Full text of Federal Reserve Bulletin : February 1976

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FEBRUARY 1976

FEDERAL RESERVE

BULLETIN
The Economy in 1975
Revision of Money Stock Measures




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FEDERAL RESERVE BULLETIN
NUMBER 2 • VOLUME 62 • FEBRUARY 1976

CONTENTS
71 The Economy in 1975

A1

82 Revision of Money Stock Measures

A1 Contents
A2 U.S. Statistics
A58 International Statistics

88 Membership of the Board of Governors
of the Federal Reserve System

Financial and Business Statistics

A76 Board of Governors and Staff
90 Statements to Congress
A78 Open Market Committee and Staff ;
Federal Advisory Council

141 Record of Policy Actions
of the Federal Open Market Committee

A79 Federal Reserve Bapks and Branches

147 Law Department

A80 Federal Reserve Board Publications

169 Directory of

A82 Index to Statistical Tables

Federal Reserve Banks and Branches
185 Announcements
187 Industrial Production

A84 Map of Federal Reserve System
Inside Back Cover:
Guide to Tabular Presentation
Statistical Releases: Reference

PUBLICATIONS COMMITTEE
Lyle E. Gramley
Ralph C. Bryant

Joseph R. Coyne
Frederic Solomon

John M. Denkler
John D. Hawke, Jr.

James L. Kichline, Staff Director

The Federal Reserve B U L L E T I N is issued monthly under the direction of the staff publications committee. This
committee is responsible for opinions expressed except in official statements and signed articles. Direction for
the art work is provided by Mack R. Rowe. Editorial support is furnished by the Economic Editing Unit headed
by Elizabeth B. Sette.




The Economy in 1975
This article was prepared in the National Income Section of the Division of Research and
Statistics.
In early 1975 the U.S. economy began to recover from the longest and deepest recession
since World War II. By the end of the year
real gross national product had regained about
three-fourths of the recession loss. Although
unemployment had declined significantly from
its spring peak, the total unemployed at year-end
was still extremely large. The rate of inflation
had also been reduced substantially, but it remained high by historical standards and cost
pressures were continuing strong.
The expansion in economic activity from the
first-quarter trough to the year-end was about
equal to the average pace of previous postwar
recoveries. Moderating inflationary pressures,
easing credit conditions, and the fiscal stimulus
of the Tax Reduction Act of 1975 all contributed
to the upturn in consumer expenditures, which
led the recovery in real final purchases in the
spring and summer. Total final purchases, in
constant dollars, turned up in the second quarter
and continued to expand at an increasing pace
during the remainder of the year.
After a modest rise in real GNP in the second
quarter, when inventory liquidation was unusually deep, the rate of recovery in over-all
activity accelerated sharply in the third quarter
as business began to slow the run-off of stocks.
In the late fall economic growth paused briefly
as inventory investment stabilized and increases
in consumer spending moderated. But the year
ended with sizable gains in retail sales, employment, and industrial production.
The decline in real GNP from the last quarter
of 1973 to the first quarter of 1975 exceeded
the sharpest previous postwar downswing. Severe inflationary pressures, particularly those
associated with the run-up of oil prices, were




Change in GNP
Per cent

Dept. of Commerce data, seasonally adjusted annual rates.
Real is in terms of 1972 dollars.

a major factor in bringing on the recession, and
they contributed to its length and severity.
Businesses were slow to adjust output and employment during 1973, when shortages and
soaring prices masked the sluggishness of real
final demands and profits while encouraging
some speculation in inventories. Moreover, the
slowdown in early 1974 apparently was thought
to be just a temporary adjustment to the oil
embargo. Once-the underlying weaknesses were
perceived, however, cutbacks in output and
employment were made quickly.

PERSPECTIVE ON THE
RECESSION AND RECOVERY
In retrospect at least, signs of an incipient
downturn in economic activity were evident as
far back as 1973 when there was a marked
easing in real economic growth. In part, this
slowdown was the result of basic materials
shortages stemming mainly from the worldwide boom in economic activity. However, the
increasing share of capital spending devoted to
environmental requirements tended to retard ca-

72

Federal Reserve Bulletin • February 1976

GNP and final sales
Billions of 1972 dollars

1972

1

1973

*

1974

'

1975

Dept. of Commerce data, seasonally adjusted annual rates.

pacity growth in the basic materials industries,
and the distorting effects of price controls may
also have curtailed their output. However, retardation of growth in real activity in 1973 also
reflected the weakening of gains in real consumer spending as mounting inflation slowed the
growth in real disposable incomes. Gains in
consumer income were further undermined in
late 1973 by sharp cutbacks in output made by
auto producers and other manufacturers in response to declining sales and reduced availability of petroleum-based products following
the oil embargo in October 1973.
Real output dropped sharply in the first quarter of 1974 and continued to decline until the
second quarter of 1975. Real disposable income
also began declining in the first quarter of 1974,
and consumer confidence continued to falter. In
real terms, consumer spending recovered only
partially after the oil embargo ended and then
declined sharply again in the last quarter of
1974.
As 1974 progressed, the weakness of underlying demands began to be evident in other sectors
also. Housing activity had been falling throughout the previous year and after a brief pause
early in 1974, starts plummeted again; between
the first and fourth quarters of the year they fell
by almost 40 per cent as nominal interest rates



reached unprecedented heights, impeding savings flows to thrift institutions and increasing
the costs of homeownership. Nonresidential
fixed investment, in real terms, began to decline
in the second quarter of 1974 in response both
to slackening consumer demands and to a
growing awareness that inflation was distorting
calculations of profits.
However, business continued to build inventories through mid-1974, apparently still responding to the extreme shortages of the previous year as well as to rapidly rising prices.
Attempts were finally made to cut back inventories later in the year, but real final demand
dropped so sharply—the steepest decline since
World War II—that nonfarm inventories in
constant dollars were accumulated at a $9 billion
annual rate in the fourth quarter. Auto dealers,
in particular, were left with extremely large
stocks. Over all, real GNP declined at a 7.5
per cent annual rate in the fourth quarter, while
industrial production declined at a 12.5 per cent
annual rate and nonfarm employment was reduced by 450,000.
In the first quarter of 1975 the production and
employment adjustments gathered momentum
and real GNP declined even more rapidly—at
a 9.2 per cent annual rate—the largest drop in
the postwar period. Inventory liquidation at a
$19 billion annual rate—in 1972 dollars—accounted for almost all of the decline. Final
demand was down slightly, although real consumer outlays, especially for autos, increased
in response to widespread price concessions.
Net exports also showed improvement as imports fell drastically during this period of inventory liquidation.
The economy turned upward in the second
quarter, after a total decline in real GNP
amounting to 6.6 per cent, compared with an
average drop of 2.1 per cent in the five earlier
recessions. The largest previous postwar contraction had been 3.3 per cent in both the
1953-54 and 1957-58 contractions. Characteristically, the decline in industrial production—12.5 per cent from September 1974 to
April 1975—was much greater than in GNP.
Inventories were liquidated at a somewhat
greater rate in the second quarter, but final sales
turned up and real GNP rose at a 3.3 per cent

The Economy in 1975

annual rate. One of the most important elements
in this upturn was the growth in real disposable
income and the support it provided for consumer
outlays. These gains were made possible by a
marked slowing of inflation—from a 12 per cent
rate in the second half of 1974 to a 6.5 per
cent rate in the first half of 1975—and the fiscal
stimulus provided by the Tax Reduction Act of
1975, enacted in March. Several other factors
also contributed to the turnaround, including a
strong net export position and an upturn in
housing activity—the result of easing credit
conditions and improved flows of savings to
thrift institutions.
Economic growth accelerated sharply in the
spring and early summer, with the growth rate
of real GNP reaching a 12 per cent annual rate
in the third quarter. Although final sales improved from the second quarter, most of the
acceleration resulted from the precipitous slowing in the rate of inventory liquidation. Final
demands picked up somewhat further in the
fourth quarter, but over-all economic growth
eased to about a 5.5 per cent rate as the impact
of the swing from inventory liquidation toward
accumulation tapered off. Growth in real con-

73

sumer spending slowed, but business capital
spending turned up for the first time in this
recovery. And in the last month of the year there
were sizable advances in retail sales, employment, and industrial production.
By the fourth quarter of 1975 real GNP had
advanced 5 per cent above its first-quarter
low—about typical of past cyclical recoveries—
but it was still 2 per cent below its 1973 high
and industrial production remained 6 per cent
below its previous peak. Unemployment totaled
7.9 million persons or 8.5 per cent of the labor
force—higher than in any other postwar recession. Despite the substantial slack in the economy generally and in labor markets particularly,
wages and prices continued to rise at a vigorous
pace, only modestly below the rates early in
the year.
Despite signs that it may be some time before
business investment rebounds vigorously, there
are widespread indications in consumer markets
and elsewhere that the economy will continue
to advance at a fairly rapid pace in 1976. Price
increases will probably also be disconcertingly
large, reflecting continued upward pressures
from unit labor costs.

Production and employment
1967 = 100

J 9 6 7 = 100

Change, millions of persons

Industrial production, F.R. data. Employment and unemployment rate, Dept. of Labor data. All data seasonally adjusted.




74

Federal Reserve Bulletin • February 1976

INCOME AND CONSUMPTION
The consumption sector endured a far larger and
more prolonged adjustment in the recent recession than in previous declines, largely because
continued rapid inflation reduced real income
and the value of assets. Rising prices also had
an indirect, adverse effect on disposable income through the progressive income tax
structure. With nominal personal incomes rising
rapidly throughout 1974, many workers moved
into higher tax brackets despite the decline in
the real value of these incomes. Only a part
of the resultant sharp rise in tax receipts was
offset by the increase in transfer payments—
massive as that was. In total, real disposable
income declined by 4 per cent between the peak
in the fourth quarter of 1973 and the trough in
the first quarter of 1975.
Real disposable income increased sharply in
the second quarter of 1975 as a result of the
Tax Reduction Act of 1975 in conjunction with
a slowing of inflation and a continued increase
in the level of transfer payments. Real disposable income fell temporarily in the third quarter,
but then regained upward momentum.

Disposable income and saving
Net change, billions of dollars

mmmmmmmmmmm

Per cent

SAVING RATE

V-"

99H8HMMHHHI MMHH
1972

1973

HGH
1974

1975

Dept. of Commerce data, seasonally adjusted. Real is in
terms of 1972 dollars.




Auto sales
Millions of units

1972

1973

1974

1975

Ward's "Automotive Reports" data. Seasonal adjustment
by F.R. Domestic-type autos include U . S . sales of cars produced in Canada.

The saving rate moved unevenly during 1975,
due in part to the volatile movements in disposable income. But for 1975 as a whole the rate
averaged 8.3 per cent—somewhat above the
level of recent years and far above the 6.5 per
cent average rate of the preceding decade and
a half. This high saving rate probably reflected
an attempt by consumers to restore the real value
of wealth and real liquid balances—which had
been greatly damaged by inflation—as well as
the relative growth of farm and property income, a larger proportion of which is generally
saved or reinvested.
The massive fiscal stimulus in the second
quarter caused real personal consumption expenditures to rise at an annual rate of more than
4 per cent in the second and third quarters.
Expenditures for furniture and appliances and
nondurable goods—particularly clothing and
shoes—proved immediately responsive to the
rise in income. Real outlays for goods other than
autos shot up 9.5 per cent at an annual rate.
By the third quarter, real consumer purchases
had recovered to the level of 2 years earlier.
As is typical after a large surge in expenditures,
the increase in real personal consumption
spending moderated in the following quarter.
Auto sales followed a slightly different pattern last year. Sales of U.S.-made autos rose

The Economy in 1975

in early 1975, from a deeply depressed annual
rate of 6 million units at the 1974 year-end,
as consumers responded to the lure of manufacturers' rebates on overstocked small cars. However, some of this demand was borrowed from
the future, and the sales pace fell back in the
second quarter. Then with inflationary fears
moderating, sales of domestic-type autos picked
up again—rising to nearly 8 million units, annual rate—in the final quarter. Sales of imported
cars slowed from 1.7 million units in the first
quarter to 1.3 million in the fourth as this market
was affected by intense domestic competition
and severe inventory shortages at model
changeover time.

INVENTORY INVESTMENT
The enormous size of the swing in inventory
investment—and the effects that it had on production, income, and employment—was unprecedented in the postwar period. There had
been a general build-up of stocks of both nondurable and durable goods in late 1973 and in
the first half of 1974 in response to earlier strong
demands, shortages, and expected price increases. By the third quarter of 1974, however,
inventory/sales ratios had risen to historically
high levels. As a result, businessmen began to
trim their stocks of nondurable goods, particularly in the trade sector. With the collapse of

Ratio of total business inventories
to GN P final sales
Ratio
1972 DOLLARS
T
PT

P T

P

7
.27

1

1

.25

.23
Vv l>tf' I* H

i-'t?. *» 1 "Tt. 981
•H

'58

'62

'60

'64

'66

i• mm •• i mm t
'68 70 72 74 76

Dept. of Commerce data, seasonally adjusted.




75

consumer demand in the fourth quarter there
was a sizable, unintended accumulation of durable goods, particularly autos. Redoubling their
efforts, business firms achieved a massive liquidation in the first half of 1975 as producers
joined retailers and wholesalers in ruthlessly
cutting inventories.
Although production of durable goods was
reduced very sharply in the fall and winter of
1974-75, stocks—especially of unsold automobiles—increased as real final demand contracted
at the unusually fast rate of nearly 9 per cent
in the fourth quarter of 1974. In the first quarter
of 1975 there was a huge run-off of auto inventories and some liquidation of durable goods
other than autos. During this period production
was cut further and final demands were satisfied
to a significant extent out of inventories.
The quite substantial liquidation of nondurable goods inventories has been a unique feature
of this recession. Typically, the inventory cycle
is dominated by movements in durable goods
stocks where producers are less able to adjust
output rapidly to changed sales patterns. The
exceptional role of nondurable goods in this
cycle probably is related to the unusually sharp
movements in final demand for such goods,
many of which have petrochemical bases. To
a lesser extent, price uncertainty may have
played a role as processors shied away from
holding a number of products, for example
petrochemicals, whose prices had risen astoundingly.
By late spring and early summer, demands
were increasing for nondurable goods and the
inventory/sales ratio dropped sharply despite
rising production. There were some indications
that the run-off of stocks in the second quarter
was excessive. By December, production of
nondurable consumer goods was 7 per cent
above the trough level and that of materials had
risen by 12 per cent.
In contrast, producers of durable goods continued to reduce their stocks throughout the
second half of 1975. The recovery in durable
goods production has been somewhat slower
than the average postwar experience. Some of
this sluggishness appears due to the still cloudy
outlook for business equipment production. In
addition, business firms apparently are remain-

76

Federal Reserve Bulletin • February 1976

ing cautious toward increases in inventory levels
in view of the 1974 experience.
As the year closed, stocks of nondurable
goods remained quite thin relative to sales, and
further increases in demand should be reflected
in new ordering. Durable goods inventories on
the other hand were still fairly high relative to
sales, and liquidation may continue a bit longer.
Over all, the stage seems set for a moderate
accumulation of inventories during 1976 as real
final demands strengthen further.

BUSINESS FIXED INVESTMENT
Real business fixed investment, which had fallen
sharply in the second half of 1974, continued
weak as the economic recovery got under way.
However, by the fall of 1975 capital spending
appeared to have bottomed out, and late in the
year it was beginning to support the recovery.
For 1975 as a whole, capital outlays by business
were about unchanged from 1974 in current
dollars but were down almost 12 per cent in
real terms.
Compared with previous economic contractions, the decline in real business fixed investment was unusually severe, and the ensuing
recovery has been somewhat slow to develop.
Real capital outlays declined 18 per cent from
the first-quarter-1974 peak to its trough during
the third quarter of 1975—the largest fall in any

postwar recession. And whereas economic activity began to recover in the second quarter of
the year, growth in real spending for business
fixed investment did not start until a half-^ear
later.
The major deterrent to substantial, early recovery in capital spending was the still depressed level of real sales, both at home and
abroad, and relatively low rates of capacity
utilization throughout 1975. Thus, although
there were other developments in 1975 that
normally would have had a favorable impact on
capital outlays—an increased investment tax
credit, a substantial recovery in corporate profits, and moderating inflation in capital goods
prices—firms were extremely cautious about
adding to capacity.
This was the first postwar recession in which
the real decline in structures was greater than
in equipment. There were several reasons for
this. As usual, the recession brought sharply
lower corporate profits, which made it difficult
to finance new investment internally. At the
same time record high interest rates and low
price/earnings ratios made external financing
expensive. Because investment in structures, as
compared with equipment, is more sensitive to
the cost of borrowing and because equipment
became eligible for a temporarily increased tax
credit in 1975, the impact of these financial
developments on structures was particularly severe.

Utilization and business investment
Per cent

Percentage change, annual rate

Billions of dollars

PLANT A N D EQUIPMENT
EXPENDITURES
Materials

Total

Capacity utilization, F.R. data, seasonally adjusted. Plant and equipment expenditures, Dept. of Commerce data; materials
include the primary metals, stone, clay and glass, textiles, paper, chemicals, and petroleum industries. N e w orders, Dept. of
Commerce data, seasonally adjusted; deflation by F.R.




The Economy in 1975

As in the two previous years, plant and
equipment expenditures were relatively stronger
in the manufacturing sector than elsewhere.
Materials producers, despite their reduced
operating rates in 1975, have been accounting
for a growing share of capital spending for
several years. Their strong investment spending
reflected both the capacity constraints that were
evident before the onset of the recent recession
and the need to be in compliance with environmental regulations. According to some estimates, such producers increased capacity by
about 4 per cent in 1975. In contrast, both the
auto industry (and the related rubber industry)
and producers of electrical machinery showed
sharp drops in investment spending. In electric
utilities, capital spending showed a decrease in
1975 after averaging a 14 per cent annual rate
of growth from 1962 to 1974. Communications
and commercial firms also cut back sharply on
capital spending in 1975.
Evidence available at the end of 1975 suggests that a vigorous recovery is not yet in sight
for business fixed investment. The Commerce
Department's year-end survey of plans for new
plant and equipment expenditures indicated a
moderate gain in nominal capital spending in
1976 but a decline in real expenditures from
1975. Other leading indicators of capital spending—new orders, construction contracts, and
capital appropriations—also have yet to show
real strength. On the positive side, the recovery
in corporate profits, coupled with falling interest
rates and the improving stock market, has reduced the liquidity problems that hindered investment in 1975. In addition, the extension of
the income tax cut and the strong Christmas
selling season have bolstered confidence. Capital spending should begin to strengthen as business begins adding to its capacity in anticipation
of further economic recovery.

HOUSING
In the first quarter of 1975, private housing
starts ended the steepest and most protracted
decline since World War II. They had dropped
from a peak of 2.4 million units, annual rate,
toward the end of 1972 to a low of 1 million



77

Privately owned housing starts
Ratio scale, millions of units

Dept. of Commerce data, seasonally adjusted annual rates.

in early 1975. Starts turned up in the spring
and by the year-end had advanced more than
40 per cent from their low. Factory shipments
of new mobile homes for domestic use also
showed some recovery as 1975 progressed, but
for the year as a whole these shipments were
no greater than they had been in the mid-1960's
and were some 60 per cent below their 1972
high. Expenditures for residential construction,
including mobile homes, contributed less to the
over-all improvement in final demands in 1975
than had been the general experience in previous
upturns.
The relatively low level of housing starts in
1975 (1.2 million) reflected continued depressed
conditions in multifamily construction. Such
starts amounted to only 270,000 units during
the year—the lowest level since the late 1950's.
This development was due to a number of
factors, including the financial difficulties of
builders of such projects, a heavy overhang of
structures under way as the year began, continued weakness in consumer demands for condominium ownership, and difficulties in achieving
rent levels sufficient to cover rising costs of
construction and operation.
Single-family starts, on the other hand, increased to a total of nearly 900,000 units for
1975 as a whole and by year-end they were at
an annual rate of about 1 million units. They
benefited from support from Federal programs
designed to provide below-market interest rates
for some buyers. In addition, sales of new
homes for owner occupancy were stimulated to
some extent by the lure of special income tax
rebates on purchases made before 1976 from
the overhang of dwellings still in builder inven-

78

Federal Reserve Bulletin • February 1976

tories early last spring. Also the cost of mortgage credit declined somewhat during the year
and loan availability improved as thrift institutions experienced exceptionally strong inflows
throughout 1975.
With the number of dwelling units under
construction continuing far below their previous
highs and with mortgage credit conditions improving, support from residential construction
for the general economic recovery may pick up
significantly in 1976.

U.S. foreign transactions
Goods and services
Billions of dollars

1973

1975

Dept. of Commerce data, seasonally adjusted annual rates.

EXPORTS AND IMPORTS
The nominal value of net exports of goods and
services on a national income accounts basis
was $22 billion in 1975, the largest on record.
The increase in the surplus from $3 billion
(seasonally adjusted annual rate) in the third
quarter of 1974 to $24 billion in the second
quarter of 1975 helped to moderate the decline
in GNP. Although the surplus receded somewhat in the second half of the year, it remained
surprisingly large and acted as less of a drag
on real GNP growth than is usual in the early
phase of a recovery.
The most important factor in the strong performance of net exports in 1975 was a very large
reduction in imports of goods as a result of the
U.S. recession. From the fourth quarter of 1974
to the second quarter of 1975, merchandise
import volume declined more than 20 per
cent. With the sharp recovery of domestic activity, volume recovered about half of this decline in the third quarter, and it continued to
grow, but more slowly, in the fourth quarter.
While merchandise imports were extremely
sensitive to U.S. economic activity, merchandise exports held up rather well in the face of
declining economic activity abroad. The volume
of nonagricultural exports did fall by 9 per cent
over the first two quarters, but it turned up in
the second half before the general pick-up was
under way in the rest of the industrial world.
Factors contributing to this nonagricultural export performance included (1) somewhat milder
recessions in other major countries, on average,
than in the United States; (2) an increase in




exports to oil-exporting countries as well as
non-oil-exporting developing countries despite
the latter's reduced export earnings; and (3) the
price competitiveness of U.S. goods, which had
improved over the three previous years.
Agricultural exports also played a key role
in supporting net exports. The outlook had been
for lower volume than in 1974 until the Soviet
Union began buying large amounts of wheat and
corn due to an impending shortfall in thenharvest. As a result, agricultural export volume
for 1975 was about 2 per cent above that of
the previous year. Net service transactions also
contributed around $8 billion to net exports in
1975.

STATE
AND LOCAL GOVERNMENT
Expenditures and employment by State and
local governments provided considerable
strength to the economy during most of the
1960's and early 1970's. The latter half of 1974,
however, brought increasing difficulties to these
units. Although nominal expenditures rose
sharply, inflation outpaced spending to the point
that real purchases actually declined. Furthermore, growth in receipts slowed in 1974. As
a result, from 1973 to 1974 there was a $6
billion shift from surplus to deficit in the "operational" budget, which excludes the net saving in social insurance funds.
The fiscal difficulties of State and local governments were accentuated in 1975 as the fi-

The Economy in 1975

nancial problems of New York City and of New
York State agencies led to higher borrowing
costs for many governmental units across the
country. The psychological effects of the New
York City crisis, combined with inherent fiscal
problems, apparently caused State and local
governments to tighten their budgets. Currentdollar purchases of goods and services grew by
9 per cent over the four quarters of 1975, down
from the 12.5 per cent increase in the preceding
year. Because New York State and all its municipalities constitute just over 10 per cent of
the sector's total spending, this slowdown undoubtedly reflected a general attitude of caution
on the part of a large number of governments
outside New York.
While current-dollar spending slowed in
1975, real purchases contributed to the recovery
as cost increases moderated over the year. Real
spending on structures was up 2.7 per cent
in 1975. Real compensation grew 5 per cent
over the year as employment rose by half a
million. The latter increase would have been
substantially lower had it not been for the addition of 250,000 public-employment-program
workers under a Federal grant program.
The deficit position that had developed earlier
during the recession worsened in the first quarter
of 1975 but then rapidly improved as some
spending cuts took hold and as receipts increased due to the recovery. In the second half
of the year the budget position moved firmly
into surplus.

$10 billion, in the form of rebates on 1974
individual income taxes (up to $200) and a
special $50 payment to Federal social security
beneficiaries.
The duration of unemployment insurance
coverage was lengthened to 65 weeks, and coverage was widened to include individuals not
previously covered. The food stamp program
and Federal grants to State and local governments for public service employment also were
expanded. However, because of the continuing
inflation, tax burdens were not automatically
reduced to the extent experienced in previous
recessions. Nevertheless, the Federal budget
deficit (NIA basis) reached a peacetime high of
$102 billion (at annual rates) in the second
quarter, when a substantial portion of the payments under the Tax Reduction Act were made;
the deficit averaged about $74 billion for the
year as a whole. On a high-employment basis,
fiscal policy was considerably more stimulative
in 1975 than in preceding years as the budget
shifted from an $18 billion surplus in 1974 to
a $9 billion deficit in 1975.

Federal purchases and expenditures
Change, billions of dollars

20
Expenditures

10

i

FEDERAL GOVERNMENT

_

Real Federal Government purchases of goods
and services declined slightly in 1975. The
major fiscal impacts on the economy were
through the Tax Reduction Act of 1975 and
through sharply increased transfer payments.
The fiscal stimulus embodied in the tax act
was unprecedented. Among other things this
legislation provided (1) a cut in personal tax
witholding rates and corporate taxes for the
remainder of 1975, amounting to about $12
billion, and (2) one-time cash payments, made
mostly in May and June and amounting to nearly

ffl]




79

I

III

Pun
Purchases

io

Federal budget

Billions of dollars

SURPLUS

Dept. of Commerce national income and product data,
seasonally adjusted annual rates.

80

Federal Reserve Bulletin • February 1976

EMPLOYMENT
Developments in the labor market paralleled
those in output in 1975. Nonfarm payroll employment fell 2.5 million, seasonally adjusted,
between September 1974 and June 1975. All
of this reduction occurred in the private sector.
Boosted by an uncharacteristically strong recessionary growth in the labor force, the unemployment rate jumped from
per cent in the
third quarter of 1974 to nearly 9 per cent in
the second quarter of 1975. From June to December 1975, however, almost three-fifths of
the earlier job loss was recovered. But labor
force growth continued rapid, and the unemployment rate dropped slightly under the 8 per
cent mark as the economy entered 1976. (For
a more complete discussion of labor market
developments, see the January 1976 B U L L E -

Private nonfarm sector
Percentage change from previous year

TIN.)

Dept. of Labor data, seasonally adjusted.

PRICE AND LABOR COSTS
Inflationary pressures eased in 1975 following
the acute acceleration of 1974, but inflation
continued to be a serious problem at year-end,
with rates of price and wage increases remaining
high. The implicit deflator for GNP—a broad
measure of price performance—increased 6.4
per cent from the end of 1974 to the end of
1975, about half the rise of the preceding year.
The rate of wage inflation also slowed over the
year, but less than prices, as workers attempted
to recapture some of the income that had been
lost to price inflation during 1973 and 1974.
The slowdown in price inflation was led by
a sharp deceleration in the rate of wholesale
price increases early in 1975, which began to
be reflected at the consumer level by the spring
of the year. Price rises for many commodities
began to ease, and the consumer price index
slowed from a 12 per cent increase during 1974
to a 7 per cent increase in 1975.
The sharp reduction in aggregate demand
during 1974 and the first half of 1975 played
a major role in reducing inflationary pressures.
The effect on prices of less spending by consumers and businesses manifested itself most
dramatically in the form of cash rebate programs
for automobiles and reduced prices of many



other durable goods. Attempts to liquidate severely swollen business inventories also led to
price cutting for several industrial materials in
the first part of the year.
Two important sectors where there has been
a relatively large deceleration in the rate of price
inflation are fuels and power and food. As world
prices of crude oil began to stabilize in early
1974, increases in wholesale prices for fuels and
power and retail prices for gasoline and oil
began to slow. Prices of these products, however, started to pick up again in the spring and
summer of 1975, reflecting, in part, the oil
import fees imposed in February and June.
The advanced levels of world demand for
U.S. farm products drove farm prices up sharply
in 1973 and 1974. The high level of prices,
however, brought forth record plantings in
1975, and favorable weather conditions helped
to produce a bumper harvest in the United
States, considerably improving the price picture
for food.
Increases in unit labor costs moderated substantially during 1975 and contributed to the
easing of price pressures over the year. In the
fourth quarter of 1975 such costs in the private
nonfarm sector were about 3.5 per cent above

The Economy in 1975

81

Prices
Ratio scale, index,
WHOLESALE PRICES
Fuels, related products. j
and power

Farm products
and processed
foods and feeds

Dept. of Labor data, seasonally adjusted.

their level in late 1974, compared with a postwar record increase of more than 14 per cent
during the preceding year. The resurgence of
growth in labor productivity in mid-1975, following declines in seven of the eight previous
quarters, was the major factor in the deceleration of labor costs as compensation per hour
increased 7.7 per cent over the year.
Prices generally grew at a faster pace than
labor costs in 1975 as businesses attempted to
widen their recession-narrowed profit margins.
The share of the value of output of nonfinancial
corporations going to corporate profits (excluding inventory profits) rose to 10.5 per cent in
the third quarter of 1975 from the recent low
of 6.7 per cent in the fourth quarter of 1974,




reflecting the sharpest recovery of corporate
profits in the postwar period. Nevertheless, the
profit share is still well below the 14.6 per cent
average of the postwar period.
The current low levels of unutilized productive resources—both capital and labor—are
likely to act as a moderating force on price
pressures during the coming months. Although
much of the price performance will depend on
such external forces as price decisions by the
Organization of Petroleum Exporting Countries
and world harvests, domestic productivity gains
and labor costs in a year of heavy collective
bargaining activity will also play an important
role in the determination of price changes in
1976.
•

82

Revision of
Money Stock Measures
In mid-January the Board of Governors released
its annual revision of money stock measures and
related items.1 This revision included the incorporation of new estimates for domestic nonmember banks, based on call report data for
June and September 1975, and the regular updating of seasonal adjustment factors. It also
incorporated new estimates of the cash-itemsbias adjustment, which had been introduced in
the money stock series in late 1969.
Revised monthly data back to January 1970,
both before and after seasonal adjustment, for
the money stock and related measures are shown
on pages 86 and 87. Monthly and weekly data,
seasonally adjusted and unadjusted, for earlier
years, are available from the Banking Section,
Division of Research and Statistics.

EFFECTS OF
THE BENCHMARKING
The effects on the narrow money stock (Mx)
of the benchmark adjustments for domestic
nonmember banks were small. Domestic nonmember deposits and certain other components
of the money stock were benchmarked to the
June and September call reports. The June revision for nonmember banks lowered the level of

M 1 less than $100 million, while the September
benchmark lowered the level of the series about
$300 million. Other benchmark adjustments for
deposits due to foreign commercial banks and
mutual savings banks also lowered the level of
Mi a little. In total, Mx was lowered about $300

TABLE 1
Seasonal adjustment factors for Mx
Demand deposit
component

Month

Old
series

Revised
series

Currency
component
Old
series

Revised
series

1975 Jan
Feb
Mar

1.0350
.9900
.9900

1.0290
.9880
.9900

.9935
.9873
.9910

.9935
.9870
.9920

Apr
May
June

1.0090
.9790
.9910

1.0090
.9790
.9960

.9945
.9970
1.0020

.9945
.9975
1.0025

July
Aug
Sept

.9955
.9840
.9920

.9985
.9845
.9920

1.0080
1.0035
.9990

1.0075
1.0035
.9985

Oct
Nov
Dec

.9980
1.0050
1.0310

.9960
1.0060
1.0320

.9990
1.0070
1.0175

.9980
1.0070
1.0185

Money stock
Billions of dollars

NOTE.—Edward R. Fry, Darwin Beck, and Mary F.
Weaver of the Board's Division of Research and Statistics prepared this article.
J
The money stock and related measures include M1
(private demand deposits adjusted plus currency); M 2
(Mi plus commercial bank time and savings deposits
other than large negotiable certificates of deposit); M 3
(M2 plus deposits at mutual savings banks, savings
capital at savings and loan associations, and credit union
shares); M 4 (Af2 plus large negotiable time CD's outstanding at weekly reporting banks); and M 5 (Af3 plus
large negotiable CD's outstanding at weekly reporting
banks). Monthly and weekly data for these series are
published in the B U L L E T I N and they also appear each
week in the Board's H.6 press release.




Seasonally adjusted monthly averages of daily figures.

Revision of Money Stock Measures

83

TABLE 2
Seasonal adjustment factors for 1976- -Mi and related measures

Currency

Time deposits
Demand other than CD's Certifideposcates of
Nonits
Member member deposit
banks
banks

.9935
.9870
.9920

1.0290
.9880
.9900

.9990
1.0010
1.0060

.9950
1.0020
1.0090

.9910
.9690
.9810

.9945
.9975
1.0025

1.0090
.9790
.9960

1.0080
1.0090
1.0060

1.0080
1.0070
1.0030

.9710
.9880
.9790

1.0075
1.0035
.9985

.9985
.9845
.9920

1.0010
.9990
.9950

.9990
1.0010
.9980

.9900
1.0300
1.0460

.9980
1.0070
1.0185

.9960
1.0060
1.0320

.9950
.9890
.9920

.9970
.9920
.9890

1.0350
1.0130
1.0070

1.0090
1.0000
.9910
.9785

1.0590
1.0450
1.0270
.9980

.9975
.9985
.9990
.9997

.9910
.9942
.9958
.9967

.9960
.9940
.9900
.9890

.9850
.9950
.9900
.9780

1.0000
.9920
.9890
.9745

.9985
1.0005
1.0000
1.0025

.9978
1.0008
1.0020
1.0040

.9810
.9750
.9670
.9630

.9860
.9985
.9950
.9900
.9850

.9920
.9880
.9940
.9845
.9915

1.0025
1.0045
1.0060
1.0060
1.0085

1.0055
1.0074
1.0088
1.0095
1.0100

.9660
.9740
.9810
.9870
.9880

1.0010
1.0005
.9920
.9830

1.0110
1.0160
1.0190
.9940

1.0085
1.0080
1.0080
1.0080

1.0108
1.0090
1.0068
1.0060

.9760
.9720
.9690
.9690

.9950
1.0020

.9900
.9800

1.0080
1.0090

1.0054
1.0061

.9720
.9820

million in June 1975 and $600 million in September, because of the benchmarking.
The benchmark adjustments for M 2 were
larger. Nonmember bank time deposits were
reduced $500 million in June and an additional
$1.7 billion in September. Thus, M 2 was $800
million and $2.0 billion lower in June and
September, respectively.

SEASONAL FACTOR REVISION
The indications in recent years of a changing
seasonal pattern in the demand deposit component of the money stock were buttressed by the
configuration of deposit flows in 1975. As a
result, changes in monthly seasonal factors were




Period

May 19
26

Currency

Time deposits
Demand other than CD's Certifideposcates of
Nonits
Member member deposit
banks
banks

.9970
.9930

.9780
.9680

1.0085
1.0095

1.0070
1.0074

.9900
.9950

June

2
9
16
23
30

.9980
1.0090
1.0045
.9995
.9955

.9840
.9900
1.0050
.9950
.9950

1.0085
1.0075
1.0065
1.0040
1.0040

1.0062
1.0060
1.0040
1.0012
.9999

.9950
.9870
.9790
.9720
.9720

July

7
14
21
28

1.0210
1.0110
1.0060
.9965

1.0060
1.0090
.9960
.9840

1.0025
1.0010
1.0005
1.0000

.9998
.9988
.9986
.9992

.9760
.9820
.9900

1.0000

Aug. 4
11
18
25

1.0030
1.0130
1.0080
.9975

.9925
.9890
.9870
.9740

.9997
1.0000
.9990
.9980

1.0002
1.0020
1.0012
1.0010

1.0120
1.0190
1.0290
1.0380

Sept.

1
8
15
22
29

.9940
1.0120
1.0020
.9960
.9860

.9820
.9910
1.0010
.9930
.9830

.9975
.9970
.9950
.9930
.9945

1.0002
.9994
.9982
.9969
.9970

1.0450
1.0460
1.0460
1.0460
1.0460

Oct.

6
13
20
27

1.0000
1.0060
.9980
.9920

.9960
.9950
1.0000
.9860

.9945
.9965
.9955
.9955

.9975
.9979
.9972
.9954

1.0450
1.0390
1.0340
1.0320

Nov.

3
10
17
24

.9940
1.0115
1.0085
1.0080

1.0100
1.0020
1.0100
.9990

.9925
.9915
.9885
.9885

.9932
.9928
.9919
.9916

1.0220
1.0160
1.0110
1.0100

Dec.

1
8
15
22
29

1.0060
1.0200
1.0170
1.0215
1.0185

1.0120
1.0200
1.0320
1.0320
1.0350

.9870
.9890
.9905
.9925
.9950

.9905
.9898
.9888
.9876
.9878

1.0100
1.0100
1.0070
1.0060
1.0070

somewhat greater than in recent reviews.2
Changes in seasonal factors were largest for
January and June; factors for certain other
months were changed slightly, as shown in
Table 1. The January seasonal factor for demand
deposits was lowered relative to surrounding
2
In preparing for this revision, the Board's stalf
investigated several alternative methods of seasonal
adjustment of the M t series. The various methods produce widely differing monthly growth rates. The money
stock is subject to a variety of transitory influences that
limit the significance of short-run growth rates, and
partly in consequence seasonal factors are subject to
considerable uncertainty. A technical paper comparing
the results of alternative procedures is available from
the Banking Section, Division of Research and Statistics.

84

Federal Reserve Bulletin • February 1976

TABLE 3
M o n e y stock growth rates: comparison of old and revised
Annual rates of growth in per cent
M2

Mi
Old
series

Period

Revised
series

Old
series

M3
Revised
series

Old
series

Revised
series

Based on quarterly-average data
1974
1975

5.2
4.5

5.0
4.4

7.7
8.7

7.7
8.2

7.1
11.3

7.1
11.1

1975—HI....
H2

4.2
4.7

4.0
4.8

8.5
8.4

8.0
8.2

10.9
11.1

10.2
11.4

.3
8.6
6.9
2.4

0.6
7.4
7.1
2.5

5.8
11.2
10.4
6.4

5.6
10.2
10.1
6.1

7.8
13.8
13.2
8.7

7.5
12.6
13.3
9.2

1974
1975

4.8
4.2

4.7
4.2

7.2
8.8

7.2
8.3

6.8
11.4

6.8
11.2

1975—HI....
H2

6.0
2.3

5.6
2.7

10.6
6.6

9.8
6.5

13.0
9.3

11.9
9.9

Ql .•
Q2 . . .
Q3 . . .
Q4 . . .

0.8
11.2
2.3
2.3

1.4
9.7
3.6
1.9

7.6
13.4
6.3
6.8

6.9
12.5
6.5
6.4

9.9
15.7
9.9
8.5

9.0
14.5
10.7
8.9

1975—Jan. ..
Feb. ..
Mar...

-11.8
3.4

5.1

11.0

9.4

2.5
8.4
11.6

4.1
7.2
9.3

5.6
9.9
13.9

6.2
8.9
11.7

Apr. .
May ..
June ..

3.4
11.3
18.7

3.4
11.4
14.2

7.3
13.4
19.2

7.1
13.4
16.5

11.7
14.9
19.8

10.8
14.9
17.4

July ..
Aug. .
Sept. .

2.0
2.9
2.0

3.7
5.3
1.6

8.2
5.9
4.8

9.5
5.7
4.2

12.2
9.4
7.8

13.2
10.3
8.5

0.8
9.4
2.8

4.2
12.9
3.2

5.2
10.8
3.1

7.4
12.4
5.6

8.4
11.6
6.5

-

Ql . ..
Q2
Q3
Q4

Based on monthly-average data

Oct.. .
Nov. .
Dec...

-

2.4
12.2
- 2.8

-

-

months, and the June factor was raised. As
usual, the changes in seasonal factors for currency were minor, and they had no significant
effect on the pattern of currency growth.
Seasonal factors for commercial bank time
and savings deposits and for thrift institution
deposits were also reviewed. Changes in seasonal for time and savings deposits at commercial banks were relatively minor, affecting
the series from 1966 to date, but the factors
for thrift institutions were changed more extensively.
The method of seasonal adjustment applied
to the thrift institution deposits differs from that
previously utilized, and seasonal factors for this
series were changed back to 1959. In the past



thrift institution deposits had been seasonally
adjusted using the Census Bureau X - l l "additive" method. In this review the Census Bureau
X - l l "multiplicative" method was used. 3 This
change resulted in only minor adjustments in
the historical series, and the largest changes
were in seasonal factors for recent years. Factors
in the first half of the year now tend to be higher,
and most of the offset to these higher factors
is concentrated in the third quarter. Impacts of
these changes on growth rates for M 3 and M 5
measures were minor.
3
For a detailed description of the Census Bureau X - l l
method, see The X-ll Variant of the Census Method
II Seasonal Adjustment Program, Technical Paper No.
15, U.S. Department of Commerce.

Revision of Money Stock Measures

Monthly and weekly seasonal factors for 1976
for the currency and deposit components of Mt
and M 2 , as well as for large negotiable certificates of deposit, are shown in Table 2.

OTHER ADJUSTMENTS
In addition to the benchmark adjustments and
the changes in seasonal factors, this year's revision incorporates new estimates of the "cashitems-bias adjustment." In the construction of
the money stock, cash items in the process of
collection—which represent checks received but
not yet collected—are deducted from private
demand deposits as reported by banks in order
to avoid double counting of deposits. In 1969
and 1970 adjustment had been made in the
money stock data to correct for a "cash-items
bias" emanating from international financial
transactions.
In the late 1960's and early 1970's cash items
in the process of collection grew very rapidly.
A large part of this increase was related to the
growth of Euro-dollar and other international
financial transactions and to the clearing of such
transactions through domestic banks. Such
transfers generally did not create private demand
deposit liabilities, so there was no counterpart
build-up in money stock deposits associated
with the rapid increase in cash items. Therefore,
both the level and the growth rate of Mx were
understated when total cash items were deducted
from total money stock deposits. The understatement of Mi was corrected on the basis of
data obtained from Edge Act corporations,
agencies and branches of foreign banks, and
other foreign-related institutions that measured
the volume of items cleared through domestic
banks.
Recently it was discovered that because of
certain bank accounting practices the data collected had overstated the amount of the cashitems bias in recent years. Additional data ob-

85

tained to adjust the figures for these years indicate that the overstatement was generally minor,
with the largest corrections in 1970 and 1971.
In contrast, the additional data indicate that prior
to 1970 the cash-items bias was understated by
minor amounts; revisions to correct that bias
were also folded into the series back to 1966.
When the money stock has been revised to
take into account the new benchmarks, the new
seasonal factors, and the changes in the cashitems-bias adjustment, the effect, as shown in
the chart, is to raise the level of Mt slightly
from 1966 to 1969, and to lower it thereafter.
The largest impact occurs in 1970 and 1971
when the level is reduced about $2 billion. In
the latter half of 1975 the level of Mx was
reduced about $1.0 billion.

IMPACT ON GROWTH RATES
Table 3 shows, in percentage terms, the effect
of the revisions on annual rates of growth in
money stock measures for recent periods. The
upper part of the table shows growth rates based
on quarterly-average data; the lower part,
growth rates based on monthly-average data. In
terms of half-years, the revision lowered the
growth rates of Mx and M 3 in the first half of
1975 and raised them in the second half. Both
first- and second-half growth rates were lowered
for M2 because of the large benchmark adjustment, but this measure also shows relatively
larger growth in the second half after revision.
Revisions in monthly growth rates were larger
than usual, primarily because of the changes in
seasonal adjustment factors. The largest differences were in January and June 1975; in these
2 months, respectively, the growth rate of Mx
was raised 6.7 percentage points and lowered
4.5 percentage points. The changes in monthly
growth rate patterns for M 2 and M 3 are very
similar to the pattern of Mu but the differences
in growth rates are generally much smaller.

NOTES TO TABLES
1
Mi 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.
M2 includes—in addition to currency and demand deposits—savings
deposits, time deposits open account, and time certificates o f deposit (CD's) other than negotiable time CD's issued in denominations
of $100,000 or more by large weekly reporting commercial banks.
Excludes time deposits of the U.S. Govt, and of domestic commercial
banks.




Mz includes M« plus the average of the beginning- and end-ofmonth deposits of mutual savings banks, savings capital at savings
and loan associations, and credit union shares.
M \ includes A/2 plus large negotiable CD's.
Ms includes Ms plus large negotiable CD's.
2
Negotiable time CD's issued in denominations of $100,000 or
more by large weekly reporting banks.
3
Average of beginning- and end-of-month deposits at mutual
savings banks, savings capital at savings and loan associations, and
credit union shares.
4
At all commercial banks.

86

Federal Reserve Bulletin • February 1976

Money stock—Seasonally adjusted
In billions of dollars (for footnotes see page 85)
Over-all measures 1

Related data
De jposits at coimmercial ba nks

Year and
month
Mi

A/o

hh

MA

M&

Currency

Nonbank
thrift
institutions 3

Ti me and savi ngs

Demand
CD's2

Other

Total

1970—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec

210.4
209.7
211.0
212.5
213.3
213.6
214.2
215.8
217.5
217.8
218.6
219.6

393.0
392.0
394.5
398.0
400.1
402.4
406.0
410.4
414.5
417.1
420.0
423.5

607.9
606.9
610.1
614.6
618.0
621.5
626.7
633.3
639.7
644.7
650.0
656.2

403.5
402.7
406.0
411.0
413.5
415.8
422.5
429.3
435.4
439.5
443.8
448.8

618.4
617.6
621.5
627.6
631.4
634.9
643.2
652.1
660.6
667.1
673.8
681.5

46.3
46.5
46.7
47.0
47.5
47.7
47.9
48.1
48.3
48.5
48.8
49.1

164.2
163.2
164.3
165.5
165.8
166.0
166.3
167.7
169.2
169.3
169.9
170.5

10.5
10.6
11.4
13.0
13.4
13.4
16.5
18.9
20.9
22.4
23.8
25.3

182.6
182.4
183.5
185.5
186.8
188.8
191.8
194.6
197.1
199.3
201.3
204.0

193.1
193.0
194.9
198.5
200.2
202.2
208.3
213.5
217.9
221.7
225.2
229.2

214.8
214.9
215.6
216.6
217.8
219.1
220.7
222.8
225.2
227.6
230.0
232.7

1971—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec

220.6
222.5
224.1
225.9
228.3
229.8
230.9
231.9
232.5
232.7
233.3
233.8

428.2
434.7
441.0
445.7
450.7
454.8
457.1
459.2
461.6
464.3
468.1
471.7

663.7
673.2
683.1
691.7
700.4
707.8
713.6
719.2
725.0
731.2
738.2
745.1

454.8
462.4
469.2
473.6
479.0
483.8
487.1
489.7
492.5
496.7
500.8
505.0

690.3
700.9
711.3
719.6
728.7
736.9
743.6
749.7
755.9
763.6
771.0
778.4

49.4
49.8
50.0
50.4
50.7
51.0
51.5
51.7
51.9
52.2
52.3
52.6

171.2
172.7
174.1
175.4
177.6
178.8
179.4
180.2
180.5
180.5
180.9
181.3

26.6
27.7
28.2
27.9
28.3
29.1
30.0
30.4
30.9
32.4
32.8
33.3

207.6
212.3
216.9
219.8
222.4
225.0
226.2
227.4
229.1
231.6
234.8
237.8

234.2
239.9
245.1
247.7
250.7
254.0
256.2
257.8
260.0
264.0
267.6
271.2

235.5
238.4
242.1
246.0
249.7
253.0
256.5
260.0
263.5
266.9
270.1
273.4

1972—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec

235.4
237.3
239.7
241.4
242.2
243.3
245.4
247.4
249.4
251.0
252.5
255.3

477.0
481.9
486.8
490.4
493.8
498.0
502.6
507.5
512.1
516.2
520.0
525.3

753.6
762.0
770.6
777.7
784.3
792.1
801.0
810.6
819.8
828.2
836.1
844.9

510.7
516.3
520.6
525.1
529.6
534.6
540.0
546.1
551.5
556.5
562.3
568.9

787.3
796.4
804.5
812.4
820.1
828.8
838.4
849.2
859.1
868.6
878.4
888.5

52.9
53.3
53.6
53.8
54.1
54.3
54.7
54.9
55.4
55.8
56.3
56.9

182.5
184.1
186.2
187.6
188.2
188.9
190.7
192.5
194.0
195.2
196.1
198.4

33.7
34.4
33.9
34.7
35.8
36.7
37.4
38.6
39.4
40.4
42.4
43.6

241.5
244.5
247.0
249.0
251.6
254.7
257.2
260.1
262.7
265.2
267.5
270.0

275.2
278.9
280.9
283.7
287.4
291.3
294.6
298.7
302.1
305.6
309.8
313.6

276.6
280.1
283.8
287.3
290.6
294.2
298.4
303.1
307.7
312.1
316.1
319.6

1973—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec

257.3
257.8
257.6
259.0
261.9
264.1
265.0
265.6
265.3
266.6
268.9
270.5

529.9
532.6
534.9
538.4
543.7
548.2
550.9
554.7
556.8
561.4
566.6
571.4

852.8
858.2
862.7
868.4
876.4
883.8
888.6
893.6
897.3
904.2
912.1
919.5

575.1
582.1
589.3
596.1
603.0
608.8
613.4
620.0
622.8
625.8
630.1
634.9

898.0
907.6
917.1
926.2
935.7
944.4
951.1
958.9
963.3
968.6
975.5
982.9

57.2
57.5
57.9
58.6
58.8
59.3
59.5
59.8
60.2
60.5
61.0
61.5

200.2
200.2
199.7
200.5
203.0
204.8
205.5
205.8
205.0
206.0
207.9
209.0

45.2
49.4
54.4
57.7
59.3
60.6
62.5
65.3
66.1
64.4
63.5
63.5

272.6
274.9
277.2
279.4
281.9
284.1
285.9
289.0
291.5
294.8
297.7
300.9

317.8
324.3
331.6
337.1
341.1
344.7
348.4
354.4
357.6
359.2
361.2
364.4

322.9
325.6
327.8
330.0
332.6
335.6
337.7
338.9
340.5
342.8
345.4
348.0

1974—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec

271.3
272.6
274.1
275.5
276.2
277.7
278.9
279.5
279.8
281.1
282.5
283.1

575.5
580.5
584.3
588.2
590.2
594.4
597.9
600.7
602.5
607.2
610.5
612.4

925.6
932.5
938.7
944.0
946.6
952.0
957.0
961.0
964.3
971.1
976.9
981.6

641.9
648.7
652.3
662.2
668.3
675.7
681.6
685.3
687.3
692.9
696.4
702.2

992.0
1,000.7
1,006.6
1,018.0
1,024.7
1,033.3
1,040.6
1,045.6
1,049.2
1,056.8
1,062.8
1,071.4

62.0
62.7
63.2
63.9
64.3
64.6
64.8
65.5
65.9
66.6
67.4
67.8

209.3
210.0
210.9
211.6
211.9
213.1
214.1
214.0
213.9
214.6
215.1
215.3

66.4
68.2
68.0
73.9
78.1
81.3
83.6
84.6
84.8
85.8
86.0
89.8

304.3
307.9
310.2
312.7
314.0
316.7
319.1
321.2
322.7
326.0
328.0
329.3

370.7
376.1
378.2
386.7
392.1
398.0
402.7
405.8
407.5
411.8
414.0
419.1

350.1
352.0
354.3
355.8
356.4
357.6
359.1
360.3
361.9
363.9
366.4
369.2

1975—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec

281.9
281.9
284.1
284.9
287.6
291.0
291.9
293.2
293.6
293.4
295.7
295.0

614.5
618.2
623.0
626.7
633.7
642.4
647.5
650.6
652.9
655.7
661.6
663.3

986.7
994.0
1,003.7
1,012.7
1,025.3
1,040.2
1,051.6
1,060.6
1,068.1
1,075.6
1,086.0
1,091.9

707.3
710.2
712.8
715.1
718.8
726.5
729.6
729.3
731.9
736.6
743.4
746.2

1,079.5
1,086.1
1.093.5
1,101.1
1,110.4
1,124.3
1,133.7
1,139.3
1,147.1
1,156.5
1,167.7
1,174.7

68.2
68.7
69.4
69.5
70.2
71.0
71.3
71.9
72.0
72.6
73.4
73.7

213.7
213.2
214.7
215.4
217.4
220.0
220.6
221.3
221.6
220.8
222.3
221.3

92.7
92.1
89.8
88.4
85.1
84.1
82.1
78.8
79.1
80.9
81.8
82.9

332.6
336.2
339.0
341.8
346.1
351.4
355.5
357.4
359.2
362.3
365.9
368.3

425.4
428.3
428.7
430.1
431.2
435.5
437.6
436.2
438.3
443.2
447.6
451.2

372.2
375.9
380.7
386.0
391.6
397.8
404.1
410.0
415.2
420.0
424.4
428.6




Revision of Money Stock Measures

87

Money stock—Not seasonally adjusted
In billions of dollars (for footnotes see page 85)
Over-all measures 1

Related data
Deposits at cornmercial banks

Year and
month
Mi

Mi

Mz

Mi

Ms

Currency

Demand

Total

Member

Nonbank
thrift
institutions 3

Time and savings
Domestic nonmember

CD's 2

Other

U.S.
Govt.
deposits 4

Total

.
1970-—Jan..
1970Feb...
Mar. .
Apr...
May..
June..
July. .
Aug...
Sept...
Oct.. .
Nov...
Dec...

216.3
207.4
209.0
213.6
209.6
212.2
213.4
213.2
216.1
217.6
220.1
225.8

398.4
389.8
393.5
400.3
397.7
401.5
405.4
407.7
412.8
416.6
419.7
428.1

613.6
604.5
609.7
617.8
616.0
621.7
627.2
630.4
637.1
643.0
647.7
659.1

409.0
400.4
404.9
413.0
410.7
414.5
421.4
427.0
434.1
439.7
444.1
453.8

624.2
615.1
621.1
630.5
629.0
634.7
643.3
649.6
658.4
666.0
672.1
684.7

46.1
45.9
46.3
46.6
47.3
47.7
48.3
48.3
48.2
48.5
49.2
50.0

170.2
161.5
162.7
167.0
162.3
164.5
165.2
164.9
167.8
169.1
170.9
175.8

131.2
124.5
125.7
128.9
125.1
127.0
127.1
126.8
129.1
130.0
131.1
135.0

37.7
35.7
35.6
36.7
35.8
36.0
36.5
36.5
37.2
37.6
38.2
39.2

10.6
10.6
11.4
12.7
13.0
13.0
16.1
19.2
21.4
23.1
24.4
25.7

182.1
182.4
184.5
186.7
188.1
189.3
191.9
194.6
196.7
199.0
199.7
202.4

192.7
193.0
195.9
199.3
201.1
202.3
208.0
213.8
218.1
222.0
224.1
228.1

215.2
214.8
216.2
217.5
218.3
220.2
221.8
222.7
224.3
226.4
228.0
230.9

4.8
7.1
6.9
5.3
6.4
6.5
6.8
7.1
6.9
6.2
5.7
7.3

1971-—Jan.. .
Feb...
Mar. .
Apr...
May..
June..
July. .
Aug. .
Sept. .
Oct...
Nov. .
Dec...

226.2
220.0
221.9
227.1
224.4
228.4
230.6
229.2
231.0
232.4
234.6
240.4

433.2
432.3
440.1
448.5
448.4
454.1
456.9
456.5
459.7
463.5
467.1
476.4

668.0
670.7
683.3
696.3
699.4
709.0
715.0
716.3
722.1
728.9
734.8
747.7

460.0
459.6
468.1
475.6
475.8
482.4
486.2
487.5
491.6
497.0
500.7
510.2

694.8
698.0
711.3
723.4
726.8
737.2
744.3
747.3
754.0
762.4
768.4
781.5

49.1
49.1
49.5
50.1
50.5
51.0
51.9
51.9
51.9
52.2
52.7
53.5

177.0
170.9
172.4
177.0
173.9
177.4
178.7
177.3
179.1
180.2
181.8
186.9

135.7
131.1
132.4
135.8
133.2
135.8
136.4
135.0
136.0
136.4
137.3
141.1

39.8
38.3
38.4
39.7
39.1
40.0
40.7
40.7
41.4
42.1
43.0
44.1

26.8
27.3
28.0
27.1
27.4
28.3
29.3
31.0
31.9
33.5
33.6
33.8

207.0
212.3
218.2
221.4
224.0
225.7
226.4
227.3
228.7
231.1
232.6
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

234.8
238.4
243.2
247.8
251.0
254.8
258.1
259.8
262.4
265.4
267.7
271.3

6.8
8.5
5.5
5.6
8.0
5.5
7.0
7.0
7.7
5.4
4.0
6.9

1972 —Jan...
Feb...
Mar. .
Apr...
May..
June..
July. .
Aug. .
Sept. .
Oct...
Nov. .
Dec...

240.9
234.6
237.4
242.8
238.1
241.9
245.3
244.5
247.8
250.5
253.9
262.7

481.8
479.4
486.1
493.6
491.8
497.7
502.6
504.5
509.5
514.7
518.6
530.3

757.6
759.4
771.2
783.0
784.0
794.1
803.1
807.5
816.1
825.0
831.7
847.4

515.5
513.1
519.4
527.3
526.7
533.5
539.4
544.0
550.5
5^6.5
561.7
574.5

791.3
793.0
804.5
816.7
818.9
829.8
839.8
847.1
857.0
866.8
874.7
891.6

52.5
52.6
53.1
53.5
53.9
54.4
55.1
55.1
55.3
55.7
56.7
57.9

188.4
182.1
184.3
189.3
184.2
187.5
190.3
189.5
192.5
194.8
197.1
204.8

142.3
137.5
139.4
143.0
138.8
141.0
142.7
141.7
143.6
145.0
146.4
152.1

44.6
43.2
43.7
45.1
44.3
45.4
46.4
46.8
47.9
48.8
49.7
51.4

33.7
33.6
33.4
33.7
34.9
35.8
36.8
39.5
41.0
41.8
43.1
44.2

240.9
244.8
248.7
250/9
253.7
255.8
257.3
260.0
261.8
264.2
264.7
267.6

274.6
278.4
282.0
284.5
288.6
291.5
294.0
299.5
302.7
306.0
307.8
311.8

275.8
280.0
285.1
289.4
292.2
296.4
300.4
303.0
306.5
310.3
313.1
317.0

7.4
7.4
7.9
7.7
10.5
6.9
7.3
5.3
6.0
6.7
6.3
7.4

1973 —Jan.. .
Feb...
Mar. .
Apr...
May..
June..
July. .
Aug. .
Sept. .
Oct...
Nov. .
Dec...

263.2
254.8
255.2
260.5
257.5
263.1
265.2
262.6
263.5
265.6
270.4
278.3

535.2
530.0
534.3
542.2
541.7
548.5
551.2
551.5
553.8
559.4
565.0
576.5

856.9
855.3
863.6
874.7
876.2
886.7
891.3
890.3
893.0
900.1
907.2
921.8

580.1
578.1
587.8
598.2
600.1
607.8
612.9
619.3
622.8
626.0
629.3
640.5

901.8
903.3
917.0
930.7
934.6
946.0
953.1
958.2
962.0
966.8
971.5
985.8

56.8
56.8
57.4
58.3
58.7
59.4
60.0
60.0
60.1
60.4
61.5
62.7

206.4
198.0
197.7
202.3
198.8
203.7
205.2
202.5
203.4
205.2
208.9
215.7

152.4
145.8
145.3
148.5
145.3
148.7
149.2
147.4
147.8
149.2
151.2
156.5

51.6
49.8
50.1
51.6
51.1
52.4
53.2
52.7
53.3
53.8
55.1
56.3

44.9
48.1
53.5
56.0
58.4
59.3
61.8
67.8
69.0
- 66.6
64.3
64.0

272.0
275.2
279.1
281.6
284.3
285.3
286.0
288.9
290.3
293.7
294.7
298.2

316.9
323.3
332.6
337.6
342.7
344.7
347.8
356.7
359.3
360.3
359.0
362.2

321.7
325.2
329.3
332.5
334.5
338.2
340.2
338.9
339.2
340.8
342.2
345.3

8.1
9.9
10.4
8.3
8.7
7.1
6.5
4.1
5.3
6.0
4.3
6.3

1974—Jan.. .
Feb...
Mar. .
Apr...
May..
June..
July. .
Aug. .
Sept. .
Oct...
Nov. .
Dec...

276.9
269.3
271.5
277.0
271.6
277.0
279.0
276.4
278.0
280.1
284.2
291.3

580.5
577.6
583.9
592.3
588.3
595.3
598.2
597.5
599.3
604.7
608.8
617.5

929.3
929.0
939.7
950.8
946.6
955.8
960.1
957.8
959.7
966.3
971.7
983.8

646.3
643.6
650.6
664.1
665.5
674.9
681.0
684.6
688.1
693.5
695.9
708.0

995.1
995.1
1,006.3
1,022.6
1,023.8
1,035.4
1,042.9
1,044.9
1,048.5
1,055.1
1,058.8
1,074.3

61.6
61.9
62.7
63.5
64.1
64.8
65.3
65.7
65.8
66.4
67.9
69.0

215.3
207.4
208.8
213.5
207.4
212.2
213.7
210.7
212.2
213.7
216.4
222.2

155.8
150.4
151.6
154.8
150.2
152.7
153.8
151.7
152.7
153.7
155.4
159.7

56.6
54.4
54.4
56.0
54.6
55.9
56.2
55.8
56.3
56.8
57.3
58.5

65.8
66.1
66.7
71.8
77.2
79.6
82.8
87.1
88.7
88.8
87.1
90.5

303.6
308.3
312.4
315.3
316.7
318.3
319.2
321.1
321.3
324.6
324.6
326.3

369.4
374.3
379.1
387.1
393.9
397.9
402.0
408.2
410.1
413.3
411.7
416.7

348.8
351.4
355.8
358.5
358.3
360.5
361.8
360.3
360.4
361.6
362.9
366.3

8.1
6.6
6.4
6.0
7.6
6.1
5.4
4.0
5.5
3.7
3.4
4.9

1975-—Jan...
Feb...
Mar. .
Apr...
May..
June..
July. .
Aug. .
Sept. .
Oct...
Nov. .
Dec...

287.7
278.5
281.4
286.5
282.9
290.3
292.1
290.0
291.7
292.4
297.6
303.4

619.5
615.2
622.7
631.1
631.9
643.5
647.8
647.2
649.5
653.0
659.7
668.4

990.3
990.3
1,005.0
1,020.0
1,025.7
1,044.5
1,055.0
1,057.1
1,062.8
1,070.3
1,080.1
1,093.6

711.4
704.4
710.8
716.9
716.0
725.8
729.1
728.4
732.2
736.8
742.5
751.8

1,082.2
1,079.6
1,093.1
1,105.8
1,109.8
1,126.8
1,136.3
1,138.3
1,145.5
1,154.0
1,162.9
1,177.1

67.8
67.8
68.8
69.1
70.0
71.2
71.9
72.1
71.9
72.5
73.9
75.0

219.9
210.6
212.6
217.4
212.9
219.1
220.3
217.8
219.9
219.9
223.6
228.4

158.2
151.8
153.4
156.9
153.4
157.2
157.9
155.8
157.0
156.6
158.9
162.1

58.2
55.7
56.0
57.4
56.6
58.9
59.4
59.0
59.7
60.3
61.5
62.9

91.9
89.2
88.1
85.8
84.1
82.3
81.3
81.1
82.7
83.7
82.9
83.5

331.9
336.7
341.4
344.6
349.1
353.2
355.7
357.3
357.7
360.7
362.1
365.0

423.8
425.9
429.4
430.4
433.2
435.5
436.9
438.4
440.5
444.4
444.9
448.4

370.8
375.2
382.3
388.9
393.8
401.0
407.2
409.9
413.3
417.2
420.4
425.2

4.0
3.3
3.8
4.0
4.1
4.2
3.4
2.7
3.9
3.4
3.5
4.2




88

Membership of the Board of Governors
of the Federal Reserve System, 1913-76
APPOINTIVE MEMBERS 1
Name

Federal Reserve
district

Charles S. Hamlin

Boston

Paul M. Warburg
Frederic A. Delano
W. P. G. Harding
Adolph C. Miller

New York
Chicago
Atlanta
San Francisco

Aug. 10,

1914

do
do
do
do
Oct. 26,
, Nov. 10,
June 8,

1918
1919
1920

Sept. 29,
. Cleveland
Minneapolis ... . May 12,
Mar. 14,
. Chicago
. May 1,
. Cleveland
.St. Louis
May 14,

1920
1921
1923
1923
1923

do
4,
16,
18,
19,
14,

1927
1930
1931
1933
1933

J. J. Thomas
Marriner S. Eccles

.. Kansas City ...
do
San Francisco .,. Nov. 15,

1934

Joseph A. Broderick
John K. McKee
Ronald Ransom

.. New York
.. Cleveland
.. Atlanta

Ralph W. Morrison
Chester C. Davis

..Dallas
.. Richmond

Albert Strauss
Henry A. Moehlenpah
Edmund Piatt
David C. Wills
John R. Mitchell
Milo D. Campbell
Daniel R. Crissinger
George R. James

. New York
.. . Chicago
. New York

Date of initial
oath of office

Edward H. Cunningham . . Chicago
Minneapolis ... . Oct.
Roy A. Young
Sept.
. New York
Eugene Meyer
, Kansas City ... . May
Wayland W. Magee
,. Atlanta
. May
Eugene R. Black
.. Chicago
. June
M. S. Szymczak

Ernest G. Draper
New York
Rudolph M. Evans
Richmond
James K. Vardaman, Jr. ..St. Louis
Lawrence Clayton
Boston
Thomas B. McCabe
Philadelphia
Edward L. Norton
Atlanta
Oliver S. Powell
Minneapolis
Wm. McC. Martin, Jr. . . . N e w York

Feb.

3,
do
do

1936

Feb. 10,
..June 25,

1936
1936

30,
14,
4,
14,
15,
1,
do
Apr. 2,

1938
1942
1946
1947
1948
1950

Mar.
Mar.
Apr.
Feb.
Apr.
Sept.

A. L. Mills, Jr

San Francisco ..Feb.

J. L. Robertson

Kansas City

For notes see opposite page.




18,
do

1951
1952

Other dates and information
to membership2

relating

Reappointed in 1916 and 1926. Served
until Feb. 3, 1936. 3
Term expired Aug. 9, 1918.
Resigned July 21, 1918.
Term expired Aug. 9, 1922.
Reappointed in 1924. Reappointed in
1934 from the Richmond District.
Served until Feb. 3, 1936. 3
Resigned Mar. 15, 1920.
Term expired Aug. 9, 1920.
Reappointed in 1928. Resigned Sept.
14, 1930.
Term expired Mar. 4, 1921.
Resigned May 12, 1923.
Died Mar. 22, 1923.
Resigned Sept. 15, 1927.
Reappointed in 1931. Served until Feb.
3, 1936. 3
Died Nov. 28, 1930.
Resigned Aug. 31, 1930.
Resigned May 10, 1933.
Term expired Jan. 24, 1933.
Resigned Aug. 15, 1934.
Reappointed in 1936 and 1948. Resigned May 31, 1961.
Served until Feb. 10, 1936. 3
Reappointed in 1936, 1940, and 1944.
Resigned July 14, 1951.
Resigned Sept. 30, 1937.
Served until Apr. 4, 1946. 3
Reappointed in 1942. Died D e c . 2,
1947.
Resigned July 9, 1936.
Reappointed in 1940. Resigned Apr.
15, 1941.
Served until Sept. 1, 1950. 3
Served until Aug. 13, 1954. 3
Resigned Nov. 30, 1958.
Died Dec. 4, 1949.
Resigned Mar. 31, 1951.
Resigned Jan. 31, 1952.
Resigned June 30, 1952.
Reappointed for term beginning Feb. 1,
1956. Term expired Jan. 31, 1970.
Reappointed in 1958. Resigned Feb. 28,
1965.
.Reappointed for term beginning Feb. 1,
1964. Resigned Apr. 30, 1973.

Membership of the Board of Governors, 1913-76

Name

Federal Reserve
district

Date of initial
oath of office

Paul E. Miller
Minneapolis ... . Aug. 13,
C. Canby Balderston . . . , Philadelphia ... . Aug. 12,
Mar. 17,
Chas. N. Shepardson . . . ..Dallas
.. Atlanta
. Mar. 25,
G. H. King, Jr

1954
1954
1955
1959

George W. Mitchell

.. Chicago

. Aug. 31,

1961

J. Dewey Daane
Sherman J. Maisel
Andrew F. Brimmer
William W. Sherrill

Nov. 29,
.. Richmond
San Francisco . . Apr. 30,
, Philadelphia ... .Mar. 9,
May
..Dallas
1,

1963
1965
1966
1967

.. New York
Arthur F. Burns
.. St. Louis
John E. Sheehan
San Francisco .
Jeffrey M. Bucher
Robert C. Holland
,. Kansas City ...
Henry C. Wallich
.. Boston
Philip E. Coldwell
..Dallas
Philip C. Jackson, Jr. .. .. Atlanta
J. Charles Partee
.. Richmond
Stephen S. Gardner
Philadelphia ...
CHAIRMEN 4
Charles S. Hamlin ...Aug.
W. P. G. Harding ...Aug.
Daniel R. Crissinger May
Roy A. Young
Oct.
Eugene Meyer
Sept.
Eugene R. Black
May
Marriner S. Eccles ..Nov.
Thomas B. McCabe..Apr.
Wm. McC. Martin, Jr. Apr.
Arthur F. Burns
Feb.

10,
10,
1,
4,
16,
19,
15,
15,
2,
1,

1914-Aug.
1916-Aug.
1923-Sept.
1927-Aug.
1930-May
1933-Aug.
1934-Jan.
1948-Mar.
1951-Jan.
1970-

. Jan.
Jan.
. June
. June
Mar.
Oct.
July
Jan.
. Feb.

9,1916.
9,1922.
15,1927.
31,1930.
10.1933.
15.1934.
31,1948.
31,1951.
31,1970.

31,
4,
5,
11,
8,
29,
14,
5,
13,

1970
1972
1972
1973
1974
1974
1975
1976
1976

Other dates and information
to membership2

89

relating

Died Oct. 21, 1954.
Served through Feb. 28, 1966.
Retired Apr. 30, 1967.
Reappointed in 1960. Resigned Sept.
18, 1963.
Reappointed for term beginning Feb. 1,
1962. Served until Feb. 13, 1976. 3
Served until Mar. 8, 1974. 3
Served through May 31, 1972.
Resigned Aug. 31, 1974.
Reappointed for term beginning Feb. 1,
1968. Resigned Nov. 15, 1971.
Term began Feb. 1, 1970.
Resigned June 1, 1975.
Resigned Jan. 2, 1976.

VICE CHAIRMEN 4
Frederic A. Delano.. .Aug.
Paul M. Warburg
Aug.
Albert Strauss
Oct.
Edmund Piatt
July
J. J. Thomas
Aug.
Ronald Ransom
Aug.
C. Canby Balderston Mar.
J. L. Robertson
Mar.
George W. Mitchell.. May
Stephen S. Gardner ..Feb.

10,
10,
26,
23,
21,
6,
11,
1,
1,
13,

1914-Aug.
1916-Aug.
1918-Mar.
1920-Sept.
1934-Feb.
1936-Dec.
1955-Feb.
1966-Apr.
1973-Feb.
1976-

9,
9,
15,
14,
10,
2,
28,
30,
13,

1916
1918
1920
1930
1936
1947
1966
1973
1976

CURRENCY
1914-Mar. 2,
1921-Apr. 30,
1923-Dec. 17,
1924-Nov. 20,
1928-Sept. 20,
1933-Feb. 1,

1921
1923
1924
1928
1932
1936

EX-OFFICIO MEMBERS 1
SECRETARIES OF THE TREASURY
W. G. McAdoo
Dec. 23, 1913-Dec. 15, 1918
Carter Glass
Dec. 16, 1918-Feb. 1, 1920
David F. Houston ...Feb.
2, 1920-Mar. 3, 1921
Andrew W. Mellon ..Mar. 4, 1921-Feb. 12, 1932
Ogden L. Mills
Feb. 12, 1932-Mar. 4, 1933
William H. Woodin Mar. 4, 1933-Dec. 31, 1933
1, 1934-Feb. 1, 1936
Henry Morgenthau, Jr.Jan.

COMPTROLLERS OF THE
John Skelton Williams Feb. 2,
Daniel R. Crissinger Mar. 17,
Henry M. Dawes ....May
1,
Joseph W. Mcintosh Dec. 20,
J. W. Pole
Nov. 21,
J. F. T. O'Connor ..May 11,

1
Under the provisions of the original Federal Reserve Act the
Federal Reserve Board was composed of seven members, including five appointive members, the Secretary of the Treasury,
who was ex-officio chairman of the Board, and the Comptroller
of the Currency. The original term of office was 10 years, and
the five original appointive members had terms of 2, 4, 6, 8,
and 10 years, respectively. In 1922 the number of appointive
members was increased to six, and in 1933 the term of office
was increased to 12 years. The Banking Act of 1935, approved
Aug. 23, 1935, changed the name of the Federal Reserve Board
to the Board of Governors of the Federal Reserve System and
provided that the Board should be composed of seven appointive
members; that the Secretary of the Treasury and the Comptroller

of the Currency should continue to serve as members until Feb.
1, 1936; that the appointive members in office on the date of
that Act should continue to serve until Feb. 1, 1936, or until
their successors were appointed and had qualified; and that
thereafter the terms of members should be 14 years and that the
designation of Chairman and Vice Chairman of the Board should
be for a term of 4 years.
2
Date after words "Resigned" and "Retired" denotes final
day of service.
3
Successor took office on this date.
4
Chairman and Vice Chairman were designated Governor and
Vice Governor before Aug. 23, 1935.




90

Statements to Congress
Statement by Arthur F. Burns, Chairman,
Board of Governors of the Federal Reserve
System, before the Subcommittee on Financial
Institutions Supervision, Regulation, and Insurance of the Committee on Banking, Currency, and Housing, U.S. House of Representatives, January 21, 1976.
I am pleased to have this opportunity to present
the views of the Board of Governors on Title
V of the committee's "Discussion Principles"—the part concerned with reorganization
of the Federal Reserve System.
Let me, first of all, congratulate this committee, and Chairmen Reuss and St Germain in
particular, for the leadership you have shown
in undertaking what could become one of the
historic studies in the field of regulation of
financial institutions. Your committee's study,
Financial Institutions and the Nation's Economy
(FINE), has focused attention on areas that are
of great importance to the economic health of
our Nation. We at the Board of Governors stand
ready to assist you in any way we can.
I am here to present the Board's views on
proposals in your Discussion Principles that call
for changes in the structure of the Federal Reserve System. These recommendations are farreaching and, if adopted by the Congress, would
fundamentally alter the character of the Federal
Reserve. Consequently, it is important to examine the premises on which these recommendations are based before turning to an evaluation of specific suggestions for change.
The first premise is that the Federal Reserve
is essentially a "bankers' bank" whose control
rests largely in the hands of financial and industrial interests. The second premise is that the
Federal Reserve is not sufficiently "responsive"
to the needs of all elements of our society and
that the System should be revamped to make
it more "responsive."




I take strong issue with these premises. The
first reflects a basic misconception of the Federal
Reserve. The second, I believe, is simply an
argument that there should be more political
control over the monetary policy functions of
the Federal Reserve. I do not think that such
a radical revision of our longstanding concept
of the proper status of a central bank would be
in the public interest.
It is perfectly true, of course, that the Federal
Reserve is, in some of its functions, a "bankers'
bank." Indeed, the Congress created it for just
that reason—that is, to serve as a source of
liquidity for our Nation's banking system and
to hold the reserves of member banks. The
charge that this relationship results in "control"
of the System by bankers, however, is erroneous. This premise appears to be based primarily
on the fact that member banks own the stock
of the Federal Reserve Banks and elect twothirds of the directors of the Reserve Banks.
At a later point, I shall address the proposals
in the Discussion Principles relating to the
ownership of Federal Reserve Bank stock and
the election of Reserve Bank directors. For the
present, I cannot be more emphatic when I say
that the control of the Federal Reserve System
resides firmly with the Board of Governors.
The members of the Board, having been
appointed by the President and confirmed by the
Senate, take with utmost seriousness their responsibility to serve the best interests of the
American people. I know it is fashionable to
charge Federal regulatory agencies with being
"captives" of the industries that they regulate;
but people who follow closely the activities of
the Federal Reserve Board—particularly those
who are aware of the feelings of members of
the banking industry about many actions of the
Board—should know that this charge is not
applicable to the Federal Reserve.
The claim that the Federal Reserve is not

Statements to Congress

"responsive" to all segments of American society requires careful analysis. I fear that
"responsiveness," as that term is often used,
is no more than a euphemism for susceptibility
to control. Many who claim the System should
be more "responsive" really mean that the
Federal Reserve's judgments on monetary policy should be subject to some measure of political direction exercised in behalf of particular
interest groups. Those who hold this view often
tend to favor more and easier credit and are
therefore generally opposed to the concept of
an independent central bank.
There is a clear distinction, however, between
being "responsive" to the demands of special
interest groups and being sensitive to the needs
of the various elements of our society. The
Federal Reserve has been extremely sensitive
to the impact its decisions may have on different
segments of our society. The Board frequently
must make very difficult judgments, however,
and it is almost inevitable that our decisions will
displease some or at times even many of our
people. But this is no reason to initiate fundamental changes in the System. Some of the
constructive effects of monetary policy take time
to emerge, and it is therefore important to judge
monetary policy over a broad time frame. The
great virtue of an independent monetary authority is that it is able to make objective and
informed judgments about these troublesome
matters—free from the transitory pushes and
pulls of the political process.
The Federal Reserve is, of course, a creation
of the Congress. It is clearly within the power
of the Congress to alter the legal basis of the
Federal Reserve System and, if it so desires,
to assume for itself more direct responsibilities
for the day-to-day formulation of monetary policy. In considering such changes, however, I
believe that members of the Congress will want
to weigh carefully any action that would impair
the objectivity of the Nation's monetary authority and its ability to make the difficult decisions
necessary in formulating monetary policy.
One may differ with the Board's judgments
on monetary policy matters, and one may even
believe that the Congress erred in conferring
such independence upon the Federal Reserve.
But there should be no misunderstanding about




91

the implication of the Discussion Principles: If
the Congress now sees fit, after more than 60
years of experience, to abandon the concept of
a truly independent central bank, then the Congress itself must be willing to assume both the
burden and the responsibility of formulating
monetary policy.
The Discussion Principles make several specific charges against the Federal Reserve that
are apparently intended to support the basic
premise that the System should be more
"responsive." It is argued, for example, that
monetary policy is shaped largely in secret. This
charge apparently stems from the fact that discussions on monetary policy are held at closed
sessions of the Board and of the Federal Open
Market Committee. But this fact does not mean
that the Federal Reserve is unaware of the views
and needs of those who are affected by our
decisions. During these meetings we consider
in detail a broad range of information: the
studies by our staff, comments from the Reserve
Banks and their boards of directors, data and
views submitted for our consideration by members of the Congress and other Government
officials, opinions expressed by academicians,
journalists, and representatives of various segments of the public—all of these are taken into
account by members of the Board. Because of
the sensitive nature of our discussions and the
decisions th$t we must make, it is absolutely
essential that these meetings be held in closed
session. To do otherwise would be a disservice

to the public interest, for premature disclosure
of our discussions and decisions could severely
disrupt financial markets.
It is Federal Reserve policy to disclose our
decisions as quickly as possible. To this there
is only one exception—the lag of 45 days in
publishing the short-run targets of the Federal
Open Market Committee. The basic purpose of
this lag is to deny sophisticated market watchers
an opportunity to gain undue advantage over an
unwary public. Apart from this delay, decisions
on changes in the discount rate, on bank reserve
requirements, and on stock market margin requirements, also all regulatory rulings, are announced promptly by the Board—usually the
same day that the actions are taken. Also, data
on financial operations of the Federal Reserve,

92

Federal Reserve Bulletin • February 1976

the conditions of member banks, the money
supply, interest rates, and other financial variables, are released regularly and with great
frequency. The Board submits regular and frequent reports to the Congress on economic and
financial matters. Indeed, the detail in which
financial data are published is greater than for
any other central bank in the world.
The Discussion Principles also contend that
congressional involvement in monetary policy
decisions has been largely peripheral. Whatever
may have been true in the past, this premise
is certainly invalid today. In my experience at
the Federal Reserve, the Congress has never
been lax in exercising its oversight of the System or in providing us with its views. Only last
year, the Congress revamped its oversight procedure with the adoption of House Concurrent
Resolution 133, which this committee helped
to draft. This resolution provides for four regular appearances by the Federal Reserve each
year before the Banking Committees solely to
discuss monetary policy. We take implementation of this resolution very seriously. I have
already appeared before the Banking Committees on three occasions and expect to testify
early next month before this committee in response to that resolution. I have found that these
discussions add an important dimension to the
Board's deliberations on monetary policy.
In addition to these appearances, we are frequently asked to testify on a wide range of
financial subjects before this and other committees of the Congress, including the newly
formed Senate and House Budget Committees.
Last year, for example, I testified formally before the Congress on 17 separate occasions, and
my colleagues on the Board appeared before
congressional committees on 23 other occasions. I also have frequent meetings with members of the Congress to discuss questions of
mutual concern, and the amount of correspondence we have with members of the Congress—not simply on constituents' inquiries but
on fundamental policy issues—is voluminous.
In other words, congressional involvement with
the Federal Reserve is substantial and is taken
very seriously by the Board.
Finally, it is claimed that the operation of the
Federal Reserve is "incoherent" and that its




present structure fails to pinpoint responsibility
for monetary policy. I believe this charge reflects unfamiliarity with the structure and
operation of the System. There is no uncertainty
as to the responsibility for monetary policy
judgments within the Federal Reserve. It rests
ultimately with the seven members of the Board
of Governors. Under existing law, the Board
has exclusive responsibility for changes in reserve requirements, margin requirements, and
banking regulations. Changes in the discount
rate originate at the Reserve Banks but require
explicit approval of the Board of Governors, and
we examine every proposal for change with
great care. Open market decisions are made by
the Federal Open Market Committee (FOMC),
which consists of the seven members of the
Board of Governors and five Reserve Bank
Presidents. The structure of the FOMC avoids
complete centralization of monetary policy decisions in Washington, but the Board members
are plainly in the majority on that body and the
Chairman of the Board serves also as Chairman
of the FOMC. Thus, far from being "incoherent," the operation of the System and the responsibility for decision-making within the
System are clearly determined by the Federal
Reserve Act itself.
A change in the basic structure of a government agency—such as proposed in the Discussion Principles—is justified only when some
major defect has been discovered in its structure. This is not the case with the Federal
Reserve. On the contrary, its structure has enabled it to serve the country well through the
years, and there is no need to change it at the
present time.
The Federal Reserve System, as you know,
was established more than 60 years ago. If a
fresh start were made, the Congress might devise a structure similar to what we now have
or perhaps move in a quite different direction.
Before I joined the Boarcf of Governors in early
1970, I thought I saw all sorts of opportunities
for change in the System. But I soon realized
that the structure whose basic shape was devised
by Woodrow Wilson, Carter Glass, and Robert
Latham Owen worked quite well.
In establishing the Federal Reserve, the Congress deliberately decided that the national in-

Statements to Congress

terest required that the central bank be insulated
from political pressures stemming either from
the Congress or the White House. The Congress, therefore, charged the Federal Reserve
with broad responsibility to protect the Nation's
money and to foster its effective use.
I want to turn now to certain specific suggestions that are set forth in the Discussion Principles for reorganizing the Federal Reserve
System. Two features of this reorganization plan
are fundamental, and I shall devote the greater
part of my remaining testimony to them.
The first of these proposed changes is to strip
the Federal Reserve of all responsibilities in the
area of bank regulation and supervision. Under
the proposed plan, the Federal Reserve would
confine its activities mainly to the sphere of
monetary policy. Its regulatory functions, apart
from those involving the payments mechanism,
would be transferred to a new body—the Federal Depository Institutions Commission.
In testimony before this committee last December, Governor Holland presented the
Board's position on this proposed fundamental
change. It is the Board's judgment that the
Federal Reserve, as the Nation's central bank,
must be closely involved in the processes of
bank regulation and supervision. These processes inevitably have an impact on general
economic and financial conditions. If the Federal Reserve played no part in this activity, there
is a danger that monetary policies and regulatory
policies could be working at cross purposes. For
example, since the growth of loan commitments
by banks has a significant bearing on the availability of bank credit to business firms, the
Federal Reserve must watch closely the movements of these commitments. Such commitments could increase very sharply if bank
supervisors paid little attention to them, and
could force the Federal Reserve to pursue a
more expansionary monetary policy than it
would otherwise deem appropriate.
Now, more than ever, the Federal Reserve's
role in formulating monetary policy and as
lender of last resort interacts with its role as
a bank supervisor and regulator. Each of these
areas of public policy influences the effectiveness of the other. To separate them will
weaken both.




93

The second fundamental change proposed by
the Discussion Principles is to eliminate the
separate status of the Federal Reserve Banks and
to make them simply regional offices of the
Board. The stock of the Federal Reserve Banks
would be retired; their boards of directors would
be eliminated; and the Reserve Bank Presidents
would be appointed by the President, subject
to Senate confirmation, and they would be paid
the same salary as members of the Board of
Governors. The role of the Reserve Banks in
monetary policy would then be purely advisory.
The Banks, in turn, would be advised by newly
established advisory committees.
Retiring stock of the Federal Reserve Banks
would accomplish little of practical importance.
While this stock carries certain voting rights,
it limits the holder to a statutory dividend, the
amount of stock a member bank must own is
fixed by law, and this stock cannot be transferred or encumbered. Thus, it is by no means
the equivalent of stock in a private corporation.
On balance, the Board believes that ownership
of Reserve Bank stock is desirable because of
the incentive it provides to members to take an
interest in the operations and efficiency of the
System.
The other changes proposed by the Discussion Principles would not only weaken the
present machinery for developing monetary
policy but would also introduce a political
dimension into the selection of Federal Reserve
Bank officials. Moreover, they would curb the
strong impulses within the System to improve
the efficiency of the Federal Reserve Banks and
to keep down their operating costs.
The 269 Reserve Bank and branch directors
who now serve the System are highly qualified
citizens drawn from many walks of life and from
all parts of the country. Some are bankers, as
contemplated by law, others are industrialists,
merchants, farmers, attorneys, university presidents, and professors. They are deeply interested in our country and its economic welfare.
They devote a great deal of time to the System,
keeping the officials of the Reserve Banks and
the Board informed on a regular, systematic
basis about actual and prospective developments
in their businesses, their industries, and their
communities. I seriously doubt that such devo-

94

Federal Reserve Bulletin • February 1976

tion and energy would be evoked by mere
participation in advisory committees such as
proposed in the Discussion Principles. Service
as a director of a Federal Reserve Bank carries
with it both prestige and recognition of accomplishment, and this has proved to be a significant incentive in attracting some of America's
finest citizens to the Federal Reserve System.
This is a resource that should not be abandoned
lightly.
Moreover, many of our directors are highly
experienced managers, and they have been
willing to put their managerial knowledge and
skills at the System's disposal. The benefits are
reflected in the sharp improvement of productivity in conducting System operations. The
measurable output of the Federal Reserve Banks
has approximately doubled in the past 8 years,
with only a 40 per cent increase in System
personnel. In fact, the total number of individuals employed by the System will be a little
lower in 1976 than it was in 1974, despite a
large increase in the measurable volume of
Federal Reserve Bank operations.
The recommendations for selection and compensation of Reserve Bank Presidents would,
if followed, significantly diminish the interest
of many of the best qualified persons for these
important positions, and they would also interject transitory political considerations into the
selection process. Reserve Bank presidencies
are career positions within the Federal Reserve
System, and the ability to offer salaries somewhat comparable to those offered by private
enterprise enables us to attract highly qualified
people to the Reserve Banks.
Finally, removing the Reserve Bank Presidents from membership in the Federal Open
Market Committee would reduce regional involvement in the shaping of our Nation's monetary policy. The Reserve Bank Presidents not
only bring to the FOMC a degree of experience
and insight that would be lacking in a purely
centralized policy-making organization but they
also are an important source of knowledge and
informed opinion about regional interests and
needs. There is a clear difference between an
advisory role, as contemplated for the Reserve
Bank Presidents by the Discussion Principles,
and the role of a participant sharing respon-




sibility for policy-making. Removal of the
Presidents from the FOMC could have the effect
of making the Federal Reserve more introspective and less sensitive to public concerns—a
result opposite to that sought by the authors of
the Discussion Principles.
Let me turn now to a matter that I mentioned
earlier in my testimony—the selection of Federal Reserve Bank directors. In view of the
concern that has been expressed that the Federal
Reserve is "controlled" by banking and industrial interests, let me offer a suggestion that the
Board views as one way of minimizing this
misinterpretation.
Under the Federal Reserve Act, six of the
nine directors at each Reserve Bank are elected
by the member banks. Three of these directors
are typically bankers—the Class A directors—
while the other three—the Class B directors—
must at the time of their election be actively
engaged in commerce, agriculture, or some
other industrial pursuit in their district.
The remaining three directors—the Class C
directors—are appointed by the Board of Governors and are considered to be the public
directors. The Board appoints the chairman and
deputy chairman of each Reserve Bank from
among the Class C directors. In other words,
as presently constituted under the law, the Reserve Bank board of directors may be viewed
as representing lenders (Class A), borrowers
(Class B), and the public (Class C).
The Congress may wish to consider whether
responsibility for selecting Class B directors
should be shifted to the Board of Governors in
Washington. At the same time the Congress
might wish to specify that the boards of directors
encompass a broader range of interests than is
required under existing law.
This would mean that a majority of the directors at each Reserve Bank would be appointed
by the Board in Washington and would represent, so to speak, the public. It would be appropriate to allow member banks to continue
to elect bankers as directors, in light of the
burden that member banks bear in the implementation of monetary policy and the maintenance of reserve requirements. Even here,
however, there may be an opportunity for
broadening the selection process. If the recom-

Statements to Congress

mendation of the Discussion Principles for universal reserve requirements is adopted—and the
Board strongly endorses this recommendation—the selection of Class A directors might
be made by all member institutions that are
required to maintain reserves with the Federal
Reserve.
Let me now turn briefly to the remaining
proposals.
The Discussion Principles recommend reduction of the number of Board members from 7
to 5 and a reduction in their term of office from
14 to 10 years. We believe that retaining a
seven-member Board not only provides for a
broader range of significant skills and experience but also helps to accomplish in an efficient
way our ever-increasing workload. As to the
length of term, we believe that the Congress
has wisely recognized that a long term for Board
members would strongly encourage independence of thought and decision. We see no
reason to change that.
The Board has no basic objection to making
the term of the Chairman coterminous with that
of the President, but we would recommend a
lag of 6 to 12 months between the inauguration
of a new President and the expiration of the
Chairman's term of office. In this way, a Chairman could be selected in a deliberative manner,
apart from the political atmosphere that surrounds the selection of a new President's Cabinet. We also believe Senate confirmation of the
Chairman would be appropriate.
Neither would the Board object to amending
the Federal Reserve Act to make the Board
explicitly responsible for helping to achieve the
objectives of the Employment Act of 1946. We
already accept the Employment Act as a guiding
principle. If that Act were to be amended,
however, we would suggest that the Congress
also expressly declare general price stability to
be an objective of national economic policy.
The Federal Reserve and other Government
agencies have interpreted the Employment Act
to mean that a stable price level is an important
objective of public policy, but the Act is less
clear than it should be on this need. It would
be useful to remove any doubts about our national commitment to a stable price level.
As to the matter of an annual economic re


95

port, we already do much of what is recommended in the Discussion Principles, and we
stand ready to provide further reports that can
be helpful to the Congress. However, the suggestion that the Board be required to adjust its
monetary plans to the fiscal proposals of the
President is seriously deficient in failing to take
account of the new fiscal role of the Congress
under the Budget Reform Act. In addition, this
suggestion runs the risk of diminishing the
Board's independence by requiring the conditioning of its plans to the President's budget.
On the audit question, the Board remains
opposed to an audit by the General Accounting
Office for the reasons presented to the Banking
Committee in earlier testimony.
In summary, we believe firmly that it is in
the public interest to retain the concept of an
independent monetary authority, and we oppose
efforts to politicize the functioning of the Federal Reserve System. We also believe that the
procedure established by House Concurrent
Resolution 133 offers an excellent means for
promoting a continuing discussion of monetary
policy matters between the Congress and the
Federal Reserve. As I have noted, this procedure seems to be working well.
We see no compelling reasons to legislate
fundamental changes in the Federal Reserve at
this time because there is no evidence that the
System has failed to function well with its
present structure. However, the Board would
have no objection to changing the method for
selection of Class A and Class B directors and
providing explicitly for a greater diversity of
interests among directors. Nor would the Board
object to charging the Federal Reserve with
explicit responsibility to further the objectives
of the Employment Act of 1946, or adjusting
the term of the Chairman to conform roughly
to that of the President, or requiring Senate
confirmation of the Chairman.
Although the Board sees no difficulty with
some of the recommendations in Title V of the
Discussion Principles, we also see no clear or
decisive need to adopt any of them. Indeed there
are strong reasons, as I have indicated, for
opposing the key premises of this title. The
world's history is littered with the economic
wreckage caused by political domination of the

96

Federal Reserve Bulletin • February 1976

monetary function. Your predecessors in the
Congress acted wisely in providing a design for
the Federal Reserve that insulated it from politics. The Board urges you not to overturn a
structure that has stood so well the test of time
and experience.

I would again like to commend this committee for the thoughtful and careful approach you
are taking in your continuing study of Financial
Institutions and the Nation's Economy, and to
indicate our desire to be as helpful as we possibly can in assisting you in your efforts.
•

Statement by Robert C. Holland, Member,
Board of Governors of the Federal Reserve
System, before the Subcommittee on Financial
Institutions Supervision, Regulation, and Insurance of the Committee on Banking, Currency, and Housing, U.S. House of Representatives, January 22, 1976.

be acted on promptly within a longer-run
framework of legislative reform.
It has been the view of the Board of Governors that there should be coordinated changes
in our financial system designed to serve four
objectives: (1) increase competition; (2) improve the flexibility of financial institutions to
respond to changing needs of individuals and
businesses while (3) maintaining a base for
effective monetary policy, and (4) preserving a
sound and resilient financial system. Although
we may differ in detail, we believe that Title
I of the Discussion Principles provides a good
framework for the type of comprehensive legislation required.
It must be recognized that powerful forces
for change are at work within our financial
system. Pressures of competition, technological
advance, and customer demand for different and
expanded services are bringing about many
changes in the structure and operations of bank
and nonbank institutions. The most effective
role here for the Congress and the regulatory
agencies is one of channeling and containing
these developments within prudent limits.
For example, institutional changes already
under way are blurring the distinction between
demand deposits and time and savings accounts,
as well as the distinction between commercial
banks and other savings institutions. The public
is holding an ever larger share of its immediate
liquidity in interest-bearing deposit accounts.
Commercial banks and thrift institutions are in
direct competition for such balances.
On the other hand, during each period of
relatively high market interest rates, there has
been a shift of savings funds out of depositary
institutions into money market instruments in
order to maximize their earnings. Whenever

I am pleased to appear before this committee
on behalf of the Board of Governors of the
Federal Reserve System to discuss Title I of the
FINE1 "Discussion Principles" relating to depositary institutions.
In discussing the wide-ranging proposals of
Title I, I think it might be most helpful to the
committee if I summarize the Board's views,
pointedly but rather briefly, and then stand
prepared to answer any questions you might
have. Some of these views are not supported
by all members of the Board, but all are supported by a majority of the Board.
When I appeared before your committee last
December to testify on Title IV relating to the
regulatory agencies, I noted that your study
wisely recognizes the interrelation of many segments of the Discussion Principles. The Board
believes this interrelation is particularly significant in considering Title I relating to depositary
institutions, and we support the opening statement of Title I that " A coordinated approach
is needed to strengthen our depository institutions."
However, a coordinated approach does not
necessarily mean that all such legislation has
to be enacted at the same time. In our view
there are measures, some of which I will refer
to in the course of my testimony, that should
1

Financial Institutions and the Nation's Economy.




Statements to Congress

Regulation Q imposes below-market-rate ceilings, this movement will undoubtedly re-emerge
as individuals become ever more financially
sophisticated.
For the sake of simple equity to savers, as
well as practicality and efficiency, removal of
such ceilings is a desirable goal. To be sure,
existing rate ceilings could be rendered both
ineffective and unnecessary by a sufficient decline in market interest rates. Absent such a
major downward adjustment in market rates,
however, deposit rate ceilings should only be
removed in stages over a period of time, during
which thrift institutions—and perhaps some
small commercial banks as well—could diversify their investment portfolios appropriately.

ASSET AND LIABILITY POWERS
OF THRIFT INSTITUTIONS
Proposals 2 (Sources of Funds), and 3 (Uses
of Funds) in Title I of the FINE Discussion
Principles provide a means for gradually dealing
with this problem. We are in general agreement
with these proposals for broadening the investment powers of thrift institutions. Such broader
powers would allow them to invest in a mix
of assets on which the return is more responsive
to market interest rates. With more diversified
asset holdings, thrift institutions in time would
be in a better position to pay competitive rates
to savers at times when market rates were rising,
and problems of disintermediation would
thereby be diminished. To this extent, there
should be greater stability of flows of funds to
thrift institutions, more stable flows of funds to
housing finance, a more equitable return to the
individual saver during periods of high interest
rates, more alternative borrowing sources for
consumers, and a broader range of instruments
and loan terms available to consumers.
Although the Board supports expanded consumer lending powers (including the issuance
of credit cards and the establishment of revolving lines of credit) and authority to invest in
commercial paper, corporate debt, and bankers
acceptances for thrift institutions, we believe
that it would be preferable to provide for a
gradual implementation of these powers. The



97

Board is concerned that the proposed asset diversification could have an adverse impact on
housing finance that might not be offset in timely
fashion by other proposals in the Discussion
Principles. Gradual transition authority would
assure that diversification would not have a
sudden impact on housing finances and would
permit adjustments to be made to deal with any
stresses that might result from the expanded
powers; by the same token, of course, it would
also prolong the transition period during which
the thrift institutions are gaining competitive
vitality.
Such a gradual implementation would be
consistent with the proposed step-by-step approach to the removal of deposit interest rate
ceilings. The Board supports the gradual phasing out of the authority to regulate time deposit
interest rates. Because of the uncertainties of
financial conditions in years ahead and because
of the difficulties many institutions could experience in making the needed adjustment to
competition to interest rates, we believe it would
be wise to afford an opportunity for final review
prior to the termination of this authority. We
also believe it would be important to retain the
authority to reimpose interest rate ceilings
should a financial emergency arise.
The Board believes that the statutory prohibition against payment of interest on demand
deposits should not be lifted forthwith. That
prohibition is so deeply imbedded in the banking
structure that the decision to remove it should
be preceded by careful study of its possible
consequences and suitable preparation for dealing with the resulting adjustments, and in any
event such removal should be accomplished
gradually.
The Board also agrees with the Discussion
Principles' proposal to permit savings and loan
associations and mutual savings banks to offer
demand deposits and other third-party transfer
arrangements, so long as careful attention is
paid to competitive equality, particularly with
reference to monetary reserve requirements and
all other regulations applicable to deposit accounts at commercial banks.
The Board believes that a comparable expansion of the asset and liability powers of credit
unions is an appropriate long-range goal. In our

98

Federal Reserve Bulletin • February 1976

view, however, this increase in authority for
credit unions should be programmed on a stepby-step basis so that there can be some assurance of a reasonably smooth and safe adjustment
in their operations, and it should be subject to
appropriate safeguards.

RELATIONSHIP TO THE
FEDERAL RESERVE SYSTEM
Proposal 5 sets forth a recommendation for
reserve requirements that is similar to one made
by the Board to the Congress in our letter of
June 26 to Chairmen Reuss and St Germain.
We wholeheartedly approve of the Discussion
Principles' statement that all Federally insured
depositary institutions should be required to
meet reserve requirements on their deposit liabilities and that all reserves should be held at
the Federal Reserve.
The Board believes that the enactment of this
principle into law would bolster the effectiveness of monetary policy by maintaining and
even tightening the relationship between bank
reserves and the Nation's deposits. The task of
monetary policy is now complicated because
shifts in deposits between member banks and
nonmember institutions alter the relationship
between reserves under the control of the Federal Reserve and total deposits, which constitute
the major share of the Nation's money supply.
More importantly, withdrawals from Federal
Reserve membership are gradually reducing the
share of the Nation's total money supply that
is directly linked to monetary reserves. Management of money and credit would be made
more effective if required reserves against all
deposits were held either in balances at Reserve
Banks or in vault cash, since such reserves
would be immobilized and their total more
readily regulated by Federal Reserve actions.
Equity among competing institutions also requires that all institutions offering similar deposit services be subject to similar reserve requirements, particularly with the deposit functions served by the various institutions being
brought closer and closer together.
The Board believes that these changes should
be enacted promptly. To cushion resulting ad


justment, however, we favor the Discussion
Principles' proposed 5-year transition for institutions that are not subject to reserve requirements of the Federal Reserve at the time of
introduction of the legislation.
The Board also agrees that all depositary
institutions required to meet reserve requirements of the Federal Reserve should have
"direct, full and equitable access to Federal
Reserve services, including the discount window and wire transfer system." The Board
recommends that, in broadening access to the
discount window, the Congress also provide for
liberalization of the present collateral requirements. The law now precludes the use of some
sound assets and collateral at our discount window except at a penalty interest rate one-half
of 1 per cent above the discount rate. We believe
it would be useful to remove that penalty provision and thus eliminate an indirect restriction
on the portfolios of users of the discount window. For analogous reasons the Board is opposed to the proposal in the Discussion Principles that would bar the use of loans to foreign
borrowers as collateral at the discount window.
All sound assets should be available to help
serve this important collateralization role.

COMPETITION
The Board is in general agreement with the
philosophy of proposal 1 concerning chartering
and proposal 9 concerning branching, namely,
that there should be greater opportunity for the
formation of new institutions and branches to
provide needed financial services and enhance
competitive vigor. In carrying out its responsibilities under existing law, particularly the
Bank Holding Company Act, the Board has
consistently stressed the importance of improving competition and preventing any undue concentration of banking resources that would tend
to reduce competition.
We support the proposal that would permit
Federal chartering of mutual savings banks. We
also concur in the general principle that new
depositary institutions would be chartered "if
capital and other requirements," presumably
requirements relating to safety and soundness,

Statements to Congress

are met. The implication of this proposal is that
sheltering of existing financial institutions from
new competition should not be grounds for
denial of a new charter. We are in agreement
with this approach, so long as the new competition is fairly based. We believe, however, there
should be authority to deny a new charter that
might reduce competition, as a de novo charter
to a holding company that already accounts for
a major share of the relevant market.
The Board believes there are many instances
in which branching across State lines could be
procompetitive. However, the suggestion in
proposal 9 that interstate branching be authorized if it is not inconsistent with State law
would, in itself, probably not produce Federal
branching across State lines any time soon. A
roughly similar provision in the Bank Holding
Company Act has in practice served to confine
bank holding companies to acquisition of banks
within the State of their home office.
We believe Federal legislation to permit
branching across State lines should be confined
at present to areas where there is a pressing
competitive need or some other overriding public benefit to be gained. Such pressing need
exists for the Board's proposal to Chairmen
Reuss and St Germain of February 19, 1975,
providing for limited bank holding company
acquisitions across State lines in order to resolve
possible large failing bank cases in a manner
consistent with preserving competition. We
strongly urge prompt action on H.R. 4008,
which contains this proposal. Also in H.R. 4008
is the Board's requested authority to waive the
30-day waiting period for bank holding company acquisitions in emergencies or failing bank
situations. This provision, too, is needed now,
and it has the added distinction of having—so
far as we know—no expressed opposition to its
enactment.
The Board supports the objectives of proposal
10 to improve competitive equity and increase
competition by extending trust powers to qualified savings and loan associations, mutual savings banks, and credit unions. We believe that
such trust activities should be authorized, however, only upon a finding of the regulatory
authority that the institution is sufficiently large
and strong to support a trust department, and




99

we would add the requirement that they also
have qualified personnel.
Proposal 4, dealing with disclosure, also is
directed at improving competition by providing
depositors, borrowers, and investors with more
information than they now receive. The Board
agrees that adequate disclosure by financial institutions should be required in order to assist
the public, but it believes such disclosure requirements should take into account the special
characteristics of depositary institutions. In particular, disclosure should not impose reporting
burdens disproportionate to the usefulness of the
information, and it should guard against misinterpretation or "scare" effects to which banks
and other depositary institutions are particularly
vulnerable because so many of their liabilities
are withdrawable at a moment's notice. Given
these consicjerations, we conclude that the details of additional disclosure requirements are
best developed by the appropriate regulatory
agencies, in consultation with individuals and
organizations affected. Indeed, the Securities
and Exchange Commission and the Federal bank
regulatory agencies are presently hard at work
on this very task.
Appropriate public disclosure of the general
financial condition of depositary institutions is
desirable not only because it furthers competition but also because of the market discipline
it imposes on the management of those institutions. Some reinforcement of existing regulatory
discipline on the management of these institutions is also needed, as we see it. Accordingly,
the Board urges the Congress to give prompt
consideration to the joint recommendations of
the Board, the Federal Deposit Insurance Corporation, and the Comptroller of the Currency
submitted to the committee on September 5,
1975, all designed to help prevent or correct
problem situations. These recommendations include provision of civil penalties for several
violations where only criminal penalties now
exist, broadening the coverage of insider lending limitations, simplifying and making more
effective the officer removal authority, and authorizing, under certain limited circumstances
and subject to procedural safeguards, divestiture
or termination of a nonbanking activity by a
bank holding company.

