788
248,032
254,650
256,561
261,586
261,975
265,401
272,607
272,557
271,930
270,295
273,073
40,256
42,912
42,642
43,076
44,214
46,529
48,761
49,283
52,485
56,832
58,865
57,048
7,583 178,447 279,538 61,488
4 , 0 7 2 7,265 1,559
7,334 17,574 1,235
7,179 11,972 1,242
39,059 6,027 7,055
42.968 5,984 8,094
48,305 5,048 6.980
47,161 6,009 9,177
48,714 5,597 9,031
58,713 5,696 10,625
6,637 19,862
6,439 32,887
7,261 27,982
18,797 74,609
19,948 81,364
22,349 87,753
21,715 89,384
22,663 91,461
26,416 107,603
17,932
30,121
25,216
60,407
63,900
62,381
67,186
71,723
82,446
4,202
4,640
17
4,453
12
7,238
741
8,964
622
10,349
268
12,508
956
13,825 1,186
15,094 1,833
866
6,940
267
1,084
888
694
1,039
1,513
1,418
12,051
17,287
19,040
31,282
33,351
36,126
32,235
30,943
35,373
807
1,236
1,445
20,062
20,076
14,944
20,448
24,256
28,728
2,733
4,405
4,500
5,195
9,502
23,203
23,059
20,133
19,710
19,587
24,518
23,544
20,095
22,531
28,643
24,917
14,307
102,923
105,571
103,402
103,622
104,550
111,028
110,392
108,141
111,675
119,283
116,040
110,550
77,213
79,567
77,435
77,295
77,980
82,718
81,473
78,925
82.016
87,935
84,824
80,505
13,919
14,040
11,744
11,935
11,780
15,340
13,787
12,092
13,069
16,713
14,864
9,192
1,574
1,708
1,951
2,229
2,491
2,773
2,969
3,558
4,019
3,807
4,087
3,770
1,257
1,506
1,789
1,732
521
1,115
769
310
1,073
642
373
1,213
31,292
30,533
29,032
29,068
30,035
30,607
30,164
28,185
29,656
32,901
31,776
32,718
29,171
31,780
32,919
32,331
33,153
32,883
33,784
34,780
34,199
33,872
33,724
33,612
10,142
10,321
9,938
9,891
10,496
11,597
12,857
12,368
13,729
15,170
14,882
14,333
87,517 16,024 3,332
1,144
31,822
35,195 14,978
31...
28...
28...
25...
30. . .
30...
25...
29.. .
26...
31...
28...
26...
73,744
75,727
76,368
76,834
78,078
79,212
79,869
80,338
81,900
83,338
84,529
89,287
58,304
61,629
62,584
63,395
64,505
65,428
66,117
66,610
67,694
68,229
69,048
72,251
5,439
4,463
4,498
4,254
4,424
4.661
4,047
4,095
4,075
4,828
5,035
5,880
1974—Jan.
30...
84,936
68,328
5,627 10,981 26,534 118,036
31,142
28,522
24,000
177,677
176,525
170,540
173,671
176,766
182,439
175,351
172,082
175,016
185,308
182,931
192,431
12,896
26,143
20,393
52,141
57,047
60,333
62,347
63,342
75,034
1973—Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
For notes see p. A-21.
26,182
8.461
9,364
9,407
9,167
4,511
8,167
5,423
2,701
6,740
4,601
3,359
6,554
10,001
9,635
9,286
9,185
9,149
9,124
9,705
9,633
10,131
10,281
10,446
11,156
195
30
1,880
Total
capital
accounts
FEBRUARY 1974 • COMMERCIAL BANKS
PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued
(Amounts in millions of dollars)
Deposits
Loans and investments
Securities
Class of bank
and date
Large member banks (cont.)
City oi Chicago: 8 9
1941—Dec. 31
1945—Dec. 31
1947—Dec. 31
1967—Dec. 30
1968—Dec. 31
1969—Dec. 31 7
1970—Dec. 31
1971—Dec. 31
1972—Dec. 31
Total
Loans
l
U.S.
Treasury
Other
2
Total
assets—
Total
liaCash . bilities
assets 3
and
capital
accounts 4
Interbank 3
Total 3
Demand
1,566
1,489
1,739
2,947
3,008
2,802
3,074
3,011
3,580
4,363
7,459
6,866
16,296
18,099
17,927
19,892
21,214
26,009
4,057
7,046
6,402
13,985
14,526
13,264
15,041
16,651
19,851
1,035
1,312
1,217
1,434
1 ,535
1,677
1,930
1,693
1,615
21
21
15
49
168
160
18,709
19,429
19,854
20,020
21,896
21,627
22,272
22,138
21,837
21,577
23,013
1,364
1,433
1,326
1,304
1,501
1,323
1,638
1,355
1,525
1,481
1,505
1,693
247
224
266
333
411
392
389
499
504
517
459
544
358 6,605
442 6,778
461 6,439
426 6,639
154 6,882
299 7,372
226 6,488
86 6,725
303 6,480
194 6,863
115 6,942
308 '7,519
1,490
539
340
1,562
1,384
1,470
1,414
1,564
1,715
1,364
1,322
1,683
1,621
1,504
1,557
3,093
3,055
3,210
3,133
3,257
3,205
3,277
3,402
3,548
3,846
3,657
3,848
2,939
3,513
3,092
3,277
3,209
3,501
3,759
3,569
3,853
4,146
3,794
3,956
25,035
26,575
26,821
27,170
28,134
29,307
30,199
30,358
31,299
31,015
31,441
32,298
1974—Jan.
30.
27,178
21,354
1,796
4,028
3,756
32,236
22,046
7,105 6,467
15,347
8,514 29,552
40,108
36,040 13,449 20,196
105,724 73,571 14,667
119,006 83,634 15,036
121,324 90,896 11,944
133,718 96,158 14,700
149,401 106,361 15,912
171,549 126,661 16,316
1,776
2,042
2,396
17,487
20,337
18,484
22,860
27,129
28,572
8,518
11,286
13,066
26,867
28.136
29,954
31,263
33,732
36,729
24,430
51,«—
49,659
136,626
151,957
157,512
171,733
190,880
217,170
22,313
49,085
46,467
120,485
132,305
126,232
140,518
155,226
173,913
123,907
126,893
129,983
133,253
133,519
138,452
137,056
140,151
140,637
142,511
141,112
148,619
28,771
28,861
29,006
29,087
29,389
29,144
29,455
29,681
30,003
31,300
31,016
31,877
30,426
32,497
29,626
30,11
31,779
31,899
28,878
29,551
33,048
35,331
34,360
33,365
207,904
211,396
211,390
215,262
217,001
222,344
217,220
221,043
225,139
231,737
229,828
237,873
163,418
165,150
165,247
168,360
170,123
173,183
169,837
171,725
174,901
178,295
174,434
182,634
31
2,419
476
3,462
719
4,201
913
6,250 6,013
6,542 6,171
6,770 4,626
6,663 6,117
6,896 7 , 5 3 0
7,387 10,179
376
385
397
1,947
2,125
2,030
2,427
3,067
3,195
16,371
17,544
17,980
18,253
18,956
19,645
20,580
20,676
20,717
20,022
21,117
21,453
31
31 7
31
127
,552
72
267
257
175
282
364
509
Other
1,430
4,213
2,890
1,574
1,863
1,564
2,105
1,782
1,873
21,026
21,983
22,660
22,800
23,777
24,566
25,221
25,400
25,948
25,489
26,278
26,858
31
U.S.
Govt.
954
1,333
1,801
9,223
10,286
10,771
11,214
12,285
16,294
31.
28.
28.
25.
30.
30.
25.
29.
26.
31.
28.
26.
1941-- D e c .
1945-- D e c .
1947-- D e c .
1967-- D e c .
1968-- D e c .
1969-- D e c .
1970-- D e c .
1971-- D e c .
1972-- D e c .
Times
Time
2,760
5,931
5,088
12.744
14,274
14,365
15.745
17,133
21,362
1973—Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
15,844
13,957
13,615
13,414
12,547
13,066
11,982
11,572
11,443
12,053
12,966
13,144
21,1
Borrowings
Demand
4,356
104
6,418
30
5,627
22
9,374
310
10,181
307
10,663
242
11,317
592
11,241
933
11,133 1,173
9,239
9,365
8,372
8,470
9,540
9,177
8,518
8,467
8,494
9,583
8,939
9,682
1,044
1,210
1,283
1,285
1,324
1,371
1,368
1,459
1,562
1,446
1,410
1,480
10,135
10,552
11,362
11,318
12,140
12,511
12,886
13,607
13,326
12,782
12,556
r
12,949
3,276
4,075
3,910
3,971
3,954
4,146
4,922
4,647
5,814
5,895
6,314
5,944
6,699 12,978
6,970
491 12,557
24,655
405 28,990
1,715 53,288
1,884 57,449
1,575 58,923
2,547 59,328
3,557 62,474
3,860 71,376
8,221
3,470
3,942
3,761
4,069
1,653
2,988
2,223
1,051
2,930
1,972
1,223
2,707
383
682
1,290
1,851
1,935
3,008
63,011
62,627
60,660
61,487
62,744
64,875
61,418
60,607
61,459
65,364
64,717
69,109
4,806
9,760
2
11,423
1
55,798 2,555
62,484 4,239
54,829 9,881
66,734 10.391
77,020 14,799
86,372 19.392
86,654
88,006
91,171
93,049
94,862
94,771
96,310
100,141
100,456
99,930
98,145
99,656
21,086
22,434
22,175
22,606
22,183
24,032
22,492
23,670
24,730
27,537
29,092
28,903
1973-—Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
30
30
25
29
26
31
28
26
168,522
169,711
172,604
175,754
175,455
180,663
178,493
181,404
182,083
185,864
185,094
193,640
1974--Jan.
30
191,824 146,145 13,136 32,543 31,358 234,467 177,350
9,229 1,477 3,096 61,670 101,878 30,743
5,890 4,377
12,518
5,596 26,999
35,002
36,324 10,199 22,857
122,511 74,995 24,689
134,759 83,397 24,998
140,715 92,147 21,278
154,130 99,404 22,586
175,211 110,357 24,343
197,843 127,881 24,830
2,250
2,408
3,268
22,826
26,364
27,291
32,140
40,511
45,132
6,402
10,632
10,778
20,334
22,664
23,928
25,448
26,783
29,841
19,466
46,059
47,553
146,052
161,122
169,078
184,635
207,798
234,342
17,415
43,418
44,443
131,156
144,682
148,007
161,850
181,780
205,914
792
1,207
1,056
2,766
2,839
3,152
3,387
3,853
4,116
30
17
17
96
111
84
135
263
395
225
5,465
432
1,564
1,281
1,671
2,592
2,993
3,238
10,109 6,258
4
24,235 12,494
11
28,378 14,560
23
61,161 65,569
552
66,578 73,873
804
67,930 75,170 1 ,820
69,806 85,930 1,836
74,072 100,600 3,11"
83,681 114,483 4,455
126,055
128,535
130,118
131,964
134,243
137,383
137,060
138,514
139,794
141,104
142,871
146,004
44,925
45,174
45,571
45,952
46,346
47,072
46,659
47,300
47,426
47,452
47,157
47,216
25,931
26,295
24,868
25,121
26,594
28,309
25,910
25,260
26,370
28,131
26,581
28,318
229,209
231,780
231,951
234,358
238,037
241,736
239,796
240,660
243,246
246,675
246,949
252,007
199,603
201,349
200,461
202,710
204,432
208,974
205,480
205,351
207,920
C
211,026
210,570
216,042
3,235
3,199
3,063
3,035
3,318
3,471
3,178
3,058
3,094
3,365
3,214
3,433
395
395
395
395
395
342
395
395
395
342
342
342
3,376
3,474
3,396
2,940
2,183
3,766
2,205
1,254
2,434
1,793
1,648
2,326
76,769 115,828
76,587 117,694
74,409 119,198
76,477 119,863
77,105 121,431
79,585 121,810
77,281 122,421
76,565 124,079
77,421 124,576
80,180 125,346
79,496 125,870
83,085 126,856
5.752
6,082
6,619
6,608
7,581
6.753
8,490
8,598
8,212
8,230
8,577
7,868
214,575 145,563 21,125 47,887 26,949 250,343 214,349
3,261
342 3,003 78,256129,487
8,797
31
28
28
other member: 8 , 9 , 1 0
1941-- D e c . 31
1945-- D e c .
1947-- D e c . 31
1967-- D e c .
1968-- D e c . 31
1969-- D e c . 317
1970-- D e c . 31
1971-- D e c . 31
1972-- D e c . 31
1973--Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1974--Jan.
31
28
25
30
25
26
31
28
30*
For notes see p. A-21.
195,468
197,603
199,365
201,351
203,084
206,092
205,657
207,058
208,391
209,429
211,275
214,357
24,488
23,894
23,676
23,435
22,495
21,638
21,938
21,244
21,171
20,873
21,247
21,137
18,535
A 19
A 20
COMMERCIAL BANKS • FEBRUARY 1974
PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued
(Amounts in millions of dollars)
Loans and investments
Classification by
FRS membership
and FDIC
insurance
Total
Insured banks:
Total:
1941—Dec. 31.. 49,290
1945—Dec. 31.. 121,809
1947—Dec. 31.. 114,274
Loans
l
Total
assets—
Securities
Total
Cash
liaassets 3 bilities
and
U.S.
Other
capital
2
Treasacury
counts 4
21,259 21,046
25,765 88,912
37,583 67,941
Deposits
Interbank3
Other
Total 3
Demand
Demand
Time
5
Time
10, 654
6,984 25,788 76,820 69,411
13, 883
7,131 34,292 157,544 147,775
8,750 36,926 152,733 141,851 12,615
54
U.S.
Govt.
Other
1,762
23,740
1,325
41,298
80,276
92,975
15,699
29,876
34,882
Borrowings
Total Numcapital
ber
acof
counts banks
10
215
61
6,844 13,426
8,671 13,297
9,734 13,398
1963—Dec. 20.. 252,579 155,261 62,723 34,594 50,337 310.730 273,657 15,077
1964—Dec. 31.. 275,053 174,234 62,499 38,320 59,911 343,876 305,113 17,664
1965—Dec. 31.. 303,593 200,109 59,120 44,364 60,327 374,051 330,323 18,149
443
733
923
6,712 140,702 110,723
6,487 154,043 126,185
5,508 159,659 146,084
3,571 25,277 13,284
2,580 ! 27,377 13,486
4,325 29,827 13,540
1966—Dec. 31.. 321,473 217,379 55,788 48,307 68,515 401,409 351,438 19,497
1967—Dec. 30.. 358,536 235,502 62,094 60,941 77,348 448,878 394,118 21,598
1968—Dec. 31.. 399,566 264,600 64,028 70,938 83,061 498,071 432,719 24,427
881
1,258
1,155
4,975 166,689 159,396
5,219 182,984 183,060
5,000 198,535 203,602
4,717 31,609 13,533
5,531 33,916 13,510
8,675 36,530 13,481
1969—Dec. 317- 419,746 294,638 54,399 70,709 89,090 527,598 434,138 26,858
31..
28..
30..
17 r .
594,502
606,852
630,379
647,971
National member:
1941—Dec. 31..
1945—Dec. 31..
1947—Dec. 31..
27,571
69,312
65,280
1972—Dec.
1973—Mar.
June
Oct.
411,525 66,679 116,298 111,333
178 ,617
89,402
428,235
452,587 57,532 120,261 101,716
468,000 52,497 127,473 101,205
732,519
724,105
762,250
780,196
612,822
594,805
625,316
633,180
43,433
90,220
88,182
39,458
84,939
82,023
33,366
25,721
30,559
28,443
695
5,038 207,311 194,237 18,024 39,450 13,464
4,113 10,820 250,693 313,830 37,556
4,339 11,322 219,601 333,821 43,921
5,446 10,408 235,174 343,729 48,413
6,571 5,821 234,549 357,798 55,906
52,166
53,529
55,240
50,727
13,721
13,766
13,842
13,923
3,640
4,644
5,409
5,117
5,017
5,005
35
1,088
14,013
795
23,262
45,473
53,541
8,322
16,224
19,278
1963—Dec. 20.. 137,447 84,845 33,384 19,218 28,635 170,233 150,823 8,863
1964—Dec. 31.. 151,406 96,688 33,405 21,312 34,064 190,289 169,615 10,521
1965—Dec. 31.. 176,605 118,537 32,347 25,720 36,880 219,744 193,860 12,064
146
211
458
3,691
3,604
3,284
76,836
84,534
92,533
61,288
70,746
85,522
1,704 13,548
1,109 15,048
2,627 17,434
4,615
4,773
4,815
1966—Dec. 31.. 187,251 129,182 30,355 27,713 41,690 235,996 206,456 12,588
1967—Dec. 30.. 208,971 139,315 34,308 35,348 46,634 263,375 231,374 13,877
1968—Dec. 31.. 236,130 159,257 35,300 41,572 50,953 296,594 257,884 15,117
437
652
657
3,035 96,755 93,642
3,142 106,019 107,684
3,090 116,422 122,597
3,120 18,459
3,478 19,730
5,923 21,524
4,799
4,758
4,716
1969—Dec. 317. 247,526 177,435 29,576 40,514 54,721 313,927 256,314 16,299
361
3,049 121,719 114,885 12,279 23,248
1972—Dec.
1973—Mar.
June
Oct.
11,725 12,039
13,925 51,250
21,428 38,674
434,810
426,035
449,772
460,164
359,319
345,341
364,129
368,351
2,155 8,145
1,933 9,731
2,125 10,822
24,688
48,084
43,879
22,259
44,730
40,505
3,'739
4,<411
3,978
72,680
77,091
74,972
46,866 15,958 9,855 15,760
51,002 15,312 10,777 18,673
51,262 1 12,645 11,065 15,934
91,235
98,852
93,640
78,553
86,108
81,657
77,377
85,128
89,894
54,560 11,569 11,247 19,049 99,504
58,513 12,649 13,966 22,312 111,188
61,965 12,581 15,348 22,803 116,885
85,547
95,637
98,467
90,088
65,560 10,257 14,271 24,313 119,219
350,743
354,999
369,856
377,246
State member:
1941—Dec. 31..
1945—Dec. 31..
1947—Dec. 31..
15,950
37,871
32,566
6,295 7,500
8,850 27,089
11,200 19,240
1963—Dec. 20..
1964—Dec. 31..
1965—Dec. 31..
1966—Dec. 31..
1967—Dec. 30..
1968—Dec. 31..
1972—Dec.
1973—Mar.
June
Oct.
4,612
4,607
4,629
4,642
15
621
8,166
381
13,874
24,168
27,068
4,025
7,986
9,062
1
130
9
2,246
2,945
3,055
1,502
1,867
1,918
5,655
6,486
5,390
236
453
382
2,295
2,234
1,606
40,725
44,005
39,598
29,642
32,931
34,680
1,795
1,372
1,607
7,506
7,853
7,492
1,497
1,452
1,406
6,200
6,934
8,402
357
516
404
1,397
1,489
1,219
41,464
45,961
47,498
36,129
40,736
40,945
1,498
1,892
2,535
7,819
8,368
8,536
1,351
1,313
1,262
5,116
248
1,065
48,030
35,560
8,800
1,201
1,406
1,495
2,005
2,604
2,378
2,457
1,986
1,146
51,017
43,377
45,322
44,735
55,523 9,651 10,886
60,065 12,044 10,973
61,032 12,725 11,231
63,132 15,352 11,432
1,092
1,074
1,076
1,078
1,025
1,063
1,448
2,668
4,448;
4,083
8,708
19,256
20,691
7,702
18,119
19,340
262
4
53
1,560
149
4,162
10,635
12,366
3,360
5,680
6,558
6
7
7
959
1,083
1,271
6,810
6,416
6,478
5,523
6,233
7,581
5,942
7,174
7,513
49,275
54,747
60,679
44,280
49,389
54,806
559
658
695
61
70
83
726
649
618
23,140
25,504
27,528
19,793
22,509
25,882
72
99
91
4,234
4,488
4,912
7,173
7,262
7,320
33,636 13,873 9,349
37,675 15,146 11,629
43,378 16,155 14,020
7,777
8,403
9,305
65,921
74,328
84,605
59,434
67,107
76,368
709
786
908
87
89
94
543
588
691
28,471
31,004
34,615
29,625
34,640
40,060
99
162
217
5,342
5,830
6,482
7,384
7,440
7,504
94,453
83,380
1,017
85
924
37,561
43,792
629
7,403
7,595
147,013
149,725
157,461
161,783
130,316
131,558
138,171
141,706
1,408
1,076
1,248
1,141
552
559
567
563
1,796
1,999
2,241
1,305
52,876
49,223
52,735
53,650
73,685
78,701
81,379
85,047
1,199
1,541
1,884
1,735
10,938
11,631
12,143
12,778
8,017
8,085
8,137
8,203
42,464
46,567
52,028
23,550 13,391
26,544 13,790
30,310 14,137
1966—Dec. 31..
1967—Dec. 30..
1968—Dec. 31..
56,857
64,449
73,553
30,342
30,924
31,867
32,516
9,541
1963—Dec. 20..
1964—Dec. 31..
1965—Dec. 31..
For notes see p. A-21.
26,706
30,336
33,804
38,819
12,862
10,511
12,671
11,505
3,241 1,509
2,992 10,584
4,958 10,039
82,133
184,622
195,056
201,318
209,619
94,445
5,776
14,639
16,444
128,333
134,306
139,471
145,010
146,800
127,001
137,116
136,163
123,186
117,906
123,016
123,123
Nonmember:
1941—Dec. 31..
1945—Dec. 31..
1947—Dec. 31..
31..
28..
30..
17..
4,668
6,646
6,866
6,181
3,369
2,155
2,285
2,874
3,404
150,697
148,345
155,017
158,250
115,426
117,547
121,052
125,715
1969—Dec. 317.
19,096
14,134
16,640
15,797
4
78
45
29,176
24,248
26,891
25,491
82,889 11,530 21,008
87,421
30 ,126
91,095 9,429 20,527
95,056 8,863 21,796
31..
28..
30..
17..
1972—Dec.
1973—Mar.
June
Oct.
6, 786
9, 229
8,375
67,390
53,789
61,336
63,573
247,041 37,185 66,516
254,447
100 ,552
270,188 31,651 68,018
277,015 27,641 72,590
31..
28..
30..
17 r .
1969—Dec. 317.
3,806 14,977
4,137 20,144
5,178 22,024
51,643 14,565 15,925 10,056
81,594 17,964 28,774
86,368
47 ,939
91,304 16,452 31,716
95,929 15,994 33,087
14,767
11,365
13,490
12,141
129
244
FEBRUARY 1974 • COMMERCIAL BANKS
A 21
PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued
(Amounts in millions of dollars)
Deposits
Loans and investments
Securities
Classification by
FRS membership
and FDIC
insurance
Total
Noninsured
nonmember:
1941—Dec. 31
1945—Dec. 31
1947—Dec. 316
Loans
l
U.S.
Treasury
Cash
assets 3
Other
2
Total
assets—
Total
liabilities
and
Total 3
capital
accounts 4
Interbank 3
Other
Borrowings
Den land
Demand
Time
U.S.
Govt.
1,457
2,211
2,009
455
318
474
761
1,693
1,280
241
200
255
763
514
576
2,283
2,768
2,f-43
1,872
2,452
2,251
329
181
177
1963—Dec. 20
1964—Dec. 31
1965—Dec. 31
1,571
2,312
2,455
745
1,355
1,549
463
483
418
362
474
489
374
578
572
2,029
3,033
3,200
1,463
2,057
2,113
190
273
277
83
86
85
1967
1968
Dec. 30
Dec. 31
2,638
2,901
1,735
1,875
370
429
533
597
579
691
3,404
3,789
2,172
2,519
285
319
1969
June 30 7
Dcc. 31
2,809
2,982
1,800
2,041
321
310
688
632
898
895
3,942
4,198
2,556
2,570
1971—Dec. 31
3,147
2,224
239
684
1,551
5,130
1972—Dec. 31
4,865
3,731
349
785
1,794
7,073
8,196
Total
capital
accounts
Number
of
banks
Time
5
Other
1,291
1,905
1,392
18
253
365
478
13
4
4
329
279
325
852
714
783
17
23
17
832
1,141
1,121
341
534
612
93
99
147
389
406
434
285
274
263
58
56
15
10
1,081
1,366
733
767
246
224
457
464
211
197
298
316
81
41
15
16
1,430
1,559
731
638
290
336
502
528
209
197
2,923
380
116
19
1,273
1,134
283
480
181
3,775
488
81
55
1,530
1,620
527
491
206
4,438
488
145
26
1,779
2,000
885
500
204
185
1973—June 30
5,915
4,732
345
838
1,892
Total nonmember:
1941—Dec. 31
1945—Dec. 31
1947—Dec. 31
7,233
16,849
18,454
3,696
3,310
5,432
2,270
12,277
11,318
1,266
1,262
1,703
3,431
4,962
4,659
10,992 9,573
22,024 20,571
23,334 21,591
457
425
439
190
5,504
14,101
167 13,758
3,613
6,045
7,036
18
11
12
1,288
1,362
1,596
7,662
7,130
7,261
1963 Dec. 20
1964 Dec. 31
1965—Dec. 31
44,035
48,879
54,483
24,295
27,899
31,858
13,854
14,273
14,555
5,885
6,707
8,070
6,316
7,752
8,085
51,304 45,743
57,780 51,447
63,879 56,919
749
931
972
144
156
168
743 23,972 20,134
672 26,645 23,043
635 28,649 26,495
165
198
238
4,623
4,894
5,345
7,458
7,536
7,583
1967—Dec. 30
1968—Dec. 31
67,087
76,454
39,409
45,253
15,516
16,585
12,162
14,617
8,983
9,997
77,732 69,279
88,394 78,887
1,071
1,227
147
150
603 32,085 35,372
701 35,981 40,827
408
441
6,286
6,945
7,651
7,701
1969—June 30 7
Dec. 31
80,841
85,115
50,159
53,683
14,662
14,875
16,021
16,556
81,166
85,949
1,090
1,333
160
126
765 35,500 43,652
940 39,120 44,430
741
965
7,506
7,931
7,737
7,792
1971—Dec. 31
111,674
69,411
17,297 24,966
13,643 129,100 112,764
1,592
359
1,742 45,990
63,081
866
9,932
8,056
1972—Dec. 31
133,198
85,325
18,313 29,559
16,562 154,085 134,091
1,895
633
1,850
54,406
75,305
1,726
11,429
8,223
1973—June 30
145,386 96,036
32,554
15,381 165,657 142,608
1,736
712
2,267
54,514
83,379
2,770
12,643
8,341
16,797
9,594 92,743
10,950 98,651
1 Beginning June 30, 1966, loans to farmers directly guaranteed by
CCC were reclassified as securities, and Export-Import Bank portfolio
fund participations were reclassified from loans to securities. This reduced
"Total loans" and increased "Other securities" by about $1 billion. "Total
loans" include Federal funds sold, and beginning with June 1967 securities
purchased under resale agreements, figures for which are included in
"Federal funds sold, etc.," on p. A-22.
Beginning June 30, 1971, Farmers Home Administration notes are
classified as "Other securities" rather than "Loans." As a result of this
change, approximately $300 million was transferred to "Other securities"
for the period ending June 30, 1971, for all commercial banks.
See also table (and notes) at the bottom of p. A-30.
2 See first two paragraphs of note 1.
3
Reciprocal balances excluded beginning with 1942.
4
Includes items not shown separately. See also note 1.
5 See third paragraph of note 1 above.
6
Beginning with Dec. 31, 1947, the series was revised; for description,
s e e n o t e 4, p. 587, M a y 1964 BULLETIN.
7
Figure takes into account the following changes beginning June 30,
1969: (1) inclusion of consolidated reports (including figures for all bankpremises subsidiaries and other significant majority-owned domestic
subsidiaries) and (2) reporting of figures for total loans and for individual
categories of securities on a gross basis—that is, before deduction of
valuation reserves—rather than net as previously reported.
8
Beginning Nov. 9,1972, designation of banks as reserve city banks for
reserve-requirement purposes has been based on size of bank (net demand
deposits of more than $400 million), as described in the BULLETIN for
July 1972, p. 626. Categories shown here as "Large" and "All other" parallel the previous "Reserve city" and "Country" categories, respectively
(hence the series are continuous over time).
9 Regarding reclassification as a reserve city, see Aug. 1962 BULLETIN,
p. 993. For various changes between reserve city and country status in
1960-63, see note 6, p. 587, May 1964 BULLETIN. (See also note 8.)
10
Beginning May 6, 1972, two New York City country banks, with
deposits of $1,412 million, merged and were reclassified as a reserve city
bank. (See also note 8.)
NOTE.—Data are for all commercial banks in the United States (including Alaska and Hawaii, beginning with 1959). Commercial banks represent
all commercial banks, both member and nonmember; stock savings
banks; and nondeposit trust companies.
For the period June 1941-June 1962 member banks include mutual
savings banks as follows: three before Jan. 1960, two through Dec. 1960,
and one through June 1962. Those banks are not included in insured
commercial banks.
Beginning June 30, 1969, commercial banks and member banks exclude
a small national bank in the Virgin Islands; also, member banks exclude,
and noninsured commercial banks include, through June 30, 1970, a small
member bank engaged exclusively in trust business; beginning 1973,
excludes one national bank in Puerto Rico.
Comparability of figures for classes of banks is affected somewhat by
changes in F.R. membership, deposit insurance status, and the reserve
classifications of cities and individual banks, and by mergers, etc.
Data for national banks for Dec. 31, 1965, have been adjusted to make
them comparable with State bank data.
Figures are partly estimated except on call dates.
For revisions in series before June 30, 1947, see July 1947 BULLETIN,
pp. 870-71.
A 22
COMMERCIAL BANKS • FEBRUARY 1974
LOANS AND INVESTMENTS BY CLASS OF BANK
(In millions of dollars)
Other loans l
Class of
bank and
call date
Total
loans 1
and
investments
Federal
funds
sold,
etc. 2
Total: 2
1947—Dec. 3 1 . . 116,284
Total
Investments
For
To
purchasing
financial
or
carrying
Cominstitutions
Other,
mer- Agri- securities
to
Real
cial
culin- Other
5
and
ture
To
diinvidal i broduskers T o
uals3
trial
and others Banks Others
dealers
38,057 18,167 1,660
830 1,220
9,393
5,723
U.S. Treasury
securities 6
Bills
and Notes
certificates
947 69,221
9,982
State
and
local Other
govt, secusecu- rities 5
Bonds rities
6,034 53,205
1972—Dec. 31 io 599,367 26,662 388,593 132,701 14,314 11,316 4,491 6,585 23,402 98,382 87,232 10,171 67,028
1973—June 30.. 636,294 27,652 429,667 150,390 15,985 7,366 4,752 9,853 27,685 108,199 94,416 11,020 57,877
All insured:
49,290
1941—Dec. 31
1945—Dec. 3 1 . . 121,809
1947—Dec. 3 1 . . 114,274
21,259 9,214 1,450
614
662
25,765 9,461 1,314 3,164 3,606
37,583 18,012 1,610
823 1,190
40
49
114
4,773
4,677
9,266
21,046
4,505
988 3,159 16,899 3,651 3,333
2,361 1,132 88,912 21,526 16,045 51,342 3,873 3,258
5,654
914 67,941 9,676 5,918 52,347 5,129 3,621
1972—Dec. 31 io 594,502 25,584 385,941 131,422 14,287 11,165 4,460 6,115 23,277 98,204 86,912 10,099 66,679
1973—June 30.. 630,379 26,162 426,425 148,825 15,967 7,295 4,727 9,060 27,574 108,008 94,060 10,909 57,532
Oct. 17 r. 647,971 28,566 439,435
Member—Total:
1941—Dec. 3 1 . . 43,521
1945—Dec. 31 107,183
1947—Dec. 3 1 . . 97,846
18,021 8,671
22,775 8,949
32,628 16,962
39
47
113
972
594
598
855 3,133 3,378
,046
811 1,065
89,173 27,125
90,967 29,293
3,494
19,539
3,653
971 3,007 15,561 3,090 2,871
3,455 1,900 1,057 78,338 19,260 14,271 44,807 3,254 2,815
7,130 4,662
839 57,914 7,803 4,815 45,295 4,199 3,105
1972—Dec. 31 io 466,169 19,961 309,969 112,110 ,495 10,863 3,870 5,783 22,026 73,131 64,490 9,201 48,715
1973—June 30. 490,908 19,705 341,577 127,194 9,467 7,103 4,122 8,634 26,258 79,840 69,006 9,953 41,080
Oct. 17 r . 502,961 20,823 351,248
New York City: 11
1941—Dec. 3 1 . . 12,896
1945—Dec. 3 1 . . 26,143
1947—Dec. 3 1 . . 20,393
4 , 0 7 2 2,807
7,334 3,044
7,179 5,361
412
2,453
545
1972—Dec. 31 io 75,034
1973—June 30.. 79,212
Oct. 17. . 81,550
812 57,901 27,864
,394 64,033 31,880
,578 65,392
7,057
4,563
732
760
1,418
211
City of Chicago: 1i
1941—Dec. 3 1 . .
1945—Dec. 31
1947—Dec. 3 1 . .
2,760
5,931
5,088
954
1,333
1,801
1972—Dec. 31 io 21,362
1973—June 30.. 24,566
Oct. 1 7 . . 25,802
718 15,576 7,851
1,097 18,549 10,034
1,229 19,221
140
129
Other large banks:11
1941—Dec. 3 1 . . 15,347
1945—Dec. 31
40,108
1947—Dec, 3 1 . . 36,040
7,105 3,456
8,514 3,661
13,449 7,088
300
205
225
841 2,271
772 3,776
73
52
233
87
,330
843
282
313
48
32
26
93
169
,172
267
123
80
11
6,413
8,776
5,789
6,352
22
36
46
341 2,780
598 3,558
4
17
15
114
194
427 1,503
170 484
69,640 17,884
69,374 19,172
7,265
522
311 1,623 5,331
287
272 17,574 3,910 3,325 10,339
564
238 11,972 1,642
558 9,772
5,225 2,390
5,158 2,676
95
51
149
5,696
4,661
1,430
40 4,213
26 2,890
256
1,600
367
153 1,022
749 1,864
248 2,274
1,066
1,146
1,138
1,207
1,527
1,459
3,147
6,467
1 ,508
295
751 5,421
855
387 29,552 8,016 5,653 15,883
1,969
351 20,196 2,731 1,901 15,563
648
721
5,890
5,596
10,199
1,676
1,484
3,096
659
648
818
1972—Dec. 31 io 198,156 8,504 19,690 31,911 6,327
1973—June 30.. 206,404 7,882 129,813 34,824
015
211,357 8,806 134,007
Oct. 17
Nonmember:
1947—Dec. 3 1 . .
6,701
7,947
4
5
452 ,040
282 1,253
614
20
156
453
263
622
630
1,205
2
183
471
227
78,624 20,591 5,819
88,089 23,196 6,518
5,432
,454
1972—Dec. 31 io 133,198
1973—June 30.. 145,386
20
42
23
1,873
1,715
1,528
4,377
707
359 26,999
1,979
224 22,857
2,266
803
1,219
1,061
109 11,318
969 18,313
1,377 25,250 22,741
1,427 28,359 25,410 1,067 16,797
830
629
604
182
213
193
204
185
2,820
2,796
375
409
181
820
956
916
1,126
1,342 1,053
24,049 4,523
24,435 4,710
110
481 3,787
5,732 4,544 16,722
3,063 2,108 17,687
455 2,565 39,262 35,458 2,220 24,830
657 2,484 42,638 38,284 2,376 21,638
1 Beginning with June 30, 1948, figures for various loan items are
shown gross (i.e., before deduction of valuation reserves); they do not
add to the total and are not entirely comparable with prior figures. Total
loans continue to be shown net. See also note 10.
2
Includes securities purchased under resale agreements. Prior to June 30,
1967, such securities were included in loans—for the most part in loans to
"Banks." Prior to Dec. 1965, Federal funds sold were included with
"Total" loans and loans to "Banks."
3 See table (and notes), Deposits Accumulated for Payment of Personal
Loans, p. A-30.
1,823
1,881
3,827
729
606
638
9,107 1,518
7,224 1,900
1972—Dec. 31 io 171,618 9,927 116,802 44,483 ,977 2,024 1,707 2,716 10,268 27,014 22,669 3,943 16,316
1973—June 30.. 180,726 9,333 129,182 50,457 2,241 ,415 1,784 3,603 11,440 29,705 24,357 4,181 13,066
Oct. 1 7 . . 184,252 9,210 132,627
All other member:11
1941—Dec. 3 1 . . 12,518
1945—Dec. 3 1 . . 35,002
1947—Dec. 3 1 . . 36,324
5,276 3,729
89,504 27,579
91,312 29,787
1,222 1,028
1,342 I,067
2,006 ' 2 6 2
33,664 II,468
34,919 12,153
2,179
1,219 7,920
,078
625
19,864 9,695
21,939 10,615
4
Breakdowns of loan, investment, and deposit classifications are not
available before 1947; summary figures for 1941 and 1945 appear in the
table on pp. A-18—A-21.
5 Beginning with June 30, 1966, loans to farmers directly guaranteed
by CCC were reclassified as "Other securities," and Export-Import Bank
portfolio fund participations were reclassified from loans to "Other
securities." This increased "Other securities" by about $1 billion.
<5 Beginning with Dec. 31, 1965, components shown at par rather than
at book value; they do not add to the total (shown at book value) and are
not entirely comparable with prior figures. See also note 10.
Notes continued on opposite page.
A 23
FEBRUARY 1974 • COMMERCIAL BANKS
RESERVES AND LIABILITIES BY CLASS OF BANK
(In millions of dollars)
Time deposits
Demand deposits
Class of
bank and
call date
Reserves
with
F.R.
Banks
DeBalCurmand
ances
rency
dewith
and
posits
docoin mestic
ad- 8
banks7 justed
Interbank
U.S.
Govt.
ForDojnestic 7 eign 9
State
and
local
govt.
Certified
and
officers'
checks,
etc.
Total: 3
1947—Dec. 3 1 . . . . 17,796 2,216
10,216 87,123
11,362
1,430
1,343
6,799
1972—Dec. 31 i o . 26,070 8,666
1973—June 3 0 . . . 25,143 7,669
32,185 212,121
29,842 202,109
29,971
26,978
3,883 10,875
4,069 10,434
18,588
18,166
A l l insured:
1941—Dec. 3 1 . . . . 12,396 1,358
1945—Dec. 3 1 . . . . 15,810 1,829
i 17,796 2,145
1947—Dec. 31
8,570 37,845
11,075 74,722
9,736 85,751
9,823
12,566
11,236
673 1 /62
1,248 23,740
1,379 1,325
3,677
5,098
6,692
1972—Dec. 31 io . i 26,070 8,637 30,734 210,287 29,731
1973—June 3 0 . . . 25,143 7,658 28,238 200,083 26,713
Oct. 17 r . . 30,998 9,231 23,960 203,931 24,626
3,635 10,820
3,846 10,408
3,817 5,821
18,459
18,016
15,620
671 1,709
1,243 22,179
1,375 1,176
3,066
4,240
5,504
1,009
2,450
2,401
19,396 158,464 28,521 3,437 9,024
18,004 148,306i 25,684 3,627 8,167
16,011 150,944• 23,667 3,634 4,515
13,544
13,251
11,213
9,503
8,781
8,382
Member—Total:
12,396 1,087
1941—Dec. 31
1945—Dec. 3 1 . . . . 15,811 1,438
1947—Dec. 3 1 . . . . 1 17,797 1,672
1972—Dec. 31 i o . 26,070 6,582
1973—June 3 0 . . . 25,143 5,754
Oct. 1 7 ' . . 30,998 7,018
9,714
6,246 33,754
7,117 64,184 12,333
6,270 | 73,528 10,978
New York City;H
1941—Dec 3 1 . . . .
1945—Dec. 3 1 . . . .
1947—Dec. 3 1 . . . .
5,105
4,015
4,639
93
111
151
1972—Dec. 31 i o .
1973—June 3 0 . . .
Oct. 1 7 . . .
5,695
4,981
5,972
508
467
581
City of Chicago:11
1941—Dec. 3 1 . . . .
1945—Dec. 31
1947—Dec. 3 1 . . . .
1,021
942
1,070
43
36
30
298
200
175
2,215
3,153
3,737
1,027
1,292
1,196
1972—Dec. 31 i o .
1973—June 3 0 . . .
Oct. 1 7 . . .
1,496
1,512
1,576
152
126
124
173
138
333
5,783
5,827
5,136
1,516
1,206
1,303
99
117
137
Other large banks:11
1941—Dec. 3 1 . . . .
1945—Dec. 3 1 . . . .
1947—Dec. 3 1 . . . .
4,060
6,326
7,095
425
494
562
2,590 11,117
2,174 22,372
2,125 25,714
1972—Dec. 31 i o . 10,085 2,114
1973—June 30. . . 9,345 1,788
Oct. 1 7 . . . 13,367 2,234
All other member:11
1941—Dec. 31 . . . .
1945—Dec. 3 1 . . . .
1947—Dec. 3 1 . . . .
2,210
4,527
4,993
1972—Dec. 31 io
1973—j u n e 30
1,077
2,585
2,559
36,544
72,593
83,723
158
70
54
11,177 221,057 4,113
10,473 206,685 5,446
9,905 209,023 6,571
33,061
62,950
72,704
140
64
50
174,770 3,562
160,407 4,879
161,303 6,008
319
237
290
450
1,338
1,105
11,282
15,712
17,646
4,854 23,271 12,532 2,562
5,557 20,478 12,679 2,661
4,567 22,240i 10,617 2,656
1,418
1,115
644
741
646
497
3,592
3,403
3,358
31,040 1,833
26,558 2,773
25,615 3,809
8
127
20 1,552
72
21
233
237
285
34
66
63
2,152
3,160
3,853
509
299
141
223
225
314
264
229
206
6,899
6,918
6,542
4,302
6,307
5,497
54
491
110 8,221
131
405
1,144
1,763
2,282
286
611
705
4,688 52,813
4,099 49,344
3,900 49,190
10,426
8,446
8,408
707 3,860
731 2,988
742 1,768
3,854
3,954
3,107
3,216
9,661
4,665 23,595
3,900 27,424
790
1,199
1,049
2
225
8 5,465
432
7
9,681
8,211
7,211
76,597
72,658
74,378
4,047
3,353
3,340
70 3,238
118 3,766
99 1,963
544
3,947
13,595
385
2,084
1,915
12,789
11,838
53,658
53,803
1,449
1,294
526
796
929
10,761
15,065
16,653
3,595
3,535
3,236
55
6
17
12
111
866 34,383
59
103
111
492 15,146
496 29,277
826 33,946
50
99
105
418 11,878
399 23,712
693 27,542
10
12
29
20
14
10 2,522
20 2,075
31 2,371
95
224
2
847
930
1,360
11,127
22,281
26,003
104
30
22
20
38
45
3,075
2,728
2,587
64,447
58,194
58,604
1,173
1,371
1,388
1,370
2,004
2,647
239
435
528
8,500
21,797
25,203
30
17
17
8,726
8,426
7,295
2,571
2,421
2,231
72,384
68,737
70,542
395
342
352
1,295
180
12,284
190
2,182
2,381
47,180
47,219
633
712
10 6,844
215 8,671
61 9 , 7 3 4
4 5,886
208 7,589
54 8,464
468 28,553 211,124 36,357 41,228
569 30,812 230,969 46,529 43,098
427 32,398 239,926 54,171 43,948
160
392
459
5,044
4,915
65 10,059
606 37,086 276,138 37,556 52,166
730 40,655 302,344 48,413 55,240
580 42,914 314,304 55,906 56,726
9
167
IPC 3
Bor- Capital
rowacings counts
606 37,161 277,683 38,083 52,658
730 40,734 304,265 49,299 55,740
2
446 1,851
442 2,267
10
Beginning June 30, 1969, reflects (1) inclusion of consolidated reports
(including figures for all bank-premises subsidiaries and other significant
majority-owned domestic subsidiaries) and (2) reporting of figures for
total loans and for individual categories of securities on a gross basis—that
is before deduction of valuation reserves. See also notes 1 and 6.
11
Beginning Nov. 9,1972, designation of banks as reserve city banks for
reserve-requirement purposes has been based on size of bank (net demand
deposits of more than $400 million), as described in the BULLETIN for
July 1972, p. 626. Categories shown here as "Large" and "All other"
240
866
6,940
267
141
78
70
7 Beginning with 1942, excludes reciprocal bank balances.
8 Through 1960 demand deposits other than interbank and U.S.
Govt., less cash items in process of collection; beginning with 1961,
demand deposits other than domestic commercial interbank and U.S.
Govt., less cash items in process of collection.
9
For reclassification of certain deposits in 1961, see note 6, p. 589,
M a y 1964 BULLETIN.
84,987
11,685 221,950 4,194
11,162 207,625 5,590
607
1,105
1,217
1972—Dec. 31 i o . 8,794 3,807
1973—June 3 0 . . . 9,305 3,373
Oct. 17 r . . 10,083 4,079
Nonmember: 3
1947—Dec. 31
2,581
IPC
U.S.
Govt, State
Inter- and
and
bank Postal local
Sav- govt.
ings
1,648
195 2,120
30 2,259
26,196 9 , 5 0 2 8,042
30,788 11,597 8,287
31,522 13,260 8,405
476
719
902
288
377
426
9,237 3,008
11,357 4,146
11,656 5,827
243
4,542
160 9,563
332 11,045
181 11,811
158 13,145
233 13,167
31
52
45
778
1,206
1,418
1,891
1 ,947
1,988
1,967
2 2,566
1 2,844
74,449 19,392 14,687
81,531 24,032 15,260
86,214 27,830 15,450
146 6,082
219 12,224
337 14,177
4 1,982
11 2,525
23 2,934
181 13,373 101,243 4,455 16,608
167 14,661 107,293 6,753 17,604
161 15,500 110,534 7,254 18,103
6
172
138 8,608
162 9,922
6,858
12 1,596
66,559 1,726 11,429
73,295 2,770 12,643
parallel the previous "Reserve city" and "Country" categories, respectively
(hence the series are continuous over time).
NOTE.—Data are for all commercial banks in the United States; member
banks in U.S. possessions were included through 1968 and then excluded.
For the period June 1941—June 1962 member banks include mutual
savings banks as follows: three before Jan. 1960, two through Dec. 1960,
and one through June 1962. Those banks are not included in all insured or
total banks.
A small noninsured member bank engaged exclusively in trust business
is treated as a noninsured bank and not as a member bank for the period
June 30, 1 9 6 9 - J u n e 30, 1970.
Comparability of figures for classes of banks is affected somewhat by
changes in F.R. membership, deposit insurance status, and the reserve
classifications of cities and individual banks, and by mergers, etc.
For other notes see opposite page.
WEEKLY REPORTING BANKS • FEBRUARY 1974
A 24
ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS
(In millions of dollars)
Loans
Federal funds sold, etc. 1
Wednesday
Other
For purchasing
or carrying sepurities
To brokers
and dealers
involving—
Total
loans
and
investments
Total
To
commercial
banks
U.S.
Treasury
securities
To
others
Total
Other
securities
Commercial
and
industrial
To brokers
and dealers
Agricultural
U.S.
Treasury
sees.
Other
sees.
To nonbank
financial
institutions
To
others
U.S.
Treasury
sees.
Other
sees.
Large banks—
Total
1973
Jan.
321 Ml
323,132
321,671
319,256
323,606
15,144
12,967
12,011
11,188
12,098
14,069
11,628
10,684
10,134
10,999
413
625
682
615
611
376
435
466
323
296
286
279
179
116
192
227,352
225,371
225,398
224,379
227,165
91,468
91,071
91,422
91,475
92,332
2,936
2.948
2,959
2,975
2,995
978
1,184
991
722
1,063
8,346
7,922
7,800
7,454
7,750
272
302
273
248
291
2.939
2:913
2,923
2,932
2,903
363,957
366,024
368,702
374,566
15,410
13,951
15,015
18,248
13,770
12,252
13,614
14,433
1,127
1,119
819
3,118
350
411
410
509
163
169
172
188
263,541
265,410
267,945
270,633
107,959
108,222
109.119
109,821
3,419
3,475
3,477
3,535
760
902
1,020
1,739
5,340
6,090
5,572
6,225
144
150
148
153
2,841
2,840
2,843
2,825
379,673
373,631
372,283
369,221
369.548
19,908
16,342
15,834
13,981
15,634
18,026
13,899
14,027
12,612
14,218
969
1,911
1,105
843
935
683
350
549
352
303
230
182
153
174
178
272,784
269,729
269,311
268,005
266,873
110,787
110,193
110,205
109,632
109,448
3,671
3,695
3,689
3,714
3,701
819
,491
847
855
602
5,666
5,158
5,183
4,762
4,576
155
158
150
160
156
2,799
2,779
2,781
2,779
2,767
68,644
67,305
67,266
66,654
68,430
1,593
873
934
1,174
1,012
1,501
830
893
1,161
972
52,618
51,951
52,017
51,291
52,995
26,053
26,078
26,142
26,247
26,743
48
49
51
55
56
813
1,016
835
600
913
5,021
4,836
4,703
4,434
4,687
735
705
702
692
683
79,386
80,632
81,081
83,249
1,439
1,164
1,354
2,213
1,398
1,134
1,323
2,163
62,091 31,084
62,795 30,928
63,530 31,238
64,990 31,439
111
125
127
131
671
764
901
1,598
3,077
3,776
3,250
3,890
647
638
647
633
82,400
81,204
80,482
79.841
79;049
1,786
1,092
1,346
1,372
1,707
1,756
1,087
1,334
1,342
1,630
64,563 31,740
63,666 31,647
63,113 31,639
62,410 31,352
61,751 31,438
128
133
136
151
150
672
1,304
719
725
513
3,362
3,066
3,088
2,895
2,710
629
626
632
623
622
258,998
255.827
254,405
252,602
255,176
13,551
12,094
11,077
10,014
11,086
12,568
10,798
9,791
8,973
10,027
394
621
676
606
577
376
402
437
323
296
213
273
173
112
186
65,415
64,993
65,280
65,228
65,589
2,888
2,899
2,908
2,920
2,939
165
168
156
122
150
3,325
3.086
3,097
3,020
3,063
238
257
244
215
238
2,204
2,208
17
24
31
5
12
19
284,571
285,392
287,621
12,372
12,291
12,270
1.087
1,109
809
3,068
350
411
410
509
162 201,450 76,875
149 202,615 77,294
151 204,415 77,881
188 205,643 78,382
3,308
3,350
3,350
3,404
138
119
141
2,263
2,314
2,322
2,335
114
109
108
291,311
13,971
12,787
13,661
16,035
112
2,194
2,202
2,196
2,192
297,273
292,427
291,801
289,380
290,499
18,122
15,250
14,488
12,609
13,927
16,270
12,812
12,693
11,270
12,588
964
1,906
1,100
817
859
683
350
549
352
303
205
182
146
170
177
3,543
3.562
3,553
3.563
3,551
147
187
128
130
89
2,304
2,092
2,095
1,867
1,866
111
116
117
116
113
2,170
2,153
2,149
2,156
2,145
3
10
17
24
31
Dec.
5
12
19
26
1974
Jan.
2p
9P
16P'.!.'.'...
23p
30?
New York City
1973
Jan.
Dec.
3
10
17
24
31
5
12
19
26
1974
Jan.
2p
9p
1 6p
23p
30 p
25
Outside
New York City
1973
Jan.
Dec.
3
10
26
11,118
174,734
173,420
173,381
173,088
174,170
2,221
2,240
2,220
1974
Jan.
2p
9p
1 6p\
23"
30P
For notes see p. A-28.
208,221
206,063
206,198
205,595
205,122
79.047
78,546
78,566
78,280
78,010
A 25
FEBRUARY 1974 • WEEKLY REPORTING BANKS
ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued
(In millions of dollars)
Loans (cont.)
Investments
Other (cont.)
U.S. Treasury securities
Notes and bonds
maturing—
To commercial
banks
Wednesday
Real
estate
Domestic
Foreign
Consumer
instalment
Foreign
govts. 2
All
other
Total
Bills
Certificates
Within
1 yr.
1 to
5 yrs.
After
5 yrs.
Large banks—
Total
1973
45,984
46,110
46,236
46,338
46,464
2,411
2,429
2,333
2,315
2,681
3,267
3,196
3,053
3,047
3,172
28,135
28,123
28,114
28,170
28,270
1,155
1,148
1,150
1,179
1,187
18,926
18,233
18,241
18,182
18,196
29,133
28,939
28,912
28,469
28,926
6,586
6,390
6,434
6,183
6,515
4,472
4,565
4,593
4,546
4,674
15,535
15,441
15,326
15,155
15,132
2,540
2,543
2,559
2,585
2,605
Jan.
3
10
17
24
31
54,473
54,723
54,894
54,933
3,987
3,992
4.021
4.022
4,678
4,883
5,099
5,166
32,591
32,698
32,838
32,942
1,427
1,538
1,589
1,580
20,206
20,349
20,895
21,010
25,974
26,201
25,441
25,527
6,076
6,452
5,764
5,779
4,033
4,174
4.013
4,109
12,491
12,216
12,199
12,228
3,374
3,359
3,465
3,411
Dec.
5
12
19
26
3,996
4,180
3,983
3,983
3,820
5,094
5,018
4,940
4,823
4,663
33.168
33,127
33,149
33,130
33.169
1,590
1,534
1,483
1,524
1,577
21,783
20,672
20,536
20,511
20,460
25,460
25,954
26,071
26,230
25,807
5,528
5,911
6,265
6,374
6,006
4,411
4,577
4,650
4,684
4,673
12,068
11,973
11,741
11,765
11,741
3,453
3,493
3,415
3,407
3,387
Jan.
6*
9*
13*
1974
55,181
55,193
55,483
55,554
55,618
22*
30*
New York City
1973
722
729
735
749
733
4,086
3,689
3,796
3,771
3,656
4,701
4,915
4,960
4,940
5,137
1,260
1,473
1,592
1,545
1,669
704
724
729
780
789
2,560
2,589
2,480
2,389
2,442
177
129
159
226
237
Jan.
Dec.
5,015
5,032
5,042
5,069
5,096
582
539
513
484
788
1,576
1,561
1,513
1,515
1,561
2,133
2,127
2,130
2,140
2,151
6,287
6,332
6,358
6,343
1,698
1,667
1,735
1,705
2,085
2,188
2,304
2,359
2,446
2,449
2,466
2,480
701
763
768
762
4,484
4,489
4,681
4,584
5,869
6,081
5,614
5,588
2,162
2,489
2,120
2,095
783
712
615
565
1,769
1,703
1,678
1,768
1,155
1,177
1,201
1,160
6,372
6,386
6,413
6,393
6,395
1,673
1,626
1,540
1,545
1,425
2,163
2,195
2,137
2,043
1,906
2,491
2,495
2,497
2.484
2.485
744
742
734
746
842
5,041
4,484
4,487
4,590
4,376
5,167
5,610
5,443
5,713
5,241
1,682
2,083
2,157
2,360
2,016
614
663
656
676
1,674
1,701
1,554
1,576
1,542
1,197
1,163
1,076
1,101
1,067
3
10
17
24
31
5
12
19
26
1974
616
Jan.
2p
9*
16*
23*
30*
Outside
New York City
1973
40,969
41,078
41,194
41,269
41,368
1,829
1,890
1,820
1,831
1,893
1,691
1,635
1,540
1,532
1,611
26,002
25,996
25,984
26,030
26,119
433
419
415
430
454
14,840
14,544
14,445
14,411
14,540
24,432
24,024
23,952
23,529
23,789
5,326
4,917
4,842
4,638
4,846
3,768
3,841
3,864
3,766
3,885
12,975
12,852
12,846
12,766
12,690
2,363
2,414
2,400
2,359
2,368
Jan.
48,186
48,391
48,536
48,590
2,289
2,325
2,286
2,317
2,593
2,695
2,795
2,807
30,145
30.249
30,372
30,462
726
775
821
818
15.722
15,860
16,214
16,426
20,105
20,120
19,827
19,939
3,914
3,963
3,644
3,684
3,250
3,462
3,398
3,544
10,722
10,513
10,521
10,460
2,219
2,182
2,264
2,251
Dec.
3
10
17
24
31
5
12
19
26
1974
48,809
48,807
49,070
49,161
49,223
2,323
2,554
2,443
2,438
2,395
2.931
2,823
2,803
2,780
2,757
For notes see p. A-28.
30,677
30,632
30.652
30,646
30,684
846
792
749
778
735
16,742
16,188
16,049
15,921
16,084
20,293
20,344
20,628
20,517
20,566
3,846
3,828
4,108
4,014
3,990
3,797
3,914
3,994
4,008
4,057
10,394
10,272
10,187
10,189
10,199
2,256
2,330
2,339
2,306
2,320
Jan.
2*
9v
16*
23*
30*
A 26
WEEKLY REPORTING BANKS • FEBRUARY 1974
ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued
(In millions of dollars)
Investments (cont.)
Other securities
Wednesday
Total
Obligations
of State
and
political
subdivisions
Tax
warrants3
All
other
Other bonds,
corp. stock.
and
securities
Certif.
of
partici-4
pation
Cash
items
in
process
of
collection
Reserves
with
F.R.
Banks
Currency
and
coin
Balances
with
domestic
banks
Investments
in subsidiaries not
consolidated
Other
assets
Total
assets/
total
liabilities
All
other5
Large banks—
Total
1973
Jan.
3
10
17
24
31
56,013
55,855
55,350
55,220
55,417
9,252
9,084
8,969
8,860
8,951
37,925
38,073
37,751
37,659
37,816
1,742
1,738
1,745
1,763
1,770
7,094
6,960
6,885
6,938
6,880
34,668
28,481
30,353
29,067
30,863
21,587
19,574
21,415
21,611
20,055
4,377
4,280
4,144
4,145
3,981
10,459
9.811
9,098
9,167
9,658
1,108
1,106
1,134
1,139
1,143
17,662
17,359
17,181
17,257
17,805
417,503
403,743
404,996
401,642
407,111
Dec.
5
12
19
26
59,032
60,462
60,301
60,158
7,152
7,603
7,385
7,405
39,411
39,999
40,121
39,940
2,278
2,341
2,327
2,351
10,191
10,519
10,468
10,462
32,576
34,479
34,915
29,771
22,285
20,303
24,720
18,052
4,064
4,601
4,538
4,846
11,865
14,083
12,696
7,532
1,367
1,364
1,381
1,396
20,773
20,553
20,885
21,139
456,887
461,407
467,837
457,302
Jan.
2p
9v
16*;;;!!!!!!!!!!!
23 p
30 p
61,521
61,606
61,067
61,005
61,234
7,767
7,790
7,459
7,287
7,470
40,080
40,231
40,099
40,174
40,286
2,431
2,400
2,374
2,370
2,362
11,243
11,185
11,135
11,174
11,116
39,584
32,417
34,684
29,978
30,139
25,685
22,631
25,158
24,096
24,181
5,030
4,683
4,529
4,563
4,499
12,455
12,221
12,341
11,940
11,812
1,435
1,439
1,440
1,440
1,443
22,295
20,573
20,285
20,080
20,420
486,157
467,595
470,720
461,318
462,042
9,732
9,566
9,355
9,249
9,286
2,867
2,763
2,749
2,660
2,653
5,289
5,246
5,062
5,053
5,040
547
538
539
542
538
1,029
1,019
1,005
994
1,055
10,071
9,441
10,323
11,447
11,929
5,966
5,106
5,606
5,417
5,640
502
490
484
472
475
3,526
3,935
3,218
3,977
4,012
545
548
583
582
584
5,369
5,137
5,136
5,154
5,281
94,623
91,962
92,616
93,703
96,351
9.987
10,592
10,583
10,458
2,214
2,392
2,266
2,264
5,114
5,473
5,622
5,526
588
608
590
599
2,071
2,119
2,105
2,069
10,872
12,511
11,992
7,613
6,024
5,106
7,053
3,805
516
533
517
546
5,306
7,713
5,863
1,512
664
667
666
670
5,991 108,759
5,942 113,104
6,123 113,295
6,118 103,513
10,884
10,836
10,580
10,346
10,350
2,712
2,636
2,439
2,185
2,218
5,250
5,280
5,251
5,293
5,325
606
602
592
579
580
2,316
2,318
2,298
2,289
2,227
12,856
11,559
11,861
11,064
11,824
8,834
6,326
7,007
7,086
6,846
565
540
524
508
511
5,276
5,806
6,433
6,094
6,198
667
669
670
668
670
6,695 117,293
5,723 111,827
5,695 112,672
5,449 110,710
5,777 110,875
1974
New York City
1973
Jan.
3
10
17
24
31
Dec.
5
12
19
26
1974
Jan.
2p
9p
16*
23*
30*
Outside
New York City
1973
Jan.
3
10
17
24
31
46,281
46,289
45,995
45.971
46,131
6,385
6,321
6,220
6,200
6,298
32,636
32,827
32,689
32,606
32,776
1,195
1,200
1,206
1,221
1,232
6,065
5,941
5,880
5,944
5,825
24,597
19,040
20,030
17,620
18,934
15,621
14,468
15,809
16,194
14,415
3,875
3,790
3,660
3,673
3,506
6,933
5,876
5,880
5,190
5,646
563
558
551
557
559
12,293
12,222
12,045
12,103
12,524
322,880
311,781
312,380
307,939
310,760
Dec.
5
12
19
26
49,045
49,870
49,718
49,700
4,938
5,211
5,119
5,141
34,297
34,526
34,499
34,414
1,690
1,733
1,737
1,752
8,120
8,400
8,363
8,393
21,704
21,968
22,923
22,158
16,261
15,197
17,667
14,247
3,548
4,068
4,021
4,300
6,559
6,370
6,833
6,020
703
697
715
726
14,782
14,611
14,762
15,021
348,128
348,303
354,542
353,789
50,637
50,770
50,487
50,659
50,884
5,055
5,154
5,020
5,102
5,252
34,830
34,951
34,848
34,881
34.961
1,825
1,798
1,782
1,791
1,782
8,927
8,867
8,837
8,885
8,889
26,728
20,858
22,823
18,914
18,315
16,851
16,305
18,151
17,010
17,335
4,465
4,143
4,005
4,055
3,988
7,179
6,415
5,908
5,846
5,614
768
770
770
772
773
15,600
14,850
14,590
14,631
14,643
368,864
355,768
358,048
350,608
351,167
1974
Jan.
2p
9p
16P
23*
30*
For notes see p. A-28.
FEBRUARY 1974 • WEEKLY REPORTING BANKS
A 27
ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued
(In millions of dollars)
Deposits
Time and savings
Demand
Domestic
interbank
Total
IPC
States
and
political
subdivisions
U.S.
Govt.
Commercial
IPC
Foreign
ComMutual
Govts., mersavetc. 2
cial
ings
banks
Certified
and
officers'
checks
Total6
Savings
Other
States
and
political
subdivisions
Domestic
interbank
Wednesday
Foreign
govts. 2
Large banksTotal
1973
169,768
154,963
156,747
151,981
156,909
121,308
112,951
114,433
108,327
110,248
7,221
6,833
6,784
6,381
7,180
6,469
3,501
3,388
5,678
6,289
22,412
20,286
20,412
18,979
21,992
984
1,009
894
768
839
963
824
782
936
875
3,456
3,289
3,251
3,154
3,156
6,955
6,270
6,803
7,758
6,330
160,661
161,603
161,658
162,535
162,936
58,572
58,515
58,373
58,312
58,186
72,334
72,601
72,915
73,681
74,310
19,756
20,516
20,478
20,601
20,332
2,953
2,829
2,770
2,811
2,794
6,386
6,508
6,474
6,498
6,685
159,314
163,856
167,002
161,824
113,193
115,463
116,870
121,364
6,406
6,416
6,390
6,714
2,449
1,503
5,600
5,152
23,532
25,090
23,278
16,767
683
623
670
639
1,164
1,246
1,163
1,024
4,155
4,151
4,180
4,670
7,732
9,364
8,851
5,494
186,071
187,609
187,036
188,273
56,383
56,304
56,241
56,305
93,822
94,678
93,738
94,858
21,617
22,250
22,769
22,738
5,690
5,521
5,538
5,643
7,973
8,302
8,319
8,295
184,565
163,261
165,559
156,027
157,996
128,207
115,404
117,001
109,349
109,099
7,352
6,653
6,463
6,032
6,236
7,164
3,121
3,877
4,468
5,620
25,286
23,953
23,598
22,783
22,759
804
893
805
668
690
1,156
1,077
1,062
994
1,193
4,978
4,461
4,338
4,155
4,642
9,618
7,699
8,415
7,578
7,757
189,646
190,965
191,410
192,745
193,271
57,087
57,064
56,955
56,918
56,873
95,405
96,535
96,980
98,307
98,843
22,833
23,441
23,503
23,602
23,634
5,551
5,359
5,381
5.287
5,149
8,311
8,123
8,102
8,081
8 153
3
10
17
24
31
Dec.
5
12
19
26
1974
2*
9v
16"
23 *
30*
New York City
1973
43,814
40,137
41,574
41,878
43,907
26,795
24,138
24,983
24,185
24,973
428
370
539
350
574
1,193 8,923
607 8,685
544 8,834
1,085 8,294
1,187 11,030
569
576
498
409
463
788
668
648
797
732
2,240
2,334
2,354
2,290
2,285
2,878
2,759
3,174
4,468
2,663
27,210
27,699
27,667
27,798
28,112
5,627
5,618
5,594
5,572
5,549
14,648
14,819
14,982
15,108
15,508
2,025
2,399
2,302
2,301
2,085
1,653
1,549
1,473
1,499
1,488
3,118
3,184
3,188
3,220
3,388
44,601
48,456
47,368
40,692
23,794
24,722
24,812
27,034
443
338
360
513
558 11,283
206 13,305
1,510 11,399
1,176 5,144
367
308
368
350
966
1,059
973
825
3,158
3,084
3,060
3,554
4,032
5,434
4,886
2,096
34,682
34,995
34,445
34,475
4,965
4,958
4,949
4,958
19,599
19,993
19,336
19,407
2,156
2,110
2,210
2,131
3,936
3,736
3,733
3,722
3,933
4,104
4,144
4,179
51,771
46,187
47,047
44,802
46,677
28,419
24,669
25,100
23,839
23,909
581
476
376
346
429
1,666
527
707
781
1,082
10,969
12,028
11,502
11,452
11,789
454
521
456
362
388
951
892
874
793
1,001
3,801
3,286
3,218
3,088
3,613
4,930
3,788
4,814
4,141
4,466
34,400
35,084
35,114
35,520
35,522
5,008
5,012
5,020
5,017
5,013
19,560
20,160
20,291
20,916
21,122
2,019
2,297
2,206
1,988
1,900
3,513
3,363
3,351
3,358
3,284
4,214
4,168
4,159
4,157
4,120
3
10
17
24
31
Dec.
5
12
.19
.26
1974
2p
9P
16*
23»p
30
Outside
New York City
1973
125,954
114,826
115,173
110,103
113,002
94,513
88,813
89,450
84,142
85,275
6,793
6,463
6,245
6,031
6,606
5,276 13,489
2,894 11,601
2,844 11,578
4,593 10,685
5,102 10,962
415
433
396
359
376
175
156
134
139
143
1,216
955
897
864
871
4,077
3,511
3,629
3,290
3,667
133,451
133,904
133,991
134,737
134,824
52,945
52,897
52,779
52,740
52,637
57,686
57,782
57,933
58,573
58,802
17,731
18,117
18,176
18,300
18,247
1,300
1,280
1,297
1,312
1,306
3,268
3,324
3,286
3,278
3,297
3
10
, 17
24
31
114,713
115,400
119,634
121,132
89,399
90,741
92,058
94,330
5,963
6,078
6,030
6,201
1,891
1,297
4,090
3,976
12,249
11,785
11,879
11,623
316
315
302
289
198
187
190
199
997
1,067
1,120
1,116
3,700
3,930
3,965
3,398
151,389
152,614
152,591
153,798
51,418
51,346
51,292
51,347
74,223
74,685
74,402
75,451
19,461
20,140
20,559
20,607
1,754
1,785
1,805
1,921
4,040
4,198
4,175
4,116
5
12
19
.26
132,794
117,074
118,512
111,225
111,319
99,788
90,735
91,901
85,510
85,190
6,771
6,177
6,087
5,686
5,807
5,498
2,594
3,170
3,687
4,538
14,317
11,925
12,096
11,331
10,970
350
372
349
306
302
205
185
188
201
192
1,177
1,175
1,120
1,067
1,029
4,688
3,911
3,601
3,437
3,291
155,246
155,881
156,296
157,225
157,749
52,079
52,052
51,935
51,901
51,860
75,845
76,375
76,689
77,391
77,721
20,814
21,144
21,297
21,614
21,734
2,038
1,996
2,030
1,929
1,865
4,097
3,955
3,943
3,924
4,033
1974
For notes see p. A-21.
2*
9P
16*
23*
30*
A 28
WEEKLY REPORTING BANKS • FEBRUARY 1974
ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued
(In millions of dollars)
Wednesday
Federal
funds
purchased,
etc. 7
F.R.
Banks
Others
Memoranda
Reserves
for
Borrowings
from—
Other
liabilities,
etc. 8
Loans
Total
capital
accounts
Securities
Total
loans
(gross)
adjusted 9
Large negotiable
Total
time CD's
loans
included in time
and
Deand savings deposits n
mand
investments deposits
(gross)
adIssued Issued
justed 10 Total
to
to
adjusted 9
IPC's others
Gross
liabilities of
banks
to
their
foreign
branches
Large banks—
Total
1973
Jan.
Dec.
