Full text of Federal Reserve Bulletin : February 1979
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F E B R U A R Y 1979
FEDERAL RESERVE
BULLETIN
Domestic Financial Developments in the Fourth Quarter of 1978
Check Processing at Federal Reserve Offices
Survey of Time and Savings Deposits, October 1978
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VOLUME 65 •
NUMBER 2 •
FEBRUARY 1979
FEDERAL RESERVE
BULLETIN
Board of Governors of the Federal Reserve System
Washington, D.C.
PUBLICATIONS COMMITTEE
Joseph R. Coyne, Chairman • Stephen H. Axilrod • John M. Denkler
Janet O. Hart • James L. Kichline • Neal L. Petersen • Edwin M. Truman
Michael J. Prell, Staff
Director
The FEDERAL RESERVE BULLETIN is issued monthly under the direction of the stafl publications committee. This committee
is responsible for opinions expressed except in official statements and signed articles. Direction for the art work is provided
by Mack R. Rowe. Editorial support is furnished by the Economic Editing Unit headed by Mendelle T. Berenson.
Table of Contents
87
DOMESTIC
FINANCIAL
THE FOURTH
DEVELOPMENTS
QUARTER
OF
IN
1978
The quarterly report to the Congress states
that the Federal Reserve became more
restrictive in supplying reserves to the
banking system because of economic conditions and the expansion of the monetary
aggregates in the third quarter.
97
CHECK
PROCESSING
A T FEDERAL
RESER
VE
OFFICES
Based on the Federal Reserve's May 1978
survey of its check-clearing function, the
average dollar value of an interzone check
is twice that of the more common locally
deposited item; member banks deposit
most of the checks; and funds are normally
available the day after deposit.
104
SURVEY
OF TIME
AT COMMERCIAL
AND
SAVINGS
BANKS,
OCTOBER
DEPOSITS
1978
Total time and savings deposits at insured
commercial banks expanded more than 2Vi
percent over the most recent survey period.
110
STAFF
STUDY
Summary of 4 'Tie-Ins between the Granting of Credit and Sale of Insurance by
Bank Holding Companies and Other
Lenders" presents the findings of a study
of the existence and extent of tying between the granting of credit and the sale
of insurance by retailers, bank holding
companies, and other financial institutions.
112
INDUSTRIAL
PRODUCTION
Output rose an estimated 0.1 percent in
January.
113
STATEMENTS
TO
CONGRESS
Chairman G. William Miller states that the
Federal Reserve approves H.R. 7, the
Monetary Control Act of 1979, with certain modifications, before the House
Committee on Banking, Finance and
Urban Affairs, January 24, 1979.
118 Chairman MHler expresses the views of
the Federal Reserve on the nation's economic condition and the need for continuing toward a balanced budget to slow
inflation, before the House Committee on
the Budget, January 25, 1979.
122 Governor Philip E. Coldwell points out
that the Federal Reserve's budget for 1979
has been prepared in accordance with a
policy of reducing resource expenditures
while maintaining a high quality of service
to the public, before the Senate Committee
on Banking, Housing and Urban Affairs,
January 26, 1979.
127 Chairman Miller presents the Federal Reserve's view of the nation's economic
progress in annual hearings on the state
of the economy, before the Joint Economic Committee of the U.S. Congress,
January 30, 1979.
130 Governor Nancy H. Teeters describes
seven recommendations of the Federal
Reserve for the simplification of truth in
lending, before the Senate Committee on
Banking, Housing and Urban Affairs,
February 2, 1979.
133 Governor Henry C. Wallich states that the
Federal Reserve supports the extension of
the authority of the Council on Wage and
Price Stability to 1981, before the Senate
Committee on Banking, Housing and
Urban Affairs, February 8, 1979.
137
a range of 9 3 A to IOV2 percent. With regard
to the objective for the rate within that
range, the committee instructed the manager to be guided by ranges of tolerance
for the annual rates of growth of M - 1 and
M - 2 of 2 to 6 percent and 5 to 9 percent,
respectively. H o w e v e r , the committee decided that the manager should respond
more quickly to relatively high than to
relatively low rates of growth in the aggregates. Specifically, the objective for the
f u n d s rate was to be raised in an orderly
fashion within its range if the two-month
growth rates of M - l and M - 2 appeared to
be significantly above the midpoints of the
indicated ranges. On the other hand, the
objective was to be lowered in an orderly
fashion only if the two-month growth rates
appeared to be approaching the lower
limits of the indicated ranges.
ANNOUNCEMENTS
Issuance of statement about improvement
of quality and public understanding of
Federal Reserve regulations.
Transfer of minutes of Federal Open Market Committee meetings to National Archives.
Adoption of consumer affairs and civil
rights compliance program for m e m b e r
banks.
Issuance of policy statement and revision
of Regulation Y to implement the Change
in Bank Control Act of 1978. (See Law
Department.)
Establishment of nationwide rating system
for bank holding companies.
Adoption of statement of policy concerning remote disbursement (abuse of the
check collection system).
On December 29, 1978, the committee
modified the instruction to the manager to
call for open market operations directed
at maintaining the weekly average federal
funds rate at about 10 percent or slightly
above.
Issuance of statement about the C o m m u nity Reinvestment Act by the four federal
s u p e r v i s o r s of
financial
institutions
responsible for enforcement.
Revision of the money stock and related
measures.
Proposed statement of customer rights
under the Right to Financial Privacy Act
of 1978; proposed regulations to carry out
the Depository Institution Management
Interlocks Act; and proposed suspension
of an amendment to Regulation Z concerning pledging of homes as security for
open-end credit arrangements.
Meeting of Consumer Advisory Council.
157
LAW
DEPARTMENT
A m e n d m e n t to Regulation Y, various
rules and bank holding company and bank
merger orders, and pending cases.
A1
FINANCIAL
AND
BUSINESS
STATISTICS
A3 Domestic Financial Statistics
A 4 6 Domestic Nonfinancial Statistics
A54 International Statistics
Changes in Board Staff.
Admission of four banks to membership
in the Federal Reserve System.
A69
A70
145
RECORD
OF POLICY
FEDERAL
OPEN
ACTIONS
MARKET
OF
THE
COMMITTEE
At the meeting on December 19, 1978,
the committee agreed to instruct the manager to direct open market operations
toward raising the federal f u n d s rate to 10
percent or slightly higher early in the period before the next regular meeting and
subsequently to maintain the rate within
GUIDE
AND
A72
TO TABULAR
BOARD
OPEN
MARKET
FEDERAL
AND
RELEASES
OF GOVERNORS
ADVISORY
A73
PRESENTATION
STATISTICAL
AND
COMMITTEE
STAFF
AND
STAFF;
COUNCILS
RESERVE
BANKS,
BRANCHES,
OFFICES
A74
FEDERAL
A76
INDEX
A78
MAP
RESERVE
BOARD
TO STATISTICAL
OF FEDERAL
RESERVE
PUBLICATIONS
TABLES
SYSTEM
Domestic Financial Developments in
the Fourth Quarter of 1978
This report, which was sent to the Joint Economic Committee of the U.S. Congress,
highlights the important developments in domestic
financial markets during the fall and early
winter.
The pace of the nation's economic activity advanced considerably further during the fourth
quarter, inflationary pressures remained strong,
and early in the quarter the dollar continued
under substantial downward pressure in foreign
exchange markets. To control inflation and to
help arrest the excessive depreciation of the
dollar, monetary restraint was intensified. The
rate of growth in bank reserves moderated in
the fourth quarter and into early 1979, and the
federal funds rate increased about P/2 percentage points from September to January.
The discount rate was boosted a similar
amount, including an increase of 1 percentage
point initiated on November 1 as part of a joint
Federal Reserve-Treasury program to support
Interest rates
NOTES:
Percent per annum
SHORT-TERM
the dollar in foreign exchange markets. On that
date, the Federal Reserve also announced a
supplementary reserve requirement of 2 percentage points on large-denomination time deposits at member banks; this action was taken
in an effort to curb the expansion of bank credit
and to encourage borrowing by member banks
from abroad, thereby strengthening the demand
for dollar-denominated assets in Euromarkets.
Short-term interest rates generally rose in line
with the upward movements in "the federal funds
and discount rates over the fourth quarter. The
increases in Treasury bill rates, however, were
held down somewhat by demands of foreign
central banks that were investing the dollar
proceeds of exchange market intervention. At
the same time, rates on private short-term instruments were subject to especially strong upward pressures from substantial issuance of
commercial paper and negotiable certificates of
deposit (CDs); recently, these rates have declined somewhat from their year-end peaks.
Monthly averages except for
Federal Reserve discount rate and
conventional mortgages (based on
quotations for one day each
month). Yields: U.S. Treasury
bills, market yields on three-month
issues; prime commercial paper,
dealer ottering rates; conventional
mortgages, rates on first mortgages
in primary markets, unweighted
and rounded to nearest 5 basis
points, from Department of Housing and Urban Development; Aaa
utility bonds, weighted averages of
new publicly offered bonds rated
Aaa, Aa, and A by Moody's Investors Service and adjusted to Aaa
basis; U.S. government bonds,
market yields adjusted to 20-year
constant maturity by U.S. Treasury; state and local government
bonds (20 issues, mixed quality),
Bond Buyer.
Federal Reserve Bulletin • February 1979
88
Reflecting the higher cost of funds, the bank
prime rate was increased more than 2 percentage
points, to 11% percent.
Long-term rates moved about 1/2 of a percentage point higher during the fourth quarter,
in response not only to the rise in short-term
rates but also to the continuing high rate of
inflation and the evidence of sustained strength
in the economy. Stock prices fell sharply in late
October, but reversed a portion of that decline
over the balance of the quarter and in January
as the dollar strengthened on foreign exchange
markets and as corporations reported substantial
increases in dividends and fourth-quarter earnings.
Growth in M-1 slowed markedly in the fourth
quarter and remained quite weak in January,
reflecting in part shifts of funds out of demand
deposits associated with the authorization of
automatic transfers from savings accounts as
well as the cumulative impact of higher interest
rates on the demand for money. Growth in the
interest-earning components of the broader
measures of the money stock, M-2 and M-3,
slowed substantially as the quarter progressed,
although on average for the entire quarter their
rates of expansion were little changed from the
previous quarter. Time and savings deposits
subject to fixed-rate ceilings declined, but sales
of six-month money market certificates (MMCs)
were quite strong, as was the issuance of large
time deposits included in these aggregates.
As a result of these somewhat disparate
movements, all three major monetary aggre-
Changes in selected monetary aggregates 1
Seasonally adjusted annual rate of change, in percent
1977
Item
Member bank reserves2
Total
Nonborrowed
1976
1977
1978
1978
Q4
Ql
Q2
Q3
Q4
.6
.8
5.3
3.0
6.9
6.9
6.3
3.8
8.9
14.5
6.2
.6
8.6
6.6
3.1
5.4
5.8
12.6
10.9
12.7
7.1
10.2
7.9
9.3
9.8
11.7
10.1
11.7
7.3
5.3
8.5
9.4
10.5
10.5
7.4
6.6
7.9
10.1
10.4
11.5
6.6
5.0
7.0
8.1
10.2
10.0
9.2
7.2
8.4
8.4
10.6
9.8
8.1
6.0
9.9
10.4
10.1
10.5
4.4
2.5
1.1
9.4
9.4
10.3
Time and savings deposits at
commercial banks—Total (excluding large negotiable CDs)
Savings
Other time
Small time plus total savings 4
15.0
25.0
7.5
19.2
11.2
11.1
11.4
10.5
9.4
1.8
16.1
5.6
8.3
5.4
10.9
4.3
7 2
2.0
11.7
31
7.9
3.8
11.4
5.9
11.1
2.3
18.5
6.6
10.3
-.9
19.3
6.1
Deposits at thrift institutions 5
15.6
14.5
10.6
13.2
9.7
8.5
11.1
11.7
-19.1
-.8
16.4
14.8
8.0
10.8
14.5
12.3
23.1
22.7
17.3
14.8
6.6
5.4
1.2
4.5
8.4
5.5
1.8
5.2
6.6
3.6
3.8
.9
2.6
7.0
5.1
2.3
5.5
6.6
6.6
6.7
Concepts of money3
M-l
M-l +
M-2
M-3
M-4
M-5
MEMO (change in billions of dollars,
seasonally adjusted):
Large negotiable CDs at large
banks
All other large time deposits 6
Small time deposits
Nondeposit sources of funds 7
1. Changes are calculated from the average amounts outstanding in each quarter.
2. Annual rates of change in reserve measures have been
adjusted for changes in reserve requirements.
3. M-l is currency plus private demand deposits adjusted.
M-l + is M-l plus savings deposits at commercial banks, NOW
accounts at banks and thrift institutions, credit union share draft
accounts, and demand deposits at mutual savings banks. M-2
is M-l plus bank time and savings deposits other than large
negotiable CDs. M-3 is M-2 plus deposits at mutual savings
banks and savings and loan associations and credit union
shares. M-4 is M-2 plus large negotiable CDs. M-5 is M-3
plus large negotiable CDs.
4. Interest-bearing deposits subject to Regulation Q.
5. Savings and loan associations, mutual savings banks, and
credit unions.
6. Total large time deposits less negotiable CDs at weekly
reporting banks.
7. Nondeposit sources of funds include borrowings by
commercial banks from other than commercial banks in the
form of federal funds purchased, securities sold under agreements to repurchase, and other liabilities to own foreign
branches (Eurodollar borrowings), loans sold to affiliates, loan
repurchase agreements, borrowings from Federal Reserve
Banks, and other minor items.
Domestic Financial Developments,
gates expanded in the fourth quarter at rates
consistent with the long-run ranges set by the
Federal Open Market Committee for the period
from the third quarter of 1978 to the third
quarter of 1979. For M-2 and M-3, these ranges
were 6*/2 to 9 percent and IV2 to 10 percent,
respectively. The growth of M - l , which the
committee recognized would be affected by the
introduction of automatic transfer services,
was expected to fall within a range of 2 to 6
percent.
Aggregate credit flows to nonfinancial sectors
totaled around $390 billion at an annual rate
in the fourth quarter, somewhat below the pace
of the preceding three months. Public-sector
borrowing declined, as the Treasury drew down
its cash balances to finance a portion of the
federal deficit and as bond issuance by state and
local governments fell with a decrease in advance-refunding operations. Nonfinancial businesses stepped up their short- and intermediate-term borrowing, which more than offset
a decline in offerings of long-term securities.
Consumer credit expanded somewhat more rapidly than in the third quarter, and the volume
of home mortgage financing also increased,
spurred by greater lending at thrift institutions.
MONETARY
AND BANK
AGGREGATES
CREDIT
Growth in M-l slowed markedly in the fourth
quarter to an annual rate of 4V2 percent on a
quarterly-average basis, down from an average
of 8 percent over the first three quarters of the
year. On a monthly basis, M-l was little
changed on balance over the quarter, as moderate growth in October and December was about
offset by a decline in November. The moderation in the growth of M-l occurred despite a
pick-up in the pace of expansion of nominal
gross national product, and thus the velocity of
M - l rose at an annual rate of about 9VI percent
in the fourth quarter, well above the 1XA percent
rate of the preceding quarter.
The principal cause for the slowdown in M - l
growth apparently was the sustained rise over
recent months in market interest rates, which
encouraged the public to economize on non-in-
Q4 1978
89
Changes in income velocitv of M-l and M-2
Seasonally adjusted annual rates. Money stock data are
quarterly averages.
terest-bearing assets. However, the slowing of
growth in M - l during the fourth quarter and into
early 1979 exceeded the amount implied by
historical relationships among M - l , GNP, and
interest rates. Some, but not all, of the greater
slowdown can be explained by shifts of funds
at commercial banks from demand deposits to
household savings accounts eligible for automatic transfer services (ATS), authorized on
November 1. Transfers to ATS savings accounts
are estimated to have reduced growth in M - l
for the quarter as a whole about 1 percentage
point at an annual rate. By the end of December,
more than a third of all commercial banks were
offering ATS savings accounts, and the balances
outstanding in such accounts were estimated to
total more than $3 billion. Something over half
of these balances were thought by the banks
surveyed to have been shifted from demand
deposit accounts.
Despite transfers into ATS savings accounts,
total savings deposits at commercial banks declined nearly 1 percent (annual rate) in the
fourth quarter—the first quarterly decline since
early 1970—as the spread between yields on
Treasury bills and the maximum allowable yield
on savings deposits reached a record AV2 percentage points by the end of the year. The
90
Federal Reserve Bulletin • February 1979
Treasury yield curves and deposit rate ceilings
Percent per annum
+ Maximum yield on "money market" time deposits at
thrift institutions.
* Maximum yield on "money market" time deposits at
commercial banks.
Data reflect annual effective yields. Ceiling rates are yields
derived from continuous compounding of the nominal ceiling
rates. Market yield data are on an investment yield basis.
weakening in savings flows was concentrated in
accounts held by individuals and nonprofit institutions. With the drop in savings deposits,
the newly defined monetary aggregate, M-1 + ,
grew at a rate of only 2Vi percent, down from
6 percent in the third quarter. M-l + , which has
been defined as M-l plus all savings accounts
at commercial banks and checkable deposits at
thrift institutions, serves as a supplemental
measure of transactions balances during the period of adjustment to ATS accounts.
The slowdown in the rate of expansion of M-2
was more moderate than the deceleration in the
narrower monetary aggregates; growth in total
small-denomination time deposits picked up
somewhat in the fourth quarter to an annual rate
of 6V2 percent, while the rate of increase of large
time deposits included in M-2 slowed only
slightly. The stronger growth of small time
deposits was attributable to large net inflows of
funds to MMCs at commercial banks, the ceiling rate on which varies weekly with the rate
set in auctions of six-month Treasury bills; the
growth in these accounts amounted to $1314
billion, not seasonally adjusted, compared with
$1V2 billion in the third quarter. Even with the
maturing in December of more than $2 billion
of MMCs issued by commercial banks in June,
when such accounts were first authorized, banks
maintained strong net gains in these deposits.
Meanwhile, other small time deposits maturing
in less than four years continued to decline
during the fourth quarter, while small time deposits with longer maturities were essentially
unchanged after having risen slowly over the
preceding three months.
Outflows from time accounts subject to fixed
regulatory interest rate ceilings reflected further
increases in market rates above such ceilings,
which caused shifting of funds to MMCs as well
as to market instruments. By the end of the year,
MMCs accounted for more than 534 percent of
all small-denomination time and savings deposits at commercial banks. Although a substantial
portion of MMC balances undoubtedly represents deposits that would have been held in other
types of commercial bank accounts, the MMC
also has enabled banks to retain funds that might
otherwise have been diverted to market instruments. The relative attractiveness to small
savers of financial instruments ottering market
rates of interest was evidenced by a rise in
noncompetitive tenders for Treasury securities
and a sharp increase in net sales of shares in
money market mutual funds.
Issuance of MMCs also rose at savings and
loan associations and mutual savings banks,
boosting deposit growth at thrift institutions in
the fourth quarter to an annual rate of 113A
percent on a quarterly-average basis, up from
11 percent the preceding quarter. As a result,
expansion of M-3 fell only slightly on average
from its pace in the third quarter. However,
growth of thrift deposits slowed in each month
of the quarter, dropping from almost 14 percent
in September to an estimated 9!/2 percent in
December. During the final three months of the
year, thrift institutions attracted $28 billion of
new MMCs compared with $181/2 billion in the
third quarter. Like commercial banks, these
institutions evidently had little difficulty rolling
over maturing MMCs at prevailing rates in
December, and by year-end MMCs accounted
for more than 9 percent of total deposits at
savings and loan associations and mutual savings banks.
Domestic Financial Developments,
In the face of reduced growth in the fourth
quarter in the deposits included in the major
monetary aggregates, banks stepped up their use
of managed liabilities—both nondeposit sources
of funds and large-denomination time deposits
not subject to rate ceilings—in order to maintain
rapid expansion of loan portfolios. Banks tapped
nondeposit sources for $6% billion in the fourth
quarter compared with $2XA billion in the preceding three months. These funds consisted
largely of security repurchase agreements and
federal funds purchased from nonbank sources.
Gross Eurodollar borrowings from foreign
branches also rose; but because banks increased
claims on such branches by a like amount, the
domestic banking system on balance acquired
only a small amount of funds from foreign
branches. Large banks issued $51/2 billion of
negotiable CDs—not included in M-2—up from
the net rise of $2l/z billion in the preceding three
months. Total managed liabilities as a percent
of net assets at large banks increased over the
fourth quarter, nearing the previous peak
reached in 1974. In addition to the traditional
nondeposit sources of funds, on November 2
banks began to acquire Treasury note balances
under the new tax-and-loan-account program.
During the final two months of the year, balances in such accounts averaged more than $6
billion.
Growth in total loans at commercial banks
picked up slightly in the fourth quarter, primarily reflecting increased lending to consumers. The expansion of real estate loans
nearly matched the strong pace of the previous
two quarters, while that of business loans,
which had held at the third-quarter pace in
October and November, ceased in December.
To help finance their loan expansion, banks
allowed holdings of Treasury securities—particularly those maturing in one year or more—to
fall sharply, while the growth of their portfolios
of other securities moderated. Over all, the
expansion of bank credit decelerated to an annual rate of 6 percent in the fourth quarter.
BUSINESS
FINANCE
Both capital expenditures and internally generated funds at nonfinancial corporations increased slightly in the fourth quarter, leaving
Q4 1978
91
the financing gap at about its third-quarter level.
Businesses reduced their borrowing in bond
markets in the fourth quarter but continued to
make substantial use of mortgages as a source
of long-term credit. Despite a reduction in the
growth of business loans at commercial banks,
total short- and intermediate-term business
credit accelerated due to a sharp rise in issuance
of commercial paper and a near-record increase
in borrowing from finance companies. Much of
the increase in finance company loans to businesses reflected automotive-related credit, including financing of dealer inventories of automobiles and retail sales of commercial vehicles.
The reduced lending to business by commercial banks was accompanied by a cumulative
increase of 2 percentage points in the prime rate
during the October-December period, bringing
the rate close to the record 12 percent set in
1974. In addition, data available for large banks
indicate that nonprice loan terms and standards
of creditworthiness tightened. Large banks
reportedly also became less aggressive in the
fourth quarter in granting below-prime loans
and, in light of uncertainty surrounding future
interest rates, in making fixed-rate loans.
Components of
bank credit
Major categories of
bank loans
Change, billions of dollars
TREASURY SECURITIES
OTHER SECURITIES
n . n
n
n
TOTAL LOANS
Q4 Q1
1977
Q2 Q3
1978
Q4
Q4 Q1
1977
Q2 Q3
1978
Q4
Seasonally adjusted. Total loans and business loans adjusted
for transfer between banks and their holding companies, affiliates, subsidiaries, or foreign branches.
92
Federal Reserve Bulletin • February 1979
Business loans and shortand intermediate-term business credit
Seasonally adjusted annual rate of change, in percent
Business loans
at banks 1
Period
Total
Excluding
bank holdings
of bankers
acceptances
Total short- and
intermediate-term
business credit 2
1975—Ql..
Q2..
Q3..
Q4..
-5.2
-8.7
-2.4
-7.4
-9.0
-2.9
-2.3
-4.4
-8.9
-.5
-3.9
1976—Ql..
Q2..
Q3..
Q4..
-6.9
1.6
5.3
10.6
-6.6
2.1
2.8
9.7
-1.2
5.9
2.3
12.8
1977—Q1..
Q2..
Q3..
Q4..
11.2
12.8
11.2
11.7
13.3
12.9
10.4
12.6
14.6
16.1
10.4
16.4
1978—Ql.. ' 15.3
Q2..
17.4
Q3..
10.3
Q4..
6.7
16.8
17.9
10.3
8.6
14.8
17.4
9.1
15.5
1. Based on data for last Wednesday of month, adjusted
for outstanding amounts of loans sold to affiliates.
2. Short- and intermediate-term business credit is business
loans at commercial banks excluding bank holdings of bankers
acceptances plus nonfinancial company commercial paper and
finance company loans to businesses measured from end of
quarter to end of quarter.
Gross offerings of bonds and stocks by both
nonfinancial and financial corporations slowed
to a seasonally adjusted annual rate of $41
billion, down from $57 billion in the third
quarter and about in line with the low levels
recorded in the first half of 1978. In the public
bond market, offerings by industrial corporations declined from already moderate levels, as
major corporations with relatively high bond
ratings (Aa and above) refrained from offering
new issues. Such firms appear to have been
reluctant to issue call-protected, long-term debt
at the relatively high nominal interest rates prevailing in 1978; instead, they relied heavily on
short-term borrowing, further eroding their liquidity positions. While reducing their public
bond offerings in the fourth quarter, public
utilities, especially communications concerns,
continued to account for a large portion of total
new issues. Financial corporations, on the other
hand, increased their public bond offerings
moderately during the fourth quarter, mainly
owing to a rise in sales of securities by finance
companies.
Private placements of corporate bonds,
mostly issues of manufacturing and industrial
concerns with ratings less than Aa, are estimated
to have decreased somewhat from the relatively
strong pace of other recent quarters. Nonetheless, the volume of bond issuance by lowerrated corporations remained sizable by historical
standards, reflecting in part the availability of
loanable funds at major institutional investors
such as life insurance companies and pension
funds, many of which traditionally purchase the
securities of such corporations. In addition, the
continued strength in issuance of privately
placed corporate bonds may have been encouraged by the still relatively low risk premiums associated with these securities. The
spread between lower-rated (Baa) and higherrated (Aaa) corporate bonds remained relatively
narrow during the fourth quarter, despite the
upward movement in long-term interest rates in
1978.
Yields on corporate bonds increased appreciably, on balance, over the fourth quarter. New
issues of Aaa-rated utility bonds yielded 9.55
percent in early January, almost 3/4 of a percentage point more than at the end of September. Nevertheless, corporate bond yields reGross offerings of new security issues
Seasonally adjusted annual rates, in billions of dollars
1977
Type of security
Corporate, total
Bonds
Publicly ottered
Privately placed..
Stocks
,
Foreign
State and local
government
p Preliminary,
e Estimated.
1978
Q4
Ql
Q2
Q3,Jf
Q4<
59
43
24
19
16
39
32
16
16
7
46
36
19
17
10
57
45
28
17
12
41
33
19
14
8
5
5
12
6
5
46
44
50
53
43
Domestic Financial Developments,
mained below their 1974 highs, in contrast to
rates paid on long-term Treasury securities,
which surpassed record highs early in the quarter.
Stock prices generally declined in the fourth
quarter, following the pronounced gains recorded earlier in the year. In late October, stock
prices moved sharply lower in apparent reaction
to further weakness in the foreign exchange
value of the dollar, heightened uncertainty about
the outlook for inflation and economic activity,
and additional increases in interest rates. Following the announcement on November 1 of the
joint Treasury-Federal Reserve program to stem
the decline in the foreign exchange value of the
dollar, stock prices stabilized and even reversed
part of the decline recorded earlier in the quarter. Stock prices generally moved upward in
early January, in large part due to the strengthening of the dollar in foreign exchange markets,
the continued robust growth in economic activity, and the unexpected gains in profits and
dividends reported by several major corporations. After a record expansion in the previous
quarter, margin credit contracted in the fourth
quarter—its first quarterly decline in four years.
The decline was attributable in part to liquidation of stock holdings to meet margin calls in
Q4 1978
93
the wake of the substantial drop in stock prices
early in the quarter. The fall in stock prices and
the increase in corporate earnings further depressed price-earnings ratios for most corporations from already low levels. As a result, total
equity issuance declined markedly in the fourth
quarter.
GOVERNMENT
FINANCE
Gross bond sales by state and local governments
declined significantly in the fourth quarter from
the near-record level of the third quarter. The
large decrease in the volume of tax-exempt
offerings reflected a marked drop in advance
refundings after September 1, the effective date
of new Treasury Department regulations that
reduced the attractiveness of these operations.
The decline in such issues also may be attributable to the increased level of tax-exempt
yields. State and local governments did, however, raise a larger volume of new capital over
the period. As in the third quarter, sales of
securities by various state and local housing
authorities accounted for a sizable portion of the
new issues. Property-casualty insurance companies and commercial banks continued to be
the major purchasers of tax-exempt offerings.
Federal government borrowing and cash balance
Quarterly totals, not seasonally adjusted, in billions of dollars
Item
Treasury financing
Budget surplus, or deficit { - ) . . . . . , . , . . . . . . .
Off-budget deficit 1
Net cash borrowings, or repayments ( - )
Other means of financing2
Change in cash balance
Federally sponsored credit agencies,
net cash borrowings 3
1977
Q2
Q3
Q4
Ql
Q2
Q3
Q4°
-18.7
-4.3
17.6
2.7
-2.6
8.6
.1
-1.1
-.4
7.2
-12.2
-4.9
19.5 4
.4
2.84
-28.8
-1.3
20.7
2.6
-6.8
-25.8
-3.7
20.8
2.8
-5.9
14.0
-2.2
2.5
-3.2
11.1
-8.1
-3.1
15.1
1.0
4.9
-23.8
-.1
15.2
2.6
-6.1
.7
3.0
2.0
4.5
6.5
6.1
5.2
1. Includes outlays of the Pension Benefit Guaranty Corporation, Postal Service Fund, Rural Electrification and Telephone Revolving Fund, Rural Telephone Bank, Housing for
the Elderly or Handicapped Fund, and Federal Financing Bank.
All data have been adjusted to reflect the return of the ExportImport Bank to the unified budget.
2. Checks issued less checks paid, accrued items, and other
transactions.
3. Includes debt of the Federal Home Loan Mortgage Cor-
1978
Ql
1.8
poration, Federal Home Loan Banks, Federal Land Banks,
Federal Intermediate Credit Banks, Banks for Cooperatives,
and Federal National Mortgage Association (including discount
notes and securities guaranteed by the Government National
Mortgage Association).
4. Includes $2.5 billion of borrowing from the Federal
Reserve on September 30, which was repaid October 4 following enactment of a new debt ceiling bill.
e Estimated.
94
Federal Reserve Bulletin • February 1979
Interest rates on state and local obligations
rose appreciably in the fourth quarter. The Bond
Buyer index of tax-exempt bond yields, at 6.58
percent in early January, was almost 1/2 of a
percentage point above its level at the end of
September.
Treasury borrowing during the fourth quarter
remained at about the third-quarter level of $15
billion (not seasonally adjusted), despite a relatively large increase in the budget deficit. In
contrast with the third quarter, a significant
portion of the deficit was financed in the fourth
quarter by drawing down Treasury cash balances.
Issuance of nonmarketable Treasury obligations picked up sharply in the fourth quarter
despite the reduction in purchases of such securities by state and local governments associated with the decline in advance refunding
operations. The pick-up reflected a substantial
increase in acquisitions by foreign official accounts with the proceeds from dollar-support
operations in foreign exchange markets. The
Treasury also issued $1.6 billion of obligations
denominated in German marks, sold mainly to
German financial institutions, as part of the
effort to stem the decline in the foreign exchange
value of the dollar.
In the open market, the Treasury continued
to rely on coupon securities to meet its financing
needs in the fourth quarter. During the four
quarters of 1978, the outstanding supply of
Treasury bills remained about unchanged, on
balance, at $161 billion, while coupon issues
increased almost $27 billion. However, most of
the coupon issues had maturities of two to four
years; as a result, the average maturity of privately held marketable Treasury debt, which
had been three years and four months at the
end of 1978, lengthened only five months during
the year. In the fourth quarter, foreign official
accounts also acquired a sharply increased volume of marketable Treasury issues; net purchases of these issues by all other investors were
relatively small.
Net borrowing by federally sponsored credit
agencies, though less than the strong pace of
the third quarter on a seasonally unadjusted
basis, remained quite sizable during the fourth
quarter. In contrast with the borrowing in the
third quarter, the major proportion of this financing was long term. As in the preceding
three quarters, most of the borrowing was related to activity of sponsored credit agencies in
the residential mortgage market. The Federal
National Mortgage Association and the Federal
Home Loan Bank System both borrowed heavily during most of the quarter to obtain funds
to be channelled to mortgage lenders, and to
a lesser extent, to rebuild their holdings of liquid
assets.
The increase in Treasury bill rates over the
fourth quarter was only slightly less than that
in the federal funds rate. The pick-up in Treasury coupon yields, while generally in line with
yield increases on private longer-term securities,
remained well below the rise in shorter-term
market rates. In consequence, the term structure
of yields on Treasury securities continued to
exhibit the steeply humped pattern that had
emerged at the end of the third quarter, with
the peak still centering on the 12-month maturity
area. For maturities beyond five years, the curve
remained essentially flat. The hump in the yield
curve may have indicated market expectations
of a turning point in late 1979 in the business
and the interest rate cycles.
MORTGAGE
AND CONSUMER
CREDIT
Net mortgage lending moved higher during the
quarter, exceeding even its previous peak in the
fourth quarter of 1977. The flow of funds into
residential mortgages picked up moderately, to
its most rapid rate of the year. Commercial and
other nonresidential mortgage lending continued
at the relatively high pace of the third quarter,
reflecting principally the sustained strength in
commercial construction activity.
Commercial banks maintained their mortgage
lending in the fourth quarter at about the rapid
pace recorded in the previous two quarters, and
life insurance companies acquired substantial
amounts of mortgages, as they had earlier in
the year. The sustained strength in mortgage
acquisitions by these diversified financial inter-
Domestic Financial Developments,
Net change in mortgage debt outstanding
Seasonally adjusted annual rates, in billions of dollars
1977
1978
Q4
Q2 Q3 1
Q4e
Change
Ql
Total
152 135
142 141
144
By type of property
Residential
Other1
117 100
35 35
105 103
37 38
106
38
37
48
7
10
8
31
36
52
7
9
6
34
By type of holder
Commercial banks
Savings and loans
Mutual savings banks
Life insurance companies
FNMA2 and GNMA
Other
32
62
8
9
•;*
41
27
54
7
6
6
35
36
52
6
9
13
26
1. Includes commercial and other nonresidential as well as
farm properties.
2. Includes mortgage pools backing securities guaranteed
by the Government National Mortgage Association, Federal
Home Loan Mortgage Corporation, or Farmers Home Administration, some of which may have been purchased by the
institutions shown separately.
r Revised.
e Estimated.
* Less than $500 million.
mediaries can be attributed in part to the continued robust demand for commercial and other
nonresidential mortgages, for which they are
major lenders, as well as to the relative attractiveness of mortgage yields. In addition, the
reduced volume of private offerings of corporate
bonds permitted insurance companies to channel
increases in cash flows into mortgage markets.
The bulk of the rise in mortgage lending in
the fourth quarter occurred at savings and loan
associations, in lagged response to the significant pick-up in deposit flows following the introduction of the money market certificate on
June 1. Despite increased net sales of six-month
money market certificates during the fourth
quarter, deposit growth at savings and loan
associations (measured on an end-of-period
basis) slowed somewhat from the third-quarter
pace, though it remained strong relative to deposit flows in the first half of the year. Even
though deposit flows moderated during the
quarter, savings and loans increased their mortgage lending by relying more heavily on borrowed funds and by reducing their liquidity. On
a seasonally adjusted basis, these associations
Q4 1978
95
increased the rate at which they were taking
down advances from Federal Home Loan Banks
in the fourth quarter. In addition, at insured
savings and loans, the average liquidity ratio—
cash and liquid assets divided by the sum of
short-term borrowings and deposits—declined
during the quarter for the first time since the
introduction of the variable-ceiling certificates.
However, the ratio remained significantly above
the minimum liquidity requirement. The weakening in deposit growth also encouraged a leveling-off in mortgage commitments outstanding
at these associations toward the year-end following a pick-up early in the quarter.
Issuance of mortgage pass-through securities
guaranteed by the Government National Mortgage Association (GNMA) increased further in
the fourth quarter, while purchases by the Federal National Mortgage Association (FNMA) of
government-underwritten home loans continued
to decline somewhat. This pattern reflected in
part the sustained positive spread between prices
of GNMA-guaranteed, pass-through securities
and prices available to originators of governDeposits at savings and loans
Annual rate of change, perce
16
8
Q4
1977
Ql
Q2
Q3
1978
0
Seasonally adjusted. Quarterly averages at annual rates.
ment-guaranteed mortgages under outstanding
FNMA mortgage purchase commitments. Combined, the volume of GNMA-guaranteed, passthrough security issues plus FNMA purchases
of government-underwritten home loans increased significantly in the fourth quarter, to its
highest level of the year.
The average interest rate on new commitments at savings and loan associations for con-
96
Federal Reserve Bulletin • February 1979
ventional home mortgages with 80 percent
loan-value ratios increased more than 1/2 of a
percentage point in the fourth quarter, about in
line with increases in other long-term interest
rates. The rise in mortgage rates may be attributable in part to renewed supply pressures resulting from the slackening in deposit flows at
thrift institutions in the face of continued robust
demand for mortgage credit.
Consumer installment credit outstanding expanded at an annual rate of just over 18 percent
during the fourth quarter, slightly more than the
strong expansion in the third quarter, but somewhat slower than that of the first half. The
moderate increase in credit extensions during
the fourth quarter was about offset by a pick-up
in debt liquidations. Sales of autos at higher
prices remained a significant factor in the growth
of installment credit. Interest rates on automobile credit increased slightly over the quarter,
and other credit terms, such as the average loan
maturity at commercial banks and the downpayment requirements at finance companies,
also continued to tighten.
•
97
Check Processing
at Federal Reserve Offices
James M. Brundy, David B. Humphrey,
and
Myron L. Kwast of the Financial Studies Section, Division
of Research
and
Statistics,
prepared this article.
In fulfilling its responsibilities for ensuring an
efficient and effective payments mechanism for
the nation, the Federal Reserve System operates
a number of payments-mechanism facilities.
These facilities include 48 check-processing
centers that serve as regional and national
clearinghouses for checks deposited at the Federal Reserve by commerc al banks. Federal Reserve Banks have acted as check clearinghouses
since shortly after the enactment of the Federal
Reserve Act in 1913. Today these Federal Reserve facilities provide the infrastructure for the
national check-clearing system, ensuring the
availability of a basic level of check-payments
services nationwide. During 1977 the Federal
Reserve Banks processed more than 13 billion
commercial check items with a total dollar value
in excess of $6.4 trillion.
The clearing of paper checks represents only
one of the payments-mechanism services provided by the Federal Reserve. Two others are
a secure wire transfer service for the movement
of funds between member banks, and the clearing of check-like deposit items electronically on
behalf of automated clearinghouse (ACH) associations. More than 24 million wire transfers
of funds, primarily bank-to-bank transactions,
with a dollar value in excess of $48 trillion,
were processed by the Federal Reserve System
in 1977. ACH clearings totaled around $40
billion, represented by 106 million items. Although checks are now the predominant method
of funds transfer used by the general public,
ACH clearings are an innovative, potentially
NOTE. Carol K. Keyt performed the data manipulations for this article.
lower-cost, and rapidly growing substitute for
check-clearing techniques.
Among other purposes, the Federal Reserve
check-clearing facilities were initially established to eliminate the practice of "nonpar
b a n k i n g , " under which a percentage of the face
value was deducted when a check was paid.
Many banks sought to avoid these remittance
charges and other fees; the result was that
checks were collected through circuitous routes,
making the national check-collection system
slow and cumbersome. Nonpar banking was
therefore thought to impede commerce and economic growth. Checks cleared by the Federal
Reserve System must be paid at face value, and
this requirement has contributed to the virtual
disappearance of nonpar banking. 1
Checks to be cleared through the Federal
Reserve initially reach a Federal Reserve office
from a commercial bank in one of two ways. 2
First, member, and in some cases nonmember,
banks may deposit items directly with a Federal
Reserve office. 3 Second, member and nonmember banks may first send their checks to
their correspondent banks, which, after some
preliminary processing, deposit them with the
1
A more detailed overview of this issue is given
in "Federal Reserve Operations in Payment Mecha-
nisms:
A
Summary,"
FEDERAL RESERVE
BULLETIN,
vol. 62 (June 1976), pp. 481-89. The legal basis for
Federal Reserve participation in check clearing is also
presented.
2
For simplicity, direct U . S . government deposits are
ignored, and indirect deposits, which pass through one
or more correspondent banks, are shown here passing
through only one bank.
3
Nonmember banks are permitted to deposit directly
only items eligible for processing by regional checkprocessing centers (RCPCs); other check-processing
services are provided indirectly to nonmember banks
(and other financial institutions) through member correspondent banks. The RCPC program, begun in the early
1970s, was aimed at increasing the proportion of checks
cleared on an overnight basis.
98
Federal Reserve Bulletin • February 1979
Check-clearing mechanism
Federal Reserve. 4 Thus, the Federal Reserve
acts as a correspondent bank for commercial
banks.
The check-clearing mechanism is illustrated
schematically in the diagram above. If party B
receives a check from party A, drawn on a local
bank in the Dallas Federal Reserve Bank service
area (zone), and deposits that check in the same
local bank A.upon which it is drawn, the check
will not enter clearing channels of either correspondent banks or the Federal Reserve. This
transaction is represented by the dotted lines in
the left half of the diagram. From the bank's
point of view, the deposited check is drawn on
itself, or " o n u s , " and no other bank need be
involved. However, if parties A and B maintain
accounts at two different Dallas banks, the item
can be cleared in two ways. In the first, represented by solid lines in the diagram, bank B,
which receives the deposited check drawn on
bank A, participates in a local clearing arrangement in which banks A and B exchange checks
drawn upon one another, posting them to accounts they hold with one another. In the second, shown by dashed lines, bank B redeposits
4
Because the Federal Reserve requires some
preparatory work before accepting items for deposit,
many smaller banks (both members and nonmembers)
choose to obtain access to check-collection services
through correspondent banks.
the check at the local Federal Reserve Bank,
which will clear the item by crediting the reserve
account of bank B (or its agent), presenting the
check for payment to bank A, and debiting that
reserve account. These procedures concern locally deposited and locally cleared checks; these
checks do not move between Reserve Banks.
A similar sequence occurs when party C,
whose bank is in New York, writes a check
to party B. Party B deposits the check in Dallas
bank B and again sets in motion one of two
clearing arrangements: (1) bank B can send the
check directly to the New York Federal Reserve
Bank for collection (presentment) at bank C
(creating an interzone "direct s e n d " item, represented by a solid line in the right half of
the diagram); or (2) bank B can redeposit the
check (now shown by a dotted line) with the
Dallas Federal Reserve Bank which, in turn,
sends it to the New York Federal Reserve Bank
for presentment at bank C (creating an interzone
deposit between Federal Reserve Banks). 5
In May 1978 the Federal Reserve conducted
a comprehensive survey of the volume of items
5
Another method, bank B sending the check directly
to bank C in New York, is rarely used. Only for checks
written for exceptionally large amounts could the extra
expense of this clearing method be offset by the interest
earned during the few hours saved by this more rapid
clearing procedure.
Check Processing
and the amount of funds cleared through its
check-processing function. 6 Each of the 48
Federal Reserve check-processing offices reported the total number and dollar value of
checks deposited by type of item and class of
depositor. During May 1978, the system cleared
a daily average of more than 51 million items,
with a dollar value of nearly $22 billion. The
results of the May 1978 survey are presented
in tables 1 through 7. In the tables, deposits
6
May was selected as the survey month because
previous studies had indicated that check data for April
and May seem to be relatively free of seasonal distortions. See R . William Powers, " A Survey of Bank
Check V o l u m e s , " Journal of Bank Research,
vol. 6
(Winter 1976), pp. 245-56.
at Federal Reserve
99
Offices
at individual Reserve Banks and Branches and
regional check-processing centers (RCPCs)
have been aggregated to give national (system)
totals and totals for each Federal Reserve District.
LOCAL
AND INTERZONE
DEPOSITS
Of the overall total, nearly two-thirds of the
items deposited were local deposits (from banks
and government agencies within a Federal Reserve office service area); the balance were
interzone or interoffice deposits (from institutions outside the service area). As shown in
table 1, column 3, for each of the 12 Federal
Reserve Districts, local deposits accounted for
1. Number of items deposited at Federal Reserve Banks
Daily average, May 1978
Number of items
Federal Reserve District
Percent of total
Average annual
growth in number,
1973-77
(percent)
Local
Interzone
Local
(1)
(2)
(3)
(4)
(5)
Boston
New York ...
Philadelphia ..
Cleveland
Richmond
Atlanta
2,830,287
3,137,136
1,724,773
1,927,710
2,571,922
4,779,040
1,334,394
2,661,396
808,632
1,477,808
1,882,581
1,334,578
68.0
32.0
45.9
39.9
43.4
42.3
8.4
Chicago
St. Louis
Minneapolis ..
Kansas City ..
Dallas
San Francisco
5,470,145
1,712,159
1,752,448
3,184,980
1,751,441
1,742,520
2,817,603
1,097,163
751,430
1.448.909
1,494,405
1.725.910
32,617,742
18,834,809
System
54.1
68.1
Interzone
8.0
21.8
3.1
5.4
7.5
9.1
66.0
61.0
70.0
68.7
54.0
50.2
34.0
39.0
30.0
31.3
46.0
49.8
8.4
4.4
5.6
6.3
6.7
9.1
63.4
36.6
7.3
56.6
57.7
78.2
2. Dollar value of items deposited at Federal Reserve Banks
Daily average, May 1978
Federal Reserve District
Local deposits
Total
Average
(thousands
of dollars)
(dollars)
Interzone deposits
Total
Average
(thousands
(dollars)
of dollars)
Percent of total
Local
Interzone
(1)
(2)
(3)
(4)
(5)
(6)
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
759,362
1,527,717
531,197
572,558
724,345
1,567,345
268
487
308
297
282
328
713,833
1,959,583
420,018
976,199
1,190,893
928,988
535
736
519
661
633
696
51.6
43.8
55.8
37.0
37.8
62.8
48.4
56.2
44.2
63.0
62.2
37.2
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
1,537,001
423,804
405,532
822,141
549,715
613,915
281
248
231
258
314
352
2,262,395
580,852
428,966
801,406
591,838
1,071,519
803
529
571
553
396
621
40.5
42.2
48.6
50.6
48.2
36.4
59.5
57.8
51.4
49.4
51.8
63.6
10,073,983
309
11,926,490
633
45.8
54.2
System
100
Federal Reserve Bulletin • February 1979
50 percent or more (up to 78 percent) of all
items deposited at Federal Reserve offices. Federal Reserve offices in the Atlanta and San
Francisco Districts experienced the highest
growth in check volume from 1973 to 1977 (9
percent), while the Philadelphia District had the
lowest (3 percent). Over all, system check volume grew at a 7 percent average annual rate
for the period (column 5).
Although more than 63 percent of the items
deposited at Federal Reserve offices were local
items (table 1, column 3), the dollar value of
these items totaled less than 50 percent of the
value of all deposits for eight Federal Reserve
Districts (table 2, column 5): the average value
of a locally deposited check, $309, is substantially less than the average value of checks
deposited interzone, $633 (columns 2 and 4).
The New York and Chicago Districts have the
largest average dollar value for an interzone
deposit item.
CLASSES OF DEPOSITORS
AND DEPOSIT ITEMS
About 28 percent of all deposits are direct
sends—that is, received from member banks in
another Federal Reserve District (table 3, col-
3. Percentage distribution of number of items deposited at Federal Reserve Banks,
by type of depositor1
Daily average, May 1978
Local deposits
Federal Reserve District
Member
banks
Interzone deposits
Nonmember
banks
Government
Federal
Reserve
offices
Directsending banks
Total
(1)
(2)
(3)
(4)
(5)
(6)
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
50.6
52.3
63.2
52.7
41.3
58.6
17.2
1.6
2.6
2.8
16.1
18.2
0
0
2.3
0
0
0
7.3
9.0
6.0
10.2
7.1
6.5
24.7
36.9
25.5
34.1
34.3
15.2
100.0
100.0
100.0
100.0
100.0
100.0
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
58.7
56.7
54.6
68.1
48.7
34.7
6.9
3.3
14.8
.3
3.8
13.9
0
.9
0
.3
0
1.0
8.0
9.6
8.9
7.6
8.9 ,
10.6
26.0
29.4
20.9
23.5
36.7
38.9
100.0
100.0
100.0
100.0
100.0
100.0
53.9
8.6
.3
8.1
28.3
100.0
System
Details may not total 100.0 because of rounding and reporting errors by some banks.
4. Percentage distribution of number of items deposited at Federal Reserve Banks, by type of deposit1
Daily average, May 1978
Local deposits
Federal Reserve
District
Interzone deposits
Total
RCPC
City
Country
Going
interzone
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
(1)
57.5
36.6
50.9
34.1
46.7
62.1
(2)
5.0
11.1
3.7
2.9
3.8
4.4
(3)
1.2
2.3
1.9
0.0
1.0
0
(4)
2.8
4.1
5.9
11.1
6.1
11.7
(5)
1.3
.1
5.7
8.4
.2
0
(6)
23.4
12.7
.1
27.7
36.9
16.0
(7)
5.4
31.6
12.5
15.7
4.4
5.8
(8)
3.3
1.5
19.3
0
.9
0
(9)
100.0
100.0
100.0
100.0
100.0
100.0
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
46.0
28.7
16.8
20.4
37.5
44.1
8.3
16.6
24.1
15.9
7.3
1.2
5.2
10.2
17.3
22.5
8.1
0
6.4
4.4
8.7
9.6
1.0
3.6
.1
1.1
3.1
.2
0
1.4
16.6
15.1
12.4
5.9
15.9
43.5
13.5
15.7
8.3
13.6
20.9
6.3
3.9
8.2
9.3
11.7
9.3
0
100.0
100.0
100.0
100.0
100.0
100.0
41.9
8.3
5.3
6.5
1.4
18.8
13.1
4.7
100.0
System
1
Details may not total 100.0 because of rounding.
Unsorted
RCPC
City
Country
Check Processing
umn 5). Federal Reserve offices also send items
to other Federal Reserve offices, but these interzone deposits account for only about 8 percent
of total deposits and less than one-third of all
interzone deposits.
Member banks account for 86 percent of all
local deposits and 78 percent of all interzone
deposits, for an average of 82 percent of total
deposits made at Federal Reserve offices. Direct
U.S. government deposits of checks at Federal
Reserve banks are very small. Nonmember bank
deposits, although restricted to RCPCs, account
for 9 percent of total deposits.
The distance of the institution upon which the
deposited items are drawn from an RCPC or
a district central city determines when the
depositing bank will have use of the funds
deposited at a Federal Reserve office. Table 4
shows the proportion of items deposited falling
into various categories of " f u n d s availability."
The funds-availability schedule established by
the Federal Reserve for its check-clearing
operations is closely related to the time it normally takes to process, transport, and present
checks for payment at drawee financial institutions. "Regional check-processing center" and
" c i t y " deposit items are drafts on financial
at Federal Reserve
Offices
101
institutions in the same locality as, respectively,
the RCPCs and Federal Reserve offices; delivery
is typically made by courier (under contract with
the Federal Reserve). Due to their proximity to
a Federal Reserve office, depositors of these
items have overnight availability of funds if they
meet cut-off times for deposits. Depositors of
" c o u n t r y " items may have to wait one day or
more before the Federal Reserve will credit their
accounts and thus make funds available.
Country items are drawn on institutions remote
from a Federal Reserve office, and delivery may
be made through the U.S. Postal Service.
Locally deposited items going to another
Federal Reserve office—items going interzone—also have funds availability deferred one
day or more, depending upon whether they are
drawn on city, RCPC, or country financial institutions. Interzone items are often transported
between Federal Reserve offices by contract air
carrier. Unsorted deposit items, the smallest
category in table 4, have undergone the least
predeposit processing. Currently, depositing institutions may not deposit more than 5,000
unsorted items each day at a Federal Reserve
office.
Of the various deposit categories in table 4,
5. Percentage distribution of number of items deposited at Federal Reserve Banks, by size of bank 1
Daily average, May 1978
Size of bank
(de posits in millions of dollars)
Federal Reserve
District
100500
5001,000
More
than
1,000
Nonbank
depositors 2
Total
0-10
10-50
50100
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
.6
.1
.2
.2
.4
1.6
8.7
3.4
2.9
7.7
11.2
15.9
9.4
3.8
3.2
6.8
4.7
11.0
27.3
17.8
10.4
16.9
21.0
29.0
8.0
23.7
18.8
19.3
16.5
14.6
38.4
41.8
55.9
38.9
38.0
19.9
7.6
9.4
8.6
10.2
8.2
8.0
100.0
100.0
100.0
100.0
100.0
100.0
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
.6
.6
3.5
.2
.4
1.0
9.2
7.8
24.4
6.0
5.2
9.9
9.4
5.7
11.2
6.5
5.4
3.2
27.7
15.4
21.5
31.6
18.3
13.8
9.0
21.0
3.6
33.1
13.2
12.0
35.8
38.1
25.9
14.4
46.6
47.5
8.3
11.4
9.9
8.2
10.9
12.6
100.0
100.0
100.0
100.0
100.0
100.0
.7
9.2
7.0
22.4
16.1
35.8
8.8
100.0
System
Memo
Demand deposits held by
commercial banks at other
commercial banks as a percent of total "due to" deposits (member banks only,
March 31, 1978)
.1
.6
1.1
10.4
8.0
Details may not total 100.0 because of rounding.
Includes deposits by Federal Reserve offices, government, and unidentified depositors.
79.9
0
100.0
102
Federal Reserve Bulletin • February 1979
R C P C items form the largest, accounting for
61 percent of all items deposited (both locally
and interzone). The number of city items accounts for 21 percent of total check volume.
SIZE
CLASS
OF BANK
DEPOSITORS
Not surprisingly, the largest banks (including
the largest correspondent banks, measured by
share of " d u e t o " deposits shown in the last
line of table 5) account for the largest number
of items deposited for the system as a whole.
Among the districts, the only exceptions to this
pattern occur in the Atlanta and Kansas City
Districts, where intermediate-sized banks (those
holding from $100 million to $1 billion in
deposit liabilities) deposit the largest share of
items. Nonbank depositors, including other
Federal Reserve offices and government depositors, account for less than 9 percent of total
deposits for the system. These and other details
on deposits by size of bank appear in table 5.
INTERDISTRICT
CHECK
FLOWS
Federal Reserve District offices participate in
interdistrict check-clearing operations in proportions that vary widely among the sending
and receiving districts. At the lowest end of the
scale, only 4.5 percent of the number of items
(and 2.2 percent of the value of those items)
sent from the San Francisco Federal Reserve
District to the New York Federal Reserve offices were sent by Federal Reserve offices in the
San Francisco District (table 6, row 2, column
12). Thus, 95.5 percent of the items came from
direct-sending banks. 7 At the other end of the
scale, 69.2 percent of the number of items
(representing 32.9 percent of the dollar value)
sent from the Minneapolis District to the Atlanta
Federal Reserve offices were sent by Federal
Reserve offices (row 6, column 9). In general,
7
The system reimburses banks for their direct-send
transport costs up to the equivalent cost of first-class
mail.
6. Percentage distribution of number and dollar value of interdistrict deposits at Federal Reserve
offices sent by Federal Reserve offices 1
Daily average, May 1978
Receiving
Federal Reserve
uistrict
Sendinjg Federal Reserve District
Boston
(1)
1. Boston
2. New York
3. Philadelphia
4. Cleveland
5. Richmond
6. Atlanta
7. Chicago
8. St. Louis
9. Minneapolis
10. Kansas City
11. Dallas
12. San Francisco
8.7
(3.6)
16.9
(5.1)
13.4
(4.7)
20.9
(7.3)
23.1
(10.6)
14.2
(4.7)
19.3
(6.5)
14.7
(•5)
27.4
(13.5)
20.0
(7.9)
23.2
(18.3)
New
York
Philadelphia
Cleveland
Richmond
St.
Louis
Minneapolis
Kansas
City
Dallas
San
Francisco
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
18.1
(6.4)
13.6
(5.0)
9.1
(5.3)
33.3
(10.9)
31.5
(10.1)
19.6
(6.5)
29.6
(22.3)
15.9
(9.0)
19.5
(12.7)
29.5
(30.8)
44.0
(35.4)
46.1
(25.3)
47.3
(40.3)
49.8
(33.0)
34.0'
(14.9)
19.0
(5.2)
18.5
(4.9)
19.9
(6.0)
18.0
(4.6)
21.5
(5.9)
26.6
(5.3)
17.0
(17.2)
16.1
(9.0)
14.8
(12.1)
6.9
(6.2)
34.7
(30.9)
18.1
(12.9)
13.1
(11.3)
48.7
(32.0)
45.7
(19.0)
46.7
(20.9)
51.2
(38.7)
50.4
(22.7)
69.2
(32.9)
32.4
(23.0)
67.9
(41.1)
42.5
(31.5)
44.2
(25.3)
40.5
(24.3)
39.7
(24.1)
36.4
(19.5)
38.8
(22.1)
26.6
(13.8)
29.8
(15.2)
41.4
(26.9)
8.5
(3.5)
5.2
(1.3)
8.5
(2.2)
7.7
(2.7)
8.3
(2.2)
5.5
(1.6)
9.2
(2.4)
5.7
(2.6)
16.1
(13.2)
4.8
(1.6)
10.5
(4.6)
4.5
(2.2)
10.8
(3.7)
12.4
(4.9)
10.8
(5.0)
15.5
(8.4)
10.4
(4.6)
13.7
(3.7)
19.5
(33.3)
15.8
(14.5)
11.1
(5.1)
10.7
(3.3)
17.5
(2.7)
16.5
(3.8)
18.0
(2.5)
14.5
(.9)
15.5
(2.7)
29.5
(9.2)
14.9
(3.5)
14.9
(3.6)
8.8
(3.3)
14.2
(12.2)
12.4
(10.6)
22.9
(7.4)
11.5
(4.0)
14.0
(8.3)
12.2
(18.5)
11.9
(8.8)
13.2
(8.6)
19.5
(6.7)
28.3
(11.3)
55.9
(9.5)
26.9
(11.4)
32.6
(14.4)
47.5
(24.7)
47.8
(13.2)
46.5
(10.0)
41.7
(16.1)
21.3
(17.1)
35.8
(16.6)
42.0
(32.3)
32.0
(39.2)
46.7
(36.1)
36.6
(32.2)
24.9
(17.3)
1
The percentages for dollar value appear in parentheses.