100

Federal Reserve Bulletin • February 1976

OTHER PROPOSALS
The Board supports the principle of proposal
8 (Taxation) that as a matter of competitive
equity depositary institutions with similar asset
and liability powers should be subject to the
same Federal tax treatment.
Proposal 11 provides that banks be permitted
to engage in the underwriting of State and
municipal revenue bonds, but that the present
prohibitions on underwriting of corporate securities be retained.
Over the past two decades or so there have
been a number of bills introduced in the Congress to authorize bank underwriting and dealing
in revenue bonds. During this period numerous
arguments have been advanced both for and
against this proposal. The favorable arguments
generally focus on the benefits expected to accrue to governmental units in the form of lower
interest costs and improved market efficiency,
while the opposing arguments center on potential conflicts of interest and risks of market

Statement by Philip C. Jackson, Jr., Member,
Board of Governors of the Federal Reserve
System, before the Subcommittee on Financial
Institutions Supervision, Regulation, and Insurance of the House Committee on Banking,
Currency, and Housing, U.S. House of Representatives, January 22, 1976.
Thank you for the opportunity to appear on
behalf of the Board of Governors to take part
in the hearings on your committee's consideration of possible reforms in the structure and
performance of the Nation's financial institutions. Our comments on the implications for the
residential mortgage and real estate markets of
Title II of the FINE1 "Discussion Principles"
will build on the testimony presented earlier
today by Governor Holland on Title I dealing
with depositary institutions.
Before going into the details of the Discussion
Principles, I would like to make two general
points. The first is that inflation continues to be
1

Financial Institutions and the Nation's Economy.




concentration. The Board, on a number of occasions, has reviewed the question of extending
bank underwriting privileges to municipal revenue bonds of investment-grade quality, and
since 1967 has consistently voiced its belief that
the public benefits of such action outweigh any
potential risks. In view of recent developments
in the municipal securities markets, however,
the Board would wish to make a fresh study
of the situation before reaffirming its previous
position on this matter.
Finally, the Board agrees with proposal 12
that the Congress await the report from the
National Commission on Electronic Funds
Transfers before legislating further in the area
of new payment mechanisms.
I wish to thank you, Mr. Chairman, and the
members of your committee for this opportunity
to express the Board's views on the proposals
of Title I of the Discussion Principles. As
always, my colleagues on the Board and I stand
ready to be of whatever assistance we can in
the important work of this committee.
•

the chief enemy of the mortgage and housing
markets in our country. Inflation not only increases the cost of financing but it also disrupts
the supply of funds. It not only escalates the
price of homes but it may also reduce the
income, after allowing for other necessary expenses, which consumers have available to acquire new or better housing accommodations.
Unless the forces of inflation can be contained,
it is doubtful that any financial restructuring
could produce a mortgage market that will appropriately meet the housing needs of the
American public.
The second general point is that in recent
years the private sources of home mortgage
credit have become concentrated in the nonbank
thrift institutions. These particular lenders traditionally borrow short and lend long and thus
are highly vulnerable to the effects of inflation
and variations in general credit conditions. In
1960 thrift institutions held approximately 52
per cent of home mortgages outstanding. By
June 30, 1975, this proportion had grown to
60 per cent. In contrast, life insurance compa-

Statements to Congress

nies dropped during this same period from 18
per cent to 5 per cent. Commercial banks, on
the other hand, increased their share from 14
per cent to 18 per cent. Federal credit agencies
and mortgage pools grew from 5 per cent in
1960 to 12 per cent in mid-1975.
This trend was confirmed in 1975 by the
volume of new home loans extended. Over the
first three quarters of last year, savings and loan
associations and mutual savings banks together
accounted for 61 per cent of total long-term
home mortgage acquisitions. In comparison,
commercial banks supplied 15 per cent, with
Federal credit agencies and related mortgage
pools accounting for nearly all of the balance.
No other source of savings capital made a significant contribution to the home mortgage market.
When we consider the problem of inflation
as well as the concentration of housing credit
in institutions with volatile inflows of funds, it
is small wonder that home. buyers have been
plagued not only by volatility in the price of
mortgage money but also by a periodic scarcity
of money at any price. There are two overriding
considerations, then, that should be kept in mind
insofar as housing finance is concerned. One is
the need to further dampen the inflationary
forces in our economy that contribute to such
erratic fluctuations in both the demand for and
the supply of housing credit. The other is to
broaden and strengthen the sources of funds
available to finance housing at a variety of
investment outlets.
The expansion of investment powers of the
nonbank thrift institutions and the removal of
ceilings on deposit rates—as proposed in Title
I of the Discussion Principles—would make for
greater stability in the operations of savings and
loan associations and savings banks and would
produce a more even flow of mortgage funds
from them. Even though the proposed expansion
of deposit powers at thrift institutions may well
encourage a larger share of total savings to be
funneled through them, it is uncertain whether
there might be some decline over the longer run
in the supply of mortgage funds at institutions
that become more diversified. The result may
be that the cost of mortgage credit would rise
relative to yields on other investments. In that




101

event, other types of lenders would be encouraged to move more funds into mortgages.
This shift would lessen upward mortgage rate
pressures to some degree and help to reduce
short-run fluctuations in the cost and availability
of mortgage credit in the future.
Some of the FINE Study proposals in Title
II are designed primarily to moderate the possible impact of more competitive pricing on
mortgage borrowers. As these proposals are
considered, it is well to remember that similar
measures are already in effect in other forms.
Of these, the principal one is our system of
Government mortgage insurance and guaranty
through the Federal Housing Administration and
the Veterans Administration. Such programs
make mortgage terms more advantageous for
borrowers by pledging the faith and credit of
the Government in addition to that of the home
buyer who is seeking funds.
The Federal Home Loan Bank Board
(FHLBB) loan proposal in Title II is similar to
the Government National Mortgage Association
(GNMA) tandem plan now in operation. To this
extent, the proposal would essentially duplicate
an existing program, which provides belowmarket interest rates to home buyers and utilizes
a Government-related source of funds. It is not
clear from the Discussion Principles whether the
proposed new role for the Federal Home Loan
Bank Board would eliminate the authority of
the Federal home loan banks to make advances
to thrift institutions in order to cover either
takedowns of earlier mortgage commitments, or
deposit withdrawals, in the event of unexpected
reversals in their over-all flows of funds. In our
view, such advances would still be needed, at
least on a transitional basis, so as to provide
necessary flexibility to this class of depositary
institutions. Although the FINE Discussion
Principles would allow depositary institutions
access to the Federal Reserve discount window,
discount borrowings have traditionally taken the
form of very short-term credit designed primarily to cover temporary reserve deficiencies.
Thus the discount window operation would not
duplicate the FHLBB medium-term advance
program now in effect.
The proposed mortgage-interest tax credit and
the mortgage reserve credit features of the Dis-

102

Federal Reserve Bulletin • February 1976

cussion Principles would undoubtedly be of
some help in ameliorating any adverse impacts
on consumers of more competitive pricing of
mortgage money. Yet the degree to which they
might do so is unclear. A progressive mortgage-interest tax credit would probably offer
only a relatively modest investment incentive
for commercial banks and insurance companies.
Neither type of credit would encourage pension
funds to invest in mortgages.
Moreover, it is uncertain how much of the
benefits from these plans would be passed
through to lower-income consumers. If applied
retroactively, the tax credit and reserve credit
plans would obviously provide windfall gains
to lenders on mortgages already held in their
portfolios—benefits that would apparently not
be transmitted to any lower-income households
that had borrowed before the programs began.
The proposals in Title I would encourage
more diversification by financial institutions that
are now specialized. In contrast, the incentive
programs in Title II would encourage specialization in one type of asset, typically with long
maturity and limited marketability. It is even
possible that the progressive tax credit proposal
might lead to a concentration of low- and moderate-income mortgages in a relatively small
number of lending institutions.
The proposed mortgage reserve credit plan to
aid low- and moderate-income housing raises
a number of important additional issues that I
would like to summarize:
—The institution of a reserve credit plan
would set an unwise precedent for extending
similar preferential treatment to holdings of
other types of assets deemed to be of pressing
social merit. The list of favored credit instruments of this type could become longer as time
passed, thus diluting the initial advantage enjoyed by qualifying mortgages, and tending to
segment private credit markets even further.
—A reserve credit on one type of instrument—such as a mortgage—would encourage
financial institutions to change the form of their
lending simply to take advantage of this kind
of subsidy. To that extent, the mortgage reserve
credit would not stimulate more housing investment. Lenders would have an incentive, for
example, to offer loans secured by real estate




in lieu of consumer loans to be used for nonhousing purposes.
—The mortgage reserve credit plan would
affect the pricing of qualifying mortgage assets
and could accordingly limit their marketability.
On a given mortgage loan, a reserve credit—
particularly when accompanied by a mortgageinterest tax credit—would produce a different
effective yield at depositary institutions holding
different proportions of assets in qualifying
mortgages relative to their deposits. A yield
distinction would also exist between institutions
qualifying for the credits and those, such as
pension funds, that do not. To the extent that
these yield differentials would prevail, depositary institutions would either have to take lower
profits or larger losses than they otherwise
would be obliged to absorb on the sale of loans
to nondepositary purchasers, and would thus be
discouraged from broadening the secondary
market for such loans.
—The mortgage reserve credit plan would
require lenders to identify loans on "low- and
moderate-income housing" held in their portfolios. This ongoing identification process would
be difficult, particularly since qualifying characteristics of borrowers, properties, and even
neighborhoods can change either up or down
over the life of a given loan.
Of greater importance, a mortgage reserve
credit would pose a more fundamental problem
for the monetary authorities. The mortgage reserve credit plan would weaken the capacity of
the Federal Reserve to control the growth of
reserves at depositary institutions in order to
maintain a rate of expansion in the monetary
aggregates consistent with the needs of our
economy. Federal Reserve decisions would be
complicated by the addition of a new element
to the already complex relationship between the
reserve base and the money stock. This new
element—stemming from the asset side of
lender balance sheets rather than the liability
side—would require the Federal Reserve for the
first time to predict changes in holdings of
qualifying mortgage assets by a large number
of diverse types of commercial banks, savings
banks, savings and loan associations, and credit
unions.
To the degree that the proposed financial

Statements to Congress

103

market reorganization resulted in higher average
mortgage borrowing costs over the long run,
low- and moderate-income households would be
affected the most. For these consumers, the cost
of shelter, along with other basic necessities,
usually absorbs a relatively large portion of their
income. In that case, considering the imperfections of both the mortgage-interest tax credit and
the mortgage reserve credit approaches, one or
more alternative methods of housing assistance
may be regarded as desirable for low- and
moderate-income groups.
In addition to the FHA, VA, and GNMA
mortgage credit programs, an elaborate system
of other Federal housing aids is currently in
place. Many of these plans already provide
some support, directly or indirectly, to lowerincome households. Altogether, Federal aid to
housing takes such varied forms as tax incentives to homeowners, landlords, and builders;
cash subsidy programs to produce new and
substantially rehabilitated housing; secondary
mortgage market support; and direct lending.
Given the complexities of the present system,
now may be an appropriate time for the Congress to evaluate its over-all cost and benefits
and the interrelationships among the various
forms of subsidy, before proposing any further
significant change.
Even in the absence of a comprehensive review of this sort, there are several ways in which

Federal assistance to homeownership could be
directed at the lower-income portion of our
population where the need is greatest. Unfortunately, portions of our present system now apply
the largest subsidy to consumers most able to
pay without public assistance.
One possibility would be to revise the present
system of income tax deduction for mortgage
interest and real property taxes so as to allocate
tax benefits more heavily toward the lower end
of the income scale. Another possibility would
be to provide periodic supplements to the income of lower-income households. Both of
these approaches have the advantage of directly
assisting those least able to pay, rather than
doing so indirectly through incentives to financial institutions.
In conclusion, the Board of Governors believes that the restructuring of depositary institutions proposed in Title I of the FINE Discussion Principles may well hold the possibility of
greater stability for our specialized depositary
institutions and ultimately for the mortgage and
housing markets. If the Congress should decide
that additional support is necessary for low- and
moderate-income housing over the longer run,
the Board believes that direct aid to qualified
home buyers and renters is a more efficient use
of public resources than programs designed to
reduce the cost of housing credit through subsidies to lenders.
•

Statement by George W. Mitchell, Vice Chairman, Board of Governors of the Federal Reserve System, before the Subcommittee on Financial Institutions of the Committee on Banking, Housing, and Urban Affairs, U.S. Senate,
January 28, 1976.

the growth in international trade and investment.
(U.S. exports and imports combined are estimated to have exceeded 13.6 per cent of U.S.
gross national product in 1975, compared to
approximately 8.4 per cent of U.S. GNP in
1971.) That development has been reflected in
the expanded operations of U.S. banks abroad.
Another aspect of this development has been
the growing number of foreign banks establishing offices in this country to conduct both international and domestic banking activities. In
February 1973 the Board established a System
Steering Committee on International Banking
Regulation composed of some members of the
Board and some Presidents of the Federal Reserve Banks; part of that committee's assign-

I am pleased to appear before this subcommittee, on behalf of the Board of Governors of the
Federal Reserve System, to discuss the Board's
reasons for recommending the enactment of
legislation providing for the Federal regulation
and supervision of foreign bank operations in
the United States.
Banking has increasingly become a multinational business in recent years in keeping with



104

Federal Reserve Bulletin • February 1976

ment was to review the regulatory policy issues
associated with the influx and rapidly expanding
activities of foreign banks in the United States.
As a result of that review, the Board has concluded that the scale and nature of foreign bank
operations in this country have become significant in terms of competition within the banking
industry and of the functioning of money and
credit markets and that, therefore, the time has
come for the establishment of a national policy
on foreign banks operating in the United States
and for the creation of a system of Federal
regulation, supervision, and examination of
those operations.
To accomplish these objectives, the Board
has submitted to the Congress legislative proposals for regulating foreign bank operations in
the United States under the title of the "Foreign
Bank Act of 1975." These legislative proposals
were introduced in the Senate at the Board's
request as S. 958—the subject of today's hearings. I would like to discuss the legislation
embodied in S. 958 by first focusing in more
detail on the reasons that have led the Board
to conclude that such legislation is necessary
at this time and by next describing briefly the
major points of the Board's legislation. I will
conclude my statement by setting forth additional Board recommendations on other regulatory issues not covered in S. 958 that the Board
believes the Congress should consider in enacting legislation on foreign bank operations in this
country.

REASONS FOR FEDERAL
REGULATION
OF FOREIGN BANK OPERATIONS
There are three basic reasons that have led the
Board to conclude that it is appropriate at this
time to move toward a system of Federal regulation of foreign bank operations in the United
States. First, and most tangible, is the rapid rate
of growth that foreign bank operations in this
country have undergone over recent years and
their increasing importance to the functioning
of domestic money and credit markets as well
as to international flows of funds. Second, the
present patchwork system of State and Federal



regulation has resulted in illogical differences
in the regulatory treatment of domestic and
foreign banks. While difficult to quantify, certain competitive advantages and disadvantages
for foreign banks vis-a-vis domestic banks have
occurred as a result of these differences. And
finally, international banking operations are best
conducted in a reasonably certain regulatory
environment that fosters long-range planning
and development. Federal legislation standardizing the national treatment of foreign banks
in the United States not only would make for
a stable regulatory environment in this country
but, since U.S. banks are leaders in international
banking around the world, it would also facilitate cooperation between national banking authorities, contribute to an emerging pattern by
which foreign banking authorities could be
guided in the treatment of banking interests
originating outside their countries, and promote
the development of international standards of
banking soundness and competition.

GROWTH OF
FOREIGN BANK OPERATIONS
IN THE UNITED STATES
I will confine my comments this morning to
summarizing what I believe to be the most
important features of the recent growth of
foreign bank operations in this country. In this
regard, I am submitting for the record an appendix prepared by the Board's staff that provides detailed statistical information on the size
and growth of the U.S. activities of foreign
banks. 1
As of September 1975, there were 181 U.S.
banking institutions—defined to include agencies, branches, subsidiary banks, and New York
investment companies—owned by foreign
banks as compared to 104 in November 1972,
and their total assets have more than doubled
from $24 billion in November 1972 to $56
billion in September 1975. If clearing transactions and transactions with other offices of their
1

Available on request from Publications Services,
Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D.C.
20551.

Statements to Congress

parent banks are eliminated, their "standard"
banking assets—defined as loans, money market
assets, securities, and miscellaneous assets—
increased from $18 billion in November 1972
to $41 billion in September 1975.
The data on the over-all growth of these
institutions, while impressive, does not adequately portray the increasing importance of
their impact on specific U.S. banking activities.
For example, in September 1975 the U.S. offices of foreign banking organizations held $23
billion in total commercial and industrial loans,
an amount equivalent to about one-fifth of such
loans held by large banks that report weekly
to the Federal Reserve. As recently as November 1972 their share in this important U.S.
credit market was only one-eighth.
A second important activity of the U.S. offices of foreign banks is their money market
transactions. In September 1975 U.S. offices of
foreign banks had money market assets of more
than $12 billion, more than one-half of which
represented loans to and deposits with U.S.
banks. Included in this total are loans and deposits of $3.1 billion placed with U.S. banks
by the U.S. offices of banks from continental
Europe. The U.S. interbank market serves these
banking institutions as a convenient outlet for
managing the dollar balances of their parent
organizations.
U.S. offices of foreign banks also had substantial money market liabilities totaling $11.7
billion as of September 1975. Of this total, $6.6
billion, or more than one-half, represents interbank borrowings by U.S. offices of Japanese
banks, which use the U.S. interbank market as
an important source of funds to finance their
U.S. operations. The U.S. offices of banks from
countries other than Japan do not rely on U.S.
banks as a continuing net source of funds although they utilize borrowings from U.S. banks
as a source of liquidity when needed.
The important point to note from this brief
discussion of the extensive transactions of the
U.S. offices of foreign banks in U.S. money
markets is that these transactions closely link
the U.S. activities of foreign banks with domestic U.S. money and credit markets.
In addition to their U.S. lending and money
market activities, foreign banking offices engage




105

in substantial international transactions with
offices of their parent banking institutions as
well as with unrelated foreign institutions. For
example, as of September 1975 their gross
claims on foreigners were $16 billion and their
gross liabilities to foreigners were $25 billion.
Included in these figures were net advances of
$8 billion from their related institutions outside
the United States, which advances are, in effect,
used to finance their U.S. banking activities.
Thus, it should be clear from this summary
data that the size and growth of these operations,
their impact on important credit and financial
markets in the United States, and their influence
on the international payments position of the
United States are matters of national import.
Furthermore, the size and character of these
operations require that they be supervised and
regulated in a manner consistent with the supervision and regulation of domestic banks.

CURRENT REGULATION
OF FOREIGN BANKS
Let me turn now to the current regulatory environment structuring foreign bank operations in
the United States and how this has led to certain
differences in the regulatory treatment of domestic and foreign banks. I think the central
point to be made is that foreign banks are now
almost exclusively subject to State regulation,
with little or no Federal control.
If a foreign bank conducts its commercial
banking activities in the United States exclusively through branch and agency forms of
organization, it is currently not subject to any
Federal regulation, supervision, or examination.
Since foreign banks conduct the majority of
their operations through these forms of organization, the present system unaccountably exempts from Federal oversight those operations
that have the greatest potential for affecting our
Nation's economy and its major financial markets.
The principal regulatory advantages for a
foreign bank in operating through branch and
agency forms of organization are the following:
1. Branches and agencies are not legally
subject to any of the reserve requirements or

106

Federal Reserve Bulletin • February 1976

other regulations affecting monetary policy that
are placed on the operations of their primary
competitors—large national and State member
banks in our major financial markets;
2. Branches and agencies are not subject to
any Federal restrictions on multi-State banking
and thus can be established in any State that
permits entry, even if a foreign bank has a State
or Federally chartered subsidiary bank in another State (44 foreign banks have commercial
banking operations in more than one State);
3. A foreign bank maintaining only branches
and agencies is not subject to the prohibitions
of the Glass-Steagall Act and thus can maintain
those banking operations and at the same time
have an interest in a securities firm in the United
States (20 foreign banks with commercial banking operations in the United States have interests
in U.S. broker-dealers);
4. A foreign bank maintaining only branches
and agencies is not subject to the Bank Holding
Company Act of 1956, as amended, and thus
can engage directly or indirectly in the United
States in any type of nonbanking activities and
can invest in any U.S. commercial firm, so long
as it has the power to do so under the laws
of its home country; and
5. Branches and agencies are not subject to
any Federal bank examination, regulation, or
supervision of the type carried out by the
Comptroller of the Currency, the Board, or the
Federal Deposit Insurance Corporation (FDIC).
The current regulatory framework has, however, also imposed certain artificial or outmoded
restraints on foreign bank entry into the United
States. For example, foreign banks cannot organize Edge Act corporation subsidiaries that
enable large U.S. banks to conduct international
banking and financing operations in several
cities that serve as centers of international trade
financing. This prohibition, which was originally enacted in 1919 amidst fears of foreign
domination of U.S. trade financing, no longer
serves the national interest as our banks have
since that time developed into strong and
efficient competitors in international and foreign
banking. Thus, that prohibition today can only
function to preclude additional competition in
some banking markets.
The provision in the National Bank Act that




requires all directors of national banks to be
citizens has been a factor influencing many
foreign banks to organize State subsidiaries. The
lack of any provision in Federal law for the
establishment of Federal branches is in sharp
contrast to the situation in most foreign countries, where foreign banks establish branches
approved by the national government. (As of
September 1975, there were 751 branches of
our banks abroad.) U.S. regulatory policy
should encourage foreign banks to opt for national rather than State subsidiaries and branches
because those options would avoid problems of
reciprocity between individual States and
foreign governments and would afford greater
Federal control over the U.S. operations of
foreign banks.
Finally, the lack of availability of FDIC insurance for deposits and credit balance accounts
at branches and agencies has proven a disadvantage in competing in retail banking markets
but may give a cost advantage to foreign banks,
because U.S. banks must meet FDIC assessments on similar liabilities.
The current pattern of State regulation may
also, in some cases, lead to anticompetitive and
other results not in the national interest. For
example, a foreign bank may not be able to enter
a U.S. banking market because of State law
restrictions. This situation could in some cases
prevent a domestic bank from that State from
entering a foreign bank's home country if the
home country imposes a reciprocity requirement. The net effect of such a situation is a
reduction in U.S. banking competition and a
potential impediment to the foreign commerce
of the United States. Such situations might also
involve important foreign policy considerations
between the United States and the home
country. Clearly, a national policy and national
regulatory system are needed so questions of
reciprocity, as well as other matters of national
interest, can be judged on a national, not local,
level.
The United States is virtually the only country
that does not have central bank control over the
activities of foreign banks within its borders.
This situation creates a gap in the Federal Reserve's control over domestic monetary conditions that will inevitably widen and increase in

Statements to Congress

importance as foreign banks' activities continue
to grow.

MAJOR POINTS
OF BOARD'S PROPOSAL
I would now like to highlight briefly the major
points of the Board's proposed legislation.
In the Board's judgment, two basic policy
goals are embodied in the legislation proposed
in S. 958. The first goal is the adoption by the
Federal Government of the principle of national
treatment, or nondiscrimination, toward the
operations of foreign banks in this country.
Second is the goal of establishing a comprehensive system of Federal supervision, regulation,
and examination of foreign bank operations in
the United States in order to implement the
principle of national treatment and to provide
a framework for regulating the U.S. activities
of foreign banks in view of their impact on the
Nation's money and credit markets.
The legislation embodied in S. 958 seeks to
implement the policy of national treatment by
amending U.S. banking laws to provide foreign
banks with the same opportunities to conduct
activities in this country as are available to
domestic institutions and by subjecting them to
the same rules and regulations. Thus, the citizenship requirements for directors of national
banks are relaxed in order to give foreign banks
a real choice in deciding whether to establish
a national or State subsidiary (Section 12);
foreign banks are given the opportunity to establish Federal as well as State branches (Section 18); the Edge Act is amended to permit
foreign banks, with Board approval, to acquire
Edge Act corporation subsidiaries (Section 10);
and it is recommended that the FDIC Act be
amended in order to permit branches and agencies to obtain insurance on their deposit and
credit balance accounts in the United States
(Section 17).
The legislation proposed in S. 958 also closes
Federal regulatory gaps by amending the definition of "bank" in the Bank Holding Company
Act to include branches and agencies of foreign
banks (Section 2(4)), and by making other
amendments to that Act designed to ensure that



107

branches and agencies of foreign banks are
treated the same as any U.S. banking organization with similar commercial banking powers
(Sections 2-4). As a result, all branches and
agencies would have to become insured banks;
additional branches and agencies could only be
established with Board approval and subject to
Board analysis of financial, managerial, competitive, and convenience and needs considerations; branches and agencies could not be
established outside of a foreign bank's State of
principal banking operations unless a State bank
headquartered in its State of principal operations
could also establish such offices; the parent
foreign bank would in its U.S. activities be
subject to all of the nonbanking prohibitions of
the Bank Holding Company Act; and, lastly,
the parent foreign bank and its nonbanking
subsidiaries would in their U.S. activities be
subject to the Board's cease-and-desist authority
for unsafe and unsound practices.
Any branch, agency, or incorporated subsidiary bank of a foreign bank with worldwide bank
assets in excess of $500 million would also be
required by Section 3(3) of S. 958 to become
a member of the Federal Reserve System and
would thus become subject to the same kind
of Federal monetary and Federal bank examination, regulatory, and supervisory controls that
apply to other member banks. In addition, as
member banks, such branches, agencies, and
subsidiaries would become subject to the prohibitions of the Glass-Steagall Act and, as insured
banks, would become subject to the provisions
of the Bank Merger Act, Financial Institutions
Supervisory Act of 1966, as amended, and other
provisions of the FDIC Act.
S. 958 creates a comprehensive system of
Federal regulation of foreign bank operations
not only through various amendments to U.S.
banking laws but also through the establishment
of a Federal licensing procedure on future entry
(Section 25). This procedure would give the
Federal Government the opportunity to consider
national interest and foreign policy factors in
foreign bank entry, as well as the banking
factors that will be considered by the bank
regulatory agencies. This Federal role in entry
will serve to facilitate greater cooperation
among international bank regulatory authorities

108

Federal Reserve Bulletin • February 1976

and will strengthen the ability of the national
Government to obtain national treatment for
U.S. banking institutions abroad.
In addition, I would like to emphasize that
the legislation embodied in S. 958 does not
undertake to supplant State regulation or remove
options for State chartering or licensing. Rather,
it seeks to superimpose Federal controls on
foreign bank operations in those areas where the
Congress has already subjected domestic banks
to national regulation, such as the Bank Holding
Company Act, or where foreign bank activities
involve matters of national interest that are
clearly the responsibility of the Federal Government, such as the effect of their operations
on national money and credit markets.

GRANDFATHERING OF
EXISTING OPERATIONS
An important policy issue that must be considered in subjecting foreign banks to the Federal
multi-State banking and nonbanking restrictions
currently imposed on domestic banking organizations is the extent to which the Congress
should afford foreign banks "grandfather"
privileges for existing operations that do not
currently conform to those domestic standards.
In Sections 3 and 4 of S. 958, the Board has
recommended permanent grandfathering for all
nonconforming banking and nonbanking operations (including securities operations) established by foreign banks on or before the original
date of introduction of the Board's proposal in
the Congress—December 3, 1974. Nonconforming multi-State banking operations established after that date but before enactment would
have to be phased out in 2 years; nonbanking
operations commenced in that interval would
have to be phased out over 10 years.
The Board strongly believes that permanent
grandfathering of long-standing foreign bank
operations in this country is needed in order to
minimize any possible retaliation against U.S.
banks abroad. This opinion is based primarily
on Board members' discussions with foreign
central and commercial banks and U.S. banks
with significant operations overseas. Since the
overseas operations of U.S. banks are about




three times as large in terms of assets as those
of foreign banks in the United States (as of
September 1975, 126 U.S. banks operated 751
foreign branches in more than 90 foreign countries with total assets of about $135 billion),
it is obvious that our banking system and its
U.S. banking customers would be a net loser
in any possible retaliatory efforts.
Aside from such considerations, however, the
Board also strongly believes that a failure to
permanently grandfather existing operations
would be unduly harsh in light of the grandfather privileges previously extended U.S. bank
holding companies. Several bank holding companies with multi-State banking subsidiaries
were given permanent grandfather rights in 1956
and again in 1966 when the test for determining
a bank holding company's State of principal
banking operations was clarified. In 1970 nonbanking activities of one-bank holding companies were permanently grandfathered so long as
they were commenced on or before June 30,
1968, and were engaged in continuously since
that date. Given precedents, foreign banks
should be afforded similarly liberal grandfather
privileges. It must be remembered on this issue
that foreign banks have established their operations in complete conformance with existing
laws; branch and agency forms of organization
are not devices for avoiding certain Federal
banking laws but rather are well-accepted forms
of banking operations around the world.
Furthermore, it would appear that the extent
of permanently grandfathered nonbanking activities would be relatively small and that the
period of temporary grandfathering provided is
not unreasonably long in light of divestiture
experience under the Bank Holding Company
Act.
The Board shares the concern of the Congress
that the policies of the Glass-Steagall Act and
the Bank Holding Company Act be enforced;
however, rather than abolish existing foreignowned bank affiliations that would be prohibited
by those Acts, it seems that a better and fairer
course of action would be to give the Board
the power to terminate such affiliations if, in
a particular case, the Board found, after notice
and opportunity for hearing, that such action
was warranted. The Congress, in fact, adopted

Statements to Congress

this type of procedure in connection with its
permanent grandfathering of certain of the nonbanking interests of one-bank holding companies in 1970. The Board has suggested a similar
review power over any permanently grandfathered nonbanking interests of foreign banks
in Section 4(2) of S. 958.

OTHER REGULATORY ISSUES
INVOLVING FOREIGN BANKS
In transmitting its proposed legislation to the
Congress, the Board indicated that its proposal
would not cover foreign bank operations conducted through so-called New York investment
companies, and would not specifically amend
the Bank Holding Company Act in order to
subject the several foreign bank shareholders of
the European-American Bank and Trust Company, New York, New York, to the provisions
of that Act.
Investment companies organized under Article XII of the New York banking law have
many of the same banking and financing powers
as agencies of foreign banks. Seven domestically owned investment companies appear to be
primarily engaged in finance company operations; four foreign-owned investment companies
are either subsidiaries or affiliates of foreign
banks and appear to conduct the same type of
commercial banking operations carried on by
agencies. In excluding foreign-owned investment companies from the coverage of its proposed legislation, the Board was primarily influenced by the fact that only three such companies would have been covered at the time it
submitted its proposal and that the New York
authorities had customarily discouraged chartering of these entities in lieu of branch or
agency operations. The Board was also concerned that any attempt to cover only the few
foreign-owned companies would be regarded as
a discriminatory action by foreign authorities.
The Board notes that since submitting its
legislation, the New York banking authorities
have chartered an additional investment company subsidiary of a foreign bank and have
received an application to organize another investment company from a private foreign bank.




109

The Board understands, however, that the New
York authorities are currently reviewing their
policies on chartering investment companies for
foreign banks.
The Board believes that there is a potential
for avoidance of the objectives of its proposed
legislation if foreign banks can readily obtain
investment company charters in lieu of agency
or branch licenses. The Board thus recommends
that all future investment companies that would
be chartered to engage in a commercial banking
business be subjected to the same scope of
Federal regulation that has been suggested for
agencies and branches in order to close this
potential loophole.
With respect to domestic banks owned by
several foreign banks, the Board notes that, in
addition to European-American, the New York
banking authorities recently chartered a new
bank—UBAF Arab-American Bank—that will
be owned by a group of 11 Arab banks, 5
foreign consortium banks controlled by Arab
banks, and 4 domestic bank holding companies,
the latter each having only a statutorily permitted 5 per cent interest. The Board recently
considered the question of whether a bank
holding company was being formed in the organization of UBAF and determined that, on
the basis of certain specific undertakings made
by each of the shareholders of the bank with
the Board, that a "company" had not been
formed and that an application was not required
under the Act.
The cases of European-American and UBAF,
among others, however, demonstrate that the
current definitions of "control" and "company" in the Act do not appear to cover certain
multiple ownership situations where independent shareholders might act in concert to
control a bank but do not constitute themselves
into a corporation, partnership, association, or
similar organization. Because this consortium
form of arrangement might become an attractive
vehicle for entry if branches and agencies of
foreign banks are subjected to Federal regulation
under the Bank Holding Company Act, the
Board recommends that the Congress amend the
Bank Holding Company Act to give the Board
jurisdiction over situations where independent
shareholders that do not form themselves into

110

Federal Reserve Bulletin • February 1976

a company, as currently defined in the Act,
nevertheless act in concert to control a bank.
Since the scope and impact of any such amendment will depend, to a great degree, on the
precise legal language chosen, the Board, at
your request, will be glad to suggest several
alternative amendments to the Bank Holding
Company Act and to describe the ways in which
such amendments would affect the shareholders
involved. It should be noted that any such
amendment would apply to domestic as well as
foreign companies, and thus the Congress may
also want to consider such an amendment in
the context of bank holding company legislation.

CONCLUSION
This Nation's domestic banking system is, of
course, currently undergoing a thorough re-examination by the Congress and we at the Federal

Statement by Arthur F. Burns, Chairman,
Board of Governors of the Federal Reserve
System, before the Appropriations Committee,
U.S. House of Representatives, January 28,
1976.

I can summarize briefly what I have on my
mind, and what I would like to convey to this
committee, in three broad propositions.
First, a good recovery of economic activity
is now under way.
Second, inflation moderated appreciably during the past year, but there is a grave danger
that it may accelerate again.
Third, the course of fiscal policy during this
year and next will play a decisive role in determining whether or not our country can win the
battle against inflation.
Let me turn to the first of these propositions.
A good economic recovery has been under way
since April or May of last year. The recovery



Reserve welcome this study and are glad to
provide whatever assistance we may be called
upon to give. It is our belief, however, that the
enactment of legislation regulating foreign bank
operations in the United States should not await
or be made contingent upon the resolution of
more fundamental domestic banking issues,
such as whether U.S. banks should be allowed
to engage in multi-State operations or securities
activities. In our judgment, if foreign bank
regulation is tied to such fundamental domestic
changes, an undesirable end result will be further postponement of the enactment of any legislation regulating foreign bank operations in the
United States. The longer such legislation is
delayed the more difficult will be our task in
this regard because foreign bank operations will
continue to grow, thus making grandfathering
proposals less acceptable and increasing the
likelihood of retaliatory pressures against our
banks abroad. The Board thus strongly recommends enactment of S. 958 during 1976.
•

has gathered some momentum; in the second
half of 1975 the physical volume of our Nation's
total production rose at an annual rate of approximately 9 per cent, which is a rather rapid
rate of increase.
Industrial production—that is, the output of
our factories, mines, and utilities—grew even
faster. Between April and December 1975, industrial production rose at an annual rate of 12
per cent.
These gains in production have been widespread. They started in the nondurable goods
fields—in the production of textiles, leather
products, paper products, and chemicals. After
midyear the scope of the expansion in production broadened out and most durable goods
lines—such as the machinery and equipment
trades, the metals industry, and the furniture
industry—showed appreciable gains.
The increases in production led to a material
strengthening in the demand for labor. Since
March of last year, total employment has in-

Statements to Congress

creased by 1.7 million. The factory workweek
has lengthened. It is, as of the latest count, IV2
hours longer on the average than it was last
February. And the unemployment rate has declined from approximately 9 per cent last spring
to about 8 per cent presently.
As 1975 ended the economy was moving up
at a fast clip. In the month of December, industrial production rose 1 per cent; employment
rose by a quarter of a million; retail sales rose
by a remarkable 3% per cent. In fact, the rise
in retail sales toward the end of last year was
so rapid that inventories of trade firms actually
fell.
Let me try now to speculate a little about the
future with you. As I see the economy, there
is good reason to expect that the expansion in
production and employment will continue in the
months immediately ahead. Certainly, inventory
restocking will be needed to fill half-empty
shelves in many of our firms.
The confidence of consumers is returning.
People around the country are in a better mood
now, and they are spending more freely.
Our export markets are strong. As you may
have read in this morning's paper, we had a
trade surplus in 1975 of $11 billion. Our exports
will continue expanding this year, partly because other industrial countries are beginning
to recover. Also, prices, by and large, have
risen less rapidly in our country than abroad,
and American business firms are in a stronger
competitive position.
The housing industry, as you know, is depressed, but there has been some improvement
and I think there will be gradual further improvement. The backlog of unsold homes is
diminishing. Money is certainly in ample supply
at our thrift institutions. The inflow of funds
to our mortgage lending institutions this January
appears to be breaking all records for that
month.
Business capital spending, so far, has not
shown any convincing signs of recovery. This
is not entirely surprising because business investment in fixed capital often lags in the recovery process. But I think that there are cogent
reasons for expecting business capital investment to join the recovery process before very
long.




111

As you well know, the stock market has been
rising briskly, interest rates of late have fallen
rather sharply, and corporate profits have moved
up with considerable vigor—in fact, with unexpected vigor. Also, the utilization rate of our
manufacturing industries has been rising. The
Federal Reserve maintains an index of the rate
of capacity utilization of materials-producing
industries. That rate was 70 per cent in the first
quarter of 1975, and by the fourth quarter it
had risen to 81 per cent.
When the average rate of capacity use is 81
per cent, there will be some industries that are
well above that figure and there will be some
firms within these industries that are higher still.
In sum, with an ample supply of money
available, with profits improving, and with the
rate of utilization of our factories rising, I think
we can reasonably expect that the capital goods
industries, before very long, will be showing
significant expansion once again.
Our financial markets are now in an excellent
position to support further economic recovery.
Interest rates have declined over the past 6
months in contrast to what usually happens in
the early stages of a recovery. Usually, interest
rates begin rising, and they sometimes rise
sharply, at about the same time as economic
activity starts to recover. But interest rates now
are below their lows of last June; in fact, interest
rates on many short-term securities are lower
now than they have been at any time since the
fall of 1972. The rise in stock prices also favors
the continuance of economic expansion. This
is making it easier for business firms to raise
equity capital. It is also making people feel
richer and is thus helping to rebuild confidence
all around.
It is also important to note that the liquidity
position of our banks, of our thrift institutions,
and of our business firms has improved very
materially since the spring and summer of last
year.
The critical question, of course, is how far
and how fast the recovery that is now under
way will proceed. In the nature of things, neither I nor anyone else can speak with great
confidence on this question concerning the future. But I can say this much with assurance:
the strength and the duration of the recovery

112

Federal Reserve Bulletin • February 1976

that we are now experiencing will depend in
large part on how well this country does in our
continuing struggle with inflation.
Last year we made significant progress. Consumer prices rose 7 per cent in 1975, compared
with an increase of 12 per cent during 1974.
Wholesale prices rose 4 per cent last year,
compared with 21 per cent during 1974.
But we must not become complacent about
the improvement that has taken place on the
inflation front because the progress we made
was pretty much concentrated in the first half
of 1975, when economic activity was weak. In
the second half of 1975, troublesome signs
appeared of a quickening in the pace of inflation. Wholesale prices of industrial commodities
rose at a 9 per cent annual rate, which was more
than twice the rate of increase in the first half
of 1975. That was a disturbing development.
Also, wage-rate increases remained rapid last
year. As you well know, they have been running
far above the long-term rate of improvement in
productivity.
If the rate of inflation quickens this year, as
may happen, that would pose a threat to the
continuance of economic recovery. If the rate
of inflation quickens, the restoration of confidence that is now under way would probably
soon come to an end. If the rate of inflation
quickens, interest rates would rise and financial
markets might become unsettled. If the rate of
inflation quickens, the flow of funds to our thrift
institutions—and thus mortgage credit supplies—would tend to dry up, and housing would
suffer grievously once again. Consumer spending would also tend to weaken because in our
times consumers respond to inflation not by
spending at a faster rate but by saving at a faster
rate. This is one of the important lessons of
recent times—a lesson that as yet is not understood well enough.
In view of what I have said, it seems to me
that the task for public policy is eminently clear:
we in Government must avoid policies that
release a new wave of inflation. To the extent
that we do so, we will enhance the prospects
for a vigorous and durable economic expansion.
Now let me say a word or two about monetary
policy. We at the Federal Reserve have been
very mindful not only of the need to expand




jobs in our country but also of the need to reduce
the rate of inflation—because, unless that happens, we will not have good times in our land.
During the past year, all of the major monetary aggregates expanded at a moderate pace.
Thus, between the fourth quarter of 1974 and
the fourth quarter of 1975, the narrowly defined
money supply—namely, currency plus demand
deposits, frequently referred to as Mx—rose AVi
per cent. A more broadly defined money supply,
which includes also time and savings deposits
of commercial banks except for large certificates
of deposit, rose 8 per cent during that period.
These increases proved to be sufficient not
only to finance a vigorous recovery in the physical volume of economic activity; they proved
sufficient also, I am sorry to say, to finance a
fairly high rate of inflation. Moreover, interest
rates fell materially, and this indicates that the
moderate rates of expansion in the monetary
aggregates were fully sufficient, if not more than
sufficient, to take care of the Nation's legitimate
needs.
We at the Federal Reserve have the firm
intention of staying with a course of moderation
in monetary policy. Clearly we need continued
growth in economic activity ; clearly this growth
needs to be financed. We expect to provide
sufficient money and credit to finance a satisfactory rate of expansion, but we do not have
the slightest intention of throwing caution to the
winds and of taking the risk of rekindling inflation.
The principles that are guiding monetary policy at the present time should, in my judgment,
also shape the course of fiscal policy if our
country is to regain any chance of lasting prosperity.
I need hardly remind this committee that since
1960 we have had a deficit in our Federal budget
every year but one. I need hardly remind this
committee that in the 10 fiscal years from 1968
through 1977, taking account of the President's
recently announced budget, the Federal budget
deficit will have exceeded $20 billion in each
of 6 years. And I need hardly remind this
committee that in the 5 years ending with fiscal
year 1976, the deficit in the unified budget will
have cumulated to about $160 billion. And if
we take off-budget outlays into account—as we

Statements to Congress

113

should, and as I hope Mr. Lynn soon will—the
total rises to more than $180 billion.
The President has recommended a budget for
the coming fiscal year that aims to slow down
materially the rate of increase in Federal spending. Partly for that reason and partly also because of expected increases in revenues, the
budget deficit is projected to decline from $76
billion in fiscal 1976 to $43 billion in fiscal
1977.
I would certainly like to see faster progress
in reducing the deficit, but I do recognize that
the deficit now results in large part from the
fact that economic activity is well below the
full employment level.
The President's recommendation to cut back
on the growth of Federal expenditures and also
to cut taxes strikes me as sound. Federal expenditures have been growing very rapidly in our
country. According to my calculations, last year
total governmental expenditures at the Federal,

State, and local levels amounted to something
like 38 or 39 per cent of the dollar value of
our Nation's production. That percentage has
been growing progressively over the years. The
private sector in our economy is shrinking. Let
us not overlook the fact that the private sector
has been the source of strength and vitality of
our economy.
I hope that the Congress will, in general,
follow the recommendations in the President's
budget message. I am speaking of over-all
totals, not of the details of the budget.
This committee can serve a vital national
function. I trust that you will bear carefully in
mind, as you have in the past, the urgent need
of this country to follow a course of fiscal
prudence and that you, Mr. Chairman, and your
colleagues on this committee, will bring your
great influence to bear on the thinking of the
Budget Committee and on the various legislative
committees.
•

Statement by Philip E. Coldwell, Member,
Board of Governors of the Federal Reserve
System, before the Subcommittee on Financial
Institutions Supervision, Regulation, and Insurance of the Committee on Banking, Currency, and Housing, U.S. House of Representatives, January 29, 1976.

The Board believes that the bank holding
company movement, on balance, has been in
the public interest, if all factors are carefully
weighed. We recognize that it may be too early
to appraise adequately all the ramifications of
the changes in banking structure, the new competitiveness in banking and bank-related industries, and the sufficiency of full realization of
the public benefits promised by the applicants.
There are some questions on the proper degree
of regulatory control and the permissiveness of
the holding company form of organization. But
many of the charges of financial trouble levied
against the bank holding company movement
have little relevance to the form of organization
and are primarily the result of broader economic
problems and aggressiveness of bank management policies.
In our view the primary and demonstrable
benefit from the holding company movement
has been the competitive impact in the banking
industry. Through de novo and foothold entries
new and stronger competitors have been introduced into local banking markets. There have
been 218 de novo banks organized in metro-

It is my privilege to present the response of the
Board of Governors to the FINE1 "Discussion
Principles" embodied in Title III. Before reviewing the principles and responding to each,
however, I would like to present the Board's
current assessment of the bank holding company
movement as it has developed since the 1970
amendments. It will be recalled that the legislation amending the 1956 Bank Holding Company
Act was designed (1) to bring one-bank holding
companies under the Act, (2) to allow bank
holding companies to engage in a broader range
of nonbanking activities closely related to
banking, and (3) to assure that public needs and
conveniences were considered when permitting
an acquisition.
1

Financial Institutions and the Nation's Economy.




114

Federal Reserve Bulletin • February 1976

politan markets by domestic multibank holding
companies during the 5 years since the 1970
amendments. Of these, about 23 per cent were
opened in markets where the holding company
was not previously represented by a bank. Another 45 new banks were opened in nonmetropolitan markets. Of these, about 84 per cent
represented initial entry by the holding companies. These data support our judgment that new
banking alternatives have been opened to the
public with increased competition for existing
banks.
With respect to acquisitions of banks that
have small market shares, empirical studies
show that the market shares of these acquired
banks have increased under holding company
control, suggesting an improved competitiveness that perhaps includes broader services.
There are less certain but creditable indications
of increased competition in State and regional
banking markets resulting from the growing
abilities of bank holding companies to meet the
expanding needs of regional and national businesses.
Competitive benefits are also reflected in the
de novo and foothold entries of bank holding
companies in nonbanking activities. Since 1970
bank holding companies have established over
1,600 nonbank de novo offices, with consumer
finance, insurance, mortgage banking, and leasing firms accounting for more than 70 per cent
of that total. Also holding companies frequently
have acquired small or medium-size firms and
then expanded de novo into new markets. It is
our impression that the new entrants have a
procompetitive effect in the local markets for
such bank-related activities.
Beyond the competitive impacts, I believe
that the bank holding company movement has
permitted an improved mobilization of funds in
the economy by overcoming, to some degree,
certain restrictions such as branching limitations
and barriers to the types of activities in which
banks can engage. The reinforcing impact of
bank-credit availability and the strength of
broader marketing are difficult to quantify, but
their intangible benefits for the economy are
nonetheless significant. Similarly, the bank
holding company organization has provided a
new vehicle for marketing the stock of small



banks and certain nonbanking companies. This
benefit could be particularly important in solving
the problems of a majority owner of a rural bank
who wishes to sell his bank.
Finally, bank holding companies have improved the financial condition and management
of many of their newly acquired banks. Of
particular importance has been the provision of
additional capital. In 397 separate approvals of
holding company acquisitions, the Federal Reserve has conditioned its approval on, or
reached agreement with the applicant for, an
injection of new capital. Such applicants have
provided almost $788 million of new capital as
a result of these acquisition agreements, and
bank holding companies, often after urging by
the Federal Reserve, have put in an additional
$1,154 million in new capital. In total then,
bank holding companies have injected almost
$2 billion of new capital funds into subsidiaries.
While a part of this total might have been
injected without the holding company form or
the requirements of the Federal Reserve, it is
doubtful that the total would have been nearly
so large.
The ability of bank holding companies to
provide management for their new acquisitions
has been a significant benefit; particularly when
the acquired bank had unsatisfactory leadership
or faced a management succession problem.
Growing bank holding companies are often able
to attract new executive talent, thereby enabling
them to supply management to newly acquired
or organized banks. Such benefits are very
difficult to measure, but we believe that the
ability of holding companies to provide management is a substantial public benefit.
The Board also recognizes that there are costs
associated with the bank holding company
movement. Some bank holding companies have
experienced financial problems, but it is important to note that many of these problems have
developed in their bank subsidiaries. The majority of these problems would probably have
materialized even if the banks had not been an
affiliate of a holding company. A significant
proportion of these bank problems have
stemmed from the recession, but others have
resulted from overly aggressive bank lending
and investment policies.

Statements to Congress

Some other bank holding company problems,
however, have originated in their nonbank subsidiaries. For example, some mortgage banking
affiliates have sustained operating losses, and a
few have tried to avoid severe distress by selling
assets of doubtful quality to bank subsidiaries.
Except in rare cases, however, the problems
associated with nonbank subsidiaries have not
had a major negative impact on bank holding
companies. One reason is that these nonbank
subsidiaries are usually a small factor in the
holding company system. In fact, total nonbank
assets of bank holding companies account for
less than 5 per cent of total consolidated holding
company assets.
Another problem area is that some real estate
investment trusts (REIT's), advised by a bank
holding company, often carrying the name of
the holding company or its lead bank, have
encountered financial troubles. Although many
independent and bank-advised REIT's have experienced similar difficulties, it is probably true
that the holding companies were able to pursue
this line of endeavor more freely and with
greater aggressiveness. Of course, the recession
in economic activities has been a major source
of these difficulties, but some REIT's became
exposed to a greater extent than other lenders
in the mortgage market.
Use of the bank holding company form of
organization has permitted greater flexibility and
latitude than the normal single unit bank or even
a branch bank system. For example, the ability
of holding companies to "double leverage"—that is, raising funds through parent debt
issues and downstreaming equity capital to bank
subsidiaries—has allowed the holding company
to increase the capital ratios of bank subsidiaries, while increasing the leverage of the company as a whole. Problems can develop from
"double leveraging" if the parent's debt servicing requirements are such that unduly heavy
dividends are required from the bank.
The Federal Reserve is charged with regulating bank holding companies by approving or
denying applications for acquisitions, by overseeing their financial conditions, and by insuring
compliance with the Act and its associated regulations. When acting upon proposed acquisitions, we have regularly given attention to fi


115

nancial and managerial factors, competitive effects (including any concentration issues), and
the public benefits expected. We typically require the applicant and its subsidiaries, both
bank and nonbank, to be in generally satisfactory financial condition. In a number of
cases, as noted above, we have required additional capital and other corrections as a condition for approval. The Federal Reserve closely
scrutinizes those applications involving acquisition debt and has denied a number where such
debt would create undue pressure for increased
dividends from bank subsidiaries, especially
when the bank needs, or is likely to need,
capital. We expect the parent company to be
a source of strength to its subsidiaries and not
a drain on their resources.
Approval of nonbank acquisitions has similarly been given following a determination that
competitive benefits are likely to flow from the
acquisition and that some significant public
benefits will develop such as greater efficiency,
lower interest rates, or broader services. We
have designed our procedures to promote de
novo entry by making the application and review
process easier and quicker. Moreover, the Federal Reserve has shown a distinct preference for
having bank holding companies acquire small
or intermediate-size firms rather than the largest
companies. We, of course, have moved carefully in reaching decisions as to which industries
are closely related to banking and where operation by a holding company would be of public
benefit. Under Regulation Y, the Board so far
has determined 12 categories of nonbank activities to be permissible for bank holding companies and has ruled that 8 types of activities are
not permissible.
Beyond these rather specific requirements, the
Board has adopted policies concerning bank
holding company expansion, which over the
past 2 years have significantly slowed this expansion. The Board adopted this "go-slow"
policy because it believed that managerial and
financial resources could often be used more
effectively to strengthen existing operations,
particularly in the bank subsidiaries, some of
which had experienced sharply declining capital
ratios or large loan losses.
Similarly, we have increased our efforts to

116

Federal Reserve Bulletin • February 1976

improve the supervision of bank holding company activities by more intensive monitoring of
bank holding company financial affairs and intracompany transactions. From revised and expanded financial reports, we will acquire much
more information on bank holding company
activity. Also a quarterly report on intracompany transactions will permit the Federal Reserve to monitor closely any unusual transactions or transfers between holding company
affiliates. The Federal Reserve has increased its
inspection program for bank holding companies
and nonbank subsidiaries so that developing
financial problems may be identified as early as
possible. Such inspections also allow a check
on compliance with the Bank Holding Company
Act and with Federal Reserve regulations
created to implement that Act. We have increased our contacts with the managements of
bank holding companies so that we may be
better informed about the condition of their
companies and where problems may develop.
Moreover, we have been increasing our use of
agreements or cease and desist orders to bring
about the correction of specific problems.
After 5 years of experience in enforcing and
regulating the 1970 amendments to the Bank
Holding Company Act, the Federal Reserve has
found it desirable to suggest to the Congress
certain changes in that Act that would improve
our ability to correct problems or deter their
development. Specifically, the Board has requested the Congress to give it the authority to
invoke civil penalties for violations of the Bank
Holding Company Act and thus deter the violations that are being discovered in our holding
company inspections. Also, the Board has asked
for authority to order divestiture of nonbank
subsidiaries or nonbank activities where they are
endangering the bank subsidiaries of a holding
company.
As a method of dealing with situations where
a bank is in serious financial difficulty, we have
requested modification of the Act to permit
waiver of the 30-day waiting period before an
acquisition can be consummated. This authority
parallels that in the Bank Merger Act. Similarly,
we have requested a change in the statute that
would permit inter-State bank holding company
acquisitions where a bank or holding company



in difficulty is so large that it cannot be acquired
by any in-State companies without creating
competitive problems.
I would now like to state the Board's specific
response to the FINE Discussion Principles as
reflected in Title III. The first elaborates on a
prior principle that a Federal Depository Institutions Commission be created and that it have
authority for supervision, regulation, and examination of bank and savings and loan holding
companies. As reflected in our prior testimony,
the Board is opposed to the creation of this
commission, and, hence, opposes the provision
that the powers of the commission cover bank
holding company activities.
The second Discussion Principle in this title
would subject holding companies to the jurisdiction of the Federal Depository Institutions
Commission so as to promote healthy competition among depositary institutions and to prevent the acquisition of banks or savings and loan
associations that would tend to lessen competition in a financial market. The Board strongly
endorses and has worked toward promoting
healthy competition among depositary institutions. In its administration of the Bank Holding
Company Act, the Board has repeatedly denied
proposed acquisitions of banks and nonbank
companies that would result in anticompetitive
effects. Only in those rare cases, such as with
the acquisition of a failing bank, where demonstrable public benefits would outweigh relatively
slight anticompetitive effects, has the Board
approved acquisitions of this character. I can
assure you that the Board pays extremely careful
attention to the competitive effects of every
proposed acquisition.
The third Discussion Principle calls for prohibiting the holding company and subsidiaries
from using names in such a way so as to cause
public confusion. We perceive the purpose of
this provision as an effort to disassociate depositary institutions from the rest of the holding
company system in the public's mind so that
financial trouble elsewhere in the system would
not have an impact on the depositary institutions
in such a way as to cause a loss of confidence.
The Board believes that such a prohibition
would give the depositary subsidiaries of bank
holding companies a modest degree of protec-

Statements to Congress

tion, but does not believe such protection would
be complete or very effective. The sophisticated
holders of liabilities of depositary institutions
are aware of the organizational links to the rest
of the holding company system whether the
name is identical or even similar. Such investors
or depositors can be responsible for wide swings
in deposits of individual institutions during periods of financial stress. In recent experience,
typically it has been the large uninsured depositor or creditor who has sought protection by
withdrawing funds from depositary institutions.
In a practical sense, also, even if the names
are not similar, the holding company may still
feel responsible for the nondepositary unit in
the holding company and thus may attempt to
use its depositary affiliates to come to the aid
of that nonbanking unit in times of adversity—
subject, of course, to the limitations in Section
23A of the Federal Reserve Act. There would
be some cost in forcing all holding companies
to change the names of their nonbanking
affiliates including the denial to holding companies of one of the benefits of the holding company form, which is the strength of the holding
company name on the nonbanking and banking
subsidiaries. Furthermore, the proposal runs
counter to the view that the public has a right
to know with whom it is doing business. Also,
there may be legal implications of forcing such
a name change between the parent and its
nondepositary subsidiaries, which the Congress
should review carefully before adopting this
principle.
The next proposal concerning holding companies is another attempt to avoid public confusion by requiring that any liabilities issued by
nondepositary subsidiaries clearly state that the
liabilities carry no guarantee by any depositary
institution in the holding company system, or
by the U.S. Government. The Board believes
that this proposal is desirable because it would
tend to clear up any confusion or misunderstanding that might exist. While lending its
support to this proposal, the Board nevertheless
believes that there should be recognition of the
practical position of many bank holding companies that the debt of any subsidiary ordinarily
should not be allowed to go into default for fear
of injuring public confidence in the holding




117

company as a whole or in its bank affiliates.
In addition, some support of the liabilities of
nonbank affiliates may be desirable in the normal course of business, as in the case where
a bank issues a "partial" standby letter of
credit, subject to Section 23A, to facilitate marketing of the debt of an affiliate.
Another Discussion Principle requires the
Federal Depository Institutions Commission to
determine before permitting any action by a
depositary institution with a holding company,
a subsidiary, or an affiliated nonfinancial institution, that such action would not weaken the
depositary institution in question. The Board
assumes that it is the intent of this provision
to prevent intraholding company transactions
that would adversely affect depositary subsidiaries. The Board wishes to point out that such
a proposal, though tending to prevent such adverse actions, would involve substantial administrative costs to review each and every transaction. In addition, prior approval of each transaction constitutes an unwarranted interference
in the management of the company.
As far as banks are concerned, existing laws
such as Section 23A of the Federal Reserve Act
already give bank affiliates of the holding company some protection from abuse. However, as
already noted in this testimony, there have been
intraholding company transactions that have
created problems for bank affiliates. In that
regard, the Board has taken several steps to
reduce or counter the adverse effects of such
transactions. First, the Board has recently
stepped up its monitoring program dealing with
bank holding company financial developments.
Second, as noted above, the Board has begun
an intracompany transaction report and also
requires almost immediate notice of transactions
involving large amounts or a large proportion
of a holding company's income or assets. Third,
in order to prevent bank affiliates from being
harmed by unsound financial practices of the
holding company or its nonbank subsidiaries,
the Board has requested and received authority
from the Congress to bring cease-and-desist
actions, if necessary, against holding company
units. Fourth, the Board has acted to limit
certain transactions by banks with affiliates. The
Board has interpreted limitations placed on

118

Federal Reserve Bulletin • February 1976

member bank loans to affiliates, under Section
23A of the Federal Reserve Act, to include
assets purchased from these affiliates. In addition, the Board has amended Regulation H to
require member banks to treat standby letters
of credit and ineligible acceptances as loans for
purposes of determining limitations on loans to
affiliates.
The Board believes that if existing laws and
procedures are not sufficient to reasonably protect the bank subsidiaries, it would be preferable
to tighten the laws on intracompany transactions
rather than to prohibit such transactions except
with prior approval by regulatory authorities.
Currently the regulatory agencies are studying
possible recommendations for strengthening of
Section 23A of the Federal Reserve Act.
Turning to the next Discussion Principle, the
Board supports the proposals to remove present
limitations on the amount of loans between
affiliated depositary institutions and to abolish
the requirement that such loans be secured. We
believe that within broad limits, it is reasonable
to allow a statewide holding company system
to transfer funds among its depositary affiliates
just as a statewide branch-banking system can
transfer funds among its branches. Such a provision would be particularly desirable in facilitating Federal funds transactions among depositary affiliates of the holding company. It is
believed that the restrictions presently placed on
such intracompany depositary loans were among
the principal reasons for the conversion of a
large number of holding company affiliates into
statewide branching networks when the New
York State law was recently changed to permit
statewide branching.
The next of the Discussion Principles would
prohibit transactions other than routine deposit
transactions between a depositary institution that
is a subsidiary of the holding company and any
investment company, including REIT's, which
it manages or advises. We question whether it
is necessary to prohibit all transactions between
depositary institutions and an investment company both related to a single holding company.
For the depositary institution, the amount of
loans to a REIT advised by a holding company
unit would be limited by existing law, usually
to 10 per cent of the bank's capital. Never-




theless, we do recognize that such loans could
be made by a number of separate units and
perhaps in the aggregate might constitute an
overconcentration of credit for the company.
The Board is mindful that the purchase of
assets by a bank from a REIT advised by the
holding company is not presently limited by law
except to the extent that such a purchase constitutes an "unsound" banking practice. Nevertheless, we are watching such transactions of
State member banks very closely and would not
hesitate to take decisive action if a transaction
constituted an unsound banking practice.
In order to promote disclosure, the next Discussion Principle would require the Federal Depository Institutions Commission to obtain and
make publicly available by market area on a
periodic basis, information concerning loans
and other financial transactions between depositary institutions and the rest of the holding
company system, as well as institutions such
as REIT's advised by the holding company
system. The question of the degree or type of
disclosure of holding company financial affairs
is one that is currently under considerable study
both by the regulatory agencies and the Securities and Exchange Commission. The Board recognizes that to achieve market discipline of
holding companies there will have to be additional disclosure of their financial condition, and
it has participated in extensive discussions with
the SEC about which data should be developed
and how they are to be presented.
The final provision in Title III of the Discussion Principles applies to the composition of the
board of directors of each depositary institution
and holding company as well as the important
committees of each institution. The provision
requires that one-third of the members of the
board of directors and all the important committees be independent. That is, they should
have no affiliation with the holding company or
any of its nondepositary affiliates. It appears to
us that the purpose of this provision is to give
the depositary institutions greater protection
from any possible abuse by the rest of the
holding company system. We believe that independent directors would be of some help. But
it is doubtful that the proposal would offer
depositary institutions a significant amount of

Statements to Congress

119

protection. The proposal would still leave independent directors in a minority position. Moreover, directors are obligated to defend the interest of the stockholders, and a depositary affiliate's stockholder is the holding company, which
would or could be the source of the abuse.
If this FINE proposal were to be adopted,
however, we would urge that small holding
companies be exempted. We suggest this because in smaller towns and for small companies
elsewhere, the available supply of qualified
directors is often limited.

In conclusion, the Board believes the Banking
Committee is rendering an important service in
leading a discussion of what may be the useful
and feasible elements of financial institution
reform. Our net assessment of the bank holding
company movement is presently favorable, but
it is clearly too soon to render definitive judgments on all aspects of the movement. We hope
our review of the development of bank holding
companies and our comments on the FINE Discussion Principles applicable to them, will be
helpful to the committee.
•

Statement by Arthur F. Burns, Chairman,
Board of Governors of the Federal Reserve
System, before the Committee on Banking,
Currency, and Housing, U.S. House of Representatives, February 3, 1976.

facturing industries exceeded the number released by a margin of 3 to 1.
The rate of utilization of our industrial plant
has also risen. In the major materials industries,
only 70 per cent of available plant capacity was
effectively used during the first quarter of 1975;
by the final quarter, utilization of capacity in
these industries had climbed to 81 per cent.
Nevertheless, a large part of our labor and
capital resources still remains idle. Unemployment is still deplorably high, and activity in not
a few of our Nation's industries remains depressed. Continuance of moderately rapid expansion is, therefore, essential to the restoration
of our economic well-being as a Nation.
Fortunately, conditions in the private economy favor a substantial further increase in production and employment this year. Last fall the
pace of advance in economic activity slowed
for a very brief period; but a renewed upswing
developed toward year-end, and the economy
entered 1976 on a strong upward trend. Consumers have been buying more liberally, as is
evident from the surge in retail sales late last
year. In December retail sales rose 3% per cent
on a seasonally adjusted basis, and the improvement that developed over the Christmas
season appears to have continued thus far this
year.
This marked strengthening of consumer
spending has resulted in a further liquidation of
business inventories, so that ratios of inventories
to sales are now unusually low at most retail
outlets and also at manufacturers of nondurable

I am glad to meet with this committee and
present once again the Federal Reserve's report
on monetary policy.
Last July, when I gave the first report to the
committee under House Concurrent Resolution
133, our economy was just beginning to emerge
from the most severe recession of the postwar
period. Since then, we have experienced a vigorous economic recovery. According to preliminary calculations, the physical volume of our
Nation's total production rose at an annual rate
of 9 per cent during the second half of 1975.
The rebound of the industrial sector of our
economy has been even stronger. Since its low
point last April, the total output of factories,
mines, and power plants has increased at a 12
per cent annual rate. The advance was initially
most prominent in the textile, leather, paper,
and chemical industries, but the scope of the
recovery broadened during the fall and winter
months and now includes a wide range of durable and nondurable goods.
As production rose, the demand for labor
strengthened. Since last spring, total employment across the Nation has risen by IV2 million,
and the average factory workweek has lengthened by IV2 hours. In December the number
of employees added to payrolls by our manu


120

Federal Reserve Bulletin • February 1976

goods. Businessmen have been pursuing very
cautious inventory policies; they have been reluctant to reorder in volume until they were
confident that recovery was taking hold. As a
result, business firms will soon need to rebuild
inventories to levels consistent with the improved pace of consumer buying. It should not
be surprising if orders and production advance
rather briskly in the months just ahead.
Prospects for residential construction also appear to have improved. Prices of new homes
remain exceedingly high, and this is bound to
limit the recovery in homebuilding. Still, the
inventory of unsold units—especially in the
single-family market—has declined, and mortgage credit is now readily available in nearly
all parts of the country. Housing starts have
therefore been moving up and further significant
gains are likely over the course of 1976.
Our export trades, too, will probably register
some improvement this year. The demand for
exports held up well in 1975, reflecting in large
measure the strong competitive position that we
have achieved in world markets during recent
years. Economic recovery is now under way in
other industrialized countries, and as it gathers
momentum the demand for our exports should
intensify. However, our foreign trade balance
is likely to narrow this year because our economic expansion will lead to an enlarged demand for imports—including products, such as
petroleum and industrial supplies, that fell off
sharply during the recession.
Business capital spending can also be expected to contribute to economic recovery during 1976. This sector of demand has yet to show
convincing signs of an upturn, but business
fixed investment often lags behind other major
categories of demand during the early stages of
a recovery. With rates of capacity utilization on
the increase, corporate profits moving up
strongly, the stock and bond markets improving,
and business confidence gaining, we can reasonably expect considerable strengthening this
year of business plans for buying new equipment and building new facilities—as normally
happens in the course of a business cycle expansion.
The strength of recovery in business investment outlays this year, however, will depend



to a large degree on the vigor of consumer
markets. Businessmen across our land are still
making plans for the future with great caution.
While the recent improvement in consumer
buying has been encouraging, the present more
optimistic mood of consumers could be destroyed by a new burst of inflation. Any resurgence in the pace of inflation this year would
pose a threat to consumer and business confidence, and thus to the further recovery of economic activity that is so urgently needed.
We as a Nation made notable progress last
year in reducing the rate of inflation. The rise
in consumer prices came down to 7 per cent,
about half the rate recorded in 1974. The rise
in wholesale prices slowed down even more.
These improvements reflected slack demand in
product markets and increased competitive
pressures, but they were evidenced mainly in
the first half of last year.
In fact, there has been some worsening in
the rate of inflation since the middle of 1975.
One troublesome sign has been the acceleration
in wholesale prices of industrial commodities.
During the second half of 1975, these prices
increased on the average at an annual rate of
almost 9 per cent, compared with 3V4 per cent
in the first half. The advance of consumer prices
quickened less rapidly—from an annual rate of
6.6 per cent in the first half of 1975 to 7.5 per
cent in the final 6 months. But the rate of
inflation in consumer markets could worsen further if recent sharp increases in wholesale prices
are passed through to the retail level.
The trend of wage increases, while understandable, is also disturbing. Last year wage
rates rose on the average by 8 per cent—far
above the long-term rate of growth in productivity. This year, major collective bargaining
agreements covering almost twice as many
workers as in 1975 will need to be negotiated.
If wage settlements in major industries exceed
those of 1975—when wage and benefit increases
for the first year already averaged around 11
per cent—a new explosion of wages, costs, and
prices may be touched off.
Some step-up in the rate of inflation was
perhaps unavoidable during the latter half of last
year, in view of the vigor of economic recovery.
As the recovery proceeds, however, it is clearly

Statements

the responsibility of government to manage
economic policies so that a new wave of inflation, which would wreck our chances of lasting
prosperity, is avoided.
Our country is now confronted with a serious
dilemma in its search for ways to move the
economy toward full employment. Conventional thinking about stabilization policies is
proving inadequate. Stimulative financial policies have considerable merit when unemployment is extensive and the price level is stable
or declining. But such policies do not work well
if the price level keeps on rising while there
is considerable slack in the economy. Recent
experience both in our own and other industrial
countries suggests that once inflation has become ingrained in the thinking of a Nation's
businessmen and consumers, highly expansionist monetary and fiscal policies do not have their
intended effect. In particular, instead of fostering larger consumer spending, they tend to lead
to larger precautionary savings and sluggish
consumer buying. The only sound fiscal and
monetary policy today is a policy of prudence
and moderation.
Over the past year, the Federal Reserve has
sought to foster a financial climate conducive
to a satisfactory recovery, but at the same time
to minimize the chances of rekindling inflationary pressures. Last spring, in our first report
pursuant to House Concurrent Resolution 133,
we announced the growth rates of the monetary
and credit aggregates that we would be seeking
over the next year in the furthering of these
objectives.
A growth range of 5 to IV2 per cent was
adopted for M t —that is, currency plus demand
deposits held by the public. Higher growth
ranges were specified for the broader monetary
aggregates. For M 2 , which also includes time
and savings deposits other than large certificates
of deposit (CD's) at commercial banks, the
growth range was initially set at SV2 to IOV2
per cent, and subsequently widened by reducing
the lower end of the band to IV2 per cent. For
a still broader monetary composite, M 3 , which
also includes deposits at thrift institutions, the
range was initially set at 10 to 12 per cent, and
then widened to 9 to 12 per cent.
At the time these ranges were established,




to Congress

121

concern was expressed by some economists, as
well as by some members of the Congress, that
the rates of monetary growth we were seeking
would prove inadequate to finance a good economic expansion. Interest rates would rise
sharply, it was argued, as the demand for money
rose with increased aggregate spending, and
shortages of money and credit might soon choke
off the recovery.
We at the Federal Reserve did not share this
pessimistic view. We knew from a careful
reading of history that the turnover of money
balances tends to rise rapidly in the early stages
of an economic upswing. Consequently, we
resisted the advice of those who wanted to open
the tap and let money flow out in greater abundance.
Subsequent events have borne out our judgment. Increases in the turnover of money balances have been even larger than we at the
Federal Reserve had anticipated. Over the past
two quarters, the velocity of Mx—that is, the
ratio of GNP to Mx—increased at an annual rate
of over 10 per cent, the largest increase for any
half year in the past quarter century. Moreover,
this rise in velocity was not associated with
higher rates of interest or developing shortages
of credit. On the contrary, conditions in financial markets continued to ease, and are more
comfortable now than at any time in the past
2 years.
There is a striking contrast between the
movement of interest rates during the current
recovery and their behavior in past cyclical
upswings. Short-term interest rates normally
begin to move up at about the same time as
the upturn in general business activity, although
the extent of rise varies from one cycle to
another. In the current economic upswing, a
vigorous rebound of activity, a continuing high
rate of inflation, and a record volume of Treasury borrowing might well have been expected
to exert strong upward pressures on short-term
interest rates. However, after some run-up in
the summer months of last year, short-term rates
turned down again last fall and have since then
declined to the lowest level since late 1972.
Long-term rates have also moved lower; yields
on high-grade new issues of corporations are
now at their lowest level since early 1974.

122

Federal Reserve Bulletin • February 1976

Conditions in financial markets thus remain
favorable for economic expansion. Interest rates
are generally lower than at the trough of the
recession. Savings flows to thrift institutions are
still very ample, and commitments of funds to
the mortgage market are still increasing
strongly. Mortgage interest rates are therefore
edging down.
Moreover, the stock market has been staging
a dramatic recovery. The average price of a
share on the New York Stock Exchange at
present is about 60 per cent above its 1974 low.
A large measure of financial wealth has thus
been restored to the millions of individuals
across our land who have invested in common
stocks. Besides this, the improvement in the
stock market has made it considerably easier for
many firms to raise equity funds for new investment programs or for restoring their capital
cushions.
In general, the liquidity position of our Nation's financial institutions and business enterprises is now much improved. Corporations
issued a record volume of long-term bonds last
year, and used the proceeds to repay short-term
debts and to acquire liquid assets. Commercial
banks reduced their reliance on volatile funds
and added a large quantity of Federal securities
to their asset portfolios. The liquidity position
of savings banks and savings and loan associations has likewise been strengthened.
The market for State and local government
securities has, of course, been adversely affected by the New York City financial crisis.
Even in this market, however, interest rates are
now below their 1975 highs, and the volume
of securities issued has remained relatively
large. The difficulties of New York City, moreover, have had a constructive influence on the
financial practices of State and local governments—as well as on other economic units—
throughout the country. The emphasis on sound
finance that is now under way enhances the
chances of achieving a lasting prosperity in our
country.
These notable accomplishments in financial
markets indicate, I believe, that the course of
moderation in monetary policy pursued by the
Federal Reserve last year has contributed to
economic recovery. The Board was pleased to



learn that the Senate Banking Committee, in its
recent "Report on the Conduct of Monetary
Policy," agrees with this view.
Since last spring, growth rates of the major
monetary aggregates—though varying widely
from month to month—have generally been
within the ranges specified by the Federal Reserve. Thus, on a seasonally adjusted basis, the
quarterly average level of Mx rose over the past
three quarters at an annual rate of 5.7 per cent;
M2 rose at a rate of 9 per cent, while M 3 rose
at a rate of 12 per cent. The growth rate of
Mx was toward the lower end of the specified
range, while growth in M 2 was near the midpoint of its range. Growth in M 3 , on the other
hand, was at the upper end of its range.
The growth rates that I have just cited reflect
new seasonal adjustment factors, published a
few weeks ago, that emerged from an intensive
review by the Federal Reserve staff of the
process of making seasonal adjustments in our
monetary statistics. This review revealed some
facts about the behavior of money supply data
that I believe this committee should have at its
disposal.
Seasonal adjustment of the money stock, as
with other economic time series, involves a
rather large element of judgment. I have attached to this statement a table1 showing
monthly, quarterly, and semiannual changes
in Mx that would be obtained by applying a
variety of plausible seasonal adjustment procedures. The results differ by a wide margin. For
example, in November, the seasonally adjusted
annual rate of change in Mx may be estimated
in a range running from 3 per cent to 13 per
cent; for December, the range is from —7 per
cent to + 3 per cent. In view of such wide
ranges, no one can say with any confidence what
happened to the seasonally adjusted stock of
money in those months.
These observations on seasonal measurement
reinforce a judgment that I have frequently
expressed, namely, that many financial observers attach a degree of importance to shortrun movements of money balances that cannot
1
Available upon request from Publications Services,
Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D.C.
20551.

Statements to Congress

be justified. In any event, it is doubtful whether
small monthly changes in the stock of money
balances have any real meaning for economic
activity. The narrowly defined money stock,
Ml9 totals at present nearly $300 billion.
Whether that stock increases in any one month
to $301 billion or to $302 billion—the difference between an annualized growth rate of
4 per cent and one of 8 per cent—is unlikely
to have a perceptible impact on the condition
of the real economy.
Over longer periods, of course, such technical
considerations as seasonal adjustment create
fewer difficulties in interpreting movements of
the various measures of money balances. But
there are other problems of interpretation that
must be recognized in evaluating monetary policy. We are living in a world of very rapid
change in financial technology. New financial
practices have been spreading through our markets for the past 20 or 30 years. Of late, moreover, the innovative process has accelerated,
and it appears that the amount of money needed
during the past year or two to finance a given
dollar volume of GNP has been substantially
smaller than would have been the case earlier.
Economists have sought for many years to
measure the public's demand for money by
relating this magnitude to the level of the gross
national product, to interest rates, and to other
measurable factors. These money demand relations play an important role in most econometric
models of the economy. The Board's staff uses
such a model as one tool, among others, in
analyzing economic and financial developments.
While the money demand equation in this model
has fairly often yielded poor predictions for
individual quarters, these errors did not tend to
cumulate. In other words, predictions for a
series of quarters tended to fluctuate around the
actual level of the narrowly defined money
stock, rather than to diverge progressively from
it.
Since the third quarter of 1974, however, this
equation has persistently and increasingly overpredicted the amount of money demanded by
the public to finance transactions. By the last
quarter of 1975, the overprediction had cumulated to $19 billion—about 6 per cent of the
actual level of Mt. This means that if relation


123

ships that existed on the average over the postwar period had continued to hold, growth in
Mx at an annual rate of about 8V2 per cent would
have been needed during the past six quarters
to finance the observed rise in nominal GNP
at the interest rates that actually prevailed. The
actual growth rate of Mx during those six quarters was only about half that large.
A number of factors are clearly responsible
for the reduction in the amount of money needed
to finance the rise in GNP, but their quantitative
importance is difficult to ascertain. One important consideration is the rise of interest rates to
unprecedented levels in 1974. The attractiveness
of high yields on a variety of close substitutes
for demand deposits led to the development of
new techniques of cash management that have
continued in usage since then. As a result,
businesses and consumers are now keeping a
larger fraction of their transactions and precautionary balances in interest-bearing liquid
assets.
Moreover, as I have noted on previous occasions, numerous financial innovations and regulatory changes have facilitated the process of
economizing on the sums held in the form of
demand deposits. These developments have included the spread of overdraft facilities in
banks, increased use by consumers of generalpurpose credit cards, the growth of negotiable
order of deposit (NOW) accounts in New
Hampshire and Massachusetts, the emergence
of money market mutual funds, the development
of telephonic transfers of funds from savings
to checking accounts, and the growing use of
savings deposits to pay utility bills, mortgage
payments, and other obligations.
One very recent development that has had a
considerable impact on the behavior of Mx was
the regulation issued by the banking agencies
last November, which enabled partnerships and
corporations to open savings accounts at commercial banks in amounts up to $150,000. This
regulatory action was of considerable benefit to
small businesses. It also placed commercial
banks on a more nearly comparable footing with
savings and loan associations, which have long
been able to issue such accounts without any
limitation on size. A special survey conducted
by the Federal Reserve indicates that by January

124

Federal Reserve Bulletin • February 1976

7 around $2 billion had already been moved into
these new accounts at commercial banks. Since
the bulk of these funds probably were held
previously as demand balances, this shift of
deposits has undoubtedly accounted for a significant part of the weakness of Mx in late 1975
and early this year.
The relatively slow rate of growth in money
balances during recent months has been watched
carefully, and at times with considerable concern, by the Federal Reserve. In view of the
rather rapid pace of economic expansion, the
relative ease of financial markets, and the absence of any evidence of a developing shortage
of money and credit, we have been inclined to
view the recent sluggish rate of expansion in
Mx as reflecting the influence of various factors
that are reducing the amount of narrowly defined money needed to finance economic expansion. However, since we could not be entirely
certain of our views, we have taken steps recently to ensure that the rate of monetary expansion does not slow too much or for too long.
During the past 3 months or so, open market
policies have therefore been somewhat more
accommodative in the provision of reserves to
the banking system. This has been reflected in
a decline of the Federal funds rate to around
43A per cent. Last month, the discount rate was
lowered from 6 to 5V2 per cent. And on two
occasions—in mid-October and again in late
December—the Board reduced reserve requirements. These reductions were aimed principally
at encouraging a further lengthening of the maturities of time deposits of member banks, but
they also released nearly $700 million of reserves and thus enabled banks to support a
higher level of money balances.
In taking these steps, our objective has been
to stay on a course of monetary policy that will
continue to support a good rate of growth in
output and employment, while avoiding excesses that would aggravate inflation and create
trouble for the future. We recognize, however,
that recent developments with regard to economies in money use make it very difficult to
ascertain how much growth in money and credit
will be needed in 1976 to achieve our objectives. Substantial further economies of money
use could well be realized this year; on the other



hand, resumption of a more normal relationship
between the growth of money balances and the
growth of GNP is entirely possible.
In light of present conditions in the economy
and in financial markets, the Federal Open
Market Committee has projected growth ranges
of the monetary aggregates for the year ending
in the fourth quarter of 1976 that differ only
a little from those announced previously. For
M2 and M 3 , the projected growth ranges remain
at IVi to 10V2 per cent, and 9 to 12 per cent,
respectively. The growth range for M t has been
widened somewhat, to a 4% to IV2 per cent
band. The lowering of the bottom end of the
range takes into account, among other factors,
the transfer of funds from demand balances to
business savings accounts at commercial
banks—a development that lowers the growth
rate of Mu but leaves unaffected the growth
rates of M2 and M 3 .
The profound uncertainties that at present
surround monetary developments, particularly
the behavior of M u require a posture of exceptional vigilance and flexibility by the Federal
Reserve in the months ahead. We believe that
the growth ranges we have specified will prove
adequate to finance a good expansion of economic activity in 1976. In shaping monetary
policy, we will probably need to give more
weight under present circumstances to the behavior of broader monetary aggregates than to
movements in Mt. And we must certainly remain alert to the possibility that our longer-run
projected ranges may need to be altered in view
of ongoing changes in the financial world.
As my colleagues and I have frequently emphasized, the objectives of the Federal Reserve
are to assure enough money and credit to finance
a good expansion of economic activity and at
the same time protect the value of the dollar.
If the attainment of these objectives should, in
our judgment, require a change of the monetary
growth ranges that I have today specified, this
committee can be sure that we shall not hesitate
to do so.
Let me remind the committee, in this connection, that the growth rates of money and
credit presently desired by the Federal Reserve
cannot be maintained indefinitely without running a serious risk of releasing new inflationary

Statements to Congress

125

pressures. As the economy returns to higher
rates of resource utilization, it will eventually
be necessary to reduce the rate of monetary and
credit expansion. The Federal Reserve does not
believe the time for such a step has yet arrived.
But in view of the strong economic recovery
that has been under way since last spring, we
must be on our guard.
In closing, let me state once again that our
Nation cannot achieve the goal of full employ-

ment by pursuing fiscal and monetary policies
that rekindle inflationary expectations. Under
current conditions, the return to full employment is likely to depend heavily on policies that
will serve to reinvigorate the forces of competition and release the great energies of our people.
This is why structural reforms of our economy
deserve more attention from members of the
Congress and students of public policy than they
are as yet receiving.
•

Statement by Brenton C. Leavitt, Director, Division of Banking Supervision and Regulation,
Board of Governors of the Federal Reserve
System, before the Commerce, Consumer, and
Monetary Affairs Subcommittee of the Committee on Government Operations, U.S. House of
Representatives, February 3, 1976.

the condition of the banks and debtors as it
appeared in the depth of this country's most
severe recession since the 1930's. The picture
looks much brighter now for both banks and
their debtors. For the most part, the banks have
identified their weaknesses, have instituted corrective action, and have clearly demonstrated
the financial capacity and underlying strength
to overcome their difficulties.
Having noted our belief that prospects are
improved and that the problems are manageable,
I do not wish to dismiss the difficulties that were
encountered and to some extent still exist.
Clearly, the heavy loan losses that have been
reported by many major banks are an indication
that the difficulties were far from slight. The
nagging questions that this raises are: why did
these difficulties occur, and who was responsible
for them? Our staff at the Federal Reserve
believes the underlying cause of the weaknesses
that became apparent in the recent recession
can, to a significant extent, be traced to the
general economic and financial excesses of the
early 1970's. These excesses, however, were
by no means confined to the banking system.
This was a period of rapid growth of the economy and one in which a mood of unbridled
optimism prevailed. Much of American business was staffed and influenced by executives
who were born in the 1940's, schooled in the
1950's and 1960's, and who had never experienced a severe economic reversal. Mistakes
under such circumstances were inevitable. With
the advantages of hindsight, it is clear that
American business should have proceeded in
certain areas with more caution than it did.

I am pleased to respond to the committee's
request for information concerning the adequacy
and effectiveness of the examination, supervision, and regulatory functions of the Federal
Reserve System. In this connection, I note that
the committee indicated a particular interest in
these functions as they relate to so-called
"problem banks" and "problem bank holding
companies."
The term "problem," as it is applied to the
lists of banks and bank holding companies recently reported in the Nation's press, is an
unfortunate one because in most instances it
implies a more serious situation than exists.
These lists are maintained internally for purposes of insuring that closer supervisory attention is given those institutions that are experiencing some areas of weakness or that have
exposure to stress. Such lists are designed to
aid in this process and normally contain a summary of the firm's financial condition, a brief
discussion of its weakness or potential difficulty, the supervisory follow-up action taken,
and the progress being achieved.
I wish to emphasize that institutions appearing on these lists are rarely in danger of failure.
It should be noted that the news stories concerning these banks and bank holding companies were based on information that dealt with



One well publicized area that has resulted in

126

Federal Reserve Bulletin • February 1976

a number of troubled loans for banks is the real
estate investment trust (REIT) industry. The
REIT—designed to provide needed funding for
housing and other real estate projects, and existing because of tax advantages bestowed by
the Congress—is an example of the dangers of
too much too soon. The enormous volume of
funds that were pumped into the construction
industry by the REIT's resulted in overbuilding
in certain areas and ill-conceived projects in
others. These difficulties, together with other
stresses in the economy that were exacerbated
by the energy crisis, were major factors accounting for the increases in the volume of
troubled loans in the portfolios of some of the
Nation's banks. That the bankers or the regulators, for that matter, should have had the foresight to anticipate and thus avoid all of these
problems is perhaps expecting too much.
Nevertheless, the supervisory process was at
work during the period of the early 1970's. Let
me summarize for you the broad supervisory
steps that the Federal Reserve took during this
period:

June 1973—a letter was sent by Chairman
Burns to about 100 foreign-owned banking
institutions in the United States. The letter
requested cooperation in assuring that the
rate of bank credit expansion in the United
States was restrained.

April 1973—a letter signed by Chairman
Burns was sent to the Chief Executive Officer of each State member bank with deposits exceeding $100 million concerning
their loan commitment policy. The letter
stated in part that " . . . The apparent large
volume of bank commitments currently outstanding and sharply increased takedowns
thereunder are indicative of the need for
special attention to this subject at this
time. . . . "

Moreover, during this time, examiners were
examining individual banks and discussing with
management any significant problems. When
needed, examination personnel were requesting
additions to capital, improvement in liquidity,
and strengthening of lending policies. Governors of the Federal Reserve were speaking about
these problems and urging that remedial steps
be taken.
These actions obtained results. A number of
banks' and bank holding companies' managements recognized their problems and realigned
their lending policies to obtain more sound
credit decisions; improved, to the extent possible, their liquidity positions; added to capital
by slowing the rate of increase in cash dividends; added to capital funds by sale of subordinated debt; and, finally, adopted more manageable growth and expansion goals. The impact of the recent recession on the banking
system would have been much more severe than
it was if these actions had not been taken.
Let me now turn to the more specific areas
of bank and bank holding company supervision.
In discussing the Federal Reserve's supervisory

May 1973—a letter signed by Chairman
Burns was forwarded to all State member
banks requesting their cooperation in assuring that the rate of credit extension be appropriately disciplined. The letter stated in
part "Some key segments of the Nation's
economy are now growing at an unsustainable pace, thereby adding substantially to
inflationary pressures. Since excessive bank
loan expansion is a factor in this development, the Federal Reserve last week supplemented its previous policy actions by adopting several regulatory amendments with a
view to further curbing such expansion. I
am writing to you and to every other member
bank today on behalf of the Board to give
emphasis to these recent actions and to invite
your personal cooperation in assuring that
the rate of credit extension by your bank is
appropriately disciplined. . . . "




September 1974—the Board released a
statement on bank lending policies that had
been received from its Federal Advisory
Council. The letter urged that banks discipline their lending policies so as to exclude
loans for speculative purposes.
Beginning in early 1974 and continuing
through 1975, the Board began formulating
policies concerning bank holding company
expansion. A so-called "go slow" policy
was adopted because it was believed that
managerial and financial resources could
often be used more effectively to strengthen
the existing operations, particularly in the
bank subsidiaries, some of which had
experienced sharply declining capital ratios.
In 1974 and 1975 the Board, through its
statutory powers concerning applications for
foreign expansion, denied a number of applications of major banks stating, in effect,
that the capital of the organization should
be used to support existing business rather
than more expansion.

Statements to Congress

role, the Committee should bear in mind that
the System has direct supervisory responsibility
for State-chartered banks that are members of
the Federal Reserve System and Board-related
responsibilities as set forth in the Bank Holding
Company Act. For the purposes of our discussion today, I propose to address banks and bank
holding companies separately.
Regarding banks, more specifically State
member banks, the criteria for "flagging" the
institution for special supervisory attention include the quality of the institution's assets, the
adequacy of its capital, the strength of its earnings, its liquidity position, and the competency
of its management. These considerations are
reflected in what is known as a uniform rating
system. A detailed description of the rating
system is appended hereto. 1 It should be noted
that there is considerable flexibility in the assignment of individual ratings, and factors other
than those explicitly enumerated in the attached
description, particularly earnings and liquidity,
are considered.
At the conclusion of each examination of a
State member bank, the Reserve Bank rates the
condition of the bank on a scale of 1 to 4 based
on information developed by the examiners. I
have attached a list of ratings of State member
banks examined by the Federal Reserve during
the years 1971 through 1975 to the extent that
the reports have been completed. The Board of
Governors does not review or pass on these
ratings although it does receive periodic staff
reports on the condition of banks in the various
categories. Banks determined to be in satisfactory condition in all major respects are given
a rating of 1. About 66 per cent of the more
than 1,000 State member banks qualify for such
a rating.
Banks with one or more deficiencies in asset
quality, level of risk assets, management
strength, or liquidity, may be given a rating of
2 unless their capital position is strong enough
to offset such deficiencies. Banks in this category include many sound institutions that serve
their communities very well. Ordinarily, the
*A11 attached materials are available on request from
Publications Services, Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551.




127

managements of these banks respond promptly
to examiner criticisms.
Category 3 includes largely those banks having a relatively high volume of loans that need
careful attention. Over the past 2 to 3 years,
there has been an increase in the number and
especially in the size of banks placed in this
category. As I mentioned, I believe the underlying cause of this increase can, to a significant
extent, be traced to the excesses of the early
1970's that became apparent in the recent recession.
Category 4 includes banks with capital that
has been impaired and with aggravated deficiencies present in condition and management.
These banks usually require prompt and extensive attention to restore them to satisfactory
condition. Only a few State member banks are
so rated, less than 5 in any recent year.
While there are a number of banks that have
been flagged for special surveillance, the second
table illustrates that there has been a significant
turnover in individual banks on the list. Since
the beginning of 1970, for example, 75 banks
have been removed from the special surveillance
category while 107 were added. These data
demonstrate that most banks, upon recognizing
and identifying areas of trouble and potential
trouble, are able to institute corrective action
and overcome their difficulties. This is an indication of the resiliency of the banking system.
We believe that it also illustrates that supervisory efforts on the part of the Federal Reserve
are timely and obtain results. Moreover, as
economic conditions improve, banks should be
able to improve the condition of their loan
accounts even more rapidly.
Although the Federal Reserve believes that
recent events tend on balance to confirm the
appropriateness of its supervisory policies, it
nevertheless has been conducting a number of
studies to develop even better means for preventing such situations from occurring and for
resolving them as soon as possible. Attention
has been focused on a number of issues including the following: the attenuation of bank capital
produced by the rapid expansion of bank assets
partly, but not entirely, induced by inflation;
bank liquidity problems, particularly heavy reliance on liability management; a deterioration

128

Federal Reserve Bulletin • February 1976

in the quality of bank assets; increased risk of
losses in bond trading departments of banks;
and, the improvement and updating of examination techniques and procedures.
As a result of these studies and recent banking
developments, the Board has made several legislative proposals and has proposed changes in
certain regulations. Steps have also been taken
to strengthen and expedite follow-up procedures, and guidelines delineating a graduated
range of alternative procedures to be implemented in correcting troublesome cases have
been adopted. The steps range from early attempts at "moral suasion" to meetings of the
bank supervisors with boards of directors, and,
in aggravated cases, the issuance of cease and
desist orders. Since 1972, the Board has issued
17 cease and desist orders. The orders have dealt
with such problems as deficiencies in loan collection policies, excessive dividends, insider
dealings, unsound securities transactions, and so
forth.
Turning briefly to the area of bank holding
company supervision, I would like to note that
the difficulties that have been experienced here
are interrelated with bank problems but are also
unique in some respects. Although there have
been a number of acquisitions of nonbank entities by bank holding companies since the 1970
amendments to the Bank Holding Company
Act, in terms of assets or earnings, holding
companies, for the most part, are overwhelmingly dominated by their banks.
The Board's interest in bank holding companies is twofold. First, since it is responsible for
determining permissible activities, it has a particular interest in the financial soundness of
these new ventures and their impact on the
over-all stability of the banking system. Secondly, the Board also has responsibility for
general oversight of bank holding companies
and for considering the financial and managerial
resources of individual holding companies in
connection with action on applications submitted. In connection with these various responsibilities, the Federal Reserve has undertaken
efforts to monitor the financial condition of bank
holding companies and their nonbank subsidiaries.
The primary considerations in "flagging" a




bank holding company for special surveillance
and monitoring include: the condition of its
subsidiary banks; the ability of the parent holding company and its nonbank subsidiaries to
meet their cash needs; and the asset condition
of significant nonbank subsidiaries as well as
the impact of the operations of these entities
on the over-all profitability of the organization.
The analytical process focuses on the impact
of the parent bank holding company and the
nonbank subsidiaries on the subsidiary bank.
Experience has indicated that there are three
potential haz:ards. The first relates to the public's
identification of the holding company and the
nonbank subsidiaries with an affiliated bank and
the adverse impact that failure of a nonbank
subsidiary may have on the public confidence
in the bank. The second arises from the risk
that strains in the nonbank subsidiaries and
holding company may result in the transfer of
inferior assets from the nonbank subsidiaries or
parent bank holding company into the bank. The
third results from the excessive dependency of
the bank holding company upon the subsidiary
banks for needed cash flow, generally in the
form of dividends.
With respect to the second concern, the Board
recently asked the Presidents of the Reserve
Banks to forward a letter to the Chief Executive
Officer of each bank holding company, noting
that the sale of assets from a nonbank subsidiary
to a bank could be a violation of Section 23(A)
of the Federal Reserve Act. The letter is attached for the committee's information.
The third potential problem is exacerbated by
the existence of excessive debt in the holding
company, which may cause unduly large dividends to be paid by the bank—to its own detriment. One method that may contribute to such
a condition is a technique called "bootstrapping." Briefly, "bootstrapping" is a process
whereby the holding company, with the proceeds of loans that are generally secured by
stock of the subsidiary banks, purchases its own
shares, thereby reducing its net worth and increasing its debts. On December 11, 1975, the
Board published for comment a proposed
amendment to its holding company regulation
designed to deal with this specific problem. A
copy of that proposed amendment is attached.

Statements to Congress

The Board believes that the bank holding
company should serve as a source of strength
for its subsidiary banks. In those few cases
where the operation of the bank holding company constitutes a threat or potential drain on
the strength of the bank, as I outlined above,
that holding company is designated for special
surveillance.
In January 1975, 35 separate bank holding
companies were included on the Federal Reserve's list of bank holding companies receiving
more than normal supervisory attention. With
respect to individual companies included in the
January 1975 report, improvement in the economy and management's awareness of their respective problems as well as the implementation
of corrective programs have ameliorated many
of the adverse conditions indicated in that report.
At the present time, the Board's staff is monitoring the condition of 63 bank holding companies, some of which were included in the
January 1975 report. While the total number of
companies has increased, it should be remembered that improvement relating to certain types
of loans and to certain regional economies typically lags behind recovery in the national economy. Therefore, we feel confident that continued improvements in the national economy and
vigorous supervision will result in a reduction
in the number of holding companies requiring
supervisory attention.
In discharging its responsibilities as outlined
in the Bank Holding Company Act, the Board
has at its disposal a number of supervisory tools,
which can be employed to meet specific objectives. Perhaps the most effective supervisory
measure available to the Board is its statutory
authority to permit or deny bank holding company acquisitions and expansion. Denial of
applications or conditioned approvals have
proven to be valuable in achieving correction




129

of troublesome bank holding company situations.
In addition to the applications process, the
staff of the Federal Reserve meets with selected
holding company managements to discuss unsatisfactory trends and to review progress under
corrective programs that are in place. In some
five cases where it was deemed warranted, the
Reserve Bank has entered into agreements in
writing with holding companies. Such agreements set forth certain conditions and outline
corrective measures. In aggravated cases, the
Board has also used its authority under the
Financial Institutions Supervisory Act. Since it
received such authority in 1974, the Board has
taken ten cease and desist actions against bank
holding companies.
We believe that the present remedies available to the Federal Reserve are sufficient to
effect correction in the most troublesome areas.
Nevertheless, as a result of a continuous review
of the bank holding company movement and its
effect on the banking system, we fully expect
that, from time to time, the Federal Reserve will
seek new legislation designed to deal with the
changing environment. One item of legislation
that would be especially helpful would be authority to assess civil penalties for violations of
the Bank Holding Company Act. That and other
legislation was recommended to Senator Mclntyre by Chairman Burns in his letter of September 5, 1975.
In conclusion, let me reiterate that while there
are banks and bank holding companies in the
United States with some fairly serious asset
problems, we believe that both banks and bank
holding companies have demonstrated the capacity to correct these difficulties given a reasonable period of time. Furthermore, we believe
that supervisory efforts of the Federal Reserve
prevented the development of more serious situations and have helped to prompt the remedial
actions now under way.
•

Additional statements follow.

130

Federal Reserve Bulletin • February 1976

Statement by Brenton C. Leavitt, Director, Division of Banking Supervision and Regulation,
Board of Governors of the Federal Reserve
System, before the Subcommittee on Antitrust
and Monopoly of the Committee on the Judiciary, U.S. Senate, February 4, 1976.
Mr. Chairman and members of this distinguished committee, it is indeed an honor for
me to appear before this committee on behalf
of the Board of Governors of the Federal Reserve System. As I understand my function here
today, it is to share with you some experiences
the Board has had in its regulatory capacity.
Specifically, I will be commenting on a portion
of Section 3(a) of the proposed Competition
Improvements Act of 1975. The Board has
submitted its views on all sections of the legislation in a separate report to Senator Eastland.
I do not intend my remarks to be for or against
passage of the proposed Act, but hope to be
of service to the legislative process by sharing
our experience with statutory frameworks that
are very similar to one part of Section 3(a) of
the Competition Improvements Act.
Section 3(a) of the proposed Act requires that
" . . . no agency shall take any action . . .
the result or effect of which may tend to create
or maintain a situation inconsistent with the
policies or provisions of the antitrust laws unless
it finds that . . . the anticompetitive effects are
clearly outweighed in the public interest by
significant and demonstrable benefits to the
general public. . .
Since their amendments
in 1966, the Bank Merger Act and the Bank
Holding Company Act have mandated the Board
of Governors to operate under a similar standard: "The Board shall not approve any acquisition or merger or consolidation under this section which would . . . be in restraint of trade,
unless it finds that the anticompetitive effects
of the proposed transaction are clearly outweighed in the public interest by the probable
effect of the transaction in meeting the convenience and needs of the community to be
served;" In addition, the 1970 amendments to
the Bank Holding Company Act authorized the
Board to pass on certain "nonbank" acquisitions by bank holding companies. The Bank
Holding Company Act, as amended in 1970,



instructs the Board that: "In determining
whether a particular activity is a proper incident
to banking or managing or controlling banks the
Board shall consider whether its performance
by an affiliate of a holding company can reasonably be expected to produce benefits to the
public . . . that outweigh possible adverse
effects, such as . . . decreased or unfair competition. . . . " Thus, the Federal Reserve Board
has had firsthand experience in applying a statutory standard which, like Section 3(a) of the
proposed Competition Improvements Act of
1975, requires the balancing of anticompetitive
effects against other public interest considerations.
I think it may be helpful to note at this point
that although the Board balances positive and
negative factors in reaching the typical administrative decision under the Bank Holding Company Act, the Board has no authority to apply
a balancing test to the most extreme anticompetitive situation—that is, where the proposed
acquisition would result in monopoly. Section
3(c) of the Bank Holding Company Act says
flatly that:
The Board shall not approve any acquisition
or merger or consolidation under this section
which would result in a monopoly, or which
would be in furtherance of any combination
or conspiracy to monopolize or to attempt
to monopolize the business of banking in any
part of the United States. . . .

Thus, if the Board were ever presented with an
acquisition proposal that would result in monopoly or a conspiracy or attempt to monopolize, it would not be free to balance these harsh
anticompetitive effects against positive convenience and needs factors. Generally, the Board
understands its role in balancing the issues to
mean that significant anticompetitive effects—
short of monopoly—must be clearly overcome
by substantial and demonstrable public interest
considerations.
During the 10-year period 1966 through
1975, the Board and the 12 Federal Reserve
Banks decided over 2,300 banking cases. Approximately 500 of these cases were decided by
the Reserve Banks under authority delegated to
them by the Board beginning in 1972. These
cases involved the formations of bank holding
companies, the acquisitions of additional banks

Statements to Congress

by existing bank holding companies, and certain
mergers between banks. In denying 163 of these
applications, it was the Board's judgment that
other public interest factors did not outweigh
likely anticompetitive effects or unsound banking and financial situations. These denials also
served as a useful way of communicating to the
industry the types of cases that would not satisfy
the public interest criteria of the statutes. The
Board also believes that, on balance, the public
interest was served by approval of the large
number of applications during the 10-year period. As evidence tending to show that these
approved banking cases did not have net anticompetitive effects, it should be noted that only
17 of approximately 2,200 cases approved by
the System were subsequently challenged by the
Justice Department as violative of antitrust laws.
Moreover, of the six cases that were tried, none
resulted in a judicial determination that the
antitrust laws had been violated. It would appear
from these figures that during the 1966-75 period, banking cases were decided by the Board
in a manner consistent with antitrust standards.
This record was achieved within the framework
of statutes that mandate a balancing of competitive and other public interest factors. A similar
balancing approach is proposed in the Competition Improvements Act of 1975.
The Federal Reserve System has also made
a large number of decisions in "nonbank"
cases. These cases include bank holding company acquisitions of mortgage banking companies, consumer finance companies, and other
"nonbank" companies pursuant to the amended
Bank Holding Company Act. As mentioned
earlier, the 1970 amendments require the Board
to weigh expected public benefits against possible adverse effects, including decreased or unfair competition. During the 5-year period 1971
through 1975, the System approved approximately 2,100 and denied 45 "nonbank" acquisitions. It should be noted at this point that over
1,600 of these "nonbank" cases were approved
by the Reserve Banks under delegated authority
and involved the establishment of de novo offices rather than the acquisition of going concerns. To the Board's knowledge, none of the




131

approved acquisitions has been challenged as
violative of antitrust law. On the basis of the
record, it would appear that the "nonbanking"
cases were decided in a manner consistent with
antitrust and public interest standards.
The Board also wishes to comment on the
nature of the convenience and needs factors and
public benefits that it has taken into consideration pursuant to its statutory mandates. The
Board believes that such public interest factors
have been substantial, and thus further illustrate
that the balancing-of-interests approach, which
is proposed in Section 3(a) of the Competition
Improvements Act, may be an important administrative tool in serving the public interest.
Some of the specific benefits claimed by applicants are: (1) the introduction of new banking
or nonbanking services to a community, (2)
increases in banking hours and banking days,
(3) the introduction or upgrading of electronic
data processing facilities, (4) the lowering of
service charges or prices on bank and nonbank
product lines, (5) the upgrading of managerial
resources, (6) increases in capital, and (7) the
opening of new offices. These examples are
offered in support of the Board's view that
public interest factors have real substance and
are thus appropriate considerations in the regulatory process. Moreover, the Board and its staff
analyze all claimed public benefits to determine
their substance and their relevance to the affected communities. For a more detailed examination of the nature and importance of public
interest factors in the Board's regulatory
process, I offer for the record three papers that
originated within the Federal Reserve System
in past years. 1
1

Brenton C. Leavitt, 4 'What the Fed Likes to See
in an Application," speech presented at a conference
on "The Emerging Ground Rules for Bank Expansion,"
sponsored by The Bankers Magazine and Banking Law
Journal, Washington, D.C., Dec. 10, 1973; M. lessee
and S. Seelig, "An Analysis of the Public Benefits Test
of the Bank Holding Company Act," Monthly Review
of the Federal Reserve Bank of New York (June 1974);
and Jeffrey M. Bucher, "Public Interest Factors and
the Bank Holding Company Act," speech presented to
the Bank Counsel Seminar of the California Bankers
Association (Santa Barbara, California, Apr. 26, 1974).

132

Federal Reserve Bulletin • February 1976

Statement by Robert C. Holland, Member,
Board of Governors of the Federal Reserve
System, before the Committee on Banking,
Housing, and Urban Affairs, U.S. Senate,
February 5, i976.

I am pleased to appear before this committee
on behalf of the Board of Governors of the
Federal Reserve System to review the System's
performance in supervising the banking institutions under its jurisdiction. I know that the
committee is particularly interested in how
banks experiencing financial difficulty are identified and treated by the regulatory agencies.
As we are all aware, there have been a
number of unauthorized disclosures and much
comment recently in the press about banks and
bank holding companies that have been placed
on the so-called "problem" lists by the supervisory authorities. Indeed, such disclosures, to
some extent, prompted these hearings and are
responsible for my being here before you today.
The Board, therefore, welcomes this opportunity to assure the committee and the American
public that the U.S. banking system remains
sound and that the Federal Reserve has been
responsive to its supervisory responsibilities
with respect to the more than 1,000 State member banks in our system.
However, before beginning my discussion of
the specific areas in which the committee has
expressed an interest, I wish to make a few brief
comments about the lists of so-called "problem
banks" and "problem bank holding companies." As many of the representatives from the
regulatory agencies have been quick to point
out, the term "problem" as it relates to these
institutions is an unfortunate one in that it implies to the public a more severe condition than
actually exists in most cases. The majority of
banking organizations appearing on the lists
maintained by the Federal Reserve are institutions that have encountered some difficulties and
that have been identified as being in need of
more than the usual degree of supervisory attention and monitoring. But, these institutions
are not in imminent danger of failure. On the
contrary, most have identified their problems,
have demonstrated the capacity to overcome




them, and are making substantial progress.
These positive steps, coupled with the improving trend in economic activity and the substantial reduction in the rate of inflation that is being
achieved, make the prospects for the future of
the economy, and, therefore, the banking system, brighter than has been the case for some
time.
While we believe that the Nation's banks are
generally well able to cope with their loan and
asset problems, we do not wish to treat lightly
the difficulties that were encountered and that,
to some extent, still exist. The seeds of these
difficulties were sown in the early 1970's when
the banking system and the economy were
growing at unsustainable rates. With the advantage of hindsight, it is clear that there were a
number of mistakes made during this period.
Among those mistakes were: the overstimulation of the construction industry brought about
to a significant degree by the proliferation of
real estate investment trusts (REIT's); the failure to recognize and prepare for the impending
energy crisis; the inadequacy of fiscal planning
among many of the Nation's cities and political
subdivisions; and, finally, the establishment of
growth rather than quality goals by some banking institutions. It is quite clear that these mistakes are the underlying cause of the heavy
volume of troubled loans and investments in the
portfolios of some of the Nation's banks. To
suggest that bankers themselves or the bank
supervisors should have had the foresight to
anticipate all of the problems and thus avoid
them is to expect a great deal, especially in the
climate of unbridled optimism that prevailed at
the time.
By way of caveat, it would be unfair if I did
not point out that some of the growth of the
banking system that took place during this period resulted from inflationary pressures. In our
environment of double-digit inflation, for example, many public utilities and others turned
to the banking system when they were unable
to obtain needed funding from internal sources
or through the capital markets. To their credit,
many banks, though already feeling the pressure
of excessive loan demand, met these needs.
These actions aside, however, there were clearly
some excesses.