3
10
17
24
31
35,849
35,226
34,664
33.621
33,860
767
734
932
1,789
1,017
2,262
2,359
2,516
2,670
2,675
14,481
14,723
14.560
15,083
15,554
4,278
4,323
4,337
4,338
4,370
70
70
73
70
70
29,367
29,742
29.509
29,555
29,720
226,016
224.281
224,392
223,118
225,583
16,024
16,634
16,559
16,657
16,594
1,121
1,625
1,419
1,801
1,413
5
50,823
48,232
52,215
47,759
370
1,350
1,267
274
5,818
5,795
5,588
5,274
18,227
18,344
18,596
17,759
4,615
4,585
4,547
4,513
65
65
66
66
31.584
31,571
31,520
31,560
261,194 346,200 100,757 63,429 42,194 21,235
263.117 349,780 102,784 64,442 43,044 21,398
265.325 351,067 103,209 63.366 41,999 21,367
270,42.6 356,111 110,134 64,391 42,987 21,404
1,911
1,938
2,382
1,703
51,993
52,551
53,193
51,138
50,587
754
1,941
1,083
2,408
1,316
5,154
5,276
5,504
5,236
5,310
17,320
16,831
17,185
16,860
16,651
4,702
4,885
4,906
4,919
4,924
65
69
74
74
83
31,958
31,816
31.806
31.911
31,904
270,670
267,992
267,135
265,391
264,469
357,651
355,552
354,273
352,626
351,510
112,531 64,626 43,237 21,389
103,770 65,575 44,121 21,454
103,400 65,637 44,361 2.1,276
98,798 66,458 45,298 21,160
99,478 66,892 45,718 21,174
1,158
1,322
2,039
1,989
1,672
3
10
17
24
31
8,748
9,119
8,346
8,035
8,439
180
508
588
777
912
1,107
5,388
5,634
5,487
5,846
5,950
1,224
1,236
1,239
1,238
1,250
7.551
7; 549
7,526
7,521
7,586
52,128
51,455
51.545
50,820
52,247
66,561
65,936
65,860
65,009
66,670
23,627
21,404
21,873
21,052
19,761
14,496
15,068
15,043
15,127
15,314
9,512
9,729
9,831
9,898
10,175
4,984
5,339
5,212
5,229
5,139
784
1,160
1,133
1,459
1,122
5
12
19
26
11,544
10,715
13,311
10,900
2,819
2,950
2,834
2,536
5,706
5,870
5,879
5,571
1,321
1,306
1,289
1,273
8.086
8; 097
8,079
8,066
60,434
61,158
61,826
63,335
76,290
77.831
78,023
79,381
21,888
22,434
22,467
26,759
20,510
20.871
20,377
20,436
12,827
13,184
12,585
12,708
7,683
7,687
7,792
7,728
1,242
1,220
1,569
1,316
5,521
5,119
5,557
5,387
5,252
1,281
1,311
1,331
1,340
1,341
8.122
8.108
8,088
8,148
j 8,152
62,920
62,045
61,585
60,895
60,403
78,971
78.491
77,608
76,954
75,994
26,280
22.073
22,977
21,505
21,982
20,307
20,987
20,982
21,346
21,341
12,848
13,433
13.559
14,065
14,247
7,459
7,554
7,423
7,281
7,094
800
942
1,578
1,484
1,226
12
19
26
311,162
309,075
308,654
306,807
309,926
106,219
102,695
102,594
98,257
97,765
43,682
44,595
44,607
45,139
45,540
27,658
27,961
28,048
28,482
28,946
1974
Jan.
2*
9p
16 *
23p.
30 p
New York City
1973
Jan.
Dec.
475
715
90
1974
Jan.
2p
9p
16*
23 p
30*
13,606
12,574
12,972
11,767
11,447
1,232
105
2,437
2,503
2,503
2,514
2,379
27,101
26,107
26,318
25,586
25,421
587
734
932
1,314
1,017
1,754
1,771
1,739
1,758
1,568
9,093
9,089
9,073
9,237
9,604
3,054
3,087
3,098
3,100
3,120
70
70
73
70
70
21,816
22,193
21,983
22,034
22,134
173,888
172,826
172,847
172,298
173,336
244,601
243,139
242,794
241,798
243,256
82,592
81,291
80,721
77,205
78,004
29,186
29,527
29,564
30,012
30,226
18,146
18,232
18,217
18.584
18,771
11,040
11,295
11,347
11,428
11,455
337
465
286
342
291
39,279
37,517
38,904
36,859
370
635
1,177
274
2,999
2,845
2,754
2,738
12,521
12,474
12,717
3,294
3,279
3,258
3,240
65
65
66
66
23,498
23,474
23,441
23,494
200,760
201,959
203,499
207,091
269,910
271,949
273,044
276,730
78,869
80,350
80,742
83,375
42,919 29,367
43,571 29,860
42,989 29,414
43,955 30,279
13,552
13,711
13,575
13,676
669
718
813
387
86.251
81,697
80,423
77,293
77,496
44.319
44,588
44,655
45,112
45,551
13,930
13,900
13.853
13,879
14,080
358
380
461
505
446
155
941
60
j
Outside
New York City
1973
Jan.
3
10
17
24
31
Dec.
5
12
19
26
12,188
I
1974
Jan.
2p
9P
16*
23*
30*
1
38.387
39.977
40,221
39,371
39.140
599
1.000
1,023
1,176
1,211
2,717
2,773
3,001
2,722
2,931
11,799
11,712
11,628
11.473
11.399
3,421
3,574
3,575
3,579
3,583
Includes securities purchased under agreements to resell.
Includes official institutions and so forth.
3 Includes short-term notes and bills.
4
Federal agencies only.
5 Includes corporate stock.
6
Includes U.S. Govt, and foreign bank deposits, not shown separately.
7
Includes securities sold under agreements to repurchase.
2
23,836
23,708
23,718
23,763
23,752
65
69
74
74
83
8
207,750
205,947
205,550
204,496
204,066
278,680
277,061
276,665
275,672
275,516
30,389
30,688
30,802
31.233
31,471
Includes minority interest in consolidated subsidiaries.
Exclusive of loans and Federal funds transactions with domestic commercial banks.
10
All demand deposits except U.S. Govt, and domestic commercial
banks, less cash items in process of collection.
11
Certificates of deposit issued in denominations of $100,000 or more.
9
FEBRUARY 1974 • BUSINESS LOANS OF BANKS
A 29
COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS
(In millions of dollars)
Net change during—
Outstanding
Jan.
23
Jan.
16
Jan.
9
Jan.
1,866
6,742
2,508
2,346
3,646
1,840
6,628
2,516
2,350
3,671
1,839
6,844
2,501
2,383
3,715
1,829
6,724
2,439
2,350
3,722
1,786
6,808
2,407
2,337
3,722
57
71
-12
13
-57
-148
440
156
7
-32
3,992
3,224
1,278
2,441
2,114
4,057
3,241
1,275
2,457
2,163
4,057
3,279
1,293
2,426
2,148
4,082
3,277
1,317
2,392
2,160
4,090
3,222
1,256
2,462
2,143
-165
5
-113
-75
-31
269
-137
294
48
-25
4,022
2,261
5,457
5,801
5,975
2,156
5,700
5,494
10,819
8,293
1,219
3,869
2,151
5,443
5,909
5,989
2,150
5,896
5,477
10,897
8,325
1,179
3,905
2,037
5,423
5,883
6,050
2,192
5,908
5,478
10,910
8,566
1,183
3,916
1,919
5,444
5,682
6,118
2,234
6,093
5 >538
ii;120
8,462
1,264
3,941
1,858
5,510
5,.
6,040
2,265
6,050
5,552
11,186
8,779
1,269
218
419
42
-272
11
130
-177
-59
-237
22
-55
4,161
91,515
4,182
4,165
92,185
4,092
4,058
92,140 92,664
Total commercial and industrial loans
*109.448 109,632 110,205 110,193 110,787
of large commercial banks
Jan.
30
Durable goods manufacturing:
Primary metals
Machinery
Transportation equipment
Other fabricated metal p r o d u c t s . . .
Other durable goods
Nondurable goods manufacturing:
Food, liquor, and tobacco
Textiles, apparel, and leather
Petroleum refining
Chemicals and rubber
Other nondurable goods
Mining, including crude petroleum
and natural gas
Trade: Commodity dealers
Other wholesale
Retail
Transportation
Communication
Other public utilities
Construction
Services
All other domestic loans
Bankers' acceptances
Foreign commercial and industrial
loans
Total classified loans
91,665
2
Nov.
Jan.
- 6
99
94
-394
161
138
352
-26
351
408
62
1973
1973
1973
1974
Industry
IV
2nd
half
1st
half
18
479
272
56
290
-102
-120
-247
136
90
15
-363
645
32
267
323
-229
615
362
71
-73
20
1,453
64
503
872
211
-119
-84
-91
-15
340
-440
184
-198
-65
393
235
19
48
156
-194
275
-7
63
157
733
-205
203
-150
91
-23
730
211
809
360
-79
318
-27
64
-233
630
151
-184
14
-78
596
-251
565
302
199
77
-42
43
165
66
-13
734
21
362
380
-322
-603
183
457
283
79
670
624
455
782
76
-156
588
194
-19
80
-91
1,330
-39
927
682
-123
331
-540
567
1,092
294
258
961
928
997
1,754
-154
4,447
-361
4,430
554
12,041
4,958
13,760
-21
119
3
18
-21
-119
328
-69
190
28
-21
17
-177
2,128
60
553
23
1,186
-384
3,244
-373
2,410
712
1,588
3,370
-18
See NOTE to table below.
"TERM" COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS
(In millions of dollars)
Net change during—
Outstanding
1973
1973
1973
1974
Industry
Jan.
30
Dec.
26
Nov.
28
Oct.
31
Sept.
26
Aug.
29
July
25
June
27
May
30
III
IV
II
I
2nd
half
I
Durable goods manufacturing:
Primary metals
Machinery
Transportation equipment.
Other fabricated metal
products
Other durable goods
Nondurable goods manufacturing :
Food, liquor, and tobacco.
Textiles,
apparel,
and
leather
Petroleum refining
Chemicals and rubber
Other nondurable goods. .
Mining, including crude petroleum and natural gas.
Trade: Commodity dealers..
Other wholesale
Retail
Transportation
Communication
Other public utilities
Construction
Services
All other domestic loans
Foreign commercial and industrial loans
Total loans
1,093
2,952
1,319
2,i
1,240
2,729
1,251
1,260
2,734
1,233
1,311
2,680
1,261
1,294
2,638
1,226
1,293
2,664
1,193
1,328
2,641
1,189
1,314
2,560
1,280
1,168
-205
188
19
-17
39
72
-7
328
15
67
159
-31
-222
227
91
929
1,725
885
1,758
902
1,741
891
1,782
863
1,777
846
1,730
861
1,720
869
1,690
833
1,592
22
-19
-6
87
84
170
65
281
16
68
1,513
1,491
1,466
1,465
1,472
1,405
1,410
1,393
1,372
19
79
43
116
98
1.028
'920
1,571
1,053
1,001
933
1,561
1,071
1,036
839
1,509
1,058
1,030
883
1,535
1,076
1,026
920
1,553
1,092
1,021
925
1,494
1,069
1,003
947
1,486
1,050
969
876
1,481
1,063
942
885
1,441
1,063
-25
13
8
— 21
57
44
72
29
77
34
2
-37
169
144
326
206
32
57
80
8
3,153
137
1,267
2,247
4,315
948
3,299
1,942
4,921
2,690
2,960
127
1,191
2,204
4,307
861
3,253
1,904
5,029
2,603
2,950
135
1,171
2,226
4,199
828
3,114
1,935
4,899
2,616
2,958
120
1,224
2,179
4,214
819
2,853
1,952
4,752
2,552
2,990
3,022
178
1,178
2,145
4,272
857
2,829
1,992
4,701
2,585
2,921
115
1,149
2,136
4,287
835
2,671
2,000
4,646
2,458
2,066
4,255
814
2,548
2,009
4,568
2,389
2,846
123
1,066
2,006
4,305
785
2,409
1,896
4,562
2,201
2,908
139
1,051
1,979
4,161
760
2,328
1,852
4,402
2,180
-30
11
13
59
35
4
424
-88
328
18
144
-7
112
139
-33
72
420
96
139
384
-26
-27
11
183
71
39
175
187
223
330
187
29
161
231
54
64
259
151
313
274
114
4
125
198
2
76
844
8
467
402
2,467
2,334
2,306
2,308
2,186
2,292
2,497
2,585
2,647
148
-399
18
201
-251
37,577
921
1,523
1,893
3,426
2,444
1,106
40,727
116
40,150 39,820 39,806
NOTE.—About 160 weekly reporting banks are included in this series;
these banks classify, by industry, commercial and industrial loans amounting to about 90 per cent of such loans held by all weekly reporting banks
and about 70 per cent of those held by all commercial banks.
For description of series see article "Revised Series on Commercial and
Industrial Loans by Industry," Feb. 1967 BULLETIN, p. 209.
39,158
1,118
39,091
38,283
Commercial and industrial "term" loans are all outstanding loans with
an original maturity of more than 1 year and all outstanding loans granted
under a formal agreement—revolving credit or standby—on which the
original maturity of the commitment was in excess of 1 year.
A 30
DEMAND DEPOSIT OWNERSHIP • FEBRUARY 1974
GROSS DEMAND DEPOSITS OF INDIVIDUALS, PARTNERSHIPS, AND CORPORATIONS1
(In billions of dollars)
Type of holdei
Class of bank, and quarter or month
Total
deposits,
IPC
Financial
business
Nonfinancial
business
Consumer
Foreign
All
other
1970—Sept
17.0
17.3
88.0
92.7
51.4
53.6
1.4
1.3
10.0
10.3
167.9
175.1
1971
Sept
Dec
18.3
18.1
17.9
18.5
86.3
89.6
91.5
98.4
54.4
56.2
57.5
58.6
1.4
1.3
1.2
1.3
10.5
10.5
9.7
10.7
170.9
175.8
177.9
187.5
1972
June
Sept
Dec
17.9
18.0
18.9
97.6
101.5
109.9
60.5
63.1
65.4
1.4
1.4
1.5
11.0
11.4
12.3
188.4
195.4
208.0
1973
Mar
June
Sept
Dec.?
18.6
18.6
18.8
19.1
102.8
106.6
108.3
116.2
65.1
67.3
69.1
70.1
1.7
2.0
2.1
2.4
11.8
11.8
11.9
12.4
200.0
206.3
210.3
220.1
All commercial banks:
Mar
Weekly reporting banks:
Dec
14.4
58.6
24.6
1.2
5.9
104.8
1972—Nov
Dec
14.5
14.7
60.5
64.4
26.7
27.1
1.3
1.4
6.2
6.6
109.2
114.3
1973—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
15.0
14.3
14.4
14.3
13.8
14.2
14.8
14.3
14.5
15.0
14.8
14.9
63.1
60.3
59.0
59.4
59.1
60.8
61.1
59.5
60.6
61.7
62.9
66.2
27.8
26.3
26.5
28.6
26.9
27.1
27.3
27.3
27.2
27.3
27.5
28.0
1.4
1.6
1.6
1.8
1.9
1.9
1.9
1.9
1.9
2.0
2.1
2.2
6.8
6.5
6.4
6.4
6.4
6.3
6.6
6.1
6.5
6.6
6.7
6.8
114.1
109.0
107.9
110.4
108.0
110.2
111.7
109.1
110.8
112.5
113.9
118.1
1971
Dec.?
1
Including cash items in process of collection.
NOTE.—Daily-average balances maintained during month as estimated
from reports supplied by a sample of commercial banks. For a detailed
description of the type of depositor in each category, see June 1971
BULLETIN, p. 466.
DEPOSITS ACCUMULATED FOR PAYMENT OF PERSONAL LOANS
(In millions of dollars)
Class of
bank
All commercial....
Insured
National member
State member....
All member
Dec. 31,
1971
680
677
387
95
482
Dec. 31,
1972
559
554
311
71
381
June 30,
1973
538
533
304
71
375
Oct. 17,
1973
505
281
70
350
i Beginning Nov. 9,1972, designation of banks as reserve city banks for
reserve-requirement purposes has been based on size of bank (net demand
deposits of more than $400 million), as described in the BULLETIN for
July 1972, p. 626. Categories shown here as "Other large" and "All other
member" parallel the previous "Reserve City" (other than in New York
City and the City of Chicago) and "Country" categories, respectively
(hence the series are continuous over time).
Class of
bank
All member—Cont. 1
Other large banks
All other member i
All nonmember
Insured
Noninsured
Dec. 31,
1971
112
371
197
195
2
Dec. 31,
1972
69
313
177
172
5
June 30,
1973
63
312
163
158
5
Oct. 17,
1973
59
291
155
NOTE.—These hypothecated deposits are excluded from "Time deposits"
and "Loans" at commercial banks, as shown in the tables on pp. A-18,
A-19, and A-24-A-28 (consumer instalment loans), and in the table at the
bottom of p. A-17. These changes resulted from a change in Federal
Reserve regulations. See June 1966 BULLETIN, p. 808.
These deposits have not been deducted from "Time deposits" and
"Loans" for commercial banks as shown on pp. A-20 and A-21 and on
pp. A-22 and A-23 (IPC only for time deposits).
A 31
FEBRUARY 1974 o LOAN SALES BY BANKS; OPEN MARKET PAPER
LOANS SOLD OUTRIGHT BY COMMERCIAL BANKS
(Amounts outstanding; in millions of dollars)
To own subsidiaries, foreign branches,
holding companies, and other affiliates
To all others except banks
By type of loan
By type of loan
Total
Total
1973—Oct.
Nov.
Dec.
Commercial
and
industrial
Commercial
and
industrial
All other
All other
3.
10.
17.
24.
31.
4,723
4,606
4,538
4,518
4,645
2,893
2,784
2,782
2,825
2,857
1,830
1,822
1,756
1,693
1,788
1,760
1,806
1,788
1,774
1,768
356
351
351
338
333
1,404
1,455
1,437
1,436
1,435
7.
14.
21.
28.
4,317
4,315
4,336
4,342
2,591
" 2,540
2,656
2,655
1,726
1,775
1,680
1,687
1,772
1,779
1,783
1,809
343
333
331
354
1,429
1,446
1,452
1,455
5.
19.
26.
4,407
4,393
4,297
4,300
2,669
2,620
2,580
2,603
1,738
1,773
1,717
1,697
1,808
1,790
1,790
1,792
346
337
332
331
1,462
1,453
1,458
1,461
16.
23.
30.
4,470
4,487
4,503
4,301
4,439
2,607
2,700
2,691
2,508
2,623
1,863
1,787
1,812
1,793
1,816
1,799
1.790
1.791
1,790
1,808
332
325
332
340
342
1,467
1.465
1,459
1,450
1.466
12.
1974—Jan.
NOTE.—Amounts sold under repurchase agreement are excluded. Figures include small amounts sold
by banks other than large weekly reporting banks.
COMMERCIAL AND FINANCE COMPANY PAPER AND BANKERS' ACCEPTANCES OUTSTANDING
(In millions of dollars)
Dollar acceptances
Commercial and finance
company paper
Based on—
Held b y Placed through
dealers
End of period
Placed
directly
Bank
related
196 5
196 6
196 7
196 8
196 9
197 0
197 1
9,300
13,645
17,085
21,173
32,600
33,071
32,126
1972—Dec.
34,721
1973—Jan..
Feb.
Mar.
Apr.
May
June
July.
Aug.
Sept.
Oct..
Nov.
Dec.
35,727
35,196
34,052
34,404
35,672
35,786
35,463
37,149
37,641
41,602
42,945
41,073
Accepting banks
Other i
1,216
409
495
1,903
3,089
4,901
7,201
10,601
12,262
10,923
930
11,242
911
956
993
1,044
1,148
1,173
1,207
1,350
1,353
1,319
1,317
1,311
11,641
9,968
8,366
8,290
8,288
8,316
7,954
7,676
8,845
11,727
12,824
11,751
Bank
related
Other 2
Others
Total
Own
bills
Bills
bought
Own
acct.
144
191
156
109
146
250
254
1,837
2,022
2,090
2,717
3,674
4,057
3,894
1,423
1,889
2,601
2,834
179
3,907
3,841
3,934
4,143
4,165
4,225
4,591
4,810
5,159
5,379
5,499
5,252
5,406
1,223
1,198
1,906
1,544
1,567
2,694
3,480
1,094
983
1,447
1,344
1,318
1,960
2,689
129
215
459
3,078
1,940
1,478
3,392
3,603
4,317
4,428
5,451
7,058
7,889
249
735
791
187
193
164
58
64
57
261
1,707
20,842
6,898
2,706
2,006
700
106
1,795
2,160
2,463
2,767
2,922
3,110
3,307
3,758
3,878
3,549
3,655
3,570
21,380
22,112
22,230
22,303
23,314
23,187
22,995
24,365
23,565
25,007
25,149
24,441
6,564
6,734
6,859
6,713
6,888
7,237
7,693
7,734
8,170
8,237
8,493
8,892
2,384
2,328
2,269
2,068
2,197
2,185
2,254
1,968
2,099
2,042
2,566
2,837
Imports
into
United
States
Foreign
corr.
7,397
10,556
12,184
13,972
17,705
18,460
19,230
1 As reported by dealers; includes finance company paper as well as
other
commercial paper sold in the open market.
2
As reported by finance companies that place their paper directly with
investors.
F.R. Banks
Total
Total
1,825
1,765
1,777
1,641
1,763
1,746
1,803
1,598
1,629
1,731
2,129
2,318
200
560
563
492
427
433
439
452
370
470
311
437
519
141
233
165
136
83
66
132
84
145
107
71
68
198
239
282
344
384
395
496
522
548
589
604
581
Exports
from
United
States
All
other
974
829
989
952
1,153
1,561
1,546
1,626
1,778
2,241
2,053
2,408
2,895
3,509
2,531
1,909
2,458
2,337
2,311
2,091
1,996
2,009
2,053
2,222
2,268
2,296
2,345
2,320
2,273
1,948
2,113
2,399
2,359
2,509
2,755
2,954
2,945
3,289
3,222
3,340
3,499
2,279
2,310
2,368
2,359
2,371
2,428
2,517
2,520
2,585
2,670
2,833
3,120
792
997
1,086
NOTE.—Back data available from Financial Statistics Division, Federal
Reserve Bank of New York.
A 32
INTEREST RATES • FEBRUARY 1974
PRIME RATE CHARGED BY BANKS
(Per cent per annum)
1969—Jan
Mar. 17
June
7
1970—Mar. 25
Sept. 21
Nov.
8
7%
71/4
7
634
Dec.
1971—Jan.
Feb. 16
Mar. 11
1972—Jan.
8*4
Mar. 13,
23,
27.
6%
61/4
6
534
Apr.
May
Oct. 20
Nov.
Dec.
5i4-5i/ 2
5*4
5*4-6
6
534
434>—4
July
5%--5%
3.
51/4-5 Vi"
Aug. 11.
14
6
514-53/8-
21,
31
5%-5*451/4-
2.
4.
17.
31,
7*4 •
71/2 «-734
734«
July
2
3
9
17
18
23
30
734.-8
734-8.
8-814"
814--81/2
81/4-81/2.
8i/2.
8i/ 2 -8 3 4 .
Aug.
6
7
13
21
22
28
29
834-9.
9.
9-914"
914--91/2
91/291/2-934.
934.
6.
14
18
27
9 34 . - 1 0
10.
934-10.
614.-634
22
24
91/2-934-10.
91/2-934.-10
5*4--5%
51/2-53453/4-
16i
Nov.
5V4m-5Vs
6.
20.
53/4534.-5%
534.-6
534-6.
Dec. 26.
27.
1973—Jan.
4.
Feb.
2.
14.
26.
27.
5^-53/s5y 2
5V4»-5V2
5V4m-5ys~
10.
5*4-
5
5«-5I/ 8
5-51/4-
8
19
25
534
Oct.
5 - - 5 i/g-5 V4
5m
June 12.
26.
1973—June
514-51/2"
5*4-
5«-5%
1.
30.
534.-55/ 8
4,
5,
6.-614
614-
26,
51/4--53/8
Apr. 18
19,
25,
51/4"-53/8
May
29
51/4-53/8-
61/2-634.
63/4.
7
1974—Jan.
14
5*4
5V4"
NOTE.—Beginning Nov. 1971, several banks adopted a floating prime
rate keyed to money market variables. . denotes the predominate prime
rate quoted by commercial banks to large businesses.
6.-6*4
Mar. 19.
5*4
634.-7
7.
4,
7,
24.
25,
Rate
Effective date
25!
4%«-5
Sm
3.
5.
17.
1
4
8
22
29
1972—Sept.
43/8-4^43/443/4.
Feb. 28,
Rate
Effective date
5-51/8-5V4"
434-5-5^45/8-43^-541^-43/4.-5
3,
17.
24,
31
m
51/4
Apr. 2 3 . . . . . . .
May
July 6
Rate
Effective date
Rate
Effective date
29
7«-7I4
91/2-934.99/io
91/2-93/4.98/io
91/4-91/2.9v/io
7-71/4.
Effective Apr. 16, 1973, with the adoption of a two tier or "dual prime
rate," this table shows only the "large-business prime rate," which is the
range of rates charged by commercial banks on short-term loans to large
businesses with the highest credit standing.
RATES ON BUSINESS LOANS OF BANKS
Size of loan (in thousands of dollars)
1-9
All sizes
100-499
10-99
1,000 and over
500-999
Center
Nov.
1973
Aug.
1973
Nov.
1973
Aug.
1973
Nov.
1973
Aug.
1973
Aug.
1973
Nov.
1973
Nov.
1973
Aug.
1973
Nov.
1973
Aug.
1973
Short-term
35 centers
New York City
7 Other Northeast
8 North Central
7 Southeast
8 Southwest
4 West Coast
9.24
9.08
9.49
9.24
9.25
9.16
9.25
10.08
9.90
10.51
10.02
9.96
10.08
10.04
9.80
10.04
10.34
9.02
9.58
9.91
10.23
8.95
8.93
9.30
8.21
8.85
9.10
9.67
10.14
10.28
10.57
9.81
9.82
10.09
10.26
9.25
9.32
9.51
9.02
9.07
9.18
9.48
9.50
9.37
9.95
9.44
9.23
9.34
9.46
10.18
10.01
10.58
10.19
9.97
10.04
10.13
9.31
9.20
9.72
9.28
9.02
9.18
9.33
9.95
9.83
10.32
9.91
9.89
9.97
9.95
9.14
9.03
9.22
9.21
9.48
9.03
9.17
9.34
9. 18
10.35
9.17
9.39
9.54
9.28
10.23
10.21
10.32
10.55
9.75
10.72
10.04
9.32
9.34
10.30
9.42
7.48
10.11
9.10
10.11
10.31
10.00
10.24
10.05
10.64
9.88
9.19
9.25
9.59
9.48
9.14
9.64
8.95
10.54
10.60
9.94
10.25
15.73
10.59
10.73
9.48
9.63
8.68
10.00
11.25
9.71
9.25
10.78
11.12
10.29
11.16
10.96
10.21
10.15
9.94
10.03
10.24
9.63
9.37
10.40
9.80
10.43
10.31
10.86
10.38
10.16
10.28
10.28
1
Revolving credit
35 centers
New York City
7 Other Northeast
8 North Central
7 Southeast
8 Southwest
4 West Coast
10.13
10.30
10.09
10.22
9.22
10.74
9.92
9.22
9.25
9.72
9.44
8.90
9.72
9.00
10.09
9.84
10.36
9.96
9.11
10.46
10.09
9.48
8.97
9.90
9.55
9.57
8.78
9.36
10.18
10.09
10.69
10.17
9.54
10.19
10.21
9.46
9.11
9.98
9.34
9.41
9.34
9.51
10.20
10.33
10.55
9.70
9.83
11.22
10.16
Long-term
35 centers
New York City
7 Other Northeast
8 North Central
7 Southeast
8 Southwest
4 West Coast
10.68
11.05
10.17
10.92
12.33
10.28
10.18
r
9.85
9.96
9.87
9.70
r
9.77
10.12
9.71
10.36
9.69
10.80
10.08
9.10
10.95
9.92
9.43
8.75
9.68
8.60
9.16
10.19
9.97
NOTE.—Beginning Feb. 1971 the Quarterly Survey of Interest Rates on
Business Loans was revised. For description of revised series see pp. 46877 of the June 1971 BULLETIN.
10.45
10.92
10.32
10.40
10.98
10.22
10.29
r
r
9.65
9.69
9.79
9.54
r
9.59
9.61
9.58
10.23
10.45
9.83
10.12
13.07
10.15
9.80
r
9.64
9.27
9.56
9.99
r
9.68
9.76
9.57
FEBRUARY 1974 • INTEREST RATES
A 33
MONEY MARKET RATES
(Per cent per annum)
U.S. Government securities 4
Prime
commercial
paper 1
Finance
CO.
Prime
bankers'
acceptances,
90 days 1
Federal
funds
rate 3
3-month bills 5
6-month bills 5
9-to 12-month issues
4- to 6months
paper
placed
directly,
3- to 6months 2
5.10
5.90
7.83
4.89
5.69
7.16
4.75
5.75
7.61
4.22
5.66
8.22
4.321
5.339
6.677
4.29
5.34
6.67
4.630
5.470
6.853
4.61
5.47
6.86
4.71
5.46
6.79
4.84
5.62
7.06
5.07
5.59
6.85
4.66
8.20
7.72
5.11
4.69
8.15
7.23
4.91
4.52
7.40
7.31
4.85
4.47
8.08
7.17
4,66
4.44
8.74
6.458
4.348
4.071
7.041
6.39
4.33
4.07
7.03
6.562
4.511
4.466
7.178
6.51
4.52
4.49
7.20
6.49
4.67
4.77
7.01
6.90
4.75
4.86
7.30
7.37
5.77
5.85
6.92
5.76
6.17
6.76
7.13
7.26
8.00
9.26
10.26
10.31
9.14
9.11
9.28
5.78
6.22
6.85
7.14
7.27
7.99
9.18
10.21
10.23
8.92
8.94
9.08
5.56
5.97
6.45
6.76
6.85
7.45
8.09
8.90
8.90
7.84
7.94
8.16
5.60
6.14
6.82
6.97
7.15
7.98
9.19
10.18
10.19
9.07
8.73
8.94
5.94
6.58
7.09
7.12
7.84
8.49
10.40
10.50
10.78
10.01
10.03
9.95
5.307
5.558
6.054
6.289
6.348
7.188
8.015
8.672
8.478
7.155
7.866
7.364
5.41
5.60
6.09
6.26
6.36
7.19
8.01
8.67
8.29
7.22
7.83
7.45
5.527
5.749
6.430
6.525
6.615
7.234
8.081
8.700
8.537
7.259
7.823
7.444
5.62
5.83
6.51
6.52
6.62
7.23
8.12
8.65
8.45
7.32
7.96
7.56
5.58
5.93
6.53
6.51
6.63
7.05
7.97
8.32
8.07
7.17
7.40
7.01
5.78
6.07
6.81
6.79
6.83
7.27
8.37
8.82
8.44
7.42
7.66
7.38
6.29
6.61
6.85
6.74
6.78
6.76
7.49
7.75
7.16
6.81
6.96
6.80
8.86
8.66
7.92
8.72
9.65
7.755
7.77
7.627
7.65
7.01
7.46
6.94
6 , ,
13 ,
20 ,
27 , .
9.58
9.47
9.25
8.66
9.38
9.13
9.03
8.56
8.10
8.00
7.80
7.66
9.50
9.28
9.00
8.81
10.72
9.87
10.07
9.98
7.149
7.323
7.188
6.959
7.42
7.14
7.16
7.07
7.584
7.259
7.242
6.951
7.59
7.32
7.24
7.09
7.52
7.26
7.15
6.85
7.66
7.46
7.40
7.26
6.89
6.77
6.80
6.80
3
10. . ,
17 ,
24
8.55
8.88
9.18
9.28
8.28
8.69
9.08
9.09
7.50
7.63
8.10
8.16
8.50
8.75
8.75
8.75
9.90
9.71
10.03
10.23
7.196
8.098
8.636
7.704
7.38
8.12
8.11
7.72
7.263
7.987
8.381
7.805
7.43
8.06
8.30
7.85
6.99
7.42
7.64
7.37
7.32
7.85
8.01
7.50
6.83
7.03
7.16
6.88
8
15
22
29, ,
9.25
9.43
9.35
9.15
9.19
9.10
9.20
9.10
9.00
9.00
8.05
8.25
8.18
8.20
8.00
8.75
9.10
9.15
8.75
8.75
10.09
10.17
10.04
10.18
9.52
7.695
7.358
7.386
7.366
7.346
7.52
7.47
7.51
7.35
7.50
7.679
7.766
7.530
7.164
7.315
7.77
7.94
7.52
7.32
7.46
7.29
7.39
7.01
6.75
6.84
7.36
7.53
7.37
7.22
7.41
6.78
6.89
6.75
6.74
6.83
1974—Jan.
5
12
19
26
9.13
8.85
8.95
8.90
8.88
8.65
8.75
8.68
8.00
7.80
7.90
8.00
8.75
8.75
8.75
8.75
9.87
9.76
9.77
9.60
7.406
7.615
7.983
7.995
7.49
7.72
7.89
7.99
7.371
7.560
7.867
7.819
7.48
7.66
7.79
7.81
6.94
7.07
7.04
7.07
7.37
7.41
7.52
7.58
6.83
6.88
6.94
7.06
Feb.
2
8.45
8.38
7.93
8.55
9.47
7.778
7.55
7.516
7.31
6.80
7.33
6.94
Period
90-119
days
1967
1968
1969
1970
1971
1972
1973
1973—Jan..
Feb..
Mar.
Apr.,
May.
June.
July,
Aug..
Sept.
Oct .
Nov ,
Dec ,
1974—Jan
Rate
on new
issue
Market
yield
Rate
on new
issue
Market
yield
1 -year
bill (market yield) 5
Other 6
3- to 5year
issues 7
Week ending—
1973—Oct.
Nov.
Dec.
1,
1 Averages of the most representative daily offering rate quoted by
dealers.
2
Averages of the most representative daily offering rate published by
finance companies, for varying maturities in the 90-179 day range.
3 Seven-day averages for week ending Wednesday. Beginning with
statement week ending July 25, 1973, weekly averages are based on the
daily average of the range of rates on a given day weighted by the volume
of transactions at these rates. For earlier statement weeks, the averages
were based on the daily effective rate—the rate considered most repre-
sentative of the day's transactions, usually the one at which most transactions
occurred.
4
Except for new bill issues, yields are averages computed from daily
closing
bid
prices.
5
Bills quoted on bank-discount-rate basis.
6 Certificates and selected note and bond issues.
7
Selected note and bond issues.
NOTE.—Figures for Treasury bills are the revised series described on p.
A - 3 5 o f t h e O c t . 1 9 7 2 BULLETIN.
A 34
INTEREST RATES • FEBRUARY 1974
BOND AND STOCK YIELDS
(Per cent per annum)
Government bonds
Corporate bonds
State and local
Period
United
States
(longterm)
i utility
Stocks
By selected
rating
Dividend/
price ratio
By
group
Earnings/
price ratio
Total i
Total i
Baa
New
issue
Recently
offered
Baa
Industrial
Railroad
Public
utility
Preferred
Common
Common
Seasoned issues
196 3
1964
4.00
4.15
3.28
3.28
3.06
3.09
3.58
3.54
4.21
4.34
196 5
196 6
196 7
196 8
196 9
4.21
4.66
4.85
5.25
6.10
3.34
3.90
3.99
4.48
5.73
3.16
3.67
3.74
4.20
5.45
3.57
4.21
4.30
4.88
6.07
4.50
5.43
5.82
6.50
7.71
197 0
197 1
1972
1973
6.59
5.74
5.63
6.30
6.42
5.62
5.30
5.22
6.12
5.22
5.04
4.99
6.75
5.89
5.60
5.49
1973—Ja n
Feb
Mar.. . .
Apr
May
June
July . . . .
Aug
Sept
Oct
Nov. . . .
Dec. . . .
5.94
6.14
6.20
6.11
6.22
6.32
6.53
6.81
6.42
6.26
6.31
6.35
5.13
5.17
5.30
5.17
5.13
5.25
5.44
5.51
5.13
5.03
5.21
5.14
4.90
4.95
5.07
4.95
4.90
5.05
5.21
5.26
4.90
4.76
5.03
4.90
5.39
5.44
5.58
5.42
5.41
5.51
5.71
5.80
5.41
5.31
5.46
5.43
1974—Ja n
6.56
5.23
5.03
1.
8.
15.
22.
29.
6.27
6.31
6.30
6.34
6.47
5.16
5.20
5.13
5.11
5.11
5.
19.
26.
6.52
6.57
6.57
6.57
Feb. 2.
4.50
4.57
4.26
4.40
4.86
4.83
4.42
4.52
4.65
4.67
4.41
4.53
4.30
4.32
3.17
3.01
5.68
5.54
4.51
5.38
5.79
6.47
7.64
4.64
5.34
5.82
6.51
7.36
4.49
5.13
5.51
6.18
7.03
4.87
5.67
6.23
6.94
7.81
4.61
5.30
5.74
6.41
7.22
4.72
5.37
5.89
6.77
7.46
4.60
5.36
5.81
6.49
7.49
4.33
4.97
5.34
5.78
6.41
3.00
3.40
3.20
3.07
3.24
5.87
6.72
5.71
5.64
6.08
8.68
7.62
7.31
7.74
8.71
7.66
7.34
7.75
8.51
7.94
7.63
7.80
8.04
7.39
7.21
7.44
9.11
8.56
8.16
8.24
8.26
7.57
7.35
7.60
8.77
8.38
7.99
8.12
8.68
8.13
7.74
7.83
7.22
6.75
7.27
7.23
3.83
3.14
2.84
3.06
6.46
5.41
5.50
7.38
7.40
7.49
7.46
7.51
7.64
7.49
7.57
7.62
7.62
7.62
7.69
7.80
8.04
8.06
7.96
8.02
8.05
7.15
7.22
7.29
7.26
7.29
7.37
7.45
7.68
7.63
7.60
7.67
7.68
7.90
7.97
8.03
8.09
8.06
8.13
8.24
8.53
8.63
8.41
8.42
8.48
7.27
7.34
7.43
7.43
7.41
7.49
7.59
7.91
7.89
7.76
7.81
7.84
7.87
7.92
7.94
7.98
8.36
7.88
7.90
7.90
8.00
7.37
7.42
7.54
7.47
7.50
7.64
7.97
8.22
7.99
7.94
7.94
8.04'
7.51
7.61
7.64
7.64
7.63
7.69
7.81
8.06
8.09
8.04
8.17
6.85
6.91
7.03
7.11
7.13
7.25
7.35
7.43
7.38
7.18
7.40
7.76
2.69
2.80
2.83
2.90
3.01
3.06
3.04
3.16
3.13
3.05
3.36
3.70
5.49
8.21
8.22
8.15
7.83
8.58
7.97
8.34
8.27
7.60
3.64
5.00
5.00
4.90
4.85
4.85
5.40
5.45
5.45
5.40
5.40
7.85
8.06
7.97
7.98
7.87
7.98
7.98
8.05
8.10
8.01
8.02
8.04
8.06
8.08
7.64
7.65
7.67
7.68
7.73
8.42
8.43
8.48
8.50
8.52
7.81
7.81
7.83
7.85
7.87
8.30
8.25
8.26
8.31
8.31
8.09
8.13
8.17
8.21
7.51
7.61
7.70
7.82
7.90
3.55
3.77
3.72
3.67
3.64
5.16
5.24
5.24
5.28
4.90
5.05
5.05
5.10
5.50
5.50
5.45
5.50
8.10
8.17
8.27
8.24
8.12
8.16
8.26
8.18
7.73
7.77
7.85
7.88
8.54
8.56
8.58
8.60
7.87
7.92
7.98
8.02
8.35
8.37
8.35
8.31
8.22
8.23
8.26
8.32
7.81
7.55
7.51
7.49
3.56
3.73
3.65
3.60
6.55
5.24
5.05
5.50
8.19
8.18
7.87
8.58
8.01
8.30
8.33
7.62
3.65
12
20
20
30
41
30
14
500
8.01
8.01
8.07
8.17
8.32
8.37
8.24
8.28
8.28
8.11
6.10
6.93
7.06
Week ending—
1973—Dec.
1974—Jan.
12.
Number 2of
issues .. .
8.13
8.25
8.21
1 Includes bonds rated Aa and A, data for which are not shown separately. Because of a limited number of suitable issues, the number
of corporate bonds in some groups has varied somewhat. As of Dec.
23, 1967, there is no longer an Aaa-rated railroad bond series.
2
Number of issues varies over time; figures shown reflect most recent
count.
NOTE.—Annual yields are averages of monthly or quarterly data.
Bonds: Monthly and weekly yields are computed as follows: (1) U.S.
Govt.: Averages of daily figures for bonds maturing or callable in 10 years
or more; from Treasury Dept. (2) State and local govt.: General obligations
Notes to tables on opposite
500
only, based on Thurs. figures; from Moody's Investor Service. (3) Corporate: Rates for "New issue" and "Recently offered" Aaa utility bonds
are weekly averages compiled by the Board of Governors of the Federal
Reserve System. Rates for seasoned issues are averages of daily figures
from Moody's Investors Service.
Stocks: Standard and Poor's corporate series. Dividend/price ratios
are based on Wed. figures; earnings/price ratios are as of end of period.
Preferred stock ratio is based on eight median yields for a sample of noncallable issues—12 industrial and 2 public utility; common stock ratios
on the 500 stocks in the price index. Quarterly earnings are seasonally
adjusted at annual rates.
page:
Security Prices:
1
Through Aug. 1973 the index is based upon an initial value of 10.90—
the average price of a share of stock listed on the American Stock Exchange
was $10.90 on June 30, 1965. As of Sept. 1973, a new market-value index
with a starting value of 100.00 replaced the previous series. An index for
past periods is being calculated on the new market-value basis and will be
published as it becomes available.
NOTE.—Annual data are averages of monthly figures. Monthly and
weekly data are averages of daily figures unless otherwise noted and are
computed as follows: U.S. Govt, bonds, derived from average market
yields in table on p. A-34 on basis of an assumed 3 per cent, 20-year
bond. Municipal and corporate bonds, derived from average yields as
computed by Standard and Poor's Corp., on basis of a 4 per cent, 20year bond; Wed. closing prices. Common stocks, derived from component common stock prices. Average daily volume of trading, normally
conducted 5 days per week for 5% hours per day, or 27y 2 hours per week.
In recent years shorter days and/or weeks have cut total weekly trading
to the following number of hours: 1967—Aug. 8-20, 20; 1968—Jan. 22Mar. 1, 20; June 30-Dec. 31, 22; 1969—Jan. 3-July 3, 20; July 7-Dec. 3122i/ 2 ; 1970—Jan. 2-May 1, 25.
8.18
Terms on Mortgages:
1 Fees and charges—related to principal mortgage amount—include
loan commissions, fees, discounts, and other charges, which provide
added income to the lender and are paid by the borrower. They exclude
any closing costs related solely to transfer of property ownership.
NOTE.—Compiled by Federal Home Loan Bank Board in cooperation
with Federal Deposit Insurance Corporation. Data are weighted averages
based on probability sample survey of characteristics of mortgages
originated by major institutional lender groups (including mortgage
companies) for purchase of single-family homes. Data exclude loans for
refinancing, reconditioning, or modernization; construction loans to
homebuilders; and permanent loans that are coupled with construction
loans to owner-builders. Series revised beginning Jan. 1973; hence data are
not strictly comparable with earlier figures. See also the table on HomeMortgage Yields, p. A-53.
FEBRUARY 1974 • SECURITY MARKETS
A 35
SECURITY PRICES
Common stock prices
New York Stock Exchange
Bond prices
(per cent of par)
Standard and Poor's index
(1941-43= 10)
U.S.
Govt,
(longterm)
State
and
local
Corporate
AAA
Total
Industrial
Railroad
Public
utility
86.31
84.46
111.3
111.5
96.8
95.1
69.87
81.37
73.39
86.19
37.58
45.46
64.99
69.91
83.76
78.63
76.55
72.33
64.49
110.6
102.6
100.5
93.5
79.0
93.9
86.1
81.8
76.4
68.5
88.17
85.26
91.93
98.70
97.84
93.48
91.09
99.18
107.49
107.13
46.78
46.34
46.72
48.84
45.95
76.08
68.21
60.52
67.73
68.71
62.80
72.3
80.0
84.4
85.4
61.6
65.0
65.9
63.7
83.22
98.29
109.20
107.43
91.29
108.35
121.79
120.44
65.89
64.09
63.59
64.39
63.43
62.61
60.87
58.71
61.81
63.13
62.71
62.37
86.9
86.1
66.0 118.42 132.55
65.5 114.16 128.50
6 5 . 2 112.42 126.05
6 4 . 9 110.27 123.56
64.7 107.22 119.95
6 4 . 4 104.75 117.20
63.8 105.83 118.65
61.0 103.80 116.75
61.3 105.61 118.52
62.1 109.84 123.42
62.1 102.03 114.64
94.78 106.16
62.9
60.66
85.2
62.3
96.11
60.98
60.61
60.58
60.60
85.8
85.4
85.1
84.8
62.6
62.5
62.2
62.0
60.76
85.2
62.2
86.1
84.1
85.7
86.1
85.8
83.2
82.2
86.2
86.9
85.6
American
Stock
Exchange
total
index 1
New York Stock Exchange index
(Dec. 31, 1965 = 50)
Industrial
Total
Transportation
Utility
Finance
Volume of
trading in
stocks
(thousands of
shares)
NYSE
8.52
9.81
4,573
4,888
66.42
62.64
44.16
50.77
55.37
54.67
43.79
51.97
58.00
57.45
48.23
53.51
50.58
46.96
44.77
45.43
44.19
42.80
44.43
49.82
65.85
70.49
12.05
14.67
19.67
27.72
28.73
6,174
7,538
10,143
12,971
11,403
32.13
41.94
44.11
38.05
54.48
59.33
56.90
53.47
45.72
54.22
60.29
57.42
48.03
57.92
65.73
63.08
32.14
44.35
50.17
37.74
37.24
39.53
38.48
37.69
54.64
70.38
78.35
70.12
22.59
25.22
27.00
10,532
17,429
16,487
16,374
42.87
40.80
39.29
35.88
36.14
34.35
35.22
33.76
35.49
38.24
39.74
41.48
60.01
57.52
55.94
55.34
55.43
54.37
53.31
50.14
52.31
53.22
48.30
45.73
64.38
61.52
60.15
58.67
56.74
55.14
56.12
55.33
56.71
59.26
54.59
50.39
70.55
67.67
66.20
64.41
62.22
60.52
61.53
61.09
62.25
65.29
60.15
55.12
45.14
42.34
40.92
40.57
36.66
33.72
34.22
33.48
35.82
39.03
36.31
34.69
41.72
39.95
39.13
38.97
39.01
37.95
37.68
35.40
36.79
37.47
34.73
33.47
81.62
74.47
72.32
69.42
65.33
63.52
68.95
68.26
72.23
74.98
67.85
62.49
25.35
25.34
24.59
24.02
23.12
22.44
22.89
23.03
107.97
99.91
88.39
18.752
16.753
15,564
13,900
15,329
12,796
14,655
14,761
17,320
18,387
19,044
19,227
107.18
44.37
48.60
51.39
55.77
36.85
35.89
64.80
95.32
16,506
98.48
96.98
95.24
96.49
110.02
105.50
106.11
107.68
46.68
44.63
44.56
43.63
48.24
48.54
48.58
48.61
52.47
50.74
50.97
51.56
57.17
54.87
55.19
56.04
38.41
36.44
36.67
36.73
35.12
35.25
35.24
35.28
65.69
64.90
64.87
64.34
92.66 20,522
94.85 17,293
9 4 . 7 4 16,059
96.06 16,139
96.21
107.39
42.59
48.56
51.45
55.92
36.27
35.28
64.14
97.03
68.10
101.88
13,910
For notes see opposite page.
TERMS ON CONVENTIONAL FIRST MORTGAGES
Existing homes
New homes
Period
Contract
rate
(per
cent)
Fees &
charges
(per
cent) i
Maturity
(years)
Loan/
price
ratio
(per
cent)
PurLoan
chase
amount
price
(thous. of
(thous. of dollars)
dollars)
Contract
rate
(per
cent)
Fees &
charges
(per
cent) i
Maturity
(years)
Loan 1
price
ratio
(per
cent)
PurLoan
chase
amount
price
(thous.
of
(thous. of
dollars)
dollars)
1965,
1966,
1967.
1968.
1969.
5.74
6.14
6.33
6.83
7.66
.49
.71
.81
.89
.91
25.0
24.7
25.2
25.5
25.5
73.9
73.0
73.6
73.9
72.8
25.1
26.6
28.0
30.7
34.1
18.3
19.2
20.4
22.4
24.5
5.87
6.30
6.40
6.90
7.68
.55
.72
.76
.83
.88
21.8
21.7
22.5
22.7
22.7
72.7
72.0
72.7
73.0
71 .5
21.6
22.2
24.1
25.6
28.3
15.6
15.9
17.4
18.5
19.9
1970.
1971 .
1972.
8.27
7.60
7.45
1.03
.87
.88
25.1
26.2
27.2
71.7
74.3
76.8
35.5
36.3
37.3
25.2
26.5
28.1
8.20
7.54
7.38
.92
.77
.81
22.8
24.2
25.7
71.1
73.9
76.0
30.0
31.7
33.4
21.0
23.1
25.0
1972-- D e c
7.51
.92
27.5
78.0
37.9
29.0
7.45
.86
26.4
76.8
34.0
25.7
1973--Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
7.52
7.52
7.51
7.53
7.55
7.62
7.69
7.77
7.98
8.12
8.22
8.28
1.03
1.15
1.09
1.11
1.05
1.08
1.11
1.08
1.19
1.20
1.08
1.13
25.7
26.8
26.6
26.6
25.9
26.3
26.3
26.7
26.6
26.1
26.0
26.4
76.6
78.6
78.4
78.2
77.7
78.0
78.1
76.7
77.3
76.9
75.5
75.7
35.8
35.9
36.7
36.9
35.6
35.8
37.0
38.6
37.2
38.5
38.9
38.9
27.0
27.6
28.3
28.2
27.2
27.5
28.3
28.9
28.2
29.0
28.8
29.0
7.53
7.55
7.54
7.55
7.62
7.64
7.70
7.87
8.10
8.35
8.42
8.45
.94
1.03
.95
.96
.93
.92
.91
.92
.97
.92
.94
.92
23.2
23.6
23.3
23.9
23.5
23.4
24.1
23.4
23.1
22.5
22.2
22.3
75.2
77.5
76.9
77.3
77.5
75.9
75.5
75.6
74.1
72.7
71.2
72.9
30.5
29.2
29.3
30.1
30.0
31.7
33.3
32.0
32.8
31.8
32.3
30.8
22.6
22.0
22.0
22.8
22.3
23.5
24.6
23.6
23.5
22.6
22.6
22.1
For notes see opposite page.
A 36
STOCK MARKET CREDIT • FEBRUARY 1974
STOCK MARKET CUSTOMER FINANCING
(In millions of dollars)
Margin credit at brokers and banks
Regulated
Margin stock
Total
2
Unregulated 3
Convertible
bonds
Subscription
issues
Brokers Banks
Nonmargin
stock
credit at
banks
Brokers Banks Brokers Banks Brokers Banks
1972—Dec.
1973—Jan...
Feb..
Mar..
Apr..
May.
June.
July..
Aug..
Sept..
Oct..
Nov..
Dec..
Free credit balances
at brokers 4
By type
By source
End of period
1
Margin
accts.
9,045
8,180
865
7,900
798
254
50
26
1,896
414
8,840
8,640
8,347
8,165
7,650
'7',369
'7,299
'7,081
'6,954
'7,093
7,975
7,773
7,468
7,293
6,784
6,416
6,243
6,056
5,949
5,912
5,671
5,251
865
867
879
872
866
'953
r
l.056
r
l ,025
r
1,005
'1,181
7,700
'7,500
'7,200
7,040
6,540
6,180
6,010
5,830
5,730
5,690
5,460
5.050
796
800
813
804
802
'885
'976
r
949
'929
1,150
249
248
244
232
224
215
216
210
204
203
197
189
48
50
48
49
47
53
'64
'61
26
25
24
21
20
21
17
16
15
19
14
12
'1,932
'1,951
'1,862
'1,952
'1,992
'1,973
'1,957
'1,952
'1,909
'1,878
413
431
442
389
413
396
379
348
379
419
464
454
1 Margin credit includes all credit extended to purchase or carry stocks
or related equity instruments and secured at least in part by stock (see
Dec. 1970 BULLETIN). Credit extended by brokers is end-of-month data
for member firms of the New York Stock Exchange. June data for banks
are universe totals; all other data for banks represent estimates for all
commercial banks based on reports by a reporting sample, which accounted for 60 per cent of security credit outstanding at banks on June 30,
1971.
2 In addition to assigning a current loan value to margin stock generally,
'60
'59
Regulations T and U permit special loan values for convertible bonds and
stock acquired through exercise of subscription rights.
3
Nonmargin stocks are those not listed on a national securities exchange
and not included on the Federal Reserve System's list of Over the Counter
margin stocks. At banks, loans to purchase or carry nonmargin stocks are
unregulated; at brokers, such stocks have no loan value.
4
Free credit balances are in accounts with no unfulfilled commitments
to the brokers and are subject to withdrawal by customers on demand-
EQUITY STATUS OF MARGIN ACCOUNT DEBT
AT BROKERS
SPECIAL MISCELLANEOUS ACCOUNT BALANCES
AT BROKERS, BY EQUITY STATUS OF ACCOUNTS
(Per cent of total debt, except as noted)
(Per cent of total, except as noted)
End of
period
Total
debt
(millions
of
dollars)!
1972—Dec..
Equity class (per cent)
End of period
80 or
more
70-79
60-69
50-59
40-49
Under
40
7,900
6.5
8.6
17.6
31.9
20.3
15.0
1973—Jan. . 7,700
Feb. . 7,500
Mar.. 7,200
Apr.. 7,040
May. 6,540
June. 6,180
July.. 6,010
Aug.. 5,830
Sept.. 5,730
Oct. . 5,690
N o v . . 5,460
D e c . . 5,050
5.8
5.3
5.7
4.8
4.9
4.9
5.8
5.0
5.0
7.2
5.4
5.8
8.2
7.8
7.5
7.3
7.2
7.1
8.8
8.4
13.9
10.0
6.1
7.7
16.8
14.7
15.9
13.4
12.7
13.2
17.7
16.4
18.9
19.9
12.0
14.4
27.8
23.9
23.1
19.8
18.7
17.5
22.7
19.6
23.9
22.6
16.9
17.4
21.2
22.5
22.7
22.4
21.9
22. 1
25.3
24.2
23.5
22.1
19.5
20.3
20.0
25.6
25.1
32.4
34.9
35.3
19.7
26.4
16.8
18.2
40.1
34.2
i See note 1 to table above.
NOTE.—Each customer's equity in his collateral (market value of colateral less net debit balance) is expressed as a percentage of current colateral values.
1973—Jan
Feb
July
Net
credit
status
Equity class of accounts
in debi t status
Total
balance
(millions
60 per cent Less than
or more 60 per cent of dollars)
34.4
52.9
12.7
6,100
35.1
35.8
36.3
35.3
35.8
35.8
35.9
35.9
37.4
38.5
37.5
39.4
51.7
49.8
47.9
46.9
45.0
43.5
46.7
45.6
53.1
46.7
42.2
40.0
13.1
14.4
15.7
18.0
19.1
20.7
17.4
18.5
9.4
14.8
20.3
20.6
5,850
5,770
5,790
5,660
5,670
5,750
5,740
5,650
5,740
5,860
5,882
5,935
NOTE.—Special miscellaneous accounts contain credit balances that
may be used by customers as the margin deposit required for additional
purchases. Balances may arise as transfers based on loan values of other
collateral in the customer's margin account or deposits of cash (usually
sales proceeds) occur.
FEBRUARY 1974 • SAVINGS INSTITUTIONS
A 37
MUTUAL SAVINGS BANKS
(In millions of dollars)
Securities
Loans
End of period
Mortgage
Other
U.S.
Govt.
Corporate
and
other 1
State
and
local
govt.
Cash
Other
as3ets
Total
assets—
Total
liabilities
and
general
reserve
accts.
Deposits 2
Mortgage loan
commitments 3
classified by maturity
(in months)
Other General
liabili- reserve
acties
counts
3 or
less
1965,,
1966,,
44,433
47,193
862
1,078
5,485
4,764
320
251
5,170
5,719
1,017
953
944
1,024
58,232
60,982
52,443
55,006
1,124
1,114
4,665
4,863
1967.,
1968.,
1969
1970
1971.
19724
50,311
53,286
55,781
57,775
62,069
67,563
1,203
1,407
1,824
2,255
2,808
2,979
4,319
3,834
3,296
3,151
3.334
3,510
8,183
219
194 10,180
200 10,824
197 12,876
385 17,674
873 21,906
993
996
912
1,270
1,389
1,644
1,138
1,256
1,307
1,471
1,711
2,117
66,365
71,152
74,144
78,995
89,369
100,593
60,121
64,507
67,026
71,580
81,440
91,613
1,260
1,372
1.588
1,690
1,810
2,024
4,984
5,273
5,530
5,726
6,118
6,956
584
619
1,047
1,593
1972-- D e c . . . .
67,563
2,979
3,510
873 21,906
1,644
2,117
100,593
91,613
2,024
6,956
1973--Jan
Feb....
Mar.. .
Apr
May...
June...
July...
Aug
Sept.. .
Oct... .
Nov
Dec.f..
68,021
68,352
68,920
69,426
69,988
70,637
71,219
71,713
72,034
72,367
72,760
73,260
3,624
4,030
3,970
3,831
4,099
3,959
3,819
3,986
4,200
4,181
4,424
4,109
3,489
3,419
3,458
3,388
3,376
3,346
3,190
3,037
2,945
3,007
2,948
3,023
22,190
22,389
22,509
22,598
22,615
22,562
22,683
22,277
21,799
21,276
21,150
21,226
1,319
1,331
1,576
1,582
1,629
1,775
1,555
1,551
1,491
1,501
1.519
i ; 8i9
2,055
2,070
2,058
2,089
2,116
2,273
2,202
2,227
2,345
2,285
2,264
2,264
101,632
102,577
103,518
103,994
104,899
105,677
105,761
105,789
105,771
105,557
105,991
106,626
92,398
92,949
94,095
94,217
94,744
95,706
95,355
94,882
95,183
94,944
95,259
96,409
2,221
2,540
2,285
2.589
2,904
2,650
3.044
3,496
3,134
3,139
3,201
2,601
7,014
7,088
7,139
7,189
7,251
7,321
7,362
7,411
7,453
7,474
7,530
7,615
935
986
1,028
1,080
1,076
1.125
1,093
999
957
939
925
925
1 Also includes securities of foreign governments and international
organizations and nonguaranteed issues of U.S. Govt, agencies.
2
Beginning with data for June 30, 1966, about $1.1 billion in "Deposits
accumulated for payment of personal loans" were excluded from "Time
deposits" and deducted from "Loans" at all commercial banks. These
changes resulted from a change in Federal Reserve regulations. See table
(and notes), Deposits Accumulated for Payment of Personal Loans, p. A-30.
3
Commitments outstanding of banks in New York State as reported to
the Savings Banks Assn. of the State of New York. Data include building
loans beginning with Aug. 1967.
742
3-6
982
1,034
485
322
627
713
452
302
463
609
1,593
713
609
1,569
1,729
1,816
1,904
1,792
1,711
1,626
1,302
1,411
1,318
1,272
1,250
915
862
886
688
811
913
1,020
906
840
762
771
685
598
732
826
725
712
573
636
718
589
510
479
405
4
Balance sheet data beginning Jan. 1972 are reported on a gross-ofvaluation-reserves basis. The data differ somewhat from balance sheet
data previously reported by National Assn. of Mutual Savings Banks
which were net of valuation reserves. For most items, however, the differences are relatively small.
NOTE.—NAMSB data; figures are estimates for all savings banks in
the United States and differ somewhat from those shown elsewhere in
the BULLETIN; the latter are for call dates and are based on reports filed
with U.S. Govt, and State bank supervisory agencies.
LIFE INSURANCE COMPANIES
(In millions of dollars)
Government securities
End of period
Total
assets
Total
United
States
Business securities
State and
Foreign 1
local
Total
Bonds
Stocks
Mortgages
Real
estate
Policy
loans
Statement value:
196 5
196 6
196 7
196 8
158,884
167,022
177,832
188,636
11,679
10,837
10,573
10,509
5,119
4,823
4,683
4,456
3,530
3,114
3,145
3,194
3,030
2,900
2,754
2,859
67,599
69,816
76,070
82,127
58,473
65,193
68,897
9,126
8,755
10,877
13,230
60,013
64,609
67,516
69,973
4,681
4,883
5,187
5,571
7,678
9,117
10,059
11,306
Book value:
196 6
196 7
196 8
196 9
197 0
197 1
197 2
167,022
177,361
188,636
197,208
207,254
222,102
239,730
10,864
10,530
10,760
10,914
11,068
11,000
11,372
4,824
4,587
4,456
4,514
4,574
4,455
4,562
3,131
2,993
3,206
3,221
3,306
3,363
3,367
2,909
2,950
3,098
3,179
3,188
3,182
3,443
68,677
73,997
79,653
84,566
88,518
99,805
112,985
61,141
65,015
68,731
70,859
73,098
79,198
86,140
7,536
8,982
10,922
13,707
15,420
20,607
26,845
64,661
67,575
70,044
72,027
74,375
75,496
76,948
4,888
5,188
5,575
5,912
6,320
6,904
7,295
9,911
10,060
11,305
13,825
16.064
17.065
18,003
1972—Nov....
Dec.. . .
238,338
239,730
11,619
11,372
4,832
4,562
3,379
3,367
3,408
3.443
113.180
112,985
87.139
86.140
26,041
26,845
75,904
76,948
7,261
7,295
17,927
18,003
1973—Jan.. . .
Feb.. . .
Mar... .
Apr
May...
June...
July....
Aug
Sept
Oct
Nov
241,022
242,069
243,078
242,562
243.589
244,531
247,082
247,655
250,203
251.590
251,055
11,191
11,138
11,154
11,455
11,434
11,359
11,427
11,416
11,404
11,402
11,462
4,389
4,371
4,417
4,566
4,538
4,468
4,480
4,462
4,424
4,423
4,471
3,358
3,319
3,300
3,388
3,384
3,373
3,427
3,433
3,439
3,438
3,444
3.444
3,448
3,437
3,501
3,512
3,518
3.520
3.521
3,541
3,541
3,547
114,526
115,386
115,972
115.181
115,897
116,153
118,061
117,842
119,200
119,714
118,016
88,371
89,247
89,881
89,710
90,314
90,484
91,144
91,342
91,480
91,707
91,847
26,155
26,139
26,091
25,471
25,583
25,669
26,917
26,500
27,720
28,007
26,169
77,481
77,510
77,587
77,258
77,400
77,914
78,243
78,657
79,040
79,516
80,191
7,366
7,434
7,449
7,522
7,545
7,548
7,577
7,632
7,677
7,765
7,838
1
Issues of foreign governments and their subdivisions and bonds of
the International Bank for Reconstruction and Development.
NOTE.—Institute of Life Insurance estimates for all life insurance
companies in the United States.
61,061
18,080
18,166
18,288
18,420
18,533
18,673
18,841
19,181
19,511
19,768
19,926
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."
A 38
SAVINGS INSTITUTIONS • FEBRUARY 1974
SAVINGS AND LOAN ASSOCIATIONS
(In millions of dollars)
Liabilities
End of period
Investment
securities 1
Mortgages
196 7
196 8
196 9
197 0
197 1
197 2
1973—Jan...
Feb...
Mar..
Apr...
May..
June..
July. .
Aug..
Sept..
Oct...
Nov..
Dec.*.
Other 2
Cash
121,805
130,802
140,232
150,331
174,385
206,387
9,180
11,116
10,873
13,020
21,076
24,491
6 208,132
210,260
213,259
216,250
219,500
222,801
225,490
228,006
229,413
230,425
231,319
232,322
6 23,460
24,220
24,019
23,943
24,072
23,362
22,769
21,139
20,161
20,756
21,360
21,182
Total
assets—
Total
liabilities
Savings
capital
Net
worth 3
Borrowed
money 4
Mortgage
loan commitments
outstanding
at end of
period 5
Loans
Other
7,788
8,010
8,606
9,326
10,842
12,693
143,534
152,890
162,149
176,183
206,303
243,571
124,493
131,618
135,538
146,404
174,472
207,305
9,916
10,691
11,620
12,401
13,657
15,326
4,775
5,705
9,728
10,911
9,048
9,847
2,257
2,449
2,455
3,078
5,072
6,225
2,093
2,427
2,808
3,389
4,054
4,868
3,042
3,631
2,824
4,452
7,378
11,578
615,660
16,214
17,104
17,605
17,990
18,038
18,416
18,826
19,131
19,421
19,576
19,369
247,252
250,694
254,382
257,798
261,562
264,201
266,675
267,971
268,705
270,602
272,255
272,873
210,589
212,493
216,195
217,026
218,906
222,183
221,958
220,800
222,645
223,594
224,867
227,802
15,557
15,925
15,825
16,133
16,505
16,315
16,640
16,986
16,872
17,131
17,420
17,225
9,171
9,415
9,958
11,336
11,756
12,766
14,295
15,703
16,324
16,505
16,382
17,193
6,076
6,095
6,326
6,548
6,727
6,770
6,702
6,464
6,078
5,548
5,023
4,683
5,859
•6,766
6,078
6,755
7,668
6,167
7,080
8,018
6,786
7,824
8,563
5,970
12,469
13,538
14,508
15,009
15,139
14,776
13.778
12,314
10,861
9,970
9,777
9,621
3,442
2,962
2,438
3,506
1
Investment securities included U.S. Govt, securities only through 1967.
Beginning 1968 the total reflects liquid assets and other investment securities. Included are U.S. Govt, obligations, Federal agency securities,
State and local govt, securities, time deposits at banks, and miscellaneous
securities, except stock of the Federal Home Loan Bank Board. Compensating changes have been made in "Other assets."
2
Includes other loans, stock in the Federal home loan banks, other
investments, real estate owned and sold on contract, and office buildings
and fixtures. See also notes 1, 5, and 6.
3
Includes net undistributed income, which is accrued by most, but not
all, associations.
4
Consists of advances from FHLBB and other borrowing.
5 Data comparable with those shown for mutual savings banks (on
preceding page) except that figures for loans in process are not included
above but are included in the figures for mutual savings banks.
6 Beginning Jan. 1973, participation certificates guaranteed by the
Federal Home Loan Mortgage Corporation, loans and notes insured by
the Farmers Home Administration and certain other Governmentinsured mortgage-type investments, previously included in mortgage
loans, are included in other assets. The effect of this change was to reduce
the mortgage total by about $0.6 billion.
Also, GNMA-guaranteed, mortgage-backed securities of the passthrough type, previously included in cash and investment securities are
included in other assets. These amounted to about $2.4 billion at the end
of 1972.
NOTE.—FHLBB data; figures are estimates for all savings and loan
assns. in the United States. Data are based on monthly reports of insured
assns. and annual reports of noninsured assns. Data for current and
preceding year are preliminary even when revised.
MAJOR BALANCE SHEET ITEMS OF SELECTED FEDERALLY SPONSORED CREDIT AGENCIES
(In millions of dollars)
Federal home loan banks
Liabilities and capital
End of
period
Debentures
and
notes
(L)
Loans
to
cooperatives
(A)
Debentures
1,395
1,402
1,478
1,607
1,618
5,348
6,872
10,541
15,502
17,791
4,919
6,376
10,511
15,206
17,701
1,548
1,756
19,791
19,238
1,306
1,323
1,291
1,143
1,261
1,453
1,183
1,091
1,178
1,270
1,545
1,745
1,821
1,891
1,943
1,981
1,991
2,008
2,035
2,064
2,089
2,107
2,112
2,122
19,980
19,252
19,402
19,985
20,056
20,225
20,364
20,843
21,186
21,537
22,243
22,404
23,001
Capital
stock
127
126
124
105
142
4,060
4,701
8,422
10,183
7,139
1,432
1,383
1,041
2,332
1,789
2,225
129
6,971
2,264
2,421
1,938
2,087
2,702
2,516
2,126
2,016
2,908
3,498
3,649
3,537
91
106
108
111
95
108
103
111
102
106
77
157
6,971
7,220
7,220
8,415
9,615
10,215
11,213
12,562
14,062
15,362
15,362
15,362
4,386
5,259
9,289
10,614
7,936
2,598
2,375
1,862
3,864
2,520
1972—Dec..
7,979
1973—Jan..
Feb..
Mar.
Apr..
May.
June.
July.
Aug.
Sept.
Oct..
Nov.
Dec..
7,831
7,944
8,420
9,429
10,155
11,145
12,365
13,511
14,298
14,799
r
14,866
15,147
NOTE.—Data from Federal Home Loan Bank Board, Federal National
Mortgage Assn., and Farm Credit Admin. Among omitted balance
sheet items are capital accounts of all agencies, except for stock of FHLB's.
Bonds, debentures, and notes are valued at par. They include only publicly
Banks
for
cooperatives
Mortgage
loans
(A)
Member
deposits
Investments
196 7
196 8
196 9
1970
197 1
Cash
and
deposits
Bonds
and
notes
Advances
to
members
Federal National
Mortgage Assn.