This table tells, for example, that 29.6 percent of the number
of items (and 22.3 percent of the dollar value) sent from the
Richmond District and received in the Boston District were
sent by Richmond District Federal Reserve offices (row 1,
Atlanta Chicago
52.2
(33.1)
37.4
(23.4)
64.4
(59.6)
62.3
(44.2)
52.5
(38.1)
33.4
(19.5)
21.6
(4.8)
19.0
(6.5)
17.7
(3.9)
20.5
(5.3)
11.5
(6.6)
30.7
(21.2)
24.5
(13.0)
21.4
(11-5)
31.7
(29.5)
64.1
(34.8)
67.8
(44.9)
30.9
(18.0)
33.1
(15.2)
25.1
(29.4)
18.6
(13.2)
column 5). Thus, the balance, 70.4 percent of the items (and
77.7 percent of the dollar value), were from direct-sending
banks.
These data do not cover clearings outside the Federal Reserve System.
Check Processing
at Federal Reserve
Offices
103
the Federal Reserve offices in the Dallas and
San Francisco Districts participate least in
sending checks from those districts to Federal
Reserve offices in other districts, accounting on
the average for 9 percent and 12 percent, respectively, of the items sent from their districts.
The most active Federal Reserve offices, in
general, are in the Atlanta and Minneapolis
districts; they account for an average of 47
percent and 52 percent, respectively, of all the
items sent from those districts. 8
In all but four cases the Federal Reserve
percentage of the number of items sent is larger
than its percentage of the dollar value of interdistrict deposits. Thus, the average dollar value
of interdistrict checks from Federal Reserve
offices is smaller than the average dollar value
of interdistrict checks from direct-sending
banks. Banks send relatively large checks directly because they can more than compensate
for the greater check-processing costs of direct
sending through more rapid availability of funds
than the Federal Reserve provides. In 121 of
the 132 interdistrict sending combinations in
table 6, the share of items sent by direct-sending
banks exceeds 50 percent of the total interdistrict deposits at Federal Reserve offices.
reflects the proportion of demand deposits plus
other 4 "checking" deposits at these institutions
in each district. The impact of N O W accounts
in New England (Boston District) and 4 'checking accounts" at mutual savings banks in New
York State (New York District) is evident in
table 7, which shows that those two districts
have the largest proportions of nonbank presentee institutions.
PRESENTMENTS
SUMMARY
FEDERAL
RESERVE
BY
OFFICES
Checks have to be physically presented to
drawee financial institutions before payment is
made and funds are transferred. For the system
as a whole, 58 percent of all items presented
for payment by Federal Reserve offices are presented to member banks, while 35 percent are
presented to nonmember banks. These and other
results of the survey concerning presentments
by Federal Reserve offices are listed in table 7.
Included under 4 ' O t h e r s " are items involving
nonbank institutions: drafts on negotiable order
of withdrawal (NOW) accounts in thrift institutions in New England and checks drawn on
mutual savings banks in New York State. The
distribution of items presented to member and
nonmember banks by Federal Reserve Districts
8
These data show interdistrict deposits at Federal
Reserve offices only. N o clearing outside the Federal Reserve System is included.
7. Percentage distribution of number of items
presented for payment by Federal Reserve
Banks, by type of presentee institution 1
Daily average, May 1978
Federal Reserve
District
NonMember member
banks
banks
Others2
Total
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
46.2
80.0
58.7
76.4
71.0
43.4
33.9
8.6
34.9
23.4
26.6
48.3
19.9
11.4
6.4
.3
2.5
8.3
100.0
100.0
100.0
100.0
100.0
100.0
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Fransisco
53.8
37.3
57.0
53.6
60.9
54.6
42.7
53.6
40.7
44.4
33.6
38.0
3.4
9.1
2.3
2.0
5.5
7.4
100.0
100.0
100.0
100.0
100.0
100.0
57.9
35.0
7.2
100.0
System
1
2
Details may not total 100.0 because of rounding.
Includes items to thrift institutions and unclassified items.
This article has presented some results of the
Federal Reserve's May 1978 survey of its
check-clearing function. While, by number,
most checks cleared by the Federal Reserve are
locally deposited items, the dollar value of interzone checks is the greater by far. T h u i , the
average value of an interzone check is more than
twice that of an item deposited and cleared
locally. Member banks account for 82 percent
of all checks deposited at the Federal Reserve.
Also, funds from 82 percent of the items deposited are normally available the next day. Banks
with total deposits of more than $1 billion
deposit around 36 percent of all the checks
submitted to the Federal Reserve, a proportion
consistent with their position as major correspondent banks. Finally, interdistrict check
flows suggest that the Federal Reserve is only
one of many participants in the interdistrict
processing of checks.
•
104
Survey of Time and Savings Deposits
at Commercial Banks, October 1978
David M. Lefever of the Board's Division of
Research and Statistics prepared this article.
Total time and savings deposits at insured commercial banks, not adjusted for seasonal variation, expanded more than 2Vi percent during the
period from July 27 to October 25, 1978, up
slightly from the 2 percent increase over the
preceding survey quarter. 1 Despite further increases in market interest rates above regulatory
ceilings, inflows of interest-bearing deposits
subject to rate ceilings totaled more than $3^2
billion during the July-October period, near the
average of $4 billion per quarter since April
1977. To help finance expansion in their loans,
banks also raised $12 billion through the issuance of large-denomination ($100,000 or
more) time deposits in the latest survey period.
Net sales of large-denomination time deposits,
which are not subject to interest rate ceilings,
1
Surveys of time and savings deposits (STSD) at
all member banks were conducted by the Board of
Governors in late 1965, in early 1966, and quarterly
in 1967. In January and July 1967 the surveys also
included data for all insured nonmember banks collected
by the Federal Deposit Insurance Corporation (FDIC).
Since the beginning of 1968 the Board of Governors
and the FDIC have conducted the joint quarterly surveys
to provide estimates for all insured commercial banks
based on a probability sample of banks. The results of
all earlier surveys have appeared in previous issues of
t h e FEDERAL RESERVE BULLETIN f r o m 1 9 6 6 t o
1978,
most recently November 1978.
The current sample—designed to provide estimates
of the composition of deposits—includes about 560
insured commercial banks. For details of the statistical
methodology, see "Survey of Time and Savings Deposits, July 1976," in BULLETIN, vol. 63 (December
1976), pp.
986-1000.
Detailed data for the current survey (formerly contained in appendix tables) are available on request from
Publications Services, Division of Support Services,
Board of Governors of the Federal Reserve System,
Washington, D . C .
20551.
had averaged $11 billion for the five preceding
survey quarters.
The growth of total small-denomination (less
than $100,000) time and savings deposits reflected continued rapid inflows of the six-month
money market certificates (MMCs). The ceiling
rate on M M C s varies weekly with changes in
the average auction yield on new issues of
six-month Treasury bills. Although a substantial
portion of these funds appears to have been
shifted f r o m other types of bank deposits, the
M M C s also attracted funds that otherwise would
have been invested in market instruments. Savings and small-denomination time deposits excluding M M C s fell $5 billion, substantially
more than the decrease of $l1/2 billion during
the previous survey quarter.
SAVINGS
DEPOSITS
During the July-October period, savings deposits at commercial banks, not seasonally adjusted, declined for the second straight survey
quarter—the first declines since the survey of
January 1970. The net outflow of savings deposits during the latest survey period, amounting to $400 million, was, however, substantially
less than the net decline of $l!/2 billion in the
previous period. The net outflow of savings
deposits during the last two survey quarters
reflected rising rates on alternative short-term
instruments: Treasury securities, shares of
money market mutual funds, and M M C s . By
the end of October, the maximum allowable
yield on savings deposits was more than 2Vi
percentage points below rates on 90-day Treasury bills and money market mutual funds, and
more than 3 3A percentage points below the effective yield on M M C s .
Outflows of savings deposits were concen-
Survey of Time and Savings Deposits
trated in accounts held by individuals and domestic governmental units; deposits in these
categories declined $850 million and $150 million, respectively. Meanwhile, businesses increased their holdings of savings deposits more
than $550 million, after a modest decline during
the previous survey quarter and virtually no net
inflow over the preceding year. For each of the
three major categories of savings deposits, a
slightly larger proportion of banks paid the
ceiling rate of interest in the October survey than
in July. Nevertheless, the impact of these increases was so small that the average rate paid
on all new issues of savings deposits, weighted
by the amount of deposits outstanding, remained
unchanged from the July survey at 4.93 percent.
105
SMALL-DENOMINA TION
TIME DEPOSITS
The outstanding level of interest-earning,
small-denomination time deposits—consisting
of all maturity categories, including MMCs,
individual retirement accounts (IRAs), and
Keogh accounts—rose $4 billion (not seasonally
adjusted) during the July-October period to
nearly $180 billion, following an increase of $3
billion in the previous quarter. During the survey period, the outstanding level of MMCs
jumped $8% billion, compared with $5!/2 billion
during the first two months following their introduction on June 1. Nearly all other categories
of small time deposits maturing in less than six
1. Types of time and savings deposits held by insured commercial banks on survey dates, April 26,
July 26, and October 25, 1978
Deposits
Number of issuing banks
Type of deposit, denomination,
and original maturity
Millions of dollars
Apr. 26
July 26
Oct. 25
Percentage change
Apr. 26
July 26
Oct. 25
Apr. 26July 26
July 26Oct. 25
Total time and savings deposits
14,339
14,338
14,299
564,410
576,366
591,754
2.1
2.7
Savings
Issued to:
Individuals and nonprofit organizations
Partnerships and corporations operated for
profit (other than commercial banks)
Domestic governmental units
All other
14,339
14,338
14,299
222,065
220,583
220,080
-.7
-.2
14,339
14,338
14,299
205,843
204,847
203,980
-.5
-.4
9,754
8,363
1,081
9,989
8,023
1,268
9,860
8,287
1,237
10,679
5,427
116
10,646
4,954
137
11,198
4,788
114
-.3
-8.7
17.8
5.2
-3.4
-16.9
9,434
9,364
9,329
2,549
2,770
2,992
8.7
8.0
9,102
10,427
5,381
13,838
IRA and Keogh Plan time deposits, 3 years or
more
Money market certificates,
$10,000 or more,
exactly 6 months 1
Other interest-bearing time deposits, less than
$100,000
Issued to:
Domestic governmental units
30 up to 90 days
90 up to 180 days
180 days up to 1 year
1 year and over
Other than domestic governmental units
30 up to 90 days
90 up to 180 days
180 days up to 1 year
1 up to 2i/i years 2
2l/z up to 4 years
4 up to 6 years22
6 up to 8 years
8 years and over * 2
157.2
14,102
14,095
14,008
169,674
167,185
162,586
-1.5
-2.8
11,135
5,153
8,657
5,132
8,748
14,102
6,439
11,635
8,605
13,832
12,750
12,610
9,455
10,873
4,770
7,961
5,539
8,867
14,092
6,125
11,700
8,458
13,769
12,902
13,044
10,765
6,186
10,643
4,904
7,541
5,439
8,173
14,008
5,514
11,439
8,176
13,751
12,822
12,920
10,965
7,789
4,219
865
1,273
825
1,255
165,455
5,886
30,634
3,105
33,941
19,154
52,081
20,654
4,006
918
1,166
666
1,256
163,178
5,413
29,392
3,156
32,857
18,346
50,850
21,738
1,427
3,694
980
1,084
614
1,015
158,893
4,369
28,732
3,239
30,820
17,384
49,339
22,721
2,288
-5.0
6.2
-8.5
-19.3
0.0
-1.4
-8.0
-4.1
1.6
-3.2
-4.2
-2.4
5.2
-7.8
6.7
-7.0
-7.8
-19.2
-2.6
-19.3
-2.2
2.7
-6.2
-5.2
-3.0
4.5
60.3
11,369
11,531
11,789
164,616
174,048
185,907
5.7
6.8
Non-interest-bearing time deposits
Less than $100,000
$100,000 or more
1,650
1,379
667
1,447
1,177
658
1,734
1,416
687
3,999
623
3,376
A,212
694
3,578
4,223
711
3,511
6.8
11.4
6.0
-1.2
2.5
-1.9
Club accounts (Christmas savings, vacation,
or similar club accounts)
9,246
9,550
9,225
1,508
2,128
2,128
41.1
.0
Interest-bearing tijne deposits, $100,000 or more.
1
2
Issuance authorized beginning June 1, 1978.
Excludes all IRA and Keogh Plan accounts with original maturity
of 3 years or more.
NOTE.—All banks that had either discontinued offering or never
offered certain types of deposits as of the survey date are not counted
as issuing banks. However, small amounts of deposits held at banks
that had discontinued issuing certain types of deposits are included
in the amounts outstanding.
Details may not add to totals because of rounding.
106
Federal Reserve Bulletin • February 1979
2. Small-denomination time and savings deposits held by insured commercial banks on October 25, compared
with July 26, 1978, by type of deposit, by most common rate paid on new deposits in each category,
and by size of bank
Deposit group, original
maturity, and distribution of deposits by
most common rate
All banks
Size of bank
(total deposits in millions of dollars)
All banks
Less than 100
Oct. 25
July 26
Oct. 25
July 26
100 and over
Oct. 25
July 26
Less than 100
Oct. 25
July 26
Oct. 25
July 26
100 and over
Oct. 25
July 26
Amount of deposits (in millions of dollars).
or percentage distribution
Number of banks, or percentage distribution
Savings deposits
Individuals and nonprofit organizations
Issuing banks
14,299
Distribution, t o t a l . . .
100
4.00 or less
4.0
8.3
4.01-4.50
4.51-5.00
87.6
Paying ceiling
rate1...
87.6
Size of bank
(total deposits in millions of dollars)
14,338
100
4.1
8.4
87.5
87.5
13,226
100
4.1
8.5
87.3
87.3
13,265
100
4.1
8.7
87.2
87.2
1,073
100
2.8
5.7
91.5
91.5
1,073 203,980 204,847
100
100
100
3.8
3.2
2.9
5.0
7.0
7.1
91.2
90.1
89.7
91.2
90.1
89.7
78,279
100
3.7
8.6
87.7
87.7
78,011 125,701 126,836
100
100
100
3.6
2.9
2.5
9.3
6.0
5.8
87.2
91.6
91.3
87.2
91.6
91.3
Partnerships and corporations
Issuing banks
Distribution, t o t a l . . .
4.00 or less
4.01-4.50
4.51-5.00
Paying ceiling
rate1...
9,860
100
1.4
4.6
94.0
93.8
9,989
100
1.6
7.4
91.0
90.8
8,803
100
1.5
4.7
93.8
93.5
8,932
100
1.7
7.9
90.4
90.2
1,057
100
.9
3.4
95.7
95.7
1,057
100
.8
3.4
95.8
95.8
11,198
100
.4
3.8
95.8
95.7
10,646
100
.8
4.4
94.8
94.8
3,467
100
1.0
3.4
95.5
95.5
3,265
100
2.1
5.8
92.1
92.1
7,731
100
.2
4.0
95.9
95.9
7,381
100
.2
3.8
96.0
96.0
Domestic govt, units
Issuing banks
Distribution, t o t a l . . .
4.00 or less
4.01-4.50
4.51-5.00
Paying ceiling
rate1...
8,287
100
2.3
7.5
90.2
89.9
8,023
100
2.4
9.5
88.1
88.1
7,552
100
2.5
8.1
89.4
89.1
7,293
100
2.6
10.1
87.3
87.3
735
100
.1
1.9
97.9
97.9
730
100
1
3.4
96.4
96.4
4,788
100
1.1
3.7
95.3
95.2
4,954
100
1.1
3.6
95.3
95.3
2,618
100
1.8
6.1
92.1
91.9
2,979
100
1.7
4.6
93.7
93.7
2,170
100
.2
• .8
99.1
99.1
1,976
100
.1
2.1
97.8
97.8
All other
Issuing banks
Distribution, t o t a l . . .
4.00 or less
4.01-4.50
4.51-5.00
Paying ceiling
rate1...
1,237
100
12.7
6.7
80.7
80.7
1,268
100
13.6
19.0
67.4
67.4
1,102
100
13.9
7.5
78.6
78.6
1,106
100
15.3
21.8
62.9
62.9
135
100
22.4
162
100
22.0
114
100
2.3
2
137
100
21.6
35
100
5.2
2
104
100
21.0
98.0
98.0
97.7
97.7
98.4
98.4
()
79
100
1.0
2
97.6
97.6
94.8
94.8
33
100
3.2
.l
96.7
96.7
99.0
99.0
99.0
99.0
IRA and Keogh Plan time
deposits, 3 years or
more
Issuing banks
Distribution, total
6.00 or less
6.01-7.00
7.01-7.50
7.51-7.75
Paying ceiling
ratei...
9,329
100
3.4
7.0
31.2
58.4
34.2
9,338
100
4.1
7.8
37.0
51.0
23.4
8,348
100
3.6
7.5
31.9
57.1
33.0
8,352
100
4.3
8.3
37.8
49.6
22.6
980
100
1.8
2.8
25.8
69.7
44.4
986
100
2.7
3.8
30.3
63.2
30.4
2,992
100
1.2
2.6
24.1
72.1
46.6
2,760
100
2.8
2.4
29.8
65.0
34.6
1,167
100
.9
3.6
28.6
66.8
39.1
1,090
100
2.0
3.2
38.7
56.1
29.4
1,825
100
1.3
1.9
21.2
75.5
51.4
1,669
100
3.3
1.8
24.0
70.9
38.0
Money market certificates,
$10,000 or more, 6
months 3
10,182
Issuing banks
100
Distribution, total
1.9
7.25 or less
4.8
7.26-7.50
7.51-8.00
7.1
8.01-8.56
86.1
Paying ceiling
rate1...
67.2
8,928
100
9.4
90.6
.0
.0
59.3
9,127
100
2.1
5.2
7.5
85.2
65.1
7,891
100
10.4
89.6
.0
.0
55.7
1,055
100
1
1.5
4.2
94.2
85.3
1,036
100
1.7
98.3
.0
.0
86.6
13,806
100
1.0
1.7
2.5
94.9
85.0
5,342
100
3.0
97.0
.0
•0
80.3
5,309
100
2.1
3.6
2.8
91.4
75.5
1,814
100
5.6
94.4
.0
.0
70.5
8,497
100
.2
.5
2.3
97.0
91.0
3,528
100
1.7
98.3
.0
.0
85.3
Time deposits less than
$100,000
Domestic govt, units:
30 up to 90 days
Issuing banks
Distribution, t o t a l . . .
4.50 or less
4.51-5.00
5.01-5.50
5.51-8.00
Paying ceiling
rate1...
4,904
100
.1
58.5
5.8
35.6
11.5
4,770
100
.7
50.2
14.8
34.3
.2
4,227
100
2
677
100
.8
69.8
5.1
24.3
16.2
676
100
1.6
65.5
6.6
26.2
1.1
980
100
.3
47.9
6.4
45.4
15.7
918
100
1.4
43.2
5.8
49.6
2
678
100
2
56.6
5.9
37.4
10.8
4,094
100
.6
47.6
16.1
35.7
2
43.5
7.8
48.7
9.3
495
100
.1
34.3
7.4
58.2
2
302
100
.8
57.8
3.2
38.2
29.9
423
100
2.9
53.7
4.0
39.5
2
90 up to 180 days
Issuing banks
Distribution, t o t a l . . .
4.50 or less
4.51-5.00
5.01-5.50
5.51-8.00
Paying ceiling
rate1...
7,541
100
.1
11.5
70.8
17.6
3.4
7,921
100
.1
16.9
65.5
17.5
.2
6,708
100
2
7,085
100
2
1,084
100
.1
5.1
68.9
25.9
7.6
1,162
100
.1
13.9
62.8
23.3
.9
836
100
2
17.9
65.0
17.1
2
836
100
.7
8.2
70.2
20.9
1.4
727
100
2
11.8
70.9
17.3
2.5
833
100
.7
9.0
70.2
20.1
10.2
5.3
69.3
25.4
3.2
17.2
62.3
20.5
2
357
100
.2
4.7
68.1
27.0
16.7
326
100
.2
5.5
63.8
30.4
3.2
For notes see end of table.
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
()
Survey of Time and Savings Deposits
107
TABLE 2—Continued
All banks
Deposit group, original
maturity, and distribution of deposits by
most common rate
Size of bank
(total deposits in millions of dollars)
Less than 100
Oct. 25
July 26
Oct. 25
July 26
All banks
100 and over
Oct. 25
July 26
Size of bank
(total deposits in millions of dollars)
Less than 100
Oct. 25
July 26
Oct. 25
July 26
100 and over
Oct. 25
July 26
Amount of deposits (in millions of dollars),
or percentage distribution
Number of banks, or percentage distribution
Time deposits, less than
$100,000 (cont.)
Domestic govt.
units (cont.)
180 days up to 1 year
Issuing banks
Distribution, total —
4.50 or less
4.51-5.00
5.01 5.50
5.51 8.00
Paying ceiling
rate1...
5,416
100
2
5,488
100
2
4,795
100
2
4,820
100
2
621
100
2
668
100
2
614
100
2
664
100
2
432
100
2
464
100
2
181
100
2
201
100
2
6.8
67.2
26.0
8.6
9.7
61.7
28.6
3.6
67.2
25.8
7.6
10.1
61.3
28.5
3.3
67.1
28.0
16.6
6.7
64.0
29.3
6.0
2.0
63.7
34.3
14.6
3.8
43.0
53.3
11.4
.7
65.9
33.5
8.0
38.6
59.4
11.2
5.0
58.6
36.4
30.5
7.8
53.2
39.0
12.0
1 year and over
Issuing banks
Distribution, total. . .
5.00 or less
5.01-5.50
5.51-6.00
6.01-8.00
Paying ceiling
rate1...
8,170
100
1.3
4.0
58.0
36.7
3.7
8,685
100
1.1
3.3
64.2
31.4
1.3
7,376
100
1.0
4.0
57.8
37.2
3.0
7,872
100
.9
3.1
64.3
31.7
1.1
793
100
4.3
4.4
59.0
32.3
9.7
813
100
2.7
5.4
63.0
28.8
3.9
1,013
100
.6
2.2
55.4
41.8
10.9
1,245
100
.2
1.4
52.8
45.7
6.7
854
100
.1
1.8
56.9
41.2
8.5
939
100
.1
.7
60.0
39.1
5.7
159
100
3.2
4.5
47.4
44.9
23.9
306
100
.4
3.3
30.6
65.7
9.5
Other than domestic
govt, units:
30 up to 90 days
Issuing banks
Distribution, total...
4.50 or less
4.51-5.00
Paying ceiling
rate1...
5,514
100
.8
99.2
99.2
6,125
100
2.8
97.2
97.2
4,635
100
.7
99.3
99.3
5,247
100
3.0
97.0
97.0
879
100
1.3
98.7
98.7
878
100
1.7
98.3
98.3
4,346
100
1.4
98.6
98.6
5,384
100
4.5
95.5
95.5
902
100
2
100.0
100.0
()
1,119
100
.1
99.9
99.9
3,444
100
1.7
98.3
98.3
4,266
100
5.7
94.3
94.3
90 up to 180 days
11,439
Issuing banks
100
Distribution, total. . .
.6
4.50 or less
4.6
4.51-5.00
94.7
5.01-5.50
94.2
Paying ceiling
rate1...
11,700
100
.6
5.1
94.3
94.3
10,384
100
.7
4.9
94.4
93.9
10,656
100
.7
5.3
94.1
94.1
1,055
100
2
1,044
100
2
28,732
100
2
29,380
100
2
11,429
100
2
11,643
190
2
17,304
100
2
17,737
100
2
2.3
97.7
97.6
3.3
96.7
96.6
4.7
95.3
94.9
4.9
95.0
94.6
4.6
95.4
95.4
3.9
96.0
96.0
4.8
95.2
94.6
5.6
94.4
93.7
8,458
100
.6
4.2
95.2
95.2
7,296
100
.5
4.1
95.4
95.4
7,576
100
.4
4.3
95.3
95.3
880
100
2.0
2.3
95.6
95.6
882
100
1.9
3.2
94.9
94.9
3,229
100
.2
1.4
98.4
98.4
3,140
100
.2
.8
99.1
99.1
1,626
100
2
1,606
100
2
2.5
97.5
97.5
13,769
100
2
12,708
100
2
1,066
100
2
1,060
100
2
.4
99.6
98.2
1.1
98.9
97.6
30,819
100
.1
.6
99.3
99.0
32,788
100
2
2.0
98.0
98.0
()
98.1
98.0
12,684
100
.6
2.2
97.2
97.2
2 Vi up to 4 years
12,822
Issuing banks
Distribution, total. . . 100
2.1
6.00 or less
97.9
6.01-6.50
97.7
Paying ceiling
rate1...
12,902
100
1.9
98.1
97.1
11,768
100
2.2
97.8
97.8
11,853
100
1.9
98.1
97.1
1,054
100
1.3
98.7
96.8
1,049
100
1.7
98.3
97.4
4 up to 6 years
12,920
Issuing banks
Distribution, total. . . 100
1.6
6.50 or less
10.0
6.51-7.00
88.4
7.01-7.25
88.2
Paying ceiling
rate1...
13,044
100
.6
12.2
87.2
86.9
11,876
100
1.7
10.4
87.9
87.7
12,002
100
.5
12.7
86.8
86.6
1,043
100
.3
5.3
94.4
93.9
6 up to 8 years
10,965
Issuing banks
Distribution, total... 100
1.5
7.00 or less
3.2
7.01-7.25
95.3
7.26-7.50
95.3
Paying ceiling
rate1...
10,765
100
.6
4.8
94.6
94.5
9,950
100
1.6
3.2
95.2
95.2
9,766
100
.3
5.0
94.6
94.6
1,015
100
.4
3.7
95.9
95.3
180 days up to 1 year
Issuing banks
Distribution, total. . .
4.50 or less
4.51 5.00
5.01 5.50
Paying ceiling
rate1...
()
8,176
100
.6
3.9
95.5
95.5
1 up to 2 V4 years
13,751
Issuing banks
100
Distribution, total. . .
.5
5.00 or less
2.0
5.01 5.50
97.4
5.51-6.00
97.3
Paying ceiling
rate*...
For notes see end of table.
()
( 1.9
)
( 7.0
)
()
()
(4.9
)
()
()
()
()
()
()
()
()
()
()
(2.0
)
()
()
()
()
()
()
.9
99.1
99.1
1,603
100
.3
.3
99.4
99.4
1,534
100
.3
.6
99.1
99.1
20,535
100
2
11,239
100
2
12,253
100
2
1.4
98.6
98.3
19,580
100
.2
.7
99.1
99.1
.7
99.3
99.3
.4
99.6
98.8
2.5
97.5
96.8
17,352
100
1.7
98.3
98.0
18,311
100
1.1
98.9
98.5
10,154
100
2.2
97.8
97.8
10,797
100
.9
99.1
98.9
7,198
100
1.0
99.0
98.3
7,514
100
1.5
98.5
98.0
1,043
100
1.7
7.3
91.0
90.5
49,260
100
.8
7.4
91.8
91.4
50,772
100
.9
9.3
89.8
89.6
27,196
100
1.2
10.2
88.7
88.2
27,895
100
.5
12.9
86.7
86.5
22,064
100
.4
4.0
95.6
95.3
22,877
100
1.3
5.0
93.7
93.3
998
100
3.3
2.6
94.1
93.2
22,667
100
.5
2.4
97.1
96.9
21,668
100
.5
1.6
97.9
97.8
10,046
100
.6
2.0
97.4
97.4
9,718
100
2
12,621
100
.4
2.8
96.8
96.5
11,950
100
.9
1.7
97.4
97.1
()
()
()
()
1.4
98.6
98.6
()
()
108
Federal Reserve Bulletin • February 1979
TABLE 2—Continued
Size of bank
(total deposits in millions of dollars)
Deposit group, original
maturity, and distribution of deposits by
most common rate
100 and over
Less than 100
Oct. 25
July 26
Size of bank
(total deposits in millions of dollars)
All banks
All banks
Oct. 25
July 26
Oct. 25
July 26
Number of banks, or percentage distribution
Less than 100
Oct. 25
July 26
Oct. 25
July 26
100 and over
Oct. 25
July 26
Amount of deposits (in millions of dollars),
or percentage distribution
Time deposits less than
$100,000 (cont.)
Other than domestic
govt, units (cont.)
8 years and over 3
Issuing banks
Distribution, total
7.25 or less
7.26-7.50
7.51-7.75
Paying ceiling
rate1...
7,789
100
1.7
6.3
92.0
92.0
6,186
100
1.5
3.6
94.9
94.9
6,952
100
1.4
6.0
92.6
92.6
5,419
100
1.3
2.9
95.9
95.9
837
100
4.1
8.9
87.0
87.0
767
100
3.5
8.9
87.6
87.6
2,288
100
5.1
14.8
80.1
80.1
1,427
100
3.5
28.4
68.1
68.1
732
100
.2
3.0
96.8
96.8
315
100
.7
2.7
96.6
96.6
1,557
100
7.4
20.3
72.3
72.3
1,112
100
4.3
35.7
60.0
60.0
Club accounts
Issuing banks
Distribution, total
0.0D
0.01-4.00
4.01-4.50
4.51-5.50
9,225
100
44.0
16.2
6.9
32.8
9,550
100
48.3
14.6
7.6
29.5
8,438
100
45.6
16.4
6.9
31.1
8,735
100
50.2
14.7
7.6
27.5
787
100
27.2
14.7
6.4
51.6
815
100
28.5
13.6
7.0
50.9
2,096
100
19.1
13.4
8.7
58.8
2,121
100
24.8
15.3
12.8
47.2
892
100
27.0
21.2
6.5
45.3
912
100
36.5
19.6
13.3
30.7
1,204
100
13.3
7.6
10.3
68.8
1,209
100
16.1
12.0
12.3
59.6
1
See BULLETIN Table 1.16 on page A10 for the ceiling rates that
existed
at the time of each survey.
2
Less than .05 per cent.
3
Issuance authorized June 1, 1978.
NOTE.—All banks that either had discontinued offering or had
never offered particular types of deposits as of the survey date are not
counted as issuing banks. Moreover, the small amounts of deposits
held at banks that had discontinued issuing deposits are not included
in the amounts outstanding. Therefore, the deposit amounts shown
in Table 1 may exceed the deposit amounts shown in this table.
The most common interest rate for each instrument refers to the
stated rate per annum (before compounding) that banks paid on the
largest dollar volume of deposit inflows during the 2-week period
immediately preceding the survey date.
Details may not add to totals because of rounding.
years declined over the period, while those with
longer maturities rose moderately. IRAs and
Keogh accounts grew steadily, increasing $200
million to a level of almost $3 billion.
Reflecting a diversion of deposits to MMCs,
as well as the further rise in interest rates on
alternative instruments above the regulatory
ceiling rates, the outstanding level of small-denomination time deposits subject to fixed ceilings declined sharply. Outflows from such accounts totaled $4V2 billion, twice as large as
the drop during the previous survey quarter.
Among issues other than those to governmental
units, there were substantial declines in all but
one of the maturity categories under six years,
suggesting that a large portion of MMC balances
represents funds that were shifted from these
accounts, particularly deposits with maturities
of two and one-half years up to six years, which
dropped $4Vi billion. However, the consistently
popular deposits with original maturities of six
years or more—including the new eight-year
certificates authorized on June 1—continued to
rise, albeit at a reduced pace. The net inflow
to these accounts was almost $2 billion, about
$500 million less than the increase in the previous survey period, and represented the smallest percentage increase for any survey quarter
since introduction of the six-year certificate with
a higher ceiling rate in 1974.
Outstanding levels of all maturities of smalldenomination time deposits issued to governmental units, except those maturing from 30 up
to 90 days, registered declines. Over all, such
deposits declined $300 million during the survey
quarter compared with a decrease of $200 million during the previous survey period. MMCs
may have attracted a small amount of these
funds; but the decline seems to have been due
largely to a diversion to other instruments in
response to the general rise in interest rates.
Although banks may pay 8 percent on all time
deposits issued to governments without regard
to maturity, their offering rates are in general
low because they are usually required to pledge
securities against such accounts. In response to
rising market rates of interest, a growing
proportion of banks paid the maximum allowable rate on all categories of time deposits issued
to governmental units.
Survey of Time and Savings Deposits
109
3. Average of most common interest rates paid on various categories of time and savings deposits at insured
commercial banks on October 25, 1978
Bank size (total deposits in millions of dollars)
Type of deposit, holder, and
original maturity
All size
groups
Less
than 20
20 up
to 50
50 up
to 100
100 up
to 500
500 up
to 1,000
1,000
and over
Savings and small-denomination time deposits
5.72
5.82
5.88
5.75
5.71
5.64
5.59
Savings, total
Individuals and nonprofit organizations
Partnerships and corporations
Domestic governmental units
All other
4.93
4.92
4.98
4.97
4.95
4.94
4.93
5.00
4.94
5.00
4.93
4.92
4.94
4.96
4.48
4.85
4.84
4.99
4.94
5.00
4.95
4.95
4.99
5.00
4.99
4.91
4.90
4.98
4.99
5.00
4.94
4.94
4.97
4.99
5.00
IRA and Keogh Plan time deposits, 3 years or more
7.74
7.67
7.76
7.63
7.76
7.77
7.76
Money market certificates, exactly 6 months
8.46
8.07
8.38
8.52
8.51
8.51
8.54
Other time deposits in denominations of less than $100,000,
total
Domestic governmental units, total
30 up to 90 days
90 up to 180 days
180 days up to 1 year
1 year and over
6.53
6.14
6.10
5.85
6.12
6.51
6.42
6.04
6.10
5.75
5.88
6.40
6.62
6.15
6.12
5.52
6.30
6.50
6.59
6.36
6.15
6.09
6.78
6.70
6.54
6.04
6.32
5.79
5.95
6.44
6.51
6.43
6.13
6.56
6.39
6.83
6.45
6.38
5.93
6.52
6.84
6.96
6.53
4.98
• 5.47
5.49
5.99
6.48
7.22
7.49
7.66
6.45
5.00
5.47
5.48
5.99
6.44
7.19
7.48
7.73
6.63
5.00
5.50
5.50
6.00
6.50
7.21
7.50
7.75
6.60
5.00
5.45
5.49
6.00
6.49
7.23
7.49
7.71
6.55
4.97
5.50
5.47
6.00
6.49
7.23
7.49
7.70
6.51
4.94
5.50
5.49
6.00
6.50
7.24
7.50
7.57
6.45
5.00
5.44
5.50
5.99
6.49
7.23
7.49
7.61
3.77
3.19
3.26
3.22
3.89
3.56
4.56
Other than domestic governmental units, total
30 up to 90 days
90 up to 180 days
180 days up to 1 year
1 up to 2 Vi years
2Vi up to 4 years
4 up to 6 years
6 up to 8 years
Over 8 years
Club accounts1
1
Club accounts are excluded from all of the above categories.
NOTE.—The average rates were calculated by weighting the most
common rate reported on each type of deposit at each bank by the
Together with the increase in rates paid on
these governmental deposits, rates on small-denomination issues to nongovernmental entities
rose in five of the eight categories. These developments, coupled with the rise in interest
payments associated with MMCs and IRA and
Keogh accounts, acted to raise the weightedaverage rate paid on all small-denomination
time and savings deposits 7 basis points to 5.72
percent.
OTHER
TIME
DEPOSITS
Growth of bank assets, coupled with comparatively slow growth in deposits subject to interest
rate ceilings, led banks to increase the out-
amount of that type of deposit outstanding. All banks that had either
discontinued offering or never offered particular types of deposit as
of the survey date were excluded from the calculations for those
specific types of deposits.
standing volume of interest-bearing, large-denomination time deposits almost $12 billion, up
from the $9L/Z billion increase of the previous
survey. Large negotiable certificates of deposit
at weekly reporting banks (not shown in the
table) accounted for 50 percent of the total
advance. Non-interest-bearing time deposits,
principally escrow accounts and compensating
balances held in conjunction with loans, decreased $50 million, following an increase of
$275 million in the preceding period. Reflecting
the seasonal pattern of deposit flows, the level
of club accounts remained virtually unchanged
at just over $2 billion. About 45 percent of the
offering banks, holding a fifth of outstanding
deposits, paid no interest on club accounts.
110
Federal Reserve Bulletin • February 1979
Staff Studies
The staffs of the Board of Governors of the
Federal Reserve System and of the Federal
Reserve Banks undertake studies that cover a
wide range of economic and financial subjects,
and other staff members prepare papers related
to such subjects. In some instances the Federal
Reserve System finances
similar studies by
members of the academic
profession.
From time to time the results of studies that
are of general interest to the professions
and
to others are summarized—or
they may be
printed in full—in this section of the FEDERAL
RESERVE B U L L E T I N .
STUDY
SUMMARY
TIE-INS BETWEEN THE GRANTING
BANK
Robert
In all cases the analyses and conclusions set
forth are those of the authors and do not necessarily indicate concurrence
by the Board of
Governors, by the Federal Reserve Banks, or
by the members of their staffs.
Single copies of the full text of each of the
studies or papers summarized in the BULLETIN
are available in mimeographed
form. The list
of Federal Reserve Board publications
at the
back of each BULLETIN includes a separate
section entitled "Staff Studies"
that lists the
studies for which copies are currently
available
in mimeographed
form.
HOLDING
OF CREDIT AND SALE OF INSURANCE
COMPANIES AND OTHER
A. Eisenbeis
BY
LENDERS
and Paul R. Schweitzer—Staff,
Board
of
Governors
Prepared as a staff paper in the summer of 1978
This paper presents the findings of a study of
the existence and extent of tying between the
granting of credit and the sale of insurance by
retailers, bank holding companies, and other
financial institutions. It was requested by the
Senate Committee on Banking, Housing and
Urban Affairs.
The study reports new data on insurance and
credit activity obtained through two separate
surveys—one of individual consumers and one
of bank holding companies—and provides an
analytical framework within which to assess the
likelihood that tying is taking place. The theoretical framework implies that the existence of
tying, either explicit or involuntary, will be
manifested in a high proportion of joint purchases, in buyer perception of and resentment
at being forced to make the purchase, and in
supplier conduct that promotes tying. In the
belief that buyer resentment would be strongest
and most likely to generate complaints in those
cases involving explicitly formal tying, the
complaint files of the Federal Reserve System
were canvassed. No complaints had been filed
since 1970 alleging violation of section 106 of
the Bank Holding Company Act by either consumers or businesses.
The Federal Reserve's 1977 Consumer Credit
Survey shows that 62.2 percent of the borrowers
had purchased credit insurance. The lowest
proportion of borrowers also purchasing insurance from the lender was at retailers and banks,
39.9 percent and 61.4 percent, respectively,
while the highest was at finance companies,
74.8 percent. These relatively high penetration
rates do not, however, appear to have resulted
Staff
from either explicit coercion or involuntary
tying. Relatively few consumers responded that
the insurance was "required" (16.4 percent) or
even "strongly recommended" (8.8 percent);
the lowest proportions were for retailers and
banks. The absence of coercion is supported by
the small proportion of customers who viewed
credit life and disability insurance as a " b a d "
service. Most regarded it as desirable and, more
significantly, felt that its price was "about
right" or even "inexpensive."
The other survey sampled bank holding companies to gather information on policies, procedures, and organizational patterns in the selling
of insurance. The reported penetration rates on
credit-related property and casualty insurance
appear significantly lower than would have been
expected if tying were a widespread practice in
the industry. Low penetration rates are also
consistent with the respondents' policies and
procedures, which do not seem to be conducive
to tying arrangements. Solicitation for insurance
is generally reported to be made after the credit
is approved. Moreover, the prevalence of fixed
salaries of insurance agents in large bank holding companies, as opposed to commissions,
lessens the likelihood of coercive tying by these
institutions.
The survey of bank holding companies indi-
Studies
111
cates higher penetration rates for credit life and
disability insurance than for property and casualty insurance, but these latter rates show wider
variation by lender group, type of loan, and
location of company. In general, consumer
loans, mortgage loans, and loans from finance
company and bank subsidiaries have the higher
median penetration rates. Again, patterns of
conduct do not indicate extensive tying since
credit insurance is typically offered after the
credit is approved and, furthermore, most respondents advise the customer that insurance is
not required.
The results of the study suggest that explicit
tying between the granting of credit and the sale
of credit-related insurance is practically nonexistent and that implicit pressures brought by
lenders on the borrowers are neither very strong
nor widespread in the industry. A sizable minority of credit customers find it more convenient to place their property and casualty insurance with their lender than to search for alternative sources of insurance services. The
proportion of people opting for joint purchases
of credit and insurance rises greatly among those
purchasing credit life and disability insurance,
probably because the costs of premiums are
small compared with costs of shopping around
for other sources.
•
112
Industrial Production
Released
for publication
February
15
Industrial production in January edged up an
estimated 0.1 percent following an increase of
0.7 percent in December. Output in January was
affected somewhat by weather conditions. Production of materials was unchanged in January
and output of products rose 0.2 percent. The
January index, at 150.7 percent of the 1967
average, was 8.6 percent higher than the January 1978 level, which had been affected by
strikes and weather.
Output of consumer goods was little changed
in January; production of home goods and consumer nondurable goods increased moderately
while output of automotive products again declined sharply. Auto assemblies—at an annual
rate of 8.9 million units—were about 4 percent
below the 9.3-million-unit rate in December.
Output of business equipment edged up slightly
in January; this gain was limited by a sharp
decline in the production of transit equipment,
particularly truck production. The output of
intermediate products continued to advance, reflecting a further rise in the production of construction supplies.
Output of durable goods materials rose only
slightly in January, with steel output declining
1967 == 100
Industrial production
Total
Products, total
Final products
Consumer goods
Durable
Nondurable
Business equipment
Intermediate products ..
Construction supplies.
Materials
p
Preliminary.
1978
sharply. Production of nondurable goods materials rose moderately, as the output of textile
and chemical materials advanced. Production of
energy materials dropped 0.7 percent, reflecting
a decline in coal output; electric power generation continued to rise.
F.R. indexes, seasonally adjusted. Latest figures: January.
Auto sales and stocks include imports.
Percentage change from preceding month to—
1979
1978
1979
Percentage
change
1/78
to
1/79
Dec. p
Jan.''
Dec.
Jan.
150.5
150.7
.7
.5
.6
.5
.7
.1
8.6
148.7
145.5
150.7
161.9
146.2
168.4
160.7
160.3
153.3
149.0
145.7
150.8
161.1
146.7
168.5
161.4
161.2
153.3
.8
.8
.5
.4
.5
1.0
.5
.8
.5
.2
.3
.4
-.7
.9
.2
.4
.6
.7
.3
.3
.1
.8
-.1
.7
.6
.9
1.1
.4
.3
.4
.2
.4
.2
.6
.7
.8
.7
.6
.6
-.1
.9
.7
1.1
1.4
.5
.2
.1
.1
-.5
.3
.1
.4
.6
.0
7.6
8.0
6.3
10.0
4.9
10.4
6.5
8.0
10.1
' Estimated.
Aug.
Sept.
Oct.
Nov.
NOTE.—Indexes are seasonally adjusted.
113
Statements to Congress
Statement
by G. William Miller,
Chairman,
Board of Governors
of the Federal
Reserve
System, before the Committee on Banking, Finance and Urban Affairs, U.S. House of Representatives, January 24, 1979.
The nation's financial system has been undergoing rapid change in recent years, change
that has altered the competitive environment in
banking and other financial markets and complicated the Federal Reserve's ability to implement monetary policy. Nonmember depositary
institutions have been growing much more rapidly than member banks. Transactions-type deposit accounts have become more widespread
at thrift institutions. And, in general, competition among depositary institutions and between
those institutions and the open market has become much more intense.
This competition promotes efficiency in the
financial system, and banks have been reassessing their costs and operations. Many, as a result,
have become less willing to bear the high cost
of cash reserve requirements associated with
being a member of the Federal Reserve System.
Thus, there has been a steady—and in recent
years, an accelerating—decline in the proportion of bank deposits, especially transaction
deposits, subject to federal reserve requirements. Moreover, the continued development
of new transactions-type deposits at nonbank
depositary institutions will further worsen this
situation.
DEVELOPMENTS
WEAKEN
MONETARY
CONTROL
It is essential that the Federal Reserve maintain
adequate control over the monetary aggregates if the nation is to succeed in its efforts
to curb inflation, sustain economic growth, and
maintain the value of the dollar in international
exchange markets. The attrition in deposits
subject to reserve requirements set by the Federal Reserve weakens the linkage between
member bank reserves and the monetary aggregates. As a larger and larger fraction of deposits
at banks becomes subject to the diverse reserve
requirements set by the 50 states rather than by
the Federal Reserve and as more transactions
balances reside at thrift institutions, the relationship between the money supply and reserves
controlled by the Federal Reserve will become
less and less predictable. Therefore, open market operations, the basic tool of monetary policy, are becoming less precise in their application.
Our staff has attempted to assess the extent
to which growth of deposits outside the Federal
Reserve System would weaken the relationship
between reserves and money. Their tentative
results are shown in chart 1, which depicts the
greater range of short-run variability in M - l and
M-2, with a given level of bank reserves, that
would develop as the percentage of deposits
held outside the Federal Reserve rises. 1 As more
and more deposits are held outside the system,
this chart suggests that control of money through
the reserve base becomes increasingly uncertain.
USE
OF RESERVE
HAS
BEEN
REQUIREMENTS
RESTRICTED
With the proportion of banks subject to federal
reserve requirements declining, the ability of
the central bank to use changes in reserve requirements as a tool of monetary policy has
been increasingly undermined. Changes in reserve ratios not only affect a smaller proportion
1
The attachments to this statement are available on
request from Publications Services, Division of Support
Services, Board of Governors of the Federal Reserve
System, Washington, D.C. 20551.
114
Federal Reserve Bulletin • February 1979
of deposits today than in the past, but the board
also must weigh the potential impact of its actions on the membership problem—and hence
on its ability to maintain monetary control over
the longer run—each time it deliberates on the
uses of this tool. Such concerns inhibit the
board's freedom of action to conduct monetary
policy. If reserve requirements were applied
universally, as is proposed in H . R . 7, adjustments in reserve ratios to affect the availability
of credit throughout the country, or to influence
banks' efforts concerning particular types of deposits, may again become a more viable monetary instrument. Moreover, while open market
operations in U.S. government securities provide the Federal Reserve with a powerful policy instrument, it is possible that conditions
could develop in the future—such as a less active market for U.S. government securities in
a period of reduced federal budgetary deficits—
in which a more flexible adjustment of reserve
requirements might be a desirable adjunct in efforts to control the monetary aggregates.
As
HAS
BEEN
THE DISCOUNT
WINDOW
The effectiveness of the Federal Reserve's administration of the discount window has been
potentially compromised by recent developments. Membership attrition and the growth of
transactions balances at nonbank depositary institutions have resulted in a shrinking proportion
of the financial system having immediate access
to the discount window on a day-to-day basis.
The discount window, as the "lender of last
r e s o r t , " provides the payments system with a
basic liquidity back-up by assuring member
banks the funds to meet their obligations. But,
if the proportion of institutions having access
to this facility continues to decline, individual
institutions could be forced to make abrupt
adjustments in their lending or portfolio policies, because they could not turn to the window
to cushion temporarily the impacts of restrictive
monetary policies. Risks that liquidity squeezes
would result in bank failures could also increase. Thus, the Federal Reserve may find that
its ability to limit growth in money and credit
in order to curb inflation was being unduly
impeded because the safety valve provided by
the discount window was gradually losing its
effective coverage.
AND
THE PAYMENTS
FACES
SYSTEM
DETERIORATION
The growth of transactions balances at institutions that do not have access to Federal Reserve
clearing services also could lead to a deterioration of the quality of the nation's payments
system. Reserve balances held at Federal Reserve Banks are the foundation of the payments
mechanism because these balances are used for
making payments and settling accounts between
banks. Nonmember deposits at correspondent
banks can serve the same purpose, but as more
and more of the deposits used for settlement
purposes are held outside the Federal Reserve,
the banking system becomes more exposed to
the risk that such funds might be immobilized
if a large correspondent bank outside the Federal
Reserve experienced substantial operating difficulties or liquidity problems. A liquidity crisis
affecting such a large clearing bank could have
widespread damaging effects on the banking
system as a whole because smaller banks might
become unable to use their clearing balances in
the ordinary course of business. The Federal
Reserve, of course, is not subject to liquidity
risk and therefore serves, as the Congress intended, as a completely safe foundation for the
payments mechanism.
In sum, the major functions of the Federal
Reserve System—to conduct monetary policy in
the public interest, to provide back-up liquidity
and flexibility to the financial system, and to
assure a safe and efficient payments mechanism—all have been undermined by recent developments. These developments include, as I
have noted earlier, attrition in Federal Reserve
membership and the spreading of third-party
payment powers to nonbank institutions.
DECLINE
IN SYSTEM
MEMBERSHIP
For more than 25 years there has been a continual decline in the proportion of commercial
banks belonging to the Federal Reserve. The
downward trend in the number of member banks
Statements
has been accompanied by a decline in the
proportion of bank deposits subject to federal
reserve requirements. As of mid-1978, member
banks held less than 72 percent of total commercial bank deposits, down about 9 percentage
points since 1970. Thus, more than one-fourth
of commercial bank deposits—and over threefifths of all banks—are outside the Federal Reserve System.
DUE
TO THE
EXCESSIVE
COST
OF
MEMBERSHIP
The basic reason for the decline in membership
is the financial burden that membership entails.
Most nonmember banks and thrift institutions
may hold their required reserves in the form of
earning assets or in the form of deposits (such
as correspondent balances) that would be held
in the normal course of business. Member
banks, by contrast, must keep their required
reserves entirely in nonearning form.
The cost burden of Federal Reserve membership thus consists of the earnings that member
banks forgo because of the extra amount of
nonearning assets that they are required to hold.
Of course, member banks are provided with
services by Reserve Banks, but the value of
these services is insufficient to close the earnings
gap between member and nonmember banks.
The board staff estimates that the aggregate
cost burden to member banks of Federal Reserve
membership exceeds $650 million annually,
based on data for 1977, or about 9 percent of
member bank profits before income tax. The
burden of membership is not distributed equally
across all sizes of member banks. According
to staff estimates, the relative burden is greatest
for small banks—exceeding 20 percent of profits for banks with less than $10 million in
deposits. Further reductions of reserve requirements within existing statutory limits would do
little to eliminate the burden for most classes
of banks, especially for the smaller banks.
INEQUITY
BORNE
OF COST
BY
MEMBER
BURDEN
BANKS
The current regulatory structure is arbitrary and
unfair because it forces member banks to bear
to Congress
115
the full burden of reserve requirements. Only
member banks must maintain sterile reserve
balances; nonmember banks, which compete
with members in the same markets for loans
and deposits, and thrift institutions, which increasingly are competing in the same markets,
do not face similar requirements. Thus, members are at a competitive disadvantage relative
to other depositary institutions. Among the
major countries in the free world, only in the
United States has this legislated inequity been
imposed on the commercial banking system. It
is no wonder that member banks continue to
withdraw from the Federal Reserve.
SPREAD
OF
THIRD-PARTY
PAYMENT
POWERS
At the same time, the spread of third-party
powers to thrift institutions is further increasing
the proportion of transactions balances outside
the control of the Federal Reserve. Commercial
banks' virtual monopoly on transactions accounts, maintained in the past because of their
ability to offer demand deposits, is being
eroded. Moreover, recent financial innovations
have led to widespread use of interest-bearing
transactions accounts at both nonbank depositary institutions and commercial banks. These
developments have increased both the costs and
competitive pressures on banks, no doubt compelling members to reevaluate the costs and
benefits of membership and thus playing a significant role in membership withdrawals.
The payments innovations since 1970 are well
known to this committee, and include limited
pre-authorized " b i l l - p a y e r " transfers as well as
telephone transfers from savings accounts at
banks and savings and loan associations, negotiable order of withdrawal (NOW) accounts at
practically all depositary institutions in New
England, credit union share drafts, automatic
transfers from savings deposits, and the use of
electronic terminals to make immediate transfers
to and from savings accounts.
Growth of these transactions-related, interest-bearing deposits has been most dramatic in
recent years. For example, N O W accounts in
New England have grown from practically zero
in 1974 to 8 percent of household deposit bal-
116
Federal Reserve Bulletin • February 1979
ances in mid-1978, and one-third of these N O W
deposits are at thrift institutions. The intense
competition engendered by the introduction of
N O W accounts has been accompanied by an
acceleration of member bank attrition in New
England to a rate well beyond that of the nation.
This increase in member bank withdrawals is
clearly not just coincidental.
There is no sign that the intense competition
will abate. Savings accounts authorized for automatic transfer have grown rapidly at commercial banks across the country since their introduction November 1; and in New York, N O W
accounts, which were authorized November 10
for all depositary institutions in the state, have
been increasing vigorously. In addition, the
Federal Home Loan Bank Board has announced
its intention to authorize savings and loan associations to oiler payment order accounts, or
POAs, which are interest-bearing deposits that
can serve many of the same functions as NOWs.
These developments have caused the distinctions among banks and thrifts with respect to
the " m o n e y n e s s " of their deposits to become
increasingly blurred and have prompted the
Federal Reserve to reevaluate its existing measures of the monetary aggregates and to consider
possible readjustments to reflect the changing
institutional environment. The most basic
measure of transactions balances, M - l , clearly
should include more than just currency and
commercial bank demand deposits. And, the
broader aggregates may be redefined to emphasize distinctions by type or function of deposit
rather than by the institution in which the deposit is held. Changing the money measures to
reflect economic reality, including the wider role
played by depositary institutions other than
member banks in the monetary system, would
be complemented by legislation for universal
reserve requirements.
LEGISLATIVE
IN THE RIGHT
PROPOSALS
POINT
DIRECTION
The Monetary Control Act of 1979, H.R. 7,
introduced by the chairman of this committee,
represents a constructive approach to improving
monetary control and reducing the inequities in
markets in which depositary institutions are
competing.
This bill proposes universal reserve requirements by establishing a reasonable set of reserve
ratios applicable to all deposits at commercial
banks and to transactions balances at thrift institutions. The definition of transactions accounts includes not only demand deposits but
also the growing number of new third-party
payments accounts. Such an approach puts all
depositary institutions on an equal competitive
basis in the market for transactions deposits and
helps assure the continuation of a reserve structure needed for the efficient conduct of monetary
policy.
Under this legislation all commercial banks
and thrift institutions with transactions accounts
would have access to the Federal Reserve discount window. The Federal Reserve could then
act as a "lender of last resort" to a broader
class of depositary institutions and thereby enhance the overall safety and soundness of the
depositary system, as well as providing more
flexibility to financial institutions to respond to
changing monetary policy. The bill also gives
all depositary institutions access to Federal Reserve services. With the application of an appropriate pricing schedule for such services, this
action should improve the efficiency of the payments mechanism, which underlies all of the
nation's economic transactions. But I should
emphasize that open access to system services,
desirable as it may be, is only practicable if
the so-called membership problem is resolved,
as H.R. 7 does in principle. Without resolution
of the membership problem, open access at an
explicit price set for all institutions would only
exacerbate the problem and lead to even greater
reduction in the Federal Reserve's deposit coverage, since services would be available to nonmembers without bearing the burden of reserves.
BUT
CERTAIN
H.R.
7 ARE
MODIFICATIONS
OF
NECESSARY
The various features of H.R. 7 redress much
of the growing competitive inequity among financial institutions and provide a potentially
improved framework for enhancing the implementation of monetary policy. However, as
drafted, certain provisions of this legislation
compromise the improvement in monetary con-
Statements
trol that universal reserve requirements could
foster.
First, the exemption from any reserve requirement of the first $50 million of transactions
balances and the first $50 million of other deposits reduces somewhat from present levels the
proportion of deposits subject to federal reserve
requirements. More importantly, though, the
rather complex procedure for indexing the exemption would mean that the proportion of
deposits subject to direct Federal Reserve control could not increase over time. Hence, the
board believes that the bill needs to be modified,
and it has a proposal that will both enhance
monetary control and preserve for all institutions
the earnings protection of the exemption contained in the bill without increasing the cost to
the Treasury from that associated with H.R. 7.
PARTICIPATION
EARNINGS
IN FEDERAL
FOR EXEMPTED
RESERVE
DEPOSITS
The board's proposed modification involves establishment of an "earnings participation acc o u n t " at the Federal Reserve to be held against
deposits exempted by H.R. 7 from reserve requirements. To reduce the recordkeeping burden, small institutions could be excluded from
having to hold this account. This exclusion
could amount to the first $10 million of transactions deposits at each institution and $10 million
of other deposits at each commercial bank.
For banks, with respect to all deposits, and
for other depositary institutions, with respect to
transactions deposits, their earnings participation account would be held against deposits
above the $10 million exclusion and up to the
amount of the $50 million exemption in H.R.
7. The size of this earnings participation account
for each deposit category would equal the reserve ratio applicable to deposits in that category
times the amount of deposit liabilities between
$10 million and $50 million. To the extent that
an institution holds vault cash in excess of its
required reserves on nonexempt deposits, the
size of the earnings participation account would
be reduced correspondingly. This provision reduces the possibility that institutions would
build up their excess reserves, which would tend
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117
to increase the slippage between reserves and
deposits and thereby diminish monetary control.
In a comparison of the impacts of the board's
proposal with H . R . 7 and with the current
reserve system, the board's modification has the
advantage of greatly increasing the proportion
of commercial bank transactions deposits covered by an account at the Federal Reserve—
from the present 73 percent to 94 percent. This
would be accomplished even though the $10
million exclusion would mean that 45 percent
of all commercial banks, as well as virtually
all thrift institutions, would not be required to
hold any account at the Federal Reserve. At the
same time, the number of banks holding nonearning reserve balances at Federal Reserve
Banks would be as low as under H . R . 7. The
number would be sharply reduced from the
current level of 5,664 to an estimated 656.
Finally, the effect on bank earnings would be
virtually the same under either H . R . 7 or the
bill as modified by the board's proposal. The
difference would be that under our proposal,
banks would hold some assets in the form of
the earnings participation account rather than as
market investments or loans.
The return on this account would be equivalent to the average return on the Federal Reserve's portfolio, which includes both short- and
long-term securities. In some years this return
might be higher than banks would earn on other
assets—which are likely to be a combination
of loans and liquid instruments—and in some
years, less. On average, over time, there should
be little difference.