Statements to Congress

The Federal Reserve did recognize fairly
early the hazards of the speed and direction in
which financial institutions were moving. A
number of supervisory steps designed to slow
and focus banking growth were taken. Those
steps included:
April 1973—a letter signed by Chairman
Burns was sent to the Chief Executive
Officer of each State member bank with
deposits exceeding $100 million concerning
their loan commitment policy. The letter
stated in part that " . . . The apparent large
volume of bank commitments currently outstanding and sharply increased takedowns
thereunder are indicative of the need for
special attention to this subject at this time.
May 1973— a letter signed by Chairman
Burns was forwarded to all State member
banks requesting their cooperation in assuring that the rate of credit extension be appropriately disciplined. The letter stated in
part "Some key segments of the Nation's
economy are now growing at an unsustainable pace, thereby adding substantially to
inflationary pressures. Since excessive bank
loan expansion is a factor in this development, the Federal Reserve last week supplemented its previous policy actions by adopting several regulatory amendments with a
view to further curbing such expansion. I
am writing to you and every other member
bank today on behalf of the Board to give
emphasis to these recent actions and to invite
your personal cooperation in assuring that
the rate of credit extension by your bank is
appropriately disciplined. . . . "
June 1973—a letter was sent by Chairman
Burns to about 100 foreign-owned banking
institutions in the United States. The letter
requested cooperation in assuring that the
rate of bank credit expansion in the United
States is restrained.
September 1974—the Board released a
statement on bank lending policies that had
been received from its Federal Advisory
Council. The letter urged that banks discipline their lending policies so as to exclude
loans for speculative purposes.
Beginning in early 1974 and continuing
through 1975, the Board began formulating
policies concerning bank holding company
expansion. A so-called "go slow" policy
was adopted because it was believed that
managerial and financial resources could
often be used more effectively to strengthen
the existing operations, particularly in the
bank subsidiaries, some of which had experienced sharply declining capital ratios.




133

In 1974 and 1975, the Board through its
statutory powers concerning applications for
foreign expansion, denied a number of applications of major banks stating, in effect,
that the capital of the organization should
be used to support existing business rather
than more expansion.

Moreover, during this time examiners were
examining individual banks and discussing with
management any significant problems. When
needed, examination personnel were requesting
additions to capital, improvement in liquidity,
and strengthening of lending policies. Governors of the Federal Reserve made public addresses about these problems and urged that
remedial steps be taken.
These actions obtained results. A number of
banks' and bank holding companies' managements recognized their problems and realigned
their lending policies to obtain better credit
decisions; improved, to the extent possible,
their liquidity positions; added to capital by
slowing the rate of increase in cash dividends;
added to capital funds by sale of subordinated
debt; and, finally, adopted more manageable
growth and expansion goals. The impact of the
recent recession on the banking system would
have been much more severe than it was, if
these actions had not been taken.
I would be remiss if I did not point out that
the banking system, to its credit, is making good
progress in working its way out of these
difficulties without the benefit of massive Government assistance. As you may recall, there
was considerable discussion this past year about
the need for establishing a Reconstruction Finance Corporation (RFC) program to provide
assistance to troubled firms in a variety of industries and activities that had borrowed in
excess of their debt servicing capacities. This
does not seem necessary now since the banks
have demonstrated their capacity to arrange for
orderly workout of loans in many problem
cases, and, where this was not possible to absorb the necessary losses through earnings
power and still continue as viable, sound institutions.
Let me turn now to the more specific areas
in which the committee has expressed an interest. I have submitted, for the record, information concerning the details of some of the pro-

134

Federal Reserve Bulletin • February 1976

cedures, tests, and methodology employed in
the examination of a bank for which the committee made inquiry. For the purposes of this
testimony, however, I will touch on the broader
aspects of bank supervision, will bring the
committee up to date on what we are doing to
improve it, and discuss some of our broad areas
of concern.
In the process of identifying those banks that
are in need of more than the usual degree of
supervision or monitoring, consideration is
given to the quality of the bank's assets, the
adequacy of its capital, the strength of its earnings, its liquidity position, and the competency
of its management. Although there are benchmark measurements for some of these factors,
as illustrated in the attached description of the
uniform system for rating banks, 1 considerable
judgment by individuals with years of experience is brought to bear in the final decision as
to whether or not a particular institution should
be considered as warranting special surveillance. The determination of the need for special
surveillance may be based on the presence of
an existing or a potential problem.
At the conclusion of each examination of a
State member bank, the Reserve Bank rates the
condition of the bank on a scale of 1 to 4, based
on information developed by the examiners. I
have attached a list of ratings of State member
banks examined by the Federal Reserve during
the years 1971 through 1975 to the extent the
reports have been completed. The Board of
Governors does not review or pass on these
ratings although it does receive periodic staff
reports on the condition of banks in the various
categories. Banks determined to be in satisfactory condition in all major respects are given
a rating of 1. About 66 per cent of the more
than 1,000 State member banks qualify for such
a rating.
Banks with one or more deficiencies in asset
quality, level of risk assets, management
strength, or liquidity, may be given a rating of
2 unless their capital position is strong enough
1
A11 attached materials are available on request from
Publications Services, Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551.




to offset such deficiencies. Banks in this category include many sound institutions that serve
their communities very well. Ordinarily, the
managements of these banks respond promptly
to examiner criticisms.
Category 3 includes largely those banks having a relatively high volume of loans that need
careful attention. Over the past 2 to 3 years,
there has been an increase in the number and
especially in the size of banks placed in this
category. As I mentioned, I believe the underlying cause of this increase can, to a signficant
extent, be traced to the inflationary excesses of
the early 1970's that became apparent in the
recent recession.
Category 4 includes banks with capital that
has been impaired and with aggravated deficiencies present in condition and management.
These banks usually require prompt and extensive attention to restore them to satisfactory
condition. Only a few State member banks are
so rated, less than five in any recent year.
While there are a number of banks that have
been flagged for special surveillance, there has
been a significant turnover in individual banks
on the list. Since the beginning of 1970, for
example, 75 banks have been removed from the
special surveillance category, while 107 were
added. These data demonstrate that most banks,
upon recognizing and identifying areas of trouble and potential trouble, are able to institute
corrective action and overcome their difficulties.
This is an indication of the resiliency of the
banking system. We believe that it also illustrates that supervisory efforts on the part of the
Federal Reserve are timely and obtain results.
Moreover, as economic conditions improve,
banks should be able to improve the condition
of their loan accounts even more rapidly.
We also note the committee's interest in the
foreign activities of U.S. banks. This is an area
of increasing importance, as evidenced by the
fact that assets of foreign branches of U.S.
banks increased from $47 billion in December
1970 to more than $166 billion by September
1975. As further evidence of the increased volume of foreign activities by U.S. banks, a few
of the larger banking institutions of the United
States reported that upwards of one-half of their
total income last year represented income from

Statements to Congress

foreign activities. Clearly, this is an appropriate
area of inquiry for the committee.
The condition of every overseas branch of a
State member bank is reviewed during the annual examination of the bank. This review takes
two forms: either it is conducted exclusively at
the head office based on the reports and information there; or, head office records are scrutinized in connection with an on-site examination
of the foreign branches. Whether conducted at
the head office or on-site, the methodology in
reviewing the operations of foreign branches is
fundamentally the same as that employed for
domestic offices. Federal Reserve examiners
conduct a careful review of loans and other risk
assets to determine their collectibility. Of equal
importance is a review of audit reports to determine the range and effectiveness of the internal
controls in place at the overseas branches and
to ascertain the scope and accuracy of the data
forwarded to the head office for management
and supervisory use.
Emphasis is still concentrated on scrutiny of
head office records since, in Federal Reserve
experience, an understanding of the operations
of overseas branches necessarily involves the
head office. While credits are on the books of
overseas branches, they may well have been
negotiated and concluded at the head office and
supervision of the credit may be the responsibility of the head office. In addition, the senior
lending officers who approve major credits and
formulate the bank's lending policies are usually
located at the head office. The examiners need
to review reports from the overseas offices at
the head office where they can determine how
branch operations mesh into the bank's over-all
operations and reporting systems and where they
can determine how head office management
exercises control and supervision over the
foreign branches.
Periodically, examiners are sent to the
principal overseas branches of State member
banks in order to gain first-hand experience with
branch records, the market conditions in which
they operate, and with local branch management. While at the branch, the examiners also
try to satisfy themselves that the credit, operating, and audit reports sent to the head office
are accurate and complete. Information obtained




135

at the branches is then compared with that at
the head offices. This forms another basis for
discovering deficiencies in internal reporting and
management systems, which can then be called
to the attention of senior management for correction.
When on-site examinations are conducted, an
area of operations given particularly close attention is money market and foreign exchange
trading. The internal controls in place in this
area are carefully scrutinized so as to insure that
unauthorized transactions or losses do not go
undetected. The records of past transactions are
reviewed to determine that they were within the
guidelines established by senior management
and that exceptions to bank policies were reported to responsible bank officials.
The character of overseas branch banking is
changing rapidly. As the volume of business has
grown, American banks have found it necessary
to delegate greater credit and operational authority to officers in the overseas branches. As
a result, information at the head offices on many
borrowers at the branches is no longer so current
and complete. Because of this and the generally
increased complexity of international operations, supervisory practices within the Federal
Reserve System are being reviewed and revised.
While scrutiny of banks' foreign branches from
head office records will continue, it is clearly
recognized that more frequent on-site examinations of foreign branches may be required. Some
will be general in scope; others, confined to
specific segments of branch operations.
In some countries, of course, laws prevent
on-site examinations. For the branches in these
countries, supervision will necessarily be centered on assuring that sufficient information is
obtainable at head offices where it can be reviewed by examiners. Over the longer run,
international cooperation among banking authorities may result in different ways of mitigating this problem.
We have submitted, for the record, a table
indicating the coverage of on-site examinations
of foreign full service branches of State member
banks in the years 1971—75. Other foreign
branches were not ignored during these years;
rather, their activities were reviewed at the
banks' head offices, as explained earlier.

136

Federal Reserve Bulletin • February 1976

I wish to briefly discuss bank holding companies and the Board's action with respect to its
responsibilities under the Bank Holding Company Act. Although there have been a large
number of acquisitions of nonbank entities by
bank holding companies since the 1970 amendments to the Bank Holding Company Act, it
should be remembered that bank holding company organizations, for the most part, continue
to be overwhelmingly dominated by their banks.
The Board, however, recognizes that some of
the bank-related industries, most notably mortgage banking, have resulted in difficulties for
a few holding companies. In response to these
and other developments, the Federal Reserve
has stepped up its monitoring and surveillance
efforts.
In discharging its responsibilities as primary
regulator of bank holding companies, the Federal Reserve has at its disposal a number of
supervisory tools that can be employed to meet
specific objectives, although fewer than the
Congress has provided for dealing with banks.
These range from "moral suasion" to denial
of applications and, in aggravated cases, issuance of cease and desist orders.
We believe that the present remedies available to the Federal Reserve are sufficient to
effect correction in the most troublesome areas.
Nevertheless, as a result of continuous review
of the bank holding company movement and its
effect on the banking system, we fully expect
that, from time to time, the Federal Reserve will
seek new legislation designed to deal with the
changing environment. One item of legislation
that would be especially helpful would be authority to assess civil penalties for violations of
the Bank Holding Company Act. That and other
legislation was recommended to Senator Mclntyre by Chairman Burns in his letter of September 5, 1975.
In pointing up some of the difficulties that
a few bank holding companies have encountered, I do not wish to minimize the strengths
of many and the contributions that have been
made. The bank holding company movement
has resulted in improved competition in certain
sectors; has caused an increase in levels of
service in some areas thereby better meeting the
convenience and needs of the public; has pro


vided the vehicle for raising capital needed by
the subsidiary banks; and has resulted in better
management of some banks, particularly smaller
institutions. The Board believes that the bank
holding company movement, on balance, has
been in the public interest if all factors are taken
into account.
Finally, I would like to turn to the very
difficult subject of disclosure. Some argue that
bank examination reports should be in the public
domain, citing fears that financial institutions
are protected by a cloak of secrecy. This is just
not so. The fact is that the banking system is
one of the most highly regulated industries in
the United States. Disclosure requirements for
banks are very extensive. Banks, by statute, are
required to file with the supervisory agencies
and to publish in the local press a quarterly
Report of Condition. It should be noted that
supervisory agencies are in the process of expanding the information contained in this and
other reports that are available to the public.
In addition to these sources of information, most
of the large bank holding companies are registered with the Securities and Exchange Commission and are subject to reporting requirements under the Securities Exchange Act. As
anyone who has leafed through a 10-K report
is aware, the disclosure requirements are vast.
Still more information is available on individual
banks in the prospectus that is filed whenever
new capital is publicly marketed and in reports
filed with Federal bank regulators under the
securities laws. In addition, the long-term debt
of many bank holding companies is rated by
the rating services and much data and analyses
are available from market analysts. We favor
still more disclosure, but of standard information of the type revealed by other corporations,
not confidential examination data.
There is no dearth of information concerning
the activities of America's banks. The issue,
therefore, is not one of disclosure, per se, but
is the much more narrow issue of the desirability
of disclosure of supervisory reports. The examination process is one that has evolved over a
number of years and many of the practices and
procedures are time tested. The bank examiner
has free access to all of the bank's records, and
most bankers, recognizing the confidentiality of

Statements

to Congress

137

their remarks, discuss very candidly the bank's
most intimate affairs with the examiner.
Disclosure of the examiners' reports would
undoubtedly change the candid relationship between the banker and the examiner and thus
change the examination process itself. We
should carefully consider whether or not we are
prepared to risk these changes, particularly in
light of the fact that these processes and procedures have served both the banking system and
the public well for a number of years.
With respect to the specific disclosures to

which I referred in my opening remarks, I
believe it is too early to assess the impact of
such revelations on those organizations and
possibly on public confidence in the banking
system. It would be extremely unfortunate if the
reputations of those institutions are tarnished to
such an extent as to interfere with their ability
to effectively complete the corrective actions
that they now have under way. In the long term
these disclosures could prove to be counterproductive to the interests of the banking system
and to the Nation's economic recovery.
•

Statement by Henry C. Wallich,
Member,
Board of Governors of the Federal Reserve
System, before the Committee on the Budget,
U.S. House of Representatives, February 6,
1976.

erably in excess of historical precedent for this
stage of the business cycle. Families' real incomes and savings had been eroded by inflation,
and efforts to bolster them helped to increase
the number of persons seeking jobs.
The recent gains in economic activity have
been based on expanding demands in most areas
of the economy. Increases in employment and
reduced tax burdens last year raised real disposable income for the first time since 1973, and
thus supported higher aggregate consumption.
Most recently, high retail sales during the
Christmas season and continued large consumer
purchases in January gave evidence of underlying strength in this sector. Housing, as you
know, has also staged a substantial recovery,
especially for single-family units. Activity in
this sector started from such a low point, however, that residential construction still is relatively weak. The continuing high volume of
exports, despite reduced economic activity
abroad, indicates a new competitiveness for
American goods and services, and bodes well
for rising demands from this source in the future.
Changes in business inventory investment
strongly interacted with movements in final demands during 1975 and accounted for a large
portion of the cyclical swing during the year.
Data for the fourth quarter indicate that the huge
inventory liquidation that depressed economic
activity in the first half of the year has about
run its course. In many lines of nondurable
goods, inventory/sales ratios are close to his-

It is a privilege for me to appear before this
committee today. First of all, let me take this
occasion to commend the work achieved last
year by the Budget Committees. The implementation of the new Congressional Budget
Act, I believe, is off to an excellent start. The
growing acceptance of your new procedures will
help the Congress to consider the Federal budget
as a whole and to evaluate its economic implications. Your committee is playing a vital part
in this accomplishment of great importance to
the American economy.
Over the last 9 months the U.S. economy has
again demonstrated its capacity to recover from
economic adversity. The vigorous pace of the
recovery is indicated by the nearly 9 per cent
average annual rate of growth in real GNP that
occurred during the second half of last year.
This is the fastest growth rate in any half-year
period since the cyclical upturn in late 1958.
The recent growth in economic activity was
accompanied by a 2.1 million increase in total
employment from the low point reached last
March. Nevertheless, the rate of unemployment
in January remained at the distressingly high
level of 7.8 per cent. In part the slow progress
in reducing unemployment reflects a 1 Vi per cent
increase in the labor force during 1975, consid


138

Federal Reserve Bulletin • February 1976

toric lows and inventories of these products are
generally being replenished. Stocks of durable
goods are still being reduced, but over all the
prospects are for a return to inventory accumulation during 1976.
Investment in plant and equipment, while
sharply reduced during the recession, showed
its first increase in real terms last quarter. Such
increases are likely to gain momentum as higher
levels of economic activity make their impact
on business sales. I am aware of the very
cautious investment plans reported for 1976 in
the December Commerce Department survey,
but I think it most likely that businessmen will
revise their plans upward on the basis of favorable sales and profits experiences as has happened in prior cyclical recoveries.
State and local governments as a group continued last year to increase moderately their
purchases of goods and services in real terms.
This happened despite the well-known financial
difficulties of some individual units. Employment in this sector, moreover, rose 5 per cent
from its 1974 average, partly reflecting Federal
inducements to public service employment.
On the price side, some moderation was
achieved last year. Nevertheless, progress in
reducing inflation has been disappointing, considering the extent of slack in the economy. The
current rate of inflation, broadly viewed, appears to be on the order of 7 per cent a year.
While this represents a very sizable reduction
from the 12 per cent inflation rate in late 1974,
a significant part of the moderation during this
period has been due to diminishing pressures
in special areas, such as oil, farm products, and
other raw materials. Moreover, a great deal of
the reduction in the pace of inflation occurred
in the first half of 1975. More recently there
has been a disturbing pick-up in prices of industrial commodities at the wholesale level.
From now on, further reductions in the rate of
inflation will be more difficult to achieve because prices will tend to reflect unit labor costs.
While increases in labor compensation moderated somewhat during 1975 to around 8 per
cent, they were still far above the pace of
long-term productivity gains. This upward
pressure on wages has been indicative of an
effort to maintain real incomes in the face of



still substantial price advances. Thus wages and
prices continue to push each other up.
Real wage increases, over time, will tend to
match productivity gains. Good increases in
productivity should accompany a sustained recovery. The resultant pronounced improvement
in real wages should lessen nominal wage demands. This would permit a winding down of
the wage-price spiral.
More generally, prospects for continued deceleration of inflation depend on avoiding renewed overheating of the economy. The consensus view now is that recovery will proceed
at a moderate rate through this year. This will
help to avoid the rekindling of inflationary pressures. Diminishing inflation will be an essential
factor in sustaining the expansion over a prolonged period.
In evaluating the outlook for private spending, it is relevant to consider the progress that
has been made in correcting the serious financial
imbalances carried over from the late 1960's and
early 1970's. These arose as a consequence of
accelerating inflation and the rising interest rates
that inevitably grew out of that pattern of price
behavior. Household wealth in real terms was
reduced, as the purchasing power of fixed dollar
claims declined and as common stocks lost
value even in terms of current dollars. Business
cash flow was impaired because bookkeeping
profits—reflecting inventory gains and underdepreciation—occasioned higher taxes, without
providing spendable funds to business. The unbalanced financial position of many enterprises
limited their ability to finance capital expansion
by borrowing, while at the same time it became
more difficult to build equity, whether by selling
new shares or by retaining earnings.
To overcome these financial injuries, businesses and households worked hard last year at
rebuilding liquidity and net worth. Household
saving rates remained well above historic levels,
while businesses used the funds obtained
through heavy borrowings in long-term markets
to retire a large amount of short-term debt. They
also limited their capital expenditures to levels
nearly matching internally generated funds. Financial institutions, including banks, went
through a similar process of improving their
liquidity and their capital positions.

Statements to Congress

Over time, successful financial restructuring
may accelerate household and business spending. In order to improve their financial position,
these units may have postponed purchases of
durables and capital equipment. Once they feel
more comfortable financially, they may well be
disposed to make up these backlogs. That possibility imparts an underlying strength to the
economic outlook. It also poses a risk, however,
that spending could accelerate unduly as the
economy approaches higher levels of capacity
utilization. This outlook reinforces the case for
a policy of moderation in the ongoing expansion.
The main task of over-all fiscal policy in
promoting and protecting a sustainable recovery, under the circumstances, is to bring down
the massive current Federal deficit. A fiscal
posture appropriate to the requirements of such
a recovery will also serve to maintain balance
in financial markets. As recovery progresses,
these markets will need scope to supply funds
that match the expanding needs of private borrowers. An excessive deficit would run the risk,
first of once more generating excessive expansionary pressures and eventually, if interest rates
should be driven up through competition for
funds, bringing the expansion to a premature
end. The budget proposed by the President plans
a substantial diminution of the present large
deficit, and thus meets the need to move toward
budgetary balance. In terms of the hypothetical
budget that would obtain if the economy were
operating at full employment, the present substantial deficit is expected to shift, in the course
of fiscal year 1977, to a small surplus.
Apart from these comments on the over-all
budget stance, I would also like to react to the
concept of curtailing budget expenditures and
cutting taxes by matching amounts. Even
though economists generally maintain that such
simultaneous cutbacks on both sides of the
budget tend to be dampening rather than neutral
with respect to economic activity, this negative
effect is minimized in the budget proposals
because a substantial portion of the spending
restraints occur in the area of transfer payments
rather than in that of purchases of goods and
services. Restraint on Government transfer expenditures is not likely to restrain the expendi


139

tures of the beneficiaries by quite the same
amount. On the other hand, taxes foregone by
the Government are not likely to raise taxpayers'
spending by a fully equal amount. The effects
on over-all activity of the proposed matching
spending and tax cuts, therefore, are likely to
be small. Given this, the merits of the proposals
need to be judged on grounds of the support
they would lend to the long-term strength of
our economy rather than on their short-run effects on economic activity.
I now would like to turn to monetary policy.
In the present expansion the aims of monetary
policy have been to help provide the needed
financial support for recovery and to contribute
to the rebuilding of liquidity, which was essential for the resumption of sustained economic
growth. At the same time, monetary policy has
sought to avoid actions that could supply the
financial tinder for a new burst of inflation. We
believe that these have been the appropriate
policy objectives, and the Board would favor
continuing to steer a middle course that seeks
to fulfill these principal goals.
Since the spring of last year, as you know,
the Federal Reserve has been formulating its
policy orientation for a year ahead in terms of
ranges for broad monetary aggregates and has
been reporting these to the Banking Committees
of each house.
The Federal Reserve has always maintained
that targets of this nature must be subject to
review and administered with flexibility. At the
present time, these considerations are more important than usual due to the difficulty that we
have experienced in recent months in interpreting the meaning of the sluggish growth of Mx.
The selection of growth rates of monetary aggregates as objectives rests on the presumption
of substantial regularities in the holdings of
these assets by the public as related to other
economic conditions. As Chairman Burns described in his recent testimony, some of the
relationships—previously reasonably predictable—among money supply, GNP, and interest
rates appear to have changed over the last year.
Rapidly spreading new financial practices have
led to substantially increased efficiencies in the
use of checking accounts and seem to have
permitted a very modest expansion in Mx during

140

Federal Reserve Bulletin • February 1976

the second half of last year to support a large
increase in GNP, even while short-term interest
rates were declining.
The proper growth path of the monetary aggregates will need to be appraised carefully as
the year progresses. Economies in the use of
money could spread further this year. But reestablishment of more traditional relationships
among the narrowly defined money supply,
GNP, and interest rates is also conceivable. In
view of these uncertainties, it seems appropriate
to give increased emphasis to the broader monetary aggregates as well as to credit conditions
in gauging the stance of monetary policy.
In evaluating the current monetary target
ranges it is important to note that these ranges
are well above the long-term monetary requirements of a noninflationary economy. They are
larger because weight has been given to the
short-run needs for economic recovery and to
the financial demands generated by recent increases in nominal GNP.
A due concern with the long-run outlook
requires policy-makers to consider also the important decisions that will have to be made with
respect to the division of output of our economy
between consumption and investment. Specifically, I share the concern, voiced by others, that
insufficient resources may be devoted to productive investment in years to come. Further,
I believe that the Congress, as it decides tax
and spending policies, will have an important
role in determining whether and how severe a
capital shortage may develop.
Several developments would seem to imply
enlarged capital needs in coming years. Among
them is the need for reduced pollution and for
more investment in industrial health and safety.
Higher energy prices have made investment in
domestic energy production more economically
feasible and have provided many incentives for
U.S. households and industry to invest in means




of economizing on energy usage. Finally and
most importantly, the need to provide jobs for
a growing labor force will require a considerable
expansion of productive capacity. This need for
greater capacity was underscored by the bottlenecks encountered in many industries in 1973
and 1974.
The financial and real resources needed to
bring about higher rates of private investment
in an economy approaching high capacity utilization will have to come from higher rates of
saving. It is not certain that private saving will
be adequate, particularly if saving rates return
to more traditional levels. The Federal Government thus may be called upon to play a vital
role in bridging the gap between private saving
and desirable levels of investment.
This could be accomplished if the Federal
Government were to achieve a surplus in its
budget as the economy approaches full employment. A budget surplus is a form of Government
saving that would make resources available for
use in the private sector. With the Federal
Government a net supplier of funds to the credit
market, rather than a net user, there would be
downward pressures on interest rates. More
credit would be available to businesses, homeowners, and consumers. The channelling of this
increased supply to finance investment would
be facilitated by tax devices such as the deferral
of the tax on personal income devoted to equity
acquisitions proposed by the President that
would encourage the issuance of capital stock
by corporations.
Long-range budgetary policy is then seen to
take on added importance. As we leave recession behind us, the full employment status of
the budget will be a key determinant of interest
rates. It will have a stong impact on the availability of capital to meet our needs. As you
review the 5-year projection of the budget, I
urge you to keep these long-run needs in mind.

141

Record of Policy Actions
of the Federal Open Market Committee




MEETING HELD ON DECEMBER 16, 1975
Domestic Policy Directive
The information reviewed at this meeting suggested that output
of goods and services—which had increased at an annual rate of
13 per cent in the third quarter—was expanding more moderately
in the current quarter and that prices were continuing to rise at
a relatively fast pace. Staff projections suggested that growth would
remain moderate in the first half of 1976 and that the rate of increase
in prices would slow somewhat.
In November the rise in industrial production slowed further,
in part because of declines in output of automobiles and of energy;
increases were widespread among other products, but in general
they were smaller than in the preceding 5 months. Recovery in
nonfarm payroll employment also slowed further. However, the
dollar volume of retail sales expanded significantly for the second
consecutive month. Residential construction activity rose further,
reflecting the uptrend in private housing starts in recent months.
The unemployment rate—which had risen 0.3 percentage point to
8.6 per cent in October—fell back to 8.3 per cent in November.
Both the October rise and the November decline in the unemployment rate were caused primarily by changes in the civilian labor
force.
The advance in the index of average hourly earnings for private
nonfarm production workers remained rapid in November. Increases in wholesale prices of industrial commodities were pervasive, and the rise in the average for industrial commodities, although below that in October, was still relatively large. Wholesale
prices of farm products declined appreciably, following 2 months
of large increases, and wholesale prices of processed foods declined
slightly. In October, the rise in the consumer price index had
accelerated somewhat because of a considerable increase in retail
prices of foods following 2 months of little change.
Staff projections of real output in the first half of 1976 were
similar to those of 4 weeks earlier. They suggested that consumption expenditures would expand at a moderate pace, that residential

142

Federal Reserve Bulletin • February 1976

construction and business fixed investment would continue to recover, and that State and local government purchases of goods
and services would pick up somewhat from the reduced pace in
the second half of 1975. It was also anticipated that business
inventory accumulation would be at a moderate rate. However,
exports were projected to rise less than imports.
The exchange value of the dollar against leading foreign currencies, which had declined somewhat from early October to early
November, had risen somewhat since then. The net outflow of
bank-reported private capital appeared to have declined in November from the high rate in October. In October both merchandise
exports and imports increased somewhat, and the foreign trade
surplus remained substantial.
Total loans and investments at U.S. commercial banks expanded
considerably in November. Banks added to their holdings of both
Treasury and other securities and increased their outstanding loans
to businesses. As in October, however, the outstanding volume
of commercial paper issued by nonfinancial corporations declined,
and total short-term business borrowing rose little. During the
period from mid-November to mid-December most banks reduced
the prime rate applicable to large business borrowers from IV2 to
IV4. per cent, and one major bank reduced it to 7 per cent.
Mi, which had declined in October after having grown at a slow
pace during the preceding 3 months, rose sharply in November.
Growth in M 2 and M 3 was substantial, as inflows of consumer-type
time and savings deposits to banks strengthened and inflows to
nonbank thrift institutions remained relatively favorable. Some
portion of the inflows of such deposits to banks was attributable
to expansion in business accounts following amendments to Federal
Reserve regulations, effective November 10, 1975, that permitted
corporations, partnerships, and other profitmaking organizations to
maintain savings accounts of up to $150,000 at member banks.
To a considerable extent the funds placed in these business savings
accounts appeared to have been shifted out of demand deposits.
System open market operations since the November 18 meeting
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. It had been contemplated that operations would be directed toward moving the Federal







Record of Policy Actions of FOMC

funds rate down from the prevailing level of 5% per cent to about
the middle of the AV2 to 5Vi per cent range of tolerance adopted
by the Committee, if the data becoming available suggested that
the several monetary aggregates were growing at rates close to
the midpoints of their ranges of tolerance. However, the available
data suggested greater strength in the growth of Mu after allowance
for the shift in business deposits from demand to savings accounts
following the regulatory changes effective November 10. In the
3 weeks after that change business savings accounts at weekly
reporting member banks had risen by about $530 million, and it
was reasonable to assume that growth had also been substantial
at other banks. Had it not been for this shift, the annual rate of
growth in M x over the November-December period, according to
staff estimates, would have been about IV2 percentage points higher
than it appeared to be. Moreover, the available data suggested that
growth in M 2 over the 2-month period would be in the upper part
of its specified range of tolerance. Accordingly, System operations
during the inter-meeting period had been directed toward maintaining the prevailing bank reserve and money market conditions, and
the Federal funds rate fluctuated around 5xk per cent.
Short-term market interest rates rose somewhat over the intermeeting period, despite the stability in the Federal funds rate. The
rise in rates appeared to reflect some concern on the part of market
participants that the System would act to firm bank reserve and
money market conditions in response to the strong growth in the
monetary aggregates in November.
Yields on longer-term debt instruments fluctuated in a narrow
range during the inter-meeting period despite a large volume of
offerings of new securities, including publicly offered issues of
foreign private and official institutions as well as issues of domestic
borrowers. On December 9 the Treasury announced that before
the end of the year it would auction $2.5 billion of 2-year notes
and $2.0 billion of 4-year notes, of which $3.0 billion would be
for new money.
At its October meeting, the Committee had agreed that growth
in the monetary aggregates on the average over the period from
the third quarter of 1975 to the third quarter of 1976 at rates within
the following ranges appeared to be consistent with its broad
economic aims: Mu 5 to IV2 per cent; M 2 , IV2 to 10% per cent;

143

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Federal Reserve Bulletin • February 1976

and M 3 , 9 to 12 per cent. The associated range for growth in the
bank credit proxy was 6 to 9 per cent. It was understood that
the longer-term ranges, as well as the particular list of aggregates
for which such ranges were specified, would be subject to review
and modification at subsequent meetings. It also was understood
that, as a result of short-run factors, growth rates from month to
month might well fall outside the ranges contemplated for annual
periods.
In the discussion of current policy at this meeting, the Committee
took note of a staff analysis suggesting that in the period immediately ahead growth in the demand for money would be constrained
by continuation of the shift in business deposits from demand
accounts to savings accounts in response to the recent changes in
regulations. Because the magnitude and duration of the shift were
highly uncertain, however, estimates of the effects on Mx were
subject to a large margin of error. It was also noted that projections
of monetary growth for the month of December were more uncertain than those for other months because many business and
financial institutions customarily made adjustments to cash and debt
positions for purposes of year-end statements.
During the discussion some Committee members expressed confidence in the economic outlook for the quarters immediately ahead,
while other members expressed doubt concerning the strength of
the recovery. In view of the uncertainties regarding the behavior
of the monetary aggregates in the December-January period, many
members advocated giving greater weight than usual to money
market conditions in conducting open market operations in the
period until the next meeting. However, a number of members
preferred to continue to base operating decisions primarily on the
behavior of the monetary aggregates. There was some sentiment
for a slightly more stimulative policy, but most members favored
no essential change in policy.
At the conclusion of the discussion the Committee decided that
operations in the period immediately ahead should be directed
toward maintaining the bank reserve and money market conditions
now prevailing, provided that monetary aggregates appeared to be
growing at about the rates currently expected. The members concluded that growth in Mx and M 2 over the December-January period
at annual rates within ranges of tolerance of 4 to 7 per cent and







Record

of Policy Actions

of FOMC

7 to 10 per c e n t , r e s p e c t i v e l y , w o u l d b e a c c e p t a b l e . 1 It w a s t h o u g h t
that s u c h g r o w t h rates w o u l d b e likely to i n v o l v e an a n n u a l rate
of g r o w t h in r e s e r v e s available to s u p p o r t p r i v a t e n o n b a n k d e p o s i t s
( R P D ' s ) w i t h i n a r a n g e of 4 to 7 per cent.
It w a s c o n t e m p l a t e d that S y s t e m o p e r a t i o n s until the n e x t m e e t i n g
w o u l d b e directed t o w a r d m a i n t a i n i n g the w e e k l y a v e r a g e F e d e r a l
f u n d s rate at a b o u t its current level of 5V4 per c e n t , u n l e s s rates
of g r o w t h in the m o n e t a r y a g g r e g a t e s a p p e a r e d to b e d e v i a t i n g
significantly f r o m the m i d p o i n t s of their specified r a n g e s . T h e
m e m b e r s a g r e e d that, in the e v e n t the a g g r e g a t e s a p p e a r e d to b e
d e v i a t i n g f r o m e x p e c t a t i o n s , the w e e k l y a v e r a g e f u n d s rate m i g h t
b e e x p e c t e d to v a r y in an orderly f a s h i o n w i t h i n a r a n g e of 4 %
to 5V2 per c e n t .
T h e f o l l o w i n g d o m e s t i c p o l i c y directive w a s i s s u e d to the F e d e r a l
R e s e r v e B a n k of N e w Y o r k :
The information reviewed at this meeting suggests that output
of goods and services—which had increased very sharply in the
third quarter—is expanding more moderately in the current quarter.
In November the rise in industrial production and in nonfarm payroll
employment slowed further. The dollar volume of retail sales rose
again, however, and residential construction activity expanded,
reflecting recent substantial increases in private housing starts. The
unemployment rate—which had risen 0.3 percentage points to 8.6
per cent in October—fell back to 8.3 per cent in November,
reflecting a sizable decline in the civilian labor force. The increase
in average wholesale prices of industrial commodities, although
below that in October, was still relatively large; prices of farm
products declined appreciably, following 2 months of large increases. The advance in average wage rates in November was again
substantial.
The exchange value of the dollar against leading foreign currencies has risen somewhat since mid-November. The net outflow of
bank-reported private capital appears to have declined from the high
rate reported for October. In October the U.S. foreign trade surplus
remained substantial.
1
The ranges of tolerance over the December-January period were based on
preliminary new seasonal factors. The growth rates specified for M1 and M2 for
the 2-month period were, respectively, about 214 percentage points and 1 percentage point higher than those that would have been specified had the old factors
been used. It was expected that revised money supply series incorporating new
seasonal factors as well as benchmark and certain other statistical adjustments
would be published in late January.

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Federal Reserve Bulletin • February 1976

Mi—which had declined in October—rose sharply in November.
Growth in M 2 and M 3 was substantial, as inflows of consumer-type
time and savings deposits to banks strengthened while inflows to
nonbank thrift institutions remained relatively favorable. Long-term
interest rates have fluctuated in a narrow range in recent weeks,
while short-term market rates have risen somewhat.
In light of the foregoing developments, it is the policy of the
Federal Open Market Committee to foster financial conditions that
will encourage continued economic recovery, while resisting inflationary pressures and contributing to a sustainable pattern of international transactions.
To implement this policy, while taking account of developments
in domestic and international financial markets, the Committee seeks
to maintain prevailing bank reserve and money market conditions
over the period immediately ahead, provided that monetary aggregates appear to be growing at about the rates currently expected.
Votes for this action: Messrs. Burns, Volcker,
Baughman, Cold well, Eastburn, Holland, Jackson,
MacLaury, Mayo, Mitchell, and Wallich. Votes
against this action: None.
Absent and not voting: Mr. Bucher.

Subsequent to the meeting, on January 12, the available data
suggested that in the December-January period both Mx and M 2
would grow at rates below the lower limits of the ranges of tolerance
that had been specified by the Committee. In recent days the
Manager had been aiming at a Federal funds rate of 4% per cent,
and the rate had been in an area of 4% to 47/s per cent.
The significance of the apparent weakness in the aggregates was
highly uncertain, because of the effects of the recent introduction
of business savings accounts at commercial banks and because the
revised seasonal adjustment factors employed were still under
review. The problems of seasonal adjustment were particularly
acute for the months of December and January. For these technical
reasons, and in view of more favorable recent economic statistics—including the latest data on employment and retail sales—
Chairman Burns recommended that the Manager be instructed to
hold the weekly average Federal funds rate at the approximate level
of 4% per cent until the Committee's next meeting. All members
of the Committee, with the exceptions of Messrs. Eastburn and
MacLaury, concurred in the Chairman's recommendation.




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 45 days after the meeting and are subsequently published in
the BULLETIN.

147

Law Department
Statutes, regulations, interpretations, and decisions

Truth in Lending
In October 1975 the Board of Governors published amendments to Regulation Z designed to
provide disclosure of closing costs in certain real
estate transactions. These amendments were
adopted in order to implement the provisions of
§ 121(c) of the Act which were added by § 409
of Title IV of Public Law 93-495. On January
2, 1976, § 121(c) was repealed by the passage
of Public Law 94-205. Accordingly, the Board has
rescinded the amendments to Regulation Z enacted
to implement § 409.
Effective January 21, 1976, §§ 226.2(mm),
(nn), (oo), (pp), and (qq), and 226.8(r) are rescinded.
Effective January 21, 1976 § 226.8(a) is
amended by deleting "Except as provided in
paragraph (r) of this section," from the fourth
sentence thereof and by capitalizing the letter "a"
in the word "all" immediately following the deleted matter, so that the fourth sentence of §
226.8(a), through the colon, reads "All of the
disclosures shall be made together on either:"
Effective June 30, 1976, section 226.102 is
rescinded.

Interim Policy
on Access to Federal Reserve
Clearing and Settlement Facilities
On June 10, 1975, the Board published for
comment proposed arrangements for the deposit,
delivery, and settlement of ACH transactions—i.e., those payments contained on magnetic
tape that would be cleared through Federal Reserve
clearing and settlement facilities. The Board proposed on June 10 that only financial organizations
with demand deposit powers could deposit magnetic tapes with the Federal Reserve. The Board
also proposed that payments would be delivered
directly to financial organizations currently serviced by Federal Reserve courier services and to
high volume endpoints located along existing




courier routes (see 40 FR 25641). The proposal
did not apply to access to other System facilities,
such as the wire transfer facilities.
The Board is not finally adopting a policy in
regard to access and pricing. In the near future
the Board intends to publish a pricing schedule
based on the fully allocated costs of providing
System check and ACH services. In developing
the pricing schedule, consideration would be given
to the burden of required reserves maintained by
member banks. In the interim, pending the development of a final pricing schedule in respect to
so-called ACH transactions, the System will basically maintain its current policy with regard to the
processing and handling of such transactions and
will, in fact, broaden its services concerning delivery. Such interim policies may be modified at
the time a pricing schedule is adopted. During the
interim period, the Federal Reserve Banks will
handle and process ACH transactions for all
member banks and any nonmember financial organization that is a member of an automated
clearing house association and that is sending ACH
data pursuant to association rules.
The Federal Reserve will deliver ACH items
under the following guidelines:
(1) Items for beneficiaries maintaining accounts
at a financial institution offering demand deposit
accounts may be delivered directly to that institution in the same manner that checks are presented.
(2) Items for beneficiaries maintaining accounts
at a financial organization not offering demand
deposit accounts may be delivered directly to that
institution provided such institution receives sufficient volume of such items to warrant separate
delivery and is located on an existing check courier
route.
(3) Items may be delivered to a data processing
service bureau provided the service bureau receives sufficient volume of such items to warrant
separate delivery and is located on an existing
check courier route.
(4) Any financial organization may pick up
items at the local Federal Reserve office provided
that its volume is sufficient to warrant such actions.
(5) Any financial organization may have items

148

Federal Reserve Bulletin • February 1976

delivered to an endpoint that currently receives
checks directly from the Federal Reserve office
(i.e. the pass-through method).
(6) Items may be mailed to any financial organization by the Federal Reserve regardless of its
location.

Settlement
Settlement for items cleared under the above
arrangement will be made by credit and debit
entries to reserve accounts of member banks of
the Federal Reserve System.
In providing clearing and settlement services for
ACH associations, the Board anticipates that these
services will be made reasonably available on a
comparable basis to depositary institutions having
need for such services.
The above provisions apply only for the use of
Federal Reserve facilities in clearing and settling
payments exchanged on magnetic tape. Use of the
Federal Reserve communications system for
transmitting large dollar credit items will continue
to be limited to Federal Reserve member banks
and Government agencies. Other financial institutions may utilize this system through facilities of
a member bank.
In view of the many changes occurring in the
electronic payments area, Federal Reserve policy
will be subject to periodic review. In particular,
further review would be undertaken as a result of
the study by the National Commission on Electronic Fund Transfers. These proposals, if
adopted, will provide uniform standards for electronic transactions handled by the System. In such
an environment, considerable cost savings to financial institutions, the U.S. Treasury, and the
Federal Reserve may be realized and consumers
can be afforded greater convenience and security.

Bank Holding Companies
Nonbanking Activities of
Bank Holding Companies;
Operation of a Travel Agency
By notice of proposed rulemaking published in
the Federal Register on September 19, 1974 (39
F.R. 33741), and revised with respect to the date
and scope of the oral presentation on October 31,
1974 (39 F.R. 38423), the Board of Governors




proposed, in connection with an application1 filed
pursuant to § 4(c)(8) of the Bank Holding
Company Act (12 U.S.C. 1843(c)(8)) and §
225.4(b)(2) of the Board's Regulation Y (12
C.F.R. 225.4(b)(2)), to add to the list of activities
that it has determined to be closely related to
banking or managing or controlling banks (§
225.4(a) of Regulation Y), the operation of a travel
agency. An oral presentation considering possible
rulemaking with respect to the proposal was held
on January 14, 1975.
The Board has considered all comments received prior to the oral presentation, the record
of the oral presentation, and all comments submitted in connection with, and subsequent to, the oral
presentation. After considering all relevant aspects
of the proposal to add the operation of a travel
agency to the list of closely related activities, the
Board has determined not to adopt this activity
as permissible for bank holding companies under
§ 225.4(a) of Regulation Y.
Operation of a travel agency requires the offering of a broad range of services, including but
not limited to the sale of travelers checks, 2 procuring carrier passage and other travel accommodations by acting as agent for passengers and
carriers, and acting as collection agent for airline,
railroad, steamship or other companies. In addition, travel agents must have specialized knowledge concerning such diverse matters as passports,
visas, inoculations and taxing regulations, as well
as familiarity with local and regional social customs. 3 In effect, a travel agency is "a personalized
department store of travel." 4
Before the Board may authorize a bank holding
company to engage in a new activity pursuant to
§ 4(c)(8) of the Bank Holding Company Act, there
are two major issues that must be resolved. These
are whether the activity is closely related to bank-

1
Application by First Bancorp, Inc., Corsicana, Texas, to
retain First Travel Agency, Corsicana, Texas.
2
The sale of travelers checks has been found by the Board
to be a closely related activity (see Board Order of June 14,
1973, approving application of BankAmerica Corporation, San
Francisco, California, to engage de novo in issuance and sale
of travelers checks).
3
There are certain unique licensing requirements that a travel
agency must meet in order to be eligible to sell transportation
tickets for member carriers of airline associations. Principal
among these associations are the Air Traffic Conference (ATC)
(which appoints, or licenses, travel agents to sell domestic air
travel) and the International Air Transport Association (I AT A).
4
Arnold Tours, Inc. v. Camp, 338 F. Supp. 721, 723
(1972).

Law Department

ing or managing or controlling banks, and, if so,
whether it is a proper incident thereto. It is in the
second of these tests that the weighing of the
public benefits is of significance.
In a recent decision by the United States Court
of Appeals for the District of Columbia, National
Courier Association v. Board,5 that Court commented on the kinds of connections that may
qualify an activity as 4 'closely related to banking."
The Court stated there were at least three kinds
of connections which could qualify an activity as
closely related: first, that banks generally have in
fact provided the proposed service; second, that
banks generally provide services that are operationally or functionally so similar to the proposed
services as to equip them particularly well to
provide the proposed services; and third, that
banks generally provide services that are so integrally related to the proposed services as to require
their provision in a specialized form.
On the basis of the record in this present proceeding before the Board, it appears that the only
standard under the criteria previously applied by
the Board, and as set forth by the Court of Appeals
in the Courier decision, that might be regarded
as being applicable is that relating to whether
banks generally have provided the proposed service. However, the character of the services offered
by travel agencies, as it has evolved to the present
day, has departed from that offered over a century
ago to accommodate people immigrating to the
United States. 6 At the present time, the number
of banks currently providing travel agency services
number only about 150 or less than one per cent
of all commercial banks in the United States, and
they account for less than two per cent of all travel
agencies in the nation. Furthermore, nearly twothirds of the travel agencies affiliated with banking
organizations have been established within the past
fifteen years. 7
It is the Board's view, in light of the above
and other facts of record, that there exists an
insufficient historical relationship between the
proposed activity and the general nature of banking
activities to meet the closely related test of §
4(c)(8). Neither does the Board conclude that the
proposed activity is functionally or integrally related to other banking activities which have been
5

5 1 6 F. 2d 1229, 1237 (1975).
Arnold Tours, Inc. v. Camp, 412 F. 2d 427, 434 (1972).
Based on data submitted by the Association of Bank Travel
Bureaus.
6
7




149

previously found to be permissible within the tests
set forth in the Courier decision. Accordingly, the
Board finds that the operation of a travel agency
is not closely related to banking or managing or
controlling banks. Since the board has found that
the operation of a travel agency is not closely
related, the Board does not reach the further question of the potential public benefits resulting from
performance of the proposed activity. 8 Thus, the
Board has determined not to add the operation of
a travel agency to the list of permissible activities
in Regulation Y.
8
Proponents of and opponents to adding this activity to the
permissible list have presented arguments regarding the nature
of the public benefits involved in approving this activity;
however, as discussed above, the Board's finding that the
proposed activity is not closely related to banking precludes
any weighing of public benefits.

Order Scheduling Oral Presentation
On November 11, 1975, the Board issued a
notice of proposed rulemaking to consider whether
and under what conditions bank holding companies should be permitted to continue to engage in
automobile leasing activities under the provisions
of Section 225.4(a)(6)(a) of the Board's Regulation Y, 12 C.F.R. 225.4(a)(6)(a). The Board invited and has received comments from interested
parties. In response to requests made by several
interested parties for an opportunity to present their
views orally, and in response to other requests for
a delay in the proceeding, the Board has adopted
the following procedures.
(1) The Board will accept and consider all
statements, position papers and written submissions from any participant that has commented or
requested additional time to comment on the rulemaking provided that such statements are submitted to the Office of the Secretary by March 15,
1976.
(2) Those participants who notify the Secretary
by February 20, 1976, and those who have already
notified the Secretary will be scheduled to make
an oral presentation before available Board members on Tuesday, March 23, 1976, at the Board's
offices, 20th & Constitution Avenue, N . W . ,
Washington, D.C. The hearing will be open to
the public.
(3) Those participants who wish to make an oral
presentation should submit the names and identities of their witnesses by February 20, 1976, and

150

Federal Reserve Bulletin • February 1976

they should indicate the amount of time (normally
not to exceed one hour) they request for oral
presentation. A schedule will be provided by
March 1, 1976. Parties to the oral hearing should
provide the Board and all other parties with a
statement or summary of their oral testimony by
March 15, 1976.
(4) Following the oral presentation, the Board
will accept from any party additional material
related to issues raised at the oral presentation,
provided that such material is submitted to the
Office of the Secretary by April 23, 1976.
(5) A preliminary list of parties who will make
an oral presentation includes representatives of the
National Automobile Dealers Association, Southern California Rental and Leasing Association, Car
and Truck Renting and Leasing Association,
Southwest Leasing Corporation, Beverly Hills,
California (on behalf of 17 leasing companies),

Consumer Bankers Association and Orbanco, Inc.,
Portland, Oregon.
The Board believes the procedures outlined
herein will provide all interested parties with a full
opportunity to express their views and to submit
relevant evidence concerning the proposed rulemaking. The Board further believes that the issues
to be considered in this proceeding will involve
legislative rather than adjudicative facts. For this
reason and because the Bank Holding Company
Act does not require a formal trial-type hearing
in rulemaking proceedings under section 4(c)(8),
12 U.S.C. 1843(c)(8), the Board declines to conduct a formal hearing, as requested by the National
Automobile Dealers Association.
The Board also declines to postpone the hearing
in this proceeding pending final Congressional
action on the Consumer Leasing Act (H.R. 8835
and S. 1691) as requested by several parties.

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

Orders Under Section 3
of Bank Holding Company Act
American Bancorporation,
Columbus, Ohio
Order Denying Acquisition

of Bank

American Bancorporation, Columbus, Ohio, 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 51 per cent or more
of the voting shares of The American Bank of
Central Ohio, Harrisburg, Ohio ("Bank"). 1
Notice of the application affording opportunity
for interested persons to submit comments and
views has been given in accordance with § 3(b)
of the Act (38 Federal Register 27550, 39 Federal
Register 6562, 40 Federal Register 52666, 41
Federal Register 14). The time for filing comments
and views has expired, and the Board has considered the application and the comments and views

1
Applicant has withdrawn from the Board's consideration
an application filed under § 3(a)(3) of the Bank Holding
Company Act to acquire The Eastern Ohio Bank, Union
Township, Ohio; and an application filed under § 18(c) of the
Bank Merger Act to merge its subsidiary, The Huntsville State
Bank, Huntsville, Ohio, with The Miami Valley Bank, Quincy,
Ohio.




of the Superintendent of Banks of the State of Ohio
("Superintendent") in light of the factors set forth
in § 3(c) of the Act (12 U . S . C 1842(c)).
In accordance with § 3(b) of the Act, notice
of receipt of the application was duly given to the
Superintendent. Within 30 days of his receipt of
said notice, the Superintendent submitted to the
Board a written statement recommending disapproval of the application. In consideration of the
Superintendent's recommendation, and in compliance with the requirements of the statute,2 the
Board directed that a hearing be held on the
application at the Federal Reserve Bank of Cleveland (38 Federal Register 29650), such hearing to
be conducted in accordance with the Board's Rules
of Practice for Formal Hearings (12 C.F.R. Part
263). The hearing commenced but was continued
by the Administrative Law Judge, on Applicant's
unopposed motion, in order that Applicant might
prepare and submit to the Board certain amendments to subject application. The amendments

2
Section 3(b) of the Act, 12 U.S.C. 1842(b), provides, in
pertinent part, as follows: "If the . . . State supervisory
authority so notified by the Board disapproves the application
in writing within said thirty days, the Board shall forthwith
give written notice of that fact to the applicant. Within three
days after giving such notice to the applicant, the Board shall
notify in writing the applicant and the disapproving authority
of the date for commencement of a hearing by it on such
application."

Law Department

were submitted; and notice of receipt of same,
affording opportunity for interested persons to
submit comments and views, was duly given (39
Federal Register 6562). Thereafter, the Superintendent filed with the Administrative Law Judge
a motion requesting withdrawal of his disapproval
recommendation but preserving his right to submit
additional written comments on the application.
Accordingly, the Administrative Law Judge issued
an Order terminating the hearing, subject to review
by the Board.3 Since termination of the hearing,
both Applicant and the Superintendent have submitted additional materials and views for the
record. Applicant has recently amended the application a second and third time; and notice of
receipt of these new amendments, affording opportunity for interested persons to submit comments and views, has been duly given (40 Federal
Register 52666, 41 Federal Register 14). The
Board has considered all materials and views submitted by Applicant and the Superintendent in light
of the factors set forth in Section 3(c) of the Act. 4
Applicant, the nineteenth largest banking organization in Ohio, controls 6 subsidiary banks with
aggregate deposits of $49.5 million, representing
.16 per cent of total deposits in commercial banks
in the State.5 Bank (deposits of $16.4 million)
presently has three offices, all located in the
southwestern portion of the Columbus, Ohio,

3
The Administrative Law Judge acted pursuant to Part
263.10(d) of the Board's Rules of Practice for Formal Hearings, 12 C.F.R. 263.10(d). The Superintendent's motion was
unopposed; and the Administrative Law Judge's Order has not
been challenged. Since the Superintendent's motion eliminated
the statutory requirement that a hearing be held, and since
the Board has before it a substantial record clearly adequate
for determination of the issues in this case, the Board has
approved the Administrative Law Judge's Order and considers
the hearing in this case to have been closed on the date of
that Order.
4
In transmitting his Order to the Board, the Administrative
Law Judge stated: "[T]his action will enable the Board to
further process the application as it deems appropriate." It
is clear that the Judge and the parties contemplated that the
record would not close with termination of the hearing. The
Superintendent conditioned his motion upon recognition by the
Board of his right to submit additional materials for the record.
At Applicant's request, the administrative record on the application has been held open, beyond deadlines previously announced by the Board's staff, to allow time for submission
of additional materials by Applicant and to give Applicant the
fullest possible opportunity to develop additional facts for the
record.
5
Comparative banking data are as of June 30, 1975. Applicant reports total deposits of $48.9 million as of September
30, 1975.




151

banking market.6 Bank is the seventh largest
banking organization represented in the Columbus
market with .7 per cent of total deposits in commercial banks in said market.7 Applicant's banking
subsidiary nearest to Bank is located at Adelphi,
in Ross County, more than 40 miles away. An
insubstantial amount of competition now exists
between Bank and Applicant's banking subsidiaries; and it is not likely that competition between
Applicant and Bank will increase in the future in
view of the distances involved and Ohio's restrictive branch banking laws. The Board concludes
that consummation of the proposed acquisition of
Bank would not substantially lessen competition
in the Columbus banking 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 Applicant and of the bank to be
acquired. In the exercise of that responsibility, the
Board finds that considerations relating to the
financial and managerial resources and future
prospects of Applicant and Bank warrant denial
of the application.
Applicant proposes to immediately acquire 50.9
per cent of the outstanding voting shares of Bank
in exchange for its own callable series C preferred
shares, to be issued for this purpose. Applicant
will acquire these shares from two persons closely
associated with Applicant. These sellers—one a
director of Applicant, the other a director's
spouse—will realize, when their preferred shares
are called, a price equal to that originally paid
for the corresponding shares of Bank first acquired
by persons associated with Applicant in 1972. 8
The call price represents a premium over the book

6
The Columbus, Ohio banking market is approximated by
Franklin County, Ohio, and by the following adjacent townships in five contiguous counties: Jefferson, Fairfield, Pleasant,
and Range Townships in Madison County; Derby, Scioto, and
Madison Townships, and a part of Harrison Township, in
Pickaway County; Bloom and Violet Townships in Fairfield
County; Etna, Lima, and Jersey Townships in Licking County;
and Concord, Liberty, Orange, Genoa, and Harlem Townships
in Delaware County.
7
On May 31, 1974, the Federal Deposit Insurance Corporation conditionally approved the application of Bank to merge
with Citizens Savings and Loan Company, Columbus, Ohio,
pursuant to Section 18(c) of the Federal Deposit Insurance Act,
12 U.S.C. 1828(c). The conditional approval granted by the
Federal Deposit Insurance Corporation has now lapsed. Accordingly, the Board has not considered the effect of such a
merger on the instant application in light of the factors set
forth in Section 3(c) of the Act.
8
See p. 152 for footnote 8.

152

Federal Reserve Bulletin • February 1976

value of the Bank shares that these sellers will
surrender for their series C preferred shares.
However, Applicant's principals paid a premium
in acquiring subject shares of Bank, and it does
not appear that sellers will realize a profit as a
result of their transaction. In addition, Applicant
proposes to reimburse these sellers for the interest
carrying charges associated with the ownership of
shares of Bank by persons associated with Applicant through June 30, 1975. 9 The series C preferred shares are callable at the option of Applicant. In view of the likelihood that Applicant may
call these shares, the Board views this proposed
acquisition by an exchange of shares as, in reality,
a cash acquisition.
The Board has repeatedly expressed its concern
with arrangements by which bank holding company officers or directors acquire bank shares in
which their company is interested, thereby acquiring a personal financial interest in an acquisition
proposed by the holding company. See Mid
America Bancorp oration, Inc., 1974 Federal Reserve BULLETIN 131; The Jacobus Company, 1974
Federal Reserve BULLETIN 130.
"Arrangements by which bank holding company
directors, officers or employees, or their close
relatives, have a personal financial interest in an
acquisition proposed by the holding company will
be closely scrutinized by the Board to ensure both
that they do not involve an effort by the company
to circumvent the requirement that prior approval
by the Board be obtained for such an acquisition,
and that they do not present the threat of any

8
Three directors of Applicant acquired approximately 51 per
cent of the voting shares of Bank in 1972, using proceeds
of a collateral loan from a bank not affiliated with Applicant.
By late 1973, most of these shares had been transferred to
a fourth director and to the wife of one of the original buyers,
in consideration of their assumption of the supporting loan.
9
On the present record, it does not appear that any indemnification agreement was in force when Applicant's directors first
acquired shares of Harrisburg Bank in 1972. Shortly after this
first acquisition, however, Applicant and its three directors
entered into a buy-sell agreement regarding the subject shares
that included, as one of its terms, an agreement by Applicant
to reimburse its directors for interest expense and other costs
incurred in financing the acquisition of such shares. This
agreement was subsequently rescinded, and declared null and
void, by the parties. A later agreement, entered into between
Applicant and the present holders of these shares on June 18,
1974, does not contain an indemnification clause; however,
a more recent buy-sell agreement, dated December 21, 1975,
rescinds all prior agreements and obligates American to issue
callable preferred shares to reimburse sellers for the debt
service expense associated with the holding of subject shares
of Bank by principals of Applicant since 1972.




adverse effects upon the financial strength or
soundness of the holding company or any of its
subsidiaries. . . . The impropriety of such transactions may have more serious effects . . . where
the ultimate purchase by the holding company
involves the payment of substantial premiums to
the insider. Such arrangements do not comport
with sound banking practice and are inconsistent
with the need to sustain public confidence in the
integrity of the banking system." Third National
Corporation,
1975 Federal Reserve BULLETIN
815.
Although the instant record does not establish
that Applicant has violated the Act by acquiring
Bank without Board approval, the Board believes
that Applicant's proposed indemnification of its
principals for the costs of holding shares in Bank
pending Board action on the application threatens
to adversely affect Applicant's financial resources
and its prospects for the future.
The record indicates that Applicant is in need
of additional capital for injection into one of its
present subsidiary banks. Additionally, the financial resources and management of Applicant and
certain of its present subsidiaries are in need of
improvement. Applicant is endeavoring to raise
additional capital with the proceeds of an equity
security offering now in progress. It is the Board's
view, after considering the entire record, that
Applicant's resources should be more appropriately directed toward strengthening its existing
banking subsidiaries rather than toward further
expansion. Applicant's future prospects cannot be
regarded as satisfactory if its resources are used
to finance further expansion at this time.
Applicant has offered to inject additional capital
into Bank should the subject application be approved. However, such additional capital would
be derived from proceeds of Applicant's present
equity offering, which might otherwise be used
to strengthen Applicant's existing subsidiaries.
The record reflects that resources now available
to Applicant for these purposes are insufficient to
both fulfill this capital commitment and call the
series C preferred shares that Applicant would
issue in this transaction. Moreover, the financial
and managerial problems currently being experienced by Applicant are present also to some extent
with respect to the operations of Bank. Since
certain of the principals of Applicant are also
principals of the bank to be acquired and since
both Applicant and Bank have experienced certain

Law Department

financial problems under the management of such
individuals, the Board is unable to conclude that
financial and managerial considerations involved
in this proposal are such that approval of the
instant application would be appropriate. Instead,
it appears that financial and managerial considerations weigh against approval of the instant
application.
In the Board's view, a bank holding company
seeking to expand its banking interests should be
able to demonstrate clearly the quality of its financial and managerial resources in the operations
of its existing subsidiaries. If a bank holding
company cannot do so, the Board believes that
it would be inappropriate to permit such an organization to expand further its banking interests
until its existing subsidiaries are in acceptable
condition. Applying this standard to the present
application, and on the basis of the entire record
considered as a whole, the Board is unable to
conclude that approval of the instant application
would be consistent with the financial and managerial standards the Board is required to consider
under Section 3(c) of the Act, nor would the public
interest be served by such action.
The adverse financial and managerial factors
present in this application are not outweighed by
any procompetitive effects or by benefits that
would result in serving the convenience and needs
of the community. It appears that the banking
needs of the Columbus banking market are being
well served at the present time and that Bank is
generally competitive with the other banks operating in its market area. Applicant proposes to lower
Bank's charges for checking account services and
to assist Bank in fulfilling the mortgage loan demands of Columbus area residents. While the
convenience and needs considerations are not inconsistent with approval, any public benefits that
might result from approval are clearly outweighed
by the adverse effects specified above. Accordingly, it is the Board's judgment that approval of
the application would not be in the public interest
and that the application should be denied.
On the basis of the record, the application is
denied for the reasons summarized above.
By order of the Board of Governors, effective
January 29, 1976.
Voting for this action: Chairman Burns, Governors
Mitchell, Holland, Wallich, Coldwell, Jackson, and
Partee.
(Signed) THEODORE E. ALLISON,
[SEAL]




Secretary of the Board.

153

First Lincoln wood Corp.,
Lincoln wood, Illinois
Order Denying
Formation of Bank Holding Company
First Lincolnwood Corp., Lincolnwood, 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 80 per
cent or more of the voting shares of The First
National Bank of Lincolnwood, Lincolnwood, Illinois ("Bank").
Notice of the application, affording opportunity
for interested persons to submit comments and
views, has been given in accordance with § 3(b)
of the Act. The time for filing comments and views
has expired, and the Board has considered the
application and all comments received, including
those submitted by the Comptroller of the Currency, in light of the factors set forth in § 3(c)
of the Act [12 U.S.C. § 1842(c)].
Applicant is a non-operating corporation organized under the laws of Illinois for the purpose of
becoming a bank holding company through the
acquisition of Bank. With deposits of $65.7 million, Bank holds approximately two-tenths of one
per cent of the total deposits held by commercial
banks in the relevant banking market (approximated by the Chicago area) and is the 67th largest
of the market's 286 banks. 1 Inasmuch as this
proposal represents essentially a transfer of Bank's
ownership from individuals to a corporation owned
by the same individuals, and Applicant has no
present banking subsidiaries, the acquisition of
Bank by Applicant would not eliminate any significant existing competition nor foreclose potential competition, increase the concentration of
banking resources, or have any adverse effect upon
competition within the relevant banking market.
Accordingly, the Board concludes that competitive
considerations are consistent with approval of the
application.
The Board has indicated on previous occasions
that a bank holding company should provide a
source of financial and managerial strength to its
subsidiary bank(s), and that the Board will examine closely the condition of the applicant in each
case with this consideration in mind. In connection

1
A11 banking data are as of December 31, 1974, unless
otherwise indicated.

154

Federal Reserve Bulletin • February 1976

with this proposal, Applicant will incur acquisition
debt of approximately $3.7 million, which debt
Applicant proposes to service over a twelve-year
period primarily through earnings of Bank. In the
Board's view, the projected earnings of Applicant
over the debt-retirement period appear to be
somewhat optimistic in view of Bank's previous
earnings record and, even if actually realized,
would not provide Applicant with the financial
flexibility necessary to meet its annual debt service
requirements while maintaining adequate capital
at Bank. Furthermore, although Applicant has
stated that Bank plans to augment its capital accounts through the sale of $1.1 million in equity
capital and $1.0 million debt capital within three
to six months of approval of this application, the
Board is concerned that the financial requirements
imposed upon Applicant as a result of the acquisition debt, and uncertainty as to the source of funds
for Bank's proposed capital injections, could prevent Applicant from resolving any unforeseen
problems that may arise at Bank. On the basis
of the above banking factors, and other facts of
record, the Board is of the view that it would not
be in the public interest to approve the formation
of a bank holding company with an initial debt
structure that could result in the weakening of
Bank's overall financial condition. Accordingly,
the Board concludes that the considerations relating to the banking factors weigh against approval
of the application.
As indicated above, the proposed bank holding
company formation is essentially a restructuring
of the ownership interests of Bank without any
significant changes in Bank's operations or the
services offered to customers of Bank. Consequently, considerations relating to the convenience
and needs of the community to be served are
consistent with, but do not lend weight toward,
approval of the application.
On the basis of all of the circumstances concerning this application, the Board concludes that
the banking considerations involved in the proposal present adverse factors bearing upon the
financial conditions and future prospects of both
Applicant and Bank. Such adverse factors are not
outweighed by any procompetitive effects or by
benefits to the convenience and needs of the relevant community. Accordingly, it is the Board's
judgment that approval of the application would
not be in the public interest and that the application
should be denied.
On the basis of the facts of record, the applica-




tion is denied for the reasons summarized above.
By order of the Board of Governors, effective
January 9, 1976.
Voting for this action: Vice Chairman Mitchell and
Governors Bucher, Holland, Wallich, Cold well, and
Jackson. Absent and not voting: Chairman Burns.
Board action was taken while Governor Bucher was
a Board member.
Board action was taken before Governor Partee became a Board member.
(Signed) THEODORE E . ALLISON,
[SEAL]

Secretary of the Board.

National Detroit Corporation,
Detroit, Michigan
Order Approving Acquisition of Bank
National Detroit Corporation, Detroit, Michigan, a bank holding company within the meaning
of the Bank Holding Company Act, has applied
for the Board's approval under § 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
National Bank of Troy ("Bank"), Troy, Michigan, a proposed new bank.
Notice of the application, affording opportunity
for interested persons to submit comments and
views, has been given in accordance with § 3(b)
of the Act. The time for filing comments and views
has expired, and the Board has considered the
application and all comments received, including
submissions filed by First Citizens Bank, Troy,
Michigan ("Protestant"), in light of the factors
set forth in § 3(c) of the Act (12 U.S.C. 1842(c)).
Applicant, the largest banking organization in
Michigan, controls four subsidiary banks with
aggregate deposits of approximately $6.2 billion,
representing approximately 18 per cent of the total
deposits in commercial banks in Michigan. 1 Since
Bank is a proposed new bank, consummation of
the proposed acquisition would not immediately
increase Applicant's share of commercial bank
deposits in the State.
Bank is to be located in the city of Troy, which
is part of the Detroit banking market, the relevant
banking market for this proposal. 2 Applicant is the

1

Deposit data are as of December 31, 1974.
The Detroit banking market is approximated by Macomb,
Oakland, and Wayne Counties, which include the city of
Detroit and 88 other incorporated communities that comprise
the Detroit metropolitan area.
2

Law Department

largest banking organization in the relevant market
and controls 32.6 per cent of the total commercial
bank deposits in the market. Since Bank is a
proposed new bank, Applicant's acquisition of
Bank would not have any immediate effect on
Applicant's share of commercial bank deposits in
the Detroit banking market, nor would it eliminate
any existing competition.
In connection with its consideration of this application, the Board has considered the comments
submitted by Protestant. Protestant contends, in
part, that to the extent new entry into Troy is
desirable, banking structure in the Detroit area
would be much better served by an entrant of
smaller size than Applicant; and conversely, that
entry by Applicant would likely raise barriers to
entry in Troy to a level where important possibilities for deconcentration will be lost. Protestant
further asserts that Applicant's proposed de novo
entry into Troy would severely limit the possibility
of future outside entry into Troy by preempting
future demand through the creation of excess capacity.
The Board has reviewed the facts of record,
including the past and projected growth of the
economy and the population of the area, and finds
that the city of Troy is presently a rapidly growing
area, and that the high rate of growth is expected
to continue in the future. In view of the rapid and
substantial growth being experienced by Troy, it
does not appear that Applicant's entry would either
foreclose the development of future competition
or preempt a banking site. Furthermore, Michigan's branch banking laws preclude Applicant's
entry into Troy through the formation of a branch
of an existing subsidiary. Thus, the formation of
a de novo bank is the only viable means of entry
into Troy presently available to Applicant. The
Board notes that there are presently four banks
operating in Troy, all of which are subsidiaries
of bank holding companies; three of the bank
holding companies are among the five largest in
the State. Moreover, three of the present banks
in Troy are home-office banks with branching
privileges within the city. Applicant's entry into
Troy through the formation of Bank would create
a fourth bank with branching privileges in Troy.
The Board believes that this additional potential
for branching is likely to exert a procompetitive
influence in the Troy area of the relevant banking
market. Accordingly, it is the Board's judgment
that the arguments raised by Protestant do not
present sufficient grounds to warrant denial of the




155

application, and that competitive considerations
are consistent with approval of the application.
The financial and managerial resources and future prospects of Applicant and its subsidiary
banks are regarded as satisfactory. Bank, as a
proposed new bank, has no financial or operating
history; however, its prospects as a subsidiary of
Applicant appear favorable. Considerations relating to the banking factors are consistent with
approval of the application. The addition of a new
banking alternative in the rapidly growing Troy
area will provide greater convenience to this segment of the population in the relevant banking
market. In addition, affiliation with Applicant will
enable Bank to offer its customers a full complement of banking services, as well as access to
Applicant's specialized services, expertise, and
financial resources. These considerations relating
to the convenience and needs of the community
to be served lend some weight toward approval
of the application. It is the Board's judgment that
consummation of the proposed acquisition would
be in the public interest and that the application
should be approved.
On the basis of the record, the application is
approved for the reasons summarized above. The
transaction shall not be made (a) before the thirtieth calendar day following the effective date of
this Order or (b) later than three months after that
date, and (c) National Bank of Troy, Troy, Michigan, shall be opened for business not later than
six months after the effective date of this Order.
Each of the periods described in (b) and (c) may
be extended for good cause by the Board, or by
the Federal Reserve Bank of Chicago, pursuant
to delegated authority.
By order of the Board of Governors, effective
January 23, 1976.
Voting for this action: Chairman Burns and Governors Mitchell, Holland, Wallich, Coldwell, Jackson,
and Partee.
(Signed) THEODORE E . ALLISON,
[SEAL]

Secretary of the Board.

Northeast United Bancorp, Inc. of Texas,
Fort Worth, Texas
Order Approving Acquisition of Bank
Northeast United Bancorp, Inc. of Texas, Fort
Worth, Texas, a bank holding company within the
meaning of the Bank Holding Company Act

156

Federal Reserve Bulletin • February 1976

("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 First State Bank,
Bedford, Texas ("Bank").
Notice of the application, affording opportunity
for interested persons to submit comments and
views, has been given in accordance with § 3(b)
of the Act. The time for filing comments and views
has expired, and the Board has considered the
application and all comments received, including
those submitted by First National Bank of Euless,
Euless, Texas ("Protestant"), in light of the factors set forth in § 3(c) of the Act (12 U.S.C.
1842(c)).
Applicant, the 84th largest banking organization
in Texas, controls one bank with aggregate deposits of approximately $42.6 million, representing
one-tenth of one per cent of the tot£il deposits in
commercial banks in the State.1 Applicant's acquisition of Bank would increase Applicant's share
of total State deposits by 0.03 per cent and would
not result in a significant increase in the concentration of banking resources in Texas, nor would
it alter Applicant's ranking among the State's other
banking organizations.
Bank holds deposits of approximately $14.3
million, representing 0.6 per cent of the total
deposits in commercial banks operating in the Fort
Worth banking market,2 and ranks as the 22nd
largest of 48 commercial banks in the market. The
three largest banking organizations in the market
control, in the aggregate, more than 70 per cent
of the market's deposits. Applicant is the seventh
largest banking organization in the Fort Worth
banking market. Its sole subsidiary, Northeast
National Bank of Fort Worth, Fort Worth, Texas
("Northeast Bank"), holds deposits of $42.6 million, representing 1.9 per cent of the market's total
commercial bank deposits. To the extent that
Northeast Bank and Bank operate in the Fort
Worth banking market, some amount of competition would be eliminated as a result of the consummation of this proposal. However, on the basis
of the facts of record, including the facts that
Northeast Bank and Bank are located in separate
suburbs of Fort Worth seven and one-half miles
1
All banking data are as of December 31, 1974, and reflect
holding company formations and acquisitions approved through
November 30, 1975.
2
The Fort Worth banking market, the relevant geographic
market for purposes of analyzing the competitive effects of
this proposal, is approximated by the Fort Worth RMA.




apart and that there is a large number of banks
competing in the market, it does not appear that
the effects on existing competition would be significant. For similar reasons, it appears that the
effects on potential competition would not be
serious. Moreover, even after consummation of
the proposal, Applicant would control 2.5 per cent
of the market's deposits (about one-fourth of the
deposits held by the market's third largest banking
organization, and less than one-tenth of the deposits held by the first or second largest banking
organization in the market), and several independent banks in the market would remain available for acquisition by holding companies not
represented in the market. Accordingly, the Board
concludes that consummation of the proposal
would not eliminate any significant existing competition or foreclose the development of significant
potential competition.
The financial condition and managerial resources of Applicant and its sole subsidiary are
considered satisfactory and the future prospects for
each appear favorable. In view of Applicant's
commitment to inject $200,000 of equity capital
into Bank following its acquisition, the same conclusions generally apply with respect to Bank's
financial condition, managerial resources, and future prospects. Thus, the banking factors lend
some weight toward approval of the application.
Applicant proposes to increase the rates of interest
paid on Bank's time and savings deposits, increase
the parking facilities at Bank and, at a later date,
provide trust services for customers of Bank.
Therefore, the considerations relating to the convenience and needs of the community to be served
lend weight toward approval of the application
and, in the Board's view, outweigh any slight
adverse competitive effects that might result from
consummation of the proposal.
In its consideration of the subject application,
the Board has considered the comments submitted
on behalf of Protestant, a bank located approximately four miles from Bank. Protestant has raised
two objections to the proposed transaction. First,
Protestant asserts that consummation of the proposal would result in "a high concentration of
financial power within a common trade area.'' This
assertion is predicated upon Protestant's belief that
the Mid-Cities area3 is the relevant geographic
3
The Mid-Cities area is approximated by the communities
in the northeastern portion of Tarrant County between Fort
Worth and Dallas, Texas; it includes the communities of
Bedford, Euless, Hurst, and Richland Hills.

Law Department

market for the Board's competitive analysis of the
proposed acquisition. In this regard, the Board has
examined the materials submitted by Protestant in
support of its position and, on the basis of its
analysis of such material and the other material
in the record, the Board has concluded that the
relevant geographic market involved in the subject
proposal is the Fort Worth banking market.4 The
basis for this conclusion rests upon several economic and demographic considerations. The MidCities area is suburban in nature and it is economically and physically integrated with the city of
Fort Worth. For example, the Mid-Cities area is
linked to downtown Fort Worth by several major
highways and is exposed to all of the major Fort
Worth media sources. In addition, census data
reveal that a significant portion of the working
population in the Mid-Cities area commutes to Fort
Worth daily. Although the Mid-Cities area may
represent a distinct group of suburban communities, the Board is of the view that there is no
evidence indicating that the commercial banks in
this area are insulated from the competitive forces
that emanate from the other banks in the Fort
Worth banking market.
With respect to the concentration of banking
resources within the relevant banking market, Applicant, upon acquisition of Bank, would increase
its share of market deposits by 0.6 per cent to
a total of 2.5 per cent, which is a substantially
smaller percentage of market deposits than is held
by any of the market's three larger banking organizations. In addition, Applicant's share of total
market deposits would be approximately equal to
the fifth, sixth and seventh largest banking organizations in the market. Thus, the Board concludes
that approval of the application would not result
in Applicant having a high concentration of banking resources within the relevant market.
Second, Protestant asserts that due to a substantial overlap of the service areas of Bank and
Northeast Bank, approval of the proposal would
result in the elimination of existing and future
competition between Bank and Northeast Bank.
Although the banks are located in the same banking market, it appears that Bank derives less than
five per cent of its total deposits and less than one
per cent of its total loans from the service area
of Northeast Bank; and Northeast Bank derives
less than four per cent of its total deposits and

4

See footnote 2 for a description of the market.




157

none of its loans from the service area of Bank.
In view of the foregoing, the Board realizes that
consummation of the subject proposal would result
in the elimination of some existing competition.
However, given the present structure of the Fort
Worth banking market and the size of Bank and
Northeast Bank in relation to that market, the
Board does not believe that these adverse effects
would be significant.
In several past cases, the Board has denied
certain applications to acquire banks in large metropolitan markets on the basis that consummation
of the proposed acquisition would eliminate competition within an area smaller than the entire
relevant banking market.5 In those cases, the applicant controlled a substantial share of total deposits within the relevant market. In addition, the
applicant, in each of those other cases, had several
existing subsidiary banks in close proximity to the
bank to be acquired and there was a substantial
overlap between the service areas of the applicant's existing subsidiary banks and the service
area of the bank to be acquired.
The circumstances that warranted denial of the
proposals described above do not appear to exist
in the subject application. First, Applicant does
not hold a substantial share of the market's deposits, and consummation would not result in Applicant holding a substantial share of such deposits.
Second, as noted above, there does not appear to
be a substantial overlap of the service areas of
Bank and Northeast Bank. Furthermore, there are
two banks, one of which is a subsidiary of the
State's third largest banking organization, that
intervene between Bank and Northeast Bank. In
view of the foregoing, it does not appear that
approval of the proposal would eliminate any
significant competition presently existing between
Bank and Northeast Bank, nor is it likely that
significant competition would develop in the foreseeable future absent approval of Applicant's proposal. Moreover, the Board is of the view that
the considerations relating to the convenience and
needs of the communities to be served outweigh
any anticompetitive effects that might result from
Applicant's acquisition of Bank. Therefore, hav-

5
For example, see the Board's Order of June 26, 1974,
denying the application by First City Bancorporation, Houston,
Texas, to acquire Meyerland Bank, Houston, Texas (60 Fed.
Res. BULLETIN 509 (1974)). Applicant's request for reconsideration of this application was denied by the Board on
November 11, 1974.

158

Federal Reserve Bulletin • February 1976

ing considered the comments of Protestant, it is
the Board's judgment that consummation of the
proposed transaction would be in the public interest and that the application should be approved.
On the basis of the record, the application is
approved for the reasons summarized above. The
transaction shall not be made (a) before the thirtieth calendar day following the effective date of
this Order or (b) later than three months after the
effective date of this Order, unless such period
is extended for good cause by the Board, or by
the Federal Reserve Bank of Atlanta pursuant to
delegated authority.
By order of the Board of Governors, effective
January 19, 1976.
Voting for this action: Vice Chairman Mitchell and
Governors Holland, Wallich, Coldwell, and Jackson.
Absent and not voting: Chairman Burns and Governor
Bucher.
Board action was taken while Governor Bucher was
a Board Member and before Governor Partee became
a Board Member.
(Signed) THEODORE E . ALLISON,
[SEAL]

Secretary of the Board.

Southland Bancorporation,
Mobile, Alabama
Order Denying Acquisition of Bank
Southland Bancorporation, Mobile, Alabama, 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
successor by merger to First National Bank of
Fairhope, Fairhope, Alabama ("Bank"). The
bank into which Bank is to be merged has no
significance except as a means to facilitate the
acquisition of the voting shares of Bank. Accordingly, the proposed acquisition of shares of the
successor organization is treated herein as the
proposed acquisition of the shares of Bank.
Notice of the application, affording opportunity
for interested persons to submit comments and
views, has been given in accordance with § 3(b)
of the Act. The time for filing comments and views
has expired and the Board has considered the
application and all comments received in light of
the factors set forth in § 3(c) of the Act (12 U.S.C.
1842 (c)).




Applicant, the fifth largest commercial banking
organization in Alabama, controls two banks with
aggregate deposits of approximately $456.4 million, representing 5.1 percent of the total deposits
in commercial banks in the State. 1 Acquisition of
Bank would increase Applicant's share of State
deposits by .4 of one per cent and would not
significantly increase the concentration of banking
resources in Alabama, although, as discussed
below, the proposal would have some adverse
effects on concentration in the relevant market.
Bank has deposits of approximately $31.7 million, representing 3.4 per cent of the total deposits
in commercial banks in the relevant market, the
Mobile banking market,2 and thereby ranks as the
fifth largest of eight banks operating in the market.
Applicant's lead bank, Merchants National Bank
of Mobile, Mobile, Alabama ("Mobile Bank"),
the largest bank operating in the relevant market,
has deposits of approximately $361.6 million,
representing 37.2 per cent of total commerical
bank deposits in the market. The three largest
banking organizations in the market account for
84.6 per cent of total commercial bank deposits.
Thus, consummation of this proposal would increase Applicant's share of total deposits to 40.6
per cent and would further increase concentration
of banking resources in an already concentrated
banking market.
Although Bank and Mobile Bank are located
16 miles apart, competition exists between the two
banks as a result of substantial commuting of the
labor force between Fairhope and Mobile. Mobile
Bank derives $9.3 million in loans and $7.2 million in deposit business from the service area of
Bank. Approval of the application would, therefore, eliminate a substantial amount of existing
competition between Applicant and Bank, as well
as reduce the number of banking alternatives
operating in the market. Moreover, approval of
the proposed transaction would remove a viable
entry vehicle for an Alabama bank holding company not currently represented in the market. Ac-

*A11 banking data are as of June 30, 1975, and reflect bank
holding company formations and acquisitions approved as of
November 1, 1975.
2
The relevant banking market is approximated by Mobile
County and all of Baldwin County except for the southeastern
quarter of the county. Although Mobile and Baldwin Counties
are physically separated by Mobile Bay, the above market
boundaries reflect commuter traffic patterns and the area within
which actual competition occurs.

Law Department

cordingly, the Board is of the view that consummation of the proposal would have significantly
adverse effects on both existing and future competition. 3
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 other positive considerations reflected in the record such as 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
prospects of Applicant, its subsidiaries, and Bank
are regarded as generally satisfactory and consistent with approval of the application, although such
considerations do not provide significant weight
for approval of the application. As a result of this
proposal, Bank would have increased loan limits
and would expand its student loan services. These
improved services lend some weight toward approval of the application. The Board finds, however, that neither the banking factors nor the
considerations relating to convenience and needs
are sufficient to outweigh the adverse competitive
effects of Applicant's proposal.
On the basis of the facts in the record and in
light of the factors set forth in section 3(c) of the
Act, it is the Board's judgment that approval of
the proposal would not be in the public interest.
Accordingly, the application is denied for the
reasons summarized above.
By order of the Board of Governors, effective
January 26, 1976.
Voting for this action: Vice Chairman Mitchell and
Governors Wallich, Coldwell, and Partee. Present and
abstaining: Governor Holland. Absent and not voting:
Chairman Burns and Governor Jackson.
[SEAL]

(Signed) THEODORE E. ALLISON,
Secretary of the Board.

3
The Board denied Applicant's original application to become a bank holding company, 1974 F.R. BULLETIN 669.
That application also involved acquisition of Bank. The
Board's conclusion as to the effects on competition of the
subject proposal are similar to its findings in its previous denial.




159

State Street Boston Financial Corporation,
Boston, Massachusetts
Order Approving

Acquisition

of Bank

State Street Boston Financial Corporation, Boston, Massachusetts, 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 Falmouth Bank
and Trust Company, Falmouth, Massachusetts
("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, the fourth largest banking organization in Massachusetts, presently controls two
subsidiary banks with aggregate deposits of $1.2
billion, representing approximately 8.7 per cent
of the total deposits in commercial banks in the
State. 1 Applicant's acquisition of Bank would not
result in a significant increase in the concentration
of banking resources in Massachusetts, nor would
it change Applicant's ranking among banking organizations in the State.
Bank (approximately $16.9 million in deposits)
is the sixth largest of eight banking organizations
operating in the Cape Cod banking market which
is the relevant banking market for this proposal, 2
and controls approximately 7.1 per cent of the total
deposits in commercial banks in the market. By
Order dated December 10, 1973, the Federal Reserve Bank of Boston approved Applicant's acquisition of Chatham Trust Company ("Chatham
Bank"), Chatham, Massachusetts (deposits of approximately $7.8 million, as of December 31,
1974). Chatham Bank operates in the same banking market as Bank, and although the acquisition
of Chatham Bank has not yet been consummated, 3

banking data are as of June 30, 1975, unless otherwise
indicated.
2
The Cape Cod banking market is approximated by Barnstable County.
3
The time within which Applicant must consummate the
acquisition of Chatham Trust Company has been extended by
the Federal Reserve Bank of Boston pursuant to delegated
authority.

160

Federal Reserve Bulletin • February 1976

the Board has examined the instant proposal in
light of the competitive factors which would exist
if the acquisition of Chatham Bank had been
consummated. Applicant, as a result of consummation of the instant proposal, would become the
fifth largest banking organization in the Cape Cod
banking market, controlling 11 per cent of the total
deposits in commercial banks in the market.
Although Bank and Chatham Bank operate in
the same banking market, they are located approximately 40 miles apart. In view of the relatively small size of the two banks, the distance
involved, and the existence of numerous intervening bank offices, it does not appear that consummation of this acquisition would eliminate any
significant existing competition; nor does it appear
likely that, absent this proposal, significant competition would develop between these organizations in the future. In addition, de novo entry
by Applicant in the Falmouth area is regarded as
relatively unattractive due to the market's low ratio
of population and deposits per commercial banking
office. Accordingly, the Board concludes that
competitive considerations are consistent with approval of this application.
The financial and managerial resources and future prospects of Applicant, its subsidiaries, and
Bank are regarded as satisfactory and consistent
with approval. As part of its proposal, Applicant
has committed to increase Bank's capital account
by $300,000 upon consummation of the acquisition, and by an additional $150,000 by July 31,
1976, thereby increasing Bank's legal lending
limit in addition to improving its capital position.
Bank will also offer trust services and improved
mortgage services as a result of its affiliation with
Applicant. Accordingly, the Board regards considerations relating to the convenience and needs
of the community to be served as lending support
to approval of the application. It is the Board's
judgment that the proposed acquisition would be
in the public interest and that the application
should be approved.
On the basis of the record, the application is
approved for the reasons summarized above. The
transaction shall not be made (a) before the thirtieth calendar day following the effective date of
this Order or (b) later than three months after the
effective date of this Order, unless such period
is extended for good cause by the Board, or by
the Federal Reserve Bank of Boston pursuant to
delegated authority.




By order of the Board of Governors, effective
January 20, 1976.
Voting for this action: Vice Chairman Mitchell and
Governors Bucher, Holland, and Jackson. Absent and
not voting: Chairman Burns and Governors Wallich and
Coldwell.
Board action was taken while Governor Bucher was
a Board Member and before Governor Partee became
a Board Member.
(Signed) THEODORE E . ALLISON,
[SEAL]

Secretary of the Board.

Determination with Respect to
Entitlement to Exemption Provided in
§ 4(c)(ii) of Bank Holding Company Act
Orwig and Company, Inc.,
Kansas City, Missouri
By Order dated December 1, 1975 (40 Federal
Register 57246; 1975), the Board approved the
application filed by Orwig and Company, Inc.,
Kansas City, Missouri ("Orwig"), for the Board's
approval under § 3(a)(5) of the Bank Holding
Company Act ("Act") to merge with Merchants
Investors, Inc., Kansas City, Missouri ("Merchants Investors"), under the title and charter of
Orwig. Because Orwig desires to continue engaging in certain nonbanking activities engaged in by
Merchants Investors, which activities are not
presently authorized for bank holding companies,
Orwig has requested a Board determination that
it is entitled to the benefits of the exemption set
forth in § 4(c)(ii) of the Act. That section provides
that the Act's prohibitions against nonbanking
activities of a bank holding company shall not
apply to any bank holding company that is "a
company covered in 1970 more than 85 per centum
of the voting stock of which was collectively
owned on June 30, 1968, and continuously thereafter, directly or indirectly, by or for members of
the same family, or their spouses, who are lineal
descendants of common ancestors." (12 U.S.C.
§ 1843(c)(ii)). In its Order of December 1, 1975,
the Board indicated that the question of Orwig's
entitlement to such exemption was still under
consideration. The Board has considered the request and, on the basis of the information presented, makes the following findings.
As indicated above, § 4(c)(ii) of the Act provides a complete exemption from the nonbanking
prohibitions of the Act for a bank holding company

Law Department

that is a "company covered in 1970" more than
85 per cent of the voting shares of which was
owned on June 30, 1968, and continuously thereafter, by or for members of the same family. Thus,
to qualify for a § 4(c)(ii) exemption, a bank
holding company must satisfy two distinct tests:
(1) it must be a "company covered in 1970"; and
(2) it must fulfill the continuous family ownership
requirement.
The Board believes that Orwig does not satisfy
the family ownership test because Orwig was not
in existence on June 30, 1968. Orwig argues,
however, that it is a "successor" to a company
that was in existence on that date more than 85
per cent of the voting shares of which was owned
on that date by members of the same family, and
that it should therefore be viewed as having been
in existence on that date. Specifically, Orwig contends that it was formed on July 24, 1970, as the
result of a consolidation of Mawn Investment Co.
("Mawn") and three other corporations.
The Board believes, however, that Orwig is not
a "successor" to these preexisting corporations,
within the meaning of the Act. The term "successor" is defined in § 2(e) of the Act as
"any company which acquires directly or indirectly from a bank holding company shares of any
bank, when and if the relationship between such
company and the bank holding company is such
that the transaction effects no substantial change
in the control of the bank or beneficial ownership
of such shares of such bank." (Emphasis added.)
On July 24, 1970, the four companies that were
consolidated to form Orwig owned, directly and
indirectly, about 47 per cent of the shares of
University Bank, Kansas City, Missouri, and
about 22 per cent of the shares of MerchantsProduce Bank. It is clear, therefore, that the constituent companies of Orwig, even if viewed as
a single entity, did not constitute a "bank holding
company" under the definitions in the Act as it
was in effect on the date of the consolidation.
Accordingly, since Orwig did not acquire shares
of a bank "from a bank holding company," it
cannot be viewed as a "successor" to the constituent companies within the definition set forth in
§ 2(e). 1
However, even if Orwig were considered a

1

See opposite column for footnote.




161

successor in interest to its constituent companies
so that it may trace its corporate existence back
to June 30, 1968, and thus satisfy the continuous
family ownership requirement of § 4(c)(ii), it does
not satisfy the requirement of that section that it
also be a "company covered in 1970."
Section 2(b) of the Act defines the term "company covered in 1970" as a "company which
becomes a bank holding company as a result of
the enactment of the Bank Holding Company Act
Amendments of 1970 and which would have been
a bank holding company on June 30, 1968, if those
amendments had been enacted on that date." On
December 31, 1970, Orwig owned approximately
28.5 per cent of a company that owned substantially all of the voting shares of Merchants-Produce
Bank, and by virtue of this ownership it became
a bank holding company as a result of the enactment of the 1970 Amendments to the Act. In
addition, as of that date Orwig owned approximately 24.9 per cent of a company that owned
substantially all of the voting shares of University
Bank. These holdings were reported to the Board
in Orwig's initial bank holding company registration statement filed under the Act in 1971. On
June 30, 1968, Orwig (if viewed as the successor
in interest to its constituent companies) owned
about 45 per cent of University Bank, but owned
only 16 per cent of Merchants-Produce Bank.
Thus, while Orwig became a bank holding company by reason of its ownership of MerchantsProduce Bank in 1970, it clearly would not have
been a bank holding company as to MerchantsProduce Bank on June 30, 1968, if the 1970
Amendments had been enacted on that date. Orwig
offers three arguments in an effort to cure this
defect in its claim of entitlement to the § 4(c)(ii)
exemption:
First, it contends that even though it did not
control Merchants-Produce Bank on June 30,
1968, it did control University Bank. Therefore,
it claims, it would have been a bank holding

1
While Orwig may be viewed as the legal successor in
interest to the constituent companies under applicable state
corporation law, the Board does not believe that state law is
relevant or controlling on the question whether Orwig is
entitled to the broad exemption from the prohibitions on
nonbanking activities set forth in § 4(c)(ii). That section plainly
refers to "a company" whose stock was owned by family
members on June 30, 1968, and the Board believes this
language should be narrowly construed.

162

Federal Reserve Bulletin • February 1976

company as to University Bank on June 30, 1968,
had the Act been amended on that date.
Second, Orwig contends that while it did not
control Merchants-Produce Bank on June 30,
1968, by virtue of stock ownership, it exercised
a "controlling influence" over the management or
policies of that bank on that date, and should
therefore be deemed retroactively to have controlled the bank as of that date.
Third, Orwig argues that as of December 31,
1970, it exercised a "controlling influence" over
the management or policies of University Bank,
and should therefore be deemed retroactively to
have become a bank holding company as to University Bank by reason of the enactment of the
1970 Amendments. If this contention were accepted, Orwig would then be a "company covered
in 1970" with respect to University Bank because
it clearly controlled more than 25 per cent of that
bank's voting shares as of June 30, 1968.
As to Orwig's first point, it is the Board's view
that a company claiming to be a "company covered in 1970" must have owned more than 25
per cent of the voting shares of the same bank
both on June 30, 1968, and December 31, 1970,
and continuously between those dates. In enacting
the 1970 Amendments to the Act, Congress was
concerned about disrupting settled banking relationships that had existed for a period of time prior
to the enactment of the Amendments to the Act.
June 30, 1968, was originally recommended by
the Administration as the cut-off date for determining eligibility for grandfather privileges. 2 In
the final version of the legislation, Congress
adopted June 30, 1968, as the "grandfather" date,
"because it was about that time that it became
clear that the major banks of this country were
going to restructure themselves as subsidiaries or
affiliates of one-bank holding companies," and
because the controversy engendered by the pub-

2
Under Secretary of the Treasury Walker testified in early
1969:

' 'This date is not so far back in time that forced divestitures
would disrupt the operations or threaten the viability of most
of the smaller, "traditional" one-bank holding companies. On
the other hand, the date is early enough to include the great
majority of new companies whose organization has pushed the
total assets involved to such a high level."
Hearings on "Bank Holding Company Act Amendments"
before the House Committee on Banking and Currency, 91st
Cong., 1st Sess. 90 (1969).




licity concerning this development put the public
on notice "that the issue was going to be reconsidered by the Congress." 116 Cong. Rec. 42424
(1970) (remarks of Sen. Sparkman). The ranking
minority member of the House Banking Committee explained that the "grandfather" clause "permits nonbanking activities of one-bank holding
companies that existed on or before June 30, 1968,
to be continued." 116 Cong. Rec. 41953 (1970)
(remarks of Rep. Widnall). It is clear, therefore,
that Congress was concerned about the disruption
of holding company relationships that were covered for the first time by the 1970 Amendments
and that had existed on June 30, 1968. If a
company that controlled one bank on June 30,
1968, voluntarily relinquished that control position
prior to the enactment of the 1970 Amendments,
it was plainly not within the scope of Congress'
concern, even though it may have acquired control
of a different bank after that date.
Orwig's second argument, that it exercised a
"controlling influence" over Merchants-Produce
Bank on June 30, 1968, and therefore should be
deemed to be a "company covered in 1970"
because it controlled the bank as of that date,
within the meaning of § 2(a)(2)(C) of the Act,
is also without merit. As noted above, § 2(b) of
the Act defines the term "company covered in
1970" as a "company that becomes a bank holding company as a result of the enactment of the
Bank Holding Company Act Amendments of 1970

and which would have been a bank holding company on June 30, 1968, if those amendments had
been enacted on that date." (Emphasis added.)
Since Orwig did not own as much as 25 per cent
of Merchants-Produce Bank on June 30, 1968, it
would not have been a bank holding company on
that date had the Amendments been enacted at
that time. It could only have become a bank
holding company at some subsequent date after
the Board made a "controlling influence" determination under § 2(a)(2)(C). It has long been the
Board's view that a company may only be considered a "company covered in 1970" if it automatically became a bank holding company by virtue
of the 1970 Amendments and would automatically
have become a bank holding company on June
30, 1968, had the amendments then been enacted.

See Perpetual Corporation—Pierce National Life
Insurance Company, 1973 Federal Reserve BULLETIN 218; Ribso, Inc., 38 Fed Reg. 7029 (1973).
Accordingly, Orwig cannot achieve the status of
a "company covered in 1970" by virtue of a

Law Department

retroactive "controlling influence" determination. 3
Orwig's third argument, that it exercised a
"controlling influence" over University Bank as
of December 31, 1970, must fail for the same
reasons as discussed with respect to its claim of
a "controlling influence" over Merchants-Produce
Bank as of June 30, 1968. 4 In this regard the Board
notes further that when Orwig registered as a bank
holding company in 1971, because of its control
of Merchants-Produce Bank, it did not claim to
have control over University Bank by virtue of
its exercise of a "controlling influence," and in
fact it indicated that University Bank was not a
subsidiary of Orwig. Thus, its present claim of
"controlling influence" is in conflict with the
representations it made to the Board in 1971. 5
Accordingly, on the basis of the information
presented and for the reasons summarized herein,
the Board has determined that Orwig is not entitled
to the exemption provided in § 4(c)(ii) of the Act.

3
The recent decision of the United States Court of Appeals
for the Ninth Circuit in Patagonia Corporation v. Board of
Governors, 517 F.2d 803 (1975) is not relevant to this issue.
The issue in Patagonia was whether a bank holding company
that was admittedly a "company covered in 1970," because
it controlled more than 25 per cent of the same bank both
on June 30, 1968, and December 31, 1970, was entitled to
continue to engage in a nonbanking activity that it ^vas engaged
in through a "subsidiary" on June 30, 1968. The court held
that in determining whether the nonbank company was a
"subsidiary," within the definition in § 2(d)(3) of the Act,
the Board must consider whether Patagonia exercised a "controlling influence" over that company's management policies.
The court itself distinguished that issue from the issue
involved here and in the Board's Ribso decision, namely,
whether a "controlling influence" determination can be made
retroactively under § 2(a)(2)(C) with respect to a bank for the
purpose of determining whether a company is a "company
covered in 1970." (517 F.2d at 814).
4
As an alternative, Orwig has requested that the Board make
a "controlling influence" determination under § 2(a)(2)(C) of
the Act that Merchants Investors was in fact a bank holding
company with respect to the same bank throughout the period
of June 30, 1968, to December 31, 1970, and thus a "company
covered in 1970." Merchants is wholly owned by members
of the same family that owns Orwig. Orwig argues that, upon
the merger of Merchants into Orwig (which transaction was
approved by the Board on December 1, 1975), Orwig would
be a "company covered in 1970" by reason of its being a
"successor" to Merchants. Merchants owned approximately
24 per cent of the voting shares of University Bank on December 31, 1970, and approximately the same ownership of
University Bank existed on June 30, 1968. Orwig's request
that Merchants be determined to be a "company covered in
1970" also must fail for the same reasons as discussed above
with respect to Orwig's claim of a "controlling influence"
over Merchants-Produce Bank as of June 30, 1968.
5
The registration form instructs registrants that "if the existence of control is open to reasonable doubt in any instance"
a registrant may disclaim control but must "state the material
facts pertinent to the possible existence of control."




163

By order of the Board of Governors, effective
January 15, 1976.
Voting for this action: Vice Chairman Mitchell and
Governors Bucher, Holland, Wallich, and Jackson.
Absent and not voting: Chairman Burns and Governor
Coldwell.
Board action was taken while Governor Bucher was
a Board Member and before Governor Partee became
a Board Member.
(Signed) THEODORE E. ALLISON,
[SEAL]

Secretary of the Board.

Order Approving Reconsideration
Citicorp,
New York, New York
Citicorp, New York, New York, has requested
reconsideration of the Order of November 10,
1975 (40 Federal Register 53315), whereby the
Board of Governors denied the application of
Citicorp for prior approval of the acquisition of
West Coast Credit Corporation, Seattle, Washington, pursuant to section 4(c)(8) of the Bank Holding Company Act of 1956, as amended (12 U.S.C.
1843(c)(8)).
The request for reconsideration is filed pursuant
to section 262.3(g)(5) of the Board's Rules of
Procedure, which provides that the Board will not
grant any request for reconsideration 4 'unless the
request presents relevant facts that, for good cause
shown, were not previously presented to the
Board, or unless it otherwise appears to the Board
that reconsideration would be appropriate." The
Board finds that the request for reconsideration
presents relevant facts or issues which appear
appropriate in the public interest for the Board to
consider. Accordingly, the request for reconsideration is hereby approved.
In order to facilitate such consideration, comments and views regarding the proposed acquisition may be filed with the Board not later than
February 9, 1976. Communications should be addressed to the Secretary, Board of Governors of
the Federal Reserve System, Washington, D.C.
20551. The application, as supplemented by Applicant's request for reconsideration, may be
inspected at the offices of the Board of Governors
or at the Federal Reserve Bank of New York.

164

Federal Reserve Bulletin • February 1976

By order of the Board of Governors, effective
January 9, 1976.
Voting for this action: Vice Chairman Mitchell and
Governors Holland and Partee. Voting against this action: Governor Coldwell. Absent and not voting:
Chairman Burns and Governors Wallich and Jackson.
(Signed) THEODORE E . ALLISON,
[SEAL]

Secretary of the Board.

Decision Under Section 25
of the Federal Reserve Act
Bank of Tokyo, Ltd.
Tokyo, Japan
The Board of Governors has approved the application of Bank of Tokyo, Ltd., Tokyo, Japan,
to acquire shares of Tokyo Bancorp International,
Houston, Texas ("TBI"), pursuant to section 25
of the Federal Reserve Act, 12 U.S.C. 601, and
section 4(c)(5) of the Bank Holding Company Act,
12 U.S.C. 1843(c)(5). TBI has entered into an
agreement with the Board whereby TBI will not
purchase or hold any asset or exercise any power
in the U.S. or abroad except as would be permissible under Regulation K, 12 CFR 211, applicable
to Edge Corporations. In addition, TBI has agreed
to comply with the reserve requirements of Regulation K with respect to its due-to-customer accounts. As a result of its agreement with the
Board, TBI becomes a so-called "Agreement
Corporation." Agreement Corporations are state
chartered corporations principally engaged in international and foreign banking.
Board decisions on applications under section
25 of the Federal Reserve Act are announced in
the form of a Board letter sent to the Applicant.
There follows the text of the Board's letter to Bank
of Tokyo and the agreement of TBI with the
Board:

cant") for permission of the Board of Governors under the provisions of section 4(c)(5)
of the Bank Holding Company Act of 1956,
as amended and section 25 of the Federal
Reserve Act, to hold stock of Tokyo Bancorp International (Houston), Inc., Houston,
Texas ("TBI"). Reference is also made to
the agreement dated January 22, 1976, executed by TBI in accordance with the requirements of section 25 of the Federal Reserve Act, by which such corporation agrees
to restrict its operations and conduct its
business in the manner set forth therein.
After consideration of the application and
agreement, the Board of Governors of the
Federal Reserve System, pursuant to section
4(c)(5) of the Bank Holding Company Act
of 1956, as amended and section 25 of the
Federal Reserve Act, approves the application and grants permission to Applicant to
purchase and hold up to 10,000 shares of
the stock of TBI at a cost of approximately
$1,000,000, provided such shares are acquired within one year from the date of this
letter. Please advise the Board of Governors,
through the Federal Reserve Bank of Dallas,
the date TBI commences business.
The foregoing approval is granted subject
to the condition that Applicant shall dispose
of its stock in TBI as the Board may direct
if, in the Board's judgment, TBI shall have
failed to comply with the terms of its agreement with the Board or regulations of the
Board applicable thereto. It should be noted
in this regard that the provisions of § 211.3
of Regulation K relating to the organization
of Edge Act Corporations do not, of course,
apply to Agreement Corporations such as
TBI. Accordingly, the citizenship requirements imposed on the directors and stockholders of Edge Act Corporations under
section 25(a) of the Federal Reserve Act and
included by implication in § 211.3 of Regulation K do not apply to TBI. In the Board's
judgment, it is clear that there are no statutory citizenship requirements for directors or
stockholders of Agreement Corporations
imposed under section 25 of the Federal
Reserve Act.
Very truly yours,

January 26, 1976
Mr. Yasushi Watanabe
Managing Director and
Regional Executive in New York
The Bank of Tokyo, Ltd.
New York Agency
100 Broadway
New York, New York 10005
Dear Mr. Watanabe:
This refers to the application of The Bank
of Tokyo, Ltd., Tokyo, Japan ("Appli-




(Signed) Theodore E. Allison,
Secretary of the Board.