(secondary market
operations)
20,181
20,571
20,791
21,087
21,413
21,772
22,319
22,826
23,348
23,912
24,175
Federal
intermediate
credit banks
Federal
land
banks
Debentures
(L)
Loans
and
discounts
(A)
(L)
Mortgage
loans
(A)
1,506
1,577
1,732
2,030
2,076
1,253
1,334
1,473
1,755
1,801
3,411
3,654
4,275
4,974
5,669
3,214
3,570
4,116
4,799
5,503
5,609
6,126
6,714
7,186
7,917
2,298
1,944
6,094
5,804
9,107
8,012
2,808
2,936
2,896
2,859
2,765
2,725
2,811
2,865
r
2,738
'2,711
'2,662
2,577
1,950
2,188
2,188
2,465
2,370
2,316
2,365
2,310
2,560
2,728
2,704
2,670
6,087
6,179
6,414
6,555
6,777
6,958
6,981
'7,065
'7,170
'7,130
r
7,029
'7,198
5,891
5,969
6,076
6,314
6,460
6,645
6,745
6,727
6,833
6,901
6,890
6,861
9,251
9,387
9,591
9,767
9,953
10,117
10,256
10,441
'10,592
'10,781
'10,926
11,071
8,280
8,280
8,280
8,836
8,836
8,836
'9,388
9,390
9,388
'9,838
9,838
9,838
r
Bonds
(L)
4,904
5,399
5,949
6,395
7,063
offered securities (excluding, for FHLB's, bonds held within the FHLB
System) and are not guaranteed by the U.S. Govt.; for a listing of these
securities, see table on opposite page. Loans are gross of valuation reserves
and represent cost for F N M A and unpaid principal for other agencies.
FEBRUARY 1974 • FEDERALLY SPONSORED CREDIT AGENCIES
OUTSTANDING ISSUES OF FEDERALLY SPONSORED AGENCIES, DECEMBER 31, 1973
Agency, and date of issue
and maturity
Federal home loan banks
Bonds:
1/26/70 - 1/25/74
9/21/73 - 1/25/74
6/26/70 - 2/25/74
8/27/71 - 2/25/74
8/27/73 - 2/25/74
6/25/71 - 5 / 2 5 / 7 4
2/26/73 - 5/28/74
8/25/69 - 8/25/74
8/25/72 - 8/26/74
8/27/73 - 8/26/74
11/25/69 - 11/25/74. . .
5/25/73 - 11/25/74
1/26/71 - 2/25/75
11/27/72 - 2/25/75
9/21/73 - 2 / 2 5 / 7 5
4/12/73 - 5/25/75
8/25/70 - 5/26/75
7/27/70 - 8/25/75
7/25/73 - 8/25/75
10/25/73 - 8/25/75
12/18/70- 1 1 / 2 5 / 7 5 . . . .
5/25/73 - 11/25/75
8/27/71 - 2/25/76
8/27/73 - 2/25/76
6/22/73 - 5/25/76
11/27/73 - 5/25/76
7/25/73 - 8/25/76
10/25/73 - 2 / 2 5 / 7 7
6/25/71 - 5/25/77
4/12/73 - 8/25/77
2/26/73 - 11/25/77
11/27/73 - 1 1 / 2 5 / 7 7 . . . .
9/21/73 - 5/25/78
3/25/70 - 2/25/80
1 0 / 1 5 / 7 0 - 10/15/80
10/27/71 - 11/27/81. . .
4/12/73 - 5/25/83
10/25/73 - 11/26/93
Federal Home Loan
Mortgage Corporation
Bonds:
2/10/72 - 8/26/74
5/29/73 - 8/25/76
5/11/72 - 2/25/77
1 1 / 1 9 / 7 0 - 11/27/95
7/15/71 - 8/26/96
5/11/72 - 5/26/97
Federal National Mortgage
Association—
Secondary market
operations
Discount notes
Capital debentures:
4/1 n o - 4 / 1 / 7 5
9/30/71 - 10/1/96
1 0 / 2 / 7 2 - 10/1/97
Mortgage-backed bonds:
6/1/70 - 6/2/75
3/14/73 - 1/15/81
3/14/73 - 1/15/81
6/21/73 - 7/1/82
6/21/73 - 7/1/82
3/1/73-8/31/84
3/1/73 - 10/31/85
3/1/73 - 3/1/86
9/29/70 - 10/1/90
Coupon
rate
8.40
9%
8.40
7.10
9.75
6.35
6.45
7.65
5%
95/s
8.00
7.05
6.10
5%
8.20
7. 15
8.05
7.95
7%
7. 15
6.50
7.05
Amount
(millions
of dollars)
sy 4
7.20
7.45
7.80
7.20
6.95
7.15
6%
7.45
7.60
7.75
7.80
6.60
7.30
73/8
300
500
250
300
700
300
700
176
400
800
221
1,000
250
400
500
700
265
300
500
400
350
600
300
300
600
300
500
500
200
300
300
300
500
350
200
200
200
400
5.30
7.05
6.15
8.60
7.75
7.15
200
400
350
140
150
150
m
2,153
8.00
4.38
7.40
200
248
250
8.38
3.58
5.48
5.85
5.92
5.50
5.49
5.74
8.63
250
53
6
72
35
10
21
81
200
Agency, and date of issue
and maturity
Federal National Mortgage
Association—Cont.
Debentures:
12/10/71 - 3/11/74. ..
4/10/70 - 3/11/74
8/5/70 - 6/10/74
11/10/71 - 6 / 1 0 / 7 4 . . . .
9/10/69 - 9/10/74
2/10/71 - 9/10/74
5/10/71 - 1 2 / 1 0 / 7 4 . . . .
9/10/71 - 1 2 / 1 0 / 7 4 . . . .
11/10/70 - 3/10/75. . .
10/12/71 - 3/10/75. . .
4/12/71 - 6 / 1 0 / 7 5
10/13/70 - 9/10/75. . .
3/12/73 - 9 / 1 0 / 7 5
3/10/72 - 12/10/75. . .
9/10/73 - 1 2 / 1 0 / 7 5 . . . .
3/11/71 - 3/10/76
6/12/73 - 3/10/76
6/10/71 - 6/10/76
2/10/72 - 6/10/76
11/10/71 - 9 / 1 0 / 7 6 . . . .
6/12/72-9/10/76
7/12/71 - 12/10/76.. . .
12/11/72- 12/10/76...
2/13/62 - 2/10/77.
9/11/72 - 3/10/77
12/10/70 - 6/10/77. . .
5/10/71 - m o m
12/10/73 - 6/10/77. . . .
9/10/71 - 9 / 1 2 / 7 7
9/10/73 - 9 / 1 2 / 7 7
7/10/73 - 12/12/77. . . .
10/1/73 - 1 2 / 1 2 / 7 7 . . . .
6/12/73 - 6/12/78
10/12/71 - 12/11/78. .
12/10/73 - 3/12/79. . . .
9/10/73 - 6 / 1 1 / 7 9
6/12/72-9/10/79
12/10/71 - 12/10/79. .
2/10/72 - 3/10/80
2/16/73 - 7 / 3 1 / 8 0
2/16/73 - 7/31/80
10/1/73 - 9 / 1 0 / 8 0
1/16/73 - 1 0 / 3 0 / 8 0 . . . .
12/11/72 - 12/10/80. . .
6 / 2 9 / 7 2 - 1/29/81
3/12/73 - 3/10/81
4/18/73 - 4 / 1 0 / 8 1
3/21/73 - 5/1/81
3/12/73 - 5/1/81
1/21/71 - 6 / 1 0 / 8 1 . . . .
9/10/71 - 9 / 1 0 / 8 1
6/28/72-5/1/82
2/10/71 - 6/10/82
9/11/72 - 9/10/82
3/11/71 - 6/10/83
6/12/73 - 6/10/83
11/10/71 - 9/12/83
4/12/71 - 6 / 1 1 / 8 4
12/10/71 - 12/10/84. .
3/10/72 - 3/10/92
6/12/72 - 6/10/92
12/11/97- 12/10/97. . .
Coupon
rate
5.45
7.75
7.90
5.70
7.85
5.65
6.10
6.45
7.55
6.35
5.25
7.50
6.80
5.70
8.25
5.65
7.13
6.70
5.85
6.13
5.85
7.45
6.25
4i/ 2
6.30
6.38
6.50
7.20
6.88
7.85
7.25
7.55
7.15
6.75
7.25
7.85
6.40
6.55
6.88
5.19
3.18
7.50
4.46
6.60
6.15
7.05
6.59
4.50
5.77
7.25
7.25
5.84
6.65
6.80
6.75
7.30
6.75
6.25
6.90
7.00
7.05
7.10
Amount
(millions
of dollars)
400
350
400
350
250
300
250
450
300
600
500
350
650
500
300
500
400
250
450
300
500
300
500
198
500
250
150
500
300
400
500
500
600
300
500
300
300
350
250
9
400
5
300
156
350
26
18
2
250
250
58
250
200
200
300
250
200
250
200
200
200
Agency, and date of issue
and maturity
Banks for cooperatives
Debentures:
7/2/73 - 1/2/74. . .
8/1/73 - 2 / 4 / 7 4 . . .
10/1/73 - 3/4/74..
10/1/73 - 4 / 1 / 7 4 . .
11/1/73 - 5/1/74..
12/3/73 - 6/3/74. .
10/1/73 - 4 / 4 / 7 7 . .
7.55
8.70
9.90
9.85
7.95
8.80
7.70
Federal intermediate
credit banks
Debentures:
4/2/73 - 1/2/74
7/1/71 - 1/2/74
5/1/73 - 2 / 4 / 7 4
6/4/73 - 3/4/74
7/2/73 - 4 / 1 / 7 4
8/1/73 - 5/1/74
9/4/73 - 6/3/74
10/1/73 - 7 / 1 / 7 4 . . . .
1/4/71 - 7 / 1 / 7 4 . . . .
11/1/73 - 8/1/74. . . .
12/3/73 - 9/3/74. . . .
5/1/72 - 1/2/75
1/3/72 - 7/1/75
3/1/73 - 1/5/76
7/2/73 - 1/3/77
7.00
6.85
6.90
7.00
7^/2
8.65
9%
934
5.95
7.95
8.60
6.05
5.70
6.65
7.10
Federal land banks
Bonds:
7/20/72 - 1121174. .
2/20/62 - 2/20/74. .
10/20/70 - 4/22/74.
9/15/72 - 4 / 2 2 / 7 4 . . .
10/20/71 - 7/22/74. .
4/20/71 - 10/21/74..
2/20/70 - 1/20/75. .
4/23/73 - 1/20/75. . .
4/20/65 - 4/21/75. .
7/20/73 - 4 / 2 1 / 7 5 . ..
2/15/72 - 7 / 2 1 / 7 5 . . .
7/20/71 - 10/20/75..
10/23/73 - 10/20/75.
4 / 2 0 / 7 2 - 1/20/76...
2/21/66 - 2/24/76. .
1/22/73 - 4 / 2 0 / 7 6 . . .
7/20/66 - 7/20/76. .
4/23/73 - 10/20/76..
7/20/73 - 7/20/77. ..
10/20/71 - 10/20/77.
2/20/63 - 2/20/73-78
5/2/66 - 4/20/78 . . .
7/20/72 - 7/20/78. .
10/23/73 - 10/19/78.
2/20/67 - 1/22/79. . .
9/15/72 - 4 / 2 3 / 7 9 . . .
10/23/72 - 10/23/79.
1/22/73 - 1 / 2 1 / 8 0 . . .
7/20/73 - 7/21/80. ..
2/23/71 - 4 / 2 0 / 8 1 . . .
4/20/72-4/20/82...
4/23/73 - 10/20/82..
10/23/73 - 10/20/83.
NOTE.—These securities are not guaranteed by the U.S. Govt.; see also note to table at bottom of opposite page.
Coupon
rate
5.55
41/2
7.30
5.85
5.85
5.30
8^8
7.15
4^
7.65
5.70
7.20
7.40
6Va
5.00
61,4
5^8
7.15
71/2
6.35
41/s
5Vs
6.40
7.35
5.00
6.85
6.80
6.70
71/2
6.70
6.90
7.30
7.30
A 39
A 40
FEDERAL FINANCE • FEBRUARY 1974
FEDERAL FISCAL OPERATIONS: SUMMARY
(In millions of dollars)
Means of financing
U.S. budget
Borrowings from the public
Receipt-expenditure account
Period
Net
expenditures
Budget
receipts
Fiscal year:
197 0
197 1
197 2
197 3
Half year:
1972—Jan.-June.
July-Dec..
1973—Jan.-June.
July-Dec..
Net
lending
193,743 194,456
188,392 210,318
208,649
232.225
..
..
..
..
Budget
outlays i
Budget
surplus
or
deficit
(-)
2,131 196,588 - 2 , 8 4 5
1,107 211,425 - 2 3 , 0 3 3
231,876 - 2 3 , 2 2 7
246,526 - 1 4 , 3 0 1
120,319 - 4 , 8 5 0
118,579 - 1 2 , 5 1 7
127,940 - 1 , 7 7 6
130,360 - 6 , 1 0 7
115,549
106,062
126,164
124,253
Month:
1972—Dec '
18,976
19,648
1973—Ja n
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
21,130
18,067
15,987
25,860
16,584
28,504
18,121
21,291
25,007
17,637
20,208
21,987
23,631
20,227
20,806
22,306
20,157
20,892
22,627
22,139
20,736
23,092
22,099
19,686
-673
2
Less: Cash and
monetary assets
Less: InvestEquals:
Plus: ments by Govt.
Less:
Agency
Total
accounts
Special borrowsecurinotes 3
ing
ties
Special
Other
issues
Public
debt
securities
17,198 - 1 , 7 3 9
27,211
-347
29,131 - 1 , 2 6 9
30,881
216
Treasury
operating
balance
Other
means
of
financing,4
net
Other
9,386
6,616
6,813
12,029
676
800
1,607
-207
5,397
19,448
19,442
19,275
2,151
710
1,362
2,459
-581
-982
-979
3,586
1,108
6,255
-1,613 -4,128
1,028
8,377
-1,520 -5,434
-88
1,302
-191 -2,299
3,130
22,038
8,844
11,756
-150
876
-660
477
4,010
6,351
5,790
5,396
1,089
-823
654
824
-2,114
17,386
1,889
6,013
389
956
1,503
-2,202
5,051
-87
1,104
-343
4,203
2,795
30
-705
18
-900
168
-9
780
119
584
27
206
-721
-56
-49
1,968
234
-43
3,414
68
-174
1,258
325
9
3,137
568
301
40
-756
-173
29
-306
-22
273 - 3 , 5 1 0
3,141
-174
5,574 - 3 , 0 1 6
1,519
3,863
3,005
-2,159
-1,970
-2,369
-713
-563
564
1,395
2,202
3,128
302
408
1,152
1,220
-5,924
4,344
-5,398
-4,105
5,207
-2,588
-1,010
5,693
99
-212
-83
1,164
-1,141
414
-544
151
346
-43
-48
-54
1,383
-1,507
2,883
988
-1,522
-485
-743
-2,544
718
1,431
-1,368
209
-2,501
770
-2,160 4,770
3,768
-4,820
3,554 - 1 , 5 4 3
-3,573
275
7,612
803
862
-4,486
-847
2,842
4,271
-406
-5,455
1,037
1,561
-1,891
2,302
5,861
Selected balances
Federal securities
Treasury operating balance
End
of
period
F.R.
Banks
Tax
and
loan
accounts
Other
depositaries 5
Total
Public
debt
securities
Agency
securities
Less:
Investments of
Govt, accounts
Less:
Special
notes 3
Special
issues
Equals:
Total
held
by
public
Memo:
Debt of
Govt.sponsored
corps.—
Now
private 6
Fiscal year:
197 0
197 1
197 2
197 3
1,005
1,274
2,344
4,038
6,929
7,372
7,934
8,433
111
109
5 139
106
8,045
8,755
10,117
12,576
370,919
398,130
427,260
458,142
12,510
12,163
10,894
11,109
76,124
82,740
89,539
101,738
21,599
22,400
24,023
24,093
825
825
825
825
284,880
304,328
323,770
343,045
35,789
36,886
41,044
51,325
Calendar year:
197 2
197 3
1,856
2,543
8,907
7,760
310
70
11,073
10,374
449,298
469,898
11,770
11,586
95,924
107,135
23,164
24,467
825
825
341,155
349,058
42,640
Month:
1972—De c
1,856
8,907
310
11,073
449,298
11,770
95,924
23,164
825
341,155
43,459
11,376
11,784
12,935
14,156
8,232
12,576
7,178
3,072
8,279
5,691
4,681
10,374
450,068
454,838
458,606
457,063
457,338
458,142
459,003
461,845
461,439
462,476
464,037
469,898
11,787
11,779
11,806
11,084
11,041
11,109
11,118
11,419
11,459
11,488
11,760
11.586
95.024
95,804
96,413
96,356
98,324
101,738
102,996
106,133
105,378
105,071
101,561
107.135
23,332
23,451
23,632
23,583
23,817
24,093
23,968
24,536
24,362
24,341
27,482
24,467
825
825
825
825
825
825
825
825
825
823
825
825
342,674
346,537
349,542
347,383
345,414
343,045
342.332
341,769
342.333
343,727
345,930
349,058
43,993
45,400
45,566
47,905
49,731
51,325
52;780
54,409
56,691
59,330
59,317
1973—Ja n
Feb
Mar....
Apr
May
June
July....
Aug
Sept.. ..
Oct
Nov.. . .
Dec
2,749
2,073
2,882
4,162
3,242
4,038
2,867
847
1,626
1,839
1,945
2,543
8,317
9,401
9,744
9,683
4,679
8,433
4,203
2,217
6,582
3,781
2,666
7,760
310
310
309
311
311
106
108
8
71
71
70
70
1 Equals net expenditures plus net lending.
The decrease in Federal securities resulting from conversion to private
ownership of Govt.-sponsored corporations (totaling $9,853 million) is
not included here. In the bottom panel, however, these conversions decrease the outstanding amounts of Federal securities held by the public
mainly by reductions in agency securities. The Federal National Mortgage
Association ( F N M A ) was converted to private owership in Sept. 1968 and
the Federal intermediate credit banks (FICB) and banks for cooperatives in Dec. 1968.
3 Represents non-interest-bearing public debt securities issued to the
International Monetary Fund and international lending organizations.
New obligations to these agencies are handled by letters of credit.
2
4
Includes accrued interest payable on public debt securities, deposit
funds, miscellaneous liability and asset accounts, and seigniorage.
5 As of Jan. 3, 1972, the Treasury operating balance was redefined to
exclude the gold balance and to include previously excluded "Other depositaries" (deposits in certain commercial depositaries that have been converted from a time to a demand basis to permit greater flexibility in
Treasury cash management).
6 Includes debt of Federal home loan banks, Federal land banks, R.F.K.
Stadium Fund, F N M A (beginning Sept. 1968), and FICB and banks
for cooperatives (both beginning Dec. 1968).
NOTE.—Half years may not add to fiscal year totals due to revisions in
series that are not yet available on a monthly basis.
FEBRUARY 1974 • FEDERAL FINANCE
A 41
FEDERAL FISCAL OPERATIONS: DETAIL
(In millions of dollars)
Budget receipts
Total
Withheld
Nonwithheld
Refunds
26,236
24,262
25,679
27,019
13,240
14,522
14,143
21,866
Gross Rerefunds
ceipts
Net
total
Fiscal year:
197 0
197 1
197 2
197 3
193,743
188,392
208,649
232,225
Half year:
1972—Jan-June
July-Dec.
1973—Jan.-June
July-Dec.
115,469 44,751 20,090 13,569 51,272
688 51,152
106,062 46,056 5.784
126,165 52,034 21,235 21,179 52,091
999 58,170
124,253 52,961 6,207
Month:
1972—De c
r
18,976
21,130
18,067
15,987
25,860
16,584
28,537
18,121
21,291
25,007
17,637
20,209
21,987
1973—Ja n
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
77,416
76,490
83,200
98,093
r
7,830
8,254
8,404
8,748
8,648
8,813
9,168
8,487
9,085
7,940
8,752
9,811
8,887
61
353
4,671
768
1,494
9,124
1,444
3,735
681
451
3,903
550
261
362
27
1,104
6,833
6,185
6,433
597
354
257
135
71
66
115
Social insurance taxes
and contributions
Corporation
income taxes
Individual income taxes
90,412
86,230
94,737
103,246
8,122
12,897
8,067
3,409
11,587
3,825
12,306
8,814
9,279
11,707
9,230
10,006
9,134
35,037
30,320
34,926
39,045
2,208
3,535
2,760
2,893
Employment
taxes and
contributions 1
Payroll
taxes
Selfempl.
1,539
865
5,208
5,915
1,219
8,983
1,552
904
5,477
1,515
939
6,201
2,430 3,644 3,424
2,591 3,735 3,858
3,287 5,436 3,633
3,188 4,917 3,921
45,298
48,578
53,914
64,542
15,705
16,614
15,477
16,260
1,764
1,773
1,841
1,967
30,925
26,867
37,675
35,109
6,516
8,244
8,016
8,966
1,449
1,551
1,637
1,633
277 2,975
1,286
234
354
4,486 1,437
7,029 1 ,186
5,340 1,244
6,359 1,318
9,380 1,446
5,081 1,386
5,336 1,538
8,778 1,434
5,409 1,436
4,712 1,459
6,724 1,563
4,149 1,536
289
255
278
262
280
273
276
303
238
291
301
224
396
568
489
330
466
335
398
494
373
454
462
333
140 2,601
93
3,833
5,900
4,771
4,297
6,662
4,548
4,608
7,087
4,812
4,119
5,578
3,760
174
139
167
684
186
63
,316
444
253 2,156
145
95
382
1,357
103
177
217
24
825
158
193
342
258
296
188
202
209
230
462
287
105
Net
total
Estate Misc.
and
gift
37,190 1,942 3,465 2,700
39,751 1,948 3,673 3,206
44,088 2,032 4,357 3,437
52,505 2,371 6,051 3,614
21,664 1,312 24,445 1,877 4,736
165 2,437
15,315 1,459 22,493
23,730 1,434 30,013 2,206 3,616
201 2,974
16,589 1,494 29,965
5,772
Excise Custaxes toms
Other
Unnet
empl.
reinsur. ceipts 2
340
278
320
302
308
293
346
333
317
351
321
299
3,041 1,915
2,333 2,059
2,584 1,865
2 , 5 \ 4 2,768
r
364
244
289
360
348
264
360
409
308
597
437
501
515
Budget outlays
Period
Total
National
defense
Fiscal year:
197 2
197 3
19745
19755
231,876
246,526
274,660
304,445
Half year:
1972—Jan.-June.
July-Dec..
1973—Jan.-June.
July-Dec..
120,319 r42,583
••118,578 35,229
127,940 40,677
130,360 37,331
Month:
1972—Dec.'. . . .
1973—Ja n
Feb
Mar
Apr
May
June r . . . .
July
Aug
Sept
Oct
Nov
Dec
19,648
23,630
20,227
20,806
22,306
20,157
20,814
22,607
22,139
20,736
23,092
22,099
19,586
Intl.
affairs
78,336
76,027
80,573
87,729
6,063
6,633
6,265
6,963
6,417
6,401
8,015
4,878
6,772
6,095
6,607
6,900
6,079
r
Space
research
Agriculture
Natural
Com.
mun.
develop,
and
housing
EducaHealth
tion
and
and
welmanfare
power
Veterans
Interest
General
govt.
General
revenue
sharing
Intragovt.
transactions 4
3,786
3,182
3 ,£
4,103
3,422
3,311
3,177
3,272
7,061
6,051
4,039
2,729
3,759
556
609
3,128
11,197
12,520
13.521
13,400
4,216
4,162
5,450
5,667
10,198
10,821
10,819
11,537
81,536
91,230
108,263
126,353
10,747
12,004
13,285
13,612
20,584
22,785
27,754
29,122
4,889
5,619
6,800
6,774
-7,858
6,636 - 8 , 3 7 8
6,147 - 9 , 9 6 3
6,174 -10,717
2,034
1,639
1,542
1,617
1,645
1,676
1,635
1,501
1,062
4,616
1,435
3,472
1,807
r
330
227
763
'5,167
'6,199
6,320
7,387
2,035
2,637
1,525
3,215
'5,843
5,133
5,688
4,772
'43,405
43,212
48,018
48,978
5,744
5.740
6,264
6,518
r
10,534
r
'2,497
'2,869
2,749
3,088
-4,036
'2,617 - 4 , 0 3 9
4,019 - 4 , 3 3 9
3,032 - 4 , 7 5 3
220
284
-146
-40
828
414
960
7,709
989
1,810
415 62,617 - 2 , 4 7 4
1,546
567
1,072
793
907
1,434
2,104
1,090
957
1,260
912
1,064
483
368
270
243
-148
309
911
779
712
561
36
316
904
786
788
1,066
1,336
777
954
661
955
805
619
8,130
7,907
7,565
8,058
8,124
8,234
7,792
7,935
8,302
8,040
8,373
8,534
1,157
1,046
1,064
1,114
1,017
866
1,099
1,054
970
1,058
1,194
1,143
1,777
2,002
2,097
2,120
2,165
2,004
2,184
2,159
2,392
2,135
2,401
2,169
586
374
462
409
466
452
563
466
643
479
438
498
82
280
323
237
136
486
308
327
205
282
276
219
271
241
301
265
255
301
278
262
246
248
246
221
994
431
-77
368
-155
-1,053
230
310
324
298
-126
118
-228
942
573
422
416
424
-130
2,011
440
-35
503
782
1 Old-age, disability, and hospital insurance (including premiums for
uninsured effective July 1, 1973, as provided for in Public Law 92-603),
and Railroad Retirement accounts.
2 Supplementary medical insurance premiums (including premiums
for disabled effective July 1, 1973, as provided for in Public Law 92-603),
and Federal employee retirement contributions.
3 Deposits of earnings by Federal Reserve Banks and other miscellaneous receipts.
4
Consists of Government contributions for employee retirement and
of interest received by trust funds.
Commerce
and
transp.
10,619
12,181
2,514
9
1,493
3
1,495
-3
16
1,494
29
-15
-297
-397
-329
-324
-377
-2,616
-850
-670
-849
-850
-717
-816
5 Estimates presented in the Jan. 1975 Budget Document. Breakdowns do
not add to totals because special allowances for contingencies, Federal
pay increase (excluding Department of Defense), and acceleration of energy
research and development, totaling $300 million for fiscal 1974, and $1,561
million for fiscal 1975, are not included.
6 Outlays of $6,786 million in fiscal 1973 contain retroactive payments
of $2,600 million for fiscal 1972.
Note.—Half years may not add to fiscal year totals due to revisions in
series that are not yet available on a monthly basis.
A 42
U.S. GOVERNMENT SECURITIES • FEBRUARY 1974
GROSS PUBLIC DEBT, BY TYPE OF SECURITY
(In billions of dollars)
Public issues
End of period
Total
gross
public
debt 1
Marketable
Nonmarketable
Total
Total
Certificates
Bills
1941—Dec.
1946—Dec.
57.9
259.1
50.5
233.1
41.6
176.6
2.0
17.0
1967—Dec.
1968—Dec.
1969—Dec.
1970—Dec.
344.7
358.0
368.2
389.2
284.0
296.0
295.2
309.1
226.5
236.8
235.9
247.7
1971—Dec..
1972—Dec.
424.1
449.3
336.7
351.4
1973—Jan..
Feb.
Mar.
Apr.
May
June.
July.
Aug.
Sept.
Oct..
Nov.
Dec.
450.1
454.8
458.6
457.1
457.3
458.1
459.0
461.8
461.4
462.5
464.0
469.9
1974—Jan..
468.2
Notes
Bonds
2
Convertible
bonds
Total 3
6.0
10.1
33.6
119.5
69.9
75.0
80.6
87.9
61.4
76.5
85.4
101.2
95.2
85.3
69.9
58.6
2.6
2.5
2.4
2.4
54.9
56.7
56.9
59.1
262.0
269.5
97.5
103.9
114.0
121.5
50.6
44.1
2.3
2.3
353.2
357.1
360.4
358.9
357.1
354.6
354.2
353.8
354.1
355.5
360.5
360.7
271.1
269.9
269.8
267.8
265.9
263.0
262.7
262.4
262.4
264.0
270.2
270.2
104.9
105.0
105.0
103.2
103.0
99.8
101.6
107.7
107.8
121.5
120.2
120.2
120.2
117.8
117.8
117.8
118.7
120.7
120.7
124.6
124.6
44.7
44.6
44.6
44.5
45.1
45.1
45.0
42.0
41.9
41.8
37.8
37.8
360.1
270.1
107.8
124.6
37.7
30.0
100.1
99.9
101.8
1
Includes non-interest-bearing debt (of which $618 million on Jan.
31, 1974, was not subject to statutory debt limitation).
2
Includes Treasury bonds and minor amounts of Panama Canal and
postal savings bonds.
3
Includes (not shown separately): depositary bonds, retirement plan
bonds, and Rural Electrification Administration bonds; before 1954,
Armed Forces leave bonds; before 1956, tax and savings notes; and
before Oct. 1965, Series A investment bonds.
Foreign
issues 4
Special
Savings
bonds
& notes
6.1
49.8
7.0
24.6
3.1
4.3
3.8
5.7
51.7
52.3
52.2
52.5
57.2
59.1
71.0
78.1
72.3
79.5
16.8
20.6
54.9
58.1
85.7
95.9
2.3
2.3
2.3
2.3
2.3
2.3
2.3
2.3
2.3
2.3
2.3
2.3
79.7
84.9
88.3
88.7
88.9
89.4
89.2
89.1
89.5
89.2
88.0
88.2
20.5
25.4
28.3
28.5
28.3
28.5
28.2
27.9
28.2
27.8
26.1
26.0
58.4
58.7
59.0
59.3
59.7
59.9
60.2
60.3
60.3
60.5
60.8
60.8
95.0
95.8
96.4
96.4
98.3
101.7
103.0
105.4
105.1
101.6
107.1
2.3
87.7
25.3
61.0
106.2
8.9
56.5
106.1
4
Nonmarketable certificates of indebtedness, notes, and bonds in the
Treasury foreign series and foreign currency series issues.
5 Held only by U.S. Govt, agencies and trust funds and the Federal
home loan banks.
NOTE.—Based on Daily Statement of U.S. Treasury. See also second
paragraph in NOTE to table below.
OWNERSHIP OF PUBLIC DEBT
(Par value, in billions of dollars)
Held by private investors
Held b y End of
period
Total
gross
public
debt
U.S.
Govt,
agencies
and
trust
funds
F.R.
Banks
Total
Commercial
banks
Mutual
savings
banks
Insurance
companies
Other
corporations
State
and
local
govts.
Indiv iduals
Savings
bonds
Other
securities
Foreign
and
international 1
Other
misc.
investors 2
1939—Dec
1946—Dec
41.9
259.1
6.1
27.4
2.5
23.4
33.4
208.3
12.7
74.5
2.7
11.8
5.7
24.9
2.0
15.3
.4
6.3
1.9
44.2
7.5
20.0
.2
2.1
.3
9.3
1967—Dec
1968—Dec
1969—Dec
1970—Dec
344.7
358.0
368.2
389.2
73.1
76.6
89.0
97.1
49.1
52.9
57.2
62.1
222.4
228.5
222.0
229.9
63.8
66.0
56.8
62.7
4.1
3.6
2.9
2.8
8.6
8.0
7.1
7.0
12.2
14.2
'10.4
'7.3
24.1
'24.9
'27.2
'27.8
51.2
51.9
51.8
52.1
22.8
23.9
29.6
29.8
15.8
14.3
11.2
20.6
19.9
'21.9
25.0
'19.9
1971—Dec
1972—Dec
424. 1
449.3
106.0
116.9
70.2
69.9
247.9
262.5
65.3
67.7
2.7
2.6
6.6
6.0
'11.4
'9.8
'25.4
'28.9
54.4
57.7
19.6
17.0
46.9
55.3
'15.6
'17.6
1973—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
450.1
454.8
458.6
457.1
457.3
458.1
459.0
461.8
461.4
462.5
464.0
469.9
116.2
117.1
117.9
117.9
120.1
123.4
125.0
128.7
127.8
127.4
127.1
129.6
72.0
72.6
74.3
75.5
74.1
75.0
77.1
76.1
76.2
78.5
77.1
78.5
261.8
265.1
266.4
263.7
263. 1
259.7
256.9
257.1
257.4
256.5
259.8
261.7
66.4
62.8
'62.0
r
60.5
'58.9
'58.8
'56.5
'55.1
'55.4
'56.3
58.5
60.3
2.6
2.6
2.5
2.5
2.4
2.4
2.2
2.1
2.0
2.0
2.0
6.1
5.8
5.9
5.7
5.7
5.7
5.8
5.7
5.7
5.6
5.6
'10.3
'10.9
'11.2
'10.0
'10.8
'9.8
'10.3
'11.5
'9.2
'10.2
11.1
10.9
'30.0
'29.4
'29.4
'29.2
'28.6
'28.8
'28.4
'27.7
'29.0
'28.5
28.9
29.2
58.0
58.3
58.6
58.9
59.2
59.5
59.7
59.8
59.8
60.0
60.3
'17.0
'16.8
'16.8
'16.6
'16.5
16.4
'17.0
'17.2
'17.3
'17.0
16.9
16.9
54.2
61.1
63.1
61.7
61.1
60.2
59.7
59.2
58.5
57.5
56.2
'17.4
'17.4
'17.0
'18.7
'19.9
'18. 1
'17.3
'18.8
'20.4
'19.4
20.4
20.8
r
r
r
1
Consists of investments of foreign and international accounts in
the United States.
2
Consists of savings and loan assns., nonprofit institutions, corporate pension trust funds, and dealers and brokers. Also included
are certain Govt, deposit accounts and Govt.-sponsored agencies.
NOTE.—Reported data for F.R. Banks and U.S. Govt, agencies and
trust funds; Treasury estimates for other groups.
The debt and ownership concepts were altered beginning with the
Mar. 1969 BULLETIN. The new concepts ( 1 ) exclude guaranteed securities and ( 2 ) remove from U . S . Govt, agencies and trust funds
and add to other miscellaneous investors the holdings of certain
Govt.-sponsored but privately owned agencies and certain Govt, deposit
accounts.
FEBRUARY 1974 • U.S. GOVERNMENT SECURITIES
A 43
OWNERSHIP OF MARKETABLE SECURITIES, BY MATURITY
(Par value, in millions of dollars)
Within 1 year
1-5
years
5-10
years
10-20
35,500
21,636
26,552
31,684
33,785
82,318
93,648
88,564
83,817
81,715
22,554
29,321
29,143
25,136
25,134
8,556
9,530
15,301
15,679
15,659
708
605
674
3,570
631
2,297
775
935
1,591
1,589
6,075
7,614
6,418
7,789
7,714
3,877
4,676
5,487
4,405
4,389
1,748
2,319
4,317
5,008
5,019
36,338
36,032
37,750
44,709
46,189
25,965
31,033
20,745
35,471
36,928
10,373
4,999
8,005
9,239
9,261
19,089
25,299
24,497
23,109
23,062
6,046
7,702
6,109
7,543
7,504
229
584
1,414
1,584
1,577
168,479
173,376
180,243
169,121
170,746
84,080
81,729
91,063
89,563
93,162
61,250
65,867
73,451
68,708
70,227
22,830
15,862
17,612
20,854
22,935
57,154
60,735
57,649
52,919
50,939
12,631
16,943
17,547
13,188
13,241
6,579
6,627
9,570
9,087
9,063
50,917
51,363
52,440
44,135
45,737
19,208
14,920
18,077
15,048
17,499
10,314
8,287
10,289
6,336
7,901
8,894
6,633
7,788
8,712
9,598
26,609
28,823
27,765
24,027
22,878
4,474
6,847
5,654
3,909
4,022
367
555
864
900
1,065
Mutual savings banks:
1970—Dec. 31
1971—Dec. 31
1972—Dec. 31
1973—Nov. 30
Dec. 31
2,745
2,742
2,609
1,968
1,955
525
416
590
526
562
171
235
309
231
222
354
181
281
295
340
1,168
1,221
1,152
777
750
339
499
469
220
211
329
281
274
308
300
Insurance companies:
1970—Dec. 31
1971—Dec. 31
1972—Dec. 31
1973—Nov. 30
Dec. 31
6,066
5,679
5,220
4,803
4,956
893
720
799
779
456
325
448
238
312
437
395
351
443
467
1 ,723
1,499
1,190
1,058
1,073
849
993
976
1,232
1,278
1,369
1,366
1,593
1,306
1,301
Nonfinancial corporations:
1970—Dec. 31
1971—Dec. 31
1972—Dec. 31
1973—Nov. 30
Dec. 31
3,057
6,021
4,948
5,637
4,905
1,547
4,191
3,604
3,623
3,295
1,194
3,280
1,198
1,850
1,695
353
911
2,406
1,773
1,600
1,260
1,492
1,198
1,622
1,281
242
301
121
292
260
2
16
25
72
54
Savings and loan
1970—Dec.
1971—Dec.
1972—Dec.
1973—Nov.
Dec.
3,263
3,002
2,873
2,240
2,103
583
629
820
583
576
220
343
498
143
121
363
286
322
440
455
1,899
1,449
1,140
1,045
1,011
281
587
605
325
320
243
162
226
212
151
11,204
9,823
10,904
9,838
9,829
5,184
4,592
6,159
5,890
5,845
3,803
3,832
5,203
4,743
4,483
1,381
760
956
1,147
1,362
2,458
2,268
2,033
1,771
1,870
774
783
816
790
778
1,191
918
1,298
1,036
1,003
91,227
94,746
101,249
100,500
101,261
56,140
56,261
61,014
63,212
64,606
45,092
49,565
55,506
55,167
55,493
11,048
6,696
5,508
8,044
9,113
22,037
23,983
23.171
22^ 619
22,076
5,672
6,933
8,906
6,420
6,372
3,078
3,329
5,290
5,253
5,189
Type of holder and date
Total
Total
Bills
247,713
262,038
269,509
270,234
270,224
123,423
119,141
130,422
139,433
141,571
87,923
97,505
103,870
107,749
107,786
U.S. Govt, agencies and trust funds:
1970—Dec. 31
1971—Dec. 31
1972—Dec. 31
1973—Nov. 30
Dec. 31
17,092
18,444
19,360
23,984
20,962
3,005
1,380
1,609
5,161
2,220
Federal Reserve Banks:
1970—Dec. 31
1971—Dec. 31
1972—Dec. 31
1973—Nov. 30
Dec. 31
62,142
70,218
69,906
77,129
78,516
All holders:
1970—Dec.
1971—Dec.
1972—Dec.
1973—Nov.
Dec.
31
31
31
30
31
Held by private investors:
1970—Dec. 31
1971—Dec. 31
1972—Dec. 3 1 . . .
1973—Nov. 30
Dec. 31
Commercial banks:
1970—Dec. 31
1971—Dec. 31
1972—Dec. 31
1973—Nov. 30
Dec. 31
associations:
31
31
31
30
31
State and local governments:
1970—Dec. 31
1971—Dec. 31
1972—Dec. 31
1973—Nov. 30
Dec. 31
All others:
1970—Dec.
1971—Dec.
1972—Dec.
1973—Nov.
Dec.
31
31
31
30
31
681
NOTE.—Direct public issues only. Based on Treasury Survey of
Ownership.
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: (1) 5,607 commercial banks, 479 mutual savings
years
Other
banks, and 735 insurance companies combined, each about 90 per cent;
(2) 464 nonfinancial corporations and 485 savings and loan assns., each
about 50 per cent; and (3) 505 State and local govts., about 40 per cent.
"All others," a residual, includes holdings of all those not reporting
in the Treasury Survey, including investor groups not listed separately.
A 44
U.S. GOVERNMENT SECURITIES • FEBRUARY 1974
DAILY-AVERAGE DEALER TRANSACTIONS
(Par value, in millions ot dollars)
U.S. Government securities
By maturity
By type of customer
U.S. Govt.
agency
securities
Period
Total
Within
1 year
5-10
years
1-5
years
U.S. Govt, | U.S. Govt,
securities
securities
dealers
brokers
Over
10 years
Commercial
banks
All
otheri
1
1972—Dec
3,184
2,640
361
118
1973—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
3,158
4,155
3,077
3,185
3,187
2,969
2,993
3,366
3,884
3,384
4,022
3,889
2,445
2,975
2,311
2,535
2,390
2,335
2,330
2,403
3,021
2,798
3,001
3,167
443
721
508
440
322
289
367
706
644
374
485
348
148
370
201
165
323
228
226
172
158
163
447
317
4,007
4,528
4,321
3,032
3,305
3,724
3,528
2,463
353
388
374
285
3,208
2,528
2,564
2,889
2,745
3.694
315
322
341
330
273
|
,'
!
65
757
352
1,215
860
472
122
89
57
46
153
118
72
85
61
48
89
58
793
888
713
709
661
593
581
566
583
568
655
675
470
808
585
636
543
622
632
874
1,182
954
1,188
1,051
1,113
1,360
987
1,075
1,057
975
982
1,044
1,142
1,073
1,173
1,123
781
1,099
792
766
927
778
798
881
977
789
1,007
1,040
463
645
664
714
687
732
700
771
1,048
810
810
869
278
378
327
241
69
39
94
44
631
776
772
527
1,094
1,502
1,108
687
1,230
1,215
1,252
913
1,050
1,036
1,191
906
989
854
1,224
716
315
215
244
212
143
50
39
46
37
50
552
620
671
615
865
589
706
914
865
955
981
963
1,000
996
1,361
1,087
852
936
846
979
520
735
540
813
638
i
|
i
Week ending—
1973—Dec.
5
12
19
26
1974—Jan.
2
9
16
23
30
3,141
3,521
3,323
4,160
1
Since Jan. 1972 has included transactions of dealers and brokers in
securities other than U.S. Govt.
NOTE.—The transactions data combine market purchases and sales of
U.S. Govt, securities dealers reporting to the F.R. Bank of New York.
They do not include allotments of, and exchanges for, new U.S. Govt,
securities, redemptions of called or matured securities, or purchases or
sales of securities under repurchase agreement, reverse repurchase (resale),
or similar contracts. Averages of daily figures based on the number of
trading days in the period.
DAILY-AVERAGE DEALER POSITIONS
DAILY-AVERAGE DEALER FINANCING
(Par value, in millions of dollars)
(In millions of dollars)
U.S. Government securities, by maturity
Period
All
Within
1
maturities
year
1-5
years
5-10
years
Over
10
years
U.S.
Govt.
agency
securities
Commercial banks
All
sources
Period
New
York
City
Elsewhere
Corporations 1
All
other
1972—Dec
4,973
4,903
73
37
556
1972—De c
4,848
1,695
944
1,399
1973—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
4,744
3,394
2,702
2,795
2,626
2,976
1,901
1,788
3,201
3,073
3,618
4,441
4,959
3,365
3,130
3,105
2,596
2,818
2,062
1,977
2,958
2,858
3,034
3,697
-53
-9
-274
-159
-324
-165
-250
-94
316
93
95
223
-259
-1
-143
-143
179
91
-43
-107
-111
56
350 !
396
97
39
-11
-9
175
232
131
12
38
67
139
124
281
202
180
274
356
744
511
273
799
904
1,185
1,400
1973—Ja n
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
4,520
3,415
2,799
3,032
2,667
3,769
2,826
2,318
4,244
3,721
4,469
5,468
1,346
1,063
903
935
674
1,242
725
829
1,620
1,253
1,809
2,322
794
455
292
513
452
690
544
327
877
918
900
1,147
932
490
281
311
252
431
510
386
441
328
570
671
1,449
1,408
1,323
1,273
1,291
1,406
1,047
777
1,306
1,223
1,190
1,329
7
14. . .
21
28 . . . .
4,300
3,851
3,211
3,022
3,295
3,237
2,836
2,583
327
60
-50
76
521
391
291
246
157
161
135
117
1,163
1,197
1,125
1,188
1973—Nov.
7.
14.
21.
28.
4,919
4,841
4,149
4,103
2,213
1,951
1,554
1,595
1,067
862
864
835
559
624
489
572
1,081
1,403
1,242
1,101
5
12. .
19...
26..,
3,858
4,660
4,961
4,460
3,361
4,021
4,048
3,565
117
168
291
301
277
381
485
431
103
90
137
163
1.255
1,203
1,477
1,666
Dec.
5.
12.
19.
26.
4,344
5,464
5,790
5,936
1,619
2,456
2,618
2,492
896
1,195
1,202
1,119
620
588
693
823
1,210
1,225
1,279
1,502
-41
Week ending—
1973—Nov.
Dec.
Week ending—
.
.
.
NOTE.—The figures include all securities sold by dealers under repurchase contracts regardless of the maturity date of the contract, unless the
contract is matched by a reverse repurchase (resale) agreement or delayed
delivery sale with the same maturity and involving the same amount of
securities. Included in the repurchase contracts are some that more
clearly represent investments by the holders of the securities rather than
dealer trading positions.
Average of daily figures based on number of trading days in the period.
1
All business corporations, except commercial banks and insurance
companies.
NOTE.—Averages of daily figures based on the number of calendar days
in the period. Both bank and nonbank dealers are included. See also
NOTE to the table on the left.
FEBRUARY 1974 • U.S. GOVERNMENT SECURITIES
A 45
U.S. GOVERNMENT MARKETABLE AND CONVERTIBLE SECURITIES, JANUARY 31, 1974
(In millions of dollars)
Issue and coupon rate
Amount
Treasury bills
Feb. 7, 1974.
Feb. 12, 1974.
Feb. 14, 1974.
Feb. 21, 1974.
Feb. 28, 1974.
Mar. 7, 1974.
Mar. 12, 1974.
Mar. 14, 1974.
Mar. 21, 1974.
Mar. 28, 1974.
Apr. 4, 1974.
Apr. 9, 1974.
Apr. 11, 1974.
Apr. 18, 1974.
Apr. 19, 1974f
Apr. 25, 1974.
May 2, 1974.
May 7, 1974.
May 9, 1974.
May 16, 1974.
May 23, 1974.
May 30, 1974.
June 4, 1974..
June 6, 1974.
June 13, 1974.
June 20, 1974.
June 21, 1974f
Issue and coupon rate
Treasury bills—Cont.
4,303
June 27, 1974
July
2,1974
1,801
July
5, 1974
4,309
July 11, 1974
4,254
July 18, 1974
4.303
July 25, 1974
4,320
1,790
July 30, 1974
4.304
Aug. 1, 1974
Aug. 27, 1974
4.305
Sept. 24, 1974
4,327
Oct. 22, 1974
4,302
Nov. 19, 1974
1,802
Dec- 17, 1974
4,308
Jan. 14, 1974
4,304
3,009
4.307
4.308 Treasury notes
1,800
Feb. 15, 1974
1,801
Apr. 1, 1974
1,801
May 15, 1974
1,800
Aug. 15, 1974
1.798
Sept. 30, 1974
1,801
Oct.
1, 1974
1,801
Nov. 15, 1974
1,801
Dec. 31, 1974
1.799
Feb. 15, 1975
2,000
Feb. 15, 1975
Apr. 1, 1975
Issue and coupon rate
Treasury notes—Cont.
May 15, 1975
5%
May 15, 1975
6
Aug. 15, 1975
57/g
Sept. 30, 1975
SYs
Oct.
1, 1975
UA
Nov. 15, 1975
7
Dec. 31, 1975
7
Feb. 15, 1976
6%
Feb. 15, 1976
5%
Apr. 1, 1976
May 15, 1976
534
May 15, 1976
6%
Aug. 15, 1976
7i/i
Aug. 15, 1976
6ft
Oct.
1, 1976
VA
Nov. 15, 1976
6y 4
Feb. 15, 1977
8
2,960
Apr. 1,1977
UA
34
Aug. 15, 1977
7V4
4,334
Oct.
1, 1977
IVi
10,284
Feb. 15, 1978
6V4
2,060
Apr. 1, 1978
1%
42
Oct.
1, 1978
H/i
5,442
Nov. 15, 1978
6
2,102
Aug. 15, 1979
6Va
4,015
Nov. 15, 1979
65/g
1,222
Nov. 15, 1979
7
8
May 15, 1980
6%
1,802
1,802
1.803
1,809
1,811
1,798
1.804
1,803
1.805
1,802
1,802
1,801
1,803
1,802
7%
1 Vi
IVa
5%
6
1*6
5V4
5%
5y 4
5%
1 Vi
t Tax-anticipation series.
Amount
Issue and coupon rate
Treasury bonds
Feb. 15, 1974
4i/ 8
May 15, 1974
4*4
Nov. 15, 1974
37/8
May 15, 1 9 7 5 - 8 5 . . 4%
June 15, 1 9 7 8 - 8 3 . . 3 y 4
Feb. 15, 1980
4
Nov. 15, 1980
3%
Aug. 15, 1981
7
Feb. 15, 1982
6%
Aug. 15, 1984
63/g
May 15, 1985
3y 4
Nov. 15, 1986
6i/ 8
Aug. 15, 1987-92. .4%
Feb. 15, 1 9 8 8 - 9 3 . . 4
11
May 15, 1989-94. .41/ 8
4,325
Feb. 15, 1990
3%
5,163
Feb. 15, 1993
6y 4
5
Aug. 15, 1993
IK
4,918
Feb. 15, 1995
3
17
May 15, 1 9 9 3 - 9 8 . . 7
8,389
Nov. 15, 1998
3Vi
15
2
8,207
4,559 Convertible bonds
1,604
Investment Series B
2,244
Apr. 1, 1 9 7 5 - 8 0 . . 2 y 4
7,265
1,776
6,760
7,679
2,042
30
3,115
1,731
3,739
4,945
27
2,802
2,697
4,194
3,883
2,466
2,848
1,214
1,202
1,481
2,574
1,896
807
2,702
2,353
952
1,216
3,690
228
1,466
3,964
627
1,364
839
692
3,102
2,273
NOTE.—Direct public issues only. Based on Daily Statement of U . S .
Treasury.
NEW ISSUES OF STATE AND LOCAL GOVERNMENT SECURITIES
(In millions of dollars)
All issues (new capital and refunding)
Type of issue
Period
General
obligations
196 4
196 5
196 6
196 7
196 8
196 9
197 0
197 1
197 2
Revenue
10,847
11,329
11,405
14,766
16,596
11,881
18,164
24,962
23,652
6,417
7,177
6,804
8,985
9,269
7,725
11,850
15,220
13,305
3,585
3,517
3,955
5,013
6,517
3,556
6,082
1972—Nov.. .
Dec....
1,862
1,797
1,147
872
711
653
1973—Jan....
Feb....
Mar....
Apr—
May...
June...
July...
Aug....
Sept....
Oct....
1,974
1,500
2,451
1,817
1,920
2,138
2,003
1,528
1,675
2,257
1,149
768
1,227
866
819
1,016
1,455
951
698
1,309
822
731
916
r
941
1,093
856
542
575
682
942
8,681
9,332
HAAl
Issues for new capital
Type of issuer
U.S.
Govt,
loans
State
Special
district
and
Other 2
stat.
auth.
959
208
170
312
334
282
197
103
62
57
1,628
2,401
2,590
2,842
2,774
3,359
4,174
5,999
4,991
3,812
3,784
4,110
4,810
5,946
3,596
5,595
8,714
9,496
5,407
5,144
4,695
7,115
7,884
4,926
8,399
10,246
9,165
268
5
4
425
147
572
754
3
1
6
9
8
5
6
2
2
6
602
47
613
159
291
189
516
452
236
337
454
561
914
730
931
1,076
349
477
794
823
637
464
325
477
528
402
131
1,000
303
261
'293
1
Only bonds sold pursuant to 1949 Housing Act, which are secured
by contract requiring the Housing Assistance Administration to make
annual contributions to the local authority.
2
Municipalities, counties, townships, school districts.
3
Excludes U.S. Govt, loans. Based on date of delivery to purchaser
2nd payment to issuer, which occurs after date of sale.
r
r
Total
amount
delivered 3
Use of proceeds
Total
Education
Roads
and
bridges
Utilities 4
Hous- Veter- Other
ans'
purings
aid
poses
10,201
10,471
11,303
14,643
16,489
11,838
18,110
24,495
22,073
3,392
3,619
3,738
4,473
4,820
3,252
5,062
5,278
4,981
688
900
1,476
1,254
1,526
1,432
1,532
2,642
1,689
2,437
1,965
1,880
2,404
2,833
1,734
3,525
5,214
4,638
727
626
533
645
787
543
466
2,068
1,910
120 2,838
50 3,311
3,667
5,867
6,523
4,884
7,526
9,293
6,741
866
895
1,762
1,507
312
351
215
21
365
204
56
332
814
599
919
892
924
1,806
1,399
2,194
1,751
1,756
2,130
1,982
1,475
1,608
2,116
369
365
373
306
299
538
392
263
306
287
215
r
66
153
12
232
102
231
29
64
142
418
406
497
448
422
639
360
331
571
392
117
10
347i
88
222'
334
3
290
390
250
689
551
823
897
580
517
996
563
277
1,047
926
r
698
874
1,138
600
645
1,098
4
5
10,069
11,538
Water, sewer, and other utilities.
Includes urban redevelopment loans.
NOTE.—Security Industries Assn. data; par amounts of long-term issues
based on date of sale unless otherwise indicated.
Components may not add to totals due to rounding.
A 46
SECURITY ISSUES • FEBRUARY 1974
TOTAL NEW ISSUES
(In millions of dollars)
Gross proceeds, all issues 1
Noncorporate
Corporate
Period
Total
U.S.
Govt. 2
U.S.
Govt.
agency 3
State
and local
(U.S.) 4
Bonds
Other 5
Stock
Total
Total
Privately
placed
Publicly
offered
Preferred
Common
1964
37,122
10,656
1,205
10,544
760
13,957
10,865
3,623
7,243
412
2,679
1965,
1966,
1967,
1968,
1969.
40,108
45,015
68,514
65,562
52,496
9,348
8,231
19,431
18,025
4,765
2,731
6,806
8,180
7,666
8,617
11,148
11,089
14,288
16,374
11,460
889
815
1,817
1,531
961
15,992
18,074
24,798
21,966
26,744
13,720
15,561
21,954
17,383
18,347
5,57G
8,018
14,990
10,732
12,734
8,150
7,542
6,964
6,651
5,613
725
574
885
637
682
1,547
1,939
1,959
3,946
7,714
1970.
1971.
1972
88,666
105,233
96,522
14,831
17,325
17,080
16,181
16,283
12,825
17,762
24,370
23,070
949
2,165
1,589
38,945
45,090
41,957
30,315
32,123
28,896
25,384
24,775
19,434
4,931
7,354
9,462
1,390
3,670
3,367
7,240
9,291
9,694
1972-—Nov
Dec
10,987
8,210
3,590
2,553
2,134
200
1,816
1,760
70
302
3,377
3,396
2,343
2,625
1,361
1,024
982
1,601
154
272
880
498
1973-—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
6,523
7,325
9,029
6,567
11,225
7,943
7,643
8,019
8,091
8,901
12,311
1,199
1,603
606
564
3,353
559
490
3,097
2,432
485
4,521
993
2,261
1,826
1,640
3,442
1,706
2,471
1,600
2,100
2,612
2,200
1,889
1,445
2,304
1,688
1,870
2,046
1,992
1,414
1,630
2,232
2,165
116
53
359
178
17
53
48
22
15
195
45
2,327
1,962
3,933
2,497
2,543
3,578
2,631
1,806
1,915
3,377
3,380
1,276
957
2,116
1,739
1,721
2,757
1,870
1,382
1,366
2,314
2,106
989
641
1,315
938
1,049
1,358
857
792
684
1,807
1,669
287
316
802
801
672
1,398
1,013
590
682
507
437
137
172
833
200
187
216
226
94
119
355
630
913
832
984
558
635
606
536
330
430
707
644
Gross proceeds, major groups of corporate issuers
Period
Manufacturing
Commercial and
miscellaneous
Transportation
Public utility
Communication
Real estate
and financial
Bonds
Stocks
Bonds
Stocks
Bonds
Stocks
Bonds
Stocks
Bonds
Stocks
Bonds
Stocks
196 4
196 5
196 6
2,819
4,712
5,861
228
704
1,208
902
1,153
1,166
220
251
257
944
953
1,856
38
60
116
2,139
2,332
3,117
620
604
549
669
808
1,814
1,520
139
189
3,391
3,762
1,747
466
514
193
196 7
196 8
196 9
197 0
197 1
197 2
9,894
5,668
4,448
9,192
9,426
4,821
1,164
1,311
1,904
1,320
2,152
1,809
1,950
1,759
1,888
1,963
2,272
2 ,.645
117
116
3,022
2,540
2,390
2,882
1,859
1,665
1,899
2,213
1,998
2,862
466
1,579
247
47
420
185
4,217
4,407
5,409
8,016
7.605
6,392
718
873
1,326
3,001
4,195
4,965
1,786
1,724
1,963
5,053
4,227
3,692
193
43
225
83
1,592
1,125
2,247
2,159
2,739
3,878
6,601
8,485
186
662
1,671
1,638
2,212
2,095
1972—Nov
Dec
346
486
79
103
429
343
271
149
61
214
8
25
322
491
472
370
657
34
1
528
1,057
202
107
1973
113
178
772
772
387
703
364
230
270
462
343
63
35
125
22
12
25
169
49
78
72
68
89
118
177
237
30
133
139
149
149
54
51
105
111
327
139
143
89
112
129
96
147
91
120
96
317
91
236
183
250
83
140
98
226
1
4
6
1
8
529
319
1,076
150
361
1,099
651
419
334
337
584
371
277
1,351
369
410
497
269
90
252
608
489
30
58
548
258
355
303
244
320
228
633
296
395
290
1,462
743
351
337
223
182
244
731
605
509
461
1,397
228
231
181
151
136
106
192
123
Jan
Feb....
Mar
Apr
June
July
Aug
Sept
Oct
Nov
1
Gross proceeds are derived by multiplying principal amounts or
number of units by offering price.
2
Includes guaranteed issues.
3
Issues not guaranteed.
4
See NOTE to table at bottom of preceding page.
15
2
4
17
1173
668
19
29
60
5
16
46
499
5 Foreign governments and their instrumentalities, International Bank
for Reconstruction and Development, and domestic nonprofit organizations.
NOTE.—Securities and Exchange Commission estimates of new issues
maturing in more than 1 year sold for cash in the United States.
FEBRUARY 1974 • SECURITY ISSUES
A 47
NET CHANGE IN OUTSTANDING CORPORATE SECURITIES
(In millions of dollars)
Derivation of change, all issuers 1
All securities
Period
Bonds and notes
Common and preferred stocks
New issues
Retirements
Net change
New issues
Retirements
Net change
New issues
Retirements
Net change
1968
1969
1970
1971
1972
25,439
28,841
38,707
46,687
42,306
12,377
10,813
9,079
9,507
10,224
13,062
18,027
29,628
37,180
32,082
19,381
19,523
29,495
31,917
27,065
5,418
5,767
6,667
8,190
8,003
13,962
13,755
22,825
23,728
19,062
6,057
9,318
9,213
14,769
15,242
6,959
5,045
2,411
1,318
2,222
-900
4,272
6,801
13,452
13,018
1972—III
IV
9,776
10,944
2,212
2,932
7,564
8,012
6,118
6,998
1,603
2,207
4,515
4,790
3,659
3,946
609
725
3,049
3,220
1973—1
II
Ill
8,219
9,418
6,638
2,806
2,470
2,150
5,412
6,947
4,488
4,198
5,769
4,521
1,781
1,664
1,579
2,417
4,106
2,941
4,020
3,648
2,118
1,025
806
571
2,995
2,842
1,547
Type of issues
Commercial
and other 2
Manufacturing
1
2
3
Transportation 3
Bonds
& notes
Stocks
Bonds
& notes
Stocks
Bonds
& notes
3,747
6,641
6,585
1 ,-995
69
870
2,534
2,094
1,075
853
827
1,409
1,558
1,778
2,290
2,471
946
1,104
900
711
479
116
530
290
459
575
673
479
135
632
165
63
-2
450
-174
119
108
377
327
247
Communication
Public
utility
Real estate
and financial
1
Bonds
& notes
Stocks
Bonds
& notes
Stocks
Bonds
& notes
Stocks
186
36
800
254
4,464
6,861
6,486
5,137
1,353
2,917
4,206
4,844
1,834
4,806
3,925
3,343
241
94
1,600
1,260
1,687
2,564
5,005
7,045
866
1,107
2,017
2,096
138
179
28
47
1,410
1,056
1,061
1,735
573
944
305
89
1,456
1,920
453
580
127
327
414
-43
7
-44
844
1,136
1,217
1,170
1,276
557
520
842
752
185
562
77
965
1,049
284
1,244
673
260
Excludes investment companies.
Extractive and commercial and miscellaneous companies.
Railroad and other transportation companies.
NOTE.—Securities and Exchange Commission estimates of cash transactions only. As contrasted with data shown on opposite page, new issues
Stocks
exclude foreign sales and include sales of securities held by affiliated companies, special offerings to employees, and also new stock issues and cash
proceeds connected with conversions of bonds into stocks. Retirements
are defined in the same way and also include securities retired with internal funds or with proceeds of issues for that purpose.
OPEN-END INVESTMENT COMPANIES
(In millions of dollars)
Year
Sales and redemption
of own shares
Assets (market value
at end of period)
Month
Sales i
Redemptions
Net
sales
Total
2
Cash
position
3
Other
1961
1962
1963
2,951
2,699
2,460
1,160
1,123
1,504
1,791
1,576
952
22,789
21,271
25,214
980
1,315
1,341
21,809
19,956
23,873
1964
1965
1966
3,404
4,359
4,671
1,875
1,962
2,005
1,528
2,395
2,665
29,116
35,220
34,829
1,329
1.803
2,971
27,787
33,417
31,858
1967
1968
1969
4,670
6,820
6,717
2,745
3,841
3,661
1,927
2,979
3,056
44,701
52,677
48,291
2,566
3,187
3,846
42,135
49,490
44,445
1970
1971
1972
4,624
5,145
4,892
2,987
4,751
6,563
1,637
774
-1,671
47,618
56,694
59,831
3,649
3,163
3,035
43,969
53,531
56,796
1
Includes contractual and regular single-purchase sales, voluntary and
contractual accumulation plan sales, and reinvestment of investment income dividends; excludes reinvestment of realized capital gains dividends.
2
Market value at end of period less current liabilities.
Sales and redemption
of own shares
Sales
1
Redemptions
Net
sales
Assets (market value
at end of period)
Total
2
Cash
position
3
Other
1972—Dec.. .
449
619
-170
59,831
3,035
56,796
1973—Jan. . .
Feb...
Mar...
Apr...
May..
June..
July. .
Aug. .
Sept...
Oct.. .
Nov...
Dec...
535
327
519
300
285
303
364
239
330
305
502
349
666
530
531
452
446
349
357
432
395
559
542
392
-131
-203
-12
-120
-161
-46
-7
-193
-65
-254
-40
-43
56,946
54,083
53,377
50,837
48,588
48,127
50,933
49,553
52,322
51,952
45,814
46,518
3,015
3,375
3,774
3,837
4,154
4,164
4,594
4,567
4,641
4,168
4,126
4,002
53,931
50,708
49,603
46,464
44,434
43,963
46,339
44,986
47,681
47,784
41,688
42,516
3
Cash and deposits, receivables, all U.S. Govt, securities, and other
short-term debt securities, less current liabilities.
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.
A 48
BUSINESS FINANCE • FEBRUARY 1974
CORPORATE PROFITS, TAXES, AND DIVIDENDS
(In billions of dollars)
Profits
before
taxes
Income
taxes
Profits
after
taxes
Cash
dividends
Undistributed
profits
Corporate
capital
consumption
allowances 1
Quarter
Profits
before
taxes
Income
taxes
Profits
after
taxes
Cash
dividends
Undistributed
profits
Corporate
capital
consumption
allowances 1
1966
1967
84.2
79.8
34.3
33.2
49.9
46.6
20.8
21.4
29.1
25.3
39.5
43.0
1971—III....
IV....
87.0
86.9
38.0
36.4
49.0
50.6
25.2
24.9
23.7
25.7
61.0
62.1
1968
1969
1970
1971
1972
87.6
84.9
74.0
85.1
98.0
39.9
40.1
34.8
37.4
42.7
47.8
44.8
39.3
47.6
55.4
23.6
24.3
24.7
25.1
26.0
24.2
20.5
14.6
22.5
29.3
46.8
51.9
56.0
60.4
65.9
1972—1
II .
III....
IV....
92.8
94.8
98.4
106.1
40.6
41.4
42.9
45.9
52.2
53.4
55.6
60.3
25.7
25.9
26.2
26.4
26.5
27,5
29.4
33.9
63.4
66.2
66.0
68.0
1973—1. , ,
II
III....
119.6
128.9
129.0
52.7
57.4
57.6
66.9
71.6
71.5
26.9
27.3
28.1
40.0
44.2
43.4
69.3
70.5
71.7
Year
1
Includes depreciation, capital outlays charged to current accounts, and
accidental damages.
NOTE.—Dept. of Commerce estimates.
adjusted annual rates.
Quarterly data are at seasonally
CURRENT ASSETS AND LIABILITIES OF NONFINANCIAL CORPORATIONS
(In billions of dollars)
Current assets
End of period
196 8
1969
Net
working
capital
182.3
185.7
1970—IV
187.8
1971—1..
II.
III
IV
192.0
196.5
200.9
204.9
1972—1..
II.
III
IV
1973—1..
II.
Ill
Total
426.5
473.6
490.4
Cash
48.2
47.9
49.7
U.S.
Govt,
securities
Current liabilities
Notes and accts.
receivable
U.S.
Govt, i
5.1
168.8
10.6
4.8
192.2
7.6
4.2
200.6
7.8
7.7
7.8
10.4
209.6
215.2
219.3
224.3
494.1
498.2
507.2
516.7
526.0
534.3
545.5
561.1
55.3
55.7
57.3
60.3
231.4
237.8
241.8
577.1
594.7
611.4
61.0
62.2
62.0
Other
9.9
8.7
7.6
9.7
4.2
3.9
3.9
3.5
3.4
2.8
2.9
3.4
201.3
203.3
206.5
207.5
211.4
216.3
222.5
228.9
10.4
9.4
9.2
3.2
2.9
3.0
234.0
243.7
252.2
1
Receivables from, and payables to, the U.S. Govt, exclude amounts
offset against each other on corporations' books.
U.S.
Govt. 1
Other
Accrued
Federal
income
taxes
162.4
196.9
14.3
12.6
61.0
76.0
Total
Other
11.5
48.5
51.1
52.4
55.3
Notes and accts.
payable
Inventories
Other
166.0
186.4
26.9
31.6
244.2
287.9
6.4
196.0
32.4
302.6
6.6
200.5
11.8
83.7
198.5
199.2
201.6
203.1
33.8
33.1
34.9
36.8
302.1
301.7
306.3
311.8
13.7
12.4
13.8
14.5
86.6
88.3
90.1
89.7
207.2
210.7
215.2
218.2
38.9
40.1
39.8
40.7
316.4
319.1
326.2
336.8
6.1
5.3
5.0
4.9
4.9
4.9
4.7
4.0
195.7
195.8
197.4
202.8
202.5
204.0
207.6
216.9
15.7
13.4
15.0
16.7
93.3
96.8
98.9
99.2
225.9
233.5
241.5
42.5
43.0
43.5
345.7
356.9
369.6
4.1
4.5
4.4
218.1
227.6
235.7
18.6
16.5
18.1
104.9
108.3
111.4
7.3
NOTE : Based on Securities and Exchange Commission estimates.
BUSINESS EXPENDITURES ON NEW PLANT AND EQUIPMENT
(In billions of dollars)
Manufacturing
Period
Total
Durable
Nondurable
75.56
79.71
81.21
88.44
100.08
15.96
15.80
14.15
15.64
19.39
15.72
16.15
15.84
15.72
18.61
1971—III
IV
20.14
22.79
3.40
4.12
1972—1
II
Ill
IV
19.38
22.01
21.86
25.20
1973—1
II
Ill
IV 2
1974—12
1969
1970
1971
1972
1973 2
1
2
Transportation
Communications
Gas
and other
Railroad
Air
Other
Electric
1.86
1.89
2.16
2.45
2.76
1.86
1.78
1.67
1.80
1.94
2.51
3.03
1.88
2.46
2.41
1.68
1.23
1.38
1.46
1.60
8.94
10.65
12.86
14.48
16.25
2.67
2.49
2.44
2.52
2.84
3.91
4.32
.55
.59
.42
.45
.39
.56
.37
.37
3.35
3.60
3.29
3.71
3.86
4.77
3.32
3.92
3.87
4.61
.58
.61
.59
.63
.48
.48
.38
.47
.50
.73
.61
.63
.32
.39
.35
.40
21.50
24.73
25.04
28.81
3.92
4.65
4.84
5.97
3.88
4.51
4.78
5.45
.63
.71
.69
.73
.46
.46
.48
.54
.52
.72
.57
.60
24.19
4.87
4.56
.54
.51
.70
Includes trade, service, construction, finance, and insurance.
Anticipated by business.
Public utilities
Mining
8.30
Other 1
Total
(S.A.
A.R.)
10.77
11.89
13.03
16.05
16.59
18.05
20.07
21.24
.71
.69
2.62
2.84
4.42
5.26
80.75
83.18
3.19
3.61
3.67
4.01
.44
.62
.72
.73
2.72
2.95
2.84
3.39
4.55
4.98
4.97
5.57
86.79
87.12
87.67
91.94
.32
.43
.44
.41
3.45
3.91
4.04
4.85
.50
.68
.77
.89
2.87
3.27
3.19
4.94
5.40
5.24
9.37
96.19
97.76
100.90
104.94
.38
4.14
.52
7.98
108.16
10.10
NOTE.—Dept. of Commerce and Securities and Exchange Commission
estimates for corporate and noncorporate business; excludes agriculture,
real estate operators, medical, legal, educational, and cultural service, and
nonprofit organizations.