I would like to underline the advantage of
bringing transactions-type deposits at thrift institutions under reserve requirements in this
manner. It will be several years, at least, before
any significant number of thrift institutions
would actually have to hold nonearning reserves
at the Federal Reserve. Currently, no savings
and loan association or credit union has transactions deposits in excess of the $50 million
exemption. Only eight mutual savings banks
have transaction accounts in excess of the exemption, and each has vault cash considerably
in excess of the reserve requirement that would
apply to such deposits.
In a listing of individual member and nonmember commercial banks and mutual savings
118
Federal Reserve Bulletin • February 1979
banks similar to that shown on pages 17 to 65
of the committee print, Description of the Monetary Control Bill, an asterisk indicates a bank
added to the list by the board's proposal—that
is, one with deposits above the excluded level
but below the exempted level. These added
banks would hold an earnings participation account (EPA) at the Federal Reserve, but they
would not hold any nonearning required reserves balance at Reserve Banks because their
deposits are below the exempted level. Banks
without an asterisk were on the committee list
before, and their nonearning reserve balance is
affected exactly the same as in H.R. 7. The
column entitled EPA shows the amount of the
earnings participation account each institution
would hold. If this column is zero, the bank
at the end of 1977 had sufficient vault cash in
excess of its required reserves so that it would
have had no EPA.
Thus, the additional institutions brought
under Federal Reserve control would keep the
earnings benefit of the exemption level proposed
by H.R. 7, since they would participate in the
Federal Reserve's earnings on the balances that
they would be required to maintain in the EPA.
Moreover, the cost to the Treasury would be
no different under the board's proposal than
under the proposed bill. Under the board's plan,
the Federal Reserve would earn additional interest on the greater amount of balances that
would be held at Reserve Banks, thereby offsetting the cost of the depositary institutions'
EPAs.
In sum, the board proposal would have the
clear advantage of expanding significantly the
coverage subject to reserve requirements,
thereby enhancing the implementation of mone-
Statement by G. William Miller,
Chairman,
Board of Governors of the Federal
Reserve
System, before the Committee on the Budget,
U.S. House of Representatives,
January 25,
1979.
Mr. Chairman, members of this distinguished
committee, I am pleased to be able to participate
in these important hearings. It is my hope that
tary policy. At the same time, it would sustain
the earnings benefits of the exemption level for
all depositary institutions—at no additional cost
to the Treasury. Finally, exclusion of the first
$10 million of transactions-type deposits and
$10 million of other deposits from the earnings
participation requirement would reduce the recordkeeping burden of the proposal, with relatively modest policy impact. The board has
suggested a series of amendments to H.R. 7 that
would implement the proposed modification.
Another modification proposed by the board
concerns affiliated institutions. Providing an exemption from required reserves of $100 million
in deposits gives an incentive to banks to form
new, affiliated commercial banking entities in
lieu of branch offices in order to avoid the
requirement to hold sterile reserves. A bank as
large as $100 million would already enjoy many
of the economies of scale associated with larger
banking operations. Thus, the cost of creating
new banks would be small relative to the benefit
of avoiding reserve requirements. To eliminate
this potential loophole, the board proposes that
affiliated commercial banks be limited to a total
exemption equal to the number of such institutions as of August 1, 1978, times the exemption
levels specified in the bill.
Mr. Chairman, I want to thank you for the
opportunity to present the Federal Reserve's
view on the Monetary Control Act of 1979. This
bill deals constructively with issues of crucial
importance to the long-run viability of the nation's central bank and to the health of our
financial system. The problems are difficult, but
considerable progress has been made in recent
months toward achieving a solution that promotes the public interest.
•
by expressing the views of the Board of Governors of the Federal Reserve System on the
nation's economic problems and prospects, I
can be of some assistance to you as you frame
the First Concurrent Budget Resolution for the
1980 fiscal year.
The current economic expansion is nearing
its fourth anniversary. This makes it quite venerable in comparison with past cyclical up-
Statements
swings—especially when one exempts from
consideration those that have owed their longevity to the stimulus of war spending. More
important, it has achieved this ripe age without
losing its vitality. Although the growth of activity has slowed in the past year from its earlier
very brisk pace, the gains have continued to
exceed the trend rise of potential output and
have produced sizable increases in employment.
Real gross national product advanced 414
percent over the past four quarters, as compared
with the 5V2 percent average annual rate of
increase during the earlier stages of the expansion. Total employment rose 3.3 million during
1978—just slightly less than in the preceding
year. This was enough to cut the overall rate
of unemployment almost 1/2 percentage point
to 5.9 percent despite continued rapid growth
of the labor force.
The progress of the past year has, in fact,
appreciably narrowed the margin of unutilized
resources in the economy. Utilization rates for
industrial capacity have risen, and although by
and large they remain below the peaks of some
earlier cyclical upswings, there are some areas
of tightness. Similarly, in labor markets the
overall unemployment rate is still rather high
by historical standards, but there is growing
evidence of tautness in various sectors, and
firms generally are finding it increasingly difficult to hire workers with needed skills. These
developments are a normal accompaniment of
economic expansion and to date have not
reached toublesome dimensions. However, we
certainly have arrived at a stage in which resource constraints could quickly become a
serious problem if aggregate demand were permitted to grow faster than productive capacity.
The importance of this consideration cannot
be overstated because inflation is an urgent
concern and a clear danger to the health of our
economy. Even in the absence of excessive
aggregate demand pressures last year, inflation
accelerated markedly. The general level of
prices rose about 8% percent, versus 6V2 percent
in 1977. Special factors such as the influence
of poor weather and the beef cycle on farm
prices played a role in this disappointing performance, but there was also a broad intensification of price pressures across the economy
associated with rising unit labor costs. Pay rates
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119
increased somewhat faster, reflecting in part a
hike in the federal minimum wage, and employers were confronted with bigger tabs for
social security and unemployment insurance.
With productivity virtually unchanged, unit
labor costs rose about 9 percent in 1978, 2
percentage points more than in 1977.
The worsening of U.S. price trends was a
major cause of the dollar's weakness in foreign
exchange markets last year. Although the program announced by the Treasury and the Federal
Reserve on November 1 succeeded in strengthening the dollar, its average exchange value
against other major currencies, on a tradeweighted basis, has registered a net decline of
15 percent since September 1977. This depreciation in turn is having a significant impact on
domestic inflation, by raising import prices and
reducing competitive restraints on the prices of
domestically produced goods. The effect on the
U.S. price level last year probably amounted
to about 1 percent, and further inflationary effects will be felt this year and next.
It is quite clear that last year we passed from
a phase in the economic cycle when the focus
of concern is properly the insurance of strong
aggregate demand to one in which emphasis
must be placed on the avoidance of inflationary
excesses.
The Federal Reserve had begun to assume a
less accommodative stance in 1977, but the
movement toward restraint accelerated in 1978.
System resistance to inflated demands for money
and credit was reflected in a substantial rise in
market rates of interest. Yields on short-term
market instruments generally rose 3 to 4 percentage points last year, while most long-term
rates rose a percentage point or more.
These are sizable increases and they brought
many rates close to, and in a few cases slightly
above, their 1974 peaks. However, this increase
in interest rates did not occasion the wrenching
of financial markets that has seriously disrupted
economic activity on some past occasions.
There are two reasons for this. One is that
current interest rate levels are not extraordinary
after allowance is made for the prevailing state
of inflationary expectations. Nominal interest
costs of 9 or 10 percent would have been a
severe deterrent to credit-financed spending in
periods when inflation was more subdued; bor-
120
Federal Reserve Bulletin • February 1979
rowers are much more willing to pay such rates,
however, when they expect incomes and prices
of goods to rise at paces comparable to those
experienced recently.
The second reason that we have avoided what
is commonly characterized as a "credit crunch"
is the structural changes that have occurred in
the nation's financial markets. Among the most
noteworthy of these is the action taken by the
federal regulatory agencies last spring to ease
the restriction on interest rates that depositary
institutions may pay on time accounts. The new
six-month money market certificate, whose
ceiling varies weekly with Treasury bill rates,
has provided banks and thrift institutions with
an instrument that can compete effectively for
savings even when i n v e s t rates on market
securities are relatively high. Thus, we have not
seen the disintermediation of loanable funds that
might have abruptly curtailed the availability of
credit—at any reasonable price—to homebuyers
and other borrowers who are heavily reliant on
the depositary institutions for financing.
This is not to say that rising interest rates
have been stripped of their impact on economic
developments. The increase in rates last year
contributed to a slowing in the growth of the
monetary aggregates and to a reduction in aggregate credit flows to the nonfinancial sectors
of the economy. In the process, monetary policy
worked to moderate the expansion of economic
activity.
At the same time that the Federal Reserve
was moving in the direction of restraint, the
Congress and the administration were adjusting
their fiscal plans to take account of the reality
of unexpectedly rapid inflation. At this time last
year, attention was being focused primarily on
an expected need to provide stimulus to the
economy in fiscal year 1979. The First Concurrent Budget Resolution specified a federal deficit
of almost $60 billion—an increase over FY
1978. Subsequently, when it became evident
that economic circumstances had changed, there
was a significant shift in the direction of fiscal
policy. This committee and its counterpart in
the Senate are to be commended for their timely
action in reducing the deficit in the Second
Budget Resolution to $39 billion.
The discussions now under way deal, of
course, with the 1980 fiscal year. This period,
commencing next October, seems quite distant
in terms of our ability to project with precision
the condition of the economy. We must, however, base our policy judgments on a tentative
assessment of the likely trajectories of production, employment, and prices. There is a broad
consensus that inflationary pressures are going
to remain strong for some time and that governmental policies will have to be designed with
containment of those pressures as a high priority. There is considerably less accord regarding
prospects for economic activity.
The Federal Reserve does not consider a
recession desirable. " S t o p - g o " patterns of econ o m i c g r o w t h have d i s c o u r a g e d p r o d u c tivity-enhancing investment and brought no
lasting relief from inflation. A policy directed
at fostering a sustained, though modest, rise in
economic activity in the period ahead offers the
best hope of achieving progress toward the
nation's economic goals.
It is our assessment that conditions do, in
fact, favor continued expansion. An examination of available indicators suggests that the
economy currently is in reasonably good balance. The final quarter of 1978 was a strong
one, with real GNP rising at an annual rate of
about 6 percent and sizable gains being posted
in employment and income. This momentum,
coupled with the tax cut that takes effect this
month, should impart considerable strength to
final demand in the current quarter.
It is to be expected that, as time passes,
growth in consumer spending will moderate
from its recent exuberant pace. The proportion
of disposable personal income devoted to consumption has been exceptionally high of late,
and with household debt burdens at record
levels, consumers are likely to spend a little less
freely in the year ahead. In the business sector,
advance indicators of plant and equipment expenditures have given mixed signals. Surveys
of spending plans point to somewhat smaller
gains in outlays for this year than last, but data
on actual orders and contracts have suggested
a fairly robust investment demand. On balance,
it appears reasonable to expect that capital outlays will continue to rise, with some upward
revision in spending plans possible as confi-
Statements
dence in the sustainability of expansion is bolstered. Businessmen will likely maintain their
cautious policies with respect to inventories, but
stocks generally are lean and so there is little
present danger of a recession-inducing effort to
cut back inventories.
Housing starts will probably begin to taper
off soon from the high plateau of the past year,
as the rise in mortgage interest rates affects
housing demand. The decline in residential
construction promises to be moderate by comparison with past building cycles, however,
because of the strong underlying demands associated with demographic trends and because
credit will remain generally available except,
perhaps, where local usury ceilings are a barrier.
Government purchases of goods and services
probably will post only a small increase in 1979,
as the national mood expressed in Proposition
13 and like measures suggests that public
spending will not exhibit the buoyancy of past
years. Finally, our trade balance should improve
markedly, reflecting the impact of relatively
faster economic growth abroad and the lagged
eff ects of exchange-rate changes on both exports
and imports.
In all, real GNP expansion seems likely to
persist at a modest pace over the course of 1979.
Unemployment could well drift upward in such
an environment, but at this time there is no
foreseeable development of cumulative imbalances that will cause the economy to go into
recession during this year.
Any rise in unemployment implies social
costs that one would wish to avoid. It is most
certainly true as well that there are dangers that
unanticipated shocks—from international or domestic sources—could cause the economy to
slip into recession. But an effort to bolster
aggregate demand through more expansive
monetary or fiscal policies would be fraught
with even greater perils. We simply cannot
afford at this juncture to risk an intensification
of inflationary pressures. A further acceleration
of inflation—or even a significant reduction in
confidence here or abroad in the government's
commitment to gain control of the general price
level—would set in motion forces that almost
surely would lead eventually to a serious economic downturn.
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121
The monetary and fiscal actions taken over
the past year to slow inflation have only begun
to exert their effects. The administration's
wage-price standards and other anti-inflation
initiatives can be successful only if they are
backed up by macroeconomic policies of restraint. We must not despair because an inflation
that has been woven into the fabric of the
economy over the course of a decade has not
been and cannot be brought to a halt within a
short interval. This is a time for patience. We
must find the courage to adhere for a sustained
period to the course of policy we have charted.
The implications for federal budgetary strategy are, I think, clear. From the standpoint of
aggregate demand control, we must continue on
a path toward a balanced budget. By moving
as promptly in this direction as economic circumstances permit, undue reliance on monetary
policy can be avoided and pressures on our
financial markets can be minimized. The reduction in federal credit demands associated with
a smaller deficit would release financial resources to the private sector. The dimensions
of the Treasury's presence in the credit markets
during recent years are inadequately recognized.
In addition to the massive unified budget deficits
that have been recorded year after year, the
government has had to finance a growing range
of off-budget activities. The federal off-budget
agencies ran up a $10 billion deficit in FY 1978,
and it appears that the figure for the current
fiscal year will be at least as large. The consequences of this for Treasury borrowing are indicated in an attached chart. 1 Since the beginning of this decade, the outstanding Treasury
debt has much more than doubled, absorbing
billions of dollars of credit that could have been
used productively in the private sector.
Our chances of solving the problem of inflation would also be enhanced if we could slow
the growth of federal spending and thereby
reduce the size of the government sector in the
economy. This would do much to improve the
climate for private capital formation. The mod-
1
The attachments to this statement are available on
request from Publications Services, Division of Support
Services, Board of Governors of the Federal Reserve
System, Washington, D.C. 20551.
122
Federal Reserve Bulletin • February 1979
ification of our tax structure to encourage saving
and investment would have a similar salutary
effect.
Our nation has paid a heavy price for its
having given inadequate attention to the need
for business investment. Our capital stock has
not grown as rapidly as our labor force in recent
years, and this has played a major role in the
poor performance of productivity. Over the past
five years, annual gains in output per hour in
the nonfarm business sector have averaged less
than 1 percent as compared to Wi percent in
the preceding five years, and 2% percent during
the first two decades of the postwar period. This
slowdown has retarded the rise in living standards and has aggravated our inflation problem
through its adverse impact on unit labor costs.
We should set our sights on achieving substan-
tially higher levels of business investment in the
years ahead.
The budgetary policies I have described imply
a period of austerity. During this period, resources would be diverted from private consumption, and, at the federal level, new spending programs may have to be delayed and existing programs reexamined to ensure that they are
meeting social needs effectively and economically. I believe that the American people are
prepared to make this sacrifice in order to win
the battle against inflation. They recognize that
inflation is eating away at the foundations of
our economic structure and imposing a cruel toll
on those in our society who can least afford
it. It is incumbent upon those of us in government to respond with prudent and realistic
policies.
•
Statement by Philip E. Coldwell,
Member,
Board of Governors of the Federal
Reserve
System, before the Committee on
Banking,
Housing and Urban Affairs, U.S. Senate, January 26, 1979.
5.4 percent over estimated 1977 expenses. I am
pleased to report that preliminary results for
1978 were $718 million or 5.3 percent above
the year earlier. Similarly, the Reserve Banks
reduced employment by 650 people compared
with our budget estimate of a 486-person decline. All of this occurred despite an estimated
7 percent increase in the volume of measured
activities and enlarged responsibilities in supervision and regulation.
The Board of Governors' operating expenses
estimated for 1978 were below the operating
budget by $750,000 or 1.6 percent. Here again,
volume increases and new programs were implemented by internal reallocations of personnel
and funds.
We estimate that unit costs of measurable
production at the Reserve Banks declined
sharply during 1978 despite the 8 percent inflation rate and rising labor costs. Such increases
in productivity reflect the system-wide commitment to operational improvements and the intensified cost competition among the Reserve
Banks. While the dramatic improvements of
1974-78 seem likely to slow in coming years,
these are still some improvements, which we
hope to realize in the period ahead.
Mr. Chairman, on behalf of the Board of Governors of the Federal Reserve System, I am
pleased to comply with your committee's request to testify on the Federal Reserve System's
1979 budget. In my closing remark last February at the 1978 hearings, I stated: " T h e Board
believes that its review and budget processes
have created an atmosphere of cost-consciousness that has resulted in better productivity, cost efficiency, service to the public, and
ultimate savings to the tax-paying public." This
testimony on the results for 1978 and the
planned 1979 budgets of the Federal Reserve
Banks and the Board of Governors, in our view,
provides confirmation of that statement.
1978
EXPERIENCE
You will recall that the 1978 Reserve Bank
operating budgets were set at $722.2 million or
Statements
1979
BUDGET FOR THE
FEDERAL RESERVE
BANKS
The Board of Governors approved a budget of
$754.0 million for the operating expenses of the
Federal Reserve Banks in 1979, an increase of
$36.0 million or 5.0 percent over estimated
1978 expenses, but this amount has been reduced by $1.3 million due to a recent decision
on retiree benefits. The adjusted 4.8 percent
increase in operating expenses compares with
an average annual growth rate of 13.6 percent
from 1970 through 1974; 7.5 percent from 1974
through 1977; and a 5.3 percent increase in
1978.
Capital outlays are estimated to be $72.5
million in 1979, increasing $4.8 million from
the 1978 estimate and providing primarily for
data processing and data communications
equipment; new building projects at Baltimore,
Miami, and San Francisco, and renovations;
high-speed currency equipment; and building
machinery and equipment. Total outlays of
funds (capital plus operating expenses adjusted
for depreciation) are expected to reach $802.7
million, representing an increase of 4.4 percent
over estimated 1978 outlays.
In 1979, the Federal Reserve Banks anticipate
operating with a staffing level of 23,161, a
decrease of 489 employees or 2.1 percent from
the 1978 estimated level, which was 650 employees or 2.7 percent below the 1977 level.
During the five-year period beginning in 1974,
employment has been reduced by 3,482, an
average annual rate of decline of 2.8 percent.
Productivity gains, adjusted to reflect the costs
of substituting capital for labor, average 9.9
percent per annum from 1974 through projected
1979—a rate considerably higher than estimates
for the private sector. The 1979 budget-year
estimate of this productivity measure is 8.3
percent.
Having reviewed the Federal Reserve Banks'
expense and employment records, I would now
like to describe the activities for this year by
four groups of expenses, which represent the
ongoing Federal Reserve Bank responsibilities
expressed in terms of the broad categories of
output generated by the system. These groups
are on a fully costed basis, reflecting realloca-
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123
tions from support and overhead services necessary to ensure the continuity and/or the efficiency of operations.
Expenses for services to financial institutions
and the public and those for services to the U.S.
Treasury and government agencies constitute 75
percent and 11 percent, respectively, of the
budgeted 1979 expenses. With a projected increase in volume from 1978 to 1979 of 6.9
percent, expenses for services to financial institutions and the public are projected to increase
4.8 percent or $26.0 million and expenses for
services to the U.S. Treasury and government
agencies are projected to increase 3.6 percent
or $2.9 million. In these volume-related areas,
unit costs are projected to decline 2.2 percent
without adjusting for inflation.
Services to financial institutions and the public primarily relate to the payments mechanism
function and the cash function. During 1979,
the production of payments services will be
most affected by the promotion of the automated
clearinghouse program. This program involves
expanding automated payments as an alternative
to paper checks. These automated payments will
be faster, cheaper, and more reliable than paper
entries. The major components of the,program
will be to stimulate the growth of automated
clearinghouse volume by working with the
Treasury and the National Automated Clearing
House Association to plan new programs and
improved operating schedules and to improve
system automated clearinghouse operations. Increased governmental electronic payments and
increased private debit and credit transactions
in 1979 are expected to raise substantially automated clearinghouse volume.
Before leaving our plans for the payments
system, I should mention something about Federal Reserve float, which has had an upward
trend over the past few years, particularly in
1978. Part of this trend is due to the rising dollar
volume of checks processed through the Federal
Reserve—up about 57 percent since 1974. As
this committee is aware, the Federal Reserve
System has been concerned with reducing its
operating costs, and this has involved a learning
process to balance properly cost reductions,
float, quality of service, and our regulatory and
supervisory responsibilities.
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Federal Reserve Bulletin • February 1979
The cash concentration and cash management
practices of corporations interested in maximizing the time value of funds have increased the
potential for exploiting the Federal Reserve's
deferment schedule and its float. Remote disbursement is an abuse of the check collection
system that the board is working to eliminate
and you have been provided with a report on
this matter. Another cause that has had an
impact on system float, particularly during the
past two years, is severe weather and its effect
on the movement and clearing of checks. The
system is very concerned with the causes and
effects of its rising float and is taking steps to
reduce it. I anticipate improvements in this area
and believe that the system will be successful
in reducing its float this year.
In the cash function, the $1 coin will be
introduced in 1979, and more high-speed currency equipment will become operational. The
high-speed currency equipment will count the
currency, detect counterfeit notes, sort mixed
denominations, determine the fitness of notes,
and destroy notes deemed unfit for circulation,
all at the rate of about 50,000 notes per hour.
Utilization of these machines will provide a
better quality of currency to return to circulation, provide a greater degree of accuracy, and
reduce the level of manual involvement.
Services to the U.S. Treasury and government agencies are primarily concerned with
savings bonds, other Treasury issues, and food
stamp activities. Two developmental projects in
this area are expected to be completed in 1979.
Both relate to the marketing, safekeeping, and
servicing of U.S. government securities. One
project involves identifying future control safeguards and other operational factors that must
be considered in transferring government securities among Federal Reserve Banks by automated means. These findings will be coordinated with those from other areas, such as funds
transfers, in the final design specification for the
Federal Reserve communications requirements
in the 1980s. The second project involves the
joint development and installation of computer
programs by San Francisco, Kansas City, and
St. Louis in order to automate the transferring
of securities and the accounting for collateral.
This pilot resource-sharing project is designed
to achieve more cost reductions through joint
planning, development, and implementation of
transportable computer software.
Expenses for activities involving supervision
and regulation constitute 9 percent of the budgeted 1979 expenses and are expected to exceed
the estimated 1978 level by $4.9 million or 7.8
percent. This area has been heavily impacted
in recent years by the added responsibilities of
consumer regulations, bank holding company
supervision, and processing of holding company
applications. In 1979 the workload will be further intensified due to the passage of the International Banking Act, the development and expansion of data surveillance systems, the added
applications processing requirements established by the Community Reinvestment Act,
and the implementation of various sections of
the Financial Institutions Regulatory and Interest Rate Control Act. A major project expected
to be completed in 1979 involves the review
of all Federal Reserve regulations to determine
the organizational scheme and framework
within which all Federal Reserve regulations
should be issued and to determine the extent
to which they are meeting current policy goals.
In addition, the review will require that we
redraft all Federal Reserve regulations to incorporate changes in policy, format, and style.
The expenses of the final expense group,
monetary and economic policy, constitute 5
percent of the budgeted 1979 expenses and are
expected to exceed the estimated 1978 level by
$2.2 million or 6.0 percent. This service area
provides economic information and analysis
necessary for effective conduct of monetary
policy and for bank regulatory policy decisions
both at the district and system levels. During
1979, expanded programs will encompass evaluation of new market developments, research
on various aspects of monetary control, and
regional and local research, together with reviews of many statistical collection and reporting requirements.
The adjusted $34.7 million increase in 1979
budgeted Federal Reserve Bank operating expenses over 1978 estimated expenses is primarily attributable to salaries and benefits,
which account for 58 percent or $20.3 million
of the total increase. Retirement and other ben-
Statements
efits expenses are expected to increase 7.4 percent due to increased contributions for both
current-service and retired personnel. Current
service benefits will increase due to higher rates
for Social Security, group life insurance, and
hospital and medical insurance, and due to the
higher salary base.
Salary expenses for officers and employees
are budgeted to increase 4.3 percent, reflecting
the planned 2.1 percent decrease in employment
and a 6.5 percent increase in average salary per
capita. This personnel compensation program is
within the President's guidelines for wage and
benefit increases. The Federal Reserve Banks'
policy for salary programs is to set wage levels
on the basis of salary movements within the
respective communities. These movements are
estimated through periodic surveys of salaries
of both financial and nonfinancial corporations
that represent major employers within each
market. This broad-gauged reference is maintained in order that the Federal Reserve Banks
can draw from a pool of workers with experience in several different industries.
Increased equipment expenses represent 14
percent of the total budget increase with an
increase in equipment depreciation, repairs, and
maintenance being partially offset by a decrease
in equipment rentals. The rise and fall in these
expense categories reflect the transition from
rental to owned equipment, equipment upgrading, and the acquisition of high-speed currency
processing equipment.
The increased cost of Federal Reserve currency accounts for another 13 percent of the
advance in the total budget of the Federal Reserve Banks. This expense is largely beyond the
control of the Federal Reserve Banks since the
Bureau of Engraving and Printing sets the price
for printing and the public demand determines
the volume to be issued. Such costs are expected
to increase more than $4 million over 1978,
reflecting a higher unit price from the bureau
and a larger demand for currency.
Increases in building-related expenses include
higher property depreciation, primarily reflecting completion of the new Richmond Federal
Reserve Bank building. In addition, utility expenses are expected to increase due to higher
rates.
to Congress
125
The $1.7 million increase in postage and
other shipping expenses reflects a 6.2 percent
and a 1.5 percent increase, respectively. The
relatively low increase in other shipping expenses is attributable to the pursuit of favorable
contractual arrangements with carriers. There
are recent developments, however, which may
reverse these gains. Decisions by the Department of Labor with confirmation by the Department of Justice may force the system to comply
with the Service Contract Act for all these
services. Courts, in prior years, have held that
Federal Reserve Banks were not agencies of the
federal government for purposes of legislation
of this kind. If this new position is sustained,
we expect millions of dollars to be added to
the cost of our transportation services since we
will have to pay union scale wages, even in
areas of the country where market alternatives
are available at considerably lower prices.
1979
BOARD
BUDGET
OF
FOR THE
GOVERNORS
The 1979 approved operating budget for the
Board of Governors is $49.9 million, representing an increase of $2.9 million or 6.2 percent over 1978. This increase compares with
the federal government's fiscal year 1979 budget
increase of 9.3 percent over fiscal year 1978
and the projected fiscal year 1980 budget increase, which is 7.7 percent over fiscal year
1979.
The board's 1979 year-end authorized position level is projected at 1,510, a reduction of
68 from the 1978 year-end authorized level of
1,578. Staffing projections in 1979 comply with
the hiring constraints of the federal government.
The significant reduction in authorized positions
at the board will be accomplished by continuing
improvements in productivity and efficiency and
by eliminating or reducing low priority functions. In making these reductions in staff, the
board is accepting some risk of reduced responsiveness to new tasks but feels this action is
appropriate to government policy.
The supervision and regulation of financial
institutions, including their role in consumer
affairs, is the only area of board responsibility
126
Federal Reserve Bulletin • February 1979
in which significant growth is expected in 1979.
The resources allocated to this area will increase
by 9.7 percent as we move to strengthen compliance review, and our ability to meet new
requirements imposed by the Congress in the
Community Reinvestment Act, the Financial
Institutions Regulatory and Interest Rate Control
Act (FIRA), and the International Banking Act.
The resource impact of this legislation has not
been completely assessed, and additional funding is likely to be required. For example, the
Financial Institutions Regulatory Council established by FIRA has not been activated. Therefore, associated support requirements have not
been determined and no budget provision has
been made. A budget supplement probably will
be needed to cover these costs.
The increase in the board's operating budget
mainly reflects a 5.5 percent increase in salaries,
retirement, and employee insurance (excluding
lump sum payments for retiree cost-of-living
increases and cost of new legislative mandates).
These personal services account for 80 percent
of the board's operating budget. Nonpersonal
services are being held to an increase of 1.5
percent. This low rate is attributable to: (1)
savings in rentals resulting from a move of
elements of the board's staff from rented to
board-owned facilities, and (2) economy measures taken throughout the board's operations.
The board's capital budget totals $1.2 million, representing a reduction from 1978 estimated capital outlays of $8.1 million. The funds
in this capital budget were previously approved
by the board to cover the renovation of the main
board building and construction of additional
offices in our annex building. Both projects will
be completed in mid-1979.
SUMMARY
The system policy of reducing resource expenditures has been expressed and achieved through
setting objectives, adapting established budgeting procedures to meet the organization's
framework, and emphasizing operations improvements. The 1979 budget objective for the
Federal Reserve Banks limited the increase in
total expenses to 4.5 percent to 6.5 percent
while providing for continued high quality in
all system services and continued investment in
improvement of system activities. The projected
4.8 percent increase in total expenses over the
1978 estimate conforms with the board-approved budget objective, which assumed total
salary expenses would not exceed 5.0 percent
system-wide, while employment would decline
1.5 percent. This assumption compares with a
budgeted increase of 4.3 percent in total salary
expenses and a decline of 2.1 percent in employment.
Similarly, the board's 1979 budget was developed under tight constraints. The board established an initial 7.35 percent limitation on
the increase in total operating costs over the
1978 estimated expense base, and a 5.5 percent
limitation on the increase in personnel costs.
Since the costs of continuing board operations
at the 1978 resource level would have required
an increase of more than 9 percent, the effect
of these constraints is a marked reduction in
resource levels below those of 1978.
In the preparation of the 1979 budgets, the
Federal Reserve Banks experimented with the
use of zero-base budgeting in their planning and
budgeting systems. While there were widely
varying applications of zero-base budgeting, the
consensus is that the process did assist the
Reserve Banks in their 1979 planning processes
by concentrating on the reevaluation of existing
programs, reviewing program and resource alternatives, and redirecting resources between
new initiatives and programs in place. During
1979 several Reserve Banks intend to integrate
zero-base-budgeting concepts further into their
management processes and to test the possibility
of establishing a rotating zero-base review
process.
As with the 1978 budget, the board's divisions used zero-base-budgeting procedures to
develop their program budgets, including data
processing resource requirements. The zerobase decision packages were used as the basis
for budget reviews conducted by staff and
members of the board serving on various oversight committees. The effect of these reviews
was to reduce already constrained budget re-
Statements
to Congress
127
quests by some $1.9 million and to eliminate
68 positions, bringing the projected 1979 authorized staffing down to near the 1974 level.
In summary, the performance record of the
Federal Reserve Banks and the Board of Governors in 1978 and their operating plans for 1979
indicate continued improvement in efficiency.
While the volumes of existing services are ex-
pected to rise approximately 7 percent and substantial new regulatory requirements face the
system in 1979, further reductions in staff are
anticipated and increases in expenses are expected to be held significantly below the rate
of inflation. I can assure you, however, that the
system firmly intends to maintain the high quality of services it provides to the public.
Statement by G. William Miller,
Chairman,
Board of Governors of the Federal
Reserve
System, before the Joint Economic
Committee
of the U.S. Congress, January 30, 1979.
1/2 percentage point to just under 6 percent at
the end of the year.
The further expansion in economic activity
last year appreciably reduced the margin of
unutilized resources in the economy. Skilled
workers were in increasingly short supply, and
industrial capacity utilization rates moved closer
to peaks reached in recent cycles. In these
circumstances, the moderation in economic
growth last year was a desirable development
since a more rapid rate of expansion in aggregate demand could well have exacerbated our
already serious inflationary problems.
The general level of prices rose sharply in
1978, with the rate of inflation accelerating to
about 83A percent compared with 6V2 percent
in 1977. While the moderation in the pace of
economic expansion and the lack of significant
distortions in major sectors of the economy
augur well for the economy's further expansion
in the months immediately ahead, the longer-run
performance of the economy will depend critically on our success in bringing down the rate
of inflation.
Containment of inflationary pressures in our
domestic economy is also a major prerequisite
for strengthening the dollar in foreign exchange
markets while reducing our trade deficit. In 1978
the deficit was about $35 billion, on an international accounts basis, and the value of the dollar
against major foreign currencies fell 17 percent
over the first 10 months of the year. Since
November 1, when new domestic monetary
policy actions and dollar support measures were
initiated, the dollar has risen about 7 percent.
The vigorous implementation of the support
program through cooperative exchange market
Mr. Chairman, members of the Joint Economic
Committee, I appreciate the opportunity to participate on behalf of the Federal Reserve Board
in your annual hearings on the state of the
economy. We find ourselves at an important
juncture in our nation's economic progress, a
time when patience and persistence are needed
until the nation's anti-inflationary economic
policies begin to achieve significant results.
The current expansion in economic activity
has now almost completed its fourth year—an
impressive performance by historical standards.
The rate of economic growth moderated somewhat in the past year, yet employment gains
were exceptionally large, and major imbalances
generally associated in the past with a maturing
business expansion did not materialize. There
were, however, a number of disturbing developments. In particular, the rate of inflation,
already far too high, accelerated further; the
foreign exchange value of the dollar declined
substantially prior to November; and the level
of consumer debt rose sharply.
Outlays for business fixed investment grew
strongly in 1978, and housing activity remained
at a high level through the end of the year.
Consumer spending, buttressed by further large
increases in consumer credit, continued to provide support for the expansion. Total employment rose by more than 3 million persons during
the year; although the labor force also increased
rapidly, the unemployment rate declined about
128
Federal Reserve Bulletin • February 1979
intervention has been successful. The expansion
of Federal Reserve swap arrangements and the
marshalling of other resources have proved very
useful in correcting the excessive decline of the
dollar. However, the longer-run strength of the
dollar will depend on reducing our domestic
inflation, increasing our exports, and curbing
our oil imports.
Another worrisome aspect of our economy's
performance has been our lagging rate of productivity growth. The poor performance of productivity has retarded the rise in living standards
and aggravated the problem of inflation. There
are many causes of this retarded growth, some
of which hopefully reflect temporary developments, but tax policies that pay insufficient
attention to investment incentives and government over-regulation must rank high among the
contributing factors.
In domestic financial markets, conditions
have tightened considerably over the past year.
Since the beginning of 1978, short-term interest
rates have increased 3 to 4 percentage points;
mortgage rates, about IV2 percentage points;
and bond yields, about 1 percentage point.
Despite higher interest rates, funds for creditworthy borrowers have remained in ample supply. The total volume of net funds raised in
credit markets was lower in the second half of
1978 than in the first half, but total credit flows
remained large as borrowing by households in
the form of mortgages and installment credit
continued to expand at a rapid rate.
The acceleration of inflation over the past year
has required major adjustments in economic
policies. In the fiscal policy sphere there has
been a dramatic movement toward tighter control over government spending and a related
reduction in current and prospective federal
deficits. The deficit specified for fiscal 1979 in
the First Concurrent Budget Resolution was $60
billion, but this was cut to $39 billion in the
Second Resolution. This very impressive reduction was a result of highly commendable
actions by the President and the Congress that
cut contemplated expenditures and moderated
proposed tax reductions incorporated in the
original financial plan for the year. More recently, President Carter has announced a budget
for fiscal 1980 that would reduce the yearly
deficit further—to $29 billion, by far the lowest
level in six years. There seems to be widespread
support for this initiative, and the prospects
favor a further move toward budgetary balance
in fiscal 1981 and actual balance by fiscal 1982,
if not before.
A second policy initiative in the fight against
inflation was the administration's introduction
on October 24 of a broad-based program calling
for voluntary moderation in wage and price
actions, the establishment of specific standards
for wage and price increases, and the offer of
various incentives for compliance. Past experience has suggested that incomes policies are of
limited effectiveness in reducing the underlying
rate of inflation. Yet, an incomes policy can play
an important role in circumstances where more
basic economic policies are being redirected in
a vigorous way toward the containment of inflation. I am confident that most business and
labor leaders will abide by the spirit of an
incomes policy if they perceive that the administration, the Congress, and the Federal Reserve
are truly determined to bring inflation under
control.
Monetary policy also moved toward increased
restraint in the past year as the Federal Reserve
sought to foster financial conditions that would
contribute to a reduction of inflationary pressures while supporting continued moderate economic growth. Accelerating inflationary pressures were accompanied by rising demands for
money and a tendency for the monetary aggregates to expand at rates that were widely viewed
as excessive. In the circumstances, open market
operations became progressively less accommodative in the provision of reserves, and the
federal funds rate rose from around 6V2 percent
in early January to about 10 percent recently.
The discount rate was increased in a number
of steps by 3L/Z percentage points during 1978,
to 9Vi percent. These anti-inflation moves featured actions taken on November 1 in conjunction with the dollar-support program: the system
announced an increase of 1 percentage point in
the discount rate, imposed a supplementary reserve requirement of 2 percentage points on
large-denomination time deposits, and further
tightened reserve availability through its open
market operations.
Statements
Growth in the narrowly defined money stock,
M - l , slowed sharply in the final quarter of 1978.
The cumulative impact of rising short-term interest rates has undoubtedly helped to restrain
the growth of money. But recently the public
has shown a tendency to economize more than
might have been expected on their holdings of
cash balances. Persistent high levels of shortterm rates and the availability of alternative
transactions-type accounts, such as the new
savings accounts with an automatic transfer
feature, have probably caused many depositors
to shift sizable amounts of funds out of demand
deposits. Expansion in the broader measures of
money, M-2 and M-3, also moderated late in
the year, reflecting not only the sluggish performance of their M-l component but also the
weakness in time and savings accounts subject
to fixed-rate ceilings. Rising yields on competing market instruments tended to make such
accounts increasingly less attractive as the year
progressed. In contrast, time deposits paying
interest rates competitive with those on market
instruments have continued to attract sizable
inflows of funds to banks and nonbank thrift
institutions.
The tightening of financial conditions has
been accompanied by erosion of liquidity positions in various sectors of the economy. Mortgage and consumer debt burdens rose sharply
in 1978 and the ratio of mortgage and consumer
debt repayments to disposable income reached
a record high. Borrowing by nonfinancial corporations was concentrated heavily in short- and
intermediate-term liabilities, especially bank
loans and commercial paper, and the ratio of
short- to long-term business debt is now only
slightly below the 1974 peak. Commercial
banks have reduced their holdings of U.S. government securities and increased their use of
interest-sensitive liabilities such as large-denomination CDs and security repurchase agreements. Savings and loan associations have borrowed a record amount from Federal Home
Loan Banks. The reduced liquidity of many
individuals, business concerns, and financial
institutions is likely to exert a moderating influence on credit-financed expenditures.
It should be emphasized that the much needed
firming in credit market conditions has not been
to Congress
129
accompanied by the severe strains and distortions associated with past periods of credit restraint. Current interest rate levels may be inhibiting some potential borrowers, which is the
objective of credit restraint, but creditworthy
borrowers continue to find funds available at
prevailing rate levels. The housing market in
particular has continued to attract a relatively
abundant share of financing, though at rising
interest rates. A key factor in this development
was the introduction in June 1978 of new sixmonth money market certificates that have enabled depositary institutions to attract funds by
paying prevailing market interest rates. In addition, housing has been supported by the lending
activities of the Federal Home Loan Banks, the
emergence of new mortgage-related securities,
and the improvement of secondary markets for
mortgages. The net increase in mortgage debt
in the fourth quarter of 1978 was only a little
below the record increase in the fourth quarter
of 1977.
Mr. Chairman, you have asked me to assess
the economic outlook. The major threat to the
economy is inflation and the concomitant expectations that dominate the setting of prices and
wages. Thus, any weakening in our anti-inflationary resolve could seriously damage our domestic economy and have adverse implications
for the external value of the dollar.
Policies of fiscal and monetary restraint—
together with the cooperation of business and
labor in the administration's wage-price program—can achieve a gradual reduction in the
rate of inflation, with progress becoming evident
during 1979. While growth of output and employment is expected to slow this year, a recession is unlikely in the absence of outside disturbances to the economy. A moderate rate of
economic growth is likely to avoid financial and
economic dislocations, such as overinvestment
in business inventories, which in turn could
foster a recession later. The economy is already
quite close to full employment and any new
surge in demand must be prevented since it
would only be translated into more inflationary
pressures.
Spending by consumers, a mainstay of our
economic expansion since the spring of 1975,
will probably continue to grow but at a reduced
130
Federal Reserve Bulletin • February 1979
pace in light of the increased consumer debt
burdens noted earlier. Expenditures on new
plant and equipment by businessmen seem
likely to be well maintained and they may even
increase more than is currently anticipated if
visible progress is perceived in the fight against
inflation. In the housing area, some decline from
the current high level of activity seems probable
as financial restraints exert a retarding influence
on both builders and homebuyers. Nonetheless,
the severely depressed conditions that have periodically affected this sector of the economy
will most likely be avoided. Adequate financing
for homes will continue to be available, thanks
to the wide range of government support programs and the access of lending institutions to
market sources of funds such as the new sixmonth certificates. Prospects for our trade balance in 1979 also seem to be brightening.
In your letter inviting me to these hearings,
Senator Bentsen, you have asked for comments
on the appropriate mix of fiscal and monetary
policies. In the area of monetary policy, the
restraint that has been put in place is achieving
welcome results in the form of a reduced rate
of monetary expansion. As may be seen from
the charts, the monetary aggregates have gener-
Statement by Nancy H. Teeters,
Member,
Board of Governors of the Federal
Reserve
System, before the Committee on
Banking,
Housing and Urban Affairs, U.S. Senate, February 2, 1979.
It is a pleasure for me to appear before this
committee to testify on the important subject
of truth in lending simplification. Since I have
been appointed to chair the committee of the
Board of Governors of the Federal Reserve
System that has responsibility for consumer
affairs, I look forward to working with you on
this and other matters, and I anticipate a cooperative and constructive relationship.
Before addressing the principal topic of this
hearing, I would like to draw attention to a
problem that has arisen regarding the recently
enacted Right to Financial Privacy Act, which
ally moved into the ranges set by the Federal
Open Market Committee. 1 The Federal Reserve
is determined to achieve a rate of monetary
growth that is consistent with the objective of
fostering a decline in the rate of inflation while
encouraging moderate economic expansion. The
Federal Reserve's task will be eased immensely
if fiscal policy remains on the course outlined
by the President. Large budget deficits tend to
put upward pressure on interest rates as government demands compete with private demands
for funds. It is therefore essential for the Congress to resist programs that lead to increased
expenditures. A reduced federal deficit, including borrowings by off-budget agencies, would
ease pressures on interest rates and allow the
Federal Reserve to achieve its monetary growth
objectives at lower interest rates than otherwise.
A reduced budgetary deficit would also foster
a financial environment that encourages greater
business investment and would improve the
prospects for a period of sustained economic
growth and a moderate rate of inflation.
•
1
The attachments to this statement are available on
request from Publications Services, Division of Support
Services, Board of Governors of the Federal Reserve
S y s t e m , Washington, D . C . 2 0 5 5 1 .
is Title XI of the Financial Institutions Regulatory and Interest Rate Control Act of 1978.
Section 1104(d) of that law requires all institutions subject to the act to notify promptly all
customers of their rights under the law, and
directs the board to prepare a model statement
of customer rights. Although the board does not
have rulewriting authority under this law, we
have been asked to provide guidance as to the
meaning of this notification requirement.
The act makes no distinction between active
accounts and inactive and closed accounts.
Thus, it appears that all accounts must receive
the statement of customer rights. Not only
would this notification requirement be extremely
costly and burdensome, but a typical family
would receive several identical statements. A
Senate bill, S. 37, introduced by Chairman
Proxmire, would repeal section 1 104(d). The
Statements
board's Consumer Advisory Council did not
urge repeal of this section but adopted a resolution recommending that the statute be amended
to require the statement to be delivered only at
the time access is sought to a customer's records. The board has endorsed that recommendation. In so doing, the board was influenced by the fact that this amendment would
get the information into the hands of customers
at the time they need it.
Turning now to simplification of truth in
lending, the board continues to believe in the
soundness of the basic concepts of S. 2802,
which was passed by the Senate last session.
The board supports enactment of S. 108 introduced by Chairman Proxmire. Common sense
indicates that the act and, I should add, the
regulation can and should be improved and
simplified so that they will be more effective
and less burdensome.
The basic cost information most needed by
consumers in shopping for credit should be
emphasized, that is, the annual percentage rate,
the total finance charge, and the payments
schedule. Significant information that is less
important for shopping purposes should be
summarized, but with the details left to the
contract. Information that detracts from basic
information should appear elsewhere with a
reference to its availability.
The 1977 Consumer Credit Survey, which
was funded by the Federal Deposit Insurance
Corporation, the Comptroller of the Currency,
and the Federal Reserve Board and conducted
by the University of Michigan's Survey Research Center, reinforces the approach taken by
S. 2802. The survey asked consumers what
credit terms they would want to know when
financing a car. The overwhelming majority
responded that the annual percentage rate was
the most important. At another point in the
interview, respondents were given a list of the
seven disclosures provided for in S. 2802 and
were asked to rank their importance. The results
show annual percentage rate, size of monthly
payment, and finance charge to be far more
important to consumers than other terms. In
summary, the board believes that last session's
simplification bill provides an excellent basis for
the continued consideration of the simplification
of truth in lending.
to Congress
131
In addition to considering simplification of
truth in lending during the last session, this
committee favorably reported a bill to regulate
the consumer aspects of electronic funds
transfers. Many of the committee's recommendations were ultimately enacted as Title XX
of the Financial Institutions Regulatory and Interest Rate Control Act of 1978. The portions
of the act dealing with limitations on a consumer's liability for unauthorized transfers and
for limitations on unsolicited distribution of
electronic funds transfer cards go into effect this
month. The rest of the act goes into effect in
May 1980.
The board has begun the process of writing
regulations to implement the act. In the course
of this process, we have become concerned that
consumers will encounter unnecessary difficulty
in understanding the rules provided by the new
act and confuse them with the provisions of the
Truth in Lending and Fair Credit Billing Acts,
which govern credit-card and overdraft-type
credit.
Consumers will be particularly confused in
cases when a single card will perform functions
subject to the Fair Credit Billing Act (such as
a credit purchase) and others subject to the
Electronic Fund Transfer Act (for example, a
cash withdrawal from an electronic terminal).
In some cases, a single transaction may be
subject to both acts; for example, a cash withdrawal from a terminal may debit the customer's
checking account and access a line of credit at
the same time. Even without these complex
plans, consumers should not have to learn different rules for the pieces of plastic lying sideby-side in their wallets. In order to minimize
consumer confusion, the board recommends that
the acts be amended to provide one set of rules
governing both credit and electronic funds
transfer transactions except when compelling
policy considerations dictate different treatment.
These recommendations are based upon the assumption that consumers will be best served by
one set of rules, which in time they will learn
and use.
The board's specific recommendations are as
follows:
1. The Truth in Lending Act imposes a $50
limit on the liability of a credit-card holder when
a card is lost or stolen. The Electronic Fund
132
Federal Reserve Bulletin • February 1979
Transfer Act has a $50, $500, and unlimited
liability structure. The board recommends that
there be a single set of rules governing liability
for unauthorized use. The $50 limit of truth in
lending is not sacred, and the concept of electronic funds transfer that culpable consumers
should carry a heavier responsibility has appeal.
Nonetheless, the approach of truth in lending
is more protective of consumers and, we believe, will make electronic payment systems
more acceptable to the public. Based upon the
experience of credit-card issuers, who often do
not impose even the $50 liability for credit-card
loss, electronic funds transfer suppliers should
not be materially harmed by this amendment.
2. Under the Fair Credit Billing Act, a consumer must write to the creditor in order to take
advantage of the dispute resolution rules of the
act. The Electronic Fund Transfer Act permits
oral notice to the institution, although written
confirmation can be required of the consumer.
An informal board study indicates that less than
1 percent of consumers with questions about
their bills follow the formal procedures of the
Fair Credit Billing Act. Consumers usually
telephone, and the lack of formality should not
remove them from the protections of the act.
The board recommends that the Fair Credit
Billing Act be amended to incorporate the oral
notice provision of the Electronic Fund Transfer
Act.
3. When an error is alleged under the Electronic Fund Transfer Act, the institution must
within 10 days either complete its investigation
or provisionally recredit the consumer's account. When an error allegation is received
under the Fair Credit Billing Act, the creditor
must either resolve the dispute or send an acknowledgment within 30 days. The board recommends that both acts be amended to provide
parallel timing requirements as follows:
a. Under the Electronic Fund Transfer
Act, require notice within 10 days informing
the consumer of the correction or, if the institution believes no error occurred, a written
explanation of the basis for that belief. In the
alternative, require a written notice of the provisional recredit.
b. Under the Fair Credit Billing Act, require notice to the consumer of the correction
of the error within 10 days or a written explanation of why the creditor believes no error
occurred. In the alternative, require a written
notice that amounts in dispute need not be paid.
The current time limits for resolving disputes
are 45 days under the Electronic Fund Transfer
Act and two billing cycles but not more than
90 days under the Fair Credit Billing Act. The
board recommends that the Electronic Fund
Transfer Act be amended to conform to the Fair
Credit Billing Act so that both laws would
require resolution within 90 calendar days.
Lengthening the Electronic Fund Transfer Act
limit will not hurt consumers because their funds
will have already been provisionally recredited.
4. The board recommends that the annual
notice of rights under the Electronic Fund
Transfer Act and the semiannual notice of rights
under the Fair Credit Billing Act be eliminated.
In their stead, we recommend that periodic
statements contain a summary notice disclosing
the existence of the rights and informing persons
how to obtain a complete explanation. Since it
is normally information on periodic statements
that triggers a dispute, we believe that consumers are better served by a short notice at
the time a dispute arises than they are by a
lengthy explanation once or twice a year.
5. The Truth in Lending Act prohibits the
unsolicited issuance of credit cards, while the
Electronic Fund Transfer Act permits the unsolicited issuance of cards provided they are not
validated. Because many institutions are offering cards with both credit and electronic funds
transfer features, the more competitive approach
of the Electronic Fund Transfer Act may be
frustrated by the absolute prohibition on unsolicited issuance by the Truth in Lending Act. One
solution is to conform the Truth in Lending Act
to the Electronic Fund Transfer Act to permit
the unsolicited issuance of unvalidated credit
cards.
6. Both the Electronic Fund Transfer Act and
the Fair Credit Billing Act provide for " e r r o r "
resolution procedures. The acts define mere requests for clarification or documentation as
" e r r o r s . " The board recommends that the error
definitions be amended to limit the concept to
cases in which the consumer suspects a mistake
or discrepancy. Institutions should not be put
Statements
to Congress
133
to the expense of complying with the error
resolution procedures each time a consumer
calls for information for business, tax, or other
purposes. The board already has the authority
to define additional errors by regulation and
therefore can prevent any loopholes from developing.
7. Finally, the staff has received a number
of inquiries from consumers and creditors asking whether the Fair Credit Billing Act permits
creditors to impose charges for providing documentation or investigating errors. In some cases,
these charges appear to be quite substantial, and
in others they are open ended; for example, $5
per hour for an investigation. The board
recommends that both the Fair Credit Billing
Act and the Electronic Fund Transfer Act be
amended to prohibit the imposition of such
charges. While Regulation Z prohibits these
charges when a customer's allegation of error
proves correct, we believe that permitting these
charges at all serves to discourage customers
from exercising their right to assert errors.
These seven recommendations and a few
technical problems the board's staff has discovered in dealing with matters such as rulewriting
authority could be included in the present bill
or in a separate bill. In either case, the board
believes it is important that the legal relationship
between electronic funds transfers and the credit
transactions be clarified and that the consumer
be offered a rational, common-sense framework.
I appreciate the opportunity to appear. The
board commends this committee for its tenacity
in dealing with this difficult subject.
•
Statement by Henry C. Wallich,
Member,
Board of Governors of the Federal
Reserve
System, before the Committee on
Banking,
Housing and Urban Affairs, U.S. Senate, February 8, 1979.
of inflation moved up from 6V2 percent during
1977 to %lA percent last year.
The acceleration of inflation occurred while
product and labor markets were tightening. By
the end of the year, the economy was operating
at rates of capital and labor utilization that,
although not quite as high as during the 1974
price surge, were nevertheless substantial. An
intensification of cost pressures, accompanied
by incipient excess demand, was the principal
source of inflation in the past year.
The sharp rise in production costs was the
result of a combination of rapidly rising labor
compensation and dismal productivity performance. Hourly compensation rose at a 93A percent
annual rate during 1978—more than 2 percentage points faster than in 1977. A good deal of
the acceleration from 1977 to 1978—perhaps
about half—can be attributed directly to federally mandated increases in minimum wages and
in social insurance taxes. Weak productivity
growth exacerbated cost pressures, and as a
result, unit labor costs accelerated sharply to a
9 percent rate during 1978 from just over 6
percent a year earlier.
Such rapid acceleration in costs, being transmitted to prices, often leads to further acceleration of costs including wage demands.
Mr. Chairman, members of this committee, 1
am pleased to present the views of the Board
of Governors of the Federal Reserve System on
extending the Council on Wage and Price Stability for two years. The council can play an
important role in the fight against inflation, and
the board supports extending the authority of
the council to 1981.
In the past year inflation has worsened considerably, and remains the nation's major economic problem. Over the four quarters of 1978,
most general price measures rose about 9 percent—substantially faster than the 6V2 percent
rate in 1977. To some extent the acceleration
of inflation last year reflected a sharp run-up in
farm prices, which are particularly vulnerable
to temporary disturbances. A more troubling
longer-run development in 1978, however, was
the upward trend in prices that are more closely
associated with movements in production costs.
When food and energy prices are excluded from
the gross business product deflator, this measure
134
Federal Reserve Bulletin • February 1979
Throughout the 1970s this chronic cycle of wage
and price increases has been curtailed just
briefly by downturns in activity, only to worsen
again when the economy heated up. One important contributing factor in the spiral has been
the sluggish performance of productivity in recent years.
Over time, mechanisms have been developed
in the labor market—either formally or informally—to ensure that wages kept pace with
increases in the cost of living. As long as growth
in labor productivity matched demands for
higher wages, real income continued to grow
without generating significant upward pressure
on prices. In the 1970s, however, productivity
increases faltered, and it now appears that, at
least in the near term, the trend rate of productivity growth is likely to be only about half the
nearly 3 percent trend over the two preceding
decades.
The recent low rate of productivity growth
adds a more serious dimension to our inflation
problem. Demands for the type of real income
gains achieved a decade ago are inconsistent
with current productivity trends. Pressures to
achieve unrealistically large increases in real
incomes in the face of slow productivity growth
threaten to result in an escalation of inflation.
Moreover, even if real-wage demands are
brought into line with productivity, inflation will
not automatically diminish. Forceful efforts additionally must be made to break into the vicious
circle in which prices determine wages and
wages determine prices.
The main burden of the anti-inflation battle
has fallen, and probably must continue to fall,
on the monetary and fiscal authorities. The appropriate goal of monetary and fiscal policy in
the coming year is to moderate the pace of
current economic growth in order to alleviate
the inflationary pressures brought on by strains
on the nation's productive capacity. Recognizing this, the Federal Reserve has moved in
the direction of monetary restraint, and the
President has recommended a tighter rein on
government spending. It is highly desirable not
to place the entire burden of the fight against
inflation on demand management. As our policies of restraint ease pressures from the demand
side, an incomes policy such as the one pro-
posed by the President last October can make
an important contribution to unwinding the
wage-price cycle.
The program of voluntary wage and price
guidelines set by the President is a direct attempt
not only to halt the upward spiral of costs and
prices but also to reduce the rates of increases
in wages and prices significantly from current
rates. In this regard, the guidelines are based
on sound economic logic. They allow labor
compensation to rise IV2 percent—7 percent for
private payments plus 1/2 percent for federal
payroll taxes. Assuming trend productivity
growth of about 1 V2 percent, unit labor costs—a
major factor in price determination from year
to year—could drop, under the guidelines, to
about 6 percent. If prices slowed down, following the guidelines, and if cost pressures diminished, real income gains would continue to be
realized but at a significantly lower rate of
inflation.
Favoring the prospects of the wage-price restraint program is the fact that it has been
undertaken in the face of an expected slowing
of economic activity. Previous attempts to institute incomes policies, such as the Kennedy-Johnson guideposts, were rendered ineffective by a worsening of demand pressures.
Business and labor leaders can be expected
voluntarily to adopt moderation in setting wages
and prices only if they are persuaded that the
Federal Reserve, the President, and the Congress have committed monetary and fiscal policies to containing inflation.
The Council on Wage and Price Stability has
been given the task by the President to implement the voluntary guidelines program. This
implementation has two parts: (1) translating the
President's broad request for wage and price
moderation into a set of specific standards and
regulations and (2) monitoring actual setting of
wages and prices in order to determine how
firms and employee groups meet the standards.
It is desirable that a single organization perform
both tasks. This allows the knowledge gained
in establishing standards for a vast array of
industrial pricing and labor-management arrangements to be applied to fair and timely
determinations of compliance.
In addition, the council has the responsibility
Statements
to notify the public of its findings; this is an
important function since the weight of public
opinion can be a critical tool in building support
for compliance with the program. These extensive tasks now are being performed by a staff
of just over 100, and the President has proposed
that the number be expanded to about 230. This
increase, it seems fair to say, does not pose the
threat of an unwieldly bureaucracy.
Aside from the day-to-day task of administering the guidelines program, the council has
an opportunity to gain insights into the complex
machinery of wage and price determination. As
the council's work proceeds, it will be able to
identify sectors of the private economy that
require special attention. One example to date
has been the council's several reports on hospital charges and physicians' fees. Medical care
costs have been a significant factor in exacerbating inflation for more than a decade.
The council is charged as well with examining inflationary pressures that emanate from
government activities. In recent years we have
become increasingly aware that many government regulations that contribute to desirable
social goals also may involve hidden costs,
particularly in the form of higher prices. The
council has the important function of injecting
cost-consciousness into environmental, safety,
and other standards that frequently and exten-
to Congress
135
sively ignore costs and also of encouraging
competition when regulation has weakened it.