Agreement
In consideration of the granting by the Board
of Governors of the Federal Reserve System
(hereinafter referred to as the Board of Governors),
under the provisions of Section 4(c)5 of the Bank
Holding Company Act of 1956, as amended, Section 25 the Federal Reserve Act and pursuant to

Law Department

an application filed with the Board of Governors
by The Bank of Tokyo, Ltd., of permission to
acquire and hold stock of Tokyo Bancorp International (Houston), Inc. (hereinafter referred to as
the Corporation), the Corporation, in accordance
with the provisions of Section 25 of the Federal
Reserve Act, hereby undertakes and agrees with
the Board of Governors as follows:
1. Compliance with Section 11 of Regulation
K:
That the Corporation shall not purchase or
hold any asset, or otherwise exercise any of
its power in the United States or abroad in
any manner, which would not be permissible
under the provisions of Regulation K issued
by the Board of Governors. In this regard
the due-to-customer accounts, credit balances in favor of its customers or other
similar obligations to be maintained by such
Corporation shall, for purposes of Regulation K, be treated in all respects, including,
without limitation, the maintenance of reserve requirements, as if such accounts, balances or obligations, as the case may be,
were deposits.
2. Further Limitations and Restrictions:
That the Corporation shall restrict its operations and conduct its business in such manner
and under such other or further limitations

165

and restrictions as the Board of Governors
may hereafter from time to time prescribe,
in Regulation K or otherwise.
3. Examinations and Reports:
(a) That at such times as may be fixed by
the Board of Governors the Corporation
shall submit to examination by examiners selected or approved by the Board
of Governors;
(b) That the Corporation shall pay the expenses of all such examinations in the
amount determined by the Board of
Governors;
(c) That the Corporation shall do everything
necessary to facilitate such examinations
and shall make available to the examiners all information which they may
require;
(d) That the Corporation shall make reports
to the Board of Governors at such times
and in such form and covering such
matters as the Board of Governors may
prescribe.
This agreement is executed in duplicate.
January 22, 1976
Tokyo Bancorp International
(Houston), Inc.

ORDERS APPROVED UNDER BANK HOLDING COMPANY A C T —

By the Board of Governors
During January 1976, the Board of Governors approved the applications listed below. The orders
have been published in the Federal Register, and copies are available upon request to Publications
Services, Division of Administrative Services, Board of Governors of the Federal Reserve System,
Washington, D.C. 20551.
Section 3

Applicant
Alabama Bancorporation,
Birmingham, Alabama
Ellis Banking Corporation, Bradenton,
Florida
The Glencoe Capital
Corporation, Glencoe, 111.




Bank(s)
Peoples Bank of Tuscaloosa, Tuscaloosa,
Alabama
American Bank of Fort
Myers, Fort Myers,
Florida
Glencoe National Bank,
Glencoe, 111.

Board action
(effective
date)

Federal
Register
citation

1/5/76

41 F.R. 1817
1/12/76

1/15/76

41 F.R. 3782
1/26/76

1/2/76

41 F.R. 1818
1/12/76

166

Federal Reserve Bulletin • February 1976

Section 3—Continued
Board action
(effective
date)

Bank(s)

Applicant
Humboldt Bancshares
Inc., Humboldt, Kansas
Nevada Brick and Tile
Co., Nevada, Iowa
Northstream Investments, Inc., Geddes,
South Dakota

Humboldt National
Bank, Humboldt,
Kansas
Nevada National Bank,
Nevada, Iowa
Security State Bank,
Geddes, South Dakota

Federal
Register
citation

1/5/16

41 F.R. 2113
1/14/76

1/9/76

41 F.R. 2689
1/19/76
41 F.R. 1819
1/12/76

1/2/76

Section 4
Board action
(effective
date)

Federal
Register
citation

Ancorp Insurance Company, Phoenix, Arizona

1/2/76

41 F.R. 1817
1/12/76

Computer Dynamics, Inc.,
Oakland, California

1/19/76

41 F.R. 3781
1/26/76

Nonbanking company
(or activity)

Applicant
Ancorp Bancshares,
Inc., Chattanooga,
Tennessee
Central Banking System, Inc., Oakland,
California

Sections 3 and 4

Applicant
Peoples Bankshares, Inc.,
Mora, Minnesota

Bank(s)
Peoples National Bank
of Mora,
Mora, Minnesota

Nonbanking company
(or activity)
Peoples Credit
Company of Mora,
Minnesota, Inc.,
Mora, Minnesota

Board action
(effective
date)
1/22/76

Federal
Register
citation
41 F.R. 1640
1/30/76

By Federal Reserve Banks
During December 1975 or January 1976, applications were approved by the Federal Reserve Banks
as listed below. The orders have been published in the Federal Register, and copies are available upon
request to the Reserve Bank.
Section 3

Applicant
Northwest Ohio
Bancshares, Inc.,
Toledo, Ohio




Bank(s)
The Liberty State
Savings Bank,
Liberty Center,
Ohio

Reserve
Bank

Effective
date

Cleveland

1/16/76

Federal
Register
citation
41 F.R. 4075
1/28/76

Law Department

167

Sections 3 and 4

Applicant
Dubois Bankshares, Inc.,
Sauk Centre,
Minnesota

Bank(s)
First State
Bank of
Sauk Centre, Sauk
Centre,
Minnesota

Nonbanking company
(or activity)
First State Agency, Sauk Centre,
Minnesota

Reserve
Bank

Effective
date

Minneapolis

12/19/75

Federal
Register
citation
41 F.R. 1330
1/7/76

PENDING CASES INVOLVING THE BOARD OF GOVERNORS*
Helen C. Hatten, et al. v. Board of Governors,
filed January 1976, U.S.D.C. for the District
of Connecticut.
International Bank v. Board of Governors,
filed December 1975, U.S.D.C. for the District of Columbia.
Community Bancorporation v. Board of Governors, filed December 1975, U.S.C.A. for
the Sixth Circuit.
Robert Farms, Inc. v. Comptroller of the Currency,
et al., filed November 1975,
U.S.D.C. for the Southern District of California.
National Computer Analysts, Inc. v. Decimus
Corporation, et al., filed November 1975,
U.S.D.C. for the District of New Jersey.
Peter E. Blum v. First National Holding Corporation, filed November 1975, U.S.D.C.
for the Northern District of Georgia.
Harlan National Co. v. Board of Governors,
filed November 1975, U.S.C.A. for the
Eighth Circuit.
Peter E. Blum v. Morgan Guaranty Trust Co.,
et al., filed October 1975, U.S.D.C. for the
Northern District of Georgia.
A.R. Martin-Trigona v. Board of Governors,
et al., filed September 1975, U.S.D.C. for
the Northern District of Illinois.

*This list of pending cases does not include suits against
Federal Reserve Banks in which the Board of Governors is
not named as a party.
f Decisions have been handed down in these cases, subject
to appeals noted.




tA.R. Martin-Trigona v. Board of Governors,
et al., filed September 1975, U.S.D.C. for
the Northern District of Illinois.
Reserve Enterprises, Inc. v. Arthur F. Burns,
et al., filed September 1975, U.S.D.C. for
the District of Minnesota.
Logan v. Secretary of State, et al., filed September 1975, U.S.D.C. for the District of
Columbia.
tEllsworth v. Burns, filed September 1975,
U.S.D.C. for the District of Arizona.
Florida Association of Insurance Agents, Inc.,
v. Board of Governors, and National Association of Insurance Agents, Inc. v. Board
of Governors, filed August 1975, actions
consolidated in U.S.C.A. for the Fifth Circuit.
Henry M. Smith v. National Bank of Boulder,
et al., filed June 1975, U.S.D.C. for the
Northern District of Texas.
Bank of Boulder v. Board of Governors, et al.,
filed June 1975, U.S.C.A. for the Tenth
Circuit.
1 t D a v i d R. Merrill, et al. v. Federal Open Market Committee of the Federal Reserve System, filed May 1975, U.S.D.C. for the District of Columbia.
Curvin J. Trone v. United States, filed April
1975, U.S.. Court of Claims.

$The Board of Governors is not named as a party in this
action.

168

Federal Reserve Bulletin • February 1976

Richard S. Kaye v. Arthur F. Burns, et al.,
filed April 1975, U.S.D.C. for the Southern
District of New York.
Louis J. Roussel v. Board of Governors, filed
April 1975, U.S.D.C. for the Eastern District
of Louisiana.
Georgia Association of Insurance Agents, et
al. v. Board of Governors, filed October
1974, U.S.C.A. for the Fifth Circuit.
Alabama Association of Insurance Agents, et
al., v. Board of Governors, filed July 1974,
U.S.C.A. for the Fifth Circuit,
tInvestment
Company Institute v. Board of
Governors, dismissed July 1975, U.S.D.C.
for the District of Columbia, appeal pending,




U.S.C.A. for the District of Columbia Circuit.
tGeorge Brice, Jr., et al., v. Board of Governors, filed April 1974, U.S.C.A. for the
Ninth Circuit.
East Lansing State Bank v. Board of Governors, filed December 1973, U.S.C.A. for the
Sixth Circuit,
tConsumers Union of the United States, Inc.,
et al., v. Board of Governors, filed September 1973, U.S.D.C. for the District of
Columbia.
Bankers Trust New York Corporation v. Board
of Governors, filed May 1973, U.S.C. A. for
the Second Circuit.

169

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. The list shows, in addition to the name 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, who are elected by the stockholding member
banks, and three Class C directors, who are appointed by the Board of Governors of the Federal
Reserve System. Class A directors are representative of the stockholding member banks. Class
B directors at the time of their election must be
actively engaged in their district in commerce,
agriculture, or some industrial pursuit, and may
not be officers, directors, or employees of any
bank.
For the purpose of electing Class A and Class
B directors, the member 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
may 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 whom 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. One
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 may prescribe.
Names followed by footnote 1 (*) are Chairmen
and those by footnote 2 ( 2 ) are Deputy Chairmen.
Names in capital letters indicate new appointments; all others are reappointments.

DISTRICT 1—FEDERAL RESERVE BANK OF BOSTON
Term
expires
Dec. 31

CLASS A.FRANCIS N . SOUTHWORTH
JAMES F . ENGLISH, JR.
J O H N D.

CLASS

ROBINSON

Chairman of the Board, President, Concord National Bank,
Concord, N.H.
1976
Chairman, The Connecticut Bank and Trust Co., Hartford,
Conn.
1977
President, Firstbank, N . A . , Farmington, Me.
1978

B:

G . WILLIAM MILLER
WESTON P . FIGGINS
ALFRED W . VAN SINDEREN

President, Textron Inc., Providence, R.I.
1976
Chairman of the Board, Wm. Filene's Sons Company,
Boston, Mass.
1977
President, The Southern New England Telephone Company,
New Haven, Conn.
1978

CLASS C.KENNETH I. GUSCOTT
ROBERT M . SOLOW 2
LOUIS W . CABOT 1




President, Ken Guscott Associates, Boston, Mass.
1976
Institute Professor, Massachusetts Institute of Technology,
Cambridge, Mass.
1977
Chairman of the Board, Cabot Corporation, Boston, Mass. 1978

170

Federal Reserve Bulletin • February 1976

DISTRICT 2—FEDERAL RESERVE BANK OF NEW YORK
CLASS A.-

Term
expires
Dec. 31

Chairman of the Board, The Chase Manhattan Bank, N.A.
New York, N.Y.
1976
President, First-City National Bank of Binghamton, N.Y. 1977
President, First National Bank of Cortland, N.Y.
1978

DAVID ROCKEFELLER
STUART MCCARTY
H A R R Y J. T A W

CLASS B.MAURICE F . GRANVILLE
WILLIAM S . SNEATH
JACK B . JACKSON

Chairman of the Board, Texaco Inc., New York, N.Y.
President, Union Carbide Corporation, New York, N.Y.
President, J.C. Penney Co., Inc., New York, N.Y.

1976
1977
1978

CLASS C.ALAN PLFER
ROBERT H. KNIGHT2
FRANK R . MILLIKEN 1

President, Carnegie Corporation of New York, N.Y.
1976
Partner, Shearman and Sterling, Attorneys, New York, N.Y. 1977
President, Kennecott Copper Corporation, New York, N.Y. 1978

BUFFALO BRANCH
APPOINTED

BY FEDERAL RESERVE

J. WALLACE ELY

BANK:

Chairman of the Board, New York State Corporation, Rochester, N.Y.
1976

DANIEL G . RANSOM

President, T h e W m . Hengerer C o . , B u f f a l o , N . Y .

CHARLES A. MARKS
AVERY H. FONDA

President, Alden State Bank, Alden, N.Y.
1977
President, Liberty National Bank and Trust Company, Buffalo, N.Y.
1978

APPOINTED

BY BOARD

OF

1

RUPERT WARREN
PAUL A. MILLER

DONALD R. NESBITT

1976

GOVERNORS:
Former President, Trico Products Corporation, Buffalo,
N.Y.
1976
President, Rochester Institute of Technology, Rochester,
N.Y.
1977
Owner-Operator, Silver Creek Farms, Albion, N.Y.
1978

DISTRICT 3—FEDERAL RESERVE BANK OF PHILADELPHIA
CLASS A.THOMAS L. MILLER

President, Upper Dauphin National Bank, Millersburg, Pa. 1976

WILLIAM B. EAGLESON

Chairman of the Board, President, Girard Bank, Bala Cynwyd, Pa.
1977
President and Chief Executive Officer, National Bank and
Trust Company of Gloucester County, Woodbury, N.J. 1978

JAMES PATCHELL

CLASS B.WILLIAM S. MASLAND
C. GRAHAM BERWIND, JR.
HAROLD A. SHAUB




President, C.H. Masland & Sons, Carlisle, Pa.
1976
Chairman and President, Berwind Corporation, Philadelphia,
Pa.
1977
President and Chief Executive Officer, Campbell Soup Co.,
Camden, N.J.
1978

Directory of Federal Reserve Banks and Branches

171

DISTRICT 3—FEDERAL RESERVE BANK OF PHILADELPHIA—Continued
Term
expires
Dec. 31

CLASS C.JOHN R . COLEMAN 1
W E R N E R C. B R O W N
JOHN W. ECKMAN2

President, Haverford College, Haverford, Pa.
President, Hercules, Inc., Wilmington, Del.
President, Rorer-Amchem, Inc., Fort Washington, Pa.

1976
1977
1978

DISTRICT 4—FEDERAL RESERVE BANK OF CLEVELAND
CLASS A.Chairman of the Board, First National Bank of Middletown,
Ohio
1976
Chairman of the Board, Chief Executive Officer, Pittsburgh
National Bank, Pittsburgh, Pa.
1977
President, First National Bank of Bellevue, Ohio
1978

EDWARD W . BARKER
MERLE E . GILLIAND
R I C H A R D P. RAISH

CLASS B.Chairman of the Board, The F. & R. Lazarus Co., Columbus, Ohio
1976
Chairman of the Board, Chief Executive Officer, Rubbermaid
Inc., Wooster, Ohio
1977
Chairman of the Board, Chief Executive Officer, Dana Corporation, Toledo, Ohio
1978

CHARLES Y . LAZARUS
DONALD E . NOBLE
RENE C . MCPHERSON

CLASS

C:

ROBERT E . KIRBY 2

Chairman and Chief Executive Officer, Westinghouse Electric Corporation, Pittsburgh, Pa.
1976
Chairman of the Board, Chief Executive Officer, TRW Inc.,
Cleveland, Ohio
1977
President, University of Kentucky, Lexington, Ky.
1978

HORACE A . SHEPARD 1
OTIS A . SINGLETARY

CINCINNATI BRANCH
APPOINTED

BY FEDERAL RESERVE

JOSEPH F. RIPPE
JOE D. BLOUNT
ROBERT A. KERR
LAWRENCE C. HAWKINS
APPOINTED

BY BOARD

OF

CLAIR F. VOUGH
LAWRENCE H. ROGERS II1
MARTIN B. FRIEDMAN



BANK:

President, The Provident Bank, Cincinnati, Ohio
1976
President, National Bank of Cynthiana, Ky.
1977
Chairman of the Board and President, Winters National Bank
and Trust Co., Dayton, Ohio
1978
Vice President, University of Cincinnati, Ohio
1978
GOVERNORS:
Chairman, Productivity Research International, Inc., Lexington, Ky.
1976
President, Taft Broadcasting Company, Cincinnati, Ohio
1977
President, Formica Corporation, Cincinnati, Ohio
1978

172

Federal Reserve Bulletin • February 1976

DISTRICT 4—FEDERAL RESERVE BANK OF CLEVELAND—Continued
PITTSBURGH BRANCH

APPOINTED

BY FEDERAL RESERVE

MALCOLM E. LAMBING, JR.

President, Chief Executive Officer, The First National Bank
of Pennsylvania, Erie, Pa.
President, Union National Bank, Pittsburgh, Pa.
Vice Chairman and Chief Executive Officer, H.J. Heinz Co.,
Pittsburgh, Pa.
Chairman of the Board and Chief Executive Officer, First
National Bank and Trust Company in Steubenville, Ohio

RICHARD D. EDWARDS
R. BURT GOOKIN
WILLIAM E. MIDKIFF, III

APPOINTED

BY BOARD

OF

BANK:

Term
expires
Dec. 31
1976
1977
1978
1978

GOVERNORS:

G. JACKSON TANKERSLEY1
ARNOLD R. WEBER
W . H. KNOELL

President, Consolidated Natural Gas Company, Pittsburgh,
Pa.
1976
Dean, Graduate School of Industrial Administration, Provost, Carnegie-Mellon University, Pittsburgh, Pa.
1977
President, Cyclops Corporation, Pittsburgh, Pa.
1978

DISTRICT 5—FEDERAL RESERVE BANK OF RICHMOND
CLASS A.PLATO P . PEARSON, JR.
JAMES A . HARDISON
J. O W E N

COLE

Chairman and President, The Citizens National Bank, Gastonia, N.C.
1976
Chairman and President, The First National Bank of Anson
County, Wadesboro, N.C.
1977
Chairman of the Board and President, First National Bank
of Maryland, Baltimore, Md.
1978

CLASS B.ANDREW L . CLARK
HENRY CLAY HOFHEIMER, II
OSBY L . WEIR

CLASS

President, Andy Clark Ford, Inc., Princeton, W. Va.
1976
Chairman of the Board, Virginia Real Estate Investment
Trust, Norfolk, Va.
1977
Retired General Manager, Metropolitan Washington-Baltimore Area, Sears Roebuck and Company, Bethesda, Md.
1978

C:

E . ANGUS POWELL 1
E . CRAIG WALL, SR. 2
M A C E O A.




SLOAN

President, Chesterfield Land & Timber Corp., Midlothian,
Va.
1976
Chairman of the Board, Canal Industries, Inc., Conway,
S.C.
1977
Senior Vice President, North Carolina Mutual Life Insurance
Co., Durham, N.C.
1978

Directory of Federal Reserve Banks and Branches

173

DISTRICT 5—FEDERAL RESERVE BANK OF RICHMOND—Continued
BALTIMORE BRANCH

APPOINTED

BY FEDERAL RESERVE

J. STEVENSON PECK
LACY I. RICE, JR.

J. PIERRE BERNARD
CATHERINE B. DOEHLER

APPOINTED

BY BOARD

OF

I. E. KILLIAN
JAMES G. HARLOW1
DAVID W. BARTON, JR.

BANK:

Term
expires
Dec. 31

Chairman of the Board, Union Trust Company of Maryland,
Baltimore, Md.
President, The Old National Bank of Martinsburg, W.Va.,
and President, Suburban National Bank of Martinsburg,
W.Va.
Chairman of the Board, The Annapolis Banking and Trust
Company, Annapolis, Md.
Senior Vice President, Chesapeake Financial Corporation,
Baltimore, Md.

1976

1976
1977
1978

GOVERNORS:
Manager, Eastern Region, Exxon Company, U . S . A . , Baltimore, Md.
1976
President, West Virginia University, Morgantown, W.Va. 1977
President, The Barton-Gillet Company, Baltimore, Md.
1978

CHARLOTTE BRANCH
APPOINTED

BY FEDERAL RESERVE

President, The Conway National Bank, Conway, S.C.
President and Trust Officer, First National Bank of Reidsville, N.C.
President, J.B. Ivey and Company, Charlotte, N.C.
Chairman of the Board, President, First National Bank of
South Carolina, Columbia, S.C.

THOMAS L. BENSON
W. B. APPLE, JR.
JOHN T. FIELDER
WILLIAM W. BRUNER

APPOINTED

BY BOARD

CHARLES W. DEBELL
CHARLES F. BENBOW
ROBERT C. EDWARDS

BANK:

OF
1

1976
1976
1977
1978

GOVERNORS:
General Manager, North Carolina Works, Western Electric
Company, Inc., Winston-Salem, N.C.
1976
Senior Vice President, R.J. Reynolds Industries, Inc., Winston-Salem, N.C.
1977
President, Clemson University, Clemson, S.C.
1978

DISTRICT 6—FEDERAL RESERVE BANK OF ATLANTA
CLASS A.JOHN T. OLIVER, JR.
JACK P. KEITH
SAM I. YARNELL




President, First National Bank of Jasper, Ala.
1976
President, First National Bank of West Point, Ga.
1977
Chairman, American National Bank and Trust Company,
Chattanooga, Tenn.
1978

174

Federal Reserve Bulletin • February 1976

DISTRICT 6—FEDERAL RESERVE BANK OF ATLANTA—Continued
Term
expires
Dec. 31

CLASS B.-

Manager, Tennessee Operations, Aluminum Company of
1976
America, Alcoa, Tenn.
Executive Vice President, Southern Natural Resources, Inc.,
Birmingham, Ala.
1977
1978
Chairman, Publix Super Markets, Inc., Lakeland, Fla.

ROBERT T. HORNBECK
ULYSSES V. GOODWYN
GEORGE W . JENKINS
CLASS C:
CLIFFORD M. KIRTLAND, JR. 2
H. G. PATTILLO1
FRED ADAMS, JR.

1976
President, Cox Broadcasting Corporation, Atlanta, Ga.
Chairman of the Board, Pattillo Construction Company, Inc.,
1977
Decatur, Ga.
1978
President, Cal-Maine Foods, Inc., Jackson, Miss.

BIRMINGHAM BRANCH
APPOINTED

BY FEDERAL RESERVE

BANK:

President, First National Bank, Brewton, Ala.
Executive Vice President, Union Bank & Trust Company,
Montgomery, Ala.
President, American National Bank of Gadsden, Ala.
D.C. WADSWORTH, JR.
ROBERT H. WOODROW, JR. Chairman of the Board and Chief Executive Officer, First
National Bank of Birmingham, Ala.

CLARENCE L. TURNIPSEED
JOHN MAPLES, JR.

APPOINTED

BY BOARD

OF

WILLIAM H. MARTIN, III
HAROLD B. BLACH, JR. 1
FRANK P. SAMFORD, JR.

1976
1976
1977
1978

GOVERNORS:
Executive Vice President, Martin Industries, Sheffield, Ala. 1976
President, J. Blach & Sons, Inc., Birmingham, Ala.
1977
Chairman of the Board, Liberty National Life Insurance Co.,
Birmingham, Ala.
1978

JACKSONVILLE BRANCH

APPOINTED

BY FEDERAL RESERVE

MACDONNELL TYRE
RICHARD A. COOPER

Chairman, Sun First National Bank of Orlando, Fla.
Chairman of the Board, First National Bank of New Port
Richey, Fla.
Chairman, Florida National Banks of Florida, Inc., Jacksonville, Fla.
President, Barnett Bank of Cocoa, N . A . , Cocoa, Fla.

CHAUNCEY W. LEVER
JOHN T. CANNON, III
APPOINTED

BY BOARD

EGBERT R. BEALL1
GERT H. W. SCHMIDT
JAMES E. LYONS




BANK:

OF

1976
1976
1977
1978

GOVERNORS
President, Beall's Department Stores, Bradenton, Fla.
1976
President, TeLeVision 12 of Jacksonville, Fla.
1977
President, Lyons Industrial Corporation, Winter Haven, Fla. 1978

Directory of Federal Reserve Banks and Branches

175

DISTRICT 6—FEDERAL RESERVE BANK OF ATLANTA—Continued
Term
expires

MIAMI BRANCH
APPOINTED

BY FEDERAL RESERVE

MICHAEL J. FRANCO
HARRY HOOD BASSETT

JEAN MCARTHUR DAVIS
BY BOARD

OF

BANK:

Chairman, City National Bank of Miami, Fla.
Chairman of the Board, Southeast Banking Corporation,
Miami, Fla.
Chairman of the Board, First Bancshares of Florida, Inc.,
Boca Raton, Fla.
President, McArthur Dairy, Inc., Miami, Fla.

THOMAS F. FLEMING, JR.

APPOINTED

Dec. 31

1976
1977
1978
1978

GOVERNORS:

1

CASTLE W. JORDAN
DAVID G. ROBINSON
ALVARO LUIS CARTA

President,
President,
President,
Beach,

Aegis Corporation, Coral Gables, Fla.
1976
Edison Community College, Fort Myers, Fla.
1977
Gulf + Western Americas Corporation, Vero
Fla.
1978

NASHVILLE BRANCH
APPOINTED

BY FEDERAL RESERVE

Vice Chairman, First American National Bank of Nashville,
Tenn.
President, Blount National Bank of Maryville, Tenn.
President, First National Bank, Sparta, Tenn.
President and Chief Executive Officer, First National Bank
of Sullivan County, Kingsport, Tenn.

T. SCOTT FILLEBROWN, JR.
FRED R. LAWSON
W. M. JOHNSON
JOHN W. ANDERSEN

APPOINTED

BY BOARD

OF

BANK:
1976
1976
1977
1978

GOVERNORS:

1

JAMES W. LONG

JAMES R. LAWSON
JOHN C. BOLINGER

President, Robertson County Farm Bureau, Springfield,
Tenn.
1976
Fisk University, Nashville, Tenn.
1977
Management Consultant, Knoxville, Tenn.
1978

NEW ORLEANS BRANCH
APPOINTED

BY FEDERAL RESERVE

MARTIN C. MILER
CHARLES W. MCCOY
R. B. LAMPTON
WILMORE W. WHITMORE




BANK

Chairman of the Board and President, The Hibernia National
Bank, New Orleans, La.
Chairman of the Board, President, Louisiana National Bank,
Baton Rouge, La.
President, First National Bank of Jackson, Miss.
President and Chief Executive Officer, First National Bank
of Houma, La.

1976
1976
1977
1978

176

Federal Reserve Bulletin • February 1976

DISTRICT 6—FEDERAL RESERVE BANK OF ATLANTA—Continued
NEW ORLEANS BRANCH—Continued
APPOINTED

BY BOARD

OF GOVERNORS:

HETTIE D. EAVES

Term
expires
Dec. 31

Executive Vice President, Avondale Shipyards, Inc., New
Orleans, La.
1976
President, George C. Cortright Co., Rolling Fork, Miss.
1977
President, Caplan's Men's Shops, Inc., Alexandria, La.
1978

GEORGE C. CORTRIGHT
EDWIN J. CAPLAN1

DISTRICT 7—FEDERAL RESERVE BANK OF CHICAGO
CLASS

A:
President, Huron Valley National Bank, Ann Arbor, Mich. 1976
President, Iowa Trust and Savings Bank, Emmetsburg, Iowa 1977
Chairman of the Board, First National Bank of Chicago,
111.
1978

JAY J. DELAY
JOHN F. SPIES
A. ROBERT ABBOUD

CLASS B:
President, Rolscreen Company, Pella, Iowa
1976
Executive Vice President, Cummins Engine Company, Inc.,
Columbus, Ind.
1977
Chairman of the Executive Committee, Oscar Mayer & Co.,
Inc., Madison, Wis.
1978

PAUL V. FARVER
JOHN T. HACKETT
OSCAR G. MAYER

CLASS C:
ROBERT H. STROTZ2
LEO H. SCHOENHOFEN
PETER B. CLARK1

President,
Chairman
Chairman
ciation,

Northwestern University, Evanston, 111.
1976
of the Board, Marcor Inc., Chicago, 111.
1977
of the Board, President, The Evening News AssoDetroit, Mich.
1978

DETROIT BRANCH
APPOINTED

BY FEDERAL RESERVE

BANK:

ROBERT M. SURDAM

Chairman of the Board, National Detroit Corporation, Detroit, Mich.
1976
HAROLD A. ELGAS
President, Gaylord State Bank, Gaylord, Mich.
1977
JOSEPH B. FOSTER
President, Ann Arbor Bank, Ann Arbor, Mich.
1978
CHARLES R.MONTGOMERY President, Consolidated Gas Company, Detroit, Mich.
1978
APPOINTED

BY BOARD

JORDAN B. TATTER
TOM KILLEFER1
HERBERT H. DOW




OF

GOVERNORS:
President and Chief Executive Officer, Southern Michigan
Cold Storage Co., Benton Harbor, Mich.
1976
Executive Vice President and General Counsel, Chrysler
Corporation, Detroit, Mich.
1977
Secretary, Dow Chemical Company, Midland, Mich.
1978

Directory of Federal Reserve Banks and Branches

DISTRICT 8—FEDERAL RESERVE BANK OF ST. LOUIS
CLASS

A:

RAYMOND C. BURROUGHS
DONALD N . BRANDIN
WILLIAM E . WEIGEL

177

Term
expires
Dec. 31

President, The City National Bank of Murphysboro, 111.
1976
Chairman of the Board and President, The Boatmen's National Bank of St. Louis, Mo.
1977
Executive Vice President, First National Bank & Trust Co.,
Centralia, 111.
1978

CLASS B.President, Arkansas Foundry Company, Little Rock, Ark. 1976
Senior Vice President and General Manager, Arkla Industries, Inc., Evansville, Ind.
1977
Group Vice President, Monsanto Company, St. Louis, Mo. 1978

FRED I. BROWN, JR.
RALPH C. BAIN
TOM K . SMITH

CLASS C.HARRY M . YOUNG, JR.
EDWARD J . SCHNUCK 1

Vacancy

Melrose Farm, Herndon, Ky.
1976
Chairman of the Board, Schnuck Markets, Inc., Bridgeton,
Mo.
1977
1978

LITTLE ROCK BRANCH
APPOINTED

BY FEDERAL RESERVE

HERBERT H . MCADAMS, II
THOMAS E . HAYS, JR.
THOMAS G . VINSON
FIELD WASSON

APPOINTED

BY BOARD

ROLAND R . REMMEL
RONALD W . BAILEY 1
GEORGE L. KELLEY

OF

BANK:

Chairman of the Board, Chief Executive Officer, Union
National Bank of Little Rock, Ark.
President and Chief Executive Officer, First National Bank
of Hope, Ark.
Executive Vice President, The Citizens Bank, Batesville,
Ark.
President, The First National Bank, Siloam Springs, Ark.

1976
1977
1978
1978

GOVERNORS:
Chairman of the Board, Southland Building Products Co.,
Little Rock, Ark.
1976
Executive Vice President and General Manager, Producers
Rice Mill, Inc., Stuttgart, Ark.
1977
President, Pickens-Bond Construction Company, Little
Rock, Ark.
1978

LOUISVILLE BRANCH
APPOINTED

BY FEDERAL RESERVE

HAROLD E . JACKSON
J . DAVID GRISSOM

TOM G. Voss
F R E D B. O N E Y




BANK:

President, The
President and
Corporation,
President, The
President, The

Scott County State Bank, Scottsburg, Ind.
Chief Operating Officer, Citizens Fidelity
Louisville, Ky.
Seymour National Bank, Seymour, Ind.
First National Bank of Carrollton, Ky.

1976
1977
1978
1978

178

Federal Reserve Bulletin • February 1976

DISTRICT 8—FEDERAL RESERVE BANK OF ST. LOUIS—Continued
LOUISVILLE BRANCH—Continued
APPOINTED

BY BOARD

WILLIAM H . STROUBE

OF
1

JAMES C . HENDERSHOT
JAMES H . DAVIS

GOVERNORS:

Term
expires
Dec. 31

Associate Dean, College of Science and Technology, Western Kentucky University, Bowling Green, Ky.
1976
President, Reliance Universal, Inc., Louisville, Ky.
1977
Chairman of the Board, Chief Executive Officer, Porter Paint
Co., Louisville, Ky.
1978

MEMPHIS BRANCH
APPOINTED

BY FEDERAL RESERVE

WILLIAM M . CAMPBELL
CHARLES S . YOUNGBLOOD
WILLIAM W . MITCHELL
STALLINGS

APPOINTED

LIPFORD

BY BOARD

OF

ROBERT E . HEALY 1
FRANK A . JONES, JR.
JEANNE L . HOLLEY

BANK:

Chairman of the Board, Chief Executive Officer, First National Bank of Eastern Arkansas, Forrest City, Ark.
President and Chief Executive Officer, First Columbus National Bank, Columbus, Miss.
Chairman and Chief Executive Officer, First National Bank
of Memphis, Tenn.
President, First-Citizens National Bank, Dyersburg, Tenn.

1976
1977
1978
1978

GOVERNORS:
Partner-in-Charge of the Mid-South Area, Price Waterhouse
& Co., Memphis, Tenn.
1976
President, Cook Industries, Inc., Memphis, Tenn.
1977
Associate Professor of Business Education, University of
Mississippi, University, Miss.
1978

DISTRICT 9—FEDERAL RESERVE BANK OF MINNEAPOLIS
CLASS A.CHARLES T . UNDLIN
WILLIAM E . RYAN
J O H N S. R O U Z I E

President, First National Bank of the Black Hills, Rapid City,
S. Dak.
1976
President, Citizens State Bank, Ontonagon, Mich.
1977
President, First National Bank of Bowman, N. Dak.
1978

CLASS B.WARREN B . JONES
DONALD P . HELGESON
RUSSELL G. C L E A R Y

Secretary-Treasurer, General Manager, Two Dot Land &
Livestock Co., Harlowton, Mont.
1976
Secretary-Treasurer, Jack Frost, Inc., St. Cloud, Minn.
1977
Chairman, President and Chief Executive Officer, G. Heileman Brewing Company, LaCrosse, Wis.
1978

CLASS C.HOWARD R . SWEARER
STEPHEN F. KEATING2
JAMES P . MCFARLAND 1




President, Carleton College, Northfield, Minn.
1976
Chairman of the Board, Honeywell, Inc., Minneapolis,
Minn.
1977
Chairman of the Board, Chief Executive Officer, General
Mills, Inc., Minneapolis, Minn.
1978

Directory of Federal Reserve Banks and Branches

179

DISTRICT 9—FEDERAL RESERVE BANK OF MINNEAPOLIS—Continued
Term

HELENA BRANCH
APPOINTED

BY FEDERAL RESERVE

JOHN REICHEL
GEORGE IF. SELOVER

BY BOARD

De

BANK:

°'

President, First National Bank, Great Falls, Mont.
1976
President and General Manager, Selover Buick-Jeep, Inc.,
Billings, Mont.
1976
President, Ronan State Bank, Ronan, Mont.
1977

DONALD OLSSON
APPOINTED

expires

OF

JAMES C. GARLINGTON1
REGINALD M. DAVIES

GOVERNORS:
Senior Partner, Garlington, Lohn & Robinson, Attorneys,
Missoula, Mont.
1976
Owner-Operator, S Bar B Ranch, Chinook, Mont.
1977

DISTRICT 10—FEDERAL RESERVE BANK OF KANSAS CITY
CLASS

A:

PHILIP HAMM
CRAIQ BACHMAN
J A M E S M. K E M P E R , JR.

President,
Kans.
President,
Chairman
Kansas

First National Bank & Trust Company, El Dorado,
First National Bank of Centralia, Kans.
and President, Commerce Bancshares,
City, Mo.

1976
1977
Inc.,
1978

CLASS B.DONALD J . HALL
FRANK C . LOVE
A L A N R.

SLEEPER

President, Hallmark Cards, Inc., Kansas City, Mo.
1976
Of Counsel, Crowe, Dunlevy, Thweatt, Swinford, Johnson
and Burdick, Oklahoma City, Okla.
1977
Livestock and Ranching, Alden, Kans.
1978

CLASS C.ROBERT T . PERSON 1
JOSEPH H . WILLIAMS
HAROLD W . ANDERSEN 2

Chairman of the Board, President, Public Service Co. of
Colorado, Denver, Colo.
1976
President, The Williams Companies, Tulsa, Okla.
1977
President, Omaha World-Herald Company, Omaha, Nebr. 1978

DENVER BRANCH
APPOINTED

BY FEDERAL RESERVE

DALE R. HINMAN
WILLIAM H. VERNON
FELIX BUCHENROTH, JR.




BANK:

Chairman of the Board, The Greeley National Bank, Greeley, Colo.
1976
Chairman of the Board, Chief Executive Officer, Santa Fe
National Bank, Santa Fe, N. Mex.
1976
President, The Jackson State Bank, Jackson, Wyo.
1977

31

180

Federal Reserve Bulletin • February 1976

DISTRICT 10—FEDERAL RESERVE BANK OF KANSAS CITY—Continued
Term
expires

DENVER BRANCH—Continued
APPOINTED

BY BOARD

OF

EDWARD R. LUCERO
MAURICE B. MITCHELL1

Dec. 31

GOVERNORS:
President and Chairman, Colorado Economic Development
Association, Denver, Colo.
1976
Chancellor, University of Denver, Colo.
1977

OKLAHOMA CITY BRANCH
APPOINTED

BY FEDERAL RESERVE

HUGH C. JONES
V. M. THOMPSON, JR.
J. A. MAURER

APPOINTED

BY BOARD

BANK:

Executive Vice President, The Bank of Woodward, Okla. 1976
President, Utica National Bank and Trust Co., Tulsa, Okla. 1976
Chairman of the Board, The Security National Bank and
Trust Company, Duncan, Okla.
1977
OF

HARLEY CUSTER
JAMES G. HARLOW, JR. 1

GOVERNORS:
General Manager, National Livestock Commission Association, Oklahoma City, Okla.
1976
President, Oklahoma Gas and Electric Co., Oklahoma City,
Okla.
1977

OMAHA BRANCH
APPOINTED

BY FEDERAL RESERVE

F. PHILLIPS GILTNER
GLENN YAUSSI

President, First National Bank of Omaha, Nebr.
1976
Vice Chairman of the Board, National Bank of Commerce
Trust & Savings, Lincoln, Nebr.
1977
Chairman of the Board, Farmers National Bank of Central
City, Nebr.
1977

ROY G. DINSDALE

APPOINTED

BY BOARD

BANK:

OF

EDWARD F. OWEN
DURWARD B. VARNER1

GOVERNORS:
President, Paxton & Vierling Steel Company, Omaha, Nebr. 1976
President, University of Nebraska, Lincoln, Nebr.
1977

DISTRICT 11—FEDERAL RESERVE BANK OF DALLAS
CLASS

A:

GENE D. ADAMS
FRANK JUNELL
ROBERT H. STEWART, III




President, The First National Bank of Seymour, Tex.
1976
Chairman of the Board, The Central National Bank of San
Angelo, Tex.
1977
Chairman of the Board, First International Bancshares,
Dallas, Tex.
1978

Directory of Federal Reserve Banks and Branches

181

DISTRICT 11—FEDERAL RESERVE BANK OF DALLAS—Continued

Term
expires
Dec. 31

CLASS B.President, Foley's Inc., Houston, Tex.
Owner, Gerald D. Hines Interests, Houston, Tex.
Cattle and Investments, Amarillo, Tex.

STEWART ORTON
GERALD D. HINES
THOMAS W. HERRICK
CLASS

1976
1977
1978

C:

JOHN LAWRENCE1

Chairman of the Board, Dresser Industries, Inc., Dallas,
Tex.
1976
Chairman of the Board and Chief Executive Officer, Frost
Bros., Inc., San Antonio, Tex.
1977
Chairman of the Board, Beaird-Poulan Division, Emerson
Electric Co., Shreveport, La.
1978

IRVING A. MATHEWS
CHARLES T. BEAIRD2

EL PASO BRANCH
APPOINTED

BY FEDERAL RESERVE

C. J. KELLY
WAYNE STEWART
REED H. CHITTIM
ARNOLD B. PEINADO, JR.

APPOINTED

BY BOARD

OF

HERBERT M. SCHWARTZ
GAGE HOLLAND
J. LUTHER DAVIS1

BANK:

Chairman of the Board, The First National Bank of Midland,
Tex.
President, First National Bank in Alamogordo, N. Mex.
President, First National Bank of Lea Countv, Hobbs, N.
Mex.
,
President, Peinado, Peinado & Navarro, Consulting Structural Engineers, El Paso, Tex.

1976
1977
1978
1978

GOVERNORS:
President, Popular Dry Goods Co., Inc., El Paso, Tex.
1976
Owner, Gage Holland Ranch, Alpine, Tex.
1977
Chairman of the Board, President, Tucson Gas & Electric
Company, Tucson, Ariz.
1978

HOUSTON BRANCH
APPOINTED

BY FEDERAL RESERVE

PAGE K. STUBBLEFIELD
SETH W. DORBANDT
BOOKMAN PETERS
NAT S. ROGERS
APPOINTED

BY BOARD

THOMAS J. BARLOW1
GENE M. WOODFIN
ALVIN I. THOMAS




OF

BANK:

President, Victoria Bank & Trust Company, Victoria, Tex. 1976
Chairman and President, First National Bank in Conroe, Tex. 1977
President, The City National Bank of Bryan, Tex.
1978
President, First City National Bank of Houston, Tex.
1978
GOVERNORS:
President and Chief Executive Officer, Anderson Clayton &
Co., Houston, Tex.
1976
President, Chairman, and Chief Executive Officer, Marathon
Manufacturing Company, Houston, Tex.
1977
President, Prairie View A & M University, Prairie View,
Tex.
1978

182

Federal Reserve Bulletin • February 1976

DISTRICT 11—FEDERAL RESERVE BANK OF DALLAS—Continued
SAN ANTONIO BRANCH
APPOINTED

BY FEDERAL RESERVE

BEN R. Low
LEON STONE
RICHARD W. CALVERT
JOHN H. HOLCOMB

APPOINTED

BY BOARD

BANK:

Term
expires
Dec. 31

President, First National Bank of Kerrville, Tex.
President, The Austin National Bank, Austin, Tex.
President, National Bank of Commerce of San Antonio, Tex.
Owner-Manager, Progreso Haciendas Company, Holcomb
Farms, Progreso, Tex.
OF

1976
1977
1978
1978

GOVERNORS:

MARGARET SCARBROUGH

WILSON1
MARSHALL BOYKIN, III
PETE J. MORALES, JR.

Chairman of the Board and Chief Executive Officer, Scarbroughs Stores, Austin, Tex.
1976
Senior Partner, Wood, Boykin & Wolter, Lawyers, Corpus
Christi, Tex.
1977
President and General Manager, Morales Feed Lots, Inc.,
Devine, Tex.
1978

DISTRICT 12—FEDERAL RESERVE BANK OF SAN FRANCISCO
CLASS

A:

A. W . CLAUSEN
CARL E . SCHROEDER
R O N A L D S. H A N S O N

President, Chief Executive Officer, Bank of America NT &
SA, San Francisco, Calif.
1976
Chairman and Chief Executive Officer, The First National
Bank of Orange County, Orange, Calif.
1977
President, The First National Bank of Logan, Utah
1978

CLASS B.CLAIR L . PECK
CHARLES R . DAHL
M A L C O L M T.

CLASS

STAMPER

Chairman of the Board, C. L. Peck Contractor, Los Angeles,
Calif.
1976
President and Chief Executive Officer, Crown Zellerbach
Corporation, San Francisco, Calif.
1977
President, The Boeing Company, Seattle, Wash.
1978

C:

O . MEREDITH WILSON 1
CORNELL C . MAIER
JOSEPH F. ALIBRANDI 2




Retired President, Center for Advanced Study in the Behavioral Sciences, Stanford, Calif.
1976
President and Chief Executive Officer, Kaiser Aluminum &
Chemical Corporation, Oakland, Calif.
1977
President and Chief Executive Officer, Whittaker Corp., Los
Angeles, Calif.
1978

Directory

of Federal

Reserve

Banks

and Branches

183

DISTRICT 12—FEDERAL RESERVE BANK OF SAN FRANCISCO—
Continued
Term

LOS ANGELES BRANCH

expires
APPOINTED

BY FEDERAL RESERVE

LINUS E. SOUTHWICK
ROBERT A. BARLEY
RAYBURN S. DEZEMBER

BY BOARD

Dec.

President, Valley National Bank, Glendale, Calif.
President, United California Bank, Los Angeles, Calif.
Chairman and President, American National Bank, Bakersfield, Calif.
President, National Bank of Whittier, Calif.

W. GORDON FERGUSON
APPOINTED

BANK

OF

1976
1976
1977
1978

GOVERNORS:

ARMANDO M. RODRIGUEZ
JOSEPH R. VAUGHAN1
HARVEY A. PROCTOR

President, East Los Angeles College, Los Angeles, Calif. 1976
President, Knudsen Corporation, Los Angeles, Calif.
1977
Chairman of the Board, Southern California Gas Company,
Los Angeles, Calif.
1978

PORTLAND BRANCH

APPOINTED

B Y FEDERAL

RESER VE

FRANK L. SERVOSS
JAMES H . STANARD

BANK:

President, Crater National B a n k , M e d f o r d , Oreg.
1976
Executive Vice President, First National Bank of McMinnville, Oreg.
1976
General M a n a g e r , The Confederated Tribes of the W a r m
Springs Reservation, W a r m Springs, Oreg.
1977

KEN SMITH

APPOINTED

BY BOARD

OF

JOHN R . HOWARD
LORAN L. STEWART 1

GOVERNORS:
President, Lewis and Clark College, Portland, Oreg.
President, Bohemia Inc., E u g e n e , Oreg.

1976
1977

SALT LAKE CITY BRANCH
APPOINTED

BY FEDERAL RESERVE

ROY W. SIMMONS
DAVID P. GARDNER
MARY S. JENSEN

APPOINTED

BY BOARD

SAM BENNION1
THEODORE C. JACOBSEN




BANK:

President, Zions First National Bank, Salt Lake City, Utah 1976
President, University of Utah, Salt Lake City, Utah
1976
Chairman of the Board, Idaho State Bank, Glenns Ferry,
Idaho
1977
OF

31

GOVERNORS:
President, V-l Oil Company, Idaho Falls, Idaho
1976
Partner, Jacobsen Construction Company, Inc., Salt Lake
City, Utah
1977

184

Federal Reserve Bulletin • February 1976

DISTRICT 12—FEDERAL RESERVE BANK OF SAN FRANCISCO—
Continued
SEATTLE BRANCH
APPOINTED

BY FEDERAL

RESERVE

HARRY S. GOODFELLOW
RUFUS C. SMITH
Vacancy
APPOINTED

BY BOARD

LLOYD E. COONEY 1
THOMAS T. HIRAI




OF

BANK:

Term
expires
Dec. 31

Chairman of the Board and Chief Executive Officer, Old
National Bank of Washington, Spokane, Wash.
1976
Chairman of the Board, The First National Bank of Enumclaw, Wash.
1977
1976
GOVERNORS:
President and General Manager, KIRO-Radio & Television,
Seattle, Wash.
1976
President and Director, Quality Growers Company, Woodinville, Wash.
1977

185

Announcements
APPOINTMENT OF
MR. GARDNER AS A MEMBER
OF THE BOARD OF GOVERNORS
President Ford on January 15, 1976, announced
his intention to appoint Stephen S. Gardner as a
member of the Board of Governors of the Federal
Reserve System. Mr. Gardner's appointment was
subsequently confirmed by the Senate on January
29, and his oath of office was administered on
February 13.
The text of the White House announcement
follows:
The President has announced his intention
to nominate Stephen S. Gardner, of Wawa,
Pennsylvania, to be a member of the Board
of Governors of the Federal Reserve System
for a term of fourteen years beginning February 1, 1976. He will succeed George W.
Mitchell whose term expires January 31,
1976. Upon confirmation by the Senate, the
President will designate Mr. Gardner as Vice
Chairman of the Board of Governors.
Mr. Gardner was born on December 26,
1921, in Wakefield, Massachusetts. He was
educated at Boston University, Harvard
College, and received his M.B.A. from
Harvard Graduate School of Business Administration in 1949.
In 1949, Mr. Gardner joined the Girard
Trust Bank in Philadelphia, Pennsylvania,
and became President in 1966, serving until
1971, when he became Chairman of the
Board. He was named to his current position
as Deputy Secretary of the Treasury on July
31, 1974.
Mr. Gardner is married to the former Connie
Andonegui and they have five children. They
reside in the District of Columbia.

CHANGE IN DISCOUNT RATE
The Board of Governors has announced the approval of action by directors of the Federal Reserve
Bank of St. Louis reducing the discount rate of
that Bank from 6 per cent to 5V2 per cent, effective
January 23. At that time the rate was 5V2 per cent
at all Federal Reserve Banks.




POLICY STATEMENT ON
FOREIGN JOINT VENTURES
The Board of Governors on February 12, 1976,
issued a statement of policy concerning the participation in foreign joint ventures by U.S. banking
organizations. The policy is designed to deal with
possible future risks entailed in becoming a shareholder in a foreign joint venture.
The policy statement is similar to that issued
for comment by the Board on December 23. Some
changes were made in the statement in light of
public comments that were received since that
time.
As a matter of policy, the Board will take the
following factors, among others, into account in
considering whether to approve an application to
invest in a foreign joint venture:
1. The possibility that the venture might need
additional financial support.
2. The possibility that the additional support
might be significantly larger than the original equity investment in the joint venture.
The policy statement is not intended to prohibit
or discourage joint ventures abroad. Its objective
is to clarify for all parties the probable dimensions
of the risks involved in such ventures.

REGULATION Z:
Amendments and Interpretations
The Board of Governors of the Federal Reserve
System announced on January 27, 1976, regulatory amendments to carry out recent legislative
revisions in the Real Estate Settlement Procedures
Act (RESPA) and the Truth in Lending Act.
The amendments to Regulation Z will:
1. Eliminate the need to make Truth in Lending
disclosures together with RESPA disclosures.
2. Eliminate the requirement for disclosure of
closing costs in certain real estate transactions not
covered by RESPA. This rescinds a regulatory
amendment announced by the Board on October
24, 1975, and scheduled to have gone into effect
on January 31.

186

Federal Reserve Bulletin • February 1976

The Board on February 3, 1976, issued two
interpretations to the Fair Credit Billing section
of its Regulation Z.
The interpretations relate to:
1. The timing of the semiannual statement
creditors must send to their customers explaining
the procedures for correcting billing errors. This
interpretation also permits a creditor to omit any
portion of the semiannual notice that does not
apply to a particular credit plan.
2. Modification of semiannual statements sent
in States that have their own substantially similar
fair credit billing acts.

CHANGES IN BOARD STAFF
The Board has announced a reorganization of its
staff management functions, effective January 20,
1976.
The Office of Managing Director for Research
and Economic Policy has been eliminated and an
Office of Staff Director for Monetary Policy
created. Stephen H. Axilrod, Adviser to the
Board, has been appointed the Staff Director for
Monetary Policy and Arthur L. Broida, Assistant
to the Board, Deputy Staff Director.
The Office of Managing Director for Operations
has been redesignated the Office of Staff Director
for Management and John M. Denkler, Managing
Director for Operations, named Staff Director.
Robert J. Lawrence, Deputy Managing Director
for Operations, has been designated Deputy Staff
Director for Management.
The Board has also announced the temporary
appointment of Joseph P. Garbarini, Vice President, Federal Reserve Bank of St. Louis, as an
Assistant Secretary of the Board, replacing Robert
E. Smith III, who has returned to the Federal
Reserve Bank of Dallas.
Mr. Garbarini, who holds a B.S. from Christian
Brothers College and has attended the School of




Banking of the South at Louisiana State University, joined the staff of the Federal Reserve Bank
of St. Louis, Memphis Branch, in 1960 and was
appointed Vice President of the Bank in 1971. He
also served as Secretary of the Conference of
Presidents of the Federal Reserve System in 1971.

STATISTICAL RELEASE:
Automobile Credit
The Board of Governors has consolidated three
statistical releases on automobile credit and terms
into a single release, issued monthly. In addition
to data on volume of credit extended for new and
used cars, average notes, and number financed,
the new release shows finance company data on
maturities, loan-to-value ratios, and finance rates
and figures for maturities on new-car loans at
commercial banks.
To be placed on the mailing list for this release,
entitled "G. 26, Automobile Credit," direct requests to Publications Services, Division of Administrative Services, Board of Governors of the
Federal Reserve System, Washington, D.C.
20551. Historical data are available on request
from the Mortgage and Consumer Finance Section, Division of Research and Statistics, at the
Board.

ADMISSION OF STATE BANKS
TO MEMBERSHIP IN SYSTEM
The following banks were admitted to membership
in the Federal Reserve System during the period
January 16, 1976, through February 15, 1976:
Missouri
Kansas City
Montana
Helena

Baltimore Bank and
Trust Company
Northwestern Union Trust Co.

187

Industrial Production
Released for publication

February 13

Industrial production increased by an estimated 0.7
per cent in January following revised increases of
0.6 per cent and 0.9 per cent in November and
December, respectively. The January increase reflected continued gains in all major components
of the index. At 119.3 per cent of the 1967
average, the total has risen 8.5 per cent since the
April 1975 low.
Among consumer goods, durables apparently
increased further, as production of home goods
expanded and auto assemblies were only slightly
reduced. Auto production is currently scheduled
to increase to an 8.0 million rate in February, from
a 7.6 million unit annual rate in January. Output
of nondurable consumer goods, which was revised
upward in December, continued to expand in January. Business equipment production is estimated
to have increased 0.7 per cent in January, following a December rise of 0.8 per cent.
Production of durable goods materials apparently increased almost 1 per cent in January
from a December level, which was revised downward substantially. Gains in output of nondurable
goods materials continued in January but at a
somewhat slower rate than earlier.
Production of energy materials changed little in

January. Total electricity output and use for industrial purposes increased further in December
by 2.4 per cent with use for non-nuclear purposes
rising 1 per cent, as shown by new data introduced
in the January 1976 BULLETIN.
Seasonally adjusted, ratio scale, 1 9 6 7 = 1 0 0

1970

1972

1974

1976

1970

1972

1974

1976

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

Seasonally adjusted
1967 = 100
Per cent changes from—
Industrial production

1975

1976

Oct.

Nov.

Dec. p

Jan. e

Month
ago

Year
ago

Q3 to
Q4

116.7

117.4

118.5

119.3

.7

4.9

3.0

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

116.9
117.0
127.0
118.3
130.5
115.7
117.0
112.5

117.8
117.8
128.6
119.0
132.5
116.4
117.8
112.5

119.9
119.8
130.8
120.5
135.1
117.3
120.4
113.2

120.6
120.6
132.1
121.5
136.1
118.1
121.1
114.0

.6
.7
1.0
.8
.7
.7
.6
.7

4.5
5.0
10.0
16.8
7.8
-3.4
3.0
-1.5

1.9
1.7
2.2
2.1
2.5
1.5
2.6
2.6

Materials

116.5

116.5

116.4

117.3

.8

6.2

4.9

Total

p

Preliminary.




e

Estimated.

A 1

Financial and Business Statistics

CONTENTS
INSIDE BACK COVER
Guide to Tabular Presentation
Statistical Releases: Reference
U.S. STATISTICS
A2

A9
A10
All
A12
A13
A14
A18
A23
A24
A25
A25

Member bank reserves, Reserve Bank
credit, and related items
Federal funds—Money market banks
Reserve Bank interest rates
Reserve requirements
Maximum interest rates; margin
requirements
Open market account
Federal Reserve Banks
Bank debits
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

A26
A29
A29
A30

Interest rates
Security markets
Stock market credit
Savings institutions

A5
A6
Al
A8




A32
A34
A37
A38
A41
A42
A45

Federal finance
U.S. Government securities
Federally sponsored credit agencies
Security issues
Business finance
Real estate credit
Consumer credit

A48
A50
A50
A52

Industrial production
Business activity
Construction
Labor force, employment, and
unemployment

A53
A53
A54
A56

Consumer prices
Wholesale prices
National product and income
Flow of funds
INTERNATIONAL STATISTICS

A58
A59
A59
A60
A61
A74
A75
A75

U.S. balance of payments
Foreign trade
U.S. reserve assets
Gold reserves of central banks and
governments
International capital transactions
of the United States
Open market rates
Central bank rates
Foreign exchange rates

A82 INDEX TO STATISTICAL TABLES

A 2

B A N K RESERVES A N D R E L A T E D ITEMS • F E B R U A R Y 1976
M E M B E R B A N K RESERVES, F E D E R A L RESERVE B A N K CREDIT, A N D R E L A T E D ITEMS
(In millions of dollars)
Factors supplying reserve funds
Reserve Bank credit outstanding
Period or date

U.S. Govt, securities 1

Total

Bought
outright 2

Held
under
repurchase
agreement

Loans

Float3

Other
F.R.
assets 4

Totals

Gold
stock

Special
Drawing
Rights
certificate

Treasury
currency
outstanding

Averages of daily figures
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

9
78

1969—Dc c
1970—De c
1971—De c
1972—De c
1973—De c
1974—De c

57,500
61,688
69,158
71,094
79,701
86,679

57,295
61,310
68,868
70,790
78,833
85,202

205
378
290
304
868
1,477

1975—Ja n
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec

86,039
84,744
84,847
87,080
91,918
88,912
86,829
89,191
90,476
90,934
92,108

85,369
83,843
84,398
86,117
89,355
87,618
87,882
86,348
87,531
89,547
89,560
91,225

670
901
449
963
2,563
1,294
284
481
1,660
929
1,374
883

1976—Jan.?5

92,998

91,524

88,166

5
381
142
94
1,086

83
170
652
1,117
1,665

2,612
2,404
24,744
21,606
29,060

17,518
22,759
20,047
22,879
17,954

3,235
3,570
3,905
3.479
3,414
2,734

2,204
1,032
982
1,138
1,079
3,129

64,100
66,708
74,255
76,851
85,642
93,967

10,367
11,105
10,132
10,410
11,567
11,630

3,391
3,419
3,142
3,237
3,039
3,098
3,100
2,953
3,060
3,521
3,481
3,534

93,002
91 ,168
90,819
93,214
97,845
95,119
94,144
92,395
95,277
96,931
97,817
99,651

11,647

396
191
61
127

2,456
2,079
1 ,994
2,061
1,877
2,046
1 ,911
1 ,691
1,823
1,945
2.480
3,029

1,474

79

2,709

3,505

321
107
1,049
1,298
703
390
147

106

110
60
271
261
211

2,956
3,239
4,322
4,629
5,396
400
400
400
400
400

6,841
7,145
7,611
8,293
8,668
9,179

11,620
11,604
11,599
11,599
11,599
11,599

400
400
400
400
429
500
500
500
500
500
500
500

9,235
9,284
9,362
9,410
9,464
9,536
9,616
9,721
r
9,797
9,877
10,010
10,094

100,197

11,599

500

10,177

11,626
11,620
11,620
11,620
11,620

Week ending—
1975—Nov.

5
12
19
26

92,251
87,911
90,116
92,992

89,755
87,449
89,465
90,992

2,496
462
651
2,000

67
39
58
73

2,213
2,265
2,867
2,295

3,714
3,752
3,474
3,116

99,245
94,725
97,311
99,393

11,599
11,599
11,599
11,599

500
500
500
500

9,909
9,955
10,049
10,061

Dec.

3

91,961
89,531
90,625
94,134
94,468

90,887
89,009
90,625
92,580
92,978

1,074
522

66
28
44
219
253

2,661
2,347
2,626
3,144
4,634

3,279
3,486
3,557
3,356
3,466

98,850
96,170
97,585
101,720
103,807

11,599
11,599
11,599
11,599
11,599

500
500
500
500
500

10,102
10,081
10,087
10,099

94,151
90,940
91,705
94,040

92,462
90,940
91,070
91,480

1,689
635
2,560

71
44
152
58

3,474
2,854
2,411
2,411

3,501
3,414
3,373
3,622

102,243
97,994
98,391
101,098

11,599
11,599
11,599
11,599

500
500
500
500

10,119
10,139
10,157
10,246

1975—No v

91,209
94,124

91,209
92,789

1,335

45
211

3,070
3,688

3,252
3,312

98,303
102,461

11,599
11,599

500
500

10,138
10,218

Dec

96,588

91,850

4,738

64

1,624

3,676

103,182

11,599

500

10,250

85,676
90,976
91,967
96,041

85,022
87,737
90,372
90,956

654
3,239
1,595
5,085

52
70
91
184

2,639
3,430
3,086
2,247

3,723
3,803
3,082
3,221

93,066
99,159
99,163

102,816

11,599
11,599
11,599
11,599

500
500
500
500

9,916
10,033
10,056
10,068

90,231
88,758
89,885
94,459
94,124

89,597
88,758
89,885
92,777
92,789

634

66
31
66
1,263
211

2,811

3,273
3,635
4,856
3,688

3,370
4,302
3,631
3,366
3,312

97,416
97,088
97,943
104,914
102,461

11,599
11,599
11,599
11,599
11,599

500
500
500
500
500

10,077
10,087
10,087
10,099
10,218

91,872
91,507
92,068
98,334

90,810
91,507
92,068
91,833

41
47
841
138

3,710
3,402
2,887
2,539

3,443
3,362
3,395
3,668

100,020
99,053
99,927
105,845

11,599
11,599
11,599
11,599

500
500
500
500

10,138
10,142
10,243
10,250

10

17
24
31
1976—Jan.

7*>
14 p
21 v
28*

1,554

1,490

10,118

End of month

1976—Jan. *
Wednesday
1975—Nov.

5
12
19
26
Dec. 3
10
17
24
31
1976—Jan.
7p
14 P
21 P
28 f

1,682
1,335
1,062
'6,5ii'

1

Includes Federal agency issues held under repurchase agreements
beginning Dec. 1, 1966, and Federal agency issues bought outright beginning Sept. 29, 1971.
2
Includes, beginning 1969, securities loaned—fully guaranteed by U.S.
Govt, securities pledged with F.R. Banks, and excludes (if any), securities
sold and scheduled to be bought back under matched sale-purchase
transactions.
3
Beginning 1960 reflects a minor change in concept; see Feb. 1961
BULLETIN, p , 1 6 4 .
4

Beginning Apr. 16, 1969, "Other F.R. assets" and " O t h e r F . R .




liabilities and capital" are shown separately; formerly, they were netted
together and reported as "Other F.R. accounts."
5
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 p. A-10. See also note 3.
6
Includes certain deposits of domestic nonmember banks and foreign
owned banking institutions held with member banks and redeposited in
Notes continued on opposite page.

F E B R U A R Y 1976 • B A N K R E S E R V E S A N D R E L A T E D I T E M S

A 3

MEMBER B A N K RESERVES, FEDERAL RESERVE B A N K CREDIT, A N D R E L A T E D I T E M S - C o n t i n u e d
(In millions of dollars)

Factors absorbing reserve funds

Deposits, other
than member bank
reserves
with f . R . Banks

Currency
in
circulation

Treasury
cash
holdings

7,609
10,985
28,452
27,806
33,019

2,402
2,189
2,269
1,290
408

616
592
625
615
522

53,591
57,013
61,060
66,060
71,646
78,951

656
427
453
350
323
220

77,780
76,979
77,692
78,377
79JQ2
80,607
81,758
r 81,822

Treasury

Foreign

Other 3,6

Other
F.R.
accounts 4

Other
F.R.
liabilities
and
capital*

Member bank
reserves
Period or date
With
F.R.
Banks

Currency
and
coin 7

Total 8

Averages of daily figures
11,473
12,812
16,027
17,391
16,688
2,192
2.265
2,287
2,362
2,942
3.266

23,071
23,925
25,653
24,830
28,352
29,767

884
711
958
718
746
989
711
660
798
632
649
906

3,264
3,358
3,076
3,137
3,231
3,191
3,135
3,096
3,169
3,208
3,276
3,247

916

3,225

739
1,531
1,247
920
250

353
495

1,194
849
1.926
1,449
1,892
1,741

146
145
290
272
406
357

458
735
728
631
717
874

2,087
2,374
1 ,887
3,532
8,115
3,353
2,207

82,215
83,740
85,810

221
236
277
309
326
355
358
368
r
362
387
415
452

3,415
4,940
4,333
3,955

336
317
363
307
262
272
269
274
308
271
297
259

84,625

496

5,903

287

81,507

818

248
292
493
739
1,029

2,595

11,473
12,812
16,027
17,391
19,283

1939—Dec.
1941—Dec.
1945—Dec.
1950—Dec.
1960—Dec.

4,960
5,340
5,676
6,095
6,635
7,174

28,031
29,265
31,329
31,353
35,068
36,941

1969—Dec.
1970—Dec.
1971—Dec.
1972—Dec.
1973—Dec.
1974—Dec.

29,713
28,503
27,948
28,264
27,576
28,007
27,442
27,183
27,215
27,254
27,215
27,215

7,779
7,062
6,831
6,870
6,916
6,969
7,213
7,299
7,431
7,313
7,356
7,773

37,492
35,565
34,779
35,134
34,492
34,976
34,655
34,482
34,646
34,567
34,571
934,989

1975—Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

27,020

8,442

935,588

1976—Jan.*
Week ending—

27,362

S2,404
83,457
84,021
84,145

412
427
410
432

6,755
2,868
3,321
5,010

288
273
315
277

652
583
566
635

3,382
3,109
3,202
3,385

7,524
7,693
7,117
7,014

34,886
33,754
34,741
34,684

1975—Nov.

27,624
27,670

84,742
85,253
85,686
86,125
86,569

460
462
449
445
448

4,124
1 ,865
1 ,943
5,533
6,777

305
243
244
254
293

877
921
979
866
891

3,297
3,044
3,158
3 ,355
"""
3 ,477

27,245
26.594
27,312
27,345
27,569

7,572
7,825
7,827
7,491
8,036

34,817
34,419
35,139
34,836
935,611

Dec.

86,011
85,140
84,288
83,652

478
496
519
450

5,939
3,414
4,040
8,385

278
338
304
230

1 ,185
903
922
772

3,059
3,167
3,219
3,359

27,511
26,773
27,354
26.595

7,910
8,910
8,735
8,349

935,531
935,813
936,220
935,075

1976—Jan.

84,545
86,547

463
483

4,919
7,285

347
353

888
1 ,090

3,403
2,968

25,971
26,052

7,572
8,036

33,543
934,094

83,294

450

10,075

294

651

3,459

27,308

8,121

935,560

83,001
84,147
84,228
84,630

426
421
424
442

3,066
2,577
4,175
4,327

355
222
244
324

692
642
566
978

3,063
3,115
3,325
3,455

24,478
30,167
28,356
30,827

7,524
7,693
7,117
7,014

32,002
37,860
35,473
37,841

85,146
85,773
86,033
86,608
86,547

478
460
438
434
483

2,289
1,032
4,007
6,491
7,285

229
238
226
253
353

796
,846
897
925
,090

3,011
3,093
3,214
3,471
2,968

27,643
26,832
25,314
28,930
26,052

7,572
7,825
7,827
7,491
8,036

35,215
34,657
33,141
36,421
934,094

85,712
84,950
84,130
83,673

487
502
518
450

2,246
4,217
4,682
10,360

244
235
248
209

909
969
943
627

3,068
3,166
3,254
3,427

29,590
27,254
28,494
29,448

7,910
8,910
8,735
8,349

937,610
936,294
937,360
937,928

26,061

5
12
19
26
3

10

17
24
31

lv

14p
21 p
28?

End of month
1975—Nov.
Dec.
1976—Jan. p
Wednesday

full with F.R. Banks in connection with voluntary participation by nonmember institutions in the F.R. System's program of credit restraint.
As of Dec. 12, 1974, the amount of voluntary nonmember and foreignagency and branch deposits at F.R. Banks associated with marginal reserves are no longer reported. Deposits voluntarily held by agencies and
branches of foreign banks operating in the United States as reserves and
Euro-dollar liabilities are reported.
7 Part allowed as reserves Dec. 1, 1959—Nov. 23, 1960; a]) allowed
thereafter. Beginning Jan. 1963, figures are estimated except weekly
averages. Beginning Sept. 12, 1968, amount is based on close-of-business
figures for reserve period 2 weeks previous to report date.




5
12
19
26
Dec. 3

1975—Nov.

10

17
24
31
1976—Jan.

7*

14 p

21 P
28 p

8 Beginning week ended Nov. 15, 1972, includes $450 million of reserve
deficiencies on which F.R. Banks are allowed to waive penalties for transition period associated with bank adaptation to Regulation J as amended
effective Nov. 9, 1972. For 1973, allowable deficiencies included are (beginning with first statement week of quarter): Q l , $279 million; Q2, $172
million; Q3, $112 million; Q4, $84 million. For 1974, Q l , $67 million,
Q2, $58 million. Transition period ended after 1974, Q2.
9
Beginning with week ending Nov. 19, 1975, adjusted to include
waivers of penalties for reserve deficiencies in accordance with Regulation D change effective Nov. 19, 1975.
For other notes see opposite page.

B A N K R E S E R V E S A N D R E L A T E D I T E M S • F E B R U A R Y 1976

A 4

RESERVES AND

BORROWINGS OF MEMBER

BANKS

(In millions of dollars)
Large banks 2

All member banks

All other banks
Period

Reserves

New York City

Borrowings

Total1
held

Required

Excess1

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

1960—Dec
1965—Dec

19,283
22,719

18,527
22,267

756
452

87
454

29
41

1967—De c
1968—De c
1969—De c
1970—De c
1971—De c

25,260
27,221
28,031
29,265
31,329

24,915
26,766
27,774
28,993
31,164

345
455
257
272
165

238
765
1,086
321
107

18

1972—De c
1973—De c
1974—De c

31,353
35,068
36,941

31,134
34,806
36,602

219
262
339

1,049
1,298
703

41
32

1975—Ja n
Feb
Mar
Apr
May.
June
July
Aug
Sept
Oct
Nov

37,492
35,565
34,779
35,134
34,492
34,976
34,655
34,482
34,646
34,567
34,571
34,989

37,556
35,333
34,513
35,014
34,493
34,428
34,687
34,265
34,447
34,411
34,281
34,727

-64
232
266

390
147

13

548
-32
217
199
156
290
262

35,588

35,361

227

79

37,588
37,312
38,207
38,265
37,240

37,011
37,175
38,249
38,079
37,066

577
137
-42

174

561
311
609
594
142

4..
11..
18..
25..

34,511
33,707
34,937
34,706

34,177
33,743
34,603
34,615

334
-36
334
91

84
38
77
188

10

11

-76
80
19

2..
9..
16..
23..
30..

35,481
34,612
34,864
34,898
34,999

35,085
34,479
34,791
34,695
34,718

396
133
73
203

871
222
202
382
253

15
13
15
19
23

57
18
-72
107
82

6..
13..
20..

34,553
34,163
34,629
34,470

34,354
34,147
34,418
34,174

180

211

296

179
204
272

29
35
37
40

13
-46
-4
127

3 .,

17..

34,228
34,104
34,285
34,584

301
-6
267
33

222
385
327
395

50
53
60
64

28
-45
79

24..

34,529
34,098
34,552
34,617

1.
8.,
15.
22.,
29.,

35,444
34,260
34,654
34,576
34,715

34,982
34,284
34,358
34,577
34,437

462
-24
296
-1
278

581
239
172
232
94

73
74
65
63
60

149
-83
-9
-8

Nov.

5.
12.
19.
26.

34,886
33,754
34,741
34,684

34,082
33,791
34,567
34,500

804
-37
174
184

67
39
58
73

41
26
26
26

355
-119
34
3

Dec.

3.
10.
17.
24.
31 .

34,817
34,419
35,139
34,836
335,611

34,504
34,276
34,906
34,625
35,197

313
143
233

66
28
44
219
253

21
14
13
12
13

119
-56

16

7
57

140
140

7*>

335,531
335,813
336,220
335,075

35,232
35,627
35,986
34,902

299

Dec
1976—Jan.P. . ..
Week ending—
1975—Jan.
1 .
8.
15 .
22.,
29.,
June

July

Aug.

27..

Sept.

Oct.

1976—Jan.

10.,

14 P
P
P

21

28

120

186

281

199
16

211
414

186

234
173

Total

106

110

60
271
261

211
396
191
61

127

71
44
152
58

Seasonal

10

7
7
9
11
17
38

61

65
28
13

18

12
12
10

9
11

10

9
9

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): Q l , $279
million; Q2, $172 million; Q3, $112 million; Q4, $84 million. Beginning
1974, Q l , $67 million; Q2, $58 million. Transition period ended after
second quarter, 1974. For weeks for which figures are preliminary, figures
by class of bank do not add to the total because adjusted data by class are
not available.
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



Borrowings

Borrowings

Other
Excess

Borrowings

Excess

Borrowings

540
295
14
8

1,188
1,303
418
232

1
96
50

671
804
1,011
663

3
4
46
29

19
111

4
15

100
67

20
228

623
330

40
92

100
56
34
25

40
230
259
25
35

15
18
7
1

50
90
6
42
-35

105
270
479
264
22

267
250
177
189
174

80
180
321
28
42

-20
-23
132

301
74
80

13
43
5

55
28

-42
28
39

429
761
323

-160
133
163

264
435
282

-119
31
53
32

156
37
22
25
24
90
54
14
68
31
7
63

-16

16

20

10

-23

14

-91
41
56
-4
-89
217
-118
98
23
3
42
89

87
29
28
38
13
114
62
51
141
32
5
26

162
143
137
115
137
142
132
132
132
134
164
127

131
71
46
33
23
65
122
145
185
128
49
38

17

-116

13

147

40

69

223
-26
-89
45
-24

218
107
108
130
33

301
135
176
111
140

260
168
115
136
109

2

23
25
28
53

-28

142
- 2 2
-18

17
42
50
64

55
-130
29
71
18

83
36
317
328

111

-144
- 2 2

-147
9

18

10

-21

47
-24
5
27
-23
34

2
23
1
2

-18

61

-27
1
1
-13

49
97

19
-32
12
-4

137
-55
69
5

38

160
127
173
71

189

39

117
-20
6
-13
67

468
90
16
57
91

183
155
137
100
117

214
132
54
124
162

19
-7

31
-45
73
48

14
18
77
87

145
129
123
128

166
108
127
170

24
-31
19
-2

81
-66
17
28

58
34
174
115

168
136
152
73

164
136
142
201

2

147
-52
94
-35
33

304
51
12
22
7

164
127
178
60
128

277
188
121
113
87

240
-71
7
55

4
11
3

191
159
134
106

67
35
47
54

61
37
6
75
129

6
1
11
42
57

151
136
128
134
208

44
27
33
37
56

68
-284
60
-152

14
2
18
15

221
111
136
69

57
42
29
33

61

78
151

47

- 6 6

102

17

-13

-41

24

City of Chicago

39
97

- 2 0

2
9
15
10

- 2 2

- 1 6

33

-18

15
18

-6
-1
20
-18

26

-12

-5
20

-16

1
17
38

77

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).
3
Beginning with week ending Nov. 19, 1975, adjusted to include waivers
of penalties for reserve deficiencies in accordance with Regulation D
change effective Nov. 19, 1975.
NOTE.—Monthly and weekly data are averages of daily figures within
the month or week, respectively.
Borrowings at F.R. Banks: Based on closing figures.
Effective Apr. 19, 1973, the Board's Regulation A, which governs lending by F.R. Banks, was revised to assist smaller member banks to meet
the seasonal borrowing needs of their communities.

F E B R U A R Y 1976 • M O N E Y M A R K E T

BANKS

A 5

BASIC RESERVE POSITION, AND FEDERAL FUNDS AND RELATED TRANSACTIONS
(In millions of dollars, except as noted)

Net surplus, or
deficit ( - )

Less—
Reporting banks
and
week ending—

Total—46
1975—Dec.

1976—Jan.

Fxcess
reserves 1

Borrowings
at F.R.
Banks

Net
interbank
Federal
funds
trans.

Related transactions with
U.S. Govt, securities dealers

Interbank Federal funds transactions

Basic reserve position

Net transactions

Gross transactions

Per cent
of
avg.
Amount
required
reserves

Purchases

Sales

Total
two-way
trans- 2
actions

Purchases
of net
buying
banks

Sales
of net
selling
banks

Loans
to
dealers 3

Borrowings
from
dealers 4

Net
loans

banks
3
10
17
24
31

102
200
137
168
r
171

7
14
21
28

120
15

-1

85

16
168
174
6
105
10

13,121
15,748
14,329
12,217
11,054

-13,035
-15,548
-14,192
-12,218
'"-11,057

83.4
100.3
88.7
78.5
69.2

18,808
20,128
18,973
17,708
17,683

5,687
4,380
4,644
5,491
6,629

4,964
4,161
4,205
4,681
5,306

13,844
15,967
14,768
13,027
12,378

723
218
439
810
1,324

3,507
3,918
3,509
3,601
3,610

381
300
400
495
665

3,126
3,619
3,109
3,105
2,946

11,696
16,144
14,039
12,112

-11,583
-16,130
-14,145
-12,038

71 .3
97.4
84.7
76.5

19,175
22,350
19,657
18,363

7,478
6,206
5,617
6,250

5,623
4,877
4,943
5,290

13,552
17,473
14,714
13,072

1 ,856
1,329
675
960

3,293
3,099
2,989
2,298

574
376
322
476

2,720
2,723
2,667

-3,409
-3,948
-3,179
-2,039
-2,034

54.6
63.5
49.5
32.9
31.4

4,451
4,854
4,278
3,443
3,563

952
876
986
1,462
1,625

815
876
828
1,190
1,123

3,637
3,978
3,450
2,253
2,440

137

1,700
1,587
1,840
1,912
1,891

133
119
147
185
372

1,567
1,468
1,693
1,726
1,519

-3,106
-5,523
-3,433
-2,625

45.9
79.8
49.6
41 .3

4,775
6,277
4,261
3,914

1 ,645
704
879
1 ,282

1,141
583
695
997

3,634
5,694
3,566
2,917

1,536
1,655
1,384
1 ,072

103
78
87

180

1,356
1,552
1,307
985

9,621 - 9 , 6 2 5
11,771 - 1 1 , 6 0 0
11,037 - 1 1 , 0 1 3
10,236 -r 1 0 , 1 7 9
9,116 —9,023

102.5
125.0
114.9
108.7
r
95.1

14,357
15,274
14,696
14,266
14,121

4,736
3,504
3,659
4,029
5,005

4,149
3,286
3,378
3,491
4,183

10,207
11,989
11,318
10,775
9,938

586
218

281
538
822

1,806
2,331
1,670
1,689
1,719

248
180
253
310
293

1,558
2,151
1,416
1,379
1,427

8,566 - 8 , 4 7 8
10,571 - 1 0 , 6 0 7
10,657 - 1 0 , 7 1 2
9,480 - 9 , 4 1 3

89.5
110.0
109.6
100.5

14,399
16,072
15,396
14,449

5,833
5,502
4,739
4,969

4,481
4,294
4,248
4,294

9,918
11,778
11 ,148
10,155

1,352
1,208
491
675

1 ,757
1 ,444
1,605
1,226

394
274
245
389

1 ,363
1 ,170
1,360
837

741
740
672

715
732
667
811
913

4,225
4,885
4,624
4,381
4,182

664
674
660
635
594

664
674
660
635
594

566
589
571
449

566
589
571
449

1,822

8 in New York City
1975—Dec.

1976—Jan.

17
24
31

106
29
113
83
44

140
140

3,500
3,978
3,292
1,981
1,938

7
14
21
28

25
51
-23
18

28
10

3,130
5,574
3,382
2,632

3

10

16

158
272
502
504
121

184
285

38 outside
New York City
1975—Dec.

1976—Jan.

3
10
17
24
31
7
14

21

28

-4
171
24
85

mi

28
34

94
-36
22
67

77

6

5 in City of Chicago
1975—Dec.

1976—Jan.

3
10
17
24
31

-7
33
-1
-5
28

7
14
21

-3
-8
-6
27

28

77

4,199
4,877
4,619
4,381
4,162

-4,205
-4,844
-4,620
-4,386
-4,133

257.9
299.9
268.4
274.9
246.8

4,940
5,618
5,291
5,192
5,094

4,428
5,433
5,065
4,455

-4,431
-5,441
-5,149
-4,428

267.6
321 .0
297.5
276.4

5,273
6,326
6,109
5,692

845
893
1 ,044
1,238

828
863
1 ,025
1,213

4,445
5,464
5,084
4,479

5,422
6,893
6,418
5,856
4,954

-5,420
-6,756
-6,393
-5,793
r
—4,889

69.8
88.2
81.3
74.6
62.5

9,417
9,657
9,404
9,074
9,026

3,994
2,763
2.987
3,218
4,073

3,434
2,553
2,711
2,680
3,270

5,983
7,104
6,693
6,394
5,756

560
210
276
538
802

1,142
1,658

4,138
5,137
5,592
5,026

-4,046
-5,165
-5,564
-4,985

51 .8
65.0
69.1
64.2

9,126
9,746
9,287
8,757

4.988
4,609
3,695
3,731

3,653
3,432
3,223
3,081

5,473
6,315
6,064
5,676

1,335
1 ,177
472
651

811

932

33 others
1975—Dec.

1976—Jan.

3
10
17
24
31
7
14
21
28

3
137
25
90
r
99
98
-28
28
40

28
34
6

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




1,054
1,125

248
180
253
310
293

894
,477
756
744
832

1,191
855
1,033
777

394
274
245
389

797
582
789
388

1,010

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 1976

A 6

CURRENT RATES
(Per cent per annum)
Loans to member banks—
Under Sec. 10(b) 2

Loans to all others under
last par. Sec. 13 4

Under Sees. 13 and 13ai
Federal Reserve
Bank

Regular rate

Special rate

3

Rate on
1/31/76

Effective
date

Previous
rate

Rate on
1/31/76

Effective
date

Previous
rate

Rate on
1/31/76

Effective
date3

Previous
rate

Rate on
1/31/76

Effective
date

Previous
rate

51/2
51/2
5%
51/2
51/2

1/19/76
1/19/76
1/19/76
1/19/76
1/19/76
1/19/76
1/19/76
1/23/76
1/19/76
1/19/76
1/19/V6
1/19/76

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

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

1/19/76
1/19/76
1/19/76
1/19/76
1/19/76
1/19/76
1/19/76
1/23/76
1/19/76
1/19/76
1/19/76
1/19/76

61/2

61/2
61/2
6V4
61/2
61/2
61/2
6%
6 V4
61/2
61/2
6%
61/2

1/19/76
1/19/76
1/19/76
1/19/76
1/19/76
1/19/76
1/19/76
1/23/76
1/19/76
1/19/76
1/19/76
1/19/76

7
7
7
7
7
7
7
7
7
7
7
7

8%
81/2

1/19/76
1/19/76
1/19/76
1/19/76
1/19/76
1/19/76
1/19/76
1/23/76
1/19/76
1/19/76
1/19/76
1/19/76

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

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

5Vi
5V4
5%
5%
5%
51/2
51/2

1
Discounts of eligible paper and advances secured by such paper or by
U.S. Govt, obligations or any other obligations eligible for F.R. Bank
purchase.
2
Advances secured to the satisfaction of the F.R. Bank. Advances
secured by mortgages on 1- to 4-family residential property are made at
the Section 1 3 rate.

61/2
61/2
61/2

61/2
6 %

61/2
6%
61/2
61/2
61/2
61/2

81/2

8%
81/2
81/2

81/2
81/2
81/2
81/2
81/2
8%

3
Applicable to special advances described
Regulation A.
4
Advances to individuals, partnerships, or
member banks secured by direct obligations
guaranteed as to principal and interest by,
agency thereof.

in Section 201.2(e)(2) of
corporations other than
of, or obligations fully
the U.S. Govt, or any

SUMMARY OF EARLIER CHANGES
(Per cent per annum)

Effective
date

Range
or level)—
All F . R .
Banks

F.R.
Bank
of
N.Y.

Effective
date

21/2

21/2

1964—Nov. 24.
30.

1956—Apr. 13
20
Aug. 24
31

21/2-3

23/4
23/4
3
3

1965—Dec.

1957—Aug.

3

In effect Dec. 31, 1955

9
23
Nov. 15
Dec. 2

1958—Jan.
Mar.
Apr.
May
Aug.
Sept.
Oct.
Nov.
1959—Mar.

23/4-3
234-3

3
-31/2
31/2
3 -31/2
3

22
24
7
13
21
18
9
15
12
23
24
7

23/4-3
23^-3
214-3
214-234
214
13/4-21/4
13/4
134-2

6

2Vi-3
3
3 -31/2
31/2
31/2-4
4

16

May 29
June 12
Sept. 11
18
1960—June 3
10
14
Aug. 12
Sept. 9
1963—July 17
26

13/4-2

2
2

-21/2
21/2

31/2-4
31/2-4
31/2
3 -31/2
3
3

-3i/ 2
31/2

3
31/2
3
3
3
23/4
21/4
21/4
21/4

134
134
13/4
2
2
2
2i/i
3
3
3%
31/2
4
4
4
3 Vi
31/2
3
3
31/2
3%

F.R.
Bank
of
N.Y.

3%-4
4

4
4

6.
13.

4

-4I/ 2
41/2

41/2
41/2

7.
14.
Nov. 20.
27.

4

-41/2

1967—Apr.

1968—Mar. 15.
22.

Apr. 19.
26.
Aug. 16.
30.
Dec. 18.
20.
1969—Apr.

4.

4
4

1970—Nov. 11,
13,
16,

Dec.

1,
4.

11,

1971—Jan.

8,
15.
19.
22,

29,
Feb. 13
19
July 16
23

-4i/ 2

41/2

41/2-5
5

5

-51/2
51/2

51/4-51/2
51/4
5i/4-5i/2
51/2

51/2-6
6

8.

NOTE.—Rates under Sees. 13 and 13a (as described in table and notes
above). F o r data before 1956, see Banking and Monetary Statistics, 1943,
p p . 439-42, and Supplement to Section 12, p. 31.




Range
(or level)—
All F.R.
Banks

53/4-6

5
-51/2
51/2
51/2-534
53/4
534-6
18'.'.'.'.'.'.'.'.'.'.'. 6
6 -61fc
June 11
15
6*4
July
2
7
Aug. 14
7 -71/2
23
71/2

5
51/2
51/2
51/2
534
6
6
61/2
61/2
7
71/2
71/2

1974—Apr. 25
30
Dec. 9
16

7V4-8
8
734-8
73/4

8
8
734
73/4

1975—Jan.

714-734
71/4-734
71/4
634-714
63/4
614-634
61/4
6 -61/4
6

734
71/4
71/4
634
634
61/4
6
6

5V4-6

5 %

6

51/4
5y4
51/4

5

5
5
5

43/4-5
5

5
5

434-5
434

5
434
43/4
41/2
41/2

6
6

5^-51/2
51/4
-51/4
-514

434-5
434
41/2-43/4
41/2-434
41/2

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

41/2
41/2
41/2
5
51/2
51/2
51/2
51/4
51/2
51/2

534
534
53/4
51/2
51/2

5
5

1971—Nov. 11
19
Dec. 13
17
24

Range
(or level)All F . R .
Banks

4
4

5V4-6
5Va
51/2-53/4
5^-53/4
51/2

Effective
date

4!4

6
10
24
Feb. 5
7
M a r . 10
14
May 16
23

1976—Jan.

19
23

In effect, Jan. 31, 1976

5

61/4

2>%

51/i

51/2

51/2

F E B R U A R Y 1976 • R E S E R V E R E Q U I R E M E N T S

A 7

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 i

2

Time 3
(all classes of banks)

Reserve city

Other
Savings

0-5
In effect
Jan. 1, 1963.
1966—July 14,21.
Sept. 8 , 1 5 .
1967—Mar. 2 . . . .
Mar. 1 6 . . .
1968—Jan. 11,18.
1969—Apr. 17. . .
1970—Oct. 1

Over 5

0-5

17

12

Over 5

0-5

Over 5

16^/2
31/2
16%
17

12i/2

171/2

3%
3

3

12%
13

Beginning Nov. 9, 1972
2 4

Time 3

Net d e m a n d ,

Other time
Effective
date
0-2

2-10

10-100

0-5, maturing in—

100400

Over
400

180
days to
4 years

30-179
days
1972—Nov. 9
Nov. 16

8

1973—July 19
1974

12

IOI/2

121/2

6 I6I/2
13
13%

Dec. 12

1975—Feb. 13
Oct. 30
1976

10

17%

73

10

12

13

71/2

10

12

13

180
days to
4 years

4 years
or more

75

73

16%

1

3

8 1

3

8

2%

3

8

2%

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 trie 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 piinus 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) SincQ 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 and against foreign branch loans to U.S. residents.
Since June 21, 1973, loans aggregating $100,000 or less to any U.S. resident
have been excluded from computations, as have total loans of a bank to
U.S. residents if not exceeding $1 million. Regulation D imposes a similar
reserve requirement on borrowings from foreign banks by domestic offices
of a member bank. The reserve percentage applicable to each of these
classifications is 4 per cent. The requirement was 10 per cent originally,
was increased to 20 per cent on Jan. 7, 1971, was reduced to 8 per cent
effective June 21, 1973, and was reduced to the current 4 per cent effective
May 22, 1975. Initially certain base amounts were exempted in the computation of the requirements, but effective Mar. 14, 1974, the last of these
reserve-free bases were eliminated. For details, see Regulations D and M.
3 Effective Jan. 5, 1967, time deposits such as Christmas and vacation
club accounts became subject to same requirements as savings deposits.
Beginning Nov. 10, 1975, profitmaking businesses may maintain savings
deposits of $150,000 or less at member banks. For details of 1975 action,
see Regulations D and Q, and also BULLETINS for Oct., p. 708, and Nov.,
p. 769.
Notes
2(b) and 2(c) above are also relevant to time deposits.
4
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

3

6

16%

Present legal limits:




30-179
days

18

Jan. 8

In effect Jan. 31, 1976

4 years
or more

17%

m

Over 5 5 , maturing in—

Savings

8 1

3
82%

8 1

6

8

81

2%

Minimum

Maximum

10
7
3

22
14
10

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
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
A marginal reserve requirement was in effect between June 21, 1973,
and Dec. 11, 1974, against increases in the aggregate of the following types
of obligations: (a) outstanding time deposits of $100,000 or more, (b)
outstanding funds obtained by the bank through issuance by a bank's
affiliate of obligations subject to existing reserve requirements on time
deposits, and (c) beginning July 12, 1973, funds from sales of finance bills.
The requirement applied to balances above a specified base, but was not
applicable to banks having obligations of these types aggregating less
than $10 million. For details, including percentages and maturity classifications, see "Announcements" in BULLETINS for May, July, Sept., and
Dec. 1973 and Sept. and Nov. 1974.
6
The 16% 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.
7
See columns above for earliest effective date of this rate.
8
The average of reserves on savings and other time deposits must be
at least 3 per cent, the minimum specified by law. For details, see Regulation D .
NOTE.—Required reserves must be held in the form of deposits with
F.R. Banks or vault cash.

A 8

MAXIMUM INTEREST RATES; MARGIN REQUIREMENTS • FEBRUARY 1976
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
July 20,
1966

Type and size
of deposit
Savings deposits
Other time deposits: 12
Multiple maturity:
30-89 days
90 days to 1 year.
1 - 2 years
2 years or m o r e . .
Single-maturity:
Less than $100,000:
30 days to 1 year.
1 - 2 years
2 years or m o r e . .
$100,000 or more:
30-59 days
60-89 days
90-179 days
180 days to 1 year
1 year or m o r e . . .
1

Sept. 26,
1966

Apr. 19,
1968

Effective date
Jan. 21,
1970

Type and size
of deposit

41/2

Savings deposits
Other time deposits (multipleand single-maturity): 1 , 2
Less than $100,000:
30-89 days
90 days to 1 year
1-2 V2 years
2Vi years or more
Minimum denomination
of $1,000:4
4-6 years
6 years or more
Governmental units
$100,000 or more

4

41/2

5
5Vi
5V4

5

5

51/2
5Vi

3

5VI

(3)
(3 )
(3 )
(3)
( )

5V4
61/4

5V2

6

6V4

5Vi

For exceptions with respect to certain foreign time deposits, see

BULLETIN f o r F e b . 1 9 6 8 , p . 1 6 7 .
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:
6 V4 per
6 Y2 per
61/4 per
7l per
l / i per

30-59 days
60-89 days
90-179 days
180 days to 1 year
1 year or more

cent 1
cent f
cent]
cent [
cent]

June 24, 1970
May 16, 1 9 7 3

Rates on multiple-maturity time deposits in denominations of $100,000
or more were suspended July 16, 1973, when the distinction between
single- and multiple-maturing deposits was eliminated.
4 Effective Dec. 4, 1975, the $1,000 minimum denomination does not
apply to time deposits representing funds contributed to an Individual
Retirement Account established pursuant to 26 U.S.C. (I.R.C. 1954) §408.
5 Between July 1 and Oct. 31, 1973, there was no ceiling for certificates
maturing in 4 years or more with minimum denominations of $1,000.
The amount of such certificates that a bank could issue was limited to

July 1,
1973

Nov. 1,
1973

5

5

6

6

5^2

6V2

Nov. 27,
1974

5

6V2

5

( )
6
( 3)
( )

1V4
6

(3)
( )

For credit extended under Regulations T (brokers and dealers),
U (banks), and G (others than brokers, dealers, or banks)
On convertible bonds

On margin stocks

On short sales
(T)

Ending
date
U

T
1937—Nov.
1945—Feb.
July
1946—Jan.
1947—Feb.
1949—Mar.
1951—Jan.
1953—Feb.
1955—Jan.
Apr.
1958—Jan.
Aug.
Oct.
1960—July
1962—July
1963—Nov.

5
5
21
1
30
17
20
4
23
16
5
16
28
10
6

1968—Mar.
June
1970—May
1971—Dec.
1972—Nov.
Effective Jan.

11
8
6
6
24
3, 1974

1945—Feb.
July
1946—Jan.
1947—Jan.
1949—Mar.
1951—Jan.
1953—Feb.
1955—Jan.
Apr.
1958—Jan.
Aug.
Oct.
I960—July
1962—July
1963—Nov.
1968—Mar.
June
1970—May
1971—Dec.
1972—Nov.
1974—Jan.

4
20
31
29
16
19
3
22
15
4
15
27
9
5
10
7
5
22
2

G

T

U

G
50
50
75
100
75
50
75
50
60
70
50
70
90
70
50
70

40
50
75
100
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.




3

( )

51/2
6

6I/2

1V4
m3
73/4
()

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 F D I C , have been the same as
those in effect for member banks.
For previous changes, see earlier issues of the BULLETIN.

(Per cent of market value)

Beginning
date

1V4
m

5

5 per cent of its total time and savings deposits. Sales in excess of that
amount were subjectl to the 6*4 per cent ceiling that applies to time deposits maturing in 2 /i years or more.
Effective Nov. 1, 1973, a ceiling rate of 7 ^ per cent was imposed on
certificates maturing in 4 years or more with minimum denominations
of $1,000. There is no limiation on the amount of these certificates that
banks may issue.
6
Prior to Nov. 27, 1974, no distinction was made between the time
deposits of governmental units and of other holders, insofar as Regulation Q ceilings on rates payable were concerned. Effective Nov. 27, 1974,
governmental units were permitted to hold savings deposits and could
receive interest rates on time deposits with denominations under $100,000
irrespective of maturity, as high as the maximum rate permitted on such
deposits at any Federally insured depositary institution.

MARGIN REQUIREMENTS

Period

5*/2
6
6y2

Dec. 23,
1974

FEBRUARY 1976 • OPEN MARKET ACCOUNT

A 9

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)

Period
Gross
purchases

11,074
8,896
8,522
15,517
11,660
11,562

1970
1971
1972
1973
1974
1975
1974—Dec.. . .

1

Jan
Feb
Mar....
Apr.. ..
May. ..
June...
July
Aug
Sept....
Nov... .
Dec

Gross Redemptions
sales

5,214
3,642
6,467
4,880
5,830
5,599

99
1,036
125
1,396
450
3,886

-3,483
-6,462
2,933
-140
-1.314
-3.553

973

426

6

85

341
357
760
2,119
903
421

945
460
156
318
354
161
1,505
282

600
900
487
506
407
612
800
400
200
400
919
200

14

312
2,118
1,263
983
1,984

766
652

12,362
12,515
10,142
18,121
13,537
20,892

Gross
sales
5,214
3,642
6,467
4,880
5,830
5,599

1974—Dec..

1,254

426

1975—Jan..
Feb..
Mar.
Apr..
May.
June.
July.
Aug..
Sept..
Oct..
Nov.
Dec..

746
673
3,362
3,189
953
1,217

945
460
156
318
354
161
1,505
282

2,574
2,940
1,263
1,693
2,281

766
652

1,579
148
50
20

43
31

Redemptions

Gross
sales

12,177
2,160
16,205
2,019
23,319
2,862
45,780
4,592
64,229
4,682
9,559 151,205

600
900
1,788
506
407
450
800
2,389
200
400
919
200

20

-2,836
194

249

26
74
212
164

6,635
-529

180

-1

2,437
,494

-3,131
691

488
150
562

249
933
539
500
434
1,510

1,299
-278
-48
-135
-28

267
118

Gross
sales

Gross
purchases

4,988
8,076
-312
8,610
1,984
7,434

485
1,197
865
3,087
1,616
360

8,855

7,962

11,470

11,895

-498

10,367
6,634
16,763
12,216
3,044
13,026
15,139
13,730
19,835
16,113
15,207
10,058

9,260
11,267
5,011
12,774
19,489
15,219
5,977
8,146
16,664
13,699
14,342
8,464

8,748
10,305
6,928
8,551
21,952
16,810
6,146

844
-258
332
6,42.8
-2,224
-873
-2,866
663
4,451
186
-2,047
2,797

6,881

14,857
13,838
17,275
7,247

298

64
137

- i ,444

47
124

300

155
78

300

244
71

100

Outright

33,859
43,519
32,228
74,795
70,947
139,538

9,237
7,167
15,933
12,375
2,996
12,914
15,532
14,234
19,931
15,886
14,442
10,559

150

109

Federal agency obligations
Net
change
in U.S.
Govt.
securities

-102
150
250
87
205
848

-3,801

33,859
12,177
16,205 44,741
31,103
23,319
74,755
45,780
62,801 71,333
152,132 140,311

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 f r o m the Federal Reserve, as follows: June 1971, 955; Sept. 1972,
38; Aug. 1973, 351; Sept. 1973, 836; Nov. 1974, 131; Mar. 1975, 1,560;
Aug. 1975, 1,989.




53

-126

Gross
purchases

Gross Exch. or
sales maturity
shifts

Gross
purchases

61
113
450
274

123
305
129
361
485

purchases

Gross Exch. or
sales maturity
shifts

93
311
167
129
196
1,070

126

Repurchase
agreements
(U.S. Govt,
securities)

Gross
purchases

-1,845
685
-2,094
895
1,675
-4,697

5,430
4,672
-1,405
-2,028
-697
4,275

-2,144
278
48
-265
28

2,002

Gross Exch. or
sales maturity
shifts

Gross
purchases

848
1,338
789
579
797
2,863

Matched
sale-purchase
transactions
(U.S. Govt,
securities)

Period
Gross
purchases

Exch.,
Gross maturity
sales shifts, or
redemptions

2,160
1,064
2,545
3,405
4,550
6,431

Total outright 1

197 0
197 1
197 2
197 3
197 4
197 5

Gross
purchases

Over 10 years

5-10 years

1-5 years

376
210

353
394
284

Sales or
redemptions

370
239
322
246

Repurchase
agreements,
net

101
-88
29
469
-392
142

14
81
2
2
97
6
2
40
1
1

-409
246
-347
883
-567
-255
-61
90
203
-124
-169
118

Bankers
acceptances,
net
Net
change 3
Outright
-6
22
-9
-2
511
163

1
, ON L/i1K> < —©. 1 — to-fc.*t*
— NO —1 U> KJVi
Lh toui

Others within 1 year 2

Treasury bills 1

188

Repurchase
agreements

181
-145
-36
420
-35

4,982
8,866
272
9,227
6,149
8,539

201

393

-136
39
-323
496
-375
-121

387
309
-136
7,829
-3,207
-1,317
-2,926
1 ,222
5,155
445
-2,537
3,315

156
94
50
-300
385

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. Details may not add to
totals because of rounding.

A 10

F E D E R A L R E S E R V E B A N K S • F E B R U A R Y 1976
CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS
(In millions of dollars)
Wednesday

End of month

1976

Item
Jan. 21

Jan. 28

Jan. 14

Jan. 7

1975

1976

Dec. 31

Jan. 31

1975
Dec. 31

Assets
Gold certificate account
Special Drawing Rights certificate account.
Cash
Loans:
Member bank borrowings
Other
Acceptances:
Bought outright
Held under repurchase agreements.
Federal agency obligations:
Bought outright
Held under repurchase agreements.

11,599
500

11 ,599
500

11 ,599
500

11 .599
500

394

379

386

138

841

47

741
415

11,599
500

11,599
500

375

347

405

347

41

211

64

211

742
212

741
385

747
483

741
385

6,312
305

6,072

6,312
393

6,312

6,072

6,072
177

6,072

35,690

35,925

35,925

35,228

37,207

44,236
5,595

44,236
5,595

43,989
5,521

43,989
5,521

43,989
5,521

44,236
5,595

43,989
5,521

185,521

185,756

185,435

184,738
885

186,717
1,217

185,538
4,433

186,717
1,217

U.S. Govt, securities:
Bought outright:
Bills
Certificates—Special.
Other..
Notes
Bonds
Total bought outright
Held under repurchase agreements.

11 .599
500

6,118

118

118

Total U.S. Govt, securities.

91,639

85,756

85,435

85,623

87,934

89,971

87,934

Total loans and securities
Cash items in process of c o l l e c t i o n . . .
Bank premises
Operating equipment
Other assets:
Denominated in foreign currencies.
All other

99,638
P7,488
325
13

93,645
P8,526
324
14

92,289
P9,127
322
13

92,867
?>9,570
321
13

95,461
9,183
319
13

97,882
p5 ,872
325
13

95,461
9,183
319
13

331
2,999

2,976

100
2,927

60
3,049

80
2,900

333
3,005

80
2,900

P123,287

18,044

p\ 17,263

18,354

120,402

p119,934

120,402

Total assets.

81

Liabilities
F . R . notes
Deposits:
Member bank reserves
U.S. Treasury—General account.
Foreign
Other:
All o t h e r 2

74,267

74,784

75,697

76,437

77,159

73,899

77,159

29,448
10,360
209

v28,494
4,682
248

p27,254
4,217
235

P29,590
2,246
244

26,052
7,285
353

p27,308
10,075
294

26,052
7,285
353

943

969

909

1,090

p40,644

p34,367

p32,675

P32,989

34,780

P38,328

34,780

4,949

5,639
1,059

5,725
1,075

5,860
1,098

5,495

4,248
1 ,098

5,495
1,110

l15,849

15,172

934
928
444

932
928
335

932
928
231

^123,287

Pl18,044

44,145

44,659

p

Total deposits.
Deferred availability cash items
Other liabilities and accrued dividends.

1,121

Total liabilities

»120,98l

p

P\16,384

1,110

1,090

118,544

118,544

Capital accounts
Capital paid in
Surplus
Other capital accounts.
Total liabilities and capital accounts.
Contingent liability on acceptances purchased for
foreign correspondents
Marketable U.S. Govt, securities held in custody for
foreign and international accounts

P\17,263

42,852

929
928
113

929
929

935
928
498

929
929

p118,354

120,402

p119,934

120,402

42,096

41,871

43,124

41,871

Federal Reserve Notes—Federal Reserve Agents' Accounts
F.R. notes outstanding (issued to Bank)
Collateral held against notes outstanding:
Gold certificate account
Special Drawing Rights certificate account.
Acceptances
U.S. Govt, securities

81,328

81,557

81,778

81,871

81,877

81,228

81,877

74,538

11,596
302

11,596
302

11,596
302

11,596
302

11,596
302

11,596
302

11,596
302

71,710

71,710

71,710

71,710

71,510

71,710

71,510

3,207
93
425
72,492

Total collateral.

83,608

83,608

83,608

83,608

83,408

83,608

83,408

76,217

1 See note 2 on p. A-2.
See note 6 on p. A-3.

2




F E B R U A R Y 1976 • F E D E R A L R E S E R V E B A N K S ; B A N K

DEBITS

A 11

MATURITY DISTRIBUTION OF LOANS AND U.S. GOVERNMENT SECURITIES
HELD BY FEDERAL RESERVE BANKS
(In millions of dollars)
Wednesday

End of m o n t h

1976

Item

16 90 days

U.S. Govt, securities—Total
16 90 days
91 days to 1 year

5-10 years
Over 10 years

1976

1975

Jan. 28

Jan. 21

Jan.14

Jan. 7

Dec. 31

Jan. 31

Dec. 31

Jan. 31

138
133
5

841
841

47
38
9

41
34
7

229
222
7

64
48
16

229
222
7

101
91
10

1,156
493
463
200

736
64
447
225

735
58
451
226

954
282
425
247

1 ,126
470
409
247

1 ,230
558
467
205

1 ,126
470
409
247

966
457
397
112

91,639
8,761
20,655
21 ,159
30,383
6,526
4,155

85.756
3.841
19.659
21,192
30,383
6.526
4.155

85,435
3,971
19,390
21,293
30,273
6,426
4,082

85,623
5,624
18,271
20,947
30,273
6,426
4,082

6,072
39
183
851
3,149
I ,254
596

6,249
215
184
851
3,149
1 ,254
596

6,705
412
183
870
3,302
1 ,300
638

Within 15 days 1
16 90 days

1975

6.312
19
183
870
3,302
1 ,300
638

87,934
6,205
19,245
21,703
30,273
6,426
4,082
6,190
134
184
873
3,149
1 ,254
596

89,971
7,552
20,302
21,053
30,383
6,526
4,155
6,617
324
183
870
3,302
1 ,300
638

87,934
6,205
19,245
21,703
30,273
6,426
4,082

81,344
6,324
18,535
21 ,182
23,440
9,673
2,190

6,190
134
184
873
3,149
I ,254
596

4,790
153
260
573
2,313
990
501

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)

Turnover of demand deposits

Period
Leading SMSA's
Total
233
SMSA's

N.Y.

6 others 2

Total 232
SMSA's
(excl.
N.Y.)

Leading SMSA's
226
other
SMSA's

Total
233
SMSA's

N.Y.

6 others 2

Total 232
SMSA's
(excl.
N.Y.)