FEBRUARY 1974 • REAL ESTATE CREDIT
A 49
MORTGAGE DEBT OUTSTANDING
(In billions of dollars)
Nonfarm
Farm
All properties
Other
holders 2
All
holders
Financial
institutions 1
300.1
241.0
End of
period
1964
1- to 4-family houses 4
All
holders
Individuals
and
others
U.S.
agencies
11.4
18.9
47.7
Other
holders 3
cial
institutions 1
All
holders
7.0
11.9
281.2
Finan.
institutions 1
Other
holders
FHAVAunderwritten
Conventional
83.6
63.7
19.9
77.2
204.0
91.6
100.5
108.7
118.7
129.0
72.5
80.2
87.9
97.1
105.5
19.1
20.3
20.9
21.6
23.5
81.2
84.1
88.2
93.4
100.2
223.4
240.0
256.6
276.6
295.7
Finan.
institutions 1
Other
holders
Total
197.6
170.3
27.3
28.7
31.5
34.2
38.1
43.2
Total
Mortgage
type 6
Multifamily and
commercial properties 5
1965
1966
1967.
1968.
19fi9
323.8
347.4
370.2
397.3
425.3
264.6
280.8
298.8
319.9
339.1
12.4
15.8
18.4
21.7
26.8
48.7
50.9
53.0
55.8
59.4
21.2
23.3
25.5
27.5
29.5
7.8
8.4
9.1
9.7
9.9
13.4
14.9
16.3
17.8
19.6
304.6
324.1
344.8
370.0
395.9
212.9
223.6
236.1
251.2.
266.8
184.3
192.1
201.8
213.1
223.7
1970
1971
1972
451.7
499.9
565.4
355.9
394.4
450.6
33.0
39.4
45.8
62.8
66.2
69.0
31.2
32.9
35.4
10.1
9.9
10.5
21.1
23.0
24.9
420.5
467.0
530.0
280.2
307.8
346.1
231.3
254.2
288.7
48.9
53.7
57.4
140.3
159.2
183.9
114.5
130.3
151.3
25.8
28.9
32.6
109,2
120.7
131.1
311.3
346.3
398.9
1971--III. . 485.6
IV. . 499.9
383.5
394.4
37.4
39.4
64.6
66.2
32.4
32.9
9.8
9.9
22.6
23.0
453.2
467.0
299.7
307.8
248.0
254.2
51.7
53.7
153.5
159.2
125.8
130.3
27.7
28.9
117.5
120.7
335.7
346.3
1972-- I . . . .
II. . .
III. .
IV. .
511.7
529.1
547.3
565.4
404.2
418.9
434.6
450.6
41.2
42.7
44.3
45.8
66.4
67.5
68.3
69.0
33.5
34.4
35.0
35.4
9.9
10.2
10.3
10.5
23.6
24.2
24.7
24.9
478.2
494.8
512.3
530.0
314.1
324.6
335.8
346.1
259.6
268.8
279.2
288.7
54.5
55.8
56.6
57.4
164.1
170.2
176.5
183.9
134.6
140.0
145.1
151.3
29.4
30.3
31.3
32.6
123.7
126.6
129.0
131.1
354.5
368.2
383.3
398.9
1973--- I . . . .
II...
III? .
580.1
600.4
619.9
463.3
480.5
494.9
47.3
49.0
53.0
69.5
71.0
71.9
36.5
37.7
38.7
10.7
11.0
11.4
25.8
26.7
27.3
543.6
562.7
581.2
353.9
365.7
376.6
296.3
306.9
315.0
57.6
58.8
61.6
189.7
197.0
204.5
156.4
162.5
168.5
33.4
34.5
36.0
132.5
133.6
411.1
429.1
1 Commercial banks (including nondeposit trust companies but not
trust depts.), mutual savings banks, life insurance companies, and savings
and loan assns.
2
U.S. agencies include former Federal National Mortgage Assoc. and,
beginning fourth quarter 1968, new Government National Mortgage
Assoc. as well as Federal Housing Admin., Veterans Admin., Public Housing Admin., Farmers Home Admin. They also include U.S. sponsored
agencies—new F N M A , Federal land banks, G N M A (Pools), and the
Federal Home Loan Mortgage Corp. Other U.S. agencies (amounts
small or separate data not readily available) included with "individuals
and others."
3 Derived figures; includes debt held by Federal land banks and farm
debt held by Farmers Home Admin.
4
For multifamily and total residential properties, see tables below.
5
Derived figures; includes small amounts of farm loans held by savings
and loan assns.
6
Data by type of mortgage on nonfarm 1- to 4-family properties alone
are shown in table below.
NOTE.—Based on data from Federal Deposit Insurance Corp., Federal
Home Loan Bank Board, Institute of Life Insurance, Depts. of Agriculture and Commerce, F N M A , FHA, PHA, VA, G N M A , FHLMC, and
Comptroller of the Currency.
Figures for first three quarters of each year are F.R. estimates.
MORTGAGE DEBT OUTSTANDING ON
NONFARM 1- to 4-FAMILY PROPERTIES
MORTGAGE DEBT OUTSTANDING
ON RESIDENTIAL PROPERTIES
(In billions of dollars)
(In billions of dollars)
End of
period
Total
1964
231.1
Governmentunderwritten
All residential
Multifamily i
Financial
institutions
Other
holders
Total
Financial
institutions
Other
holders
195.4
35.7
33.6
25.1
8.5
End of period
1965
1966
1967
1968
1969
-250.1
264.0
280.0
298.6
319.0
213.2
223.7
236.6
250.8
265.0
36.9
40.3
43.4
47.8
54.0
37.2
40.3
43.9
47.3
52.2
29.0
31.5
34.7
37.7
41.3
8.2
8.8
9.2
9.7
10.8
1970
1971
1972
338.2
374.7
422.5
277.1
306.1
347.9
61.1
68.5
74.6
58.0
66.8
76.4
45.8
52.0
59.1
12.2
14.9
17.3
1971—III
IV
364.0
374.7
298.4
306.1
65.6
68.5
64.3
66.8
50.4
52.0
13.9
14.9
1972—1
II
Ill
IV
382.9
395.8
409.3
422.5
312.9
324.1
336.1
347.9
70.0
71.7
73.2
74.6
68.8
71.3
73.5
76.4
53.3
55.3
56.9
59.1
15.4
16.0
16.6
17.3
1973—1
II
III*. . .
432.8
447.9
461.6
357.4
370.4
380.0
75.5
77.5
81.6
79.0
82.2
85.0
61.1
63.5
65.0
17.9
18.7
20.0
i Structures of five or more units.
NOTE.—Based on data from same source as for "Mortgage Debt Outitanding" table above.
Total
Total
FHAinsured
VAguaranteed *
Conventional
196 4
197.6
69.2
38.3
30.9
128.3
1965
196 6
1967.
196 8
196 9
212.9
223.6
236.1
251.2
266.8
73.1
76.1
79.9
84.4
90.2
42.0
44.8
47.4
50.6
54.5
31.1
31.3
32.5
33.8
35.7
139.8
147.6
156.1
166.8
176.6
1970
197 1
197 2
280.2
307.8
346.1
97.3
105.2
113.0
59.9
65.7
68.2
37.3
39.5
44.7
182.9
202.6
233.1
1971—III.
IV.
299.7
307.8
102.9
105.2
64.4
65.7
38.5
39.5
196.8
202.6
1972—1...
II. .
314.1
324.6
335.8
346.1
107.5
109.6
111.5
113.0
66.8
67.6
68.4
68.2
40.7
42.0
43.1
44.7
206.6
215.0
224.3
233.1
353.9
365.7
376.6
113.7
114.7
67.9
67.5
45.8
47.2
204.2
251.0
III.
IV.
1973—1...
II..
III?
1
Includes outstanding amount of VA vendee accounts held by private
investors under repurchase agreement.
NOTE.—For total debt outstanding, figures are FHLBB and F.R.
estimates. For conventional, figures are derived.
Based on data from FHLBB, Federal Housing Admin., and Veterans
Admin.
A 50
REAL ESTATE CREDIT • FEBRUARY 1974
MORTGAGE LOANS HELD BY BANKS
(In millions of dollars)
Commercial bank holdings 1
Residential
End of period
Total
Total
FHAinsured
VAguaranteed
Mutual savings bank holdings
Other
nonfarm
Conventional
Residential
Farm
Total
FHAinsured
VAguaranteed
Conventional
13,791
14,500
15,074
15,569
15,862
11,408
11,471
11,795
12,033
12,166
14,897
16,272
17,772
19,146
20,654
49,675
54,380
59,019
65,696
70,705
32,387
34,876
37,642
41,433
44,573
7,702
7,544
7,709
7,926
7,960
2,599
2,696
2,708
2,663
21,997
24,733
27,237
30,800
33,950
14,377
16,366
17,931
20,505
22,113
2,911
3,138
3,446
3,758
4,019
44,617
47,337
50,490
53,456
56,138
40,096
42,242
44,641
46,748
48,682
73,275
82,515
99,314
45,640
52,004
62,782
7,919
8,310
8,495
2,589
3,980
3,203
35,131 23,284
40,714 26,306
51,084 31,751
4,351
4,205
4,781
57,948
61,978
67,556
49,937 16,087 12,008 21,842
53,027 16,141 12,074 24,812
57,140 16,013 12,622 •28,505
85,614
90,114
95,048
99,314
53,937
56,782
59,976
62,782
8,360
8,477
8,515
8,495
2,999
3,141
3,118
3,203
42,578
45,163
48,343
51,084
27,353
28,785
30,415
31,751
4,324
4,547
4,657
4,781
62,978
64,404
65,901
67,556
53,733
54,758
55,889
57,140
103,548
109,114
114,414
65,236
68,650
71,852
8,482
3,211
33,342
56,957 35,224
37,070
4,970
5,240
5,492
68,920 58,169
70,634 59,397
72,034 ••60,305
1
Includes loans held by nondeposit trust companies but not bank
trust depts.
16,184
16,256
16,130
16,013
12,144
12,325
12,463
12,622
25,405
26,178
27,296
28,505
NOTE.—Second and fourth quarters, FDIC series for all commercial
and mutual savings banks in the United States and possessions. First and
third quarters, estimates based on special F.R. interpolations.
MORTGAGE ACTIVITY OF LIFE INSURANCE COMPANIES
(In millions of dollars)
Period
Loans acquired
Loans outstanding (end of period)
Nonfarm
Nonfarm
Total
Total
Farm
FHAinsured
VAguaranteed
Other i
Total
Total
FHAinsured
Farm
VAguaranteed
Other
1945
976
6,637
5,860
1,394
4,466
766
1964
196 5
1966
1967
1968
1969
10,433
11,137
10,217
8,470
7,925
7,531
9,386
9,988
9,223
7,633
7,153
6,991
1,812
1,738
1,300
757
733
594
674
553
467
444
346
220
6,900
7,697
7,456
6,432
6,074
6,177
1,047
1,149
994
837
772
540
55,152
60,013
64,609
67,516
69,973
72,027
50,848
55,190
59,369
61,947
64,172
66,254
11,484
12,068
12,351
12,161
11,961
11,715
6,403
6,286
6,201
6,122
5,954
5,701
32,961
36,836
40,817
43,664
46,257
48,838
4,304
4,823
5,240
5,569
5,801
5,773
1970
197 1
1972
7,181
7,573
8,696
6,867
7,070
7,996
386
322
331
88
101
182
6,393
6,647
7,483
314
503
700
74,375
75,496
76,948
68,726
69,895
71,270
11,419
10,767
9,962
5,394
5,004
4,660
51,913
54,124
56,648
5,649
5,601
5,678
1972—No v r
Dec.
786
1,890
730
1,784
25
23
10
17
695
1,744
56
106
75,904
76,948
70,266
71,270
10,017
9,962
4,681
4,660
55,568
56,648
5,638
5.678
1973—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
711
603
670
702
774
1,101
933
1,034
944
972
1,146
649
542
573
624
694
1,009
849
947
862
899
1,051
16
27
37
20
22
24
26
11
23
13
25
20
24
24
22
21
27
19
20
17
18
15
613
491
512
582
651
958
804
916
822
868
1,011
62
61
97
78
80
92
84
87
82
73
95
77,481
77,510
77,587
77,258
77,400
77,914
78,243
78,657
79,040
79,516
79,549
71,856
71,892
71,953
71,611
71,721
72,187
72,474
72,839
73,182
73,619
73,619
9,901
9,806
9,735
9,708
9,627
9,544
9,464
9,388
9,330
9,270
9,233
4,630
4,613
4,594
4,572
4,549
4,524
4,496
4,471
4,447
4,428
4,428
57,325
57,473
57,624
57,331
57,545
58,119
58,514
58,980
59,405
59,921
60,614
5,625
5,618
5,634
5,647
5.679
5,727
5,769
5,818
5,858
5,897
5,930
1
Includes mortgage loans secured by land on which oil drilling or extracting operations are in process.
FEBRUARY 1974 • REAL ESTATE CREDIT
A 51
COMMITMENTS OF LIFE INSURANCE COMPANIES FOR INCOME PROPERTY MORTGAGES
Averages
Total
amount
committed
(millions of
(dollars)
Number
of loans
Loan
amount
(thousands
of dollars)
Contract
interest
rate
(per cent)
Maturity
(yrs./mos.)
22/11
Loanto-value
ratio
(per cent)
Capitalization rate
(per cent)
Debt
coverage
ratio
9.0
9.6
10.8
2,569
1,788
912
1,664
2,132
3,244.3
2,920.7
2,341.1
3,982.5
4,986.5
1,263
1,633
2,567
2,393
2,339
7.66
8.69
9.93
9.07
8.57
23/3
73.6
73.3
74.7
74.9
75.2
9.6
1.30
1.29
1.32
1.29
1.29
136
133
288.2
290.0
2,119
2,181
9.01
8.96
23/5
23
75.6
74.4
9.9
9.9
1.27
1.30
107
122
220
200
246
268
170
178
152
159
180
130
198.6
423.5
530.4
381.1
399.6
683.2
421.2
515.7
354.1
343.5
371.7
363.9
1,856
3,471
2,411
1,906
1,624
2,549
2,478
2,897
2,329
2,161
2,065
2,799
8.78
8.62
8.50
8.44
8.48
8.55
8.56
8.54
8.58
8.65
8.63
8.64
22/1
22/6
24/2
24/6
23/4
23/0
23/0
23/0
23/4
23/0
23/2
22/8
73.3
73.3
76.3
76.3
76.0
75.4
74.5
74.9
75.7
75.8
74.7
74.4
10.0
1.31
1.31
1.29
1.29
1.26
1.29
1.31
1.27
1.28
1.29
1.28
1.37
21/8
22/8
22/10
10.0
9.7
9.5
9.5
9.5
9.5
9.5
9.5
9.5
9.6
9.6
9.8
NOTE.—American Life Insurance Association data for new commitments of $100,000 and over each on mortgages for multifamily and nonresidential nonfarm properties located largely in the United States. The 15
companies account for a little more than one-half of both the total assets
and the nonfarm mortgages held by all U.S. life insurance companies.
Averages, which are based on number of loans, vary in part with loan
composition by type and location of property, type and purpose of loan,
and loan amortization and prepayment terms. Data for the following are
limited to cases where information was available or estimates could be
made: capitalization rate (net stabilized property earnings divided by
property value); debt coverage ratio (net stabilized earnings divided by
debt service); and per cent constant (annual level payment, including
principal and interest, per $100 of debt). All statistics exclude construction
loans, increases in existing loans in a company's portfolio, reapprovals,
and loans secured by land only.
MORTGAGE ACTIVITY OF SAVINGS AND
LOAN ASSOCIATIONS
FEDERAL HOME LOAN BANKS
(In millions of dollars)
(In millions of dollars)
Advances outstanding
(end of period)
Loans outstanding (end of period)
Loans made
Period
New
home
construction
Home
purchase
Total
6,013
3,653
4,243
4,916
4,757
10,830
7,828
9,604
11,215
11,254
110,306 5,145
114,427 5,269
121,805 5,791
130,802 6,658
140,347 7,917
21,383 4 , 1 5 0
39,472 6,835
51,408 8,553
10,237
26,615
150,331 10,178
174,385 13,798
206,387 29,391
8,494 131,659
10,848 149,739
176,996
13,764 176,964
Total i
24,192
16,924
20,122
21,983
21,847
18,811
2
ConFHA- VAguarveninsured 3 anteed 3 tional
4,591
667
2,167
206,387 15,639
3,702
3,710
4,990
4,989
5,477
5,738
5,059
4,971
3,177
2,788
2,311
2,505
590
614
887
886
931
903
851
801
572
532
449
417
1,970
2,019
2,685
2,762
3,141
3,469
3,079
3,059
1,838
1,548
1,366
1,336
208,132
210,260
213,259
216,250
219,500
222,801
225,490
228,006
229,413
230,425
231,319
232,322
6,398
6,157
6,351
7,012
7,658
29,581
29,751
30,045
30,182
30,296
30,381
30,270
30,268
30,632
30,328
30,295
30,274
98,763
103,001
109,663
117,132
124,772
178,551
180,509
183,214
186,068
189,204
192,420
195,220
197,738
198,781
200,097
201,024
202,048
1 Includes loans for repairs, additions and alterations, refinancing, etc.,
not shown separately.
2
Includes shares pledged against mortgage loans; beginning 1966, also
includes junior liens and real estate sold on contract; beginning 1967,
also includes downward structural adjustment for change in universe;
and beginning 1973, excludes participation certificates guaranteed by the
F H L M C and certain other related items.
3
Beginning 1973, data for these groups available only on a combined
basis.
Advances
Repayments
Total
Shortterm 1
Longterm 2
196 5
196 6
196 7
196 8
1969
5,007
3,804
1,527
2,734
5,531
4,335
2,866
4,076
1,861
1,500
5,997
6.935
4,386
5,259
9,289
3,074
5,006
3,985
4,867
8,434
2,923
1,929
401
392
855
1970
197 1
197 2
3,256
2,714
4,790
1,929
5,392
4,749
10,615
7.936
7,979
3,081
3,002
2,961
7,534
4,934
5,018
1972—Dec..
984
251
7,979
2,961
5,018
1973—Jan..
Feb..
Mar.
Apr..
May.
June.
July.
Aug.,
Sept.
Oct..
Nov.
Dec..
332
415
764
1,187
916
1,093
1,373
1,380
999
728
295
529
480
302
288
178
189
104
153
235
212
226
228
248
7,830
7,944
8,421
9,429
10,156
11,145
12,365
13,510
14,298
14,799
14,866
15,147
2,805
2,774
2,975
3,450
3,428
4,016
4,583
4,737
4,834
4,805
4,669
4,583
5,025
5,170
5,446
5,979
6,728
7,129
7,782
8,773
9,464
9,994
10,197
10,564
1
Secured or unsecured loans maturing in 1 year or less.
Secured loans, amortized quarterly, having maturities of more than
1 year but not more than 10 years.
2
NOTE.—FHLBB data.
A 52
REAL ESTATE CREDIT • FEBRUARY 1974
FEDERAL NATIONAL MORTGAGE ASSOCIATION
AUCTIONS
FEDERAL NATIONAL MORTGAGE
ASSOCIATION ACTIVITY
(In millions of dollars)
Date of auction
Made
during
period
Out
standing
20
336
211
2,696
6,630
8,047
9,828
8,797
1,287
3,539
5,203
6,497
8,124
306
12
1,237
8,124
348
334
522
355
472
516
516
699
633
659
656
29
458
478
933
1,211
1,180
1,191
1,102
1,019
724
264
200
158
8,034
7,972
8,139
8,742
9,312
9,778
9,859
9,809
9,602
8,918
8,690
7,889
FHAinsured
guaranteed
Purchases
Sales
7,167
10,945
15,492
17,791
19,791
5,122
7,676
11,063
12,681
14,624
2,046
3,269
4,429
5,110
5,112
1,944
4,120
5,079
3,574
3,699
19,791
14,624 5,112
19,982 14,746 5,170
20,181 14,872 5,222
20,571 15,201 5,259
20,791 15,390 5,269
21,087 15,581 5,335
21,413 15,768 5,411
21,772 15,877 5,574
22,319 16,085 5,761
22,831 16,293 5,937
23,348 16,510 6,101
23,912 16,734 6,294
24,175 16,852 6,352
Total
Government-underwritten Conventional home loans
home loans
Mortgage
commitments
Mortgage
transactions
(during
period)
Mortgage
holdings
40
AcOffered cepted
In millions of
dollars
(In millions of dollars)
Total
1967
1968
1969
1970
1971
1972
3,348
4,220
4,820
5,184
5,294
5,113
FHAinsured
2,756
3,569
4,220
4,634
4,777
VAguaranteed
592
651
600
550
517
Purchases
860
1,089
827
621
393
In
per cent
In
per cent
In millions of
dollars
261.2
185.9
7.92
128.9
88.2
8.23
258.3
212.4
187.7
140.0
7.96
8.00
117.6
113.3
84.4
73.9
8.31
8.39
June 11. . .
25. . .
184.5
199.3
142.2
118.7
8.04
8.09
110.1
95.0
74.1
69.4
8.44
8.51
July
9....
23....
539.3
351.4
244.8
181.4
8.38
8.54
108.4
119.0
72.5
61.7
8.67
8.79
Aug.
6 . . . . 458.5
20. . . 525.0
201.9
223.8
8.71
8.95
154.3
171.3
77.4
77.2
8.98
9.27
Sept.
4. . .
17...
551.0
138.1
288.9
107.9
9.27
9.37
118.6
48.6
61.5
46.8
9.53
9.68
Oct.
1. . .
15. . .
29. . .
32.5
24.8
28.2
24.1
16.6
21.6
9.11
8.97
8.94
9.1
18.6
17.4
7.1
16.2
9.4
9.43
9.10
9.01
Nov. 12. . .
26. . .
29.3
24.9
23.1
20.9
8.87
8.81
24.1
31.0
16.7
22.1
8.94
8.90
Dec. 1 7 . . . .
38.6
36.2
8.78
51.4
32.2
8.82
14. . .
40.2
35.6
8.71
48.9
34.5
8.77
NOTE.—Average secondary market yields are gross—before deduction
of 38 basis-point fee paid for mortgage servicing. They reflect the average
accepted bid yield for home mortgages assuming a prepayment period of
12 years for 30-year loans, without special adjustment for F N M A commitment fees and F N M A stock purchase and holding requirements. Since
Oct. 18, 1971, the maturity on new short-term commitments has been
4 months. Mortgage amounts offered by bidders are total bids received.
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION ACTIVITY
End of
period
Average
yield
(shortterm
commitments)
May 1 4 . . . .
28....
1974—Jan.
Mortgage
transactions
(during
period)
Average
Mortgage
yield
amounts
(shortterm
commitAcments) Offered
cepted
1973—Apr. 3 0 . . . .
NOTE.—FNMA data. Total holdings include conventional loans. Data
prior to Sept. 1968 relate to secondary market portfolio of former F N M A .
Mortgage holdings include loans used to back bond issues guaranteed by
G N M A . Mortgage commitments made during the period include 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 Plan (Program 18).
Mortgage
holdings
Mortgage
amounts
Mortgage
commitments
GNMA MORTGAGE-BACKED SECURITY PROGRAM
(In millions of dollars)
Sales
1
Made
during
period
1,045
867
615
897
Out
standing
1,171
1,266
1,131
738
1,494
Pass-through securities
Bonds
sold
Period
1970
1971
1972
Applications
received
Securities
issued
1,126.2
4,373.6
3,854.5
452.4
2,701.9
2,661.7
1972-Dec...
5,113
1972—Nov
Dec
226.4
440.9
138.2
299.8
1973-Jan...
Feb.. .
Mar...
Apr.. .
May. .
June..
July...
Aug.. .
Sept...
Oct....
Nov...
Dec...
5,117
4,984
4,663
4,439
3,980
3,908
4,156
4,455
4,429
4,338
4,172
4,029
1973—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
515.7
167.2
339.4
467.8
563.3
243.1
215.7
174.0
533.8
825.7
923.3
323.3
216.8
139.9
182.1
338.8
315.3
384.7
191.3
380.0
240.8
210.4
NOTE.—GNMA data. Total holdings include a small amount of conventional loans. Data prior to Sept. 1968 relate to Special Assistance and
Management and Liquidating portfolios of former F N M A and include
mortgages subject to participation pool of Government Mortgage Liquidation Trust, but exclude conventional mortgage loans acquired by former
FNMA.
1,315.0
300.0
NOTE.—GNMA data. Under the Mortgage-Backed Security Program,
G N M A guarantees the timely payment of principal and interest on both
pass-through and bond-type securities, which are backed by a pool of
mortgages insured by F H A or Farmers Home Admin, or guaranteed by
VA and issued by an approved mortgagee. To date, bond-type securities
have been issued only by F N M A and FHLMC.
FEBRUARY 1974 • REAL ESTATE CREDIT
HOME-MORTGAGE YIELDS
(In per cent)
(In millions of dollars)
Secondary
market
Primary market
(conventional loans)
FHA-insured
FHLBB series
(effective rate)
Period
Yield
on FHAinsured
newhome
loans
HUD
series
New
homes
Existing
homes
New
homes
1970
1971
1972
6.97
7.81
8.44
7.74
7.60
7.03
7.82
8.35
7.67
7.52
7.12
7.99
8.52
7.75
7.64
7.21
8.29
9.03
7.70
7.52
1973—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
7.68
7.70
7.68
7.71
7.71
7.79
7.87
7.94
8.17
8.31
8.39
8.46
7.68
7.72
7.69
7.70
7.77
7.79
7.84
8.01
8.26
8.50
8.58
8.60
7.70
7.75
7.80
7.90
7.95
8.05
8.40
8.85
8.95
8.80
8.75
7.55
7.56
7.63
7.73
7.79
7.89
8.19
1968
1969
A 53
GOVERNMENT-UNDERWRITTEN RESIDENTIAL
LOANS MADE
1974—Jan
Mortgages
Total
1970.
1971.
1972.
8.78
MOTE.—Annual data are averages of monthly figures. The
Housing and Urban Development (FHA) data are based on
opinion reports submitted by field offices on prevailing local
conditions as of the first of the succeeding month. Yields on
FHA-insured mortgages are derived from weighted averages of
private secondary market prices for Sec. 203, 30-year mortgages
with minimum downpayment and an assumed prepayment
at the end of 15 years. Any gaps in data are due to periods of
adjustment to changes in maximum permissible contract interest rates. The H U D (FHA) interest rates on conventional
first mortgages in primary markets are unweighted and are
rounded to the nearest 5 basis points. The FHLBB effective
rate series reflects fees and charges as well as contract rates (as
shown in the table on conventional first-mortgage terms, p.
A-35) and an assumed prepayment at end of 10 years.
Mortgages
Period
1965.
1966.
1967.
1968
1969,
9.18
8.97
8.86
VA-guaranteed
ExNew isting
homes homes
Property
improvements 2
Total 3
New
homes
Existing
homes
5,760
4,366
4,516
4,924
5,570
591
583
642
1,123
1,316
634
641
623
656
693
2,652
2,600
3,405
3,774
4,072
876
980
1,143
1,430
1,493
1,776
1,618
2,259
2,343
2,579
11,982 2,667 5,447
14,689 3,900 6,475
12,320 3,459 4,608
3,251
3,641
3,448
617
674
805
3,440
5,961
8,293
1,311
1,694
2,539
2,129
4,267
5,754
8,689
7,320
7,150
8,275
9,129
1,705
1,729
1,369
1,572
1,551
Projects 1
1972-- D e c . .
964
190
245
444
85
715
220
495
1973--Jan...
Feb..
Mar..
Apr..
May.
June.
July..
Aug..
Sept..
Oct...
Nov..
Dec. 23
834
710
969
620
589
650
559
537
485
549
602
407
254
162
195
151
158
153
143
100
90
113
100
56
324
235
268
223
228
229
250
195
177
246
257
168
197
262
440
172
122
207
100
167
134
119
169
116
59
52
65
74
81
61
66
75
84
72
76
66
681
592
596
621
634
646
666
569
565
652
725
473
218
187
185
187
198
182
204
193
184
121
216
138
463
405
411
434
436
464
462
376
381
431
509
335
1
Monthly figures do not reflect mortgage amendments included in annual
totals.
2
Not ordinarily secured by mortgages.
3
Includes refinancing loans, mobile home loans and also a small amount of
alteration and repair loans, not shown separately; only such loans in amounts
of more than $1,000 need be secured.
NOTE.—FHA and VA data. FHA-insured loans represent gross amount
of insurance written; VA-guaranteed loans, gross amounts of loans closed.
Figures do not take into account principal repayments on previously insured
or guaranteed loans. For VA-guaranteed loans, amounts by type are derived
from data on number and average amount of loans closed.
FEDERAL HOME LOAN MORTGAGE
CORPORATION ACTIVITY
DELINQUENCY RATES ON HOME MORTGAGES
(Per 100 mortgages held or serviced)
(In millions of dollars)
Loans not in foreclosure
but delinquent for—
Loans in
foreclosure
End of period
90 days
30 days
60 days
or more
1965
1966
1967
1968
1969
3.29
3.40
3.47
3.17
3.22
2.40
2.54
2.66
2.43
2.43
.55
.54
.54
.51
.52
.34
.32
.27
.23
.27
.40
.36
.32
.26
.27
1970
1971
1972
3.64
3.93
4.65
2.67
2.82
3.42
.61
.65
.78
.36
.46
.45
.33
.46
.48
1971—11
Ill
IV
3.27
3.59
3.93
2.36
2.54
2.82
.53
.62
.65
.38
.43
.46
.38
.41
.46
1972—1
II
Ill
IV
3.16
3.27
3.82
J4.66
\4.65
2.21
2.38
2.74
3.41
3.42
.58
.53
.65
.79
.78
.37
.36
.43
.46
.45
.50
.48
.52
.50
.48
3.63
3.84
4.36
2.52
2.81
3.10
.68
.64
.78
.43
.39
.48
1973—1
II
Ill
1
.. .
First line is old series; second line is new series.
NOTE.—Mortgage Bankers Association of America data from
reports on 1- to 4-family FHA-insured, VA-guaranteed, and conventional mortgages held by more than 400 respondents, including
mortgage bankers (chiefly), commercial banks, savings banks, and
savings and loan associations.
Mortgage
transactions
(during period)
Mortgage
commitments
End of period
Total
1
Mortgage
holdings
Total
FHAVA
Conventional
197 0
197 1
197 2
325
968
1,789
325
821
1,503
147
286
325
778
1,298
64
408
1972—Nov.
Dec.
1,743
1,789
1,491
1,503
253
286
128
143
87
1973—Jan..
Feb.,
Mar.
Apr.,
May,
June,
July.
Aug.
Sept.
Oct..
Nov.
1,761
1,677
1,718
1,784
1,906
2,029
2,158
2,307
2,423
2,527
2,565
1,517
1,535
1,589
1,646
1,695
1,716
1,714
1.728
1.729
1,742
1,746
244
142
76
76
119
126
147
154
140
161
126
113
46
128
138
211
313
444
579
694
785
819
Purchases
Sales
10
99
150
68
51
17
21
Made
during
period
Outstanding
1,606
182
198
89
93
293
198
142
166
141
193
187
159
139
208
143
63
45
226
300
295
343
344
316
278
291
288
218
207
NOTE.—FHLMC data. Data for 1970 include only the period beginning
Nov. 26 when the FHLMC first became operational. Holdings, purchases,
and sales include participations as well as whole loans. Mortgage holdings include loans used to back bond issues guaranteed by G N M A. Commitment data
cover the conventional and Govt.-underwritten loan programs.
A 54
CONSUMER CREDIT • FEBRUARY 1974
TOTAL CREDIT
(In millions of dollars)
Instalment
End of period
Total
Noninstalment
Total
Automobile
paper
Other
consumer
goods
paper
Home
improvement
loans 1
Personal
loans
Total
Singlepayment
loans
Charge
accounts
Service
credit
1940
1950
1955
1960
8,338
21,471
38,830
56,141
5,514
14,703
28,906
42,968
2,071
6,074
13,460
17,658
1,827
4,799
7,641
11,545
371
1,016
1,693
3,148
1,245
2,814
6,112
10,617
2,824
6,768
9,924
13,173
800
1,821
3,002
4,507
1,471
3,367
4,795
5,329
553
1,580
2,127
3,337
196 5
1966
1967
196 8
1969
89,883
96,239
100,783
110,770
121,146
70,893
76,245
79,428
87,745
97,105
28,437
30,010
29,796
32,948
35,527
18,483
20,732
22,389
24,626
28,313
3,736
3,841
4.008
4,239
4,613
20,237
21,662
23,235
25,932
28,652
18,990
19,994
21,355
23,025
24,041
7,671
7,972
8,558
9,532
9,747
6,430
6,686
7,070
7,193
7,373
4,889
5,336
5,727
6,300
6,921
197 0
197 1
197 2
197 3
127,163
138,394
157,564
180,486
102,064
111,295
127,332
147,437
35,184
38,664
44.129
51.130
31,465
34,353
40,080
47,530
5,070
5,413
6,201
7,352
30,345
32,865
36,922
41,425
25,099
27,099
30,232
33,049
9,675
10,585
12,256
13,241
7,968
8,350
9,002
9,829
7,456
8,164
8,974
9,979
1972—Dec.
157,564
127,332
44.129
40,080
6,201
36,922
30,232
12,256
9,002
8,974
1973—Jan..
Feb.
Mar.
Apr.
May
June
July.
Aug.
Sept.
Oct..
Nov.
Dec.
157,227
157,582
159,320
161,491
164,277
167,083
169,148
171,978
173,035
174,840
176,969
180,486
127,368
127,959
129,375
131,022
133,531
136,018
138,212
140,810
142,093
143,610
145,400
147,437
44,353
44,817
45,610
46,478
47,518
48,549
49,352
50,232
50,557
51,092
51,371
51.130
39,952
39,795
39,951
40,441
41,096
41,853
42,575
43,505
44,019
44,632
45,592
47,530
6,193
6,239
6,328
6,408
6,541
6,688
6,845
7.009
7,120
7,235
7,321
7,352
36,870
37,108
37,486
37,695
38,376
38,928
39,440
40,064
40,397
40,651
41,116
41,425
29,859
29,623
29,945
30,469
30,746
31,065
30,936
31,168
30,942
31,230
31,569
33,049
12,204
12,409
12,540
12,686
12,817
12,990
12,968
13,111
13,088
13,145
13,161
13,241
8,357
7,646
7,702
8,036
8,319
8,555
8,479
8,605
8,335
8,590
8,785
9,829
9,298
9,568
9,703
9,747
9,610
9,520
9,489
9,452
9,519
9,495
9,623
9,979
1
Holdings of financial institutions; holdings of retail outlets are included in "Other consumer goods paper."
hold, family, and other personal expenditures, except real estate mortgage
loans. For back figures and description of the data, see "Consumer Credit,"
Section 16 (New) of Supplement to Banking and Monetary Statistics, 1965
NOTE.—Consumer credit estimates cover loans to individuals for house-
a n d BULLETINS f o r D e c . 1 9 6 8 a n d O c t . 1 9 7 2 .
INSTALMENT CREDIT
(In millions of dollars)
Financial institutions
End of period
Total
Total
Commercial
banks
Finance
companies 1
Credit
unions
1940
1950
1955
1960
5,514
14,703
28,906
42,968
3,918
11,805
24,398
36,673
1,452
5,798
10,601
16,672
2,278
5,315
11,838
15,435
171
590
1,678
3,923
196 5
1966
196 7
196 8
1969
70,893
76,245
79,428
87,745
97,105
61,102
65,430
67,944
75,727
83,989
28,962
31,319
33,152
37,936
42,421
23,851
24,796
24,576
26,074
27,846
7,324
8,255
9,003
10,300
12,028
197 0
197 1
1972
197 3
102,064
111,295
127,332
147,437
88,164
97,144
111,382
129,305
45,398
51,240
59,783
69,495
27,678
28,883
32,088
37,243
Retail outlets
Miscellaneous
lenders i
Total
Automobile
dealers 2
Other
retail
outlets
17
102
281
643
1,596
2,898
4,508
6,295
167
287
487
359
1,429
2,611
4,021
5,936
965
1,213
1,417
1,694
9,791
10,815
11,484
12,018
13,116
315
277
287
281
250
9,476
10,538
11,197
11,737
12,866
12,986
14,770
16,913
19,609
2,102
2,251
2,598
2,958
13,900
14,151
15,950
18,132
218
226
261
299
13,682
13,925
15,689
17,833
1,060
1972—Dec.
127,332
111,382
59,783
32,088
16,913
2,598
15,950
261
15,689
1973—Jan..
Feb.,
Mar.
Apr.
May,
June,
July.
Aug.
Sept.
Oct..
Nov.
Dec.,
127,368
127,959
129,375
131,022
133,531
136,018
138,212
140,810
142,093
143,610
145,400
147,437
111,690
112,630
114,190
115,727
118,165
120,450
122,479
124,823
126,040
127,307
128,553
129,305
60,148
60,582
61,388
62,459
63,707
64,999
66,065
67,381
67,918
68,627
69,161
69,495
32,177
32,431
32,750
33,078
33,859
34,367
35,020
35,634
35,993
36,365
36,887
37,243
16,847
16,973
17,239
17,455
17,832
18,269
18,517
18,961
19,207
19,339
19,517
19,609
2,518
2,644
2,813
2,735
2,767
2,815
2,877
2,847
2,922
2,976
2,988
2,958
15,678
15,329
15,185
15,295
15,366
15,568
15,733
15,987
16,053
16,303
16,847
18,132
263
266
272
278
284
289
293
296
297
300
302
299
15,415
15,063
14,913
15,017
15,082
15,279
15,440
15,691
15,756
16,003
16,545
17,833
1
Finance companies consist of those institutions formerly classified
as sales finance, consumer finance, and other finance companies. Miscellaneous lenders include savings and loan associations and mutual
savings banks.
2
Automobile paper only; other instalment credit held by automobile
dealers is included with "Other retail outlets."
See also NOTE to table above.
A 55
FEBRUARY 1974 • CONSUMER CREDIT
MAJOR HOLDERS OF INSTALMENT CREDIT
(In millions of dollars)
Finance companies
Commercial banks
Automobile
paper
End of
period
Other consumer
goods paper
Total
Purchased
Direct
Mobile
homes
Credit
cards
Other
Home
improvement
loans
Personal
loans
Total
Automobile
paper
Other consumer
goods paper
Other
Mobile
homes
1
Home
improvement
loans
Personal
loans
1940
1950
1955
1960
10,601
16,672
339
1,177
3,243
5,316
276
I,294
2,062
2,820
232
1,456
2,042
2,759
165
834
1,338
2,200
440
1,037
1,916
3,577
2,278
5,315
11,838
15,435
1,253
3,157
7,108
7,703
159
692
1,448
2,553
193
80
42
173
673
1,386
3,240
5,006
196 5
1966
1967
196 8
1969
28,962
31,319
33,152
37,936
42,421
10,209
11,024
10,972
12,324
13,133
5,659
5,956
6,232
7,102
7,791
4,166
4,681
5,469
1,307
2,639
5,387
6,082
2,571
2,647
2,731
2,858
2,996
6,357
7,011
7,748
8,958
9,780
23,851
24,796
24,576
26,074
27,846
9,218
9,342
8,627
9,003
9,412
4,343
4,925
5,069
5,424
5,775
232
214
192
166
174
10,058
10,315
10,688
11,481
12,485
197 0
197 1
1972
197 3
45,398
51,240
59,783
69,495
12,918
13,837
16,320
19,038
7,888
9,277
10,776
12,218
4,423
5,786
7,223
3,792
4,419
5,288
6,649
7,113
4,501
5,122
6,054
3,071
3,236
3,544
3,982
10,616
11,547
12,947
14,331
27,678
28,883
32,088
37,243
9,044
9,577
10,174
11,927
2,464
2,561
2,916
3,378
3,237
3,052
3,589
4,434
199
247
497
917
12,734
13,446
14,912
16,587
1972—Dec..
59,783
16,320
10,776
5,786
5,288
5,122
3,544
12,947
32,088
10,174
2,916
3,589
497
14,912
1973—Jan..
Feb..
Mar.,
Apr..
May.
June.
July.
Aug..
Sept.
Oct..
Nov..
Dec..
60,148
60,582
61,388
62,459
63,707
64,999
66,065
67,381
67,918
68,627
69,161
69,495
16,464
16,680
16,951
17,327
17,716
18,138
18,439
18,771
18,886
19,123
19,198
19,038
10,889
10,977
II,216
11,436
11,680
11,866
12,023
12,190
12,160
12,262
12,306
12,218
5,839
5,932
6,035
6,163
6,321
6,473
6,629
6,825
6,956
7,106
7,208
7,223
5,311
5,283
5,243
5,290
5,360
5,502
5,603
5,792
5,909
5,991
6,171
6,649
5,135
5,158
5,289
5,401
5,538
5,688
5,815
5,923
5,978
6,012
6,035
6,054
3,527
3,515
3,538
3,581
3,635
3,700
3,774
3,863
3,903
3,950
3,979
3,982
12,983
13,037
13,116
13,261
13,457
13,632
13,782
14,017
14,126
14,183
14,264
1,4331
32,177
32,431
32,750
33,078
33,859
34,367
35,020
35,634
35,993
36,365
36,887
37,243
10,177
10,267
10,419
10,617
10,872
2,928
2,909
2,943
2,991
3,025
3,081
3,132
3,187
3,235
3,269
3,310
3,378
3,644
3,752
3,796
3,831
3,985
4,002
4,103
4,194
4,265
4,316
4,371
4,434
528
562
14,900
14,941
15,011
15,028
15,321
15,469
15,687
15,899
15,963
16,074
16,371
16,587
1,452
5,798
1
Finance companies consist of those institutions formerly classified as
sales finance, consumer finance, and other finance companies.
11,121
11,365
11,583
11,721
11,859
11,949
11,927
581
611
656
694
733
771
809
847
886
917
See also NOTE to table at top of preceding page.
INSTALMENT CREDIT HELD BY OTHER
FINANCIAL LENDERS
NONINSTALMENT CREDIT
(In millions of dollars)
(In millions of dollars)
End of period
Total
Automobile
paper
Other
consumer
goods
paper
Home
improvement
loans
Personal
loans
1940.
1950,
1955
I960.
188
692
1,959
4,566
36
159
560
1,460
7
40
130
297
13
102
313
775
132
391
956
2,034
1965.
1966.
1967.
1968.
1969.
8,289
9,315
10,216
11,717
13,722
3,036
3,411
3,678
4,238
4,941
498
588
654
771
951
933
980
1,085
1,215
1,443
3,822
4,336
4,799
5,493
6,387
1970.
1971.
1972.
1973.
15,088
17,021
19,511
22,567
5,116
5,747
6,598
7,648
1,177
1,472
1,690
1,959
1,800
1,930
2,160
2,453
6,995
7,872
9,063
10,507
1972-- D e c
19,511
6,598
1,690
2,160
9,063
1973—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
19,365
19,617
20,052
20,190
20,599
21,084
21,394
21,808
22,129
22,315
22,505
22,567
6,560
6,627
6,752
6,820
6,966
7,135
7,232
7,392
7,493
7,548
7,616
7,648
1,680
1,698
1,732
1,748
1,785
1,828
1,853
1,893
1,920
1,935
1,952
1,959
2,138
2,162
2,209
2,216
2,250
2,294
2,338
2,375
2,408
2,438
2,456
2,453
8,987
9,130
9,359
9,406
9,598
9,827
9,971
10,148
10,308
10,394
10,481
10,507
NOTE.—Other financial lenders consist of credit unions and miscellaneous lenders. Miscellaneous lenders include savings and loan associations and mutual savings banks.
Singlepayment
loans
Charge accounts
Total
End of period
Service
credit
Commercial
banks
Other
financial
institutions
Retail
outlets
Credit
cards 1
2,824
6,768
9,924
13,173
636
1,576
2,635
3,884
164
245
367
623
1,471
3,291
4,579
4,893
76
216
436
553
1,580
2,127
3,337
18,990
19,994
21,355
23,025
24,041
6,690
6,946
7,478
8,374
8,553
981
1,026
1,080
1,158
1,194
5,724
5,812
6,041
5,966
5,936
706
874
1,029
1,227
1,437
4,889
5,336
5,727
6,300
6,921
1973.
25,099
27,099
30,232
33,049
8,469
9,316
10,857
11,753
1,206
1,269
1,399
1,488
6,163
6,397
7,055
7,783
1,805
1,953
1,947
2,046
7,456
8,164
8,974
9,979
1972-- D e c . . . .
30,232
10,857
1,399
7,055
1,947
8,974
29,859
29,623
29,945
30,469
30,746
31,065
30,936
31,168
30,942
31,230
31,569
33,049
10,825
10,989
11,074
11,237
11,359
11,520
11,491
11,655
11,608
11,654
11,669
11,753
1,379
1,420
1,466
1,449
1,458
1,470
1,477
1,456
1,480
1,491
1,492
1,488
6,402
5,735
5,825
6,129
6,387
6,544
6,424
6,475
6,229
6,554
6,761
7,783
1,955
1,911
1,877
1,907
1,932
2,011
2,055
2,130
2,106
2,036
2,024
2,046
9,298
9,568
9,703
9,747
9,610
9,520
9,489
9,452
9,519
9,495
9,623
9,979
1940
1971
1973-- J a n . . . .
Feb....
Mar
Apr
May...
June...
July...
Aug—
Sept....
Oct
Nov
Dec....
t Service station and miscellaneous credit-card accounts and homeheating-oil accounts. Bank-credit-card accounts outstanding are included
in estimates of instalment credit outstanding.
See also NOTE to table at top of preceding page.
A 56
CONSUMER CREDIT • FEBRUARY 1974
INSTALMENT CREDIT EXTENDED AND REPAID, BY TYPE OF CREDIT
(In millions of dollars)
Automobile paper
Total
Other consumer
goods paper
Home improvement
loans
Personal loans
Period
S.A. 1
N.S-tA.
S.A. 1
N.S.A.
S.A. 1
N.S.A.
S.A. 1
N.S.A.
S.A. 1
N.S.A.
Extensions
1972—De c
1 9 7 3 — J an
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
26,329
29,504
33,507
38.332
43,873
47,821
55,599
66,859
27,192
26,320
31,083
32,553
29,794
34,873
40,194
46,453
82,832
87,171
99,984
109,146
112,158
124,281
142,951
165,083
1966
J 967
1968
1969
1970
1971
1972
1973
27,088
28,978
32,860
35,430
35,528
38,343
43,152
47,043
2,223
2,369
2,534
2,831
2,963
3,244
4,006
4,728
12,627
13,643
3,763
3.195
4,876
6,171
351
280
3,637
3,997
13,304
13,434
13,852
13,465
13,932
13,646
14,542
14,294
13,691
14,149
14,275
12,677
11,923
11,214
13,681
13,661
14,792
14,608
14,812
15,099
12,624
14,454
14,098
14,117
4,006
3,972
4,001
3,822
3,989
3,762
3,930
3,968
3,939
3,912
3,819
3,315
3,393
3,407
4,164
4,101
4,409
4.313
4 ; 177
4,252
3,476
4.196
3,693
2,872
5,282
5,245
5,349
5,563
5.504
5.505
5,943
5.961
5.537
5,911
5,978
5,254
4,949
4,252
5; 169
5,378
5,698
5,678
5,753
6,065
5,217
5,894
5,980
6,826
329
364
406
365
374
400
433
408
410
415
402
429
259
300
377
372
431
450
472
471
420
439
389
348
3,687
3,853
4,096
3,715
4,065
3,979
4,236
3,957
3,805
3,911
4,076
3,679
3,322
3,255
3,971
3,810
4,254
4,167
4,410
4,311
3.511
3,925
4,036
4,071
Repayments
24,080
27,847
31,270
34,645
40,721
44,933
49,872
59,409
25,619
26,534
27,931
29,974
30,137
31,393
34,729
39,452
77,480
83,988
91,667
99,786
107,199
115,050
126,914
144,978
1966
1967
1968
1969
1970
1971
1972
1973
25,663
27,405
30,163
32,710
33,835
35,823
39,095
42,540
2,118
2,202
2,303
2,457
2,506
2,901
3,218
3,577
1972—Dec
10,964
10,636
2,977
2,740
4,341
4,155
263
253
3,383
3,488
1 9 7 3 — J an
11,355
11,437
11,808
12,061
11,941
12,034
12,544
12,399
12,332
12,449
12,549
12,267
11,887
10,623
12,265
12,014
12,283
12,121
12,618
12,501
11,341
12,937
12,308
12,080
3,097
3,145
3,225
3,218
3,261
3,253
3,334
3,293
3,406
3,427
3,471
3,338
3,169
2,943
3.371
3,233
3,369
3,282
3,374
3.372
3,151
3,661
3,414
3,113
4,649
4,627
4,755
4.963
4,917
4,955
5,141
5,168
5,072
5,149
5,154
5,001
5,077
4,409
5,013
4,888
5,043
4,921
5,031
5,135
4,703
5,281
5,020
4,888
267
275
286
294
290
300
308
298
322
308
301
332
267
2.54
288
292
298
303
315
307
309
324
303
317
3,342
3,390
3,542
3,586
3,473
3,526
3,761
3,640
3,532
3,565
3,623
3,596
3,374
3,017
3,593
3,601
3,573
3,615
3,898
3,687
3,178
3,671
3,571
3,762
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
Net change in credit outstanding
1966
1967
1968
1969
1970
1971
1972
1973
2,249
1,657
2,237
3,687
3,152
2,888
5,727
7,450
1,573
-214
3,152
2,579
-343
3,480
5,465
7,001
5,352
3,183
8,317
9,360
4,959
9,231
16,037
20,105
2
1,425
1,573
2,697
2,720
1.693
2,520
4,057
4,503
105
167
231
374
457
343
788
1,151
1972—Dec
1,663
3,007
786
455
535
2,016
88
27
254
509
1 9 7 3 — J an
1,949
1.997
2,044
1,404
1,991
1,612
1.998
1,895
1,359
1,700
1,726
410
36
591
1,416
1,647
2,509
2,487
2,194
2,598
1,283
1,517
1,790
2,037
909
827
776
604
728
509
596
675
533
485
348
-23
224
464
793
868
1,040
1,031
803
880
325
535
279
-241
633
618
594
600
587
550
802
793
465
762
824
253
-128
-157
156
490
655
757
722
930
514
613
960
1,938
62
89
120
71
84
100
125
110
88
107
101
97
- 8
46
89
80
133
147
157
164
111
115
86
31
345
463
554
129
592
453
475
317
273
346
453
83
-52
238
378
209
681
552
512
624
333
254
465
309
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
1
Includes adjustments for differences in trading days.
2 Net changes in credit outstanding are equal to extensions less repayments.
NOTE.—Estimates are based on accounting records and often include
financing charges. Renewals and refinancing of loans, purchases and
sales of instalment paper, and certain other transactions may increase
the amount of extensions and repayments without affecting the amount
outstanding.
For back figures and description of the data, see "Consumer
Credit," Section 16 ( N e w ) of Supplement to Banking and Monetary
Statistics,
1965, a n d BULLETINS f o r D e c . 1968 a n d O c t . 1972.
FEBRUARY 1974 • CONSUMER CREDIT
A 57
INSTALMENT CREDIT EXTENDED AND REPAID, BY HOLDER
(In millions of dollars)
Commercial banks
Total
Other financial
lenders
Finance companies
Retail outlets
Period
S.A.i
N.S.A.
S.A.i
N.S.A.
S.A.i
N.S.A.
S.A.i
N.S.A.
S.A.i
N.S.A.
Extensions
1966
1967
1968
1969
1970
1971
1972
1973
...
16,494
18,090
19,122
20,240
21,526
22,143
24,541
28,722
10,368
11,238
13,206
15,198
15,720
17,966
20,607
23,414
25,897
26,461
30,261
32,753
31,952
32,935
38,464
43,221
30,073
31,382
37,395
40,955
42,960
51,237
59,339
69,726
82,832
87,171
99,984
109,146
112,158
124,281
142,951
165,083
1972—Dec
12,627
13,643
5,313
5,096
3,355
3,766
1.791
1,642
2,168
3,139
1973—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
13,304
13,434
13,852
13,465
13,932
13,646
14,542
14,294
13,691
14,149
14,275
12,677
11,923
11,214
13,681
13,661
14,792
14,608
14,812
15,099
12,624
14,454
14,098
14,117
5,762
5,664
5,853
5,644
5,859
5,684
5,976
6,195
5,809
6,060
6,222
5,124
5,246
4,826
5,890
5,973
6,356
6,219
6,232
6,518
5,376
6,169
5,697
5,224
3,517
3,557
3,654
3,555
3,820
3,584
3,824
3,685
3,602
3,623
3,564
3,279
3,033
2,972
3,598
3,576
4,027
3,817
3,931
3,877
3,189
3,765
3,722
3,714
1,706
1,964
2,131
1.792
1,868
1,978
2,110
1,943
2,019
1,951
2,029
1,897
1,509
1,711
2,083
1,832
2,060
2,211
2,233
2,194
1,912
1,968
1,929
1,772
2,319
2,249
2,214
2,474
2,385
2,400
2,632
2,471
2,261
2,515
2,460
2,377
2,135
1,705
2,110
2,280
2,349
2,361
2,416
2,510
2,147
2,552
2,750
3,407
Repayments
1966
1967
1968
1969
1970
1971
1972
1973
. .
15,470
17,421
18,588
19,142
20,742
21,892
22,742
26,540
9,342
10,337
11,705
13,193
14,354
16,033
18,117
20,358
24,952
26,681
28,763
30,981
31,705
31,730
35,259
38,066
27,716
29,549
32,611
36,470
40,398
45,395
50,796
60,014
77,480
83,988
91,667
99,786
107,199
115,050
126,914
144,978
.
...
1972—De c
10,964
10,636
4,485
4,191
2,952
3,105
1,561
1,499
1,966
1,841
1973—Ja n
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
11,355
11,437
11,808
12,061
11,941
12,034
12,544
12,399
12,332
12,449
12,549
12,267
11,887
10,623
12,265
12,014
12,283
12,121
12,618
12,501
11,341
12,937
12,308
12,080
4,734
4,684
4,870
4,919
4,976
4,890
5,112
5,146
5,167
5,212
5,345
5,088
4,881
4,392
5,084
4,902
5,108
4,927
5,166
5,202
4,839
5,460
5,163
4,890
3,033
3,030
3,141
3,251
3,100
3,241
3,312
3,241
3,144
3,287
3,143
3,151
2,944
2,718
3,279
3,248
3,246
3,309
3,278
3,263
2,830
3,393
3,200
3,358
1,532
1,625
1,665
1.693
1,612
1.694
1,771
1,738
1,757
1,703
1,814
1,766
1,655
1,459
1,648
1,694
1,651
1,726
1,923
1,780
1,591
1,782
1,739
1,710
2,056
2,098
2,132
2,198
2,253
2,209
2,349
2,274
2,264
2,247
2,247
2,262
2,407
2,054
2,254
2,170
2,278
2,159
2,251
2,256
2,081
2,302
2,206
2,122
Net change in credit outstanding
5,352
3,183
8,317
9,360
4,959
9,231
16,037
20,105
1966
1967
1968
1969
1970
1971
1972
1973
1972—De c
1973—Ja n
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
1
1,663
1,949
1.997
2,044
1,404
1,991
1,612
1.998
1,895
1,359
1,700
1,726
410
3,007
36
591
1,416
1,647
2,509
2,487
2,194
2,598
1,283
1,517
1,790
2,037
1,028
980
983
725
883
794
864
1,049
642
848
877
36
905
365
434
806
1,071
1,248
1,292
1,066
1,316
537
709
534
334
Includes adjustments for differences in trading days.
Net changes in credit outstanding are equal to extensions less repayments, except in certain months when data for extensions and repayments have been adjusted to eliminate duplication resulting from large
transfers of paper. In those months the differences between extensions
and repayments for some particular holders do not equal the changes in
2
403
484
527
513
304
720
343
512
444
458
336
421
128
661
89
254
319
328
781
508
653
614
359
372
522
356
1,024
669
534
1,098
784
251
1,799
2,182
1,026
901
1,501
2,005
1,366
1,933
2,490
3,056
945
-220
1,498
1,772
-168
1,205
3,205
5,155
2,357
1,833
4,784
4,485
2,977
5,842
8,543
9,712
828
2
230
143
202
1,298
174
339
466
99
256
284
339
205
262
248
215
131
-146
252
435
138
409
485
310
414
321
186
190
62
263
151
82
276
132
191
283
197
-3
268
213
115
-272
-349
-144
110
71
202
165
254
66
250
544
1,285
their outstanding credit. Such transfers do not affect total instalment
credit extended, repaid, or outstanding.
NOTE.—Other financial lenders include credit unions and miscellaneous lenders. See also NOTE to preceding table and footnote 1 at bottom of p.
A-54.
A 58
INDUSTRIAL PRODUCTION: S.A. • FEBRUARY 1974
MARKET GROUPINGS
(1967 = 100)
Grouping
1967
proportion
1973
age
1973
1972
p
100.0 125.6
Feb.
Mar.
Dec.
Jan.
121.1
122.2 123.4 123.7
Apr.
May
124.1
124.8 125.6
June
July
Aug.
126.7
126.5
r
Dec.
Sept. r Oct. r Nov.
126.8 127.0 127.5
116.8
118.6
119.3
119.6
120.0
120.8
121.3
127.7
101.5
127.7
124.4
129.8
102.9
128.4
124.5
130.2
104.1
129.5
126.7
130.8
104.1
129.4
127.0
130.9
104.7
129.3
127.7
131.8
105.7
130.5
128.3
131.9 132.8
106.6 107.3
132.0 132.5
129.0 130.9
124.3 124.3
122, .7
122.4
121.4
131.2 132.3 132,.6
107.6 108.5 108,.9
132.1 131.0 130 .6
130.9 131.3 131. 1
135.0
136.0
137.8
140.4
140.5
141.5
141.8
134.0
62.21 123.4 119.1 120.7 121.5 121.7 122.0 122.9 123.7 124.2 123.7
Products, total
48.95
Consumer goods
Intermediate products
121.3
28.53 131 .7
20.42 106.7
13.26 131.1
37.79 129.3
122.1
126.7
125.2 124.1
123.5
122.2
133.4 130.9
109.8 109.8
131.4 130.5
131.7 131.0
Consumer goods
Autos
Auto parts and allied goods
Home goods
Appliances, TV, and radios
Appliances and A/C
Carpeting and furniture
Misc. home goods
Nondurable
consumer
goods
Clothing
Consumer staples
Consumer foods and tobacco....
Nonfood staples
Consumer chemical products..
Consumer paper products
Consumer fuel and lighting...
Residential utilities
7.86
139.0
5.02
1.41
.92
.49
1.08
2.53
140.3 130.5
144.8 133.3
156.9 151.1
99.9
150.0 139.0
133.6 125.3
20.67
125.0
129.0
138.2
137, .3
139.0
134.7
141.7 121.1
134.0 103.9
156.7 154.2
129.8 131,.4 135.1 122.2
118.4 122..5 124.8 106.2
151.8 148,.4 154.4 : 15 2. 8
134.5 135.8 138.3 139.8 140.9 141.3
140.7 137.8 143.0 149.7 148.0 147.2
153.2 153.8 156.9 157.6 157.8 154.1
142.9 141.1
147.8 146.3
156.0 153.3
142.9 140 .9 141.2
149.4 143,.4 140.4
159.8 159 .3 154.7
141.8
142.1
157.6
146.7 147.8 148.9
131.4 134.0 134.7
155.4 154.2
134.7 132.9
153.3 153 .9 152.7
134.8 134,.1 136.7
152.8
137.2
127.2
129.1
130 .8
129.5
142.1
127.5
127.4
4.32 116.0 112.2 115.1
16.34 132.4 128.4 130.7
8.37 122.2 119.1 121.1
7.98 143.1 138.1
2.64 153.3 143.9
1.91 121.3 119.3
3.43 147.5 144.1
2.25 156.8 153.6
142.4
142.6 142.6
129.8 132.6
167.0 161.9
2.84 136.8 142.9 138.6 141.7 144.1 141.7
1.87 125.4 133.9 130.2 131.5 130.8 128.1
.97 158.9 160.0 155.0 161.4 169.9 167.5
145.0 145.7
130.9 132.7
127.3
127.1
128.0
128.1
115.2 115.4 114.5 114.2 116.0 116.5
130.5 130.3 130.6 131.7 131.4 132.5
121.5 120.9 121.0 120.9 119.6 121.3
130.2
130.1
131.2
117.0 118.0 116,.8 117.7
133.6 133.2 134,.5 134.8
121.9 122.2 123,.3 125.5
132.7
125.3
140.9 140.0 140.1
148.8 149.9 151.1
119.1 119.4 118.7
147.1 144.0 143.8
156.5 154.4 153.5
140.7
151.5
119.0
144.4
152.3
143.1 143.7
154.9 153.5
121.7 121.7
145.6 148.2
152.1 155.4
144.1
153.0
122.5
149.2
157.8
145.8
155.6
124.1
150.4
160.0
144.8
153.4
124.4
149.7
160.9
146..2
156..2
122,.5
151..9
161,.9
144.5 140.6
154.9 156.6
123.6 120.3
148.4 139.3
158.0 147.8
123.0
124.6
125.8
126.2
127.7
Equipment
114.4
116.9
118.2
118.6
119.6
121.3
122.5
Industrial equipment
Building and mining equip
Manufacturing equipment
Power equipment
6.77 120.1
1.45 120.4
3.85 113.0
1.47 138.5
111.5
112.3
102.5
134.1
113.0
113.0
104.7
134.6
114.5
115.1
106.1
135.5
115.6
116.0
107.5
137.1
117.4
118.1
109.4
137.6
119.1
118.8
112.0
138.2
119.8 120.5 122.5
119.1 119.6 123.0
113.1 113.9 115.1
138.3 138.5 141.0
Commercial, transit, farm eq
Commercial equipment
Transit equipment
Farm equipment
5.97
3.30
2.00
.67
125.5
135.0
109.8
125.1
117.6
126.5
101.7
120.0
121.4
128.8
110.0
118.3
122.4
129.9
111.8
117.6
121.9
130.6
110.2
114.6
122.2
131.3
107.5
120.9
123.7
131.6
109.8
126.5
125.4
134.1
109.7
129.3
7.68
80.2
80.1
79.8
80.0
79.7
80.3
81.8
81.0
80.6
82.0
80.1
5.15
81.5
81.0
80.1
80.1
80.0
Business
equipment
Defense
and space equipment
Military products
12.74
122.6
124.1 124..5
123.7 124.,7
117.3 117.,3
142.3 143.,0
125.8 127.0 127.7 128.. 1
135.9 137.0 138.2 140., 1
109.0 108.4 109.6 109..8
126.4 132.8 129.4 123..5
81.1
79.7
81.1
79.0
79.8
79 A
12" .3
125.5 125.4
126.0 127.0
118.0 118.6
144.6 141.3
130.3 129.5
141.3 139.7
111.4 111.5
132.4 133.4
80. .0
80.0
80.9
79..3
78.6
79.8
Intermediate products
5.93 134.2 128.7 129.6 130.3 130.7 132.2 132.2 135.9 134.5 135.3 134.9 134.,3 135.4 134.9
7.34 128.6 126.9 127.4 128.9 128.3 127.0 129.2 128.9 132.7 129.6 128.1 127.,5 128.1 126.9
Materials
20.91
Consumer durable parts
Equipment parts
Durable materials nec
Nondurable
goods materials
Textile, paper, and chem. mat
Nondurable materials n.e.c
Fuel and power, industrial
4.75
5.41
10.75
13.99
130.1
123.5
124.1
126.6
127.6
127.9
128.6
129.1
126.4
126.3
127.7
127.1
128.5
128.9
129.2
131.7
131.8
132.3
132. 2
133.6
133.8
130.3
130. 1
130.2
128.9
127.8 123.6 123.9 125.4 125.9 129.0 125.7 128.8 126.9 128.6 129.9 128. 2 129.0 122.5
119.3 112.0 111.6 113.0 114.6 113.8 118.0 118.2 124.5 122.3 122.1 122. 1 125.9 127.3
136.5 129.2 130.6 134.2 134.9 134.7 135.3 134.9 137.6 138.0 138.7 139. 0 139.5 142.1
129.4
8.58 139.8 136.0 136.0 136.5 136.3 138.8 139.4 140.2
5.41 112.2 111.4 110.9 113.9 112.7 112.2 112.3 112.3
2.89 123.9 119.5 120.6 122.7 122.6 122.1 122.9 125.3
130.4
130.6
142.2 142.4 141.9 141. 4 141.9
112.1 111.7 112.0 112. 3 111.6
126.9 126.3 128.3 126. 9 124.7
139.3
112.4
123.0
Supplementary groups
Containers
Gross value of products
in market structure
9.34 129.0 122.0 125.5
1.82 139.9 135.0 137.1
126.3 127.6 128.1
138.8 145.2 139.1
128.6 129.7 130.7 130.0 131.3
138.0 141.4 135.1 140.5 139.8
129. 8 130.3
141. 2 142.0
130.7
141 .0
i|
(In billions of 1963 dollars)
Products,
total
Final products
Consumer goods
Equipment
Intermediate products
F o r NOTE s e e p. A - 6 1 .
446.2
437.3
442.8
445.7
446.9
336.3
235.9
100.6
101.3
340.5
237.6
103.0
102.2
342.7
238.2
104.6
103.0
343.9 343.7 346.6
239.5 238.9 241.1
104.5 104.8 105.6
102.7 102.3 103.1
449.7
451.8
452.9
446.2
449.8
452.6
347.8 347.7 341.9 346.3 349.7
241.3 241.0 235.4 239.0 241. 7
106.6 106.6 106.6 107.3 108.
104.3 104.8 104.6 103.5 103.
?1
455.1
450.6
352.4
243.5
109.2
103.7
346.9
237.9
108.9
103.6
FEBRUARY 1974 • INDUSTRIAL PRODUCTION: S.A.
A 59
INDUSTRY GROUPINGS
(1967 = 100)
1967
proportion
Grouping
age
1973
1972
!
v
Nov. r j Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
120.4
125.6
126.5
126.1
126.3
126.4
127.4
126.8
122.6 123.3
130.9 130.7
130.7 131.3
111.5 111.8
154.8 155.8
123.5
130.4
131.5
111.9
156.2
124.8
131.3
130.3
111.4
153.7
123.9
131.0
125.9
110.0
146.0
129.5
129.5
130.6
133.4
132.8
121.4
122.7
123.4
123.8
124.9
117.5
127.0
127.3
108.5
151.0
118.7
128.4
128.0
110.2
150.5
119.9
128.6
127.3
109.5
149.6
120.6
128.4
126.6
109.0
148.7
121.8
129.3
127.0
109.1
149.5
123.0 123.8
129.3 130.5
128.2 130.4
109.5 111.0
151.5 154.8
12.55 .128.8
124.0
124.3
125.4
125.8
127.3
128.1
128.7
125.2
Sept.
Oct. r
Dec.
52.33 122.1 116.3
36.22 129.6 126.2
11.45 128.9 126.1
6.37 110.2 108.2
5.08 152.3 148.5
88.55
Utilities
1973
Durable manufactures
Primary
and fabricated
metals
Machinery
Aerospace and misc. trans, e q . . .
Lumber,
clay
and glass
Lumber and products
Clay, glass, and stone products
Furniture
130.6
6.61 127.1 125.4 123.1 124.7 123.5 125.8 126.1 124.5 128.1 125.6
4.23 121.6 120.0 118.6 120.0 117.5 119.7 119.8 119.9 120.9 118.5
5.94 130.7 122.3 125.7 126.2 128.4 128.9 130.3 133.4 133.5 133.8
and miscellaneous
118.3
32.44
117.3
111.2
112.5
113.7
115.1
115.7
117.3
118.8
119.3
117.7
118.9
118.9
119.4
17.39
9.17
8.22
9.29
4.56
4.73
2.07
3.69
125.9
125.1
126.8
109.2
138.1
81.4
138.4
85.4
116.8
114.4
119.6
106.6
135.9
78.3
126.6
87.8
118.4
116.3
120.8
107.6
139.3
77.1
130.1
87.0
119.1
117.3
121.2
110.0
141.5
79.7
131.9
87.6
121.4
119.0
123.9
110.3
141.0
80.8
133.8
87.1
122.6
121.5
123.8
110.0
140.1
81.1
134.7
86.4
124.7
124.0
125.4
111.0
140.9
82.2
138.9
85.4
126.9
126.1
127.8
112.2
143.3
82.2
140.2
86.7
127.6
127.1
128.0
112.1
144.1
81.3
140.8
86.7
128.5
128.9
128.2
105.7
131.0
81.3
140.9
83.8
130.0
130.0
129.8
107.3
133.9
81.7
141.5
83.7
129.2
130.0
128.5
108.8
136.4
82.3
141.0
83.8
130.5 130.8
130.4 130.6
130.8 130.9
108.3 103.1
134.8 122.9
84.1
82.9
142.9 143.6
82.3
83.9
4.44
129.5
123.7
126.4
127.3
129.1
129.9
130.3
129.2
129.8
129.2
131.4
1.65
2.79
128.9
129.9
122.7 125.8
124.3 126.8
2.90
135.2
127.7
130.3
1.38 126.3 120.3 119.1
1.52 143.3 134.5 140.5
Furniture and fixtures
Miscellaneous manufactures
127.8 128.7 133.4 133.0
122.7 123.6 129.6 129.1
131.5 132.4 133.5 132.4
128.8
129.7
125.4 128.4
132.3 129.6
128.9 127.4 133.2 133.7
128.8 131.2 130.4 129.4
135.4
135.9
137.5
138.2
136.1
126.5
143.6
127.5
143.5
129.5
144.9
130.4 128.8
145.3 142.9
128.5
126.6
129.5 129.1 127.5 126.6
128.9 130.4 132.0 130.5
132.8
133.4
133.1
136.0
122.3 122.8 123.8 126.5
142.4 143.0 141.6 144.5
135.5
130.9
136.0
127.9 127.6
142.4 143.6
Nondurable manufactures
Textiles, apparel, and leather
Paper and printing
petroleum,
and
114.7
7.92
122.1
113.2
113.4
120.3
120.0
3.18 135.4 133.6 131.8
4.74 113.2 111.3 112.1
Paper and products
Printing and publishing
Chemicals,
6.90
114.4
2.69 127.1 124.2 125.3 126.1
3.33 112.9 111.1 112.3 112.6
.88 £3.6 87.4 81.3 85.1
Textile mill products
Apparel products
Leather and products
rubber....