Finally, I would like to comment briefly on
the real-wage insurance program that the President has proposed in conjunction with the
guidelines program. Its purpose is to strengthen
the guidelines program by encouraging acceptance of the 7 percent wage standard. It would
do this by reducing the prospect of erosion of
real incomes if actual inflation were to exceed
7 percent. Participating wage earners would
receive a tax rebate of up to $600.
This form of tax-oriented incomes policy
should be more cost-effective when rising labor
costs are the principal source of inflation. In
such a situation, broad compliance with wage
and price guidelines would hold down the rate
of inflation. That would keep the cost of realwage insurance moderate. Unpredictable increases in prices, such as food or energy, could
raise inflation rates even in the presence of wage
restraint. In such a case, the cost of the program
might mount excessively. Limits, therefore,
have been proposed on the extent of compensation provided by the program in order to control
the risk to the federal government of adding
substantially to the deficit. Although a real-wage
tax incentive may be difficult to design, it deserves serious consideration as one part of a
broadly based anti-inflation effort.
•
137
Announcements
STATEMENT
EXPANDED
OF POLICY
RULEMAKING
REGARDING
PROCEDURE
The Federal Reserve Board on January 15,
1979, issued a policy statement expanding its
rulemaking procedures to improve the quality
and public understanding of its regulations.
The principal elements of the procedures that
the board will follow, with some exceptions,
in developing new or revised Federal Reserve
regulations include the following:
Early involvement of the public, by such means
as advance notice of rulemaking; identification of
areas in which the board would particularly like
comment; open conferences or informal public
hearings; and direct solicitation of the views of
interested persons or groups, with attention given
to getting views from differing sources.
Early involvement of designated members of the
board.
Staff preparation of a regulatory analysis, prior
to proposals for rulemaking, that will describe the
need for and purposes of a new or revised regulation; examine available alternative courses of action; estimate the possible economic impact and
the burdens of compliance, recordkeeping, and
reporting that would be involved, and indicate the
reasons for the particular course of action selected.
Staff presentation of a regulatory proposal to the
board only after the designated board members are
satisfied that the issues have been adequately considered at the staff level, that the proposal is
understandable, and that it will impose no unnecessary burdens.
Board consideration of regulatory proposals,
ordinarily, at meetings open to public observation.
Allowance of at least 60 days for public comment.
Staff analysis of comment received and presentation of the analysis to designated board members. The board will consider a proposal for action
only after the designated board members are satisfied that public comment has received full consideration.
Final board action, ordinarily at an open meeting. The board's announcement of its action will
discuss reasons for the action and the board's
reasons for accepting or rejecting suggestions received from the public.
Board publication of a descriptive semiannual
agenda of regulations under development or review, and of the status of regulatory development
projects already announced.
Board review of each of its regulations at least
once each five years.
When delays occasioned by the new, lengthier rulemaking procedures would not be necessary or in the public interest, the board will
adopt expedited procedures. Section 1 of the
policy statement provides a number of examples
of regulatory actions for which expedited procedures are appropriate.
The new procedures do not apply to the
formulation of monetary policy or to amendments of regulations required to implement
monetary policy decisions of the Board of Governors or the Federal Open Market Committee.
FOMC
MINUTES
The Federal Open Market Committee announced on January 18, 1979, that minutes of
discussions and actions at its meetings during
1973 are now available for public inspection and
are being transferred to the National Archives.
These minutes are contained in approximately
1,384 pages of typed material. Their transfer
has been arranged with the understanding that
the National Archives will make them available
for inspection by interested persons under its
usual rules and procedures. Similar records for
earlier years are already available at the National
Archives on the same basis.
Copies of the minutes for 1973 will also be
made available later for inspection at the board's
offices in Washington and at each Federal Reserve Bank and Branch, the same procedure
followed for earlier records. Meanwhile, a work
138
Federal Reserve Bulletin • February 1979
copy is now available for inspection at the
board's offices, and another at the Federal Reserve Bank of New York.
The National Archives will furnish microfilm
copies of the minutes for a fee. The minutes
through 1972 are now available in this form,
and those for 1973 will be available later.
Release of the minutes since 1962 has presented special problems involving international
financial relationships. A number of passages
have been deleted from the minutes for 1962
through 1973, with a footnote in each case
indicating the general nature or subject of the
deleted matter.
CONSUMER
RIGHTS
AFFAIRS
COMPLIANCE
AND
CIVIL
PROGRAM
The Federal Reserve Board on February 8,
1979, announced an expanded and strengthened
program to improve compliance by member
banks with consumer protection laws and regulations for which the Congress has assigned
responsibilities to the board.
In March 1977 the board adopted an experimental, nationwide program of this kind. The
program the board has now adopted, on a permanent basis, builds on what has been learned
over the two years of operation of the previous
compliance program; provides for additional
staff resources, particularly in specialized consumer law bank examination; and gives added
weight to civil rights compliance by banks.
In issuing its consumer affairs and civil rights
compliance program the board said:
The Board believes that any type of discrimination prohibited by the civil rights laws is detrimental to the nation and to society. The Board
is convinced that such discriminatory practices by
banks are not only illegal but are not in the best
interests of the banks, the communities they serve,
or the individuals residing in those communities.
The Board will investigate thoroughly each complaint of discrimination it receives regarding a
State member bank as well as any indication of
noncompliance revealed during an examination of
a State member bank. In any instance of unlawful
discrimination, the bank will be accountable for
appropriate remedies and penalties as provided for
in the applicable laws and will be required to take
prompt action to correct the violation.
As a key part of its compliance program, the
board authorized continuation of the educa-
tional-advisory service that the Federal Reserve
Banks have been operating during the past two
years. This involves visits by Federal Reserve
examiners, at the request of a member bank,
to educate the bank's personnel in consumer
credit protection laws and regulations and in the
responsibilities of banks under civil rights laws.
From April 1977 through June 1978 personnel
from Federal Reserve Banks conducted 1,224
educational-advisory service visits to member
banks. 4 'This service presents the System with
a unique opportunity and means by which to
enhance its effectiveness in the area of consumer
credit and civil r i g h t s , " the board said. The
Reserve Banks reported that the service was
well received and was regarded as a valuable
means of instruction and as an effective tool to
help banks help themselves to comply with their
consumer credit protection and civil rights responsibilities.
Other main elements of the Federal Reserve
compliance program are:
1. Specialized consumer affairs and civil
rights compliance examinations by specially
trained examiners.
2. Dissemination of a compliance handbook
intended particularly for the education of banks
and for the use of examiners, but to be generally
available. This will delineate the consumer laws
and regulations to be complied with, describe
examination and investigative procedures, and
give instructions to examiners on how to proceed in initiating corrective action.
3. Adjustment of the frequency of special
consumer affairs and civil rights examinations,
so that state member banks with the highest
ratings are examined less frequently and banks
with lower ratings receive compliance examinations more frequently.
4. Continued development of an expert staff
of Federal Reserve bank examiners, specializing
in consumer affairs and civil rights law, trained
mainly in schools conducted by the board.
5. Strengthened and specialized arrangements for handling complaints, with emphasis
on investigative follow-up to complaints of a
serious nature, such as those alleging unlawful
discrimination in the extension of credit.
6. Operation of the compliance program
through senior officials at Reserve Banks. A
Announcements
compliance section of the board's Division of
Consumer Affairs will provide information and
assistance to the compliance officers of the Reserve Banks, with the objective of providing
high quality and uniform assistance to consumers throughout the nation.
REGULATION
AND
Y: POLICY
STATEMENT
REVISION
The Federal Reserve Board has adopted a policy
statement and revised its Regulation Y (Bank
Holding Companies) to implement the Change
in Bank Control Act of 1978. 1
The new act requires persons acquiring control of a state member bank or a bank holding
company to file a notice 60 days in advance
with the board. The board can disapprove such
proposed changes in control. The act becomes
effective March 10, 1979.
Changes in control due to acquisitions by
bank holding companies and changes in control
of insured banks resulting from mergers, consolidations, or other similar transactions are not
covered by the act, since they are already subject to regulatory approval under other laws.
Certain other exemptions from the prior notice
requirements of the act, including notice of
acquisition of control of foreign bank holding
companies, are noted in the board's policy
statement and regulation.
In view of the early effective date of the act,
the board issued its regulatory revision in final
form, in order to avoid disruption of transactions
that are in progress.
However, the board invited comment on the
regulation (by April 6, 1979) and said that it
intends to adopt any needed amendments to its
rules as soon as practicable.
The board's policy statement on the Change
in Bank Control Act outlines general procedures
for compliance and summarizes the principal
provisions of the act, the exemptions, and the
procedures to be followed by the board in carrying out the act.
The policy statement said that if the board
disapproves a proposed change in control, it will
1. Title VI of the Financial Institutions Regulatory
and Interest Rate Control Act of 1978.
139
notify the party seeking control within three
days after its decision, giving its reason for
disapproval. Otherwise, unless the period is
extended as provided for in the act, the transaction may be completed 61 days after a Federal
Reserve Bank receives a substantially complete
notice. The Reserve Bank will notify acquiring
parties of the date of receipt of such a notice.
To facilitate transactions, the board may issue
notice, after consultation with state banking
authorities, that it does not intend to disapprove
a proposed transaction.
In deciding whether to disapprove a change
in control, the board is required by the act to
consider competitive effects, the financial condition of the person proposing the acquisition,
and the competence, experience, and integrity
of that person and of the proposed new management.
The policy statement notes, further, that:
The Act defines " c o n t r o l " as the power—directly or indirectly—to vote 25 percent or more
of any class of voting securities, or to direct
the management or policies of a bank holding
company or bank. The Board has established
the following presumptions of control—subject
to rebuttal:
Where an institution is subject to registration
under Sec. 12 of the Securities Exchange Act of
1934, and the transaction would result in a person,
or group acting in concert, having voting control
of 10 percent or more of any class of the institution's voting stock.
Where a transaction would result in a person,
or group acting in concert, having 10 percent of
any class of the voting stock of a State member
bank or a bank holding company, and the acquiring person or group would be the largest shareholder in the institution.
The regulation issued by the board formalizes
the principal parts of the policy statement. It
permits individuals to file current financial
statements as part of their notice (the act requires organizations to file financial data for five
fiscal years).
The regulation also delegates authority to the
Federal Reserve Banks to permit proposed acquisitions when there has been no objection, to
extend the time (normally 60 days) the board
may take to consider proposals, to determine
whether notices provide all necessary information, and to settle disputes as to whether a
140
Federal Reserve Bulletin • February 1979
person proposing to acquire less than 25 percent
of a bank holding company or state member
bank should file advance notice.
The regulation does not exempt from notice
requirements proposed acquisitions of control of
foreign-based bank holding companies, most of
whose assets and revenues are in the United
States. The board particularly requests comment
on this aspect of the regulation.
The other federal regulators of financial institutions are preparing similar policy statements
and rules under the new act.
BANK
RATING
HOLDING
COMPANY
SYSTEM
The Federal Reserve Board on February 7,
1979, adopted a system for appraising and rating t
the performance and financial condition of bank
holding companies.
The bank holding company rating system
extends a program of intensified supervision of
bank holding companies the Federal Reserve put
into effect at the beginning of 1978. That program includes requirements for annual on-thespot inspections of most bank holding companies with consolidated assets greater than $300
million as well as the application to such companies of standardized examination criteria.
Building on this supervisory program, the
board adopted a system that will be used nationwide by the Federal Reserve to rate the
strengths and weaknesses of parent bank holding
companies and their bank and nonbank subsidiaries and to assess operational characteristics
such as the organization's earnings, the adequacy of its capital, and its management.
Each of these component aspects of the holding company will be given a rating of one to
five, with one representing the best rating and
five the lowest.
The component ratings will then be combined
into an overall financial composite rating, also
on a scale of one (best) to five (lowest).
In addition, holding companies will be given
a separate rating on the ability and competence
of the company's management.
The bank holding company rating system
adopted by the board is similar in concept to
the uniform interagency system for rating banks
adopted by the Federal Reserve, Office of the
Comptroller of the Currency, and the Federal
Deposit Insurance Corporation in May 1978.
REPORT
ON REMOTE
DISBURSEMENT
The Federal Reserve Board on January 11,
1979, made public a statement of policy concerning the practice known as remote disbursement and announced a course of action
intended to discourage such abuse of the check
collection system. At the same time the board
sent to the Congress a status report on Federal
Reserve efforts to eliminate the practice.
Remote disbursement involves arrangements
between a bank and a customer (frequently a
corporation) designed expressly to delay payment of the customer's checks. For example,
in such an arrangement, a bank customer making most of its payments in Pennsylvania might
make payments by checks drawn on a bank in
Oregon. Recipients of these checks may suffer
a delay in receiving credit in their accounts.
The board has the following principal concerns with respect to remote disbursement:
1. It can expose both the bank involved and
recipients of the remotely disbursed payments
to risks of loss—that they may not be aware
of—during the deliberately prolonged clearing
time.
2. Consumers and small businesses—who
may not be in a position to negotiate better
payment terms—may be denied prompt access
to funds due to them.
3. Remote disbursement could result in unsafe or unsound banking practices if the customer's funds at the remote disbursing bank are
not sufficient to cover the customer's checks
(that is, if settlement procedures between the
customer and the bank are not on an "immediate
f u n d s " or "collected b a l a n c e " basis). This
would result in unsecured extensions of credit
by the bank to the customer. Such extensions
of credit might not be warranted as a matter
of loan policy. In the case of small banks, such
loans might exceed the legal limit for lending
to any one customer.
The board gave the following policy guidance: The board believes the banking industry
has a public responsibility not to design, offer,
Announcements
promote or otherwise encourage the use of a
service expressly intended to delay final settlement and which exposes payment recipients to
greater than ordinary risks. The board is calling
on the nation's banks to join in the effort to
eliminate remote disbursement practices intended to obtain extended float.
There is no intention to discourage corporate
disbursement arrangements with banks that provide for improved control over daily cash requirements, provided that these arrangements do
not result in the undesirable effects noted above.
Banks should provide the cash management
services needed by their customers through the
use of payments methods that facilitate prompt
funds availability to payment recipients and that
protect banks from unnecessary risk.
To provide incentives to banks to design and
use payment methods that are in keeping with
the public interest the board has adopted a plan
consisting of the following actions:
1. Direct telephone or personal contacts between members of the Board of Governors or
Reserve Bank Presidents and the chief executives of banks and bank holding companies
believed to be offering remote disbursement
services. To date these contacts have been very
successful in obtaining voluntary bank action to
terminate the practice.
2. Review by bank examiners of settlement
procedures between banks and their customers.
Bank examiners have been alerted and directed
to pay particular attention to the check service
offerings of banks to their customers.
3. Implementation of a late deposit " p a c k a g e
sort" 2 option for check clearance at all Reserve
offices. This option is intended to make it possible for banks around the nation to accelerate
collection of checks drawn on remotely located
collection points.
4. Consideration of the need, desirability,
and feasibility of regulatory or legislative moves
to designate remote disbursement as an unfair
banking and business practice, to change the
Federal Reserve credit availability schedule for
2. Package-sorted checks are checks sent to the Federal Reserve for collection, presorted and packaged
by the name of the banks on which the checks are
drawn. This simplifies and speeds check clearance by
the Federal Reserve.
141
remotely disbursed checks, or to require final
settlement for payments within normal collection times including limitation on the use of
depository transfer checks."5
INFORMATION
COMMUNITY
ABOUT
REINVESTMENT
ACT
The four federal supervisors of financial institutions responsible for enforcing the Community
Reinvestment Act (CRA) on January 15, 1979,
issued staff answers to the most frequently received inquiries about the act, the implementing
regulations, and related examination procedures. 4
The agencies stated that the questions and
answers developed by agency staffs should not
be taken as official interpretations. Their purpose is solely to be helpful to financial institutions and to the public by providing useful
background information.
An accompanying statement signed by officials of the agencies provides financial institutions with policy guidance on the general manner in which they should address their responsibilities under C R A . The agency officials said:
In carrying out their responsibilities under CRA,
financial institutions should focus on the spirit of
the legislation and try to avoid narrow, legalistic
interpretations of the legislation or the regulations.
The agencies believe that the financial institutions,
relying on their own resources, are capable of
complying with the requirements of the regulation.
The statement added that while the agencies
want to provide helpful information and guidance—and will issue further questions and answers in the future—they wish to keep official
interpretations of CRA regulations to a minimum.
The CRA became effective November 6,
1978. It is intended to encourage federally insured commercial banks, mutual savings banks,
3. A preauthorized check drawn on the customer's
account in another bank.
4. The agencies are: the Federal Home Loan Bank
Board (supervisor of savings and loan associations); the
Comptroller of the Currency (supervisor of national
banks); the Federal Deposit Insurance Corporation
(supervisor of state-chartered banks that are not members of the Federal Reserve System and of mutual
savings banks); the Federal Reserve Board (supervisor
of state-chartered member banks).
142
Federal Reserve Bulletin • February 1979
and savings and loan associations to help meet
the credit needs of their entire communities,
including low- and moderate-income neighborhoods, while preserving the flexibility needed
by financial institutions to operate safely and
soundly.
With respect to the staff questions and answers, the agencies said:
Since the final regulations and examination procedures have been made public, a number of
questions have been raised about them by financial
institutions and individuals. In order to assist financial institutions in meeting their responsibilities
under CRA and to increase public understanding
. . . the staffs of the agencies have prepared the
attached paper which presents the most common
questions about the CRA regulation and examination procedures and the staffs' responses.
The questions and answers provide staff
guidance as to the meaning the agencies attach
to key terms in the act and their implementing
regulations, such as 4 'office," "local community," and " s m a l l " business or farm. They also
address such subjects as the contents of the
institutions' CRA statements that must be
prepared to comply with CRA regulations, the
availability of public comment files, and the way
institutions should deal with the delineation of
low- and moderate-income neighborhoods in
their communities.
MONEY
STOCK
2. Money stock seasonal factors, 1979
Month or week
July
Annual
Quarterly
Ql
Q2
Q3
Q4
Old
Revised
Old
7.2
7.3
8.0
6.2
9.9
7.6
4.5
6.6
9.2
8.1
4.4
6.9
7.9
8.9
7.5
Old
Revised
8.5
9.1
9.4
7.0
8.4
9.9
7.7
7.7
7.8
10.1
9.8
8.1
8.4
10.4
9.4
Revised
.9920
.9870
.9920
.9970
.9990
1.0030
1.0250
.9790
.9830
1.0130
.9800
.9960
.9990
1.0020
1.0070
1.0080
1.0080
1.0050
.9960
1.0020
1.0080
1.0060
1.0050
1.0030
1.0060
.9750
.9850
.9750
.9820
.9950
1.0080
1.0030
.9970
.9980
1.0070
1.0170
1.0040
.9890
.9930
1.0000
1.0050
1.0320
1.0030
.9980
.9940
.9940
.9900
.9920
1.0000
1.0010
.9980
.9970
.9930
.9910
.9920
1.0050
1.0200
1.0250
1.0100
1.0300
10
17
24
31
1.0060
1.0060
.9960
.9850
.9760
1.0760
1.0470
1.0360
1.0070
.9870
.9959
.9983
.9990
1.0000
1.0000
.9917
.9948
.9963
.9973
.9974
1.0379
1.0214
1.0042
.9951
.9895
Feb.
7
14
21
28
.9900
.9920
.9895
.9775
.9910
.9840
.9740
.9660
1.0005
1.0016
1.0025
1.0029
.9994
1.0016
1.0029
1,0036
.9839
.9779
.9707
.9679
Mar.
7
14
21
28
.9940
.9960
.9920
.9840
.9850
.9880
.9820
.9690
1,0050
1.0067
1.0073
1.0077
1.0063
1.0081
1.0086
1.0084
.9741
.9801
.9856
.9957
11
18
25
.9930
1.0090
1.0030
.9900
1.0050
1.0180
1.0290
1.0070
1.0104
1.0100
1.0075
1.0064
1.0094
1.0093
1.0059
1.0036
.9951
.9833
.9720
.9650
9
16
23
30
.9880
1.0075
1.0020
.9960
.9930
.9980
.9810
.9860
.9710
.9730
1.0060
1.0072
1.0083
1.0083
1.0088
1.0023
1.0040
1.0052
1.0060
1.0056
.9655
.9713
.9781
.9876
.9939
13
20
27
1.0050
1.0090
1.0030
.9935
.9950
1.0000
.9980
.9840
1.0079
1.0065
1.0036
1.0029
1.0055
1.0049
1.0025
1.0005
.9953
.9951
.9911
.9967
4
11
18
25
1.0090
1.0190
1.0110
1.0020
1.0140
1.0120
1.0110
.9920
1.0042
1.0040
1.0028
1.0026
1.0003
1.0002
.9997
.9999
.9989
.9919
.9892
.9903
8
15
22
29
.9960
1.0120
1.0080
1.0020
.9910
.9930
.9950
.9960
.9880
.9740
1.0016
.9998
.9982
.9971
.9969
1.0002
1.0015
1.0012
1.0009
1.0006
.9935
.9996
1.0029
1.0061
1.0108
Sept.
5
12
19
26
1.0030
1.0050
.9970
.9880
.9940
1.0000
1.0010
.9750
.9963
.9951
.9924
.9926
1.0001
.9995
.9972
.9964
1.0132
1.0158
1.0189
1.0247
Oct.
3
10
17
24
31
.9910
1.0090
1.0020
.9960
.9870
.9980
1.0050
1.0090
.9900
.9950
.9946
.9958
.9942
.9937
.9919
.9974
.9989
.9979
.9967
.9944
1.0314
1.0293
1.0250
1.0216
1.0202
Nov.
7
14
21
28
1.0050
1.0100
1.0080
1.0030
1.0120
1.0130
1.0000
.9920
.9905
.9894
.9903
.9897
.9936
.9932
.9931
.9924
1.0077
1.0062
1.0105
1.0140
12
19
26
1.0120
1.0190
1.0190
1.0260
1.0180
1.0230
1.0300
1.0280
.9909
.9923
.9915
.9925
.9922
.9921
.9905
.9901
1.0176
1.0249
1.0322
1.0366
July
M-3
M-2
M-l
Period
NonMember member
banks
banks
Certificates
of
deposit
Weekly
1. Comparison of old and revised money stock
growth rates, 1978
Annual rates of growth based on quarterly-average data;
percent
Time deposits
other than CDs
Monthly
REVISION
The money stock and related measures have
been revised to incorporate the June 1978
benchmark adjustments for nonmember banks
and revised seasonal factors.
Table 1 shows rates of change for M - l , M-2,
and M-3 measures for 1978. Monthly and
Demand
Currency deposits
Announcements
weekly M - l and M-2 seasonal factors for 1979
appear in table 2.
Benchmark adjustments for M - l were minor,
raising the level of the series $100 million in
June 1978 and about the same amount at the
end of the year. The benchmarking raised M-2
about $2.0 billion in June 1978 and more than
$4.0 billion at the end of 1978.
Seasonal revisions smoothed the quarterly
and monthly data. M - l growth in April was
lowered 3 percentage points and in November
was raised about the same amount. Revisions
for other months were smaller. The current
revision also incorporates new seasonal factors
for M-2 and M-3, but the changes had little
impact on growth rates for these aggregates.
Monthly and weekly data from 1959 to date
are available from the Banking Section of the
Board's Division of Research and Statistics.
PROPOSED
ACTIONS
The Federal Reserve Board has proposed for
public comment a statement setting forth the
rights to privacy that customers of .financial
institutions have, under a new statute, when a
federal agency seeks financial information about
them. The board asked for comment by February 16, 1979.
The government agencies that supervise federally insured depositary institutions have proposed regulations to carry out the new Depository Institution Management Interlocks Act. 5
Public comment on the proposal should be received by March 5, 1979.
The Federal Reserve Board on February 12,
1979, proposed suspension of a recent amendment of its Regulation Z (Truth in Lending)
concerning the "cooling o f f " period for consumers who pledge their home as security for
open-end credit arrangements. The board requested comment by April 16, 1979.
5. The agencies are: the Federal Home Loan Bank
Board; the Federal Deposit Insurance Corporation; the
National Credit Union Administration; the Comptroller
of the Currency; and the Board of Governors of the
Federal Reserve System.
MEETING
OF
CONSUMER
143
ADVISORY
COUNCIL
The Consumer Advisory Council met on February 21 and 22, 1979, in Washington, D . C . The
meeting, which was open to the public, dealt
with proposed regulations on consumer liability
for unauthorized use of credit and debit cards,
truth in lending amendments connected with
electronic fund transfers, the results of a recent
survey of banking practices, and other matters.
The council advises the Federal Reserve
Board on its responsibilities regarding consumer
credit legislation and regulation.
CHANGES
IN BOARD
STAFF
The Board of Governors has announced the
temporary assignment of Edward T. Mulrenin,
Assistant Controller, Office of the Controller,
as Assistant Secretary of the Board, Office of
the Secretary, effective March 1, 1979. Mr.
Mulrenin replaces John M. Wallace, who has
returned to the Federal Reserve Bank of Atlanta.
The board has also announced the deaths of
Thomas J. O'Connell, Counsel to the Chairman,
Office of Board Members, and John E. Reynolds, Counselor, Division of International Finance.
SYSTEM
ADMISSION
MEMBERSHIP:
OF STATE
BANKS
The following banks were admitted to membership in the Federal Reserve System during the
period January 16 through February 15, 1979:
Florida
Miami
Oregon
Junction City
Texas
Baytown
Virginia
Newport News
Plaza Bank of Miami
Tri-County Banking
Company
Citizens Bank and Trust
Company of Baytown
First City Bank of
Newport News
145
Record of Policy Actions
of the Federal Open Market Committee
MEETING HELD ON DECEMBER 19, 1978
1. Domestic Policy Directive
The information reviewed at this meeting suggested greater strength
in economic activity than had been evident at the time of the
C o m m i t t e e ' s meeting a month earlier; growth in output of goods
and services in the current quarter now appeared to be somewhat
faster than the annual rate of 3 . 4 per cent indicated for the third
quarter by preliminary estimates of the C o m m e r c e Department. The
rise in average prices, as measured by the fixed-weight price index
for gross domestic business product, appeared to be close to the
annual rate of 8.2 per cent estimated for the third quarter.
Staff projections for the year ahead differed little f r o m those
prepared a month earlier. They continued to suggest a gradual
slowing in the growth of economic activity as the year progressed.
The rise in average prices was projected to remain rapid during
1979 and the rate of unemployment to rise marginally.
In N o v e m b e r , the index of industrial production advanced an
estimated 0 . 7 per cent, somewhat more than the gains in the
preceding 2 months but close to the average monthly increase since
the beginning of the year. Nonfarm payroll e m p l o y m e n t grew
substantially in November for the second consecutive month. In
manufacturing also, a large increase in e m p l o y m e n t was registered
for the second month in a row and the average workweek rose
somewhat further. The u n e m p l o y m e n t rate was unchanged at 5 . 8
per cent, close to its low for the year.
The dollar value of total retail sales expanded substantially in
November and revised data indicated a sizable advance for October
as well. Unit sales of new automobiles declined somewhat in
November.
Total housing starts were at an annual rate of 2 . 1 million units
in both October and N o v e m b e r . Sales of new and existing singlefamily houses rose to new highs in October.
A 146
Federal Reserve Bulletin • February 1979
The latest Department of Commerce survey of business plans,
taken in late October and November, suggested that spending for
plant and equipment would expand at an annual rate of nearly 16
per cent in the current quarter but at the markedly lower rate of
about 8 per cent in the first half of 1979. The survey also indicated
that in 1978 as a whole fixed investment outlays would be 12.7
per cent greater than in 1977. Manufacturers' new orders for
nondefense capital goods advanced sharply in October, following
sizable increases in other recent months.
The index of average hourly earnings of private nonfarm production workers increased at an annual rate of 8.3 per cent over
the first 11 months of 1978, nearly 1 percentage point above the
rise during 1977. Average producer prices of finished goods rose
substantially in November for the third consecutive month despite
more moderate increases in producer prices of food products than
in the two earlier months. In October, the consumer price index
advanced at an annual rate of 9 per cent, and the rate of increase
for the year to date—about 9 ¥2 per cent—was nearly 3 percentage
points above that during 1977.
In foreign exchange markets the trade-weighted value of the
dollar against major foreign currencies fell sharply following the
O P E C announcement on December 17 of a larger-than-anticipated
increase in oil prices for 1979. Over the previous few weeks the
dollar had declined slightly on balance. Nevertheless, at the time
of this meeting it was still about 7 per cent above its low reached
just prior to the November 1 announcement of the new program
to strengthen the dollar. The U.S. trade deficit in October remained
close to the annual rate recorded in the second and third quarters
but well below that in the previous two quarters.
The growth of total.credit at U.S. commercial banks was appreciably slower in November than in September and October. However, bank loans other than security loans continued to expand
rapidly. To finance this expansion banks liquidated a sizable amount
of security holdings and issued a substantial volume of large-denomination time deposits. Outstanding commercial paper of nonfinancial businesses rose considerably in November for the second
consecutive month.
The narrowly defined money supply ( M - l ) declined at an annual
rate of about 4V2 per cent in November. The contraction reflected,
Record of Policy Actions
of
FOMC
among other things, the shifts of funds from demand deposits to
savings deposits associated with the introduction of the automatic
transfer service (ATS) and effects of the substantial rise in shortterm market interest rates since April. Meanwhile, growth of M-2
and M-3 slackened further. Sales of 6-month money market certificates at commercial banks and nonbank thrift institutions continued
strong in November, but savings deposits and time deposits subject
to interest rate ceilings contracted at commercial banks. Total
inflows of funds to nonbank thrift institutions slowed in November
after growing rapidly in the preceding 3 months; the rate of
expansion was still considerably above that in the first half of the
year. Over the first 11 months of the year, M - l , M - 2 , and M - 3
grew at annual rates of about 7 L A, SLA, and 9LA per cent, respectively.
At its meeting on November 21, the Committee had agreed that
early in the inter-meeting period System open market operations
should be directed toward attaining a weekly-average Federal funds
rate of about 9% per cent, slightly above the level prevailing at
that time. Subsequently, the objective for the Federal funds rate
was to be raised or lowered within the range of 9%. to 10 per
cent. In setting a specific objective for the funds rate, the Manager
of the System Open Market Account was to be guided mainly by
a range of tolerance of 6 to 9V2 per cent for the annual rate of
growth in M - 2 over the N o v e m b e r - D e c e m b e r period, provided that
the rate of growth in M - l over the same period did not appear
to exceed 5 per cent.
Immediately following the November 21 meeting the Manager
began to seek bank reserve conditions consistent with an increase
in the weekly-average Federal funds rate to around 9% per cent.
Incoming data during the inter-meeting period suggested initially
that growth in M-2 would be well within the range specified by
the Committee and that growth in M - l would be below 5 per cent.
In subsequent weeks, newly available data led to progressively
lower estimates of growth, and by the end of the first week in
December the projections might, under normal circumstances, have
called for a reduction in the objective for the Federal funds rate
to 9% per cent. On December 8, however, the Committee approved
a recommendation by the Chairman to instruct the Manager to
continue aiming for a Federal funds rate of 97s per cent during
147
A 148
Federal Reserve Bulletin • February 1979
the period before the next regular meeting of the Committee, unless
growth of the aggregates should appear to weaken significantly
further.
Most market interest rates rose further during the inter-meeting
period, as financial markets seemed to react to indications of
continued strength in business conditions, added evidence of intense
inflationary pressures, and the O P E C announcement of a large
increase in oil prices. Commercial banks raised the loan rate to
prime business borrowers from 11 per cent to 11 Vi per cent during
the period. In mortgage markets interest rates continued to rise.
In the Committee's discussion of the economic situation and
outlook, most members expressed little or no disagreement with
the staff projection of a gradual slowing of the expansion during
1979 and of a slight rise in the unemployment rate. At the same
time, however, the observation was made that the latest information
provided contradictory indications of underlying trends in economic
activity, and some members commented on the prospects for
alternative courses of activity. The members continued to anticipate
that average prices of goods and services would rise rapidly, and
it was observed that the outlook for inflation had been worsened
by the recent O P E C announcement of a substantial rise in oil prices
during 1979.
With respect to some of the economic information that had
become available recently, it was suggested that the retail sales
and employment statistics—and the apparent rate of growth in G N P
in the current quarter—indicated underlying strength, while the
behavior of the monetary aggregates so far in the fourth quarter
could be symptomatic of current or near-term weakness in demands
for goods and services. Similarly, the latest data on new orders
for nondefense capital goods and on construction contract awards
were strong, but according to the Commerce Department's survey
of business plans, plant and equipment expenditures in the first
half of 1979 would be weak.
Concerning the over-all situation, it was suggested on the one
hand that the current and prospective pace of growth in activity
was too rapid, that output was beginning to press against the limits
of capacity, and that inflationary pressures—which for a long time
had been greater than generally projected—were still increasing.
An alternative appraisal of the latest data was that the strength
Record of Policy Actions
of FOMC
in the current quarter, especially in consumer spending, most likely
was an aberration—similar to others during the past few years—and
that economic activity was remarkably well balanced for the present
stage of the expansion. It was also suggested, however, that the
strength in demands and activity, although possibly persisting for
a quarter or two, might culminate in a recession in the second
half of 1979.
At its meeting in October the Committee had agreed that from
the third quarter of 1978 to the third quarter of 1979 growth of
M - 2 and M - 3 within ranges of 6V2 to 9 per cent and IV2 to 10
per cent, respectively, appeared to be consistent with broad economic aims. M - l was expected to grow over that period within
a range of 2 to 6 per cent, depending in part on the speed and
extent of transfers from demand to savings deposits resulting from
the introduction of ATS. The associated range for the rate of growth
in commercial bank credit was 8V2 to 11 !/2 per cent. The Committee
had also decided that growth of M - 1 + within a range of 5 to 7V2
per cent appeared to be generally consistent with the ranges of
growth for the other monetary aggregates. It had been agreed that
the longer-run ranges, as well as the particular aggregates for which
such ranges were specified, would be subject to review and modification at subsequent meetings.
In the discussion of policy for the period immediately ahead,
most members of the Committee advocated some additional firming
in money market conditions. A few members preferred to direct
operations toward maintaining the money market conditions currently prevailing. No member recommended an easing in money
market conditions per se, but one suggested that whether money
market conditions were firmed or eased be determined altogether
on the basis of the incoming evidence on the behavior of the
monetary aggregates.
Several reasons were advanced for some additional firming in
money market conditions. Available economic data suggested that
growth of output had not yet been slowed and that inflationary
pressures remained intense. The strength of demands for bank loans
and other credit seemed to provide a more reliable indication of
underlying economic conditions than did the recent weakness of
growth in the monetary aggregates. In any case, it was observed,
weakness in monetary expansion following a long period of strong
149
A 150
Federal Reserve Bulletin • February 1979
growth could be accepted for a time. Some additional firming in
money market conditions, moreover, would help to maintain public
confidence in the program to moderate inflation and to support the
foreign exchange value of the dollar.
In support of the preference for maintaining prevailing money
market conditions, rather than firming, it was observed that over
the preceding 2 months the Committee had increased monetary
restraint substantially. Because the evidence on current and
prospective economic developments was conflicting, the Committee
ought to pause and evaluate the effects of its recent actions before
contemplating additional firming; if the unexpected shortfall in
monetary expansion persisted, it might contribute to a recession.
The uncertainties in the current situation also provided the grounds
for the proposal to base the Committee's objective for money
market conditions altogether on the incoming evidence on the
behavior of the monetary aggregates: It was suggested that whether
fundamental economic conditions were strong or weak would
inevitably become evident in renewal of rapid monetary expansion
or in continuation of sluggish expansion, leading in either case
to appropriate objectives for money market conditions.
At the conclusion of the discussion the Committee agreed to
instruct the Manager to direct open market operations toward raising
the Federal funds rate to 10 per cent or slightly higher early in
the period before the next regular meeting and subsequently to
maintain the rate within a range of 93A to IOV2 per cent. With
regard to the objective for the rate within that range, the Committee
instructed the Manager to be guided by ranges of tolerance for
the annual rates of growth of M - l and M-2 of 2 to 6 per cent
and 5 to 9 per cent, respectively. Thus, after a 2-month interruption,
the Committee agreed to return to its practice of specifying a range
rather than only an upper limit for M - l and of instructing the
Manager to give approximately equal weight to the behavior of
M - l and M - 2 in assessing the behavior of the aggregates; it did
so because recent experience had suggested that the impact of ATS
on the annual rate of growth of M - l could be estimated within
fairly narrow limits. However, the Committee decided that the
Manager should respond more quickly to relatively high than to
relatively low rates of growth in the aggregates. Specifically, the
objective for the funds rate was to be raised in an orderly fashion
Record of Policy Actions
of FOMC
within its range if the 2-month growth rates of M - l and M - 2
appeared to be significantly above the midpoints of the indicated
ranges. On the other hand, the objective was to be lowered in
an orderly fashion only if the 2-month growth rates appeared to
be approaching the lower limits of the indicated ranges.
The next regular meeting of the Committee was scheduled for
February 6, 1979, but it was understood that a telephone conference
would be held in mid-January to consider whether supplementary
instructions were needed. It was also understood that the Chairman
would call upon the Committee to consider the need for supplementary instructions if significant inconsistencies appeared to be
developing among the Committee's objectives or if, before midJanuary, the behavior of the monetary aggregates appeared to call
for a reduction in the objective for the Federal funds rate toward
the lower limit of its range.
The following domestic policy directive was issued to the Federal
Reserve Bank of New York:
The information reviewed at this meeting suggests that in the
current quarter real output of goods and services has picked up
somewhat from the rate in the third quarter. In November, as in
October, the dollar value of total retail sales expanded substantially.
Industrial production and nonfarm payroll employment rose considerably further, and the unemployment rate remained at 5.8 per cent.
Over recent months, broad measures of prices and the index of
average hourly earnings have risen rapidly.
The trade-weighted value of the dollar against major foreign
currencies declined sharply following OPEC's announcement on
December 17 of increased oil prices for 1979, after having declined
slightly over the previous few weeks, but it remains substantially
above the low reached just prior to the actions taken on November
1 to strengthen the dollar. The U.S. trade deficit in October was
at about the rate recorded in the second and third quarters.
M-l declined in November, only in part because of shifts of funds
from demand deposits to savings deposits after the introduction of
the automatic transfer service (ATS) at the beginning of the month.
Over the first 11 months of 1978, M-l grew at an annual rate of
about IVA per cent. Growth of M-2 and M-3 slackened further in
November; they grew at rates of about 8LA and 9LA per cent,
respectively, over the first 11 months of the year. Inflows of deposits
to nonbank thrift institutions slowed in November, after having
151
A 152
Federal Reserve Bulletin • February 1979
grown rapidly in the preceding 3 months. Market interest rates in
general have risen further in recent weeks.
In light of the foregoing developments, it is the policy of the
Federal Open Market Committee to foster monetary and financial
conditions that will resist inflationary pressures while encouraging
continued moderate economic expansion and contributing to a sustainable pattern of international transactions. At its meeting on
October 17, 1978, in setting ranges for the monetary aggregates,
the Committee recognized the uncertainties concerning the effects
that the November 1 introduction of ATS would have on measures
of the money supply, especially M-l. Against that background, the
Committee agreed that appropriate monetary and financial conditions
would be furthered by growth of M-2 and M-3 from the third quarter
of 1978 to the third quarter of 1979 within ranges of 6V2 to 9 per
cent and IV2 to 10 per cent, respectively. The narrowly defined
money supply (M-l) was expected to grow within a range of 2
to 6 per cent over the period, depending in part on the speed and
extent of transfers from demand to savings deposits resulting from
the introduction of ATS. The associated range for bank credit is
8V2 to IIV2 per cent. Growth of M-1+ (M-l plus savings deposits
at commercial banks and NOW accounts) in a range of 5 to IV2
per cent was thought to be generally consistent with the ranges
of growth for the foregoing aggregates. These ranges are subject
to reconsideration at any time as conditions warrant.
In the short run, the Committee seeks to achieve bank reserve
and money market conditions that are broadly consistent with the
longer-run ranges for monetary aggregates cited above, while giving
due regard to the program for supporting the foreign exchange value
of the dollar, to developing conditions in domestic financial markets,
and to uncertainties associated with the introduction of ATS. Early
in the period before the next regular meeting, System open market
operations are to be directed at attaining a weekly average Federal
funds rate slightly above the current level. Subsequently, operations
shall be directed at maintaining the weekly average Federal funds
rate within the range of 93A to 1 0 p e r cent. In deciding on the
specific objective for the Federal funds rate the Manager shall be
guided mainly by the relationship between the latest estimates of
annual rates of growth in the December-January period of M-1 and
M-2 and the following ranges of tolerance: 2 to 6 per cent for
M-l and 5 to 9 per cent for M-2. If, giving approximately equal
weight to M-l and M-2, their rates of growth appear to be significantly above the midpoints of the indicated ranges, the objective
for the funds rate shall be raised in an orderly fashion within its
Record of Policy Actions
of FOMC
range; if their rates of growth appear to be approaching the lower
limits of the indicated ranges, the funds rate shall be lowered in
an orderly fashion within its range.
If the rates of growth in the aggregates appear to be falling outside
the limits of the indicated ranges at a time when the objective for
the funds rate has already been moved to the corresponding limit
of its range, the Manager will promptly notify the Chairman, who
will then decide whether the situation calls for supplementary
instructions from the Committee.
Votes for this action: Messrs. Miller, Volcker,
Baughman, Coldwell, Eastburn, Partee, Willes, and
Winn. Votes against this action: Mrs. Teeters and
Mr. Wallich.
Mrs. Teeters dissented from this action because she believed
that for the time being open market operations should be directed
toward maintaining the money market conditions currently prevailing. In her view, the Committee should wait to evaluate the effects
of the substantial firming in money market conditions of the past
2 months before contemplating any additional firming.
Mr. Wallich dissented from this action because he favored a
somewhat more restrictive policy posture than that adopted by the
Committee. In his opinion, the underlying economic situation was
still strong and the strength of demands was adding to inflationary
pressures and expectations while interest rates were not high in
real terms and were not exerting strong restraint.
Subsequent to the meeting, on December 29, 1978, projections
of growth in the monetary aggregates suggested that for the December-January period M - 2 would grow at an annual rate well
below the lower limit of the 5 to 9 per cent range specified by
the Committee and that M - l would grow at a rate in the lower
portion of its range of 2 to 6 per cent. Since the meeting of the
Committee on December 19 the Manager had been aiming for a
Federal funds rate of about 10 per cent or slightly above, although
Federal funds had been trading at higher levels in response to
exceptional demands for excess bank reserves near the end of the
year. The behavior of the aggregates would have called for a
reduction in the objective for the funds rate toward the 93A per
cent lower limit of its specified range. However, in view of
uncertainties about the interpretation of the behavior of the aggre-
153
A 154
Federal Reserve Bulletin • February 1979
gates at this time, and against the background of domestic and
international economic and market conditions, Chairman Miller
recommended that the Manager be instructed to continue to aim
for a Federal funds rate of 10 per cent or slightly above, pending
a review of the situation in the telephone conference, tentatively
planned for January 12.
On December 29, 1978, the Committee modified the domestic
policy directive adopted at its meeting of December 19, 1978, to
call for open market operations directed at maintaining the weeklyaverage Federal funds rate at about 10 per cent or slightly above.
Votes for this action: Messrs. Miller, Volcker,
Baughman, Cold well, Eastburn, Partee, Mrs.
Teeters, Messrs. Wallich, Willes, and Winn. Votes
against this action: None.
On January 12 the Committee held a telephone conference to
review the situation and to consider whether supplementary instructions were needed. However, no change was made in the
instruction to the Manager to continue to direct open market
operations toward maintaining the weekly-average Federal funds
rate at about 10 per cent or slightly above.
2. Authorization for Foreign Currency Operations
Paragraph ID of the Committee's authorization for foreign currency
operations authorizes the Federal Reserve Bank of New York, for
the System Open Market Account, to maintain an over-all open
position in all foreign currencies not to exceed $1.0 billion, unless
a larger position is expressly authorized by the Committee. On
November 1, 1978, an open position of $5 billion had been
authorized. At the meeting on December 19, 1978, the Committee
authorized an increase in this limit to $8 billion to provide further
flexibility for Federal Reserve operations in the foreign exchange
markets undertaken pursuant to the Committee's foreign currency
directive.
Votes for this action: Messrs. Miller, Volcker,
Baughman, Cold well, Eastburn, Partee, Mrs.
Teeters, Messrs. Wallich, Willes, and Winn. Votes
against this action: None.
Record of Policy Actions
of FOMC
Pursuant to an agreement with the Treasury under which the
Federal Reserve would undertake to " w a r e h o u s e " foreign currencies—that is, to make spot purchases of foreign currencies and
simultaneously to make forward sales of the same currencies at
the same exchange rate—the Committee had agreed on December
14, 1978, to raise the amount that the Federal Reserve would be
prepared to warehouse from
billion to $13A billion equivalent
of such foreign currencies. That action had been taken in view
of the impending receipt by the Treasury of somewhat more than
$1^2 billion dollars equivalent of German marks resulting from
its first issuance of securities denominated in foreign currencies
as one of the measures of the broad program announced on
November 1 to strengthen the dollar.
At this meeting the Committee agreed to raise the amount of
eligible foreign currencies that the Federal Reserve would be
prepared to warehouse to $5 billion. The Committee also agreed
to warehouse such currencies for periods of up to 12 months;
previously the agreement had provided that half of the authorized
amount would be for periods of up to 6 months and half for periods
of 12 months. These actions were taken in view of additional
Treasury offerings of securities denominated in foreign currencies
in prospect for early 1979.
Votes for these actions: Messrs. Miller, Volcker,
Baughman, Cold well, Eastburn, Partee, Mrs.
Teeters, Messrs. Wallich, Willes, and Winn. Votes
against these actions: None.
3. Authorization for Domestic Open Market Operations
On January 15, 1979, Committee members voted to increase f r o m
$3 billion to $5 billion the limit on changes between Committee
meetings in System Account holdings of U . S . Government and
Federal agency securities specified in paragraph 1(a) of the authorization for domestic open market operations, effective immediately,
for the period ending with the close of business on February 6,
1979.
Votes for this action: Messrs. Miller, Volcker,
Baughman, Coldwell, Eastburn, Partee, Mrs.
155
A 156
Federal Reserve Bulletin • February 1979
Teeters, Messrs. Wallich, Willes, and Winn. Votes
against this action: None.
This action was taken on recommendation of the System Account
Manager. The Manager had advised that large-scale sales of securities since the December meeting—required primarily to counter
the effect on member bank reserves of an unusually and unexpectedly high level of float—had reduced the leeway for further
sales to about $100 million. It appeared likely that additional sales
would be required because current projections indicated a need for
further reserve-absorbing operations over the coming weeks.
Subsequently, Committee members voted to increase the limit
specified in paragraph 1(a) by an additional $1 billion, to $6 billion,
effective immediately, for the period ending with the close of
business on February 6, 1979.
Votes for this action: Messrs. Miller, Volcker,
Baughman, Coldwell, Eastburn, Partee, Mrs.
Teeters, Messrs. Wallich, Willes, and Winn. Votes
against this action: None.
This action was taken on recommendation of the Manager. On
January 26 he had advised that, despite the C o m m i t t e e ' s action
on January 15 to raise the inter-meeting limit to $5 billion, the
leeway available for further sales would be only about $350 million
as of the close of business on January 26. Since January 15,
required reserves had been weaker than had been expected, and
a decline of currency in circulation had provided reserves while
float had remained high.
Records of policy actions taken by the Federal Open Market Committee at each
meeting, in the form in which they will appear in the Board's Annual
Report,
are released about a month after the meeting and are subsequently published in
the BULLETIN.
157
Law Department
Statutes, regulations, interpretations, and decisions
AMENDMENTS
RULES
OF
TO REGULATION
REGARDING
Y
AND
DELEGATION
AUTHORITY
The Board of Governors has adopted amendments to its Regulation Y and its Rules Regarding
Delegation of Authority to implement the change
in the Bank Control Act of 1978 and to establish
certain exemptions and procedures.
1. Effective March 10, 1979, the title to Regulation Y is revised to read 4 'Part 225—Bank
Holding Companies and Change in Bank Control"
and section 225.1 of that Part is revised to read
as follows:
deposits held or controlled by it on the date on
which it became, or is to become, a bank holding
company, or such Reserve Bank as the Board may
designate. With respect to notices filed and other
actions taken under the Control Act, the term
refers to the Federal Reserve Bank for institution
to be acquired, as determined by the preceding
sentence in the case of bank holding companies
and by section 9 of the Federal Reserve Act in
the case of State member banks.
2. Effective March 10, 1979, Regulation Y is
amended by adding a new section, § 225.7, as
follows:
Section 225.7—Change
Section
225.1—
Authority, Scope,
and
Definitions
(a) Authority and scope. This Part is issued by
the Board of Governors of the Federal Reserve
System under section 5(b) of the Bank Holding
Company Act of 1956 ("the Act") (12 U.S.C.
§ 1844(b)) and section 7(j)(13) of the Federal
Deposit Insurance Act, as amended by the Change
in Bank Control Act of 1978 ("the Control Act"),
(12 U.S.C. § 1817(j)(13)). Sections 225.2
through 225.6 of this Part implement the Act, and
section 225.7 of this Part implements the Control
Act.
(b) Terms used in the Act. As used in this Part,
the terms "bank holding company," " c o m p a n y , "
" b a n k , " "subsidiary," and " B o a r d " have the
same meanings as those given such terms in the
Act. As used in section 225.7 of this Part, the
term "person" has the meaning given it in the
Control Act.
(c) Federal Reserve Bank. The term "Federal
Reserve Bank" as used in this Part with respect
to action by, on behalf of, or directed to be taken
by a bank holding company or other organization
shall mean either the Federal Reserve Bank of the
Federal Reserve district in which the operations
of the bank holding company or other organization
are principally conducted, as measured by total
in Bank
Control
(a) Acquisitions of Control.14 Under the Control Act, acquisitions by a person or persons acting
in concert of the power to vote 25 per cent or
more of a class of voting securities of a bank
holding company or State member bank, unless
exempted, require prior notice to the Board. In
addition, a purchase, assignment, transfer, pledge,
or other disposition of voting stock through which
any person will acquire ownership, control, or the
power to vote ten per cent or more of a class of
voting securities of a bank holding company or
State member bank will be deemed to be an
acquisition by such person of the power to direct
that institution's management or policies if:
(1) the institution has issued any class of securities subject to registration under section 12 of
the Securities Exchange Act of 1934 (15 U.S.C.
§ 781); or
(2) immediately after the transaction no other
person will own a greater proportion of that class
of voting securities.
Other transactions resulting in a person's control
of less than 25 per cent of a class of voting shares
of a bank holding company or State member bank
14
Control is defined in the Control Act as the power, directly
or indirectly, to direct the management or policies, or to vote
25 per cent or more of any class of voting securities, of an
institution. (12 U.S.C. § 1817(j)(8)(B)).
A 158
Federal Reserve Bulletin • February 1979
would not result in control for purposes of the Act.
An acquiring person may request an opportunity
to contest the presumption established by this
paragraph with respect to a proposed transaction.
The Board will afford the person an opportunity
to present views in writing or, where appropriate,
orally before its designated representatives either
at informal conference discussions or at informal
presentations of evidence.
(b) Notices. Section 265.3 of the Board's Rules
of Procedure governs the submission of notices
required by the Control Act, except that notices
should be sent to the Federal Reserve Bank of the
district in which the affected bank or bank holding
company is located. Notice shall not be considered
given unless information provided is responsive
to every item specified in paragraph 6 of the
Control Act (12 U.S.C. § 1817(j)(6)), or every
item prescribed in the appropriate Board forms.
With respect to personal financial statements required by paragraph 6 (B) of the Control Act, an
individual acquirer may include a current statement of assets and liabilities, as of a date within
90 days of the notice, a brief income summary,
and a statement of material changes since the date
thereof, subject to the authority of the Federal
Reserve Bank or the Board to require additional
information.
(c) Exempt transactions. The following transactions are not subject to the prior notice requirements of the Control Act:
(1) the acquisition of additional shares of a bank
holding company or State member bank by a
person who continuously since March 9, 1979,
held power to vote 25 per cent or more of the
voting shares of that institution, or by a person
who has acquired and maintained control of that
institution after complying with the Control Act's
procedures;
(2) the acquisition of additional shares of a bank
holding company or State member bank by a
person who under paragraph (a) of this section
would be deemed to have controlled that institution
continuously since March 9, 1979, if:
(i) the transaction will not result in that person's
direct or indirect ownership or power to vote 25
per cent or more of any class of voting securities
of the institution; or
(ii) in other cases, the Board determines that
the person has controlled the institution continuously since March 9, 1979;
(3) the acquisition of shares in satisfaction of
a debt previously contracted in good faith or
through testate or intestate succession or bona fide
gift, provided the acquirer advises the Federal
Reserve Bank within thirty days after the acquisition and provides any information specified in
paragraph 6 of the Control Act that the Reserve
Bank requests;
(4) a transaction subject to approval under section 3 of the Bank Holding Company Act or
section 18 of the Federal Deposit Insurance Act;
(5) a transaction described in sections 2(a)(5)
or 3(a)(A) or (B) of the Bank Holding Company
Act by a person there described;
(6) a customary one-time proxy solicitation and
receipt of pro-rata stock dividends; and
(7) the acquisition of shares of a foreign bank
holding company, as defined in section 225.4(g)
of this Part, provided this exemption does not
extend to the reports and information required
under paragraphs 9, 10, and 12 of the Control Act
(12 U.S.C. § 1817(j)(9), (10), and (12)).
3. Effective March 10, 1979, section 265.2(f)
of Rules Regarding Delegation of Authority is
amended by adding the following new subparagraph (38):
^
^t
%
*
^
(38) Under the provisions of the Change in
Bank Control Act of 1978 (12 U.S.C. § 1817(j))
and section 225.7 of this chapter (Regulation Y),
with respect to a bank holding company or State
member bank, to determine the informational sufficiency of notices and reports filed under the Act,
to extend periods for consideration of notices, to
determine whether a person who is or will be
subject to a presumption described in section
225.7(a) of this chapter should file a notice regarding a proposed transaction, and, if all the
following conditions are met, to issue a notice of
intention not to disapprove a proposed change in
control:
(i) no member of the Board has indicated an
objection prior to the Reserve Bank's action.
(ii) all relevant departments of the Reserve
Bank concur.
(iii) if the proposal involves shares of a State
member bank or a bank holding company controlling a State member bank, the appropriate bank
supervisory authorities have indicated that they
have no objection to the proposal, or no objection
has been received from the appropriate bank supervisory authorities within the time allowed by the
Act.
Law Department
(iv) no significant policy issue is raised by the
proposal as to which the Board has not expressed
its view.
BANK
AND
HOLDING
BANK
ISSUED
BY
COMPANY
MERGER
THE BOARD
ORDERS
OF
Orders Under Section 3
of Bank Holding Company
GOVERNORS
Act
Catoosa Bancshares, Inc.,
Catoosa, Oklahoma
Order Approving
Formation of a Bank Holding
Company
Catoosa Bancshares, Inc., Catoosa, Oklahoma,
has applied for the board's approval under section
3(a)(1) of the Bank Holding Company Act (12
U.S.C. § 1842(a)(1)), to become a bank holding
company through the acquisition of 100 percent,
less directors' qualifying shares, of the voting
shares of 1st Bank of Catoosa, Catoosa, Oklahoma
("Bank").
Notice of the application, affording an opportunity for interested persons to submit comments and
views, has been given in accordance with section
3(b) of the Act (43 Federal Register 53820
(1978)). The time for filing comments and views
has expired, and the application and all comments
received have been considered in light of the
factors set forth in section 3(c) of the Act (12
U.S.C. § 1842(c)).
Applicant is a nonoperating corporation with no
subsidiaries, organized for the purpose of becoming a bank holding company through the acquisition of Bank, which has deposits of $9.0 million. 1
Upon acquisition of Bank, Applicant would control the 281st largest bank in Oklahoma, holding
.07 percent of total deposits in commercial banks
in the state.
Bank is the 36th largest of 46 banks operating
in the relevant banking market, which is the Tulsa
RMA, and controls 0.28 percent of total market
deposits. The purpose of the transaction is to
facilitate the transfer of the ownership of Bank
from individuals to a corporation controlled by the
same individuals. Principal owners, officers, and
directors of Applicant and Bank are also associated
1
Banking data as of December 31, 1977.
159
with two other banks and bank holding companies
located in Bank's market. 2 The combined deposits
of Bank and the affiliated banks total $81.7 million, which represents 2.54 percent of market
deposits. This combined market share does not
represent an adverse concentration of banking resources. Furthermore, Applicant's principal
owners, officers, and directors were among the
principal organizers of all three banks. While
approval of the subject proposal would further
solidify the existing relationship between Bank and
the two affiliated banks and reduce the likelihood
that Bank would become an independent competitor in the future, based upon the facts of record,
including the size and rank in the market of the
banks involved and the presence of other banking
alternatives in the Tulsa banking market, it appears
that consummation of this proposal would not
result in any significant adverse effects upon competition in any relevant area. Thus, competitive
factors are consistent with approval.
Where principals of an applicant are engaged
in operating a chain of one-bank holding companies, the board applies multibank holding company
standards in assessing the financial and managerial
resources and future prospects both of an applicant
seeking to become a one-bank holding company
and of its proposed subsidiary bank. Based upon
such an analysis in this case, the financial and
managerial resources and future prospects of Applicant, Bank and the affiliated banks and bank
holding companies appear to be satisfactory. Applicant will incur no debt in its acquisition of Bank
stock. Moreover, Applicant has committed to provide additional capital to Bank within 120 days
following approval of this proposal. Therefore,
considerations relating to banking factors in regard
to this proposal are consistent with approval of
the application.
Although consummation of the proposal would
result in no changes in the banking services offered
by Bank, considerations relating to the convenience and needs of the community to be served
are consistent with approval. It has been determined that consummation of this transaction would
be consistent with the public interest and that the
application should be approved.
2
Applicant's principals are associated with a proposed Oklahoma bank holding company, Security Bancshares, Inc.,
Tulsa, Oklahoma. The board approved the application by
Security Bancshares, Inc., to acquire 100 percent, less directors' qualifying shares, of Security Bank, Tulsa, Oklahoma,
on October 31, 1978.