226
other
SMSA's

1974—Dec

22,192.4

9,931.8

5,152.7

12,260.6

7,107.9

128.0

312.8

131.8

86.6

69.3

1975—Jan.'"r
Feb.
Mar.r
A p r . rr
May
June r
July
Aug
Sept
Oct.r
Nov.r
Dec

21,853.9
22,950.1
22,180.1
22,705.1
22,738.6
22,503.5
22,827.9
23,269.4
23,181.9
24,137.1
24,067.7
23,614.1

10,157.8
10,918.0
10,241.1
10,810.3
10,826.1
10,612.2
10,709.5
10,628.8
10,585.0
11,801.5
11,529.9
10,970.9

4,868.4
4,992.8
4,899.9
4,770.6
4,852.6
4,755.2
4,841.1
5,125.1
5,153.0
4,921.3
4,937.3
4,948.4

11,696.0
12,032.1
11,939.0
11,895.4
11,912.5
11,891.3
12,118.3
12,640.5
12,596.9
12,335.6
12,537.8
12,643.2

6,827.7
7,039.3
7,039.0
7,124.9
7,059.9
7,134.6
7,277.2
7,515.4
7,443.8
7,414.3
7,600.5
7,694.8

127.1
133.1
124.8
122.5
128.9
124.4
126.2
130.4
128.8
134.0
134.0
131.2

321.8
343.2
320.4
330.3
333.9
328.6
331.0
335.0
330.7
364.0
360.8
351.8

125.4
126.2
117.0
114.3
120.1
115.7
115.7
124.4
123.8
118.7
119.5
118.7

83.3
85.5
81.9
81.8
82.8
81.6
81.6
86.2
85.1
83.5
84.9
85.0

67.3
69.6
67.8
68.8
68.2
66.7
68.2
71.2
70.0
69.8
71.5
71.8

1
2

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




NOTE.—Total SMSA's include some cities and counties not designated
as SMSA's.
F o r back data see pp. 634-35 of the July 1972 BULLETIN.

A 12

M O N E Y S T O C K • F E B R U A R Y 1976
MEASURES OF THE MONEY STOCK
(In billions of dollars)
Seasonally adjusted

N o t seasonally adjusted

Period
Mi

Mi

M4

Mz

Mi

Ms

Mz

M2

Mi

Ms

Composition of measures is described in the NOTE below.
255.3
270.5

1972-- D e c
1973-- D e c

525.3
571 .4

844.9
919.5

888.5
982.9

568.9
634.9

262.7
278.3

530.3
576.5

847.4
921 .8

574.5
640.5

891 .6
985.8

1974-- D e c

283.1

612.4

981.6

702.2

1,071.4

291 .3

617.5

983.8

708.0

1,074.3

1975-—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec

281.9
281 .9
284.1
284.9
287.6
291 .0
291 .9
293.2
293.6
293.4
295.7
295.0

614.5
618.2
623.0
626.7
633.7
642.4
647.5
650.6
652.9
655.7
661 .6
663.3

986.7
994.0
1,003.7
1,012.7
1,025.3
1,040.2
1,051.6
1,060.6
1,068.1
1,075.6
1,086.0
1,091.9

707.3
710.2
712.8
715.1
718.8
726.5
729.6
729.3
731 .9
736.6
743.4
746.2

1,079.5
1,086.1
1,093.5
1,101.1
1,110.4
1,124.3
1,133.7
1,139.3
1,147.1
1,156.5
1,167.7
1,174.7

287.7
278.5
281 .4
286.5
282.9
290.3
292.1
290.0
291 .7
292.4
297.6
303.4

619.5
615.2
622.7
631.1
631 .9
643.5
647.8
647.2
649.5
653.0
659.7
668.4

990.3
990.3
1,005.0
1,020.0
1,025.7
1,044.5
1,055.0
1,057.1
1,062.8
1 ,070.3
1,080.1
1,093.6

711 .4
704.4
710.8
716.9
716.0
725.8
729.1
728.4
732.2
736.8
742.5
751 .8

1,082.2
1,079.6
1,093.1
1,105.8
1,109.8
1,126.8
1,136.3
1 ,138.3
1,145.5
1,154.0
1,162.9
1,177.1

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.
M%: Averages of daily figures for Mi plus savings deposits, time deposits open account, and time certificates other than negotiable C D ' s of
$100,000 of large weekly reporting banks.

Mz: Mi plus mutual savings bank deposits, savings and loan shares, a n d
credit union shares (nonbank thrift).
M i : M i plus large negotiable C D ' s .
Ms: Mz plus large negotiable C D ' s .
For a description of the latest revisions in Mi, Mi, Mz, Mi and Mb, see
"Revision of Money Stock Measures" on pp. 82-87 of the Feb. 1976
BULLETIN.

Latest monthly and weekly figures are available from the Board's, H.6
release. Back data are available f r o m the Banking Section, Division of
Research and Statistics.

COMPONENTS OF MONEY STOCK MEASURES AND RELATED ITEMS
(In billions of dollars)
Seasonally adjusted

N o t seasonally adjusted

Commercial banks

Commercial banks

Time and savings
deposits
Currency

Nonbank
thrift
institutions 2

Demand
deposits

CD's1

Other

Total

43.6
63.5

270.0
300.9

313.6
364.4

319.6
348.0

Demand deposits
Currency
Total

Member

Domestic
nonmember

57.9
62.7

204.8
215.7

152.1
156.5

Time and savings
deposits

Nonbank
thrift
institutions 2

U.S.
Govt,
deposits 3

CD's1

Other

Total

51 .4
56.3

44.2
64.0

267.6
298.2

311 .8
362.2

317.0
345.3

7.4
6.3

1972—Dec.
1973—Dec.

56.9
61 .5

198.4
209.0

1974—Dec.

67.8

215.3

89.8

329.3

419.1

369.2

69.0

222.2

159.7

58.5

90.5

326.3

416.7

366.3

4.9

1975—Jan..
Feb.
Mar.
Apr.
May
June
July.
Aug.
Sept.
Oct..
Nov.
Dec.

68.2
68.7
69.4
69.5
70.2
71.0
71.3
71 .9
72.0
72.6
73.4
73.7

213.7
213.2
214.7
215.4
217.4
220.0
220.6
221 .3
221 .6
220.8
222.3
221.3

92.7
92.1
89.8
88.4
85.1
84.1
82.1
78.8
79.1
80.9
81.8
82.9

332.6
336.2
339.0
341 .8
346.1
351 .4
355.5
357.4
359.2
362.3
365.9
368.3

425.4
428.3
428.7
430.1
431 .2
435.5
437.6
436.2
438.3
443.2
447.6
451.2

372.2
375.9
380.7
386.0
391.6
397.8
404.1
410.0
415.2
420.0
424.4
428.6

67.8
67.8
68.8
69.1
70.0
71.2
71.9
72.1
71 .9
72.5
73.9
75.0

219.9
210.6
212.6
217.4
212.9
219.1
220.3
217.8
219.9
219.9
223.6
228.4

158.2
151 .8
153.4
156.9
153.4
157.2
157.9
155.8
157.0
156.6
158.9
162.1

58.2
55.8
56.0
57.4
56.6
58.9
59.4
59.0
59.7
60.3
61 .5
62.9

91.9
89.2
88.1
85.8
84.1
82.3
81.3
81.1
82.7
83.7
82.9
83.5

331 .9
336.7
341 .4
344.6
349.1
353.2
355.7
357.3
357.7
360.7
362.1
365.0

423.8
425.9
429.4
430.4
433.2
435.5
436.9
438.4
440.5
444.4
444.9
448.4

370.8
375.2
383.3
388.9
393.8
401 .0
407.2
409.9
413.3
417.2
420.4
425.2

4.0
3.3
3.8
4.0
4.1
4.2
3.4
2.7
3.9
3.4
3.5
4.2

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, for savings capital at savings and loan associations,
and for credit union shares.




3 At all commercial banks.
See also NOTE above,

F E B R U A R Y 1976 • B A N K R E S E R V E S ; B A N K C R E D I T

A 13

AGGREGATE RESERVES AND MEMBER BANK DEPOSITS
(In billions of dollars)
Member bank reserves, S.A. 1

Deposits subject to reserve requirements,3
S.A.

Nonbo rrowed

Period
Total

Required

Available 2

Total member
bank deposits
plus nondeposit
items 4

N.S.A.
Demand

Total

Demand

Time
and
savings

Private

U.S.
Govt.

Total

Time
and
savings

Private

U.S.
Govt.

S.A.

N.S.A.

1972—Dec
1973—Dec
1974—Dec

31.52
35.15
36.87

30.47
33.85
36.14

31.24
34.85
36.61

29.05
32.86
34.51

402.3
442.8
486.9

241.7
279.7
322.9

154.4
158.1
160.6

6.2
5.0
3.4

406.8
447.5
491.8

240.7
278.5
321.7

160.1
164.0
166.6

6.1
5.0
3.5

406.6
449.4
495.3

411.2
454.0
500.1

1975—Jan
Feb
Mar
Apr
May
June....
July....
Aug.. . .
Sept... .
Oct
Nov... .
Dec

37.08
35.64
34.98
35.13
34.69
34.78
34.94
34.58
34.68
34.61
34.66
35.01

36.68
35.50
34.87
35.02
34.62
34.56
34.64
34.37
34.29
34.42
34.60
34.88

36.93
35.45
34.78
34.97
34.54
34.58
34.75
34.38
34.49
34.40
34.37
34.75

34.39
33.62
32.99
33.02
32.75
32.86
32.81
32.68
32.71
32.64
32.45
32.55

490.1
490.9
493.4
494.1
493.7
499.5
498.3
496.3
498.4
500.1
505.9
506.0

328.2
329.1
329.2
329.7
328.6
330.5
330.8
328.4
329.8
333.1
336.1
338.7

159.3
159.9
161.7
161.7
162.6
165.8
164.9
165.1
165.6
164.0
165.9
164.4

2.6
1.9
2.5
2.7
2.5
3.2
2.6
2.8
3.0
3.0
3.9
3.0

495.1
487.0
491.6
495.4
491.8
497.5
497.2
494.8
499.1
500.4
503.6
510.9

327.2
326.5
328.9
329.1
329.8
330.2
330.2
330.5
332.2
334.7
334.3
337.2

165.0
158.0
159.8
163.2
159.0
164.2
164.5
162.3
164.0
163.3
166.7
170.7

2.9
2.4
2.8
3.1
3.0
3.1
2.5
2.0
2.9
2.5
2.6
3.1

497.7
497.4
499.9
500.8
501.2
506.5
505.1
503.3
505.5
508.0
514.1
514.4

502.6
493.5
498.1
502.2
499.2
504.5
504.0
501.8
506.1
508.3
511.9
519.3

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, loans sold to bank-related institutions, and
certain other nondeposit items. This series for deposits is referred to as
"the adjusted bank credit proxy."
NOTE.—Due to changes in Regulations M and D , member bank reserves
include reserves held against nondeposit funds beginning Oct. 16, 1969.
Revised back data may be obtained f r o m 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)
Seasonally adjusted
Loans
Total
loans
and
invest-1
ments

Date

Total 1

Plus
loans2
sold

Not seasonally adjusted

Total

Plus
loans2
sold

U.S.
Treasury

Other 4

Securities

Loans

Securities

Commercial
and industrial 3

Total
loans
and
invest-1
ments

Total 1

Plus
loans
sold 2

Commercial
and industrial 3
Total

Plus
loans
sold 2

U.S.
Treasury

Other4

1971-—Dec.
1972-—Dec.
1973-—Dec.
1974-—Dec.

31
31
31
31 5 6. .

484.8
556.4
630.3
687.1

320.3
377.8
447.3
498.2

323.1
380.4
451.6
503.0

115.9
129.7
155.8
182.6

117.5
131.4
158.4
185.3

60.1
61.9
52.8
48.8

104.4
116.7
130.2
140.1

497.9
571.4
647.3
705.6

328.3
387.3
458.5
510.7

331.1
389.9
462.8
515.5

118.5
132.7
159.4
186.8

120.2
134.4
162.0
189.6

64.9
67.0
58.3
54.5

104.7
117.1
130.6
140.5

1975-- F e b .
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

26
26
30
28
30
30*....
27 p....
2 4 .
2 9p .
26 ....
31*. . .

692.6
697.0
699.1
702.0
705.0
706.4
710.4
711.6
715.0
721.3
717.2

498.9
498.3
495.0
492.8
489.9
489.6
490.7
490.4
494.1
498.0
494.7

503.4
503.0
499.6
497.5
494.6
494.1
495.2
494.9
498.8
502.7
499.1

182.5
180.9
180.5
179.1
176.3
177.6
177.5
176.4
177.9
178.9
177.7

185.2
183.7
183.2
181.9
179.2
180.4
180.3
179.2
180.8
181.7
180.3

53.2
58.5
64.0
68.2
72.4
73.4
75.6
77.1
75.1
76.3
77.9

140.5
140.2
140.1
141.0
142.7
143.4
144.1
144.1
145.8
147.0
144.6

686.8
692.5
698. 1
698.3
709.3
704.9
705.6
711.5
713.3
720.9
734.4

492.8
492.3
493.1
491.6
497.2
491.7
489.7
491.7
492.4
496.0
505.1

497.3
496.9
497.7
496.3
501.9
496.2
494.2
496.2
497.1
500.7
509.5

180.7
180.5
181.1
178.7
179.0
177.5
176.0
176.8
176.6
177.8
181.1

183.4
183.3
183.8
181.5
181.9
180.3
178.8
179.6
179.5
180.6
183.7

54.6
59.3
63.3
65.0
68.2
69.6
72.1
75.4
76.1
79.6
84.2

139.5
140.9
141.7
141.7
143.9
143.6
143.8
144.3
144.8
145.3
145. 1

1976-—Jan. 28P. . . .

720.5

495.4

499.7

178.1

180.6

80.2

144.9

719.5

490.6

494.9

176.0

178.5

84.9

144.0

1
Adjusted to exclude domestic commercial interbank loans.
2
Loans sold are those sold outright for banks' own foreign branches,
nonconsolidated nonbank affiliates of the bank, the banks' holding
company (if not a bank), and nonconsolidated nonbank subsidiaries of
the holding company. Prior to Aug. 28, 1974, the institutions included
had been defined somewhat differently, and the reporting panel of banks
was also different. On the new basis, both "Total loans" and " C o m mercial and industrial loans" were reduced by about $100 million.
3
Reclassification of loans at one large bank reduced these loans by
about $400 million as of June 30, 1972.
4
Farmers H o m e Administration insured notes included in "Other
securities" rather than in loans beginning June 30, 1971, when such notes
totaled about $700 million.
5 Data beginning June 30, 1974, include one large mutual savings
bank that merged with a nonmember commercial bank. As of that date
there were increases of about $500 million in loans, $100 million in "Other
securities," and $600 million in "Total loans and investments."




6
As of Oct. 31, 1974, "Total loans and investments" of all commercial
banks were reduced by $1.5 billion in connection with the liquidation
of one large bank. Reductions in other items were: "Total loans," $1.0
billion (of which $0.6 billion was in "Commercial and industrial loans"),
and "Other securities," $0.5 billion. In late November "Commercial and
industrial loans" were increased by $0.1 billion as a result of loan reclassifications at another large bank.

NOTE.—Total loans and investments: For monthly data, Jan. 1959—
June 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 14

C O M M E R C I A L B A N K S • F E B R U A R Y 1976
PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK
(Amounts in millions of dollars)
Loans and investments

Classification by
F R S membership
and F D I C
insurance

Securities
Cash
assets 3
Total

Loans
l

U.S.
Treasury

Other
2

Total
assets—
Total
liabilities
and
capital
accounts 4

Deposits
Interbank3
Total3

Other
Borrowings

Demand
Demand

Total
capital
accounts

Times

Time
U.S.
Govt.

Other

Last-Wednesday-of-month series 6
All commercial banks:
1941—Dec. 3 1 . .
1947—Dec. 31 7.
I960—Dec. 3 1 . .
1970—Dec. 318.
1971—Dec. 3 1 . .
1972—Dec. 3 1 . .
1973—Dec. 3 1 . .
1974—Dec. 3 1 . .

50,746
116,284
199,509
461,194
516,564
598,808
683,799
744,107

21,714
38,057
117,642
313,334
346,930
414,696
494,947
549,183

21,808
69,221
61,003
61,742
64,930
67,028
58,277
54,451

1975—Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

29..
26..
26..
30..
28..
30..
30*.
27p.
24*.
29*.
26*.
31*.

724,820
725,480
731,690
731,100
733,690
747,551
738,850
740,590
742,300
745,150
754,780
771,380

532,230
531,390
531,440
526,120
527,030
535,493
525,640
524,700
522,580
524,260
529,890
542,090

090
53,500
54,550139 540
59,330140 920
63,280141 700
6 5 , 0 0 0 ' " 660
868
68,191
590
69,620
830
72,060
280
75,440
840
76,050
340
79,550
,070
84,220

1976—Jan.

225 26,551 79,104 71,283
006 37,502 155,377 144,103
864 52,150 257,552 229,843
118 93,643 576,242 480,940
704 99,832 640,255 537,946
084 113,128 739,033 616,037
574 118,276 835,224 681,847
473 128,042 919,552 747,903
101,670
103,880
105,850
114,140
114,400
128,716
106,780
104,030
105,160
109,140
121,370
128,270

875,020
879,080
889,370
899,110
901,280
930,719
900,210
898,940
903,440
911,930
934,450
958,410

702,170
702,500
712,520
723,060
725,590
754,324
724,350
723,090
724,490
733,730
749,140
781,770

10,982
15,952
44,349
23
12,792
240 1,343 94,367 35,360
65
17,079 1,799 5,945 133,379 71,641
163
30,608 1,975 7,938 209,335 231,084 19,375
32,205 2,908 10,169 220,375 272,289 25,912
33,854 4,194 10,875 252,223 314,891 38,083
36,839 6,773 9,865 263,367 365,002 58,994
43,483 11,496 4,807 267,506 420,611 58.369
29,980 I I , 7 4 0
29,930 10,440
30,410 11,680
33,140; 11,880
32,510, 11,200
42,582!III,209
33,160 10,830
31,510 10,570
31,280 10,990
31,830 11,210
34,470 11,160
41,660 11,830

4,520
2,630
3,950
7,910
2,950
3,117
2,230
2,850
3,220
2,700
3,600
3,170

233,880
234,610
236,900
242,580
246,410
264,027
243,470
242,290
240,080
247,030
256,970
278,280

422,050
424,890
429,580
427,550
432,520
433,389
434,660
435,870
438,920
440,960
442,940
446,830

61,460
64,290
63.370
61,340
61,700
62,420
61,800
59,770
60,790
60,310
66,360
58,100

28*.

753,420 524,510 84,930 143,980 111,050 921,760 738,930 32,000 11,160

Members of
F.R. System:
1941—Dec.
1947—Dec.
1960—Dec.
1970—Dec.
1971—Dec.
1972—Dec.
1973—Dec.
1974—Dec.

31.
31.
31.
318
31.
31.
31.
31.

43,521
97,846
165,619
365,940
405,087
465,788
528,124
568,532

32,628
99,933
253,936
277,717
329,548
391,032
429,537

57,914
49,106
45,399
47,633
48,715
41,494
38,921

,961
,304
,579
,604
738
524
598
073

23,113
32,845
45,756
81,500
86,189
96,566
100,098
106,995

132,060
216,577
465,644
511,353
585,125
655,898
715,615

61,717
122,528
193,029
384,596
425,380
482,124
526,837
575,563

10,385
12,353
16,437
29,142
30,612
31,958
34,782
41,062

140
50
1,639
1,733
2,549
3,561
5,843
10,052

1,709
1 ,176
5,287
6,460
8,427
9,024
8,273
3,183

37,136
80,609
112,393
168,032
174,385
197,817
202,564
204,203

12,347
28,340
57,273
179,229
209,406
239,763
275,374
317,064

4
54
130
18,578
25,046
36,357
55,611
52,850

1975—Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

29.
26.
26.
30.
28.
30.
30.
27.
24.
29.
26 '
31*

550,220
549,144
552,957
550,756
551,264
562,667
553,545
554,007
555,096
556,383
564,055
577,678

414,419
412,076
411,446
406,676
405,803
412,939
403,742
402,281
400,695
401,492
405,825
416,039

37,549
38,628
42,544
45,142
46,918
49,610
50,050
51,899
54,355
54,546
57,477
61,238

252
440
967
938
543
118
753
827
046
345
753
401

86,350
88,430
89,685
96,694
96,455
107,152
89,898
87,208
88,004
91,397
102,106
107,211

676,898
678,970
685,906
692,147
691,485
716,364
688,756
686,266
689,717
695,312
714,149
733,267

536,256
535,250
542,076
549,824
549,996
573,382
547,222
545,021
546,360
552,649
564,856
591,358

28,311
28,157
28,564
31,102
30,191
39,847
30,980
29,335
29,150
29,568
32,064
38,595

10,299
8,991
10,231
10,433
9,751
9,576
9,198
8,932
9,360
9,578
9,527
10,197

3,247
1,989
2,794
6,212
2,178
2,166
1 ,541
2,099
2,343
1 ,952
2,708
2,226

177,701
178,596
180,214
184,693
187,439
201,197
184,595
183,283
181,340
186,851
194,502
211,418

316,698
317,517
320,273
317,384
320,437
320,596
320,908
321,372
324,167
324,700
326,055
328,922

56,105
58,868
58,030
55,738
56,140
56,334
56,094
54,175
54,929
54,250
60,162
52,756

1976—Jan.

28*.

563,470 402,067 61,713 99,690 93,794 705,135 556,297 29,712 9,529

18,021 19,539

68,121

3,880 245,230 446,660 66,780

2,911 185,779 328,366 61,022 52,067

Call date series
Insured banks:
Total:
1941—Dec.
1947—Dec.
1960—Dec.
1970—Dec.
1972—Dec.
1973—Dec.

31..
31..
31..
318.,
31..
31..

49,290 21,259 21,046 6,984
114,274 37,583 67,941 8,750
198,011 117,092 60,468 20,451
458,919 312,006 61,438 85,475
594,502 411,525 66,679 116,298
678,113 490,527 57,961 129,625

25,788
36,926
51,836
92,708
111,333
116,266

76,820
152,733
255,669
572,682
732,519
827,081

69,411
141,851
228,401
479,174
612,822
677,358

10,654
1,762 41,298 15,699
10
54 1,325 92,975 34,882
61
12,615
16,921 1,667 5,932 132,533 71,348
149 20i628
30,233 1,874 7,898 208,037 231,132 19,149
33,366 4,113 10,820 250,693 313,830 37,556
36,248 6,429 9,856 261,530 363,294 57,531

1974—Dec. 3 1 . .

734,516 541,111 54,132 139,272 125,375 906,325 741,665 42,587 10,693

4,799 265,444 418,142 55,988

1975—June 3 0 . .
Sept. 3 0 . .

736,164 526,272 67,833 142,060 125,181 914,781 746,348 41,244 10,252
740,882 521,673 73,382 140,627 117,774 911,981 741,758 37,652 9,876

3,106 261,903 416,962 59,310
3,606 252,945 425,382 58,325

39,458
6,786
82,023 8,375
35
124,911 9,829
611
283,663 18,051
982
359,319 19,096
,155
395,767 20,357
,876

23,262
8,322
4
M
795 53,541 19,278
45
3,265 71,660 39,546
4,740 122,298 137,592 13,100
6,646 146,800 184,622 26,706
5,955 152,705 212,874 39,696

1974—Dec. 3 1 . .

428,433 321,466 29,075 77,892 76,523 534,207 431,039 23,497 6,750

2,437 154,397 243,959 39,603

1975—June 3 0 . .
Sept. 3 0 . .

428,167
428,507

312.229 37,606 78,331 75,686 536,836 431,646 21,096 6,804
307.230 40,872 76,929 72,216 534,415 427,421 20,250 6,795

1,723 152,576 242,492 41,954
1,963 146,382 245,783 42,073

National member:
1941—Dec. 3 1 . .
1947—Dec. 3 1 . .
1960—Dec. 3 1 . .
1970—Dec. 318.
1972—Dec. 3 1 . .
1973—Dec. 3 1 . .

11,725 12,039
27,571
21,428 38,674
65,280
107,546 63,694 32,712
271,760 187.554 34,203
350,743 247,041 37,185
398,236 293.555 30,962

For notes see opposite page.




3,806
5,178
11,140
50,004
66,516
73,718

14,977
22,024
28,675
56,028
67,390
70,711

43,433
88,182
139,261
340,764
434,810
489,470

Number
of
banks

F E B R U A R Y 1976 • C O M M E R C I A L B A N K S

A 15

PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued
(Amounts in millions of dollars)
Loans and investments
Classification by
F R S membership
and F D I C
insurance

Deposits

Securities
Total

Loans
l

U.S.
Treasury

Cash
assets 3

Other
2

Total
assets—
Total
liabilities
and
Total 3
capital
accounts 4

Interbank 3

Other
Borrowings

Demand
Demand

Total
capital
accounts

Time
Time

Number
of
banks

5

Other

U.S.
Govt.

Call date series
Insured banks (cont.):
State member:
6,295
1941—Dec. 3 1 . . . . 15,950
1947—Dec. 3 1 . . . . 32,566 11,200
1960—Dec. 3 1 . . . . 58,073 36,240
1970—Dec. 318... 94,760 66,963
1972—Dec. 3 1 . . . . 115,426 82,889
1973—Dec. 3 1 . . . . 130,240 97,828
1974—Dec. 3 1 . . . . 140,373 108,346
1975—June 3 0 . . . 134,759 100,968
1975—Sept. 30. . . 135,003 99,854
Nonmember:
1941—Dec.
1947—Dec.
I960—Dec.
1970—Dec.
1972—Dec.
1973—Dec.

5,lie

3,241
31....
3 1 . . . . 16,444 4,958
3 1 . . . . 32,411 17,169
318... 92,399 57,489
3 1 . . . . 128,333 81,594
31... . 149,638 99,143

8,145 24,688 22,259
7,500
2,155
19,240
2,125 10,822 43,879 40,505
17,081
16,394
5,439
77,316 68,118
11,196 16,600 25,472 125,460 101,512
11,530 21,008 29,176 150,697 123,186
10,532 21,880 29,387 166,780 131,421
9,846

3,739
3,978
15
6,608
1,028
11,091
750
12,862
1,406
1,968
14,425

621
381
2,022
1,720
2,378
2,318

13,874 4 , 0 2 5
1 2,246
27,068
9,062
9
3,055
40,733 17,727
20 6,299
45,734 42,218 5,478
9,232
51,017 55,523 9,651 10,886
49,859 62,851 15,914 11,617

1,502
1,918
1,644
1,147
1,092
1,076

30,473 181,683 144,799

17,565

3,301

746 49,807

73,380 13,247

12,425

1,074

12,004 21,787 31,466 179.787 141,995
12,234 21,240 28,842 176,267 139,276

18,751
16,125

2,771
2,427

443 48,621 65,654 14,380
490 46,416 67,958 13,211

12,773
13,009

1,064
1,057

959
6
7
1,271
19 3,232
8,326
571
1,199 10,938
1,920 12,862

6,810
6,478
6,948
7,735
8,017
8,229

22,181

1,509
1,025
10,039
1,448
11,368
3,874
16,039 18,871
17,964 28,774
16,467 34,027

2,668
4,083
6,082
11,208
14,767
16,167

8,708
7,702
20,691 19,342
39,114 35,391
106,457 93,998
147,013 130,316
170,831 150,170

262
484
1,091
1,408
1,467

4
27
141
552
586

53
149
645
1,438
1,796
1,582

15,211

39,199

18,380 190,435 165,827

1 ,525

642

1 ,616 61,240 100,804

3,138

14,799

8,436

1975—June 3 0 . . . 173,238 113,074 18,223 41,942
1975—Sept. 30. . . 177,371 114,589 20,275 42,457

18,029 198,157 172,707
16,717 201,299 175,060

1,397
1,277

676
655

940 60,706 108,816 2,976
1 ,153 60,147 111,641 3,041

15,730
16,224

8,526
8,562

852
783
352
184
181
206
207

1974—Dec. 3 1 . . . . 165,709 111,300

Noninsured
nonmember:
1941—Dec.
1947—Dec.
I960—Dec.
1970—Dec.
1971—Dec.
1972—Dec.
1973—Dec.

31....
317...
31....
318...
31....
31....
31....

1,457
2,009
1,498
3,079
3,147
4,865
6,192

455
474
550
2,132
2,224
3,731
4,927

761
1,280
535
304
239
349
316

241
255
413
642
684
785
949

763
576
314
934
1,551
1,794
2,010

2,283
2,643
1,883
4,365
5,130
7,073
8,650

1,872
2,251
1,443
2,570
2,923
3,775
4,996

129

329
177
159
375
380
488
591

185
132
101
116
81
344

3,360
4,162
6,558
12,366
20,140 14,095
40,005 51,322
52,876 73,685
58,966 87,569

1,291
1,392
18
846
13
1,298
40
1,273
19
1,530
55
1,836
9

253
478
293
756
1,134
1,620
2,215

13
4
14
226
283
527
1,463

329
325
358
532
480
491
524

1974—Dec. 3 1 . . . .

9,981

8,461

319

1 ,201

2,667

13,616

6,627

897

803

8

2,062

2,857

2,382

611

249

1975—June 3 0 . . .

11,725

9,559

358

1,808

3,534

16,277

8,314

1,338

957

11

2,124

3,320

3,110

570

253

7,233
18,454
33,910
95,478
111,674
133,198
155,830

3,696
5,432
17,719
59,621
69,411
85,325
104,070

1,266
2,270
11,318
1,703
11,904 4,287
16,342 19,514
17,297 24,966
18,313 29,559
16,783 34,976

3,431
4,659
6,396
12,143
13,643
16,562
18,177

10,992
23,334
40,997
110,822
129,100
154,085
179,480

9,573
21,591
36,834
96,568
112,764
134,091
155,165

439
643
1,466
1,592
1,895
2,057

190
160
243
359
633
930

5,504
1,288
3,613
18
167 13,758
12
1,596
7,036
657 20,986 14,388
33 3,590
1,478 41,303 52,078
796 8,858
1,742 45,990 63,081
866 9,932
1,850 54,406 75,305 1,726 11,429
1,592 60,802 89,784 3,383 13,386

7,662
7,261
7,300
7,919
8,056
8,223
8,436

1974—Dec. 31 . . . . 175,690 119,761

15,530 40,400 21,047 204,051 172,454

2,422

1,445

1 ,624 63,302 103,661

1975—June 3 0 . . . 184,963 122,633

18,581 43,750 21,563 214,434 181,021

2,735

1,633

Total nonmember:
1941—Dec.
1947—Dec.
1960—Dec.
1970—Dec.
1971—Dec.
1972—Dec.
1973—Dec.

31....
31....
31....
318...
31....
31....
31... .

1

Loans to farmers directly guaranteed by C C C were reclassified as
securities and Export-Import Bank portfolio fund participations were
reclassified f r o m loans to securities effective June 30, 1966. This reduced
" T o t a l loans" and increased "Other securities" by about $1 billion.
" T o t a l 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-16.
Effective June 30, 1971, Farmers H o m e Administration notes were
classified as "Other securities" rather than " L o a n s . " 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-24.
2
See first 2 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
For the last-Wednesday-of-the-month series, figures for call dates
are shown for June and December as soon as they became available.
7
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.

8
Figure takes into account the following changes, which became
effective June 30, 1969: (1) inclusion of consolidated reports (including
figures for all bank-premises subsidiaries and other significant majorityowned 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.




457

951

5,520

15,410

8,685

62,830 112,136 6,086

16,300

8,779

9

Member bank data for Oct. exclude assets of $3.6 billion of one large
bank.
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; nondeposit trust companies; and U.S. branches of foreign banks.
Figures for member banks before 1970 include mutual savings banks
as follows: 3 before Jan. 1960 and 2 through Dec. 1960. Those banks
are not included in insured commercial banks.
Effective 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,
exclude 1 national bank in Puerto Rico.
Beginning Dec. 31, 1973, June 30, 1974, and Dec. 31, 1974, June 30,
1975, respectively, member banks exclude and noninsured nonmember
banks include 1, 2, 3, and 4 noninsured trust companies that are member
of the Federal Reserve System.
Comparability of figures for classes of banks in affected somewhat by
changes in F.R. membership, deposit insurance status, and by mergers
etc.
Figures are partly estimated except on call dates.
F o r revisions in series before June 30, 1947, see July 1947 BULLETIN,
pp. 870-71.

A 16

COMMERCIAL BANKS • FEBRUARY 1976
ASSETS BY CLASS OF BANK, JUNE 30, 1975
(Assets and liabilities are shown in millions of dollars.)
Member b a n k s 1

Account

All
Insured
commercial commercial
banks
banks

Large banks
Total

New
York
City
29,694
569
5,656
6,940
94
438
15.997

4,419
121
1,800
165
115
78
2,139

38,925
2,520
10,084
3,710
1,153
938
20,518

34,114
4,335
9,350
8,906
2,284
285
8,955

City of
Chicago

Other
large

Nonmember
banks1

All other

Cash bank balances, items in process
Currency and coin
Reserves with F.R. Banks
Demand balances with banks in United States
Other balances with banks in United States
Balances with banks in foreign countries
Cash items in process of collection

128,716
10.102
26.890
34.278
5,727
2,296
49,422

125.181
10,079
26,890
31,788
5,276
49,315

107,152
7,546
26,890
19,722
3,647
1,738
47,610

Total securities held—Book value
U.S. Treasury
Other U.S. Govt, agencies
States and political subdivisions
All other securities

212,058
68.191
33,882
101,472
8,513

209,893
67,833
33,490
101,091
7,479

149,728
49,610
21,213
73,762
5,144

16,808
7,368
1,754
7,030
657

5,879
2,189
570
2,828
291

49,992
17,061
6,348
25,087
1,496

77,049
22,992
12,540
38,817
2,699

62,330
18,581
12,669
27,711
3,370

Trade-account securities
U.S. Treasury
Other U.S. Govt, agencies
States and political subdivisions
All other

6.198
2,945
941
1,907
406

6,188
2,934
941
1,907
406

6,136
2,909
934
1,893
400

2,468
1,399
239
736
95

556
344
27
117
68

2,896
1,078
633
952
233

217
88
35
89
5

62
35
7
14
6

Bank investment portfolios
U.S. Treasury
Other U.S. Govt, agencies
States and political subdivisions
All other

205,860
65,246
32,941
99,566
8,108

203,705
64,899
32,549
99,184
7,073

143,592
46,701
20,279
71,869
4,743

14,340
5,969
1,515
6,294
562

5,323
1,845
544
2,711
224

47,096
15,983
5,715
24,135
1,264

76,832
22,904
12,505
38,729
2,694

62,268
18,545
12,662
27,697
3,364

38,841
34,083
3,054
1,704

37,383
32,625
3,054
1,704

28,951
24,296
2,977
1,677

1,747
852
108
787

1,263
1,041
203
19

14,807
11,800
2,195
812

11,133
10,604
471
59

9,891
9,787
77
27

496,990
131,445
6,105
81.360
74,612
5,626
3,167
65,818
6,748
762
5,986
43,981

488,888
131,246
6,090
81,233
74,489
5,610
3,147
65,732
6,744
761
5,983
43,923

384,247
94,442
2,676
59,898
54,377
4,875
2,713
46,790
5,521
706
4,815
31,868

75,339
7,951
5
4,265
3,150
233
181
2,736
1,115
136
978
3,681

22,512
1,332
2
894
839
55
20
764
55
25
30
436

142,424
35,526
327
23,532
20,932
2,632
1,418
16,882
2,600
331
2,269
11,667

143,973
49,633
2,342
31,207
29,456
1,955
1,094
26,407
1,751
214
1,537
16,084

112,742
37,003
3,428
21,462
20,235
752
454
19,029
1,227
56
1,171
12,113

Loans to domestic and foreign banks
Loans to other financial institutions
Loans on securities to brokers and dealers
Other loans for purch./carry securities
Loans to farmers
Commercial and industrial loans

11,155
32,413
5,534
3,836
19,071
178,993

8,644
32,164
5,447
3,818
19,054
174,436

8,075
30,964
5,373
3,177
10,768
147,242

3,543
11,756
3,931
516
88
39,616

504
4,720
659
277
190
12,517

3,252
12,175
649
1,497
2,554
55,802

776
2,314
134
887
7,935
39,307

3,080
1,449
161
658
8,304
31,751

Loans to individuals
Instalment loans
Passenger automobilies
Residential-repair/modernize
Credit cards and related plans
Charge-account credit cards
Check and revolving credit plans
Other retail consumer goods
Mobile homes
Other
Other instalment loans
Single-payment loans to individuals
All other loans

101,816
79,246
32,128
5,627
10,835
8,240
2,595
15,273
8,807
6,466
15,383
22,570
12,726

101,512
79,033
32,026
5,611
10,835
8,240
2,594
15,242
8,801
6,441
15,318
22,479
12,568

72,806
56,275
21,423
4,077
9,551
7,389
2,162
10,661
6,340
4,321
10,563
16,531
11,400

4,942
3,062
421
202
1,015
742
273
160
100
60
1,265
1,880
2,995

1,540
804
151
49
399
369
29
104
48
56
101
736
773

25,865
20,229
6,621
1,717
5,320
4,181
1,139
3,765
2,276
1,489
2,807
5,636
5,103

40,458
32,180
14,230
2,109
2,818
2,096
722
6,632
3,916
2,716
6,390
8,278
2,529

29,010
22,971
10,706
1,550
1,284
851
433
4,611
2,467
2,144
4,820
6,039
1,326

747,889

736,164

562,926

93,894

29,654

207,223

232,155

184,963

16,254
1,820
9,462
26,917

16,175
1,798
9,223
26,239

12,183
1,777
8,993
23,592

1,263
797
4,795
8,889

500
146
427
1,122

4,894
754
3,438
9,756

5,526
81
332
3,825

4,071
42
469
3,325

931,057

914,781

716,623

139,333

36,268

276,032

214,434

14,573

14,320

5,794

12

9

5,618

8,779

Federal funds sold and securities resale a g r e e m e n t s . . .
Commercial banks
Brokers and dealers
Others
Other loans
Real estate loans
Secured by farmland
Secured by residential
1- to 4-family residences
F H A insured
VA guaranteed
Other
Multifamily
F H A insured
Other
Secured by other properties

Total loans and securities
Fixed assets Buildings, furniture, real estate
Investments in subsidiaries not consolidated
Customer acceptances outstanding
Other assets
Total assets
Number of banks

1,833

1
Member banks exclude and nonmember banks include 4 noninsured
trust companies that are members of the Federal Reserve System, and
member banks exclude 2 national banks outside the continental United
States.
2
See table (and notes), Deposits Accumulated for Payment of Personal
Loans, p. 24.
3
Demand deposits adjusted are demand deposits other than domestic
commercial interbank and U.S. Govt., less cash items reported as in
process of collection.




264,990 '
155

21,564
2,556
'

i 4 j 556
2,080
558
1,813

NOTE.—Data include consolidated reports, including figures for all
bank-premises subsidiaries and other significant majority-owned domestic
subsidiaries. Figures for total loans and for individual categories of
securities are reported on a gross basis—that is, before deduction of
valuation reserves.
Back data in lesser detail were shown in previous BULLETINS. Beginning
with the fall Call Report, data for future spring and fall Call Reports will
be available f r o m the D a t a Production Section of the Division of D a t a
Processing.
Details may not add to totals because of rounding.

F E B R U A R Y 1976 • C O M M E R C I A L B A N K S

A 17

LIABILITIES AND CAPITAL BY CLASS OF BANK, JUNE 30, 1975
(Assets and liabilities are shown in millions of dollars.)
Member b a n k s 1
Insured
All
commercial commercial
banks
banks

Account

Large banks
Total
New
York
City

Other individuals, partnerships, and c o r p o r a t i o n s . .
U.S. Government
States and political subdivisions
Foreign governments, central banks, etc
Commercial banks in United States
Banks in foreign countries
Certified and officers' checks, etc
Time and savings deposits
Savings deposits
Mutual savings banks
Other individuals, partnerships, and c o r p o r a t i o n s . .
U.S. Government
States and political subdivisions
Foreign governments, central banks, etc
Commercial banks in United States
Banks in foreign countries

Federal f u n d s purchased and securities sold under
agreements to repurchase
Other liabilities for borrowed money
Mortgage indebtedness
Other liabilities
Total liabilities
Minority interest in consolidated subsidiaries
Total reserves on loans/securities

.......

Other reserves on loans
Reserves on securities
Total capital accounts
Capital notes and debentures
Preferred stock
C o m m o n stock
Undivided profits
Other capital reserves
Total liabilities, reserves, minority interest, capital
Demand deposits adjusted 3
Average total deposits (past 15 days)
Average total loans (past 15 days)
Selected ratios:
Percentage of total assets
Cash and balances with other banks
Total securities held
Trading account securities
• ...
I I S Treacnrv
Qtsitf^c anH nnlitirfll 5iihHiuKir>nQ
All Ath^r traHino arrnnnt cpniritipQ
Bank investment portfolios
U.S. Treasury .
...
All other portfolio securities
Other loans and Federal funds sold

Reserves for loans and securities

Number of banks
For notes see opposite page.




..

City of
Chicago

Other
large

All other

Nonmember1
banks

309,726
1,279
232,079
3,117
18,217
1,555
34,345
6,957
12,176

306,253
1,151
231,121
3,106
18,079
1,310
34,019
6,074
11,393

243,210
1,057
177,344
2,166
13,074
1,280
32,823
5,967
9,499

57,475
483
29,687
118
758
1,088
16,986
4,662
3,691

9,911
1
7,668
42
186
18
1,593
152
250

85,372
210
65,847
725
3,883
167
10,482
1,058
2,999

90,453
362
74,142
1,280
8,247
6
3,762
95
2,558

66,516
223
54,735
951
5,143
275
1,522
990
2,677

444,936
151,744
338
648
219,489
492
48,219
13,445
8,449
2,111

440,096
151,463
335
627
216,619
492
48,052
12,882
8,334
1,291

330,431
109,037
259
611
163,751
360
34,739
12,710
7,716
1,248

46,693
6,995

16,362
2,385

287
25,801 •
10
1,421
7,956
3,205
1,018

17
10,371
1
1,324
1,374
842
48

119,708
38,455
74
265
59,106
184
15,062
3,337
3,048
178

147,669
61,202
186
42
68,473
165
16,932
43
621
5

114,505
42,708
79
37
55,738
132
13,480
735
733
863

754,662

746,348

573,641

104,167

26,272

205,080

238,122

181,021

56,529
5,891
763
10,060
27,627

54,835
4,475
761
9,814
23,645

52,184
4,150
550
9,583
18,960

13,367
1,362
64
5,375
3,535

5,845
26
4
430
929

25,865
2,370
313
3,447
7,789

7,106
392
169
332
6,706

4,345
1,741
213
477
8,667

855,533

839,879

659,069

127,870

33,507

244,864

252,827

196,464

5
8,963
8,659
121
182

4
8,912
8,614
119
179

j
7,297
7,110
69
119

4
1,666
1,549
53
64

66,557
4,347
62,210
50
15,176
25,968
20,053
963

65,986
4,287
61,699
42
15,077
25,816
19,859
905

50,257
3,467
46,790
24
11,187
19,500
15,441
638

931,057

914,781

222,842
734,017
506,945

219,813
726,164
497,466

13.8
22.8

1,685
1,685

525
525
1

2,761
2,682
17
61

1
2,325
2,218
50
57

9,777
782
8,995

2,236
81
2,155

2,163
3,667
3,166

568
1,143
399
44

17,365
1,656
15,710
10
3,614
6,976
4,845
264

20,878
948
19,930
13
4,842
7,713
7,031
330

16,300
880
15,421
27
3,989
6,468
4,613
324

716,623

139,333

36,268

264,990

276,032

214,434

160,611
555,860
385,936

24,373
96,313
74,863

6,136
25,508
22,484

53,646
199,612
143,273

76,456
234,427
145,316

62,231
178,157
121,009

13.7
22.9

15.0
20.9

21.3
12.1

12.2
16.2

14.7
18.9

12.4
27.9

10.1
29.1

.7
.3
.2
.1

.7
.3
.2

.9
.4
.3
.2

1.8
1.0
.5
.2

1.5
.9
.3
.3

1.1
.4
.4
.3

.1

22.1
7.0
10.7
4.4

22.3
7.1
10.8
4.3

20.0
6.5
10.0
3.5

10.3
4.3
4.5
1.5

14.7
5.1
7.5
2.1

17.8
6.0
9.1
2.6

27.8
8.3
14.0
5.5

29.0
8.6
12.9
7.5

57.6
5.8
80.3

57.5
5.8
80.5

57.7
6.5
78.6

55.3
11.3
67.4

65.6
6.1
81.8

59.3
7.1
78.2

56.2
3.5
84.1

57.2
3.7
86.3

1.0
6.7
7.1

1.0
6.7
7.2

1.0
6.5
7.0

1.2
6.5
7.0

1.4
5.9
6.2

1.0
5.9
6.6

.8
7.2
7.6

.8
7.2
7.6

14,573

14,320

5,794

12

9

155

5,618

8,779

W E E K L Y R E P O R T I N G B A N K S • F E B R U A R Y 1976

A 18

ASSETS AND LIABILITIES OF LARGE COMMERCIAL B A N K S A
(In millions of dollars)
Loans
Federal funds sold, etc. 1

Wednesday

Other
For purchasing
or carrying securities

To brokers
and dealers
involving—

Total
loans
and
investments
Total

To
commercial
banks

Commercial
and
industrial

To
US. Other others
Treas- securiury
ties
securities

To brokers
and dealers
Agricultural

To nonbank
financial
institutions

To
others

Pers.
U.S.
U.S
and
Treas- Other Treas- Other
sales
ury
sees.
ury
sees. finance
sees.
sees.
COS.,
etc.

Real
estate
Other

Large banks—
Total
1975
14,947 2,352
14,691 1,863
14,384 1,272
13,847 1,595

774
858
934
913

300,373
297,282
293,235
292,146

29

407,598 19,532
402,853 18,672
395,791 17,430
393,512 17,342

Dec.

3
10
17
24
31

397,103 18,391
398,980 18,874
402,384 18,764
401,519 18,678
404,053 19,809

922
754 280,443 119,311
14,428 2,287
819
903 280,184 119,543
14,398 2,754
14,603 2,078 1,023 1,060 282,792 120,116
844
977 282,907 120,455
14,914 1,943
901
947 283,899 120,661
15,987 1,974

Jan.

7
14
21
28

402,782 20,264
401,058 20,597
394,724 18,035
393,321 18,421

16,283 2,687
17,445 1,700
14,878 1,650
15,765 1,496

Jan.

8
15

22

1,459

1,260
840
987

130,8'6
129,635
128,446
127,429

10,340
10,272
9,992
9,785

3,637 2,353 3,477
3,586 1,226 3,602
3,565
550 2,950
3,528
898 3,380

2,521
2,476
2,438
2,453

3.545 1 ,221
3.546 1 ,184
3,593 1 ,451
3,580 1,497
3,640 1,059

4,619
4,522
5,466
4,727
5,498

2,290
2,297
2,300
2,300
2,306

8,560 18,750 59,482
8,608 18,635 59,492
8,680 18,591 59,453
8,493 18?382 59,400
8,628 18,552 59,530

4,311
4,243
3,885
3,340

2,328
2,259
2,272
2,266

8,259 18,321
8,294 18,082
8,209 17,995
8,151 17,818

1 ,980 2,277
1 ,085 2,349
482 1,868
754 2,231

534
507
502
499

3,536
3,591
3,428
3,288

8,282
8,330
8,207
8,192

7,514
7.508
7,531
7.509

86 1,122 2,824
86 1 ,096 2,708
1 ,306 3,575
85 1 ,372 3,074
90
999 3,427

398
399
398
396
394

2,928
2,967
2,982
2,845
2,860

7,088
7,055
6,946
6,886
6,857

7,890
7,888
7,907
7,906
7,890

21,370
21,358
21,030
20,806

60,246
60,257
60,220
60,261

1976
677
781
567
513

617
671
940
647

281,549
279,147
277,309
275,113

119,529 3,688
118,653 3,631
118,028 3,631
117,095 3,645

1,649
977
813
551

59,850
59,842
59,836
59,747

New York City
1975
Jan.

Dec.

8
15
22
29

94,211
93,408
90,188
89,669

1,406
2,506
2,067
1,977

1,322
2,402
1 ,814
1,774

3
10
17
24
31

87,748
88,031
89,528
89,784
90,010

951
1,482
1,617
2,396
2,603

714
1 ,114
1,379

92,527
91,908
90,501
89,993

838
1,637
1,839
2,108

28
62
93

38

18 77,323
42 75,986
73,681
95 73,479

160

108

40,894
40,396
39,812
39,477

126
126
125
121

2,170

135
131
65
96
91

102
237
173
179
332

69,236
69,067
70,364
70,246
70,085

36,426
36,611
36,660
36,762
36,710

617
1,405
1,365
1,777

133
92
400
174

73,326
71,745
71,023
69,773

37,538
36,867
36,573
36,223

107
103
101

100

,439
898
755
490

2,599
2,519
2,489
2,026

453
394
389
390

2,790

125
74
157

2,734
2,702

6,987
6,961
6,996
6,946

9,533
9,507
9,498
9,456

756 223,050
816 221,296
774 219,554
818 218,667

89,922
89,239
88,634
87,952

3,511
3,460
3,440
3,407

373
141
68
144

1,200
1,253
1,082
1,149

1,987
1,969
1,936
1,954

6,804
6,681
6,564
6,497

13,088
13,028
12,823
12,614

52,732
52,749
52,689
52,752

99
88
145
125
60

1 ,795
1,814
1,891
1,653
2,071

1,892
1,898
1,902
1,904
1,912

5,632
5,641
5,698
5,648
5,768

11,662
11,580
11,645
11,496
11,695

51,592
51,604
51,546
51,494
51,640

210
79
58
61

1,712
1,724
1,396
1,314

1.875
1,865
1,883
1.876

5,469 11,334
5,433 1 1 , 1 2 1
5,475 10,999
5,446 10,872

50,317
50,335
50,338
50,291

2,121

100

1976
Jan.

7
14
21
28

2,861

Outside
New York City
1975
Jan.

8
15
22
29

313,387
309,445
305,603
303,843

18,126
16,166
15,363
15,365

13,625 2,324 1,421
12,289 1,801 1,260
840
12,570 1,179
987
12,073 1,487

Dec.

3
10
17
24
31

309,355
310,949
312,856
311,735
314,043

17,440
17,392
17,147
16,282
17,206

13,714
13,284
13,224
12,793
13,817

2,152
2,623
2,013
1,847
1,883

922
819
1,023
844
891

652
666
887
798
615

211,207
211,117
212,428
213,814

82,885 3.459
82,932 3.460
83,456 3,493
83,693 3,495
83,951 3,550

310,255
309,150
304,223
303,328

19,426
18,960
16,196
16,313

15,(
2,599
16,040 1.575
13,513 1.576
13,988 1,339

677
766
567
513

484
579
540
473

208,223
207,402
206,286
205,340

81,991 3,581
81,786 3,528
81,455 3,530
80,872 3,545

212,661

1976
Jan.

7
14

21
28

• Effective with changes in New York State branch banking laws,
beginning Jan. 1, 1976, three large New York City banks are now reporting
combined totals for previously affiliated banks that have been converted
to branches.
The principal effects of these changes were to increase the reported data
for New York City (total assets, by about $5.5 billion) and to decrease the




reported data for "Outside New York City" (total assets, by about $4.0
billion).
Historical data (from Jan. 1972) on a basis comparable to 1976 data
will be available f r o m the Public Information Department of the Federal
Reserve Bank of New York on request.
F o r other notes see p. A-22.

F E B R U A R Y 1976 • W E E K L Y R E P O R T I N G B A N K S

A 19

ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS A—Continued
(In millions o f dollars)

Investments

Loans (cont.)

Notes and bonds
maturing—

T o commercial banks

Foreign

Other securities

U.S. Treasury securities

Other (cont.)

Consumer
instalment

Foreign
govts. 2

All
other

Obligations
of States
and
political
subdivisions
Total

Other bonds,
corp. stocks,
and
securities

Wednesday

Total

Bills
Within
1 yr.

1 to
5 yrs.

After
5 yrs.

Tax
warrants 3

All
other

Certif.
of
All
participation4 other5
Large banks—
Total
1975

6,171
6,048
5,790
5,492

34,854
34,778
34,683
34,653

1.555
1,457
1,428
1,457

19,642
19,402
18,918
18,782

25,087
24,512
23,689
23,011

4,780
4,412
3,759
3,392

3,701
3,733
3.710
3,614

12,966
12,842
12,723
12,568

3,640
3,525
3,497
3,437

62,606
62,387
61,437
61,013

6,763
6,737
6,436
$,324

40,817
40,586
40,110
40,005

2,450
2,496
2,470
2,477

12,576
12,568
12,421
12,207

Jan.

8
15
22
29

5,831
5,937
5.944
5,966
5.945

34,709
34,792
34,933
35,083
35,095

1,488
1,568
1,606
1,551
1.556

18,259
17,814
18,492
19,206
19,137

37,859
39,010
40,306
39,520
40,178

11,279
12,638
14,273
13,609
13,714

6,663
6,602
6,543
6,629
6.711

16,971
16,779
16,581
16,382
16,959

2,946
2,991
2,909
2,900
2,794

60,410
60,912
60,522
60,414
60,167

6,806
7,164
6,775
6,611
6,539

39,533
39,768
39,660
39,596
39,491

2,340
2,318
2,316
2,324
2,290

11,731
11,662
11,771
11,883
11,847

Dec.

3
10
17
24
31

5,625
5,487
5,404
5,214

35,474
35,460
35,377
35,364

1,650
1,616
1,741
1,774

18,723
18,524
18,121
18,117

40,630
41,362
39,963
40,508

13,445
14,159
13,249
13,023

6,762
6,903
6,748
6,785

17,664
17,524
17,314
17,506

2,759
2,776
2,652
3,194

60,339
59,952
59,417
59,279

6,550
6,364
6,194
6,102

39,709
39,621
39,407
39,425

2,317
2,278
2,251
2,241

11,763
11,689
11,565
11,51'

1976
Jan.

7
14
21
28

New York City
1975
3,032
2,950
2,836
2,622

2,636
2,654
2,649
2,648

842
840
793
733

4,050
4,104
3,884
3,837

5,068
4,700
4,607
4,503

800
592
641
602

335
327
303
284

2,692
2,584
2,480
2,450

1,241
1,197
1,183
1,167

10,414

2,464
2,505
2,532
2,543
2,541

2,619
2,629
2,627
2,646
2,598

551
580
595
600
597

3,970
3,723
3,893
4,313
4,282

8,451
8,213
8,514
8,175
8,492

2,745
2,695
3,281
2,913
3,100

977
860
832
856
840

3,995
3,851
3,651
3,645
3,836

734
807
750
761
716

4,232
4.053
3,909
4.054

8,784
9,054
8,304
8,830

2,701
2,984
2,425
2,586

1,073
1,119

4,222
4,164
4,109
4,135

788
787
759
1,080

2,023
1,979
1,855
1,772

5,467
5,383
5,183
5,176

522
557
538
539

2,402
2,297
2,257
2,223

Jan.

8
15
22
29

9,110
9,269
9,033
8,967
8,830

1,341
1,404

5,390
5,512
5,421
5,398
5,377

475
479
475
480
478

1,904
1,874
1,856
1,895
1,807

Dec.

3
10
17
24
31

9,579
9,472
9,335
9,282

1,371
1,306
1,229
1,179

6,191
6,173

204
209
206
205

10,216

9,833
9,710

1,281

1,194
1,168

1976
2,405
2,402
2,426
2,250

3,806
3,828
3,805
3,798

635
589
637
628

1,011

1,029

6,118

6,157

1,813
1,784
1,782
1,741

Jan.

7
14
21

28
Outside
New York City
1975

3,139
3,098
2,954
2,870

32,218
32,124
32,034
32,005

713
617
635
724

15,592 20,019
15,298 19,812
15,034 19,082
14,945 18,508

3,980
3,820
3,118
2,790

3,366
3.406
3.407
3,330

10,274
10,258
10,243
10,118

2,399
2,328
2,314
2,270

3,367
3,432
3,412
3,423
3,404

32,090
32,163
32,306
32,437
32,497

1,011

937
988

951
959

14,289
14,091
14,599
14,893
14,855

29,408
30,797
31,792
31,345
31,686

8,534
9,943
10,992
10,696
10,614

5,686
5,742
5,711
5,773
5,871

12,976
12,928
12,930
12,737
13,123

2,212 51,300
2,184 51,643
2,159 51,489
2,139 51,447
2,078 51,337

3,220
3,085
2,978
2,964

31,668
31,632
31,572
31,566

1,015
1,027
1,104
1,146

14,491
14,471
14,212
14,063

31,846
32,308
31,659
31,678

10,744
11,175
10,824
10,437

5,689
5,784
5,737
5,756

13,442
13,360
13,205
13,371

1,971
1,989
1,893
2,114

52,192
52,171
51,604
51,303

4,740 35,350
4,758 35,203
4,581 34,927
4 , 5 5 2 34,829

1,928
1,939
1,932
1,938

10,174
10,271
10,164
9,984

Jan.

8
15
22
29

5,465
5,760
5,494
5,417
5,371

34,143
34,256
34,239
34,198
34,114

1,865
1,839
1,841
1,844

Dec.

1,812

9,827
9,788
9,915
9,988
10,040

3
10
17
24
31

5,179
5,058
4,965
4,923

33,518
33,448
33,289
33,268

2,113
2,069
2,045
2,036

9,950
9,905
9,783
9,770

1976

For notes see p. A-l 8 and A-22.




50,760
50,480
50,082
49,997

Jan.

7
14
21
28

WEEKLY REPORTING BANKS • FEBRUARY 1976

A 20

ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS A - C o n t i n u e d
(In millions of dollars)
Deposits
Demand

Wednesday

Cash
items
in
process
of
collection

Reserves
with
F.R.
Banks

Currency
and
coin

InvestBalances ments
with in subsidiardomestic ies not
banks consolidated

Other
assets

Total
assets/
total
liabiltites

Total
6

IPC

States
and
political
subdivisions

Domestic
interbank
U.S.
Govt.

Commercial

Foreign
Mutual govts.,
etc. 2
savings

Large banks—
Total
1975
Jan.

8
15
22
29

32,438
34,809
30,355
28,271

21,304
25,141
29,437
23,492

5,042
4,910
4,884
4,888

12,079
11,745
10,844
10,774

1,661
1,694
1,686
1,666

31,907
32,129
32,674
32,897

512,029
513,281
505,671
495,500

164,446
165,874
155,438
152,838

117,693
118,990
112,595
110,564

6,409
6,474
6,108
5,999

1,571
1,656
2,601
2,007

24,797
23,843
21,054
20,630

834
745
677
635

1,415
1,369
1,315
1,316

Dec.

3
10
17
24
31

36,107
31,970
37,380
36,815
41,342

21,071
20,859
19,317
22,095
19,587

5,068 12,408
5,356 13,551
5,403 13,465
5,003 12,853
5,497 15,249

1,853
1,827
1,823
1,904
1,919

37,715
38,574
37,470
38,367
39,740

511,325
511,117
517,242
518,556
527,387

167.015
164,838
171,910
168,253
184,174

121,317
120,771
124,551
123,657
132,245

5,860
6,058
6,242
6,630
6,967

2,425
1,518
3,053
1,489
1,386

24,163
23,731
24,514
23,535
29,322

728
680
634
642
893

1,208
1,151
1,144
1,230
1,563

Jan.

7
14

35,740
35,063
34,174
31,596

23,061
21,175
22,202
22,955

5,537 14,291
5,553 13,188
5,363 12,446
5,328 13,277

1,927
1,922
1,966
1,920

39,669
40,433
38,931
39,566

523,007
518,392
509,806
507,963

173,781
168,445
164,974
159,736

124,484
124,486
119,615
116,777

6,486
6,087
6,137
6,085

2,865
1,433
2,879
2,037

26,624
23,575
23,039
22,304

863
770
742
682

1,410
1,053
1,128
990

8
15
22
29

10,970
12,906
11,156
10,963

6,357
7,653
9,385
6,189

576
568
544
550

4,813
5.264
4,605
4,626

756
758
757
764

11,145
11,341
11,495
11,783

128,828
131,898
128,130
124,544

46,839
48,942
44,411
44,729

26,020
26,696
25,238
25,164

322
410
287
338

155
252
489
332

12,073
12,347
10,308
10,226

463
416
375
355

1,092
1,112
1,102
1,109

3

11,366
9,938
12,766
12,049
13,628

6,975
5,916
5,348
5,897
3,151

629
625
661
594
674

5,096
6,071
5,406
4,945
6,813

818
819
817
819
845

11,555
12,287
11,067
11,458
12,340

124,187
123,687
125,593
125,546
127,461

45,389
44,914
47,759
45,808
52,710

26,023
25,734
27,632
26,911
29,733

211
263
299
470
586

488
234
267
183
109

10,885
11,300
11,677
10,778
14,089

359
344
296
320
482

980
960
936
1,002
1,308

12,007
12,388
12,516
12,191

8,367
7,028
6,271
6,583

867
858
829
811

5,838
5,687
5,272
5,867

849
846
846
844

13,070
13,624
12,277
12,629

133,525
132,339
128,512
128,918

50,246
48,951
48,519
47,731

28,531
29,432
28,104
28,244

510
562
619
584

553
153
545
335

13,109
11,423
11,323
11,383

507
444
410
370

1,149
838
905
773

1976

21

28
New York City
1975
Jan.

Dec.

10

17
24
31
1976
Jan.

7
14
21
28
Outside
New York City
1975

Jan.

8
15
22
29

21,468 14,947
21,903 17,488
19,199 20,052
17,308 17,303

4,466
4,342
4,340
4,338

7,266
6,481
6,239
6,148

905
936
929
902

20,762
20,788
21,179
21,114

383,201
381,383
377,541
370,956

117,607
116,932
111,027
108,109

91,673
92,294
87,357
85,400

6,087
6,064
5,821
5,661

1,416
1,404
2,112
1,675

12,724
11,496
10,746
10,404

371
329
302
280

323
257
213
207

Dec.

3
10
17
24
31

24,741
22,032
24,614
24,766
27,714

14,096
14,943
13,969
16,198
16,436

4,439
4,731
4,742
4,409
4,823

7,312
7,480
8,059
7,908
8,436

1,035
1,008
1,006
1,085
1,074

26,160
26,287
26,403
26,909
27,400

387,138
387,430
391,649
393,010
399,926

121,626
119,924
124,151
122,445
131,464

95,294
95,037
96,919
96,746
102,512

5,649
5,795
5,943
6,160
6,381

1,937
1,284
2,786
1,306
1,277

13,278
12,431
12,837
12,757
15,233

369
336
338
322
411

228
191
208
228
255

Jan.

7
14

23,733
22,675
21,658
19,405

14,694
14,147
15,931
16,372

4,670
4,695
4,534
4,517

8,453
7,501
7,174
7,410

1,078
1,076
1,120
1,076

26,599
26,809
26,654
26,937

389,482
386,053
381,294
379,045

123,535
119,494
116,455
112,005

95,953
95,054
91,511
88,533

5,976
5,525
5,518
5,501

2,312
1,280
2,334
1,702

13,515
12,152
11,716
10,921

356
326
332
312

261
215
223
217

1976

21

28

For notes see p. A-l 8 and A-22.




F E B R U A R Y 1976 • W E E K L Y R E P O R T I N G B A N K S

A 21

ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKSA—Continued
(In millions of dollars)
Deposits (cont.)
Time and savings

D e m a n d (cont.)

IPC
Certified
and
officers'
checks

Reserves
for—

Borrowings
from—

Total 6
Savings

Other

States
and
political
subdivisions

Domestic
interbank

Foreign
govts. ^

Federal
funds
purchased
etc. 7

Other
liabilities,
etc. 8
F.R.
Banks

Securities

Total
capital
Wednesday

Other

Large banks—
Total
1975
,239
,174
,630
,241

11,541
11,498
11,646
11,581

51,J
48,885
52,805
48,421

17
2,771
2,271
46

4,051
4,124
4,100
4,005

23,844
24,908
24,221
23,762

5,269
5,305
5,429
5,448

34,238
34,208
34,112
34,201

Jan.

21,487
21,577
21,951
22,343
22,228

,146
,212
,271
,441
,502

11,400
11,194
11,270
11,216
11,164

48,467
49.308
47,821
50.309
44,074

26

23,416
24,154
24,701
24,705
24,727

5,820
5,878
5,830
5,720
5,582

36,430
36,418
36,295
36,395
36,544

Dec.

22
1,214
143

4,203
4,367
4,411
4,472
4,332

22,524
22,668
22,484
22,348

8,071
7,918
7,826
7,J

11,044
10,539
10,315
10,138

52,383
53,813
49,716
53,770

6
799
77

3,966
3,718
3,413
3,530

23,678
23,592
23,106
23,053

5,479
5,445
5,430
5,417

36,809
36,781
36,908
36,961

6,330
7,262
6,120
6,487

228,213 58,672 122,069 25,633
227,145 58,606 121,434 25,249
227,222 58,658 120,898 25,307
226,719 58,740 120,978 25,106

6,413
5,868
6,998
6,039
6,202

225,877
226,082
226,181
227,406
227,729

67,550
67,749
67,838
67,947
68,445

116,064
116,119
115,550
116,009
115,961

6,237
6,247
6,408
6,110

226,840
226,521
225,389
225,345

69,891
70,627
71,670
72,442

113,928
113,220
111,619
111,138

1

8
15
22
29
3

10

17
24
31
1976
Jan.

New York

7
14
21
28

City

1975
2,726
3,616
2,921
3,420

49,187
48,636
48,216
48,060

5,082
5,090
5,095
5,101

29,402
28,966
28,680
28,567

1,651
1,599
1,536
1,524

4,409
4,314
4,302
4,181

7.167
7,120
7,075
7.168

12,750
11,341
13,712
11,653

2,956
2,467
3,404
2,616
2,491

44,315
43,872
43,441
43,617
43,140

5,860
5,883
5,918
5,927
5,981

25,869
25,617
25,330
25,471
25,142

1,070
1,077
980
951
847

3,166
3,096
3,118
3,147
3,136

7,561
7,397
7,212
7,163
7,061

12,506
12,344
11,049
11,985
8,591

2,547
2,735
3,109
2,672

46,104
45,811
45,041
44,719

7,988
8,079
8,191
8,320

25,518
25,277
24,612
24,378

1,447
1,390
1,369
1,329

3,036
3,043
3,059
3,094

7,159
7,022
6,869
6,660

14,297
14,710
12,165
13,732

1,440
1,445

983

1,385
1,566
1,562
1,526

8,261
9,580
8,384
8,160

1,487
1,485
1,524
1,520

8,919
8,908
8,876
8,896

Jan.

8
15
22
29

2,291
2,453
2,534
2,616
2,583

8,146
8,505
9,256
8,984
8,905

1,679
1,717
1,690
1,684
1,613

9,860
9,881
9,863
9,868
9,918

Dec.

3
10
17
24
31

2,054
1,904
1,682
1,838

8,806
8,943
8,924
8,818

1,693
1,691
1,628
1,630

10,324
10,328
10,357
10,379

1976

195
70

Jan.

7
14
21
28

Outside
New York City
1975
3,604
3,646
3,199
3,067

179,026
178,509
179,006
178,659

53,590
53,516
53,563
53,639

92,667
92,468
92,218
92,411

23,982
23,650
23,771
23,582

3,830
3,860
4,328
4,060

4,374 39,139
4,378 37,544
4,571 39,093
4,413 36,768

3,457
3,401
3,594
3,423
3,711

181,562
182,210
182.740
183^789
184,589

61,690
61,866
61,920
62,020
62,464

90,195
90,502
90,220
90,538
90,819

20,417
20,500
20,971
21,392
21,381

4,980
5,116
5,153
5,294
5,366

3,839
3,797
4,058
4,053
4,103

3,690
3,512
3,299
3,438

180,736
180,710
180,348
180,626

61,903
62,548
63,479
64,122

88,410
87,943
87,007
86,760

21,077
21,278
21,115
21,019

5,035
4,875
4,767
4,714

3,885 38,086
3,517 39,103
3,446 37,551
3,478 40,038

35,961
36,964
36,772
38,324
35,483

17
,331
826
46

2,666
2,558
2,538
2,479

15,583
15,328
15,837
15,602

3,782
3,820
3,905
3,928

25,319
25,300
25.236
25,305

Jan.

26

1,912
1,914
1,877
1,856
1,749

15,270
15,649
15,445
15,721
15,822

4,141
4,161
4,140
4,036
3,969

26,570
26,537
26,432
26,527
26,626

Dec.

22
231
143

6
604
7

1,912
1,814
1,731
1,692

14,872
14,649
14,182
14,235

3.786
3,754
3,802
3.787

26,485
26,453
26,551
26,582

1

8
15
22
29
3

10

17
24
31
1976

For notes see p. A-18 and A-22.




Jan.

7
14
21
28

W E E K L Y R E P O R T I N G B A N K S • F E B R U A R Y 1976

A 22

ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKSA—Continued
(In millions of dollars)
Memoranda

Wednesday

Large

Large negotiable
time C D ' s
included in time
Total
and savings deposits 1 1
Total
loans
Deloans
and
mand
(gross) invest- deposits
ments
adadjusted 9 (gross) justed 1 0
Issued Issued
adTotal
to
to
justed 9
IPC's others

Savings ownership categories
All other large
time deposits 1 2

Total

Issued
to
IPC's

Individ- Partuals
nerDoand
ships
mestic
nonand
governAll
Issued profit
cormental o t h e r 1 4
orgato
poraunits
niza- tions for
others
tions p r o f i t 1 3

Gross
liabilities of
banks
to
their
foreign
branches

banks—
Total
1975

Jan.

Dec.

2,821

8
15
22
29

301,652
298,164
293,140
292,501

389,345
385,063
378,266
376,525

105,640
105,566
101,428
101,930

92,483
91,626
91,620
91,265

64,160
63,396
62,908
62,692

28,323
28,230
28,712
28,573

37,752
37,721
37,821
37,533

20,670
20,635
20,713
20,867

17,082
17,086
17,108
16,666

58,673
58,611
58,656
58,741

3

282,104
282,484
284,858
284,474
285,499

380,373
382,406
385,686
384,408
385,844

104,320
107,619
106,963
106,414
112,124

83,597
83,623
83,316
83,545
83,088

56,615
56,687
56,224
56,389
56,037

26,982 32,557
26,936 32,446
27,092 32,718
27,156 33,366
27,051 33,382

18,336
18,251
18,051
18,115
18,245

14,221
14,195
14,667
15,251
15,137

66,686
66,708
66,725
66,775
67,225

548
674
765
859
905

243
288
274
251
252

2,911
3,298
5,162
4,136
4,066

283,461
280,298
278,548
275,812

384,430
381,612
377,928
375,599

108,552
108,374
104,882
103,799

80,060
78,753
77,010
75,866

53,767
53,012
51,582
50,984

26,293
25,741
25,428
24,882

33,774
33,982
33,932
32,552

18,181

17,995
18,291
17,159

15,593
15,987
15,641
15,393

68,508
69,005
69,779
70,301

986
1,141
1,347
1 ,516

336
417
484
563

3,401
3,350
3,449
3,118

21,497 10,664
21,014 10,510
20,827 10,391
20,703 10,403

9,466
9,547
9,408
9,386

5,644
5,675
5,560
5,582

3,822
3,872
3,848
3,804

5,082
5,090
5,095
5,101

1,268
2,124
1,323

18,977 10,290
18,738 10,134
18,382 9,993
18,604 9,952
18,146 9 , 8 1 '

6,914
6,839
6,814
6,730
6,779

4,637
4,623
4,628
4,478
4,590

2,277
2,216
2,252
2,189

5,777
5,772
5,817
5,826
5,879

2,161
2,311
4,072
3,218
3,169

72,761 91,124 24,577 27,175
71,232 89,758 24,987 26,729
70,805 88,444 24,135 26,073
69,413 87,525 23,822 25,864

17,414
17,118
16,588
16,458

9,761
9,611
9,485
9,406

7,557
7,586
7,985
6,971

4,910
4,783
5,285
4,394

2,647
2,803
2,700
2,577

7,832
7,851
7,940
8,036

17,659
17,720
18,321
18,170

10

17
24
31

3,451
2,170
2,061

1976
Jan.

7
14
21

28
New York City
1975
Jan.

8
15
22
29

75,808
74,565
72,390
72,134

91,290
89,481
86,830
86,347

23,641 32,161
23,437 31,524
22,458 31,218
23,208 31 ,106

Dec.

3

68,621
68,631
69,776
69,719
69,695

86,182

29,267
28,872
28,375
28,556
27,957

10

17
24
31

22,650
86,113 23,442
87,323 23,049
86,861 22,798
87,017 24,884

2,186

1,080

1976
Jan.

7
14

21

28

63

120
126
144

2,507
2,672
2,598
2,309

Outside
New York City
1975
Jan.

8
15
22
29

255,844
223,599
220,750
220,367

298,055
295,582
291,436
290,178

81,999
82,129
78,970
78,722

60,322
60,102
60,402
60,159

42,663
42,382
42,081
41,989

28,286
28,174
28,413
28,147

15,026
14,960
15,153
15,285

13,260
13,214
13,260
12,862

53,591
53,521
53,561
53,640

Dec.

3
10
17
24
31

213,483
213,853
215,082
214,755
215,804

294,191
296,293
298,363
297,547
298,827

81,670
84,177
83,914
83,616
87,240

54,330
54,751
54,941
54,989
55,131

37,638 16,692 25,643
37,949 16,802 25,607
37,842 17,099 25,904
37,785 17,204 26,636
37,891 17,240 26,603

13,699
13,628
13,423
13,637
13,655

11,944
11,979
12,481
12,999
12,948

60,909
60,936
60,908
60,949
61,346

531
651
737
827
870

219
247
241
223
226

750
987
1,090
918
897

Jan.

7
14
21
28

210,700
209,066
207,743
206,399

293,306
291,854
289,484
288,074

83,975
83,387
80,747
79,977

52,885
52,024
50,937
50,002

36,353
35,894
34,994
34,526

13,271 12,946 60,676
13,212 13,184 61,154
13,006 12,941 61,839
12,765 12,816 62,265

936
1,079
1,264
1,417

273
297
358
419

894
678
851
809

1,553
1,327
847
981

1976

• See p. A-l 8.
1
Includes securities purchased under agreements to resell.
2 Includes official institutions and so forth.
3
Includes short-term notes and bills.
4
Federal agencies only.
5 Includes corporate stocks.
6 Includes U.S. Govt, and foreign bank deposits, not shown separately.
7 Includes securities sold under agreements to repurchase.
8 Includes minority interest in consolidated subsidiaries.
9
Exclusive of loans and Federal funds transactions with domestic commercial banks.




16,532
16,130
15,943
15,476

26,217
26,396
25,947
25,581

1° 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.
12
All other time deposits issued in denominations of $100,000 or more
(not included in large negotiable CD's).
13
Other than commercial banks.
14
Domestic and foreign commercial banks, and official international
organizations.

F E B R U A R Y 1976 • B U S I N E S S L O A N S OF B A N K S

A 23

COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS
(In millions of dollars)
Outstanding

Net change during—
1975

1976

Industry

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:
F o o d , liquor, and tobacco
Textiles, apparel, and leather
Petroleum refining
Chemicals and rubber
Other nondurable goods
Mining, including crude petroleum
and natural gas
T r a d e : C o m m o d i t y 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
Comm. paper included in total classified loans
Total commercial and industrial loans
of large commercial banks

1975

Jan.
28

Jan.
21

Jan.
14

Jan.
6

Dec.
31

2,043
5,545
3,188
2,016
3,605'

2,040|
5,596
3,227
2,017
3,614

2,065
5,636
3,204|
2,005
3,610|

2,069
5,686
3,097
2,015
3,593

2,072
5,757
3,056
1,974
3,453

-29
-212
132
42
152

3,556
2,6841
2,353
2,592
1,889

3,584
2,690
2,306
2,584
1,890

3,597
2,706
2,327
2,617
1,877

3,702
2,730
2,415
2,653
1,890

3,784|
2,691
2,365
2,691
1,805

-228
-7

5,940
5,953
1,660| 1,587 1,581
5,495
5,444
5,479
5,6701 5,791
5,686
6,074
6,0201 5,969
2,095
1,984
1,951
7,000
6,995
6,951
5,124
5,134
5,107
10,7601 10,815 10,820|
10,002 9,897| 10,387
4,945
3,871' 4,524

$

5,992| 5,974
1,615
1,699
5,438
5,463
5,752| 5,658
5,953
6,001
1,876
1,928
6,696
6,932
5,053
5,079
10,748 10,747
9,618
9,709
3,685
3,855

Jan.

Dec.

-12

-99
84
39

5,935

-39
-121

-108

-299
- 8 1

-72
-769

-1,260|

137
5,504
5,4091 5,417
5,288
5,425
97,322] 98,002 98,483! 99,470 100,044 - 2 , 7 2 2
437

401

117,095 118,028 118,653 119,529 121,017

-561
-3,922

1975

1975

75

2nd
half

1st
half

IV

III

-13
-887
-198
-277
—174|

-23
18
49
-642] -1,670 -1,314
-296
—454| - 3 0 2
-211
—749
-188
-316
—688
-718

-155

62
-783
-2561
-472
-514

245
-185
-144
40
-60

170
— 80|
-51
-169
-73

459
-477
-231
-178
—270|

13
-55
1
-253
-148

-519
-148
283
-321
10

691
37
-70|
-593
155
-1
64|

789
339
-98
-208
133
-49
31
— 370|
281
612
2,855

285
137
-78
-310
-122

263
866
928

-39
170
-67
13
—46|
-34
35
-145
59]
190|
1,395

1,074
109
-158
476
-3281
-972
- 1 7 6 -1,108
-534
-518
-212
-398
11
-142]
-323
-1601 - 3 5 5
17
-404] - 2 0 0 -1,423
-427,
-77
-622
- 1 4 -1,120
— 388|
6271 - 3 7 2
-65
28 2,685
599

154
1,707

1,068|

-216

-130
-151

-116

254
1,861

-221
1221
-168

871

-111

-231
-57
-295
15
-170

222
535
1,877 - 2 , 2 7 6

757]
294
- 3 9 9 -10,673

44

-33
961

233
-3,9461

472 - 1 , 6 0 9
-532
-287
-113
228
-431
-260
-418
-283

2,011 - 2 , 8 7 9

240
-3,845

-868

-10,081

F o r notes see table below.

' T E R M " COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS
(In millions of dollars)
Net change d u r i n g -

Outstanding
Industry

Durable goods manufacturing:
Primary metals
Machinery
Transportation equipment
Other fabricated metal
products
Other durable goods
Nondurable goods manufacturing:
F o o d , liquor, and tobacco
Textiles,
apparel,
and
leather
Petroleum refining
Chemicals and r u b b e r . . . .
Other nondurable g o o d s .
Mining, including crude petroleum and natural gas,
T r a d e : Commodity dealers.
Other w h o l e s a l e . . , .
Retail
Transportation
Communication
Other public utilities
Construction
Services
All other domestic loans . . .
Foreign commercial and industrial loans
Total loans.

Nov.
26

Oct.
29

Sept.
24

June
25

May
28

IV

1,286
3,825
1,722]

1,269
3,864
1,725

1,288
3,977
1,740

1,280
4,269
1,726

34,
—424|
-78

50
-240]
-47

4
-94
68

74
-74]
-1

85
-664
-117

1,228
2,042

1,196
2,058

1,222
2,090

1,245
2,122

-244]
-189

46]
-78

—161

—90|

115
-140]

-187
-272

1,616

107

-43]

—47

-202!

58

1,075
1,611
1,784
1,114

-108

258
-97
-87

-63
226
-84
13

I3j
-35
-32]
-105

-103
123
-140
-255

197
-2
-121
-147
-99
-2
11
117
-290]
176

-164]
-5
-42]
-31
-26]
53
71
-97
-102
-142

Dec.
31

1,341
3,117
1,686

1,372
3,313
1,615

1,381
3,451
1,727

1,320|
3,538
1,624]

1,338
3,737
1,693

1,041
1,874]

1,024|
1.823 1

1,087
1,905

1,175
1,950]

1,268
2,012

1,547

1,578

1,544]

1,451

1,471

1,461

1,440|

1,514]

1,032
1,859
1,588
925

995
1,831

1,072

1,549
955

1,074|
1,914|
1,605
995

1,103
1,967]
1,665
1,056

1,077]
1,889
1,645
1,023

1,116
1,828
1,678
1,085

1,095
1,709
1,762
1,143

-136
-43
-168

3,867
168
1,308
2.115
4,324
1,112
3,942
2,207
5,082
3.116

3,896]
162
1,403
2,150
4,420
1,122
4,027
2,267
5,097
3,054

3,847
150
1,319
2,153
4,391
1,132
3,966
2,359
5,122
3,244

3,754
148
1,371
2,139
4,405
1,149
3,902
2,367
5,010
3,257

3,801
152]
1,344
2,111
4,399
1,136
4,018
2,360
5,155
3,232

3,734]
148
1,329
2,136
4,425
1,133
4,045
2,314
5,140
3,258

3,646
140
1,344
2,143
4,424
1,159
4,047
2,291
5,246|
3,186

637
22
-43
-157
-1
-51
13
-178]
13
55

1,622

4,528
196
1.290
2,007
4.291
1,101
3,995
2,258
5,038
3,396

4,484]
172
1,276
1,996|
4,390
1,081
3,979]
2,181

2,999

2,921

47,109

5,135

3,299

1,860|

2,851

2,834

2,763

46,975 46,623 47,078 47,756

2nd
half

July
30

Aug.
27

Jan.
28

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.
F o r description of series see article "Revised Series on Commercial and
Industrial Loans by Industry," Feb. 1967 BULLETIN, p. 209.




1975

1975

1976

2,695

2,676

2,594

47,395 47,643 47,796

2,547
48,015

III

113
2
-10

17
-_34|
-79
45
-18

-14

703
24
-62

-150
10
-56
-60
-149
-31
49

158

169

66

71

304

-781

-40

-322

-1,081

-890

Commercial and industrial " t e r m " loans are all outstanding loans with
an original maturity of m o r e 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 24

D E M A N D D E P O S I T O W N E R S H I P • F E B R U A R Y 1976
GROSS DEMAND DEPOSITS OF INDIVIDUALS, PARTNERSHIPS, AND CORPORATIONS 1
(In billions of dollars)
Type of holdei
Class of bank, and quarter or month
Financial
business

Nonfinancial
business

Consumer

Foreign

All
other

Total
deposits,
IPC

All insured commercial banks:
1970—Dec

17.3

92.7

53.6

1.3

10.3

175.1

1971

Sept

17.9
18.5

91.5
98.4

57.5
58.6

1.2
1.3

9.7
10.7

177.9
187.5

1972—Mar

20.2
17.9
18.0
18.9

92.6
97.6
101.5
109.9

54.7
60.5
63.1
65.4

1.4
1.4
1.4
1.5

12.3
11.0
11.4
12.3

181.2
188.4
195.4
208.0

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

1974—Mar
June
Sept
Dec

18.9
18.2
17.9
19.0

108.4
112.1
113.9
118.8

70.6
71.4
72.0
73.3

2.3
2.2
2.1
2.3

11.0
11.1
10.9
11 .7

211.2
215.0
216.8
225.0

1975—Mar
June
Sept
Dec.3®

18.6
19.4
19.0
20.1

111.3
115.1
118.7
125.1

73.2
74.8
76.5
78.0

2.3
2.3
2.2
2.4

10.9
10.6
10.6
11.3

216.3
222.2
227.0
236.9

1971—Dec
1972—Dec
1973—Dec
1974—Dec

14.4
14.7
14.9
14.8

58.6
64.4
66.2
66.9

24.6
27.1
28.0
29.0

1.2
1.4
2.2
2.2

5.9
6.6
6.8
6.8

104.8
114.3
118.1
119.7

1975

14.8
14.4
14.1
15.0
14.2
15.1
15.0
14.4
14.7
15.1
15.4
15.6

65.6
63.1
63.2
63.3
63.1
65.1
65.3
64.6
65.5
66.7
68.1
69.9

29.2
27.9
28.2
30.1
29.2
29.5
29.8
29.1
29.6
29.0
29.4
29.9

2.2
2.3
2.2
2.2
2.3
2.2
2.2
2.0
2.1
2.2
2.2
2.3

6.6
6.2
6.4
6.5
6.2
6.2
6.5
5.9
6.2
6.3
6.4
6.6

118.3
113.9
114.1
117.0
115.0
118.1
118.7
116.1
118.1
119.3
121.6
124.4

Sept
Dec
1973—Mar

Weekly reporting banks:

Jan
Feb
Mar
May
June
July
Aug
Sept
Oct
Dec.*

1

from reports supplied by a sample of commercial banks. For a detailed
description of the type of depositor in each category, see June 1971

Including cash items in process of collection.

NOTE.—Daily-average balances maintained during month as estimated

BULLETIN, p . 4 6 6 .

DEPOSITS ACCUMULATED FOR PAYMENT OF PERSONAL LOANS
(In millions of dollars)
Class of
bank
All c o m m e r c i a l . . . .
Insured
National member
State m e m b e r . . . .
All member

Dec. 31,
1973
507
503
288
64
352

Dec, 31,
1974
389
387
236
39
275

June 30,
1975
338
335
223
36
260

Sept. 30,
1975

323
222
35
257

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 " C o u n t r y " categories, respectively
(hence the series are continuous over time).




Class of
bank
All member—Cont.
Other large banks 1
All other member i
All nonmember
Insured
Noninsured

Dec. 31,
1973

58
294
155
152
3

Dec, 31,
1974

69
206
115
112
3

June 30,
1975

74
186
79
76
3

NOTE.—Hypothecated deposits, as shown in this table, are treated one
way in monthly and weekly series for commercial banks and in another
way in call-date series. That is, they are excluded from "Time deposits"
and " L o a n s " in the monthly (and year-end) series as shown on p. A-14;
from the figures for weekly reporting banks as shown on pp. A-l 8-A-22
(consumer instalment loans); and from the figures in the table at the
bottom of p. A-l 3. But they are included in the figures for "Time deposits" and " L o a n s " for call dates as shown on pp. A-l4-A-l 7.

F E B R U A R Y 1976 • L O A N S A L E S BY B A N K S ; O P E N M A R K E T

A 25

PAPER

LOANS SOLD OUTRIGHT BY LARGE COMMERCIAL BANKS
(Amounts outstanding; in millions of dollars)
T o selected related institutions 1
By type of loan
Total
Commercial
and
industrial
1..
8..
15..
22..
29..

4,541
4,655
4,674
4.741
4.742

2,814
2,825
2,867
2,908
2,930

198
199
199
198
198

Nov.

5..
12..
19..
26..

4,771
4,716
4,740
4,701

2,893
2,869
2,877
2,846

197
205
205
205

Dec.

3..
10..
17..
24..
31..

4,677
4,441
4,416
r
4,486
4,375

2,800
2.597
2,575
2,650
2,530

201
207
207
204
206

1976—Jan.

7..
14..
21..
28..

4,424
4,369
4,355
4,292

2,618
2,617
2.598
2,522

205
205
205
208

1975—Oct.

1

To b a n k ' s own foreign branches, nonconsolidated nonbank affiliates of the bank, the bank's holding company (if
not a bank), and nonconsolidated nonbank subsidiaries of
the holding company.
NOTE.—Series changed on Aug. 28, 1974. F o r a comparison
of the old and new data for that date, see p. 741 of the Oct.
1974 BULLETIN. Revised figures received since Oct. 1974
that affect that comparison are shown in note 2 to this table
in the Dec. 1974 BULLETIN, p. A-27.

Real
estate

COMMERCIAL PAPER AND BANKERS ACCEPTANCES OUTSTANDING
(In millions of dollars)
Dollar acceptances

Commercial paper

All
I issuers
DealerDiplaced 2 rectly- 3
placed

Nonfinancial
companies'

13,645
17,085
21,1731
32,600
33,071'

2,332!
2,790
4,427
6,503
5,514|

10,556
12,184|
13,972
20,741
20,424

757
2,111
2,774
5,356
7,133

32,1261
34,721'
41,073

5,297
5,655
5,487

20,582
22,098
27,204|

6,247
6,968
8,382

51,954
49,144

4,860
4,611

32,562
31,839

14,532
12,694

51,675
52,403
50,811
51,605
51,297
48,742
49,331
49,783
48,246
50,437
49,557

5,029
5,167)
5,342
5,461
5,889
5,604
6,018
5,645
5,574
6,360
6,389

31,998
32,5041
31,205
32,126
32,801
31,093
31,241
32,145|
30,485
32,351
32,0481

14,648
14,732]
14,264
14,018
12,607
12,045
12,072]
11,993
12,187
11,726
11,1201

Accepting banks

F.R. Banks

Total
Dealer-1 Diplaced rectlyplaced

Others
Total

Own
bills

Bills
bought

Own
acct.

Foreign
corr. 6

Imports
into
United
States

Exports
from
United
States

3,134
1,997'

3,603
4,317
4,428
5,451
7,058

1,198
1,906
1,544
1,567
2,694

983
1,447
1,344
1,318
1,960

215
459
200
249
735

193
164
58
64
57

191
156
109
146
250

2,022
2,090
2,717
3,674
4,057

997
1,086]
1,423
1,889

2,601

829
989
952
1,153
1,561

1,449]
i,4r'
2,943]

7,889
6,898
8,892

3,480
2,706
2,837

2,689
2,006
2,318

791
700
519

261
106
68

254
179
581

3,894
3,907
5,406

2,834
2,531
2,273

1,546
1,909
3,499

1,875

6,769
6,518

17,553
18,484

3,789
4,226

3,290
4,685

499
542

611
999

1,756
1,109

11,398
12,150]

3,810|
4,023

3,709
4,067

1,799
1,778
1,673

6,774
7,305;
7,256
6,984
7,075'
7,2071
7,016
7,365
7,306
7,157
7,019

18,602
18,579
18,730
18,727
18,108
17,740
16,930
16,456
16,790
17,304
17,875

4,357
4,864
4.773
4,485
4,450
4.774
4,778
4,546
5,002
5,013
6,497

3,903
4,370
4,085
3,900
3,892
4,224
4,275
3,988
4,190
4,288
5,684

454
494
688
585
558
550
503
558
812
924
813

966
993
665
1,185
865
682
685
840
948
1,047
727

12,718
12,398
13,029
13,034
12,559
11,965
11,138
r
10,766|
10,538
10,760
10,372

4,120]
3,974
3,845
3,690|
3,665
3,466|
3,474|
3,305
3,313
3,467
3,545

4,3141
4,210
4,296
4,206
4,186[
4,080
3,865
3,806
3,783
3,947]

1,160
352|
524

1,226
1,938

1,800

1,601
1,529
1,547
1,635
1,493
1,514
1,590
1,671

1
Financial companies are institutions engaged primarily in activities
such as, but not limited to, commercial, savings, and mortgage banking;
sales, personal, and mortgage financing; factoring, finance leasing, and
o t h e r business lending; insurance underwriting; and other investment
activities.
2
As reported by dealers; includes all financial company paper sold in
the open market.
3
As reported by financial companies that place their paper directly
with investors.




Based on—

Held b y -

Bank-related 5

Financial
companies 1

560
325
263
235]
234]
319
329
304]
302]
284
279

3,*

4
Nonfinancial companies include public utilities and firms engaged
primarily in activities such as communications, construction, manufacturing, mining, wholesale and retail trade, transportation, and services.
5
Included in dealer- and directly-placed financial company columns.
Coverage of bank-related companies was expanded in Aug. 1974. Most
of the increase resulting f r o m this expanded coverage occurred in directlyplaced paper.
6
Beginning November 1974, the Board of Governors terminated the
System guarantee on acceptances purchased for foreign official accounts.

A 26F.R.BANKI N T E R E S T R A T E S • F E B R U A R Y 1976
PRIME RATE CHARGED BY BANKS
(Per cent per annum)
Effective date
1974—Apr. 11
19
25
May

Rate
10
10 Va

ioy4

17

m/ 2

5

12

7

11%
11%
11%
11

28
Nov.

4
14
25

3,

18,

Mar.

1975—July

5,

7%

Sept. 15

8

Oct. 27

73/4

24,

8
7%
71/2

May 20

71/4

June

7

9

Monthly average rate

71/4
71/2

Aug. 12

Nov.

5

7%

Dec.

2

1976—Jan.

12
21

m
1

81/4

18,

18, ,
28, ,

9VA
81/2

10,

Rate

m

9
m

10,

24,

July

Effective date

101/4
10
9%

28,

Feb.

11 VA
113/4

21

9,
15,

20,

11

June 26

Oct.

1975—Jan.

IO1/2

2
6

10

Rate

Effective date

6%

1974-- O c t .
Nov.
Dec.

11.68
10.83
10.50

1975-—Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

10.05
8.96
7.93
7.50
7.40
7.07
7.15
7.66
7.88
7.96
7.53
7.26

1976-—Jan.

7.00

10%
10%

NOTE.—Beginning Nov. 1971, several banks adopted a floating prime
rate keyed to money market variables. Rate shown is the predominant
prime rate quoted by a majority of large "money market" banks to large
businesses.

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)
All sizes

-9

10-99

100-499

1,000 and over

500-999

Center
Nov.
1975

Aug.
1975

Nov.
1975

Aug.
1975

Nov.
1975

Aug.
1975

Nov.
1975

Aug.
1975

Nov.
1975

Aug.
1975

Nov.
1975

Aug.
1975

Short-term
35 centers
New York City
7 Other Northeast
8 N o r t h Central
7 Southeast
8 Southwest
4 West Coast

8.29
7.99
8.53
8.15
8.70
8.37
8.67

8.22
8.00
8.43
8.12
8.41
8.28
8.45

9.56
9.34
10.01
9.13
9.68
9.38
9.73

9.42
9.28
9.83
9.01
9.58
9.21
9.67

9.15
8.98
9.36
8.97
9.39
8.94
9.29

9.02
8.89
9.33
8.79
9.21
8.76
9.21

8.62
8.52
8.83
8.51
8.74
8.44
8.77

8.48
8.44
8.71
8.39
8.57
8.27
8.51

8.38
8.17
8.61
8.27
8.62
8.18
8.76

8.29
7.93
8.67
8.25
8.32
8.32
8.28

8.04
7.87
8.15
7.91
8.36
8.15
8.56

8.00
7.93
8.01
7.94
7.94
8.06
8.37

8.45
8.41
8.01
8.81
8.35
8.46
8.39

8.41
8.44
8.19
8.65
8.30
8.49
8.32

8.68
8.30
8.78
8.56
7.50
8.11
9.10

8.20
8.03
8.72
8.49
10.12
8.42
8.09

8.07
8.37
7.98
8.12
7.50
8.49
7.83

9.01
8.86
9.56
8.50
9.54
8.67
9.28

9.16
9.46
8.02
9.90
9.36
8.97
9.49

8.54
8.01
9.28
8.23
8.04
8.62
8.47

8.79
8.32
9.33
8.97
8.54
8.65
9.21

8.89
8.80
8.60
9.81
8.30
8.18
8.47

Revolving credit
35 centers
New York City
7 Other Northeast
8 N o r t h Central
7 Southeast
8 Southwest
4 West Coast

8.26
8.08
8.63
8.62
9.50
8.51
8.15

8.17
8.37
8.09
8.27
7.82
8.41
8.02

9.93
9.01
10.38
10.11
10.12
9.18
9.71

9.73
8.91
10.11
9.70
10.07
9.36
9.27

9.15
8.90
8.91
9.57
9.53
9.15
8.99

9.06
8.94
9.01
9.58
9.47
8.88
8.84

8.,59
8.,54
8.,09
9.,34
8.,74
8.,62
8.,34

Long-term
35 centers
New York City
7 Other Northeast
8 N o r t h Central
7 Southeast
8 Southwest
4 West Coast




8.88
8.44
9.10
9.03
8.87
8.88
9.27

8.89
8.77
8.96
9.45
8.91
8.41
8.57

9.76
7.37
9.84
9.71
7.82
11.60
9.90

9.45
8.80
9.35
9.71
8.87
9.69
9.60

9.18
9.09
9.39
8.55
8.84
9.44
9.90

9.47
8.53
10.09
9.24
9.66
9.38
9.24

9.11
9.13
9.02
8.94
9.06
9.39
9.32

FEBRUARY 1976 • INTEREST RATES

A 27

MONEY MARKET RATES
(Per cent per annum)
U.S. Government securities 5
Prime
commercial
paper1

Finance

CO.

Prime
bankers'
acceptances,
90 days 3

Federal
funds
rate4

3-month bills^

6-month bills 6

4 to 6
months

paper
placed
directly,
3 to 6
months 2

5.10
5.90
7.83

4.89
5.69
7.16

4.75
5.75
7.61

4.22
5.66
8.21

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
10.05
6.26

7.72
5.11
4.69
8.15
9.87
6.33

7.23
4.91
4.52
7.40
8.62
6.16

7.31
4.85
4.47
8.08
9.92
6.30

7.17
4.66
4.44
8.74
10.51
5.82

6.458
4.348
4.071
7.041
7.886
5.838

6.39
4.33
4.07
7.03
7.84
5.80

6.562
4.511
4.466
7.178
7.926
6.122

6.51
4.52
4.49
7.20
7.95
6.11

6.49
4.67
4.77
7.01
7.71
6.30

6.90
4.75
4.86
7.30
8.25
6.70

7.37
5.77
5.85
6.92
7.81
7.55

1975—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec

7.39
6.36
6.06
6.11
5.70
5.67
6.32
6.59
6.79
6.35
5.78
5.88

7.30
6.33
6.06
6.15
5.82
5.79
6.44
6.70
6.86
6.48
5.91
5.97

n . 35
6.24
6.00
5.97
5.74
5.53
r
6.02
6.39
6.53
6.43
5.79
5.86

7.54
6.35
6.22
6.15
5.76
5.70
6.40
6.74
6.83
6.28
5.79
5.72

7.13
6.24
5.54
5.49
5.22
5.55
6.10
6.14
6.24
5.82
5.22
5.20

6.493
5.583
5.544
5.694
5.315
5.193
6.164
6.463
6.383
6.081
5.468
5.504

6.26
5.50
5.49
5.61
5.23
5.34
6.13
6.44
6.42
5.96
5.48
5.44

6.525
5.674
5.635
6.012
5.649
5.463
6.492
6.940
6.870
6.385
5.751
5.933

6.36
5.62
5.62
6.00
5.59
5.61
6.50
6.94
6.92
6.25
5.80
5.85

6.27
5.56
5.70
6.40
5.91
5.86
6.64
7.16
7.20
6.48
6.07
6.16

6.74
5.97
6.10
6.83
6.31
6.26
7.07
7.55
7.54
6.89
6.40
6.51

7.29
6.85
7.00
7.76
7.49
7.26
7.72
8.12
8.22
7.80
7.51
7.50

1976—Jan

5.15

5.27

5.16

5.08

4.87

4.961

4.87

5.238

5.14

5.44

5.71

7.18

6.85
6.70
6.44
6.08

6.93
6.88
6.59
6.23

6.70
6.75
6.56
6.23

6.79
6.59
6.38
6.04

6.36
6.06
5.82
5.73

6.547
6.239
6.045
5.887

6.46
6.23
6.01
5.73

6.980
6.571
6.243
6.156

6.91
6.53
6.25
6.06

7.16
6.74
6.51
6.29

7.61
7.20
6.88
6.66

8.21
7.97
7.87
7.67

5.88
5.88
5.75
5.75
5.75

6.00
6.03
5.88
5.88
5.88

6.00
6.00
5.63
5.78
5.78

5.83
5.79
5.77
5.79
5.80

5.65
5.17
5.24
5.24
5.28

5.685
5.602
5.279
5.471
5.520

5.58
5.50
5.37
5.49
5.54

5.974
5.792
5.483
5.796
5.933

5.82
5.71
5.65/
5.85
5.98

6.02
5.89
5.96
6.17
6.24

6.42
6.30
6.27
6.47
6.54

7.50
7.41
7.38
7.60
7.62

5.85
5.98
5.95
5.84

5.98
6.03
6.03
5.94

5.88
5.95
5.95
5.75

5.80
5.81
5.72
5.65

5.25
5.26
5.17
5.18

5.550
5.633
5.491
5.340

5.57
5.60
5.44
5.28

5.995
6.144
5.914
5.678

6.04
6.06
5.85
5.60

6.30
6.43
6.20
5.91

6.65
6.79
6.54
6.25

7.59
7.67
7.50
7.37

5.69
5.33
5.10
5.10
5.00

5.81
5.40
5.23
5.23
5.13

5.69
5.33
5.13
5.10
5.00

5.52
5.25
5.04
5.01
4.94

5.18
5.12
4.76
4.81
4.80

5.208
5.226
4.826
4.783
4.763

5.19
5.07
4.84
4.78
4.72

5.507
5.521
5.066
5.046
5.052

5.49
5.32
5.11
5.06
5.00

5.77
5.58
5.41
5.37
5.32

6.11
5.91
5.68
5.65
5.53

7.28
7.20
7.14
7.18
7.16

Period

90-119
days

1967
1968
1969
1970
1971
1972
1973
1974
1975

Rate
on new
issue

Market
yield

Rate
on new
issue

Market
yield

9- to 12-month issues
1-year
bill (mar- Other7
ket yield) 6

3- to 5year
issues 7

Week ending—
1975—Oct.

4
11
18
25

Nov.

1
8
15
22
29

Dec.

1976—Jan.

6
13
20
27

.

...

...

3
10
17
24
31

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 Beginning Aug. 15, 1974, the rate is the average of the midpoint of
the range of daily dealer closing rates offered for domestic issues; prior
data are averages of the most representative daily offering rate quoted by
dealers.
4
Seven-day averages of daily effective rates for week ending Wednesday.
Since July 19, 1973, the daily effective Federal funds rate is an average of
the rates on a given day weighted by the volume of transactions at these




rates. Prior to this date, the daily effective rate was the rate considered
most representative of the day's transactions, usually the one at which
most transactions occurred.
5 Except for new bill issues, yields are averages computed f r o m daily
closing bid prices.
6
Bills quoted on bank-discount-rate basis.
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 28

F.R.BANKINTEREST RATES • FEBRUARY 1976
BOND AND STOCK YIELDS
(Per cent per annum)
Government bonds

Corporate bonds

State and local
United
States
(longterm)

Period

Aaa utility

Stocks

By selected
rating

Dividend/
price ratio

By
group

Earnings/
price ratio

Total 1
Total i

Aaa

Baa

New
issue

Recently
offered

Aaa

Baa

Industrial

Railroad

Public
utility

Preferred

Common

Common

6.46
5.41
5.50
7.12
11.60

Seasoned issues
1970......
1971
1972
1973
1974
1975

6.59
5.74
5.63
6.30
6.99
6.98

6.42
5.62
5.30
5.22
6.19
7.05

6.12
5.22
5.04
4.99
5.89
6.42

6.75
5.89
5.60
5.49
6.53
7.62

8.68
7.62
7.31
7.74
9.33
9.40

8.71
7.66
7.34
7.75
9.34
9.41

8.51
7.94
7.63
7.80
8.98
9.46

8.04
7.39
7.21
7.44
8.57
8.83

9.11
8.56
8.16
8.24
9.50
10.39

8.26
7.57
7.35
7.60
8.78
9.25

8.77
8.38
7.99
8.12
8.98
9.39

8.68
8.13
7.74
7.83
9.27
9.88

7.22
6.75
7.27
7.23
8.23
8.38

3.83
3.14
2.84
3.06
4.47
4.31

1975—Jan ,
Feb
Mar.,
Apr.,
May,
June.
July.
Aug.,
Sept.,
Oct .
Nov..
Dec..

6.68
6.61
6.73
7.03
6.99
6.86
6.89
7.06
7.29
7.29
7.21
7.17

6.89
6.40
6.70
6.95
6.95
6.96
7.07
7.12
7.40
7.40
7.41
7.29

6.39
5.96
6.28
6.46
6.42
6.28
6.39
6.40
6.70
6.67
6.64
6.50

7.45
7.03
7.25
7.43
7.48
7.48
7.60
7.71
7.96
8.01
8.08
7.96

9.36
8.97
9.35
9.67
9.63
9.25
9.41
9.46
9.68
9.45
9.20
9.36

9.45
9.09
9.38
9.65
9.65
9.32
9.42
9.49
9.57
9.43
9.26
9.21

9.55
9.33
9.28
9.49
9.55
9.45
9.43
9.51
9.55
9.51
9.44
9.45

8.83
8.62
8.67
8.95
8.90
8.77
8.84
8.95
8.95
8.86
8.78
8.79

10.62

9.19
9.01
9.05
9.30
9.37
9.29
9.26
9.29
9.35
9.32
9.27
9.26

9.52
9.32
9.25
9.39
9.49
9.40
9.37
9.41
9.42
9.40
9.36
9.37

10.10

10.43
10.29
10.34
10.46
10.40
10.33
10.35
10.38
10.37
10.33
10.35

9.83
9.67
9.88
9.93
9.81
9.81
9.93
9.98
9.94
9.83
9.87

8.41
8.07
8.04
8.27
8.51
8.34
8.24
8.41
8.56
8.58
8.50
8.57

5.07
4.61
4.42
4.34
4.08
4.02
4.02
4.36
4.39
4.22
4.07
4.14

1976—Jan

6.94

7.08

6.22

7.81

8.70

8.79

9.33

8.60

10.24

9.16

9.32

9.68

8.16

3.80

9.46
9.37
9.24

9.34
9.25
9.19
9.13

9.47
9.49
9.46
9.42

8.83
8.86
8.81
8.72

10.35
10.37
10.36
10.33

9.30
9.30
9.26
9.22

9.36
9.37
9.38
9.36

9.87
9.91
9.89
9.84

8.69
8.74
8.46
8.49

4.20
4.17
4.12
4.11

9.10
8.94
8.68
8.69
8.68

9.40
9.37
9.34
9.31
9.28

8.66
8.63
8.60
8.58
8.57

10.33
10.31
10.26
10.20
10.16

9.21
9.18
9.17
9.15
9.13

9.36
9.34
9.33
9.32
9.30

9.79
9.75
9.71
9.64
9.59

8.48
8.42
8.22
7.97
8.04

4.08
3.91
3.78
3.74
3.75

121

20

30

30

40

14

500

10.10

8.28

•9.06'

Week ending—
1975—Dec.