Chemicals and products
Petroleum products
Rubber and plastics products
Foods and tobacco
Foods
Tobacco products
121.5
113.3
115.0
114.5
115.4
117.5
116.8
127.1 126.1
112.4 111.7
85.0 86.8
127.2 129.2 128.9 129.0 130.2 130.2 129.7
110.0 111.0 112.1 113.6 115.4 114.9 114.9
82.7
83.0 86.6 79.2 81.0 86.4 83.1
122.4
122.0
122.8
123.8
124.5
122.1
121.3
114.6
114.0
120.8
134.1 137.1 133.6 135.1 134.6
113.0 112.4 112.2 113.2 114.8
135.3 137.0 134.8 135.3
116.0 116.2 113.6 112.1
151.1
151.8
151.0
150.9
149.8
147.9
150.2
146.3
145.5
146.3
143.8
149.3
7.86 150.1 144.7 146.4 147.2 146.8 147.8 150.2 150.4 152.0 151.4 153.0 152.7
1.80 127.4 125.5 127.3 124.1 123.5 126.9 128.5 129.7 129.3 128.2 126.0 130.4
2.26 164.0 154.7 157.1 160.4 163.4 165.1 166.8 163.9 168.8 167.9 163.6 161.9
11.92
118.5
121.5
119.5
121.3
116.2
111.8
116.9
122.0
122.2
121.7
121.9
117.5
130.0
82.4
120.5
136.2 134.9
112.3 110.8
151.2
152.0
129.5
165.6
124.6
151.4
153.7
125.8
163.7
123.9
122.0
121.5
122.9
110.3
121.8 121.3
118.1 112.9
116.4
117.6
117.0
106.5
107.1
107.3 108.9 109.5 109.2 109.5 109.7 109.0 106.9
108.4
107.6
99.7
103.9 105.7 99.9 100.9 108.0 109.0 104.0 109.8 103.0 104.1
109.1 107.9 108.3 108.4 109.1 109.5 110.0 109.7 110.8 109.8 108.0
119.6
9.48
121.9
8.81
.67
122.7 119.7 120.5
111.6 102.5 107.9
1.26
118.1
113.7
108.3
106.8
120.7
116.5
122.4 120.3 122.4 122.9 123.2 122.4 125.3
111.2 108.1 105.3 110.1 109.1 113.7 115.8
124.4
Mining
Metal,
stone
and earth minerals
.51
.75
Metal mining
Stone and earth minerals
Coal
5.11
oily and gas
.69 103.6 98.6 99.1
4.42 109.0 108.2 107.7
Coal
Oil and gas extraction
116.8
120.6
120.4
120.9
121.3
122.0
130.8 128.1 130.3 131.9 127.8 128.5 127.0 121.6 128.4 131.4 136.6 138.3 135.2 135.2
109.5 104.0 106.9 107.8 109.4 108.8 108.8 105.2 109.1 113.1 109.5 109.2 111.7 113.1
Utilities
Electric
Gas
F o r NOTE s e e p . A - 6 1 .
••
3.91
1.17
160.7 155.6 159.1
124.2
158.3 157.4 156.2 156.8 159.7
164.0 163.8
165.1
165.3
162.2 153.5
A 60
INDUSTRIAL PRODUCTION: N.S.A. • FEBRUARY 1974
MARKET GROUPINGS
(1967 = 100)
Grouping
Total index
1967
proportion
Consumer goods
Equipment
Intermediate products
Materials
Dec.
Jan.
Feb.
Mar.
Apr.
123.6
124.6
May
June
July
Aug.
122.4
126.7
117.3
118.9
124.5
125.6
128.9
123.4
114.2
112.0
120.2
100.5
122.4
120.0
130.3
105.5
131.4
130.9
127.3
121.6
48.95
Final products
1973
1972
100.0 125.6
62.21
Products, total
1973
average p
121.3
28.53 131.7
20.42 106.7
13.26 131.1
37.9 129.3
116.6
120.6
122.5
121.8 121.2
119.1
120.0 118.9
115.3
125.3 129.2 130.8 129.2
101.4 104.9 105.0 104.6
121.2 126.1 128.5 129.6
122.8 128.6 129.2 129.9
122.2
125.1
122.2
125.1
118.9
136.4 128.6 134.1
109.2 105.2 105.7
135.2 131.8 135.5
131.4 123.7 129.2
Sept. r Oct. r
131.0
130.4
130.6 129.1
128.6 127.2
141.8 139.2
110.3 110.3
137.6 136.2
131.8 132.5
Consumer goods
Durable
consumer
goods
Automotive products
Autos
Auto parts and allied g o o d s . . . .
Home goods
Appliances, TV, and home audio
Appliances and A / C
TV and home audio
Carpeting and furniture
Misc. home goods
7.
2.84
1.87
.97
139.0
125.1
133.3
140.6
143.5
141.3
142.7
147.5
129.2
126.9
146.2
149.6
136.8
125.4
158.9
123.9
109.8
150.9
138.5
134.
145.7
149.
144.6
157.7
151.5
143.9
166.0
147.6
135.8
170.2
147.4
138.2
165.0
154.4
148.5
165.8
124.3
108.5
154.5
100.5
69.1
160.8
136.6
121.9
164.9
146.6
140.3
158.6
5.02
140.3
144.8
156.9
125.8
130.3
135.8
138.9
137.7
140.1
143.6
139.7
153.7
142.6
157.0
149.0 148.2
166.2 165.6
148.5
166.1
146.8
162.7
132.0
130.1
150.5
141.8
135.0
134.1
151.7 151.3
161.6 165.5
168.7 176.5
141.0
120.4
150.2
125.9
149.1
129.0
146.1 146.3
128.2 132.7
151.1
138.6
134.4
132.1
156.5
139.3
159.
143.0
156.2
141.2
124.9
116.6
126.0 124.6
120.0 119.3
127.6 126.0
118.4 117.8
125.6
132.2
128.4
136.8
140.1
135.2
115.3
128.3
120.7
122.4
134.8
123.8
104.3 121.7
134.8 140.8
120.2 128.0
124.3
144.3
133.2
121.5
138.8
130.0
148.0
164.9
126.5
147.0
154.9
1.41
.92
.49
1.08
2.53
122.0
134.6
98.4
156.'6 140.0
133.6 121.9
20.67
129.0
Clothing
Consumer staples
Consumer foods and t o b a c c o . . .
4.32
16.34
8.37
116.0
132.4
122.2
122.2
103.0 105.9
122.5 126.5
111.6 113.8
Nonfood staples
Consumer chemical products.
Consumer paper products....
Consumer fuel and lighting..
Residential utilities
7.98
2.64
1.91
3.43
2.25
143.1
153.3
121.3
147.5
156.8
134.0
133.8
113.2
145.8
154.5
139.9
139.9
112.4
155.3
168.5
137.8 137.2
140.2 147.3
116.2 115.5
148.0 141.6
160.
151.
134.7
146.9
117.8
134.6
140.4
136.2
154.0,
117.0 1
133.2
135.5
146.3
164.2
125.1
144.4
148.7
150.1
157.6
123.1
159.5
177.3
154.3
157.5
133.2
163.6
178.9
156.0
166.4
132.1
161.4
177.5
119.8
116.8
119.7
116.8
120.3
121.9
121.0
115.7
109.3
137.3
121.1
117.9
115.6
111.4
137.1
126.4
117.2
109.6
135.3
119.3
115.7
136.7
128.6 128.5
126.1 126.0
128.3 126.7
1 1 8 . 6 118.5
143.7 145.1
131.5
144.7
108.0
136.3
Nondurable
consumer
goods
118.4
127.1
117.0
Equipment
122.6
112.0
114.4
119.6
Industrial equipment
Building and mining equip
Manufacturing equipment
Power equipment
6.77
1.45
3.85
1.47
114.3
101.7
130.2
111.6
112.0
103.4
132.7
116.4
120.4
113.0
138.5
108.9
133.9
Commercial, transit, farm eq
Commercial equipment
Transit equipment
Farm equipment
5.97
3.30
2.00
.67
125.5
135.0
109.8
125.1
113.6
122.3
99.2
113.2
117.6
123.0
108.
118.9
123.3 123.2
127.8 126.9
114.8 114.9
126.2 129.7
7.68
80.2
81.5
5.15
80.3
82.4
81.2
134.2 121.9
128.6 122.5
120.5
121.7
20.91
130.1
121.8
4.75
5.41
10.75
127.8
119.3
136.5
111.0
125.1
121.6 128.8 130.7 131.2
126.8 129.3 129.4 130.0
110.8 114.7 117.5 117.4
124.7 135.7 137.9 138.7
13.99
129.1
123.9
124.5
Business
Defense
equipment
and space equipment
Military products
12.74
120.
110.6
79.8
118.6
122.9 124.7
129.1 131.6
110.8 112.0
128.2 128.6
122.6
120.2
116.2
141.8
117.4
115.9
108.8
141.3
130.7
140.1
113.8
134.9
123.5
139.3
102.6
108.2
122.9
140.4
96.8
113.9
131.3
141.8
115.5
126.5
81.8
79.5
79.6
80.7
79.9
80.1
80.3
81.3
80.0
80.5
78.8
80.8
78.4
79.0
79-0
128.0 131.9
124.5 125.7
135.0
125.2
136.4
127.4
140.7
130.7
131.6
131.9
136.0
135.0
139.8
135.9
140.1
133.0
132.2
132.8
124.4
128.9
132.9
120.4
116.3
130.3
122.9
119.4
136.3
133.4
130.5
120.7
139.9
130.8
80.5
81.9
80.4
Intermediate products
Construction products
5.93
7.34
Misc. intermediate products
Materials
Durable
goods materials
Consumer durable parts
Equipment parts
Durable materials n.e.c
Nondurable
goods materials
Textile, paper, and chem. mat
Nondurable materials n.e.c
Fuel and power, industrial
Supplementary groups
Home goods and clothing
Containers
For N o t e see p. A-61.
126.
8.58
5.41
2.89
139.8 131.8
112.2 111.4
123.9 120.3
9.34
1.82
129.0
139.9
115.3
125.0
129.2
133.7 139.6
110.0 112
122.6 124.5
119.0
129.4
126.9
140.5
128.8
118.7
140.6
128.7
123.3
140.6
129-9
122.3
139.6
129.4
130.7
123.4
130.1
123.2
142.2 142.2
112.6 112.7
122.7 123.9
132.1
109.7
119.9
133-1
140.9
111.1
122.3
130.4
111.2
141.3
112.4
126.6
141.8
112.4
127.3
144.4
115-3
127-2
130.2
142.6
129.2
139.4
128.6
140.9
119.2
131.2
132.5
144.6
139.1 137-5
142.9 149-8
128.2
139.0
133.8
145.8
Nov.r
Dec.
FEBRUARY 1974 • INDUSTRIAL PRODUCTION: N.S.A.
A 61
INDUSTRY GROUPINGS
(1967 = 100)
Grouping
Manufacturing,
total
Durable
Nondurable
Mining
1967
proportion
1973
average p
88.55
52.33
36.22
Nov.
130.2
130.2
128.1
125.9
136.4
126.3
135.9
125.2
132.3
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
125.2
116.3
117.6
123.2
124.6
124.7
125.8
128.9
121.1
125.3
122.1
129.6
128.9
110.2
152.3
113.3
120.6
114.9
121.5
121.0
126.3
122.5
127.7
122.4
128.0
123.2
129.5
125.8
133.3
128.6
127.5
125.0
122.7
128.2
119.3
133.9
125.2
123.6
117.9
125.6
133.0
137.2
137.1
131.2
127.4
125.0
109.2
145.4
107.0
155.7
109.2
150.6
107.6
146.8
108.5
140.5
110.7
139.9
110.9
149.9
108.3
164.1
112.3
168.4
112.5
168.0
112.9
154.3
112.0
146.7
110.8
142.9
128.8
120.5
120.4
130.0
132.1
131.7
131.2
130.5
121.6
130.3
131.0
130.2
118.9
114.2
122.3
118.5
112.3
122.6
131.3
125.8
128.5
133.8
128.3
130.1
133.9
128.5
129.3
131.7
125.8
130.7
127.7
121.1
133.7
116.4
112.7
127.5
725.5
121.6
117.1
129.8
131.3
127.1
121.6
130.7
129.5
125.6
133.3
125.9
118.4
135.3
127.1
120.5
135.4
128.3
122.9
132.4
32.44
117.3
109.0
111.8
116.0
117.1
116.7
117.9
121.7
114.1
113.0
121.2
122.1
120.7
115.1
17.39
9.17
8.22
9.29
4.56
4.73
2.07
3.69
125.9
125.1
126.8
109.2
138.1
81.4
138.4
85.4
114.6
112.5
117.0
103.2
129.2
78.1
125.3
88.2
116.9
114.0
120.2
108.7
142.6
76.0
126.3
87.5
121.8
121.2
122.4
113.5
148.6
79.6
128.1
87.9
123.3
122.2
124.5
114.0
147.3
82.0
131.5
87.8
123.5
122.3
124.8
112.8
144.9
81.8
130.5
86.4
124.9
124.0
125.9
113.4
145.6
82.4
137.5
85.6
129.4
129.6
129.2
116.3
151.2
82.7
143.1
87.1
122.2
122.9
121.4
104.0
129.0
79.8
140.8
86.0
125.8
126.3
125.2
94.0
108.5
80.1
143.9
82.8
133.0
132.2
134.0
108.3
135.2
82.4
147.4
83.4
132.0
129.6
134.8
113.7
145.8
82 7
145.4
83.2
130.4
129.2
131.8
112.3
142.6
83.1
144.5
82.4
126.8
127.1
126.4
99.3
115.4
83.8
142.2
84.3
4.44
129.5
115.4
115.3
123.2
127.2
130.9
132.8
135.1
128.9
134.9
134.5
136.1
131.5
123.6
1.65
2.79
128.9
129.9
111.9
117.5
115.6
115.1
128.4
120.1
130.5
125.3
131.3
130.7
128.6
135.3
132.3
136.8
123.3
132.3
132.8
136.2
134.4
134.6
133.1
137.8
131.1
131.7
125.7
122.3
2.90
135.2
127.6
126.1
134.3
133.9
132.4
132.5
137.2
127.6
138.9
142.9
140.5
140.4
135.9
1.38
1.52
126.3
143.3
121.5
133.2
121.6
130.2
128.7
139.4
127.3
139.9
124.2
139.9
123.0
141.2
125.7
147.6
114.5
139.5
128.7
148.2
131.7
153.1
130.1
150.0
131.7
148.4
128.9
142.2
6.90
114.7
103.9
106.4
115.4
118.2
116.9
113.8
120.4
102.0
120.0
121.7
120.1
115.5
106.3
2.69
3.33
.88
127.1
112.9
83.6
117.0
98.7
83.3
117.8
103.9
80.6
126.1
113.7
88.7
129.6
116.3
89.9
128.7
115.6
85.8
129.1
110.0
81.3
135.0
117.4
87.1
112.1
102.6
68.7
133.6
118.1
85.5
133.2
121.7
86.7
132.8
118.6
87.0
129.1
112.9
83.3
118.6
7.92
122.1
113.8
113.2
118.7
120.4
121.4
122.8
125.7
121.8
128.4
127.1
127.9
124.2
114.0
3.18
4.74
135.4 123.6
113.2 107.3
130.2
101.7
137.5
106.0
138.9
107.9
137.6
110.6
138.5
112.2
138.4
117.2
127.6
117.9
136.7
122.8
133.0
123.1
142.3
118.2
138.7
114.4
124.8
106.8
153.8
147.1
151.3
154.8
155.2
152.3
147.8
152.6
133.2
161.2
157.0
130.4
166.5
155.8
132.1
171.5
152.0
129.4
171.6
148.2
125.9
164.0
6.37
5.08
Mining
Utilities
r
Oct. r
Dec.
11.45
and utilities
1973
1972
122.4
120.6
124.9
Durable manufactures
Primary
and fabricated
metals
Primary metals
Iron and steel, subtotal
Nonelectrical machinery
Electrical machinery
Transportation equipment
Motor vehicles and parts
Aerospace and misc. trans, eq. . .
Instruments
Ordnance, private and Govt
Lumber,
clay, and glass
Lumber and products
Clay, glass, and stone products
Furniture
and miscellaneous
Furniture and fixtures
Miscellaneous manufactures
12.55
6.61
4.23
5.94
Nondurable manufactures
Textiles, apparel,
and leather
Textile mill products
Apparel products
Leather and products
Paper and products
Printing and publishing
78.5
149.3
150.1
127.4
164.0
140.3
141.1
144.8
145.6
147.6
150.6
7.86
1.80
2.26
139.5
125.2
155.0
140.5
123.9
156.8
143.8
120.9
167.3
145.0
119.5
168.3
148.8
121.3
164.4
152.2 155.5
127.0 132.8
164.0 164.6
and tobacco
9.48
121.9
113.8
114.9
117.4
118.1
117.1
120.0
123.1
131.7
129.9
126.2
118.9
8.81
.67
122.7
111.6
115.9
86.0
115.4
107.7
117.7
113.5
118.1
118.3
117.8
108.0
120.7
110.1
119.2
Foods
Tobacco products.
123.7
115.6
121.1
93.9
127.2
118.5
132.9
115.9
130.5
122.5
126.9
116.7
120.5
1.26
118.1
108.7
103.4
105.7
109.0
116.4
125.7
125.3
119.0
125.5
126.2
125.3
119.2
116.8
130.8
109.5
115.0
104.4
114.0
96.2
120.6
95.5
118.7
102.4
127.2
109.0
143.4
113.6
144.0
112.6
133.9
108.9
139.7
115.8
143.4
114.4
138.7
116.2
124.7
115.5
121.4
113.6
5.11
108.3
109.3
107.9
110.1
107.2
106.5
107.0
107.3
105.6
109.0
109.1
109.8
110.2
109.3
.69
4.42
103.6
109.0
98.0
111.1
98.0
109.5
104.2 1 3 4 . 3 101.7
111.0 107.6 107.2
102.9
107.7
103.2
108.0
89.3
108.1
110.8
108.7
112.7
108.5
110.1
109.8
106.4
110.8
99.1
110.9
3.91
1.17
160.7
124.2
151.6
165.1
158.5
153.8
144.6
157.5
175.9
181.5
181.0
163.0
153.1
149.4
Chemicals,
petroleum,
and rubber
Chemicals and products
Petroleum products
Rubber and plastics products
Foods
11.92
150.3
132.8
147.4
.126.6
Mining
Metal,
stone, and earth minerals
Metal mining
Stone and earth minerals
Coal,
oil, and gas
Coal
Oil and gas extraction
.51
.75
Utilities
Electric
Gas
NOTE.—Pages A-58 and A-59 include revisions stemming from changes
in seasonal adjustment factors, and pages A-60 and A-61 include revisions in some series that are not seasonally adjusted, beginning in
March 1972 in both instances. Data for the complete year of 1972 are
available in a pamphlet Industrial Production Indexes 1972 from Pub-
145.4
1
lications Services, Division of Administrative Services, Board of Governors
of the Federal Reserve System, Washington, D.C. 20551.
Published groupings include series and subtotals not shown separately. Figures for individual series and subtotals are published in the
monthly Business Indexes release.
A 62
BUSINESS ACTIVITY; CONSTRUCTION • FEBRUARY 1974
SELECTED BUSINESS INDEXES
(1967= 100, except as noted)
Manufacturing
Industrial production
Industry
Market
Period
Products
Total
Final
Inter- Matemediate rials
Consumer Equipgoods ment
Total
Total
Manufacturing
Capacity
utilization
in mfg.
(1967
output
= 100)
Construction
contracts
Prices
2
Nonagricultural
employment—
Total i
Employment
Payrolls
Total
retail
sales 3
4
Consumer
Wholesale
commodity
1955..
1956..
1957..
1958..
1959..
58.5
61.1
61.9
57.9
64.8
56.6
59.7
61.1
58.6
64.4
54.9
58.2
59.9
57.1
62.7
59.5
61.7
63.2
62.6
68.7
48.9
53.7
55.9
50.0
54.9
62.6
65.3
65.3
63.9
70.5
61.5
63.1
63.1
56.8
65.5
58.2
60.5
61.2
56.9
64.1
90.0
88.2
84.5
75.1
81.4
76.9
79.6
80.3
78.0
81.0
92.9
93.9
92.2
83.9
88.1
61.1
64.6
65.4
60.3
67.8
59
61
64
64
69
80.2
81.4
84.3
86.6
87.3
87.8
90.7
93.3
94.6
94.8
1960
1961..
1962..
1963
1964..
66.2
66.7
72.2
76.5
81.7
66.2
66.9
72.1
76.2
81.2
64.8
65.3
70.8
74.9
79.6
71.3
72.8
77.7
82.0
86.8
56.4
55.6
61.9
65.6
70.1
71.0
72.4
76.9
81.1
87.3
66.4
66.4
72.4
77.0
82.6
65.4
65.6
71.4
75.8
81.2
80.1
77.6
81.4
83.0
85.5
86.1
89.4
82.4
82.1
84.4
86.1
88.6
88.0
84.5
87.3
87.8
89.3
68.8
68.0
73.3
76.0
80.1
70
70
75
79
83
88.7
89.6
90.6
91.7
92.9
94.9
94.5
94.8
94.5
94.7
1965..
1966,,
1967..
1968..
1969..
89.2
97.9
100.0
105.7
110.7
88.1
96.8
100.0
105.8
109.7
86.8
96.1
100.0
105.8
109.0
93.0
98.6
100.0
106.6
111.1
78.7
93.0
100.0
104.7
106.1
93.0
99.2
100.0
105.7
112.0
91.0
99.8
100.0
105.7
112.4
89.1
98.3
100.0
105.7
110.5
89.0
91.9
87.9
87.7
86.5
93.2
94.8
100.0
113.2
123.7
92.3
97.1
100.0
103.1
106.7
93.9
99.9
100.0
101.4
103.2
88.1
97.8
100.0
108.3
116.6
91
97
100
109
114
94.5
97.2
100.0
104.2
109.8
96.6
99.8
100.0
102.5
106.5
1970.,
1971
1972
1973?
106.6
106.8
115.2
125.6
106.0
106. A
113.8
123.4
104.5
104.7
111.9
121.3
110.3
115.7
123.6
131.7
96.3
89.4
95.5
106.7
111.7
112.6
121.1
131.1
107.7
107.4
117.4
129.3
105.2
105.2
114.0
125.2
78.3
75.0
'78.6
83.0
123.1
145.4
165.3
107.2
107.3
110.5
114.8
98.0
93 9
96.7
101.9
114.1
116.3
130.2
146.9
120
122
142
116.3
121.2
125.3
133.1
110.4
113.9
119.8
135.5
121.1
119.1
116.8
127.7
101.5
127.7
124.4
120.4
5 81.5 163.0
112.4
99.6
139.3
151
127.3
122.9
122.2 120.7 118.6 129.8 102.9
123.4 121.5 119.3 130.2 104.1
123.7 121.7 119.6 130.8 104.1
124.1 122.0 120.0 130.9 104.7
124.8 122.9 120.8 131.8 105.7
125.6 123.7 121.3 131.9 106.6
126.7 124.2 122.1 132.8 107.3
126.5 123.7 121.4 131.2 107.6
126.8 124.3 122.4 132.3 r 108.5
127.0 '124.3 r 122.7 rr 132.6 r 108.9
r
127.5 rr 1 2 5 . 2 r 123.5 133.4 r 109.8
r
126.7 124.1 '122.2 '130.9 109.8
128.4
129.5
129.4
129.3
130.5
132.0
132.5
132.1
131.0
r
130.6
r
131.4
r
130.5
124.5
126.7
127.0
127.7
128.3
129.0
130.9
130.9
131.3
'131.1
'131.7
131.0
121.4
122.7
123.4
123.8
124.9
125.6
126.5
126.1
126.3
r
126.4
r
127.4
126.8
181.0
• 82.8 191.0
193.0
177.0
'83.3 173.0
183.0
175.0
83.3 206.0
182.0
191.0
11
82.7 194.0
161.0
J
112.7
113.5
113.8
114.0
114.4
114.7
114.6
115.0
115.3
116.0
116.4
116.4
99.9
100.7
101.0
101.5
101.7
102.1
101.8
102.1
102.1
102.9
'103.3
'103.3
139.8
142.9
142.6
144.8
144.9
145.3
146.3
146.7
149.8
151.7
'155.8
'153.6
156
158
160
157
159
157
163
162
163
165
164
160
127.7
128.6
129.8
130.7
131.5
132.4
132.7
135.1
135.5
136.6
137.6
138.5
124.5
126.9
129.7
130.7
133.4
136.7
134.7
142.9
140.2
139.5
141.8
145.3
129.4
130.3
125.8
116.0
102.5
149.4
164
1 9 7 2 - -Dec
1973--Jan
Feb
Mar
May
June
July
Aug
Sept
Oct
Nov
Dec.?
1974--Jan.f
125.7
123.0
121.1
129.2
109.7
1
2
Employees only: excludes personnel in the Armed Forces.
Production workers only.
3 F.R. index based on Census Bureau figures.
4
Prices are not seasonally adjusted. Latest figure is final.
5
Figure is for 4th quarter 1972NOTE.—All series: Data are seasonally adjusted unless otherwise noted.
Capacity utilization: Based on data from Federal Reserve, McGrawHill Economics Department, and Dept. of Commerce.
Construction contracts; McGraw-Hill Informations Systems Company
F.W. Dodge Division, monthly index of dollar value of total construction
contracts, including residential, nonresidential, and heavy engineering;
does not include data for Alaska and Hawaii.
Employment and payrolls: Based on Bureau of Labor Statistics data;
includes data for Alaska and Hawaii beginning with 1959.
Prices: Bureau of Labor Statistics data.
CONSTRUCTION CONTRACTS AND PRIVATE HOUSING PERMITS
(In millions of dollars, except as noted)
1972
Type of ownership and
type of construction
1971
Nov.
Total construction
1
80,188
1973
1972
91,183 7,248
Dec.
Jan.
6,464 6,795
By type of ownership:
Public
Private i
23,927 24,084 1,785 1,650 1,918
56,261 67,098 5,462 4,814 4,877
By type of construction:
Residential building 1
Nonresidential building
Nonbuilding
34,754 45,123 3,663
25,574 27,082 2,184
19,282 18,982 1,402
Private housing units authorized.
(In thousands, S.A., A.R.)
1,925
Mar.
Apr.
May
6,839
8,644 8,814 9,428
1,717 2,046 2,071 2,359
5,122 6,599 6,743 7,069
June
July
Aug.
Sept.
9,910 9,228 10,303 8,151
2,995 2,581
6,916 6,647
Oct.
2,328 2,055
5,822 6,928
3,120 3,195 3,277 4,643 4,512 4,754 4,612 4,224 4,233
2,215 2,420 2,229 2,707 2,634 2,629 2,976 2,991 3,241
1,132 1,180 1,333 1,294 1,668 2,045 2,322 2,013 2,828
3,638 3,673
2,719 2,758
1,794 2,552
2,399 2,226 2,399
2,233
NOTE.—Dollar value of construction constracts as reported by the
2,209
2,129
1,939
1,838
2,030
1,780
1,750
r
Nov.
8,983
2,968
7,335
1
Because of improved procedures for collecting data for 1 -family homes,
some totals are not strictly comparable with those prior to 1968. To improve comparability, earlier levels may be raised by approximately 3 per
cent for total and private construction, in each case, and by 8 per cent for
residential building.
Feb.
l ,596 1,316
McGraw-Hill Informations Systems Company, F.W. Dodge Division.
Totals of monthly data exceed annual totals because adjustments—
negative—are made in accumulated monthly data after original figures
have been published.
Private housing units authorized are Census Bureau series for 14,000
reporting areas with local building permit systems; 1971 data are for
13,000 reporting areas.
A 63
FEBRUARY 1974 • CONSTRUCTION
VALUE OF NEW CONSTRUCTION ACTIVITY
(In millions of dollars)
Public
Private
Nonresidential
Period
Total
Total
Buildings
Residential
Total
Industrial
Commercial
Other
buildings 1
Total
Military
Highway
Conservation
Other 2
&
development
Other
1962 3
1963 4
1964
59,965
64,563
67,413
42,096
45,206
47,030
25,150
27,874
28,010
16,946
17,332
19,020
2,842
2,906
3,565
5,144
4,995
5,396
3,631
3,745
3,994
5,329
5,686
6,065
17,869
19,357
20,383
1,266
1,179
910
6,365
7,084
7,133
1,523
1,694
1,750
8,715
9,400
10,590
1965
1966
1967
1968
1969
73,412
76,002
77,503
86,626
93,368
51,350
51,995
51,967
59,021
65,404
27,934
25,715
25,568
30,565
33,200
23,416
26,280
26,399
28,456
32,204
5,118
6,679
6,131
6,021
6,783
6,739
6,879
6,982
7,761
9,401
4,735
5,037
4,993
4.382
4,971
6,824
7,685
8,293
10,292
11,049
22,062
24,007
25,536
27,605
27,964
830
727
695
808
879
7,550
8,405
8,591
9,321
9,250
2,019
2,194
2,124
1,973
1,783
11,663
12,681
14,126
15,503
4,822
197 0
197 1
197 2
94,167
109,238
123,836
66,071
79,367
93,640
31,864
43,268
54,186
34,207
36,099
39,454
6,538
5,423
4,676
9,754
11,619
13,462
5,125
5,437
5,898
12,790
13,620
13,418
28,096
29,871
30,196
718
901
1,080
9,981
10,658
10,448
1,908
2,095
2,172
4,832
4,820
4,996
1972—Nov.
Dec..
126,831
131,550
97,506
98,450
57,167
57,545
40,339
40,905
4,617
4,765
13,607
13,865
6,235
6,220
15,880
16,055
29,325
33,100
1,200
1,188
10,585
11,045
2,042
2,065
15,498
18,802
1973—Jan..
Feb..
Mar.
Apr..
May,
June,
July.
Aug.
Sept.
Oct. r
Nov.
Dec.,
135,748
136,416
137,467
133,794
134,139
133,775
136,863
136,867
136,863
136,463
136,762
133,573
102,046
104,128
103,838
101,234
101,790
102,803
105,368
105,815
103,689
102,980
102,931
100,083
59,357
61,487
60,747
58,047
57,453
58,178
59,439
59,829
58,966
56,290
54,604
52,590
42.689
42,641
43,091
43,187
44,337
44,625
45,929
45,986
44,723
46.690
48,327
47,493
5,292
5,180
5,479
5,287
5,338
5,928
6,340
6,687
6,324
6,573
6,742
6,788
15,001
14,873
15,071
15,474
16,118
15,704
16,110
15,800
15,111
15,561
16,139
15,407
6,002
6,145
6,179
6,282
6,252
6.383
6,492
6,122
5,742
5,883
6,035
6,096
16,394
16,443
16,362
16,144
16,629
16,610
16,987
17,377
17,546
18,673
19,411
19,202
33,702
32,288
33,629
32,560
32,349
30,972
31,495
31,052
33,174
33,483
33,831
33,490
1,221
1,422
1,303
1,158
1,277
1,162
1,341
1,048
962
1,032
1,040
1,113
1 Includes religious, educational, hospital, institutional, and other buildings.
2 Sewer and water, formerly shown separately, now included in "Other."
3 Beginning July 1962, reflects inclusion of new series affecting most
private nonresidential groups.
2,446
1,989
2,825
2,062
2,569
2,235
1,977
2,196
2,330
1,992
1,762
4
Beginning 1963, reflects inclusion of new series under "Public" (for
State and local govt, activity only).
NOTE.—Census Bureau data; monthly series at seasonally adjusted
annual rates.
NEW HOUSING UNITS
(In thousands)
Units started
Private (S.A., A.R.)
Private and public
(N.S.A.)
Period
Region
Type of structure
Mobile
home
shipments
(N.S.A.)
Governmentunderwritten
(N.S.A.)
Total
North- North
Central
east
South
West
1family
2- to 4family
5- or
morefamily
Total
Private
Public
Total
FHA
VA
196 3
196 4
1,603
1,529
261
254
328
340
591
578
430
357
1,012
970
108
450
1,635
1,561
1,603
1,529
292
264
221
205
71
59
151
191
196 5
196 6
196 7
196 8
196 9
1,473
1,165
1,292
1,508
1,467
270
206
215
227
206
362
288
337
369
349
575
472
520
266
198
220
294
324
964
778
844
900
814
87
72
81
85
422
325
376
527
571
1,510
1,196
1,322
1,546
1,500
1,473
1,165
1,292
1,508
1,467
246
195
232
283
284
197
158
180
227
233
49
37
53
56
51
217
240
318
413
197 0
197 1
197 2
1,434
2,052
2,357
218
264
330
294
434
443
612
310
482
527
813
1,151
1,309
85
120
141
536
781
906
1,469
2,084
2,379
1,434
2,052
2,357
482
621
475
421
528
371
93
104
1972—Dec.
2,369
486
330
1,080
473
1,207
128
1,034
153
151
1973—Jan..
Feb..
Mar.
Apr.
May,
June
July.
Aug.
Sept.
Oct.'
Nov.
Dec.
2,497
2,456
2,260
2,123
2,413
2,128
2,191
2,094
1,804
1,646
1,696
1,355
348
366
297
292
267
370
225
287
283
248
294
192
599
571
415
387
595
474
487
481
410
383
309
276
1,086
1,087
1,142
890
999
837
1,063
841
748
673
788
608
464
432
406
554
552
447
416
485
363
342
355
279
1,450
1,372
1,245
1,202
1,271
1.124
1,247
1.125
982
956
936
762
163
123
123
131
162
129
151
111
98
75
83
74
884
961
892
790
980
875
793
858
724
615
677
519
147
140
147
138
200
205
234
203
203
197
148
147
132
89
618
588
869
1,057
NOTE.—Starts are Census Bureau series (including farm starts) except
for Govt.-underwritten, which are from Federal Housing Admin, and
Veterans Admin, and represent units started, including rehabilitation
589
61
201
205
234
203
203
200
149
150
133
89
19
21
27
27
29
25
20
23
15
15
16
11
61
216
401
497
576
42
38
12
14
19
18
41
43
57
62
57
57
50
54
45
46
40
18
17
12
14
10
9
units under FHA, based on field office reports of first compliance inspections. Data may not add to totals because of rounding.
Mobile home shipments are as reported by Mobile Homes Manufacturers Assn.
A 64
EMPLOYMENT • FEBRUARY 1974
LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT
(In thousands of persons, except as noted)
Civilian labor force (S.A.)
Total noninstitutional
population
(N.S.A.)
Not in
labor force
(N.S.A.)
Total
labor
force
(S.A.)
Employed 1
Total
Total
In nonagricultural
industries
In
agriculture
Unemployed
Unemployment
rate 2
(per cent;
S.A.)
1967
196 8
196 9
197 0
197 1
197 2
197 3
133,319
135,562
137,841
140,182
142,596
145,775
148,263
52,527
53,291
53,602
54,280
55,666
56,785
57,222
80,793
82,272
84,240
85,903
86,929
88,991
91,040
77,347
78,737
80,734
82.715
84,113
86.542
88,714
74,372
75,920
77,902
78,627
79,120
81,702
84,409
70,527
72,103
74,296
75,165
75,732
78,230
80,957
3,844
3,817
3,606
3,462
3,387
3,472
3,452
2,975
2,817
2,832
4,088
4,993
4,840
4,304
3.8
3.6
3.5
4.9
5.9
5.6
4.9
1973—Jan..
Feb..
Mar.
Apr.
May
June
July.
Aug.
Sept.
Oct.
Nov.
Dec.
147,129
147,313
147,541
147,729
147,940
148,147
148,361
148,565
148,782
149,001
149,208
149,436
59,008
58,238
57,856
57,906
58,050
55,417
55,133
56,129
57,484
56,955
57,040
57,453
89,404
90,108
90,523
90,622
90,597
91,133
91,139
91,011
91,664
92,038
92,186
92,315
87,000
87.716
88,162
88,272
88,263
88,818
88,704
89,373
89,749
89,903
90,033
82,619
83,230
83,782
83,854
83,950
84,518
84,621
84,513
85,133
85,649
85,649
85,669
79,130
79,784
80,313
80,498
80,630
81,088
81,109
81,088
81,757
82,194
82,088
82,026
3,489
3,446
3,469
3,356
3,320
3,430
3,512
3,425
3,376
3,455
3,561
3,643
4,381
4,486
4,380
4,418
4,313
4,300
4,207
4,191
4,240
4,100
4,254
4,364
5.0
5.1
5.0
5.0
4.9
4.8
4.7
4.7
4.7
4.6
4.7
4.8
1974—Jan.,
149,656
58,303
92,801
90.543
85,811
82,017
3,794
4,732
5.2
88,828
1 Includes self-employed, unpaid family, and domestic service workers.
2
Per cent of civilian labor force.
NOTE.—Bureau of Labor Statistics. Information relating to persons 16
years of age and over is obtained on a sample basis. Monthly data relate
to the calendar week that contains the 12th day; annual data are averages
of monthly figures. Description of changes in series beginning 1967 is
available from Bureau of Labor Statistics.
EMPLOYMENT IN NONAGRICULTURAL ESTABLISHMENTS, BY INDUSTRY DIVISION
(In thousands of persons)
Contract
construction
Total
Manufacturing
65,857
67,915
70,284
70,593
70,645
72,764
19,447
19,781
20,167
19,349
18,529
18,933
613
606
619
623
602
607
3,208
3,285
3,435
3,381
3,411
3,521
1973—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec.?
74,252
74,715
74,914
75,105
75,321
75,526
75,493
75,747
75,961
76,363
76,679
76,631
19,463
19,586
19,643
19,727
19,782
19,856
19,804
19,861
19,882
20,016
20,095
20,091
610
612
610
608
608
629
631
634
633
639
644
645
1974—Jan. p
76,372
19,966
1973—Jan....
Feb....
Mar.. .
Apr....
May...
June...
July. . .
Aug
Sept...
Oct
Nov.. .
73,343
73,724
74,255
74,861
75,404
76,308
75,384
75,686
76,238
76,914
77,322
77,399
1974—Jan.?
75,467
Period
196 7
196 8
196 9
197 0
197 1
1972.
Transportation & public utilities
Trade
Finance
Service
Government
4,261
4,310
4,429
4,493
4,442
4,495
13,606
14,084
14,639
14,914
15,142
15,683
3,225
3,382
3,564
3,688
3,796
3,927
10,099
10,623
11,229
11,612
11,669
12,309
11,398
11,845
12,202
12,535
12,858
13,290
3,498
3,594
3,604
3,571
3,620
3,654
3,680
3,676
3,700
3,694
3,711
3,730
4,574
4,580
4,580
4,591
4,593
4.597
4.598
4,617
4,629
4,671
4,654
4,639
16,013
16,114
16,163
16,217
16,256
16,262
16,294
16,352
16,388
16,465
16,520
16,400
3,995
4,014
4,024
4,031
4,044
4,049
4,048
4.064
4,078
4,088
4,095
4.098
12,621
12,682
12,716
12,746
12,776
12,820
12,828
12,906
12,995
13,044
13,122
13,124
13,478
13,533
13,574
13,614
13,642
13,659
13,610
13,637
13,656
13,746
13,838
13,904
645
3,601
4,665
16,363
4.099
13,107
13,926
19,279
19,420
19,521
19,586
19,667
20,002
19,729
20,018
20,132
20,168
20,202
20,113
598
598
598
603
608
642
644
648
641
640
643
641
3,155
3,184
3,294
3,442
3,616
3,837
3,934
3,981
3,944
3,923
3,822
3,637
4,510
4,507
4,539
4,559
4,593
4,661
4,653
4,659
4,671
4,680
4,659
4,639
15,865
15,776
15,880
16,088
16,200
16,335
16,262
16,279
16,367
16,515
16,780
17,115
3,959
3,978
4,000
4,019
4,040
4,089
4,113
4,121
4,082
4,076
4,079
4,078
12,406
12,530
12,627
12,771
12,865
12,999
12,982
13,009
12,982
13.057
13,096
13.058
13,571
13,731
13,796
13,793
13,815
13,743
13,067
12,971
13,419
13,855
14,041
14,118
19,781
633
3,248
4,600
16,236
4,062
12,884
14,023
Mining
SEASONALLY ADJUSTED
NOT SEASONALLY ADJUSTED
Dec.p.
.
NOTE.—Bureau of Labor Statistics; data include all full- and parttime employees who worked during, or received pay for, the pay period that includes the 12th of the month. Proprietors, self-employed
persons, domestic servants, unpaid family workers, and members of
Armed Forces are excluded.
Beginning with 1970, series has been adjusted to Mar. 1971 benchmark.
FEBRUARY 1974 • EMPLOYMENT AND EARNINGS
A 65
PRODUCTION WORKER EMPLOYMENT IN MANUFACTURING INDUSTRIES
(In thousands of persons)
Seasonally adjusted 1
Industry group
1973
1974
1973
1974
Jan.
Nov.
Dec.?
Jan.?
Jan.
Nov.
Dec.?
Jan.f
14,295
14,774
14,773
14,661
14,130
14,886
14,800
14,491
8,307
102
539
424
539
1,031
8,712
93
548
434
561
1,096
8,707
96
554
433
566
1,095
8,607
95
554
433
565
1,074
8,243
103
521
424
519
1,024
8,765
95
548
441
565
1,079
8,731
97
546
438
559
1,082
8,540
95
535
433
545
1,066
Fabricated metal products
Machinery
Electrical equipment and supplies
Transportation equipment
Instruments and related products
Miscellaneous manufacturing industries
1,091
1,324
1,316
1,310
292
339
1,137
1,441
1,417
1,324
318
343
1,132
1,445
1,424
1,298
320
344
1,131
1,426
1,400
1,259
319
351
1,085
1,323
1,315
1,319
291
320
1,150
1,431
1,436
1,342
320
359
1,143
1,447
1,437
1,318
322
343
1,126
1,425
1,399
1,268
318
311
Food and kindred products
Tobacco manufactures
Textile-mill products
5,988
1,181
59
893
1,161
548
6,062
1,184
62
903
1,155
562
6,066
1,187
62
904
1,153
559
6,054
1,190
62
907
1,142
563
5,887
1,121
58
890
1,143
545
6,121
1,208
68
907
1,168
566
6,069
1,174
66
909
1,150
563
5,951
1,129
61
904
1,125
559
662
590
119
522
253
664
608
120
549
255
667
610
122
548
254
665
611
122
541
251
659
585
115
519
252
668
606
120
554
256
674
608
120
551
254
662
606
117
538
250
Durable goods
Ordnance and accessories
Lumber and wood products
Furniture and fixtures
Stone, clay, and glass products
Primary metal industries
Paper and allied products
Printing, publishing, and allied industries
Chemicals and allied products
Petroleum refining and related industries
Rubber and misc. plastic products
Leather and leather products
1
Not seasonally adjusted 1
Data adjusted to 1971 benchmark.
NOTE.—Bureau of Labor Statistics; data cover production and related
workers only (full- and part-time) who worked during, or received pay for,
the pay period that includes the 12th of the month.
HOURS AND EARNINGS OF PRODUCTION WORKERS IN MANUFACTURING INDUSTRIES
Average hours worked 1
(per week; S.A.)
Industry group
1974
Jan.*5
Nov.
Dec.f
Jan.p
40.3
40.6
40.7
39.9
173.45 166.32
Ordnance and accessories
Lumber and wood products
Furniture and fixtures
Stone, clay, and glass products
Primary metal industries
41.3
42.5
39.9
39.0
41.1
42.4
41.4
42.1
40.3
39.4
42.1
43.4
41.3
42.7
41.2
39.7
42.1
42.5
40.3 173.43 183.43 187.71 178.00
43.2 176.38 189.06 193.95 195.24
40.6 134.55 146.73 152.03 146.10
40.0 120.96 132.93 136.49 132.78
40.9 162.01 180.62 180.18 171.20
40.6 206.49 224.89 223.55 211.93
Fabricated metal products
Machinery
Electrical equipment and supplies
Transportation equipment
Instruments and related products
Miscellaneous manufacturing industries...
41.4
42.4
40.4
42.3
40.4
38.7
41.6
42.3
40.2
41.1
40.9
38.9
41.6
42.6
40.1
41.2
41.1
38.9
40.8 169.33 181.40 183.98
41.9 188.26 197.16 205.28
39.4 153.14 159.17 161.99
38.6 209.50 213.62 225.78
40.7 153.56 163.14 168.06
38.6 124.42 130.87 131.71
176.95
197.35
156.81
199.16
163.62
129.84
39.1
40.1
36.6
39.5
34.5
42.5
39.7
40.8
40.7
40.6
35.7
42.7
39.7
40.8
39.1
40.7
35.9
42.8
37.8
41.6
41.9
41.0
37.2
37.9
42.0
43.0
41.2
38.0
37.8
41.9
42.8
40.8
37.5
Printing, publishing, and allied industries.
Chemicals and allied products
Petroleum refining and related industries .
Rubber and misc. plastic products
Leather and leather products
Data adjusted to 1971 benchmark.
Jan.
Nov.
Average hourly earnings 1
(dollars per hour; N.S.A.)
1974
1973
Jan.
Nondurable goods
Food and kindred products
Tobacco manufactures
Textile-mill products
Apparel and related products
Paper and allied products
1
1973
Average weekly earnings 1
(dollars per week; N.S.A.)
Dec.p
1973
Jan.
1974
Nov.
Dec.f
Jan.?
3.98
4.16
4.21
4.20
4.23
4.16
3.45
3.15
4.03
4.87
4.42
4.48
3.65
3.34
4.28
5.23
4.48
4.50
3.69
3.37
4.29
5.26
4.45
4.53
3.68
3.37
4.28
5.22
4.13
4.44
3.80
5.00
3.82
3.24
4.35
4.65
3.93
5.16
3.95
3.33
4.37
4.73
3.98
5.30
4.04
3.36
4.38
4.71
3.99
5.20
4.04
3.39
3 9 . 4 139.71 150.82 152.00 148.98
4 0 . 4 149.25 159.92 163.17 160.00
40.1 128.52 155.83 154.80 156.42
40.3 112.22 125.46 125.77 122.09
35.1
92.75 102.96 101.96 98.61
42.9 171.74 184.47 186.19 184.46
3.61
3.75
3.56
2.87
2.72
4.06
3.78
3.91
3.81
3.06
2.86
4.30
3.80
3.97
3.87
3.06
2.84
4.31
3.82
3.99
3.96
3.06
2.85
4.32
37.6 170.09 180.88 183.07 177.34
4 1 . 4 180.94 192.82 193.70 192.46
42.6 209.71 228.00 223.98 227.94
40.1 152.97 161.07 160.70 156.00
37.6 103.04 109.35 109.92 109.42
4.56
4.36
5.09
3.74
2.77
4.76
4.58
5.29
3.90
2.87
4.78
4.59
5.27
3.91
2.87
4.78
4.66
5.44
3.90
3.91
159.20 169.73
NOTE.—Bureau of Labor Statistics; data are for production and related
workers only.
A 66
PRICES • FEBRUARY 1974
CONSUMER PRICES
(1967 - 100)
Health and recreation
Housing
All
items
Food
1933
1941
1945
I960
1965
51.3
38.8
44.1
53.9
88.7
94.5
48.3
30.6
38.4
50.7
88.0
94.4
53.7
59.1
90.2
94.9
1966
1967
1968
1969
97.2
100.0
104.2
109.8
99.1
100.0
103.6
108.9
1970
1Q71
1972
1973
116.3
121.3
125.3
133.1
1072—"Dec
127.3
Period
19731973--Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
127.7
128.6
129.8
130.7
131.5
132.4
132.7
135.1
135.5
136.6
137.6
138.5
Homeownership
Fuel
oil
and
coal
Gas
and
electricity
86.3
92.7
40.5
48.0
89.2
94.6
81.4
79.6
98.6
99.4
97.2
100.0
104.2
110.8
98.2 96.3
100.0 100.0
102.4 105.7
105.7 116.0
97.0
100.0
103.1
105.6
114.9
118.4
123.5
141.4
118.9
124.3
129.2
135.0
110.1 128.5
115.2 133.7
119.2 140.1
124.2 146.7
126.0
131.2
121.0 142.6
Total
128.6
131.1
134.5
136.5
137.9
139.8
140.9
149.4
148.3
148.4
150.0
151.3
131.4
132.0
132.3
132.8
133.3
133.9
134.2
135.2
136.6
138.1
139.4
140.5
Rent
76.0
54.1
57.2
58.8
91.7
96.9
121.5 142.6
122.1 142.9
122.6 143.2
123.0 143.6
123.5 144.2
123.9 145.0
124.3 145.2
125.0 147.0
125.4 149.2
125.9 151.5
126.3 152.6
126.9 153.6
Fur- Apparel Transnishand
portaings
upkeep
tion
and
operation
Total
Medical
care
Personal
care
Reading
and
recreation
Other
goods
and
services
*93.*8
95.3
48.5
36.9
44.8
61.5
89.6
93.7
44.2
47.8
89.6
95.9
85.1
93.4
37.0
42.1
79.1
89.5
41.2
55.1
90.1
95.2
47.7
62.4
87.3
95.9
49.2
56.9
87.8
94.2
99.6
100.0
100.9
102.8
97.0
100.0
104.4
109.0
96.1
100.0
105.4
111.5
97.2
100.0
103.2
107.2
96.1
100.0
105.0
110.3
93.4
100.0
106.1
113.4
97.1
100.0
104.2
109.3
97.5
100.0
104.7
108.7
97.2
100.0
104.6
109.1
110.1
117.5
118.5
136.0
107.3
114.7
120.5
126.4
113.4
118.1
121.0
124.9
116.1
119.8
122.3
126.8
112.7
118.6
119.9
123.8
116.2
122.2
126.1
130.2
120.6
128.4
132.5
137.7
113.2
116.8
119.8
125.2
113.4
119.3
122.8
125.9
116.0
120.9
125.5
129.0
119.4
122.5
122.3
125.0
121.3
127.5
134.4
121.5
124.0
126.5
121.0
121.1
121.5
122.6
123.5
124.6
124.8
124.5
123.9
125.0
125.8
126.7
127.8
128.1
128.6
129.2
129.6
130.0
130.3
130.5
131.1
132.1
132.6
133.0
134.9
135.3
135.8
136.2
136.6
137.0
137.3
137.6
138.3
140.6
140.9
141.4
121.8
122.4
123.1
123.8
124.4
124.9
125.3
125.7
126.3
127.3
128.1
129.2
124.1
124.3
124.5
125.2
125.6
125.9
126.2
126.1
126.8
127.2
127.5
127.6
126.7
127.1
127.6
128.2
128.5
129.0
129.5
129.4
129.9
130.3
130.8
131.3
120.7
127.2
127.8
128.3
129.3
131.6
131.7
132.8
133.6
141.1
155.6
172.8
124.1
124.5
125.0
125.5
125.7
125.4
125.5
125.8
126.5
127.4
129.8
131.0
122.2
122.6
123.0
123.6
123.9
124.7
125.0
125.3
126.1
126.7
127.5
128.0
123.0
123.6
124.8
125.8
126.7
126.8
125.8
126.5
128.3
129.6
130.5
130.5
NOTE.—Bureau of Labor Statistics index for city wage-earners and
clerical workers.
WHOLESALE PRICES: SUMMARY
(1967 = 100, except as noted)
Industrial commodities
Poriod
I960.
1961.
1962.
1963.
1964.
ProAll
Farm cessed
com- prodfoods
Texmodi- ucts
and Total_ tiles,
ties
feeds
etc.
94.9
94.5
94.8
94.5
94.7
97.2
96.3
98.0
96.0
94.6
89.5
91.0
91.9
92.5
92.3
95.3
94.8
94.8
94.7
95.2
96.4
95.5
101.2 98.5
100.0 100.0
102.2 102.5
107.3 106.0
99.5
97.7
98.6
98.5
99.2
98.7
96.6
99.8 105.9
100.0 100.0
102.5 102.5
106.5 109.1
1970
1971 ,
1972.
1973,
110.4
113.9
119.1
135.5
111.0 112.0 110.0 107.2
112.9 114.3 114.0 108.6
125.0 120.8 117.9 113.6
176.3 148.1 126.9 123.8
1972—Dec
122.9
137.5
1973--Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
124.5 144.2
126.9 150.9
129.7 160.9
130.7 160.6
133.5 170.4
136.7 182.3
134.9 173.3
142.7 213.3
140.2 200.4
139.5 188.4
141.8 184.0
145.3 187.2
90.8
91.7
92.7
90.0
90.3
96.1
97.2
96.7
96.3
93.7
9 4 . 3 95.5
99.8
100.1 103.4 97.8
100.0 100.0 100.0
103.7 103.2 98.9
106.0 108.9 100.9
1965,
1966,
1967.
1968.
1969,
i Dec. 1968=100.
RubHides, Fuel, Chember,
icals,
etc.
etc.
etc.
etc.
Lum- Paper, Metber,
als,
etc.
etc.
etc.
103.1
99.2
96.3
96.8
95.5
95.3
91.0
91.6
93.5
95.4
99.0 95.9
99.4 97.8
100.0 100.0
9 9 . 8 103.4
99.9 105.3
95.9
100.2
100.0
113.3
125.3
101.8
100.7
99.1
97.9
98.3
MaTranschin- Furni- Nonme- porta- Misery
tion cellatallic
ture,
and
min- equip-1 neous
equip- etc.
ment
erals
ment
97.2
97.6
97.6
97.1
97.3
93.0
93.3
93.7
94.5
95.2
9 6 . 2 9 6 . 4 93.9 96.9 97.5
96.8 9 8 . 0 9 8 . 4
98.8 98.8
100.0 100.0 100.0 100.0 100.0
101.1 102.6 103.2 102.8 103.7
104.0 108.5 106.5 104.9 107.7
95.9
97.7
100.0
102.2
100.8 105.2
98.1
95.2
96.3
95.6
95.4
92.4
91.9
91.2
91.3
93.8
92.0
91.9
92.0
92.2
92.8
110.1 105.9 102.2 108.6 113.7 108.2 116.7 111.4
114.0 114.2 104.2 109.2 127.0 110.1 119.0 115.5
131.3 118.6 104.2 109.3 144.3 113.4 123.5 117.9
143.1 145.5 110.0 112.4 177.2 122.1 132.8 121.7
99.0
98.4
97.7
97.0
97.4
107.5 113.3
109.9 122.4
111.4 126.1
115.2 130.2
115.6
142.2
121.9
104.8
109.8
115.1
124.4
118.6
112.4
132.4 120.0 116.6
137.0 121.3 117.4
141.4 122.7 119.0
139.8 124.4 120.8
145.0 125.8 122.3
151.8 126.9 123.7
146.5 126.9 124.2
166.2 127.4 125.2
156.3 128.1 126.8
153.1 129.6 128.5
151.9 133.5 130.0
155.7 137.1 131.4
143.9
144.9
143.5
145.0
142.2
140.9
141.4
143.0
143.8
143.8
143.0
141.9
122.2
126.0
126.7
131.8
135.5
142.8
142.8
142.9
144.8
150.5
179.2
201.3
105.1
105.6
106.7
107.7
109.3
110.4
110.8
111.0
111.5
112.7
113.5
115.6
110.0 151.0 115.8
110.1 161.0 116.5
110.3 173.2 118.3
110.6 182.0 119.8
111.5 186.9 120.7
112.6 183.1 122.0
112.9 177.8 122.3
113.1 178.8 123.3
112.8 181.9 124.4
114.0 180.3 125.8
114.8 184.7 127.6
116.5 186.1 128.7
125.6
126.9
129.2
130.5
131.7
132.5
132.8
133.7
134.4
135.9
138.5
141.8
118.9
119.4
120.0
120.8
121.5
121.9
122.0
122.3
122.6
123.1
123.8
124.6
112.6 128.2
113.1 128.4
113.5 129.0
114.1 130.0
115.1 130.5
115.2 131.1
115.2 130.0
115.9 130.0
116.0 129.9
116.6 130.9
117.2 131.5
117.5 132.6
129.4
119.4
149.8
127.4
104.5
110.3
113.8
115.1
109.9
112.8
114.6
119.7
114.2 115.1
114.1
114.2
114.5
114.9
115.1
115.0
115.0
115.1
114.5
115.9
116.1
117.3
115.8
117.1
117.9
118.6
119.5
120.2
120.9
121.0
121.1
121.0
121.3
121.6
FEBRUARY 1974 • PRICES
WHOLESALE PRICES: DETAIL
(1967= 100)
1972
1973
1972
Group
Farm
Group
Hay and seeds
Other farm products
Processed
foods
and
Dec.
134.6
137.6
152.6
103.6
120.9
123.6
143.9
141.6
135.3
162.1
229.0
185.5
189.2
266.5
168.2
177.7
211.1
154.7
168.2
220.8
180.0
154.4
234.0
177.2
181.2
194.3
152.6
171.6
248.7
171.0
144.5
259.3
177.2
190.6
210.5
149.1
120.1
136.3
123.0
124.7
122.1
119.7
122.9
99.2
108.8
119.2
115.8
163.6
150.5
170.2
139.6
135.0
139.8
123.0
308.8
223.0
180.5
167.6
129.3
184.5
156.2
165.0
139.9
136.3
143.8
123.8
247.8
164.7
159.1
164.8
129.4
183.3
160.1
164.9
142.3
137.8
142.0
124.4
264.8
232.5
208.6
168.7
130.7
201.0
124.8
108.8
110.3
116.0
109.9
119.9
155.5
130.2
127.7
121.5
115.2
127.0
161.2
128.9
128.6
121.9
119.1
132.0
165.2
128.7
129.7
122.2
126.4
131.9
feeds:
Vegetable oil end products
Miscellaneous processed foods
Manufactured animal feeds
Textile products
and
Textile housefurniShings
Miscellaneous textile products
leather, and
Fuels and related products,
products:
and
and allied
Paint materials
Drugs and pharmaceuticals
Fats and oils, inedible
Agricultural chemicals and products..
Plastic resins and materials
Other chemicals and products
227.3
156.1
132.5
130.3
205.5
159.9
119.2
122.9
114.7
112.0
224.1
167.3
133.4
132.1
133.3
156.6
239.0
167.3
133.1
133.5
139.3
210.9
240.7
170.0
137.6
135.9
146.2
252.0
101.0
118.2
106.3
103.7
128.2
92.5
89.3
114.0
105.3
126.0
116.8
104.7
273.0
95.9
92.4
121.2
105.4
128.1
117.1
104.9
241.8
104.9
93.1
122.1
105.9
128.6
123.6
105.1
286.0
106.1
93.0
124.6
114.6
101.2
109.7
122.0
120.2
111.4
115.1
126.4
121.2
113.9
116.3
126.8
123.5
125.8
116.3
128.2
93.3
94.7
94.4
94.8
98.6
101.1
101.4
102.2
97.9
97.7
99.5
99.9
products:
Lumber
Millwork
Plywood
Other wood products
i Dec. 1968 = 100.
Furniture
167.9
130.7
132.3
130.5
214.5
149.4
134.6
158.2
211.1
149.5
169.9
159.0
214.8
150.4
166.0
159.1
and household
mineral
129.5
130.2
117.4
131.1
121.4
120.8
119.2
123.3
124.8
138.6
135.3
140.7
134.8
127.7
127.8
120.8
129.6
132.2
122.9
126.3
121.3
127.5
132.5
127.5
123.4
128.4
124.6
110.6
121.0
132.9
113.0
125.2
118.5
123.4
99.2
107.9
92.3
127.0
125.2
133.6
103.3
109.1
91.5
131.3
122.5
128.5
127.5
118.2
131.9
133.6
118.9
132.1
131.2
114.8
136.4
127.3
124.6
136.3
136.8
122.4
143.5
127.3
118.4
131.1
120.0
136.2
115.1
117.5
112.9
107.0
117.2
119.2
122.7
115.5
108.6
127.8
products:
Flat glass
Concrete ingredients
Concrete products
Structural clay products excluding
refractories
Refractories
Asphalt roofing
Gypsum products
Glass containers
Other nonmetallic minerals
equipment:1
Motor vehicles and equipment.
Railroad equipment
Miscellaneous
126.1
145.7
252.9
122.3
118.0
123.8
117.7
durables:
Household furniture
Commercial furniture
Floor coverings
Household appliances
Home electronic equipment
Other household durable g o o d s . . .
Transportation
115.4
111.5
133.6
117.5
107.1
115.8
107.2
equipment:
Agricultural machinery and equip...
Construction machinery and equip..
Metalworking machinery and equip
General purpose machinery and
equipment
Special industry machinery and
equipment
Electrical machinery and equip
Miscellaneous machinery
Nonmetallic
products:
Crude rubber
Tires and tubes
Miscellaneous rubber products
Plastic construction products (Dec.
1969 = 100)
Unsupported plastic film and sheeting
(Dec. 1970= 100)
Laminated sheets, high pressure
(Dec. 1 9 7 0 - 100)
and wood
239.8
160.4
131.9
130.1
products:
Industrial chemicals
and plastic
256.3
160.7
131.0
130.5
power:
Coal
Coke
Gas fuels
Electric power
Crude petroleum
Petroleum products, refined
Chemicals
255.2
162.2
128.7
128.4
and
Oct.
products:
Iron and steel
Steelmill products
Nonferrous metals
Metal containers
Hardware
Plumbing equipment
Heating equipment
Fabricated structural metal products
Miscellaneous metal products
Machinery
apparel:
Wool products
Manmade fiber textile products
skins,
and metal
Dec.
products:
Pulp, paper and products, excluding
building paper and board
Woodpulp
Wastepaper
Paper
Paperboard
Converted paper and paperboard..
Building paper and board
Metals
Cereal and bakery products
Meat, poultry, and fish
Dairy products
Processed fruits and vegetables
Sugar and confectionery
Beverages and beverage m a t e r i a l s . . . .
Animal fats and oils
Crude vegetable oils
Lumber
Nov.
Pulp, paper, and allied
Livestock
Live poultry
Plant and animal fibers
Fluid milk
Rubber
Oct.
products:
Fresh and dried produce
Hides,
Dec.
products:
Toys, sporting goods, small arms,
ammunition
Tobacco products
Notions
Photographic equipment and supplies
Other miscellaneous p r o d u c t s . . . .
NOTE.—Bureau of Labor Statistics indexes.
A 67
A 68
NATIONAL PRODUCT AND INCOME • FEBRUARY 1974
GROSS NATIONAL PRODUCT
(In billions of dollars)
Item
1933
1929
1941
1950
1969
1970
1971
1972
1972
1973 p
1973
IV
Gross national product.
Final purchases
103.1
101.4
5 5 . 6 124.5 284.8 930.3 977.1 1,055.51,155.2
57.2 120.1 278.0 922.5 972.6 1M9.41J49.1
Personal consumption expenditures.
Durable goods
Nondurable goods
Services
77.2
9.2
37.7
30.3
45.8
3.5
22.3
20.
Gross private domestic investment
16.2
1.4
8 0 . 6 191.0 579.5 617.6
9 . 6 30.5 90.8 9 1 . 3
4 2 . 9 98.
245.9 263.8
28.1 6 2 . 4 242.7 262.6
1,191.0
667.2 726.5 805.0
17.4 131
103.6
278.7 299.9 336.3
284.9 309.2 337.6
17.9
3.0
2.4
13.4
9.5
5 4 . 1 139.0 136.3 153.2 178.3 201.5
.9
1.5
.6
.5
-1.6
-1.4
2.9
6.6
3.9
3.7
4.5
4.0
100.6 104.4 118.2 136.0
36.1 37.9 4 1 . 7 4 8 . 3
6 4 . 4 66.5 76.5 8 7 . 7
31.2 42.7 54.0 5 8 . 0
30.7 4 2 . 2 53.5 57.4
6
6.0
7.4
4.5
4.5
5.6
4.3
6.7
Net exports of goods and services.
Exports
Imports
1.1
7.0
5.9
.4
2.4
2.0
1.3
5.9
4.6
Government purchases of goods and services.
8.5
8.0
6.0
Structures
Producers' durable equipment.
Residential structures
Nonfarm
Change in business inventories.
Nonfarm
14.5
Federal
1.3
National defense
Other
State and local
7.2
Gross national product in constant (1958)
dollars
2.0
47.3
27.9
9.2
131.1
98.5
131.7
147.1
172.3
III
IV ?
1 , 1 9 9 . 2 1,343.51,272.0 1 . 3 0 4 . 5 1 3 3 4 . 0
10.6
5.0
5.6
4.0
3.8
1.7
1.
Fixed investment
Nonresidential
II
194.0
189.4
181.2
124.3
1.299.81318.1
1,237.81,267.5
752.6 119. A
122.9 132.2
310.7 322.2
319.0 325.0
795.6
132.8
330.3
332.6
194.5 198.2
189.9
130.9
193.7
134.1
816.0
132.8
341.6
341.6
829.0
126.8
351.1
351.2
202.0 2 1 1 . 1
197.3
138.0
195.3
141.1
43.0
81.2
56.9
56.4
8.2
7.9
45.3
85.5
59.0
58.4
4.6
4.4
47.2
86.9
59.6
59.
4.5
4.4
49.5
88.6 1
59.2
58.6
4.7
3.2
51.1
90.0
54.2
53.6
15.9
14.9
.8 - 4 . 6
4.6
66.3 73.5 101.3
65.5 78.
96.7
-3.5
79.7
83.2
.0
89.7
89.7
2.8
97.2
94.4
7.6
104.5
97.0
8.0
113.5
105.6
24.8
3 7 . 9 210.0 219.5 234.3 255.0 2 7 7 . 2
260.7
268.6 275.3
13.
3.1
7.9
78.4
14.
4 . 3 20.4
19.5 111.2
74.6 71.6 74.4 7 4 . 2
32.7
2 1 . 6 26.5 30.
123.3 136.2 150.5 170.3
72.4
30.3
158.0
74.3 14.2
3 1 . 2 33
163.0 168.0
16.9
18.7
19.4
18.6
6
6.0
34.2
64.3
32.6
32.0
7.8
7.7
1.8
13.8
12.0
1.9
55.5
53.6
18.4
98.8
3.6
62.9
59.3
96.2
98.1
104.4
106.9
203.6 141.5 263.7 355.3 725.6 722.5 745.4 790.7 837.3
NOTE.—Dept. of Commerce estimates. Quarterly data are seasonally
adjusted totals at annual rates. For back data and explanation of series,
102.7
105.5
812.3 829.3
107.3
834.3
279.0 285.8
106.8\
14.2l
107.8
74.0
32.71 33.8
172.2 178.0
841.3 844.1
see the Survey of Current Business, (generally the July issue) and the Aug.
1966 Supplement to the Survey.
NATIONAL INCOME
(In billions of dollars)
1972
1929
1933
1941
1950
1969
1970
1971
1972
IV
104.2 241.1 766.0 800.5
1973
1973?
Item
I
II
86.8
40.3
Compensation of employees
51.1
29.5
64.8
154.6 566.0 603.9 644.1
50.4
29.0
62.1
146.8
45.5
.3
4.6
23.9
.3
4.9
51.9
1.9
8.3
124.4 405.6 426.9 449.7 493.3 546.1 510.9 525.1 538.7
19.4
20.3 20.8 20.1 20.9
20.5
5 . 0 19.0
19.6
17.4 85.1
95.5 104.7 113.8 124.6 117.7 120.7 123.1
.7
.5
2.7
7.8
56.3
61.9
70.3
79.7
93.9
82.5
90.8
I
2.0
.7
4.0
3.8
27.8
28.4
29.1
32.2
33.7
36.6
39.0
40.7
49.0
44.9
40.2
42.3
41.4
'.6
.1
.4
15.1
9.0
6.2
5.9
3.3
2.6
17.5
11.1
6.4
37.5
24.0
13.5
67.2
50.5
16.7
66.9
50.0
16.9
68.7
51.9
16.8
74.2
54.0
20.2
84.3
57.5
26.8
5.4
2.0
3.5
9.4
22.6
23.9
24.5
24.1
25.1
10.5
-1.2
15.2
37.7
79.8
69.2
80.1
91.1 109.2
17.7
42.6
84.9
74.0
85.1
Private
Military
Government civilian
Supplements
to wages and salaries
Employer contributions for social insurance
Other labor income
Proprietors' income
Business and professional
Farm
Rental income of persons
Corporate profits and inventory valuation
adjustment
Profits
before tax
Profits tax liability
Profits after tax
Dividends
Undistributed profits
Inventory valuation adjustment
Net interest
542.0
573.8
707.1 785.3 731.2 757.4 774.9
627.3
.4
10.1
24.9
44.8
39.3
47.6
98.0
42.1
55.4
5.8
2.8
2.0
-1.6
4.4
5.7
8.8
16.0
24.3
20.5
24.7
14.6
25.1
22.5
26.0
29.3
.5
-2.1
-2.5
-5.0
-5.1
-4.8
-4.9
4.7
4.1
3.2
2.0
30.5
36.5
42.0
10.0
1.0
1.4
.5
8.6
7.6
17.8
NOTE.—Dept. of Commerce estimates. Quarterly data are seasonally
adjusted totals at annual rates. See also NOTE to table above.