A 160
Federal Reserve Bulletin • February 1979
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 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 of Governors or by
the Federal Reserve Bank of Kansas City, pursuant
to delegated authority.
By order of the Secretary of the Board, acting
pursuant to authority delegated from the Board of
Governors, effective January 24, 1979.
[seal]
(Signed) G r i f f i t h L . G a r w o o d ,
Deputy Secretary of the Board.
First City Bancorporation of Texas, Inc.,
Houston, Texas
Order Approving Acquisition
of Bank
First City Bancorporation of Texas, Inc., Houston, Texas, a bank holding company within the
meaning of the Bank Holding Company Act, has
applied for the board's approval under section
3(a)(3) of the Act (12 U.S.C. § 1842(a)(3)) to
acquire 100 percent of the voting shares (less
directors' qualifying shares) of First City BankBear Creek, Harris County, Texas ("Bank"), a
proposed new bank.
Notice of the application, affording opportunity
for interested persons to submit comments and
views, has been given in accordance with section
3(b) of the Act. The time for filing comments and
views has expired, and the board has considered
the application and all comments received in light
of the factors set forth in section 3(c) of the Act
(12 U.S.C. § 1842(c)).
Applicant, the second largest banking organization in Texas, controls 31 banking subsidiaries,
with aggregate deposits of approximately $4.8
billion, representing 8 percent of total deposits in
commercial banks in the state. 1 Since Bank is a
proposed new bank, Applicant's acquisition of
Bank would not cause any immediate increase in
Applicant's share of deposits in commercial banks
in Texas.
Bank has received charter approval from the
Department of Banking of the state of Texas and
1
All deposit data are as of December 31, 1977, and reflect
bank holding company formations and acquisitions approved
as of November 30, 1978.
is to be located in an unincorporated community
in Harris County, approximately 20 miles west of
downtown Houston. Applicant ranks as the largest
of 122 banking organizations in the Houston
banking market, 2 with 13 subsidiary banks controlling 20.6 percent of total market deposits.
Applicant's banking subsidiary closest to Bank is
located approximately 13 miles northeast of Bank,
outside of Bank's proposed service area. Since
Bank is a proposed new bank, Applicant's acquisition of Bank would not eliminate any existing
competititon, nor would it have any immediate
effect upon Applicant's share of commercial bank
deposits in the relevant market. While under some
circumstances de novo expansion in a market by
a leading organization within that market could
reduce prospects for market deconcentration by
preempting viable sites for de novo entry or expansion by other firms, Applicant's de novo expansion in the rapidly growing Houston banking
market would have only a minimal impact upon
market entry conditions. 3 From the facts of record,
it appears that even after consummation of the
proposal the market would remain attractive for
de novo entry and that ample opportunities for
market deconcentration will remain, through either
foothold or de novo entry. Accordingly, based
upon all the facts of record, including the growth
of the Houston market, the large number of competing organizations therein, and the opportunities
for market deconcentration, the Board concludes
that approval of this application would not result
in any adverse effects upon competition in any
relevant area.
The financial and managerial resources and future prospects of Applicant and its subsidiary
banks are regarded as consistent with approval of
this application. Bank, as a proposed de novo
bank, has no financial or operating history; however, its prospects as a subsidiary of Applicant
appear favorable. Accordingly, considerations relating to banking factors are consistent with approval of this application. The establishment of
2
The Houston banking market is approximated by the
Houston Ranally Metropolitan Area ( " R M A " ) , which includes
Harris County and portions of Brazoria, Fort Bend, Galveston,
Liberty, and Montgomery Counties in Texas.
3
The Houston banking market experienced a population
increase of 25.4 percent during the 1970-1978 period, and
the population of the city of Houston increased by 18.4 percent.
During the same period the population for the state of Texas
increased by only 14.6 percent. It is also noted that the ratio
of population-to-banking offices in the Houston banking market
is 1.45 times the statewide average and per capita deposits
in the market are 1.32 times the statewide average.
Law Department
Bank would provide a new and convenient fullservice banking alternative for the area's residents.
Thus, considerations relating to the convenience
and needs of the community to be served lend
some weight toward approval of the application.
Accordingly, it is the board's judgment that consummation of the 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 that
date, and (c) First City Bank-Bear Creek, Harris
County, Texas, shall be opened for business not
later than six months after the effective date of
this Order. Each of the periods described in (b)
and (c) may be extended for good cause by the
board, or by the Federal Reserve Bank of Dallas,
pursuant to delegated authority.
By order of the Board of Governors, effective
January 15, 1979.
Voting for this action: Chairman Miller and Governors Wallich, Coldwell, Partee, and Teeters.
[seal]
(Signed) G r i f f i t h L . G a r w o o d ,
Deputy Secretary of the Board.
Republic of Texas Corporation,
Dallas, Texas
Order Approving Acquisition
of Bank
Republic of Texas Corporation, Dallas, Texas,
a bank holding company within the meaning of
the Bank Holding Company Act, has applied for
the board's approval under § 3(a)(3) of the Act (12
U.S.C. § 1842(a)(3)) to acquire all of the voting
shares (less directors' qualifying shares) of the
successor by merger to The First National Bank
of Piano, Piano, Texas ("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. Applicant presently
controls 24.85 percent of the voting shares of
Bank.
Notice of the application, affording opportunity
161
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 of 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, the fourth largest banking organization in the state of Texas, has eighteen banking
subsidiaries with aggregate deposits of $3,930
million, representing 6.46 percent of commercial
bank deposits in the state. 1 Acquisition of Bank,
one of the state's smaller banking organizations,
would increase Applicant's share of commercial
bank deposits in Texas by less than one-tenth of
one percent.
By Order dated October 25, 1973 (38 F.R.
30581), the board approved the application of
Applicant to become a bank holding company
through the direct acquisition of Republic National
Bank of Dallas ("Republic Bank") and the indirect acquisition of 29.9 percent of the voting shares
of Oak Cliff Bank & Trust Company, Dallas,
Texas. In addition to its interest in Bank, Republic
Bank at the time also owned indirectly between
5 and 24.99 percent of the shares of 20 other
banks, 17 of which were in the Dallas banking
market. 2 Applicant represented to the board that
it would file separate applications for prior approval by the board for acquisition of additional
shares in each of certain of those banks, and would
divest completely its interests in others. In its
Order the board stated that each such application
filed by Applicant would be considered on its own
merits in light of the statutory standards set forth
in § 3 of the Act.
Bank is the 31st largest banking organization
in the Dallas banking market and holds deposits
of $55.5 million, representing 0.3 percent of the
total deposits held by commercial banks in the
market. Applicant is already a significant competitor in the Dallas banking market. Applicant, with
seven subsidiary banks, is the largest banking
organization in that market and holds total deposits
of $3,047.9 million, 3 representing 26.3 percent of
the total deposits in commercial banks in the
market.
1
All banking data are as of March 31, 1978.
The Dallas banking market is approximated by the Dallas
RMA.
3
This figure reflects bank holding company acquisitions and
formations approved as of October 31, 1978.
2
A 162
Federal Reserve Bulletin • February 1979
While consummation of the proposal would
appear to eliminate some existing competition inasmuch as Applicant and Bank operate in the same
market, the board notes that Applicant, or its
predecessor in interest, Republic Bank, has held
24.85 percent or more of the shares of Bank since
1956, and that the nature of this relationship is
such that little, if any, meaningful competition
presently exists between Bank and Applicant's
subsidiary banks in the Dallas market. But for the
history of the established relationship between
Applicant and Bank, the effects on existing competition would be viewed as more serious, but
viewed in light of that relationship the effects are
only slight. Moreover, while Applicant is one of
the largest organizations in the banking market,
in view of the facts presented in the record of this
application, the board does not regard the slight
increase in concentration of market deposits as
significant. Accordingly, the board concludes that
the proposed acquisition of Bank by Applicant
would not have significant adverse effects on
competition.
The financial and managerial resources of Applicant and its subsidiaries are regarded as satisfactory and their future prospects appear favorable.
The financial and managerial resources and future
prospects of Bank are also regarded as satisfactory,
particularly in light of Applicant's commitment to
provide Bank with additional capital. Therefore,
considerations relating to banking factors are consistent with and lend some weight toward approval
of the application.
Upon consummation of the proposed acquisition, Applicant will assist Bank in developing
programs to enable it to serve the banking needs
of all sections of the city of Piano. In particular,
Applicant intends to cause Bank to increase its
commercial lending in order to help meet the
general credit needs of the rapidly expanding Piano
community. In addition, affiliation with Applicant
will provide Bank's customers with access to
credit life and credit accident and health insurance
offered by a subsidiary of Applicant at rates below
the state maximum rates currently charged by
Bank. Thus, considerations relating to convenience and needs of the community to be served
lend some weight toward approval of the application, and in the board's view, outweigh any
slightly adverse effects on competition that might
result from consummation of this proposal. Accordingly, it is the board's judgment that the
proposed acquisition would be in the public inter-
est 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 day of this Order unless such period is
extended for good cause by the board or by the
Federal Reserve Bank of Dallas pursuant to delegated authority.
By Order of the Board of Governors, effective
January 26, 1979.
Voting for this action: Chairman Miller and Governors Wallich, Partee, and Teeters. Absent and not
voting: Governor Coldwell.
[seal]
(Signed) G r i f f i t h L . G a r w o o d ,
Deputy Secretary of the Board.
Citizens Ban-Corporation,
Rock Port, Missouri
Order Denying Acquisition of Bank
Citizens Ban-Corporation, Rock Port, Missouri,
a bank holding company within the meaning of
the Bank Holding Company Act, has applied for
the board's approval under section 3(a)(3) of the
Act (12 U.S.C. § 1842(a)(3)) to acquire 95.31 per
cent of the voting shares of Farmers and Merchants
Bank of Elmo ("Bank"), Elmo, Missouri.
Notice of the application, affording opportunity
for interested persons to submit comments and
views, has been given in accordance with section
3(b) of the Act. The time for filing comments and
views has expired, and the Board has considered
the application and all comments received in light
of the factors set forth in section 3(c) of the Act
(12 U.S.C. § 1842(c)).
Applicant, a one-bank holding company, controls The Citizens Bank of Atchison County
("Rock Port"), Rock Port, Missouri. The acquisition of Bank would increase Applicant's share
of total deposits in commercial banks in Missouri
from 0.07 per cent to 0.11 per cent, and would
not have an appreciable eff ect on the concentration
of banking resources in the state.
Bank, with deposits of $7.5 million, 1 is the
fourth largest of six commercial banks in its bank-
1
All banking data are as of December 31, 1977.
Law Department
ing market. 2 Bank and Rock Port are located in
separate banking markets, and consummation of
this proposal would not eliminate any significant
competition. Accordingly, competitive considerations are consistent with approval.
Under the Bank Holding Company Act, the
board is required to consider the financial and
managerial resources of an applicant and its subsidiary banks. In the exercise of that responsibility,
the board has indicated on previous occasions that
it will closely examine the condition of an applicant to ensure that it will serve as a source of
financial and managerial strength to its subsidiary
banks. 3 The board finds that considerations relating
to the financial resources of Applicant warrant
denial of the application. The board has previously
stated that less restrictive debt to equity standards
can appropriately be applied to prospective onebank holding companies if the adverse effects
associated with leverage are outweighed by public
benefits in the case of transfers of ownership of
small rural banks. However, the financial structure
of a multi-bank holding company should be more
conservative than that of a one-bank holding company. 4
In connection with this proposal, Applicant
would incur acquisition debt of approximately
$1.3 million, which Applicant proposes to service
over a twelve-year period solely through earnings
of its subsidiary banks. Neither Applicant nor any
of its principals will have contributed any cash
towards the purchase of Bank. Applicant's
principals purchased Bank in February 1978 exclusively with debt, and Applicant would assume
this debt in its entirety. Applicant may be able
to retire its debt while maintaining a satisfactory
capital position for its subsidiary banks, but capital
ratios at both banks would decline below current
ratios. Although by itself this decline would not
necessarily constitute an adverse factor, it compounds Applicant's initial weak financial position,
and Applicant's proposal would greatly limit its
163
ability to furnish additional capital if needed in
response to unforeseen problems in its subsidiary
banks.
The Board has considered Applicant's managerial resources, which it regards as satisfactory.
However, these managerial considerations do not
outweigh the adverse financial factors, and therefore, considerations relating to the banking factors
warrant denial of this application.
As indicated above, the proposed acquisition is
essentially a restructuring of the ownership interests of Bank and consummation of the proposal
would not result in an immediate change in the
service provided by 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 the circumstances concerning
this application, the board concludes that the
banking considerations involved in the proposal
present adverse factors bearing upon the financial
resources and future prospects of Applicant and
Bank. These 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 application is denied for the reasons summarized above.
By order of the Board of Governors, effective
January 19, 1979.
V o t i n g for this action: C h a i r m a n M i l l e r and G o v e r nors W a l l i c h , C o l d w e l l , Partee, and T e e t e r s .
[seal]
(Signed) G r i f f i t h L . G a r w o o d ,
Deputy Secretary of the Board.
Orders Under Section 4
of Bank Holding Company
Act
2
The relevant banking market is approximated by Nodaway
County, Missouri, and the southern one-third of Page County,
Iowa.
3
Section 3(c) of the Act provides that the board must, in
every case, consider, among other things, the financial and
managerial resources of both the applicant company and the
bank to be acquired. The board's action in this case is based
on a consideration of such factors. See Board of Governors
of the Federal Reserve System v. First Lincolnwood
Corporation, 47 U . S . L . W . 4048 (December 11, 1978).
4
S e e Stuarco
Oil Company,
Inc.,
6 1 FEDERAL RESERVE
BULLETIN 1 7 8 , 1 7 9 ( 1 9 7 5 ) ; BHCo,
Inc., 6 0 F E D E R A L RESERVE
BULLETIN 123, 124 (1974).
Alaska Bancorporation,
Anchorage, Alaska
Order Approving Retention and Acquisition of
Voting Shares of Alaska Bancshares, Inc.
Alaska Bancorporation, Anchorage, Alaska, a
bank holding company within the meaning of the
Bank Holding Company Act, has applied for the
board's approval, under § 4(c)(8) of the Act (12
A 164
Federal Reserve Bulletin • February 1979
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 retain its 89.6 percent interest in Alaska Bancshares, Inc., Anchorage, Alaska ("Bancshares"),
and to acquire additional voting shares of Bancshares so that Bancshares will become a wholly
owned subsidiary of Applicant. 1 Bancshares engages in the activity of acting as agent or broker
for the sale of life and accident insurance and
health insurance in connection with extensions of
credit by its banking subsidiary, Alaska Statebank,
Anchorage, Alaska ("Bank"). 2 Such activity has
been determined by the board to be closely related
to banking (12 C.F.R. § 225.4(a)(9)(ii)).
Notice of the application, affording opportunity
for interested persons to submit comments and
views on the public interest factors, has been duly
published (43 Federal Register 55820). The time
for filing comments and views has expired, and
the board has considered the application and all
comments received in the light of the public interest factors set forth in § 4(c)(8) of the Act (12
U.S.C. § 1843(c)(8)).
Applicant, a one-bank holding company, became a bank holding company as a result of the
1970 Amendments to the Act, by virtue of its
control of the majority of the voting shares of
Bank. Applicant acquired a total of 65 percent
of the voting shares of Bancshares during 1969
and 1970. Pursuant to the provisions of section
4 of the Act, Applicant has until December 31,
1980, to divest these shares of Bancshares or, in
1
The shares which Applicant seeks permission to retain
include 666.666 common shares acquired in December 1974
and 768 common shares acquired in June 1976, as well as
804 preferred shares acquired in December 1976, all of which
acquisitions were in violation of section 4 of the Act. The
board has examined all of the circumstances surrounding Applicant's acquisition of these shares, including Applicant's
correspondence with the Federal Reserve Bank of San Francisco concerning the proposed acquisitions, and the fact that
Bancshares was authorized to continue to engage in its nonbanking activities on the basis of permanent grandfather privileges pursuant to the proviso contained in section 4(a)(2) of
the Act, and has concluded (hat the violations were inadvertent
and of a technical nature. Furthermore, when advised of the
violations, Applicant acted responsibly and cooperated fully
with the Federal Reserve System in seeking to resolve the
matter. Accordingly, the board has concluded that the violations are not so serious as to require denial of this application.
2
Bancshares is also engaged in impermissible real estate
development activities, which Applicant has not applied for
the board's approval to retain. Accordingly, pursuant to section
4(a)(2) of the Act, Applicant must divest its indirect interest
in Bancshares' impermissible activities on or before December
31, 1980.
the alternative, to apply to the board for approval
to retain them. 3
Applicant is the fifth largest banking organization in Alaska by virtue of its control of Bank.
Bank has deposits of $90.9 million, representing
approximately 5.8 percent of the total deposits in
commercial banks in the state. 4 Applicant does not
engage in any other nonbanking activities.
Bancshares conducts its credit life and credit
accident and health insurance agency business
solely in connection with extensions of credit by
Bank. Bank has a total of eight branches, located
in three relevant markets in Alaska, at which
Applicant otters credit-related insurance. Inasmuch as Bancshares had been engaged in its insurance agency activities for some time prior to
its acquisition by Applicant, and Applicant was
not engaging in any insurance activities at that
time, it appears that the acquisition of Bancshares
by Applicant did not eliminate any existing or
potential competition between the two. Accordingly, the board concludes that Applicant's acquisition of Bancshares did not have any adverse
effects on competition in any relevant area, and
that its retention of Bancshares, as well as proposed acquisition of additional shares, would not
have any adverse competitive effects.
Applicant's retention of Bancshares as its
wholly owned subsidiary will ensure the continued
availability of credit life and credit accident and
health insurance to customers of Bank. Furthermore, there is no evidence in the record to indicate
that consummation of the proposal would result
in any undue concentration of resources, unfair
competition, conflicts of interest or unsound banking practices. On the basis of the foregoing and
other facts of record, the board concludes that the
benefits to the public resulting from Applicant's
acquisition of Bancshares outweigh any possible
adverse effects that could have resulted from the
3
Section 4 of the Act provides, inter alia, that nonbanking
activities acquired between June 30, 1968, and December 31,
1970, by a company which becomes a bank holding company
as a result of the 1970 Amendments may not be retained beyond
December 31, 1980, without prior board approval. In December 1972, the board determined that Bancshares was entitled to engage in its nonbanking activities on the basis of
permanent grandfather privileges pursuant to the proviso of
section 4(a)(2) of the Act, since these activities had been
commenced by Bancshares before June 30, 1969, but noted
that Applicant, which acquired Bancshares in July 1969, was
not entitled to grandfather rights for such activities (59 FED-
ERAL RESERVE B U L L E T I N 2 1 1
4
(1973)).
Unless otherwise noted, all financial data are as of June
30, 1978.
Law Department
affiliation, and in the board's view approval of
Applicant's retention of Company as a wholly
owned subsidiary can reasonably be expected to
continue to produce benefits to the public that
would outweigh possible adverse effects.
Based upon the foregoing and other considerations reflected in the record, the board has
determined that the balance of the public interest
factors the board is required to consider under
§ 4(c)(8) is favorable, and the application should
be approved. Accordingly, the application is
hereby approved. The acquisition shall be consummated no later than three months after the
effective date of this Order unless such period is
extended by the board or the Federal Reserve Bank
of San Francisco. This determination is subject to
the conditions set forth in § 225.4(c) of Regulation
Y and to the board's authority to require such
modification or termination of the activities of a
holding company or any of its subsidiaries as the
board finds necessary to assure compliance with
the provisions and purposes of the Act and the
board's regulations and orders issued thereunder,
or to prevent evasion thereof.
By order of the Board of Governors, effective
January 19, 1979.
Voting for this action: Chairman Miller and Governors Wallich, Coldwell, Partee, and Teeters.
[seal]
(Signed) G r i f f i t h L . G a r w o o d ,
Deputy Secretary of the Board.
F&M National Corporation,
Winchester, Virginia
Order Denying Retention of Winchester Credit
Corporation and its wholly owned subsidiary,
Rouss Finance Company
F&M National Corporation, Winchester, Virginia, a bank holding company within the meaning
of the Bank Holding Company Act, has applied
for the board's approval under section 4(c)(8) of
the Act (12 U.S.C. § 1843(c)(8)) and section
225.4(b)(2) of the board's Regulation Y (12
C.F.R. § 225.4(b)(2)) to retain all of the voting
shares of Winchester Credit Corporation ("Winchester"), and its wholly owned subsidiary, Rouss
Finance Company ("Rouss"), both of Winchester, Virginia. Winchester engages in commercial,
mortgage, and consumer lending, as well as in-
165
stallment sales financing. Rouss engages in consumer lending. In addition, both Winchester and
Rouss act as agent in the sale of credit life and
credit accident and health insurance directly related to such extensions of credit. Such activities
have been determined by the board to be closely
related to banking (12 C.F.R. § 225.4(a)(1) and
(9)).
Notice of the application, affording opportunity
for interested persons to submit comments and
views on the public interest factors, has been duly
published (43 Federal Register 38940). The time
for filing comments and views has expired, and
the board has considered the application and all
comments received in light of the public interest
factors set forth in section 4(c)(8) of the Act (12
U.S.C. § 1843(c)(8)).
Applicant controls two banks and is the 14th
largest banking organization in Virginia, controlling aggregate deposits of $150.2 million, representing 0.9 per cent of the total deposits in commercial banks in the state. 1 Winchester and Rouss
have assets of $5.5 million and $0.6 million,
respectively, as of May 31, 1978. Applicant became a bank holding company on December 31,
1970, as a result of the 1970 Amendments to the
Act, by virtue of its control at that time of Farmers
and Merchants National Bank, Winchester, Virginia ("Bank"). Applicant acquired all of the
outstanding shares of Winchester and its wholly
owned subsidiary, Rouss, on July 10, 1970. Pursuant to the provisions of section 4 of the Act,
Applicant has until December 31, 1980, to divest
itself of its interest in Winchester and Rouss or,
in the alternative, to apply for and secure the
Board's approval to retain such interest.
In order to approve an application under section
4(c)(8) of the Act, the board must determine
whether the activities of the company to be acquired or retained are "so closely related to banking or managing or controlling banks as to be a
proper incident thereto." Where, as here, the
activities of the subject company have been determined previously by regulation to be closely related to banking, the board is required to consider
whether a bank holding company's operation of
that company "can reasonably be expected to
produce benefits to the public such as greater
convenience, increased competition, or gains in
1
Banking data are as of March 31, 1978, unless otherwise
indicated.
A 166
Federal Reserve Bulletin • February 1979
efficiency, that outweigh possible adverse effects,
such as undue concentration of resources, decreased or unfair competition, conflicts of interest,
or unsound banking practices." This statutory test
requires a positive showing by an applicant that
the public benefits of its proposal outweigh the
possible adverse effects. The board regards the
standards under section 4(c)(8) of the Act for
retention of shares to be the same as the standards
for a proposed acquisition.
The relevant product market to be considered
in evaluating the competitive effects of this proposal is the making of personal cash loans, and
the board has previously determined that consumer
finance companies compete with commercial
banks in the area of personal loans. 2 At the time
Applicant acquired Winchester and Rouss in 1970,
Bank, which was then Applicant's sole banking
subsidiary, was the largest of four banking organizations in the Winchester City/Frederick County
banking market, 3 with deposits of $45.4 million,
and controlled 19.8 percent of the market's personal cash loans. At that time, Winchester and
Rouss, each of which had one office located in
the same market as Bank, held assets of $1.1
million and $0.5 million, respectively, and controlled 2.3 percent and 1.2 percent, respectively,
of the market's personal cash loans. Thus, in the
aggregate, Applicant controlled 23.3 percent of
the market's personal cash loans in 1970. By
year-end 1977, Bank's market share had grown
to 26.2 percent, while the market shares of
Winchester and Rouss were 2.1 percent, and 1.7
percent, respectively. Thus, Applicant's market
share of personal cash loans had increased to 30
percent by year-end 1977.4 The facts of record
indicate that the acquisition of Winchester and
Rouss by Applicant in 1970 eliminated a significant amount of existing competition in the relevant
market and, as a result, Applicant has further
increased its share of the market's personal cash
loans. Accordingly, in the board's view, the adverse effects upon competition resulting from the
acquisition by Applicant of Winchester and Rouss
weigh against approval of this application.
2
See Bankers Trust Corporation (Public Loan Company),
5 9 FEDERAL RESERVE BULLETIN 6 9 4
3
(1973).
The Winchester City/Frederick County banking market is
comprised of the city of Winchester and the surrounding county
of Frederick.
4
Applicant also engages in consumer lending through Peoples Loans, Incorporated, Luray, Virginia, a nonbank subsidiary located outside the relevant banking market, acquired on
October 30, 1974, pursuant to board approval.
As stated above, Applicant must bear the burden
of showing that the benefits to the public that have
resulted or will result from the application outweigh in the public interest the adverse effects.
However, it appears from the facts of record that
any public benefits stemming from the acquisition
of Winchester and Rouss could have been achieved
by Applicant on a de novo basis or through Bank
without the elimination of two alternative sources
of competition in the market.
Based upon the foregoing and other considerations reflected in the record, the board has
determined that the balance of the public interest
factors the board is required to consider under
section 4(c)(8) is not favorable. Accordingly, this
application is denied.
By order of the Board of Governors, effective
January 12, 1979.
Voting for this action: Chairman Miller and Governors Wallich, Coldwell, Partee, and Teeters.
[seal]
(Signed) G r i f f i t h L . G a r w o o d ,
Deputy Secretary of the Board.
NCNB Corporation,
Charlotte, North Carolina
Order Approving
Retention of NCNB Mortage
Company
NCNB Corporation, Charlotte, North Carolina,
a bank holding company within the meaning of
the Bank Holding Company Act, has applied for
the board's approval, under section 4(c)(8) of the
Act (12 U.S.C. § 1843(c)(8)) and section
225.4(b)(2) of the board's Regulation Y (12
C.F.R. § 225.4(b)(2)) to retain NCNB Mortgage
Company, Charlotte, North Carolina ("Company"), a company that engages in the activities
of mortgage banking, including originating, and
servicing for its own account and the account of
others, conventional and guaranteed residential,
apartment, commercial, and industrial loans.
Company also acts as agent for the sale of credit
life insurance and credit accident and health insurance directly related to its extensions of credit.
Such activities have been determined by the board
to be closely related to banking (12 C.F.R.
§ 225.4(a)(1),(3), and (9)). 1
1
Company also engages, through six subsidiaries, in real
estate development activities that are impermissible for a bank
holding company. Under section 4(a)(2) of the Act, these
Law Department
Notice of the application, affording opportunity
for interested persons to submit comments and
views on the public interest factors, has been duly
published (43 Federal Register 45644). The time
for filing comments and views has expired, and
the board has considered the application and all
comments received in light of the public interest
factors set forth in section 4(c)(8) of the Act (12
U.S.C. § 1843(c)(8)).
Applicant, a one-bank holding company, became a bank holding company as a result of the
1970 Amendments to the Act by virtue of its
control of North Carolina National Bank, Charlotte, North Carolina ("Bank"). Company was
organized as a subsidiary of Applicant on December 6, 1968. Pursuant to the provisions of
section 4 of the Act, Applicant has until December
31, 1980, to divest its interest in Company or,
in the alternative, to apply to secure the board's
approval to retain such interest. 2 The board regards
the standards under section 4(c)(8) for retention
of shares to be the same as the standards for a
proposed acquisition of a 4(c)(8) activity.
Applicant is the second largest banking organization in North Carolina by virtue of its control
of Bank, which has deposits of $2.5 billion, representing 17.2 percent of the total deposits in
commercial banks in the state. 3 In addition to
engaging in mortgage banking and related insurance activities in North Carolina through Company, Applicant engages through subsidiaries in
a variety of nonbanking activities, including consumer finance, mortgage banking outside of North
Carolina, factoring, providing trust services, and
acting as an investment advisor. Company was
established by Applicant in 1968 to assume the
mortgage banking business of Bank, including the
assets of two small mortgage companies acquired
by Bank in 1965 and 1967. While at the time of
acquisition Bank also conducted mortgage business in the same markets as these two companies,
activities may not be retained beyond December 31, 1980,
and Applicant has committed to the board that it will discontinue these activities by divesting these subsidiaries by December 31, 1980. In addition, Company has four other subsidiaries engaged in nonbanking activities for which Applicant
claims other exemptions under the Act. Accordingly, Applicant
has not applied for the board's approval to retain such subsidiaries, and the board's action herein does not pertain to such
subsidiaries.
2
Section 4 of the Act provides, inter alia, that nonbanking
activities acquired between June 30, 1968, and December 31,
1970, by a company that becomes a bank holding company
as a result of the 1970 Amendments may not be retained beyond
December 31, 1980, without board approval.
3
All banking data are as of June 30, 1978.
167
from the information available, it does not appear
that the effects of the acquisition on existing competition were significant.
Company operates 17 offices in six markets in
North Carolina, as well as Atlanta, Georgia, and
Orlando, Florida. As of December 31, 1977,
Company, with a real estate mortgage servicing
portfolio of $722 million, ranked 58th among all
mortgage companies in the United States. Company engages principally in the origination and
servicing of 1-4 family residential mortgage loans
in six local markets in North Carolina. In 1977
Company originated an aggregate of $93 million
1-4 family residential loans in North Carolina.
Bank also engages in originating 1-4 family residential mortgages in the six North Carolina markets where Company is represented. However, in
1977 Company and Bank originated $94.8 million
of 1 to 4 family residential mortgages in North
Carolina, representing from 2.0 to 5.1 percent
of such loans in the relevant markets where both
Company and Bank operate, and a combined
average of 3.9 percent of such loans. In view
of the small market shares held by Bank and
Company, Applicant cannot be regarded as dominant in the mortgage lending market in any relevant area. The board concludes, based on all the
facts of record, that Applicant's acquisition did
not have any significant adverse effects on competition in any relevant area. Furthermore, there is
no evidence in the record indicating that the proposal would result in undue concentration of resources, unfair competition, conflicts of interests,
unsound banking practices or other adverse effects.
It appears that Applicant's acquisition of Company has produced benefits to the public such as
greater efficiency in processing loans. In particular, Applicant has installed a new data processing
system which has enabled Company to improve
its mortgage servicing activities. In addition, Applicant has, through Company, actively participated in government programs designed to expand
the availability of low and moderate income housing. These benefits to the public are consistent with
approval of the subject application, and it is the
board's view that approval of Applicant's retention
of Company can reasonably be expected to continue to produce benefits to the public that would
outweigh possible adverse effects.
Based upon the foregoing and other considerations reflected in the record, the board has
determined that the balance of the public interest
A 168
Federal Reserve Bulletin • February 1979
factors the board is required to consider under
§ 4(c)(8) is favorable. Accordingly, the application is hereby approved. This determination is
subject to the conditions set forth in § 225.4(c)
of Regulation Y and to the board's authority to
require such modification or termination of the
activities of a holding company or any of its
subsidiaries as the board finds necessary to assure
compliance with the provisions and purposes of
the Act and the board's regulations and orders
issued thereunder, or to prevent evasion thereof.
By order of the Board of Governors, effective
January 12, 1979.
Voting for this action: Chairman Miller and Governors Wallich, Coldwell, Partee, and Teeters.
[seal]
(Signed) G r i f f i t h L. G a r w o o d ,
Deputy Secretary of the Board.
Certifications Under the
Bank Holding Company Tax Act of 1976
Northwestern Financial Corporation,
North Wilkesboro, North Carolina
Prior Certification Pursuant to the Bank
Holding Company Tax Act of 1976
[Docket No. TCR 76-170]
Northwestern Financial Corporation, North
Wilkesboro, North Carolina ("Northwestern"),
has requested a prior certification pursuant to
§ 6158(a) of the Internal Revenue Code (the
"Code"), as amended by § 3(a) of the Bank
Holding Company Tax Act of 1976 (the "Tax
Act"), that its proposed sale of all the 1,100,000
issued and outstanding shares of Northwestern
Security Life Insurance Company, Phoenix, Arizona ("Company"), held by Northwestern, is
necessary or appropriate to effectuate § 4 of the
Bank Holding Company Act (12 U.S.C. § 1843)
("BHC Act"). The shares of Company are to be
sold to The Central National Life Insurance Company of Omaha, Omaha, Nebraska, a subsidiary
of Beneficial Corporation, Wilmington, Delaware
("Beneficial"), for $12,580,000 in cash.
In connection with this request, the following
information is deemed relevant for purposes of
issuing the requested certification: 1
1
This information derives from Northwestern's correspondence with the board concerning its request for this certi-
1. Northwestern is a corporation organized
under the laws of the state of North Carolina on
January 10, 1969. On August 1, 1969, Northwestern acquired ownership and control of 99.8
percent of the outstanding voting shares of The
Northwestern Bank, North Wilkesboro, North
Carolina ("Bank").
2. Northwestern became a bank holding company on December 31, 1970, as a result of the
1970 Amendments to the BHC Act, by virtue of
its ownership and control at that time of more than
25 percent of the outstanding voting shares of
Bank, and it registered as such with the board on
November 26, 1971. Northwestern would have
been a bank holding company on July 7, 1970,
if the BHC Act Amendments of 1970 had been
in effect on that date, by virtue of its ownership
and control on that date of more than 25 percent
of the voting shares of Bank. Northwestern currently owns and controls 99.8 percent of the outstanding voting shares of Bank.
3. Company is a wholly owned subsidiary of
Northwestern acquired by merger on June 30,
1969. Since 1959 Company has engaged in the
insurance business, and is currently engaged in the
activity of underwriting all types of ordinary, term,
group, and credit life insurance, a hospital benefit
plan, and accident and health insurance. Northwestern owns and controls the 1,100,000 issued
and outstanding shares of Company, all of which
it acquired before July 7, 1970.
4. Northwestern did not file an application with
the board, and did not otherwise obtain the board's
approval pursuant to § 4(c)(8) of the BHC Act,
to retain the shares of Company or engage in the
activities carried on by Company. 2
5. On January 4, 1979, Northwestern concluded negotiations with Beneficial for a Stock
Purchase Agreement providing for the sale of the
shares of Company to a subsidiary of Beneficial
for cash. Neither Beneficial nor any of its subsidiaries is indebted to Northwestern or its subsidiaries.
fication, Northwestern's Registration Statement filed with the
board pursuant to the BHC Act, and other records of the board.
2
Some or all of Company's activities may be among those
activities that the board previously has determined to be closely
related to banking under § 4(c)(8) of the BHC Act. However,
in the absence of approval by the board of an application by
Northwestern to retain Company, Northwestern may not retain
the shares of Company beyond December 31, 1980. (Cf.
Wachovia Corp., Docket No. TCR 76-132, 63 FEDERAL RESERVE B U L L E T I N 6 0 6 ( M a y 9 ,
1977)).
Law Department
6. No director, officer, or employee with policy
making functions of Northwestern or any of its
subsidiaries (including honorary and advisory
directors) holds any such position with Beneficial
or any subsidiary thereof.
7. Northwestern does not control in any manner
the election of a majority of the directors, or
exercise a controlling influence over the management or policies of Beneficial or its subsidiaries.
On the basis of the foregoing information, it
is hereby certified that:
(A) Northwestern is a qualified bank holding
corporation within the meaning of section
6158(F)(1) and section 1103(b) of the Code, and
satisfies the requirements of section 1103(b);
(B) the shares of Company proposed to be sold
by Northwestern are "prohibited property" within
the meaning of sections 6158(F)(2) and 1103(c)
of the Code; and
ORDERS
APPROVED
By the Board of
UNDER
BANK
HOLDING
169
(C) the sale of the shares of Company by
Northwestern is necessary or appropriate to effectuate § 4 of the BHC Act.
This certification is based upon the representations made to the board by Northwestern and
upon the facts set forth above. In the event the
board should hereafter determine that facts material to this certification are otherwise than as represented by Northwestern, or that Northwestern
has failed to disclose to the board other material
facts, it may revoke this certification.
By order of the Board of Governors acting
through its General Counsel, pursuant to delegated
authority (12 C.F.R. § 265.2(b)(3), effective January 8, 1979.
[seal]
COMPANY
(Signed) G r i f f i t h L . G a r w o o d ,
Deputy Secretary of the Board.
ACT
Governors
During January 1979, the Board of Governors approved the applications listed below. Copies are
available upon request to Publications Services, Division of Support Services, Board of Governors of the
Federal Reserve System, Washington, D.C. 20551.
Section 3
Applicant
Capital Management, Inc.,
Lincoln, Nebraska
Chenoa Corporation,
Farmer City, Illinois
Lockney Bancshares, Inc.,
Lockney, Texas
Miles Service Corporation,
Miles, Iowa
Northwest Ohio Bancshares, Inc.,
Toledo, Ohio
Palisade Bancshares, Inc.,
Palisade, Colorado
South Plains Bancshares, Inc.,
Idalou, Texas
T & C Bancorp, Inc.,
St. Joseph, Missouri
Bank(s)
Broken Bow Enterprises, Inc.,
Broken Bow, Nebraska
Bank of Chenoa, Chenoa,
Illinois
First National Bank in Lockney,
Lockney, Texas
Miles Savings Bank,
Miles, Iowa
The Willard United Bank,
Willard, Ohio
The Palisade National Bank,
Palisade, Colorado
Idalou State Bank,
Idalou, Texas
Town and Country Bank,
Quincy, Illinois
Board action
(effective
date)
1/29/79
1/15/79
1/19/79
1/12/79
1/26/79
1/25/79
1/12/79
1/15/79
A 170
Federal Reserve Bulletin • February 1979
Section 4
Nonbanking
company
(or activity)
Applicant
Chenoa Corporation,
Farmer City, Illinois
By Federal Reserve
Effective
date
To act as agent or broker
for the sale of insurance
directly related to extensions
of credit by Bank
1/15/79
Banks
Recent applications have been approved by the Federal Reserve Banks as listed below. Copies of
the orders are available upon request to the Reserve Banks.
Section 4
Applicant
Bank(s)
CB & T Bancshares, Inc.,
Columbus, Georgia
Security Bank and Trust
Company of Albany, Albany,
Georgia
Community State Bank,
Eau Claire, Wisconsin
Central Wisconsin
Bancshares, Inc.,
Wausau, Wisconsin
ORDERS
APPROVED
UNDER
BANK
Applicant
Central Bank of Northern
Virginia, Bailey's Crossroads,
Virginia
Fidelity American Bank,
Norfolk, Virginia
United Jersey Bank,
Hackensack, New Jersey
MERGER
Reserve
Bank
Effective
date
Atlanta
1/23/79
Chicago
1/15/79
ACT
Bank(s)
First Manassas Bank and
Trust Company, Manassas,
Virginia
Fidelity American Bank,
Eastern Shore, Parksley,
Virginia
United Jersey Bank/South Bergen,
Carlstadt, New Jersey
Reserve
Bank
Effective
date
Richmond
1/15/79
Richmond
1/25/79
New York
1/25/79
Law Department
PENDING
CASES
INVOLVING
THE
BOARD
OF
171
GOVERNORS
Does not include suits against the Federal Reserve Banks in which the Board of Governors is not
named a party.
California Life Corporation v. Board of Governors, filed January 1979, U.S.C.A. for the
District of Columbia.
Hunter Holding Company v. Board of Governors,
filed December 1978, U.S.C.A. for the Eighth
Circuit.
Consumers Union of the United States v. G.
William Miller, et al., filed December 1978,
U.S.D.C. for the District of Columbia.
Commercial National Bank, et alv.
Board of
Governors, filed December 1978, U.S.C.A. for
the District of Columbia.
Ella Jackson et al., v. Board of Governors, filed
November 1978, U.S.C.A. for the Fifth Circuit.
Metro-North State Bank, Kansas City v. Board
of Governors, filed October 1978, U.S.C. A. for
the Eighth Circuit.
Manchester-Tower
Grove Community
Organization/ACORN v. Board of Governors, filed
September 1978, U.S.C.A. for the District of
Columbia.
Beckley v. Board of Governors, filed July 1978,
U.S.D.C. for the Northern District of Illinois.
Independent Bankers Association of Texas v. First
National Bank in Dallas, et al., filed July 1978,
U.S.C.A. for the Northern District of Texas.
Mid-Nebraska Bancshares, Inc. v. Board of Governors, filed July 1978, U.S.C.A. for the District of Columbia.
NCNB Corporation v. Board of Governors, filed
June 1978, U.S.C.A. for the Fourth Circuit.
United States League of Savings Associations v.
Board of Governors, filed May 1978, U.S.D.C.
for the District of Columbia.
Citicorp v. Board of Governors, filed March 1978,
U.S.C.A. for the Second Circuit.
Security Bancorp and Security National Bank v.
Board of Governors, filed March 1978,
U.S.C.A. for the Ninth Circuit.
Michigan National Corporation v. Board of Governors, filed January 1978, U.S.C.A. for the
Sixth Circuit.
Wisconsin Bankers Association v. Board of Governors, filed January 1978, U.S.C.A. for the
District of Columbia.
Vickars-Henry Corp. v. Board of Governors, filed
December 1977, U.S.C.A. for the Ninth Circuit.
Emch v. The United States of America, et al.,
filed November 1977, for the Eastern District
of Wisconsin.
Central Bank v. Board of Governors, filed October 1977, U.S.C.A. for the District of Columbia.
Investment Company Institute v. Board of Governors, filed September 1977, U.S.D.C. for the
District of Columbia.
BankAmerica Corporation v. Board of Governors, filed May 1977, U.S.D.C. for the Northern District of California.
BankAmerica Corporation v. Board of Governors, filed May 1977, U.S.C.A. for the Ninth
Circuit.
Roberts Farms, Inc. v. Comptroller of the Currency, et al., filed November 1975, U.S.D.C.
for the Southern District of California.
Florida Association of Insurance Agents, Inc. v.
Board of Governors, and National Association
of Insurance Agents, Inc. v. Board of Governors, filed August 1975, actions consolidated
in U.S.C.A. for the Fifth Circuit.
David R. Merrill, et al., v. Federal Open Market
Committee of the Federal Reserve System, filed
May 1975, U.S.D.C. for the District of Columbia.
Bankers Trust New York Corporation v. Board
of Governors, filed May 1973, U.S.C.A. for
the Second Circuit.
1
Financial and Business Statistics
CONTENTS
Domestic
Financial
Statistics
WEEKLY
A3 Monetary aggregates and interest rates
A4 Factors affecting member bank reserves
A5 Reserves and borrowings of member
banks
A6 Federal funds transactions of money
market banks
POLICY
COMMERCIAL
BANKS
Assets and Liabilities of—
A20
All reporting banks
A21
Banks in New York City
A22
Banks outside New York City
A23 Balance sheet memoranda
A24 Commercial and industrial loans
A25 Gross demand deposits of individuals,
partnerships, and corporations
INSTRUMENTS
A8 Federal Reserve Bank interest rates
A9 Member bank reserve requirements
A10 Maximum interest rates payable on
time and savings deposits at federally
insured institutions
A l l Federal Reserve open market
transactions
FEDERAL
REPORTING
RESERVE
BANKS
FINANCIAL
MARKETS
A25 Commercial paper and bankers
acceptances outstanding
A26 Prime rate charged by banks on
short-term business loans
A26 Terms of lending at commercial banks
All Interest rates in money and capital
markets
A28 Stock market—Selected statistics
A12 Condition and F.R. note statements
A13 Maturity distribution of loan and
security holdings
A29 Savings institutions—Selected assets
and liabilities
MONETARY
FEDERAL
AND
CREDIT
AGGREGATES
A13 Bank debits and deposit turnover
A14 Money stock measures and components
A15 Aggregate reserves and deposits of
member banks
A15 Loans and investments of all
commercial banks
COMMERCIAL
BANK
ASSETS
AND
LIABILITIES
A16 Last-Wednesday-of-month series
A17 Call-date series
A18 Detailed balance sheet, June 30, 1978
FINANCE
A30 Federal fiscal and financing operations
A31 U.S. budget receipts and outlays
A32 Federal debt subject to statutory
limitation
A32 Gross public debt of U.S. Treasury—
Types and ownership
A33 U.S. government marketable
securities—Ownership, by maturity
A34 U.S. government securities dealersTransactions, positions, and financing
A35 Federal and federally sponsored credit
agencies—Debt outstanding
A2
Federal Reserve Bulletin • February 1979
SECURITIES
MARKETS
CORPORATE
International
AND
FINANCE
A 3 6 N e w security i s s u e s — S t a t e and local
governments and corporations
A 3 7 Open-end investment c o m p a n i e s — N e t
sales and asset position
A 3 7 Corporate profits and their distribution
A 3 8 Nonfinancial c o r p o r a t i o n s — A s s e t s and
liabilities
A 3 8 Business expenditures on new plant
and equipment
A 3 9 D o m e s t i c finance c o m p a n i e s — A s s e t s
and liabilities; business credit
REAL
ESTATE
A 4 0 Mortgage markets
A 4 1 Mortgage debt outstanding
Statistics
A 5 4 U . S . international transactions—
Summary
A 5 5 U . S . foreign trade
A 5 5 U . S . reserve assets
A 5 6 Foreign branches of U . S . b a n k s —
Balance sheet data
A 5 8 Selected U . S . liabilities to foreign
official institutions
REPORTED
BY BANKS
IN THE UNITED
STATES
A 5 9 Liabilities to foreigners
A 6 1 Banks' o w n claims on foreigners
A 6 2 Banks' o w n and d o m e s t i c customers
claims on foreigners
A 6 3 Banks' o w n claims on unaffiliated
foreigners
A 6 3 Liabilities to and claims on foreigners
CONSUMER INSTALLMENT CREDIT
SECURITIES
A 4 2 Total outstanding and net change
A 4 3 Extensions and liquidations
FLOW
OF FUNDS
A 4 4 Funds raised in U . S . credit markets
A 4 5 Direct and indirect sources of funds to
credit markets
Nonfinancial
Statistics
A 4 6 Nonfinancial business activity—
Selected measures
A 4 6 Output, capacity, and capacity
utilization
A 4 7 Labor force, e m p l o y m e n t , and
unemployment
A 4 8 Industrial p r o d u c t i o n — I n d e x e s and
gross value
A 5 0 Housing and construction
A 5 1 Consumer and w h o l e s a l e prices
A 5 2 Gross national product and income
A 5 3 Personal i n c o m e and saving
AND
TRANSACTIONS
A 6 4 Marketable U . S . Treasury bonds and
n o t e s — F o r e i g n holdings and
transactions
A 6 4 Foreign official assets held at F . R .
Banks
A 6 5 Foreign transactions in securities
REPORTED
Domestic
HOLDINGS
BY NONBANKING
THE UNITED
CONCERNS
IN
STATES
A 6 6 Short-term liabilities to and claims on
foreigners
A 6 7 Long-term liabilities to and c l a i m s on
foreigners
INTEREST
AND EXCHANGE
RATES
A 6 8 Discount rates of foreign central banks
A 6 8 Foreign short-term interest rates
A69 Guide to Tabular
Presentation
and Statistical
Releases
Domestic Financial Statistics
1.10
A3
MONETARY AGGREGATES A N D INTEREST RATES
1978
1978
Item
Ql
Q2
Q4
Q3
Aug.
Sept.
Oct.
Nov.
Dec.
Monetary and credit aggregates
(annual rates of change, seasonally adjusted in per cent) 12
1
2
3
Member bank reserves
Total
Required
Nonborrowed
4
5
6
7
Concepts of money1
M-l
M-1 +
M-2
M-3
8
9
10
11
Time and savings deposits
Commercial banks:
Total
Savings
Other time
Thrift institutions 2
12 Total loans and investments at commercial banks 3
8.9
8.8
14.5
6.2
6.7
0.6
8.6
8.6
6.6
3.1
2.8
5.4
-5.0
-4.2
0.2
8.6
8.0
11.3
5.4
6.1
-0.9
-3.5
-5.3
13.5
6.1
6.1
1.3
6.6
5.0
7.0
8.1
9.2
7.2
8.4
8.4
8.1
6.0
9.9
10.4
4.4
2.5
7.7
9.4
8.5
7.2
11.6
11.5
13.8
12.1
13.0
13.4
1.7
0.8
6.5
8.9
-2.0
-4.9
4.7
6.7
1.7
-1.4
2.7
5.6
12.5
2.0
11.7
9.7
11.5
3.8
11.4
8.5
11.3
2.3
18.5
11.1
12.4
-0.9
19.2
11.7
10.9
4.8
21.2
11.3
12.7
9.7
14.8
14.0
8.5
-1.6
19.3
12.0
21.9
-9.6
24.5
9.8
5. J
-7.5
12.0
9.7
10.1
14.9
10.8
7.7
5.1
9.7
9.8
6.7
1.1
1978
Ql
Q2
1978
Q3
Q4
Sept.
Oct.
1979
Nov.
Dec.
Jan.
Interest rates (levels, per cent per annum)
13
14
15
16
Short-term rates 4
Federal funds
Federal Reserve discount 5
Treasury bills (3-month market yield)
6
Commercial paper (90- to 119-day)6-7
6.76
6.46
6.39
6.76
7.28
6.78
6.48
7.16
8.09
7.50
7.31
8.03
9.58
9.09
8.57
9.83
8.45
7.83
7.85
8.39
8.96
8.26
7.99
8.98
9.76
9.50
8.64
10.14
10.03
9.50
9.08
10.37
10.07
9.50
9.35
10.25
17
18
19
Long-term rates
Bonds:
U.S. government8
State and local government^
Aaa utility (new issue)1®
8.19
5.65
8.70
8.43
6.02
8.98
8.53
6.16
8.94
8.78
6.28
9.23
8.47
6.09
8.86
8.69
6.13
9.17
8.75
6.19
9.27
8.90
6.51
9.28
8.98
6.47
9.54
9.23
9.58
9.80
10.12
9.80
9.95
10.10
'10.30
10.30
20
Conventional mortgages11
1
M-l equals currency plus private demand deposits adjusted.
M-l + equals M-l plus savings deposits at commercial banks, NOW
accounts at banks and thrift institutions, credit union share draft accounts, and demand deposits at mutual savings banks.
M-2 equals M-l plus bank time and savings deposits other than large
negotiable certificates of deposit (CDs).
M-3 equals M-2 plus deposits at mutual savings banks, savings and
loan
associations, and credit union shares.
2
Savings and loan associations, mutual savings banks, and credit
unions.
3
Quarterly changes calculated from figures shown in table 1.23.
4
Seven-day averages of daily effective rates (average of the rates on
a given
date weighted by the volume of transactions at those rates).
5
Rate for the Federal Reserve Bank of New York.
6
7
r
Quoted on a bank-discount basis.
Beginning Nov. 1977, unweighted average of offering rates quoted by
five8 dealers. Previously, most representative rate quoted by these dealers.
Market yields adjusted to a 20-year maturity by the U.S. Treasury.
9
Bond Buyer series for 20 issues of mixed quality.
I
o Weighted averages of new publicly offered bonds rated Aaa, Aa,
and A by Moody's Investors Service and adjusted to an Aaa basis.
Federal
Reserve compilations.
II
Average rates on new commitments for conventional first mortgages
on new homes in primary markets, unweighted and rounded to nearest
5 basis
points, from Dept. of Housing and Urban Development.
12
Unless otherwise noted, rates of change are calculated from average
amounts outstanding in preceding month or quarter.
A4
DomesticNonfinancialStatistics • February 1979
1.11
FACTORS AFFECTING MEMBER BANK RESERVES
Millions of dollars
Monthly averages of daily
figures
Weekly averages of daily figures for weeks ending—
Factors
1978
Nov.
1979
1978
1979
Dec.
Jan.P
Dec. 20
Dec. 27
Jan. 3
Jan. 10
Jan. 17
Jan. 24f
Jan. 3If
SUPPLYING RESERVE FUNDS
1 Reserve Bank credit outstanding.... 129,544
U.S. government securities1
Bought outright
Held under repurchase agreement
Federal agency securities
Bought outright
Held under repurchase agreement
2
3
4
5
6
7
8
9
10
11
Acceptances
Loans
Float
Other Federal Reserve a s s e t s . . . .
12 Gold stock
13 Special Drawing Rights certificate
account
14 Treasury currency outstanding
129,330
128,805
129,644
131,307
132,678
128,914
129,659
127,746
126,657
111,243
110,728
109,255
108,780
105,287
105,151
109,902
109,798
107,835
107,375
110,306
109,032
104,737
104,737
107,131
107,131
104,725
104,725
102,629
102,629
515
8,109
7,928
475
8,089
7,897
136
7,905
7,878
104
7,942
7,896
460
8,212
7,896
1,274
8,225
7,895
7,892
7,892
7,892
7,892
7,889
7,889
7,832
7,832
181
192
27
46
316
330
180
722
6,588
2,702
167
874
7,423
3,522
56
994
9,938
4,625
6
568
7,322
3,904
110
1,413
9,264
4,473
574
1,183
7,917
4,472
686
11,088
4,512
896
9,354
4,386
924
9,859
4,349
1,427
9,471
5.299
11,645
11,635
11,625
11,611
11,628
11,671
11,660
11,609
11,608
11,603
1,300
11,779
1,300
11,826
1,300
11,867
1,300
11,822
1,300
11,844
1,300
11,838
1,300
11,850
1,300
11,864
1,300
11,875
1.300
11,888
110,929
278
113,395
260
112,341
250
113,329
261
114,377
245
114,720
242
113,761
246
112,599
247
111,437
249
110,552
261
8,186
289
540
3,931
301
724
3,379
288
826
3,748
292
666
4,952
320
620
3,882
334
1,204
3,116
341
710
3,302
277
786
3,420
269
858
3,477
256
789
ABSORBING RESERVE FUNDS
15 Currency in circulation
16 Treasury cash holdings
Deposits, other than member bank
reserves with F.R. Banks:
17
Treasury
18
Foreign
19
Other2
20
21
Other F.R. liabilities and capital
Member bank reserves with F.R.
Banks
4,193
4,322
4,522
4,367
4,548
4,343
4,417
4,490
4,593
4,658
29,853
31,158
31,991
31,715
31,018
32,765
31,133
32,731
31,703
31,456
End-of-month figures
1979
1978
Wednesday figures
1979
1978
Nov.
Dec.
Jan.f
Dec. 20
Dec. 27
Jan. 3
Jan. 10
Jan. 17
Jan. 24p
Jan. 31f
SUPPLYING RESERVE FUNDS
131,605
131,327
126,053
130,778
137,791
131,905
126,066
132,291
128,477
126,053
23
24
25
U.S. government securities1
Bought outright
Held under repurchase agree-
113,305
113,305
110,562
109,478
101,279
101,279
107,104
107,104
111,639
109,583
106,896
106,755
102,833
102,833
102,373
102,373
105,724
105,724
101,279
101,279
26
27
28
Federal agency securities
Bought outright
Held under repurchase agree-
7,899
7,899
1,084
8,029
7,896
7,507
7,507
7,896
7,896
2,056
9,165
7,896
141
7,901
7,892
7,892
7,892
7,892
7,892
7,886
1,886
7,507
7,507
133
1,269
9
29
30
31
32
Acceptances
Loans
Float
Other Federal Reserve a s s e t s . . . .
813
7,238
2,350
587
1,174
6,432
4,543
4,364
7,227
5,676
504
10,932
4,342
444
3,110
8,812
4,621
303
615
11,775
4,415
759
10,318
4,264
2,043
15,305
4,678
1,081
9,392
4,394
4,364
7,227
5,676
11,642
11,671
11,592
11,611
11,671
11,671
11,624
11,608
11,608
11,592
1,300
11,790
1,300
11,831
1,300
11,909
1,300
11,822
1,300
11,846
1,300
11,847
1,300
11,854
1,300
11,870
1,300
11,882
1,300
11,909
112,072
267
114,645
240
110,683
264
114,075
250
115,227
241
114,786
245
113,478
249
112,294
244
111,158
249
110,683
264
6,587
379
567
4,196
368
1,256
3,522
339
874
4,500
275
582
3,540
285
613
3,578
270
754
2,286
234
653
3,061
316
712
3,432
291
853
3,522
339
874
4,545
4,275
4,594
4,499
4,704
4,169
4,345
4,542
4,596
4,594
30,578
31,329
37,999
32,921
29,600
35,900
32,688
30,578
22
Reserve bank credit outstanding....
33
34
Gold stock
Special Drawing Rights certificate
account
35 Treasury currency outstanding
ABSORBING RESERVE FUNDS
36 Currency in circulation
37 Treasury cash holdings
Deposits, other than member bank
reserves with F.R. Banks:
38
Treasury
39
Foreign
40
Other2
41
42
Other F.R. liabilities and capital. ..
Member bank reserves with F.R.
Banks
1
31,919
31,152
Includes securities loaned—fully guaranteed by U.S. govt, securities
pledged with F.R. Banks—and excludes (if any) securities sold and scheduled
to be bought back under matched sale-purchase transactions.
2
Includes certain deposits of foreign-owned banking institutions
voluntarily held with member banks and redeposited in full with Federal
Reserve Banks.
NOTE. For amounts of currency and coin held as reserves, see Table
1.12.
Member Banks
1.12
RESERVES A N D BORROWINGS
A5
Member Banks
Millions of dollars
Monthly averages of daily figures
Reserve classification
1979
1978
1977
Dec.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.?