6..
13..
20..
27..

7.23
7.26
7.17
7.09

7.30
7.31
7.28
7.28

6.52
6.53
6.49
6.49

7.97
7.98
7.95
7.95

1976—Jan.

3..
10..
17..
24..
31..

7.05
6.96
6.90
6.93
6.94

7.26
7.12
7.10
7.02
6.90

6.45
6.25
6.25
6.15
6.00

7.92
7.84
7.83
7.78
7.68

15

20

5

5

Number 2of
issues .. ,

8.64
8.62
8.66

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.
23,2 1967, there is no longer an Aaa-rated railroad bond series.
Number of issues varies over time; figures shown reflect most recent
count.

NOTE.—Annual yields are averages of weekly, 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 m o r e ; from Federal Reserve Bank of New York. (2) State and local

500

govt., general obligations only, based on Thurs. figures, from Moody's
Investors Service. (3) Corporate, rates for "New issue" and "Recently
offered" Aaa utility bonds, weekly averages compiled by the Board of
Governors of the Federal Reserve System; and rates for seasoned issues,
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 as of end of period.
Preferred stock ratio based on 8 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.

NOTES T O TABLES ON OPPOSITE P A G E :
Security Prices:
NOTE.—Annual data are averages of daily or weekly 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-28 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 b o n d ; Wed. closing prices. Common stocks, derived from component common stock prices. Average daily volume of trading, presently
conducted 5 days per week for 6 hours per day.




Stock Market Customer Financing:
1
Margin credit includes all credit extended to purchase or carry stocks
or related equity instruments and secured at least in part by stock (Dec.
1970 BULLETIN, p. 920). 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,
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.

F E B R U A R Y 1976 • S E C U R I T Y M A R K E T S

A 29

SECURITY PRICES
Common stock prices
New York Stock Exchange

Bond prices
(per cent of par)

Standard and Poor's index
(1941-43= 10)

Period

U.S.
Govt,
(longterm)

State
and
local

1970
1971
1972.
1973,
1974.
1975

60.52
67.73
68.71
62.80
57.45
57.44

1975-—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
1976-—Jan

New York Stock Exchange index
(Dec. 31, 1965=50)

Volume of
Amertrading in
ican
stocks
Stock (thousands of
Exshares)
change
total
index
(Aug.
31,
1973 = NYSE AMEX
100)

Industrial

Railroad

Public
utility

Total

Industrial

Transportation

Utility

Finance

72.3
80.0
84.4
85.4
76.3
68.9

61.6 83.22 91.29
65.0 98.29 108.35
65.9 109.20 121.79
63.7 107.43 120.44
58.8 82.85 92.91
56.2 85.17 96.15

32.13
41.94
44.11
38.05
37.53
37.48

54.48
59.33
56.90
53.47
38.91
41.21

45.72
54.22
60.29
57.42
43.84
45.73

48.03
57.92
65.73
63.08
48.08
51.88

32.14
44.35
50.17
37.74
31.89
30.73

37.24
39.53
38.48
37.69
29.82
31.45

54.64
70.38
78.35
70.12
49.67
46.62

96.63
113.40
129.10
103.80
79.97
83.15

10,532
15,381
16,487
16,374
13,883
18,568

3,376
4,234
4,447
3,004
1,908
2,150

59.70
60.27
59.33
57.05
57.40
58.33
58.09
56.84
55.23
55.23
55.77
56.03

70.9
74.1
70.9
69.5
69.6
69.8
68.5
68.3
66.1
66.1
66.2
67.4

56.4
56.6
56.2
55.8
56.6
56.7
56.6
55.6
55.8
56.0
56.3
56.1

72.56
80.10
83.78
84.72
90.10
92.40
92.49
85.71
84.62
88.57
90.07
88.74

80.50
89.29
93.90
95.27
101.05
103.68
103.84
96.21
94.96
99.29
100.86
94.89

37.31
37.80
38.35
38.55
38.92
38.97
38.04
35.13
34.94
36.92
37.81
37.07

38.19
40.37
39.55
38.19
39.69
43.65
43.67
41 .04
40.53
42.59
43.77
43.25

38.56
42.48
44.35
44.91
47.76
49.21
49.54
45.71
44.97
46.87
47.64
46.78

41.29
46.00
48.63
49.74
53.22
54.61
54.96
50.71
50.05
52.26
52.91
63.70

28.12
30.21
31.62
31.70
32.28
30.79
32.88
30.14
29.46
30.79
32.15
31 .61

29.55
31.31
31.04
30.01
31 .02
32.78
32.98
31.02
30.65
31 .87
32.83
32.75

44.85
47.59
47.83
47.35
49.97
52.20
52.51
46.55
43.38
44.36
47.48
43.86

68.31
76.08
79.15
82.03
86.94
90.57
93.28
85.74
84.26
83.46
85.60
82.50

19,661
22,311
22,680
20,334
21,785
r
21,286
20,076
13,404
12,717
15,893
16,795
15,859

2,117
2,545
2,665
2,302
2,521
2,743
2,750
1 ,476
1 ,439
1,629
1,613
1,977

57.75

69.7

57.03

96.86 108.45

41.42

46.99

51.31

56.72

35.77

35.23

48.83

91.47

56.95
57.59
58.02
57.79
57.76

68.1
69.1
69.5
70.2
69.9

56.5
56.9
57.3
57.1
56.8

38.12
40.06
41.39
42.42
42.35

'"44.35
46.20
46.87
47.49
47.81

47.65
49.71
51.13
52.20
52.56

52.76
55.12
56.80
56.86
58.82

32.94
34.49
35.60
36.73
36.72

33.41
34.45
35.08
35.68
36.00

45.17
47.63
48.77
49.32
50.23

83.22
87.74
90.98
93.19
95.38

Corporate
AAA

Total

32,794 3,070

Week ending—
1976-—Jan.
1976-

3
10
17
24
31

90.25
93.92
96.53
98.53
99.65

100.97
105.05
108.07
110.37
111.68

r

15,085
28,388
31,940
32,334
36,454

r

2,423
2,764
2,850
3,398
3,668

For notes see opposite page.

STOCK MARKET CUSTOMER FINANCING
(In millions of dollars)
Margin credit at brokers and banks
Regulated
End of period

1

:

Unregulated 3

Free credit balances
at brokers 4

By type

By source
Margin stock

Convertible
bonds

Subscription
issues

Nonmargin
stock
credit at
banks

Brokers Banks Brokers Banks Brokers Banks

1974—Dec..

4,836

3,980

856

3,840

815

137

30

2,064

'410

1975—Jan...
Feb..
Mar..
Apr..
May.
June.
July..
Aug..
Sept..
Oct..
Nov..
Dec..

4,934
5,099
5,164
5,327
5,666

4,086
4,269
4,320
4,503
4,847
5,140
5,446
5,365
5,399
5,448
5,519
5,540

848
830
844
824
819

3,950
4,130
4,180
4,360
4,700
4,990
5,300
5,220
5,250
5,300
5,370
5,390

806
783
800
781
779

134
136
134
138
140
146
143
142
145
144
146
147

29
34
30
30
27

1,919
1,897
1,882
1,885
1,883

410
480
515
505
520
520
555
515
470
545
490
475

For notes see opposite page.




Cash
accts.

Margin
accts.
r

l ,425
1,450
1,610
1,770
1,790
1 ,705
1,790
1,710
1,500
1,455
1,495
1,470
1,525

A 30

S T O C K M A R K E T C R E D I T ; S A V I N G S I N S T I T U T I O N S • F E B R U A R Y 1976

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

1974—Dec..
1975— J a n . .
Feb..
Mar..
Apr..
May.
June.
July..
Aug..
Sept..
Oct...
Nov..
Dec..

Total
debt
(millions
of
dollars) i

Equity class (per cent)
Net
credit
status

End of period

3,840

80 or
more

70-79

60-69

50-59

40-49

Under
40

4.3

4.6

8.8

13.9

23.0

45.4

5.6
5.9
6.5
7.1
7.0
7.4
6.0
5.5
5.1
5.5
5.2
5.3

3,950
4,130
4,180
4,360
4,700
4,990
5,300
5,220
5,250
5,300
5,370
5,390

7.3
7.2
8.0
8.7
9.1
9.9
8.3
6.8
7.3
6.7
6.7
6.9

13.5
14.6
15.3
16.1
16.7
18.3
13.9
11.3
10.6
11.2
12.2
11.6

28.1
28.5
25.8
23.5
21 .0
20.4
30.4
31.0
31.0
29.7
28.6
28.8

24.6
25.4
27.6
28.7
31.5
32.7
23.6
20.7
19.6
21.8
23.2
22.3

21.2
18.4
16.9
15.9
13.4
11.4
17.9
24.7
26.5
25.2
24.0
25.0

i N o t e 1 appears at the bottom of p. A-28.
NOTE.—Each customer's equity in his collateral (market value of collateral less net debit balance) is expressed as a percentage of current collateral values.

Equity class of accounts
in debit status

Total
balance
(millions
60 per cent Less than
or more 60 per cent of dollars)

1974—Dec.

41.1

32.4

26.5

7,013

1975—Jan..
Feb.
Mar.
Apr.
May
June
July.
Aug.
Sept.
Oct.,
Nov.
Dec.

41.1
42.2
44.4
45.2
44.5
45.9
45.6
43.5
45.3
44.4
45.3
43.8

39.3
40.1
40.1
41.1
43.2
43.1
41.1
40.6
38.9
40.1
40.2
40.8

19.8
17.8
15.5
13.7
12.3

7,185
7,303
7,277
7,505
7,601
7,875
7,772
7,494
7,515
7,362
7,425
7,290

11.0

13.1
16.0
15.8
15.5
14.5
15.4

NOTE.—Special miscellaneous accounts contain credit balances t h a t
may be used by customers as the margin deposit required for additional
purchases. Balances may arise as transfers based o n loan values of other
collateral in the customer's margin account or deposits of cash (usually
sales proceeds) occur.

MUTUAL SAVINGS BANKS
(In millions of dollars)
Securities

Loans

End of period

Mortgage

Other

U.S.
Govt.

State
and
local
govt.

Corporate
and
other1

Cash

Other
assets

Total
assets—
Total
liabilities
and
general
reserve
accts.

Deposits

Mortgage loan
commitments 2
classified by maturity
(in months)

Other General
liabili- reserve
ties
3 or
less

3-6

6-9

Over
9

1971
19723
197 3
197 4

62,069
67,563
73,231
74,891

2,808
2,979
3,871
3,812

3,334
3,510
2,957
2,555

385 17,674
873 21,906
926 21,383
930 22,550

1,389
1,644
1,968
2,167

1,711
2,117
2,314
2,645

89,369
100,593
106,651
109,550

81,440
91,613
96,496
98,701

2,024
2,566
2,888

6,118
6,956
7.589
7,961

1,047
1,593
1,250
664

627
713
598
418

463 1,310 3,447
609 1,624 4,539
405 1,008 3,261
726 2 , 0 4 0
232

1974—Nov...
Dec...

74,913
74,891

4,226
3,812

2,553
2,555

877 22,201
930 22,550

1,406
2,167

2,633
2,645

108,809
109,550

97,582
98,701

3,291
2,888

7,936
7,961

724
664

398
418

317
232

743 2,182
726 2,040

1975—Jan...
Feb. .
Mar..
Apr...
May..
June..
July..
Aug...
Sept..
Oct...
Nov.

74,957
75,057
75,127
75,259
75,440
75,763
76,097
76,310
76,429
76,655
76,855

4,287
4,658
4,736
4,407
4,593
4,492
4,396
4,405
4,487
4,481
4,550

2,571
2,677
2,975
3,419
3,616
3,744
3,965
4,187
4,279
4,368
4,601

1,706
1,856
2,101
1,841
2,077
2,088
1,835
1,730
1,783
1,805
1,872

2,663
2,709
2,672
2,780

110,130
111,376
113,045
113,821
115,252
116,751
117,709
118,254
118,643
119,089
120,073

99,211
100,149
102,285
102,902
104,056
105,993
106,533
106,745
107,560
107,812
108,480

2,948
3,211
2,712
2,849
3,080
2,594
2,970
3,255
2,778
2,950
3,215

7,971
8,016
8,049
8,071

726
654
824
913
955
973
957
981
1,011
950
972

400
360
312
335
383
510
463
431
372
368
323

225
217
294
312
300
195
266
237
256
275
222

620
579
564
538
573
565
526
573
499
394
379

967
1 ,017
1,095
1,121
1,137
1,240
1,436
1,451
1,495
1,523
1,551

22,979
23,402
24,339
24,994
25,579
26,470
26,976
27,104
27,033
27,106
27,421

2,811

2,954
3,004
3,067
3,136
3,152
3,223

1
Also includes securities of foreign governments and international
organizations and nonguaranteed issues of U.S. Govt, agencies.
2
Commitments outstanding of banks in New York State as reported to
the Savings Banks Assn. of the State of New York. D a t a include building
loans.
3
Balance sheet data beginning 1972 are reported on a gross-of-valuation-reserves basis. The data differ somewhat f r o m balance sheet data
previously reported by National Assn. of Mutual Savings Bank, which




1,810

8,116

8,164
8,208
8,254
8,304
8,328
8,378

1,971

1,810

1 ,994
2,098
2,211
2,243
2,212
2,222
2,138
1,987
1,896

were net of valuation reserves. F o r most items, however, the differences
are relatively small.
NOTE.—NAMSB d a t a ; 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.

F E B R U A R Y 1976 • S A V I N G S

A 31

INSTITUTIONS

LIFE INSURANCE COMPANIES
(In millions of dollars)
Business securities

Government securities
Total
assets

End of period

United
States

State and Foreign
local

Total

Bonds

Stocks

Mortgages

Real
estate

Policy
loans

Other
assets

197 1
197 2
197 3
197 4

222,102
239,730
252,436
263,817

11,000
11,372
11,403
11,890

4,455
4,562
4,328
4,396

3,363
3,367
3,412
3,653

3,182
3,443
3,663
3,841

99,805
112.985
117,715
119,580

79.198
86,140
91,796
97,430

20,607
26,845
25.919
22,150

75,496
76,948
81,369
86,258

6,904
7,295
7,693
8,249

17,065
18,003
20,199
22,899

11,832
13,127
14,057
14,941

1974—Nov.
Dec.

262,253
263,349

11,871
11,965

4,394
4,437

3,626
3,667

3,851
3,861

119,246
118,572

97.199
96,652

22,047
21.920

85,481
86,234

8,207
8,331

22,676
22,862

14,772
15,385

1975—Jan..
Feb.
Mar.
Apr.
May
June
July.
Aug.
Sept.
Oct..
Nov.

266,823
269,715
272,143
273,523
275,816
278,343
279,354
280,482
281,847
284,829
286,975

12,065
12,161
12,338
12,374
12,464
12,560
12,814
13,022
13,150
13,793
14,129

4,461
4,512
4,581
4,608
4,678
4,738
4,843
4,895
4,914
5,505
5,762

3,669
3,686
3,712
3,719
3,739
3,762
3,902
4,039
4,122
4,148
4,210

3,935
3,960
4,045
4,047
4,047
4,060
4,069
4,088
4,114
4,140
4,157

121.986
124,158
125,512
126,256
127,847
129,838
130,298
130,659
131,524
133,237
134,495

98,876
99,571
100,116
99,725
100,478
101,238
102,675
103,496
104,529
105,473
106,385

23,110
24,587
25,399
26,531
27,369
28,600
27,623
27,163
26,995
27,764
28,110

86,526
86,929
87,187
87,638
87,882
88,035
88.162
88,327
88,445
88,655
88,850

8,313
8,402
8,582
8,782
8,843
8,989
9,058
9,112
9,210
9,356
9,464

23,058
23,224
23,391
23,459
23,570
23,675
23,794
23,919
24,048
24,171
24,271

14,875
14,841
15,133
15,014
15,210
15,246
15,228
15,443
15,470
15,617
15,766

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.

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."

SAVINGS AND LOAN ASSOCIATIONS
(In millions of dollars)
Liabilities

Assets
End of period
Mortgages

197 1
1972
19735
1974 r

174,250
206,182
231,733
249,293

Investment
securities 1

Cash

18,185
2,857
21,574
2,781
21,055
23,240

Other

Total
assets—
Total
liabilities

10,731
12,590
19,117
22,991

206,023
243,127
271,905
295,524

Savings
capital

174,197
206,764
226,968
242,959

Net
worth2

13,592
15,240
17,056
18,436

Borrowed
money3
8,992
9,782
17,172
24,780

Loans
Other

5,029
6,209
4,667
3,244

Mortgage
loan commitments
outstanding
at end of
period 4

4,213
5,132
6,042
6,105

7,328
11,515
9,526
7,454

1974—Dec..

249,293

23,240

22,991

295,524

242,959

18,436

24,780

3,244

6,105

7,454

1975—Jan...
Feb...
Mar..
Apr..,
May.,
June.,
July..
Aug..
Sept..
Oct...
Nov..
Dec.f

249,719
250,828
252,442
254,727
257,911
261,336
264,458
267,717
270,600
273,596
275,919
278,704

25,390
27,003
28,304
29,047
30,648
30,880
32,054
31,694
30,786
31,652
32,498
30,920

23,252
23,669
24,210
24,868
25,520
25,786
26,311
27,127
27,745
28,145
28,610
28,785

298,361
301,500
304,956
308,642
314,079
318,003
322,823
326,538
329,131
333,393
337,027
338,409

246,227
249,524
256,017
258,875
262,770
268,978
272,032
273,504
277,201
279,465
281,711
286,040

18,586
18,816
18,654
18,882
19,128
18,992
19,266
19,495
19,414
19,663
19,919
19,821

23,355
21,895
20,373
19,845
19,317
18,881
18,765
19,237
20,052
20,327
20,434
20,724

3,057
3,049
3,275
3,608
4,105
4,446
4,771
4,995
5,128
5,207
5,164
5,185

7,136
8,216
6,637
7,432
8,759
6,706
7,989
9,307
7,336
8,731
9,799
6,639

7,887
8,787
10,050
11,653
12,557
12,363
12,611
12,673
12,585
11,748
11,365
10,663

1
Excludes stock of the Federal H o m e Loan Bank Board. Compensating
changes
have been made in " O t h e r " assets.
2
Includes net undistributed income, which is accrued by most, but not
all,3 associations.
Advances f r o m F H L B B and other borrowing.
4
D a t a comparable with those shown for mutual savings banks (on
opposite page) except that figures for loans in process are not included
above but are included in the figures for mutual savings banks.
5 Beginning 1973, participation certificates guaranteed by the Federal
H o m e Loan Mortgage Corporation, loans and notes insured by the
Farmers H o m e Administration, and certain other Govt.-insured mortgagetype 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 " C a s h " and "Investment securities"
are included in " O t h e r " assets. These amounted to about $2.4 billion at
the end of 1972.
NOTE.—FHLBB d a t a ; figures are estimates for all savings and loan
assns. in the United States. D a t a are based on monthly reports of insured
assns. and annual reports of noninsured assns. D a t a for current and
preceding year are preliminary even when revised.

A 32

F E D E R A L F I N A N C E • F E B R U A R Y 1976
FEDERAL FISCAL OPERATIONS: SUMMARY
(In millions of dollars)
U.S. budget

Means of

financing

Borrowings f r o m the public

Period
Receipts Outlays

Surplus
or
deficit
(-)

Fiscal year:
197 2
197 3
197 4
197 5

208,649 231,876 - 2 3 , 2 2 7
232,225 246,526 - 1 4 , 3 0 1
264,932 268,392 - 3 , 4 6 0
280,997 324,601 - 4 3 , 6 0 4

Half year:
1974—Jan.-June
July-Dec.,
1975-Jan.-June.
July-Dec.,

140,676
139,607
141,190
139,453

Month:
1974—Dec. r

24,944

1975—Ja n
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec

25,020
19,975
20,134
31,451
12,793
31,817
r
20,197
r
23,584
28,615
19,316
21,745
25,995

r

Public
debt
securities

29,131
30,881
16,918
58,953

138,032
2,647
5,162
l 53,147 - 1 3 , 5 4 0 18,429
171,202 - 3 0 , 0 1 2 40,524
184,545 - 4 5 , 0 9 2 43,460
-2,454

7,300

28,934 - 3 , 9 1 4
26,200 - 6 , 2 2 5
27,986 - 7 , 8 5 2
29,601
1,850
28,186 - 1 5 , 3 9 4
30,296
1,521
r
31,249 - 1 1 , 0 5 2
r
30,634 - 7 , 0 5 0
29,044
-429
32,425 - 1 3 , 1 0 9
29,401 - 7 , 6 5 6
31,792 - 5 , 7 9 7

27,398

1,475
5,571
9,949
7,081
11 ,418
5,030
5,051
9,472
r
5,935
8,352
4,800
9,850

Less: Investments by Govt,
Agency
accounts
Less:
securiSpecial
ties
notes i
Special
Other
issues

Less: Cash and
monetary assets

Equals:
Total

Treasury
operating
balance

Other
means
of
financing,
net 2

Other

19,442
19,275
3,009
50,853

1,362
2,459
-3,417
-1,570

1,108 6,255
-1,613 -4,129
889 - 2 , 0 7 7
1,891 - 6 , 9 2 8

295
150
,231
,186

-3,004
r
14,751
36,059
49,347

-1,215
-3,228
1,658
866

1,089
231
557 - 3 , 8 8 1
1,643 - 2 , 7 4 6
- 9 8 0 -4,368

2,276

-90

5,062

2,874

289

-23 -2,173
-306
1,224
5 -1,216
10
-37
3,296
- 6
4,131
-55
- 2 3 -2,427
6 2,384
9 -2,151
- 5 -3,656
-749
-3
1,860
-24

-42
-495
-79
-451
-440
276
-346
-94
-367
260
-390
-249

3,667
4,535
11,249
7,485
8,556
567
7,800
7,189
8,463
11,743
5,936
8,215

-58
-2,359
3,115
7,666
-5,757
-949
-3,390
-630
6,961
-203
-3,844
1,971

319
-132
285
1,847
-732
56
-1,373
-263
446
-348
392
166

-1,269
6,796
1,623
216 11,712
109
903 13,673
1,^40
8,112 -1,081
-1,069
426 8,297
-689
2,840
-423
5,272
-39 -4,739
-53

555
508

-801

3
178
349
-2,981
-1,511
-1,032
-627
815
-1,732
-281

Selected balances
Treasury operating balance
End
of
period
F.R.
Banks

Fiscal year:
197 1
197 2
197 3
1974
197 5

1,274
2,344
4,038
2,919
5,773

Calendar year:
197 3
1974
197 5

2,543
3,113
7,286

Month:
1974—De c
1975-Jan
Feb
Mar....
Apr
May....
June....
July....
Aug
Sept
Oct
Nov... .
Dec

3,541
2,885
4,271
8,364
7,040
5,773
2,776
2,349
8,074
8,517
4,919
7,286

Tax
and
loan
accounts

r

Other
depositaries 3

Borrowing from the public.

Total

Public
debt
securities

Less:
Special
notes i

Equals:
Total

Special
issues

Memo:
Debt of
Govt.sponsored
corps.—
Now
private 4

7,372
7,634
8,433
6,152
1,475

109
139
106
88
343

8,755
10,117
12,576
9,159
7,591

398,130
427,260
458,142
475,060
533,188

12,163
10,894
11,109
12,012
10,943

82,740
89,536
101,248
114,921
123,033

22,400
24,023
24,133
25,273
24,192

825
825
825
825
5
( )

304,328
323,770
343,045
346,053
396,906

37,086
41,814
51,325
65,411
76,092

7,760
2,745
1,159

70
70
7

10,374
'5,928
8,452

469,898
492,664
576,649

11,586
11,367
10,904

106,624
117,761
118,294

24,978
25,423
23,006

825
(5)

349,058
360,847
446,253

59,857
76,459

2,745

70

5,928

492,664

11,367

117,761

25,423

360,847

76,459

2,115
410
2,142
5,415
984
1,475
878
1,214
2,162
1 ,251
1,558
1,159

220
220
220
521
521
343
444
-141
529
559
9
7

5,876
3,515
6,633
14,299
8,545
7,591
4,098
3,423
10,765
10,327
6,485
8,452

494,139
499.710
509,659
516,740
528,158
533,188
538,240
547.711
553,647
561,999
566,799
576,649

11,343
11,037
11,042
11,004
10,998
10,943
10,920
10,926
10,935
10,931
10,928
10,904

115,588
116,812
115,596
115,606
118,902
123,033
120,606
122,990
120,839
117,183
116,434
118,294

25,380
23,886
24,807
24,355
23,915
24,192
23,847
23,752
23,385
23,645
23,255
23,006

364,514
369,049
380,298
387,783
396,339
396,906
404,707
411,895
420,358
432,102
438,037
446,253

76,921
75,964
76,392
77,124
75,140
76,092
77,173
76,659
77,026
78,016
78,451

1
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
Includes accrued interest payable on public debt securities until June
1973 and total accrued interest payable to the public thereafter; deposit
f u n d s ; miscellaneous liability (includes checks outstanding) and asset
accounts; seigniorage; increment on gold; fiscal 1974 conversion of interest receipts of Govt, accounts to an accrual basis; gold holdings, gold
certificates and other liabilities, and gold balance beginning Jan. 1974;
and net gain/loss for U.S. currency valuation adjustment beginning June
1975.
3 As of Jan. 3, 1972, the Treasury operating balance was redefined to
exclude the gold balance and to include previously excluded "Other deposi-




Agency
securities

Less:
Investments of
Govt, accounts

taries" (deposits in certain commercial depositaries that have been converted f r o m a time to a demand basis to permit greater flexibility in
Treasury cash management).
4
Includes debt of Federal home loan banks, Federal land banks, R . F . K .
Stadium F u n d , F N M A (beginning Sept. 1968), and Federal intermediate
credit banks and banks for cooperatives (both beginning Dec. 1968).
5
Beginning July 1974, public debt securities excludes $825 million of
notes issued to International Monetary Fund to conform with Office of
Management and Budget's presentation of the budget.
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 33

F E B R U A R Y 1976 • F E D E R A L F I N A N C E
FEDERAL FISCAL OPERATIONS: DETAIL
(In millions of dollars)
Budget receipts
Corporation
income taxes

Individual income taxes
Period
Pres.
Elec- N o n tion with- ReC a m - held funds
paign
Fundi

Total
Withheld

Gross
receipts

Net
total

Social insurance taxes
and contributions
Employment
taxes and
contribution 2
Selfempl.

Payroll
taxes

Fiscal year:
197 2
1973
197 4
197 5

208,649 83,200
232,225 98,093
264,932 "112,092
280,997 122,071

25,679 14,143
27,017 21,866
28 30,812 23,952
34,328 34,013

Half year:
1974—Jan.-June
July-Dec.
1975—Jan.-June
July-Dec.

140,676 59,100
'139,607 '61,378
141,190 60,694
139,453 59,549

28 24,60522,953 60,782 25,155 1,631 32,919 2,807 3,862
254 2 , 9 1 4
7,098 1,016 67,461 18,247 2,016 34,418
27,198 32,997 54,926 27,500 3,109 37,371 3,163 3,856
268 2,861
7,649 1,362 65,835 18,810 2,735 35,443

Month:
1974—De c

'24,944 '10,429

1975—Ja n
Feb
Mar
Apr
May
June
July
Aug
Sept
Nov
Dec

25,020
19,975
20,134
31,451
12,793
31,817
20,197
23,584
28,615
21,745
25,995

10,253
10,964
9,624
9,558
10,300
10,027
9,205
10,246
9,182
10,195
10,738

461

90

5,366
1,046
2,661
15 12,766
819
4,541
908
488
4,809
283
571

132
4,264
8,152
6,258
12,749
1,444
498
331
382
124
109

94,737
103,246
118,952
122,386

34,926
39,045
41,744
45,747

2,760
2,893
3,125
5,125

r

10,801 6,458

15,487
7,747
4,134
16,065
1,630
13,123
9,615
10,403
13,609
10,354
11,200

44,(
52,505
62,878
71,789

557
496
649
726
18
664
471
425
264
399
354

4,802
7,670
6,268
5,438
7,689
5,552
5,309
8,085
5,555
6,900
5,043

14

89

223
245
225
732
208
21
,743
557
340 2,209
373
92
444
1,257
75
251
716
110

2,084
2,187
2,279
2,314

41,671 7,878
39,774 8,761
46,667 7,790
40,886 8,759

356 5,441
402
352
373
388
350
413
374
372
400
377
395

Customs

Estate Misc.
and
regift ceipts 4

Net
total

2,032 4,357 3,437 53,914 15,477
2,371 6,051 3,614 64,542 16,260
3,008 6,837 4,051 76,780 16,844
3,417 6,770 4,466 86,441 16,551

190 4,982

1,745
1,275
7,228
5,819
1,192
10,241
1,838
1,045
6,277
1,072
6,884

Excise
taxes

U n - Other
net
empl.
reinsur.
ceipts 3

Refunds

5,673
8,979
6,870
8,126
10,588
6,431
6,128
9,713
6,280
7,994
5,565

3,287 5,436 3,633
3,188 4,917 3,921
3,334 5,035 5,369
3,676 4,611 6,711
1,701
1,958
1,718
1,927

2,521 2,601
2,284 ' 3 , 1 4 0
2,327 3,370
2,573 3,397

1,489

307

341

'298

1,351
1,277
1,160
1,166
1,373
1,464
1,514
1,394
1,430
r
l ,476
1,482

307
260
295
286
270
301
313
302
312
'310
347

385
399
356
317
459
412
503
430
431
'428
386

629
535
741
399
559
508
615
743
539
511
485

Budget outlays
General
science,
space,
and
tech.

Agriculture

Natural
ComComremun.
sources, merce
and
and
envir.,
region,
transp. develand
energy
opment

Total

National
defense

Fiscal year:
197 3
1974
1975'
1976'7....
TQ78
19777

246,526
268,392
324,601
373,535
97,971
394,237

75,072
78,569
86,585
92,759
25,028
101,129

2,956
3,593
4,358
5,665
1,334
6,824

'4,030
'3,977
3,989
4,311
1,157
4,507

4,855
2,230
1,660
2,875
742
1,729

'5,947
'6,571
9,537
11,796
3,289
13,772

'9,930
13,096
16,010
17,801
4,819
16,498

'5,529
'4,911
4,431
5,802
1,529
5,532

Month:
1975—Mar.
Apr.
May
June
July.
Aug.
Sept.
Oct..
Nov.
Dec.

27,986
29,601
28,186
30,296
'31,249
'30,634
29,044
32,425
29,401
31,792

7,435
7,555
8,000
7,854
7,307
8,229
6,923
8,192
7,533
7,981

503
109
408
557
531
448
47
362
419
290

379
368
384
256
476
402
398
398
405
409

347
275
42
179
270
117
507
312
196
175

723

1,415
1,088
995
1,289
2,256
2,165
1,899
1 ,965
1,203
1,994

309
383
453
402
568
'440
462
315
433

Period

Intl.
affairs

611

679
788
821
770
844
740
786
814

1
Collections of these receipts, totaling $2,427 million for fiscal y«ar
1973, were included as part of nonwithheld income taxes prior to Feb.
1974.
2
Old-age, disability, and hospital insurance, and Railroad Retirement
accounts.
3
Supplementary medical insurance premiums and Federal employee
retirement contributions.
4
Deposits of earnings by F. R. Banks and other miscellaneous receipts.
5 Consists of interest received by trust funds, rents and royalties on the
Outer Continental Shelf, and Govt, contributions for employee retirement.
6
Contains retroactive payments of $2,617 million for fiscal 1972.
7 Estimates presented in Budget of the U.S. Government, Fiscal Year




c

19

Education,
training, Health
and
employwelment,
fare
and
social
serv.

r

Veterans

Interest

General
Govt.,
law
enforce.,
and
justice

Revenue
shar.
and
fiscal
assistance

Undistrib.
offsetting
receipts 5

11,874
l 1,598
15,248
18,900
4,403
16,615

91,790
106,505
136,252
160,646
41,033
171,508

12,013
13,386
16,597
19,035
4,362
17,196

22,813
28,072
30,974
34,835
9,769
41,297

4,813
5,789
6,031
6,949
1,875
6,859

67,222
6,746
7,005
7,169
2,046
7,351

-12,318
-16,651
-14,075
-15,208
—3,589
-18,840

1,209
1,838
1,647
1,684
1,237
1,690
'1,571
896
1,653
1,515

12,154
12,379
11,968
14,158
13,092
12,431
12,738
13,575
12,612
13,721

1,811

1,466
1,468
1,412
1,367
1,447
1,334
1,518
1,624
1,704

2,656
2,716
2,607
2,521
2,637
2,672
2,859
2,957
2,996
2,820

568
416
479
759
'321
553
548
492
531
1,154

3
1,524

-1,236
-1,053
-873
-1,601
-1,094
-1,071
-1,068
-1,035
-887
-1,221

-14
1,625
213
4
1,592
15

1977. Figures for outlay categories exclude special allowances for contingencies and civilian agency pay raises totaling $200 million for fiscal
year 1976, $175 million for the transition quarter (TQ), and $2,260 million
for fiscal year 1977, and therefore do not add to totals.
8
Effective in calendar year 1976, the fiscal year for the U.S. Govt, is
being changed f r o m July 1 - J u n e 30 to Oct. 1-Sept. 30. The period July 1 Sept. 30 of 1976, data for which are shown separately f r o m fiscal year
1976 and fiscal year 1977 totals, will be a transition quarter.
NOTE.—Half years may not add to fiscal year totals due to revisions in
series that are not yet available o n a monthly basis.

A 34

U.S. G O V E R N M E N T S E C U R I T I E S • F E B R U A R Y 1976
GROSS PUBLIC DEBT, BY TYPE OF SECURITY
(In billions of dollars)
Public issues (interest-bearing)

End of period

Total
gross
public
debt i

Marketable
Total
Certificates

Bills

Notes

Bonds

2

Nonmarketable

Special

Convertible
bonds

Total 3

Foreign
issues 4

Savings
bonds
and
notes

1968—Dec.
1969—Dec.
1970—Dec.

358.0
368.2
389.2

296.0
295.2
309.1

236.8
235.9
247.7

75.0
80.6
87.9

101.2

76.5
85.4

85.3
69.9
58.6

2.5
2.4
2.4

56.7
56.9
59.1

4.3
3.8
5.7

52.3
52.2
52.5

59.1
71.0
78.1

1971—Dec..
1972—Dec.
1973—Dec.
1974—Dec.

424.1
449.3
469.9
492.7

336.7
351.4
360.7
373.4

262.0
269.5
270.2
282.9

97.5
103.9
107.8
119.7

114.0
121.5
124.6
129.8

50.6
44.1
37.8
33.4

2.3
2.3
2.3
2.3

72.3
79.5
88.2
88.2

16.8

20.6
26.0
22.8

54.9
58.1
60.8
63.8

85.7
95.9
107.1

118.2

1975—Jan..
Feb.
Mar.
Apr.
May
June
July.
Aug.
Sept.
Oct..
Nov.
Dec.

494.1
499.7
509.7
516.7
528.2
533.2
538.2
547.7
553.6
562.0
566.8
576.6

377.1
381.5
392.6
399.8
407.8
408.8
416.3
423.5
431 .5
443.6
447.5
457.1

286.1
289.8
300.0
307.2
314.9
315.6
323.7
331.1
338.9
350.9
355.9
363.2

120.0

123.0
124.0
127.0
131.5
128.6
133.4
138.1
142.8
147.1
151.1
157.5

131.8
132.7
141.9
145.0
146.5
150.3
153.6
155.2
158.5
166.3
166.1
167.1

33.3
34.1
34.1
35.3
36.8
36.8
36.7
37.8
37.7
37.6
36.7
38.6

2.3
2.3
2.3
2.3
2.3
2.3
2.3
2.3
2.3
2.3
2.3
2.3

88.8
89.4
90.4
90.3
90.6
90.9
90.4
90.1
90.3
90.5
89.3
91.7

21 .5
21.2
21.3
21.6

64.2
64.5
64.8
65.2
65.5
65.9
66.3
66.6
66.9
67.2
67.6
67.9

116.0
117.2
116.0
116.0
119.2
123.3
120.9
123.3
121.1
117.4
116.7
118.5

1976—Jan..

584.4

463.8

369.3

159.6

171.1

38.6

2.3

92.2

21 .6

68.2

118.1

1
Includes non-interest-bearing debt (of which $614 million on Jan. 31,
1976, 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, Rural Electrification Administration bonds, State and local government bonds, and Treasury deposit funds.

23.0
23.3
24.0
23.6
23.5
23.2
22.2
21.6

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 Monthly Statement of the Public Debt of the United
States, published by U.S. Treasury. See also second paragraph in NOTE to
table below.

OWNERSHIP OF PUBLIC DEBT
(Par value, in billions of dollars)
Held by—
End of
period

Total
gross
public
debt

U.S.
Govt,
agencies
and
trust
funds

F.R.
Banks

Held by private investors

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

1968—Dec
1969—Dec
1970—Dec

358.0
368.2
389.2

76.6
89.0
97.1

52.9
57.2
62.1

228.5
222.0
229.9

66.0
56.8
62.7

3.8
3.1
3.1

8.4
7.6
7.4

14.2
10.4
7.3

24.9
27.2
27.8

51.9
51.8
52.1

23.3
29.0
29.1

14.3
11.2
20.6

21.9
25.0
19.9

1971—Dec
1972—Dec
1973—Dec

424.1
449.3
469.9

106.0
116.9
129.6

70.2
69.9
78.5

247.9
262.5
2bl . 7

65.3
67.7
60.3

3.1
3.4
2.9

7.0
6.6
6.4

11.4
9.8
10.9

25.4
28.9
29.2

54.4
57.7
60.3

18.8
16.2
16.9

46.9
55.3
55.6

15.6
17.0
19.3

1974—Nov
Dec

485.4
492.7

139.0
141.2

81.0
80.5

265.3
271.0

53.7
55.6

2.5
2.5

5.9
6.1

11 .0

11.0

28.7
29.2

63.2
63.4

21.1
21.5

58.3
58.4

20.8
23.2

1975—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov.?

494.1
499.7
509.7
516.7
528.2
533.2
538.2
547.2
553.6
562.0
566.8

139.0
139.8
138.5
138.0
140.9
145.3
142.5
144.8
142.3
138.8
137.7

81.3
81.1
81.4
87.8
85.6
84.7
81.9
82.5
87.0
87.2
85.1

273.8
278.9
289.8
290.9
301.7
303.2
313.8
320.4
324.4
336.0
343.9

54.6
56.5
61.8
64.1
67.7
69.2
71.4
75.4
78.4
80.5
82.6

2.6
2.7
2.9
3.2
3.4
3.5
3.7
3.9
4.0
4.2
4.4

6.2
6.2
6.6
6.7
6.9
7.1
7.3
7.4
7.6
7.9
8.8

11.3
11.4
12.0
12.5
13.7
13.2
16.2
16.0
15.0
17.5
20.0

30.0
30.5
29.7
29.8
29.8
29.6
31.3
31.2
32.2
33.8
33.9

63.7
64.0
64.4
64.7
65.1
65.5
65.9
66.2
66.5
66.8
67.1

21.6
21.3
21.4
21.4
21.5
21.6
21.8
22.6
23.0
23.2
23.5

61.5
64.6
65.0
64.9
66.8
66.0
66.7
67.3
65.5
66.9
66.1

22.3
21.6
26.1
23.6
26.8
27.4
29.5
30.5
32.3
35.2
37.5

1
Consists of investments of foreign and international accounts in
the United States.
2
Consists of savings and loan assns., nonprofit institutions, corporate pensions 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 f u n d s ; 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 f u n d s
and add to other miscellaneous investors the holdings of certain
Govt.-sponsored but privately owned agencies and certain Govt, deposit
accounts. Beginning in July 1974, total gross public debt includes Federal
Financing Bank bills and excludes notes issued to the I M F ($825 million).

F E B R U A R Y 1976 • U.S. G O V E R N M E N T S E C U R I T I E S

A 35

OWNERSHIP OF MARKETABLE SECURITIES, BY MATURITY
(Par value, in millions of dollars)
\ Vithin 1 yeair
1-5
years

5-10
years

10-20
years

Over
20 years

26,552
33,785
28,339
41,658
42,209

88,564
81,715
85,311
111,795
112,270

29,143
25,134
27,897
26,439
26,436

15,301
15,659
14,833
14,302
14,264

6,079
6,145
6.764
10;546
10,530

674
631
588
237
207

935
1,589
1,812
2,629
2,562

6,418
7,714
7.823
7; 095
7,058

5,487
4,389
4,721
3,320
3,283

4,317
5,019
4,670
4,233
4,233

1,530
1,620
1,777
2,068
2,053

37,750
46,189
45,388
44,596
46,845

29,745
36,928
36,990
35,924
38,018

8,005
9,261
8,399
8,672
8,827

24,497
23,062
23,282
30,183
30,518

6,109
7,504
9,664
6,348
6,463

1,414
1,577
1,453
1,479
1,507

136
184
713
2,532
2,601

180,243
170,746
180,999
251,160
255,860

91,063
93,162
100,298
145,335
150,078

73,451
70,227
82,168
114,978
119,258

17,612
22,935
18,130
30,357
30,820

57,649
50,939
54,206
74,517
74,694

17,547
13,241
13,512
16,771
16,690

9,570
9,063
8,710
8,590
8,524

4,413
4,341
4.274
5,946
5,876

52,440
45,737
42,755
63,309
64,398

18,077
17,499
14,873
27,778
29,875

10,289
7,901
6,952
15,335
17,481

7,788
9,598
7,921
12,443
12,394

27,765
22,878
22,717
30,245
29,629

5,654
4,022
4,151
4,368
4,071

864
1,065
733
599
552

80
272
280
318
271

Mutual savings banks:
1972 Dec. 31
1973 Dec. 31
1974 Dec. 31
1975 Nov. 30
Dec. 31

2,609
1,955
1,477
3,183
3,300

590
562
399
876
983

309
222
207
458
554

281
340
192
418
429

1,152
750
614
1,499
1,524

469
211
174
451
448

274
300
202
234
232

124
131
88
124
112

Insurance companies:
1972 Dec. 31
1973 Dec. 31
1974 Dec. 31
1975 Nov. 30
Dec. 31

5,220
4,956
4,741
7,105
7,565

799
779
722
1,827
2,024

448
312
414
1,317
1,513

351
467
308
510
511

1,190
1,073
1,061
2,235
2,359

976
1,278
1,310
1,487
1,592

1,593
1,301
1,297
1,155
1,154

661
523
351
401
436

Nonfinancial corporations:
1972 Dec. 31
1973 Dec 31
1974 Dec. 31
1975 Nov. 30
Dec. 31

4,948
4,905
4,246
9,258
9,365

3,604
3,295
2,623
7,090
7,105

1,198
1,695
1,859
5,866
5,829

2,406
1,600
764
1,224
1,276

1,198
1,281
1,423
1,854
1,967

121
260
115
188
175

25
54
26
84
61

1
15
59
41
57

Savings and loan
1972 Dec.
1973 Dec.
1974 Dec.
1975 Nov.
Dec.

2,873
2,103
1,663
2,874
2,793

820
576
350
938
914

498
121
87
552
518

322
455
263
386
396

1,140
1,011
835
1,554
1,558

605
320
282
263
216

226
151
173
96
82

81
45
23
23
22

10,904
9,829
7,864
9,381
9,285

6,159
5,845
4,121
5,459
5,288

5,203
4,483
3,319
4,686
4,566

956
1,362
802
773
722

2.033
1,870
1,796
1,807
1,761

816
778
815
736
782

1,298
1,003
800
817
896

598
332
332
561
558

101,249
101,261
118,253
156,049
159,154

61,014
64,606
77,210
101,367
103,889

55,506
55,493
69,330
86,765
88,797

5,508
9,113
7,880
14,602
15,092

23,171
22,076
25,760
35,323
35,894

8,906
6,372
6,664
9,278
9,405

5,290
5,189
5,479
5,604
5,546

2,868
3,023
3,141
4,477
4,420

Type of holder and date

Total
Total

Bills

Other

269,509
270,224
282,891
355,879
366,191

130,422
141,571
148,086
192,797
199,692

103,870
107,786
119,747
151,139
157,483

U.S. Govt, agencies and trust funds:
1972 Dec. 31
1973 Dec. 31
1974—Dec. 31
1975 Nov. 30
Dec. 31

19,360
20,962
21,391
19,582
19,347

1,609
2,220
2,400
2,866
2,769

Federal Reserve Banks:
1972 Dec. 31
1973 Dec. 31
1974 Dec. 31
1975—Nov. 30
Dec. 31

69,906
78,516
80,501
85,137
87,934

All holders:
1972 Dec.
1973 Dec.
1974 Dec.
1975 Nov.
Dec.

31
31
31
30
31

Held by private investors:
1972 Dec. 31
1973 Dec. 31
1974 Dec. 31
1975 Nov. 30
Dec. 31
Commercial banks:
1972 Dec. 31
1973 Dec. 31
1974 Dec. 31
1975 Nov. 30
Dec. 31

associations:
31
31
31
30
31

State and local governments:
1972 -Dec. 31
1973 Dec. 31
1974—Dec. 31
1975—Nov. 30
Dec. 31
All others:
1972 Dec.
1973 Dec.
1974 Dec.
1975—Nov.
Dec.

31
31
31
30
31

NOTE.—Direct public issues only. Based on Treasury Survey of
Ownership.
D a t a 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) 5,547 commercial banks, 471 mutual savings




banks, and 729 insurance companies combined, each about 90 per cent;
(2) 459 nonfinancial corporations and 486 savings and loan assns., each
about 50 per cent; and (3) 501 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 36

U.S. G O V E R N M E N T S E C U R I T I E S • F E B R U A R Y 1976
DAILY-AVERAGE DEALER TRANSACTIONS
(Par value, in millions of dollars)
U.S. Government securities
By maturity

By type of customer

Period
Total
Within
1 year

1-5
years

5-10
years

Over
10 years

U.S. Govt, U.S. Govt,
securities
securities
dealers
brokers

Commercial
banks

All
other 1

U.S. G o v t .
agency
securities

1974—Dec

4,111

3,126

550

369

67

671

1,196

1,120

1,124

1,087

1975—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec

5,415
5,770
4,467
5,197
6,419
5,732
4,675
5,183
5,566
8,714
7,594
7,587

3,495
3,353
2,812
3,682
4,181
3,745
3,301
3,375
4.032
5,929
5,519
5,920

1,514
1,521
994
1 ,096
1,615
1,484
1 ,131
1.340
1,315
2,332
1,353
1,270

303
711
464
285
466
372
172
333
128
309
534
278

104
185
197
134
158
132
71
134
91
144
189
120

887
698
671
704
981
801
669
742
931
1,271
1,070
1,190

1,549
2,044
1,183
1 ,450
1,917
1,689
1 ,294
1,405
1,405
r
2,675
2,176
2,217

1,503
1,511
1 ,198
1 ,242
1,454
1 ,336
1,100
1,185
1,198
1,839
1,875
1,977

1,478
1,518
1 ,415
1 ,801
2,067
1,906
1,613
1,851
2,033
2,929
2,474
2,202

1,244
1,233
929
904
1,049
1,217
778
845
787
r
l,250
1,217
1,059

Week ending—
1975—Dec.

3
10
17
24
31 r

5,977
6,196
8,722
7,513
8,371

4,691
4,945
7,267
5,480
6,299

930
893
1,015
1,584
1,754

273
292
265
292
225

83
66
174
158
93

994
962
1,587
1,064
1,169

1,543
1,847
2,728
2,135
2,378

1,628
1,517
2,126
2,075
2,317

1,812
1,871
2,280
2,239
2,507

855
794
913
1,539
1,033

1976—Jan.

7
14
21
28

10,345
10,889
9,133
7,919

8,034
8,250
6,269
5,794

1,918
1,988
1,953
1,426

263
579
776
605

130
132
136
95

1,285
1,512
1,081
1,192

3,745
3,626
2,981
2,350

2,463
2,542
2,097
1,674

2,853
3,209
2,973
2,704

1,268
1,879
1,574
1,048

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

Within
All
1
maturiyear
ties

1-5
years

5-10
years

Over
10
years

Commercial banks
U.S.
Govt,
agency
securities

All
sources

Period

New
York
City

Elsewhere

Corporations 1

All
other

1974—Dec

4,821

3,100

974

553

175

1,803

1974—De c

6,904

2,061

1,619

691

2,534

1975—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec

4,634
5,588
5,737
4,453
6,332
6,768
5,736
5,501
5,718
7,322
6,752
6,061

2,689
3,658
3,435
3,123
4,917
5,923
4,978
4,491
5,214
6,019
5,011
5,274

1,236
1,180
1,486
1,036
1,094
748
775
609
410
1,091
640
322

600
536
618
218
248
100
47
262
56
111
594
218

113
213
198
77
73
-3
-64
138
39
102
506
247

1,578
1 ,469
1,444
937
896
790
626
610
529
498
953
984

1975—Ja n
Feb
Mar
Apr
May....
June....
July
Aug
Sept
Oct
Nov
Dec

6,185
6,295
6,881
5,696
6,656
7,682
6,594
6,167
6,576
6,940
7,215
7,107

1,455
1,672
1,879
1,655
1,684
1,955
1,365
1,009
1,160
1,658
1,958
2,001

1,277
1,077
1,650
1,326
1,567
1,979
1,435
1,148
1,640
1,792
1,393
1,304

864
714
838
583
452
737
929
1,120
972
817
991
1,086

2,590
2,832
2,513
2,132
2,953
3,012
2,865
2,890
2,804
2,673
2,873
2,716

7,235
6,589
6,977
7,573

1 ,897
2,031
1,720
1 ,786

1,249
1,413
1 ,517
1,390

792
956
1,107
1,051

3,298
2,189
2,634
3,347

7,824
7,163
7,931
6,695
6,423

2,462
1,976
2,148
1,986
1,802

1,380
1,277
1,707
1,113
1,073

982
1,161
1,226
1,091
954

3,001
2,749
2,851
2,506
2,594

Week ending—

Week ending—

1975—Nov.

5
12
19, . .
26

7,741
6,689
6,847
6,340

5,392
4,506
5,105
5,107

878
735
664
505

914
776
570
410

557
672
507
319

839
906
887
1,070

1975—Nov.

Dec.

3, , ,
10
17
24 ,
31

6,181
5,689
6,700
5,964
5,785

5,225
5,101
6,256
4,992
4,635

372
94
71
521
666

320
231
134
212
245

263
264
240
240
239

1,060
912
842
1,049
1,125

Dec.

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.




5.
12.
19.

26.

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.

F E B R U A R Y 1976 • F E D E R A L L Y S P O N S O R E D C R E D I T

AGENCIES

A 37

OUTSTANDING ISSUES OF FEDERALLY SPONSORED CREDIT AGENCIES, DECEMBER 31, 1975

Agency, and date of issue
and maturity
Federal home loan banks
Bonds:
6/21/74 - 2/25/76
8/25/71 - 2/25/76
8/27/73 - 2/25/76
8/26/74 - 2/25/76
6/22/73 -- 5/25/76
11/27/73 - 5/25/76
7/25/73 -- 8/25/76
9/25/74 -•8/25/76
10/25/74 - 11/26/76
7/25/74 - 11/26/76
10/25/73 - 2/25/77
11/25/74 - 2 / 2 5 / 7 7
6/21/74 -• 5/25/77
6/25/71 -- 5/25/77
4/12/73 -- 8/25/77
5/28/74 --8/25/77
2/26/73 -- 11/25/77
11/27/73 - 11/25/77
8/26/74 -- 11/25/77
11/25/75 - 2 / 2 7 / 7 8
9/25/74 - 2/27/78
9/21/73 - 5/25/78
8 / 2 6 / 7 4 - 11/27/78
6/21/74 - 2/26/79
9/25/74 - 2/26/79
10/25/74 - 5/25/79
5/28/74 - 5/2^/79
7/25/74 - 8/27/79
11/25/74 - 11/26/79
12/23/74 - 11/26/79
3/25/70 -- 2/25/80
2/25/74 -- 2/25/80
10/15/70 - 10/15/80
11/25/75 - 11/25/80
10/27/71 - 11/27/81
10/25/74 - 11/25/81
8/25/75 -- 2/25/82
4/12/73 -• 5/25/83
2/25/75 -• 1 1/25/83
5/28/74 - 5/25/84
11/25/75 - 1 1 / 2 5 / 8 5
10/25/73 - 11 /26/93
Federal Home Loan
Mortgage Corporation
Bonds:
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
Certificates:
2/25/75 - 3/15/05
11/25/75 - 9 / 1 5 / 0 5
Federal National Mortgage
Association—
Secondary market
operations
Discount notes
Capital debentures:
9/30/71 - 10/1/96
10/2/72 - 10/1/97
Mortgage-backed bonds:
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

8.70
7.38
8.75
9.20
7.20
7.45
7.80
9.55
8.60
9.55
7.20
8.05
8.70
6.95
7.15
8.80
6.75
7.45
9.15
7.25
9.38
7.60
9.10
8.65
9.45
8.65
8.75
9.50
8.15
7.50
7.75
7.05
7.80
7.75
6.60
8.65
8.63
7.30
7.38
8.75

Amount
(millions
of dollars)

7.38

400
300
300
600
600
300
500
700
600
500
500
500
500
200
300
600
300
300
700
800
400
500
500
600
600
500
400
500
500
500
350
300
200
600
200
400
500
183
400
300
400
400

7.05
6.15
8.60
7.75
7.15

400
350
140
150
150

8.20
8.75

300
200

8.10

2,168
4.38
7.40

248
250

3.58
5.48
5.85
5.92
5.50
5.49
5.74
8.63

53
4
71
35
10
21
80
200

Agency, and date of issue
and maturity
Federal National Mortgage
Association—Cont.
Debentures:
3/11/71 - 3/10/76
6/12/73 - 3/10/76
6/10/71 - 6 / 1 0 / 7 6
2/10/72 - 6/10/76
9/10/74 - 6/10/76
11/10/71 - 9/10/76
6/12/72 - 9 / 1 0 / 7 6
12/10/74 - 9/10/76
7/12/71 - 12/10/76
12/11/72 - 12/10/76
6 / 1 0 / 7 4 - 12/10/76
3/13/62 - 2/10/77
9/11/72 - 3/10/77
3/11/74 - 3/10/77
9/10/75 - 3 / 1 0 / 7 7
12/10/70 - 6/10/77
5/10/71 - 6/10/77
12/10/73 - 6/10/77
9/10/71 - 9 / 1 2 / 7 7
9/10/73 - 9 / 1 2 / 7 7
12/10/75 - 9 / 1 2 / 7 7
7/10/73 - 12/12/77
10/1/73 - 12/12/77
6/10/74-3/10/78
3/10/75-3/10/78
6/12/73 - 6/12/78
6/10/75 - 6 / 1 2 / 7 8
3/11/74 - 9/11/78
10/12/71 - 12/11/78
7 / 1 0 / 7 4 - 12/11/78
12/10/73 - 3/12/79
9/10/73 - 6/11/79
9/10/74 - 6/11/79
6/12/72 - 9 / 1 0 / 7 9
12/10/74 - 9 / 1 0 / 7 9
10/10/75 - 10/10/79
12/10/71 - 12/10/79
6/10/75 - 12/10/79
2/10/72 - 3/10/80
3/10/75-3/10/80
4/1/75 - 4 / 1 0 / 8 0
6/10/74-6/10/80
2/16/73 - 7/31/80
2/16/73 - 7/31/80
10/1/73 - 9 / 1 0 / 8 0
9/10/75-9/10/80
1/16/73 - 10/30/80
12/11/72 - 12/10/80
12/10/75 - 12/10/80
6/29/72 - 1/29/81
3/12/73 - 3/10/81
4/18/73 - 3/10/81
3/21/73 - 5/1/81
3/21/73-5/1/81
1/21/71 - 6/10/81
9/10/71 - 9 / 1 0 / 8 1
9/10/74-9/10/81
3/11/74-12/10/81

Coupon
rate

5.65
7.13
6.70
5.85
10.00
6.13
5.85
7.50
7.45
6.25
8.45
4.50
6.30
7.05
8.30
6.38
6.50
7.20
6.88
7.85
7.38
7.25
7.55
8.45
6.70
7.15
7.45
7.15
6.75
8.95
7.25
7.85
9.80
6.40
7.80
8.50
6.55
7.75
6.88
7.25
7.63
8.50
5.19
3.18
7.50
8.75
4.46
6.60
8.00
6.15
7.05
6.59
4.50
5.77
7.25
7.25
9.70
7.30
8.88
7/10/74 - 3/10/82
5.84
6/28/72 - 5 / 1 / 8 2
6.65
2/10/71 - 6/10/82
6.80
9/11/72 - 9/10/82
8.60
10/10/75 - 10/11/82
7.35
12/10/73 - 12/10/82
6.75
3/11/71 - 6 / 1 0 / 8 3
7.30
6/12/73 - 6/10/83
6.75
11/10/71 - 9 / 1 2 / 8 3
8.00
6/10/75 - 12/12/83
8.40
12/10/75 - 12/12/83
6.25
4/12/71 - 6 / 1 1 / 8 4
8.20
7/10/75 - 7 / 1 0 / 8 4
7.95
12/10/74-9/10/84
6.90
12/10/71 - 12/10/84
7.65
3/10/75-3/11/85
7.00
3/10/72 - 3/10/92
7.05
6/12/72-6/10/92
12/11/72 - 12/10/97-82. . 7.10

Amount
(millions
of dollars)

500
400
250
450
700
300
500
200
300
500
600
198
500
400
450
250
150
500
300
400
450
500
500
650
350
600
400
550
300
450
500
300
600
300
700
400
350
650
250
750
300
600
1
9
400
650
5
300
650
156
350
26
18
1
250
250
300
250
300
58
250
200
300
300
200
300
250
300
300
200
300
300
250
500
200
200
200

Coupon
rate

Amount
(millions
of dollars)

Banks for cooperatives
Bonds:
7/1/75 - 1/5/76
8/4/75-2/2/76
9/2/75 - 3/1/76
10/1/75 - 4 / 1 / 7 6
11/3/75 - 5 / 3 / 7 6
12/1/75 - 6/1/76
10/1/73 - 4/4/77
10/1/75 - 10/2/78
12P/74 - 10/1/79

5.65
6.80
7.40
7.50
6.75
6.00
7.70
8.55
8.00

434
552
526
458
600
459
200
215
201

Federal intermediate
credit banks
Bonds:
3/1/73 - 1/5/76
4/1/75 - 1/5/76
5/1/75 - 2/2/76
6/2/75 - 3/1/76
7/1/75 - 4 / 1 / 7 6
8/4/75 - 5 / 3 / 7 6
9/2/75-6/1/76
10/1/75 - 7/1/76
11/3/75 - 8 / 2 / 7 6
12/1/75 - 9 / 1 / 7 6
7/2/73 - 1/3/77
7/I/74 _ 4/4/77
1/2/74 - 1/3/78
1/2/75 - 1/2/79
7/1/75 - 1/2/80

6.65
6.05
6.60
6.15
5.80
7.00
7.60
7.70
6.90
6.20
7. 10
8.70
7.10
7.40
7.40

261
1 ,079
909
840
739
888
770
469
640
714
236
321
406
410
531

Federal land banks
Bonds:
4/20/72 - 1/20/76
7/22/74 - 1/20/76
2/21/66 - 2/24/76
1/22/73 - 4/20/76
4/22/74-4/20/76
7/20/66 - 7/20/76
1/21/74 - 7/20/76
4/23/73 - 10/20/76
4/21/75 - 1/20/77
7/21/75 - 1 0 / 2 0 / 7 6
4/22/74-4/20/77
7/20/73 - 7/20/77
10/20/71 - 10/20/77 , , ,
10/21/74- 1/23/78
2/20/63 - 2 / 2 0 / 7 3 - 7 8 . . . .
5/2/66 - 4/20/78
1/20/75 - 4 / 2 0 / 7 8
7/20/72 - 7/20/78
7/22/74 - 7/20/78
10/23/73 - 10/19/78
2/20/67 - 1/22/79
1/21/74 - 1/22/79
9/15P2 -4/23/79
10/20/75 - 4 / 2 3 / 7 9
2/20/74 - 7/23/79
10/23/72 - 10/23/79 , . .
1/22/73 - 1/21/80
7/20/73 - 7/21/80
10/21/74- 10/20/80
..,
2/23/71 - 4 / 2 0 / 8 1
7/22/74 - 7/20/81
1 /20/75 - 1 /20/82
4/20/72 - 4/20/82
4/21/75 - 4 / 2 0 / 8 2
4/23/73 - 10/20/82
7/21/75 - 1/20/83
10/23/73 - 10/20/83 . . . .
6/23/75 - 7/22/85
10/20/75 - 10/21/85 . . . .

6.25
9.20
5.00
6.25
8.25
5.38
7.05
7.15
7.45
7.20
8.25
7.50
6.35
8.70
4.13
5.13
7.60
6.40
9.15
7.35
5.00
7.10
6.85
8.55
7.15
6.80
6.70
7.50
8.70
6.70
9.10
7.80
6.90
8.15
7.30
8.20
7.30
8.10
8.80

300
650
123
373
400
150
360
450
750
650
565
550
300
546
148
150
713
269
350
550
285
300
235
650
389
400
300
250
400
224
265
400
200
300
239
464
300
391
435

Agency, and date of issue
and maturity

NOTE.—These securities are not guaranteed by the U.S. Govt.; see also note to table at top of p. A-38.




A 38

F E D E R A L L Y S P O N S O R E D C R E D I T A G E N C I E S • F E B R U A R Y 1976
MAJOR BALANCE SHEET ITEMS OF SELECTED FEDERALLY SPONSORED CREDIT AGENCIES
(In millions of dollars)
Federal home loan banks
Assets
Advances
to
members

Investments

10,614
7,936
7,979
15,147

3,864
2,520
2,225
3,537

Federal National
Mortgage Assn.
(secondary market
operations)

Liabilities and capital
Cash
and
deposits

Bonds
and
notes

105
142
129
157

10,183
7,139
6,971
15,362

Member
deposits

Mortgage
loans
(A)

Debentures
and
notes
(L)

Loans
to
cooperatives
(A)

Bonds

15,502
17,791
19,791
24,175

15,206
17,701
19,238
23,001

2,030
2,076
2,298
2,577

Capital
Stock

2,332
1,789
1,548
1,745

1,607
1,618
1,756
2,122

Banks
for
cooperatives

Federal
intermediate
credit banks

Federal
land
banks

Bonds

(L)

Loans
and
discounts
(A)

(L)

Mortgage
loans
(A)

1,755
1,801
1,944
2,670

4,974
5,669
6,094
7,198

4,799
5,503
5,804
6,861

7,186
7,917
9,107
11,071

21,804

3,094

144

21,878

2,484

2,624

29,709

28,201

3,575

3,561

8,848

8,400

13,643

20,728
19,460
18,164
17,528
17,145
16,803
16,685
16,945
17,482
17,578
17,606
17,845

4,467
4,838
6,415
6,836
5,745
6,259
6,174
4,680
4,247
4,368
4,439
4,376

113
99
154
98
98
134
119
89
114
70
87
108

21,778
20,822
20,754
20,738
19,463
19,396
19,446
18,736
18,720
18,766
18,874
18,873

2,612
2,819
3,025
2,651
2,708
2,831
2,436
2,281
2,275
2,291
2,527
2,701

2,699
2,698
2,677
2.660
2,656
2,653
2,656
2,660
2,679
2,685
2,690
2,705

29,797
29,846
29,870
29,931
29,977
30,136
30,453
30,881
31,157
31,466
31,647
31,916

28,030
27,730
28,420
28,257
27,714
28,237
28,419
28,718
28,933
29,373
29,919
29,963

3,910
3,821
3,741
3,650
3,499
3,371
3,520
3,738
3,847
4,087
4,041
3,979

3,653
3,592
3,439
3,329
2,982
2,948
2,914
3,004
3,109
3,453
3,664
3,643

8,888
9,031
9,303
9,520
9,763
10,031
10,163
10,176
10,100
9,933
8,784
9,947

8,419
8,484
8,703
9,061
9,231
9,357
9,556
9,715
9,657
9,505
9,319
9,211

14,086
14,326
14,641
14,917
15,180
15,437
15,654
15,851
16,044
16,247
16,380
16,564

NOTE.—Data from Federal H o m e Loan Bank Board, Federal National
Mortgage Assn., and F a r m 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

offered securities (excluding, for FHLB's, bonds held within the F H L B
System) and are not guaranteed by the U.S. Govt.; for a listing of these
securities, see table on preceding page. Loans are gross of valuation reserves
and represent cost for F N MA and unpaid principal for other agencies.

NEW ISSUES OF STATE AND LOCAL GOVERNMENT SECURITIES
(In millions of dollars)
All issues (new capital and refunding)
Type of issue

Total

General
obligations

Revenue

24,963
23,653
23,969
24,315
30,607

15,220
13,305
12,257
13,563
16,020

8,681
9,332
10,632
10,212
14,511

2,487
1,500

1,110

761

2,367
2,392
2,137
2,413
2,905
3,066
3,586
2,786
2,171
2,337
2,385
2,062

1,364
1,723
1,284
1,501
1,885
1,772
1,371
1,058
907
1,120
1,040
995

HAA1

1,000
959
1,022
461

Issues for new capital

Type of issuer

U.S.
Govt,
loans

State

Special
district
and
Other 2
stat.
auth.

Use of proceeds

Total

Education

Roads
and
bridges

Utilities 4

Hous- Veterans'
ings
aid

5,999
4,991
4,212
4,784
7,438

8,714
9,496
9,505
8,638
12,441

10,246
9,165
10,249
10,817
10,660

24,495
19,959
22,397
23,508
29,495

5,278
4,981
4,311
4,730
4,689

2,642
1,689
1,458
768
1,277

5,214
4,638
5,654
5,634
7,209

2,068
1,910
2,639
1,064
647

1,374
717

689
222

1,005
558

789
700

2,403
1,475

698
297

4
64

866
424

9
53

997
664
851
905
1,015
1,292
2,209
1,725
1,252
1,203
1,341
1,057

372
877
376
368

702
629
717
880
1,197
1,137
1,063
1,665
1,185
979
1,244
1,043

1,293
880
1,048
1,161
889
989
941
747
614
855
667
576

2,332
2,353
2,083
2,316
2,784
2,840
3,554
2,561
2,123
2,241
2,318
1,990

710
478
471
405
419
430
400
379
279
212
219
287

49
209
94
61
211
164
123
55
134
60
88
29

644
425
474
734
559
821
879
626
447
487
618
495

172
105
35
38
25
28
37
67
48
44
28
20

811

938
1,577
376
357
482
470
434

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
and payment to issuer, which occurs after date of sale.




Total
amount
delivered 3

4

Water, sewer, and other utilities.
5 Includes urban redevelopment loans.
NOTE.—Security Industries Assn. d a t a ; par amounts of long-term issues
based on date of sale unless otherwise indicated.
Components may not add to totals due to rounding.

FEBRUARY 1976 • SECURITY ISSUES

A 39

TOTAL NEW ISSUES
(In millions of dollars)
Gross proceeds, all issues 1
Noncorporate

Corporate

Period
Total

U.S.
Govt. 2

Bonds

U.S.
Govt.
agency 3

State
and local
(U.S.) 4

Others

16,283
12,825
23,883

24,370
23,070
22,700

2,165
1,589
1,385

Stock

Total
Total

Publicly
offered

Privately
placed

Preferred

44,914
40,787
33,391
37,837

31 ,999
27,727
22,268
31,551

24,790
18,347
13,649
25,337

7,209
9,378
8,620
6,214

3,679
3,373
3,372
2,253

9,236
9,689
7,750
4,033

1974—Oct
Nov
Dec

4,609
3,746
3,505

3,778
3,346
3,052

3,423
3,016
2,172

355
330
880

196
93
152

635
307
301

1975—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct

5,364
4,528
5,378
4,293
5,628
5,618
4,388
2,399
2,830
4,573

4,791
3,906
4,481
3,193
4,298
4,613
3,731
1,836
1,994
3,026

3.657
3,201
3,971
2,771
3,796
3,943
2.658
1,356
1,414
2,389

1,134
705
510
422
502
670
1,073
480
580
637

235
173
253
349
346
230
198
129
308
332

338
449
644
751
984
775
459
434
528
1,215

197 1
197 2
197 3
197 4

105,233
96,522
100,417

17,235
17,080
19,057

Common

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

197 1
1972
197 3
197 4

9,551
4,796
4,329
9,890

2,102
1,812
643
543

2,158
2,669
1,283
1,851

2,370
2,878
1,559
956

2,006
1,767
1,881
983

434
187
43
22

7,576
6,398
5,585
8,872

4,201
4,967
4,661
3,964

4,222
3,680
3,535
3,710

1,596
1,127
1,369
222

6,484
8,415
5,661
6,241

1974—Oct.,
Nov.
Dec.

725
1,697
1,456

3
2
196

102
116
180

29
100
23

306
336
14

1,414
739
435

695
225
194

439
62
150

36
31
25

791
397
817

1975—Jan..
Feb..
Mar.
Apr.
May
June
July.
Aug.
Sept.
Oct.,

1,901
1,631
2,368
1,498
2,266
2,195
1,116
610
583
731

3
44

179
65
271
293
242
384
229
141
57
321

58
60
74
211
141
194
231
70
37
152

84
75
83
97
415
231
338
17
151
625

764
1,471
828
794
845
838
713
719
720
550

507
486
679
586
704
640
324
305
541
676

933
126
317
354
153
362
254
93
249
371

5

931
539
614
156
379
603
1,081
255
234
427

233
214
123
64
101
106
142

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 opposite page.




1

61
260
16
19
48
555

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.

A 40

S E C U R I T Y I S S U E S • F E B R U A R Y 1976
NET CHANGE IN OUTSTANDING CORPORATE SECURITIES
(In millions of dollars)
Derivation of change, all issuers 1
All securities

Bonds and notes

Common and preferred stocks

New issues

Retirements

Net change

New issues

Retirements

Net change

New issues

Retirements

Net change

46,687
42,306
33,559
39,334

9,507
10,224
11,804
9,935

37,180
32,082
21,754
29,399

31,917
27,065
21,501
31,554

8,190
8,003
8,810
6,255

23,728
19,062
12,691
25,098

14,769
15,242
12,057
7,980

1,318
2,222
2,993
3,678

13,452
13,018
9,064
4,302

8,452
12,272

2,985
2,871

5,467
9,401

6,611
10,086

1,225
2,004

5,386
8,082

1,841
2,186

1,759
866

82
1,319

15,211
15,602
9,079

2,088
3,211
2,576

13,123
12,390
6,503

12,759
11,460
6,654

1 ,587
2,336
2,111

11,172
9,124
4,543

2,452
4,142
2,425

501
875
465

1 ,951
3,266
1,960

i
!

Type of issues
Commercial
and other 2

Manufacturing

Period

Transportation 3

Public
utility

Communication

Real estate
and financial

1

Bonds
and
notes

Stocks

Bonds
and
notes

Stocks

Bonds
and
notes

Stocks

Bonds
and
notes

Stocks

Bonds
and
notes

Stocks

Bonds
and
notes

Stocks

1971
1972
1973
1974

6,585
1,995
801
7,404

2,534
2,094
658
17

827
1,409
-109
1,116

2,290
2,471
1,411
-135

900
711
1,044
341

800
254
-93
-20

6,486
5,137
4,265
7,308

4,206
4,844
4,509
3,834

3,925
3,343
3,165
3,499

1,600
1,260
1,399
398

5,005
7,045
3,523
5,428

2,017
2,096
1,181
207

1974—1II
IV

1,479
3,098

-421
126

189
240

-664
-47

49
342

-6
9

1,358
2,079

862
1,107

1,116
628

222
107

1,194
1,695

88
17

1975—1
II
Ill

5,134
4,574
1,442

262
500
412

373
483
221

77
490
108

1
429
147

1
7
53

2,653
1,977
1,395

1 ,569
1,866
1,043

1,269
810
472

24
359
97

1,742
852
866

18
43
247

1
Excludes investment companies.
2 Extractive and commercial and miscellaneous companies.
3 Railroad and other transportation companies.

NOTE.—Securities and Exchange Commission estimates of cash transactions only. As contrasted with data shown on preceding page, new issues

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)
Assets (market value
at end of period)

Sales and redemption
of own shares
Year
Sales

1

Redemptions

Net
sales

Total 2

Cash
position

3

Other

1963
1964
1965

2,460
3,404
4,359

1,504
1,875
1,962

952 25,214
1,528 29,116
2,395 35,220

1,341
1,329
1.803

23,873
27,787
33,417

1966
1967
1968

4,671
4,670
6,820

2,005
2,745
3,841

2,665 34,829
1,927 44,701
2,979 52,677

2,971
2,566
3,187

31,858
42,135
49,490

1969
1970
1971

6,717
4,624
5,145

3,661
2,987
4,751

3,056 48,291
1,637 47,618
394 55,045

3,846
3,649
3,038

44,445
43,969
52,007

1972
1973
1974

4,892
4,358
5,346

6,563
5,651
3,937

- 1 , 6 7 1 59,831
- 1 , 2 6 1 46,518
1 ,409 35,777

3,035
4,002
5,637

56,796
42,516
30,140

1975

10,057

9,571

486 42,179

3,748

38,431

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.
3 Cash and deposits, receivables, all U.S. Govt, securities, and other
short-term debt securities, less current liabilities.




Sales and redemption
of own shares

Assets (market value
at end of period)

Month
Sales 1

1974-- D e c . . .

736

1975-—Jan...
Feb...
Mar. .
Apr.. .
May..
June..
July...
Aug...
Sept...
Oct. .r .
Nov. .
Dec.. .

1,067
889
847
808
677
r
703
763
753
760
914
786
1,040

Redemptions
411
428
470
623
791
735
811
981
788
874
995
911
1 ,093

Net
sales

Total 2

Cash
position 3

325

35,777

5,637

639
419
224
17
-58
-108
-239
-35
-114
-81
-125
-53

37,407
39,330
40,449
42,353
43,832
45,538
42,896
41,672
40,234
41,860
42,460
42,179

3,889
4,006
3,870
3,841
3,879
3,640
3,591
3,660
3,664
3,601
3,733
3,748

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.

FEBRUARY 1976 • BUSINESS FINANCE

A 41

CORPORATE PROFITS, TAXES, AND DIVIDENDS
(In billions of dollars)

Year

1968 r
1969'
1970'
1971 rr
1972
1973 r
1974 r

Profits
before
taxes

Income
taxes

Profits
after
taxes

Cash
dividends

Undistributed
profits

Corporate
capital
consumption
allowances 1

85.6
83.5
71.5
82.0
96.2
117.0
132.1

39.3
39.7
34.5
37.7
41.5
48.3
52.6

46.2
43.8
37.0
44.3
54.7
68.7
79.5

21.9
22.6
22.9
23.0
24.6
27.8
31.1

24.2
21.2
14.1
21.3
30.0
40.7
48.4

44.4
49.4
55.1
60.6
65.3
71.8
82.0

1
Includes depreciation, capital outlays charged to current accounts, and
accidental damages.

Quarter

Profits
before
taxes

Income
taxes

1973—IV...

119.1

1974—1. . . .
II. . .
III...
IV...

128.3
129.6
146.7
123.9

1975—I. . . .
II. . .
III...

97.1
108.2
129.5

Undistributed
profits

Corporate
capital
consumption
allowances 1

29.5

40.9

75.6

30.0
30.9
31.7
31.7

48.9
46.2
55.7
43.0

77.5
80.1
83.4
87.2

32.1
32.6
33.5

27.8
34.3
45.6

89.1
91.6
95.5

Profits
after
taxes

Cash
dividends

48.6

70.5

49.4
52.6
59.3
49.2

78.9
77.1
87.4
74.7

37.2
41.2
50.4

59.9
66.9
79.1

NOTE.—Dept. of Commerce estimates. Quarterly data are at seasonally
adjusted annual rates.

CURRENT ASSETS AND LIABILITIES OF NONFINANCIAL CORPORATIONS
(In billions of dollars)
Current assets
Net
working
capital

End of period

Total

Cash

U.S.
Govt,
securities

Current liabilities

Notes and accts.
receivable
U.S.
Govt, i

Other

Inventories

Other

Total

Notes and accts.
payable
Accrued
Federal
income
U.S.
taxes
Other
1
Govt.

Other

187.4
203.6
221.3

492.3
529.6
573.5

50.2
53.3
57.5

7.7
11.0
9.3

4.2
3.5
3.4

201.9
217.6
240.0

193.3
200.4
215.2

35.0
43.8
48.1

304.9
326.0
352.2

6.6
4.9
4.0

204.7
215.6
230.4

10.0
13.1
15.1

83.6
92.4
102.6

235.4
239.5
242.3

608.2
625.3
643.2

59.0
58.9
61.6

10.0
9.7
11.0

2.9
3.0
3.5

255.4
264.4
266.1

230.1
238.0
246.7

50.8
51.3
54.4

372.7
385.8
401 .0

4.5
4.4
4.3

241.7
250.2
261.6

15.0
16.5
18.1

111.6
114.7
117.0

250.1
253.9
259.5
261 .5

666.2
685.4
708.6
712.2

59.4
58.8
60.3
62.7

12.1
10.7

11.0

11.7

3.2
3.4
3.5
3.5

276.2
289.8
295.5
289.7

258.4
269.2
282.1
288.0

56.9
53.5
56.1
56.6

416.1
431 .5
449.1
450.6

4.5
4.7
5.1
5.2

266.5
278.5
287.0
287.5

20.6
19.0
22.7
23.2

124.5
129.1
134.3
134.8

260.4
269.0
271.8

698.4
703.2
716.5

60.6
63.7
65.6

12.1
12.7
14.3

3.2
3.3
3.3

281 .9
284.8
294.7

285.2
281.4
279.6

55.4
57.3
59.0

438.0
434.2
444.7

5.3
5.8
6.2

271.2
270.1
273.4

21 .8
17.7
19.4

139.8
140.6
145.6

1
Receivables f r o m , and payables to, the U.S. Govt, exclude amounts
offset against each other on corporations' books.

NOTE.—Based on Securities and Exchange Commission estimates.

BUSINESS EXPENDITURES ON NEW PLANT AND EQUIPMENT
(In billions of dollars)
Manufacturing
Total

81.21
88.44
99.74
112.40

Transportation

Public utilities

Mining
Durable

Nondurable

14.15
15.64
19.25
22.62

15.84
15.72
18.76
23.39

2.16
2.45
2.74
3.18

Railroad

Air

Other

Electric

1.67
1.80
1.96
2.54

1.88
2.46
2.41
2.00

1.38
1.46
1.66
2.12

12.86
14.48
15.94
17.63

Communications
Gas
and other
2.44
2.52
2.76
2.92

Other i

Total
(SA.
A.R.)

18.05
20.07
21.40
22.05

10.77
11.89
12.85
13.96

28.48

5.84

5.59

.71

.56

.60

.47

4.54

.82

3.53

5.83

103.74

24.10
28.16
28.23
31.92

4.74
5.59
5.65
6.64

4.75
5.69
5.96
6.99

.68
.78
.80
.91

.50
.64
.64
.78

.47
.61
.43
.48

.34
.49
.58
.71

3.85
4.56
4.42
4.80

.52
.75
.78
.87

3.19
3.60
3.39
3.78

5.05
5.46
5.57
5.97

107.27
111.40
113.99
116.22

25.82
28.43
27.79
31 .45

5.10
5.59
5.16
6.20

5.74
6.55
6.51
7.46

.91
.97
.94

1.00

.59
.71
.62
.61

.44
.47
.50
.43

.62
.77
.85
.65

3.84
4.15
4.16
4.88

.58
.79
.91
1.00

3.11
3.22
3.14

4.88
5.19
5.00
9.21

114.57
112.46
112.16
114.80

26.54

4.94

6.04

.96

.60

.29

.65

4.46

.69

7.90

118.16

1 Includes trade, service construction, finance, and insurance.
Anticipated by business.

2




NOTE.—Dept. of Commerce estimates for corporate and noncorporate
business; excludes agriculture, real estate operators, medical, legal,
educational, and cultural service, and nonprofit organizations.

A 42

REAL ESTATE CREDIT • FEBRUARY 1976
MORTGAGE DEBT OUTSTANDING BY TYPE OF HOLDER
(In millions of dollars)
End of year

End of quarter

Type of holder, and type of property
1971

1972

1974

1975

1973

III
ALL H O L D E R S .
1- to 4-family
Multifamily
Commercial
Farm

499,758
307,241
67,341
92,318
32,858

564,825
345,349
76,690
107,349
35,437

634,954
384,613
85,421
125,572
39,348

'678,622
'407,421
'90,007
138,002
43,192

'688,654
'411,520
'91,872
140,965
44,297

'695,354
'414,663
'92,451
142,701
45,539

'709,555
'424,197
'93,070
145,353
46,935

'725,396
'434,976
'94,254
'148,182
'47,984

PRIVATE FINANCIAL I N S T I T U T I O N S . .
1- to 4-family
Multifamily
Commercial
Farm

394,239
253,581
52,472
78,330
9,856

450,000
59,398
92,063
10,521

505,400
320,420
64,750
108,735
11.495

537,430
338,166
67,486
119,465
12,313

542.552
340,007
68,161
121,948
12,436

546,689
342,313
68,095
123,684
12,597

558,179
350,198
68,453
126,634
12,894

'569,499
'358,275
'68,931
'129,263
'13,030

Commercial banks1
1- to 4-family
Multifamily
Commercial
Farm

82,515
48,020
3,984
26,306
4,205

99.314
57,004
5,778
31,751
4,781

119,068
67,998
6,932
38,696
5,442

130,582
73,987
7,496
43,092
6,007

132,105
74,758
7,619
43,679
6,049

131,903
74,696
7,176
43,924
6,107

133,012
75,356
6,816
44,598
6,242

134,025
75,979
6,701
45,032
6,313

Mutual savings banks
1- to 4-family.
Multifamily
Commercial
Farm

61,978
38,641
14,386
8,901
50

67,556
41,650
15,490
10,354
62

73,230
44,246
16,843
12,084
57

74,809
44,604
17.208
12,938
59

74,920
44,670
17,234
12,956
60

75,157
44,795
17,291
12,996
75

75,796
45,175
17,433
13,112
76

76,429
45,552
17,579
13,221
77

174,250
142,275
17,355
14,620

206,182
167,049
20,783
18,350

231, 733
187,750
22,524
21,459

247,612
200,343
23,573
23,696

249,293
201.553
23,683
24,057

252,442
204,099
23,831
24,512

261,336
211,290
24,409
25,637

'270,600
'218,780
'24,895
'26,925

75,496
24,645
16,747
28,503
5,601

76,948
22.315
17,347
31,608
5,678

81,369
20,426
18,451
36.496
5,996

84,427
19,232
19.209
39,739
6,247

86,234
19,026
19,625
41,256
6,327

87,187
18,723
19,797
42,252
6,415

88,035
18,377
19,795
43,287
6,576

'17,964
'19,756
'44,085
'6,640

39,357
26,453
4,555

45,790
30,147
6,086

55,664
35,454
8,489

'67,852
'43,116
'10,739

'72,382
'45,674
'11,979

'75,995
'47,511
'12,924

'79,954
'50,260
'13,285

'84,525
'53,162
'14,291

Savings and loan associations
1- to 4-family
Multifamily
Commercial
Life insurance companies
1- to 4-family
Multifamily
Commercial
Farm
F E D E R A L AND R E L A T E D A G E N C I E S . .
1- t o 4-family
Multifamily
Commercial
Farm
Government National Mortgage
1- to 4-family
Multifamily
Commercial

Association

Farmers Home Administration
1- to 4-family
Farm
Federal Housing and Veterans
tions
1- to 4-family
Multifamily
Federal National Mortgage
1- to 4-family
Multifamily

Association...

Corporation,

GNMA Pools
1- to 4-family
Multifamily
INDIVIDUALS A N D O T H E R S 2
1- to 4-family
Multifamily
Commercial
Farm

,

8,338

9,557

11,721

13,997

14,729

15,560

16,409

17,072

5,113
2,490
2,623

4,029
1,330
2,699

4,052
1,337
2,715

4,848
1,600
3,248

5,584
1,843
3,741

5,612
1,852
3,760

6,537
2,157
4,380

819
398
421

837
387
450

1,200
550
650

1,500
688

1,600
734
866

,700
780
920

1,800
826
974

1,900
872
1,028

3,389
2,517
872

3,338
2,199
1,139

3,476
2,013
1,463

' 3,788
'1,965
'1,823

'4,015
'2,009

r
4,047
'1,879

r

'2,168

4,297
'1,915
'2,382

' 4,681
'1,951
'2,730

17,791
16,681
1,110

19,791
17,697
2,094

24,175
20,370
3,805

28,641
23,258
5,383

29,578
23,778
5,800

29,754
23,743
6,011

30,015
23,988
6,027

31,055
25,049
6,006

7,917

9,107

11,071

13,185

13,863

14,640

15,435

16,044

964
934
30

1,789
1,754
35

2,604
2,446
158

3,713
3,414
299

4,586
4,217
369

4,608
4,231
377

4,944
4,543
401

5,033
4,632
401

3,154
3,153

5,815
5,620
195

9,109
8,745
364

12,973
12,454
519

13,892
13,336
556

15,662
15,035
627

17,851
17,136
715

19,275
18,501
774

66,162
27,207
10,314
13,977
14,664

69,035
27,184
11,206
15,286
15,359

73,890
28,739
12,182
16,837
16,132

73,340
26,139
11,782
18,537
16,882

73,720
25,839
11,732
19,017
17,132

'72,670
24,839
'11,432
19,017
17,382

'71,422
23,739
'11,332
18,719
17,632

'71,372
'23,539
'11,032
'18,919
17,882

1

1
Includes loans held by nondeposit trust companies but not bank trust
departments.
2
Includes some U S. agencies for which amounts are small or separate
data are not readily available.




'88,445

5,323
2,770
2,542
11

Administra-

Federal land banks (farm only)
Federal Home Loan Mortgage
1- to 4-family
Multifamily

288,018

812

'2,006

NOTE.—Based on data f r o m various institutional and Govt, sources,
with some quarters estimated in part by Federal Reserve in conjunction
with the Federal H o m e L o a n Bank Board and the Dept. of Commerce.
Separation of nonfarm mortgage debt by type of property, where not
reported directly, and interpolations and extrapolations where required,
estimated mainly by Federal Reserve. Multifamily debt refers to loans
on structures of 5 more units.

FEBRUARY 1976 • REAL ESTATE CREDIT

A 43

FEDERAL NATIONAL MORTGAGE ASSOCIATION AND FEDERAL HOME LOAN MORTGAGE CORPORATIONSECONDARY MORTGAGE MARKET ACTIVITY
(In millions of dollars)
FHLMC
Mortgage
transactions
(during period)

Mortgage
holdings

Outstanding

Total

9,828
8,797
8,914
10,765

6,497
8,124
7.889
7,960

968
1,789
2,604
4,586

821
1,503
1,743
1,904

278

231

7,960

4,586

208
169
151

146
137
639
913
621
557
575
814
575
282
332
517

7,285
6,672
6,636
6.890
6,615
6,549
6,119
5,888
5,399
4,685
4,385
4,126

4,744
4,533
4,608
4,634
4,773
4,944
5,015
4,942
5,033
5,119
4,971

FHAinsured

VAguaranteed

Purchases

17,791
19,791
24,175
29,578

12,681
14,624
16,852
19,189

5,110
5,112
6,352
8,310

3,574
3,699
6,127
6,953

29,578

19,189

8,310

29,670
29,718
29,754
29,815
29,858
30,015
30,351
30,777
31,055
31,373
31,552
31,824

19,231
19,256
19,277

8,318
8,313
8,304
8,337
8,395
8,498
8,693
8,942
9,122
9,309
9,430
9,573

19,251
19,282
19,385
19,507
19,560
19,641
19,648
19,732

Mortgage
holdings

Made
during
period

Total i

19,282

Mortgage
commitments

Sales

336
211
71
5

211
247
326
538
594
488
508
372
451

i Includes conventional loans not shown separately.
NOTE.—Data f r o m F N M A and F H L M C , respectively.
For FNMA: Holdings include loans used to back bond issues guaranteed
by G N M A . Commitments include some multifamily and nonprofit
hospital loan commitments in addition to 1- to 4-family loan commitments
accepted in F N M A ' s free market auction system, and through the F N M A G N M A Tandem Plans.

Mortgage
transactions
(during period)

Mortgage
commitments

Conventional

Purchases

147
286
861
2,682

778
1,298
1,334
2,191

1,904

2,682

266

16

34

1,900
1,893
1,887
1 ,890
1,920
1,936
1 ,943
1,863
1,852
1,843
1,834

2,845
2,640
2,722
2,744
2,854
3,008
3,072
3,080
3,181
3,276
3,137

199
113
113

26
309
19
71
38
5
63
145
31
59
225

26

FHAVA

121

203
210
161
98
148
176
104

Sales

64
408
409
52

Made
during
period

1,606
1,629
4,553

21

52
297
42
28
139
132
79
45
50

For FHLMC: Holdings and transactions cover participations as well as
whole loans. Holdings include loans used to back bond issues guranteed
by G N M A . Commitments cover the conventional and Govt.-underwritten loan programs.

TERMS AND YIELDS ON NEW HOME MORTGAGES
Conventional mortgages
Terms i

Yields (per cent) in
Drimarv market

Period

FHAinsured
loans—Yield
in private
secondary
market5

Contract
rate (per
cent)

Fees and
charges
(per cent) 2

Maturity
(years)

Loan/price
ratio
(per cent)

Purchase
price (thous.
of dollars)

Loan
amount
(thous. of
dollars)

FHLBB
series 3

HUD
series 4

7.60
7.45
7.78
8.71

.87
.88
1.11
1.30

26.2
27.2
26.3
26.3

74.3
76.8
77.3
75.8

36.3
37.3
37.1
40.1

26.5
28.1
28.1
29.8

7.74
7.60
7.95
8.92

7.75
7.64
8.30
9.22

7.70
7.53
8.19
9.55

1974—Dec

9.13

1.44

27.5

75.5

42.4

31.3

9.37

9.45

9.51

1975—Jan
Feb
Mar
Apr....
May
June
July
Aug
Sept
Oct
Nov.r
Dec.?

9.09
8.88
8.79
8.71
8.63
8.73
8.66
8.63
8.70
8.75
8.74
8.76

1.51
1.44
1 .61
1.53
1 .63
1.42
1.40
1.56
1.46
1.59
1.65
1.57

26.7
26.8
26.5
26.5
27.0
26.5
26.0
26.7
26.7
27.3
27.6
27.7

73.8
76.5
75.1
76.4
75.5
76.4
75.9
77.0
75.9
77.5
76.5
76.8

43.2
44.4
45.9
44 5
43.5
43.1
44.1
44.6
45.6
43.9
46.4
46.0

31.6
33.0
33.7
33.4
32.2
32.4
32.9
33.7
34.1
33.2
34.8
34.7

9.33
9.12
9.06
8.96
8.90
8.96
8.89
8.89
8.94
9.01
9.01
9.01

9.15
9.05
8.90
9.00
9.05
9.00
9.00
9.15
9.25
9.25
9.20
9.15

8.99
8.84
8.69

1971
1972
1973
1974

1 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, as
compiled by Federal H o m e Loan Bank Board in cooperation with Federal
Deposit Insurance Corporation. D a t a are not strictly comparable with
earlier figures beginning Jan. 1973.
2 Fees and charges—related to principal mortgage amount—include
loan commissions, fees, discounts, and other charges, but exclude closing
costs related solely to transfer of property ownership.
3 Effective rate, reflecting fees and charges as well as contract rates
N O T E T O T A B L E A T B O T T O M O F P A G E A-44;
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
n o n f a r m 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




9.16
9.06
9.13
9.32
9.74
9.53
9.41
9.32

(as shown in first column of this table) and an assumed prepayment at
end of 10 years.
4 Rates on first mortgages, unweighted and rounded to the nearest
5 basis points.
5 Based on opinion reports submitted by field offices of prevailing
local conditions as of the first of the succeeding month. Yields are derived
f r o m 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.
amortization and prepayment terms. D a t a 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.

A 44

REAL ESTATE CREDIT • FEBRUARY 1976

FEDERAL NATIONAL MORTGAGE ASSOCIATION AUCTIONS OF COMMITMENTS TO BUY HOME MORTGAGES
Date of auction
Item

1975

Amounts (millions of dollars):
Govt.-underwritten loans
Offered 1
Accepted
Conventional loans
Offered i
Accepted
Average yield (per cent) on shortterm commitments 2
Govt.-underwritten loans
Conventional loans

Aug. 25

Sept. 8

Sept. 22

Oct. 6

Oct. 20

Nov. 3

Nov. 17

Dec. 1

Dec. 15

Dec. 29

Jan. 12

Jan. 26

643.1
223.0

530.1
197.7

293.6
142.0

198.5
143.0

43.2
23.2

69.8
41.7

293.1
180.6

255.9
138.5

287.1
158.8

95.3
52.7

58.4
31.5

103.9
57.7

98.5
31.0

96.9
43.9

68.8
35.2

27.5
23.5

9.7
9.2

19.6
15.2

68.6
34.6

73.9
40.5

69.7
31.2

41.8
11.8

42.7
32.1

33.4
24.7

9.50
9.55

9.70
9.75

9.86
9.92

9.95
10.02

9.65
9.81

9.32
9.54

9.33
9.40

9.32
9.38

9.31
9.36

9.29
9.35

9.13
9.28

9.07
9.22

1 M o r t g a g e a m o u n t s o f f e r e d by bidders are total bids received.
2 Average accepted bid yield (before deduction of 38 basis-point fee
paid for mortgage servicing) 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.NMA stock purchase and holding requirements. Commitments mature in 4 months.

MAJOR HOLDERS OF FHA-INSURED AND VA-GUARANTEED RESIDENTIAL MORTGAGE DEBT
(End of period, in billions of dollars)

Holder
All holders
F HA
VA
Commercial banks
F HA
VA
Mutual savings banks
FHA
VA
F HA
VA
Life insurance cos.
FHA
VA
Others
FHA
.

Mar. 31,
1974

June 30,
1974

Sept. 30,
1974

Dec. 31,
1974

Mar. 31,
1975

June 30,
1975

Sept. 30,
1975

136.7
85.0
51.7
11.1
7.8
3.3
28.2
15.3
12.9

137.8
84.9
52.9

138.6
84.1
54.5
10.7
7.4
3.3
27.8
15.0
12.8

140.3
84.1
56.2
10.4
7.2
3.2
27.5
14.8
12.7

142.0
84.3
57.7
10.5
7.2
3.3
r
2
7.2
r
14.7
r
12.5

143.0
85.0
5r 8 . 0
9.6
r
6.4
'3.2
r
27.2
'14.7
r
12.5

144.9
85.1
59.8
9.7
6.4
3.3
27.0
14.5
12.5

30.2
12.2
8.2
4.0
62.2

30.4
12.1
8.1
4.0
65.7

}

29.8
13.3
9.0
4.3
54.3

11.0

7.6
3.4
27.9
15.1
12.8
}

}

29.7
13.1
8.8
4.3
56.1

NOTE.—VA-guaranteed residential mortgage debt is for 1- to 4-family
properties while FHA-insured includes some debt in multifamily structures.

29.9
12.9
8.7
4.2
57.4

}

29.9
12.7
8.6
4.2
59.9

}

29.9
12.5
8.4
4.1
61.6

}

Detail by type of holder partly estimated by Federal Reserve for first
and third quarters, and for most recent quarter.

COMMITMENTS OF LIFE INSURANCE COMPANIES FOR INCOME PROPERTY MORTGAGES
Averages
Number
of loans

Total
amount
committed
(millions of
(dollars)

1,664
2,132
2,140
1 ,166

1974-- S e p t
Oct
Nov
Dec
1975-—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept

Period

1971
1972
1973.
1974,

Loan
amount
(thousands
of dollars)

Contract
interest
rate
(per cent)

Maturity
(yrs./mos.)

Loanto-value
ratio
(per cent)

Capitalization rate
(per cent)

Debt
coverage
ratio

Per cent
constant

3,982.5
4,986.5
4,833.3
2,603.0

2,393
2,339
2,259
2,232

9.07
8.57
8.76
9.47

22/10
23/3
23/3
21/3

74.9
75.2
74.3
74.3

10.0
9.6
9.5
10.1

1.29
1.29
1.29
1 .29

10.4
9.8
10.0
10.6

95
57
47
37

241.6
108.3
79.7
140.0

2,543
1,899
1,695
3,784

10.04
10.29
10.37
10.28

20/11
19/7
18/4
19/10

74.4
74.6
74.0
74.8

10.3
10.6
10.7
11.0

1.29
1.25
1.26
1.33

11.1
11.5
11 .6
11.3

31
46
46
32
73
61
53
44
57

43.8
94.6
109.6
108.4
227.5
167.5
178.6
106.5
123.8

1,414
2,057
2,382
3,386
3,116
2,745
3,370
2,420
2,172

10.44
10.08
10.37
10.02
10.23
10.11
10.19
10.26
10.24

18/4
22/11
23/1
23/0
20/9
21/9
20/7
21/2
22/8

71.9
74.3
74.1
75.6
74.7
73.0
74.6
72.7
73.6

10.9
11.3
10.8
10.8
10.5
10.9
10.8
10.7

11.0

1.33
1.34
1.34
1.36
1.30
1.29
1.31
1.32
1.37

11.9
11.0
11 .3
10.8
11.1
11.2
11.3
11.4
11.1

See NOTE on preceding page.




F E B R U A R Y 1976 • C O N S U M E R

CREDIT

A 45

INSTALMENT CREDIT-TOTAL OUTSTANDING, AND NET CHANGE
(In millions of dollars)
1975
Holder, and type of credit

1973

1974

1975
June

July

Aug.

Sept.

Oct.

Nov.

Dec.

Amounts outstanding (end of period)
148,273

158,101

161,819

154,283

155,419

156,765

157,720

158,390

159,200

161,819

71,871
37,243
19,609
16,395
3,155

75,846
38,925
22,116
17,933
3,281

75,710
38,932
25,354
18,328
3,495

73,687
37,828
23,186
16,079
3,503

74,232
38,177
23,507
15,963
3,540

74,701
38,340
24,043
16,172
3,509

75,024
38,375
24,510
16,232
3,579

75,286
38,411
24,706
16,444
3,543

75,174
38,642
24,934
16,860
3,590

75,710
38,932
25,354
18,328
3,495

Automobile, total
Commercial banks
Finance companies
Credit unions
Others

51,274
31,502
11,927
7,456
389

52,209
30,994
12,435
8,414
366

53,629
30,198
13,364
9,653
414

51,453
29,633
12,571
8,823
426

52,088
29,923
12,793
8,945
427

52,545
30,000
12,982
9,149
414

52,852
30,031
13,066
9,329
426

53,286
30,259
13,203
9,403
421

53,479
30,235
13,325
9,491
428

53,629
30,198
13,364
9,653
414

Mobile homes:
Commercial banks
Finance companies

8,340
3,378

8,972
3,570

8,420
3,504

8,639
3,508

8,606
3,503

8,583
3,498

8,566
3,499

8,519
3,498

8,502
3,519

8,420
3,504

Home improvement, t o t a l . .
Commercial banks

7,453
4,083

8,398
4,694

8,301
4,813

8,202
4,632

8,272
4,695

8,329
4,757

8,372
4,797

8,374
4,824

8,361
4,827

8,301
4,813

Revolving credit:
Bank credit cards
Bank check credit

6,838
2,254

8,281
2,797

9,078
2,883

8,015
2,741

8,088
2,765

8,259
2,793

8,414
2,826

8,450
2,834

8,500
2,822

9,078
2,883

68,736
18,854
12,873
21,021
16,587
11,564
16,395
902

73,874
20,108
13,771
21,927
17,176
13,037
17,933
869

76,004
20,318
14,035
21,465
17,179
14,937
18,328
956

71,727
20,029
13,659
20,942
16,654
13,665
16,079
1,012

72,096
20,154
13,731
21,103
16,845
13,855
15,963
1,021

72,757
20,308
13,856
21,119
16,868
14,170
16,172
988

73,192
20,390
13,935
21,104
16,858
14,443
16,232
1,022

73,430
20,401
14,005
21,037
16,822
14,559
16,444
989

74,018
20,289
13,943
21,158
16,942
14,692
16,860
1,019

76,004
20,318
14,035
21,465
17,179
14,937
18,328
956

TOTAL
By holder:
Commercial banks
Finance companies
Credit unions
1
Retailers
Others 2
By type of credit:

All other
Commercial banks, total.
Personal loans
Finance companies, total
Personal loans
Credit unions
Retailers
Others

Net change (during period) 3
20,826

9,824

3,719

208

886

637

759

830

805

894

11,002
5,155
2,696
1,632
341

3,971
1,682
2,507
1,538
126

-134
7
3,237
395
214

-39
9
273
-102
67

302
197
316
-14
86

209
21
291
181
-65

295
95
428
-107
49

309
36
255
258
-29

233
157
270
84
61

310
34
471
125
-44

Automobile, total
Commercial banks
Finance companies
Credit unions
Other

6,980
4,196
1,753
1,024
7

935
-508
508
958
-23

1,420
-796
929
1 ,239
48

2
-139
58
76
7

383
135
127
122
-1

213
8
126
86
-7

385
117
91
154
23

389
164
103
122

404
163
144
91
5

540
260
89
184
6

Mobile homes:
Commercial banks
Finance companies

1,933
462

634
192

-553
-66

-49
-2

-32
-17

-24
-11

-17
-10

-62
-7

-6
26

-61
-10

H o m e improvement, t o t a l . .
Commercial banks

1,196
483

946
612

-100
114

10
6

38
31

-4
24

19
27

-6
23

38
42

23
41

Revolving credit:
Bank credit cards
Bank check credit

1,428
479

1,442
543

798
86

102
-12

69
15

113
12

106
14

78
17

29
2

-49
13

All other
Commercial banks, t o t a l . .
Personal loans
Finance companies, t o t a l .
Personal loans
Credit unions
Retailers
Others

8,344
2,479
1,491
2,520
1,675
1,591
1,632
122

5,141
1,257
900
906
589
1,473
1,538
-33

2,133
213
265
-462
-3
1,900
395
87

156
53
37
-21
-21
181
-102
46

430
84
31
115
161
185
-14
60

338
76
48
-58
-38
189
181
-49

262
48
45
49
59
260
-107
13

420
89
119
-27
-7
127
258
-28

312
2
-6
20
15
173
84
33

440
107
149
-4
23
274
125
-61

TOTAL
By holder:
Commercial banks
Finance companies
Credit unions
Retailers
Others
By type of credit:

1 Excludes 30-day charge credit held by retailers, oil and gas companies,
and travel and entertainment companies.
2 Mutual savings banks, savings and loan associations, and auto dealers.




3
Figures for all months are seasonally adjusted and equal extensions
minus liquidations (repayments, charge-offs, and other credits).
NOTE.—Tables contain a few minor changes in monthly figures shown
in January Bulletin due to rounding techniques.

A 46

C O N S U M E R C R E D I T • F E B R U A R Y 1976
INSTALMENT CREDIT EXTENSIONS AND REPAYMENTS
(In millions of dollars)

Holder, and type of credit

1973

1974

1975

1975
June

July

Aug.

Sept.

Oct.

Nov.

Dec.

Extensions 1
164,527

166,170

166,833

13,620

14,322

14,427

14,555

14,832

14,877

15,295

72,216
43,221
21,143
25,440
2,507

72,602
41,809
22,403
27,034
2,322

73,186
39,543
24,151
27,369
2,584

5,940
3,316
1,900
2,199
264

6,311
3,423
2,098
2,208
282

6,362
3,387
2,056
2,479
144

6,529
3,459
2,156
2,164
247

6,518
3,412
2,187
2,531
183

6,599
3,712
1,995
2,302
268

6,796
3,530
2,381
2,431
158

Automobile, total
Commercial banks
Finance companies
Credit unions
Others

46,486
29,368
9,685
7,009
424

43,431
26,407
8,851
7,788
385

46,530
26,693
9,651
9,702
484

3,753
2,132
787
789
45

4,124
2,371
868
847
38

4,032
2,355
805
840
31

4,235
2,436
865
873
61

4,189
2,434
836
878
41

4,218
2,460
831
885
42

4,405
2,591
897
875
42

Mobile homes:
Commercial banks
Finance companies

4,437
1,673

3,486
1,627

2,349
1,018

185
85

227
81

211
82

222
83

198
81

233
97

203
88

H o m e improvement, t o t a l . . .
Commercial banks

4,828
2,489

4,854
2,790

4,333
2,515

379
204

395
222

363
219

388
224

392
238

409
243

418
253

Revolving credit:
Bank credit cards
Bank check credit

13,862
3,373

17,098
4,228

19,567
4,214

1,606
327

1,618
346

1,689
353

1,737
350

1,698
357

1,752
348

1,719
412

All other
Commercial banks, t o t a l . .
Personal loans
Finance companies, t o t a l .
Personal loans
Credit unions
Retailers
Others

89,864
18,683
12,927
31,032
18,915
13,768
25,440
941

91,455
18,602
13,177
30,764
18,827
14,228
27,034
827

88,818
17,844
12,623
28,654
18,406
13,992
27,369
959

7,285
1,485
1,049
2,418
1,596
1,066
2,199
117

7,531
1,527
1,026
2,454
1,621
1,210
2,208
132

7,697
1 ,535
1,083
2,482
1,653
1 ,169
2,479
32

7,539
1 ,560
1,105
2,489
1,624
1,238
2,164
89

7,915
1,593
1,144
2,474
1,613
1,269
2,531
48

7,819
1,562
1,076
2,771
1,674
1,074
2,302
111

8,051
1,619
1,178
2,527
1,513
1,461
2,431
14

By holder:
Commercial banks
Finance companies
Credit unions
Retailers 2
Others 3
By type of credit:

Repayments 1
143,701

156,346

163,113

13,412

13,436

13,790

13,795

14,002

14,072

14,401

61,214
38,066
18,447
23,808
2,166

68,631
40,127
19,896
25,496
2,196

73,320
39,536
20,914
26,974
2,370

5,979
3,307
1 ,628
2,301
198

6,009
3,227
1,782
2,222
196

6,153
3,366
1,764
2,298
208

6,234
3,364
1,728
2,271
198

6,209
3,376
1,932
2,273
212

6,367
3,555
1,725
2,218
208

6,486
3,496
1,910
2,306
202

Automobile, total
Commercial banks
Finance companies
Credit unions
Others

39,506
25,172
7,932
5,985
417

42,496
26,915
8,343
6,830
408

45,110
27,489
8,722
8,463
436

3,751
2,271
729
713
38

3,741
2,236
740
725
39

3,818
2,347
679
755
38

3,849
2,319
773
719
38

3,800
2,271
733
756
40

3,814
2,297
687
794
37

3,865
2,331
808
691
36

Mobile homes:.
Commercial banks
Finance companies

2,504
1,211

2,852
1,435

2,902
1,084

234
87

259
98

235
93

239
94

260
88

239
72

264
98

H o m e improvement, t o t a l . . .
Commercial banks

3,632
2,006

3,908
2,178

4,434
2,400

368
198

357
191

367
195

369
197

398
214

371
202

395
212

Revolving credit:
Bank credit cards
Bank check credit

12,434
2,894

15,656
3,685

18,769
4,128

1,504
340

1,548
331

1,576
341

1,631
336

1,619
340

1,723
346

1,768
399

All other
Commercial banks, t o t a l . .
Personal loans
Finance companies, t o t a l .
Personal loans
Credit unions
Retailers
Others

81,520
16,204
11,436
28,512
17,240
12,177
23,808
819

86,314
17,345
12,277
29,858
18,238
12,755
25,496
860

86,689
17,635
12,361
29,116
18,403
12,092
26,974
872

7,129
1,432
1,012
2,439
1,617
885
2,301
72

7,102
1,443
995
2,339
1,460
1,025
2,222
72

7,359
1,459
1,035
2,540
1,691
981
2,298
81

7,277
1,512
1,060
2,440
1,565
978
2,271
76

7,496
1,504
1,025
2,501
1 ,620
1,142
2,273
76

7,507
1,560
1,082
2,751
1,659
901
2,218
77

7,611
1,512
1,029
2,531
1,490
1 ,187
2,306
75

TOTAL
By holder:
Commercial banks
Finance companies
Credit unions
2
Retailers
Others 3
By type of credit:

1
2

Monthly figures are seasonally adjusted.
Excludes 30-day charge credit held by retailers, oil and gas companies,
and travel and entertainment companies.