509.7
40.1
34.8
I VP
859.4 941.8 1054.2 978.6 1,015.0 1,038.2 1,067.4
National income
Wages and salaries
III
37.4
691.5
717.6
92.6
94.7
97.5
43.3
48.3
44.2
49.4
45.3
50.8
46.7
77.1
55.3
21.8
80.6
56.3
24.3
81.5
57.1
24.4
85.0
57.9
27.1
90.0
58.7
31.3
24.9
24.7
24.6
25.3
25.7
98.8 104.3
107.9
112.0
129.0
60.3
52.7
70.2
66.9
26.4
33.9
26.9
40.0
27.3
44.2
50.4
815.0
567.2
21.3
129.1
27.8
42.4
56.2
794.0
553.2
20.4
125.7
128.9
51.4
71.6
126.5
-6.9 -17.3
45.2
666.7
682.3
699.3
648.7
106.1
45.9
119.6
57.6
71.5
28.1
43.4
29.0
-7.3 -15.4 -21.1 -17.0 -15.6
46.6
47.9
49.4
51.1
53.0
FEBRUARY 1974 • NATIONAL PRODUCT AND INCOME
A 69
RELATION OF GROSS NATIONAL PRODUCT, NATIONAL INCOME, AND PERSONAL INCOME AND SAVING
(In billions of dollars)
1973
1972
1929
1933
1941
1950
1969
1970
1971
1972
1973*
II
IV
103.1
Gross national product.
Less:
Plus:
Capital consumption allowances
Indirect business tax and nontax liability .
Business transfer payments.
Statistical discrepancy
Subsidies less current surplus of government enterprises
Equals: National income
Less:
Plus:
Corporate profits and inventory valuation adjustment
Contributions for social insurance
Excess of wage accruals over disbursements
Government transfer payments
Net interest paid by government and
consumers
Dividends
Business transfer payments
Equals: Personal income
Less:
Personal tax and nontax payments...
Equals: Disposable personal income
Less:
7.0
8.2
18.3
81.6
7.0
.6
.7
7.1
.7
.6
11.3
.5
.4
23.3
.8
1.5
85.9
3.8
-6.1
.1
.2
1.0
-.1
Personal outlays
Personal consumption expenditures,
Consumer interest payments
Personal transfer payments to foreigners
Equals: Personal saving.
93 J
102.4 109.6
1.7
1.2
1.7
.7
4 0 . 3 104.2 241.1 766.0 800.5 859.4 941.8 1054.2
10.5
-1.2
.3
15.2
2
37.7
6.9
79.
54.2
69.2
57.7
.0
.9
1.5
2.6
14.3
61.9
75.1
2.5
5
2.0
1.6
2.2
4.4
.5
7.2
8.8
.8
28.7
24.3
3.8
31.0
24.7
4.0
.6
2.6
83.3
79.
77.2
1.5
80.1
64.6
.6
91.1 109.2
73.7 92.
105.
106.9 109.0 110.5 112.1
112.8
4.7
115.6 117.2
4.9
4.
3.2
1.
.2
2.2
98.8
75.8
.0
-.5
118.5 120.2
5.1
5.0
3.7
.6
.4
.9
.9
978.6 1 , 0 1 5 . 0 1,038.2 1,067.4
104.3 107.
89.3 90.
.0
112.
93.
95.0
110.
113.
116.8
36.
27.
4.
38.
28.
5.
39.6
29.0
5.1
1079.2
.0
-.3
9 8 . 3 112.5
107.3
37.1
27.8
4.9
33.7
26.4
4.7
9 6 . 0 227.6 750.9 808.3 863.5 939.2 1035.5
976.1
996.6 1,019 .01,047.
2 0 . 7 116.5 116.6 117.5 142.2 152.9
147.4
145.
149
156.
161.2
45.5
92.7 206.9 634.4 691.7 746.0 797.0 882.6
828.7
851.5 869
891
918.0
46.5
45.
.5
81.7 193.9 596.2 635.5 685.8 747.2 828.7
8 0 . 6 191.0 579.5 617.6 667.2 726.5 805.0
2.4
.9
17.7 19.7 2 2 . 5
15.8
16.
774.3
752.6
20.7
801.5 818
779.4 795
21.2 22
840
816
23
854.6
829.0
23.8
.7
47.0
1.5
3.3
88.9
31.0
25.1
4.3
32.7
26.0
4.6
.2
.5
.9
1.0
1.0
1.0
1.2
11.0
13.1
38.2
56.2
60.2
49.7
53.8
54.4
150.6 112.2 190.3 249.6 513.6 534.8 554.9 577.9 6 0 8 . 1
595.lj
.3
4.2
Disposable personal income in constant (1958)
dollars
87.3
93.5 102.4 109.5 117.8
4.3
4.6
4.9
4.0
-6.4 -3.4 -1.5
2.3
86.8
85.9
IV*
5 5 . 6 124.5 284.8 930.3 977.1 1,055.51,155.2 1288.21 ,199. 2 1 ,242.5 1,272.01,304.5 1334.0
7.9
.2
III
.2
-.9
1.
34.7
26.9
4.
.9
50.0
51.0
1.
1.8
51.
63.3
603.9 604.8 609.5 613.9
NOTE.—Dept. of Commerce estimates. Quarterly data are seasonally
adjusted totals at annual rates. See also NOTE to table at top of opposite
page.
PERSONAL INCOME
(In billions of dollars)
1973
1972
Item
1972
1973*
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov
Dec. p
997.4 1,003.3 1,011.6 1,018.7 1,026.6 1,035.6 1,047.3 1,058.5 1068.5 1079.4 1089.6
Total personal income
939.2 1035.5 983.6 989.1
Wage and salary disbursements
Commodity-producing industries..
627.8 691.5 654.0 661.7 667.2 671.1 677.6 682.0 6 8 8 . 2 6 9 3 . 2 698.9 706.0 7 1 1 . 2 717.8 : 723.7
2 2 6 . 0 252.0 236.8 239.2 242.2 243.5 245.9 248.3 251.7 2 5 3 . 4 254.8 257.8 259.5 262.5 264.8
Manufacturing
only
Distributive industries
Service industries
Government
"
175.9
196.8
185.6
187.1
189.6
190.6
192.9
194.7
197.0
197.9
198.7
200.8
202.5
204.6
151.5
116.1
134.2
165.1
129.0
145.4
157.2 158.7
121.3 122.9
138.7 140.9
159.3
124.1
141.6
160.6
124.9
142.2
162.2
126.4
143.1
163.2
126.8
143.7
164.5
127.7
144.4
165.3
129.4
145.1
167.1
130.8
146.2
168.7
132.5
147.0
169.6
132.9
149.2
170.8 171.8
134.1 135.8
150.4 151.3
205.7
Other labor income
40.7
44.9
42.7
43.0
43.3
43.6
43.9
44.2
44.5
44.8
45.3
45.8
46.2
46.7
47.1
Proprietors' income
Business and professional
Farm
74.2
54.0
20.2
84.3
57.5
26.8
77.9
55.6
22.3
80.1
56.1
24.0
80.6
56.3
24.3
81.0
56.4
24.6
81.0
56.8
24.2
81.5
57.1
24.4
81.9
57.3
24.6
83.7
57.8
25.9
85.1
58.0
27.1
86.4
58.1
28.3
••88.4
58.5
'29.9
90.3
58.7
31.6
91.3
58.9
32.4
Rental income
24.1
25.1
24.9
24.8
24.8
24.6
24.3
24.6
24.9
25.0
25.3
25.5
25.6
25.7
25.7
28.2
28.3
28.5
28.7
29.8
89.0
90.3
91.5
92.6
93.7
Dividends
26.0
27.8
26.5
26.8
26.9
27.0
27.3
27.3
27.4
27.6
Personal interest income
78.0
87.5
81.1
81.9
82.6
83.4
84.5
85.7
86.5
87.8
Transfer payments
Less: Personal contributions for social
insurance
Nonagricultural income
Agricultural income
103.0
117.5
34.7
43.1
112.6 112.5
113.8
114.5
115.3
115.9
116.0
116.9
119.0
120.2
121.1
41.7
41.9
42.0
42.4
42.5
42.8
43.4
43.6
43.9
44.0
35.9
44.3
44.4
911.5 1000.6 953.6 957.4 965.3 970.9 979.5 986.4 9 9 4 . 2 1,001.8 1,012.1 1,021.8 1030.0 1039.0 1048.2
4 0 . 4 41.5
38.5
35.2
32.2 32.4
33.8
36.7
32.1
32.4 32.0
3 0 . 0 31.8
34.9
27.7
NOTE.—Dept. of Commerce estimates. Monthly data are seasonally
adjusted totals at annual rates. See also NOTE to table at top of opposite
page.
121.9 122.7
A 70
FLOW OF FUNDS • FEBRUARY 1974
SUMMARY OF FUNDS RAISED AND ADVANCED IN U.S. CREDIT MARKETS
(Seasonally adjusted annual rates; in billions of dollars)
1972
1971
Transaction category, or sector
1968
1969
1970
1971
1972
1973
1973
HI
H2
HI
H2
HI
H2
Funds raised, by type and sector
169.1
163.1
1
2
2.5
.7
1.8
3
4
5
180.4 166.7
5.0
6.1
175.4 160.6
6
7
8
187.3 197.4
177.8 192.4
Total funds raised by nonfinancial sectors
2
Excluding
94.6
95.9
91.4
88.0
97.5
92.6
146.7
135.0
166.1
156.1
183.2
177.7
134.7
123.8
158.7
146.1
145.2
134.7
3
4
5
U.S. Government
Public debt securities
Budget agency issues
13.4
10.3
3.1
-3.6
-1.3
-2.4
12.8
12.9
25.5
26.0
-.5
17.3
13.9
3.4
9.7
8.3
1.5
22.7
24.2
-1.6
28.4
27.8
.5
12.4
10.5
1.9
6
7
8
All other nonfinancial sectors
Corporate equities
81.2
-1.4
82.6
95.0
3.4
91.6
84.7
4.9
79.8
121.2
11.7
109.5
148.8
10.0
138.8
173.5
5.5
168.0
112.0
10.9
101.1
130.4
12.6
117.8
50.6
9.5
14.0
27.1
50.6
9.9
13.0
27.7
57.7
11.3
20.6
25.7
92.4
11.9
13.2
67.3
92.8
8.9
11.8
72.2
79.5
17.9
22.3
39.3
86.9
15.4
17.2
54.3
87.3
12.0
14.4
60.9
15.1
3.4
6.4
2.2
15.7
4.7
5.3
1.9
12.8
5.8
5.3
1.8
83.2
16.6
19.7
46.8
26.0
8.8
10.0
2.0
39.7
10.3
14.8
2.6
39.0
13.0
15.9
4.2
20.6
8.5
8.5
1.7
31.5
9.1
11.5
2.3
35.6
9.1
13.5
2.7
43.7
11.5
16.0
2.5
41.4
14.1
15.1
4.3
32.0
13.1
10.0
1.6
7.2
41.0
15.3
10.4
3.3
12.0
22.1
6.4
6.0
3.8
5.9
26.3
9.3
11.2
-.9
6.6
46.4
21.8
19.2
-1.6
7.0
75.2
41.3
22.9
2.5
8.5
21.7
5.1
8.9
-1.0
8.7
30.9
13.5
13.6
-.8
4.6
35.0
14.5
15.8
-.3
5.0
58.0
29.3
22.5
-2.8
9.0
83.7
54.4
25.2
-3.4
7.5
66.7
28.2
20.6
8.4
9.5
81.2
82.6
2.9
9.8
29.6
40.2
95.0
91.6
2.9
10.7
32.2
45.9
84.7 121.2 148.8
79.8 109.5 138.8
3.8
3.0
5.7
12.3
17.0
11.4
63.2
38.3
22.9
59.5
48.5
42.5
112.0
101.1
5.3
17.9
30.0
47.9
132.8
122.3
3.4
11.9
56.2
50.9
165.1 180.4
155.6 175.4
11.1
4.3
6.3
12.7
72.4
70.5
68.2
85.6
166.7
160.6
2.6
11.4
69.4
77.2
4.1
8.7
35.7
7.6
12.6
61.1
4.0
9.3
34.6
130.4
117.8
6.1
16.1
46.6
49.0
4.9
10.4
44.2
173.5
168.0
6.9
8.8
70.9
81.3
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
Debt
equities
instruments
State and local government securities
Corporate and foreign bonds
Mortgages
Home mortgages
Other residential
Farm
Other private credit
Consumer credit
Open-market paper
Other
By borrowing sector
Debt
instruments
Foreign
State and local governments
Households
Nonfinancial business
Foreign
Corporate business
Totals including equities
Memo: U.S. Govt, cash balance
Totals net of changes in U.S. Govt, cash balances
Total funds raised
By U.S. Government
2.8
5.6
31.8
3.2
5.3
33.9
3.2
7.4
35.4
4.2
8.1
36.8
22.2
17.2
4.9
132.8 165.1
10.4
9.5
122.3 155.6
97.6
11.9
12.0
73.7
17.0
15.8
1.2
91.7
6.3
10.6
74.9
4.4
9.5
37.0
5.3
11.6
51.2
7.3
13.7
64.5
93.9
11.5
12.9
69.5
36.7
11.9
16.8
4.1
8.0
11.5
57.7
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
6 . 1 31
. 1 32
6 . 0 33
-1.4
.2
-1.5
3.4
.5
2.9
4.9
.1
4.8
11.7
11.7
10.0
-.4
10.4
5.5
-.1
5.7
10.9
.4
10.5
12.6
-.3
12.9
10.4
-.2
10.7
9.5
-.6
10.1
5.0
- .4
5.4
3.1
38.7
30.3
-1.1
3.3
48.8
38.3
.4
3.0
47.3
38.8
2.8
5.7
60.2
47.4
3.2
3.4
69.9
54.6
.5
6.7
87.0
66.8
-1.6
5.7
58.4
45.1
-.2
5.8
61.9
49.7
6.6
3.2
61.6
47.7
-3.0
3.7
78.3
61.3
4.0
10.7
91.0
69.9
3.6
2.7
83.2
63.7
-6.7
34
35
36
37
95.7
14.5
91.0
-4.0
94.7
10.0
143.5
22.3
165.6
16.8
184.8
11.3
134.9
22.9
152.1
21.7
148.1
15.4
183.3
18.1
193.8
13.4
175.9
9.2
38
39
302.3 323.8 332.3
196.6 205.6 213.5
105.7 118.2 118.8
1
2
3
68.3
8 8 . 4 108.5 117.7 148.8 163.4 152.6
98.5 133.1 157.9
70.2
81.0
- 8 . 6 -12.0 -25.0 -35.4 -39.4 -17.9 -32.0 -28.0 -43.1 -45.2 -33.8
4
5
97.9
63.2
34.7
108.9
69.5
39.4
*
Private domestic net investment and borrowing in credit markets
1
2
3
4
5
Total, households and business
Total
capital
outlays
Capital consumption 2
Net physical investment
Net funds raised
Excess net investment
Total business
capital
3
6
Total
7
8
Capital consumption
Net physical investment
9
10
11
Net debt funds raised
Corporate equity issues
Excess net investment 3
Corporate business
capital
outlays
12
Total
13
14
Capital consumption
Net physical investment
15
16
17
Net debt funds raised
Corporate equity issues
Excess net investment 3
Households
capital
outlays
18
Total
19
20
Capital consumption
Net physical investment
outlays
21
22
Net funds raised
Excess net investment
3
i
207.6 226.7 224.2 252.5 291.1 328.0 246.3 258.7
140.4 154.3 166.0 179.0 193.4 209.5 175.8 182.2
76.6
70.5
58.2
97.7 118.5
73.5
72.4
67.2
40.2
-1.5
-4.0
155.5
95.6
60.0
6
7
8
77.2
85.6
68.2
49.0
50.9
81.3
47.9
48.5
59.5
42.5
45.9
6.0
5.4
10.1
12.9
10.7
5.7
10.5
11.7
10.4
4.8
2.9
2
3.2
3
8
.
1
2
7
.
9
- 9 . 4 -13.8 -23.9 -24.1 -30.6 -21.4 -26.4 -20.4
9
10
11
118.8
68.7
50.1
12
13
14
15
16
17
108.0
74.6
33.5
84.0
53.6
30.4
116.6
80.3
36.3
86.7
57.7
29.1
133.3
87.6
45.8
100.7
62.8
37.8
150.6
94.1
56.4
113.7
67.6
46. 1
115.8
78.8
37.0
86.5
56.7
29.8
117.3
81.7
35.5
87.0
58.7
28.3
127.4
86.2
41.2
96.0
61.8
34.1
139.3
88.9
50.4
105.4
63.8
41.5
145.6
92.7
52.9
108.5
66.5
42.0
75.0
45.1
29.9
83.7
49.8
33.9
31.8
-1.5
-.4
35.4
2.9
-4.4
57.7
64.5
51.2
37.0
34.6
61.1
36.8
44.2
33.9
35.7
5.4
6.0
10.1
10.5
10.7
5.7
12.9
4.8
11.7
10.4
- 8 . 4 -18.3 -16.8 -20.7 -15.3 -21.4 -13.5 -19.8 -27.9 -13.5
109.7
77.2
32.5
117.8
84.8
33.0
116.2
91.4
24.7
29.6
2.9
32.2
.8
22.9
1.8
1
Capital outlays are totals for residential and nonresidential fixed
capital, net change in inventories, and consumer durables, except outlays
by financial business.
2
Capital consumption includes amounts for consumer durables and
excludes financial business capital consumption.
3
Excess of net investment over net funds raised.
NOTE.—Full statements for sectors and transaction types are available
on a quarterly basis and annually for flows and for amounts outstanding.
Requests for these statements should be addressed to the Flow of Funds
Section, Division of Research and Statistics, Board of Governors of the
Federal Reserve System, Washington, D.C., 20551.
FRASER
Digitized for
279.9
190.3
89.7
163.0
107.7
55.3
157.8
105.9
51.9
177.5
115.4
62.1
130.4
97.0
33.5
141.4
100.4
41.0
152.6
104.1
48.5
63.2
38.3
-1.1 -11.3
70.9
-8.9
30.0
3.5
46.6
-5.6
70.5
56.2
-7.6 -15.2
135.9
98.7
37.2
176.8
118.0
58.8
18
19
20
72.4
69.4
-7.1 -10.6
21
22
178.2
112.9
65.3
Funds raised by type and sector. Credit flows included here are the
net amounts raised by households, nonfinancial business, governments,
and foreigners. All funds raised by financial sectors are excluded. U.S.
Government budget issues (line 5) are loan participation certificates
issued by CCC, Export-Import Bank, F N M A , and G N M A , together with
security issues by FHA, Export-Import Bank, and TV A. Issues by Federally
sponsored credit agencies are excluded as borrowing by financial institutions. Such issues are on p. A-71, line 11. Corporate share issues are net
cash issues by nonfinancial and foreign corporations. Mortgages exclude
loans in process. Open-market paper is commercial paper issued by
nonfinancial corporations plus bankers' acceptances.
FEBRUARY
1974 •
FLOW OF F U N D S
A
71
DIRECT AND INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS
(Seasonally adjusted annual rates; in billions of dollars)
1971
Transaction category, or sector
1968
1970
1971
1972
HI
7
8
9
10
11
Total funds advanced in credit markets to
nonfinancial sectors
By public agencies and foreign
Total net advances
U.S. Government securities
Residential mortgages
FHLB advances to S&L's
.
Other loans and securities
].
By agency—
U.S. Government
Sponsored credit agencies
!!!
Monetary authorities
".
Foreign
!!!.!.
Agency borrowing not included in line I . . . . . . . . .
12
13
14
15
16
17
18
Private domestic funds advanced
Total net advances
U.S. Government securities
State and local obligations
Corporate and foreign bonds
Residential mortgages
Other mortgages and loans
Less: FHLB advances
1
2
3
4
5
6
19
20
21
22
23
24
Private
financial
Credit market funds
institutions
Sources
Private
domestic
H2
HI
Direct lending in credit markets
U.S. Government securities
State and local obligations
Corporate and foreign bonds
Commercial paper
other
38
39
40
41
42
Deposits and currency
Time and savings accounts
Large negotiable CD'S
Other at commercial banks
At savings institutions
H2
95.9
88.0
92.6
135.0
156.1
177.7
123.8
146.1
134.7
177.8
12.2
3.4
2.8
.9
5.1
15.8
.9
4.6
4.0
6.3
28.0
15.7
5.7
1.3
5.2
41.3
33.4
5.7
-2.7
4.9
16.9
7.3
5 . 2*
4.3
32.7
10.4
7.5
7.2
7.6
38.6
32.9
4.2
-5.5
7.1
44.0
34.0
7.
.2
2.7
19.7
12.7
6.2
-2.4
3.2
14.1
2.0
4.3
2.5
5.4
42.5
21.4
4.9
7.8
8.4
22.9
-.6
10.2
6.6
6.7
4.9
3.2
3.7
.3
3.5
2.9
9.0
4.2
-.3
2.8
9.9
5.0
10.3
8.2
3.2
2.
8.
26.4
4.3
2.3
6.0
.2
8.4
6.2
1.7
20.0
9.3
1.6
19.1
4.3
-1.4
8.4
27.3
.9
2.2
7.0
9.3
25.5
7.7
1.5
7.5
4.5
6.2
7.4
3.1
4.5
-4.1
10.6
5.0
.3
18.7
12.0
11.5
17.6
3.1
21.4
6.7
-8.3
20.7
87.2
13.3
9.5
13.8
15.5
35.9
.9
80.9
4.6
9.9
12.5
15.7
42.2
4.0
72.8
5.4
11.3
20.0
12.8
24.6
1.3
9 8 . 0 145.4
-3.5
16.3
16.6
11.9
19.5
13.2
29.1
44.6
33.7
59.5
-2.7
164.2
18.5
8.9
11.8
44.4
87.7
7.2
86.1
-9.2
17.9
22.1
24.8
25.0
-5.5
109.9 122.4 168.6 167.5 1 6 0 . 8
2,
7.
25.3
13.3
23.8
15.4
12.0
11.9
6.3
11.5
16.8
14.2
12.1
10.3
13.3
33.4
38.4
50
50.5
38.3
42.3
48.3
71.0
95.0
80.4
.2 - 2 . 4
2.5
7.8
6.6
75.3
54.9
74.9
111.4
159.1
112.2
110.6
192.4 163.1
150.2
130.5
170.1
186.2
132.1
19
20
21
22
23
1.
'' ] ]
..!!..!!!
.........!!
75.3
54.9
74.9
45.9
8.5
2.6
19.1
63.2
-.4
90.8
9.2
97.
20.2
86.8
28.8
107.7
2.6
73.9
15.9
97.9
16.4
97.9
24.0
104.
34.4
68.9
23.2
24
25
26
21.0
2.6
-.2
11.4
7.2
33.3
9 . 3*
10.4
13.5
12.1
-8.5
2.9
13.1
4.5
11.3
-3.2
2.2
9.6
2.7
32.2
5.1
.7
11.3
15.1
43.5
5.7
-1.0
19.0
19.8
1.9
-7.2
-.8
7.7
2.2
20.
.8
5.3
11.5
3.2
16.2
5.5
-3.6
8.4
5.9
48.2
4.7
5.
14.1
24.3
47.1
5.2
-1.4
16.7
26.5
40.0
6.1
-.6
21.3
13.2
27
28
29
30
31
20.3
8.0
-.2
4.7
5.8
2.1
45.0
16.8
8.7
7.4
10.2
2.0
-2.4 -4.2
- 8 . 3 -13.0
-1.
10.
8*. 2
-4.4
-.6
1.4
1.3
15.4
4.1
2.1
4.9
3.7
.6
33.8 - 2 3 . 5
19.6 - 2 2 . 4
1.2 - 2 . 7
-.2
8.6
8.7 - 7 . 3
4.4
.3
15.2
-3.5
2.6
7.7
6.0
2.3
8.3
-3.3
.9
4.5
6.7
-.4
22.5
11.5
3.4
5.2
15.7
13.0
.3
-.6
.4
2.7
52.0
26.3
2. 1
.4
17.1
6.1
32
33
34
35
36
37
35.1
16.9
17.3
5.7
50.6
41.5
14.
5.3
111
69.7
48.7
16.0
15.8
150.2
85.2
35.2
24.3
14.3
159.1
53.2
45.4
12.5
1.2
112.2
48.0
37.5
15.7
9.4
110.6
57.2
48.4
14
10.6
130.5
82.4
48.9
17
21.0
170.1
101.3
49.1
21.7
14.2
186.2
investors
32
33
34
35
36
37
47
48
49
HI
18.2
14.5
12.3
9.9
.!.!!!!!.
!!!!!!!!
nonfinancial
H2
38.7
15.6
14.0
7.0
of funds
Other sources
Foreign funds
Treasury balances
Insurance and pension reserves
Other, net
1973
financial
.!!.!!!.!
27
28
29
30
31
46
....!.
Commercial banking
Savings institutions
Insurance and pension funds
Other
finance
Private domestic deposits
Credit market borrowing
45
!.....
intermediation
advanced by private
25
26
43
44
!.
1972
1973
'...".!
!.!!!!!!!!!!!!
69.2
21.4
26.9
14.5
132.1
5.4
48.3
33.9 - 2 . 3
3.5 - 1 3 . 7
3.4
17.5
8.0
12.9
66.6
56.1
15.0
24.2
16.9
94.2
81.2
7.7
32.9
40.6
102.2
85.7
8.7
31.0
46.0
90.6
76.9
18.9
29.6
28.4
110.6
92.6
3.4
44.0
45.3
77.9
69.8
12.0
21.9
35.9
103.3
88.8
2.1
38.9
47.8
101
82.6
15
23.2
44.1
110.8
99.1
27.2
34.0
37.9
70.4
54.7
10.5
25.2
19.0
38
39
40
41
42
.!!!!..!
14.5
12.1
2.4
7.7
4.8
2.
10.5
7.1
3.5
13.0
9.6
3.4
16.5
12.
4.4
13.7
9.9
3.8
17.9
15.1
2.8
8.1
4.
3.9
14.5
9.1
5.5
18.7
15.3
3.4
11
5.7
6.0
15.7
14.2
1.5
43
44
45
Total of credit market instr., deposits, and currency
68.7
50.5
64.2
90.0
117.7
124.4
87.1
111.7
123.8
126.5
122.4
46
Public support
(in per cent)(in per cent)..
Private
financialrate
intermediation
Total foreign funds
12.7
86.4
2.9
18.0 3 0 . 2
67.9 102.8
9.1
1.8
30.6
113.7
23.2
10.8
103.3
13.5
18.4
96.9
7.3
31.2
130.3
20.1
14.6
106.6
11.6
7.9
100.9
15.3
22.1
111.2
16.7
14.0
82.1
-2.2
47
48
49
11.5
-.4
12.0
13.6
-2.1
5.8
-1.7
7.4
12.3
-6.6
6.8
-.3
7.1
7.1
-.3
1
2
3
4
5
Money
Demand deposits
....!......
..!.!!..!!!!..!!!
Currency
30.
100.7
26.3
Corporate equities not included above
1
2
3
4
5
Total net issues
Mutual fund shares
Other equities
Acquisitions by financial institutions
Other net purchases
5.1
5.8
-.7
10.8
-5.8
9.5
4.8
4.7
12.2
-2.7
9.5
2.6
6.9
11.4
-1.9
Notes
Line
1. Line 2 of p. A-70.
2. Sum of lines 3-6 or 7-10.
6. Includes farm and commercial mortgages.
11. Credit market funds raised by Federally sponsored credit agencies.
Included below in lines 13 and 33. Includes all GNMA-guaranteed
security issues backed by mortgage pools.
12. Line 1 less line 2 plus line 11. Also line 19 less line 26 plus line 32.
Also sum of lines 27, 32, 39, and 44.
17. Includes farm and commercial mortgages.
25. Lines 39 + 44.
26
' Hne^8 CS e q u i t y i s s u e s a n d investment company shares. Includes
28. Foreign deposits at commercial banks, bank borrowings from foreign
branches, and liabilities of foreign banking agencies to foreign affiliates.
14.7
1.2
13.5
19.2
-4.6
12.0
-.6
12.6
15.6
-3.6
6.3
13.0
-1.0
.3
7.3
12.7
9.7
23.4
-3.4 -10.4
16.3
2.1
14.2
15.0
1.3
12.4
-.8
13.3
17.6
-5
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.
3 9 + 4 4 . See line 25.
45. Mainly an offset to line 9.
46. Lines 32 plus 38 or line 12 less line 27 plus line 45.
47. Line 2/line 1.
48. Line 19/line 12.
49. Lines 10 plus 28.
Corporate equities
Line 1 and 3. Includes issues by financial institutions.
A 72
U.S. BALANCE OF PAYMENTS • FEBRUARY 1974
1. U.S. BALANCE OF PAYMENTS
(In millions of dollars)
1973
1972
1970
Credits+, debits —
Line
1971
1972
III
IV
I
IIIP
II
Summary—Seasonally adjusted
1
2
3
-244
714
-960
2,176 - 2 , 6 9 8 - 6 , 9 1 2 - 1 , 5 7 3 - 1 , 7 4 5
12,362
15,320 16,778
18,153
41,964 42,768 48,769
13,213
1
7
,
0
2
2
-17,439
-39,788 -45,466 -55,681 -13,935 -14,958 -16,280
Imports
4
5
Military transactions, net
Travel and transportation, net
-3,374
-2,013
-2,918
-2,288
-3,558
-2,853
-846
-679
-864
-730
-825
-608
-730
-703
-576
-526
6
7
8
9
Investment income, net 2
U.S. direct investments abroad
Other U.S. investments abroad
Foreign investments in the United States
6,260
7,920
3,506
-5,166
7,972
9,456
3,443
-4,927
7,863
10,433
3,492
-6,062
1,950
2,600
876
-1,526
2,232
2,991
875
-1,634
2,309
3,152
1,006
-1,849
2,111
3,223
1,088
-2,200
2,311
3,449
1,187
-2,325
10
581
739
851
209
237
234
240
225
11
3,630
807
-4,610
-939
-870
150
674
2,148
-1,481
-1,553
-1,570
-373
-429
-397
-389
-422
2,150
-745
-6,180
-1,312
-1,299
-247
285
1,726
-1,734
-2,045
-2,174
-581
-452
-345
-652
-509
416
-2,790
-8,353
-1,893
-1,751
-592
-367
1,217
-1,829
244
-2,117
225
-1,714
137
-542
7
-627
26
-671
111
-583
174
-554
4
224
15
-16
781
-771 -2,025
273
160
-40
51
1,768
1,745
-103
-442
43
106
484
-317
-946
534
-126
496
-257
-18
187
1,685
-228
720
-204
1,159
243
-5
-944
-609
2,539
-982 -1,822 -1,404
-859 -1,809 -1,362
-48
-18
-250
-24
35
127
234
199
-233
268
12
13
14
15
Remittances, pensions, and other transfers
Balance on goods, services, and remittances
U.S. Government grants (excluding military)
Balance on current account
16
U.S. Government capital flows excluding nonscheduled
17
18
Nonscheduled repayments of U.S. Government assets
U.S. Government nonliquid liabilities to other than foreign
official reserve agencies
Long-term private capital flows, net
U.S. direct investments abroad
Foreign direct investments in the United States
Foreign securities
U.S. securities other than Treasury issues
Other, reported by U.S. banks
Other, reported by U.S. nonbanking concerns
19
20
21
22
23
24
25
-433
-467
-1,429 -4,401
-4,410 -4,943
1,030
-115
-942
-966
2,269
2,190
178
-862
526
216
-3,031
169
238
-393
-152
-3,404 -1,148
178
160
209
-614
553
4,335
-426
-1,120
241
492
-9,550
-9,843
-2,652
27
28
29
30
Nonliquid short-term private capital flows, net
Claims reported by U.S. banks
Claims reported by U.S. nonbanking concerns
Liabilities reported by U.S. nonbanking concerns
-482 -2,347
-1,023 -1,802
-361
-530
902
-15
-1,637
-1,495
-315
173
-430
-267
-122
-41
31
32
Allocations of Special Drawing Rights (SDR's)
867
717
-1,205 -10,784
710
177
177
-3,112 -1,626 -1,490
26
-3,891
425
-1,355
-4,531
-3,851
-6,657
-1,588
1,418
3,542
-1,234
-742
-492
4,776
3,862
104
810
7
-410
-274
-136
417
295
-32
154
2,367
-131
-77
-54
2,498
1,995
181
322
-3,842
-1,966
-1,351
-615
-1,876
-1,896
12
8
1,923
818
905
-87
1,105
710
31
364
690
-290
-342
52
980
866
-52
166
-9,839 -29,753 -10,340
-4,524
33
-3,851 -21,965 -13,882
34
35
36
37
38
39
40
41
-5,988 -7,788
252 - 1 , 0 9 7
-99
-566
351
-531
-6,240 -6,691
-6,508 -6,908
181
682
87
-465
42
Liquid claims
Reported by U.S. nonbanking concerns
Liquid liabilities
To international and regional organizations
Financed
by changes
in:
43
44
Liquid liabilities to foreign official agencies
Other readily marketable liabilities to foreign official agen-
45
Nonliquid liabilities to foreign official reserve agencies reported by U.S. Govt
46
47
48
49
50
51
52
53
Gold .
SDR's
Convertible currencies
Gold tranche position in IMF
.....................
Memoranda:
Transfers under military grant programs (excluded from
lines 2, 4, and 14)
Reinvested earnings of foreign incorporated affiliates of
U.S. firms (excluded from lines 7 and 20)
Reinvested earnings of U.S. incorporated affiliates of
foreign firms (excluded from lines 9 and 21)
For notes see end of table.
-1,556
-1,484 -10,499
335
2,108
1,645
9,120
-778
-1,654
34
117
1,202
259
11
78
-167
-43
167
-452
-55
3
-177
134
-15
-111
220
17
-13
-177
82
-16
7,637
27,615
9,720
4,467
-810
-551
399
535
341
189
2,477
787
-851
2,152
389
2,348
866
-249
381
1,350
32
547
-703
35
153
2,586
3,153
4,200
1,189
2,948
3,192
4,521
434
498
548
(6)
(6)
!
949
(6)
(6) 1
9
233
-13
716
(«)
(6)
8
833
(6)
(6)
521
(6)
<*)
FEBRUARY 1974 • U.S. BALANCE OF PAYMENTS AND FOREIGN TRADE
A 73
1. U.S. BALANCE OF PAYMENTS-Continued
(In millions of dollars)
1972
Credits + , debits —
1970
1971
1973
1972
III
IV
I
II
-4,708
-4,701
-4,028
-1,661
-6,657
-10,499
-1,588
335
1,418
2,108
Illf
Balances excluding allocations of SDR's—Seasonally adjusted
Net liquidity balance
Official reserve transactions balance
-4,718
-10,706
-22,682
-30,470
-14,592
-11,050
Balances not seasonally adjusted
Balance on goods and services
Balance on goods, services, and remittances
Balance on current account
Balance on current account and long-term capital 4 . . . .
Balances including allocations of SDR's:
Net liquidity
Official reserve transactions
Balances excluding allocations of SDR's:
Net liquidity
Official reserve transactions
3,630
2,150
416
-3,031
807
-745
-2,790
-9,550
-4,610
-6,180
-8,353
-9,843
-2,409
-2,796
-3,333
-4,052
168
-263
-698
343
819
448
74
-862
787
390
-295
-784
251
-185
-649
712
-3,851
-9,839
-21,965
-29,753
-13,882
-10,340
-5,299
-5,590
-3,197
-1,503
-6,282
-9,995
-1,981
772
537
933
-4,718
-10,706
-22,682
-30,470
-14,592
-11,050
-5,299
-5,590
-3,197
-1,503
-6,282
-9,995
-1,981
772
537
933
1
Adjusted to balance of payments basis; excludes transfers under
military grants, exports under U.S. military agency sales contracts and
imports of U.S. military agencies.
2
Includes fees and royalties from U.S. direct investments abroad or
from foreign direct investments in the United States.
3
Equal to net exports of goods and services in national income and
product accounts of the United States.
4
Includes some short-term U.S. Govt, assets.
^Includes changes in long-term liabilities reported by banks in the
United States and in investments by foreign official agencies in debt
securities of U.S. Federally-sponsored agencies and U.S. corporations.
6
Not available.
NOTE.—Data are from U.S. Department of Commerce, Bureau of Economic Analysis. Details may not add to totals because of rounding.
2. MERCHANDISE EXPORTS AND IMPORTS
(Seasonally adjusted; in millions of dollars)
Exports
]
2
Imports
1971
1972
1973 r
1970
1971
,406
,546
375
410
;661
727
704
591
,553
,688
,499
,569
3,601
3,695
3,790
3,631
3,746
3,672
3,573
3,667
4,487
2,669
3,196
3,881
4,074
3,824
3,869
3,820
3,882
3,971
4,074
4,197
4,176
4,316
4,473
4,558
4,961
5,067
5,379
5,487
5,601
5,778
5,874
6,014
6,448
6,432
6,819
6,927
3,222
3,279
3,219
3,262
3,367
3,265
3,254
3,346
3,423
3,498
3,428
3,401
3,599
3,564
3,628
3,774
3,908
4,037
3,832
3,913
4,179
3,469
3,456
4,169
Quarter:
I
II
II I
IV
10,327
10,798
10,848
10,756
11,086
11,049
11,727
9,746
11,767
11,673
12,447
13,347
15,407
16,866
18,335
20,178
9,720
9,864
10,023
10,327
10,792
11,719
11,924
11,094
13,403
13,370
13,903
14,888
Year 3
42,659
43,549
49,208
70,799
39,952
45,563
55,555
1970
Month:
Jan...
Feb..
Mar..
Apr..
May.
June.
July..
Aug..
Sept..
Oct..
Nov..
Dec..
1
Exports of domestic and foreign merchandise; excludes Dept. of
Defense shipments of grant-aid military equipment and supplies under
Mutual Security Program.
2
General imports including imports for immediate consumption plus
entries into bonded warehouses.
3
1972
r
4,436
4,473
4,515
4,417
4,486
4,468
4,565
4,726
4,612
4,738
5,148
5,002
Trade balance
1973
5,265
5,556
5,437
5,293
5,762
5,794
5,762
6,021
5,575
5,904
6,733
5,985
69,121
1970
184
267
156
148
324
462
450
245
130
190
71
168
1971
2
130
160
-143
-161
-365
-259
-247
308
-800
-260
-288
1972
r
— 361
— 649
— 647
-596
-604
-497
-491
-530
-436
-421
-675
-444
1973 '
-304
-489
-58
195
-161
-16
111
-7
873
527
86
942
607
933
816
425
294
-670
-197
-1,348
-1,657
-1,697
-1,456
-1,540
-851
19
977
,555
2,707
-2,014
-6,347
,678
Sum of unadjusted figures.
NOTE.—Bureau of the Census data. Details may not add to totals because of rounding.
A 74
U.S. GOLD TRANSACTIONS • FEBRUARY 1974
3. U.S. NET MONETARY GOLD TRANSACTIONS WITH FOREIGN COUNTRIES
AND INTERNATIONAL ORGANIZATIONS
(Net sales [ — ] or net acquisitions; in millions of dollars at $35 per fine troy ounce
until May 8, 1972, and at $38 per fine troy ounce thereafter)
1972
Area and country
1963
1965
1964
1966
1968
1967
1969
1970
1971
IV
Western Europe:
-82
France
-2
-60
329
-2
80
-30
-879
-50
-835
1
-6
-35
-49
16
-47
-659
-980
-669
200
150
50
-39
-3
7
-1
-1
-130
Total
-399
Total
-30
72
-88 -1,299
Other
Total
All other
Total foreign countries
-2
-85
-52
-209
-19
325
500
41
-76
-25
-129
2
-50
51
-50
-175
-25
- 2 5*
-29
-13
969
-204
-796
-25
-28
-23
-9
-6
11
-40
-29
-80
-5
32
56
17
-41
9
-65
-54
-131
-5
-10
-4
-56
-11
-21
-42
-i
40
-4
-35
-10
-2
11
-9
2-91
-30
39
-3
42
-213
-38
-3
25
20
-13
-6
-36
-392
3
-7
-119
*
-1
-14
-14
-22
-24
-86
-44
-366
-16
-22
3-166
3-68
-1
-81
-6
-608 -1,031 -1,118
- 3 6 -1,322
5-225
-392
*
-95
-34
9
-50
-81
-75
-11
12
III
-110
-473
-11
Intl Monetary Fund^
Grand total
-58
600
-601
25
29
-25
-13
54
10
Asia:
Jap^n
Lebanon
Malaysia
Philippines
II
200
Canada
Latin American republics:
Argentina
Brazil
Colombia
Venezuela
Other
I
4
-25
-2
-80
-35
-180
-50
150
Italy
Bank for Intl. Settlements..
Other
-100
-83
-884
-55
-40
-405
-225
-1
200
-60
-32
-81
618
-518
1973
1972
- 3 6 -1,547
957
-631
-845
-3
-3
10
-156
-22
-544
-431 -1,009 -1,121
967
«-787
-867
-547
177
22
1
Includes purchase from Denmark of $25 million.
2 Includes purchase from Kuwait of $25 million.
3 Includes sales to Algeria of $150 million in 1967 and $50 million in
1968.
4 Includes IMF gold sales to and purchases from the United States,
U.S. payment of increases in its gold subscription to IMF, gold deposits
by the IMF (see note 1 (b) to Table 4), and withdrawal of deposits. The
first withdrawal ($17 million) was made in June 1968 and the last withdrawal ($144 million) was made in Feb. 1972.
IMF sold to the United States a total of $800 million of gold ($200
million in 1956, and $300 million in 1959 and in 1960) with the right of
repurchase; proceeds from these sales invested by IMF in U.S. Treasury
securities. IMF repurchased $400 million in Sept. 1970 and the remaining
$400 million in Feb. 1972.
* Payment to the IMF of $259 million increase in U.S. gold subscription
less gold deposits by the IMF.
6
Includes the U.S. payment of $385 million increase in its gold subscription to the IMF and gold sold by the IMF to the United States in
mitigation of U.S. sales to other countries making gold payments to the
IMF. The country data include U.S. gold sales to various countries in
connection with the IMF quota payments. Such U.S. sales to countries
and resales to the United States by the IMF totaled $548 million each.
NOTES TO TABLE 5 ON OPPOSITE PAGE:
1
Represents net IMF sales of gold to acquire U.S. dollars for use in
IMF operations. Does not include transactions in gold relating to gold
deposit or gold investment (see Table 6).
2 Positive figures represent purchases from the IMF of currencies of
other members for equivalent amounts of dollars; negative figures represent repurchase of dollars, including dollars derived from charges on
purchases and from other net dollar income of the IMF. The United
States has a commitment to repurchase within 3 to 5 years, but only to
the extent that the holdings of dollars of the IMF exceed 75 per cent of
the U.S. quota. Purchases of dollars by other countries reduce the U.S.
commitment to repurchase by an equivalent amount.
3 Includes dollars obtained by countries other than the United States
from sales of gold to the IMF.
4 Represents the U.S. gold tranche position in the IMF (the U.S.
quota minus the holdings of dollars of the IMF), which is the amount
that the United States could purchase in foreign currencies automatically
if needed. Under appropriate conditions, the United States could purchase additional amounts equal to its quota.
5
Includes $30 million of Special Drawing Rights.
^ Represents amount payable in dollars to the IMF to maintain the
value of IMF holdings of U.S. dollars.
NOTE—The initial U.S. quota in the IMF was $2,750 million. The U.S.
quota was increased to $4,125 million in 1959, to $5,160 million in Feb.
1966, to $6,700 million in Dec. 1970, and revalued to $7,274 million in
May 1972 and $8,083 million in Oct. 1973 as a result of changes in par
value of the U.S. dollar. Under the Articles of Agreement subscription
payments equal to the quota have been made 25 per cent in gold and 75
per cent in dollars.
FEBRUARY 1974 • U.S. RESERVE ASSETS; POSITION IN THE IMF
A 75
4. U.S. RESERVE ASSETS
(In millions of dollars)
Gold stock i
End ol
year
Total
2
Treasury
Convertible
foreign
currencies
Reserve
position
IMF
3
I960..
1961..
1962..
1963..
1964..
19,359
18,753
17,220
16,843
16,672
17,804
16,947
16,057
15,596
15,471
17,767
16,889
15,978
15,513
15,388
99
212
432
1,555
1,690
1,064
1,035
769
1965..
1966..
1967..
1968..
1969..
15,450
14,882
14,830
15,710
7 16,964
613,806
13,235
12,065
10,892
11,859
613,733
13,159
11,982
10,367
10,367
781
1 ,321
2,345
3,528
72,781
6 863
326
420
1,290
2,324
1970..
1971 . .
19729.
1973...
14,487
812,167
13,151
14,378
11,072
10,206
10,487
11,652
10,732
10,132
10,410
11,567
629
8 276
241
1,935
585
465
552
116
Gold stock i
End of
month
SDR's4
Total
851
1,100
1,958
2,166
1 Includes (a) gold sold to the United States by the I M F with the right
of repurchase, and (b) gold deposited by the IMF to mitigate the impact
on the U.S. gold stock of foreign purchases for the purpose of making
gold subscriptions to the I M F under quota increases. For corresponding
liabilities, see Table 6.
2
Includes gold in Exchange Stabilization Fund.
3
The United States has the right to purchase foreign currencies equivalent to its reserve position in the IMF automatically if needed. Under appropriate conditions the United States could purchase additional amounts
equal to the U.S. quota. See Table 5.
4
Includes allocations by the IMF of Special Drawing Rights 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 SDRs.
5 For holdings of F.R. Banks only, see pp. A-12 and A-13.
6
Reserve position includes, and gold stock excludes, $259 million gold
subscription to the I M F in June 1965 for a U.S. quota increase which
became effective on Feb. 23, 1966. In figures published by the IMF from
June 1965 through Jan. 1966, this gold subscription was included in the
U.S. gold stock and excluded from the reserve position.
2
Convertible
foreign
currencies 5
Treasury
1973
Jan...
Feb...
Mar. .
Apr...
May..
June. .
July. .
Aug...
Sept...
Oct.. .
Nov...
Dec..
13,054
12.926
12,931
12,904
12,916
12,914
12,918
12,923
12.927
1014,367
14,373
14,378
10,487
10,487
10,487
10,487
10,487
10,487
10,487
10,487
10,487
011,652
11,652
11,652
10,410
10,410
10,410
10,410
10,410
10,410
10,410
10,410
10,410
1011,567
11,567
11,567
140
1974
Jan.. .
14,565
11,652
11,567
59
16
Reserve
position
SDR's4
IMF3
469
473
478
460
464
470
474
479
483
10541
547
552
1,958
1,958
1,958
1,949
1,949
1,949
1,949
1,949
1,949
102,166
2,166
2,166
688
2,166
7
Includes gain of $67 million resulting from revaluation of the German
mark in Oct. 1969, of which $13 million represents gain on mark holdings
at time of revaluation.
8
Includes $28 million increase in dollar value of foreign currencies
revalued to reflect market exchange rates as of Dec. 31, 1971.
9
Total reserve assets include an increase of $1,016 million resulting
from change in par value of the U.S. dollar on May 8, 1972; of which,
total gold stock is $828 million (Treasury gold stock $822 million), reserve
position in I M F $33 million, and SDR's $155 million.
i ° Total reserve assets include an increase of $1,436 million resulting
from change in par value of the U.S. dollar on Oct. 18, 1973; of which,
total gold stock is $1,165 million (Treas. gold stock $1,157 million),
reserve position in IMF $54 million, and SDR's $217 million.
NOTE.—See Table 23 for gold held under earmark at F.R. Banks for
foreign and international accounts. Gold under earmark is not included
in the gold stock of the United States.
5. U.S. POSITION IN THE INTERNATIONAL MONETARY FUND
(In millions of dollars)
Transactions affecting IMF holdings of dollars
(during period)
U.S. transactions with I M F
Net
gold
sales
by I M F i
1946—1957
1958—1963
1964—1966
1967—1969
2,063
1,031
776
600
150
1970
1971
1972
1973
1,155
5712*
1973—jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
1974—Jan
For notes see opposite page.
22
6 541
6 754
Transactions in
foreign
currencies 2
1,640
-84
150
1,362
200
IMF net
income
in
dollars
-133
Amount
827
2,740
6
268
775
2,315
1,744
-1,998
775
3,090
4,834
2,836
28
75
94
55
1,975
1,035
326
2,324
741
40
1,929
1,350
694
721
4,765
6,115
6,810
7,531
71
91
94
93
1,935
585
465
552
-4
-5
-5
18
-4
-6
-4
-5
-4
750
-5
-5
6,806
6,801
6,796
6,814
6,810
6,804
6,800
6,795
6,791
7,541
7,536
7,531
94
93
93
94
94
94
93
93
93
93
93
93
469
473
478
460
464
470
474
479
483
541
547
552
-137
7,394
Q1
Repurchases
in
dollars
-45
60
45
59
-2,670
-1,666
-723
-2,263
25
-28
-47
-33
-854
-24
-4
Per cent
of
U.S.
quota
Total
change
Purchases
of
dollars 3
-4
-5
-5
18
-4
-6
-4
-5
-4
-4
-5
-5
6 754
U.S.
reserve
position
in IMF
(end of
period) 4
Transactions by
other countries
with IMF
Period
Payments
of
subscriptions in
dollars
I M F holdings
of dollars
(end of period)
1
A 76
INTL. CAPITAL TRANSACTIONS OF THE U.S. • FEBRUARY 1974
6. U.S. LIQUID AND OTHER LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS, AND LIQUID
LIABILITIES TO ALL OTHER FOREIGNERS
(In millions of dollars)
Liabilities to foreign countries
Official institutions 2
Total
Liquid
liabilities to
IMF
arising
from
gold
transactions i
Liquid liabilities to
other foreigners
Liquid
Total
Shortterm
liabilities reported
by
banks
in
U.S.
Liquid
NonmarliabiliNonmar- ketable
Other
ties
readily to comMarket- ketable nonconvertible
marketmercial
conable
U.S.
able
banks
vertible
U.S.
Treas.
liabili- abroad 6
U.S.
Treas.
bonds
ties 5
Treas.
bonds
and
bonds
and
notes 4
and
notes 3
notes
800
12.914
11,963
751
800
800
14,459
14,425
12,467
12,467
1,217
1,183
703
703
/29,313
\29,364
800
800
15,790
15,786
13,224
13,220
1,125
1,125
1,079
1,079
5,346
3,013
2,565
9
9
5,817
5,817
3,397
3,387
3,046
3,046
204
204
158
158
7,271
7,303
3,730
3,753
3,354
3,377
29,569
834
15,826
13,066
1,105
1,201
120
7,419
4,059
3,587
J31,145
\31,020
1,011
1,011
14,841
14,896
12,484
12,539
860
860
256
256
328
328
913
913
10,116
9,936
4.271
4.272
3.743
3.744
/35,819
\35,667
1,033
1,033
18,201
18,194
14,034
14,027
908
908
711
711
741
741
1,807
1,807
11,209
11,085
4,685
4,678
4,127
4,120
f38,687
\38,473
1,030
1,030
17,407
17,340
11,318
11,318
529
462
701
701
2,518
2,518
2,341
2,341
14,472
14,472
5,053
4,909
4,444
4,444
»o/45,755
\45,914
1,019
1,019
ioi5,975
15,998
11,054
11,077
346
346
10 555
555
102,515
2,515
1,505
1,505
23,638
23,645
4,464
4,589
3.939
4,064
J47,009
\46,960
566
566
23,786
23,775
19,333
19,333
306
295
429
429
3,023
3,023
695
695
17,137
17,169
4,676
4,604
4,029
4,039
J67,681
\67,808
544
544
51,209
50,651
39,679
39,018
1,955
1,955
6,060
6,093
3,371
3,441
144
144
10,262
10,949
4,138
4,141
3,691
3,694
82,883
61,520
39,994
5,236
12,108
3,639
543
14,785
4,952
4,527
82,048
87,854
1290,884
1390,580
92,085
92,185
93,212
92,569
92,072
93,171
92,559
92,588
60,796
68,475
1271,331
70,748
70.915
70,693
71,019
70,513
69,775
69,701
67,367
66,790
38,534
45,413
46,924
45,949
46,112
45,705
46,129
45,714
45,172
45,211
43,756
43,914
12,110
5,798
12,110
6,377
6,917 1212,128
12,245
6,934
12,245
6,934
12,245
6,934
12,245
6,934
12,319
6,906
12,319
6,914
12,319
6,929
12,319
6,207
12,319
5,686
3,780
3.627
3,617
3,631
3.628
3,805
3,705
3,555
3,355
3.233
3.234
3,210
574
948
1,745
1,989
1,996
2,004
2,006
2,019
2,015
2,009
1,851
1,661
14,767
12,791
12,955
13,052
14,274
14,500
15,420
15,204
15,199
16,131
17,496
17,645
4,892
4,968
4,960
5,149
5,147
5,323
5,257
5,322
5,479
5,519
5,689
6,153
4,467
4,596
4,584
4,750
4,763
4.940
4,883
4,987
5,132
5,145
5,279
5,723
1 Includes (a) liability on gold deposited by the IMF to mitigate the
impact on the U.S. gold stock of foreign purchases for gold subscriptions
to the IMF under quota increases, and (b) U.S. Treasury obligations at
cost value and funds awaiting investment obtained from proceeds of sales
of 2gold by the IMF to the United States to acquire income-earning assets.
Includes BIS and European Fund.
3
Derived by applying reported transactions to benchmark data;
breakdown of transactions by type of holder estimated 1962-63.
4
Excludes notes issued to foreign official nonreserve agencies.
5 Includes long-term liabilities reported by banks in the United States
and debt securities of U.S. Federally-sponsored agencies and U.S. corporations.
6 Includes short-term liabilities payable in dollars to commercial banks
abroad and short-term liabilities payable in foreign currencies to commercial banks abfoad and to "other foreigners."
7
Includes marketable U.S. Treasury bonds and notes held by commercial banks abroad.
8 Principally the International Bank for Reconstruction and Development and the Inter-American and Asian Development Banks.
9 Data on the two lines shown for this date differ because of changes
in reporting coverage. Figures on first line are comparable with those
shown for the preceding date; figures on second line are comparable with
those shown for the following date.
10
Includes $101 million increase in dollar value of foreign currency
liabilities resulting from revaluation of the German mark in Oct. 1969 as
follows: liquid, $17 million, and other, $84 million.
200
24,268
J26,433
\26,394
Total
Shortterm
liabilities reported
by
banks
in
U.S.
Marketable
U.S.
Treas.
bonds
and
notes3,7
11
Data on the second line differ from those on first line because certain accounts previously classified as "official institutions" are included
with "banks"; a number of reporting banks are included in the series for
the first time; and U.S. Treasury securities payable in foreign currencies
issued to official institutions of foreign countries have been increased in
value to reflect market exchange rates as of Dec. 31, 1971.
12
Includes $15 million increase in dollar value of foreign currency
liabilities revalued to reflect market exchange rates.
13
Includes $147 million increase in dollar value of foreign currency
liabilities to official institutions of foreign countries revalued to reflect
market exchange rates as follows: short-term liabilities, $15 million; nonmarketable convertible U.S. Treasury bonds and notes, $113 million; and
nonmarketable nonconvertible U.S. Treasury bonds and notes, $19 million.
NOTE.—Based on Treasury Dept. data and on data reported to the
Treasury Dept. by banks and brokers in the United States. Data correspond
generally to statistics following in this section, except for the exclusion
of nonmarketable, nonconvertible U.S. Treasury notes issued to foreign
official nonreserve agencies, the inclusion of investments by foreign
official reserve agencies in debt securities of U.S. Federally-sponsored
agencies and U.S. corporations, and minor rounding differences. Table
excludes I M F "holdings of dollars," and holdings of U.S. Treasury letters
of credit and non-negotiable, non-interest-bearing special U.S. notes held
by other international and regional organizations.
FEBRUARY 1974 • INTL. CAPITAL TRANSACTIONS OF THE U.S.
A 77
7. U.S. LIQUID AND OTHER LIABILITIES TO OFFICIAL INSTITUTIONS
OF FOREIGN COUNTRIES, BY AREA
(Amounts outstanding; in millions of dollars)
End of period
1967
1968 3
1969 3
1970 3
1971 5
Total
foreign
countries
Western
Europe 1
Canada
18,194
/17,407
\17,340
J 4 15,975
I 4 15,998
/23,786
123,775
/51,209
\50,651
10,321
8,070
8,062
4
7,074
4
7,074
13,620
13,615
30,010
30,134
1,310
1,867
1,866
1,624
1,624
2,951
2,951
3,980
3,980
1,582
1,865
1,865
1,888
1,911
1,681
1,681
1,414
1,429
4,428
5,043
4,997
4,552
4,552
4,713
4,708
14,519
13,823
250
259
248
546
546
407
407
415
415
303
303
302
291
291
414
413
871
870
61,520
34,197
4,279
1,731
17,573
777
2,963
60,796
68,475
6 71,331
7 70,748
70,915
70,693
71,019
70,513
69,775
69,701
67,367
66,790
34,146
40,773
6 45,229
7 45,608
46,646
46,967
47,140
47,260
47,099
47,515
46,003
45,713
4,201
4,290
4,221
4,157
4,104
4,111
4,043
3,836
3,759
3,851
3,820
3,838
1,728
1,895
1,749
1,915
1,903
1,998
2,072
2,014
1,860
1,937
2,212
2,546
17,033
17,907
16,564
15,415
14,425
13,727
13,686
13,631
13,289
12,601
11,475
10,881
673
809
823
839
940
992
928
738
769
735
771
788
3,015
2,801
2,745
2,814
2,897
2,898
3,150
3,034
2,999
3,062
3,086
3,024
1972—Dec
1973—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov.*... .
Dec P
1
2
Includes Bank for International Settlements and European Fund.
Includes countries in Oceania and Eastern Europe, and Western European dependencies in Latin America.
3 See note 9 to Table 6.
4
Includes $101 million increase in dollar value of foreign currency
liabilities resulting from revaluation of the German mark in Oct. 1969.
5
Data on second line differ from those on the first line because certain
accounts previously classified as "Official institutions" are included in
"Banks"; a number of reporting banks are included in the series for
the first time; and U.S. Treasury liabilities payable in foreign currencies
t o official institutions of foreign countries have been increased in value by
$110 million to reflect market exchange rates as of Dec. 31, 1971.
Latin
American
republics
Asia
Africa
Other
countries
2
6 Includes $15 million increase in dollar value of foreign currency
liabilities revalued to reflect market exchange rates.
7
Includes $147 million increase in dollar value of foreign currency
liabilities revalued to reflect market exchange rates.
NOTE.—Data represent short- and long-term liabilities to the official
institutions of foreign countries, as reported by banks in the United States;
foreign official holdings of marketable and nonmarketable U.S. Treasury
securities with an original maturity of more than 1 year, except for nonmarketable notes issued to foreign official nonreserve agencies; and investments by foreign official reserve agencies in debt securities of U.S.
Federally-sponsored agencies and U.S. corporations.
8. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS
IN THE UNITED STATES, BY TYPE
(Amounts outstanding; in millions of dollars)
To nonmonetary international
and regional organizations 6
To all foreigners
Payable in dollars
Deposits
Total i
Total
U.S.
Treasury
bills and
certificates 3
Other
shortterm
liab. 4
Payable
in
foreign
currencies
Demand
Time2
20,460
15,785
15,795
10,399
6,459
6,959
5,924
5,961
5,209
4,217
5,015
14,123
14,123
33,025
33,025
7,336
5,519
5,514
6,385
11,335
429
368
368
386
392
40,199
(41,719
141,761
/55,404
\55,428
39,770
41,351
41,393
55,018
55,036
60,719
60,222
8,288
5,629
31,850
14,455
496
59,148
64,218
65,889
65,180
66,729
66,714
67,919
67,389
67,056
68,254
68,490
69,234
58,622
63,705
65,341
64,596
66,157
66,070
67,312
66,779
66,395
67,678
67,883
68,638
7,452
7,786
7,606
8,118
8,364
9,113
8,988
8,435
8,754
9,108
9,860
11,419
5,533
5,595
5,612
5,654
5,714
5,829
5,876
6,139
6,130
6,770
6,857
7,015
30,134
36,522
37,947
36,440
35,965
34,931
34,556
34,257
33,702
32,869
31,977
31,866
15,504
13,801
14,175
14,383
16,114
16,197
17,892
17,948
17,809
18,930
19,189
18,338
526
513
548
584
572
644
607
611
660
577
607
597
For notes see the following page.
IMF
gold
invest-5
ment
Dep osits
Total
Demand
800
400
400
400
400
Time
2
U.S.
Treasury
bills and
certificates
Other
shortterm
liab. 4
613
820
820
1,372
1,367
62
69
69
73
73
83
159
159
192
192
244
211
211
210
210
223
381
381
896
892
1,412
86
202
326
799
118
133
114
119
141
155
206
178
80
70
73
101
172
144
134
112
119
134
114
116
100
93
95
84
279
287
260
221
148
169
116
61
62
173
373
296
811
854
918
976
1,172
1,110
1,049
1,129
1,311
1,430
1,419
1,470
1,380
1,418
1,426
1,429
1,579
1,569
1,486
1,485
1,552
1,767
1,959
1,952
A 78
INTL. CAPITAL TRANSACTIONS OF THE U.S. • FEBRUARY 1974
8. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS
IN THE UNITED STATES, BY TYPE—Continued
(Amounts outstanding; in millions of dollars)
To official institutions!o
Total to official, banks and other foreigners
Payable in dollars
Payable in dollars
Total
Deposits
Demand
38,786
/40,499
\40,541
/53,632
\53,661
20,397
15,716
15,726
10,326
6,386
Time 2
U.S.
Treasury
bills and
certificates 3
Other
shortterm
liab.4
Payable
in
foreign
currencies
Total
Deposits
Demand
6,876
5,765
5,802
5,017
4,025
3,971
13,511
13,511
32,415
32,415
7,113
5,138
5,133
5,489
10,443
429
368
368
386
392
11,077
19,333
19,333
39,679
39,018
1,930
1,652
1,652
1,620
1,327
Time 2
2,942
2,554
2,554
2,504
2,039
U.S.
Treasury
bills and
certificates 3
Other
shortterm
liab.4
3,844
13,367
13,367
32,311
32,311
2,159
1,612
1,612
3,086
3,177
59,306
8,203
5,427
31,523
13,657
496
39,994
1,589
2,876
31,453
3,905
57,768
62,800
64,463
63,751
65,149
65,145
66,432
65,905
65,503
66,487
66,531
67,282
7,333
7,653
7,492
7,999
8,223
8,958
8,781
8,257
8,674
9,038
9,788
11,318
5,361
5,450
478
5; 542
5,596
5,695
5.761
6,023
6,030
6,677
6.762
6,930
29,855
36,235
37,687
36,219
35,817
34,762
34,440
34,196
33,640
32,696
31,604
31,570
14,693
12,948
13,257
13,407
14,942
15,087
16,843
16,819
16,498
17,500
17,770
16,867
526
513
548
584
572
644
607
611
660
577
607
597
38,534
45,413
46,924
45,949
46,112
45,705
46,129
45,714
45,172
45,211
43,756
43,914
1,405
1,756
1,543
1,714
1,719
1,940
1,934
1,575
1,631
1,810
2,020
2,119
2,875
2,841
2,832
2,916
2,945
3,117
3,185
3,348
3,226
3,846
3,780
3,916
29,779
36,147
37,620
36,137
35,736
34,684
34,360
34,118
33,554
32,613
31,529
31,491
4,303
4,497
4,757
4,996
5,525
5,777
6,461
6,545
6,634
6,815
6,300
6,261
To banksii
To other foreigners
Payable in dollars
Total
Deposits
Total
Demand
1
27,709
J21,166
\21,208
/13,953
114,643
23,419
16,917
16,949
10,034
10,721
19,312
14,460
19,234
17,387
17,539
17,803
19,037
19,440
20,303
20,191
20,331
21,276
22,775
23,367
14,413
12,449
12,579
12,654
13,889
14,042
15,003
14,720
14,666
15.681
17,016
17,176
16,756
12,376
12,385
7,047
3,399
Time 2
U.S.
Treasury
bills and
certificates
Deposits
Total
Time 2
U.S.
Treasury
bills and
certificates
4,064
4,029
4,039
3,691
3,694
1,711
1,688
1,688
1,660
1,660
1,935
1,886
1,895
1,663
1,666
107
131
131
96
96
9,270
4,527
1,954
2,026
65
9,835
7,877
7,912
7,799
8,701
8,577
9,605
9,413
8,983
9,772
10,554
9,670
4,467
4,596
4,584
4,751
4,764
4,941
4,883
4,987
5,132
5,145
5,279
5,722
1,773
1,813
1,805
1,951
1,859
1,965
1,890
1,876
1,972
1,977
2,007
2.232
2,070
2.127
2.128
2,113
2,116
2,174
2,144
2,183
2,201
2,179
2,289
2,487
69
83
63
75
73
70
72
68
77
76
67
1,999
1,326
1,354
850
320
4,644
3,202
3,197
2,130
6,995
4,659
525
4,155
4,084
4,144
4,335
4,645
5,053
4,957
4,806
5,071
5,251
5,761
6,967
415
483
518
514
535
404
432
491
603
651
693
527
Data exclude "holdings of dollars" of the IMF.
Excludes negotiable time certificates of deposit, which are included
in "Other."
3
Includes nonmarketable certificates of indebtedness issued to official
institutions of foreign countries.
4
Principally bankers' acceptances, commercial paper, and negotiable
time certificates of deposit. See also note 8(a).
5
U.S. Treasury bills and certificates obtained from proceeds of sales of
gold by the IMF to the United States to acquire income-earning assets.
Upon termination of investment, the same quantity of gold was reacquired by the IMF.
6
Principally the International Bank for Reconstruction and Development and the Inter-American Development Bank.
Includes difference between cost value and face value of securities in
IMF gold investment account.
7
Data on the two lines shown for this date differ because of changes in
reporting coverage. Figures on the first line are comparable in coverage
with those shown for the preceding date; figures on the second line are
comparable with those shown for the following date.
8
Data on second line differ from those on first line because (a) those
liabilities of U.S. banks to their foreign branches and those liabilities of
2
Other
shortterm
liab.4
Other
shortterm
liab.4
U.S. agencies and branches of foreign banks to their head offices and
foreign branches, which were previously reported as deposits, are included
in "Other short-term liabilities"; (b) certain accounts previously classified
as "Official institutions" are included in "Banks"; and (c) a number of
reporting banks are included in the series for the first time.
9 Includes $15 million ih&jtease in foreign currency liabilities revalued
to reflect market exchange rates.
I
°Foreign central banks and foreign central govts, and their agencies,
and Bank for International Settlements and European Fund.
II
Excludes central banks, which are included in "Official institutions."
NOTE.—"Short term" refers to obligations payable on demand or having
an original maturity of 1 year or less. For data on long-term liabilities
reported by banks, see Table 10. Data exclude the "holdings of dollars"
of the International Monetary Fund; these obligations to the IMF constitute contingent liabilities, since they represent essentially the amount of
dollars available for drawings from the IMF by other member countries.
Data exclude also U.S. Treasury letters of credit and non-negotiable, noninterest-bearing special U.S. notes held by the Inter-American Development Bank and the International Development Association.
FEBRUARY 1974 • INTL. CAPITAL TRANSACTIONS OF THE U.S.
A 79
9. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS
IN THE UNITED STATES, BY COUNTRY
(End of period. Amounts outstanding; in millions of dollars)
1973
1972
Area and country
Europe:
Austria.
Belgium-Luxembourg
Denmark
Finland.
France
Germany
Greece
Italy.
Netherlands
Norway
Portugal
Spain
Sweden
Switzerland
Turkey.
United Kingdom
Yugoslavia
Other Western Europe!
U.S.S.R
Other Eastern Europe
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov-*
272
1,092
284
163
4,441
5,346
238
1,338
1,468
978
416
256
1,184
2,857
97
5,011
117
1,483
11
81
281
1,253
400
142
5,000
12,990
223
968
2,532
1,018
518
256
1,483
2,901
105
4,657
58
1,619
14
71
292
1,245
406
168
5,167
12,701
175
1,020
2,543
1,035
502
250
1,682
2,959
118
4,741
69
1,772
8
71
301
1,373
502
244
5,327
12,161
219
1,171
2,427
1,046
511
325
1,787
3,272
71
5,899
73
2,164
9
66
297
1,376
489
194
5,406
12,003
219
1,072
2,369
1,049
500
334
1,905
3,268
75
6,317
66
2,360
11
74
305
1.456
477
165
5,452
12,837
240
870
2,029
1,082
477
282
1,951
3,310
102
6.457
66
2,965
18
81
302
1,378
437
153
5,246
12,912
236
1,506
1,945
1,055
472
237
1,871
3,226
115
5,943
57
3,015
17
90
292
1,377
409
145
5,296
13,236
215
1,140
2,022
1,024
459
259
1,835
3,309
72
5,593
58
3,099
16
114
204
1,410
470
135
4,143
14,180
280
1,095
2,534
999
467
284
1,787
3,316
83
6,416
61
3,427
40
96
172
1,457
527
135
3,416
14,227
236
1,224
2,866
980
470
319
1,807
3,081
82
6,487
76
2,930
20
101
27,134
36,488
36,924
38,949
39,383
40,621
40,212
39,970
41,425
40,611
Canada
3,467
3,293
3,600
3,796
3,327
3,392
3,786
3,721
3,812
3,967
Latin America:
Argentina
Bahamas 2
Brazil
Chile
Colombia
Cuba
Mexico
Panama
Peru
Uruguay
Venezuela
Other Latin American republics
Netherlands Antilles and Surinam
Other Latin America
631
539
605
137
210
6
831
167
225
140
1,077
860
86
44
687
200
671
143
184
6
788
171
172
132
948
804
76
216
694
228
703
140
197
7
853
168
167
143
1,044
818
72
243
730
502
768
137
219
7
843
192
170
150
967
778
64
269
727
462
770
140
200
10
925
186
180
180
1,054
783
68
648
750
796
920
134
200
7
919
194
190
128
,066
744
78
408
800
563
732
126
168
7
975
217
177
126
1,078
791
61
402
889
594
700
127
167
7
1,044
204
178
114
941
791
65
461
779
456
745
137
207
7
1,029
231
152
115
1,130
742
70
532
734
804
816
142
221
6
1,132
282
124
5,558
5,197
5,478
5,796
6,323
6,532
6,224
6,283
6,332
7,181
39
675
318
98
108
177
15,843
192
438
171
1,071
49
816
337
114
89
137
12,344
227
513
170
869
43
831
330
125
90
144
10,415
214
520
166
940
44
832
368
145
117
142
9,056
231
575
177
873
41
846
341
110
155
161
8,458
226
544
175
883
38
790
289
141
i76
159
8,126
219
545
146
958
43
8i0
356
103
140
146
8,003
217
541
140
1,139
40
802
349
99
254
173
7,680
213
482
143
1,165
37
779
363
105
169
279
7,061
198
479
163
1,139
42
764
383
71
160
330
6,726
210
497
180
1,138
19,131
15,665
13,818
12,560
,940
11,588
11,640
11,401
10,771
10,501
24
12
115
21
768
17
13
125
22
739
33
9
125
28
798
120
67
8
45
786
29
11
155
17
904
29
15
169
21
803
41
10
100
27
683
34
11
132
19
765
34
10
103
26
747
63
14
109
24
822
939
917
992
1,025
1,118
1,037
862
962
919
1,032
3,027
51
2,489
54
2,882
57
2,961
60
2,985
71
3,202
61
3,124
57
3,106
62
3.169
59
3,184
55
Total
Total
Asia:
China, People's Rep. of (China Mainland
China, Republic of (Taiwan)
Hong Kong
India
Indonesia
Israel
Japan
Korea
Philippines
Thailand
Other
Total
Africa:
Egypt..