All member banks
Reserves:
At F.R. Banks
Currency and coin
Total held i
Required
Excess1
Borrowings at F.R. Banks: 2
6
Total
7
Seasonal
27,057
9,351
36,471
36,297
174
27,890
9,151
37,119
36,867
252
27,840
9,345
37,262
37,125
137
28,570
9,542
38,189
38,049
140
28,079
9,512
37,666
37,404
262
28,010
9,605
37,689
37,614
75
28,701
9,654
38,434
38,222
212
29,853
9,794
39,728
39,423
305
31,158
10,330
41,572
41,447
125
31,991
11,099
43,221
42,873
348
558
54
1,227
93
1,111
120
1,286
143
1,147
188
1,068
191
1,261
221
722
185
874
134
994
106
8
9
10
11
Large banks in New York City
Reserves held
Required
Excess
Borrowings2
6,244
6,279
-35
48
6,315
6,236
79
113
6,341
6,376
-35
54
6,606
6,581
25
129
6,334
6,290
44
58
6,182
6,251
-69
78
6,428
6,349
79
157
6,682
6,658
24
48
7,120
7,243
-123
99
7,677
7,690
-13
117
12
13
14
15
Large banks in Chicago
Reserves held
Required
Excess
Borrowings2
1,593
1,613
-20
26
1,697
1,669
28
19
1,668
1,670
-2
20
1,708
1,707
20
1,648
1,646
2
3
1,655
1,650
5
35
1,672
1,649
23
14
1,791
1,765
26
4
1,907
1,900
7
10
1,986
2,010
-24
22
16
17
18
19
Other large banks
Reserves held
Required
Excess
Borrowings2
13,993
13,931
62
243
14,106
14,079
27
500
14,250
14,225
25
536
14,553
14,569
-16
499
14,502
14,423
79
417
14,564
14,541
23
363
14,862
14,867
-5
408
15,547
15,447
100
194
16,446
16,342
104
276
16,873
16,930
-57
269
20
21
22
23
All other banks
Reserves held
Required
Excess
Borrowings2
14,641
14,474
167
241
15,001
14,883
118
595
15,003
14,854
149
501
15,322
15,192
130
638
15,182
15,045
137
669
15,288
15,172
116
592
15,472
15,357
115
682
15,708
15,553
155
476
16,099
15,962
137
489
16,253
16,243
10
586
1
2
3
4
5
Weekly averages of daily figures for weeks ending1979
1978
Nov. 29
Dec. 6
Dec. 13
Dec. 20
Dec. 27
Jan. 3
Jan. 10
Jan. 17
Jan. 24f
Jan. 31f
All member banks
Reserves:
At F.R. Banks
Currency 1and coin
Total held
Required
Excess1
Borrowings at F.R. Banks: 2
29
Total
30
Seasonal
31,416
9,785
41,283
41,130
153
31,328
10,056
41,465
41,138
327
30,139
10,843
41,063
40,911
152
31,715
10,006
41,802
41,565
237
31,018
10,258
41,357
41,412
-55
32,765
10,538
43,420
42,694
726
31,133
10,450
41,722
41,844
-122
32,731
11,991
44,860
44,456
404
31,703
11,169
42,996
42,991
5
31,456
11,025
42,608
42,278
330
792
180
698
150
591
131
568
131
1,413
131
1,183
119
686
93
896
98
924
105
1,427
114
31
32
33
34
Large banks in New York City
Reserves held
Required
Excess
Borrowings2
6,968
6,980
-12
31
7,300
7,236
64
7,122
7,130
-8
7,391
7,300
91
6,871
7,025
-154
330
7,933
7,734
199
143
7,204
7,360
-156
8,472
8,379
93
169
7,451
7,658
-207
14
7,292
7,345
-53
299
35
36
37
38
Large banks in Chicago
Reserves held
Required
Excess
Borrowings2
1,886
1,881
5
6
1,891
1,913
-22
1,862
1,867
-5
10
1,945
1,950
-5
6
1,883
1,849
34
29
1,964
1,944
20
9
1,959
1,955
4
3
2,261
2,224
37
1,845
1,941
-96
3
1,903
1,950
-47
90
39
40
41
42
Other large banks
Reserves held
Required
Excess
Borrowings2
16,323
16,255
68
236
16,206
16,093
113
176
16,174
16,133
41
193
16,383
16,377
6
106
16,391
16,439
-48
488
17,120
16,846
274
470
16,459
16,519
-60
241
17,545
17,488
57
234
17,054
17,001
53
199
16,722
16,748
-26
339
43
44
45
46
All other banks
Reserves held
Required
Excess
Borrowings2
16,106
16,014
92
519
16,068
15,896
172
522
15,905
15,781
124
388
16,083
15,938
145
456
16,212
16,099
113
566
16,403
16,170
233
561
16,100
16,010
90
442
16,582
16,365
217
493
16,257
16,391
-134
708
16,353
16,235
118
699
24
25
26
27
28
i Adjusted to include waivers of penalties for reserve deficiencies in
accordance with board policy, effective Nov. 19, 1975, of permitting
transitional relief on a graduated basis over a 24-month period when a
nonmember bank merges into an existing member bank, or when a
nonmember bank joins the Federal Reserve System. For weeks for which
figures are preliminary, figures by class of bank do not add to total
because
adjusted data by class are not available,
2
Based on closing figures.
A6
1.13
Domestic Financial Statistics • February 1979
FEDERAL F U N D S TRANSACTIONS Money Market Banks
Millions of dollars, except as noted
1978, week ending—
Type
Dec. 6
Dec. 13
Dec. 20
1979, week ending—
Dec. 27
Jan. 3
Jan. 10
Jan. 17
Jan. 24
Jan. 31
Total, 46 banks
1
2
3
Basic reserve position
Excess reserves1
169
127
166
-40
331
-36
65
-11
46
62
81
1
590
226
79
211
42
439
15,823
17,468
15,421
15,136
14,813
17,623
17,052
15,248
12,928
-15,716
-17,422
-15,256
-15,765
-14,708
-17,737
-17,199
-15,301
-13,321
87.7
97.7
83.7
88.1
77.8
96.7
85.2
81.4
72.6
23,567
1,1 AA
5,965
23,265
5,797
4,952
23,624
8,203
6,135
22,886
7,750
5,854
23,480
8,667
6,329
24,357
6,734
5,421
23,953
6,901
5,471
22,400
7,152
5,315
20,855
7,927
6,370
17,602
1,778
18,313
845
17,489
2,068
17,032
1,896
17,151
2,339
18,936
1,313
18,482
1,429
17,085
1,836
14,485
1,558
3,833
1,831
2,002
5,153
1,590
3,564
3,857
1,226
2,631
4,606
1,865
2,740
3,062
1,679
1,382
5,101
1,232
3,869
3,114
1,146
1,968
3,988
1,414
2,573
4,697
1,336
3,361
-21
LESS:
Borrowings at F.R. Banks
Net interbank federal funds
transactions
EQUALS: Net surplus, or
4
5
deficit ( - ) :
Amount
Percent of average required
reserves
9
10
Interbank federal funds transactions
Gross transactions:
Purchases
Sales
Two-way transactions2
Net transactions:
Purchases of net buying banks.. .
Sales of net selling banks
11
12
13
Related transactions with U.S.
government securities dealers
Loans to dealers3
Borrowing from dealers4
Net loans
6
7
8
8 banks in New York City
14
Basic reserve position
Excess reserves1
48
37
128
-61
169
312
143
-37
47
-9
162
14
272
LESS:
15
16
Borrowings at F.R. Banks
Net interbank federal funds
transactions
2,529
4,136
2,816
3,134
4,214
4,145
4,226
2,480
2,050
-2,481
-4,099
-2,688
-3,507
-4,188
-4,182
-4,341
-2,503
-2,344
37.8
63.4
40.6
55.1
59.5
62.6
57.0
36.2
35.4
4,281
1,752
1,182
4,894
758
758
4,940
2,124
1,500
4,658
1,523
1,379
5,299
1,085
1,085
5,078
933
933
5,227
1,001
1,001
4,142
1,663
1,224
3,674
1,623
1,449
3,099
570
4,136
3,440
624
3,278
144
4,214
4,145
4,226
2,919
439
2,225
175
2,114
659
1,455
2,970
609
2,361
2,382
450
1,932
3,066
420
2,646
1,896
382
1,514
3,206
399
2,807
1,790
394
1,396
2,366
426
1,940
2,987
377
2,610
EQUALS : Net surplus, or
17
18
deficit ( - ) :
Amount
Percent of average required
reserves
Interbank federal funds transactions
Gross transactions:
19
Purchases
20
Sales
21
Two-way transactions2
Net transactions:
22
Purchases of net buying banks..
23
Sales of net selling banks
24
25
26
.
Related transactions with U.S.
government securities dealers
Loans to dealers3
Borrowing from dealers4
Net loans
38 banks outside New York City
27
Basic reserve position
Excess reserves1
121
91
38
21
163
1
18
-2
67
62
81
1
278
83
79
50
27
166
13,294
13,332
12,605
12,002
10,600
13,478
12,826
12,769
10,878
-13,235
-13,323
-12,567
-12,258
-10,520
-13,555
-12,858
-12,798
-10,977
116.5
117.2
108.3
106.3
88.7
116.2
102.3
107.7
93.6
19,286
5,992
4,783
18,371
5,039
4,194
18,684
6,079
4,635
18,229
6,227
4,475
18,182
7,582
5,245
19,279
5,801
4,488
18,726
5,900
4,470
18,258
5,489
4,092
17,182
6,304
4,921
14,503
1,208
14,177
845
14,049
1,444
13,754
1,752
12,937
2,339
14,791
1,313
14,256
1,429
14,166
1,397
12,260
1,383
1,718
1,172
547
2,183
981
1,202
1,475
lie
699
1,540
1,446
94
1,166
1,297
-131
1,895
833
1,062
1,324
752
572
1,622
989
633
1,710
959
751
LESS:
28
29
Borrowings at F.R. Banks
Net interbank federal funds
transactions
EQUALS : Net surplus, or
30
31
deficit ( - ) :
Amount
Percent of average required
reserves
35
36
Interbank federal funds transactions
Gross transactions:
Purchases
Sales
Two-way transactions2
Net transactions :
Purchases of net buying banks...
Sales of net selling banks
37
38
39
Related transactions with U.S.
government securities dealers
Loans to dealers3
Borrowing from dealers4
Net loans
32
33
34
For notes see end of table.
Federal Funds
1.13
A7
Continued
1978, week ending—
Type
Dec. 6
Dec. 13
Dec. 20
1979, week ending—
Dec. 27
Jan. 3
Jan. 10
Jan. 17
Jan. 24
Jan. 31
5 banks in City of Chicago
40
Basic reserve position
Excess reserves1
19
15
-19
LESS:
41
42
Net interbank federal funds
transactions
23
37
17
45
22
29
17
80
5,424
5,930
6,477
6,025
5,379
6,131
5,880
5,207
4,597
-5,405
-5,915
-6,497
-6,030
-5,341
-6,114
-5,835
-5,184
-4,661
304.1
341.6
355.2
348.9
293.3
333.9
278.1
284.9
255.1
7,030
1,606
1,606
7,082
1,153
1,153
7,704
1,226
1,189
7,183
1,158
1,101
6,746
1,368
1,290
7,309
1,179
1,136
7,168
1,288
1,218
6,708
1,501
1,428
6,123
1,525
1,505
5,424
5,930
6,515
38
6,083
58
5,456
77
6,173
42
5,950
69
5,280
73
4,618
20
216
354
-139
215
276
-60
300
160
140
259
417
-158
179
298
-119
266
4
262
213
58
155
179
9
171.
209
125
84
EQUALS: Net surplus, or
43
44
45
46
47
48
49
deficit ( - ) :
Amount
Percent of average required
reserves
Interbank federal funds transactions
Gross transactions:
Purchases
Sales
Two-way transactions2
Net transactions:
Purchases of net buying banks...
Sales of net selling banks
Related transactions with U.S.
government securities dealers
Loans to dealers3
Borrowing from dealers4
52
Net loans
50
51
33 other banks
53
Basic reserve position
Excess reserves1
LESS:
54
55
Borrowings at F.R. Banks
Net interbank federal funds
transactions
102
76
58
-2
126
-16
-27
-25
62
81
1
249
83
79
50
27
86
7,871
7,403
6,128
5,977
5,221
7,347
6,946
7,562
6,280
-7,830
-7,408
-6,071
-6,228
-5,178
-7,441
-7,023
-7,614
-6,316
81.7
76.9
62.1
63.5
51.6
75.7
67.0
75.7
63.8
12,256
4,385
3,177
11,289
3,886
3,041
10,981
4,853
3,446
11,045
5,068
3,374
11,436
6,215
3,954
11,970
4,623
3,352
11,558
4,612
3,252
11,550
3,987
2,663
11,059
A,119
3,417
9,079
1,208
8,248
845
7,534
1,406
7,671
1,694
7,482
2,262
8,618
1,271
8,306
1,360
8,886
1,324
7,642
1,362
1,503
818
685
1,968
705
1,263
1,175
616
559
1,281
1,029
252
987
999
-12
1,629
829
800
1,110
1,442
980
462
1,501
51
EQUALS: Net surplus, or
56
57
deficit ( - ) :
Amount
Percent of average required
reserves
61
62
Interbank federal funds transactions
Gross transactions:
Purchases
Sales
Two-way transactions2
Net transactions:
Purchases of net buying banks...
Sales of net selling banks
63
64
65
Related transactions with U.S.
government securities dealers
Loans to dealers3
Borrowing from dealers4
Net loans
58
59
60
1
Based on reserve balances, including adjustments to include waivers
of penalities for reserve deficiencies in accordance with changes in policy
of 2the Board of Governors effective Nov. 19, 1975.
Derived from averages for individual banks for entire week. Figure
for each bank indicates extent to which the bank's average purchases
and3 sales are offsetting.
Federal funds loaned, net funds supplied to each dealer by clearing
banks, repurchase agreements (purchases from dealers subject to resale),
or other lending arrangements.
694
417
834
667
4
Federal funds borrowed, net funds acquired from each dealer by
clearing banks, reverse repurchase agreements (sales of securities to
dealers subject to repurchase), resale agreements, and borrowings secured
by U.S. govt, or other securities.
NOTE. Weekly averages of daily figures. For description of series, see
August 1964 BULLETIN, pp. 944-53. Back data for 46 banks appear in
the board's Annual Statistical Digest, 1971-1975, table 3.
A8
1.14
Domestic Financial Statistics • February 1979
FEDERAL RESERVE BANK INTEREST RATES
Per cent per annum
Current and previous levels
Loans to member banks
Loans to all others
under sec. 13, last par.4
Under sec. 10(b)2
Under sees. 13 and 13a1
Federal Reserve
Bank
Regular rate
Rate on
1/31/79
Effective
date
Previous
rate
91/2
91/2
91/2
91/2
91/2
91/2
91/2
91/2
91/2
91/2
91/2
91/2
11/2/78
11/1/78
11/2/78
11/2/78
11/2/78
11/3/78
11/2/78
11/2/78
11/1/78
11/2/78
11/2/78
11/2/78
81/2
81/2
81/2
81/2
81/2
81/2
81/2
81/2
81/2
81/2
81/2
81/2
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco....
Rate on
1/31/79
10
10
10
10
10
10
10
10
10
10
10
10
Special rate 3
Effective
date
Previous
rate
11/2/78
11/1/78
11/2/78
11/2/78
11/2/78
11/3/78
11/2/78
11/2/78
11/1/78
11/2/78
11/2/78
11/2/78
9
9
9
9
9
9
9
9
9
9
9
9
Rate on
1/31/79
Effective
date
Previous
rate
Rate on
1/31/79
Effective
date
11/2/78
11/1/78
11/2/78
11/2/78
11/2/78
11/3/78
11/2/78
11/2/78
11/1/78
11/2/78
11/2/78
11/2/78
91/2
91/2
91/2
9%
9%
91/2
9%
91/2
9%
9%
91/2
91/2
12%
121/2
12%
121/2
121/2
121/2
121/2
12%
121/2
12%
12%
121/2
11/2/78
11/1/78
11/2/78
11/2/78
11/2/78
11/3/78
11/2/78
11/2/78
11/1/78
11/2/78
11/2/78
11/2/78
11%
11%
11%
11%
11%
11%
11%
11%
11%
11%
11%
11%
Range
(or level)—
All F.R.
Banks
F.R.
Bank
of
N.Y.
1976—Jan.
19
23
Nov. 22
26
5%-6
5%
51/4-5%
51/4
5%
5%
51/4
514
1977—Aug. 30
31
Sept. 2
Oct. 26
514-534
51/4-534
534
6
514
534
534
6
9
20
May 11
12
July 3
10
Aug. 21
Sept. 22
Oct. 16
20
Nov. 1
3
6-6%
6%
6%-7
7
7-71/4
71/4
73/4
8
8-8%
8%
8%-9%
9%
6%
6%
7
7
71/4
71/4
734
8
8%
8%
9%
9%
In effect Jan 31, 1979
9%
9%
IOI/2
IO1/2
IO1/2
IO1/2
IO1/2
IOI/2
IO1/2
IOI/2
IO1/2
IO1/2
IO1/2
IOI/2
Previous
rate
Range of rates in recent years5
Effective date
In effect Dec. 31, 1970
1971—Jan.
Feb.
July
Nov
Dec.
8
15
19
22
29
13
19
16
23
11
19
13
17
24
1973—Jan. 15
Feb. 26
Mar.
2
Apr. 23
Range
(or level)All F.R.
Banks
F.R.
Bank
of
N.Y.
51/2
5V4-5V2 51/4
5V4
5%
5-5%
5%
5-5%
5
5%
5
4%-5
534
6
6
6%
5
5
7%
5
5
5
1974—Apr. 25,
30,
Dec. 9,
71/2-8
8
734-8
734
714-734
714-734
71/4
634-7%
634
614-634
614
734
734
734
714
71/4
63/4
634
614
614
4V4
43/4
4%
4V2
5
5%
5%
51/2
16,
1975—Jan.
6
10,
24,
Feb. 5,
7,
Mar. 10
14
May 16
23
1
Discounts of eligible paper and advances secured by such paper or by
U.S. government obligations or any other obligations eligible for Federal
Reserve
Bank purchase.
2
Advances secured to the satisfaction of the Federal Reserve Bank.
Advances secured by mortgages on 1- to 4-family residential property
are made at the section 13 rate.
3 Applicable to special advances described in section 201.2(e)(2) of
Regulation A.
534
534-6
61/2
7
71/2
71/2
4*4-5
4 y4
41/2-434
41/2-4%
41/2
5-51/2
5%
5^-534
4.
11.
18.
F.R.
Bank
of
N.Y.
6-6i/ 2
43/4
5
1973—May
Range
(or level)—
All F.R.
Banks
June 11.
15.
July 2,
Aug. 14.
23,
4V4
4 y4-5
5
Effective date
61/2
7
7-71/2
6-61/4
6
6
6
Effective date
1978—Jan.
4
Advances to individuals, partnerships, or corporations other than
member banks secured by direct obligations of, or obligations fully
guaranteed as to principal and interest by, the U.S. government or any
agency
thereof.
5
Rates under sees. 13 and 13a (as described above). For description
and earlier data, see the following publications of the Board of Governors:
Banking and Monetary Statistics, 1914-1941, Banking and Monetary
Statistics, 1941-1970, Annual Statistical Digest, 1971-75, 1972-76, and
1973-77.
Policy Instruments
1.15
A9
MEMBER BANK RESERVE REQUIREMENTS 1
Percent of deposits
Requirements in effect
January 31, 1979
Type of deposit, and deposit interval
in millions of dollars
Previous requirements
Percent
Effective date
Percent
Effective date
Net demand: 2
0-2
7
10-100
100-400
Over 400
ny4
1234
161/4
12/30/76
12/30/76
12/30/76
12/30/76
12/30/76
m
10
12
13
16%
2/13/75
2/13/75
2/13/75
2/13/75
2/13/75
3
3/16/67
m
3/2/67
3/16/67
1/8/76
10/30/75
3ft
3
3
3/2/67
3/16/67
3/16/67
12/12/74
1/8/76
10/30/75
5
3
3
10/1/70
12/12/74
12/12/74
Time: 2 -3.4
Savings
Other time:5
0-5, maturing in—
30-179 days
180 days to 4 years
4 years or more
Over 5, maturing in—
30-179 days
180 days to 4 years
3
2
1
ft
6
2ft
1
Legal limits
Net demand:
Reserve city banks
Other banks
Time
Borrowings from foreign banks
1
For changes in reserve requirements beginning 1963, see board's
Annual Statistical Digest, 1971-1975 and for prior changes, see board's
Annual
Report for 1976, Table 13.
2
(a) Requirement schedules are graduated, and each deposit interval
applies to that part of the deposits of each bank. Demand deposits
subject to reserve requirements are gross demand deposits minus cash
items in process of collection and demand balances due from domestic
banks.
(b) The Federal Reserve Act specifies different ranges of requirements
for reserve city banks and for other banks. Reserve cities are designated
under a criterion adopted effective Nov. 9, 1972, by which a bank having
net demand deposits of more than $400 million is considered to have the
character of business of a reserve city bank. The presence of the head
office of such a bank constitutes designation of that place as a reserve
city. Cities in which there are Federal Reserve Banks or branches are also
reserve cities. Any banks having net demand deposits of $400 million or
less are considered to have the character of business of banks outside of
reserve cities and are permitted to maintain reserves at ratios set for banks
not in reserve cities. For details, see the board's Regulation D.
(c) Effective August 24, 1978, the Regulation M reserve requirements
on net balances due from domestic banks to their foreign branches and
on deposits that foreign branches lend to U.S. residents were reduced to
zero from 4 percent and 1 percent, respectively. The Regulation D reserve
requirement on borrowings from unrelated banks abroad was also reduced
to zero from 4 percent.
(d) Effective with the reserve computation period beginning Nov. 16,
1978, domestic deposits of Edge Corporations are subject to the same
reserve requirements as deposits of member banks.
3 Negotiable order of withdrawal (NOW) accounts and time deposits
such as Christmas and vacation club accounts are subject to the same
requirements
as savings deposits.
4
The average reserve requirement on savings and other time deposits
must
be
at
least
3 percent, the minimum specified by law.
5
Effective November 2, 1978, a supplementary reserve requirement of
2 percent was imposed on time deposits of $100,000 or more, obligations
of affiliates, and ineligible acceptances.
NOTE. Required reserves must be held in the form of deposits with
Federal Reserve Banks or vault cash.
A10
1.16
DomesticNonfinancialStatistics • February 1979
MAXIMUM INTEREST RATES PAYABLE on Time and Savings Deposits at Federally Insured Institutions
Percent per annum
Commercial banks
Type and maturity of deposit
In effect Jan. 31, 1979
Percent
1 Savings
2
Negotiable 1order of withdrawal
accounts
3
Money market time deposits of less
than $100,0002
5
5
9
( )
Other time (multiple- and singlematurity unless otherwise indicated) 3
30-89 days:
4
Multiple-maturity
5
Single-maturity
90 days to 1 year:
Multiple-maturity
Single-maturity
6
7
4
8
9
10
1 to 2 vears
2 to 2i/2 years4
i y 2 to 4 years4
11
12
13
4 to 6 years55
6 to 8 years
8 years or more5
14
Issued to governmental units (all
maturities)
Individual retirement accounts
and
Keogh (H.R. 10) plans6
15
5%
Effective
date
1/1/74
(10)
( )
7/1/73
4%
7/1/73
61/2
7%
71/2
m
7/1/73
11/1/73
12/23/74
6/1/78
6/1/78
6/1/78
1094), and February 1968 (p. 167).
A minimum of $1,000 is required for savings and loan associations,
except in areas where mutual savings banks permit lower minimum denominations. This restriction was removed for deposits maturing in less
than
1 year, effective Nov. 1, 1973.
5
$1,000 minimum except for deposits representing funds contributed
to an Individual Retirement Account (IRA) or a Keogh (H.R. 10) Plan established pursuant to the Internal Revenue Code. The $1,000 minimum
requirement was removed for such accounts in December 1975 and November
1976, respectively.
6
3-year minimum maturity.
7
July 1, 1973, for mutual savings banks; July 6, 1973, for savings and
loan
associations.
8
Oct. 1, 1966, for mutual savings banks; Jan. 21, 1970, for savings and
loan
associations.
9
Commercial banks, savings and loan associations, and mutual savings
banks were authorized to offer money market time deposits effective
June 1, 1978. The ceiling rate for commercial banks is the discount rate
on most recently issued 6-month U.S. Treasury bills. The ceiling rate for
savings and loan associations and mutual savings banks is V4 percent
Effective
date
Percent
5*4
534
5Y4
(
n
m
5
1/1/74
(10)
)
(10)
m
7 Va
9
( )
(10)
5V4
6V2
63/4
11/1/73
71/2
73/4
9
(>
(10)
4
1/21/70
1/21/70
1/21/70
( )
( )
9
Effective
date
8
5
( )
7/20/66
9/26/66
Percent
(7)
9
1/21/70
9/26/66
5
Effective
date
Previous maximum
5V4
(9)
7/1/73
6
In effect Jan. 31, 1979
1/21/70
9
( >
FEDERAL RESERVE BULLETIN f o r O c t o b e r 1 9 6 2 (p. 1279), A u g u s t 1965 (p.
Percent
41/2
1
For authorized states only. Federally insured commercial banks,
savings and loan associations, cooperative banks, and mutual savings
banks in Massachusetts and New Hampshire were first permitted to offer
negotiable order of withdrawal (NOW) accounts on Jan. 1, 1974.
Authorization to issue NOW accounts was extended to similar institutions
throughout New England on Feb. 27, 1976, and in New York State on
Nov. 10, 1978.
2
Must have a maturity of exactly 26 weeks and a minimum denomination
of $10,000, and must be nonnegotiable.
3
For exceptions with respect to certain foreign time deposits see the
4
Previous maximum
7/1/73
9
Savings and loan associations and
mutual savings banks
(7)
5V4
1/21/70
(7)
(7)
s*
1/21/70
1/21/70
1/21/70
6
11/1/73
12/23/74
6/1/78
12/23/74
6/1/78
7/6/77
6/1/78
O1)
71/2
11/1/73
m
m
12/23/74
(10)
7/6/77
higher than the rate for commercial banks. The most recent rates and
effective dates are as follows:
Dec. 28
Thrifts
9.580
9.830
Jan. 4
9.550
9.800
Jan. 11
9.443
9.693
Jan. 18
9.534
9.784
Jan. 25
9.475
9.725
1
0
11
No separate account category.
Between July 1, 1973, and Oct. 31, 1973, there was no ceiling for
certificates maturing in 4 years or more with minimum denominations
of $1,000; however, the amount of such certificates thai an institution
could issue was limited to 5 percent of its total time and savings deposits.
Sales in excess of thatl amount, as well as certificates of less than $1,000,
were limited to the 6 /z percent ceiling on time deposits maturing in 1 l /i
years or more.
Effective Nov. 1, 1973, ceilings were reimposed on certificates maturing
in 4 years or more with minimum denominations of $1,000. There is no
limitation on the amount of these certificates that banks can issue.
NOTE. Maximum rates that can be paid by federally insured commercial banks, mutual savings banks, and savings and loan associations are
established by the Board of Governors of the Federal Reserve System,
the Board of Directors of the Federal Deposit Insurance Corporation,
and the Federal Home Loan Bank Board under the provisions of 12
CFR 217, 329, and 526, respectively. The maximum rates on time deposits in denominations of $100,000 or more were suspended in mid1973. For information regarding previous interest rate ceilings on all
types of accounts, see earlier issues of the FEDERAL RESERVE BULLETIN,
the Federal Home Loan Bank Board Journal, and the Annual Report
of the Federal Deposit Insurance Corporation.
Policy Instruments
1.17
All
FEDERAL RESERVE OPEN MARKET TRANSACTIONS
Millions of dollars
1978
1976
Type of transaction
1977
1978
June
Sept.
Oct.
Nov.
Dec.
972
689
0
2,635
0
0
1,978
2,148
0
2,039
3,587
603
0
2,751
0
0
171
0
0
-241 - 1 , 5 4 4
0
0
168
0
563
0
73
0
-385
0
139
0
-778
0
0
0
705
0
Aug.
July
U.S. GOVERNMENT SECURITIES
Outright transactions (excluding matched salepurchase transactions)
1
2
3
Treasury bills:
Gross purchases
Gross sales
Redemptions
4
5
6
7
Others within 1 year:1
Gross purchases
Gross sales
Exchange, or maturity shift
Redemptions
8
9
10
1 to 5 years:
Gross purchases
Gross sales
Exchange, or maturity shift
11
12
13
5 to 10 years:
Gross purchases
Gross sales
Exchange, or maturity shift
1,048
0
1,572
14
15
16
Over 10 years:
Gross purchases
Gross sales
Exchange, or maturity shift
17
18
19
All maturities:1
Gross purchases
Gross sales
Redemptions
14,343
8,462
5,017
16,628
13,725
2.033
4,395
0
0
1,184
3,017
0
0
4,499 - 5 , 1 7 0
2,500
0
135
0
-380
0
4,188
0
-178
631
0
467
0
0
241
424
0
-490
350
0
-563
507
0
385
628
0
-657
0
0
-705
758
0
584
1,526
0
2,803
176
0
-87
0
0
0
238
0
1,434
110
0
0
87
0
0
163
0
835
0
0
0
642
0
225
553
0
1,565
1,063
0
2,545
115
0
0
0
0
0
113
0
600
122
0
0
139
0
0
108
0
600
0
0
0
19,707
8,639
2
5,017
20,898
7,241
4,636
24,591
13,725
2,033
5,451
0
0
701
466
0
1,919
689
0
3,386
0
0
2,785
2,148
0
3,075
3,587
603
0
2,751
0
2
472
0
792
0
13,738
7,241
2,136
2
3,202
2,833
177
0
-2,588 -6,649
2
701
466
0
20
21
Matched sale-purchase transactions
Gross sales
Gross purchases
196,078 425,214 511,126
196,579 423,841 510,854
52,544
52,557
44,657
44,712
29,162
29,641
33,346
33,130
35,112
36,106
40,785
40,546
52,661
51,586
22
23
Repurchase agreements
Gross purchases
Gross sales
232,891 178,683 151,618
230,355 180,535 152,436
14,956
13,100
15,822
17,374
16,286
15,140
10,724
10,353
18,976
20,565
7,719
8,383
8,133
7,049
7,320 -1,261
2,854
3,540
43 - 2 , 0 1 7
-2,743
9,087
5,798
7,743
891
0
169
1,433
0
223
301
173
235
301
0
28
0
0
4
0
173
13
0
0
28
0
0
12
0
0
39
0
0
3
10,520
10,360
13,811
13,638
40,567
40,885
3,421
3,088
5,170
5,457
3,080
3,032
3,877
3,348
6,675
7,196
2,544
2,670
4,307
4,174
882
1,383
-426
606
-291
-138
501
-533
-165
130
31 Outrighttransactions.net
32 Repurchase agreements, net
-545
410
-196
159
0
-366
0
747
0
-753
0
28
0
419
0
-479
0
-236
0
587
33 Net change in bankers acceptances
-135
-37
-366
747
-753
28
419
-479
-236
587
34 Total net change in System Open Market
Account
9,833
7,143
6,951
8,783 - 2 , 3 0 5
2,744
4,460
-969
-2,419
-2,026
24 Net change in U.S. government securities
FEDERAL AGENCY OBLIGATIONS
Outright transactions:
Gross purchases
Gross sales
Redemptions
Repurchase agreements:
28 Gross purchases
29 Gross sales
25
26
27
30
Net change in federal agency obligations
BANKERS ACCEPTANCES
1
Both gross purchases and redemptions include special certificates
created when the Treasury borrows directly from the Federal Reserve,
as follows (millions of dollars): 1975, 3,549; 1976, none; Sept. 1977,
2,500.
2
In 1975, the system obtained $421 million of 2-year Treasury notes
in exchange for maturing bills. In 1976 there was a similar transaction
amounting to $189 million. Acquisition of these notes is treated as a
purchase; the run-off of bills, as a redemption.
NOTE. Sales, redemptions, and negative figures reduce holdings of
the System Open Market Account; all otherfiguresincrease such holdings.
Details may not add to totals because of rounding.
A12
1.18
DomesticNonfinancialStatistics • February 1979
FEDERAL RESERVE BANKS
Condition and F.R. Note Statements
Millions of dollars
End of month
Wednesday
1979
Account
Jan. 3
Jan. 10
1979
1978
Jan. 17
Jan. 24P
Jan. 3If
Nov.
Dec.
Jan.?
Consolidated condition statement
ASSETS
1 Gold certificate account
2 Special Drawing Rights certificate account
3
4
6
7
Loans:
Member bank borrowings
Other
Acceptances:
1?
13
14
15
16
U.S. government securities
Bought outright:
Bills
Other
Total i
17 Total U.S. government securities
18 Total loans and securities
19
20
21
22
11,624
1,300
11,608
1,300
11,608
1,300
11,592
1,300
11,642
1,300
11,671
1,300
11,592
1,300
265
265
284
305
316
275
274
316
615
759
2,043
1,081
4,364
813
1,174
4,364
7,892
9
7,892
7,892
7,886
7,507
7,899
7,896
133
7,507
39,435
35,513
35,053
38,404
33,959
45,985
42,158
33,959
54,855
12,465
106,755
141
54,855
12,465
102,833
54,855
12,465
102,373
54,855
12,465
105,724
54,855
12,465
101,279
54,855
12,465
113,305
54,855
12,465
109,478
1,084
54,855
12,465
101,279
106,896
102,833
102,373
105,724
101,279
113,305
110,562
101,279
122,017
120,352
113,150
587
303
Federal agency obligations:
8
q
10
11,671
1,300
Cash items in process of collection
Other assets:
Denominated in foreign currencies2
All other
23
115,715
111,484
112,308
114,691
113,150
20,561
394
17,110
396
23,490
396
15,918
395
13,452
395
13,165
396
12,926
394
13,452
395
1,487
2,534
1,477
2,391
1,462
2,820
1,355
2,644
2,528
2,753
53
1,901
1,606
2,543
2,528
2,753
153,927
146,047
153,668
148,216
145,486
150,749
151,066
145,486
103,449
102,137
100,952
99,830
99,354
100,825
103,325
99,354
32,921
3,578
270
754
29,600
2,286
32,688
3,432
653
35,900
3,061
316
712
853
30,578
3,522
339
874
31,919
6,587
379
567
31,152
4,196
368
1,256
30,578
3,522
339
874
37,523
32,773
39,989
37,264
35,313
39,452
36,972
35,313
8,786
1,932
6,792
1,956
8,185
1,986
6,526
1,875
6,225
1,685
5,927
1,725
6,494
2,119
6,225
1,685
151,690
143,658
151,112
145,495
142,577
147,929
148,910
142,577
1,079
1,078
80
1,079
1,078
232
1,082
1,078
396
1,085
1,078
558
1,085
1,078
746
1,073
1,029
718
153,927
146,047
153,668
148,216
145,486
150,749
151,066
145,486
96,405
96,799
96,732
95,794
95,762
92,412
95,307
95,762
LIABILITIES
24 Federal Reserve notes
Deposits:
Member bank reserves
25
U.S. Treasury—General account
26
27
Other
28
29
30 Deferred availability cash items
31 Other liabilities and accrued dividends
32 Total liabilities
234
291
CAPITAL ACCOUNTS
33
34
35
Other capital accounts
36 Total liabilities and capital accounts
37
MEMO: Marketable U.S. govt, securities held in
custody for foreign and intl. account
1,078
1,078 •
1,085
1,078
746
Federal Reserve note statement
38
39
40
41
42
F.R. notes outstanding (issued to Bank)
Collateral held against notes outstanding:
Gold certificate account
Special Drawing Rights certificate account....
Eligible paper
43
112,878
113,078
113,493
113,806
113,618
112,445
112,836
113,618
11,671
1,300
536
99,371
11,624
1,300
672
99,482
11,608
1,300
1,568
99,017
11,608
1,300
924
99,974
11,592
1,300
2,726
98,000
11,642
1,300
692
98,811
11,671
1,300
907
98,958
11,592
1,300
2,726
98,000
112,878
113,078
113,493
113,806
113,618
112,445
112,836
113,618
1
Includes securities loaned—fully guaranteed by U.S. govt, securities
pledged with Federal Reserve Banks—and excludes (if any) securities sold
and scheduled to be bought back under matched sale-purchase transactions.
2
Beginning December 29, 1978, such assets are revalued monthly
at market exchange rates,
Reserve
1.19
FEDERAL RESERVE BANKS
Banks
A13
Maturity Distribution of Loan and Security Holdings
Millions of dollars
Wednesday
Type and maturity
1979
Jan. 3
!
2
3
4
Within 15 days
16 days to 90 days
6
7
8
Within 15 days
16 days to 90 days
91 days to 1 year
End of month
Jan. 10
617
585
32
91 Havs to 1 vear
S Arrontanrcs
759
712
47
1978
Jan. 17
Jan. 24
2,047
2,023
24
Nov. 30
Jan. 31
812
767
45
4,364
4,334
30
1.081
i;o6i
20
1979
Dec. 31
1,172
1,142
30
Jan. 31
4,364
4,334
30
587
587
303
303
9 U.S. government securities
10 Within 15 days1
11 16 days to 90 days
12 91 days to 1 year
13 Over 1 year to 5 years
14 Over 5 years to 10 years
15 Over 10 years
106,896
3,323
18,033
28,358
31,790
14,717
10,675
102,833
4,129
12,605
28,916
31,791
14,717
10,675
102,373
2,311
14,717
28,162
31,791
14,717
10,675
105,724
2,914
18,325
27,302
31,791
14,717
10,675
101,279
3,961
14,369
25,980
31,577
14,717
10,675
113,305
4,467
20,315
31,523
31,608
14,717
10,675
110,562
4,297
19,800
29,465
31,608
14,717
10,675
101,279
3,961
14,369
25,980
31,577
14,717
10,675
16 Federal agency obligations
17 Within 15 days1
18 16 days to 90 days
19 91 days to 1 year
20 Over 1 year to 5 years
21 Over 5 years to 10 years
22 Over 10 years
7,901
9
507
1,388
3,676
1,511
810
7,892
56
451
1,388
3,676
1,511
810
7,892
73
434
1,388
3,676
1,511
810
7,886
17
494
1,369
3,685
1,511
810
7,507
16
507
1,188
3,475
1,511
810
7,899
135
438
1,292
3,686
1,488
860
8,029
217
482
1,286
3,723
1,511
810
7,507
16
507
1,188
3,475
1,511
810
1
Holdings under repurchase agreements are classified as maturing
within 15 days in accordance with maximum maturity of the agreements.
1.20
BANK DEBITS A N D DEPOSIT TURNOVER
Debits are shown in billions of dollars, turnover as ratio of debits to deposit. Monthly data are at annual rates.
Bank group, or type
of customer
1975
1976
1978
1977
Aug. r
Sept.'
Debits to demand deposits
1 All commercial banks
2 Major New York City banks. .
3 Other banks
25,028.5
9,670.7
15,357.8
29,180.4
11,467.2
17,713.2
34,322.8
13,860.6
20,462.2
42,819.1
16.435.0
26.384.1
3
174.0
21.7
152.3
434.6
58.5
376.1
Nov. r
Dec.
(seasonally adjusted)
41,896.6
15,500.0
26,396.6
Debits to savings deposits
4 All customers
5 Business 1
6 Others
2
Oct.r
42,942.5
15,437.8
27,504.7
42.941.5
15.673.6
27,267.9
42,307.5
15.100.2
27.207.3
446.0
66.8
379.1
438.0
61.4
376.6
145.1
559.8
101.8
141.6
535.9
100.5
2.0
5.8
1.8
2.0
5.4
1.8
(not seasonally adjusted)
424.4
62.0
362.4
467.6
67.2
400.4
Demand deposit turnover 2 (seasonally adjusted)
7 All commercial banks
8 Major New York City banks..
9 Other banks
105.3
356.9
72.9
116.8
411.6
79.8
129.2
503.0
85.9
146.5
577.6
100.0
Savings deposit turnover
10 All customers
11 Business 1
12 Others
1
Represents corporations and other profit-seeking organizations (excluding commercial banks but including savings and loan associations,
mutual savings banks, credit unions, the Export-Import Bank, and
federally
sponsored lending agencies).
2
Represents accounts of individuals, partnerships, and corporations,
and of states and political subdivisions.
3 Excludes negotiable order of withdrawal (NOW) accounts and
special club accounts, such as Christmas and vacation clubs.
1.6
4.1
1.5
2.0
5.2
1.8
141.9
549.6
98.8
3
144.1
530.1
102.3
(not seasonally adjusted)
1.9
5.4
1.7
2.1
5.8
1.9
NOTE. Historical data—estimated for the period 1970 through June
1977, partly on the basis of the debits series for 233 SMS As, which were
available through June 1977—are available from Publications Services,
Division of Administrative Services, Board of Governors of the Federal
Reserve System, Washington, D.D. 20551. Debits and turnover data
for savings deposits are not available prior to July 1977.
A14
1.21
DomesticNonfinancialStatistics • February 1979
MONEY STOCK MEASURES A N D COMPONENTS
Billions of dollars, averages of daily figures
Item
1975
Dec. r
1976
Dec. r
1977
Dec. r
1978
Dec.
1978
July'
Aug. r
Sept. r
Oct. r
Nov. r
Dec.
361.1
589.4
866.2
1,474.7
954.8
1,563.2
361.6
589.8
870.9
1,485.6
959.6
1,574.2
361.0
587.4
874.3
1,493.9
969.7
1,589.3
361.5
586.7
876.3
1,500.9
973.0
1,597.5
Seasonally adjusted
MEASURES i
1
2
3
4
5
6
M-l
M-l +
M-2
M-3
M-4
M-5
295.4
456.8
664.8
1,092.4
745.8
1,173.5
313.8
517.2
740.6
1,235.6
803.0
1,298.0
338.7
560.6
809.4
1,374.3
883.1
1,448.0
361.5
586.7
876.3
1,500.9
973.0
1,597.5
354.5
580.0
848.7
1,444.6
936.7
1,532.6
357.0
583.5
856.9
1,458.4
944.5
1,546.0
COMPONENTS
7 Currency
Commercial bank deposits:
8
Demand
9
Time and savings
10
Savings
11
Negotiable CDs 2
12
Other time
73.8
80.8
88.6
97.5
93.2
93.9
95.2
95.8
96.6
97.5
221.7
450.3
160.7
81.0
208.6
233.0
489.2
202.1
62.4
224.7
250.1
544.4
219.7
73.7
251.0
264.1
611.4
220.0
96.6
292.8
261.3
582.2
222.8
88.0
271.4
263.0
587.5
223.7
87.6
276.2
265.9
593.7
225.5
88.5
279.6
265.8
597.9
225.2
88.6
284.1
264.4
608.7
223.4
95.4
289.9
264.1
611.4
220.0
96.6
292.8
13 Nonbank thrift institutions3
All .1
495.0
544.4
611.4
582.2
587.5
593.7
597.9
608.7
611.4
359.0
585.4
861.7
1,469.2
952.0
1,559.5
361.4
587.9
868.2
1,481.6
959.0
1,572.5
363.0
587.6
871.6
1,487.9
968.0
1,584.3
371.6
594.7
882.0
1,503.6
981.6
1,603.1
Not seasonally adjusted
MEASURES 1
14
15
16
17
18
19
303.9
463.6
670.0
1,095.0
753.5
1,178.4
M-l
M-l +
M-2
M-3
M-4
M-5
322.6
524.2
745.8
1,238.3
810.0
1,302.6
348.2
568.0
814.9
1,377.2
890.8
1,453.2
371.6
594.7
882.0
1,503.6
981.6
1,603.1
356.3
583.7
851.4
1,450.2
938.8
1,537.6
354.4
580.9
853.8
1,455.5
941.8
1,543.5
COMPONENTS
20 Currency
Commercial bank deposits:
21
Demand
22
Member
23
Domestic nonmember
24
Time and savings
25
Savings
26
Negotiable CDs 2
27
Other time
28 Other checkable deposits4 3
29 Nonbank thrift institutions
30 U.S. government deposits (all commerical banks)
1
69.0
75.1
82.1
90.1
93.9
94.2
94.9
95.6
97.2
99.1
222.2
159.7
58.5
416.7
134.5
90.5
207.1
228.8
162.8
62.6
449.6
159.1
83.5
222.9
240.5
169.4
67.5
487.4
200.2
64.3
249.0
258.1
177.5
76.2
542.6
111 .1
75.9
290.5
262.4
177.9
80.5
582.4
224.7
87.3
270.5
260.2
176.2
80.1
587.5
223.7
88.0
275.7
264.1
178.3
81.9
593.1
223.6
90.3
279.2
265.8
179.3
82.7
597.6
223.5
90.8
283.3
265.7
178.3
83.7
605.0
221.5
96.4
287.1
272.5
182.9
85.6
609.9
219.9
99.5
290.5
0.4
366.3
0.7
424.9
1.4
492.5
2.1
562.3
2.7
598.8
2.8
601.7
2.8
607.5
2.9
613.4
3.1
616.3
3.2
621.6
4.9
4.1
4.4
5.1
4.5
3.6
6.2
4.3
8.0
10.2
Composition of the money stock measures is as follows :
M-l: Averages of daily figures for (1) demand deposits at commercial
banks other than domestic interbank and U.S. government, less cash items
in process of collection and Federal Reserve float; (2) foreign demand
balances at Federal Reserve Banks; and (3) currency outside the Treasury,
Federal Reserve Banks, and vaults of commercial banks.
M-l + : M-l plus savings deposits at commercial banks, NOW accounts
at banks and thrift institutions, credit union share draft accounts, and
demand deposits at mutual savings banks.
M2-: M-l plus savings deposits, time deposits open account, and time
certificates of deposit (CDs) other than negotiable CDs of $100,000 or
more at large weekly reporting banks.
M-3: M-2 plus the average of the beginning- and end-of-month deposits
of mutual savings banks, savings and loan shares, and credit union shares
(nonbank thrift).
M-4: M-2 plus large negotiable CDs.
M-5:
M-3 plus large negotiable CDs.
2
Negotiable time CDs issued in denominations of $100,000 or more
by 3large weekly reporting commercial banks.
Average of the beginning- and end-of-month figures for deposits of
mutual savings banks, for savings capital at savings and loan associations,
and4 for credit union shares.
Includes NOW accounts at thrift institutions, credit union share
draft accounts, and demand deposits at mutual savings banks.
NOTE. Latest monthly and weekly figures are available from the board's
508 (H.6) release. Back data are available from the Banking Section,
Division of Research and Statistics.
NOTES TO TABLE 1.23:
1
Adjusted to exclude domestic commercial interbank loans.
2
Loans sold are those sold outright to a bank's own foreign branches,
nonconsolidated nonbank affiliates of the bank, the bank's holding
company (if not a bank), and nonconsolidated nonbank subsidiaries of
the holding company. Prior to Aug. 28, 1974, the institutions included
had been defined somewhat differently, and the reporting panel of banks
was also different. On the new basis, both "Total loans" and "Commerical and industrial loans" were reduced by about $100 million.
3
Data beginning June 30, 1974, include one large mutual savings
bank that merged with a nonmember commercial bank. As of that date
there were increases of about $500 million in loans, $100 million in
"Other" securities and $600 million in "Total loans and investments."
As of Oct. 31, 1974, "Total loans and investments" of all commercial
banks were reduced by $1.5 billion in connection with the liquidation
of one large bank. Reductions in other items were: "Total loans," $1.0
billion (of which $0.6 billion was in "Commercial and industrial loans"),
and "Other securities," $0.5 billion. In late November "Commercial and
industrial loans" were increased by $0.1 billion as a result of loan reclassifications at another large bank.
4
Reclassification of loans reduced these loans by about $1.2 billion
as 5of Mar. 31, 1976.
Reclassification of loans at one large bank reduced these loans by
about $200 million as of Dec. 31, 1977.
NOTE. Data are for last Wednesday of month except for June 30 and
Dec. 31; data are partly or wholly estimated except when June 30 and
Dec. 31 are call dates.
Monetary Aggregates
1.22 AGGREGATE RESERVES A N D DEPOSITS
A15
Member Banks
Billions of dollars, averages of daily figures
1978
1975
Dec.
Item
1976
Dec.
1977
Dec.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Seasonally adjusted
1 Reserves1
2
Nonborrowed
3 Required
4 Deposits subject to reserve requirements2
5 Time and savings
Demand:
6
Private
7
U.S. Government
34.67
34.54
34.40
504.2
336.8
34.89
34.84
34.61
528.6
354.1
36.10
35.53
35.91
568.6
386.7
37.27
36.06
37.05
591.5
405.1
37.63
36.53
37.45
595.8
407.4
38.11
36.80
37.92
600.5
410.8
37.93
36.79
37.77
602.7
413.0
38.21
37.15
38.02
607.0
416.8
38.38
37.10
38.22
608.9
418.3
39.75
39.05
39.53
616.9
427.5
41.27
40.40
41.04
616.7
429.4
164.5
2.9
171.5
3.0
178.5
3.5
183.6
2.7
184.6
3.8
186.1
3.6
186.5
3.3
186.2
4.0
187.2
3.5
187.0
2.3
185.1
2.3
Not seasonally adjusted
2
8 Deposits subject to reserve requirements
9
Time and savings
Demand:
10 Private
11
U.S. Government
510.9
337.2
534.8
353.6
575.3
386.4
588.3
406.1
596.8
408.6
600.6
411.1
599.2
412.8
605.9
416.6
608.4
418.5
r
615.1
425.2
624.0
429.6
170.7
3.1
177.9
3.3
185.1
3.8
179.3
2.9
183.7
4.5
186.4
3.2
183.9
2.5
184.7
4.6
186.9
3.0
r
188.0
2.0
191.9
2.5
1
Series reflects actual reserve requirement percentages with no adjustment to eliminate the effect of changes in Regulations D and M. There
are breaks in series because of changes in reserve requirements effective
Dec. 12, 1974; Feb. 13, May 22, and Oct. 30, 1975; Jan. 8 and Dec. 30,
1976. In addition, effective Jan. 1, 1976, statewide branching in New York
was instituted. The subsequent merger of a number of banks raised
required reserves because of higher reserve requirements on aggregate
deposits at these banks.
1.23
LOANS A N D INVESTMENTS
2
Includes total time and savings deposits and net demand deposits as
defined by Regulation D. Private demand deposits include all demand
deposits except those due to the U.S. govt., less cash items in process of
collection and demand balances due from domestic commercial banks.
NOTE. Back data and estimates of the impact qn required reserves
and changes in reserve requirements are shown in Table 14 of the Board's
Annual Statistical Digest, 1971-1975.
All Commercial Banks
Billions of dollars; last Wednesday of month except for June 30 and Dec. 31
1974
Dec. 313
Category
1978
1975
Dec. 31
1976
Dec. 31
1977
Dec. 31
July 26*
Aug. 30* Sept. 27*
Oct. 25* Nov. 29 * Dec. 31*
Seasonally adjusted
1 Loans and investments1
2
Including loans sold outright 2 . . . .
691.1
695.9
721.8
726.2
785.1
788.9
870.6
875.5
940.7
945.3
944.6
949.3
952.4
957.0
960.9
964.8
966.5
970.2
967.3
971.1
3
4
5
6
Loans:
Total
Including loans sold outright 2 ...
Commercial and industrial
Including loans sold outright 2 ...
500.2
505.0
183.5
186.2
496.9
501.3
176.2
178.7
538.9
542.7
4179.7
4182.1
617.0
621.9
5201.4
5204.2
675.1
679.7
220.8
223.1
680.2
684.9
222.8
225.2
687.3
691.9
224.6
226.9
696.8
700.7
227.0
228.9
706.8
710.5
228.9
230.8
709.0
712.8
228.9
230.7
7
8
Investments:
U.S. Treasury
Other
51.1
139.8
80.1
144.8
98.0
148.2
95.6
158.0
100.6
165.0
97.9
166.5
97.2
167.9
95.2
168.9
90.3
169.4
88.4
169.9
Not seasonally adjusted
1
9 Loans and investments
10 Including loans sold outright2
705.6
710.4
737.0
741.4
801.6
805.4
888.9
893.8
936.6
941.2
942.0
946.7
951.4
956.1
958.4
962.3
969.3
973.0
987.6
991.4
11
12
13
14
Loans:
Total i
Including loans sold outright 2 ...
Commercial and industrial
Including loans sold outright 2 ...
510.7
515.5
186.8
189.5
507.4
511.8
179.3
181.8
550.2
554.0
4182.9
4185.3
629.9
634.8
5205.0
5207.8
675.6
680.2
220.9
232.2
681.0
685.7
221.7
224.1
688.6
693.3
223.9
226.2
696.6
700.5
226.5
228.4
707.2
710.9
228.9
230.8
723.9
727.7
233.0
234.8
15
16
Investments:
U.S. Treasury
Other
54.5
140.5
84.1
145.5
102.5
148.9
100.2
158.8
96.1
164.9
94.8
166.2
95.0
167.7
93.5
168.3
92.6
169.5
93.0
170.7
For notes see bottom of opposite page.
A16
1.24
DomesticNonfinancialStatistics • February 1979
COMMERCIAL BANK ASSETS A N D LIABILITIES
Last-Wednesday-of-Month Series
Billions of dollars except for number of banks
19783
1977
Account
Dec.
Mar.
Apr.
May
June
July*
Aug."
Sept.?
Oct.*
Nov."
Dec."
All commercial
1 Loans and investments
2
Loans, gross
Investments:
3
U.S. Treasury securities..
4
Other
939.1
680.1
939.7
680.4
953.0
688.7
974.4
712.4
985.0
722.1
980.6
719.6
985.5
724.5
996.4 1,003.0 1,016.2 1,034.7
733.6
741.2
754.1
770.9
100.2
158.8
99.0
160.3
100.2
164.1
97.3
164.6
97.9
165.1
96.1
164.9
94.8
166.2
95.0
167.7
93.5
168.3
92.6
169.5
92.6
171.2
5
6
7
8
9
168.7
13.9
29.3
59.0
66.4
130.5
14.4
30.2
42.6
43.3
133.1
14.3
27.6
43.6
47.6
161.0
14.5
30.3
51.9
64.3
166.8
12.0
29.6
56.0
69.3
130.2
14.8
23.6
44.4
47.3
137.4
15.2
29.7
43.0
49.5
141.8
15.2
32.6
44.4
49.6
146.5
15.1
34.6
45.0
51.7
149.2
16.7
32.6
46.5
53.5
170.1
17.2
37.7
51.6
63.6
Cash assets
Currency and coin
Reserves with F.R. Banks...
Balances with banks
Cash items in process of collection..
10 Total assets/total
capital1
liabilities
and
1,166.0 1,140.5 1,156.9 1,206.5 1,215.0 1,179.2 1,192.9 1,209.5 1,220.4 1,240.8 1,284.0
11 Deposits
939.4
899.8
915.5
952.9
965.7
932.3
937.7
949.9
952.3
959.0
993.1
12
13
14
Interbank
U.S. government
Other.
51.7
7.3
323.9
37.6
4.9
281.2
39.0
6.2
293.8
51.2
3.3
312.9
49.3
8.0
317.5
40.5
4.3
296.3
40.4
2.8
298.6
41.9
297.1
43.3
7.6
299.2
42.9
2.1
304.7
51.1
2.3
327.1
15
16
Interbank
Other
9.8
546.6
9.0
567.1
9.0
567.5
9.4
576.1
10.2
580.8
10.3
580.9
10.7
585.2
11.6
588.3
11.1
591.2
11.8
597.6
12.4
600.3
17 Borrowings
18 Total capital accounts2
96.2
85.8
105.6
83.4
104.9
83.7
112.2
84.6
106.8
89.9
103.2
85.8
109.1
86.2
112.8
87.1
118.3
87.1
125.6
87.8
133.0
87.3
14,707
14,689
14,697
14,702
14,698
14,713
14,721
14,715
14,713
14,719
14,719
19 MEMO: Number of banks
11.0
Member
20 Loans and investments
21
Loans, gross
Investments:
22
U.S. Treasury securities...
23
Other
675.5
494.9
668.6
490.5
676.8
495.3
693.8
514.3
699.7
519.6
695.8
517.6
698.9
520.3
706.9
527.0
713.4
533.9
724.3
544.6
739.5
558.3
70.4
110.1
68.2
109.9
68.8
112.7
66.9
112.7
67.4
112.7
65.7
112.5
65.3
113.3
65.4
114.5
64.1
115.3
63.5
116.2
63.6
117.6
24
25
26
27
28
Cash assets, total
Currency and coin
Reserves with F.R. Banks. . .
Balances with banks
Cash items in process of collection..
134.4
10.4
29.3
30.8
63.9
104.8
10.6
30.2
22.9
41.2
106.5
10.5
27.6
22.7
45.7
130.7
10.6
30.3
28.1
61.7
133.8
8.7
29.6
29.1
66.5
104.2
10.8
23.6
24.3
45.4
111.2
11.1
29.7
22.9
47.6
115.4
11.1
32.6
24.0
47.7
118.6
11.1
34.6
23.2
49.7
121.3
12.3
32.6
25.1
51.4
140.2
12.7
37.7
28.6
61.2
29
Total assets/total
capital 1
861.8
833.2
843.3
884.7
888.7
857.3
868.5
882.2
891.2
908.5
945.2
683.5
645.1
655.1
686.7
694.3
666.1
670.6
679.6
682.5
688.6
716.3
48.0
5.4
239.4
34.7
3.7
205.1
36.0
4.5
213.4
47.5
2.2
229.1
45.5
5.6
231.6
37.3
3.1
214.6
37.2
1.9
217.0
38.6
8.1
215.6
39.9
5.7
217.0
39.5
1.5
221.3
47.3
1.6
237.9
7.8
382.9
7.0
394.7
6.9
394.3
7.3
400.5
8.1
403.4
8.2
402.9
8.6
405.9
9.4
407.8
9.0
411.0
9.7
416.7
10.2
419.3
84.9
63.7
91.8
62.4
91.1
62.7
96.9
63.3
92.1
66.1
88.0
64.2
93.9
64.5
97.2
65.1
101.4
65.2
108.1
65.7
115.9
65.5
5,669
5,654
5,645
5,638
5,622
5,613
5,610
5,593
5,585
5,586
5,586
liabilities
30 Deposits
Demand:
31
32
U.S. government
33
Other
Time:
34
Interbank
35
Other
36
37
Borrowings
Total capital accounts2
38
MEMO: Number of banks
1
and
Includes items not shown separately.
Effective Mar. 31, 1976, some of the item "reserve for loan losses"
and all of the item "unearned income on loans" are no longer reported
as liabilities. As of that date the "valuation" portion of "reserve for
loan losses" and the "unearned income on loans" have been netted
against "other assets," and against "total assets" as well.
Total liabilities continue to include the deferred income tax portion of
"reserve
for loan losses."
2
Effective Mar. 31, 1976, includes "reserves for securities" and the
contingency
portion (which is small) of "reserve for loan losses."
3
Figures partly estimated except on call dates.
NOTE. Figures include all bank-premises subsidiaries and other significant majority-owned domestic subsidiaries.
Commercial banks: All such banks in the United States, including
member and nonmember banks, stock savings banks, nondeposit trust
companies, and U.S. branches of foreign banks.