3

Mutual savings banks, savings and loan associations, and auto dealers.

NOTE.—Tables contain a few minor changes in monthly figures shown
in January Bulletin due to rounding techniques.

FEBRUARY 1976 • CONSUMER CREDIT

A 47

FINANCE RATES ON SELECTED TYPES OF INSTALMENT CREDIT
(Per cent per annum)
Finance companies

Commercial banks
Other
consumer
goods
(24 mos.)

Personal
loans
(12 mos.)

11.09
11.25
10.92
11.07
10.96
11.21
11.46
11.71
11.72
11.94
11.87
11.71

12.78
12.82
12.82
12.81
12.88
13.01
13.14
13.10
13.20
13.28
13.16
13.27

12.96
13.02
13.04
13.00
13.10
13.20
13.42
13.45
13.41
13.60
13.47
13.60

17.25
17.24
17.23
17.25
17.25
17.23
17.20
17.21
17.15
17.17
17.16
17.21

11.66
12.14
11.66
11.78
11.57
12.02
11.94
11 .80
11.99
12.05
11 .76
11.83

13.28
13.20
13.07
13.22
13.11
13.10
13.13
13.05
13.06
13.00
12.96
13.11

13.60
13.44
13.40
13.55
13.41
13.40
13.49
13.37
13.41
13.38
13.40
13.46

17.12
17.24
17.15
17.17
17.21
17.10
17.15
17.14
17.14
17.11
17.06
17.13

New
automobiles
(36 mos.)

Mobile
homes
(84 mos.)

1974—Jan..
Feb.
Mar.
Apr.
May
June
July.
Aug.
Sept.
Oct..
Nov.
Dec.

10.55
10.53
10.50
10.51
10.63
10.81
10.96
11.15
11.31
11.53
11.57
11.62

1975—Jan..
Feb..
Mar.
Apr.
May
June
July.
Aug.
Sept.
Oct..
Nov.
Dec.

11.61
11.51
11 .46
11.44
11.39
11.26
11.30
11 .31
11.33
11.24
11.24
11.25

Month

NOTE.—Rates are reported on an annual percentage rate basis as
specified in Regulation Z (Truth in Lending) of the Board of Governors.
Commercial bank rates are " m o s t c o m m o n " rates for direct loans with




Creditcard
plans

Mobile
homes

Other
consumer
goods

'13.27

18.90

'20.64

18.69

'20.53'

'13.08

18.90

'20.54

'13.22

'19.25

'2O!74

'13.43

'19.31

'20.87

19.49

"'iiiii'

Automobiles
New

Used

12.39
12.33
12.29

12.67
12.84
12.97
13.06
13.10

16.56
16.62
16.69
16.76
16.86
17.06
17.18
17.32
17.61
17.78
17.88
17.89

13.08
13.07
13.07
13.07
13.09
13.12
13.09
13.10
13.18
13.15
13.17

17.27
17.39
17.52
17.58
17.65
17.67
17.69
17.70
17.73
17.79
17.82

12.28

12.36
12.50

12.58

i 3 * i 5"

i 3.60

Personal
loans

13.60

19.80

'21.09

13.59

ioioo'

'20!82

13.57

19.63

'20.72

i 9! 87

'2O!93

13.78

19.69

' 2 1 .16

i 3! 43

i 9! 66

'2i.09'

" i 3!78 *

specified maturities; finance company rates are weighted averages for
purchased contracts (except personal loans). F o r back figures and description of the data, see BULLETIN for Sept. 1973.

A 48

INDUSTRIAL PRODUCTION: S.A. • FEBRUARY 1976
MARKET GROUPINGS
(Seasonally adjusted, 1967 = 100)

Grouping

1967
proportion

1974
average

1975
Mar.

Apr.

100.0 124.8 113.7

111 .2

110.0

109.9 110.1

62.21
48.95
28.53
20.42
13.26
37.79

113.7! 112.4 112.9
113.3 112.2 112.6
118.8
1 1 8 . 2 119.6
105.3 103.9 103.0
115.2! 112.7 113.4
107.4 105.9 105.2

111.1

112.2 114.2 116.2 116.7

117.4

114.2
114.5
123.3
102.2
112.
106.0

115.3
115.7
125.5
102.2
114.3
106.8

116\ 9
117.0
127.0
102.6
117.0
116.5

117.8
117.8
128.6
102.8
117.8
116.5

7.86 127.9 104.0 101.0 103.1 107.8 110.5 113.2 115.9 116.1 118.3 118.3
2.84 110.0 80.3 78.2 86.8 93.6 97.6 103.4 106.9 105.9 106.7 108.9
1.87 94.9 62.6 58.9 73.1 82.4 86.3 93.2 97.7 96
97.9 101.2
.97 139.0 114.4 115.5 113.2 115.2 119.3 122.8 124.8 123.2 123.5 123.9

119.0
109.7
100.0
128.4

Home goods
Appliances, TV, and radios. . .
Appliances and A/C
TV and home audio
Carpeting and furniture
Misc. home goods

5.02
1.41
.92
.49
1.08
2.53

139.3
128.

Nondurable consumer goods
Clothing
Consumer staples
Consumer foods and tobacco..

20.67
4.32
16.34
8.37

Nonfood staples
Consumer chemical products
Consumer paper products...
Consumer fuel and lighting .
Residential utilities

7.98
2.64
1.91
3.43
2.25

123.1
121.7
128.8
111.7
128.3
127.4

115.4
114.9
120.li
107.8
117.6
110.5

May

113.4
113.7
121 .2
102.9
112.4
104.9

Aug.

Oct. r Nov.

July

Total index

Feb.

Sept. r

June

Products, total
Final products
Consumer goods
Equipment
Intermediate products
Materials

Jan.

1976

115.8
115.9
125.7
102.3
115.4
111.5

116.9
116.9
126.8
102.
116.6
115.1

Dec.*>

Consumer goods
Durable consumer goods
Automotive products
Autos
Auto parts and allied goods.. .

138.0 117.5 114.0
132.0 94.4 89.0
148.8 108.0 104.8
153.5
134.7

135.1 132.3
123.0 120.1

112.3 115.9 117.8 1 1 8 . 8 121 .0 121.9 125.0 123.6 124.2
85.0 96.7 102.4 103.5 104.7 106.5 108.4 105.4 104.6
99.
114.2 118.4 118.3 118.9 122.2 124.1 123.4 122.8
127.9 127.8 128.6 131.1
121.0 121.4 121 .7 122.1

135.5 136.0 137.6 137.9
124.0 124.5 129.0 127.4

129.2 126.3 125.5 124.1 124.0 125.3 127.2 129.0
109.0 95.0 94
90.9 89.2 94.4 97.7 101.6
134.5 134.5 133.6 132.7 133.3 133.5 134.9 136.3
125.4 123.3 123.2 120.7 122.7 122.4 124.1 125.5
146.4 144.5
160.6 157.1
122.0 121 .9
149.2 147.2
159.9 159.7

129.4
102.0
136.6
125.

130.1
101.5
137.8
126.4

130.5
104.5
137.3
127.2

132.5
106.
139.6
129.9

148.1
161 .7
126.4
149.5
160.1

149.7
165.8
125.5
150.7
161.5

145.3
158.2
120.9
149.0
163.1

144.3
157.6
118.4
148.6
161 .9

145.3
158.4
122.8
147.8
160.9

146.4
159.2
123.3
149.4
161 .3

147.7 148.0 149.9
161.2 160.4 161.6
124.1 126.7 127.7
150.4 150.3 153.2
160.5 161.1 164.

122.3 119.3 117.0
122.9 120.4 118.8
138.4 137.0 137.7
111 .8 109.4 106.6
136.6 132.1 131.8

115.4
116.4
132.3
105.6
128.9

115.0
115.3
131 .7
105.0
126.2

113.9
114.0
127.7
104.3
125.8

113.9
113.3
126.9
105.5
120.3

114.9
113.4
128.3
105.1
120.8

115.6 115.7
114.5 115.4
129.7 133.1
104.5 104.0
125.7 127.9

116.4
116.2
136.5
103.5
129.3

114.2 114.7 113.9 114.6
130.3 121 .6 1 1 8 . 0 115.
141.1 135.2 130.4 127.1 123.2 121 .5 120.7 123.0
92.2 98.6 98.0 98.0
109.6 91 .8 91 .5 88.!
138.7 143.8 135.9 130.2 135.7 129.0 127.3 122.9

116.5
123.4
101.5
127.7

116.9
122.6
105.0
124.3

116.2
123.3
100.4
128.0

116.7
123.3
101 .7
128.6

81.4
80.6

81.6
80.7

81.1
80.2

80.2
78.6

107.6 106.8 108.0 109.3 112.0 112.5
116.2 117.5 119.3 120.3 120.3 120.7

112.5
122.2

144.0
158.4
125.2
143.8
153.7

Equipment
Business equipment
Industrial equipment
Building and mining equip.. . .
Manufacturing e q u i p m e n t . . . .
Power equipment
Commercial, transit, farm equip..
Commercial equipment
Transit equipment
Farm equipment
Defense and space equipment
Military products

12.74 129.4
6.77 128.7
1.45 136.0
3.85 121.7
1.47 139.9
5.97
3.30
2.00
.67
7.68
5.15

82.3
81.2

83.8
81.5

82.4
80.7

82.1
80.3

82.4
80.7

82.7
82.0

82.9
82.0

82.6
82.1

Intermediate products
Construction products
Misc. intermediate products

5.93 129.6 115.7 112.1
7.34 127.3 119.2 118.4

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

109.
110.1
115.6 116.1

20.91
4.75
5.41
10.75

127.3 110.3 107.0 104.7 101.6 100.2
84.7 86.0 87.7
83.7 82.1
112.1
123.8 116.9 112.0 108.7 104.6 102.1
111.4
115.4
106.9 104.7
135.9 118.8

13.99
8.58
5.41
2.89

128.5
139.8
110.6
122.6

109.2
112.9
103.3
117.8

105.7 105.3
108.5 106.2
101.1 103.9
1 1 8 . 2 118.0

107.9
110.4
104.0
117.5

99.8 100.3
90.8 92.
97.3 96.8
105.1 105.3

109.5 112.3
113.2 117.0
103.7 105.1
118.0 119.5

106.1
101.7
100.7
111.0

114.0 118.2
118.9 126.0
106.2 106.0
121.1 118.4

108.7
103.0
102.4
114.5

110.1
102.4
105.2
116.3

110.5
102.8
106.5
116.0

123.4 125.0
133.9 136.1
106.7 107.3
121.3 120.6

124.6
136.1
106.4
120.3

Supplementary groups
Home goods and clothing
Containers

9.34 124.6 107.1
1.82 139.4 126.1

105.0
119.9

102.3 103.6 106.9 109.1 112.0 112.8 114.2 114.7 115.8
122.3 124.2 124.3 128.4 132.
133.5 142.7 137.6 132.6

Gross value of products
in market structure
(In billions of 1963 dollars)
Products,
total
Final products
Consumer goods
Equipment
Intermediate products
For NOTE see opposite page.




286.3
221.4
156.3
65.3
64.9

416.4
322.3
216.4
105.9
94.3

410.1 405.1 409.6 408.6 414.5
317.7 315.3 319.0 319.4 1 325.0
213.7 213.2 217.6 217.8; 223.6
103.9 102.2 101 .4 101.5 101.3
89.21 89.6
92.3 90.0 90.5

416.1 418.1 426.1 425.8 429.4 436.9
325.2
224.9
100.5
91.1

326.3
225.4
100.9
92.9

332.9
230.8
102.3
92.9

333.7
231.7
101.7
93.0

336.6,
234.7
101.9
93.6

340.7
238.3
102.3
95.8

FEBRUARY 1976 • INDUSTRIAL PRODUCTION: S.A.

A 49

INDUSTRY GROUPINGS
(Seasonally adjusted, 1967 = 100)

Grouping

1967
proportion

1974

88.55
52.33
36.22
11.45
6.37
5.08

12.55
6.61
4.23
5.94

Aug.

Sept. r O c t . r

109.5 110.6
103.2 103.5
118.6 120.8
126.8 127.4
106.3 106.4
152.6 153.7

112.8
105.4
123.4
127.0
105.0
154.6

114.7
107.0
125.7
127.8
105.3
156.1

115.8 116.4 117.4 118.2
107.6 107.8 108.6 109.4
127.2 129.0 130.6 131.0
127.0 127.4 126.0 127.1
106.4 106.0 103.3 104.7
152.9 154.2 155.0 155.7

100.8 100.7
91 .8 9 2 . 8
88.7
87.0
110.9 109.7

104.1
96.5
90.4
112.7

106.1
97.2
91.3
116.1

105.9
97.0
93.2
115.9

101.9 101.7
110.8 109.0
116.9 113.7
104.0 103.8
87.6
84.7
95.0
93.1
80.4
76.6
131.1 129.7
86.7
86.7

102.3
108.2
112.3
103.8
90.5
100.0
81 .3
130.9
87.7

102.4
108.4
112.9
103.4
91 .0
103.2
79.3
132.4
86.4

103.7
110.0
115.1
104.4
92.9
107.2
79.1
132.1
84.3

102.6
99.8
104.2

104.8
104.1
105.4

105.9
108.0
104.7

107.0
110.3
105.1

108.3
112.0
106.2

110.6
114.5
108.3

119.6
110.6
128.0

118.7
106.7
129.7

117.6
105.6
128.5

119.7
109.6
129.0

120.1
107.9
131.1

121.2 123.1
109.4 109.6
131 .8 135.3

88.9
95.6
94.0
66.1

89.6
93.3
92.6
66.7

87.5
96.8
86.4
63.5

90.4
100.4
88.2
68.0

93.2
103.8
90.9
70.0

94.9
106.9
91.5
71.2

97.4
110.7
92.9
73.5

108.2
114.3
104.1

106.6
109.5
104.7

104.2
104.5
104.0

102.4
105.8
100.2

103.9
105.8
102.6

107.3
109.5
105.9

131.0
132.8
120.2
133.5

132.5
135.7
118.5
132.7
122.4
123.8
103.8

May

June

124.4 111.7 109.2 107.7 107.9
120.7 108.2 104.8 103.5 103.3
129.7 117.0 115.6 113.7 114.8
127.3 127.0 127.3 128.8 128.1
109.3 107.0 108.6 108.9 108.5
149.9 153.0 150.9 154.0 153.1

108.2
102.5
116.1
126.5
105.9
152.3

127.5 112.4
124.1 107.2
119.9 110.6
131.4 118.2

107.7 105.1 103.2
98.1
95.0
102.1
105.0 103.1 9 9 . 4
1 1 3 . 7 112.9 112.4

99.8
89.9
90.1
100.9

32.44
17.39
9.17
8.22
9.29
4.56
Aerospace and misc. trans, e q . . . 4 . 7 3
2.07
3.69

116.3
128.1
133.8
125.2
96.9
113.2
81.1
143.9
86.1

105.4
119.6
126.7
111 .5
78.9
78.2
79.5
139.1
86.2

102.4 101.5
115.6 112.2
123.C 119.3
106.6 104.3
81.0
77.1
85.4
77.6
76.7
76.6
130.6
134.2
86.7
86.9

4.44
1.65
2.79

123.6
120.1
125.7

109.6
99.9
115.3

104.6
99.6
107.8

2.90
1.38
1.52

136.1
126.9
144.4

120.0
110.6
128.9

6.90
2.69
3.33
.88

108.9
122.7
105.4
77.3

7.92
3.18
4.74

121.0
134.0
112.3

Utilities

1976

1975

age
Jan.

Feb.

Mar.

Apr.

July

Nov.

Dec.®

Jan.®

Durable manufactures

Lumber and products
Clay, glass, and stone products
Furniture and miscellaneous
Furniture and fixtures
M iscellaneous manufactures

105.1
94.5
92.1
117.0

107.1
96.3
95.4
119.1

105.0 105.8
111 .7 112.9
116.7 117.7
106.1 107.6
94.7
94.3
110.1 111 .0
79.2
79.0
134.5 134.5
84.2
83.9

106.2 107.5
114.1 115.7
119.1 119.8
108.7 111 .0
94.1
95.4
109.4 110.2
81.0
79.4
137.0 138.2
81 .7 82.5

107.6
116.5
120.4
112.1
94.2
109.3
79.7
140.0
82.1

113.1 114.4
115.5 116.8
111 .7 113.0

112.0
115.0
110.3

115.5
118.3
113.9

117.5

124.3
110.6
136.7

122.8
110.7
133.7

123.9
111.2
135.2

125.5

104.0 106.0
121.2 123.2
98.0
96.1
83.8
81 .2

108.2 109.5
124.7 126.9
101 .3
83.5
81.4

109.4

107.3 110.8
111 .7 116.4
104.4 107.1

113.9
124.0
107.1

114.8
127.0
106.5

114.7
127.3
106.2

117.5
129.8
109.2

118.7

136.2
138.2
122.4
140.1

140.2
143.4
124.6
141.6

143.6
146.3
126.7
147.8

146.2
148.8
127.1
152.0

148.5
152.5
126.5
153.1

150.3
154.1
128.2
154.4

152.8
156.7
129.4
157.7

152.5
158.0
124.7

123.5
125.1
102.2

124.8
126.3
104.8

125.2
126.7
105.7

126.0
127.4
109.3

126.3 129.2
127.3 130.4
111 .9 113.7

129.2
130.2

130.4
131.6

101.5 105.0
110 6 110.3
9 5 . 3 101.4

107.2
119.2
98.9

107.2
118.5
99.5

108.0
119.8
100.0

110.0
122.1
101.7

108.9
120.5
101.1

110.3

101.9
106.4
101.2

103.3
107.3
102.7

124.6
110.8
137.2

107.0
98.1
96.0
117.1

Nondurable manufactures
7 ex tiles apparel and leather
Textile mill products
..
A nnor/=» 1 nroHnrt?
Leather and products

•.
..

Paper and printing
Paper and products
Printing and publishing

100.2
115.0
95.8
71.7

Chemicals, petroleum, and
rubber.... 11.92
7.86
Chemicals and products
1.80
Petroleum products
1? nhhpr anrl nlactiPQ nrnHnf^tQ
2.26

151.7
154.3
124.0
164.4

136.5
139.0
126.8
135.4

132.4 130.2
134.6 133.6
123.7 120.1
132.0 126.8

9.48
8.81
.67

124.8
126.2
106.4

120.0
121.2
104.7

121.3 120.0
122.3 121.3
108.4 102.6

122.4
122.9
115.9

Metal stone and earth minerals
Metal mining
anH PQrtli minpr^lc

1.26
.51
.76

117.2
129.2
109.1

119.1
133.8
109.0

116.2 113.4
131 .1 125.4
106.1 105.1

113.3 106.2
125 .8 114.8
104.7 100.4

Coal oil and
gas..................
Coal
Oil and gas extraction

5.11
.69
4.42

107.3
105.1
107.7

103.9
111.3
102.9

106.8
117.5
105.0

107.7
117.4
106.1

107.4
112.2
106.6

105.8
113.6
104.5

107.6
120.4
105.5

106.7
120.6
104.5

104.4
105.7
104.2

104.8
113.6
103.4

106.1
114.6
104.8

105.0
119.9
102.8

3.90
1.17

159.5
117.9

162.5

161.1

165.4

164.1

163.0

163.3

164.7

165.8

167.8

163.4

165.4

Foods and tobacco
Foods
Tnhn^pn nrnHnpfc

110.8

Mining

Utilities
Electric

••••••••••••

NOTE
D a t a for t h e complete year of 1 9 7 2 are available in a pamphlet
Industrial Production Indexes 1972 f r o m Publications 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 Industrial Production release.

A 50

B U S I N E S S A C T I V I T Y ; C O N S T R U C T I O N • F E B R U A R Y 1976
SELECTED BUSINESS INDEXES
(1967= 100, except as noted)

CaNonagpacity
riculutiliza- Constructural
tion
emin mfg. tion
ploycon(1967
tracts ment—
Manu- output
Total i
factur- = 100)
ing
Industry

Market
Periotl 1

Products

Total

Final

Total
Total

Prices 4

Manufacturing 2

Industrial production

InterCon- Equip- mediate
sumer ment
goods

Materials

Employment

Payrolls

Total
retail
sales 3

Consumer

Wholesale
commodity

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

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

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

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

68.6
70.2
78.1
86.1
89.4

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
103.2
106.9

93.9
99.9
100.0
101.4
103.2

88.1
97.8
100.0
108.3
116.6

90
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
1974

106.6
106.8
115.2
125.6
124.8

106.0
106.4
113.8
123.4
123.1

104.5
104.7
111.9
121 .3
121 .7

110.3 96.3 111.7
115.7
89.4 112.6
123.6 95.5 121.1
131 .7 106.7 131 .1
128.8 111 .7 128.3

107.7
107.4
117.4
129.3
127.4

105.2
105.2
114.0
125.2
124.4

78.3
75.0
78.6
83.0
78.9

123.1
145.4
165.3
179.7
168.6

107.7
108.1
111.9
116.8
119.1

98.1
94.2
97.6
103.2
102.1

114.1
116.7
131.5
149.2
157.1

119
130
142
160
171

116.3
121.2
125.3
133.1
147.7

110.4
113.9
119.8
134.7
160.1

1974-—Dec

117.3

118.7

118.2

123.4

120.5

114.8

116.1

575.7

176.0

118.0

96.5

153.2

171

155.4

171.5

120.1 107.8 117.6
118.8 105.3 115.2
118.2 103.9 112.7
119.6 103.0 113.4
121 .2 102.9 112.4
123.3 102.2 112.8
125.5 102.2 114.3
125.7 102.3 115.4
126.8 102.8 116.6
127.0 102.6 117.0
128.6 102.8 117.8
130.8 103.6 120.4

110.5
107.4
105.9
105.2
104.9
106.0
106.8
111 .5
115.1
116.5
116.5
116.4

111.7
109.2
107.7
107.9
108.2
109.5
110.6
112.8
114.7
115.8
116.4
117.4

135.0
139.0
153.0
189.0
182.0
174.0
165.0
208.0
157.0
'166.0
148.0
137.0

117.4
116.6
116.1
116.1
116.2
115.9
116.4
116.9
117.4
117.8
117.8
118.1

93.9
91 .2
90.3
89.9
90.1
89.8
89.7
90.9
92.0
92.5
92.4
'93.0

149.5
143.5
143.3
144.7
144.7
146.4
148.7
154.2
157.0
158.4
158.9
162.2

176
179
176
179
184
186
190
191
189
192
192
198

156.1
157.2
157.8
158.6
159.3
160.6
162.3
162.8
163.6
164.6
165.6
166.3

171 .8
171 .3
170.4
172.1
173.2
173.7
175.7
176.7
177.7
178.9
178.2
178.7

121 .1

117.3

118.2

118.6

93.8

164.7

197

1975-—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct. r
Nov.r....
Dec.'

113.7
111 .2
110.0
109.9
110.1
111.1
112.2
114.2
116.2
116.7
117.4
118.5

1976- Jan

119.3 120.6

115.4 114.9
113.7 113.3
112.4 112.2
112.9 112.6
113.4 113.7
114.2 114.5
115.3 115.7
115.8 115.9
116.9 116.9
116.9 117.0
117.8 117.8
119.9 119.8
120.6

132.1

110.7

104.3

1 Employees only: excludes personnel in the Armed Forces.
2 Production workers only. Revised back to 1973.
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 1974.
NOTE.—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 /
(In millions of do

|
1
|
I

68.2
67.0

|
[ '68.9

j
]

70.8

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.
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.

> PRIVATE HOUSING PERMITS
», except as noted)
1975

1974
Type of ownership and
type of construction

Total construction contracts

1

1973

s

1974
Dec.

Jan.

Feb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

Dec.

99,304 93,076 7,304 5,100 4,955 6,574 9,598 9,143 9,324 9,044 10,037 7,692 7,767 5,573 5,431

By type of ownership:
Public
Private i

26,563 32,209 2,496 2,254 2,031 2,182 2,768 2,875 3,891 3,784 3,040 2,725 2,544
72,741 60,867 4,809 2,846 2,924 4,393 6,830 6,268 5,432 5,260 6,997 4,967 5,223

By type of construction:
Residential building 1
Nonresidential building
Nonbuilding

45,696 34,174 1,715 1,562 1 ,583 2.316 3,029 3,073 3,116 3,093 2,784 2,966 3,189 2,404 2,233
31,534 33,859 2,451 2,233 2,199 2; 402 2,987 2,877 3,169 3,165 2,666 2,526 2,629 1 ,859 1,865
22,074 25,042 3,139 1,305 1,172 1,856 3,582 3,193 3,040 2,786 4,587 2,200 1,949 1,309 1,334

Private housing units authorized...
(In thousands, S.A., A.R.)

1,820

1,074

837

689

701

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.




677

837

912

949

1,042

995 1,095

1,597
3,976

1,079 '1,085

1,724
3,708

1,058

NOTE.—Dollar value of construction contracts as reported by the
McGraw-Hill Informations Systems Company, F.W. Dodge Division.
Totals of monthly data may differ from annual totals because adjustments
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.

F E B R U A R Y 1976 • C O N S T R U C T I O N

A 51

VALUE OF NEW CONSTRUCTION ACTIVITY
(In millions of dollars)
Private

Public 2

Nonresidential
Buildings

Residential

Total

Total

Military

Industrial

Commercial

Other
buildings 1

Highway

Conservation
and
development

Other

77,503
86,626
93,728

51,967
59,021
65,404

25,568
30,565
33,200

26,399
28,456
32,204

6,131
6,021
6,783

6,982
7,761
9,401

4,993
4,382
4,971

8,293
10,292
11.049

25,536
27,605
27,964

695
808
879

8,591
9,321
9,250

2,124
1,973
1,783

14,126
15,503
16,052

94,167
109,950
124,077
135,456
135,246
130,595

66,071
80,079
93,893
102,894
96,836
89,841

31,864
43,267
54,288
57,623
55,212
42,876

34,207
36.812
39,605
45,271
41,624
46,965

6,538
5,423
4.676
6,243
7,843
7,842

9,754
11,619
13,462
15,453
16,050
12,794

5,125
5,437
5,898
5,888
5,895
5,580

12,790
14,333
15,569
17,687
11,836
20,749

28,096
29,871
30,184
32,562
38,426
40,754

718
901
1,087
1,170
1,188
1,395

9,981
10,658
10,429
10,559
12,093

1,908
2,095
2,172
2,313
2,781

15,489
16,217
16,496
18,520
22,364

134,047

92,529

41,060

51,469

9,006

15,842

5,571

21.050

41,518

1,169

11,973

3,358

25,018

132,274
128,862
125,501
121,027
121,698
126,884
128,776
132.101
137.102
135,636
136,545
138,581

91,169
89,023
85,687
84,742
84,252
84,982
88,143
90,590
92,524
93,250
95,762
95,531

39,556
38,523
37,999
37,574
38,531
40,431
43,330
45,354
45,972
46,492
47,529
48,465

51,613
50,500
47,688
47,168
45,721
44.551
44.813
45.236
46.552
46,758
48.237
47,066

8,412
8,724
7,869
7,500
8,197
7.677
7,714
7,621
7,889
7,470
7,750
7,483

15,646
14,971
13,032
12,765
12,109
11,756
11,978
12,586
12,431
12,506
12,634
12,190

5,903
5,883
5,363
5,636
5,268
5,415
5,319
5,611
5,843
5,589
5,771
5,523

21,652
20,922
21,424
21,267
20,147
19,703
19,802
19,418
20,389
21,193
22,082
21,870

41,105
39,839
39,814
36,285
37,446
41,902
40,633
41,511
44,578
42,386
40,783
43,050

1,223
1,319
1,337
1,473
1,180
1,120
1,309
1,383
1,662
1,493
1,657
1,616

12,356
11,993
11,377
10,963
12,227
12,251

2,842
3,329
3,024
2,769
3,132
3,529

24,684
23,198
24,076
21,080
20,907
25,002

1
Includes religious, educational, hospital, institutional, and other buildings.
2
By type of ownership, State and local accounted for 86 per cent
of public construction expenditures in 1974.

NOTE.—Census Bureau d a t a ; monthly series at seasonally adjusted
annual rates.

PRIVATE HOUSING ACTIVITY
(In thousands of units)
Starts

New 1-family homes sold
and for sale i

Under construction
(end of period)

Completions

Median prices
(in thousands
of dollars) of
units

Units
Period

1family

2-ormore
family

1Total

family

2-ormore
family

1Total

family

2-ormore
family

Mobile
home
shipments
Sold

196 6
196 7
196 8
196 9

1,165
1,292
1,508
1,467

779
844
899
811

386
448
608
656

197 0
197 1
197 2
197 3
1974

1,434
2,052
2,357
2,045
1,338

813
1,151
1,309
1,132

1974—Dec...
1975—Jan.. .
Feb...
Mar..
Apr...
May..
June..
July..
Aug..
Sept..
Oct.'.
Nov..
Dec.*,
1

999
1,000
985
980
1,130
1,094
1,235
1,269
1,269
1,452
1,354
1,309

541
749
947
1,016
673

401
497
576
567
'329

485
656
718
620
501

227
294
416
456
407

543

683

195

382

400

r
529
r
525
r

660
631
598
573
546
'528
'518
'507
'505
505
499

185
219
199
194
224
210
225
235
215
229
232

404
411
463
570
586
556
553
576
574
604
660

404
409
396
388
383
378
383
379
383
386
377

461
591

885

350

621

901
1,047
913
450

1,418
1,706
1,971
2,014
1,692

802
1,014
1,143
1,174
931

617
692
828
840
760

922
1,254
1,586
1,599
1,189

381
505
640
583
516

682

198

1,606

852

754

1, 225

r

739
733
775
762
887
884
935
987
931
1,103
1,028
972

260
267
210
218
243

571
550
571
455
444
380
368
386
322
381
419

'1,188
r
l , 156
1,118
r
l ,087

210

300
282
338
349
326
337

881

969
734
997

Merchant builders only.

NOTE.—All series except prices, seasonally adjusted. Annual rates for
starts, completions, mobile h o m e shipments, and sales. Census data except




535

461
487
490
448

859
807

964
770
734
756
832
785
901

1,060

1,045
1,039
1.036
1.037
1,065
1,058

196
190

217
240
318
413

1,320
1,399

1,535
1,320
1,305
1,211
1,276
1,165
1,269
1,267
1,291
1,115
1,416

For
sale
(end of
period)

521
'515
'513
'517
'521
'528
'532
560
559

218

228

for mobile homes, which are private, domestic shipments as reported by
the Mobile H o m e Manufacturers' Assn. and seasonally adjusted by
Census Bureau. D a t a for units under construction seasonally adjusted by
Federal Reserve.

E M P L O Y M E N T • F E B R U A R Y 1976

A 52

LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT
(In thousands of persons, except as noted)
Civilian labor force (S.A.)
Total noninstitutional
population
(N.S.A.)

Period

Not in
labor force
(N.S.A.)

Total
labor
force
(S.A.)

Unemployed

Unemployment
rate 2
(per cent;
S.A.)

2,832
4,088
4,993
4,840
4,304
5,076

3.5
4.9
5.9
5.6
4.9
5.6

Employed 1
Total
Total

In nonagricultural
industries

In
agriculture

80,734
82,715
84,113
86,542
88,714
91,011

77,902
78,627
79,120
81,702
84,409
85,935

74,296
75,165
75,732
78,230
80,957
82,443

3,606
3,462
3,387
3,472
3,452
3,492

196 9
197 0
197 1
197 2
197 3
197 4

137,841
140,182
142,596
145,775
148,263
150,827

53,602
54,280
55,666
56,785
57,222
57,587

1974—Dec.

152,020

58,482

94,015

91,803

85,202

81,863

3,339

6,601

7.2

1975—Jan..
Feb..
Mar.
Apr.,
May,
June,
July.
Aug.
Sept.
Oct..
Nov.
Dec.

152,230
152,445
152,646
152,840
153.051
153,278
153,585
153,824
154.052
154,256
154,476
154,700

58,888
59,333
59,053
59,276
59,101
57,087
56,540
57,331
59,087
58,825
59,533
59,812

94,284
93,709
94,027
94,457
95,121
94,518
95,102
95,331
95,361
95,607
95,134
95,436

92,091
91,511
91,829
92,262
92,940
92,340
92,916
93,146
93,191
93,443
92,979
93,279

84,562
84,027
83,849
84,086
84,402
84,444
85,078
85,352
85.418
85,441
85,278
85,511

81,179
80,701
80,584
80,848
80,890
81 ,140
81,628
81,884
81,872
82,019
81,986
82,270

3,383
3,326
3,265
3,238
3,512
3,304
3,450
3,468
3,546
3,422
3,292
3,241

7,529
7,484
7,980
8,176
8,538
7,896
7,838
7,794
7,773
8,002
7,701
7,768

8.2
8.2
8.7
8.9
9.2

84,240
85,903
86,929
88,991
91,040
93,240

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

8.6

8.4
8.4
8.3
8.6
8.3
8.3

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)

Total

Manufacturing

70,442
70,920
71,216
73,711
76,896
78,413

20,167
19,349
18,572
19,090
20,068
20.046

1974—De c

77,723

19,190

1975—Ja n
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov. 33
Dec p

77,319
76,804
76,468
76.462
76,510
76,343
76,679
77,023
77,310
77,555
77,558
77,798

18.798
18.375

1974—De c
1975—Ja n
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov.?

Period

196 9
197 0
197 1
197 2
197 3
1974

Mining

619
623
603
622
644
694

Contract
construction

Transportation and
public
utilities

Finance

Service

Government

14,704
15,040
15,352
15,975
16,674
17,017

3,562
3,687
3,802
3,943
4,091
4,208

11,228
11,621
11,903
12,392
13,021
13,617

12,202
12,561
12,887
13,340
13,739
14,177

3,525
3,536
3,639
3,831
4,015
3,957

4,435
4,504
4,457
4,517
4,644
4,696

686

3,770

4,659

16,935

4,229

13,833

14,421

18.084
18,254
18,417
18,493
18,471
18,551

723
724
729
732
738
741
743
749
752
774
767
772

3,749
3,592
3,467
3,441
3,439
3,392
3,395
3,415
3,432
3.402
3.403
3,389

4,603
4,565
4,506
4,508
4,491
4,469
4,464
4.466
4.467
4,476
4,501
4,481

16,903
16,879
16,851
16,847
16,857
16,877
16.984
17,016
17,045
17,043
17,020
17,096

4,219
4.210
4.207
4,209
4.208
4.202
4.203
4,218
4,239
4,246
4,248
4,259

13,857
13,865
13,864
13,878
13,889
13,871
13,990
14,054
14,113
14,157
14,189
14,251

14,467
14,594
14,618
14,692
14,726
14,691
14,816
14,855
14,845
14,964
14,959
14,999

78,462

19,209

681

3,695

4,659

17,608

4,208

13,764

14,638

76.207
75,772
75,778
76,177
76,689
77,183
76.439
76,900
77,614
78,193

18,573
18,165
18,037

78,529

18,567

715
714
719
726
740
756
758
763
758
763
764
766

3,348
3,208
3,197
3,310
3,439
3,555
3.605
3,688
3,659
3,620
3,515
3,321

4,548
4.492
4,470
4,472
4,487
4,523
4,504
4.493
4,503
4,503
4,515
4,481

16,700
16,493
16,530
16,691
16,819
16.971
16,936
16,959
17,084
17,136
17,323
17,753

4.177
4,172
4.178
4,192
4,208
4,248
4,266
4,273
4,243
4,238
4,235
4,238

13,608
13,699
13,753
13.878
13,986
14,079
14,144
14,162
14,113
14,185
14,175
14,180

14,538
14,829
14,894
14,908
14,939
14,796
14,219
14,112
14,560
15,061
15,172
15,223

SEASONALLY A D J U S T E D

18,226

18,155
18.162
18.100

N O T SEASONALLY A D J U S T E D

Dec.p

78,324

18,000

18,071
18,255
18,007
18,450
18,694
18,687
18,625

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 m o n t h . Proprietors, self-employed persons,




domestic servants, unpaid family workers, and members of Armed
Forces are excluded.
Beginning with 1973, series has been adjusted to Mar. 1974 benchmark.

F E B R U A R Y 1976 • P R I C E S

A 53

CONSUMER PRICES
(1967 = 100)
Housing

Period

1929
1933
1941
1945
1960
196 5

..

196 6
196 7
196 8
196 9

All
items

Food

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

97.2
100.0
104.2
109.8

99.1
100.0
103.6
108.9

Health and recreation

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

99.6
100.0
100.9

110.1

110.1

Total

76.0
54.1
57.2
58.8
91.7
96.9

128.5
133.7
140.1
146.7
163.2
181.7

Fur- Apparel Transnishand
portaings
upkeep
tion
and
operation

Total

Medical
care

Personal
care

Reading
and
recreation

Other
goods
and
services

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

102.8

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

104.6
109.1

107.3
114.7
120.5
126.4
145.8
169.6

113.4
118.1
121.0
124.9
140.5
158.1

116.1
119.8
122.3
126.8
136.2
142.3

112.7
118.6
119.9
123.8
137.7
150.6

116.2

126.1
130.2
140.3
153.5

120.6
128.4
132.5
137.7
150.5
168.6

113.2
116.8
119.8
125.2
131.3
150.7

113.4
119.3
122.8
125.9
133.8
144.4

116.0
120.9
125.5
129.0
137.2
147.4

93.8
95.3
97.0

100.0

97.2

100.0

197 0
197 1
197 2
197 3
197 4
197 5

116.3
121.3
125.3
133.1
147.7
161 .2

114.9
118.4
123.5
141.4
161.7
175.4

118.9
124.3
129.2
135.0
150.6
166.8

1974—Dec.

155.4

169.7

159.9

133.5

174.0

228.8

156.7

152.3

141.9

143.5

147.5

159.0

145.3

139.8

143.9

1975—Jan..
Feb..
Mar.
Apr.
May
June
July.
Aug.
Sept.
Oct..
Nov.
Dec.

156.1
157.2
157.8
158.6
159.3
160.6
162.3
162.8
163.6
164.6
165.6
166.3

170.9
171.6
171.3
171 .2
171.8
174.4
178.6
178.1
177.8
179.0
179.8
180.7

161 .2
162.7
163.6
164.7
165.3
166.4
167.1
167.7
168.9
169.8
171.3
172.2

134.C
135.1
135.5
135.9
136.4
136.9
137.3
138.0
138.4
139.3
139.9
140.6

175.6
177.3
178.2
179.4

228.9
229.5
228.3
229.0
230.2
230.6
234-. 1
235.7
238.7
243.3
246.5
248.7

160.2
162.7
164.0
166.3
167.3
169.4
170.4
171.2
174.0
174.2
176.8
179.0

153.2
154.7
155.6
156.8
157.4
158.1
158.3
158.8

139.4
140.2
140.9
141 .3
141 .8
141 .4
141.1
142.3
143.5
144.6
145.5
145.2

143.2
143.5
144.8
146.2
147.4
149.8
152.6
153.6
155.4
156.1
157.4
157.6

148.9
150.2
151.1
152.1
152.6
153.2
154.0
154.6
155.4
156.3
156.5
157.5

161 .0
163.0
164.6
165.8
166.8
168.1
169.8
170.9
172.2
173.5
173.3
174.7

146.5
147.8
148.9
149.5
149.9
150.3
151.2
151.4
152.1
152.9
153.6
154.6

141.0
141.8
142.0
143.5
143.8
144.1
144.4
144.7
146.0
146.6
147.0
147.5

144.8
145.9
146.5
146.8
147.1
147.3
147.6
148.1
148.0
148.5
148.9
149.8

115.2
119.2
124.3

'130.6
137.3

180.1

181 .4
182.3
182.8

183.9
184.8
186.8
187.8

117.5
118.5
136.0
214.6
235.3

160.1

160.9
161.6
162.0

122.2

NOTE.—Bureau of Labor Statistics index for city wage earners and clerical workers.

WHOLESALE PRICES: SUMMARY
(1967 = 100, except as noted)
Industrial commodities
ProAll
cessed
com- Farm foods
modi- prod- and
ucts
ties
feeds

1960.
1965

94.9
96.6

97.2
98.7

1966,
1967,
1968.
1969

99.8
100.0
102.5
106.5

105.9
100.0
102.5
109.1

1970
1971 ,
1972
1973
1974

110.4
113.9
119.1
134.7
160.1

1974-- D e c
1975-—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec

Total

Textiles,
etc.

RubHides, Fuel, Chemicals,
ber,
etc.
etc.
etc.
etc.

Lumber,
etc.

Paper,
etc.

Metals,
etc.

MaN o n - Transchin- F u r n i - meporta- Misery
tion cellatallic
ture,
and
min- equip1 neous
etc.
equiperals m e n t
ment

95.3
96.4

99.5
99.8

90.8
94.3

96.1
95.5

95.3
95.9

98.1
96.2

92.4
96.4

92.0
93.9

101.2 9 8 . 5
100.0 100.0
102.2 102.5
107.3 106.0

100.1 103.4
100.0 100.0
103.7 103.2
106.0 108.9

97.8
100.0
98.9
100.9

9 9 . 4 9 7 . 8 100.2
100.0 100.0 100.0
9 9 . 8 103.4 113.3
9 9 . 9 105.3 125.3

98.8
100.0
101.1
104.0

111.0
112.9
125.0
176.3
187.7

112.0
114.3
120.8
148.1
170.9

110.0
114.0
117.9
125.9
153.8

107.2 110.1 105.9
108.6 114.0 114.2
113.6 131.3 118.6
123.8 143.1 134.3
139.1 145.1 208.3

171.5

183.7

188.2

166.1

138.4

143.2 229.0

171.8
171 .3
170.4
172.1
173.2
173.7
175.7
176.7
177.7
178.9
178.2
178.7

179.7
174.6
171.1
177.7
184.5
186.2
193.7
193.2
197.1
197.3
191 .7
193.8

186.4
182.6
177.3
179.4
179.0
179.7
184.6
186.3
186.1
186.2
182.6
181.0

167.5
168.4
168.9
169.7
170.3
170.7
171 .2
172.2
173.1
174.7
175.4
176.1

137.5
136.5
134.3
134.4
135.2
135.9
136.8
137.6
138.4
141.3
'43.2
144.0

142.1
141 .7
143.2
147.5
147.7
148.7
149.3
149.3
151.3
152.4
154.4
154.6

Period

1 Dec. 1968 = 100.




89.5
95.5

232.2
232.3
233.0
236.5
238.8
243.0
246.6
252.4
254.9
256.5
257.0
258.0

101.8
99.0

103.1
95.9

99.0
96.9

97.2
97.5

93.0
95.9

98.0
96.8
98.8
100.0 100.0 100.0
102.6 103.2 102.8
108.5 106.5 104.9

98.4
100.0
103.7
107.7

97.7
100.0
102.2
100.8 105.2
109.9

113.1 108.2
127.0 110.1
144.3 113.4
177.2 122.1
183.6 151.7

116.1
119.0
123.5
132.8
111.9

111.4
115.5
117.9
121.7
139.4

107.5
109.9
111.4
115.2
121.9

113.3
122.4
126.1
130.2
153.2

104.5
110.3
113.8
115.1
125.5

114.6
119.7
133.1

174.0 149.4

165.4

167.2

184.6

154.0

137.7

164.3

137.0

142.4

176.0
178.1
181.8
182.4
! 82.1
181.2
181 .4
182.1
182.2
182.3
182.9
183.4

164.7
169.3
169.6
174.9
183.0
181.0
179.6
179.7
179.9
179.1
178.3
183.1

169.8
169.8
170.0
169.7
169.8
169.8
170.0
170.0
170.3
170.9
171 .3
173.1

185.5
186.3
186.1
185.7
185.1
184.5
183.4
184.3
185.5
187.2
187.0
187.1

156.6
157.7
158.8
159.7
160.4
161.0
161.7
162.2
163.1
164.1
165.3
165.8

138.8
139.1
138.5
138.5
138.6
139.0
139.2
139.8
140.1
141.1
141 .5
142.0

168.5
170.3
170.8
173.0
173.1
173.3
174.7
175.8
176.1
177.1
177.7
178.0

131.1
138.2
139.5
139.9
139.9
140.1
140.1
140.5
141.1
146.6
147.2
147.5

145.5
146.4
146.8
147.3
147.5
147.5
147.7
147.8
148.2
147.6
148.6
151.1

102.2
104.2
104.2
110.0
146.8

108.6
109.2
109.3
112.4
136.2

149.6
150.0
149.7
149.4
148.9
148.6
150.1
150.0
150.8
151.5
151 .8
151.9

112.8

A 54

NATIONAL PRODUCT AND INCOME • FEBRUARY 1976
GROSS NATIONAL PRODUCT
(In billions of dollars)
1974
Item

1950

1970

1972

1973

1974

1975

1975^

III

IV
Gross national product.
Final purchases

286.2
279.4

982.4 1,171.1 1 , 3 0 6 . 3 1 , 4 0 6 . 9 1 , 4 9 9 . 0 1 , 4 4 1 . 3 1 , 4 3 3 . 6 1 , 4 6 0 . 6 1 . 5 2 8 . 5 1 , 5 7 3 . 2
978.6 1,161.7 1,288.8 1,397.2 1,513.2 1,430.9 1,458.4 1,490.2 1.530.6 1,573.4

Personal consumption expenditures.
Durable goods
Nondurable goods
Services

192.0
30.8
98.2
63.0

618.8
84.9
264.7
269.1

733.0
111.2
299.3
322.4

808.5
122.9
334.4
351.3

885.9
121.9
375.7
388.3

963.2
127.7
410.0
425.5

908.4
117.3
387.1
404.0

926.4
118.9
394.1
413.4

950.3
123.8
404.8
421.6

977.4
131.
416.4
429.2

Gross private domestic investment
Fixed investment
Nonresidential
Structures
Producers' durable equipment.
Residential structures
Nonfarm
Change in business inventories
Nonfarm

53.8
47.0
27.1
9.3
17.8
19.9
18.7
6.8
6.0

140.8
137.0
100.5
37.7
62.8
36.6
35.1
3.8
3.7

188.3
178.8
116.8
42.5
74.3
62.0
60.3
9.4

220.5
203.0
136.5
49.0
87.5
66.5
64.7
17.5
14.1

212.2
202.5
147.9
54.4
93.5
54.6
52.2
9.7
11.6

183.3
197.5
148.7
52.6
96.1
48.8
46.9
-14.2
-16.

210.3
199.8
151.1
50.1
95.0
48.7
46.3
10.4
13.7

168.7
193.5
149.3
54.9
94.4
44.2
42.6
-24.8
-23.3

161.4
191.1
146.1
51.
95.0
45.0
43.1
-29.6
-29.6

194.9
197.1
146.7
51.2
95.6
50.4
48.2
-2.
-5.7

Net exports of goods and services.
Exports
Imports

1.9
13.9

12.0

3.9
62.5
58.5

-3.3
72.7
75.9

7.4
101.5
94.2

7.7
144.2
136.5

21.5
147.3
125.

8.2
153.6
145.3

17.3
148.2
130.9

24.2
140.7
116.4

22.1
148.5
126.4

Government purchases of goods and services.
Federal
National defense
Other
State local

38.5
18.7
14.0
4.7
19.8

218.9
95.6
73.5
22.1
123.2

253.1
102.1
73.5
28.6
151.0

269.9
102.0
73.4
28.6
168.0

301.1
111.7

330.9
123.1
84.0
39.2
207

314.4
118.2
80.5
37.7
196.3

321.2
119.4
81.4
38.0
201.9

324.7
119.2
82.1
37.1
205.5

334.1
124.2
84.9
39.3
209.9

Gross national product in 1972 dollars

11A

34.3
189.4

533.5 1 , 0 7 5 . 3 1,171.1 1 , 2 3 3 . 4 1 , 2 1 0 . 7 1 , 1 8 6 . 4 1 , 1 8 6 . 8 1 , 1 5 8 . 6 1 , 1 6 8 . 1 1 , 2 0 1 . 5 1 , 2 1 7 . 4

NOTE.—Dept. of Commerce estimates. Quarterly data are seasonally
adjusted totals at annual rates. For back data and explanation of series,
see the Survey of Current Business, Jan. 1976.

NATIONAL INCOME
(In billions of dollars)
1974
Item

1950

1970

1972

1973

1974

1975

1975^
IV

National income

236.2

798.4

Compensation of employees

154.8

609.2

715.1

797.7

873.0

921.4

898.1

897.1

905.4

Wages and salaries
Private
Military
Government civilian

147.0
124.4
5.3
17.4

546.5
430.5
20.7
95.3

633.8
496.2
22.0
115.6

700.9
552.3
22.1
126.5

763.1
603.0
22.3
137.7

801.6
627.2
23.0
151.3

783.6
617.7
23.0
143.0

781.0
611.7
22.9
146.4

787.6
615.0
22.
149.7

Supplements to wages and salaries
Employer contributions for social insurance
Other labor income

7.8
4.2
3.7

62.7
30.7
32.0

81.4
39.4
42.0

96.8
49.3
47.5

110.0
55.5
54.5

119.8
58.5
61.3

114.4
56.9
57.6

116.1

57.1
59.0

117.8
57.5
60.3

Proprietors' income with inventory valuation and
capital consumption adjustments
Business and professional
Farm

38.4
24.9
13.5

65.1
51.2
13.9

76.1
58.1

91.7
59.3
32.4

85.1
59.5
25.6

83.3
58.7
24.6

83.6
59.0
24.6

79.6
58.6

18.0

21.0

78.6
58.5
20.1

7.1

18.6

21.5

21.3

21.0

21.1

20.9

20.8

20.5

Rental income of persons with capital consumption
adjustment
Corporate profits and inventory valuation adjustment
and without capital consumption adjustment

951.9 1 , 0 6 7 . 3 1 , 1 4 1 . 1 1 , 2 0 9 . 5 1 , 1 6 1 . 3 1 , 1 5 5 . 2 1 , 1 8 0 . 8 1 , 2 3 2 . 5

37.6

66.4

89.6

98.6

93.6

108.3

86.1

83.4

101.6

Profits before tax
Profits tax liability
Profits after tax
Dividends
Undistributed profits

42.6
17.9
24.7
8.8
15.9

71.5
34.5
37.0
22.9
14.1

96.2
41.5
54.6
24.6
30.0

117.0
48.2
27.8
40.9

132.1
52.6
79.5
31.1
48.4

119.8
47.0
72.8
32

123.9
49.2
74.7
31.7
43.0

97.1
37.5
59.6
32.
27.5

108.2
41.6
66.6
32.6
34.0

Inventory valuation adjustment

-5.0

-5.1

-6.6

-18.4

-38.5

-37.7

-13.7

-6.6

2.3

37.5

47.0

56.3

70.7

76.7

78.7

79.7

Net interest

NOTE.—Dept. of Commerce estimates. Quarterly data are seasonally
adjusted totals at annual rates. See also NOTE to table above.




40.0
-11.5
81.6

928.2

F E B R U A R Y 1976 • N A T I O N A L P R O D U C T A N D I N C O M E

A 55

RELATION OF GROSS NATIONAL PRODUCT, NATIONAL INCOME, AND PERSONAL INCOME AND SAVING
(In billions of dollars)
1974
Item

1970

1950

1972

1973

1974

1975

1975*
IV

IV P

9 8 2 . 4 1 , 1 7 1 . 1 1 , 3 0 6 . 3 1,406.9 1 , 4 9 9 . 0 1 , 4 4 1 . 3 1 , 4 3 3 . 6 1 , 4 6 0 . 6 1 , 5 2 8 . 5 1 , 5 7 3 . 2

286.2

Gross national product
Less: Capital consumption allowances with capital
consumption adjustment
Indirect business tax and nontax liability
Business transfer payments
Statistical discrepancy

III

105.4

-.6

152.5
137.2
6.3
-4.6

142.1
129.5
6.0
2.9

145.4
131.6
6.2
-3.2

149.5
135.2
6.3
-8.9

154.7
140.0
6.4
-3.2

.7

1.9

.4

1.6

2.2

1.9

2.0

90.8
94.0
4.0
-2.

236.2

798.4

33.7
2.3
7.1

67.9
37.5
58.7

92.
47.0
73.6

100.2

56.3
91.5

91.3
70.7
102.9
-.5

102.1
81.6
108.3

82.0
76.7
105.0

78.9
78.7
106.0

96.6
79.7
106.6

113.1
82.2
108.9

14.4
8.9

75.9
64.3
22.9
4.0

99.4
74.6
24.6
4.7

113.5
88.4
27.8
5.2

134.5
106.5
31.1
5.8

168.7
120.7
32.8
6.3

145.5
114.0
31.7
6.0

157.7

169.4
117.6
32.6
6.3

172.4

32.1
6.2

33.5
6.4

175.2
127.8
33.1
6.5

226.1

801.3

942.5

,054.3 1 , 1 5 4 . 7

,264.0

,194.8

,203.6

,223.8

,261.7

,294.8

20.6

115.3

141.2

151.2

171.2

169.2

178.9

179.6

142.1

174.6

180.4

Equals: Disposable persqpal income

205.5

685.9

801.3

903.1

983.6

,076.8

,015.9

,024.0

,081.7

,087.1

,114.4

Less: Personal outlays
Personal consumption expenditures
Interest paid by consumer to business
Personal transfer payments to foreigners (Net)

194.7
192.0
2.3
.4

635.4
618.8
15.5

751.9
733.0
17.9

1.0

830.4
808.5
20.6
1.2

909.5
885.9
22.6

987.2
963.2
23

932.4
908.4
23.0

950.4
926.4
23.0

974.2
950.3
22.8

,001.3
977.4
23.0
.9

,023.1
998.7
23.5
1.0

10.8

50.6

49.4

72.7

74.0

89.6

83.6

73.6

107.5

85.9

91.3

361.9

741.6

801.3

856.0

843.5

857.0

837.6

831.6

869.8

858.2

868.4

23.9
23.4

Plus: Subsidies less current surplus of government
enterprises
Equals: National income

2.7

Less: Corporate profits with inventory valuation and
capital consumption adjustments
Net interest
Contributions f o r social insurance
Wage accruals less disbursements
Plus: Government transfer payments to persons.
Personal interest income
Dividends
Business transfer payments
Equals: Personal income
Less: Personal tax and nontax payments.

Equals: Personal saving
Disposable personal ipcome in (1972) dollars.

1.1

4.7
1.7

117.1
120.2
5.2
.4

134.0
127.3
5.8

3.6

3.7

111.0

160.5
141.8
6.5

951.9 1 , 0 6 7 . 3 1 , 1 4 1 . 1 1 , 2 0 9 . 5 1 , 1 6 1 . 3 1 , 1 5 5 . 2 1 , 1 8 0 . 8 1 , 2 3 2 . 5

1.0

1.0

1.0

116.0

1.0

85.7
111.7

121.2

NOTE.—Dept. of Commerce estimates. Quarterly data seasonally adjusted totals at annual rates. See also NOTE to table at top of opposite page.

PERSONAL INCOME
(In billions of dollars)
1974
Item

1974

Dec.
Total personal income

1975

1975*>
Jan.

Feb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

Dec.

1154.7 1246.0 1200.4 1202.6 1203.2 1205.0 1209.0 1217.2 1245.2 1244.0 1262.4 1278.7 1287.4 1295.9 1301.1

763.6 801.6 782.0 782.1 779.1 781.7 782.7 787.4 792.7 797.4 808.8 815.6
Wage and salary disbursements
Commodity-producing industries... 273.7 273.5 273.7 271.7 266.1 265.9 265.8 267.0 268.8 270.9 275.6 279.5
211.2 211.1 210.8 207.8 204.3 204.4 204.9 205.6 207.2 208.8 213.2 216.6
Manufacturing only
184.3 195.1 189.8 189.9 190.2 190.7 190.9 191.7 192.9 193.9 197.7 198.2
Distributive industries
Service industries
145.0 158.6 151.3 152.4 153.5 154.6 154.5 156.1 157.4 158.2 160.3 161.5
160.6 174.4 167.2 168.1 169.3 170.5 171.5 172.6 173.6 174.4 175.2 176.4
Government

824.1
281.7
218.7
200.2
163.1
179.0

831.2 836.3
283.2 286.2
219.7 222.6
202.4 202.8
165.3 166.0
180.3 181.2

Other labor income

54.5

61.3

58.1

58.6

59.0

59.4

59.8

60.3

60.8

61.4

62.0

62.6

63.2

63.8

64.4

Proprietors' income with inventory
valuation and capital consumption
adjustments
Business and professional
Farm

85.1
59.5
25.6

83.3
58.7
24.6

84.3
58.8
25.5

82.8
58.8
24.0

79.5
58.5
21.0

76.5
58.6
17.9

77.0
58.5
18.5

78.7
58.6
20.1

80.3
58.6
21.7

84.5
58.7
25.8

88.0
58.7
29.3

91.5
58.8
32.7

89.4
58.9
30.5

87.1
58.8
28.3

84.5
58.7
25.8

Rental income of persons with capital
consumption adjustment

21.0

21.1

20.9

20.9

20.8

20.8

20.7

20.5

20.2

20.5

21.0

21.3

21.8

22.0

22.2

Dividends

31.1

32.8

31.0

.32.1

32.1

32.1

32.4

32.6

32.9

33.2

33.5

33.9

33.8

33.8

31.7

Personal interest income

106.5

120.7

116.0

115.9

116.0

116.1

116.6

117.5

118.6

119.7

121.2

122.9

125.1

127.9

130.4

Transfer payments

140.4

175.0

156.3

159.0

165.4

167.2

168.6

169.3

189.0

176.8

178.1

181.3

180.6

181.4

183.1

47.4

49.8

48.1

48.9

48.8

48.9

48.9

49.1

49.3

49.5

50.0

50.4

50.7

51.2

51.6

Less: Personal contributions for social
insurance
Nonagricultural income
Agricultural income

1119.1 1210.2 1164.3 1167.6 1171.3 1176.2 1179.7 1186.2 1212.5 1207.2 1222.1 1234.8 1245.6 1256.3 1263.6
28.8
41.8
32.7
40.3
35.6
31.9
2 9 . 3 31.0
36.8
43.9
37.5
35.6
3 6 . 1 35.0
39.6

NOTE.—Dept. of Commerce estimates. Monthly data seasonally adjusted totals at annual rates. See also NOTE to table at top of opposite page.




A 56

FLOW OF F U N D S • F E B R U A R Y 1976
SUMMARY OF FUNDS RAISED IN U.S. CREDIT MARKETS
(Seasonally adjusted annual rates; in billions of dollars)
1974
Transaction category, or sector

1966

1967

1968

1969

1970

1971

1972

1973

1975

1974
HI

H2

HI

Credit market funds raised by nonfinancial sectors
1
2

Total funds raised by nonfinancial sectors
Excluding
equities

3
4
5

U.S. Government
Public debt securities
Agency issues and mortgages

6
7
8

All other nonfinancial sectors
Corporate equities
Debt instruments
Private
domestic
Nonfinancial
sectors
Corporate equities
Debt instruments
Debt capital instruments
State and local obligations
Corporate bonds
Home mortgages
Multifamily residential mortgages
Commercial mortgages
Farm mortgages
Other debt instruments
Consumer credit
Bank loans n.e.c
Open-market paper
Other

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

By borrowing sector:
State and local governments
Households
Farm
N o n f a r m noncorporate
Corporate
Foreign
Corporate equities
Debt instruments
Bonds
Bank loans n.e.c
Open-market paper
U.S. Government loans
M e m o : U.S. Govt, cash balance
Totals net of changes in U.S. Govt, cash balances—
Total funds raised
By U.S. Government

67.9
66.9

82.4
80.0

96.0
96.0

91.8
87.9

3.6
2.3
1.3

13.0
8.9
4.1

13.4
10.4
3.1

-3.7
-1.3
-2.4

64.3
1.0
63.3

69.4
2.4
67.0

82.6
82.6

62.7
1 .3
61.5
38.2
5.6
10.2
11.7
3.1
5.7
1.8
23.3
6.4
10.9
1 .1
5.0

65.4
2.4
63.0
44.5
7.8
14.7
11.5
3.6
4.7
2.3
18.5
4.5
9.8
1.7
2.6

62.7
6.3
22.7
3.T
5.4
25.3

9 8 . 2 147.4 169.4
9 2 . 4 135.9 158.9

9.7
7.7
2.0

12.0
12.0

95.5
3.9
91.6

8 5 . 4 121.9 152.1
5.8
11 .5 10.5
79.7 110.4 141.6

177.7
7.2
170.4

79.7
-.2
79.9
49.5
9.5
12.9
15.1
3.4
6.4
2.2
30.4
10.C
13.6
1.8
5.0

91.8
3.4
88.4
49.6
9.9
12.0
15.7
4.7
5.3
1.9
38.8
10.4
15.5
3.0
9.9

82.7
5.7
77.0
56.7
11.2
19.8
12.8
5.8
5.3
1.8
20.3
6.0
6.7
3.0
4.6

117.3 147.8
11.4
10.9
105.8 136.9
83.2
93.8
17.6
14.4
12.2
18.8
26.1
39.6
8.8
10.3
10.0
14.8
2.0
2.6
22.6
43.0
11.2
19.2
7.8
18.9
- 1 .2
-.5
5.5
4.8

65.4
7.9
19.3
3.6
5.0
29.6

79.7
9.8
30.0
2.8
5.6
31.6

91.8
10.7
31.7
3.2
7.4
38.9

82.7
11.3
23.4
3.2
5.3
39.5

117.3
17.8
39.8
4.1
8.7
46.8

1.5
-.3
1.8
.7
-.2
-.1
1.3
-.4

4.0
.1
4.0
1.2
-.3
.5
2.6
1.2

2.8
.2
2.7
1.1
-.5
-.2
2.2
- 1 .1

3.7
.5
3.2
1.0
-.2
.3
2.1
.4

2.7
.1
2.7
.9
-.3
.8
1.3
2.8

68.3
4.0

81 .3
11.8

97.1
14.6

91.4
-4.1

95.5
10.0

- -

1

25.5
26.0
-.5

180.1 187.3 172.4 188.4
176.2 181.9 170.0 179.6

17.3
13.9
3.4

*

12.8
12.9

187.4
180.1

1
2

81.4
82.6
-1.2

3
4
5

168.1
3.8
164.2

182.2 153.4 107.0
2.3
5.4
8.8
176.8 151.1
98.2

6
7
8

170.1
7.4
162.7
96.1
13.7
9.2
43.3
8.4
17.0
4.4
66.6
22.9
35.8
-.4
8.3

152.7
4.1
148.6
92.9
17.4
19.7
31.7
7.8
11.5
4.9
55.6
9.6
27.3
6.6
12.1

162.2 142.6 100.1
5.6
2.6
8.7
156.6 140.0
91.4
99.6
86.2 106.9
18.3
16.5
17.4
38.2
21.3
18.1
35.8
34.3
27.6
6.2
8.2
7.3
7.2
15.7
5.7
4.5
5.1
5.4
57.0
53.8 - 1 5 . 4
12.7
-.6
6.1
32.6
21.9 - 1 6 . 1
5.1
8.2 - 1 . 5
6.6
17.5
2.8

9
10
11
12
13
14
15
16
17
18
19
20
21
22
23

147.8
14.2
63.1
4.9
10.4
55.3

170.1
12.3
72.8
8.6
9.3
67.2

152.7
16.6
44.0
7.8
7.2
77.1

162.2
16.4
47.5
7.7
7.1
83.5

142.6
16.7
40.0
7.9
7.3
70.7

100.1
14.0
37.5
6.9
3.2
38.6

24
25
26
27
28
29

4.6
4.3
*
-.4
4.6
4.7
1.0
.9
1 .6
2.9
.3 - 1 .0
1.8
1.8
3.2
-.3

7.5
-.2
7.7
1.0
2.8
2.2
1.7
-1.7

15.4
-.3
15.7
2.2
4.7
7.1
1.7
-4.6

20.0
-.2
20.2
2.1
9.6
7.0
1.5
-2.0

10.9
-.3
11.1
2.3
-.2
7.1
1.8
-7.1

6.9
6.8
5.0
-.5
-.4
2.7
3.1

30
31
32
33
34
35
36
37

189.0
11.4

184.7
16.6

189.3
7.1

179.5
26.0

185.3
78.2

38
39

4.2
8.0
6.9
1.1
-3.8
3.8
— 7.6
2.3
1 .7
-8.8
5.3
-8.1

1
2
3
4
5
6
7
8
9
10
11
12

4.2
8.0
-3.8
5.8
.9
-.9
-8.0
.3
-3.4
-1 3
2.9

13
14
15
16
17
18
19
20
21
22
23

163.9 198.3 2 3 9 . 4 218.1 228.1 207.6 192.6
1.1
- . 7 - 1 .6
2.9
1 .0 - . 8
2.8
13.'6
9.6
4.6
6.7
2.5
9.7
13.6
149.1 185.4 231.3 212.5 222.2 202.3 179.9
29.4
33.5
88.2
29.4
45.1
23.6
21.9
17.4
17.6
13.7
18.3
17.4
14.4
16.5
12.5
23.3
22.2
45.5
20.2
24.5
24.8
54.5
63.4 45.6
71.9
52.9
48.9
68.8
11.2
19.2
-.6
22.9
9.6
12.7
6.1
12.4 28.5
52.1
39.5
51.1
27.9 - 2 5 . 4
11.6
13.6
3
.
3
3.3
.9
9.4
17.8
17.2
21.1
4.0
27.2 - 1 . 5
7.4
14.9

1
2
3
4
5
6
7
8
9
10
11
12

144.2
22.3

169.7
17.6

5.1
18.9
20.2
3.9
1 .2 - 1 .3

*

Credit market funds raised by financial sectors
!
2
3
4
5
6
7
8
9
10
11
12

Total funds raised by financial sectors
Sponsored credit agencies
U.S. Government securities
Loans from U.S. Government
Private financial sectors
Corporate equities
Debt instruments
Corporate bonds
Mortgages
Bank loans n.e.c
Open-market paper and R P ' s
Loans from FHLB's

11.7
4.8
5.1
-.2
6.9
3.7
3.2
.9
-.9
- 1 .0
3.3
.9

2.0
-.6
-.6
-.1
2.6
3.0
-.4
1 .3
1.0
-2.0
1 .9
-2.5

18.3
3.5
3.2
.2
14.9
6.4
8.5
1.1
.4
2.5
3.6
.9

33.7
12.6
8.2
8.8
8.2
9.1
-.3
4.3
24.9
6.1
4.6
-.3
18.8
3.1
1 .5
.2
.7
-.5
2.3
10.7 - 5 . 0
4.0
1.3

16.5
3.8
3.8

28.9
6.2
6.2

52.0
19.6
19.6

12.7
3.3
9.3
5.1
2.1
3.0
1.8
-2.7

22.8
2.4
20.3
7.0
1 .7
6.8
4.9

13
14
15
16
17
18
19
20
21
22
23

Total funds raised, by sector
Sponsored credit agencies
Private financial sectors
Commercial banks
Bank affiliates
Foreign banking agencies
Savings and loan associations
Other insurance companies
Finance companies
REITS
Open-end investment companies

11.7
4.8
6.9
-.1

2.0
-.6
2.6
.1

18.3
3.5
14.9
1.2

.1
.1
.1
3.1

*

-1.7
.1
1.2

3.7

3.0

.1
1.1
.2
5.7
.7
5.8

12.6
33.7
8.2
8.8
4.3
24.9
1 .4 - 3 . 1
4 . 2 - 1 .9
.2
.1
4.1
1 .8
.5
.4
8.3
1.6
2.7
1.3
2.6
4.8

16.5
3.8
12.7
2.5
-.4
1.6
—. l
.6
4.2
3.0
1.1

28.9
6.2
22.8
4.0
.7
.8
2.0
.5
9.3
6 1
-.7

*

32.4
.8
31.6
2.3
- 1 .2
13.5
9.8
7.2

38.0
22.1
21.4
.7
15.9
1 .7
14.2
1 .4
-1.3
7.5
-.1
6.7

24.1
.5
23.6
2.0
.1
8.9
5.8
6.8

35.2
21A
26.0
1 .4
7.8
3.0
4.8
.9
-2.7
6.2
-6.0
6.5

52.0
19.6
32.4
4.5
2.2
5.1
6.0
.5
9.4
6 3
- 1 .6

38.0
22.1
15.9
-1.9
2.4
2.9
6.3
.4
3.9
1.0
1 .0

40.8
16.8
24.1
2.6
4 1
2.7
8.6
.4
3.6
2 8
-!8

35.2
27.4
7.8
-6.4
.7
3.1
4.0
.3
4.2
— 9
2]8

40.8
16.8
16.8

Total credit market funds raised, all sectors, by type
j
2
3
4
5
6
7
8
9
10
12

Total funds raised
Investment company shares
Other corporate equities
Debt instruments
U.S. Government securities
State and local obligations
Corporate and foreign bonds
Mortgages
Consumer credit
Bank loans n.e.c
Open-market paper and R P ' s
Other loans

79.6
3.7
1.1
74.9
8.8
5.6
11.8
21.3
6.4
9.7
4.4
6.9

8 4 . 4 114.3 125.5
3.0
5.8
4.8
2.5
.6
5.2
79.0 107.9 115.5
12.5
16.7
5.5
7.8
9.5
9.9
17.2
15.0
14.5
23.0
27.4
27.8
4.5
10.0
10.4
7.5
15.7
17.6
4.0
5.2
14.1
2.5
8.3
15.8

NOTE.—Full statements for sectors and transaction types quarterly, and
annually for flows and for amounts outstanding, may be obtained f r o m




110.8
2.6
7.7
100.4
21.1
11.2
23.8
26.4
6.0
5.8
-1.2
7.3

Flow of Funds Section, Division of Research and Statistics, Board of
Governors of the Federal Reserve System, Washington, D . C . 20551.

F E B R U A R Y 1976 • FLOW OF F U N D S

A 57

DIRECT AND INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS
(Seasonally adjusted annual rates; in billions of dollars)
1974
Transaction category, or sector
!
2
3
4
5
6
7
8
9
10
11

1966

Total funds advanced in credit markets to non66.9
financial sectors
By public agencies and foreign
11.9
Total net advances
3.4
U.S. Government securities
2.8
Residential mortgages
.9
FHLB advances to S&L's
4.8
Other loans and securities
By agency—
4.9
U.S. Government
5.1
Sponsored credit agencies
3.5
Monetary authorities
-1.6
Foreign
4.8
Agency borrowing not included in line 1

Private domestic funds advanced
n Total net advances
13
U.S. Government securities
14
State and local obligations
15
Corporate and foreign bonds
16
Residential mortgages
17
Other mortgages and loans
Less: FHLB advances
18

1967

1968

1969

1970

1971

1972

1973

1974
HI

1975

H2

HI

80.0

95.9

88.0

92.5 135.9 158.9 180.1 176.2 181.9 170.0 179.6

11.3
6.8
2.1
-2.5
4.9

12.2
3.4
2.8
.9
5.1

15.7
.7
4.6
4.0
6.3

28.1
15.9
5.7
1.3
5.2

41.7
33.8
5.7
-2.7
4.9

18.3
8.4
5.2

4.6
-.1
4.8
2.0
-.6

4.9
3.2
3.7
.3
3.5

2.9
8.9
4.2
-.3
8.8

2.8
10.0
5.0
10.3
8.2

3.2
3.2
8.9
26.4
3.8

59.8 68.1
5.4
5.7
7.8
5.6
10.3 16.0
12.0 13.0
27.4 23.1
.9 - 2 . 5

87.2
13.3
9.5
13.8
15.5
35.9
.9

81.1
4.8
9.9
12.5
15.7
42.2
4.0

72.6
5.2
11.2
20.0
12.8
24.6
1.3

1

4.6

33.2
11.0
7.6
7.2
7.5

49.2
8.6
13.8
6.7
20.1

39.5
6.9
11.7
6.8
14.1

58.9
10.4
15.9
6.5
26.1

36.1
27.6
16.8
-8.1
-.3

2
3
4
5
6

2.6
7.0
.3
8.4
6.2

3.0
20.3
9.2
.7
19.6

7.4
24.1
6.2
11.6
22.1

2.4
20.5
6.1
10.5
16.8

12.4
27.6
6.2
12.6
27.4

12.3
10.1
6.9
6.8
8.0

7
8
9
10
11

98.1 146. ,7 166.5 149.1 159.2 138.5 151.5
15.0 34.7 60.6
15.2 18.4 24.9
-4.4
17.6 14.4 13.7 17.4 18.3 16.5 17.4
19.5 13.2 10.1 20.6 19.2 21.9 43.1
29.1 44.6 44.1 25.6 31.4 19.8 23.6
33.7 59.5 87.4 67.4 82.1 52.2 - 1 . 3
*
6.8
6.5 - 8 . 1
7.2
6.7
-2.7

12
13
14
15
16
17
18

*

20
21
22
23

Private
financial
intermediation
Credit market funds advanced by private financial
institutions
Commercial banks
Savings institutions
Insurance and pension funds
Other finance

45.4
17.5
7.9
15.5
4.5

63.5
35.9
15.0
12.9
-.3

75.3
38.7
15.6
14.0
7.0

55.3
18.2
14.5
12.7
9.9

74.9 110.7 153.4 158.8 131.5 155.7 106.9 115.0
17.4
35.1 50.6 70.5 86.6 64.6 87.5 41.3
16.9 41.4 49.3 35.1 26.9 35.4 18.3 61.6
17.3 13.3 17.7 22.1 34.3 29.1 39.4 34.8
3.7
7.9
5.3 15.8 15.0
5.7
5.7
1.1

19
20
21
22
23

24
25
26

Sources of funds
Private domestic deposits
Credit market borrowing

45.4
22.5
3.2

63.5
50.0
-.4

75.3
45.9
8.5

55.3
2.6
18.8

74.9 110.7 153.4 158.8 131.5 155.7 106.9 115.0
63.2 90.3 97.5 84.9 72.5 93.7 51.1 98.6
4.8 - 7 . 6
9.3 20.3 31.6 14.2 23.6
-.3

24
25
26

19.8
3.7
-.5
13.6
3.0

13.9
2.3
.2
12.0
-.6

21.0
2.6
-.2
11.4
7.2

34.0
9.3

4.2
17.6
8.4 - 1 . 4
2.6 - 2 . 5
4.6
2.0
2.3
1.9
2.3
1.7

20.4
8.1
-.2
4.7
5.8
2.1

24.4
20.3
-.2
13.3
7.3

52.1
39.3
4.3
18.3
16.7

5.4
48.3
33.9 - 2 . 3
3.5 - 1 3 . 7
3.4
17.5
8.0
12.9

4.1
2.1
2.0

12.8
10.6
2.1

14.5
12.1
2.4

19

27
28
29
30
31

Other sources
Foreign funds
Treasury balances
Insurance and pension reserves
Other, net

Private domestic nonfinancial
32 Direct lending in credit markets
33
U.S. Government securities
34
State and local obligations
35
Corporate and foreign bonds
Commercial paper
36
37
Other
38
39
40
41
42
43
44
45

investors

Deposits and currency
Time and savings accounts
Large negotiable CD's
Other at commercial banks
At savings institutions
Money
Demand deposits
Currency

10.8
13.8

12.0 11.0
-8.5 -3.2
2.2
2.9
9.1
13.1
4.4
2.9

35.5
5.2
.7
13.1
16.5

42.4
6.5
-1.0
16.7
20.2

44.8
13.6
-5.1
27.9
8.4

38.4
10.7
-2.1
22.7
7.1

50.9
16.4
-8.1
33.2
9.4

24.0
-5.4
-1.9
26.5
4.7

27
28
29
30
31

44.5
17.0
8.7
6.6
10.2
2.0

-2.6 -3.2
-9.0 -14.0
-1.2
.6
9.3
10.7
-4.4
-.6
1.4
1.5

13.7
1.6
2.1
5.2
4.0
.8

39.3
18.8
4.4
1.1
11.3
3.8

31.8
18.1
10.8
-1.7
1.6
2.9

27.0
13.7
8.3
-1.4
4.3
2.2

36.4
22.6
13.3
-1.9
-1.0
3.5

28.9
-5.0
13.5
14.9
2.7
2.8

32
33
34
35
36
37

66.6
56.1
15.0
24.2
16.9

93.7 101.9
81.0 85.2
8.7
7.7
32.9 30.6
40.4 45.9

88.8
76.3
18.5
29.5
28.2

78.8
71.9
23.6
26.6
21.8

102.3
89.0
30.0
32.4
26.6

55.2 105.9
54.8 87.7
17.2 - 2 2 . 0
20.7 39.3
16.9 70.4

38
39
40
41
42

7.7
4.8
2.8

10.5
7.1
3.5

12.7
9.3
3.4

16.7
12.3
4.4

12.6
8.6
3.9

6.8
.5
6.3

13.3
4.8
8.5

64.1

90.5 115.7 128.1 110.5 129.3

*

46

Total of credit market instr., deposits, and currency.

42.0

56.3

68.7

49.9

47
48
49

Private support rate (in per cent)
Private financial intermediation (in per cent) . . . .
Total foreign funds

17.9
75.9
2.1

14.1
93.2
4.3

12.7
86.4
2.9

17.8 30.4 30.7 11.5
68.3 103.1 112.8 104.5
9.1
1.8 23.2 13.6

18.4
95.4
7.2

27.9
88.2
25.1

.4
-3.7
4.1

18.1
10.9
7.3

43
44
45

91.6 134.8

46

21.7
97.8
21.2

34.6
77.2
29.0

20.1
75.9
1.4

47
48
49

5.9
-.8
6.7
8.5
-2.7

5.3
2.8
2.5
3.6
1.7

12.7
2.9
9.7
11.1
1.6

1
2
3
4
5

Corporate equities not included above
! Total net issues
2
Mutual fund shares
3
Other equities
4 Acquisitions by financial institutions
5 Other net purchases

4.8
3.7
1.1
6.0
-1.2

5.5
3.0
2.5
9.1
-3.6

6.4
5.8
.6
10.8
-4.4

Notes
Line
1. Line 2 of p. A-56.
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. Excludes equity issues and investment company shares. Includes
line 18.
28. Foreign deposits at commercial banks, bank borrowings from foreign
branches, and liabilities of foreign banking agencies to foreign affiliates.




10.0
4.8
5.2
12.2
-2.2

10.4 14.8
2.6
1.1
7.7 13.6
11.4 19.3
-1.0 -4.5

8.0
12.9
- . 7 -1.6
13.6
9.6
16.0 13.4
-3.1 -5.4

5.6
1.0
4.6
6.1
-.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.
39+44. 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 58

U.S. BALANCE OF PAYMENTS • FEBRUARY 1976
1. U.S. BALANCE OF PAYMENTS S U M M A R Y
(In millions of dollars. Quarterly figures are seasonally adjusted unless shown in italics.)
1974
1972

Credits ( + ) , debits ( - )

1973

IV

III
Merchandise trade balance 1 .
Exports
Imports

-6,409
955 - 5 , 2 7 7
49,388
71,379
98,309
- 5 5 , 7 9 7 - 7 0 , 4 2 4 -103,568

Military transactions, net
Travel and transportation, n e t .

-3,621
-3,024

-2,317
-2,862

Investment income, net 2
U.S. direct investments abroad 2
Other U.S. investments abroad
Foreign investments in the United States

4,321
6,416
3,746
-5,841

Other services, net

2

.

2

Balance on goods and services •
Not seasonally
adjusted...
Remittances, pensions, and other t r a n s f e r s . . . .
Balance on goods, services, and remittances.
Not seasonally adjusted
U.S. Government grants (excluding military).
Balance on current account...
Not seasonally
adjusted.,
U.S. Government capital flows excluding nonscheduled
repayments, net 5
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 6
Foreign securities
U.S. securities other than Treasury issues «
Other, reported by U.S. banks
Other, reported by U.S. nonbanking concerns
Balance on current account and long-term capital
Not seasonally adjusted

5

.

Nonliquid short-term private capital flows, net
Claims reported by U.S. banks
Claims reported by U.S. nonbanking c o n c e r n s . . . ,
Liabilities reported by U.S. nonbanking concerns.
Allocations of Special Drawing Rights (SDR's)
Errors and omissions, net
Net liquidity balance
Not seasonally
adjusted..
Liquid private capital flows, net
Liquid claims
Reported by U.S. banks
Reported by U.S. nonbanking c o n c e r n s . .
Liquid liabilities—
Foreign commercial banks
International and regional organizations..
Other foreigners
Official reserve transactions balance, financed by changes in—.
Not seasonally adjusted
Liquid liabilities to foreign official agencies
Other readily marketable liabilities to foreign official agenNonliquid liabilities to foreign official reserve agencies reported by U.S. Govt
U.S. official reserve assets, net
Gold
SDR's
Convertible currencies
Gold tranche position in I M F
Memoranda:
Transfers under military grant programs (excluded f r o m
lines 2, 4, and 14)
Reinvested earnings of foreign incorporated affiliates of
U.S. firms (excluded f r o m lines 7 and 20)
Reinvested earnings of U.S. incorporated affiliates of foreign
firms (excluded f r o m lines 9 and 21)
Balances excluding allocations of S D R ' s :
Net liquidity, not seasonally adjusted
Official reserve transactions,
F o r notes see opposite page.




N.S.A

1975

1974

-2,315
25,034
-27,349

-1,380
26,593
-27,973

-2,158
-2,692

-513
-721

-498
-741

-349
-572

-405
-393

5,179
10,121
8,841
17,679
5,157
8,389
- 8 , 8 1 9 -15,946

2,354
4,700
2,354
-4,700

2,559
4,080
2,358
-3,879

1,176
2,156
2,148
-3,128

1,392
2,171
2,075
-2,854
1,043

1,830
3,378
25,692
27,188
-25,358 - 2 2 , 3 1 4 -

2,803

3,222

3,830

960

1,049

1,093

-5,930

4,177

3,825

-235

989

3,178

5,015

4,230

5,234

-2,871

-1,606

-1,903

-1,721

-7,537

2,274

2,104

-2,173

-1,938 4 - 5 , 4 6 1

-9,710

335 4 - 3 , 3 5 7

-1,706
137

-2,933
289

4408

234
-69
-3,530
380

1,154
177
-4,968
2,656
-759
4,055
-706

710
-8,463
-7,455
2,224
-1,990
672

-101

-748

-618

4,507
-1,158
351

-1,166

2,348

-457

-439

-448

-462

-692
-3,340

550

2,730

4,553

1,904

3,812

4,762

-649

-727

-721

-99
1,289

23,075
,003

3,832
3,973

-985

-1,015

-821

-304
204
48
-276

125
-5,570
-3,310
-653
-726
-663
-285
67

541
-2,199
-1,041
340
-2,021
653
-437
307

467
-2,431
-2,304
679
-1,001
678
-648
165

-1,500
-4,104

278
-2,157
-1,828

-1

-11,113

- 9 7 7 -10,702

-3,574
-6,097

-6,529
-4,616

-670
-134

1,047

-1,542
-1,457
-306

-4,238 -12,936
-3,886 -12,173
-1,183 -2,603
1,840
831

-1,458
-1,614
-276
432

-2,305
-2,406
-137
238

1,929
1,733
250
-54

-970
-1,008
-167
205

-2,436

4,698

1,135

1,236

2,067

843

-13,829

-7,651

-18,940

-3,897
-5,538

-7,598
-6,475

3,326
4,471

920
774

3,475
-1,247
-742
-505
4,722
3,717
103
902

2,343
-1,951

10,543
-6,267

-790
4,294
3,028
377
889

12,621
1,319
2,870

4,014
-249
-753
504
4,263
3,178
215
870

2,730
-2,101
-1,732
-369
4,831
2,730
1,308
793

-6,587
-4,744
-5,062
318
-1,843
-2,818
871
104

-2,634
-2,287
-2,413
126
-347
175

-10,354

-5,308

-8,397

117

-4,868

-3,261

-1,714

-4,070

—2,214

-1,290

9,734

4,456

8,503

221

710
-1,884

-1,161 - 6 , 1 3 4

-133

16,810

-1,684
399

1,118

673

1,116

-666

144

751

3,886

2,751

1,423

136

630
215
137

841

321

189
32
547
-703
35
153

-475
209

655
-1,434

-1,003

233
-33

-172
3
-1,265

-123
-152
-728

4,492

2,809

1,811

352

4,521

8,124

7,508

548

945

1,554

- 6

-325

-29

241
-84

-4
-14
-307

-16

490

787

,244

- 2 0

-14,539

-7,651

-18,940

-5,538

-6,475

-11,064

-5,308

-8,397

-1,684

-4,070

4,471
-2,214

- 6

-7

774
-1,290

FEBRUARY 1976 • FOREIGN TRADE; U.S. RESERVE ASSETS

A 59

2. M E R C H A N D I S E EXPORTS AND IMPORTS
(Seasonally adjusted; in millions of dollars)

1975 r

II
III....
IV....
Year4..

1975

1972

1973

7,652
8,317
8,307
8,379
8,399
8,673
8,973
8,862

9,412
8,787
8,693
8,574
8,144
8,692
8,884
8,970
9,157
9,288
9,409
9,325

4,436
4,473
4,515
4,417
4,486
4,468
4,565
4,726
4,612
4,738
5,148
5,002

244
483
414
360
703
775
5; 829
6,011
5,644
5,996
6,684
6,291

6,498
7,318
7,742
8,025
8,265
8,577
8,922
9,267
8,696
8,773
8,973
9,257

9,617
7,880
7,285
8,022
7,103
6,962
7,913
7,967
8,189
8,299
8,746

-680

15,336
16,783
18,327
20,413

22,325
24,077
25,085
26,508

26,892
25,409
27,010
28,022

13,424
13,370
13,903
14,888

16,140
16,839
17,483
18,972

21,558
24,867
26,885
27,003

70,823

97,908

107,191

55,583

69,476

100,251

1973

1974

4,074
3,824
3,869
3,820
3,882
3,971
4,074
4,191
4,176
4,312
4,468
4,553

4,955
5,070
5,311
5,494
5,561
5,728
5,865
6,042
6,420
6,585
6,879
6,949

7,150
7,549
7,625

11,767
11,673
12,442
13,333
49,199

8,108

Quarter:

I

19743

1972

1972
Month:
Jan...
Feb.. .
Mar...
Apr...
May..
June..
July...
Aug...
Sept...
Oct...
Nov...
Dec...

Trade balance

Imports 2

Exports i

1
Exports of domestic and foreign merchandise (f.a.s. value basis);
excludes Department of Defense shipments under military grant-aid
programs.
2 General imports, which includes imports for immediate consumption
plus entries into bonded warehouses. See also note 3.
3 Beginning with 1974 data, imports are reported on an f.a.s. transactions value basis; prior data are reported on a Customs import value

19743

1973

1975

+652
+231
-117
+ 83

-449

-289
-413
-103
+ 133
-142
-47
+ 37
+ 32
+776
+589
+ 195
+658

-395

+ 579

24,782
22,087
24,068
25,258

-1,657
-1,697
-1,461
-1,555

-804
-56
+844
+ 1,441

+767
-790
-1,800
-495

+2,111
+ 3,322
+2,942
+2,765

96,140

-6,384

+ 1,347

-2,343

+ 11,050

8,212

-361
-649
-647
-596
-604
-497
-491
-535
-436
-426

-612
-260

-615
-888

-297
-100

-205
+908
+ 1,408
+ 552
+ 1,041
+ 1,730
+971
+ 1,003
+968
+ 1,076
+ 1 , 1 1 0

basis. For calender year 1974, the f.a.s. import transactions value was
$100.3 billion, about 0.7 per cent less than the corresponding Customs
import value of $101.0 billion.
4
Sum of unadjusted figures.
NOTE.—Bureau of the Census data. Details may not add to totals because of rounding.

3. U.S. RESERVE ASSETS
(In millions of dollars)
1

Treasury

Convertible
foreign
curren-

Reserve
position
in
IMF

16,947
16,057
15,596
15,471

16,889
15,978
15,513
15,388

116
99
212
432

1,690
1,064
1,035
769

15,450
14,882
14,830
15,710
4
16,964

13,806
13,235
12,065
10,892
11,859

13,733
13,159
11,982
10,367
10,367

781
1,321
2,345
3,528
4
2,78l

863
326
420
1,290
2,324

1970...
14,487
1 9 7 1 . . . 512,167
19726. .
13,151
19737 . .
14,378
1974.. .
15,883

11,072
10,206
10,487
11,652
11,652

10,732
10,132
10,410
11,567
11,652

629
5 276
241

1,935
585
465
552
1,852

Gold stock
End of
year

Total

1961...
1962...
1963...
1964...

18,753
17,220
16,843
16,672

1965...
1966...
1967...
1968...
1969...

Total 2

Gold stock
SDR's3

End of
month

Total
Total 2

851
1,100
1,958
2,166
2,374

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 I M F 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 5.
2 Includes gold in Exchange Stabilization F u n d .
3 Includes allocations by the I M F of Special Drawing Rights as follows:
$867 million on Jan. 1, 1970; $717 million on J a n . 1, 1971; and $710
million on Jan. 1, 1972; plus net transactions in SDR's.
4
Includes gain of $67 million resulting f r o m revaluation of the German
mark in Oct. 1969, of which $13 million represents gain on mark holdings
at time of revaluation.
5 Includes $28 million increase in dollar value of foreign currencies
revalued to reflect market exchange rates as of Dec. 31, 1971.
6
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,

1975—
Jan
Feb
Mar
Apr
May
June....
July
Aug
Sept
Oct
Nov
Dec
1976—
Jan

Treasury

16,280

11,635
11,621
11,620
11,620
11,620

16,242
16,084
16,117
16,291
16,569
16,592
16,226

11,618
11,599
11,599
11,599
11,599
11,599

11,635
11,621
11,620
11,620
11,620
11,620
11,618
11,599
11,599
11,599
11,599
11,599

816,622

,599

11,599

15,948
16,132
16,256
16,183

11,620

Convertible
foreign
currencies

Reserve
position

2
2
19
2
4
25

1,908
2,065
2,194
2,168

2,218

2,403
2,444
2,423
2,393
2,438

2,179
2,135
2,169
2,144
2,192
2,234
2,212

2,329
2,321
2,301
2,365
2,336
2,335

82,314

82,376

2

28
247
413
423
80

SDR's 3

IMF

2,418

total gold stock is $828 million (Treasury gold stock $822 million), reserve
position in I M F $33 million, and S D R ' s $155 million.
7 Total reserve assets include an increase of $1,436 million resulting
f r o m 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 I M F $54 million, and S D R ' s $217 million.
8 Beginning July 1974, the I M F adopted a technique for valuing the
S D R based on a weighted average of exchange rates for the currencies
of 16 member countries. T h e U.S. S D R holdings and reserve position
in the I M F are also valued on this basis beginning July 1974. At valuation used prior to July 1974 ( S D R 1 = $1.20635) S D R holdings at end
of Jan. amounted to $2,449 million reserve position in I M F , $2,283
million, and total U.S. reserves assets, $2,389.
NOTE.—See Table 20 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.

N O T E S T O T A B L E 1 O N OPPOSITE P A G E :
1
Adjusted to balance of payments basis; among other adjustments,
excludes military transactions and includes imports into the U.S. Virgin
Islands.
2 Fees and royalities from U.S. direct investments abroad or f r o m
foreign direct investments in the United States are excluded f r o m investment income and included in " O t h e r services."
3 Differs f r o m the definition of "net exports of goods and services" in
the national income and product ( G N P ) account. The G N P definition
excludes special military sales to Israel f r o m exports and excludes U.S.
Govt, interest payments f r o m imports.




4
Includes under U.S. Government grants $2 billion equivalent, representing the refinancing of economic assistance loans to India; a corresponding reduction of credits is shown in line 16.
5 Includes some short-term U.S. Govt, assets.
6 Includes some transactions of foreign official agencies.
7 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.

NOTE.—Data are f r o m U.S. D e p a r t m e n t of Commerce, Bureau of Economic Analysis. Details may not add to totals because of rounding.

A 60

GOLD RESERVES • FEBRUARY 1976
4. 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)

End of
period

Estimated
total
world1

1970.
1971.
1972.
1973.
1974.

41,275
41,160
44,890
49,850
49,790

1975—Jan...
Feb...
Mar..
Apr..
May.
June.
July..
Aug..
Sept..
Oct...
Nov..
Dec.P
E n d of
period

49,760
49,755
p

49\740

France

Intl.
Monetary
Fund

United
States

Estimated
rest of
world

Algeria

Argentina

4,339
4,732
5,830
6,478
6,478

11,072
10,206
10,487
11,652
11,652

25,865
26,220
28,575
31,720
31,660

191
192
208
231
231

140
90
152
169
169

239
259
281
311
312

714
729
792
881
882

1,470
1,544
1,638
1,781
1,781

791
792
834
927
927

82
80
87
97
97

64
64
69
77
76

85
85
92
103
103

231
231
231
231
231
231
231
231
231
231
231
231

169
169
169
169
169
169
169
169
169
169

312
312
312
312
312
312
312
312
312
312
312
312

882
882
882
882
882
882
882
882
882
882
882
882

1,781
1 ,781
1 ,781
1,781
1,781
1,781
1,781
1,781
1,781
1,781
1,781
1,781

927
927
927
927
927
927
927
927
927
927
927
927

97
97
97
97
97
97
97
97
97
97
97

76
76
76
76
76
76
76
76
76
76
76
76

103
103
103
103
103
103
103
103
103

6,478
6,478
6,478
6,478
6,478
6,478
6,478
6,478
6,478
6,478
6,478
6,478
Germany

11,635

11,621
11,620
11,620

11,620
11,620
11,618
11,599
11,599
11,599
11,599
11,599
Greece

31,660
31,655

J'M j 660

India

Iran

Iraq

Australia

Italy

Austria

Japan

197 0
197 1
197 2
197 3
197 4

3,532
3,523
3,826
4.261
4.262

3,980
4,077
4,459
4,966
4,966

117
98
133
148
150

243
243
264
293
293

131
131
142
159
158

144
144
156
173
173

2,887
2,884
3,130
3,483
3,483

532
679
801
891
891

1975—Jan...
Feb...
Mar..
Apr..
May.
June.
July..
Aug..
Sept..
Oct...
Nov..
Dec.f

4,262
4,262
4,262
4,262
4,262
4,262
4,262
4,262
4,262
4,262
4,262
4,262

4,966
4,966
4,966
4,966
4,966
4,966
4,966
4,966
4,966
4,966
4,966
4,966

150
150
150
150
150
150
150
150
150
150
150

293
293
293
293
293
293
293
293
293
293

158
158
158
158
158
158
158
158
158
158
158
158

173
173
173
173
173
173
173
173
173
173
173

3,483
3,483
3,483
3,483
3,483
3,483
3,483
3,483
3,483
3,483
3,483
3,483

891
891
891
891
891
891
891
891
891
891
891
891

Portugal

Saudi
Arabia

South
Africa

End of
period

Pakistan

Spain

Sweden

Switzerland

Thailand

Belgium

Kuwait

86
87
94

120
148

140
140
154
154
175
154
154
154
160
160

Canada

Lebanon

China,
Rep. of
(Taiwan)

Libya

Denmark

Egypt

Mexi-

Netherlands

288
322
350
388
389

85
85
93
103
103

176
184
188
196
154

1,787
1,909
2,059
2,294
2,294

389
389
389
389
389
389
389
389
389

103
103
103
103
103
103
103
103
103
103
103
103

154
154
154
154
154
154
154
154
154

2,294
2,294
2,294
2,294
2,294
2,294
2,294
2,294
2,294
2,294
2,294
2,294

160
160

Turkey

United
Kingdom

Uruguay

Venezuela

Bank
for Intl.
Settlements 2

1970
1971
1972
1973
1974

54
55
60
67
67

902
921
1,021
1,163
1,180

119
108
117
129
129

666
410
681
802
771

498
498
541
602
602

200
200
217
244
244

2,732
2,909
3,158
3,513
3,513

92
82
89
99
99

126
130
136
151
151

1,349
775
800
886
886

162
148
133
148
148

384
391
425
472
472

-282
310
218
235
250

1975—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec.f

67
67
67
67
67
67
67
67
67
67
67
67

1 ,175
1,175
1,175
1,175
1,175
1,175
1,175
1,175
1,175
1,175
1 ,175

129
129
129
129
129
129
129
129
129

764
759
755
747
742
734
742
744
762
754
752
749

602
602
602
602
602
602
602
602
602
602
602

244
244
244
244
244
244
244
244
244
244
244
244

3,513
3,513
3,513
3,513
3,513
3,513
3,513
3,513
3,513
3,513
3,513
3,513

99
99
99
99
99
99
99
99
99
99
99
99

151
151
151
151
151
151
151
151
151
151
151

886
886
886
886
886
886
886
886
886

148
148
148
148
148
148
135
135
135
135

472
472
472
472
472
472
472
472
472
472
472
472

265
272
259
260
239
262
264
264
254
256
259
246

i 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 t o be
distributed by the Tripartite Commission for the Restitution of Monetary
G o l d ; excludes holdings of the U.S.S.R., other Eastern European countries, and People's Republic of China.




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
Net gold assets of BIS, i.e., gold assets minus gold deposit liabilities.

F E B R U A R Y 1976 • INTL. C A P I T A L T R A N S A C T I O N S OF T H E U.S.

A 61

5. U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS, AND LIQUID
LIABILITIES TO ALL OTHER FOREIGNERS
(In millions of dollars)
Liabilities to foreign countries
Liquid
liabilities to
IMF
arising
from
gold
transactions 1

End
of
period

1963
1964

9

Official institutions 2

Total

Shortterm
liabilities reported
by
banks
in
U.S.

Marketable
U.S.
Treas.
bonds
and
notes 3

Liquid liabilities to other
foreigners

Nonmarketable U.S.
Treas.
bonds
and
notes 4

Other
readily
marketable
liabilities 5

Liquid
liabilities
to commercial
banks
abroad 6

Total

Shortterm
liabilities reported
by
banks
in
U.S.

Marketable
U.S.
Treas.
bonds
and
notes 3 , 7

Liquid
liabilities to
nonmonetary
intl.
and regional
organizations 8

26,394

800

14,425

12,467

1,183

766

9

5,817

3,387

3,046

341

1,965

/29,313
\29,364

800
800

15,790
15,786

13,224
13,220

1,125
1,125

1,283
1,283

158
158

7,271
7,303

3,730
3,753

3,354
3,377

376
376

1,722
1,722

1965

29,568

834

15,825

13,066

1,105

1,534

120

7,419

4,059

3,587

472

1,431

19669

J31,144
\31,019

1,011
1,011

14,840
14,895

12,484
12,539

860
860

583
583

913
913

10,116
9,936

4.271
4.272

3.743
3.744

528
528

906
905

1967 9

J35,819
135,667

1,033
1,033

18,201
18,194

14,034
14,027

908
908

1,452
1,452

1,807
1,807

11,209
11,085

4,685
4,678

4,127
4,120

558
558

691
677

1968 9

J38,687
138,473

1,030
1,030

17,407
17,340

11,318
11,318

529
462

3,219
3,219

2,341
2,341

14,472
14,472

5,053
4,909

4,444
4,444

609
465

725
722

1969 9

'0/45,755
145,914

1,109
1,019

1015,975
15,998

11,054
11,077

346
346

io 3,070
3,070

1,505
1,505

23,638
23,645

4,464
4,589

3,939
4,064

525
525

659
663

1970—Dec. .

(47,009
146,960

566
566

23,786
23,775

19,333
19,333

306
295

3,452
3,452

695
695

17,137
17,169

4,676
4,604

4,029
4,039

647
565

844
846

1971—Dec. i i

J67,681
167,808

544
544

51,209
50,651

39,679
39,018

1,955
1,955

9,431
9,534

144
144

10,262
10,949

4,138
4,141

3,691
3,694

447
447

1,528
1,523

1972—Dec...

82,862

61,526

40,000

5,236

15,747

543

14,666

5,043

4,618

425

1,627

1973—Dec...

1292,456

1266,827

1243,923

5,701

1215,530

1,673

17,694

5,932

5,502

430

2,003

1974—Dec. 9 .

/119,097
1119,010

76,658
76,665

53,057
53,064

5,059
5,059

16,196
16,196

2,346
2,346

30,314
30,079

8,803
8,943

8,305
8,445

498
498

3,322
3,322

1975—Jan....
Feb.. .
Mar...
Apr.. .
May. .
June'.
July...
Aug...
Sept.'.
Oct.. .
Nov...
Dec.. .

118,036
119,332
119,854

75,960
78,689
79,210
79,085
79,799
80,533
79,705
79,259
77,921
79,798
79,222
79,521

51,832
54,310
53,696
53,521
52,395
51,879
50,318
49,917
48,075
49,602
49,129
48,989

5,177
5,279
6,003
5,941
6,064
6,119
6,160
6,276
6,452
6,624
6,454
6,500

16,324
16,324
16,324
16,365
17,925
19,027
19,474
19,324
19,524
19,524
19,584
19,834

2,627
2,776
3,187
3,258
3,415
3,508
3,753
3,742
3,870
4,048
4,055
4,198

29.135
27,297
27,404
28,794
28,910
28.136
29,157
30,364
30,310
28,467
32,210
29,493

8,752
9,093
9,047
8,843
9,115
9,192
9,122
9,651
9,904
10,021
10,234
10,762

8,244
8,483
8.411
8,188
8,492
8,538
8.412
8,980
9,203
9,283
9,527
10,033

508
610
636
655
623
654
710
671
701
738
707
729

4,189
4.253
4,193
4,088
4.254
4,011
4,284
4,355
4,982
4,942
4,595
5,672

120,810

122,078
121,872
122,268
123,629
123,117
123,228
126,261
125,448

1 Includes (a) liability on gold deposited by the I M F to mitigate the
impact on the U.S. gold stock of foreign purchases for gold subscriptions
to the I M F under q u o t a increases, and (b) U.S. Treasury obligations at
cost value and f u n d s awaiting investment obtained f r o m proceeds of sales
of gold by the I M F to the United States to acquire income-earning assets.
2 Includes BIS, and European Fund through Dec. 1972.
3 Derived by applying reported transactions to benchmark d a t a ;
breakdown
of transactions by type of holder estimated for 1963.
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
a b r o a d and short-term liabilities payable in foreign currencies to commercial banks abroad 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 D a t a o n the 2 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.
Includes $101 million increase in dollar value of foreign currency
liabilities resulting f r o m revaluation of the G e r m a n mark in Oct. 1969.
1
1 Data on the second line differ f r o m 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 f o r
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 $162 million increase in dollar value of foreign currency
liabilities revalued to reflect market exchange rates, as follows: shortterm liabilities, $15 million; and nonmarketable U.S. Treasury notes,
$147 million.
NOTE.—Based on Treasury Dept. data and on data reported to the
Treasury Dept. by banks and brokers in the United States. Table excludes
I M F holdings of dollars, and U.S. Treasury letters of credit and nonnegotiable, non-interest-bearing special U.S. notes held by other international and regional organizations.

A 62

INTL. C A P I T A L T R A N S A C T I O N S OF T H E U.S. • F E B R U A R Y 1976
6. U.S. LIABILITIES TO OFFICIAL INSTITUTIONS
OF FOREIGN COUNTRIES, BY AREA
(Amounts outstanding; in millions of dollars)
Total
foreign
countries

Western
Europe1

50,651
61,526
66,827

30,134
34,197
45,730

3,980
4,279
3,853

1,429
1,733
2,544

13,823
17,577
10,887

415
777
788

870
2,963
3,025

1974—Dec. 3 .

/76,658
\76,665

44,185
44,185

3,662
3,662

4,419
4,419

18,604
18,611

3.161
3,161

2,627
2,627

1975—Jan...
Feb.. .
Mar...
Apr...
May. .
June..
July..
Aug...
Sept...
Oct.. .
Nov.*
Dec. 2 '.