Morocco
South Africa
Zaire
Other
Total.
Other countries:
Australia
All other
Total
Total foreign countries
International and regional:
International 3
Latin American regional
Other regional 4
Total
Grand total
For notes see the following page.
112
1,420
769
63
556
3,077
2,903
2,939
3,022
3,056
3,263
3,181
3,168
3,228
3,239
59,306
64,463
63,751
65,149
65,145
66,432
65,905
65,503
66,487
66,531
952
307
154
980
320
126
983
337
109
,132
345
102
1,149
329
89
1,097
309
81
1,123
289
72
,183
298
70
1,402
299
66
1,609
288
62
1,412
60,719
1,429
1,579
1,569
1,486
1,485
1,552
1,767
1,959
65,889 | 65,180
66,729
66,714
67,919
67,389
67,056
68,254
68,490
1,426 ;
Dec.
A 80
INTL. CAPITAL TRANSACTIONS OF THE U.S. • FEBRUARY 1974
9. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS
IN THE UNITED STATES, BY COUNTRY—Continued
(End of period. Amounts outstanding; in millions of dollars)
Supplementary data 5
1972
1971
1973
Dec.
Apr.
Dec.
Apr.
Other Western Europe:
Cyprus
Iceland
Ireland, Rep. of
7
10
29
2
11
16
2
9
15
3
9
17
9
12
22
Other Latin American republics:
Bolivia
Costa Rica
Dominican Republic
Ecuador
El Salvador
Guatemala
Haiti
Honduras
Jamaica
Nicaragua
Paraguay
Trinidad & Tobago
59
43
90
72
80
97
19
44
19
47
15
14
55
62
123
57
78
117
18
42
19
50
17
10
53
70
91
62
83
123
23
50
32
66
17
15
87
92
114
121
76
132
27
58
41
61
22
20
65
75
104
109
86
127
25
64
32
79
26
17
(2)
(322)
(2)
(2)
38
23
Apr.
15
35
3
2
67
7
3
19
21
10
5
59
10
2
17
18
5
2
88
9
2
Dec.
Apr.
Dec
Apr.
20
3
46
23
33
29
79
35
4
4
159
16
3
60
25
58
53
80
45
6
6
185
39
2
55
54
59
36
3
55
59
93
344
77
5
4
135
236
53
6
39
98
13
12
6
13
21
91
25
2
1
10
6
5
14
23
11
8
9
23
274
46
2
1
6
9
3
13
31
29
11
14
25
296
56
2
5
6
7
10
7
32
57
10
23
30
393
85
2
3
11
10
7
28
51
75
28
19
31
(77)
22
23
27
30
34
Other Asia—Cont. :
36
36
2
60
28
28
Ryukyu Islands (incl. Okinawa) 6 39
Saudi Arabia
41
Singapore
43
Sri Lanka (Ceylon)
4
3
161
Other Africa:
Ethiopia (incl. Eritrea)
127
100
Southern Rhodesia
Other Asia:
Afghanistan
Bahrain
Burma
Cambodia
Iran
Iraq
Jordan
1973
Area and country
Apr.
Other Latin America:
Bermuda
British West Indies
1972
1971
Area and country
25
24
2
3
93
10
4
19
(7)
(73)
114
(74)
1
2
3
Includes Bank for International Settlements and European Fund.
Bermuda included with Bahamas through Dec. 1972.
Data exclude "holdings of dollars" of the International Monetary
Fund but include IMF gold investment until Feb. 1972, when investment
was terminated.
All other:
New Zealand
()
3
16
11
19
(7)
4
Asian, African, and European regional organizations, except BIS and
European Fund, which are included in "Europe."
5 Represent a partial breakdown of the amounts shown in the "other"
categories (except "Other Eastern Europe").
6 Included in Japan after Apr. 1972.
7
Not available.
10. LONG-TERM LIABILITIES TO FOREIGNERS REPORTED
BY BANKS IN THE UNITED STATES
(Amounts outstanding; in millions of dollars)
End of period
196 9
197 0
197 1
1972—Dec. 2 ,
1973—Jan...
Feb...
Mar..
Apr.. .
May. .
June..
July..
Aug..
Sept..
Oct...
Nov.?
Dec.?.
1
Total
To
intl.
and
regional
To foreign countries
Total
Official
institutions
Banks1
Other
foreigners
Germany
United
Kingdom
Other
Europe
Total
Latin
America
Japan
655
385
3
2,490
1,703
902
889
789
446
,601
914
457
1,505
695
144
56
165
257
40
53
56
110
164
46
42
52
7
26
30
239
152
111
fl,000
562
580
439
439
93
93
259
259
87
87
165
165
63
63
32
32
1,044
1,276
1,406
1,399
1,379
1,467
1,527
1,532
1,502
1,473
1,476
1,469
617
613
697
686
427
663
709
713
691
697
757
755
744
738
719
708
74
304
328
329
313
311
311
322
318
312
315
310
257
258
269
274
274
274
305
305
302
305
287
287
96
100
112
111
104
113
141
127
123
122
117
112
165
164
164
164
164
164
164
165
165
165
165
165
61
59
66
68
30
233
234
239
231
233
265
265
263
265
246
237
{1,018
688
769
770
777
758
735
758
761
Excludes central banks, which are included with "Official institutions."
Country or area
2
68
68
68
68
68
68
67
66
Other
Asia
All
other
countries
582
137
87
70
62
9
136
136
32
32
10
10
127
30
71
96
98
96
94
93
95
84
81
80
77
13
16
16
16
16
10
19
17
118
133
128
115
125
145
143
145
140
138
141
18
18
21
18
Data on the two lines shown for this date differ because of changes in
reporting coverage. Figures on the first line are comparable in coverage
with those shown for the preceding date; figures on the second line are
comparable with those shown for the following date.
FEBRUARY 1974 • INTL. CAPITAL TRANSACTIONS OF THE U.S.
A 81
11. ESTIMATED FOREIGN HOLDINGS OF MARKETABLE U.S. TREASURY BONDS AND NOTES
(End of period; in millions of dollars)
1973
1972
Dec.
Europe:
Belgium-Luxembourg
Sweden
United Kingdom
Other Western Europe
Eastern Europe
Aug.
Sept.
6
85
45
327
79
5
6
110
45
327
79
5
6
135
44
276
79
5
6
135
43
278
79
5
6
135
44
300
79
5
6
135
43
281
85
5
6
135
43
280
85
5
6
135
42
275
85
5
6
135
37
236
85
5
7
165
37
247
85
5
Oct.
7
165
37
290
85
5
Nov.f
Dec.f
7
165
38
400
85
5
7
235
34
423
86
5
544
546
569
555
554
547
504
546
588
700
789
558
559
561
561
560
560
560
560
560
560
567
567
1
6
1
6
1
6
1
6
1
6
1
6
1
6
4
3
8
3
9
3
9
3
11
3
11
3
7
7
7
7
7
7
7
7
11
12
12
14
14
4,380
10
4,867
10
5,421
10
5,961
10
5,978
10
5,978
10
5,977
10
5,977
9
5,949
9
5,950
5,950
11
5,143
11
4,552
11
4,391
4,877
5,431
5,971
5,988
5,988
5,988
5,987
5,959
5,961
5,961
5,154
4,563
133
183
183
183
183
183
183
183
183
158
158
158
158
25
25
25
25
25
25
25
25
25
25
25
25
25
5,661
6,223
6,749
7,293
7,333
7,318
7,317
7,308
7,241
7,261
7,303
6,617
6,116
186
28
186
28
176
26
186
26
176
27
142
27
72
27
1
28
1
45
21
45
6
47
1
47
1
48
Africa
All other
International and regional:
International
Latin American regional
214
214
202
212
202
169
100
29
46
66
53
48
49
5,874
6,436
6,951
7,505
7,535
7,487
7,417
7,337
7,287
7,327
7,356
6,665
6,164
Total
Grand total
July
572
Total
Total foreign countries
June
May
547
Latin America:
Latin American republics
Other Latin America
Total
Apr.
Mar.
Feb.
558
Total
Canada
Asia:
Japan.
Other Asia
Jan.
NOTE.—Data represent estimated official and private holdings of marketable U.S. Treasury securities with an original maturity of more than 1
year, and are based on benchmark surveys of holdings and regular monthly
reports of securities transactions (see Table 16).
12. NONMARKETABLE U.S. TREASURY BONDS AND NOTES ISSUED TO OFFICIAL INSTITUTIONS OF
FOREIGN COUNTRIES
(In millions of dollars or dollar equivalent)
Payable in foreign currencies
Payable in dollars
End of period
Total
Total
1970
1971
1972
Belgium
Canada
China,
Rep. of
(Taiwan)
3,563
9,657
15,872
2,480
7,829
14,333
32
32
20
2,289
2,640
2,840
20
20
20
1973—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
16,016
15,863
15,870
416,015
16,012
16,189
16,089
16,015
15,813
15.691
15.692
15,669
14,474
14,474
14,464
14,459
14,456
14,633
14,533
14,383
14,183
14,233
14,233
14,210
20
20
20
20
20
2,840
2,840
2,840
2,840
2,840
2,840
2,840
2,690
2,490
2,540
2,540
2,540
20
20
10
5
2
1974—Jan
15,671
14,210
3
4
2,540
1
Notes issued to the Government of Italy in connection with military purchases in the United States.
2
In addition, nonmarketable U.S. Treasury notes amounting to $125
million equivalent were held by a group of German commercial banks from
June 1968 through Nov. 1972. The dollar value of these notes was increased
by $10 million in Oct. 1969 and by $18 million as of Dec. 31, 1971.
Germany
Italy i Korea Thailand
5,000
11,315
25
22
22
11,471
11,471
11,471
11,471
11,471
11,670
11,670
11,670
11,670
11,670
11,670
11,670
22
22
22
22
22
22
22
22
22
22
22
11,670
15
15
15
Total
Germany 2
Switzerland
100
100
100
1,083
3 1,827
1,539
542
612
306
541
1,215
1,233
100
100
100
100
100
100
1,542
1,389
1,407
41,556
1,556
1,556
1,556
1,631
1,631
1.458
1.459
1,459
306
153
153
172
172
172
172
172
172
1,236
1,236
1,254
1,384
1,384
1,384
1,384
1,458
1,458
1.458
1.459
1,459
4
1,461
1,461
3
Includes $106 million increase in dollar value of foreign currency
obligations revalued to reflect market exchange rates as of Dec. 31, 1971.
4
Includes $15 million increase in Mar. and $145 million increase in
Apr. in dollar value of foreign currency oblieations revalued to reflect
market exchange rates.
A 82
INTL. CAPITAL TRANSACTIONS OF THE U.S. • FEBRUARY 1974
13. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS
IN THE UNITED STATES, BY COUNTRY
(End of period. Amounts outstanding; in millions of dollars)
1973
1972
Area and country
Europe:
Austria
Belgium-Luxembourg
Denmark
France
Germany
Greece
Italy
Netherlands
Portugal
Sweden
Switzerland
Turkey
United Kingdom
U.S.S.R
Other Eastern Europe
Total
Latin America:
Bahamas 1
Brazil
Chile
Colombia
Cuba
Mexico
Panama
Peru
Uruguay
Other Latin American republics
Netherlands Antilles and Surinam
Asia:
China, People's Rep. of (China Mainland)
India
Israel
Other
Africa:
Other
Total
Other countries:
Total
International and regional
May
Apr.
Dec.
Aug.
Sept.
Oct.
12
94
69
141
389
399
19
326
109
65
19
387
234
245
9
999
12
29
56
73
10
96
56
134
434
349
28
278
101
79
18
272
224
208
7
1,061
12
20
56
84
18
107
67
125
368
281
20
278
155
70
14
251
184
206
6
1,346
10
21
42
83
14
190
52
114
413
313
16
242
144
67
18
183
166
234
6
1,304
10
26
46
97
15
150
50
97
461
366
26
.282
132
74
23
183
155
242
8
1,236
8
34
49
87
14
145
53
89
525
392
23
363
172
82
22
189
177
203
16
1,178
19
26
51
72
11
148
48
108
621
311
35
316
133
72
23
222
153
176
10
1,456
10
27
46
59
Nov.*
9
87
63
134
451
345
32
288
129
66
30
238
246
186
5
918
20
29
61
60
9
73
69
140
447
356
19
327
115
67
17
360
267
190
6
984
13
21
50
69
3,037
3,396
3,599
3,684
3,526
3,654
3,654
3,678
3,811
3,985
1,914
2,305
2,400
2,034
2,168
2,186
1,909
2,210
1,979
1,958
379
476
649
52
418
13
1,202
244
145
40
383
388
14
36
396
505
759
45
401
13
1,343
183
143
36
401
382
24
85
408
409
851
40
398
13
1,343
190
147
31
440
383
35
74
408
399
891
43
412
14
1,399
218
169
34
454
380
38
66
431
495
965
36
420
13
1,376
223
180
34
454
373
48
71
442
454
915
50
422
13
1,338
262
176
35
441
394
38
89
455
617
879
40
423
13
1,329
252
178
39
430
409
31
91
469
696
837
80
423
15
1,388
273
208
45
436
431
23
137
485
608
826
125
413
13
1,357
255
212
47
469
465
17
124
498
869
900
151
397
12
1,390
266
178
55
517
490
13
140
4,437
4,715
4,762
4,925
5,119
5,069
5,185
5,462
5,417
5,877
194
93
14
87
105
4,158
296
149
191
300
2
238
122
14
127
126
5,665
331
150
197
296
5
216
132
19
97
116
5,536
338
139
194
324
3
200
204
21
94
111
5,756
347
144
173
354
7
198
218
18
91
133
5,753
348
134
188
352
6
183
116
17
77
133
5,791
336
129
185
350
7
141
128
19
81
145
5,801
348
121
179
361
22
128
121
14
89
145
5,745
372
105
206
349
36
117
124
16
96
155
6,033
368
118
225
377
20
140
147
16
88
166
6,405
401
179
273
394
5,589
7,269
7,116
7,407
7,441
7,321
7,330
7,295
7,664
8,230
21
4
143
13
124
22
5
151
13
137
25
4
166
13
136
34
4
163
42
145
44
5
150
43
149
41
5
151
49
173
43
11
157
48
146
38
4
150
51
163
40
7
147
61
155
35
5
129
60
159
304
327
343
388
391
419
405
406
410
388
291
40
249
50
232
47
260
46
271
40
230
41
218
36
223
36
251
36
243
43
8
120
59
118
330
321
29
255
108
69
19
207
164
125
6
967
22
20
41
49
330
299
280
305
310
271
254
259
287
286
15,611
18,311
18,501
18,744
18,956
18,921
18,737
19,310
19,569
20,724
3
2
2
1
2
1
1
1
1
1
15,614
18,312
18,502
18,745
18,957
18,922
18,737
19,311
19,570
20,725
i Includes Bermuda through Dec. 1972.
NOTE.—Short-term claims are principally the following items payable
on demand or with a contractual maturity of not more than 1 year: loans
made to, and acceptances made for, foreigners; drafts drawn against
foreigners, where collection is being made by banks and bankers for
Dec.f
July
June
their own account or for account of their customers in the United States;
and foreign currency balances held abroad by banks and bankers and
their customers in the United States. Excludes foreign currencies held
by U.S. monetary authorities.
FEBRUARY 1974 • INTL. CAPITAL TRANSACTIONS OF THE U.S.
A 83
14. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS
IN THE UNITED STATES, BY TYPE
(Amounts outstanding; in millions of dollars)
Payable in foreign currencies
Payable in dollars
Loans t
Official
institutions
Banks *
Others
Collections
outstanding
Total
Total
Total
Acceptances
made
for acct.
of foreigners
Other
Total
Foreign
govt, seDeposits curities,
with for- coml.
and fieigners
nance
paper
Other
9,680
10,802
/13,170
\13,272
9,165
10,192
12,328
12,377
3,278
3,051
4,503
3,969
262
119
223
231
1,943
1,720
2,613
2,080
1,073
1,212
1,667
1,658
2,015
2,389
2,475
2,475
3,202
3,985
4,243
4,254
670
766
1,107
1,679
516
610
842
895
352
352
549
548
89
92
119
173
74
166
174
174
/15,471
\15,614
14,625
14,768
5,674
5,682
163
163
2,975
2,975
2,535
2,543
3,269
3,298
3,204
3,204
2,478
2,584
846
846
441
441
223
223
182
182
15,172
17,973
18,324
18,312
18,502
18,745
18,957
18,922
18,737
19,311
19,570
20,725
14,347
16,902
17,374
17,494
17,649
17,907
18,095
18,036
17,961
18,451
18,780
20,063
5,437
6,460
6,534
6,842
6,931
7,285
7,015
6,964
6,827
7,003
7,090
7,733
142
162
141
146
163
205
162
176
155
216
252
268
2,814
3,674
3,683
3,931
3,812
4,037
3,916
4,021
3,920
3,989
4,099
4,587
2,480
2,624
2,711
2,765
2,956
3,043
2,936
2,767
2,752
2,798
2,739
2,878
3,280
3,608
3,751
3,834
3,844
3,901
3,891
3,967
4,088
4,099
4.287
4,304
3,103
3,283
3,464
3,464
3,602
3,963
3,899
3,694
3,700
3,774
3,788
4,155
2,527
3,551
3,624
3,354
3,271
2,758
3,290
3,411
3,345
3,575
3,614
3,870
825
1,071
951
819
854
838
862
886
777
861
790
622
443
596
524
460
499
552
561
488
459
510
512
428
253
313
262
207
237
140
151
151
143
187
131
119
128
162
165
152
118
147
151
247
175
163
148
115
1 Excludes central banks, which are included with "Official institutions."
2 Data on second line differ from those on first line because (a) those
claims of U.S. banks on their foreign branches and those claims of U.S.
agencies and branches of foreign banks on their head offices and foreign
branches, which were previously reported as "Loans", are included in
"Other short-term claims"; and (b) a number of reporting banks are included
in the series for the first time.
3
Data on the two lines shown for this date differ because of changes
in reporting coverage. Figures on the first line are comparable in coverage with those shown for the preceding date; figures on the second line
are comparable with those shown for the following date.
15. LONG-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS
IN THE UNITED STATES
(Amounts outstanding; in millions of dollars)
Country or area
Type
Payable in dollars
Loans t o Official
institutions
Banks i
Other
foreigners
Other
longterm
claims
Payable
in
foreign
currencies
United
Kingdom
Other
Europe
Latin
Canada America
All
other
countries
Japan
Other
Asia
115
246
568
548
583
378
292
429
3,250
3,075
3,667
2,806
2,698
3,345
502
504
575
209
236
315
2,096
1,958
2,455
426
352
300
67
71
130
411
411
593
408
312
228
1,329
1,325
1,458
[4,954
l 5,014
4,539
4,539
833
835
430
430
3,276
3,274
375
436
145
145
704
701
406
406
2,006
1,996
319
348
881
901
503
509
5,017
5,126
5,270
5,413
5,514
5,605
5,626
5,521
5,385
5,567
5,766
5,855
4,536
4,625
4,763
4,917
5.010
5,096
5,116
5,009
4,859
5.011
5,221
5,303
835
836
883
903
932
978
957
1,002
1,010
1,041
1,127
1,122
442
477
496
544
545
550
554
514
507
537
554
599
3,258
3,311
3,384
3,469
3,532
3,568
3,605
3,492
3,342
3,434
3,540
3,582
440
449
460
448
456
464
456
466
457
476
463
480
144
135
724
763
851
904
923
980
1,029
1,007
975
1,011
1,058
1,098
403
434
453
477
511
523
517
404
418
491
484
489
1,967
1,987
1,978
2,000
2,000
2,003
1,983
1,964
1,921
1,960
2,071
2,061
353
342
336
337
331
311
310
304
252
258
251
243
918
930
987
1,031
1,059
1,096
1,123
1,158
1,187
1,203
1,246
1,292
508
535
544
544
558
561
535
548
501
514
516
533
1
Excludes central banks, which are included with "Official institutions."
2 Data on the two lines shown for this date differ because of changes in
reporting coverage. Figures on the first line are comparable in coverage
121
122
131
131
128
137
131
130
138
140
with those shown for the preceding date; figures on the second line are
comparable with those shown for the following date.
INTL. CAPITAL TRANSACTIONS OF THE U.S. • FEBRUARY 1974
A 84
16. PURCHASES AND SALES BY FOREIGNERS OF LONG-TERM SECURITIES, BY TYPE
(In millions of dollars)
U.S. corporate
securities 2
Marketable U.S. Treas. bonds and notes i
Foreign bonds
Foreign stocks
Net purchases or sales
Foreign
Intl.
and
regional
Total
Purchases
Sales
13,158
15,015
13,838
Total
Official
1,542
3,258
455
1,661
3,281
450
-119 14,573
- 2 3 19,073
6 18,583
404
404
403
2,014
562
515
554
31
-48
-71
-79
-51
40
29
-691
-501
562
527
544
40
-15
-1
-9
562
579
540
1,852
1,761
2,220
1,564
1,141
1,097
1,320
1,343
1,173
1,804
1,946
1,360
1,672
3,316
290
130
57
-165
-12
10
-9
-33
-69
-71
17
20
-13
-5
1
- 6 8
20
42
-686
-502
16
-28
8
15
-722
-521
Net pur- Purchases or chases
sales
Sales
Net purchases or
sales
Purchases
Sales
1,439
2,123
1,554
Other
-52
3
23
-15
-1
-9
-39
12
27
36
19
1,415
4,058
4,745
1,687
1,901
1,460
2,621
2,961
2,436
-935
-1,060
-976
1,385
2,532
1,729
1.375
639
243
465
-222
233
178
1,116
1,045
736
716
1,109
523
40
198
422
479
210
69
257
-15
191
145
144
117
139
125
94
96
67
97
103
141
323
144
125
292
150
103
194
157
-132
161
194
158
145
114
1,111
1,040
1,101
899
898
864
963
1,736
1,689
1.376
101
336
305
204
19
-175
211
121
-11
137
123
107
117
115
129
156
159
22
-100
- 6 1
-34
-238
-202
-63
112
125
111
107
125
105
131
178
144
sold abroad by U.S. corporations organized to finance direct investments
abroad.
NOTE.—Statistics include transactions of international and regional
organizations.
t Excludes nonmarketable U.S. Treasury bonds and notes issued to
official
institutions of foreign countries; see Table 12.
2
Includes State and local govt, securities, and securities of U.S. Govt,
agencies and corporations. Also includes issues of new debt securities
17. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE STOCKS, BY COUNTRY
(In millions of dollars)
Purchases
Sales
11,626
14,361
12,749
10,894
12,173
9,955
1972—Dec
1,464
1973—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov. 1 '. . . .
Dec.f
1,401
1,282
1,144
866
777
766
880
972
947
1,366
1,480
870
Period
1971
1972
1973
1
Net purchases or France
sales ( —)
Netherlands
Switzerland
United
Kingdom
Other
Europe
Total
Europe
168
642
684
-49
561
363
71
137
287
627
1,958
2,114
731
2,188
2,794
87
372
439
131
-51
2
219
297
339
1,114
350
48
-3
42
59
132
19
297
924
835
793
728
898
632
564
631
734
1,272
1,071
872
477
446
350
139
-121
134
316
341
212
93
409
-2
32
25
35
21
-2
2
67
53
63
6
106
30
29
5
8
9
-43
-23
-19
1
6
-7
27
9
46
67
47
-8
-14
7
25
60
18
5
54
32
143
150
148
53
-22
52
80
57
52
-34
69
-64
108
82
21
-16
-39
15
28
40
15
66
66
-23
21
42
29
46
3
21
28
34
14
24
20
6
380
371
288
105
-117
74
210
245
167
59
342
-9
Includes international and regional organizations.
Germany
Latin
Canada America
-93
-78
99
Asia Other
37
-32
-1
108
256
577
52
83
5
-1
8
42
4
25
37
25
34
-7
8
19
10
-20
-11
5
-10
-16
-2
11
11
27
16
-9
-4
85
44
21
5
11
55
71
81
21
41
108
34
8
5
11
4
9
-2
5
-6
-3
4
-14
-16
*
-26
-18
-8
A 85
FEBRUARY 1974 • INTL. CAPITAL TRANSACTIONS OF THE U.S.
18. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE BONDS, BY COUNTRY
(In millions of dollars)
Germany
Period
684
1,871
1,951
15
336
201
1972—Dec...
289
56
1973—Jan...
Feb...
Mar..
Apr...
May..
June..
July. .
Aug...
Sept..
Oct.. .
Nov.®
Dec.?.
260
270
759
385
161
64
106
138
12
6
45
33
197 1
197 2
1973*
Nether- Switzer- United
land Kingdom
lands
Other
Europe
Total
Europe
Latin
Canada America
197
135
307
327
357
302
39
315
475
612
1,293
1,233
19
22
44
49
60
210
29
38
29
30
-7
65
76
-3
13
-5
49
46
-3
-96
120
-9
-15
72
14
-14
76
61
73
60
158
94
22
161
149
174
98
215
31
60
- 2
4
3
2
-4
-3
-57
1
2
-22
- 2
-25
-151
-13
46
28
37
NOTE.—Statistics include State and local govt, securities, and securities
of U.S. Govt, agencies and corporations. Also includes issues of new
16
- 1 0
- 2
7
10
12
1
7
32
-52
109
26
87
124
153
Africa
Other Intl. and
countries regional
39
148
26
-21
- 2
323
588
110
-26
623
199
2*
-42
68
-63
59
150
24
-39
10
1
2
11
1
-209
-183
-118
-48
debt securities sold abroad by U.S. corporations organized to finance direct investments abroad.
19. NET PURCHASES OR SALES BY FOREIGNERS OF
LONG-TERM FOREIGN SECURITIES, BY AREA
20. FOREIGN CREDIT AND DEBIT
BALANCES IN BROKERAGE ACCOUNTS
(In millions of dollars)
(Amounts outstanding; in millions of dollars)
Period
Total
Intl.
and
regional
Total
foreign
countries
Europe
Canada
Latin
America
Asia
Africa
Other
countries
1971
1972
1973 p
-992
-651
-801
-310
-90
139
-682
-561
-941
31
492
-141
-275
-651
-566
-46
-69
-107
-366
-296
-168
-57
-66
3
32
29
38
1972-Dec.. . .
-167
9
-176
7
-158
-26
-2
2
1
1973—Jan
Feb.. . .
Mar
Apr.. . .
May.. .
June...
July....
Aug
Sept
Oct
Nov-®..
Dec.®. .
-129
49
116
-166
1
34
-100
-69
-25
-240
-225
-48
9
-2
23
16
11
7
3
5
4
4
9
51
-138
51
93
-182
-10
27
-103
-75
-28
-243
-234
-99
7
-3
24
22
-22
10
-14
-21
-28
-25
-47
-44
-67
41
34
-193
-13
6
-100
-44
8
-148
-78
-10
-70
-16
8
-6
6
13
-9
29
27
-5
6
-13
9
-8
-1
-64
-104
-34
*
*
*
*
-4
-8
-8
-6
-15
*
*
*
—1
1
*
•
*
1
*
2
1
•
14
9
3
3
2
1
*
Credit
balances
(due to
foreigners)
Debit
balances
(due from
foreigners)
291
349
203
281
1971—Mar
511
419
333
311
314
300
320
314
1972—Mar
325
312
286
372
379
339
336
405
310
316
290
364
243
255
End of
period
Sept.f
3
NOTE.—Data represent the money credit balances and
money debit balances appearing on the books of reporting
brokers and dealers in the United States, in accounts of
foreigners with them, and in their accounts carried by
foreigners.
Notes to Tables 21a and 21b on following pages:
i Total assets and total liabilities payable in U.S. dollars amounted to
$16,537 million and $16,894 million, respectively, on Oct. 31 and $17,534
million and $17,824 million, respectively, on Nov. 30, 1973.
NOTE.—Components may not add to totals due to rounding.
For a given month, total assets may not equal total liabilities because
some branches do not adjust the parent's equity in the branch to reflect
unrealized paper profits and paper losses caused by changes in exchange
rates, which are used to convert foreign currency values into equivalent
dollar values.
INTL. CAPITAL TRANSACTIONS OF THE U.S. • FEBRUARY 1974
21a. ASSETS OF FOREIGN BRANCHES OF U.S. BANKS
(In millions of dollars)
Claims on foreigners
Claims on U.S.
Location and currency form
Month-end
Total
Total
IN ALL FOREIGN COUNTRIES
Total, all currencies
Payable in U.S. dollars.
IN UNITED KINGDOM
Total, all currencies
Payable in U.S. dollars.
IN THE BAHAMAS
Total, all currencies.
For notes see p. A-85.
Parent
bank
Other
branches
of parent
bank
Other
Other
banks
OffiNoncial
bank
instifortutions eigners
1970—Dec..
1971—Dec..
47,363
61,334
9,740
4.798
7,248
2,311
2,491 36,221
2,486 54,752
6,887 16,997
11,211 24,550
695
1,167
1972—Nov..
Dec..
76,241
80,034
4,456
4,735
1,824
2,124
2,632 69.425
2,611 73,031
11,350 34,203
11.717 36,738
1,577
1,665
1973—Jan..
Feb..
Mar..
Apr..
May.
June r
July.
Aug..
Sept..
Oct...
Nov..
81,199
87,901
91.646
90,987
92,994
98,757
103,793
105,131
110,673
113,888
121,170
4,926
4,325
4,296
3,917
4,218
4,955
5,404
5,157
4,853
4,888
5,898
2,327
1,565
1,988
1,672
1,926
2,333
2,505
2,289
1,917
1,856
2,915
2,600
2,760
2,308
2,244
2,292
2,622
2,899
2,868
2,936
3,031
2,983
11,945
12,272
12,458
12,787
13,490
13,528
15,316
15,667
17,194
18,042
19,304
36,797
42,203
44,268
42,976
42,746
46,277
47,555
47,411
49,312
50,967
53,858
1,621
1,747
1,965
2,081
2,004
1,900
2,035
2,102
2,242
2,333
2,220
1970—Dec..
1971—Dec..
34,619
40,182
9,452
4,541
7,233
2,305
2,219 24.642
2,236 35,064
4,213 13,265
6,659 18,006
362
864
1972—Nov..
Dec..
49,631
54,058
4,173
4,473
1,803
2,102
2,371 44,664
2,371 48,768
7,439 24,123
8,083 26,907
1,128
1973—Jan..
Feb..
Mar..
Apr..
May.
June'
July.
Aug..
Sept..
Oct..
Nov..
54,196
57,567
58.745
57,515
58,019
51,415
64,146
65,434
68,114
70.293
76,120
4,592
3,985
3,988
3,589
3,930
1,876
4.799
4,521
4,415
4,398
5,424
2,303
1,534
1,957
1,645
1,899
1,012
2,469
2,231
1,866
1,790
2,855
2.289
2,451
2,031
1,944
2.031
864
2,330
2.290
2,549
2,608
2,569
1970—Dec..
1971—Dec..
28,451
34.552
6,729
2,694
5,214
1,230
1972—Nov..
Dec..
41,600
43,684
1,939
2,234
1973—Jan..
Feb..
Mar..
Apr..
May.
June7
July.
Aug..
Sept..
Oct..
Nov..
44,347
48,533
49,696
49,181
49,080
61,844
54,265
53,153
56,127
57,589
62.294
2,585
1,945
2,052
1,662
1,744
4,602
2,500
1,878
1,473
1,853
2,285
1970—Dec..
1971—Dec..
22,574
24,428
1972—Nov..
Dec..
74,006
81,067
84,370
84,091
85,577
90,208
94,584
95,946
101,022
104,291
109,618
48,828
52,692
53,752
52,871
52,871
48,031
57,867
59,458
62,015
64,248
68,907
26,764
29,829
30,568
29,498
28,677
30,348
'31,803
31,387
32,458
33,483
36,133
1,063
1,097
1,124
1,515 21,121
1,464 30,996
3,475 11,095
5,690 16,211
316
476
907
1,138
1.032 38.643
1.096 40,430
5,490 22,671
5,659 23,983
584
609
1,466
848
1,130
794
910
2,285
1.492
937
604
879
1,245
1,118
1.097
922
868
834
2,317
1,008
942
870
974
1,040
40,796
45,487
46,520
46,332
46.001
55,886
50,189
49,692
52,771
53,778
57,146
5,637
5,887
5,783
5,437
5,725
8,493
6,274
6,849
8,022
7,970
8,552
6,596
2,585
15,655
21,493
2,223
4,135
9,420
12,762
27,865
30,381
1,846
2,146
25,579
27,787
4,049
4,326
16,399
17,976
1973—Jan..
Feb..
Mar..
Apr..
May.
June r
July.
Aug..
Sept..
Oct..
Nov..
30.652
32.746
32,658
31,833
30,906
32,864
33,486
32,935
34,401
35.647
39,321
2,468
1,814
1,953
1.539
1,654
1,784
2,193
1.540
1,348
1,700
2,098
27,778
30,423
30,183
29,778
28,666
30,386
30,569
30,694
32,210
33,176
36,386
4,184
4,568
4,324
4,034
3,943
3,900
4,042
4,887
5,399
5,769
6,273
18,069
20,219
20,033
20,119
18,848
20,413
20,209
19,224
19,873
20,415
22,786
1970—Dec..
1971—Dec..
4,815
8,493
1,173
1,282
455
505
1972—Nov..
Dec..
12,330
13,091
1,586
1,496
1973—Jan..
Feb..
Mar.'
Apr..
May.
June.
July.
Aug..
Sept..
Oct..
Nov..
13,064
13,559
13,764
13.653
14,730
16,184
17,086
18,051
18,665
18.553
M9,576
1,387
1,461
1,210
1,407
1,498
1,917
1,929
2,206
2,217
1,81
2,284
8,093
8,550
8,438
8,426
8,548
5,279
9,229
10,033
10.718
11,562
12,334
1,083
24,333
28,473
29,148
29,255
28,394
31,261
30,826
29,696
30,967
31,775
34,059
3,583
7,119
2,119
3,798
221
225
1,365 10,577
1,272 11,419
6,209
6,965
182
1,206
1,378
1,121
1,113
1,227
1,507
1,579
1,639
1,748
1,637
1,636
6,753
7,189
7,519
6,726
7,242
8,206
8,802
9,001
9,420
9,457
9,400
83
89
293
272
410
350
567
469
174
648
717
778
11,495
11,860
12,284
11,988
12,888
14.002
14,862
15.426
15,995
16,279
16,777
1,108
1,140
607
1,220
1,278
1,281
1,321
1,413
574
585
663
651
614
1,129
649
685
660
695
701
FEBRUARY 1974 • INTL. CAPITAL TRANSACTIONS OF THE U.S.
A 87
21b. LIABILITIES OF FOREIGN BRANCHES OF U.S. BANKS
(In millions of dollars)
To foreigners
To U.S.
Total
Parent
bank
Other
Total
Other
branches
of parent
bank
Other
banks
NonOffibank
cial
forinstitutions eigners
Other
Month-end
2,575
3,114
716
669
1,859 42,812
2,445 56,124
6,426 24,829
10,773 31,081
4,180
5,513
7,377
8,756
1,967
2,098
1970—Dec.
1971—Dec.
3,233
3,559
1,000
802
2,432
2,559
70,513
73,842
11,146 39,324
11,344 42,531
8,401
8,486
11,642
11,483
2,493
2,634
1972—Nov.
Dec.
3,414
3,967
4,137
4,095
4,548
4,579
4,491
4,710
4,815
4,821
4,859
836
1,132
1,218
1,044
1,122
1,009
1,213
1,085
1,178
1,366
75,272
80,848
84,066
83,345
84,655
90,133
94,940
95,868
100,742
104,148
10,480
1 ,746
11,868
12,219
12,638
13,284
13,315
15,040
16,002
17,017
17,575
18,544
42,259
46,370
48,520
47,874
48,536
52,388
55,705
56,152
58,734
61,126
65,630
9,236
9.387
9,454
9,538
9,331
9,593
9,676
8,585
8,769
9,070
9,703
12,032
13,223
13,873
13,294
13,505
13,837
14,519
15,128
16,221
16,377
16,603
2,513
3,086
3,443
3,547
3,792
4,044
4,362
4,552
5,116
4,919
5,832
1973—Jan.
Feb.
1,088
2,578
2,835
2,919
3,051
3,426
3,569
3,279
3,625
3,636
3,455
3,771
2.334
2,674
657
511
1,677
2,163
32,509
38,083
4,079 19,816
6,653 22,069
3,737
4,433
4,877
4,928
1,243
1,276
1970—Dec.
1971—Dec.
2,753
3,104
651
848
2,102 48,082
2,256 51,81
7,741
8,178
27,241
30,253
6,734
6,913
6,365
6,467
1,305
1,459
1972—Nov.
2,995
3,466
3,613
3,562
4,005
4,036
3,893
4,158
4,233
4,273
4,236
693
954
1,038
886
955
52,113
55.780
57.127
55,604
55,636
58.781
60,482
61,041
63,705
65,345
70,719
8.400
8,750
8,735
8,657
7,680
7.808
7,771
7,743
7,361
7,354
7,092
6,242
6,366
6,325
6,441
6,800
7,200
7,489
7,234
7,190
7,183
7,493
7,572
8,429
8,498
8,857
1,297
1,568
1,691
1,750
1,786
1,844
1,961
2,157
2,376
2,293
3,184
1973—Jan.
Feb.
8,774
9,626
10,612
11,036
11,636
12,313
29,233
32,023
33,131
31,970
32,275
35,470
36,271
36,616
37,874
38,886
43,108
1,339
1,660
116
111
1,222 26,520
1,550 32.128
2.320
3.401
16,533
19,137
3,119
4,464
4,548
5,126
592
763
1970—Dec.
1971—Dec.
1,481
1,456
132
113
1,349 39,149
1,343 41,232
2,928
2,961
22,769
24,776
6,340
6,453
7,112
7,042
969
997
1972—Nov.
1,501
1,844
1,858
1,970
2,028
1,957
1,875
2,080
2,125
2,031
2,198
107
264
235
165
170
122
164
171
161
134
143
1,394
1,580
1,624
1,805
1,857
1,835
1,711
1,909
1,964
1,897
2,055
41,933
45,628
46,750
46,075
45,792
48,145
50,973
49,562
52.238
53,748
57,434
3,277
3,157
3,164
3,397
3,614
3.321
3,883
3,731
4,118
4,036
3,886
23,959
27,038
28,119
27,796
27,168
29,332
31,029
30,502
32,210
33,531
36,348
7,285
7,517
7.388
7,509
7,324
7,585
7,817
6,753
6,952
6,999
7,700
7,412
7,915
8,078
7,373
7,685
7,907
8,245
8,575
8,957
9,182
9,500
913
1,062
1,088
1,136
1,260
1,313
1,418
1,512
1,764
1,809
2,662
1973—Jan.
Feb.
1,208
1,412
98
23
1,110
21,495
1,389 23,059
1,548
2,164
13,684
14,038
2,859
3,676
3,404
3,181
302
374
1970—Dec.
1971—Dec.
1,270
1,276
92
72
1,178 26,778
1,203 29,121
2,008
1,959
15,383
17,478
5,280
5,349
4,155
4,287
510
536
1972—Nov.
1.335
1,661
1,676
1,735
1,809
1,731
1,661
1,846
1,866
1,836
1,908
72
226
195
119
138
102
148
148
137
108
87
2 , 2 3 4 16,205
2,188 18,360
2,128 18,334
2,318 17,672
2,225 16,982
2,234 18,390
2,316 18,723
2,213 18,671
2,245 19,949
2,515 20,383
2,468 23,189
6,162
6,394
6,251
6,245
5,897
5,990
5,868
5,005
5,126
4.809
4,983
4,490
4,771
4,942
4,546
4,626
4,663
4,739
4,660
5,022
5,194
5,598
500
591
598
533
608
575
595
682
809
732
1,557
1973—Jan.
Feb.
2,302
2,511
2,575
2,676
3,050
3,167
2,847
3,215
3,211
3,068
3,339
868
1,046
943
1,022
1.205
897
1,264
1,436
1,481
1,616
1,671
1,629
1,513
1,698
1,729
1,727
1,821
29,091
31,714
31,655
30.782
29,730
31,278
31,645
30,549
32,342
32,902
36.239
8,810
Oct.
Oct.
July
Oct.
. Payable in U.S. dollars
July
Sept.
2,872
4,784
823
1,124
90
188
1970—Dec.
1971—Dec.
934
1,220
11,230
11,703
1,982
1,964
7,862
8,395
1,386
1,344
166
168
1972—Nov.
1,137
11,760
12,144
12,194
12,138
12,981
14,370
15,381
16,196
16,561
16,437
17,630
1,875
2,223
1,830
1,977
2,238
2,579
3,002
3,499
3,640
3,865
4
8,502
8,394
8,829
8,505
9,259
10,410
10,762
11,064
10,923
10,808
11,961
1,383
1,527
1,536
1,656
1,483
1,381
1,616
1,633
1,999
1,764
1,581
167
230
267
389
345
334
331
395
569
541
565
1973—Jan.
For notes see p. A-85.
IN UNITED KINGDOM
. . . Total, all currencies
Apr.
May
488
1,649
• Payable in U.S. dollars
June
July
4,183
7,557
1,304
1,126
1,404
1,480
1,374
1,458
1,535
1,574
1,382
IN ALL FOREIGN COUNTRIES
. . . Total, all currencies
June '
542
750
1,186
Location and currency form
Sept.
IN THE BAHAMAS
.Total, all currencies
A 88
INTL. CAPITAL TRANSACTIONS OF THE U.S. • FEBRUARY 1974
22. LIABILITIES OF U.S. BANKS TO THEIR FOREIGN BRANCHES AND FOREIGN BRANCH HOLDINGS OF
SPECIAL U.S. GOVERNMENT SECURITIES
(Amounts outstanding; in millions of dollars)
Wednesday
Liabilities
1
Liab. plus
sec. 2
Wednesday
4,920
6,202
7,104
6,039
27
26
25
31 (1/1/69)
1969
Mar.
June
Sept.
Dec.
9,621
13,269
14,349
12,805
26
25
24
31
1970
Mar.
June
Sept.
Dec.
11,885
12,172
9,663
7,676
25
24
30
30
Wednesday
2,858
1,492
2,475
909
31
30
29
29
4,358
4,500
3,578
1,419
Apr. 2 6 . .
May 3 1 . .
June 28..
1,374
1,465
1,443
July 26..
Aug. 30..
Sept. 27..
1,345
1,270
2,023
Oct. 2 5 . .
Nov. 29..
Dec. 27..
1,415
1,745
1,406
1
Wednesday
1,068
6..
13..
20..
27..
940
1,266
1,242
1,521
Nov.
July
3..
11..
Dec.
25..
1,766
1,664
2,146
2,086
1..
8..
15..
22 r .
29
2,226
2,276
1,900
2,446
2,802
5..
1,512
1,942
1,801
1,731
1,532
18..
Aug.
Sept.
12..
1,413
790
1,127
Apr. 2 5 . .
1,123
10..
1,351
17..
24..
31'.
19..
26..
Oct.
May 30..
Liabilities
1
1973
June
Jan. 3 1 . .
Feb. 2 8 . .
Mar. 2 8 . .
1
Represents gross liabilities of reporting banks to their branches in
foreign countries.
2
For period Jan. 27, 1971 through Oct. 20, 1971, includes U.S. Treasury
Liabilities
1973
Jan. 26..
Feb. 23..
Mar. 29..
1973
1971
Mar.
June
Sept.
Dec.
1
1972
1968
Mar.
June
Sept.
Dec.
Liabilities
lr.
14'.
21 r .
28'.
1,754
1,870
2,473
2,458
5..
12 r .
19 r .
26 r .
1,911
1,938
2,382
1,703
1974
2r.
Jan.
1,158
1,322
2,039
2,002
1,683
9r.
16'.
23 r .
30..
1,695
1,790
1,814
1,642
1,768
3..
Certificates Eurodollar Series and special Export-Import Bank securities
held by foreign branches. Beginning July 28, 1971, all of the securities
held were U.S. Treasury Certificates Eurodollar Series.
24. SHORT-TERM LIQUID CLAIMS ON FOREIGNERS
REPORTED BY NONBANKING CONCERNS
23. DEPOSITS, U.S. TREAS. SECURITIES,
AND GOLD HELD AT F.R. BANKS FOR
FOREIGN OFFICIAL ACCOUNT
(Amounts outstanding; in millions of dollars)
(In millions of dollars)
Payable in
Payable in dollars foreign currencies
Assets in custody
End of
period
End of
period
Deposits
U.S. Treas.
securities 1
Earmarked
gold
1971 .
1972.
294
325
43,195
50,934
1973—Jan...
Feb. .
Mar..
Apr..
May.
June.
July..
Aug..
Sept..
Oct...
Nov..
Dec...
310
455
327
328
289
334
280
259
250
426
420
251
50,118
56,914
359,389
358,255
58,015
57,545
57,054
55,855
55,407
54,766
52,998
52,070
15,526
15,522
15,519
15,513
15,511
15,486
15,464
15,455
15,437
417,122
17,104
17,068
1974—Jan...
392
49,582
17,044
2
13,815
15,530
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
change in par value of the U.S. dollar in May 1972.
3 Includes $15 million increase in Mar. and $160 million
increase in Apr. in dollar value of foreign currency obligations revalued to reflect market exchange rates.
4
The value of earmarked gold increased because of the
change in par value of the U.S. dollar in Oct. 1973.
NOTE.—Excludes deposits and U.S. Treas. 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.
Total
Deposits
Shortterm
investments 1
Shortterm
Deposits investments 1
United
Kingdom
Canada
1,638
/1,319
\1,491
1,141
1,219
952
1,062
697
87
116
161
150
272
174
183
173
60
76
86
121
979
610
663
372
280
469
534
443
1971—Dec. 2 . . .
/1,648
\1,507
1,092
1,078
203
127
234
234
120
68
577
580
587
443
1972—No v
Dec.2.. . .
2,058
fl,965
\2,250
1.493
1,446
1,789
167
169
55
343
307
338
55
42
68
635
702
869
587
485
535
1973—Ja n
Feb
Mar. r
Apr.r.. . .
May r . . . .
Juner....
J u l y . . ..
Aug. r
Sept. r
Oct
Nov
2,458
2,989
3,074
3,041
3,188
3,203
3,260
3,349
3,203
2,883
3,120
1,929
2,218
2,282
2,272
2,412
2,542
2,482
2,575
2.494
2,223
2,494
92
170
156
118
130
74
136
82
78
66
58
344
378
412
416
433
453
475
484
471
447
432
93
224
225
234
211
134
167
209
161
148
136
921
1,012
1,100
1,042
1,008
1,062
1,068
1,061
1,080
981
1,034
704
,088
963
882
,007
878
955
936
882
868
904
196 8
1969
197 0
2
1 Negotiable and other readily transferable foreign obligations payable on demand
or having a contractual maturity of not more than 1 year from the date on which the
obligation was incurred by the foreigner.
2
Data on the two lines for this date differ because of changes in reporting coverage.
Figures on the first line are comparable in coverage with those shown for the preceding
date; figures on the second line are comparable with those shown for the following date.
NOTE.—Data represent the liquid assets abroad of large nonbanking concerns in
the United States. They are a portion of the total claims on foreigners reported by
nonbanking concerns in the United States and are included in the figures shown in
Tables 25 and 26.
FEBRUARY 1974 • INTL. CAPITAL TRANSACTIONS OF THE U.S.
A 89
25. SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS
(End of period. Amounts outstanding; in millions of dollars)
Claims on foreigners
Liabilities to foreigners
Mar. r
Dec. r
Europe:
Germany, Fed. Rep. of
Greece
Italy
Netherlands
Portugal
United Kingdom
Yugoslavia
Other Western Europe
Eastern Europe
1973
1972
1973
1972
Area and country
Mar. r
Dec.r
Sept.p
June
Sept. p
June
2
83
7
4
167
157
15
121
109
14
4
81
13
112
4
1,057
7
2
3
3
75
8
4
161
147
19
107
102
14
5
82
23
134
3
898
16
2
6
2
81
19
4
165
182
24
103
111
13
4
72
25
90
3
746
17
3
22
2
129
18
7
165
193
33
108
113
10
12
79
32
148
6
829
22
3
24
19
73
29
25
228
195
35
202
84
16
19
157
57
82
48
1,182
12
12
42
14
121
26
21
288
245
36
204
97
18
19
159
45
87
23
1,422
14
9
40
17
109
20
21
315
273
40
201
96
19
25
140
49
90
14
1,400
18
9
91
15
112
21
31
275
265
52
201
118
21
24
169
53
63
17
1,482
21
12
73
1,961
1,808
1,686
1,933
2,517
2,888
2,949
3,025
Canada
213
266
248
236
965
1,360
1,300
1,330
Latin America:
Argentina
Brazil
Chile
Colombia
Cuba
Mexico
Panama
Peru
Uruguay
Venezuela
Other L.A. republics
Bahamas 1
Neth. Antilles and Surinam
Other Latin America
29
35
18
7
1
27
18
4
7
21
45
381
10
4
30
42
17
8
24
47
13
7
24
41
13
8
37
18
6
3
23
47
415
11
19
36
17
10
2
24
49
349
7
20
74
172
31
40
1
195
72
33
5
106
96
571
12
44
60
178
29
36
1
204
72
34
5
101
102
766
11
90
65
202
34
44
34
17
4
5
23
46
320
10
9
79
169
34
40
1
183
74
36
4
92
95
585
13
34
605
565
670
602
1,439
1,451
1,688
1,753
32
26
12
7
16
13
189
21
16
5
152
32
33
17
7
16
16
229
19
25
5
156
31
35
13
7
15
9
275
18
19
6
140
36
31
17
7
15
11
328
20
16
6
179
65
32
34
34
31
473
63
48
23
203
1
61
31
32
39
34
518
47
47
25
191
11
76
34
29
36
27
506
41
47
24
203
48
77
36
32
41
28
632
48
52
27
203
488
554
567
665
1,007
1,026
1,033
1,224
32
8
62
37
6
12
67
20
6
12
67
11
6
19
97
16
52
8
88
25
56
16
84
23
51
15
92
28
60
19
90
104
121
105
134
164
179
181
197
46
13
54
11
72
11
94
9
85
22
81
24
75
26
89
22
59
65
83
103
107
105
101
111
*
*
*
*
1
1
1
-3,381
3,361
3,671
6,199
7,011
7,254
Total
Total
Asia:
China, People's Republic
(China Mainland)
China, Rep. of (Taiwan)
Hong Kong
India
Indonesia
Israel
Japan
Korea
Philippines
Thailand
Other Asia
Total
Africa:
Egypt
South Africa
Zaire
Other Africa
Total
Other countries:
Australia
All other
Total
International and regional
Grand total
of
3,430
*
*
i Includes Bermuda.
NOTE.—Reported by exporters, importers, and industrial and commercial concerns and other nonbanking institutions in the United States.
*
*
187
91
37
5
103
125
744
9
105
*
7,640
Data exclude claims held through U.S. banks, and intercompany accounts
between U.S. companies and their foreign affiliates,
A 90
INTL. CAPITAL TRANSACTIONS OF THE U.S. • FEBRUARY 1974
26. SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY
NONBANKING CONCERNS, BY TYPE
(Amounts outstanding; in millions of dollars)
Claims
Liabilities
Payable in foreign
currencies
Total
Payable
in
dollars
Payable
in
foreign
currencies
Payable
in
dollars
Total
Deposits with
banks abroad
in reporter's
name
Other
1,797
1,786
2,124
1,450
1,399
1,654
346
387
471
3,874
3,710
4.159
3,222
3,124
3,532
386
221
244
267
365
383
2,387
2,512
2,677
1,843
1,956
2,281
543
557
496
4,457
4,361
4.160
3,868
3,756
3,579
234
301
234
355
305
348
2,437
2,375
2,564
2,704
2,763
1,975
1,937
2,109
2,229
2,301
462
438
454
475
463
4,515
4,708
4,894
5,185
5,004
3,909
4,057
4,186
4,535
4,467
232
303
383
318
290
374
348
326
333
247
2,844
2,925
2,933
3,119
3,430
2,407
2,452
2,435
2,635
2,918
437
472
498
484
512
5,177
5,331
5,495
5,723
6,199
4,557
4,685
4,833
5,074
5,523
318
376
432
411
394
302
270
230
238
282
3,381
3,361
3,671
2,858
2,780
2,970
523
581
701
7,011
7,254
7,640
6,112
6,392
6,690
462
504
536
437
358
414
i Data on the two lines shown for this date differ
because of changes in reporting coverage. Figures on
the first line are comparable with those shown for the
preceding date; figures on the second line are comparable with those shown for the following date.
27. LONG-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS
(Amounts outstanding; in millions of dollars)
Claims
Total
liabilities
End of period
Country or area
Total
United
Kingdom
Other
Europe
Canada
Brazil
Mexico
Other
Latin
America
Japan
Other
Asia
Africa
All
other
1,418
1,725
2,304
1,965
2,215
2,363
167
152
152
369
433
442
465
496
562
179
172
177
70
73
77
213
388
420
143
141
142
246
249
271
71
69
75
42
42
46
1970—Mar
June
Sept
Dec
2,358
2,587
2,785
3,102
2,744
2,757
2,885
2,950
159
161
157
146
735
712
720
708
573
580
620
669
181
177
180
183
74
65
63
60
458
477
586
618
158
166
144
140
288
288
284
292
71
76
73
71
47
54
58
64
1971—Mar
June
Sept
7
\
3,177
3,172
2,939
3,159
3,138
2,983
2,982
3,019
3,118
3,118
154
151
135
128
128
688
687
672
705
705
670
677
765
761
767
182
180
178
174
174
63
63
60
60
60
615
625
597
652
653
161
138
133
141
136
302
312
319
327
325
77
75
85
86
86
72
74
75
85
84
J
\
3,093
3,300
3,448
3,540
3,864
3,191
3,255
3,235
3,370
3,480
129
108
128
163
187
713
713
695
715
758
787
797
805
833
857
175
188
177
184
187
60
61
63
60
64
665
671
661
659
702
137
161
132
156
134
359
377
389
406
399
81
86
89
87
82
85
93
96
109
111
4,022
4,008
4,255
3,622
3,696
3,855
151
174
211
816
823
840
871
882
884
165
146
152
63
65
71
794
817
829
124
138
152
413
416
475
101
104
104
125
131
137
1969—Sept
D
1
1972—Mar
June
Sept 1 r
Dec.
1973—Mar.'
June
Sept.*
/
\
i Data on the two lines shown for this date differ because of changes
in reporting coverage. Figures on the first line are comparable with those
shown for the preceding date; figures on the second line are comparable
with those shown for the following date.
FEBRUARY 1974 • EXCHANGE RATES
A 91
FOREIGN EXCHANGE RATES
(In cents per unit of foreign currency)
Australia
(dollar)
Austria
(schilling)
Belgium
(franc)
Canada
(dollar)
Denmark
(krone)
Finland
(markka)
France
(franc)
Germany
(Deutsche
mark)
111.36
113.61
119.23
141.94
3.8659
4.0009
4.3228
5.1649
2.0139
2.0598
2.2716
2.5761
95.802
99.021
100.937
99.977
13.334
13.508
14.384
16.603
23.742
23.758
24.022
26.165
18.087
18.148
19.825
22.536
27.424
28.768
31.364
37.758
Oct
Nov.
t)ec
127.16
135.46
141.29
141.50
141.50
141.58
141.78
141.48
146.83
148.22
148.22
148.33
4.3203
4.8582
4.8759
4.8330
4.9082
5.2408
5.8124
5.5917
5.5695
5.5871
5.2670
5.1150
2.2665
2.3981
2.5378
2.4895
2.5356
2.6643
2.8151
2.7035
2.7089
2.7328
2.5882
2.4726
100.071
100.440
100.333
99.928
99.916
100.160
100.049
99.605
99.181
99.891
100.092
100.058
14.536
15.386
16.275
16.099
16.241
17.130
18.041
17.521
17.480
17.692
16.744
16.089
23.986
24.728
25.628
25.872
25.277
26.731
27.202
27.314
27.042
27.202
26.894
26.104
19.671
20.987
22.191
21.959
22.341
23.472
24.655
23.527
23.466
23.718
22.687
21.757
31.288
33.273
35.548
35.252
35.841
38.786
42.821
41.219
41.246
41.428
38.764
37.629
Jan
148.23
4.8318
2.3329
100.859
14.981
25.138
19.905
35.529
India
(rupee)
Ireland
(pound)
Italy
(lira)
Japan
(yen)
Malaysia
(dollar)
Mexico
(peso)
Netherlands
(guilder)
New
Zealand
(dollar)
13.233
13.338
13.246
12.071
239.59
244.42
250.08
245.10
.15945
.16174
.17132
.17192
.27921
.28779
.32995
.36915
32.396
32.989
35.610
40.988
8.0056
8.0056
8.0000
8.0000
27.651
28.650
31.153
35.977
111.48
113.71
119.35
136.04
July
Aug
Sept
Oct
Nov
Dec
12.494
12.910
13.260
13.255
13.340
13.753
13.605
13.220
12.987
12.938
12.767
12.328
235.62
242.75
247.24
248.37
253.05
257.62
253.75
247.57
241.83
242.92
238.70
231.74
.17079
.17421
.17604
.16971
.17100
.16792
.17200
.17423
.17691
.17656
.16904
.16458
.33136
.36041
.38190
.37666
.37786
.37808
.37801
.37704
.37668
.37547
.35941
.35692
35.523
37.679
39.922
40.307
40.333
40.865
43.121
43.859
43.361
43.641
41.838
41.405
8.0000
8.0000
8.0000
8.0000
8.0000
8.0000
8.0000
8.0000
8.0000
8.0000
8.0000
8.0000
31.084
33.119
34.334
33.890
34.488
36.582
38.700
37.596
38.542
40.011
37.267
35.615
119.52
126.87
132.21
132.99
132.34
132.40
135.02
135.33
145.07
148.64
147.74
144.34
Jan
11.854
222.40
.15433
.33559
40.094
8.0000
34.009
139.08
Norway
(krone)
Portugal
(escudo)
South
Africa
(rand)
Spain
(peseta)
Sri Lanka 1
(rupee)
Sweden
(krona)
Switzerland
(franc)
United
Kingdom
(pound)
1973
13.992
14.205
15.180
17.406
3.4978
3.5456
3.7023
4.1080
139.24
140.29
129.43
143.88
1.4280
1.4383
1.5559
1.7178
16.774
16.800
16.057
15.705
19.282
19.592
21.022
22.970
23.199
24.325
26.193
31.700
239.59
244.42
250.08
245.10
1973—Jan
Feb.
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
15.128
16.038
16.954
16.428
17.196
18.192
18.932
18.145
18.048
18.285
17.872
17.651
3.7280
3.8562
4.1005
3.9563
4.0050
4.2175
4.4624
4.3243
4.2784
4.3014
4.1155
3.9500
127.55
134.91
141.43
141.70
141.65
148.07
148.63
148.52
148.50
148.54
148.45
148.66
1.5755
1.6355
1.7183
1.7217
1.7224
1.7229
1.7385
1.7553
1.7610
1.7576
1.7479
1.7571
14.904
15.407
15.774
15.777
15.883
16.538
16.431
15.948
15.768
15.481
15.503
15.044
21.092
21.935
22.582
22.161
22.567
23.746
24.732
24.070
23.769
23.942
23.019
22.026
26.820
29.326
31.084
30.821
31.494
32.757
35.428
33.656
33.146
33.019
31.604
31.252
235.62
242.75
247.24
248.37
253.05
257.62
253.75
247.57
241.83
242.92
238.70
231.74
1974—Jan
16.739
3.7195
148.66
1.7205
14.423
20.781
29.727
222.40
Period
1970
1971
1972..
1973
1973
1974
Jan
Feb
Mar
Apr
May
June
July
Aug
Period
1973
1974
Jan
Feb
Mar
Apr
May
Period
1
Ceylon renamed Sri Lanka under new constitution, 1972.
NOTE.—Averages of certified noon buying rates in New York for cable
transfers. For description of rates and back data, see "International Finance," Section 15 of Supplement to Banking and Monetary Statistics, 1962.
CENTRAL BANK RATES • FEBRUARY 1974
A 92
CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS
(Per cent per annum)
Changes during the last 12 months
Rate as of
Jan. 31, 1973
Per
cent
Month
effective
Argentina
Austria
Belgium
Brazil
Canada
18.0
5.5
5.0
18.0
4.75
Feb.
Nov.
Dec.
Feb.
Oct.
1972
1972
1972
1972
1971
Chile
China, Rep. of (Taiwan)
Colombia
Costa Rica
Denmark
7.0
9.25
14.0
5.0
7.0
Jan.
May
May
June
Oct.
1972
1971
1970
1966
1972
Ecuador
Egypt
El Salvador
Ethiopia
Finland
8.0
5.0
4.0
6.50
7.75
Jan.
May
Aug.
Aug.
Jan.
1970
1962
1964
1970
1972
France
Germany, Fed. Rep. o f . . . . .
Ghana
Greece
Honduras
7.5
5.0
8.0
6.5
4.0
Nov.
Jan.
July
Sept.
Feb.
1972
1973
1971
1969
1966
Iceland
India
Indonesia
Ireland
5.25
6.0
6.0
7.5
8.75
Jan.
Jan.
May
Dec.
Jan.
1966
1971
1969
1972
1973
Italy
Jamaica
Japan
Korea
Mexico
4.0
7.0
4.25
13.0
4.5
Apr.
Jan.
June
Jan.
June
1972
1973
1972
1972
1942
3.5
4.0
6.0
4.5
4.5
Nov.
Nov.
Mar.
June
Sept.
1951
1972
1972
1968
1969
6.0
9.5
10.0
4.0
6.0
May
Nov.
June
Dec.
Aug.
1972
1959
1969
1972
1972
5.0
6.5
5.0
4.5
5.0
Oct.
Jan.
Nov.
Jan.
Oct.
1971
1970
1971
1973
1959
5.0
9.0
8.75
5.0
18.0
Sept.
Sept.
Jan.
Oct.
Sept.
1966
1970
1973
1970
1970
Morocco
Netherlands
New Zealand
Nigeria
Norway
Pakistan
Peru
Philippine Republic
Portugal
South Africa
Spain
Sri Lanka 1
Sweden
Switzerland
Thailand
Tunisia
Turkey
United Kingdom
Venezuela
Vietnam
1
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
6.0
6.0
5.50
5.25
5.75
6.5
8.75
7.75
6.75
6.25
10.75
10.5
8.0
9.00
9.25
8.50
9.5
6.0
7.0
9.0
10.5
12.75
6.5
9.0
5.0
9.00
6.0
5.0
6.0
6.5
8.00
7.0
8.0
5.00
5.5
8.0
8.5
Ceylon renamed Sri Lanka under new constitution, 1972.
NOTE.—Rates shown are mainly those at which the central bank either
discounts or makes advances against eligible commercial paper and/or
govt, securities for commercial banks or brokers. For countries with
more than one rate applicable to such discounts or advances, the rate
shown is the one at which it is understood the central bank transacts
the largest proportion of its credit operations. Other rates for some
of these countries follow:
Argentina—3 and 5 per cent for certain rural and industrial paper, depending on type of transaction;
Brazil—8 per cent for secured paper and 4 per cent for certain agricultural
paper;
Chile—Various rates ranging from 1 per cent to 17 per cent; 20 per cent
for loans to make up reserve deficiencies.
Colombia—5 per cent for warehouse receipts covering approved lists of
products, 6 and 7 per cent for agricultural bonds, and 12 and 18 per cent
for rediscounts in excess of an individual bank's quota;
Costa Rica—5 per cent for paper related to commercial transactions
(rate shown is for agricultural and industrial paper);
Ecuador—5 per cent for special advances and for bank acceptances for
agricultural purposes, 7 per cent for bank acceptances for industrial
purposes, and 10 per cent for advances to cover shortages in legal reserves;
Ethiopia—5 per cent for export paper and 6 per cent for Treasury bills.
Honduras—Rate shown is for advances only.
Indonesia—Various rates depending on type of paper, collateral, commodity involved, etc. ;
Japan—Penalty rates (exceeding the basic rate shown) for borrowings
from the central bank in excess of an individual bank's quota;
1974
1973
Country
7.75
11.50
8.75
13.0
Morocco—Various rates from 3 per cent to 4.6 per cent depending on type
of paper, maturity, collateral, guarantee, etc.
Peru—3.5, 5, and 7 per cent for small credits to agricultural or fish production, import substitution industries and manufacture of exports; 8 per
cent for other agricultural, industrial and mining paper;
Philippines—6 per cent for financing the production, importation, and distribution of rice and corn and 7.75 per cent for credits to enterprises engaged in export activities. Preferential rates are also granted on credits to
rural banks; and
t United Kingdom—On Oct. 9, 1972, the Bank of England announced:
"With effect from Friday October 13th the Bank's minimum lending rate
will until further notice be the average rate of discount for Treasury bills
established at the most recent tender plus one half percent rounded to the
nearest one quarter percent above. Although the rate will therefore be
automatically determined by this formula it will for convenience be made
known each Friday afternoon concurrently with and in the same manner
as the results of the Treasury bill tender. The regular weekly bank rate
announcement will be discontinued from now on." Therefore, the minimum lending rate as of last Friday of the month will be carried in place of
Bank rate.
Venezuela—2 per cent for rediscounts of certain agriculture paper, 4l/2
per cent for advances against government bonds, and 5Vi per cent for
rediscounts of certain industrial paper and on advances against promissory
notes or securities of first-class Venezuelan companies.
Vietnam—10 per cent for export paper; treasury bonds are rediscounted
at a rate 4 percentage points above the rate carried by the bond; and
there is a penalty rate of 24 per cent for banks whose loans exceed quantitative ceilings.
FEBRUARY 1974 • OPEN MARKET RATES; ARBITRAGE
A 93
OPEN MARKET RATES
(Per cent per annum)
I
Month
Treasury Day-tobills,
day
3 months^ money 2
Prime
Treasury
bank
bills,
bills,
3 3 months
3 months
Day-today
money
Clearing
banks'
deposit
rates 4
197 2
1973
3.55
5.43
3.65
5.27
6.06
10.45
5.02
9.40
4.83
8.27
3.84
7.96
1973—Jan..
Feb.
Mar.
Apr.
May
June
July.
Aug.
Sept.
Oct..
Nov.
Dec.
3.79
3.91
4.28
4.73
5.08
5.40
5.67
6.47
6.41
6.56
6.48
6.39
3.72
3.93
4.21
4.53
4.67
5.00
5.28
5.87
6.31
6.54
6.56
6.58
8.76
9.34
9.76
8.64
8.35
8.14
9.06
12.78
12.12
11.37
13.38
13.74
8.49
8.14
8.16
7.87
7.45
7.12
8.35
10.98
11.37
10.75
11.76
12.41
7.66
8.31
7.52
7.20
8.29
6.66
5.89
9.70
9.13
10.53
9.57
6.55
7.30
7.50
7.25
7.11
6.55
6.25
8.99
9.50
9.50
9.50
9.46
1974—Jan..
6.31
6.50
13.67
12.09
9.25
9.25
1 Based on
Based on
Data for
months.
4
Data for
deposits.
2
3
Germany,
Fed. Rep. of
France
United Kingdom
Canada
8.80
average yield of weekly tenders during month.
weekly averages of daily closing rates.
1968 through Sept. 1971 are for bankers' acceptances, 3
1968 through Sept. 1971 are for bankers' allowance on
Treasury
bills,
60-90
days 6
Day-today
money 5
7.23
7.71
7.49
7.46
7.71
7.46
7.89
8.87
9.73
10.99
Netherlands
Switzerland
Day-today
money 7
Treasury
bills,
3 months
Day-today
money
Private
discount
rate
3.04
4.30
10.18
2.15
4.07
1.97
4.94
4.81
4.75
5.75
5.75
5.75
5.75
7.00
7.00
5.58
2.18
11.37
14.84
7.40
10.90
15.78
10.63
9.76
10.57
11.30
11.89
3.16
2.33
1.53
2.78
1.55
.61
.77
3.88
4.28
5.65
7.24
7.97
7.93
7.88
8.75
5.00
5.00
5.00
5.00
5.00
5.00
5.00
5.00
5.25
5.25
5.25
1.22
2.89
3.59
5.58
5.92
5.67
5.25
5.29
6.41
5
Rate shown is on private securities.
6 Rate in effect at end of month.
7
Monthly averages based on daily quotations.