Member banks: The following numbers of noninsured trust companies
that are members of the Federal Reserve System are excluded from member banks in tables 1.24 and 1.25 and are included with noninsured banks
in table 1.25: 1976—December, 11; 1978—January, 12.
Commercial Banks
1.25
COMMERCIAL BANK ASSETS A N D LIABILITIES
All
Call-Date Series
Millions of dollars, except for number of banks
Account
1977
1976
June 30
Dec. 31
Dec. 31
1978
1976
June 30
Dec. 31
Total insured
1
Loans:
Gross
Net
Investments:
U.S. Treasury securities
Other
2
3
4
5
6
7 Total assets/total liabilities1
1977
June 30
1978
Dec. 31
June 30
National (all insured)
827,696
854,733
914,779
956,431
476,610
488,240
523,000
542,218
578,734
560,077
601,122
581,143
657,509
636,318
695,443
672,207
340,691
329,971
351,311
339,955
384,722
372,702
403,812
390,630
101,461
147,500
129,562
100,568
153,042
130,726
99,333
157,936
159,264
97,001
163,986
157,393
55,727
80,191
76,072
53,345
83,583
74,641
52,244
86,033
92,050
50,519
87,886
90,728
583,304
599,743
651,360
671,166
825,003
847,372
922,657
945,874
469,377
476,381
520,167
526,932
3,022
44,064
285,200
2,817
44,965
284,544
7,310
49,843
319,873
7,956
47,203
312,707
1,676
23,149
163,346
1,632
22,876
161,358
4,172
25,646
181,821
4,483
22,416
176,025
8,248
484,467
7,721
507,324
8,731
536,899
8,987
569,020
4,907
276,296
4,599
285,915
5,730
302,795
5,791
318,215
14 Borrowings
15 Total capital accounts
75,291
72,061
81,137
75,502
89,339
79,082
98,351
83,074
54,421
41,319
57,283
43,142
63,218
44,994
68,948
47,019
16 MEMO: Number of banks
14,397
14,425
14,397
14,381
4,735
4,701
4,654
4,616
8 Deposits
Demand:
9
U.S. government
10
Interbank
11
Other
Time:
12
Interbank
13
Other
1,003,970 1,040,945 1,129,712 1,172,772
State member (all insured)
Insured nonmember
17 Loans and investments, gross
Loans:
18
Gross
19
Net
Investments:
20
U.S. Treasury securities
21
Other
22 Cash assets
144,000
144,597
152,514
157,464
207,085
221,896
239,265
256,749
102,277
99,474
102,117
99,173
110,243
107,205
115,736
112,470
135,766
130,630
147,694
142,015
162,543
156,411
175,894
169,106
18,849
22,874
32,859
19,296
23,183
35,918
18,179
24,091
42,305
16,886
24,841
43,057
26,884
44,434
20,631
27,926
46,275
20,166
28,909
47,812
24,908
29,595
51,259
23,606
23
189,579
195,452
210,442
217,384
231,086
245,748
267,910
284,221
24
149,491
152,472
163,436
167,403
206,134
218,519
239,053
251,539
429
19,295
52,204
371
20,568
52,570
1,241
22,346
57,605
1,158
23,117
55,550
917
1,619
69,648
813
1,520
70,615
1,896
1,849
80,445
2,315
1,669
81,131
2,384
75,178
2,134
76,827
2,026
80,216
2,275
85,301
956
132,993
988
144,581
973
153,887
920
165,502
17,310
13,199
19,697
13,441
21,736
14,182
23,167
14,670
3,559
17,542
4,155
18,919
4,384
19,905
6,235
21,384
1,023
1,019
1,014
1,005
8,639
8,705
8,729
8,760
Demand:
25
26
27
Interbank
Other
Time:
Interbank
Other
28
29
30 Borrowings
31
32 MEMO: Number of banks
Total nonmember
Noninsured nonmember
33
18,819
22,940
24,415
28,699
225,904
244,837
263,681
285,448
34
35
16,336
16,209
20,865
20,679
22,686
22,484
26,747
26,548
152,103
146,840
168,559
162,694
185,230
178,896
202,641
195,655
1,054
1,428
6,496
993
1,081
8,330
879
849
9,458
869
1,082
9,360
27,938
45,863
27,127
28,919
47,357
28,497
29,788
48,662
34,367
30,465
52,341
32,967
39 Total assets/total liabilities1
26,790
33,390
36,433
42,279
257,877
279,139
304,343
326,501
40
13,325
14,658
16,844
19,924
219,460
233,177
255,898
271,463
4
1,277
3,236
8
1,504
3,588
10
1,868
4,073
8
2,067
4,814
921
2,896
72,884
822
3,025
74,203
1,907
3,718
84,518
2,323
3,736
85,946
1,041
7,766
1,164
8,392
1,089
9,802
1,203
11,831
1,997
140,760
2,152
152,974
2,063
163,690
2,123
177,334
4,842
818
7,056
893
6,908
917
8,413
962
8,401
18,360
11,212
19,812
11,293
20,823
14,649
22,346
275
293
310
317
8,914
8,998
9,039
9,077
Loans:
Gross
Net
Investments:
36
U.S. Treasury securities
37
Other
38 Cash assets
Demand:
41
42
43
Other
Time:
44
45
Other
46
47 Total capital accounts
48 MEMO: Number of banks
1
Includes items not shown separately.
For Note see Table 1.24.
A18
1.26
DomesticNonfinancialStatistics • February 1979
COMMERCIAL BANK ASSETS A N D LIABILITIES
Detailed Balance Sheet, June 30, 1978
Millions of dollars, except for number of banks.
Member banks1
Asset account
1 Cash bank balances, items in process
2
Currency and coin
3
Reserves with Federal Reserve Banks
4
Demand balances with banks in United States
5
Other balances with banks in United States...
6
Balances with banks in foreign countries
7
Cash items in process of collection
8 Total securities held—Book value
9
U.S. Treasury
10 Other U.S. government agencies
11
States and political subdivisions
12
All other securities
13
Unclassified total
14
15
16
17
18
19
Trading-account securities
U.S. Treasury
Other U.S. government agencies
States and political subdivisions
All other trading account securities
Unclassified
20
21
22
23
24
Bank investment portfolios
U.S. Treasury
Other U.S. government agencies
States and political subdivisions
All other portfolio securities
25 Federal Reserve stock and corporate stock
26 Federal funds sold and securities resale agreement.
27
Commercial banks
28
Brokers and dealers
29
Others
30 Other loans, gross
31
LESS: Unearned income on loans
32
Reserves for loan loss
33
Other loans, net
34
35
36
37
38
39
40
41
42
43
44
Other loans, gross, by category
Real estate loans
Construction and land development
Secured by farmland
Secured by residential properties
1- to 4-family residences
FHA-insured or VA-guaranteed
Conventional
Multifamily residences
FHA-insured
Conventional
Secured by other properties
Insured
All
commercial commercial
banks
banks
Large banks
Total
New York
City
City of
Chicago
Other
large2
All other
166,754
11,950
29,574
43,092
6,779
6,093
69,266
157,393
11,883
29,566
38,158
5,007
3,588
69,192
133,786
8,691
29,566
23,166
2,775
3,110
66,478
40,354
795
4,104
10,382
520
439
24,113
5,594
190
1,537
248
5
384
3,231
48,783
2,878
12,499
3,539
782
1,484
27,602
39,054
4,828
11,426
8,996
1,468
803
11,533
261,272
97,872
39,847
117,257
6,204
92
259,360
97,002
39,486
117,018
5,767
178,753
67,406
25,193
82,541
3,549
64
20,609
9,623
305
7,979
2,955
1,353
3,480
191
57,297
22,215
7,362
26,626
1,071
23
92,868
32,613
14,678
43,554
1,981
41
7,160
4,062
986
1,676
345
92
7,156
4,062
986
1,676
345
7,010
4,044
976
1,657
270
64
3,026
1,907
428
610
82
978
713
80
133
52
2,756
1,352
423
824
133
23
251
72
45
90
3
41
254,112
93,810
38,861
115,582
5,859
252,204
92,940
38,499
115,343
5,422
171,743
63,362
24,217
80,884
3,279
17,583
7,716
1,373
8,271
223
7,002
2,242
1,273
3,347
139
54,541
20,863
6,939
25,802
938
92,617
32,541
14,633
43,464
1,979
1,800
8,881
1,669
1,628
1,380
309
105
491
475
48,576
41,068
4,962
2,546
43,768
36,621
4,954
2,193
34,495
27,517
4,847
2,131
,309
,321
,514
474
1,616
1,300
235
80
17,935
13,9Q6
2,528
1,411
10,636
9,899
569
167
673,615
16,142
7,293
650,180
651,675
7,150
628,439
485,054
10,768
5,680
468,606
76,423
620
1,297
74,506
25,479
104
325
25 049
184,099
3,521
2,155
178,424
199,053
6,524
1,902
190,628
192,877
23,658
131,891
17,684
3,565
76,832
72,964
6,430
66,534
3,869
327
3,541
33,810
9,629
2,391
23
4,891
4,209
519
3,690
683
2,678
630
110,293
104,952
7,496
97,457
5,341
399
4,941
50,719
192,609
23,639
8,189
110,113
104,793
7,423
97,370
5,320
395
4,926
50,667
49,324
8,586
405
28.984
27,608
3,395
24,213
1,376
87
1,289
11,349
70,260
6,076
3,129
41,531
39,816
2,474
37,342
1,714
96
1,619
19,523
11,483
2,114
702
2,931
240
5,496
6,567
403
14.985
4,369
1,307
2,648
775
5,886
2,706
1,896
3,630
67,555
2,873
654
265
596
245
1, 13
313
1,011
10,844
51,387
58,592
47,646
23,605
2,909
5,414
4,449
965
7,430
3,892
3,537
829
1,373
37,998
31,323
10,746
1,912
9,069
7,617
1,453
4,843
2,471
2,372
4,752
6,675
6,005
8,208
16,086
120
563
2,324
8
1,426
1,331
42
1,289
95
25
70
614
45
46
47
48
49
50
51
52
53
54
Loans to financial institutions
REITs and mortgage companies
Domestic commercial banks
Banks in foreign countries
Other depositary institutions
Other financial institutions
Loans to security brokers and dealers
Other loans to purchase or carry securities
Loans to farmers—except real estate
Commercial and industrial loans
44,426
8,348
5,263
12,864
1,480
16,471
11,716
4,425
27,018
221,591
35,472
8,341
3,116
6,610
1,458
15,948
11,340
4,337
26,993
210,907
33,355
7,949
2,398
6,447
1,312
15,249
11,043
3,604
14,813
170,678
55
56
57
58
59
60
61
62
63
64
65
66
67
Loans to individuals
Installment loans
Passenger automobiles
Residential repair and modernization
Credit cards and related plans
Charge-account credit cards
Check and revolving credit plans
Other retail consumer goods
Mobile homes
Other
Other installment loans
Single-payment loans to individuals
All other loans
153,582
124,139
55,757
7,956
20,136
16,185
3,951
18,752
9,387
9,365
21,539
29,443
17,979
153,458
124,066
55,740
7,955
20,125
16,184
3,941
18,747
9,387
9,360
21,498
29,392
16,559
105,611
85.515
35,523
5,203
17,766
14.516
3,249
12,722
6,553
6,169
14,301
20,096
14,059
5,041
994
305
2,214
1,424
791
395
171
225
1,132
1,646
2,906
961,697
933,196
683,234
99,732
34,749
254,146
294,607
6,303
22,318
3,146
16,489
38,347
6,302
22,191
3,109
15,293
35,288
5,918
16,454
3,069
14,788
31,300
1,106
2,390
1,546
7,399
12,779
98
793
1,045
7,056
1,089
1,241
3,669
6,215
1,240
5,908
12,456
392
4,824
1,215,052 1,172,773
888,551
165,307
43,748
332,417
347,080
68 Total loans and securities, net
69
70
71
72
73
Direct lease financing
Fixed assets—Buildings, furniture, real estate...
Investment in unconsolidated subsidiaries
Customer acceptances outstanding
Other assets
74 Total assets
161
38,588
6,686
4,015
812
123
272
53
2,755
1,457
294
178
13,149
2,334
1,505
179
77
1,068
1,027
41
54
19
35
128
182
8,288
10,946
3,774
101
Commercial Banks
1.26
A19
Continued
Member banks1
Liability or capital account
75 Demand deposits
76 Mutual savings banks
77 Other individuals, partnerships, and corporations
78 U.S. government
79 States and political subdivisions
80 Foreign governments, central banks, etc
81 Commercial banks in United States
82 Banks in foreign countries
83 Certified and officers' checks, etc
All
Insured
commercial commercial
banks
banks
Large banks
Total
New York
City
City of
Chicago
Other
large2
All other
Nonmember
banks1
374,758
1,626
367,867
1,425
282,751
1,217
65,198
588
10,932
100,994
291
105,627
337
92,006
409
279,829
7,964
18,210
1,840
38,924
8,721
17,643
278,459
7,956
18,138
1,351
37,963
7,815
14,760
206,399
5,641
12,421
1,317
36,639
7,679
11,440
33,292
584
830
1,084
18,730
6,007
4,083
7,802
187
184
25
2,147
225
361
78,702
2,043
3,564
170
11,503
1,249
3,473
86,603
2,828
7,842
37
4,260
198
3,522
73,430
2,323
5,789
524
2,285
1,042
6,204
84 Time deposits
85 Accumulated for personal loan payments
86 Mutual savings banks
87 Other individuals, partnerships, and corporations
88 U.S. government
89 States and political subdivisions
90 Foreign governments, central banks, etc
91 Commercial banks in United States
92 Banks in foreign countries
365,015
90
292
353,571
90
275
257,007
72
263
37,850
15,695
93,735
115
37
90
109,727
71
20
108,008
18
29
287,380
989
56,273
10,171
7,968
1,853
280,154
989
55,928
7,429
7,352
1,354
202,808
793
38,077
7,193
6,645
1,156
29,149
82
1,672
4,184
1,917
730
12,118
39
1,261
1,201
911
128
72,205
421
16,031
1,684
3,113
190
89,336
251
19,113
123
705
108
84,572
195
18,195
2,979
1,323
697
93 Savings deposits
94 Individuals and nonprofit organizations
95 Corporations and other profit organizations..
96 U.S. government
97 States and political subdivisions
98 Allother
226,026
210,453
10,807
62
4,501
204
224,436
209,067
10,787
62
4,486
35
154,577
144,198
7,431
53
2,863
31
10,945
10,150
504
2,758
2,612
137
55,474
51,865
3,091
16
494
9
85,401
79,572
3,699
36
2,087
7
71,449
66,255
3,376
9
1,638
172
99 Total deposits
965,799
945,875
694,335
113,992
29,385
250,204
300,755
271,464
93,179
46,947
13,356
32,876
13,586
1,738
17,125
33,773
88,903
43,727
13,289
31,887
9,448
1,733
15,925
22,062
83,003
41,154
12,325
29,524
9,112
1,425
15,419
19,126
20,103
7,773
3,199
9,132
3,398
233
8,014
5,911
8,989
5,904
1,897
1,188
179
28
1,095
1,106
40,575
21,697
5,686
13,192
4,243
698
5,916
8,051
13,336
5,780
1,543
6,013
1,292
465
394
4,057
10,176
5,793
1,030
3,352
4,473
313
1,705
14,647
1,125,200 1,083,946
302,779
100 Federal funds purchased and securities sold under
agreements to repurchase
101 Commercial banks
102 Brokers and dealers
103 Others
104 Other liabilities for borrowed money
105 Mortgage indebtedness
106 Bank acceptances outstanding
107 Other liabilities
108 Total liabilities
109 Subordinated notes and debentures
110 Equity capital
111 Preferred stock
112 Common stock
113 Surplus
114 Undivided profits
115 Other capital reserves
116 Total liabilities and equity capital
MEMO ITEMS:
117 Demand deposits adjusted2
Average for last 15 or 30 days:
118 Cash and due from bank
119 Federal funds sold and securities purchased
under agreements to resell
120 Total loans
121 Time deposits of $ 100,000 or more
122 Total deposits
123 Federal funds purchased and securities sold
under agreements to repurchase
124 Other liabilities for borrowed money
125 Standby letters of credit outstanding
126 Time deposits of $100,000 or more
127 Certificates of deposit
128 Other time deposits
129 Number of banks
*
9
822,421
151,651
40,782
309,688
320,299
5,816
5,753
4,440
1,004
80
2,061
1,296
1,376
84,037
88
17,790
32,386
31,949
1,824
83,074
81
17,691
31,874
31,684
1,744
61,690
33
12,743
22,906
24,803
1,205
12,652
2,885
2,645
4,451
5,334
132
570
1,404
859
52
20,668
2
3,997
8,063
8,238
368
25,485
31
5,531
8,898
10,372
652
22,347
55
5,047
9,480
7,146
619
1,215,052 1,172,773
888,551
165,307
43,748
332,417
347,080
326,501
258,603
252,756
173,993
21,771
5,368
59,847
87,007
84,610
151,066
142,173
121,518
35,452
5,619
44,611
35,836
29,548
53,196
647,386
181,510
941,481
47,463
628,167
174,479
923,749
36,121
468,342
143,050
675,725
5,530
74,085
31,979
106,594
1,901
24,972
12,833
28,441
16,558
178,557
61,496
243,663
12,132
190,728
36,742
297,026
17,075
179,043
38,459
265,756
95,273
13,002
90,853
8,533
85,358
8,027
21,859
3,433
9,825
171
40,469
3,437
13,205
986
9,915
4,975
18,948
183,339
155,925
27,414
17,750
177,602
151,931
25,671
16,686
145,695
123,685
22,001
9,406
32,476
28,200
4,277
1,269
13,253
11,450
1,803
4,796
62,711
52,439
10,271
1,215
37,245
31,595
5,650
2,262
37,653
32,240
5,413
14,698
14,381
5,621
12
9
153
5,447
9,077
1 Member banks exclude and nonmember banks include 13 noninsured
trust
companies that are members of the Federal Reserve System.
2
Demand deposits adjusted are demand deposits other than domestic
commercial interbank and U.S. government, less cash items reported
as in process of collection.
273
16
NOTE. Data include consolidated reports, including figures for all
bank-premises subsidiaries and other significant majority-owned domestic subsidiaries. Securities are reported on a gross basis before deductions of valuation reserves. Back data in lesser detail were shown in
previous BULLETINS.
A20
1.27
DomesticNonfinancialStatistics • February 1979
ALL LARGE WEEKLY REPORTING COMMERCIAL BANKS with Domestic Assets of £750 Million or More on
December 31, 1977, Assets and Liabilities
Millions of dollars, Wednesday figures
1978
Account
Dec. 6 e
1 Cash items in process of collection
2 Demand deposits due from banks in the United
States
3 All other cash and due from depositary
institutions
4 Total loans and securities
Securities
U.S. Treasury securities
Trading account
Investment account, by maturity
One year or less
Over one through five years
Over five years
Other securities
Trading account
Investment account
U.S. government agencies
. . ..
States and political subdivision, by maturity.
One year or less
Over one year
Other bonds, corporate stocks and
securities
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
Loans
Federal funds sold1
To commercial banks
To nonbank brokers and dealers in securities,
Toothers
Other loans, gross
Commercial and industrial. . . .
Bankers' acceptances and commercial
paper
All other
U.S. addresses
Non-U.S. addressees
Real estate
To individuals for personal expenditures. . . .
To financial institutions
Commercial banks in the U.S
Banks in foreign countries
Sales finance, personal finance companies,
etc
Other financial institutions
To nonbank brokers and dealers in securities
To others for
purchasing and carrying
securities2
To finance agricultural production
Allother
Less: Unearned income
Loan loss reserve
Other loans, net
Lease financing receivables
All other assets
Total assets
44,260
58
59
60
61
62
63
64
65
66
67
68
69
70
71
52,100
454,702
35,443
35,714
35,773
35,902
60,854
61,702
61,747
61,691
16,573
16,387
130,662
78,916
20,349
131,801
21,905
132,150
Jan. 3P
Jan. 10*'
54,830
44,287
46,233
15,112
14,445
14,145
13,122
33,854
458,040
30,336
453,052
36,357
450,897
33,453
447,922
35,533
3,112
32,421
8,805
19,503
4,114
63,564
2,420
61,144
11,909
46,037
7,706
38,332
35,102
3,272
31,830
8,361
19,370
4,099
63,914
2,658
61.256
11,897
46.257
7,772
38,486
35,778
3,989
31,789
8,283
19,304
4,203
63,669
2,562
61,107
11,656
46,399
7,708
38,692
35,710
4,209
31,501
8,173
19,160
4,168
63,697
2,283
61,414
11,928
46,485
7,645
38,839
3,198
3,102
3,052
3,001
27,380
19,454
5,510
2,416
341,526
133,896
25,775
16,789
5,979
3,006
338,262
132,057
24,076
15,814
6,025
2,237
337,401
132,060
22,608
16,621
4,276
1,712
335,972
131,795
4,351
129,545
123,477
3,628
128,432
122,428
6,004
81,191
58,941
3,504
128,291
122,147
6,143
81,490
59,278
Jan. 17»' Jan. 24P
39,735
79,505
79,835
80,664
58,663
3,442
128,614
122,672
5,942
81,061
58,689
3,498
9,662
3,110
9,018
3,309
8,978
3,065
8,510
6,068
2,805
8,851
2,633
9,053
3,029
9,451
3,297
9,976
8,223
15,006
8,129
15,179
8,602
15,163
8,818
8,112
15,234
15,969
8,445
8,237
15,926
8,516
7,919
15,802
7,725
7,893
15,433
7,659
2,129
4,421
2,149
4,416
2,173
4,445
2,172
4,511
600,047
605,144
615,785
630,331
2,202
4,584
15,828
5,618
4,345
331,562
4,803
66,188
632,828
2,232
4,574
14,842
5,645
4,356
328,262
4,886
66,938
613,945
2,279
4,535
14,662
5,678
4,348
327,374
5,074
65,588
618,295
2,302
4,465
14,081
5,708
4,356
325,907
5,119
63,845
603,197
180,086
644
129,449
4,437
939
27,943
7,030
1,969
7,523
255,031
76,490
71,192
188,345
676
131,530
4,818
192,637
698
135,620
4,854
964
33,213
182,347
128,858
4,737
1,632
31,054
6,785
1,035
7,387
259,444
77,866
72,320
184,556
754
133,133
5,024
1,054
1,713
7,156
255,109
76,494
71,270
203,164
1,004
144,472
5.291
978
34,122
7,711
1,646
7,941
258,104
77,869
72,394
6,651
1,234
7,888
259,224
77,446
72,068
169,066
671
122,167
4,969
1,107
25,299
6,728
1,481
6,643
260,066
76,968
71,561
4,367
814
42
178,615
140,973
22,545
474
7,276
4,530
903
41
180,234
141,967
23,131
484
7,528
4,536
962
48
181,578
142,452
23,396
488
7,769
4,427
907
44
181,777
142,528
23,610
495
7,781
4,450
914
42
183,098
143,524
23,898
485
7,772
7,347
7,125
73,380
7,473
75,773
7,363
76,819
7,418
74,569
2,552
142
6.292
8,217
316
2,910
8,497
1,532
3,811
7,388
432
5,736
8,610
41,933
591,234
42,684
571,970
43,593
576,924
43,418
561,896
41,594
41,975
41,371
41,301
Includes securities purchased under agreements to resell.
Other than financial institutions and brokers and dealers.
Includes securities sold under agreements to repurchase.
48,512
453,242
Residual (total assets minus total liabilities) .
1
2
3
45,198
444,042
4
72
Dec. 13* Dec. 20 e Dec. 27
445,536
Deposits
Demand deposits.
177,965
778
Mutual savings banks
Individuals, partnerships, and corporations. . 125,797
4,423
States and political subdivisions
1,015
U.S. government
30,316
Commercial banks in United States
6,390
Banks in foreign countries
1,321
Foreign governments and official institutions .
7,774
Certified and officers' checks
253,077
Time and savings deposits
76,762
Savings
71,420
Individuals and nonprofit organizations
Partnerships and corporations operated for
profit
4,485
Domestic governmental units
814
Allother
42
Time
176,315
Individuals, partnerships, and corporations.. 138,928
States and political subdivisions
22,447
U.S. government
524
6,828
Commercial banks in United States
Foreign governments, official institutions,
and banks
7,588
Federal funds purchased 3
76,556
Other liabilities for borrowed money
Borrowings from Federal Reserve Banks. .
184
Treasury tax-and-loan notes
All other liabilities for borrowed money. .. "9,906'
Other liabilities and subordinated note and
debentures
Total liabilities
45
46
47
48
49
50
51
52
53
54
55
56
57
1979
2,682
30,691
7,860
1,546
8,390
255,079
76,268
71,035
4,432
826
41
178,541
140,724
22,734
472
7,129
4,353
840
40
178,811
140,894
7,482
78,047
7,491
75,424
74
' 9,499
22,618
475
7,334
120
14,316
8,268
i6*022
860
28,818
4
This is not a measure of equity capital for use in capital adequacy
analysis or for other analytic uses.
Weekly Reporting Banks
1.28
A21
LARGE WEEKLY REPORTING COMMERCIAL BANKS with Domestic Assets of £1 Billion or More on
December 31, 1977 Assets and Liabilities
Millions of dollars, Wednesday figures
1979
Dec. 6 6
1 Cash items in process of collection
2 Demand deposits due from banks in the United
States
3 All other cash and due from depositary
institutions
4 Total loans and securities
Securities
5 U.S. Treasury securities
6
Trading account
Investment account, by maturity
One year or less
Over one through five years
Over five years
Other securities
Trading account
Investment account
U.S. government agencies
States and political subdivision, by maturity.
One year or less
Over one year
Other bonds, corporate stocks and
securities
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
42,170
Dec. 13e Dec. 20 e Dec. 27
43,087
415,143
423,848
425,750
32,911
33,179
33,260
33,377
55,554
56,366
56,402
56,324
14,654
18,405
20,347
124,268
125,362
125,575
66
67
68
69
70
71
72
Includes securities purchased under agreements to resell.
Other than financial institutions and brokers and dealers.
Includes securities sold under agreements to repurchase.
Jan. 17"
Jan. 24"
Jan. 31"
51,843
42,046
43,902
37,610
41,799
14,081
13,706
13,352
12,524
13,710
31,822
428,352
28,628
422,666
34,671
420,994
31,513
418,541
27,998
421,336
33,162
3,073
30,089
8,157
18,172
3,761
58,651
2,359
56,292
11,068
42,266
7,023
35,243
32,701
3,244
29,456
7,703
18,017
3,737
58,878
2,603
56,274
10,996
42,444
7,077
35,367
33,411
3,964
29,446
7,648
17,960
3,839
58,774
2,502
56,272
10,831
42,625
7,132
35,492
33,336
4,179
29,157
7,536
17,822
3,800
58,822
2,230
56,592
11,118
42,709
7,071
35,638
32,797
3,952
28,845
7,264
17,710
3,871
58,895
2,413
56,482
11,036
42,707
7,182
35,525
2,958
2,835
2,816
2,766
2,739
25,130
17,535
5,242
2,353
320,641
127,017
23,310
14,628
5,708
2,974
317,022
124,968
21,532
13,672
5,674
2,185
316,574
125,228
20,581
14,912
3,979
1,690
315,132
124,980
22,872
15,698
5,141
2,033
316,103
124,844
4,281
122,736
116,728
6,008
75,590
52,181
3,371
121,598
115,711
5,886
75,843
52,166
3,561
121,667
115,720
5,947
76,058
52,442
3,446
121,534
115,439
6,095
76,335
52,743
3,421
121,423
115,236
6,187
76,627
53,263
2,919
9,390
3,209
9,910
3,406
9,590
3,010
8,934
3,215
8,894
2,91 A
8,425
2,788
8,284
7,917
14,760
8,373
14,749
8,586
14,819
7,892
15,431
8,320
8,007
15,392
8,405
7,701
15,273
7,619
7,688
14,914
7,555
7,746
14,851
8,557
1,852
4,274
1,871
4,301
1,874
4,369
570,813
580,637
595,027
1,898
4,422
14,894
5,138
4,094
311,409
4,646
64,701
595,445
1,927
4,410
13,960
5,149
4,095
307,778
4,734
65,278
577,058
1,974
4,372
13,797
5,194
4,102
307,278
4,919
63,953
581,792
1,997
4,303
13,217
5,221
4,109
305,802
4,962
62,314
567,464
2,001
4,314
12,829
5,158
4,173
306,772
5,079
62,532
572,454
177,039
652
122,970
4,198
2,468
29,412
7,750
1,542
7,917
239,015
70,690
65,881
181,333
677
126,842
4,243
881
31,948
8,176
1,710
6,728
239,042
70,924
66,117
190,575
964
134,769
4,639
870
32,420
7,650
1,645
7,618
241,471
72,190
67,107
170,814
822
119,837
4,120
1,485
29,748
6,662
1,030
7,110
242,518
72,068
66,950
173,085
728
124,232
4,345
901
27,452
6,582
1,226
7,619
242,429
71,801
66,819
158,606
647
114,073
4,261
939
24,143
6,661
1,471
6,411
243,248
71,366
66,352
165,550
718
116,089
4,798
1,219
27,745
6,732
1,145
7,104
241,413
71,013
66,059
4,007
763
39
168,325
132,632
20,587
470
7,157
4,020
745
42
168,118
132,722
20,497
469
7,095
4,194
847
41
169,280
133,348
21,084
479
7,258
4,178
892
48
170,450
133,790
21,240
484
7,479
A,091
841
43
170,628
133,816
21,492
490
7,482
4,123
848
42
171,882
134,766
21,755
481
7,477
4,107
805
42
170,400
133,548
21,678
485
7,384
7,480
71,840
7,336
77,272
7,112
69,740
7,458
71,764
7,348
72,874
7,403
70,809
7,305
66,505
105
2,490
128
5,775
7,914
301
2,755
8,040
1,517
3,543
7,051
326
5,324
8,172
3,490
6,266
7,504
40,838
556,442
41,545
537,737
42,519
543,020
42,272
528,756
42,766
533,496
39,003
39,321
38,772
38,709
38,959
i 3 * 635 ''15*243'
Residual (total assets minus total liabilities)
1
2
3
Jan. 10"
2,556
8,991
Deposits
169,181
167,075
Demand deposits.
617
Mutual savings banks
744
Individuals, partnerships, and corporations.
117,445 120,997
3,870
States and political subdivisions
3,898
854
U.S. government
913
26,704
Commercial banks in United States
28,967
6,953
6,330
Banks in foreign countries
1,965
1,317
Foreign governments and official institutions ,
7,092
7,332
Certified and officers' checks
238,984
237,060
Time and savings deposits
70,898
71,141
Savings.
66,021
66,224
Individuals and nonprofit organizations
Partnerships and corporations operated for
4,138
4,081
profit
737
755
Domestic governmental units
42
41
All other
165,919 168,086
Time
Individuals, partnerships, and corporations.. 130,724 132,458
20,421
20,722
States and political subdivisions
519
467
U.S. government
6,678
6,968
Commercial banks in United States
Foreign governments, official institutions,
7,577
7,471
and banks
72,904
74,592
Federal funds purchased3
Other liabilities for borrowed money
42
162
Borrowings from Federal Reserve Banks.,
Treasury tax-and-loan notes
9,' i25
All other liabilities for borrowed money. .. "9,' 520'
Other liabilities and subordinated note and
debentures
Total liabilities
58
59
60
61
62
63
64
65
49,630
415,334
Loans
Federal funds sold1
To commercial banks
14,788
To nonbank brokers and dealers in securities.
To others
Other loans, gross
Commercial and industrial
124,348
Bankers' acceptances and commercial
paper
All other
U.S. addresses
Non-U.S. addressees
Real estate
To individuals for personal expenditures
To financial institutions
2,724
Commercial banks in the U.S
8,788
Banks in foreign countries
Sales finance, personal finance companies,
8,014
etc
14,590
Other financial institutions
To nonbank brokers and dealers in securities.
To others for
purchasing and carrying
1,831
securities2
4,282
To finance agricultural production
All other
Less: Unearned income
Loan loss reserve
Other loans, net
Lease financing receivables
All other assets
565,564
Total assets
45
46
47
48
49
50
51
52
53
54
55
56
57
46,269
Jan. 3p
4
This is not a measure of equity capital for use in capital adequacy
analysis or for other analytic uses.
A22
1.29
DomesticNonfinancialStatistics • February 1979
LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY
Assets and Liabilities
Millions of dollars, Wednesday figures
1978
Account
Dec. 6 e
1 Cash items in process of collection
2 Demand deposits due from banks in the United
States
3 All other cash and due from depositary
institutions
15,362
1979
Dec. 13 * Dec. 20« Dec. 27 e
15,430
16,872
17,747
Securities
2
5 U.S. Treasury securities
6
Trading account2
7
Investment account, by maturity
8
One year or less
9
Over one through five years
10
Over five years
11 Other securities2
12 Trading account2
13
Investment account
14
U.S. government agencies
15
States and political subdivision, by maturity.
16
One year or less
17
Over one year
18
Other bonds, corporate stocks and securities. .
Loans
19 Federal funds sold3
20
To commercial banks
21
To nonbank brokers and dealers in securities.
22
To others
23 Other loans, gross
24
Commercial and industrial
25
Bankers' acceptances and commercial
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
2,672
2,428
4,608
4,319
38,589
38,648
39,459
39,590
All other
U.S. addressees
Non-U.S. addressees
Real estate
9,986
To individuals for personal expenditures. .. .
To financial institutions
Commercial banks in the U.S
1,064
Banks in foreign countries
3,834
Sales finante, personal finance companies,
etc
3,002
Other financial institutions
4,466
To nonbank brokers and dealers in securities
To others for
purchasing and carrying
securities4
365
To finance agricultural production
192
All other
Less: Unearned income
Loan loss reserve
Other loans, net
Lease financing receivables
All other assets 5
Total assets
159,494
Deposits
Demand deposits
Mutual savings banks
Individuals, partnerships, and corporations...
States and political subdivisions
U.S. government
Commercial banks in United States
Banks in foreign countries
Foreign governments and official institutions.
Certified and officers' checks
Time and savings deposits
Savings
Individuals and nonprofit organizations
Partnerships and corporations operated for
profit
Domestic governmental units
All other
Time
Individuals, partnerships, and corporations.
States and political subdivisions
U.S. government
Commercial banks in U.S
Foreign governments, official institutions,
and banks
Federal funds purchased6
Other liabilities for borrowed money
Borrowings from Federal Reserve Banks
Treasury tax-and-loan notes
All other liabilities for borrowed money
Other liabilities and subordinated note and
debentures
Total liabilities
Jan. 10f
Jan. 17p
Jan. 24p
Jan. 31 p
17,369
16,675
15,990
13,594
15,975
7,679
8,515
8,040
7,894
8,627
9,222
98,468
6,883
95,885
10,048
95,087
8,558
94,899
7,620
96,429
6,485
1,119
4,653
712
6,306
958
4,653
696
6,183
837
4,606
739
5,892
750
4,419
723
5,844
650
4,447
748
11,267
1,376
9,220
1,832
7,388
671
11,196
1,376
9,180
1,783
7,397
641
11,243
1,375
9,215
1,817
7,398
652
11,290
1,426
9,215
1,750
7,465
648
11,258
1,405
9,205
1,732
7,473
648
4,886
3,444
1 ,035
406
77,828
39,336
4,643
2,962
1,041
640
75,719
38,000
4,288
2,782
981
525
75,363
37,876
5,105
3,912
988
204
74,605
37,643
6,419
4,779
1,281
358
74,912
37,404
1,980
37,356
35,061
2,294
10,178
7.294
1,295
36,705
34,416
2,289
10,210
7,294
1,380
36,496
34,285
2,212
10,217
7,265
1,199
36,444
34,257
2,187
10,245
7,262
964
36,440
34,091
2,349
10,293
7,274
10,022
10,057
10,121
948
3,966
1,102
4,316
1,356
4,760
1.295
4,327
1,094
4 008
1,224
3,903
1,158
3,546
1,010
3,497
2,913
4,538
3,117
4,592
3,326
4,530
3,127
4,427
4,635
3,174
4,455
4,529
3,034
4,452
4,055
2,938
4,407
4,281
3,017
4,404
4,823
366
193
368
201
369
195
162,046
165,982
170,412
366
192
2,650
662
1,336
75,830
490
32,141
165,370
364
193
2,399
649
1,331
73,739
489
32,941
161,388
401
194
2,739
657
1,333
73,373
497
32,103
161,764
403
190
2,532
660
1,333
72,612
489
32,427
157,861
411
200
2,579
639
1,364
72,908
492
32,026
161,169
54,709
420
28,400
442
101
16,201
4,575
1,068
3,502
50,578
9,331
8,695
55,123
326
29,256
395
131
14,638
5,060
1,726
3,591
50,872
9,343
8,701
60,048
353
30,112
455
676
17,143
5,897
1,258
4,153
51,004
9,288
8,664
61,379
376
30,700
463
104
19,050
6,364
1,444
2,876
50,772
9,310
8,690
60,277
584
33,192
430
139
15,838
5,490
1,366
3,238
50,808
9,414
8,761
56,648
516
28,753
403
305
18,244
4,705
786
2,936
51,224
9,556
8,890
55,770
418
30,029
464
194
15,380
4,712
962
3,611
51,349
9,537
8,890
52,242
373
28,512
426
279
13,712
4,767
1,181
2,992
51,913
9,516
8,846
56,103
427
29,397
518
224
16,645
4,924
770
3,197
50,996
9,486
8,842
460
160
16
41,246
31,703
2,051
52
2,829
454
170
18
41,528
31,947
2,014
55
2,925
440
168
16
41,716
32,084
1,981
52
3,080
444
162
14
41,461
31,980
1,941
52
3,022
461
182
11
41,394
31,915
1,862
48
3,139
460
189
16
41,668
31,860
1,908
42
3,287
449
185
12
41,812
32,041
1,890
40
3,329
450
209
11
42,397
32,432
1,899
40
3,402
438
196
9
41,510
31,741
1,817
35
3,375
4,612
20,105
4,587
22,550
4,519
20,009
4,466
20,888
4,430
19,805
4,570
19,344,
4,514
19,376
4,624
18,269
4,541
17,168
4,589
4,424
5,675
5,643
1,065
4,396
390
3,935
975
556
3,792
100
1,124
4,104
2,021
1,255
3,770
5,643
16,394
152,746
17,281
148,821
17,403
149,221
17,540
145,293
17,150
148,462
12,623
12,567
12,543
12,568
12,707
1,403
72 Residual (total assets minus total liabilities)7
1
Excludes trading account securities.
23 Not available due to confidentiality.
Includes securities purchased under agreements to resell.
4
Other than financial institutions and brokers and dealers.
Jan. 3f
5
6
7
Includes trading account securities.
Includes securities sold under agreements to repurchase.
This is not a measure of equity capital for use in capital adequacy
analysis or for other analytic uses.
Weekly
1.30
LARGE WEEKLY REPORTING COMMERCIAL BANKS
Reporting
Banks
A23
Balance Sheet Memoranda
Millions of dollars, Wednesday figures
1979
19781
Account
Dec. 6 e
Dec. 13 e Dec. 20 e
Dec. 27 e
Jan. 3p
Jan. 10^
Jan. 17*
Jan. 24p
Jan. 31p
Large weekly reporting banks with assets of $750 million or more
1 Total loans (gross) and investments
adjusted 2 .. 434,950
2
338,653
2 Total loans (gross) adjusted
3
102,374
3 Demand deposits adjusted
434,854
337,437
106,006
439,718
342,198
106,460
439,294
341,700
106,360
445,050
345,952
113,234
443,154
334,138
105,374
441,802
342,354
108,451
438,301
338,894
102,924
440,604
341,606
101,932
Time deposits in accounts of $100,000 or more
4 Total
5
Negotiable CDs
6
Other time deposits
131,153
95,326
35,827
133,325
97,142
36,183
133,503
97,200
36,303
133,198
96,948
36,250
131,247
96,584
34,664
131,650
96,826
34,824
131,817
96,466
35,351
133,518
97,739
35,778
131,837
96,140
35,698
3,679
1,796
1,884
3,694
1,823
1,871
3,706
1,884
1,822
3,697
1,786
1,911
3,734
1,917
1,817
3,641
2,554
1,088
3,545
2,447
1,097
3,609
2,501
1,108
3,568
2,487
1,080
Loans sold outright to affiliates4
7 Total
8
Commercial and industrial
9
Other
Large weekly reporting banks with assets of $1 billion or more
2
10 Total loans (gross) and investments adjusted .
11 Total loans (gross) adjusted 2
12 Demand deposits adjusted 3
406,927
318,461
95,025
407,070
317,525
98,536
411,682
322,020
98,890
411,295
321,594
98,874
416,643
324,830
105,442
414,272
322,694
97,536
413,403
321,218
100,831
409,985
317,826
95,914
412,182
320,489
94,786
Time deposits in accounts of $100,000 or more
13 Total
14
Negotiable CDs
15
Other time deposits
123,814
91,070
32,743
125,933
92,861
33,072
126,102
92,918
33,183
125,796
92,642
33,154
123,873
92,271
31,602
124,270
92,248
32,022
124,334
91,949
32,385
125,973
93,148
32,825
124,271
91,486
32,785
3,629
1,770
1,859
3,643
1,797
1,846
3,657
1,860
1,797
3,644
1,755
1,889
3,692
1,899
1,793
3,598
2,534
1,065
3,502
2,429
1,074
3,566
2,482
1,084
3,526
2,470
1,056
Loans sold outright to affiliates4
16 Total
17
Commercial and industrial
18
Other
Large weekly reporting banks in New York City
19 Total loans (gross) and investments
adjusted2- 5
2
20 Total loans (gross) adjusted
21 Demand deposits adjusted3
78,011
23,045
78,349
24,924
80,069
25,358
79,932
24,479
95,726
77,974
26,931
93,809
76,306
21,424
93,070
75,644
24,207
91,822
74,641
24,657
92,644
75,542
23,259
Time deposits in accounts of $100,000 or more
22 Total
23
Negotiable CDs
24
Other time deposits
36,296
29,214
7,082
36,545
29,463
7,082
36,714
29,632
7,082
36,470
29,394
7,076
36,237
29,137
7,100
36,645
29,489
7,156
36,815
29,596
7,220
37,314
30,113
7,201
36,422
29,139
7,282
1
Data revised to conform with new coverage basis for 1979. Data
shown only for items that are conceptually comparable with those for
1979.
2
Exclusive of loans and federal funds transactions with domestic commercial
banks.
3
All demand deposits except U.S. government and domestic banks
less cash items in process of collection.
4
Loans sold are those sold outright to a bank's own foreign branches,
nonconsolidated nonbank affiliates of the bank, the bank's holding company (if not a bank) and nonconsolidated nonbank subsidiaries of the
holding company.
5 Excludes trading account securities.
A24
DomesticNonfinancialStatistics • February 1979
1.31
LARGE WEEKLY REPORTING COMMERCIAL BANKS
Commercial and Industrial Loans
Millions of dollars
Outstanding
Industry classification
Net change during—
1978
Nov. 29
Dec. 6
Dec. 13
1978
Dec. 20
Dec. 27
Q3
1978
Q4
Oct.
Nov.
Dec.
2
Total loans classified
1 Total
2
3
4
5
6
7
8
9
10
11
114,541
114,799
114,549
115,578
115,773
1,354
4,323
1,863
1,228
1,232
Durable goods manufacturing:
Primary metals
Machinery
Transportation equipment
Other fabricated metal products...
Other durable goods
2,595
5,473
2,627
2,414
3,986
2,624
5,513
2,571
2,451
4,062
2,643
5,415
2,593
2,447
4,050
2,672
5,408
3,110
2,405
4,046
2,662
5,348
3,096
2,471
3,992
-66
-16
-52
69
136
-70
-40
349
-51
-53
-68
61
-159
-78
-79
-69
24
39
-30
20
67
-125
469
57
6
Nondurable goods manufacturing:
Food, liquor, and tobacco
Textiles, apparel, and leather
Petroleum refining
Chemicals and rubber
Other nondurable goods
4,550
3,976
2,552
3,232
2,440
4,642
3,999
2,569
3,275
2,424
4,628
3,930
2,570
3,357
2,405
4,613
3,833
2,660
3,453
2,400
4,681
3,756
2,634
3,465
2,380
-101
240
-116
-101
213
527
-627
113
-3
-100
186
-110
-47
-173
-47
210
-297
78
-63
7
131
-220
82
233
-60
10,622
10,594
10,607
10,629
10,585
172
8
17
28
-37
1,793
9,530
8,939
5,520
1,774
5,545
5,106
14,422
1,859
9,502
8,855
5,494
1,782
5,587
5,040
14,509
1,870
9,443
8,711
5,515
1,748
5,586
5,031
14,484
1,872
9,433
8,557
5,469
1,772
5,741
5,035
14,750
1,952
9,367
8,412
5,494
1,765
5,940
5,098
14,749
-323
232
-80
53
68
89
118
520
208
195
218
32
841
-73
790
61
279
636
34
-20
245
-16
219
-12
79
109
-8
61
201
-49
244
159
-163
-527
-26
-9
395
-8
327
8,458
3,542
8,449
3,591
8,473
3,543
8,392
3,766
8,537
3,809
282
-149
501
697
257
210
165
220
79
267
5,445
5,407
5,500
5,562
5,580
166
861
455
271
135
45
-8
-18
142,103
1,390
5,394
12 Mining, including crude petroleum
Trade:
13 Commodity dealers
14 Other wholesale
15 Retail
16 Transportation
18 Other public utilities
19 Construction
20 Services
21 All other domestic loans
22 Bankers acceptances
23 Foreign commercial and industrial
loans
MEMO ITEMS:
24 Commercial paper included in total
classified loansi.
...
25 Total commercial and industrial
loans of all large weekly reporting banks
62
140,658
140,655
140,557
141,829
1978
Aug. 30
Sept. 27
Oct. 25
-17
2,125
Dec. 27
Oct.
Q4
Q3
1,445
1978
1978
Nov. 29
1,824
Nov.
Dec.
3
"Term" loans classified
26 Total
52,618
53,019
53,762
54,861
55,481
1,726
2,463
743
1,099
620
27
28
29
30
31
Durable goods manufacturing:
Primary metals
Machinery
Transportation equipment
Other fabricated metal products..
Other durable goods
1,710
2,669
1,586
990
1,699
1,672
2,650
1,565
1,007
1,713
1,641
2,768
1,506
1,004
1,717
1,631
2,751
1,517
1,040
1,815
1,624
2,771
1,664
1,119
1,902
-34
74
145
13
35
-48
121
99
112
189
-31
118
-59
-3
4
-10
-17
11
36
98
-7
20
147
79
87
32
33
34
35
36
Nondurable goods manufacturing:
Food, liquor, and tobacco
Textiles, apparel, and leather
Petroleum refining
Chemicals and rubber
Other nondurable goods
1,740
1,133
1,882
2,322
1,156
1,727
1,126
1,846
2,301
1,177
1,862
1,096
1,789
2,109
1,192
1,978
1,046
1,843
2,043
1,218
1,918
1,050
1,895
2,181
1,183
56
4
-101
-111
86
191
-76
49
-120
6
135
-30
-57
-192
15
116
-50
54
-66
26
-60
4
52
138
-35
7,757
7,862
7,852
7,930
7,937
102
75
-10
78
7
248
2,276
2,827
3,732
1,057
3,860
2,245
6,606
2,616
250
2,360
2,791
3,753
1,076
3,847
2,224
6,797
2,713
268
2,329
3,065
3,718
1,065
3,960
2,264
6,936
2,798
305
2,372
3,225
3,746
1,131
4,064
2,295
7,113
2,857
313
2,342
3,204
3,790
1,158
4,221
2,373
7,270
2,908
22
185
-43
15
67
318
107
307
393
63
-18
413
37
82
374
149
473
196
18
-31
274
-35
-11
113
40
139
85
37
43
160
28
66
104
31
177
59
8
-30
-21
44
27
157
78
157
51
2,507
2,562
2,823
2,941
2,658
86
96
261
118
-283
37 Mining, including crude petroleum
and natural gas
Trade:
38 Commodity dealers
39 Other wholesale
40 Retail
41 Transportation
42 Communication
43 Other public utilities
44 Construction
45 Services
46 All other domestic loans
47 Foreign commercial and industrial
loans
1
2
Reported for the last Wednesday of each month.
Includes "term" loans, shown below.
3 Outstanding loans with an original maturity of more than 1 year and
all outstanding loans granted under a formal agreement—revolving credit
or standby—on which the original maturity of the commitment was in
excess of 1 year.
Deposits and Commercial Paper
1.32
A25
GROSS D E M A N D DEPOSITS of Individuals, Partnerships, and Corporations
Billions of dollars, estimated daily-average balances
At commercial banks
Type of holder
1 All
holders,
individuals,
partnerships,
and
2 Financial business
4 Consumer
6 Other
1974
Dec.
1975
Dec.
1976
Dec.
225.0
236.9
19.0
118.8
73.3
2.3
11.7
20.1
125.1
78.0
2.4
11.3
1978
1977
June
Sept.
Dec.
Mar.
June
Sept.
Dec.
250.1
253.8
252.7
274.4
262.5
271.2
278.8
294.6
22.3
130.2
82.6
2.7
12.4
25.9
129.2
84.1
2.5
12.2
23.7
128.5
86.2
2.5
11.8
25.0
142.9
91.0
2.5
12.9
24.5
131.5
91.8
2.4
12.3
25.7
137.7
92.9
2.4
12.4
25.9
142.5
95.0
2.5
13.1
27.8
152.7
97.4
2.7
14.1
At weekly reporting banks
7 All
holders,
individuals,
partnerships,
8 Financial business
9 Nonfinancial business
12 Other
and
1975
Dec.
1976
Dec.
1977
Dec.
124.4
128.5
15.6
69.9
29.9
2.3
6.6
17.5
69.7
31.7
2.6
7.1
NOTE. Figures include cash items in process of collection. Estimates of
gross deposits are based on reports supplied by a sample of commercial
1.33
1978
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
139.1
136.9
139.9
137.7
139.7
141.3
142.7
147.0
18.5
76.3
34.6
2.4
7.4
19.0
71.9
36.6
2.3
7.1
19.4
73.7
37.1
2.3
7.3
19.4
72.0
36.8
2.4
7.1
18.9
74.1
37.1
2.4
7.3
19.1
75.0
37.5
2.5
7.2
19.3
75.7
37.7
2.5
7.5
19.8
79.0
38.2
2.5
7.5
banks. Types of depositors in each category are described in the June 1971
BULLETIN, p. 466.
COMMERCIAL PAPER A N D BANKERS ACCEPTANCES OUTSTANDING
Millions of dollars, end of period
Instrument
1975
Dec.
1976
Dec.
1978
1977
Dec.
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Commercial paper (seasonally adjusted)
I
Financial companies: 1 2
Dealer-placed paper:
2
Total
4
5
Directly-placed paper:3
Total
Bank-related
48,459
53,025
65,209
74,536
74,900
73,960
76,988
77,152
80,504
83,817
6,202
1,762
7,250
1,900
8,871
2,132
10,327
2,442
10,617
2,633
10,868
2,935
11,470
2,622
10,921
2,868
11,455
3,231
12,280
3,521
31,374
6,892
32,500
5,959
40,496
7,102
47,315
9,585
46,594
10,030
45,510
9,634
47,791
10,383
48,030
10,925
50,010
11,478
51,625
12,314
10,883
13,275
15,842
16,894
17,689
17,582
17,727
18,201
19,039
19,912
32,145
33,700
Dollar acceptances (not seasonally adjusted)
7 Total
8
9
10
11
12
13
Held by:
Accepting banks
Own bills
Bills bought
Federal Reserve Banks:
Own account
Foreign correspondents
Others
Based on:
14 Imports into United States
15 Exports from United States
16 All other
18,727
22,523
r
28,289
27,579
28,319
27,952
30,579
7,333
5,899
1,435
10,442
8,769
1,673
10,434
8,915
1,519
7,502
6,520
983
7,244
6,345
899
7,048
6,131
917
7.647
6,461
1,186
8,379
7,012
1,366
1,126
293
991
375
954
362
625
568
633
556
557
9,975
10,715
13,904
20,160
19,766
20,638
19,748
21,644
4,992
4,818
12,713
r
6,378
r
7,578
6,906
13,805
7,415
6,565
13,599
7,885
6,558
13,876
7,957
6,350
13,644
8,575
6,665
15,339
3,726
4,001
11,000
r
1
Institutions engaged primarily in activities such as, but not limited to,
commercial, savings, and mortgage banking; sales, personal, and mortgage
financing; factoring, finance leasing, and other business lending; insurance
underwriting;
and other investment activities.
2
Includes all financial company paper sold by dealers in the open
market.
25,450
5,863
13,209
r
8,082
r
r
6,840
1,243
8,579
7,653
927
585
1
664
23,478
24,456
8,675
7,224
16,245
8,574
7,586
17,540
3
As reported by financial companies that place their paper directly
with
investors.
4
Includes public utilities and firms engaged primarily in activities such
as communications, construction, manufacturing, mining, wholesale and
retail trade, transportation, and services.
A26
1.34
DomesticNonfinancialStatistics • February 1979
PRIME RATE CHARGED BY BANKS on Short-term Business Loans
Per cent per annum
Effective date
Rate
1978—Jan. 10.
May
Effective date
9Vi
9V4
1978—Sept. 15
8%
8I/2
8%
5
26,
June 16
30
9
Aug. 31.
9Va
28
10
Id/4
Oct. 13
27
101/2
Nov. 1
\oy
n 4
l n/2
6
17
24
113/4
Dec. 26
1.35
Month
Rate
1977—Apr .
May.
June.
July.
Aug.:
Sept..
Oct...
Nov
Dec..
6.25
6.41
6.75
6.75
6.83
7.13
7.52
7.75
7.75
1978—Mar.
Apr.
May
June
July.
Aug.
Sept.
Oct..
Nov.
Dec.
1978—Jan
Feb
7.93
8.00
1979—Jan..
TERMS OF LENDING AT COMMERCIAL BANKS
Item
Month
Average
rate
Survey of Loans Made, November 6-11, 1978
Size of loan (in thousands of dollars)
All
sizes
25-49
1-24
50-99
100-499
1,000
and over
500-999
Short-term commercial and industrial loans
1
2
3
4
Amount of loans (thousands of dollars)
Number of loans
Weighted-average maturity (months)
Weighted-average interest rate (percent per
annum)
5 Interquartile range1
Percent of amount of loans:
6 With floating rate
7
Made under commitment
9,533,752
143,729
3.0
735,419
105,705
2.9
493,312
15,165
2.7
595,003
9,331
2.7
1,867,088
11,360
3.1
680,499
1,105
3.4
5,162,431
1,063
3.1
11.37
11.44
11.73
11.43
11.19
11.73
11.53
10.92-12.10 10.38-13.29 10.50-12.75 10.37-12.62 10.76-12.25 10.25-11.73 11.00-11.85
27. 1
17.3
64.4
36.2
26.4
20.7
69.3
70.0
81.2
121,987
172
42.1
544,208
155
49.6
11.93
11.58
11.00-12.88 10.75-12.68
11.09
10.00-12.13
50.1
42.8
35.0
31.8
34.1
Long-term commercial and industrial loans
8
9
10
11
Amount of loans (thousands of dollars)
Number of loans
Weighted-average maturity (months)
Weighted-average interest rate (percent per
annum)
12 Interquartile range1
Percentage of amount of loans:
13 With floating rate
14 Made under commitment
1,177,815
18,903
43.2
288,653
17,174
30.6
11.38
10.47-12.50
11.41
10.47-12.40
61.2
60.8
40.1
42.3
222,967
1,403
44.4
68.4
40.3
62.8
69.1
69.0
77.1
Construction and land development loans
15
16
17
18
19
20
21
22
23
24
25
Amount of loans (thousands of dollars)
Number of loans
Weighted-average maturity (months)
Weighted-average interest rate (percent per
annum)
Interquartile range1
Percentage of amount of loans:
With floating rate
Secured by real estate
Made under commitment
Type of construction: 1- to 4-family
Multifamily
Nonresidential
1,012,101
25,510
7.7
11.55
10.50-12.50
403,138
1,800
8.7
214,383
157
11.8
10.82
11.46
11.65
11.90
9.92-12.13 10.29-12.68 10.56-12.62 11.75-12.36
11.46
10.50-12.75
167,317
18,633
4.2
42.7
94.2
60.4
38.2
15.4
46.3
All
sizes
19.8
89.1
66.3
86.9
1.0
12.1
111,087
3,155
4.0
18.9
95.8
88.7
85.5
1.5
13.0
10-24
1-9
116,176
1,766
5.5
23.9
95.2
31.7
32.5
3.3
64.2
25-49
51.4
94.7
70.9
24.5
17.5
57.9
59.6
95.4
52.8
14.0
27.6
58.4
50-99
100-249
250
and over
Loans to farmers
26
27
28
29
30
31
32
33
34
35
Amount of loans (thousands of dollars)
Number of loans
Weighted-average maturity (months)
Weighted-average interest rate (percent per
annum)
Interquartile range1
By purpose of loan:
Feeder livestock
Other livestock
Other current operating expenses
Farm machinery and equipment
Other
949,031
58,275
7.4
134,907
36,846
7.5
186,760
12,625
8.9
169,744
5,009
8.0
156,770
2,386
6.4
10.36
9.50-10.80
9.94
9.20-10.47
9.98
9.20-10.50
9.91
9.24-10.38
10.25
9.73-10.50
10.23
10.80
10.27
10.29
10.72
9.74
9.81
9.87
10.12
10.34
9.82
10.03
9.83
10.51
"0.46
9.64
10.81
10.02
9.80
10.18
10.20
10.37
10.33
9.78
10.20
1
Interest rate range that covers the middle 50 percent of the total
dollar
amount of loans made.
2
Fewer than three sample loans.
171,536
1,198
8.0
129,314
211
4.7
10.66
11.69
9.99-11.57 10.47-12.69
10.15
11.40
11.03
10.76
10.96
11.74
12.33
11.42
( )
11.78
2
NOTE. For more detail, see the board's 416 (G.14) statistical release,
The past data have been revised and are available from Publications
Services, Division of Support Services, Board of Governors of the Federal
Reserve System, Washington, D.C. 20551.