75,960
78,689
79,210
79,085
79,799
80,533
79,705
79,259
77,921
79,798
79,222
79,521

43,331
44,770
45,776
45,063
45,310
45,276
44,241
44,068
43,359
44,867
44,602
45,139

3,621
3,616
3,546
3,251
3,101
3,008
2,966
2,929
3,011
3,049
3,223
3,137

3,659
4,223
4,390
4,506
4,600
4,723
4,748
4,924
4,830
4,254
4,056
4,448

19,555
20,274
19,441
20,062
20,423
20,457
21,299
20,972
20,819
22,008
21,776
21,961

3,232
3,356
3,433
3,493
3,448
3,800
3,319
3,392
3,137
3,018
2,951
2,983

2,562
2,450
2,624
2,710
2,917
3,269
3,132
2,974
2,763
2,602
2,614
1,853

End of period
197 1
1972
197 3

1
Includes Bank for International Settlements, and European Funds
t h r o u g h 1972.
2
Includes countries in Oceania and Eastern Europe, and Western Europ e a n dependencies in Latin America.
3 See note 9 to Table 5.

Latin
American
republics

Canada

Other
countries 2
Africa

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.

NOTE.—Data represent short- and long-term liabilities to the official

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
End of period
Total i

Demand

Time2

U.S.
Treasury
bills and
certificates 3

Other
shortterm
liab.4

55,428
60,696
69,074

55,036
60,200
68,477

6,459
8,290
11,310

4,217
5,603
6,882

33,025
31,850
31,886

11,335
14,457
18,399

392
496
597

/94,847
\94,760

94,081
93,994

14,068
14,064

10,106
10,010

35,662
35,662

34,246
34,258

93,132
94,065
93,006
94,103
93,651
'92,490
92,002
93,515
92,483
91,935
95,337
93,801

92,412
93,332
92,325
93,362
92,986
r
91,906
91,442
92,953
91,929
91,300
94,697
93,202

12,284
12,135
12,319
11,691
11,925
12,595
12,215
12,215
13,422
12,160
12,815
13,714

10,053

38,108
40,428
40,094
40.424
40,628
38,265
38,553
38,518
36,642
37,749
37,297
37,436

31,966
30,567
29,869
30,857
30,059
r
30,458
30,301
31,416
31,346
30,807
34,231
31,394

F o r notes see opposite page.




Deposits

Payable
in
foreign
currencies

10,202

10,043
10,390
10,374
10,536
10,372
10,804
10,518
10,583
10,354
10,658

IMF
gold
invest-5
ment

Deposits

Demand

400

73
86

Time2

U.S.
Treasury
bills and
certificates

192

210

83

326
296

1,367
1,412
1 ,955

101

766
766

3,171
3,171

139
139

111

497
497

721
733
682
742
665
584
560
562
554
635
640
599

3,921
3,976
3,496
3,601
3,853
3,453
4,115
4,253
4,895
4,582
4,471
5,285

123
118
189
99
115
106
146
110
107
132
145
139

111
102
116
126
133
133
134
148
127
151
156
187

1,234
1,260
777
781
1,994
996
2,518
3,156
3,008
2,397
1,605
2,547

202

111

F E B R U A R Y 1976 • INTL. C A P I T A L T R A N S A C T I O N S OF T H E U.S.

A 63

7. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS
IN THE UNITED STATES, BY TYPE—Continued
(Amounts outstanding; in millions of dollars)
To official institutions 9

Total to official, banks and other foreigners
Payable in dollars

Payable in dollars

End of period
Total

Deposits
Demand

Time

2

U.S.
Treasury
bills and
certificates 3

Other
shortterm
liab.4

Payable
in
foreign
currencies

Deposits
Demand

Time

2

U.S.
Treasury
bills and
certificates 3

Other
shortterm
liab.7

59,284
67,119

8,204
11,209

5,401
6,799

31,523
31,590

13,659
16,925

496
597

40,000
43,923

1,591
2,125

2,880
3,911

31,453
31,511

3,905
6,248

1974—Dec. 8

(91,676
\91,589

13,928
13,925

9,995
9,899

35,165
35,165

31,822
31,834

766
766

53,057
53,064

2,951
2,951

4,257
4,167

34,656
34,656

11,066

1975—Jan...
Feb..
Mar..
Apr..
May.
June.
July..
Aug..
Sept..
Oct.. .

89,211
90,090
89,511
90,503
89,797
88,553
87,887
89,261
87,588
87,352
90,866
88,515

12,161
12,016
12,130
11,592
11,811
12,490
12,070
12,104
13,315
12,027
12,670
13,576

9,942
10,100
9,927
10,264
10,241
10,403
10,238
10,656
10,391
10,434
10,198
10,472

36,874
39,169
39,316
39,643
38,634
37,269
36,035
35,362
33,634
35,359
35,692
34,889

29,513
28,072
27,456
28,263
28,448
27,807
28,984
30,576
29,694
28,897
31,669
28,989

721
733
682
742
665
584
560
562
554
635
637
591

51,832
54,310
53,696
53,521
52,395
51,879
50,318
49,917
48,075
49,602
49,129
48,989

2,185
2,058
2,323
2,147
2,175
2,564
2.492
2.493
2,452
2,448
2,242
2,644

4,201
4,206
4,203
4,193
4,331
4,321
4,098
4,239
3,987
3,948
3,655
3,438

36,531
38,840
39,015
39,316
38,372
36,994
35,803
35,055
33,284
34,983
35,247
34,204

8,916
9,206
8,154
7,864
7,517
8,000
7,925
8,130
8,352
8,223
7,985
8,703

1972
197 3

NOV.P

Dec.2>

11,163

To other foreigners

To b a n k s i o
Payable in dollars
End of period

Total
U.S.
Treasury
bills and
certificates

Deposits
Total
Demand

Other
shortterm
liab.4

Deposits
Total
Demand

Time

2

U.S.
Treasury
bills and
certificates

Other
shortterm
liab.7

19,284
23,196

14,340
17,224

4,658
6,941

405
529

5
11

9,272
9,743

4,618
5,502

1,955
2,143

2,116
2,359

65
68

481
933

1974—Dec. 8

/38,619
\38,525

29,676
29,441

8,248
8,244

1,942
1,936

232
232

19,254
19,029

8,304
8,445

2,729
2,729

3,796
3,796

277
277

1,502
1,643

1975—Jan...
Feb.. .
Mar..
Apr.. ,
May. .
June.,
July. .
Aug..,
Sept..,
O c t . 2. .
Nov. *
Dec.P

37,379
35,780
35,815
36,982
37,403
36,674
37,569
39,344
39,512
37,750
41,737
39,526

28,414
26,564
26,722
28,052
28,245
27,553
28,596
29,803
29,756
27,832
31,574
28,902

7,351
7,138
7,067
6,889
6,852
7,067
6,882
6,907
7,982

1,982
2,033

172
155

120

8,244
8,483
8.411
8,189
8,493
8,537
8.412
8,980
9,203
9,282
9,527
10,034

2,625
2,820
2,740
2,556
2,784
2,859
2,696
2,705
2,881
2,769
2,839
3,249

3,760
3,861
3,916
3,969
4,089
4,133
4,107
4,592
4,605
4,708
4,850
4,898

171
174
200
207
156
176
152
230
272
276
311
349

1,61

2,102
1,821
1,949
2,033
1,824
1,799
1,777
1,694
2,136

18,909
17,238
17,747
18,941
19,466
18,438
19,601
20,994
19,897
19,143
22,156
18,747

197 2
197 3

1
2

6,811

7,589
7,683

1,808

101

105
99
80
77
78

100

135
335

D a t a exclude I M F holdings of dollars.
Excludes negotiable time certificates of deposit, which are included
in 3"Other short-term liabilities."
Includes nonmarketable certificates of indebtedness and Treasury
bills issued to official institutions of foreign countries.
4
Includes liabilities of U.S. banks to their foreign branches, liabilities
of U.S. agencies and branches of foreign banks to their head offices and
foreign branches, bankers' acceptances, commercial paper, and negotiable
time
certificates of deposit.
5
U.S. Treasury bills and certificates obtained f r o m proceeds of sales of
gold by the I M F to the United States t o acquire income-earning assets.
U p o n termination of investment, the same quantity of gold was reacquired by the I M F .
6
Principally the International Bank for Reconstruction and Development and the Inter-American and Asian Development Banks.
Includes difference between cost value and face value of securities in
I M F gold investment account.
7
Principally bankers' acceptances, commercial paper, and negotiable
time certificates of deposit.




1,628
1,555
1.457
1,465
1,369
1.458
1,452
1,445
1,530
1,528
1,538

8 D a t a on the 2 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.
9 Foreign central banks and foreign central govts, and their agencies,
Bank for International Settlements, and European Fund through Dec.
1972.
10
Excludes central banks, which are included in "Official institutions."
NOTE.—"Short t e r m " obligations are those payable on demand or having
an original maturity of 1 year or less. F o r data o n long-term liabilities
reported by banks, see Table 9. D a t a exclude International Monetary Fund
holdings of dollars; these obligations to the I M F constitute contingent
liabilities, since they represent essentially the a m o u n t of dollars available
for drawings f r o m the I M F by other member countries. D a t a exclude also
U.S. Treasury letters of credit and nonnegotiable, noninterest-bearing
special U.S. notes held by the Inter-American Development Bank and
the International Development Association.

A 64

INTL. C A P I T A L T R A N S A C T I O N S OF T H E U.S. • F E B R U A R Y 1976
8. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS
IN THE UNITED STATES, BY COUNTRY
(End of period. Amounts outstanding; in millions of dollars)
1975

1974
Area and country
Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

607
2,506
369
266
4,287
9,429
248
2,617
3,234
1,040
310
382
1,138
10,137
152
7,584
183
4,073
82
206

599
2,539
370
202
4,226
11,240
192
2,449
3,414
843
288
358
1,209
8,938
243
7,039
158
2,641
35
218

629
2,810
340
212
4,600
10,229
202
2,498
3,302
827
247
361
1,477
8,817
103
7,053
122
2,516
34
123

627
2,875
323
181
4,982
8,203
273
2,157
3,351
846
267
341
1,697
8,615
87
6,994
126
2,511
61
148

627
3,070
355
365
5,403
6,460
254
2,298
3,535
945
264
362
1,847
8,445
124
6,417
83
2,527
62
370

661
2,982
325
361
5,515
5,440
299
1,426
3,539
1,118
279
392
2,010
7,941
106
6,461
106
2,535
29
181

667
2,891
308
406
5,493
5,277
307
1,056
3,301
1,052
268
288
2,203
8,350
134
8,342
104
2,266
50
160

688
2,865
311
391
5,950
4,797
361
1,426
3,059
982
207
459
2,195
8,104
116
6,261
128
2,408
39
272

606
2,918
327
367
6,608
5,047
331
1,398
3,199
886
236
414
2,252
8,205
128
6,722
138
2,428
42
153

635
2,938
361
380
7,172
4,841
313
1,071
3,301
970
190
402
2,241
8,029
120
7,202
175
2,370
38
128

700
2,917
332
385
7,733
4,407
284
1,141
3,148
996
194
426
2,272
8,555
118
6,884
126
2,930
40
200

48,667

48,852

47,200

46,502

44,666

43,817

41,706

42,924

41,020

42,405

42,878

43,788

3,517

3,520

3,448

3,946

3,951

3,617

3,921

3,637

3,944

3,567

4,091

3,074

886
1,448
1,034
276
305
1,770
488
272
147
3,413

886
1,054
1,034
276
305
1,770
510
272
165
3,413

822
1,248
1,065
258
326
1,668
528
225
177
3,501

886
1,946
1,077
278
313
1,727
695
217
183
3,559

964
2,288
984
260
307
1,876
579
206
168
3,866

989
1,691
1,081
289
400
1,819
549
219
155
3,726

1,061
1,991
853
301
376
1,794
657
228
190
3,964

1,054
2,187
921
280
367
1,811
645
208
160
4,242

984
1,503
1,016
293
379
1,862
752
245
208
4,247

1,135
2,221
1,083
270
366
1,956
765
247
168
3,531

1,142
2,989
1,083
266
387
2,183
840
249
175
3,188

1,147
1,833
1,207
317
414
2,077
1,104
244
172
3,283

1,316

1,316

1,348

1,401

1,353

1,506

1,410

1,364

1,462

1,399

1,361

1,494

158
526

158
596

143
507

113
761

123
905

134
998

104
1,496

105
1,513

119
1,904

113
1,046

118
2,148

'129
'1,448

12,038

11,754

11,817

13,158

13,881

13,557

14,425

14,858

14,973

14,305

16,131

14,869

50
818
530
261
1,221
386
10,897
384
747
333

50
818
530
261
1,221
389
10,897
384
747
333

62
1,037
528
183
497
511
11,390
311
745
455

63
1,038
543
127
582
493
10,993
345
660
446.

56
999
596
168
279
538
11,109
341
662
342

65
1,071
598
145
365
472
11,223
361
697
370

50
1,015
540
133
527
369
11,669
366
632
284

55
1,054
577
214
289
343
11,218
374
669
255

94
1,058
741
214
234
322
11,128
342
604
207

104
1,061
684
194
612
364
9,940
400
580
194

93
1,051
683
181
418
342
10,776
386
593
193

123
1,025
623
126
369
'386
10,142
390
698
252

4,633
813

4,633
820

3,673
978

3,922
905

4,315
861

3,850
906

4,447
767

4,819
919

5,101
970

5,784
926

5,987
885

6,285
910

21,073

21,082

20,371

20,114

20,265

20,122

20,800

20,785

21,015

20,844

21,589

21,330

103
130
2,814
504

103
130
2,814
504

92
191
3,041
524

112
159
3,070
526

113
179
3,009
594

514
141
2,965
572

253
132
2,785
558

295
147
2,873
553

183
254
2,649
560

185
177
2,447
575

255
108
2,372
643

342
168
2,238
622

3,551

3,551

3,848

3,867

3,895

4,192

3,727

3,866

3,646

3,385

3,377

3,370

2,742
89

2,742
89

2,761
66

2,856
60

3,069
71

3,185
64

3,231
77

3,114
75

2,912
78

2,766
80

2,712
87

1,971
114

Dec.
Europe:
Austria
Belgium-Luxembourg
Denmark
Finland
France
Germany
Greece
Italy
Netherlands
Norway
Portugal
Spain
Sweden
Switzerland
Turkey
United Kingdom
Yugoslavia
Other Western Europe 2
U.S.S.R
Other Eastern Europe
Total
Canada
Latin America:
Argentina
Bahamas
Brazil
Chile
Colombia
Mexico
Panama
Peru
Uruguay
Venezuela
Other Latin American republics
Netherlands
Antilles
and
Surinam
Other Latin America
Total
Asia:
China, People's Rep. of
(China Mainland)
China, Republic of (Taiwan)..
Hong Kong
India
Indonesia
Israel
Japan
Korea
Philippines
Thailand
Middle East
oil-exporting
countries 3
Other
Total
Africa:
Egypt
South Africa
Oil-exporting countries 4
Other
Total
Other countries:
Australia
All other
Total
Total foreign countries
International and
regional:
International 5
Latin American6 regional
Other regional
Total
Grand total
For notes see opposite page.




607
2,506
369
266
4,287
9,420
248
2,617
3,234
1,040
310
382
1 ,138
9,986
152
7,559
183
4,073
82
206
r

1

Nov.?

Dec.f

2,831

2,831

2,828

2,916

3,140

3,249

3,308

3,189

2,989

2,846

2,800

2,085

91,676

91,589

89,511

90,503

89,797

88,553

87,887

89,261

87,588

87,352

90,866

88,515

2,900
202
69

2,900
202
69

3,222
229
44

3,291
220
90

3,600
169
84

3,844
181
90

3,950
215
88

'4,615
186
94

4,303
190
90

4,217
193
61

5,062
187
37

4,254

'4,895

4,583

4,471

5,285

93,515 '92,483

91,935

95,337

93,801

r

3,688
155
94

3,171

3,171

3,496

3,601

3,853

'3,937

4,115

94,847

94,760

93,006

94,103

93,651

'92,490

92,002

F E B R U A R Y 1976 • I N T L . C A P I T A L T R A N S A C T I O N S OF T H E U.S.

A 65

8. 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 data7
1974

1973

1974

1973

1975

1975

Area and country

Area and country
Apr.

Dec.

Apr.

Dec.

Apr.

9
12
22

19
8
62

10
11
53

7
21
29

17
20
29

Other Latin American republics:
Bolivia
Costa Rica
Dominican Republic
Ecuador
El Salvador
Guatemala
Haiti
Honduras
Jamaica
Nicaragua
Paraguay
Trinidad and Tobago

65
75
104
109
86
127
25
64
32
79
26
17

68
86
118
92
90
156
21
56
39
99
29
17

102
88
137
90
129
245
28
71
52
119
40
21

96
117
127
122
129
214
35
88
69
127
46
107

93
120
214
157
144
255
34
92
62
125
38

Other Latin America:
Bermuda
British West Indies

127
100

242
109

201
354

19
17

22
12

11
42

Other Western Europe:
Cyprus
Iceland
Ireland, Rep. of

r

107
449

Other Asia—Cont.:
Cambodia
Laos
Lebanon
Malaysia
Singapore
Sri Lanka (Ceylon)
Vietnam

Other Africa:
Ethiopia (incl. Eritrea)
Ghana
Liberia
Southern Rhodesia

r

100
627

Tanzania
Uganda

Other Asia:
Afghanistan
Burma

18
65

Apr.

Dec.

Apr.

Dec.

Apr.

3
4
3
55
59
93
53
6
98

2
6
3
62
58
105
141
13
88

4
6
3
68
40
108
165
13
98

4
22
3
r
126
63
91
r
245
14
126

30
5
180
92
118
215
13
70

75
28
19
31

118
22
20
29

3
16
11
19
37

79
20
23
42
2
3
12
7
6
22

2
12
17
11
66

95
18
31
39
2
4
11
19
13
22

76
13
32
33
3
14
21
23

34

39

33

47

36

19
All other:
New Zealand

1

Data in the 2 columns shown for this date differ because of changes
in reporting coverage. Figures in the first column are comparable in
coverage with those for the preceding date; figures in the second column
are comparable with those shown for the following date.
2 Includes Bank for International Settlements.
3
Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia,
and United Arab Emirates (Trucial States).

18

4

Comprises Algeria, Gabon, Libya, and Nigeria.
5 Data exclude holdings of dollars of the International Monetary Fund.
6
Asian, African, and European regional organizations, except BIS,
which is included in "Europe."
7 Represent a partial breakdown of the amounts shown in the other
categories (except "Other Eastern Europe").

9. LONG-TERM LIABILITIES TO FOREIGNERS REPORTED
BY BANKS IN THE UNITED STATES
(Amounts outstanding; in millions of dollars)
To foreign countries
End of period

Total

1972
1973

1,018
1,462

To
intl.
and
regional

580
761

Total

439
700

Country or area

Official
institutions

Banksi

Other
foreigners

93
310

259
291

87
100

Germany

165
159

United
Kingdom

63
66

Total
Total
Latin
Europe America

260
470

Middle
East 2

136
132

1974—Dec

1,285

822

464

124

261

79

146

43

227

115

r

1975—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov.?
Dec.?

1,406
1,441
1,548
1,414
1,450
1,411
1,399
1,352
1,484
1,385
1,391
1,513

846
776
800
626
585
518
438
378
401
311
297
415

560
666
748
788
865
893
960
974
1,083
1,074
1,093
1,096

223
336
426
466
548
576
641
651
763
748
749
781

266
264
255
253
248
247
242
243
241
241
261
215

71
66
67
68
69
70
77
81
79
83
83
100

144
14}
131
129
123
126
121
120
118
118
115
90

58
57
57
57
57
59
61
61
61
61
61
61

218
211
202
205
201
197
201
202
201
206
206
182

118
119
120
121
121
121
121
123
121
126
147
140

189
304
394
429
514
544
609
619
731
712
712
744

1 Excludes central banks, which are included with "Official institutions."
2 Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq,




94

Other3
Asia

All
other
countries

33
83

10
16

r

8

20

11
9
9
10
5
6
7
6
7
6
6
8

21
21
21
22
22
23
24
23
23
24
24
24

Kuwait, Omari, Qatar, Saudi Arabia, and United Arab Emirates (Trucial
States).
3
Until Dec. 1974 includes Middle East oil-exporting countries.

A 66

INTL. C A P I T A L T R A N S A C T I O N S OF T H E U.S. • F E B R U A R Y 1976
10. ESTIMATED FOREIGN HOLDINGS OF MARKETABLE U.S. TREASURY BONPS AND NOTES
(End of period; in millions of dollars)
1974

1975

Area and country
Jan.

Dec.

Feb.

Mar.

Apr.

Europe:

July

Aug.

Sept.

Oct.

Nov.f

Dec.?

5

14
209
251
34
564
r
97
5

14
209
252
37
522
97
5

14
209
252
37
536
98
5

14
210
278
41
520
102
5

14
217
275
44
501
114
5

14
216
275
54
441
152
5

13
216
275
58
414
152
4

13
215
276
55
363
117
4

1,186

1,217

1,174

1,135

1,151

1,169

1,170

1,157

1,134

1 ,044

697

584

588

460

412

412

408

406

404

399

400

393

12
83
5

11
82
6

11
142
6

11
130
5

11
125
4

11
118
4

13
134
5

13
178
5

13
149
5

13
149
5

13
158
6

33
160
6

33
161
6

100

99

159

147

140

133

152

196

167

168

177

199

200

3,498
212

3,498
325

3,496
541

3,496
1,071

3,496
1,121

3,496
1,291

3,496
1,397

3,496
1,418

3,496
1,498

3,502
1,648

3,520
1,798

3,269
1 ,849

3,271
2,000

3,709

3,822

4,037

4,567

4,617

4,787

4,893

4,914

4,994

5,149

5,319

5,118

5,271

151

151

151

151

161

181

181

201

211

261

311

311

321

5,557

5,685

5,889

6,639

6,596

6,687

6,773

6,870

6,945

7,153

7,362

7,161

7,229

97
53

215
53

226
51

627
71

419
69

342
57

29
44

128
40

66
35

52
35

324
35

94
29

357
29

United Kingdom
Other Western Europe
Eastern Europe
Total

Latin America:
Latin American republics
Netherlands Antilles and Surinam . .
Other Latin America
Total

Total

June

14
209
252
32
611
r
95
5

Germany

Asia:
Japan
O t h e r Asia

May

Africa

10
9
251
30
493
r
88
5

11
9
252
31
529
r
80
5

12
9
252
30
578
r
74
5

14
208
252
29
599

885

916

959

713

r 79

All other
T o t a l foreign countries
International and regional:
International
Latin American regional
Total
Grand total

150

268

277

699

488

399

74

169

101

87

359

124

386

5,708

5,953

6,167

7,337

7,084

7,087

6,847

7,039

7,048

7,240

7,721

7,285

7,615

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 a benchmark survey of holdings as of Jan. 31,1971,
and monthly transactions reports (see Table 14).

11. 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

End of period

Loans to—
Total
Total
Total

1971
1972 3
1973

Others 2

2,080
2,975
2,970
4,538

1,658
2,535
2,538
2,838

2,475
3,269
3,276
4,307

4,254
3,204
3,226
4,160

1,679
2,478
2,657
3,935

895
846
846
662

548
441
441
428

173
223
223
119

3,579

5,637

11,237

9,659

1,195

668

289

238

351
336
290
241
301
335
296
240
236
231
340
301

204
229
231
242
277
286
271
298
319
341
316
376

3,969
5,674
5,671
7,660

231
163
163
284

1974—Dec

39,030

37,835

11,301

381

7,342

1975—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct

39,074
39,863
42,274
42,748
45,831
45,705
45,537
45,439
45,564
47,697
48,051
49,684

37,800
38,689
41,127
41,646
44,775
44,492
44,362
44,291
44,433
46,380
46,770
48,397

10,207
10,288
9,606
10,637
11,839
11,344
11,700
13,082
12,706
12,632
13,056
13,387

361
379
310
362
366
494
572
626
572
622
670
592

6,289
6,384
5,659
6,494
7,622
6,793
6,835
7,960
7,520
7,483
7,913
7,790

Dc.F

1
Excludes central banks which are included with "Official institutions."
2 Includes international and regional organizations.
3
D a t a on the 2 lines shown for this date differ because of changes




3,557
3,525
3,637
3,780
3,852
4,057
4,292
4,497
4,614
4,517
4,473
5,005

5,565
5,346
5,418
5,342
5,537
5,345
5,383
5,314
5,314
5,465
5,361
5,467

11,062
11,127
11,341
11,441
10,959
10,639
10,204
9,977
10,071
10,134
10,610
11,124

10,966
11,927
14,762
14,226
16,440
17,165
17,076
15,917
16,342
18,160
17,743
18,420

Total

Other

Banks 1

12,377
14,625
14,830
20,061

Other

Foreign
govt, seDeposits curities,
with for- coml.
eigners
and finance
paper

Official
institutions

13,272
/15,471
\15,676
20,723

NOV.P

AcceptCollecances
made
tions
for acct.
outstandof foring
eigners

1,274
1,175
1,147
1,102
1,056
1,212
1,175
1,148
1,130
1,306
1,261
1,287

719
609
626
619
478
591
608
610
576
734
625
611

174
182
182
115

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.

F E B R U A R Y 1976 • INTL. C A P I T A L T R A N S A C T I O N S OF T H E U.S.

A 67

12. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS
IN THE UNITED STATES, BY COUNTRY
(End of period. Amounts outstanding; in millions of dollars)
1975

1974

Area and country

Europe:

Italy

.... *

Turkey

U.S.S.R
Other Eastern Europe
Total

Latin America:
Brazil
Chile
Colombia.
Panama
Peru
Uruguay
Venezuela
Otl^fij" Latin American republics
Netherlands Antilles and Surinam
Other l^atin America
Total
Asia:
China, People's Rep. of (China Mainland)
China, Republic of (Taiwan)

Japan
Korea
Philippines
Thailand
Middle East oil-exporting countries 1
Other
Total
Africa:
South Africa
Oil-exporting countries 2
Other
Total
Other countries:
All other
Total

Dec.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

21
384
46
122
673
589
64
345
348
119
20
196
180
335
15
2,570
22
22
46
131

22
550
41
137
896
387
46
287
187
104
32
150
72
230
19
2,984
16
24
34
110

16
674
53
147
859
399
54
334
157
114
26
234
101
227
37
3,261
28
31
51
113

19
647
49
137
726
389
37
329
221
126
25
251
132
277
30
3,712
39
25
83
117

17
600
64
133
584
428
37
339
218
98
25
235
115
252
40
3,476
31
22
77
118

16
620
62
143
666
482
46
363
288'
91
27
257
155
254
26
3,458
36
22
80
130

28
598
60
143
741
448
50
336
338
106
22
214
185
290
43
4,067
40
62
79
110

20
536
46
130
906
443
54
363
313
102
18
245
182
214
56
3,724
37
23
106
110

19
554
50
127
1,329
495
56
437
264
102
15
256
152
274
54
3,792
34
22
144
96

15
351
49
128
1,403
427
49
370
300
71
16
249
167
232
86
4,574
38
27
103
114

6,245

6,327

6,918

7,373

6,910

7,222

7,960

7,630

8,275

8,534

8,769

2,919

2,896

3,081

2,837

2,651

2,340

2,626

2,728

2,739

2,808

720
3,398
1,415
290
713
1,972
503
518
63
704
852
62
1,156

869
5,926
1,266
395
695
2,120
546
555
104
736
902
39
1,603

958
5,714
1,299
433
710
2,245
524
606
116
757
954
36
1,744

1,007
7,723
1,272
422
702
2,383
671
590
100
745
960
44
2,240

1,111
8,658
1,184
429
687
2,548
527
623
85
791
953
83
1,843

1,105
7,813
1,390
472
666
2,676
581
626
90
902
1,043
62
1,692

1,115
6,627
1,505
435
667
2,762
578
646
73
956
992
54
2,104

1 ,219
6,432
1,491
405
684
2,705
721
624
54
1,109
998
57
1,700

1,344
7,250
1,536
351
662
2,623
903
599
52
1,050
1,028
72
2,202

1,229
6,856
1,782
381
649
2,549
866
565
56
980
956
59
2,520

1,203
7,331
2,227
360
689
2,773
1,032
588
51
1,086
972
62
1,868

12,366

15,758

16,096

18,859

19,521

19,118

18,516

18,199

19,673

19,448

20,243

4
500
223
14
157
255
12,514
955
372
458
330
441

19
500
291
17
145
322
11,605
1,356
353
406
369
477

11
448
210
21
134
299
10,887
1,503
398
413
563
444

12
434
288
17
119
287
10,603
1,415
455
374
411
554

9
483
315
20
115
312
10,245
1,523
478
441
418
489

13
463
201
23
113
362
10,308
1,462
481
461
527
541

13
503
190
38
88
358
10,292
1,502
410
494
493
572

11
600
231
21
91
398
10,400
1,515
340
474
624
651

11
601
257
17
86
389
10,253
1,555
338
501
446
702

11
681
258
16
92
387
10,429
1,505
347
499
506
660

22
735
258
21
103
491
10,760
1,556
377
493
524
685

16,222

15,860

15,330

14,969

14,848

14,955

14,954

15,357

15,156

15,391

16,023

111
329
115
300

122
413
108
232

142
458
95
278

138
475
128
276

149
498
120
302

134
489
144
296

141
492
134
347

125
504
190
343

127
513
207
379

130
540
215
409

104
545
231
351

855

875

973

1,018

10,68

1,064

11,14

1,162

1,227

1,294

1,231

466
99

436
99

428
107

440
89

428
81

446
80

466
88

509
80

532
105

554
91

535
73

565

535

535

528

509

526

554

589

638

645

608

39,030

42,274

42,747

45,829

45,694

45,536

45,436

45,562

47,696

48,050

49,683

1

1

2

1

3

39,030

42,274

42,748

45,831

45,705

45,537

45,439

45,564

47,697

48,051

49,684

1 Comprises Bahrain, Iran, Iraq, Kuwait, O m a n , Qatar, SaucJ; Arabia,
and United A r a b Emirates (Trucial States).
2 Comprises Algeria, G a b o n , Libya, and Nigeria.
NOTE.—Short-term claims are principally the following items payable
on demand or with a contractual maturity of not more than 1 year: loans




32
457
54
133
1,190
659
91
413
285
92
19
261
182
314
121
3,882
55
24
165
103

Dec.f

2,776

Ir»tf»r«ntir»n{i1 find r p c i n n a l . . . . . . . . . . . . . . .
Grand total

Nov.*'

made to, and acceptances made for, foreigners; drafts drawn against
foreigners, where collection is being made by banks and bankers for
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.

A 68

INTL. C A P I T A L T R A N S A C T I O N S OF T H E U.S. • F E B R U A R Y 1976
13. 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
End of
period

Total

Loans to—
Other
Banks 1 foreigners 2

Total

Official
institutions
844
1 ,160

1972
1973

5,063
5,996

4,588
5,446

1974—Dec

7,171

6,482

1975—Jan ,
Feb
Mar
Apr
May. . . .
June....
July
Aug
Sept
Oct.®. . .
Nov.®...
Dec.®...

7,284
7,480
7,569
7,598
7,885
7,930
8,221
8,257
8,539
8,860
9,071
9,405

6,631
6,799
6,900
6,915
7,194
7,118
7,339
7,386
7,637
7,907
8,050
8,367

Other
longterm
claims

Payable
in
foreign
currencies

Total
Europe

Canada

Total
Latin
America

40
72

853
1,272

406
490

2,020
2,116

353
251

430
591

3,314
3,694

435
478

1 ,333

931

4,219

609

80

1,907

501

2,602

258

1,370
1,378
1,399
1 ,239
1 ,282
1 ,269
1,286
1,276
1,345
1,266
1,279
1,360

972
1,035
1,063
1,110
1,192
1,204
1,290
1,336
1,364
1,516
1,564
1,709

4,289
4,386
4,438
4,566
4,720
4,645
4,763
4,774
4,929
5,125
5,206
5,298

583
611
598
605
610
719
792
787
809
840
903
921

69
69
70
78
81
92
90
85
93
114
118
116

1,992
2,096
2,126
2,188
2,325
2,285
2,344
2,387
2,426
2,534
2,529
2,663

490
500
500
505
491
461
471
438
508
595
569
542

2,603
2,675
2,695
2,786
2,851
2,841
2,985
3,003
3,132
3,168
3,281
3,456

248
248
247
242
254
264
270
259
265
292
293
312

1
Excludes central banks, which are included with "Official institutions."
23 Includes international and regional organizations.
Comprises Middle East oil-exporting countries as follows: Bahrain,

Middle
East 3

Japan

Other4
Asia

All
other
coun-2
tries

918
1,331

514
536

384

977

542

373
388
385
247
242
241
241
237
237
222
249
220

1,019
972
1,024
1,002
1,042
1,135
1,204
1,204
1,195
1,214
1,219
1,245

560
601
592
630
679
684
707
728
775
835
931
967

Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates
(Trucial
States).
4
Until Dec. 1974 includes Middle East oil-exporting countries.

14. PURCHASES AND SALES BY FOREIGNERS OF LONG-TERM SECURITIES, BY TYPE
(In millions of dollars)
Marketable U.S. Treas. bonds and notes 1

Foreign bonds 3

U.S. corporate
securities 2,3

Foreign stocks 3

Net purchases or sales ( —)
Period
Total

Intl.
and
regional

Purchases

Foreign
Total 4

Official

-165
101

470
-573

465
-642

Net purchases
sales ( —)

PurSales

Sales

Net purchases or
sales ( — j

4,764
1,506

1 ,474
1,045

2,467
3,284

-993
-2,240

1,729
1 ,907

1 ,554
1,721

15,202

5,107

2,388

8,717

-6,329

1,538

1,719

1,246

-145

101

524

-423

117

87

30

913
1,445
1,155
1,397
1,679
1,332
1,278
1,338
1,124
1,362
1,231
947

333
254
604
243
167
422
973
82
133
662
374
860

131
118
197
167
172
215
315
158
194
195
248
282

1,207
554
647
341
345
855
1,011
353
287
678
991
1,449

-1,076
-436
-450
-174
-173
-640
-696
-195
-93
-484
-743
-1,167

147
134
148
155
145
129
109
89
91
137
107
148

156
173
159
141
157
143
119
256
79
161
78
97

-9
-39
-11
14
-12
-15
-10
-167
11
-24
29
51

1975—Jan.-Dec.f

1,908

236

1,672

1,441

156

-15

171

153

17

1,101

245
214
1,171
-254
3
-240
192
9
192
481
-435
330

118
9
421
-210
-89
-326
95
-67
-14
272
-235
262

127
205
749
-43
92
86
96
77
206
209
-201
68

118
102
724
-62
123
56
41
117
175
173
-171
47

9
102
25
20
-31
31
56
-40
31
37
-30
21

1,246
1,699
1,760
1,640
1,846
1,754
2,251
1,421
1,257
2,023
1,605
1,808

230 20,309

1
Excludes nonmarketable U.S. Treasury bonds and notes issued to
official
institutions of foreign countries.
2
Includes State and local govt, securities, and securities of U.S. Govt,
agencies and corporations. Also includes issues of new debt securities
sold abroad by U.S. corporations organized to finance direct investments
abroad.
3
Includes transactions of international and regional organizations.
4
Includes transactions (in millions of dollars) of oil-exporting countries
in Middle East and Africa as shown in the tabulation in the opposite
column:




Sales

6 18,574 13,810
69 16,183 14,677

305
-472

1975—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov. p
Dec

Net pur- Purchases or chases
sales ( —)

Other

1973
1974

1974—Dec

Sales

1975

Middle East

Africa

Jan.-Dec.®

1,698

170

Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.?

Dec.p

100

209
525
50
175
106

1

80
150
150
51
101

10
20

'26'
10

50
50

"io*

176
185
-182

FEBRUARY 1976 • INTL. CAPITAL TRANSACTIONS OF THE U.S.

A 69

15. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE STOCKS, BY COUNTRY
(In millions of dollars)

197 3
197 4
1975—J an.-Dec.*
1974—Dec..
1975—Jan.. .
Feb.. .
M ar..
Apr..
May. ,
June. ,
July..
Aug..
Sept..
Oct.. .
Nov.*
Dec.*,

Netherlands

Switzerland

United
Kingdom

Total
Europe

2
39

339
330

686
36

366
-377

2,104
281

99
-6

4
-33

262

250

359

897

569

2,464

356

-7

13

13

20

-10

-76

-30

14

10

36
21
12
-15
-6
32
55
52
10
16
22
28

17
25
15
23
4
1
31
52
7
-7
40
40

8
14
40
26
27
19
80
47
22
17
-5
64

42
115
39
44
100
71
139
83
64
36
42
123

-8
147
38
54
59
36
75
38
7
48
44
32

111
331
150
136
193
152
396
302
123
142
132
297

12
20
15
-5
36
21
20
21
20
59
36
102

-15
13
-5
2
1
8
13
-6
-15
7
—l
-9

Purchases

Sales

12,767
7,634

9,978
7,095

2,790
540

439
203

15.036

10,600

4,435

450

429

21

554
891
913
,058
,149
,063
,080
712
642
,042
809
686

193
529
240
259
378
258
589
441
240
365
304
639

748
1 ,420
1 ,152
1 ,318
1 .527
1 ,321
1,669.
1 ,153
882
1 ,407
1,114
1 ,325

1
1
1
1
1

Net purchases or France
sales (—)

Germany

2
3

1
Comprises Middle East oil-exporting countries as follows: Bahrain,
Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates
(Trucial States).

Total
Canada America
Latin

Middle
East 1

Other
Asia 2 Other ^

1,440

86
153
85
119
113
87
153
82
72
130
122
238

577
288

5
10

140

39

27

*

-3
-4
-6
2
36
9
2
26
32
21
12
13

2
15
*

5
-2
-19
6
16
8
6
4
-2

Until 1975 includes Middle East oil-exporting countries.
Includes international and regional organizations.

16. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE BONDS, BY COUNTRY
(In millions of dollars)

Period

201

1 ,948
993

197 3
197 4
1975—Jan.-Dec.
1974—De c
1975—Ja n
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov.*. . .
Dec.*
1
2

Germany

Total

Total
Nether- Switzer- United
Kingdom Europe
land
lands

275
329

307
96

-19
183

96

1
2
-4

140
-275
365

1
1

- 1 6

164
384
-358
-107
296
69
221

6
3
10
35
7
5
35

-1
-1

- 2 6

3
9
27
13
-13

-212

Total
Latin
America

49
50

44
43

1,204
672

8
6

1

39
2

- 1 8

- 6

25
2
-17
3

-7
12
9

64

66

59
-91
23
-99

94
-87
32

- 8 1

32
80
-69
121

89
-41
56

-4
3

-100

*1
1
1

-72
58
183
-73
-19
51
-25
74

Total
Africa

Other Intl. and
countries regional

588
632

52
-456

-42

-993

93

-337

1
1
-19
1
-11
-1
4
1

-120

-241
10
- 6

-218

38
-17
-292

-162
-11

-7
-4
4

11

16

- 1 2

18. FOREIGN CREDIT AND DEBIT
BALANCES IN BROKERAGE ACCOUNTS
(Amounts outstanding; in millions of dollars)

Asia

Africa

-120
-93

-168
144

3
7

37
22

Europe

Canada

Latin
America

-818
-2,054

-957
139
- 6 0 -1,995

-141
-546

-569
-1,529

1975—
Jan.-Dec.*.... - 6 , 4 5 9

-2,192 - 4 , 2 6 7

Intl.
and
regional

-47

-3,155

-306

-619

15

-154

-393

-95

-298

-27

-190

-25

-67

12

*

1975—Jan
-1,085
-475
Feb
-462
Mar
-160
Apr.. . .
May. . .
-185
-655
June. . .
-706
July....
-362
Aug.. . .
-82
Sept....
-508
Oct.* . .
714
Nov.*..
1,116
Dec.*. .

-572
-147
-106
-57
31

-514
-328
-356
-103
-216
-655
-231
-341
-100
-513
-652
-277

-41
19
-66
-57
39
-22
-26
24
-19
48
-27
80

-405
-159
-175
-6
-168
-478
-116
-204
-131
-460
-584
-287

-28
-97
-3
17

-60
-94
-112
-59
-88
-30
-69
1
24
-56
3
-78

20
2
-2

*




82
209
75
130

6
6

Other
countries

Total
foreign
countries

1974—Dec.. . .

-1

5

(In millions of dollars)

1973
1974

81

65
179

11

17. NET PURCHASES OR SALES BY FOREIGNERS OF
LONG-TERM FOREIGN SECURITIES, BY AREA

Total

151
35
341
80

Other
Asia 2

NOTE.—Statistics include State and local govt, securities, and securities
of U.S. Govt, agencies and corporations. Also includes issues of new
debt securities sold abroad by U.S. corporations organized to finance direct investments abroad.

See note 1 to Table 15.
See note 2 to Table 15.

Period

Middle
East1

80

82

672
-166

Canada

*

-475
-21
18
5
-62
-839

*
*

-25
-164
25
-48
6
9

*

1
2
-2
2
2 -127
*
4
1
2
—1
1
-3
6
-2
-48
1
*

Credit
balances
(due to
foreigners)

Debit
balances
(due from
foreigners)

1973—Mar..
June..
Sept..
Dec...

310
316
290
333

364
243
255
231

1974—Mar..
June..
Sept..
Dec...

383
354
298
293

225
241
178
194

1975—Mar..,
June*.
Sept.*

349
380
258

209
233
343

End of
period

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.

A 70

INTL. CAPITAL TRANSACTIONS OF THE U.S. • FEBRUARY 1976
19a. 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 BAHAMAS AND CAYMANS *
Total, all currencies

For notes see p. A-74.




Parent
bank

Other

Total

Other
branches
of parent
bank

Other
banks

OffiNoncial
bank
instifortutions eigners

1972—Dec...
1973—Dec...

78,202
121,866

4,678
5,091

2,113
1,886

2,565
3,205

71,304
111,974

11,504 35,773
19,177 56,368

1,594 22,432
2,693 33,736

1974—Nov...
Dec...

150,274
151,905

7,751
6,898

5,159
4,464

2,592
2,434

136,442
138,713

28,366 58,727
27,559 60,283

4,019 45,330
4 , 0 7 7 46,795

1975—Jan...
Feb.. .
Mar...
Apr...
May..
June..
July. .
Aug...
Sept...
Oct.. .
Nov.®.

151,140
151,662
155.204
155,616
156,909
162,342
160,703
165,835
166,075
169,424
172,502

7,029
5,486
5,326
5,831
7,726
5,538
5,918
9,100
6,572
7,917
8,690

4,360
2,882
2,638
3,052
4,889
2,342
2,788
6,048
3,267
4,891
5,764

2,669
2,604
2,779
2,837
3,196
3,129
3,052
3,305
3,026
2,926

138,143
140,345
143,750
143,949
143,101
150,516
148,225
150,197
153,171
155,014
157,034

27,894
28,969
28,330
29,195
27,581
30,870
30,153
31,283
31,506
32,674
34,325

58,863
58,794
61,611
60,292
60,330
63,710
62,438
62,455
65,011
64,186
64,392

4,152
4,246
4,407
4,353
4,494
4,836
4,796
4,892
4,861
5,226
5,502

47,234
48,335
49,402
50,109
50,697
51,101
50,839
51,567
51,793
52,928
52,815

1972—Dec...
1973—Dec...

52,636
79,445

4,419
4,599

2,091
1,848

2,327
2,751

47,444
73,018

7,869 26,251
12,799 39,527

1,059
1,777

12,264
18,915

1974—Nov...
Dec...

105,066
105,969

7,445
6,602

5,105
4,428

2,340
2,174

94,581
96,210

20,623 43,741
19,688 45,067

3,192 27,026
3,289 28,166

1975—Jan.. .
Feb...
Mar...
Apr...
May. .
June..
July. .
Aug...
Sept...
Oct.. .
Nov.®.

105,776
104,360
107,519
108,399
111,638
117,296
117,268
121,478
123,119
125,840
129.205

6,706
5,141
5,012
5,466
7,316
5,112
5,511
8,776
6,236
7,500
8,336

4,318
2,839
2,607
3,009
4,825
2,280
2,737
5,995
3,210
4,817
5,712

95,989
2,387
2,302 96,327
2,405 99,637
2,456 100,231
2,491 101,384
2,832 109,181
2,774 108,281
2,782 109,425
3,025 113,926
2,682 115,163
2,624 117,589

20,448
20,827
19,836
20,993
21,281
24,529
24,180
25,071
25,444
26,554
27,899

43,151
42,672
46,118
45,172
45,403
49,132
48,572
48,063
51,470
50,006
51,006

3,370
3,431
3,604
3,599
3,685
3,949
3,929
4,148
4,040
4,363
4,644

29,020
29,397
30,079
30,467
31,016
31,571
31,600
32,143
32,971
34,240
34,041

1972—Dec...
1973—Dec...

43,467
61,732

2,234
1,789

1,138
738

1.096
1,051

40,214
57,761

5,659 23,842
8,773 34.442

606
735

10,106
13,811

1974—Nov...
Dec...

69,137
69,804

3,387
3,248

2,568
2,472

818
776

63,571
64,111

13,122 32,128
12,724 32,701

753
788

17,567
17,898

1975—Jan.. .
Feb.. .
Mar...
Apr...
May..
June..
July..,
Aug...
Sept...
Oct.. .
Nov.®.

68,451
67,038
69,654
69,248
68,707
70,751
70,382
72.455
72,120
72,742
73,924

2,633
1,798
2,017
2,535
1,834
1,904
3,795
2,042
2,681
3,112

1,902
1,023
982
1 ,126
1,689
641
807

1,076
1,699
2,137

731
796
817
891
845
1,192
1.097
1,097
967
982
975

63,527
63,250
65,693
65,330
64,269
66,868
66,277
66,428
67,923
67,631
68,494

12,873
13,246
12,806
13.314
12,491
13,765
14,414
15,213
15,249
16,555
17,549

32,057
31,641
34,260
33,079
32.443
34,634
33,431
32,998
34,759
32,806
33,189

854
848
929
919
920
948
923
948
825
830
852

17,743
17,515
17,699
18,018
18,415
17,522
17,509
17,268
17,091
17,440
16,904

1972—Dec...
1973—Dec...

30,257
40,323

2,146
1,642

1,131
730

1,015
912

27,664
37,816

4 , 3 2 6 17,331
6,509 23,389

543
510

5,464
7,409

1974—Nov...
Dec...

48,710
49,21

3,277
3,146

2,546
2,468

730
678

44,198
44,693

10,796 22,936
10,265 23,716

615
610

9,852
10,102

1975—Jan...
Feb...
Mar...
Apr...
May..
June..
July..
Aug...
Sept...
Oct.. .
Nov.®.

47,769
46,019
48,939
48,797
48,506
51,365
51,665
53.456
54,256
54,192
56,221

2,542
1,697
1,687
1,885
2,404
1,669
1,742
3,661
1,910
2,552
2,988

1,892
1,017
974
1,109
1,671
623
793
2,681
1,054
1,687
2,123

650
680
713
776
733
1,045
949
980
856
865
865

43,959
43,244
46,039
45,923
45,180
48,713
48,787
48,763
51,369
50,494
52,145

10,421
10,615
10,373
10,995
10,656
12,054
12,664
13.315
13,488
14,654
15,555

22,610
21,918
24,874
23,990
23,320
25,761
25,143
24,540
27,008
24,691
25,600

1972—Dec...
1973—Dec...

12,642
23,771

2,210

1,486

214
317

1,272
1,893

10,986
21,041

725
1,928

5,507
9,895

431
1,151

4,322
8,068

1974—Nov...
Dec...

32,313
31,733

3,299
2,463

1,816
1,081

1,484
1,382

28,130
28,455

3,829
3,478

11,371
11,354

1,993
2,022

10,937
11,601

1975—Jan.. .
Feb...
Mar...
Apr...
May..
June. .
July..
Aug..
Sept..
Oct...
Nov. p ,

33,131
33,534
33,793
35,666
38,198
39,646
39,614
41,624
41,601
44,166
244,606

223
563
405
586
125
633
786
115

1,594
1,072
839
1,006
2,468
987
1,134
2,580
1 ,289
2,295
2,931

1,629
1,491
1,567
1,581
1,657
1,645
1,652
1,535
1,899
1,692
1,613

29,070
30,137
30,671
32,359
33,215
36,182
35,678
36,556
37,481
39,226
39,109

3,644 11,194
3,855 11,474
3,568 11,634
4 . 3 2 0 12,229
4,270 13,181
5,831 13,747
5,015 14,065
5,222 14,117
5,220 14,604
5,604 15,414
5.321 15,211

1,818

188
;988
544

2,(

2,r~

661 10,268
657 10,055
736 10,057
721 10,217
698 10,506
721 10,178
713 10,267
740 10,168
596 10,277
592 10,557
638 10,353

2,027 12,206
2,060 12,748
2,393 13,077
2,419 13,392
2,531 13,233
2,772 13,832
2,747 13,851
2,891 14,326
3,020 14,637
3,308 14,901
3,432 15,144

FEBRUARY 1976 • INTL. CAPITAL TRANSACTIONS OF THE U.S.

A 71

19b. 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

2,580
4,641

. 1972—Dec.
. 1973—Dec.

27,717 63,596 19,979
26,941 65,675 20,185

6,755
6,933

. 1974—Nov.
Dec.

64,147
63,402
63,419
62,287
64.700
64.955
65.956
70,161
70,756
70,333
70,411

21,683
21,951
22,577
23,236
22,223
21,106
20,371
21,093
19,744
20,627
21,187

,533
,507
,257
,088
,243
,535
,191
,326
6,149
6,172
6,740

. 1975—Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov."

50,406
73,189

7,955 29,229
12,554 43,641

6,781
7,491

1,422
2,158

. 1972—Dec.
, 1973—Dec.

5,192
5,795

92,233
92,503

20,242 43,147
19,330 43,656

16,789
17,444

3,979
3,951

. 1974—Nov.
Dec.

6,204
11,368
12,063 6,460
14,795 8,660
8,517
14,277
16,256 10,189
17,998 12,008
17,090 11,335
16,538 9,840
18,193 10,645
18,967 10,987
19,943 10,913

5,164
5,603
6,135
5,760
6,067
5,990
5,755
6,698
7,548
7,980
9,030

93,044
90,426
91,338
92,715
94,452
97,828
99,013
103,987
104,062
105,569
108,264

42,854
40.701
41,216
40,999
43,863
44,202
45,897
49,418
50,682
49,704
50,291

18,343
18,708
19,303
19,909
|8,928
17,968
17,393
18,080
16,777
17,476
18,407

3,778
3,636
3,368
3,414
3,397
3,560
3,216
3,381
3,187
3,363
3,863

. 1975—Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov."

1,453
2,431

113
136

1,340
2,295

41,020
57.311

2.961 24,596
3,944 34,979

6,433
8,140

030
248

994
1,990

.1972—Dec.
.1973—Dec.

4,376
3,978

889
510

3,487
3,468

62,397
63,409

5.071 30,352
4,762 32,040

15,454
15,258

521
349

2,363
2,418

. 1974—Nov.
Dec.

3.804
4,376
5,095
4,596
4,772
4,668
4,679
5,251
5,612
5.486
6,270

873
913
1,224
1,342
1,337
1,451
1,718
1,904
1,833
1,766
2,028

2,931
3,462
3,871
3,254
3,435
3,217
2,961
3,348
3,779
3,720
4,242

62,360
60,546
62,363
62,625
61,772
63,857
63,501
65,012
64,462
65,119
65,493

4,567
4,693
4,630
5,394
5,325
7,030
6,475
6,260
6,396
6,746
6,470

30,266 16,419
29,207 16,517
29,990 17,305
28,666 17,812
28,957 16,726
30,030 15,524
30,636 15,312
32,097 15,617
33,130 14,486
32,334 14,909
33,340 15,180

127
438
753
764
274
077
038
450
130
502

108

2,287
2,117
2,196
2,026
2,164
2,226
2,203
2,194
2,046
2,138
2,161

.1975—Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov."

1,272
2,173

72
113

1,200
2,060

29,002
36,646

2,008 1 7 , 3 7 9
2,519 22,051

5,329
5,923

287
152

535
870

4,037
3,744

865
484

3.172
3,261

44,256
44,594

3,557 20,200
3,256 20,526

12,808
13,225

691
587

1,375
1,328

. 1974—Nov.
Dec.

3,599
4,164
4.805
4,297
4.487
4,369
4,421
4,975
5,389
5,276
6,062

854
895
1,189
1.313
1.314
1,412
1,684
1,873
1,808
1,735
2,009

2,744
3,269
3,616
2,984
3.173
2,957
2,737
3,103
3,581
3,541
4,053

43,578
41,350
43,546
43,758
43,784
46.312
46,217
47,912
48,314
48,079
49,411

3,172
3,266
3.072
3,886
4,220
5.962
5,478
5,288
5,456
5,708
5,478

19,061
17,673
19,128
17,997
18.640
20,039
20,775
22,087
23,645
22,452
23.641

13,736
13,932
14,688
15,158
14,135
13,083
12,915
13,249
12,182
12,500
12,999

609
479
658
717
789
228
049
287
031
419
293

1,313
1,184
1,183
1,122
1,208
1,167

.1975—Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov."

1,220
1,573

312
307

908
1,266

11,260
21,747

1,818
5,508

7,875
14,071

230
492

338
676

163
451

1972—Dec.
1973—Dec.

4,426
4,815

2,699
2,636

1,727
2,180

27,107
26,140

8,538
7,702

14,132
14,050

2,296
2,377

011

141

779
778

1974—Nov.
Dec.

5,036
5,243
7,228
7,420
9,090
10,866
9,991
8,800
9,928
10,833
11,187

2,926
3,281
5,081
5,083
6,766
8,322
7,407
5,715
6,490
7,056
6,710

2,11
1,962
2,147
2,337
2,324
2,544
2,584
3,085
3,439
3,778
4,477

27,343
27,498
25,875
27,536
28,309
27,987
28,933
31,913
30,861
32,372
32,269

8,269 14,259
8,975 13,550
8,498 12,614
8,756 13,694
6,872 16,018
8,075 14,482
8,401 15,539
9,128 17,317
8,918 16,834
9,725 17,296
10,554 16,001

2,595
2,711
2,520
2,769
2,977
3,036
2,500
2,860
2,570
2,775
3,230

220
262
243
318
441
393
492
607
540
577
484

752
793
690
711
799
793
690
911
812
961
,150

1975—Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov."

3,501
5,610

997
1,642

2,504
3,968

72,121
111,615

11,121 41,218
18.213 65,389

11,901
11,982

6,249
5,809

5,652
6,173

131,619
132,990

11,831
12,561
15,407
14,935
18,618
17,704
17,183
18,824
19,644
20,640

6,356
6,607
8,849
8,703
10,366
12,204
11,542
10,021
10,848
11,191
11,104

5,476
5,954
6,557
6,233
6,494
6,414
6,162
7,162
7,976
8,453
9,536

132,775
132,594
133,540
134,594
133,806
137,189
136,808
142,327
141,102
143,609
145,121

27,019
28,185
28.214
29,192
26,725
30,412
30,233
30,582
30,314
31,781
33,185

3,050
5,027

847
1,477

2,202
3,550

11,215
11,437

6,023
5,641

16,861

For notes see p. A-74.




19,999
20,109
19,880
20,683
20,521
23,969
24,112
24,435
24,477
25,824
27,051

8,351
10,330

11,432
17,683

M

1,129
980
1,123
1,223

.1972—Dec.
.1973—Dec.

Location and currency form

IN ALL FOREIGN COUNTRIES
. . . Total, all currencies

. Payable in U.S. dollars

IN UNITED KINGDOM
. . .Total, all currencies

.Payable in U.S. dollars

IN BAHAMAS A N D CAYMANS i
. . .Total, all currencies

A 72

INTL. CAPITAL TRANSACTIONS OF THE U.S. • FEBRUARY 1976
21. SHORT-TERM LIQUID CLAIMS ON FOREIGNERS
REPORTED BY NONBANKING CONCERNS

20. 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 iri custody
End of
period

End of
period

Deposits

325
251
418

1972
1973
1974

U.S. Treas.
securities 1

Earmarked
gold

50,934
52,070
55,600

215,530
2
17,068
16,838

1975—Jan....
Feb...
Mar...
Apr....
May. .
June...
July...
Aug...
Sept...
Oct....
Nov...
Dec.. .

391
409
402
270
310
373
369
342
324
297
346
352

58,001
60,864
60,729
60,618
61,539
61,406
60,999
60,120
58,420
60,307
60,512
60,019

16,837
16,818
16,818
16,818
16,818
16,803
16,803
16,803
16,795
16,751
16,745
16,745

1976—Jan....

294

61,796

16,669

Total
Deposits

Deposits

1,078

127

234

68

580

443

1,446
1,910
2,588

169
55
37

307
340
427

42
68
109

702
911
1,118

485
536
770

1974—Nov
Dec

2,998
3,311

2,380
2,582

15
56

326
412

277
261

1,285
1,350

941
951

1975—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct.?
Nov.3*

3,275
3,376
3,283
3,368
3,188
3,138
3,221
3,438
3,602
3,411
3,543

2,521
2,515
2,434
2,458
2,220
2,241
2,278
2,334
2,522
2,581
2,571

50
52
67
48
47
95
118
129
125
179
266

359
403
395
314
393
369
420
453
456
410
442

345
406
388
550
527
433
405
522
499
241
264

1,145
1,088
1,064
1,065
908
974
904
1,017
1,104
1 ,178
1,098

Claims

Liabilities

Payable in foreign
currencies

1972—Mar
June
Sept
—_ i

Payable
in
foreign
currencies

Total

Payable
in
dollars

Deposits with
banks abroad
in reporter's
name

Other

2,844
2,925
2,933
3,119
3,397

2,407
2,452
2,435
2,635
2,928

437
472
498
484
469

5,173
5,326
5,487
5,721
6,304

4,557
4,685
4,833
5,074
5,645

317
374
426
410
393

300
268
228
237
267

1973—Mar
June
Sept
Dec

3,308
3,283
3,567
3,964

2,836
2,760
2,919
3,257

472
523
648
707

7,019
7,292
7,627
8,463

6,150
6,451
6,701
7,553

456
493
528
485

414
349
399
425

1974—Mar
June
Sept
Dec

4,373
5,101
5,567
5,769

3,564
4,158
4,634
4,855

809
943
933
914

10,458
11,022
10,681
11,233

9,525
10,104
9,720
10,190

400
420
419
455

533
498
543
587

1975—Mar
June r
Sept.p

5,734
5,746
5,804

4,868
4,922
4,967

866
824
837

10,878
10,827
11,845

9,744
9,546
10,505

441
466
507

692
815
832

/
\

1
D a t a on the 2 lines shown for this date differ
because of changes in reporting coverage. Figures on
the first line are comparable with those shown for the




1,117
1,136
1,134
1,279
1,240
1,128
1,109
1,309
1,252
1 ,127
1,291

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
Table 22.

(Amount outstanding; in millions of dollars)

Total

Canada

1,507
2

22. SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY
NONBANKING CONCERNS, BY TYPE

Payable
in
dollars

United
Kingdom

1 Negotiable and other readily transferable foreign obligations payable on demand
or having a contractual maturity of not more than 1 year f r o m the date on which the
obligation was incurred by the foreigner.
2
D a t a on the 2 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.—Excludes deposits and U.S. Treasury securities
held for international and regional organizations. Earmarked gold is gold held for foreign and international
accounts and is not included in the gold stock of the
United States.

End of period

Shortterm
investments 1

/1,965
\2,374
3,162

1972
1973

1
Marketable U.S. Treasury bills, certificates of indebtedness, notes, and bonds and nonmarketable U.S.
Treasury securities payable in dollars and in foreign
currencies.
2
The value of earmarked gold increased because of the
changes in par value of the U.S. dollar in May 1972, and
in Oct. 1973.

Shortterm
investments 1

preceding date; figures on the second line are comparable with those shown for the following date.

F E B R U A R Y 1976 • INTL. C A P I T A L T R A N S A C T I O N S OF T H E U.S.

A 73

23. 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
1974

Area and country

Dec.

Sept.
Europe:
Belgium-Luxembourg
Denmark
France
Greece
Italy
Netherlands
Norway
Portugal
Spain
Sweden
Switzerland
Turkey
United Kingdom
Yugoslavia
Other Western Europe
Eastern Europe
Total
Canada
Latin America:
Argentina
Bahamas
Brazil
Chile
Colombia
Cuba
Mexico
Panama
Peru
Uruguay
Venezuela
Other L.A. republics
Neth. Antilles and Surinam
Other Latin America
Total
Asia :
China, People's Republic of (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

1975
June

Mar.

Sept.*

Sept.

1975
Mar.

Dec.

June

Sept.*

18
501
22
12
157
240
28
129
120
10
20
46
40
106
20
1,408
17
7
80

20
516
24
16
202
313
39
125
117
9
19
56
38
140
8
1,222
40
5
70

26
474
23
16
151
350
25
109
121
9
13
54
32
157
12
1,110
52
5
54

22
338
14
12
138
291
27
110
141
8
13
59
30
168
14
1,006
45
4
49

18
332
8
14
149
275
21
156
153
13
13
74
47
167
22
895
60
5
38

15
114
25
91
461
326
69
413
144
32
69
414
97
154
24
1,763
23
20
90

26
128
42
120
430
339
65
397
148
36
81
369
89
136
26
1,853
22
21
142

15
137
35
77
328
276
59
309
157
35
42
359
66
86
33
1,642
33
23
114

13
132
22
87
287
346
69
300
135
41
32
324
74
113
28
1,542
32
16
153

2,981

2,979

2,794

2,487

2,461

4,344

4,469

3,825

3,748

4,225

296

298

258

274

286

1,571

1,610

1,860

1,950

2,104

28
325
160
14
13

36
281
118
22
14

31
299
121
23
11

30
267
127
15
11

28
190
116
13
14

69
594
461
106
51
1
297
132
44
5
190
193
20
147

76
615
376
69
51
1
325
110
46
15
180
195
16
196

65
631
347
57
47
305
128
50
5
166
179
13
159

53
685
384
41
46
1
299
103
48
5
151
163
13
192

15
131
24
114
311
319
56
380
139
48
39
315
100
220
31
1,769
24
19
170

64
21
15
2
53
63
8
50

63
28
14
2
49
83
24
81

72
18
18
3
39
65
48
114

74
27
16
3
44
67
54
125

84
19
19
2
54
75
72
115

59
518
419
124
49
1
287
114
40
6
190
182
14
169

818

816

862

859

801

2,169

2,308

2,271

2,152

2,183

23
72
18
10
38
40
352
66
28
10
431

17
93
19
7
60
50
348
75
25
10
536

8
102
19
10
63
62
327
47
19
9
645

6
100
30
21
87
62
273
43
17
6
845

2
101
29
21
105
45
278
63
14
8
908

8
127
64
37
81
53
1,158
123
108
23
311

17
137
63
37
85
44
1,218
201
93
24
387

19
121
83
32
110
46
1,307
165
82
30
398

32
125
85
39
142
60
1,226
178
91
25
470

45
355
84
48
129
63
1,234
207
91
21
535

1,087

1,239

1,312

1,491

1,575

2,093

2,307

2,392

2,472

2,814

6
35
17
114

3
43
18
129

5
54
17
142

34
65
9
215

34
79
9
220

16
90
13
205

15
101
24
234

24
104
18
242

15
104
17
227

16
79
22
273

172

193

217

323

341

325

374

387

364

391

57
32

56
30

60
31

37
18

52
21

134
44

116
49

97
45

101
39

80
50

178
j

165

141

139

128

*

1

1

10,681

11,233

10,878

10,827

*

*

*

*

*

89

86

91

55

73

125

158

201

257

267

5,567

5,769

5,734

5,746

5,804

NOTE.—Reported by exporters, importers, and industrial and commercial concerns and other nonbanking institutions in the United States.




1974

*

11,845

D a t a exclude claims held through U.S. banks, and intercompany accounts
between U.S. companies and their foreign affiliates.

A 74

INTL. C A P I T A L T R A N S A C T I O N S OF T H E U.S. • F E B R U A R Y 1976

24.LONG-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS
(Amounts outstanding; in millions of dollars)
Claims
Country or area

Total
liabilities

End of period

Total
United
Kingdom
1971—Sept
Dec

Other
Europe

Canada

Brazil

Mexico

Other
Latin
America

Japan

Other
Asia

Africa

All
other

f
1

2,939
3,159
3,138

3,019
3,118
3,068

135
128
128

672
705
704

765
761
717

178
174
174

60
60
60

597
652
653

133
141
136

319
327
325

85
86
86

75
85
84

J
\

3,300
3,448
3,540
3,600

3,206
3,187
3,312
3,284

108
128
163
191

712
695
715
745

748
757
775
759

188
177
184
187

61
63
60
64

671
662
658
703

161
132
156
133

377
390
406
378

86
89
87
86

93
96
109
38

1973—Mar
June
Sept
Dec

3,777
3,779
3,993
3,878

3,421
3,472
3,632
3,693

156
180
216
290

802
805
822
761

775
782
800
854

165
146
147
145

63
65
73
79

796
825
832
824

123
124
134
122

393
390
449
450

105
108
108
115

45
48
51
53

1974—Mar
June
Sept
Dec

3,827
3,524
3,356
3,707

3,814
3,809
3,932
4,114

369
363
370
364

737
696
702
640

888
907
943
977

194
184
181
187

81
138
145
143

800
742
776
1 ,018

118
117
114
107

448
477
523
505

119
122
118
121

61
61
59
54

4,128
4,063
4,206

340
299
362

182
l 82
177

160
154
222

961
939
895

102
98
95

527
536
586

130
138
146

54
68
67

1

1972—June
Sept
Dec 1

1975—Mar
June
Sept

r

3,954
4,068
4,014

r

r

652
632
618

r

1,020
l ,018
1 ,037

1
Data on the 2 lines shown for this data differ because of changes
in reporting coverage. Figures on the first line are comparable with those

r

shown for the preceding date; figures on the second line are comparable
with those shown for the following date.

25. OPEN MARKET RATES
(Per cent per annum)

Canada

United Kingdom

France

Germany,
Fed. Rep. of

Netherlands

Switzerland

Month
Treasury
Day-tobills,
day
3 months 1 money 2

Prime
Treasury
bank
bills,
bills,
3 months
3 months

Day-today
money

Clearing
banks'
deposit
rates

Day-today
money 3

Treasury
bills,
60-904
days

Day-today
money 5

Treasury
bills,
3 months

Day-today
money

Private
discount
rate

1973
1974
1975

5.43
7.63
7.36

5.27
7.69
7.34

10.45
12.99
10.57

9.40
11.36
10.16

8.27
9.85
10.13

7.96
9.48
7.23

8.92
12.87
7.89

6.40
6.06
3.51

10.18
8.76
4.23

4.07
6.90
4.41

4.94
8.21
3.65

5.09
6.67
6.25

1975—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec

6.65
6.34
6.29
6.59
6.89
6.96
7.22
7.72
8.37
8.28
8.44
8.59

6.82
6.88
6.73
6.68
6.88
6.88
7.17
7.42
7.74
7.92
8.29
8.66

11.93
11 .34
10.11
9.41
10.00
9.72
9.86
10.59
10.43
11.38
11.21
10.88

10.59
9.88
9.49
9.26
9.47
9.43
9.71
10.43
10.36
11.42
11.10
10.82

8.40
7.72
7.53
7.50
7.81
7.00
7.34
8.59
9.40
9.88
11.34
9.61

9.30
9.50
8.22
7.09
6.25
6.25
6.25
6.43
6.50
6.93
7.00
7.00

11.20
9.91
9.06
8.34
7.56
7.31
7.25
7.16
6.91
6.53
6.74
6.42

5.13
3.88
3.38
3.38
3.38
3.38
3.38
3.38
3.38
3.13
3.13
3.13

7.54
4.04
4.87
4.62
5.32
4.91
3.98
1.93
4.25
3.27
3.36
3.84

6.60
6.56
5.94
5.16
3.64
2.76
2.98
2.89
2.60
4.22
4.67
4.88

6.18
7.33
5.87
4.13
1 .98
1 .37
1 .99
1.51
.94
4.35
4.19
4.34

7.00
7.00
7.00
6.50
6.50
6.50
6.50
6.00
5.50
5.50
5.50
5.50

1976—Jan

8.59

8.75

3.58

4.52

3.76

5.00

9.87

1 Based on average yield of weekly tenders during month.
2 Based on weekly averages of daily closing rates.
3 Rate shown is on private securities.
4
Rate in effect at end of month.

6.38

5 Monthly averages based on daily quotations.
NOTE.—For description and back data, see "International Finance,"
Section 15 of Supplement to Banking and Monetary Statistics, 1962.

N O T E S T O TABLES 19a A N D 19b O N PAGES A-70 A N D A-71, RESPECTIVELY:
1
Cayman Islands included beginning Aug. 1973.
2 Total assets and total liabilities payable in U.S. dollars amounted to
$41,250 million and $41,550 million, respectively, on Nov. 30, 1975.

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.

F E B R U A R Y 1976 • C E N T R A L B A N K A N D E X C H A N G E R A T E S

A 75

26. CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS
(Per cent per annum)
R a t e as of January 31, 1976

Rate as of January 31, 1976
Country

Country
Per
cent
Argentina
Austria
Belgium
Brazil
Canada
Denmark
France
Germany, Fed. Rep. of

Per
cent

Month
effective

Month
effective

18.0
5.0
6.0
18.0

Feb.
Jan.
Aug.
Feb.

1972
1976
1975
1972

Italy
Japan
Mexico
Netherlands....

6.0
6.5
4.5
4.5

Sept.
Oct.
June
Sept.

1975
1975
1942
1975

9.0
7.5
8.0
3.5

Sept.
Aug.
Sept.
Sept.

1975
1975
1975
1975

Norway
Sweden
Switzerland
United Kingdom
Venezuela

5.0
5.5
2.5
10.0
5.0

Oct.
Jan.
Jan.
Jan.
Oct.

1975
1976
1976
1976
1970

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;

Japan—Penalty rates (exceeding the basic rate shown) for borrowings
from the central bank in excess of an individual bank's q u o t a ;
United Kingdom—The
Bank's minimum lending rate, which is the
average rate of discount for Treasury bills established at the most recent
tender plus one-half per cent rounded to the nearest one-quarter per cent
above;
Venezuela—2 per cent for rediscounts of certain agricultural paper, 4Vi
per cent for advances against government bonds, and 5 l /i per cent for
rediscounts of certain industrial paper and on advances against promissory
notes or securities of first-class Venezuelan companies.

27. FOREIGN EXCHANGE RATES
(In cents per unit of foreign currency)
Australia
(dollar)

Austria
(schilling)

Belgium
(franc)

1972,
1973,
1974
1975

119.23
141.94
143.89
130.77

4.3228
5.1649
5.3564
5.7467

2.2716
2.5761
2.5713
2.7253

100.937
99.977
102.257
98.297

14.384
16.603
16.442
17.437

19.825
22.536
20.805
23.354

31.364
37.758
38.723
40.729

13.246
12.071
12.460
11.926

250.08
245.10
234.03
222.16

.17132
.17192
.15372
.15328

.32995
.36915
.34302
.33705

1975-—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec

132.95
134.80
135.85
134.16
134.04
133.55
130.95
128.15
128.87
126.26
126.26
125.38

5.9477
6.0400
6.0648
5.9355
6.0033
6.0338
5.7223
5.4991
5.4029
5.4586
5.4535
5.3986

2.8190
2.8753
2.9083
2.8433
2.8631
2.8603
2.7123
2.6129
2.5485
2.5662
2.5618
2.5311

100.526
99.957
99.954
98.913
97.222
97.426
97.004
96.581
97.437
97.557
98.631
98.627

17.816
18.064
18.397
18.119
18.299
18.392
17.477
16.783
16.445
16.601
16.564
16.253

22.893
23.390
23.804
23.806
24.655
24.971
23.659
22.848
22.367
22.694
22.684
22.428

42.292
42.981
43.120
42.092
42.546
42.726
40.469
38.857
38.191
38.737
38.619
38.144

12.300
12.550
12.900
12.686
12.391
12.210
11 .777
11.379
11.281
11.244
11.238
11.134

236.23
239.58
241.80
237.07
232.05
228.03
218.45
211.43
208.34
205.68
204.84
202.21

.15504
. 15678
.15842
.15767
.15937
.15982
.15387
.14963
. 14740
.14745
.14721
.14645

.33370
.34294
.34731
.34224
.34314
.34077
.33741
.33560
.33345
.33076
.33053
.32715

1976-—Jan

125.65

5.4300

2.5443

99.359

16.231

22.339

38.425

11.178

202.86

.14245

.32826

Netherlands
(guilder)

New
Zealand
(dollar)

Norway
(krone)

Portugal
(escudo)

Switzerland
(franc)

United
Kingdom
(pound)

Period

Period

Malaysia
(dollar)

Mexico
(peso)

Canada
(dollar)

Denmark
(krone)

France
(franc)

Germany
(Deutsche
mark)

South
Africa
(rand)

India
(rupee)

Spain
(peseta)

Ireland
(pound)

Sweden
(krona)

Italy
(lira)

Japan
(yen)

1972.
1973
1974
1975,

35.610
40.988
41.682
41.753

8.0000
8.0000
8.0000
8.0000

31.153
35.977
37.267
39.632

119.35
136.04
140.02
121.16

15.180
17.406
18.119
19.180

3.7023
4.1080
3.9506
3.9286

129.43
143.88
146.98
136.47

1.5559
1.7178
1.7337
1.7424

21.022
22.970
22.563
24.141

26.193
31.700
33.688
38.743

250.08
245.10
234.03
222.16

1975-—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec

43.359
44.136
44.582
43.797
44.278
43.856
41.442
39.779
38.219
38.931
38.929
38.670

8.0000
8.0000
8.0000
8.0000
8.0000
8.0000
8.0000
8.0000
8.0000
8.0000
8.0000
8.0000

40.715
41 .582
42.124
41.291
41 .581
41.502
39.154
37.887
37.229
37.658
37.638
37.234

131.72
133.30
134.31
132.66
131.66
130.86
127.73
111.79
105.50
104.74
104.75
103.77

19.579
19.977
20.357
20.049
20.198
20.393
19.241
18.304
17.834
18.089
18.116
17.988

4.0855
4.1139
4.1276
4.0596
4.0933
4.1124
3.9227
3.7700
3.7048
3.7359
3.7318
3.6836

145.05
147.16
148.70
147.01
146.69
146.31
139.75
139.72
131.40
114.84
114.69
114.75

1.7800
1.7784
1.7907
1.7756
1.7871
1.7922
1.7446
1.7140
1.6914
1.6883
1.6869
1.6765

24.750
25.149
25.481
25.171
25.422
25.532
24.213
23.174
22.501
22.769
22.788
22.685

39.571
40.450
40.273
39.080
39.851
40.086
38.272
37.332
36.905
37.555
37.683
37.970

236.23
239.58
241.80
237.07
232.05
228.03
218.45
211.43
208.35
205.68
204.84
202.21

1976-—Jan

38.696

8.0000

37.429

104.06

17.992

3.6562

114.80

1.6751

22.831

38.418

202.86

NOTE.—Averages of certified noon buying rates in New York for cable
transfers. F o r description of rates and back data, see "International Finance," Section 15 of Supplement to Banking and Monetary Statistics, 1962.




<1
ON

Board of Governors of the Federal Reserve System
ARTHUR F . BURNS,

Chairman

STEPHEN S . GARDNER,

HENRY C . WALLICH

ROBERT C . HOLLAND

OFFICE OF S T A F F DIRECTOR FOR
M O N E T A R Y POLICY

OFFICE O F B O A R D M E M B E R S

OFFICE OF STAFF DIRECTOR
FOR M A N A G E M E N T

THOMAS J. O'CONNELL, Counsel

Staff

Director
GORDON B . GRIMWOOD, Assistant

and Program
Contingency

of

Company

STANLEY J. SIGEL, Assistant
MURRAY ALTMANN, Special

Assistant

to the

Director

to the Board
Assistant
to the

Board
NORM AND R . V . BERNARD, Special

for

DONALD J. WINN, Special

Assistant

the

Assistant

Board

to the

Board
Director

DIVISION OF RESEARCH A N D STATISTICS

for

Analysis

LEGAL DIVISION

JOHN D . HAWKE, JR., General
BALDWIN B . TUTTLE, Deputy
ROBERT E . MANNION, Assistant

JAMES R . KUDLINSKI,
Director
WALTER A . ALTHAUSEN, Assistant
Director
BRIAN M . CAREY, Assistant
Director

CHARLES R . MCNEILL, Assistant

HARRY A. GUINTER, Assistant

Director

Counsel
General

Counsel

DIVISION OF FEDERAL RESERVE B A N K
OPERATIONS




Director

ARTHUR L. BROIDA, Deputy Staff

Board
Director

Structure

Bank Holding

STEPHEN H . AXILROD, Staff

ROBERT SOLOMON, Adviser
to the
Board
JOSEPH R. COYNE, Assistant
to the
Board
KENNETH A . GUENTHER, Assistant
to the Board
JAY PAUL BRENNEMAN, Special Assistant
to the
FRANK O'BRIEN, JR., Special

Equal

Opportunity

PETER E . BARN A, Program

the

Board

BRENTON C . LEAVITT, Program

Banking

Director

Director for
Planning

WILLIAM W . LAYTON, Director

Employment

to

Chairman

Director

ROBERT J. LAWRENCE, Deputy

J . CHARLES PARTEE

PHILIP C . JACKSON, JR.

PHILIP E . COLDWELL

JOHN M. DENKLER, Staff

Vice Chairman

General

Counsel
ALLEN L. RAIKEN, Assistant General Counsel
GARY M. WELSH, Assistant General Counsel
General

Counsel

to

the

LYLE E . GRAMLEY,
Director
JAMES L. KICHLINE, Associate
Director
JOSEPH S. ZEISEL, Associate
Director
EDWARD C . ETTIN,
Adviser
JOHN H . KALCHBRENNER,
Adviser
PETER M . KEIR,
Adviser
JAMES B . ECKERT, Associate
Adviser
JOHN J. MINGO, Associate
Adviser
ELEANOR J. STOCKWELL, Associate
Adviser
HELMUT F. WENDEL, Associate
Adviser
JAMES R. WETZEL, Associate
Adviser
JARED J. ENZLER, Assistant
Adviser
ROBERT M . FISHER, Assistant
Adviser
J. CORTLAND G . PERET, Assistant
Adviser
STEPHEN P. TAYLOR, Assistant
Adviser
LEVON H . GARABEDIAN, Assistant
Director

to

OFFICE OF S A V E R A N D C O N S U M E R AFFAIRS

DIVISION OF FEDERAL RESERVE BANK
EXAMINATIONS A N D BUDGETS

FREDERIC SOLOMON, Assistant
WILLIAM H . W A L L A C E ,

Board and

Director

CLYDE H- FARNSWORTH, JR., Assistant
THOMAS E . MEAD, Assistant
Director

P. D. RING, Assistant

Director

DIVISION OF D A T A

PROCESSING

Director

JANET O . HART, Deputy
Director
JERAULD C . KLUCKMAN, Assistant
Director
ROBERT S . PLOTKIN, Assistant
Director

DIVISION OF PERSONNEL

BRENTON C . LEAVITT,

Director

CHARLES W . WOOD, Assistant

Director

OFFICE OF THE CONTROLLER
JOHN KAKALEC,

Controller

TYLER E . WILLIAMS, JR., Assistant

Controller

Director

ROBERT F . GEMMILL,
Adviser
R E E D J. IRVINE,
Adviser
IHELEN B . JUNZ,
Adviser
SAMUEL PIZER,
Adviser

Adviser
Adviser
Adviser

Secretary

* JOSEPH P. GARBARINI, Assistant
GRIFFITH L. GARWOOD, Assistant
DIVISION OF B A N K I N G
A N D REGULATION

FINANCE

Director

GEORGE B . HENRY, Associate
CHARLES J. SIEGMAN, Associate
EDWIN M . TRUMAN, Associate

SECRETARY

THEODORE E . ALLISON,

TRALPH C . BRYANT,

JOHN E . REYNOLDS, Acting

Director

BRUCE M . BEARDSLEY, Associate
Director
GLENN L . CUMMINS, Assistant
Director
WARREN N . MINAMI, Assistant
Director
ROBERT J. ZEMEL, Assistant
Director

KEITH D . ENGSTROM,

the

Director

OFFICE OF THE
CHARLES L . H A M P T O N ,

to

DIVISION OF INTERNATIONAL

Secretary
Secretary

SUPERVISION

f O n leave of absence.

Director

FREDERICK R . DAHL, Assistant
Director
JACK M . EGERTSON, Assistant
Director
JOHN N . LYON, Assistant
Director
JOHN T . MCCLINTOCK, Assistant
Director
JOHN E . RYAN, Assistant
Director
THOMAS A . SIDMAN, Assistant
Director
WILLIAM W . WILES, Assistant
Director

DIVISION OF ADMINISTRATIVE SERVICES
WALTER W . KREIMANN,

Director

*On loan from the Federal Reserve Bank of St. Louis.

DONALD E . ANDERSON, Assistant
Director
JOHN D . SMITH, Assistant
Director




>
-J

A 78

Federal Open Market Committee
Chairman

ARTHUR F. BURNS,

PAUL A .

Vice

VOLCKER,

Chairman

STEPHEN S. GARDNER

ROBERT P .

PHILIP E .

COLDWELL

ROBERT C . HOLLAND

J. CHARLES PARTEE

DAVID P .

EASTBURN

PHILIP C . JACKSON, JR.

HENRY C .

ERNEST T .

BAUGHMAN

BRUCE K .
ARTHUR L . BROIDA,

Secretary

NORMAND R . V . BERNARD,

Assistant

(International

Economist
Finance)

EDWARD G . B O E H N E , Associate

Economist

*RALPH C . B R Y A N T , Associate

Secretary
THOMAS J. O ' C O N N E L L , General

Counsel

EDWARD G . G U Y , Deputy

General

STEPHEN H . AXILROD,

Economist

(Domestic

Counsel

(Domestic

Economist

RICHARD G . DAVIS, Associate

Economist

RALPH T . GREEN, Associate

Economist

JOHN KAREKEN, Associate

Economist

JOHN E . REYNOLDS, Associate

Finance)

LYLE E . GRAMLEY,

WALLICH

MACLAURY
ROBERT SOLOMON,

Secretary

MURRAY A L T M A N N , Deputy

MAYO

Economist

KARL O . SCHELD, Associate

Economist

Economist

Business)
A L A N R . HOLMES, Manager,

System

PETER D . STERNLIGHT, Deputy

Manager

SCOTT E . PARDEE, Deputy

Manager

Open
for
for

Market
Domestic

Foreign

Account
Operations
Operations

*On leave of absence.

Federal Advisory Council
ELLMORE C . PATTERSON, SECOND FEDERAL RESERVE DISTRICT,

President

WILLIAM F . MURRAY, SEVENTH FEDERAL RESERVE DISTRICT, Vice
RICHARD D . HILL, FIRST FEDERAL

RESERVE DISTRICT

RESERVE DISTRICT
JAMES F . BODINE, THIRD FEDERAL

GEORGE H . D I X O N , NINTH FEDERAL
RESERVE DISTRICT

RESERVE DISTRICT
M . BROCK W E I R , FOURTH FEDERAL

E U G E N E H . ADAMS, TENTH FEDERAL
RESERVE DISTRICT

RESERVE DISTRICT
JOHN H . LUMPKIN, FIFTH FEDERAL

B E N F . LOVE, ELEVENTH FEDERAL
RESERVE DISTRICT

RESERVE DISTRICT
LAWRENCE A . MERRIGAN, SIXTH

GILBERT F . BRADLEY, TWELFTH
FEDERAL RESERVE DISTRICT

FEDERAL RESERVE DISTRICT




President

EDWIN S . JONES, EIGHTH FEDERAL

HERBERT V . PROCHNOW,
WILLIAM J. KORSVIK, Associate

Secretary
Secretary

A 79

Federal Reserve Banks, Branches, and Offices
FEDERAL RESERVE BANK,
branch, or facility
Zip

Chairman
Deputy Chairman

President
First Vice President

BOSTON*

02106

Louis W. Cabot
Robert M. Solow

Frank E. Morris
James A. Mcintosh

NEW YORK*

10045

Frank R. Milliken
Robert H. Knight
Rupert Warren

Paul A. Volcker
Richard A. Debs

Buffalo

14240

Ronald B. Gray

PHILADELPHIA

19105

John R. Coleman
John W. Eckman

David P. Eastburn
Mark H. Willes

CLEVELAND*

44101

Willis J. Winn
Walter H. MacDonald

Cincinnati
Pittsburgh

45201
15230

Horace A. Shepard
Robert E. Kirby
Lawrence H. Rogers, II
G. Jackson Tankersley

RICHMOND*

23261

E. Angus Powell
E. Craig Wall, Sr.
James G. Harlow
Charles W. DeBell

Robert P. Black
George C. Rankin

Baltimore
21203
Charlotte
28230
Culpeper Communications
Center
22701
ATLANTA
Birmingham
Jacksonville
Miami
Nashville
New Orleans

30303
35202
32203
33152
37203
70161

CHICAGO*

60690

Detroit

48231

ST. LOUIS

63166

Little Rock
Louisville
Memphis

72203
40201
38101

MINNEAPOLIS

55480

Helena
KANSAS CITY
Denver
Oklahoma City .
Omaha
DALLAS
El Paso
Houston
San Antonio

59601
64198
80217
73125
68102
75222
79999
77001
78295

SAN FRANCISCO .. ..94120
Los Angeles
Portland
Salt Lake City
Seattle

90051
97208
84110
98124

Vice President
in charge of branch

Robert E. Showalter
Robert D. Duggan

Jimmie R. Monhollon
Stuart P. Fishburne
Albert D. Tinkelenberg

H. G. Pattillo
Clifford M. Kirtland, Jr.
Harold B. Blach, Jr.
Egbert R. Beall
Castle W. Jordan
James W. Long
Edwin J. Caplan

Monroe Kimbrel
Kyle K. Fossum

Peter B. Clark
Robert H. Strotz
Tom Killefer

Robert P. Mayo
Daniel M. Doyle

Edward J. Schnuck
Vacancy
Ronald W. Bailey
William H. Stroube
Robert E. Healy

Darryl R. Francis
Eugene A. Leonard

James P. McFarland
Stephen F. Keating
James C. Garlington

Bruce K. MacLaury
Clement A. Van Nice

Robert T. Person
Harold W. Andersen
Maurice B. Mitchell
James G. Harlow, Jr.
Durward B. Varner

George H. Clay
John T. Boy sen

John Lawrence
Charles T. Beaird
J. Luther Davis
Thomas J. Barlow
Margaret Scarbrough Wilson

Ernest T. Baughman
T. W. Plant

O. Meredith Wilson
Joseph F. Alibrandi
Joseph R. Vaughan
Loran L. Stewart
Sam Bennion
Lloyd E. Cooney

John J. Balles
John B. Williams

Hiram J. Honea
Edward C. Rainey
W. M. Davis
Jeffrey J. Wells
George C. Guynn

William C. Conrad

John F. Breen
Donald L. Henry
L. Terry Britt

John D. Johnson

J. David Hamilton
William G. Evans
Robert D. Hamilton

Fredric W. Reed
James L. Cauthen
Carl H. Moore

Richard C. Dunn
Angelo S. Carella
A. Grant Holman
James J. Curran

* Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; Cranford,
New Jersey 07016; Jericho, New York 11753; Columbus, Ohio 43216; Columbia, South Carolina 29210; Des Moines, Iowa
50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202.




A 80

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
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O P E N M A R K E T POLICIES A N D O P E R A T I N G
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Federal Reserve Board Publications

IMPROVED F U N D AVAILABILITY AT R U R A L B A N K S ( R e -

port and study papers of the Committee on Rural
Banking Problems). June 1975. 133 pp. $1.00; 10
or more to one address, $.85 each.
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)
HOUSEHOLD-SECTOR ECONOMIC ACCOUNTS,

by David

F. Seiders. Jan. 1975. 84 pp.
THE

PERFORMANCE OF INDIVIDUAL B A N K H O L D I N G
C O M P A N I E S , by Arthur G. Fraas. Aug. 1975.

27 pp.
PRINTED IN FULL IN THE BULLETIN

Staff Economic Studies shown in list below.
REPRINTS
(Except for Staff Papers, Staff Economic Studies, and
some leading articles, most of the articles reprinted do
not exceed 12 pages.)
SEASONAL FACTORS A F F E C T I N G B A N K RESERVES. 2 / 5 8 .
M E A S U R E S OF M E M B E R B A N K RESERVES. 7 / 6 3 .
RESEARCH ON B A N K I N G S T R U C T U R E AND PERFORMA N C E , Staff Economic Study by Tynan Smith.

4/66.
A

R E C E N T ACTIVITIES OF F O R E I G N B R A N C H E S OF U . S .
BANKS. 1 0 / 7 2 .
REVISION OF C O N S U M E R C R E D I T STATISTICS. 1 0 / 7 2 .
O N E - B A N K HOLDING COMPANIES BEFORE THE 1 9 7 0
AMENDMENTS. 1 2 / 7 2 .
Y I E L D S ON R E C E N T L Y O F F E R E D C O R P O R A T E B O N D S .
5/73.
CAPACITY U T I L I Z A T I O N IN M A J O R M A T E R I A L S I N D U S TRIES. 8 / 7 3 .
C R E D I T - C A R D AND C H E C K - C R E D I T P L A N S AT C O M M E R CIAL B A N K S . 9 / 7 3 .
R A T E S ON C O N S U M E R I N S T A L M E N T L O A N S . 9 / 7 3 .
N E W SERIES FOR L A R G E M A N U F A C T U R I N G C O R P O R A TIONS. 1 0 / 7 3 .
M O N E Y S U P P L Y IN T H E C O N D U C T OF M O N E T A R Y
POLICY.
11/73.
U . S . E N E R G Y S U P P L I E S AND U S E S , Staff Economic
Study by Clayton Gehman. 1 2 / 7 3 .
CAPACITY U T I L I Z A T I O N FOR M A J O R M A T E R I A L S : R E VISED M E A S U R E S . 4 / 7 4 .
N U M E R I C A L SPECIFICATIONS OF F I N A N C I A L VARIABLES
AND T H E I R R O L E IN M O N E T A R Y P O L I C Y . 5 / 7 4 .
INFLATION AND S T A G N A T I O N IN M A J O R F O R E I G N
INDUSTRIAL C O U N T R I E S . 1 0 / 7 4 .
REVISION OF T H E M O N E Y STOCK M E A S U R E S AND M E M BER B A N K D E P O S I T S . 1 2 / 7 4 .
U . S . I N T E R N A T I O N A L TRANSACTIONS IN 1 9 7 4 . 4 / 7 5 .
M O N E T A R Y POLICY IN A C H A N G I N G F I N A N C I A L E N V I R O N M E N T : O P E N M A R K E T O P E R A T I O N S IN 1 9 7 4 .
4/75.
T H E S T R U C T U R E OF M A R G I N C R E D I T . 4 / 7 5 .
C H A N G E S IN B A N K L E N D I N G PRACTICES, 1 9 7 4 . 4 / 7 5 .
N E W STATISTICAL SERIES ON L O A N C O M M I T M E N T S AT
S E L E C T E D L A R G E COMMERCIAL B A N K S . 4 / 7 5 .

CAPACITY,

R E C E N T T R E N D S IN F E D E R A L B U D G E T P O L I C Y . 7 / 7 5 .
B A N K I N G AND M O N E T A R Y STATISTICS, 1 9 7 4 . Selected

Staff Economic Study by Frank de Leeuw with
Frank E. Hopkins and Michael D. Sherman. 11/66.

series of banking and monetary statistics for 1974
only. 2/75, 3/75, 4/75 and 7/75.

REVISED

U.S.

A 81

INDEX

OF

INTERNATIONAL

MANUFACTURING

TRANSACTIONS:

TRENDS

IN

1960-67. 4/68.
M E A S U R E S OF SECURITY C R E D I T . 1 2 / 7 0 .
M O N E T A R Y A G G R E G A T E S AND M O N E Y M A R K E T C O N DITIONS IN O P E N M A R K E T P O L I C Y . 2 / 7 1 .
R E V I S E D M E A S U R E S OF M A N U F A C T U R I N G CAPACITY
U T I L I Z A T I O N , lp/71.
REVISION OF B A N K C R E D I T SERIES. 1 2 / 7 1 .
ASSETS AND LIABILITIES OF F O R E I G N B R A N C H E S OF
U . S . BANKS. 2 / 7 2 .
B A N K D E B I T S , D E P O S I T S , AND D E P O S I T T U R N O V E R —
R E V I S E D SERIES. 7 / 7 2 .
Y I E L D S ON N E W L Y ISSUED CORPORATE B O N D S . 9 / 7 2 .




C H A N G E S IN T I M E AND SAVINGS DEPOSITS AT C O M MERCIAL B A N K S . January-April 1 9 7 5 . 1 0 / 7 5 .
R E C E N T D E V E L O P M E N T S IN I N T E R N A T I O N A L F I N A N C I A L
MARKETS. 1 0 / 7 5 .
M I N N I E :
A
SMALL
VERSION
OF
THE
M I T — P E N N — S S R C E C O N O M E T R I C M O D E L , Staff

AN

Economic Study by Douglas Battenberg, Jared J.
Enzler and Arthur M . Havenner. 1 1 / 7 5 .
ASSESSMENT OF B A N K H O L D I N G C O M P A N I E S , Staff
Economic Study by Robert J. Lawrence and
Samuel H. Talley. 1/76.

INDUSTRIAL E L E C T R I C P O W E R U S E . 1 / 7 6 .
REVISION OF M O N E Y S T O C K M E A S U R E S . 2 / 7 6 .

A 82

Federal Reserve Bulletin • February 1976

Index to Statistical Tables
References are to pages A-2 through A-75 although the prefix "A" is omitted in this index
(For list of tables published periodically, but not monthly, see inside back cover)
ACCEPTANCES, bankers, 9, 25, 27
Agricultural loans of commercial banks, 16, 18
Assets and liabilities (See also Foreigners):
Banks, by classes, 14, 16, 17, 18, 30
Federal Reserve Banks, 10
Nonfinancial corporations, current, 41
Automobiles:
Consumer instalment credit, 45, 46, 47
Production index, 48, 49
BANK credit proxy, 13
Bankers balances, 16, 17, 20
(See also Foreigners)
Banks for cooperatives, 38
Bonds (See also U.S. Govt, securities):
New issues, 38, 39, 40
Yields and prices, 28, 29
Branch banks:
Assets, foreign branches of U.S. banks, 70
Liabilities of U.S. banks to their foreign branches
and foreign branches of U.S. banks, 22, 71
Brokerage balances, 69
Business expenditures on new plant and equipment, 41
Business indexes, 50
Business loans (See Commercial and industrial loans)
CAPACITY utilization, 50
Capital accounts:
Banks, by classes, 14, 17, 22
Federal Reserve Banks, 10
Centred banks, 60, 75
Certificates of deposit, 22
Commercial and industrial loans:
Commercial banks, 13, 16
Weekly reporting banks, 18, 23
Commercial banks:
Assets and liabilities, 13, 14, 16, 17, 18
Consumer loans held, by type, 45, 46, 47
Deposits at, for payment of personal loans, 24
Loans sold outright, 25
Number, by classes, 14
Real estate mortgages held, by type of holder and
property, 42^44
Commercial paper, 23, 25, 27
Condition statements (See Assets and liabilities)
Construction, 50, 51
Consumer instalment credit, 45, 46, 47
Consumer price indexes, 50, 53
Consumption expenditures, 54, 55
Corporations:
Profits, taxes, and dividends, 41
Security issues, 39, 40
Security yields and prices, 28, 29
Cost of living (See Consumer price indexes)
Currency and coin, 3, 16
Currency in circulation, 3, 12
Customer credit, stock market, 29, 30
DEBITS to deposit accounts, 11
Debt (See specific types of debt or securities)




Demand deposits:
Adjusted, commercial banks, 11, 13, 17
Banks, by classes, 14, 17, 20, 21
Ownership by individuals, partnerships, and corporations, 24
Subject to reserve requirements, 13
Turnover, 11
Deposits (See also specific types of deposits):
Accumulated at commercial banks for payment of
personal loans, 24
Banks, by classes, 14, 17, 20, 21, 30
Federal Reserve Banks, 10, 72
Subject to reserve requirements, 13
Discount rates at Federal Reserve Banks (See Interest
rates)
Discounts and advances by Reserve Banks (See Loans)
Dividends, corporate, 41
EMPLOYMENT, 50, 52
FARM mortgage loans, 42
Federal agency obligations, 9, 10, 11
Federal finance:
Receipts and outlays, 32, 33
Treasury operating balance, 32
Federal funds, 5, 16, 18, 21, 27
Federal home loan banks, 37, 38
Federal Home Loan Mortgage Corporation, 37, 42, 43
Federal Housing Administration, 42, 43, 44
Federal intermediate credit banks, 37, 38
Federal land banks, 37, 38, 42
Federal National Mortgage Assn., 37, 38, 42, 43, 44
Federal Reserve Banks:
Condition statement, 10
U.S. Govt, securities held, 2, 10, 11, 34, 35
Federal Reserve credit, 2, 4, 10, 11
Federal Reserve notes, 10
Federally sponsored credit agencies, 37, 38
Finance companies:
Loans, 18, 45, 46, 47
Paper, 25, 27
Financial institutions, loans to, 16, 18
Float, 2
Flow of funds, 56, 57
Foreign:
Currency operations, 10
Deposits in U.S. banks, 3, 10, 17, 21, 72
Exchange rates, 75
Trade, 59
Foreigners:
Claims on, 66, 67, 68, 72, 73, 74
Liabilities to, 22, 61, 62, 64, 65, 72, 73, 74
GOLD:
Certificates, 10
Reserves of central banks and govts., 60
Stock, 2, 59
Government National Mortgage Assn., 42
Gross national product, 54, 55
HOUSING permits, 50
Housing starts, 51

A 83

References are to pages A-2 through A-75 although

; prefix " A " is omitted in this index

INCOME, national and personal, 54, 55
Industrial production index, 48, 49, 50
Instalment loans, 45, 46, 47
Insurance companies, 31, 34, 35, 42, 44
Insured commercial banks, 14, 16, 17, 24
Interbank deposits, 14, 20
Interest rates:
Bond and stock yields, 28
Business loans of banks, 26
Federal Reserve Banks, 6
Foreign countries, 74, 75
Money market rates, 27
Mortgage yields, 43, 44
Prime rate, commercial banks, 26
Time and savings deposits, maximum rates, 8
International capital transactions of U.S., 61-74
International institutions, 60-64, 66, 67-69, 73
Inventories, 54
Investment companies, issues and assets, 40
Investments (See also specific types of investments):
Banks, by classes, 14, 16, 19, 30
Commercial banks, 13
Federal Reserve Banks, 10, 11
Life insurance companies, 31
Savings and loan assns., 31

REAL estate loans:
Banks, by classes, 16, 18, 30, 42
Mortgage yields, 43, 44
Type of holder and property
mortgaged, 42—44
Reserve position, basic, member banks, 5
Reserve requirements, member banks, 7
Reserves:
Central banks and govts., 60
Commercial banks, 17, 20, 22
Federal Reserve Banks, 10
Member banks, 3, 4, 13, 17
U.S. reserve assets, 59
Residential mortgage loans, 43, 44
Retail credit, 45, 46
Retail sales, 50

LABOR force, 52
Life insurance companies (See Insurance companies)
Loans (See also specific types of loans):
Banks, by classes, 14, 16, 18, 30
Commercial banks, 13, 14, 16, 18, 23, 25, 26
Federal Reserve Banks, 2, 4, 6, 10, 11
Insurance companies, 31, 44
Insured or guaranteed by U.S., 42, 43, 44
Savings and loan assns., 31
MANUFACTURERS:
Capacity utilization, 50
Production index, 49, 50
Margin requirements, 8
Member banks:
Assets and liabilities, by classes, 14, 16, 17
Borrowings at Federal Reserve Banks, 4, 10
Number, by classes, 14
Reserve position, basic, 5
Reserve requirements, 7
Reserves and related items, 2, 4, 13
Mining, production index, 49
Mobile home shipments, 51
Money market rates (See Interest rates)
Money stock and related data, 12
Mortgages (See Real estate loans and Residential
mortgage loans)
Mutual funds (See Investment companies)
Mutual savings banks, 20, 30, 34, 42, 44
NATIONAL banks, 14, 24
National defense expenditures, 33
National income, 54, 55
Nonmember banks, 15, 16, 17, 24
OPEN market transactions, 9
PAYROLLS, manufacturing index, 50
Personal income, 55
Prices:
Consumer and wholesale commodity, 50, 53
Security, 29
Prime rate, commercial banks, 26
Production, 48, 49, 50
Profits, corporate, 41




SAVING:
Flow of funds series, 56, 57
National income series, 54, 55
Savings and loan assns., 31, 35, 42, 44
Savings deposits (See Time deposits)
Savings institutions, principal assets, 30, 31
Securities (See also U.S. Govt, securities):
Federally sponsored agencies, 37, 38
International transactions, 68, 69
New issues, 38, 39, 40
Yields and prices, 28, 29
Special Drawing Rights, 2, 10, 58, 59
State and local govts.:
Deposits, 17, 20
Holdings of U.S. Govt, securities, 34, 35
New security issues, 38, 39
Ownership of securities of, 16, 19, 30
Yields and prices of securities, 28, 29
State member banks, 15, 24
Stock market credit, 29, 30
Stocks (See also Securities):
New issues, 39, 40
Yields and prices, 28, 29
TAX receipts, Federal, 33
Time deposits, 8, 13, 14, 17, 21, 22
Treasury currency, Treasury cash, 2, 3
Treasury deposits, 3, 10, 32
Treasury operating balance, 32
UNEMPLOYMENT, 52
U.S. balance of payments, 58
U.S. Govt, balances:
Commercial bank holdings, 17, 20
Member bank holdings, 13
Treasury deposits at Reserve Banks, 3, 10, 32
U.S. Govt, securities:
Bank holdings, 14, 16, 19, 30, 34, 35
Dealer transactions, positions, and financing, 36
Federal Reserve Bank holdings, 2, 10, 11, 34, 35
Foreign and international holdings, 10, 66, 68, 72
International transactions, 66, 68
New issues, gross proceeds, 39
Open market transactions, 9
Outstanding, by type of security, 34, 35
Ownership, 34, 35
Yields and prices, 28, 29
Utilities, production index, 49
VETERANS Administration, 43, 44
WEEKLY reporting banks, 18-22
YIELDS (See Interest rates)

A 84

The Federal Reserve System
Boundaries of Federal Reserve Districts and Their Branch Territories

LEGEND
—

Q

Boundaries of Federal Reserve Districts

®

Federal Reserve Bank Cities

Boundaries of Federal Reserve Branch
Territories

•

Federal Reserve Branch Cities

Board of Governors of the Federal
Reserve System




Federal Reserve Bank Facility

Guide to Tabular Presentation
SYMBOLS AND ABBREVIATIONS
e
c
p
r
rp

N.S.A.

Estimated
Corrected
Preliminary
Revised
Revised preliminary

I, II,
III, IV Quarters
n.e.c.
Not elsewhere classified
A.R.
Annual rate
S.A.
Monthly (or quarterly) figures adjusted for
seasonal variation

IPC
SMSA
A
L
S
U
*

Monthly (or quarterly) figures not adjusted
for seasonal variation
Individuals, partnerships, and corporations
Standard metropolitan statistical area
Assets
Liabilities
Sources of funds
Uses of funds
Amounts insignificant in terms of the particular unit (e.g., less than 500,000 when
the unit is millions)
(1) Zero, (2) no figure to be expected, or
(3) figure delayed

GENERAL INFORMATION
Minus signs are used to indicate (1) a decrease, (2)
a negative figure, or (3) an outflow.
A heavy vertical rule is used in the following instances: (1) to the right (to the left) of a total when
the components shown to the right (left) of it add to
that total (totals separated by ordinary rules include
more components than those shown), (2) to the right
(to the left) of items that are not part of a balance sheet,
(3) to the left of memorandum items.
44
U.S. Govt, securities" may include guaranteed
issues of U.S. Govt, agencies (the flow of funds figures

also include not fully guaranteed issues) as well as direct
obligations of the Treasury. 4"State and local govt."
also includes municipalities, special districts, and other
political subdivisions.
In some of the tables details do not add to totals
because of rounding.
The footnotes labeled N O T E (which always appear
last) provide (1) the source or sources of data that do
not originate in the System; (2) notice when figures
are estimates; and (3) information on other characteristics of the data.

TABLES PUBLISHED QUARTERLY, SEMIANNUALLY, OR ANNUALLY,
WITH LATEST BULLETIN REFERENCE
Quarterly
Sales, revenue, profits, and
dividends of large manufacturing corporations

Issue

Dec. 1975

Page

A-76

Annually—Continued

Issue

Page

Banks and branches, number,
by class and State

Apr. 1975

Flow of funds:
Assets and liabilities:
1962-73

Oct. 1974 A - 5 9 . 1 4 — A - 5 9 . 2 8

A-76—A-77

Semiannually
Banking offices:
Number in the
United States
Number of par and nonpar

Aug. 1975
Aug. 1975

A-76
A-77

Flows:
1965-73

Oct. 1974

A-58—A-5^.13

Annually
Bank holding companies:
Banking offices and deposits of group banks, Dec.
31, 1974

June 1975

Banking and monetary statistics:
1974
Feb.
Mar.
Apr.
May
July

1975
1975
1975
1975
1975

A-76—A-79
A-8 A—A-85
A-79—A-82
A-78—A-85
337
A-77

Income and expenses:
Federal Reserve Banks ..
Insured commercial banks
Member banks:
Calendar year
Income ratios
Operating ratios

Feb. 1975
June 1975

A-80—A-81
A-80—A-81

June 1975
June 1975
Sept. 1975

A-80—A-89
A-90—A-95
A-76—A-81

Stock market credit

Feb. 1975

A-86—A-87

Statistical Releases
LIST PUBLISHED SEMIANNUALLY, WITH LATEST BULLETIN REFERENCE
Anticipated schedule of release dates for individual releases




Issue
Dec. 1975

Page
A-83