8
Bill rates in table are buying rates for prime paper.
NOTE.—For description and back data, see "International Finance,"
Section 15 of Supplement to Banking and Monetary Statistics, 1962.
ARBITRAGE ON TREASURY BILLS
(Per cent per annum)
United States and Canada
United States and United Kingdom
Treasury bill rates
Treasury bill rates
Date
United
Kingdom
(adj. to
U.S.
quotation
basis)
United
States
Spread
(favor
of
London)
Premium
( + ) or
discount
( - ) on
forward
pound
Net
incentive
(favor
of
London)
Canlada
As
quoted
in
Canada
Adj. to
U.S.
quotation
basis
United
States
Spread
(favor
of
Canada)
Premium
( + ) or
discount
( —) on
forward
Canadian
dollars
Net
incentive
(favor
of
Canada)
1973
Aug..
3
10
17
24
31
10.63
10.76
10.78
10.83
10.82
8.18
8.76
8.47
8.45
8.53
2.45
2.00
2.31
2.38
2.29
-2.97
-4.60
-4.55
-4.88
-4.45
-.52
-2.60
-2.24
-2.50
-2.16
5.82
5.99
6.05
6.12
8.38
5.66
5.82
5.82
5.95
6.00
8.18
8.76
8.47
8-45
8.53
-2.52
-2.94
-2.65
-2.50
-2.53
2.64
2.88
2.69
2.64
2.58
.12
-.06
.04
.14
.05
Sept..
7
14
21
28
10.84
10.80
10.83
10.79
8.77
8.75
8.00
6.94
2.07
2.05
2.83
3.85
-4.55
-5.49
-4.84
-4.52
-2.48
-3.44
-2.01
-.67
6.22
6.42
6.48
6.50
6.04
6.25
6.26
6.29
8.77
8.75
8.00
6.94
-2.73
-2.50
-1.74
-0.65
2.26
2.06
1.89
1.37
-.47
-.44
.15
.72
Oct.
5
12
19
26
10.74
10.67
10.56
10.54
7.36
7.08
6.98
6.99
3.38
3.59
3.58
3.55
-3.73
-3.56
-3.68
-4.08
-.35
.03
-.10
-.53
6.68
6.51
6.53
6.51
6.26
6.29
6.30
6.30
7.36
7.08
6.98
6.99
-1.11
-.79
-.68
-.69
1.41
.46
.08
-.70
.30
-.33
-.60
-1.39
2
9
16
23
30
10.46
10.57
12.24
12.31
12.28
7.39
8.01
7.51
7.74
7.32
3.07
2.56
4.73
4.57
4.76
-3.79
-3.54
-5.11
-5.92
-5.50
-.72
-.98
-.38
-1.35
-.54
6.53
6.52
6.47
6.47
6.43
6.30
6.33
6.25
6.23
6.22
7.39
8.01
7.51
7.74
7.32
-1.09
-1.68
-1.26
-1.51
-1.10
-.28
-.06
.18
.22
.30
-1.37
-1.74
-1.08
-1.29
-.80
7
14
21
28
12.32
12.29
12.29
12.25
7.55
7.49
7.21
7.36
4.77
4.80
5.08
4.89
-5.47
-7.62
-6.76
-6.65
-0.70
-2.82
-1.68
-1.76
6.43
6.38
8.38
6.36
6.23
6.17
6.17
6.15
7.55
7.49
7.21
7.36
-1.32
-1.32
-1.04
-1.21
0.48
0.04
-0.10
-0.24
-0.84
-1.28
-1.14
-1.45
12.04
12.04
11.88
11.86
7.38
7.75
7.75
7.92
4.66
4.29
4.13
3.94
-7.44
-7.30
-7.69
-8.82
-2.78
-3.01
-3.56
-4.88
6.35
6.32
6.30
6.26
6.13
6.10
6.10
6.08
7.38
7.75
7.75
7.92
-1.25
-1.65
-1.65
-1.84
-.60
-.22
-.18
-1.85
-1.87
-1.83
-1.84
.
1974
Jan.
4
11
18
25
NOTE.—Treasury bills: All rates are on the latest issue of 91-day bills.
U.S. and Canadian rates are market offer rates 11 a.m. Friday; U.K.
rates are Friday opening market offer rates in London.
Premium or discount on forward pound and on forward Canadian dollar:
Rates per annum computed on basis of midpoint quotations (between
bid and offer) at 11 a.m. Friday in New York for both spot and forward
pound sterling and for both spot and forward Canadian dollars.
All series: Based on quotations reported to F.R. Bank of New York
by market sources.
For description of series and for back figures, see Oct. 1964 BULLETIN,
pp. 1241-60. For description of adjustments to U.K. and Canadian
Treasury bill rates, see notes to Table 1, p. 1257, and to Table 2, p. 1260,
O c t . 1 9 6 4 BULLETIN.
A 94
GOLD RESERVES • FEBRUARY 1974
GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS
(In millions of dollars; valued at $35 per fine ounce through Apr. 1972, at $38 from May 1972-Sept. 1973, and at $42.22 thereafter)
Estimated
total
world 1
Intl.
Monetary
Fund
United
States
Estimated
rest of
world
Algeria
Argentina
243,230
43,185
41,600
40,905
41,015
41,275
41,160
31,869
2,652
2,682
2,288
2,310
4,339
4,732
13,806
13,235
12,065
10,892
11,859
11,072
10,206
27,285
27,300
26,855
27,725
26,845
25,865
26,220
6
6
155
205
205
191
192
66
84
84
109
135
140
90
44,890
5,830
10,487
28,575
208
5,830
5,830
10,487
10,487
10,487 28,565
10,487
10,487
10,487
28,545
10,487
10,487
10,487 *28,565
11,652
11,652
11,652
208
208
208
208
208
208
208
208
208
231
231
231
44,880
44,865
*44j880
China,
Rep. of
(Taiwan)
5.830
5,826
5.831
5,826
5,826
5,826
6,474
6,476
6,478
Colombia
35
26
31
31
26
17
14
55
62
81
81
82
82
80
End of
period
Italy
Denmark
Egypt
152
281
792
1,638
50
834
152
152
152
152
152
152
281
281
282
281
281
281
281
281
282
312
312
311
793
793
793
793
793
793
793
793
793
50
50
50
50
50
50
50
50
50
56
881
881
1,621
1,603
1,603
1,603
1,603
1,603
1,603
1,603
1,603
1,781
1,781
1,781
834
834
834
834
834
834
834
834
834
927
927
927
Germany,
Fed.
Rep. of
Greece
India
4,410
4,292
4,228
4,539
4,079
3,980
4,077
78
120
130
140
130
117
98
243
243
243
243
243
243
146
130
144
158
158
131
131
106
115
193
193
144
144
264
142
156
17
264
264
264
264
264
264
264
264
142
142
142
142
142
142
142
142
142
158
158
158
156
156
156
156
156
156
156
156
156
173
173
17
17
17
17
17
17
17
17
16
19
Finland
4,459
3,834
3,834
3,834
3,834
3.834
3,841
3.835
3,835
3,835
4,261
4,261
4,261
4,468
4,468
4,468
4.468
4.469
4,462
4,469
4,469
4,469
4,966
4,966
4,966
133
133
133
133
133
133
133
133
133
148
148
69
69
69
69
69
69
69
69
69
69
77
77
77
92
92
92
92
92
92
92
92
92
103
16
16
16
16
16
16
16
18
18
18
Kuwait
Lebanon
53
53
53
53
53
53
53
53
53
59
42
35
Libya
Malaysia
1971.
328
329
338
356
413
532
679
52
67
136
122
86
86
87
182
193
193
288
288
288
322
68
68
68
85
85
85
85
2
1
31
66
63
48
58
1972-- D e c
3,130
801
94
350
93
63
1973--Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec.*
3,134
3,134
3,134
3,134
3,134
3,134
3,134
3,134
3,134
3,483
3,483
3,483
801
801
801
801
802
802
802
802
802
891
891
891
94
94
94
94
350
350
350
350
350
350
350
350
350
388
388
389
93
93
93
93
93
93
93
93
93
103
103
103
63
63
63
63
63
63
63
63
63
70
For notes see end of table.
881
133
16
16
Canada
63
45
45
45
45
45
46
3,826
16
Burma
1,558
1,525
1,480
1,524
1,520
1,470
1,544
4,706
5,238
5,234
3,877
3,547
3,532
3,523
87
87
87
87
87
87
87
87
87
97
97
Brazil
700
701
701
714
715
714
729
13!>
93
93
93
93
85
85
87
Belgium
223
224
231
257
263
239
259
2,404
2,414
2,400
2,923
2,956
2,887
2,884
1965
1966
1967 ,
1968.
1969.
1970.
Austria
97
108
107
114
89
64
64
92
Japan
Australia
281
Netherlands
158
109
166
165
169
176
184
188
188
188
188
188
186
184
182
179
21
21
21
21
21
21
21
1,756
1,730
1,711
1,697
1,720
1,787
1,909
1,151
1,046
1,015
863
872
791
792
Iraq
Norway
31
18
18
24
25
23
33
110
Ireland
21
23
25
79
39
16
16
18
18
Pakistan
53
53
53
54
54
54
55
23
2,059
37
60
23
23
23
23
23
23
23
23
23
26
26
2,059
2,059
2,059
2,059
2,059
2,063
2,063
2,065
2,065
2,294
2,294
2,294
37
37
37
37
37
37
37
37
37
41
41
41
60
60
60
60
60
60
60
60
60
67
67
67
FEBRUARY 1974 • GOLD RESERVES AND PRODUCTION
A 95
GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS—Continued
(In millions of dollars; valued at $35 per fine ounce through Apr. 1972, at $38 from May 1972-Sept. 1973, and at $42.22 thereafter)
Portugal
Saudi
Arabia
South
Africa
576
643
699
856
876
902
921
73
69
69
119
119
119
1Q8
425
637
583
1,243
1,115
666
410
1,021
117
681
541
217
1,022
1,022
1,022
1,022
1,022
1,022
1,022
1.035
1.036
1,154
1,159
117
117
117
117
117
117
117
117
116
129
129
129
706
711
714
720
721
724
734
740
738
820
809
802
542
542
542
542
542
542
542
542
542
602
602
220
220
220
220
220
220
220
220
220
244
244
244
Spain
810
785
785
785
784
498
498
Turkey
United
Kingdom
96
92
92
92
92
92
82
116
102
97
97
117
126
130
2,265
1,940
1,291
1,474
1,471
1,349
775
3,158
89
136
800
133
425
3,162
3,162
3,162
3,162
3,162
3,162
3,162
3,162
3,162
3.512
3.513
3,513
89
89
89
89
89
89
89
89
89
99
99
99
136
136
136
136
136
136
136
136
136
151
151
810
810
810
133
133
133
133
133
133
133
133
133
148
425
425
425
425
425
425
425
425
425
472
472
472
Switzerland
Sweden
202
203
203
225
226
200
200
Thailand
3,042
2,842
3,089
2,624
2,642
2,732
2,909
1 Includes reported or estimated gold holdings of international and
regional organizations, central banks and govts, of countries listed in
this table, and also of a number not shown separately here, and gold to be
distributed by the Tripartite Commission for the Restitution of Monetary
Gold; excludes holdings of the U.S.S.R., other Eastern European countries, and China Mainland.
The figures included for the Bank for International Settlements are
the Bank's gold assets net of gold deposit liabilities. This procedure
avoids the overstatement of total world gold reserves since most of the
gold deposited with the BIS is included in the gold reserves of individual
countries.
2
Adjusted to include gold subscription payments to the IMF made by
Uruguay
155
146
140
133
165
162
148
810
810
810
810
797
797
Venezuela
Yugoslavia
401
401
401
403
403
384
391
some member countries in anticipation of increase in Fund quotas, except
those matched by gold mitigation deposits with the United States and
United Kingdom; adjustment is $270 million.
3
Excludes gold subscription payments made by some member countries
in anticipation of increase in Fund quotas: for most of these countries
the4 increased quotas became effective in Feb. 1966.
Net gold assets of BIS, i.e., gold in bars and coins and other gold
assets minus gold deposit liabilities.
NOTE.—For back figures and description of the data in this and the
following tables on gold (except production), see "Gold," Section 14 of
Supplement
to Banking
and Monetary
Statistics,
1962.
GOLD PRODUCTION
(In millions of dollars; valued at $35 per fine ounce through 1971, at $38 through Sept. 1973, and at $42.22 thereafter)
North and South America
Africa
Period
1966..
1967
1968
1969
1970
1971*
1972*
World
production 1
1,445.0
1,410.0
1,420.0
1,420.0
1,450.0
South
Africa
Ghana
Zaire
United
States
Canada
Mexico
1,080.8
1,068.7
1,088.0
1,090.7
1,128.0
1.098.7
1.109.8
24.0
26.7
25.4
24.8
24.6
24.4
27.5
5.6
5.4
5.9
6.0
6.2
6.0
5.3
63.1
53.4
53.9
60.1
63.5
52.3
54.3
114.6
103.7
94.1
89.1
84.3
79.1
77.2
7.5
5.8
6.2
6.3
6.9
5.3
5.6
.5
1972—Nov
Dec
91.5
84.3
6.0
6.3
1973—Jan
Feb.
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
88.2
86.5
88.5
86.6
86.0
87.6
88.3
90.2
88.2
97.5
6.2
6.1
6.3
6.2
6.8
6.4
5.6
5.7
5.7
7.0
6.4
1
Estimated; excludes U.S.S.R., other Eastern European countries,
China Mainland, and North Korea.
Asia
Nica- Colomragua
bia
5.2
5.2
4.9
3.7
4.0
3.7
3.0
Other
India
Japan
Philippines
Australia
All
otheri
9.8
9.0
8.4
7.7
7.1
6.6
7.1
4.2
3.4
4.0
3.4
3.7
4.1
4.0
19.4
23.7
21.5
23.7
24.8
27.0
32.2
15.8
17.2
18.5
20.0
21.1
22.2
23.0
32.1
28.4
27.6
24.5
21.7
23.5
28.7
62.9
59.4
61.6
60.0
54.1
.7
.5
.4
.3
2.0
1.9
.8
.5
.5
.6
.6
.6
.8
.9
.3
.3
.4
.2
.3
2.4
1.8
A 96
FEDERAL RESERVE BANKS, 1973 • FEBRUARY 1974
EARNINGS AND EXPENSES
(In
Item
Total
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Current sayings
Loans
U.S. Govt, securities
Foreign currencies
All other
Total
109,430,582
7,614,050
7,710,730
4,896,508,414 221,873,896
449,269
19,313
2,670,335
41,203
21,586,856
6,449,366
7,710,730
1,317,088,878 257,976,379
117,203
22,568
1,302,998
57,169
362,859,741
40,969
146,103
351,002.336 262,347,634
23,341
31,080
66,264
156,360
5,016,769,330
229,548,462
1,347,806,665 264,505,482
370,183,112
361,117,661
273,336,667
16,892,190
216,323.791
40.570,742
4,608,281
5,086,323
57,449,988
5,587,862
19,408,840
804,1 16
11,171,872
6,591,264
4,595,244
3,233,478
5,264,156
1,107,634
14,518,976
2,885,313
185,955
379,504
3,300,495
292,938
1,195,504
52,000
2,561,346
136,156
265,999
276,420
1,049,445
3,476,858
53,098,352
9,429,129
1,779,944
827,678
7,633.417
1,071,178
3,576,248
157,995
1,682,808
534,138
814,385
847,873
2,791,266
1,086,768
10,843,787
2,011,831
332,557
193,977
2,636,908
207,548
1.012,778
30,030
202,715
76,596
188,610
173,246
297,848
1,006.540
13,586,409
2,601,051
298,554
327,934
5,306,387
330,810
1,008,073
70,223
721.433
1,396,913
620,766
221,426
154,226
1,528,856
17,337,798
3,180,147
177,837
375,025
6,106,261
472,267
1,899,273
65,880
357,237
520,198
358,818
334,550
143,821
1,348,376
18,000,906
3,287,320
255,526
548,250
6,621,759
721,919
2,359.483
70,491
524,613
648,539
375,905
211,686
488,289
10,485,160
31,179,009
9,197,533
-1,951
474,745
2,399,252
865,377
99,417
4,139,253
5.009.411
2,178,213
-1,454,992
415,833
2,088,790
568,669
118,000
549,458
2,522,270
561,762
217,461
415,311
2,641,286
370,309
-285,961
1,156,925
2,619,107
797,885
202,971
448,447,89?
33,826,299
32,046,476
1,580,049
97,593,154
6,237,084
22,486,491
2,052,861
31,501,676
2,078,256
35,998,913
3,500,418
40,239,950
3,569,407
1,857,600
11,498,900
2,192,099
4,008,800
2,355,300
3,131,800
35,484,125
115,329,138
26,731,451
37,588,752
41,854,631
46,741,157
7,136,299
10,025,720
10,801,593
Current expenses
Salaries :
Officers
Employees
Retirement and other benefits
Postage and expressaee
Telephone and telegraph
Printing and supplies
Insurance
Taxes on real estate
Depreciation
Light, heat, power, and water
Maintenance and repairs
Furniture and equipment:
All other
Inter-Office expenses*7
Subtotal
F.R. currency
Assessments for Board and Governors:
Construction expenses
27,193,200
17,218,500 }
526,685,898
Total
Less reimbursement for certain fiscal agency
and other expenses
31,568,524
1,758,482
6,481,055
1,396,991
2,732,466
1,971,469
2,776,124
495,117,374
33,725,643
108,848,083
25,334,460
34,856,286
39,883,162
44,165,033
4,521,651,953
195,822,819
1,238,958,852 239,171,021
335,326,826
321,234,499
229,171,632
Profit and loss
Current net earnings
Additions to current net earnings:
All other
2,336,124
84,751
503,461
71,440
899,838
95,140
102,827
2,336,124
84,751
503,461
71,440
899,838
95,140
102,827
Deductions from current net earnings:
Losses on sales of U.S. Govt, securities
Losses on foreign exchange transactions
All other
35,241,103
47,416,528
331,981
1,600,658
1,991,494
30,248
9,281,164
12,375,714
60,105
1,894,162
2,323,410
24,406
2,625,734
4,314,904
4,904
2,529,866
2,465,659
52,397
1,869,963
3,319,157
35,642
3,622,400
21,716,983
4,241,978
6,945,542
5,047,922
5,224,762
Net deduction from ( — ) current net earnings...
-80,653,489
-3,537,648 -21,213.522
-4,170,538
-6,045,704
-4,952,782
-5,121,935
1,217,745,060 235,000,484
329,281,122
316,281,717
224,049,697
2,416,994
4,400,130
2,684,548
3,565,229
82,989,612
4,440,998,464
192,285,170
49,139,683
Dividends paid
Payments to U.S. Treasury (interest on F.R.
4,340,683,483
notes)
2,018,707
Net earnings before payments to U.S. Treasury
Surplus, December 31
1,196,836,370 229,888,440
322,347,692 308,264,120 213,799,618
51,178,300
792,845,050
8,358,800
850,100
33,507,650 206,603,950
2,695,050
38,896,550
2,533,300
71,794,750
5,333.050
41,564,950
6,684,850
55,319,550
844,023,350
34,357,750 214,962,750
41,591,600
74,328,050
46,898,000
62,004,400
p Preliminary.
NOTE.—Details may not add to totals because of rounding.
189,416,364
12,549,890
FEBRUARY 1974 • FEDERAL RESERVE BANKS, 1973
A 97
OF FEDERAL RESERVE BANKS
dollars)
Chicago
St. Louis
Minneapolis
Kansas
City
Dallas
7,686,648
6,247,513
San
Francisco
Item
Current savings
16,287,284
3,498,812
1,792,426
778,388,289
69,226
285,432
177,084,559
15,194
74,396
97,099,794
10,307
237,953
192,124,993 212,600,020 666,061,895
24,403
56,716
18,949
87,053
113,041
102,363
795,030,231
180,672,961
99,140,480
199,932,953
218,958,989
10,304,015
U.S. Govt, securities
All other
676,535,667
Current expenses
Salaries:
1,171,780
12,250,077
2,300,532
130,434
330,531
3,494.289
495.570
1,231,870
56,791
548,252
831,182
381,272
119,677
12,380
1,007,557
10,425,002
2,028,838
126,096
1,333,844
57,162
443,345
831,327
345,631
320,566
45,070
882,159
8,249.664
1,520,526
398,051
356,201
2,390,366
241,981
782,933
30,025
1,467,177
361,520
222,117
104,158
217
94,385
3,036
1,479,915
17,489,210
3,777,779
386.979
589,345
5,591,329
337,682
1,610,136
95,162
722,098
282,499
255,773
269,252
2,312
922,730
4,117,375
1,508,117
382,557
341,717
1,681,897
254,557
95,388
500,977
1,282,771
426,996
63,219
554,702
2,383,100
362,823
113,312
509,532
2,004,271
799,018
141,457
503,977
2,429,479
503,807
305,220
56,380,772
3,927,084
26,648,604
1,593,075
19,281,058
842,609
26,768,574
1,976,685
22,870,256
1,865,504
36,631,954
4,603,267
1,571,595
28,160,993
5,181,768
377,240
563,535
7,089,704
1,226,757
12,360,012
2,366,508
159,108
295,997
4,176,730
2,496,245
76,030
1,533,729
633,065
553,448
260,239
276,246
676,156
312,988
298,346
3,102,343
426,825
902,453
42,327
407,119
339,131
212,520
Furniture and equipment:
6,961,600
1,508,800
1,023,500
1,866,300
2,422,502
5,584,500
67,269,456
29,750,479
21,147,167
30,611,559
27,185,262
46,819,721
5,315,358
1,958,990
892,736
2,100,513
974,748
3,209,592
61,954,098
27,791,489
20,254,431
28,511,046
26,183,514
43,610,129
733,076,133
152,881,473
78,886,049
171,421,907
145,672
61,838
69,899
96,446
81,479
123,333
145,672
61,838
69,899
96,446
81,479
123,333
5,659,178
7,444,395
30,350
1,292,199
1,612,162
19,269
700,901
1,090,580
16,762
1,416,118
1,991,494
12,966
1,546,151
2,560,493
37,724
4,825,009
5,927,066
7,208
4,144,368
10,759,283
F.R. currency
Assessments for Board of Governors:
Less reimbursement for certain fiscal agency and
Net expenses
Profit and loss
192,775,474 632,925,538
13,133,923
2,923,630
1,808,243
3,420,578
-12,988,251
-2,861,793
-1,738,344
-3,324,132
-4,062,890 -10,635,950
720,087,882
150,019,680
77,147,705
168,097,775
188,712,584 622,289,588
1,147,795
2,053,131
7,729,090
1,666,567
2,686,541
Deductions from current net earnings:
Losses on foreign exchange transactions
All other
6,221,061
183,063,194 607,130,727
704,086,842
146,823,563
74,484,209
164,539,344
8,271,950
124,150,150
1,529,550
26,955,100
1,515,700
18,132,600
1,505,300
33,396,800
2,962,850
43,153,350
8,937,800
99,369,650
132,422,100
28,484,650
19,648,300
34,902,100
46,116,200
108,307,450
Additions to current net earnings:
Payments to U.S. Treasury (interest on F.R.
A 98
BANKING OFFICES • FEBRUARY 1974
NUMBER OF BANKING OFFICES IN THE UNITED STATES
Commercial banks
Mutual savings
banks
Member
All
banks
Type of office and type of change
Nonmember
Total
Total
National
State
Total
Insured
Banks (head office):
Dec. 31, 1934
Dec. 31, 1941
Dec. 31, 1947 2
Dec. 31, 1951
Dec. 31, 1962
Dec. 31, 1963
Dec. 31, 1964
Dec. 31, 1965
Dec. 31, 1966
Dec. 31, 1967
Dec. 31, 1968
Dec. 31, 1969
Dec. 31, 1970
Dec. 31, 1971
Dec. 31, 1972
Dec. 31, 1973
16,063
14,826
14,714
14,618
13,938
14,078
14,266
14,309
14.274
14,222
14,179
14,158
14,181
14,273
14,413
14,653
15,484
14,278
14,181
14,089
13,427
13,569
13,761
13,804
13,770
13,721
13,679
13,662
13,688
13,784
13,928
14,172
6,442
6,619
6,923
6,840
6,047
6,108
6,225
6,221
6,150
6,071
5,978
5,871
5,768
5,728
5,705
5,737
5,462
5,117
5,005
4,939
4,503
4,615
4,773
4,815
4,779
4,758
4,716
4,669
4,621
4,600
4,613
4,661
980
1,502
1,918
1,901
1,544
1,493
1,452
1,406
1,351
1,313
1,262
1,202
1,147
1,128
1,092
1,076
9,042
7,662
7,261
7,252
7,380
7,461
7,536
7,583
7,620
7,650
7,701
7,791
7,920
8,056
8,223
8,435
7,699
6,810
6,478
6,602
7,072
7,177
7,262
7,320
7,385
7,439
7,504
7,595
7,735
7,875
8,017
8,229
Branches, additional offices, and facilities:
Dec. 31, 1934
Dec. 31, 1941
Dec. 31, 1947 2
Dec. 31, 1951
Dec. 31, 1962
Dec. 31, 1963
Dec. 31, 1964
Dec. 31, 1965
Dec. 31, 1966
Dec. 31, 1967
Dec. 31, 1968
Dec. 31, 1969
Dec. 31, 1970
Dec. 31, 1971
Dec. 31, 1972
Dec. 31, 1973
3,133
3,699
4,332
5,383
12,932
14,122
15.275
16,471
17,665
18,757
19,911
21,196
22,727
24,299
25,977
27,946
3,007
3,564
4,161
5,153
12,345
13,498
14,601
15,756
16,908
17,928
19,013
20,208
21,643
23,104
24,622
26,454
2,224
2,580
3,051
3,837
9,649
10,613
11,457
12,298
13,129
13,856
14,553
15,204
16,191
17,085
17,954
18,966
1,243
1,565
1.870
2,370
6,640
7,420
8,156
8,964
9,611
10,183
10,985
11,727
12,536
13,272
13,974
14,916
981
1,015
1,181
1,467
3,009
3,193
3,301
3,334
3,518
3.673
3,568
3,477
3,655
3,813
3,980
4,050
783
984
1,110
1,316
2,696
2,885
3.144
3,458
3,779
4,072
4,460
5,004
5,452
6,019
6,668
7,488
344
-3
344
-3
116
90
26
-91
-10
-87
-10
-44
-4
-36
-2
-8
-2
8
3
8
Changes—Dec. 31, 1973
Banks:
New banks
Suspensions
Consolidations and absorptions:
Banks converted into branches
Other
....
Interclass changes:
Nonmember to national
Nonmember to State member
State member to national
State member to nonmenber
National to nonmember . . .
Noninsured to national
Noninsured to insured
Noninsured to State member
Net change
...
-28
-21
1
.
-21
1
.
932
1,043
1,275
2,646
2,835
3,094
3,404
3,717
4,026
4,414
4,957
5,404
5,979
6,623
7,442
52
67
41
50
50
50
54
62
46
46
47
48
40
45
46
32
124
165
466
502
549
583
614
669
729
810
891
983
1,113
1,241
228
-3
216
-3
12
-43
-6
-42
-6
-8
-3
-8
-3
28
21
28
21
9
244
32
48
5,737
4,661
1,076
8,435
1,968
93
-80
1,833
89
-79
-7
1,088
54
-63
-15
874
51
-42
-10
214
3
-21
-5
745
35
-16
8
744
35
-16
8
81
10
81
-81
-10
-81
-10
90
90
44
44
44
-90
2
-2
2
-44
-2
-44
2
-3
2
-4
-16
10
-44
-90
2
950
70
18,798
14,760
4,038
7
-10
4
-9
4
-9
-2
-5
203
- 8
-8
168
156
1,974
1,837
1,020
27,743
26,251
7
-10
-2
212
2
817
7,453
212
8,229
Noninsured
511
496
339
327
180
179
178
177
174
170
167
166
165
163
160
160
J31
330
327
328
330
331
333
330
328
326
325
321
1\S3
14,172
-7
Number of branches and additional offices,
Dec. 31, 1973
68
52
194
202
240
.
Facilities reclassified as branches
Other
i
1
1,343
852
783
650
308
284
274
263
235
211
197
196
185
181
206
206
14,653
Branches and additional offices:
Banking facilities:
Established
3
-8
-28
1
Number of banks, Dec. 31, 1973
Banks converted
Discontinued
. .
Sale of branch
Interclass changes:
Nonmember to national
Nonmember to State member
State member to national
State member to nonmember
National to State member
National to nonmember
8
Non- Insured
insured
i:26
-1
-i
-9
-1
103
47
65
121
122
125
132
143
160
169
178
193
212
242
251
-4
- 4
160
206
321
1
126
4
816
1
128
9
7,407
46
1,241
251
2
-1
9
3
Other
Facilities reclassified as branches
Net change
Number of facilities Dec 31 1973
.
. . . .
- 5
203
1
Insured mutual savings banks figures include one to three member
mutual savings banks, 1941 to 1962 inclusive, not reflected in total commercial bank figures.
2 Series revised as of June 30, 1947. The revision resulted in an addition
of 115 banks and nine branches.
-2
3
3
3
3
35
35
1
-1
-2
12
3
Provided at military and other Govt, establishments through arrangements made by the Treasury Dept.
NOTE.—Beginning with 1959, figures include all banks in Alaska and
Hawaii, but nonmember banks in territories and possesssions are excluded.
FEBRUARY 1974 • FEDERAL RESERVE PAR LIST
A 99
NUMBER OF PAR AND NONPAR BANKING OFFICES
Par
Nonpar
(nonmember)
Total
Nonmember
Member
Total
F.R. district,
State, or other area
Banks
Branches
and offices
Banks
Branches
and offices
Banks
Branches
and offices
Banks
Total, including other areas:
Dec. 31, 1972
Dec. 31, 1973
13,822
14,062
24,850
26,687
13,643
13,915
24,733
26,594
5,705
5,737
18,001
19,015
7,938
8,178
6,732
7,579
179
147
F.R. districts, Dec. 31, 1973
Boston
New York i
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
383
480
421
769
761
1,831
2,644
1,409
1,386
2,140
1,416
422
1,883
4,121
1,935
2,323
3,808
2,078
2,763
1,182
337
460
314
5,483
383
480
421
769
753
1,787
2,644
1,360
1,386
2,140
1,370
422
1,883
4,121
1,935
2,323
3,807
2,017
2,763
1,167
337
460
298
5,483
212
333
281
456
379
607
936
431
501
816
642
143
1,207
3,596
1,305
1,881
2,376
1,238
1,783
587
174
261
148
4,459
171
147
140
313
374
1,180
1,708
929
885
1,324
728
279
676
525
630
442
1,431
779
980
580
163
199
150
1,024
44
287
10
15
255
174
255
68
18
15
640
369
73
405
227
3,393
42
518
118
117
67
287
10
15
206
174
255
68
18
15
640
369
73
405
212
3,393
42
518
118
117
67
111
5
4
83
65
143
26
5
13
284
264
65
280
133
2,951
24
316
4
108
12
176
5
11
123
109
112
42
13
2
356
105
8
125
79
442
18
202
114
9
55
436
8
24
1,167
409
668
612
342
245
44
558
147
179
175
777
369
89
424
490
260
436
8
24
1,167
409
668
612
342
167
44
558
147
179
175
777
369
89
424
413
260
72
2
10
491
178
148
196
91
61
23
359
10
154
103
470
109
49
247
254
151
364
6
14
676
231
520
416
251
106
21
199
137
25
72
307
260
40
177
159
109
Maryland
Massachusetts...
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire.
112
153
339
739
181
683
149
444
8
80
643
852
1,400
24
449
203
12
56
96
89
112
153
339
739
181
683
149
444
8
80
643
852
1,400
24
449
203
12
56
96
89
46
92
206
226
48
171
98
131
5
50
387
632
1,136
13
201
73
9
34
83
75
66
61
133
513
133
512
51
313
3
30
256
220
264
11
248
130
3
22
13
14
New J e r s e y . . . .
New Mexico
New York
North Carolina.
North Dakota..
Ohio
Oklahoma
Oregon
Pennsylvania.. .
Rhode Island. . ,
221
73
299
89
169
498
448
46
419
16
1,251
177
2,881
1,445
74
1,525
91
400
2,059
207
221
73
299
89
169
498
448
46
419
16
1,251
177
2,881
1,445
74
1,525
91
400
2,059
207
154
41
230
28
47
329
209
8
280
5
1,069
109
2,705
727
16
1,277
58
281
1,472
114
67
32
69
61
122
169
239
38
139
11
182
68
i 176
718
58
248
33
119
587
93
91
159
320
1,265
53
38
271
87
210
616
71
548
108
658
108
171
109
1,045
638
15
309
2
83
159
320
1,253
53
38
271
87
210
616
71
547
108
658
108
171
109
1,045
638
15
309
2
24
60
82
590
16
22
157
29
124
161
55
356
76
373
29
123
43
793
530
5
97
1
59
99
238
663
37
16
114
58
86
455
16
191
' 32
285
79
48
66
252
108
10
212
1
1
14
8
1
7
207
30
j
14
8
1
7
207
30
1
1
7
19
29
1
13
7
188
1
State or area, Dec. 31, 1973:
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
District of Columbia
Florida
Georgia. ..
Hawaii. . . .
Idaho
Illinois
Indiana. . .
Iowa
Kansas.. ..
Kentucky.,
Louisiana.
Maine
South Carolina.
South Dakota..
Tennessee
Texas
Utah
Vermont
Virginia
Washington....
West Virginia. .
Wisconsin
Wyoming
Other areas:
American Samoa 2 .
Guam 2
Pureto Rico 3
Virgin Islands 3 . . . .
1
Includes 18 New York City branches of three insured nonmember
Puerto Rican banks.
2
American Samoa and Guam assigned to the San Francisco District
for check clearing and collection purposes. All member branches in
Guam are branches of California and New York Banks.
3
Puerto Rico and the Virgin Islands assigned to the New York District
for purposes of Regulation J, "Check Clearing and Collection." Member
branches in Puerto Rico and all except eight in the Virgin Islands are
branches of banks located in California, New York and Pennsylvania.
Certain branches of Canadian banks (two in Puerto Rico and five in Vir-
Branches
and offices
Banks
Branches
and offices
117
93
15
16
49
15
77
12
1
gin Islands) are included above in the table as nonmember banks; and
nonmember branches in Puerto Rico include eight branches of Canadian
banks.
NOTE.—Includes all commercial banking offices in the United States ;
Puerto Rico, and the Virgin Islands on which checks are drawn, including
203 banking facilities. Number of banks and branches differs from that
in the table on page A-98 of the Feb. 1974 BULLETIN, because this table
includes banks in Puerto Rico and the Virgin Islands but excludes banks
and trust companies on which no checks are drawn.
BOARD OF GOVERNORS
ARTHUR F. BURNS,
GEORGE W .
Chairman
J. DEWEY DAANE
JEFFREY M .
BUCHER
OFFICE OF MANAGING DIRECTOR FOR
OPERATIONS AND SUPERVISION
D A V I D C . M E L N I C O F F , Managing
Director
D A N I E L M . D O Y L E , Deputy
Managing
Director
Assistant
Director
Director for
Planning
L A Y T O N , Director of Equal
GORDON B . GRIMWOOD,
and Program
Contingency
WILLIAM W .
for Banking
Program
Structure
* R O B E R T S O L O M O N , Adviser to the Board
R O B E R T L . C A R D O N , Assistant
to the Board
JOSEPH R . C O Y N E , Assistant
to the Board
J O H N J . H A R T , Special Assistant to the Board
F R A N K O ' B R I E N , J R . , Special Assistant to the
Special Assistant
to the
LEGAL DIVISION
RONALD G . BURKE,
Director
E . MAURICE MCWHIRTER,
Associate
Director
W A L T E R A . A L T H A U S E N , Assistant
Director
H A R R Y A . G U I N T E R , Assistant
Director
J A M E S R . K U D L I N S K I , Assistant
Director
P . D . R I N G , Assistant
Director
THOMAS O ' C O N N E L L ,
J O H N N I C O L L , Deputy
ROBERT S . PLOTKIN,
General
General
Assistant
Counsel
Counsel
General
Assistant
General
Counsel
BALDWIN B . TUTTLE,
Counsel
Special
Assistant
Counsel
GARWOOD,
Adviser
ANDREW F . OEHMANN,
to the General
GRIFFITH L .
Chairman
SHEEHAN
ROBERT C .
HOLLAND
J . C H A R L E S P A R T E E , Managing
Director
S T E P H E N H . A X I L R O D , Adviser to the Board
S A M U E L B . C H A S E , J R . , Adviser to the Board
A R T H U R L . B R O I D A , Assistant
to the Board
M U R R A Y A L T M A N N , Special Assistant to the
Board
Board
JOHN S. RIPPEY,
Director
DIVISION OF FEDERAL RESERVE BANK
OPERATIONS
Vice
JOHN E .
OFFICE OF MANAGING DIRECTOR FOR
RESEARCH AND ECONOMIC POLICY
OFFICE OF BOARD MEMBERS
Board
Employment
BRENTON C . LEAVITT,
MITCHELL,
A N D R E W F . BRIMMER
DIVISION OF RESEARCH AND STATISTICS
J. CHARLES PARTEE,
Director
L Y L E E . G R A M L E Y , Deputy
Director
JAMES L . P I E R C E , Associate
Director
PETER M . K E I R ,
Adviser
STANLEY J. SIGEL,
Adviser
MURRAY S. WERNICK,
Adviser
KENNETH B . WILLIAMS,
Adviser
JAMES B . E C K E R T , Associate
Adviser
E D W A R D C . E T T I N , Associate
Adviser
R O B E R T J . L A W R E N C E , Associate
Adviser
E L E A N O R J . S T O C K W E L L , Associate
Adviser
JOSEPH S . Z E I S E L , Associate
Adviser
JAMES L . K I C H L I N E , Assistant
Adviser
S T E P H E N P . T A Y L O R , Assistant
Adviser
T H O M A S D . T H O M S O N , Assistant
Adviser
L O U I S W E I N E R , Assistant
Adviser
H E L M U T F . W E N D E L , Assistant
Adviser
L E V O N H . G A R A B E D I A N , Assistant
Director
DIVISION OF DATA PROCESSING
OFFICE OF THE SECRETARY
DIVISION OF INTERNATIONAL FINANCE
C H A R L E S L . H A M P T O N , Associate
Director
G L E N N L . C U M M I N S , Assistant
Director
H E N R Y W . M E E T Z E , Assistant
Director
W A R R E N N . M I N A M I , Assistant
Director
R I C H A R D S . W A T T , Assistant
Director
CHESTER B . FELDBERG, Secretary
THEODORE E . A L L I S O N , Assistant
Secretary
NORMAND R . V . B E R N A R D ,
Assistant
R A L P H C . B R Y A N T , Director
J O H N E . R E Y N O L D S , Associate
Director
ROBERT F . G E M M I L L , Adviser
R E E D J . IRVINE, Adviser
SAMUEL I . K A T Z , Adviser
B E R N A R D N O R W O O D , Adviser
SAMUEL P I Z E R , Adviser
G E O R G E B . H E N R Y , Associate
Adviser
H E L E N B . J U N Z , Associate
Adviser
NORM AN S . F I E L E K E , Assistant
Adviser
Secretary
E L I Z A B E T H L . CARMICHAEL,
Assistant
Secretary
DIVISION OF PERSONNEL
KEITH D . ENGSTROM,
Director
C H A R L E S W . W O O D , Assistant
Director
OFFICE OF THE CONTROLLER
JOHN KAKALEC,
Controller
J O H N M . D E N K L E R , Assistant
Controller
DIVISION OF ADMINISTRATIVE SERVICES
W A L T E R W . K R E I M A N N , Director
D O N A L D E . A N D E R S O N , Assistant
Director
J O H N D . S M I T H , Assistant
Director
DIVISION OF SUPERVISION
AND REGULATION
FREDERIC S O L O M O N , Director
B R E N T O N C . L E A V I T T , Deputy
Director
FREDERICK R . D A H L , Assistant
Director
JACK M . E G E R T S O N , Assistant
Director
JANET O . H A R T , Assistant
Director
Director
J O H N N . L Y O N , Assistant
J O H N T . M C C L I N T O C K , Assistant
Director
THOMAS A . S I D M A N , Assistant
Director
W I L L I A M W . W I L E S , Assistant
Director
* O n l e a v e of a b s e n c e .
t
fOn loan from the Federal Reserve Bank of Boston.
A 102
FEDERAL OPEN MARKET COMMITTEE
ARTHUR F . BURNS, Chairman
ALFRED HAYES, Vice
Chairman
JOHN J . BALLES
J. DEWEY DAANE
GEORGE W .
A N D R E W F . BRIMMER
D A R R Y L R . FRANCIS
FRANK E .
JEFFREY M .
ROBERT C . HOLLAND
JOHN E .
BUCHER
ROBERT P.
MORRIS
SHEEHAN
MAYO
Economist
Finance)
L E O N ALL C . A N D E R S E N , Associate
Economist
R A L P H C . B R Y A N T , Associate
Economist
R O B E R T W . E I S E N M E N G E R , Associate
Economist
G E O R G E G A R V Y , Associate
Economist
L Y L E E . G R A M L E Y , Associate
Economist
J O H N E . R E Y N O L D S , Associate
Economist
Economist
K A R L A . S C H E L D , Associate
K E N T O . S I M S , Associate
Economist
Secretary
Assistant
Secretary
BERNARD,
Assistant
ARTHUR L . BROIDA,
*ROBERT SOLOMON,
MURRAY ALTMANN,
(International
NORMAND R . V .
MITCHELL
Secretary
General Counsel
Deputy General Counsel
J O H N N I C O L L , Assistant General
Counsel
J . C H A R L E S P A R T E E , Senior
Economist
STEPHEN H . AXILROD,
Economist
(Domestic
Finance)
THOMAS J. O ' C O N N E L L ,
EDWARD G . G U Y ,
Manager, System Open Market
Account
Special Manager, System Open Market
Account
Deputy Manager, System Open Market
Account
ALAN R . HOLMES,
CHARLES A . COOMBS,
PETER D . STERNLIGHT,
FEDERAL ADVISORY COUNCIL
T H O M A S I . STORRS, FIFTH FEDERAL RESERVE DISTRICT,
JAMES F . E N G L I S H , J R . , FIRST FEDERAL RESERVE DISTRICT,
G A B R I E L H A U G E , SECOND FEDERAL
President
RESERVE DISTRICT
JAMES F . B O D I N E , THIRD FEDERAL
G E O R G E H . D I X O N , N I N T H FEDERAL
RESERVE DISTRICT
RESERVE DISTRICT
E U G E N E H . A D A M S , T E N T H FEDERAL
C L A I R E . F U L T Z , FOURTH FEDERAL
RESERVE DISTRICT
RESERVE DISTRICT
L A W R E N C E A . M E R R I G A N , SIXTH FEDERAL
RESERVE DISTRICT
L E W I S H . B O N D , E L E V E N T H FEDERAL
RESERVE DISTRICT
A L L E N P . S T U L T S , SEVENTH FEDERAL
H A R O L D A . R O G E R S , T W E L F T H FEDERAL
RESERVE DISTRICT
RESERVE DISTRICT
Secretary
Assistant
Secretary
HERBERT V . PROCHNOW,
WILLIAM J . KORSVIK,
Vice
D O N A L D E . L A S A T E R , EIGHTH FEDERAL
RESERVE DISTRICT
*On leave of absence.
President
A 103
FEDERAL RESERVE BANKS AND BRANCHES
Federal Reserve Bank,
branch, or facility
Zip code
Chairman
Deputy Chairman
President
First Vice President
Boston
02106
James S. Duesenberry
Louis W. Cabot
Frank E. Morris
James A. Mcintosh
New York
10045
Roswell L. Gilpatric
Frank R. Milliken
Norman F. Beach
Alfred Hayes
Richard A. Debs
A. A. Maclnnes, Jr.
Buffalo
14240
Philadelphia
19101
John R. Coleman
Edward J. Dwyer
David P. Eastburn
Mark H. Willes
44101
Horace A. Shepard
Robert E. Kirby
Graham E. Marx
Douglas Grymes
Willis J. Winn
Walter H. MacDonald
Robert W. Lawson, Jr.
E. Craig Wall
James G. Harlow
Charles W. DeBell
Robert P. Black
H. G. Pattillo
Clifford M. Kirtland, Jr.
William C. Bauer
Gert H. W. Schmidt
Edward J. Boling
Edwin J. Caplan
Monroe Kimbrel
Kyle K. Fossum
William H. Franklin
Peter B. Clark
W.M. Defoe
Robert P. Mayo
Ernest T. Baughman
Frederic M. Peirce
Sam Cooper
W.M. Pierce
James C. Hendershot
C. Whitney Brown
Darryl R. Francis
Eugene A. Leonard
Bruce B. Dayton
James P. McFarland
William A. Cordingley
Bruce K. MacLaury
M. H. Strothman, Jr.
Robert W. Wagstaff
Robert T. Person
Maurice B. Mitchell
Joseph H. Williams
Durward B. Varner
George H. Clay
John T. Boy sen
John Lawrence
Charles T. Beaird
Gage Holland
T.J. Barlow
Marshall Boykin, III
Philip E. Coldwell
T. W. Plant
O. Meredith Wilson
Joseph F. Alibrandi
Joseph R. Vaughan
John R. Howard
Sam H. Bennion
C. Henry Bacon, Jr.
John J. Bailies
John B. Williams
Cleveland
Cincinnati
Pittsburgh
Richmond
45201
15230
23261
Baltimore
21203
Charlotte
28201
Culpeper Communications
Center
22701
Atlanta
Birmingham
Jacksonville
Nashville
New Orleans
Miami Office
Chicago
30303
35202
32203
37203
70161
33152
60690
Detroit
48231
St. Louis
63166
Little Rock
Louisville
Memphis
72203
40201
38101
Minneapolis
55480
Helena
59601
Kansas City
64198
Denver
Oklahoma City
Omaha
Dallas
80217
73125
68102
75222
El Paso
Houston
San Antonio
79999
77001
78295
San Francisco
94120
Los Angeles
Portland
Salt Lake City
Seattle
90051
97208
84110
98124
Vice President
in charge of branch
Fred O. Kiel
Robert D. Duggan
Jimmie R. Monhollon
J. Gordon Dickerson, Jr.
Hiram J. Honea^
Edward C. Rainey
Jeffrey J. Wells
George C. Guynn
W. M. Davis
William C. Conrad
John F. Breen
Donald L. Henry
L. Terry Britt
Howard L. Knous
George C. Rankin
William G. Evans
Robert D. Hamilton
Frederic W. Reed
James L. Cauthen
Carl H. Moore
Gerald R. Kelly
William M. Brown
A. Grant Holman
Paul W. Cavan
A 104
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.)
ANNUAL REPORT
FEDERAL RESERVE BULLETIN. Monthly. $6.00 per
year or $.60 each in the United States and its
possessions, Bolivia, Canada, Chile, Colombia,
Costa Rica, Cuba, Dominican Republic, Ecuador,
Guatemala, Haiti, Republic of Honduras, Mexico,
Nicaragua, Panama, Paraguay, Peru, El Salvador,
Uruguay, and Venezuela; 10 or more of same issue
to one address, $5.00 per year or $.50 each. Elsewhere, $7.00 per year or $.70 each.
FEDERAL RESERVE CHART BOOK ON FINANCIAL
AND BUSINESS STATISTICS. Monthly. Subscription includes one issue of Historical Chart Book.
$6.00 per year or $.60 each in the United States
and the countries listed above; 10 or more of same
issue to one address, $.50 each. Elsewhere, $7.00
per year or $.70 each.
HISTORICAL CHART BOOK. Issued annually in Sept.
Subscription to monthly chart book includes one
issue. $.60 each in the United States and countries
listed above; 10 or more to one address, $.50 each.
Elsewhere, $.70 each.
THE FEDERAL RESERVE ACT, as amended through
December 1971, with an appendix containing provisions of certain other statutes affecting the Federal
Reserve System. 252 pp. $1.25.
REGULATIONS OF THE BOARD OF GOVERNORS OF
THE FEDERAL RESERVE SYSTEM.
PUBLISHED INTERPRETATIONS OF THE BOARD OF
GOVERNORS, as of June 30, 1973. $2.50.
DEBITS AND CLEARING STATISTICS AND THEIR USE.
1959. 144 pp. $1.00 each; 10 or more to one
address, $.85 each.
SUPPLEMENT TO BANKING AND MONETARY STATISTICS. Sec. 1. Banks and the Monetary System.
1962. 35 pp. $.35. Sec. 2. Member Banks. 1967.
59 pp. $.50. Sec. 5. Bank Debits. 1966. 36 pp.
$.35. Sec. 6. Bank Income. 1966. 29 pp. $.35.
Sec. 9. Federal Reserve Banks. 1965. 36 pp. $.35.
Sec. 10. Member Bank Reserves and Related Items.
1962. 64 pp. $.50. Sec. 11. Currency. 1963. 11
pp. $.35. Sec. 12. Money Rates and Securities
Markets. 1966. 182 pp. $.65. Sec. 14. Gold. 1962.
24 pp. $.35. Sec. 15. International Finance. 1962.
92 pp. $.65. Sec. 16 (New). Consumer Credit.
1965. 103 pp. $.65.
INDUSTRIAL PRODUCTION—1971 edition. 383 pp.
$4.00 each; 10 or more to one address, $ 3 . 5 0 each.
BANK MERGERS & THE REGULATORY AGENCIES:
APPLICATION OF THE BANK MERGER ACT OF
1960. 1964. 260 pp. $1.00 each; 10 or more to
one address, $.85 each.
THE PERFORMANCE OF BANK HOLDING COMPA-
NIES. 1967. 29 pp. $.25 each; 10 or more to one
address, $.20 each.
THE FEDERAL FUNDS MARKET. 1959. I l l pp. $1.00
each; 10 or more to one address, $.85 each.
TRADING IN FEDERAL FUNDS. 1965. 116 pp. $1.00
each; 10 or more to one address, $.85 each.
U.S. T R E A S U R Y ADVANCE REFUNDING, J U N E
1960-JULY 1964. 1966. 65 pp. $.50 each; 10 or
more to one address, $.40 each.
BANK CREDIT-CARD AND CHECK-CREDIT PLANS.
1968. 102 pp. $1.00 each; 10 or more to one
address, $.85 each.
INTEREST RATE EXPECTATIONS: TESTS ON YIELD
SPREADS AMONG SHORT-TERM GOVERNMENT
SECURITIES. 1968. 83 pp. $.50 each; 10 or more
to one address, $.40 each.
SURVEY OF FINANCIAL CHARACTERISTICS OF
CONSUMERS. 1966. 166 pp. $1.00 each; 10 or
more to one address, $.85 each.
SURVEY OF CHANGES IN FAMILY FINANCES. 1968.
321 pp. $1.00 each; 10 or more to one address,
$.85 each.
REPORT OF THE JOINT TREASURY-FEDERAL RESERVE STUDY 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 G O V E R N M E N T S E C U R I T I E S MARKET:
STAFF STUDIES—PART 1. 1970. 86 pp. $.50 each;
10 or more to one address, $.40 each. P A R T 2.
1971. 153 pp. and P A R T 3, 1973. 131 pp. Each
volume $1.00; 10 or more to one address, $.85
each.
OPEN MARKET POLICIES AND OPERATING PROCEDURES—STAFF STUDIES. 1971. 218 pp. $2.00;
10 or more to one address, $1.75 each.
REAPPRAISAL OF THE FEDERAL RESERVE DISCOUNT MECHANISM, Vol. 1. 1971. 276 pp. Vol.
2. 1971. 173 pp. Vol. 3. 1972. 220 pp. Each
volume $3.00 each; 10 or more to one address,
$2.50 each.
THE ECONOMETRICS OF PRICE DETERMINATION
CONFERENCE, October 30-31, 1970, Washington,
D . C . Oct. 1972, 397 pp. Cloth ed. $5.00 each;
10 or more to one address, $4.50 each. Paper ed.
$ 4 . 0 0 each; 10 or more to one address, $3.60 each.
FEDERAL RESERVE STAFF STUDY: WAYS TO MODERATE FLUCTUATIONS IN HOUSING C O N STRUCTION, Dec. 1972, 487 pp. $4.00 each; 10
or more to one address, $3.60 each.
LENDING FUNCTIONS OF THE FEDERAL RESERVE
BANKS: A HISTORY, by Howard H. Hackley. 1973.
271 pp. $3.50 each; 10 or more to one address,
$3.00 each.
A 105
FEDERAL RESERVE BOARD PUBLICATIONS
FEDERAL FISCAL POLICY IN THE 1960's. 9/68.
STAFF ECONOMIC STUDIES
Studies and papers on economic and financial subjects
that are of general interest in the field of economic
research.
Summaries only printed in the BULLETIN
(Limited supply of mimeographed copies of full
text available upon request for single copies)
EXAMINATION OF THE MONEY STOCK CONTROL
APPROACH OF BURGER, KALISH, AND BABB, by
Fred J. Levin. March 1973. 18 pp.
OBTAINING THE YIELD ON A STANDARD BOND FROM
A SAMPLE OF BONDS WITH HETEROGENEOUS
CHARACTERISTICS, by James L. Kichline, P. Michael Laub, and Guy V. G. Stevens. May 1973.
30 pp.
THE DETERMINANTS OF A DIRECT INVESTMENT
OUTFLOW WITH EMPHASIS ON THE SUPPLY OF
FUNDS, by Frederic Brill Ruckdeschel. June 1973.
171 pp.
MORTGAGE COMMITMENTS ON INCOME PROPERTIES: A NEW SERIES FOR 15 LIFE INSURANCE
COMPANIES, 1951-70, by Robert Moore Fisher and
'Barbara Negri Opper. Aug. 1973. 83 pp.
Printed in full in the BULLETIN
(Staff Economic Studies shown in list below.
Except for Staff Papers, Staff Economic Studies, and
some leading articles, most of the articles reprinted do
not exceed 12 pages.)
REPRINTS
ADJUSTMENT FOR SEASONAL VARIATION. 6/41.
SEASONAL FACTORS AFFECTING BANK RESERVES.
2/58.
LIQUIDITY AND PUBLIC POLICY, Staff Paper by Stephen H. Axilrod. 10/61.
SEASONALLY ADJUSTED SERIES FOR BANK CREDIT.
7/62.
INTEREST RATES AND MONETARY POLICY, Staff
Paper by Stephen H. Axilrod. 9/62.
MEASURES OF MEMBER BANK RESERVES.
7/63.
REVISION OF BANK DEBITS AND DEPOSIT TURNOVER SERIES. 3/65.
RESEARCH ON BANKING STRUCTURE AND PERFORMANCE, Staff E c o n o m i c Study by Tynan
Smith. 4/66.
A REVISED INDEX OF MANUFACTURING CAPACITY,
Staff Economic Study by Frank de Leeuw with
Frank E. Hopkins and Michael D. Sherman. 11/66.
REVISED SERIES ON COMMERCIAL AND INDUSTRIAL LOANS BY INDUSTRY. 2/67.
THE PUBLIC INFORMATION ACT—ITS EFFECT ON
MEMBER BANKS. 7/67.
INTEREST COST EFFECTS OF COMMERCIAL BANK
UNDERWRITING OF MUNICIPAL REVENUE
BONDS. 8/67.
U.S. INTERNATIONAL TRANSACTIONS: TRENDS IN
1960-67. 4/68.
BUSINESS FINANCING BY BUSINESS FINANCE COMPANIES. 10/68.
HOUSING PRODUCTION AND FINANCE. 3/69.
THE CHANNELS OF MONETARY POLICY, Staff Economic Study by Frank de Leeuw and Edward
Gramlich. 6/69.
REVISION OF WEEKLY SERIES FOR COMMERCIAL
BANKS. 8/69.
EURO-DOLLARS: A CHANGING MARKET. 10/69.
RECENT CHANGES IN STRUCTURE OF COMMERCIAL BANKING. 3/70.
SDR's IN FEDERAL RESERVE OPERATIONS AND
STATISTICS. 5/70.
MEASURES OF SECURITY CREDIT. 12/70.
MONETARY AGGREGATES AND MONEY MARKET
CONDITIONS IN OPEN MARKET POLICY. 2/71.
BANK FINANCING OF MOBILE HOMES. 3/71.
INTEREST RATES, CREDIT FLOWS, AND MONETARY
AGGREGATES SINCE 1964. 6/71.
TWO KEY ISSUES OF MONETARY POLICY. 6/71.
SURVEY OF DEMAND DEPOSIT OWNERSHIP. 6/71.
BANK RATES ON BUSINESS LOANS—REVISED
SERIES. 6/71.
INDUSTRIAL PRODUCTION—REVISED AND NEW
MEASURES. 7/71.
REVISED MEASURES OF MANUFACTURING CAPACITY UTILIZATION. 10/71.
REVISION OF BANK CREDIT SERIES. 12/71.
PLANNED AND ACTUAL LONG-TERM BORROWING
BY STATE & LOCAL GOVERNMENTS. 12/71.
ASSETS AND LIABILITIES OF FOREIGN BRANCHES
OF U.S. BANKS. 2/72.
WAYS TO MODERATE FLUCTUATIONS IN THE CONSTRUCTION OF HOUSING. 3/72.
CONSTRUCTION LOANS AT COMMERCIAL BANKS.
6/72.
SOME ESSENTIALS OF INTERNATIONAL MONETARY
REFORM. 6/72.
CHARACTERISTICS OF FEDERAL RESERVE BANK
DIRECTORS. 6/72.
BANK DEBITS, DEPOSITS, AND DEPOSIT TURNOVER—REVISED SERIES. 7/72.
RECENT REGULATORY CHANGES IN RESERVE REQUIREMENTS AND CHECK COLLECTION. 7/72.
YIELDS ON NEWLY ISSUED CORPORATE BONDS.
9/72.
RECENT ACTIVITIES OF FOREIGN BRANCHES OF
U.S. BANKS. 10/72.
REVISION OF CONSUMER CREDIT STATISTICS.
10/72.
SURVEY OF FINANCE COMPANIES, 1970. 11/72.
ONE-BANK HOLDING COMPANIES BEFORE THE 1970
AMENDMENTS. 12/72.
EVOLUTION OF THE PAYMENTS MECHANISM. 12/72.
REVISION OF THE MONEY STOCK MEASURES AND
MEMBER BANK RESERVES AND DEPOSITS. 2/73.
DEVELOPMENTS IN U.S. BALANCE OF PAYMENTS.
4/73.
A 106
STATE AND LOCAL BORROWING ANTICIPATIONS
AND REALIZATIONS. 4/73.
YIELDS ON RECENTLY OFFERED CORPORATE
BONDS. 5/73.
FEDERAL FISCAL POLICY, 1965-72. 6/73.
SOME PROBLEMS OF CENTRAL BANKING. 6/73.
OPEN MARKET OPERATIONS IN 1972. 6/73.
CHANGES IN BANK LENDING PRACTICES, 1972. 7/73.
BANKING AND MONETARY STATISTICS, 1972. Selected series of banking and monetary statistics for
1972 only. 3/73 and 7/73.
CAPACITY UTILIZATION IN MAJOR MATERIALS INDUSTRIES. 8/73.
TREASURY AND FEDERAL RESERVE FOREIGN EXCHANGE OPERATIONS. 9/73.
CREDIT-CARD AND CHECK-CREDIT PLANS AT COMMERCIAL BANKS. 9/73.
FEDERAL RESERVE BULLETIN • FEBRUARY 1974
RATES ON CONSUMER INSTALMENT LOANS. 9/73.
BALANCE OF PAYMENTS ADJUSTMENT SINCE 1971.
10/73.
CHANGES IN TIME AND SAVINGS DEPOSITS, APRILJULY 1973. 10/73.
NEW SERIES FOR LARGE MANUFACTURING CORPORATIONS. 10/73.
MONEY SUPPLY IN THE CONDUCT OF MONETARY
POLICY. 11/73.
U.S. ENERGY SUPPLIES AND USES. 12/73.
TREASURY AND FEDERAL RESERVE FOREIGN EXCHANGE OPERATIONS, INTERIM REPORT. 12/73.
FINANCIAL D E V E L O P M E N T S IN THE FOURTH
QUARTER OF 1973. 2/74.
REVISION OF THE MONEY STOCK MEASURES
AND MEMBER BANK RESERVES AND DEPOSITS.
2/74.
INDEX TO STATISTICAL TABLES
(For list of tables published periodically, but not monthly, see page A-3)
Acceptances, bankers', 11, 31, 33
Agricultural loans of commercial banks, 22, 24
Arbitrage, 93
Assets and liabilities (See also Foreigners):
Banks, by classes, 18, 22, 23, 24, 37
Federal Reserve Banks, 12
Nonfinancial corporations, current, 48
Automobiles:
Consumer instalment credit, 54, 55, 56
Production index, 58, 59
Bank credit proxy, 17
Bankers' balances, 23, 26
(See also Foreigners, claims on, and liabilities to)
Banking offices:
Changes in number, 98
Par and nonpar offices, number, 99
Banks for cooperatives, 38
Bonds (See also U.S. Govt, securities):
New issues, 45, 46, 47
Yields and prices, 34, 35
Branch banks:
Assets, foreign branches of U.S. banks, 86
Liabilities, U.S. banks to foreign branches, 28, 87, 88
Brokerage balances, 85
Business expenditures on new plant and equipment, 48
Business indexes, 62
Business loans (See Commercial and industrial loans)
Capacity utilization, 62
Capital accounts:
Banks, by classes, 18, 23, 28
Federal Reserve Banks, 12, 13
Central banks, 92, 94
Certificates of deposit, 28
Coins, circulation, 15
Commercial and industrial loans:
Commercial banks, 17, 22, 31
Weekly reporting banks, 24, 29
Commercial banks:
Assets and liabilities, 17, 18, 22, 23, 24
Banking offices, changes in number, 98
Consumer loans held, by type, 55
Deposits at, for payment of personal loans, 30
Loans sold outright, 31
Number, by classes, 18
Real estate mortgages held, by type, 50
Commercial paper, 31, 33
Condition statements (See Assets and liabilities)
Construction, 62, 63
Consumer credit:
Instalment credit, 54, 55, 56, 57
Noninstalment credit, by holder, 55
Consumer price indexes, 62, 66
Consumption expenditures, 68, 69
Corporations:
Profits, taxes, and dividends, 48
Security issues, 46, 47
Security yields and prices, 34, 35
Cost of living (See Consumer price indexes)
Currency and coin, 5, 9, 23
Currency in circulation, 5, 15, 16
Customer credit, stock market, 36
Debits to deposit accounts, 14
Debt (See specific types of debt or securities)
Demand deposits:
Adjusted, commercial banks, 14, 17, 23
Banks, by classes, 18, 23, 27
Ownership by individuals, partnerships, and
corporations, 30
Subject to reserve requirements, 17
Turnover, 14
Deposits (See also specific types of deposits):
Accumulated at commercial banks for payment of
personal loans, 30
Banks, by classes, 18, 23, 27, 37
Federal Reserve Banks, 12, 13, 88
Postal savings, 23
Subject to reserve requirements, 17
Discount rates (See Interest rates)
Discounts and advances by Reserve Banks (See Loans)
Dividends, corporate, 48
Dollar assets, foreign, 75, 81
Earnings and expenses, Federal Reserve Banks, 96
Earnings and hours, manufacturing industries, 65
Employment, 62, 64, 65
Farm mortgage loans, 49, 50
Federal agency obligations, 11, 12, 13, 14
Federal finance:
Receipts and outlays, 40, 41
Treasury operating balance, 40
Federal funds, 7, 22, 24, 28, 33
Federal home loan banks, 38, 39, 51
Federal Home Loan Mortgage Corporation, 53
Federal Housing Administration, 49, 50, 51, 52, 53
Federal intermediate credit banks, 38, 39
Federal land banks, 38, 39
Federal National Mortgage Assn., 38, 39, 52
Federal Reserve Banks:
Condition statement, 12
Earnings, expenses, and dividends, 96
U.S. Govt, securities held, 4, 12, 14, 42, 43
Federal Reserve credit, 4, 6, 12, 14
Federal Reserve notes, 12, 13, 15, 96
Federally sponsored credit agencies, 38, 39
Finance companies:
Loans, 24, 54, 55, 57
Paper, 31, 33
Financial institutions, loans to, 22, 24
Float, 4
Flow of funds, 70
Foreign:
Currency operations, 11, 12, 13, 75, 81
Deposits in U.S. banks, 5, 12, 13, 23, 27, 88
Exchange rates, 91
Trade, 73
Foreigners:
Claims on, 82, 83, 88, 89, 90
Liabilities to, 28, 76, 77, 79, 80, 81, 88, 89, 90
Gold:
Certificates, 12, 13, 15
Earmarked, 88
Net purchases by United States, 74
Production, 95
Reserves of central banks and govts., 94
Stock, 4, 75
Government National Mortgage Assn., 52
Gross national product, 68, 69
A 108
Hours and-earnings, manufacturing industries, 65
Housing permits, 62
Housing starts, 63
Income, national and personal, 68, 69
Industrial production index, 58-61, 62
Instalment loans, 54, 55, 56, 57
Insurance companies, 37, 42, 43, 50, 51
Insured commercial banks, 20, 22, 30, 98
Interbank deposits, 18, 23
Interest rates:
Business loans by banks, 32
Federal Reserve Banks, 8
Foreign countries, 92, 93
Money market rates, 33
Mortgage yields, 51, 52, 53
Prime rate, commercial banks, 32
Time and savings deposits, maximum rates, 10
Yields, bond and stock, 34
International capital transactions of U.S., 76-90
International institutions, 74, 75, 92, 94
Inventories, 68
Investment companies, issues and assets, 47
Investments (See also specific types of investments):
Banks, by classes, 18, 22, 25, 26, 37
Commercial banks, 17
Federal Reserve Banks, 12, 14
Life insurance companies, 37
Savings and loan assns., 38
Labor force, 64
Life insurance companies (See Insurance companies)
Loans (See also specific types of loans):
Banks, by classes, 18, 22, 24, 37
Commercial banks, 17, 18, 22, 24, 29, 31, 32
Federal Reserve Banks, 4, 6, 8, 12, 13, 14
Insurance companies, 37, 50, 51
Insured or guaranteed by U.S., 49, 50, 51, 52, 53
Savings and loan assns., 38, 51
Manufacturers:
Capacity utilization, 62
Production index, 59, 62
Margin requirements, 10
Member banks:
Assets and liabilities, by classes, 18, 22
Banking offices, changes in number, 98
Borrowings at Federal Reserve Banks, 6, 12
Number, by classes, 18
Reserve position, basic, 7
Reserve requirements, 9
Reserves and related items, 4, 6, 17
Mining, production index, 59, 61
Mobile home shipments, 63
Money market rates (See Interest rates)
Money stock and related data, 16
Mortgages (See Real estate loans and Residential mortgage
loans)
Mutual funds (See Investment companies)
Mutual savings banks, 27, 37, 42, 43, 50, 98
National banks, 20, 30, 98
National defense expenditures, 41, 68
National income, 68, 69
Nonmember banks, 20, 22, 23, 30, 98
Open market transactions, 11
Par and nonpar banking offices, number, 99
Payrolls, manufacturing index, 62
Personal income, 69
Postal savings, 23
Prices:
Consumer and wholesale commodity, 62, 66
Security, 35
Prime rate, commercial banks, 32
FEDERAL RESERVE BULLETIN • FEBRUARY 1974
Production, 58-61, 62
Profits, corporate, 48
Real estate loans:
Banks, by classes, 22, 25, 37, 50
Delinquency rates on home mortgages, 53
Mortgage yields, 35, 51, 52, 53
Type of holder and property mortgaged, 49-53
Reserve position, basic, member banks, 7
Reserve requirements, member banks, 9
Reserves:
Central banks and govts., 94
Commercial banks, 23, 26, 28
Federal Reserve Banks, 12, 13
Member banks, 5, 6, 17, 23
U.S. reserve assets, 75
Residential mortgage loans. 35, 49, 50, 51, 52, 53
Retail credit, 54
Retail sales, 62
Saving:
Flow of funds series, 70
National income series, 68
Savings and loan assns., 38, 43, 51
Savings deposits (See Time deposits)
Savings institutions, principal assets, 37, 38
Securities (See also U.S. Govt, securities):
Federally sponsored agencies, 38, 39
International transactions, 84, 85
New issues, 45, 46, 47
Yields and prices, 34, 35
Silver coin, 15
Special Drawing Rights, 4, 12, 13, 72, 75
State and local govts.:
Deposits, 23, 27
Holdings of U.S. Govt, securities, 42, 43
New security issues, 45, 46
Ownership of securities of, 22, 26, 37
Yields and prices of securities, 34, 35
State member banks, 20, 30, 98
Stock market credit, 36
Stocks (See also Securities):
New issues, 46, 47
Yields and prices, 34, 35
Tax receipts, Federal, 41
Time deposits, 10, 17, 18, 23, 27
Treasury cash, Treasury currency, 4, 5, 15
Treasury deposits, 5, 12, 13, 40
Treasury operating balance, 40
Unemployment, 64
U.S. balance of payments, 72
U.S. Govt, balances:
Commercial bank holdings, 23, 27
Member bank holdings, 17
Treasury deposits at Reserve Banks, 5, 12, 13, 40
U.S. Govt, securities:
Bank holdings, 18, 22, 25, 37, 42, 43
Dealer transactions, positions, and financing, 44
Federal Reserve Bank holdings, 4, 12, 13, 14, 42, 43
Foreign and international holdings, 12, 81, 84, 88
International transactions, 81, 84
New issues, gross proceeds, 46
Open market transactions, 11
Outstanding, by type of security, 42, 43, 45
Ownership, 42, 43
Yields and prices, 34, 35
United States notes, 15
Utilities, production index, 59, 61
Veterans Administration, 49, 50, 51, 52, 53
Weekly reporting banks, 24
Yields (See Interest rates)
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