Securities Markets
1.36
INTEREST RATES
All
Money and Capital Markets
Averages, per cent per annum
Instrument
1976
1977
1978
1978
Oct.
Dec.
Nov.
1979
1979, week ending—
Jan.
Jan. 6 Jan. 13 Jan. 20 Jan. 27 Feb. 3
Money market rates
1 Federal funds1
5.05
5.54
7.94
8.96
9.76
10.03
10.07
10.59
9.97
10.05
10.05
10.12
Prime commercial paper2-3
2 90- to 119-day
3 4- to 6-month
5.24
5.35
5.54
5.60
7.94
7.99
8.98
9.03
10.14
10.23
10.37
10.43
10.25
10.32
10.48
10.55
10.34
10.40
10.28
10.36
10.09
10.16
9.99
10.07
4 Finance company 3paper,
directly placed,
3- to 6-month - 4
5.22
5.49
7.78
8.78
9.82
10.06
10.10
10.24
10.19
10.15
9.98
9.86
5 Prime bankers acceptances, 90-day 3 - 5
5.19
5.59
8.11
9.32
10.53
10.55
10.29
10.65
10.41
10.29
10.11
9.92
Large negotiable certificates of6 deposit
6
3-month, secondary market
5.26
5.58
8.20
9.14
10.72
10.72
10.51
10.88
10.71
10.49
10.44
10.20
7 Eurodollar deposits, 3-month7
5.57
6.05
8.74
10.12
11.51
11.62
11.16
11.81
11.46
11.21
11.05
10.65
4.98
5.26
5.52
5.27
5.53
5.71
7.19
7.58
7.74
7.99
8.55
8.45
8.64
9.24
9.20
9.08
9.36
9.44
9.35
9.47
9.54
9.34
9.45
9.61
9.30
9.50
9.61
9.44
9.56
9.61
9.34
9.44
9.46
9.28
9.34
9.31
4.989
5.266
5.265
5.510
7.221
7.572
8.132
8.493
8.787
9.204
9.122
9.397
9.351
9.501
9.388
9.550
9.316
9.443
9.411
9.534
9.289
9.475
9.324
9.376
8
9
10
11
12
U.S. government
securities
Bills:3- 8
Market yields:
3-month
6-month
1-year
Rates on new issue: 9
3-month
6-month
Capital market rates
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
Government notes and bonds
U.S. Treasury
Constant maturities:10
1-year
2-year
3-year
5-year
7-year
10-year
20-year
30-year
Notes and bonds maturing in— 11
3 to 5 years
Over 10 years (long-term)
State and local: 12
Moody's series
Aaa
Baa
Bond Buyer series 13
Corporate bonds 14
Seasoned issues
All industries
By rating groups:
Aaa
Aa
A
Baa
Aaa utility bonds: 15
New issue
Recently offered issues
Dividend/price ratio
33
Preferred stocks
34
Common stocks
6.77
7.18
7.42
7.61
7.86
6.09
6.45
6.69
6.99
7.23
7.42
7.67
8.34
8.34
8.29
8.32
8.36
8.41
8.48
8.49
9.14
8.85
8.62
8.61
8.64
8.64
8.69
8.67
10.01
9.42
9.04
8.84
8.80
8.81
8.75
8.75
10.30
9.72
9.33
9.08
9.03
9.01
8.90
8.88
10.41
9.86
9.50
9.20
9.14
9.10
8.98
8.94
10.51
9.93
9.58
9.30
9.21
9.14
8.99
8.96
10.51
9.92
9.60
9.30
9.22
9.15
9.01
8.98
10.50
9.91
9.59
9.26
9.21
9.16
9.03
8.98
10.31
9.80
9.42
9.10
9.06
9.04
8.95
8.89
10.13
9.62
9.15
8.94
8.93
8.94
8.89
8.85
6.94
6.78
6.85
7.06
8.30
7."89
8.61
8.07
8.97
8.16
9.23
8.36
9.36
8.43
9.46
8.44
9.46
8.47
9.43
8.46
9.27
8.39
9.02
8.32
5.66
7.49
6.64
5.20
6.12
5.68
5.52
6.27
6.03
5.53
6.18
6.13
5.59
6.65
6.19
5.91
6.76
6.51
5.95
7.14
6.47
6.05
7.50
6.58
6.00
7.30
6.50
6.00
7.00
6.48
5.75
6.75
6.30
5.70
7.00
6.22
9.01
8.43
9.07
9.20
9.40
9.49
9.65
9.64
9.65
9.67
9.65
9.60
8.43
8.75
9.09
9.75
8.02
8.24
8.49
8.97
8.73
8.92
9.12
9.45
8.89
9.07
9.26
9.59
9.03
9.24
9.48
9.83
9.16
9.33
9.53
9.94
9.25
9.48
9.72
10.13
9.26
9.48
9.67
10.15
9.26
9.49
9.70
10.17
9.28
9.50
9.73
10.15
9.24
9.47
9.78
10.10
9.19
9.43
9.72
10.07
8.48
8.49
8.19
8.19
8.96
8.97
9.17
9.13
9.27
9.27
9.28
9.41
9.54
9.51
9.51
9.55
9.54
9.57
9.45
9.41
7.97
3.77
7.60
4.56
8.25
5.28
8.29
5.11
8.43
5.45
8.84
5.39
8.79
5.29
8.83
5.33
8.86
5.28
8.89
5.25
8.74
5.24
8.65
5.33
5.88
1
Weekly figures are 7-day averages of daily effective rates for the week
ending Wednesday; the daily effective rate is an average of the rates on
a given day weighted by the volume of transactions at these rates.
2
Beginning Nov. 1977, unweighted average of offering rates quoted
by five dealers. Previously, most representative rate quoted by those
dealers.
3
Yields are quoted on a bank-discount basis.
4
Averages of the most representative daily offering rates published by
finance
companies for varying maturities in this range.
5
Average of the midpoint of the range of daily dealer closing rates
offered
for
domestic issues.
6
Weekly figures (week ending Wednesday) are 7-day averages of the
daily midpoints as determined from the range of offering rates; monthly
figures are averages of total days in the month. Beginning Apr. 5, 1978,
weekly figures are simple averages of offering rates.
7
Averages of daily quotations for the week ending Wednesday.
8
Except for new bill issues, yields are computed from daily closing
bid prices.
9
Rates
10
are recorded in the week in which bills are issued.
Yields on the more actively traded issues adjusted to constant
maturities
by the U.S. Treasury, based on daily closing bid prices.
11
Unweighted averages for all outstanding notes and bonds in maturity
ranges shown, based on daily closing bid prices. "Long-term" includes
all bonds neither due nor callable in less than 10 years, including a number of very low yielding "flower" bonds.
12
General obligations only, based on figures for Thursday, from
Moody's
Investors Service.
13
Twenty
issues of mixed quality.
14
Averages
of daily figures from Moody's Investors Service.
15
Compilation of the Board of Governors of the Federal Reserve
System.
Issues included are long-term (20 years or more). New-issue yields
are based on quotations on date of offering; those on recently offered
issues (included only for first 4 weeks after termination of underwriter
price restrictions), on Friday close-of-business quotations.
A28
1.37
DomesticNonfinancialStatistics • February 1979
STOCK MARKET
Selected Statistics
1979
1978
Indicator
1976
1978
1977
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
53.69
58.72
42.49
38.09
55.73
55.76
61.31
43.69
38.79
57.59
Prices and trading (averages of daily figures)
Common stock prices
1 New York Stock Exchange (Dec. 31,1965 = 50).
4
Utility
54.45
60.44
39.57
36.97
52.94
53.76
58.30
43.25
39.23
56.74
53.67
57.84
41.07
40.91
55.23
54.61
59.35
44.74
39.28
57.97
58.53
64.07
49.45
40.20
63.28
58.58
64.23
50.19
39.82
63.22
56.40
61.60
46.70
39.44
60.42
52.74
57.50
41.80
37.88
54.95
6 Standard & Poor's Corporation (1941-43 = 10) i.. 102.01
98.18
96.11
97.19
103.92
103.86
100.58
94.71
96.10
99.70
7 American Stock Exchange (Aug. 31,1973 = 100). 101.63
116.18
144.56
149.87
162.52
170.95
160.14
144.17
149.94
159.26
20,936
2,514
28,591
3,922
27,074
3,496
37,603
5,526
33,612
5,740
31,020
4,544
24,505
3,304
24,622
3,430
27,988
3,150
8
9
Volume of trading (thousands of shares)2
New York Stock Exchange
American Stock Exchange
21,189
2,565
Customer financing (end-of-period balances, in millions of dollars)
10 Regulated margin credit at brokers/dealers3
11 Margin stock4
12 Convertible bonds
13 Subscription issues
8,166
7,960
204
2
9,993
9,740
250
3
11,438
11,190
247
11,984
11,740
243
1
12,626
12,400
225
1
12,307
12,090
216
11,209
11,000
209
11,035
10,830
205
1
MEMO: Free credit balances at brokers®
Margin-account
Cash-account
585
1,855
640
2,060
710
2,295
795
2,555
825
2,655
885
2,465
790
2,305
835
2,510
14
15
Margin-account debt at brokers (percentage distribution, end of period)
16 Total
17
18
19
20
21
22
By equity class (in percent):7
Under 40
40-49
50-59
60-69
70-79
80 or more
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
12.0
23.0
35.0
15.0
8.7
6.0
18.0
36.0
23.0
11.0
6.0
5.0
13.0
34.0
25.0
14.0
8.0
6.0
12.0
34.0
23.0
16.0
9.0
6.0
15.0
36.0
23.0
13.0
7.0
6.0
47.0
20.0
15.0
8.0
5.0
5.0
32.0
27.0
20.0
10.0
6.0
5.0
33.0
28.0
18.0
10.0
6.0
5.0
Special miscellaneous-account balances at brokers (end of period)
23 Total balances (millions of dollars) 8..
Distribution by equity status (percent)
24 Net credit status
Debit status, equity of—
25
60 percent or more
26
Less than 60 percent
8,776
9,910
41.3
43.4
47.8
10.9
44.9
11.7
Margin requirements (percent of market value)9
Effective date
27 Margin stocks
28 Convertible bonds
29 Short sales
Mar. 11, 1968
June 8, 1968
May 6, 1970
Dec. 6, 1971
Nov. 24, 1972
Jan. 3, 1974
70
50
70
80
60
80
65
50
65
55
50
55
65
50
65
50
50
50
1
Effective July 1976, includes a new financial group, banks and insurance companies. With this change the index includes 400 industrial
stocks (formerly 425), 20 transportation (formerly 15 rail), 40 public
utility
(formerly 60), and 40 financial.
2
Based on trading for a 5^-hour day.
3
Margin credit includes all credit extended to purchase or carry
stocks or related equity instruments and secured at least in part by stock.
Credit extended is end-of-month data for member firms of the New York
Stock Exchange.
In addition to assigning a current loan value to margin stock generally,
Regulations T and U permit special loan values for convertible bonds
and4 stock acquired through exercise of subscription rights.
A distribution of this total by equity class is shown on lines 23-28.
5 Nonmargin stocks are those not listed on a national securities exchange and not included on the Federal Reserve System's list of over-thecounter
margin stocks. At brokers, such stocks have no loan value.
6
Free credit balances are in accounts with no unfulfilled commitments
to the brokers and are subject to withdrawal by customers on demand.
7
Each customer's equity in his collateral (market value of collateral
less net debit balance) is expressed as a percentage of current collateral
values.
8
Balances that may be used by customers as the margin deposit required for additional purchases. Balances may arise as transfers based
on loan values of other collateral in the customer's margin account or
deposits
of cash (usually sales proceeds) occur.
9
Regulations G, T, and U of the Federal Reserve Board of Governors,
prescribed in accordance with the Securities Exchange Act or 1934,
limit the amount of credit to purchase and carry margin stocks that may
be extended on securities as collateral by prescribing a maximum loan
value, which is a specified percentage of the market value of the collateral
at the time the credit is extended. Margin requirements are the difference
between the market value (100 percent) and the maximum loan value. The
term "margin stocks" is defined in the corresponding regulation.
Regulation G and special margin requirements for bonds convertible
into stocks were adopted by the Board of Governors effective Mar. 11,
1968.
Thrift Institutions
1.38
SAVINGS INSTITUTIONS
A29
Selected Assets and Liabilities
Millions of dollars, end of period
1978
1975
1976
1977
Apr.
Account
May
June
July
Aug.
Sept.
Oct.
Nov. r
Dec.*
Savings and loan associations9
1 Assets
338,233 391,907 459,241 480,947 487,052 491,576 498,301 504,298 508,977 515,352 520,677 523,784
2 Mortgages
3 Cash and investment
securities1
4 Other
278,590 323,005 381,163 397,284 402,305 407,965 411,956 416,677 420,971 425,236 429,420 432,922
5 Liabilities and net worth
338,233 391,907 459,241 480,947 487,052 491,576 498,301 504,298 508,977 515,352 520,677 523,784
6 Savings capital
7 Borrowed money
8
FHLBB
9
Other
285,743 335,912 386,800 399,550 401,930 408,586 411,660 413,972 420,405 423,050 425,207 431,102
39,873
40,711
42,950
37,219
38,595
34,270
35,730
32,759
27,840
31,904
20,634
19,083
17,524 15,708 19,945 22,692 23,323 24,875 26,151 27,363 28,632 29,456 30,052 32,052
10,659 10,898
10,417
9,856
9,579
9,963
9,395
9,212
9,436
7,895
3,375
3,110
9,911
6,840
10,937 11,386 11,632 11,540 11,422 11,222 11,165 11,315 10,734
5,128
9,958
8,074
9,506 12,186 14,239 10,046 11,972 13,906 10,676 12,832 14,666
6,949
11 Other
30,853
28,790
35,724
33,178
39,150
38,928
41,853
41,810
42,444
42,303
41,505
42,106
43,627
42,718
44,188
43,433
43,987
44,019
45,577
44,539
45,869
45,388
44,964
45,898
12 Net worth 2
19,779
21,998
25,184
26,370
26,738
27,042
27,399
27,779
28,079
28,432
28,808
29,040
13 MEMO : Mortgage loan commitments outstanding 3..
10,673
14,826
19,875
23,398
23,939
22,927
22,393
22,047
21,648
21,503
20,738
18,734
Mutual savings banks 10
14 Assets
121,056 134,812 147,287 151,383 152,202 153,175 154,315 155,210 156,110 156,843 157,436
Loans:
77,221
Mortgage
4,023
Other
Securities:
4,740
U.S. government
1,545
State and local government.
27,992
Corporate and other 4
2,330
Cash
3,205
Other assets
n.a.
81,630
5,183
88,195
6,210
90,346
7,422
90,915
7,907
91,555
7,771
92,230
8,207
92,866
8,379
93,403
8,418
93,903
8,272
94,497
7,921
n.a.
n.a.
5,840
2,417
33,793
2,355
3,593
5,895
2,828
37,918
2,401
3,839
5,670
2,915
39,146
1,940
3,945
5,491
2,994
39,225
1,798
3,873
5,304
3,008
39,427
2,163
3,946
5,269
3,025
39,639
2,029
3,915
5,210
3,098
39,592
2,080
3,985
5,172
3,180
39,639
2,293
4,006
5,105
3,190
39,651
2,735
3,988
5,035
3,307
39,679
3,033
3,962
n.a.
n.a.
n.a.
n.a.
n.a.
22 Liabilities
121,056 134,812 147,287 151,383 152,202 153,175 154,315 155,210 156,110 156,843 157,436
n.a.
23
24
25
26
27
28
29
30
109,873 122,877 134,017 136,931 137,307 138,709 139,128 139,308 140,816 141,026 141,155
109,291 121,961 132,744 135,349 135,785 137,089 137,430 137,690 139,068 139,422 139,697
69,653 74,535 78,005 78,170 78,273 77,321 76,116 75,578 75,423 74,124 72,398
39,639 47,426 54,739 57,179 57,512 59,768 61,313 62,112 63,645 65,298 67,299
1,458
1,619
1,604
1,272
1,521
582
916
1,582
1,747
1,620
1,698
5,040
5,411
3,292
5,246
2,884
4,152
4,481
3,969
4,570
2,755
4,636
10,654 10,725 10,777 10,870
10,414 10,497 10,551
9,052
9,978 10,301
8,428
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
15
16
17
18
19
20
21
Deposits
Regular: 5
Ordinary savings
Time and other
Other
Other liabilities
General reserve accounts
MEMO : Mortgage loan commitments outstanding 6 ..
4,823
n.a.
289,304 321,552 351,722 363,269 366,938 369,879 374,415 378,124 381,050 382,446 385,562
n.a.
19,711
17,942
19,563
19,757
13,758
19,553
19,638
19,330
19,489
19,401
19,447
5,368
5,155
5,183
4,934
4,736
5,315
5,156
5,087
5,206
4,984
5,006
5,594
5,884
6,035
4,508
6,051
6,001
6,235
5,923
5,915
5,943
5,925
6,980
8,524
8,539
4,514
8,187
8,481
8,320
8,542
8,368
8,474
8,516
135,317 157,246 175,654 184,917 187,126 188,500 192,112 194,620 196,152 195,883 197,615
107,256 122,984 141,891 150,419 152,267 153,812 156,207 157,888 159,972 161,347 162,835
28,061 34,262 33,763 34,498 34,859 34,688 35,905 36,732 36,180 34,536 34,780
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
99,190 100,040 100,596 101,602 102,365 103,161 104,106
11,537 11,540 11,562 11,538 11,583 11,693 11,707
28,431 28,649 28,843 29,067 29,290 29,521 29,818
21,165 21,749 21,855 21,734 22,022 22,431 22,605
n.a.
n.a.
n.a.
n.a.
1,803
2,439
4,066
4,342
4,606
4,958
4,872
4,789
4,561
4,843
Life insurance companies i
31 Assets
32
33
34
35
36
37
38
Securities:
Government
United States7
State and
local
Foreign8
Business
Bonds
Stocks
39
40
41
42
Mortgages
Real estate
Policy loans
Other assets
89,167
9,621
24,467
16,971
91,552
10,476
25,834
18,502
96,848
11,060
27,556
21,051
98,585
11,269
28,246
20,922
Credit unions
44
45
43 Total assets/liabilities and
capital
Federal
State
38,037
20,209
17,828
45,225
24,396
20,829
54,084
29,574
24,510
56,827
31,255
25,572
58,018
31,925
26,093
59,381
32,793
26,588
59,152
32,679
26,473
60,141
33,315
26,826
61,277
34,058
27,219
60,909
33,718
27,191
61,465
34,093
27,372
62,595
34,681
27,914
46 Loans outstanding
47
Federal
48
State
28,169
14,869
13,300
34,384
18,311
16,073
42,055
22,717
19,338
44,133
23,919
20,214
45,506
24,732
20,11A
47,118
25,762
21,356
47,620
25,970
21,650
49,103
26,840
22,263
50,121
27,510
22,611
50,549
27,697
22,852
51,264
28,176
23,088
51,807
28,583
23,224
33,013
49 Savings
17,530
50
Federal (shares)
51
State (shares and deposits). 15,483
39,173
21,130
18,043
46,832
25,849
20,983
49,931
27,592
22,339
50,789
28,128
22,661
52,076
28,903
23,173
51,551
28,627
22,924
51,772
28,779
22,993
52,867
29,429
23,438
52,468
29,086
23,382
52,600
29,163
23,437
53,048
29,326
23,722
For notes see bottom of page A30.
A30
1.39
DomesticNonfinancialStatistics • February 1979
FEDERAL FISCAL A N D FINANCING OPERATIONS
Millions of dollars
Calendar year
Type of account or operation
U.S. budget
Receipts1 i
Outlays
3
Surplus, or deficit
Trust funds 2
4
Federal funds
5
1
2
6
7
( —)
Off-budget entities surplus, or
deficit ( - )
Federal Financing Bank outlays...
Other 3
U.S. budget plus off-budget, including Federal Financing Bank
Surplus, or deficit (—)
Financed by:
Borrowing from the public
9
Cash and monetary assets (de10
crease, or increase ( —))
Other 4
11
8
Transition
quarter
(JulySept.
1976)
Fiscal
year
1977
Fiscal
year
1978
1977
1978
1978
H2
HI
H2
Oct.
Nov.
Dec.
81,772
94,742
-12,970
-1,952
-11,018
357,762
402,803
-45,041
7,833
-52,874
401,997
450,758
-48,761
12,693
-61,454
175,820
216,781
-40,961
4,293
-45,254
210,650
222,518
-11,870
4,334
-16,204
206,275
238,150
-31,875
11,755
-43,630
28,745
42,691
-13,946
1,626
-15,572
33,227
39,134
-5,907
1,293
-7,200
37,477
41,392
-3,915
1,833
-5,748
-2,575
793
-8,415
-269
-10,660
354
-6,663
428
-5,105
-790
-5,082
1,841
-975
171
-296
1,700
-1,178
453
-14,752
-53,725
-59,067
-47,196
-17,765
-35,117
-14,750
-4,503
-4
M0
18,027
53,516
59,106
40,284
23,374
30,308
6,484
5,236
3,533
-2,899
-373
-2,238
2,440
-3,023
2,984
4,317
2,597
-5,098
-511
3,381
1,428
7,082
1,184
3,485
-4,218
-2,323
3,430
17,418
13,299
4,119
19,104
15,740
3,364
22,444
16,647
5,797
12,274
7,114
5,160
17,526
11,614
5,912
16,291
4,196
12,095
15,545
15,467
78
16,291
4,196
12,095
16,291
4,196
12,095
MEMO ITEMS :
12 Treasury operating balance (level, end
of period)
13
Federal Reserve Banks
Tax and loan accounts
14
1 Effective June 1978, earned income credit payments in excess of
an individual's tax liability, formerly treated as income tax refunds, are
classified
as outlays retroactive to January 1976.
2
Half years calculated as a residual of total surplus/deficit and trust
fund surplus/deficit.
3 Includes Pension Benefit Guaranty Corp.; Postal Service Fund; Rural
Electrification and Telephone Revolving Fund, Rural Telephone Bank;
and Housing for the Elderly or Handicapped Fund until October 1977.
4
Includes public debt accrued interest payable to the public; deposit
funds; miscellaneous liability (including checks outstanding) and asset
accounts; seignorage; increment on gold; net gain/loss for U.S. currency
valuation adjustment; net gain/loss for IMF valuation adjustment.
SOURCE. "Monthly Treasury Statement of Receipts and Outlays of
the U.S. Government," Treasury Bulletin, and U.S. Budget, Fiscal Year
1978.
NOTES TO TABLE 1.38
1
Holdings of stock of the Federal Home Loan Banks are included in
"other
assets."
2
Includes net undistributed income, which is accrued by most, but not
all, associations.
3 Excludes figures for loans in process, which are shown as a liability.
4
Includes securities of foreign governments and international organizations
and nonguaranteed issues of U.S. government agencies.
5
Excludes checking, club, and school accounts.
6
Commitments outstanding (including loans in process) of banks in
New York State as reported to the Savings Banks Association of the
State of New York.
7 Direct and guaranteed obligations. Excludes federal agency issues
not guaranteed, which are shown in this table under "business" securities.
8
Issues of foreign governments and their subdivisions and bonds of the
International Bank for Reconstruction and Development.
9 Data reflect benchmark revisions back to 1977.
Data for June, July, and August 1978 have been revised.
n Data for 1977 and the first 6 months of 1978 have been revised by
the American Council of Life Insurance.
NOTE. Savings and loan associations: Estimates by the FHLBB for
all associations in the United States. Data are based on monthly reports
of federally insured associations and annual reports of other associations.
Even when revised, data for current and preceding year are subject to
further revision.
Mutual savings banks: Estimates of National Association of Mutual
Savings Banks for all savings banks in the United States. Data are reported on a gross-of-valuation-reserves basis.
Life insurance companies: Estimates of the American Council of Life
Insurance for all life insurance companies in the United States. Annual
figures are annual-statement asset values, with bonds carried on an
amortized basis and stocks at year-end market value. Adjustments for
interest due and accrued and for differences between market and book
values are not made on each item separately but are included, in total, in
"other assets."
Credit unions: Estimates by the National Credit Union Administration
for a group of federal and state-chartered credit unions that account for
about 30 percent of credit union assets. Figures are preliminary and
revised annually to incorporate recent benchmark data.
Federal Finance
1.40
A31
U.S. BUDGET RECEIPTS A N D OUTLAYS
Millions of dollars
Calendar year
Source or type
Transition
quarter
(JulySept.
1976)
Fiscal
year
1977
Fiscal
year
1978
1977
H2
1978
1978
HI
H2
Oct.
Nov.
Dec.
Receipts
1 All sources1
2 Individual income taxes, net
3
Withheld
4
Presidential Election Campaign
Fund
5
Nonwithheld
6
Refunds 1
7 Corporation income taxes:
8
Gross receipts
9
Refunds
10 Social insurance taxes and contributions, net
11
Payroll employment
taxes and
contributions 2
12
Self-employment taxes
and
contributions 3
13
Unemployment insurance
14
Other net receipts 4
15 Excise taxes
16 Customs deposits
17 Estate and gift taxes
18 Miscellaneous receipts
5
81,772
357,762
401,997
175,820
210,650
206,275
28,745
33,227
37,477
38,800
32,949
157,626
144,820
180,988
165,215
82,911
75,480
90,336
82,784
98,854
90,148
15,922
15,032
16,609
16,268
16,066
15,454
1
6,809
958
37
42,062
29,293
39
47,804
32,070
1
9,397
1,967
36
37,584
30,068
3
10,777
2,075
1,104
214
533
192
830
219
9,808
1,348
60,057
5,164
65,380
5,428
25,121
2,819
38,496
2,782
28,536
2,757
2,436
752
1,541
493
10,769
382
25,760
108,683
123,410
52,347
66,191
61,064
7,805
11,923
7,716
21,534
88,196
99,626
44,384
51,668
51,052
6,595
9,762
7,059
269
2,698
1,259
4,014
11,312
5,162
4,267
13,850
5,668
316
4,936
2,711
3,892
7,800
2,831
369
6,727
2,917
722
488
1,662
499
174
483
4,473
1,212
1,455
1,612
17,548
5,150
7,327
6,536
18,376
6,573
5,285
7,413
9,284
2,848
2,837
3,292
8,835
3,320
2,587
3,667
9,879
3,748
2,691
4,260
1,635
621
477
602
1,712
646
460
829
1,597
594
386
732
Outlays 8
19 All types1
94,742
402,803
450,758
216,781
222,518
238,150
42,691
39,134
41,392
20 National defense
21 International affairs
22 General science, space, and
technology
23 Energy
24 Natural resources and environment.
25 Agriculture
22,307
2,180
97,501
4,831
105,192
6,083
50,873
2,896
52,979
2,904
55,129
2,221
9,197
324
9,239
-47
9,450
339
1,161
794
2,532
584
4,677
4,172
10,000
5,526
4,721
6,045
11,022
7,618
2,318
2,395
2,487
4,959
2,353
2,362
4,461
6,119
4,854
367
821
878
949
412
792
889
1,372
407
747
1,125
1,681
1,391
3,306
-31
14,636
3,340
15,461
-946
7,723
3,291
8,758
2.124
1,695
41
1,414
309
1,374
26 Commerce and housing credit
27 Transportation
28 Community and regional
development
29 Education, training, employment,
and social services
30 Health
31 Income security1
32 Veterans benefits and services
33 Administration of justice
34 General government
35 General-purpose
fiscal assistance—
36 Interest 6
37 Undistributed offsetting receipts 6 - 7
1,340
6,283
11,255
4,924
5,928
6,108
929
910
753
5,162
8,720
32,795
20,985
38,785
137,905
25,889
44,529
145,640
10,800
19,422
71,081
12,792
21,391
75,201
13,676
23,942
73,305
2,144
4,037
11,815
2,244
3,957
12,358
2,210
4,717
12,469
3,962
859
878
2,092
7,246
-2,567
18,038
3,600
3,357
9,499
38,092
-15,053
18,987
3,786
3,544
9,377
44,040
-15,772
9,864
1,723
1,749
4,926
19,962
-8,506
9,603
1,946
1,803
4,665
22,280
-7,945
9,545
1,973
2,111
4,385
24,110
-8,200
1,6 47
328
785
2,019
3,030
-397
1,667
392
196
160
3,850
-713
2,650
309
269
79
7,372
-4,870
1
Effective June 1978, earned income credit payments in excess of an
individual's tax liability, formerly treated as income tax refunds, are
classified
as outlays retroactive to January 1976.
2
Old-age, disability and hospital insurance, and railroad retirement
accounts.
3
Old-age, disability, and hospital insurance.
4
Supplementary medical insurance premiums, federal employee retirement
contributions, and Civil Service retirement and disability fund.
5
Deposits of earnings by Federal Reserve Banks and other miscellaneous
receipts.
6
Effective September 1976, "Interest" and "Undistributed Offsetting
Receipts" reflect the accounting conversion for the interest on special
issues for U.S. government accounts from an accrual basis to a cash basis.
5,477
7
Consists of interest received by trust funds, rents and royalties on
the Outer Continental Shelf, and U.S. government contributions for
employee
retirement.
8
For some types of outlays the categories are new or represent regroupings; data for these categories are from the Budget of the United
States Government, Fiscal Year 1979; data are not available for half-years
or for months prior to February 1978.
Two categories have been renamed: "Law enforcement and justice"
has become "Administration of justice" and "Revenue sharing and
general purpose fiscal assistance" has become "General purpose fiscal
assistance."
In addition, for some categories the table includes revisions in figures
published earlier.
A32
1.41
DomesticNonfinancialStatistics • February 1979
FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION
Billions of dollars
1977
1976
1978
Item
Mar. 31
June 30
Sept. 30
729.2
747.8
758.8
780.4
718.9
564.1
154.8
738.0
585.2
152.7
749.0
587.9
161.1
771.5
603.6
168.0
10.3
8.5
1.8
10.2
8.4
1.8
9.9
8.1
1.8
9.8
8.0
1.8
8.9
7.4
1.5
675.6
700.0
720.1
739.1
750.2
772.7
718.3
1.7
737.3
1.8
748.4
1.8
770.9
1.8
752.0
752.0
752.0
798.0
Dec. 31
June 30
Sept. 30
Dec. 31
June 30
1 Federal debt outstanding
631.9
2 646.4
665.5
685.2
709.1
2 Public debt securities
3 Held by public
4
Held by agencies
620.4
470.8
149.6
634.7
488.6
146.1
653.5
506.4
147.1
674.4
523.2
151.2
698.8
543.4
155.5
11.5
9.5
2.0
11.6
29.7
1.9
12.0
10.0
1.9
10.8
9.0
1.8
621.6
635.8
654.7
6
7
Held by public
Held by agencies
8 Debt subject to statutory limit
Sept. 30
10 Other debt1
619.8
1.7
634.1
1.7
652.9
1.7
673.8
1.7
698.2
1.7
11 MEMO: Statutory debt limit
636.0
636.0
682.0
700.0
700.0
1
Includes guaranteed debt of government agencies, specified participation certificates, notes to international lending organizations, and District
of Columbia stadium bonds.
2 Gross federal debt and agency debt held by the public increased
1.42
$0.5 billion due to a retroactive reclassification of the Export-Import Bank
certificates of beneficial interest from loan asset sales to debt, effective
July 1, 1975.
NOTE. Data from Treasury Bulletin (U.S. Treasury Department).
Types and Ownership
GROSS PUBLIC DEBT OF U.S. TREASURY
Billions of dollars, end of period
Type and holder
1974
1975
1976
Sept.
1 Total gross public debt
2
3
4
5
6
7
8
9
10
11
12
By type:
Interest-bearing debt
Marketable
Bills
Notes
Nonmarketable1
Convertible bonds 2
State and local government series
Foreign issues 3
Savings bonds and notes 4
Government account series
13 Non-interest-bearing debt
By holder:5
14
U.S. government agencies and trust funds...
15
16
17
18
19
20
21
22
23
24
25
Commercial banks
Mutual savings banks
Insurance companies
Other corporations
State and local governments
Individuals:
Other securities
Foreign and international6
Other miscellaneous investors7
Nov.
Oct.
Dec.
Jan.
492.7
576.6
653.5
718.9
771.5
776.4
783.0
789.2
790.5
491.6
282.9
119.7
129.8
33.4
208.7
2.3
.6
22.8
63.8
119.1
575.7
363.2
157.5
167.1
38.6
212.5
2.3
1.2
21.6
67.9
119.4
652.5
421.3
164.0
216.7
40.6
231.2
2.3
4.5
22.3
72.3
129.7
715.2
459.9
161.1
251.8
47.0
255.3
2.2
13.9
22.2
77.0
139.8
767.0
485.2
160.9
267.9
56.4
281.8
2.2
24.2
21.7
80.2
153.3
775.5
491.7
161.2
272.6
57.8
283.8
2.2
24.1
24.0
80.5
152.7
782.0
493.3
161.5
271.7
60.1
288.7
2.2
24.1
26.6
80.7
154.8
782.4
487.5
161.7
265.8
60.0
294.8
2.2
24.3
28.0
80.9
157.5
789.5
496.5
162.3
272.8
61.4
293.0
2.2
24.2
27.5
80.8
155.2
1.1
1.0
1.1
3.7
4.6
.9
1.0
6.8
1.0
138.2
80.5
139.1
89.8
147.1
97.0
154.8
102.5
168.0
114.8
166.3
115.3
167.4
113.3
271.0
55.6
2.5
6.2
29.2
349.4
85.1
4.5
9.5
20.2
34.2
409.5
103.8
5.9
12.7
27.7
41.6
461.3
101.4
5.9
15.1
22.7
55.2
488.3
95.3
5.4
15.1
21.5
67.8
494.7
94.3
5.4
15.3
21.0
67.1
502.3
93.5
5.3
15.1
20.9
69.1
63.4
21.5
67.3
24.0
72.0
28.8
76.7
28.6
79.8
29.4
80.2
29.6
80.5
29.8
58.8
22.8
66.5
38.0
78.1
38.9
109.6
46.1
121.0
52.9
122.5
54.3
132.4
55.8
11.0
1
Includes (not shown separately): Securities issued to the Rural
Electrification Administration and to state and local governments, depositary
bonds, retirement plan bonds, and individual retirement bonds.
2
These nonmarketable bonds, also known as Investment Series B
Bonds, may be exchanged (or converted) at the owner's option for IVi
percent, 5-year marketable Treasury notes. Convertible bonds that have
been so exchanged are removed from this category and recorded in the
notes category above.
3 Nonmarketable foreign government dollar-denominated and foreign
currency denominated series.
4
Held almost entirely by U.S. government agencies and trust funds.
5 Data for Federal Reserve Banks and U.S. government agencies and
trust funds are actual holdings; data for other groups are Treasury
estimates.
1979
1978
1977
n.a.
n. a.
6
Consists of the investments of foreign balances and international
accounts in the United States. Beginning with July 1974, the figures exclude
non-interest-bearing
notes issued to the International Monetary Fund.
7
Includes savings and loan associations, nonprofit institutions, corporate pension trust funds, dealers and brokers, certain government
deposit accounts, and government sponsored agencies.
NOTE. Gross public debt excludes guaranteed agency securities and,
beginning in July 1974, includes Federal Financing Bank security issues.
Data by type of security from Monthly Statement of the Public Debt of
the United States (U.S. Treasury Department); data by holder from
Treasury Bulletin.
Federal Finance
1.43
U.S. GOVERNMENT MARKETABLE SECURITIES
A33
Ownership, by maturity
Par value; millions of dollars, end of period
Type of holder
1976
1978
1977
Oct.
1976
Nov.
Oct.
All maturities
1 All holders
3 Federal Reserve Banks
9
Savings and loan associations
13 U.S. government agencies and trust funds
20
Savings and loan associations
22
All others
421,276
459,927
491,651
493,337
141,132
151,264
171,802
168,795
16,485
96,971
14,420
101,191
13,885
115,322
12,776
113,305
6,141
31,249
4,788
27,012
3,705
32,033
3,310
31,608
307,820
78,262
4,072
10,284
14,193
4,576
12,252
184,182
344,315
75,363
4,379
12,378
9,474
4,817
15,495
222,409
362,443
69,906
3,744
11,994
8,791
4,312
17,594
246,102
367,256
69,332
3,642
11,732
8,731
4,173
19,146
250,500
103,742
40,005
2,010
3,885
2,618
2,360
2,543
50,321
119,464
38,691
2,112
4,729
3,183
2,368
3,875
64,505
136,064
40,841
2,080
4,981
4,522
2,546
4,316
133,876
40,042
1,997
4,806
3,523
2,464
4,281
76,763
24 U.S. government agencies and trust funds
25 Federal Reserve Banks
27
Commercial banks
30
31
Nonfinancial corporations
Savings and loan associations
33
All others
16,111
5 to 10 years
211,035
230,691
227,101
228,284
43,045
45,328
49,271
50,402
2,012
51,569
1,906
56,702
2,281
59,483
1,488
56,304
2,879
9,148
2,129
10,404
1,987
13,807
1,989
14,717
J57,454
31,213
1,214
2,191
11,009
1,984
6,622
103,220
172,084
29,477
1,400
2,398
5,770
2,236
7,917
122,885
165,337
19,116
845
1,788
3,725
1,563
7,202
131,097
170,492
19,342
863
1,799
4,686
1,540
8,366
133,895
31,018
6,278
567
2,546
370
155
1,465
19,637
32,795
6,162
584
3,204
307
143
1,283
21,112
33,476
7,354
543
2,970
361
131
1,595
20,521
33,695
7,408
507
2,894
292
90
1,557
20,946
10 to 20 years
Bills, within 1 year
23 All holders
Nov.
1 to 5 years
Total, within 1 year
12 All holders
1978
1977
163,992
161,081
161,227
161,548
11,865
12,906
18,052
19,912
449
41,279
32
42,004
2
48,450
2
45,985
3,102
1,363
3,102
1,510
3,273
2,033
3,957
2,077
122,264
17,303
454
1,463
9,939
1,266
5,556
86,282
119,035
11,996
484
1,187
4,329
806
6,092
94,152
112,775
4,545
195
818
1,358
290
4,774
100,796
115,561
4,431
161
766
2,083
278
5,876
101,966
7,400
339
139
1,114
142
64
718
4,884
8,295
456
137
1,245
133
54
890
5,380
12,746
1,212
151
1,354
132
55
1,133
8,702
13,879
1,067
143
1,463
70
60
1,365
9,710
Over 20 years
Other, within 1 year
34 All holders
47,043
69,610
65,874
66,736
14,200
19,738
25,425
25,944
35 U.S. government agencies and trust funds
36 Federal Reserve Banks
1,563
10,290
1,874
14,698
2,279
11,033
1,487
10,319
2,350
3,642
2,495
5,564
2,639
7,966
2,032
8,599
35,190
13,910
760
728
1,070
718
1,066
16,938
53,039
15,482
916
1,211
1,441
1,430
r
\,825
28,733
52,561
14,571
650
970
2,368
1,273
2,428
30,301
54,931
14,911
702
1,033
2,603
1,262
2,490
31,929
8,208
427
143
548
55
13
904
6,120
11,679
578
146
802
81
16
1,530
8,526
14,820
1,383
118
900
51
17
3,347
9,003
15,314
1,473
131
770
159
17
3,577
9,186
38
39
40
Commercial banks
Mutual savings banks
Insurance companies
42
43
44
Savings and loan associations
State and local governments
All others
NOTE. Direct public issues only. Based on Treasury Survey of Ownership from Treasury Bulletin (U.S. Treasury Department).
Data complete for U.S. government agencies and trust funds and
Federal Reserve Banks, but data for other groups include only holdings
of those institutions that report. The following figures show, for each
category, the number and proportion reporting as of Nov. 31, 1978:
(1) 5,464 commercial banks 464 mutual savings banks, and 727 insurance
companies, each about 80 percent; (2) 435 nonfinancial corporations and
485 savings and loan associations, each about 50 percent; and (3) 493
state and local governments, about 40 percent.
"All others," a residual, includes holdings of all those not reporting
in the Treasury Survey, including investor groups not listed separately.
A34
1.44
DomesticNonfinancialStatistics • February 1979
U.S. GOVERNMENT SECURITIES DEALERS
Transactions
Par value; averages of daily figures, in millions of dollars
Item
1 U.S. government securities. .
2
3
4
5
6
By maturity:
Bills
Other within 1 year
1-5 years
5-10 years
Over 10 years
1975
1976
1978
1977
1978, week ending Wednesday—
Oct.
Nov.
Dec.
Nov. 8
Nov. 15 Nov. 22 Nov. 29
Dec. 6
Dec. 13
6,027
10,449
10,838
9,817
11,844
8,837
12,871
13,354
10,326
9,824
8,079
9,083
3,889
223
1,414
363
138
6,676
210
2,317
1,019
229
6,746
237
2,320
1,148
388
6,289
420
1,520
691
897
6,573
449
2,301
1,207
1,314
5,336
400
1,676
738
687
6,075
333
2,508
1,709
2,246
7,661
577
2,081
1,518
1,517
6,155
487
1,933
877
875
5,972
392
1,973
816
670
4,977
285
1,347
705
766
5,723
459
1,157
888
856
By type of customer:
U.S. government securities
dealers
8 U.S. government securities
brokers
9 Commercial banks
10 All others i
885
1,360
1,267
983
908
954
949
1,045
937
664
666
923
1,750
1,451
1,941
3,407
2,426
3,257
3,709
2,295
3,568
4,052
1,404
3,377
5,321
1,834
3,780
3,303
1,514
3,066
5,927
1,920
4,075
5,754
2,115
4,440
4,850
1,502
3,038
4,124
1,630
3,406
3,547
1,255
2,612
3,648
1,437
3,075
11 Federal agency securities
1,043
1,548
1,729
2,029
2,208
2,325
2,123
2,514
2,060
1,979
2,300
2,313
7
1
Includes, among others, all other dealers and brokers in commodities
and securities, foreign banking agencies, and the Federal Reserve System.
Transactions are market purchases and sales of U.S. government
securities dealers reporting to the Federal Reserve Bank of New York.
Thefiguresexclude allotments of, and exchanges for, new U.S. government
securities, redemptions of called or matured securities, or purchases or
sales of securities under repurchase, reverse repurchase (resale), or similar
contracts.
NOTE. Averages for transactions are based on number of trading days
in the period.
1.45
U.S. GOVERNMENT SECURITIES DEALERS
Positions and Sources of Financing
Par value; averages of daily figures, in millions of dollars
Item
1975
1976
1978
1977
Oct.
Nov.
1978, week ending Wednesday—
Dec.
Oct. 18
Oct. 25
Nov. 1
Nov. 8
Nov. 15 Nov. 22
Positions2
1 U.S. government securities. .
5,884
7,592
5,172
1,424
2,417
2,134
1,232
•1,177
2,018
2,904
2,548
1,894
2
3
4
5
6
4,297
265
886
300
136
6,290
188
515
402
198
4,772
99
60
92
149
1,739
462
-593
-207
23
1,958
60
-228
413
213
1,922
97
-73
211
-24
1,759
518
-888
-195
38
r
2,007
364
94
-279
-167
1,869
389
-35
536
144
1,880
181
-491
673
305
1,690
-110
-326
393
247
939
729
693
234
217
370
204
69
97
169
139
325
Bills
Other within 1 year
1-5 years
5-10 years
Over 10 years
7 Federal agency securities....
l,493
540
-660
- 2 r4 7
52
r
Sources of financing3
8 All sources
9
10
11
12
Commercial banks:
New York City
Outside New York City...
Corporations1
All others
6,666
8,715
9,877
10,430
11,396
11,918
10,426
10,275
11,071
11,811
10,881
11,355
1,621
1,466
842
2,738
1,896
1,660
1,479
3,681
1,313
1,987
2,423
4,155
385
2,105
2,396
5,543
347
2,032
3,007
6,010
638
2,210
2,890
6,179
234
2,278
2,530
5,384
460
1,811
2,632
5,371
139
2,244
2,503
6,184
825
1,896
2,890
6,201
348
1,930
3,051
5,553
304
2,134
3,000
5,916
1
All business corporations except commercial banks and insurance
companies.
2
New amounts (in terms of par values) of securities owned by nonbank
dealer firms and dealer departments of commercial banks on a commitment, that is, trade-date basis, including any such securities that have
been sold under agreements to repurchase. The maturities of some repurchase agreements are sufficiently long, however, to suggest that the
securities involved are not available for trading purposes. Securities
owned, and hence dealer positions, do not include securities purchased
under
agreements to resell.
3
Total amounts outstanding of funds borrowed by nonbank dealer
firms and dealer departments of commercial banks against U.S. government and federal agency securities (through both collateral loans and sales
under agreements to repurchase), plus internal funds used by bank dealer
departments to finance positions in such securities. Borrowings against
securities held under agreement to resell are excluded where the borrowing
contract and the agreement to resell are equal in amount and maturity,
that is, a matched agreement.
NOTE. Averages for positions are based on number of trading days
in the period; those for financing, on the number of calendar days in the
period.
Federal Finance
1.46
FEDERAL A N D FEDERALLY SPONSORED CREDIT AGENCIES
A35
Debt Outstanding
Millions of dollars, end of period
Agency
1 Federal and federally sponsored agencies
3
4
5
6
7
8
9
Defense Department12 3
Export-Import Bank Federal Housing Administration4
Government National Mortgage
Association
participation certificates5
Postal Service6
Tennessee Valley Authority
United States Railway Association6
10 Federally sponsored agencies
11
Federal Home Loan Banks
12 Federal Home Loan Mortgage Corporation..
13 Federal National Mortgage Association
15
16
17
18
Federal Intermediate Credit Banks
Banks for Cooperatives
Student Loan Marketing Association7
Other
MEMO ITEMS :
19 Federal Financing Bank debt6*8
Lending to federal and federally sponsored
agencies:
20
Export-Import Bank3
21
Postal Service6
22
Student Loan Marketing Association7
23
Tennessee Valley Authority
24
United States Railway Association6
25
26
27
Other lending:9
Farmers Home Administration
Rural Electrification Administration
Other
1975
1976
June
July
Aug.
Sept.
Oct.
Nov.
97,680
103,325
109,924
120,387
122,638
123,297
125,397
127,468
129,139
19,046
1,220
7,188
564
21,896
1,113
7,801
575
r22,760
983
'8,671
581
r23,131
926
'8,603
606
'23,286
916
r
8.596
603
r22,505
906
'8,274
603
'23,139
897
'8,709
601
'23,279
897
'8,704
598
23,073
876
8,392
594
4,200
1,750
3,915
209
4,120
2,998
5,185
104
3,743
2,431
6,015
336
3,701
2,364
6,575
356
3,666
2,364
6,785
356
3,166
2,364
6,835
357
3,166
2,364
7,045
357
3,166
2,364
7,195
355
3,166
2,364
7,325
356
78,634
18,900
1,550
29,963
15,000
9,254
3,655
310
2
81,429
16,811
1,690
30,565
17,127
10,494
4,330
410
2
87,164
18,345
1,686
31,890
19,118
11,174
4,434
515
2
97,256
22,306
1,937
36,404
19,686
11,257
4,974
690
2
99,352
23,430
1,937
36,900
20,198
11,392
4,788
705
2
100,792
24,360
1,937
37,518
20,198
11,482
4,570
725
2
102,258
25,025
2,063
38,353
20,198
11,555
4,317
745
2
104,189
25,395
2,063
39,776
20,360
11,554
4,264
775
2
106,066
26,777
2,062
39,814
20,360
11,548
4,668
835
2
17,154
28,711
38,580
44,504
45,550
46,668
48,078
49,212
49,645
4,595
1,500
310
1,840
209
5,208
2,748
410
3,110
104
5,834
2,181
515
4,190
336
6,132
2,114
690
4,750
356
6,132
2,114
705
4,960
356
6,132
2,114
725
5,010
357
6,568
2,114
745
5,220
357
6,568
2,114
775
5,370
355
6,568
2,114
835
5,500
356
7,000
566
1,134
10,750
1,415
4,966
16,095
2,647
6,782
20,910
3,602
5,950
21,580
3,684
6,019
22,275
3,919
6,136
22,275
4,192
6,607
23,050
4,407
6,573
23,050
4,489
6,733
1
Consists of mortgages assumed by the Defense Department between
1957
and 1963 under family housing and homeowners assistance programs.
2
Includes participation certificates reclassified as debt beginning
Oct. 1, 1976.
3 Off-budget Aug. 17, 1974, through Sept. 30, 1976; on-budget
thereafter.
4
Consists of debentures issued in payment of Federal Housing Administration insurance claims. Once issued, these securities may be sold
privately
on the securities market.
5
Certificates of participation issued prior to fiscal 1969 by the Government National Mortgage Association acting as trustee for the Farmers
Home Administration; Department of Health, Education, and Welfare;
Department of Housing and Urban Development; Small Business Administration; and the Veterans Administration.
6 Off-budget.
1978
1977
7
Unlike other federally sponsored agencies, the Student Loan
Marketing Association may borrow from the Federal Financing Bank
(FFB) since its obligations are guaranteed by the Department of Health,
Education,
and Welfare.
8
The FFB, which began operations in 1974, is authorized to purchase
or sell obligations issued, sold, or guaranteed by other federal agencies.
Since FFB incurs debt solely for the purpose of lending to other agencies,
its debt is not included in the main portion of the table in order to avoid
double
counting.
9
Includes FFB purchases of agency assets and guaranteed loans;
the latter contain loans guaranteed by numerous agencies with the
guarantees of any particular agency being generally small. The Farmers
Home Administration item consists exclusively of agency assets, while the
Rural Electrification Administration entry contains both agency assets
and guaranteed loans.
A36
DomesticNonfinancialStatistics • February 1979
1.47
NEW SECURITY ISSUES of State and Local Governments
Millions of dollars
Type of issue or issuer,
or use
1
By type of issue:
General obligation
2
3
4
Housing Assistance Administration
5
2
By type of issuer:
6
7
8
10
11
12
13
14
15
Special district and statutory authority
Municipalities, counties, townships, school districts....
By use of proceeds:
Other purposes
1977
1976
July
Aug. r
Sept. r
Oct. r
Nov. r
Dec.
35,313
46,769
48,607
3,923
6,416
2,330
3,244
4,328
3,694
18,040
17,140
18,042
28,655
17,854
30,658
1,065
2,855
2,161
4,246
703
1,620
1,148
2,083
1,168
3,152
1,698
1,992
133
72
95
3
9
7
13
8
4
7,054
15,304
12,845
6,354
21,717
18,623
6.632
24,156
17,718
650
2,171
1,098
919
3,120
2,369
85
1,599
639
552
1,616
1,061
343
2,848
1,129
497
2,148
1,043
32,108
36,189
37,629
3,497
3,365
2,266
3,160
4,216
3,379
4,900
2,586
9,594
6,566
483
7,979
5,076
2,951
8,119
8,274
4,676
7,093
5,003
3,460
9,026
10,494
3,526
6,120
499
292
941
1,241
244
280
277
632
689
967
344
456
397
302
695
526
105
241
314
422
831
1,169
249
175
463
259
1,241
817
323
1,113
319
337
705
1,126
276
616
1
Par amounts of long-term issues based on date of sale.
2
Only bonds sold pursuant to the 1949 Housing Act, which are secured
by contract requiring the Housing Assistance Administration to make
annual contributions to the local authority.
1.48
1978
1978
SOURCE. Public Securities Association.
NEW SECURITY ISSUES of Corporations
Millions of dollars
1978
Type of issue or issuer,
or use
1
1976
1975
1977
April
May
June
July
Aug.
Sept.
53,619
53,488
54,205
3,285
4,035
5,215
4,226
3,311
3,832
2 Bonds
42,756
42,380
42,193
2,811
2,996
3,810
3,718
2,529
2,905
By type of offering:
3
Public
4
Private placement
32,583
10,172
26,453
15,927
24,186
18,007
1,958
853
1,719
1,277
1,744
2,066
2,177
1,541
1,497
1,032
1,610
16,980
2,750
3,439
9,658
3,464
6,469
13,264
4,372
4,387
8,297
2,787
9,274
12,510
5,887
2,033
8,261
3,059
10,438
534
421
291
505
35
1,027
837
314
244
885
714
1,105
562
225
815
344
761
675
417
235
768
326
1,296
485
414
115
521
546
448
823
454
135
912
205
375
10,863
11,108
12,013
474
1,039
1,405
508
782
927
3,458
7,405
2,803
8,305
3,878
8,135
235
239
390
649
586
819
57
451
157
625
800
1,670
1,470
2,237
1,183
24
6,121
776
771
1,265
1,838
418
6,058
1,379
1,054
15
183
28
238
41
90
366
245
38
429
5
320
167
167
40
31
27
76
236
148
354
6
75
426
1 All issues
5
6
7
8
9
10
By industry group:
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial
11 Stocks
By type:
12 Preferred
13 Common
14
15
16
17
18
19
By industry group:
M anufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial
6,235
1,002
488
1
Figures, which represent gross proceeds of issues maturing in more
than 1 year, sold for cash in the United States, are principal amount or
number of units multiplied by offering price. Excludes offerings of less
than $100,000, secondary offerings, undefined or exempted issues as
defined in the Securities Act of 1933, employee stock plans, investment
10
20
800
110
1,295
127
168
12
10
164
companies other than closed-end, intracorporate transactions, and sales to
foreigners.
SOURCE. Securities and Exchange Commission.
Corporate Finance
1.49
OPEN-END INVESTMENT COMPANIES
A37
Net Sales and Asset Position
Millions of dollars
1978
Item
1977
1978
6,401
6,027
357
6,645
7,231
-586
487
757
-270
474
645
-181
638
882
-244
519
673
-154
463
607
-144
587
439
148
602
545
57
45,049
3,274
41,775
45,184
4,522
40,662
46,106
4,493
41,613
47,975
4,285
43,690
49,299
3,948
45,351
48,151
3,703
44,448
43,462
3,793
39,669
44,242
4,299
39,943
45,184
4,522
40,662
June
July
Oct.
Sept.
Aug.
Nov. r
Dec.
INVESTMENT COMPANIES
excluding money market funds
1
2
3
Sales of own shares1
Redemptions of own shares2
Net sales
4
5
6
Assets3
Cash position 4
Other
1
Includes reinvestment of investment income dividends. Excludes
reinvestment of capital gains distributions and share issue of conversions
from
one fund to another in the same group.
2
Excludes share redemption resulting from conversions from one fund
to 3another in the same group.
Market value at end of period, less current liabilities.
1.50
4
Also includes all U.S. government securities and other short-term
debt securities.
NOTE. Investment Company Institute data based on reports of members, which comprise substantially all open-end investment companies
registered with the Securities and Exchange Commission. Data reflect
newly formed companies after their initial offering of securities.
CORPORATE PROFITS A N D THEIR DISTRIBUTION
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
Account
1975
1976
1977
1977
Ql
1978
Q2
Q3
Q4
Ql
Q2
Q3
1 Profits before tax
120.4
155.9
173.9
164.8
175.1
177.5
178.3
172.1
205.5
205.4
2 Profits tax liability
3 Profits after tax
49.8
70.6
64.3
91.6
71.8
102.1
68.3
96.5
72.3
102.8
72.8
104.7
73.9
104.4
70.0
102.1
85.0
120.5
86.2
119.2
4 Dividends
5 Undistributed profits
31.9
38.7
37.9
53.7
43.7
58.4
41.5
55.0
42.7
60.1
44.1
60.6
46.3
58.1
47.0
55.1
48.1
72.4
50.1
69.1
89.2
127.9
97.1
150.8
106.0
164.4
102.0
157.0
105.0
165.1
107.6
168.2
109.3
167.4
111.3
166.4
113.3
185.7
115.4
184.5
6 Capital consumption allowances
7 Net cash flow
SOURCE. Survey of Current Business (U.S. Department of Commerce.)
A38
1.51
DomesticNonfinancialStatistics • February 1979
NONFINANCIAL CORPORATIONS
Current Assets and Liabilities
Billions of dollars, except for ratio
1976
1974
Account
1977
1978
1975
Q4
Ql
Q2
Q3
Q4
Ql
Q2
Q3
1 Current assets
734.6
756.3
823.1
842.0
856.4
880.3
900.1
924.2
953.5
992.4
2
3
4
5
6
73.0
11.3
265.5
318.9
65.9
80.0
19.6
272.1
314.7
69.9
86.8
26.0
292.4
341.4
76.4
80.8
26.8
304.1
352.1
78.3
83.1
22.1
312.8
358.8
79.6
83.4
21.5
326.9
367.5
81.0
94.2
20.9
325.7
375.0
84.3
88.5
20.9
338.3
389.7
86.8
90.9
19.7
356.8
399.1
87.0
91.4
18.6
377.8
415.5
89.0
7 Current liabilities
451.8
446.9
487.5
502.6
509.5
528.9
543.2
570.4
590.8
624.5
8
9
272.3
179.5
261.2
185.7
273.2
214.2
280.2
222.4
286.8
222.7
297.8
231.1
306.8
236.3
317.2
253.2
331.3
259.4
349.9
274.6
282.8
309.5
335.6
339.5
346.9
351.4
357.0
353.8
362.7
367.9
1.664
1.657
1.620
1.614
1.589
Cash
U.S. government securities
Notes and accounts receivable
Inventories
Other
Notes and accounts payable
Other
10 Net working capital
1.693
1.626
1.688
1 Ratio of total current assets to total current liabilities.
1.675
1.681
j
SOURCE. Federal Trade Commission.
NOTE. For a description of this series see "Working Capital of Nonfinancial Corporations" in the July 1978 BULLETIN, pp. 533-37.
1.52
BUSINESS EXPENDITURES on New Plant and Equipment
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1977
1977
Industry
1 All industries
Manufacturing
2
Durable goods industries
3 Nondurable goods industries
4
5
6
7
8
9
10
11
Nonmanufacturing
Mining
Transportation:
Railroad
Air
Other
Public utilities:
Electric
Gas and other
Communication
Commercial and other1
1
2
|
1978
Ql
Q2
Q3
Q4
Ql
Q2
Q3
Q4
135.72
152.28
130.16
134.24
140.38
138.11
144.25
150.76
155.13
158.98
27.75
32.33
31.53
36.23
26.30
30.13
27.26
32.19
29.23
33.79
28.19
33.22
28.72
32.86
31.40
35.80
32.11
36.54
33.89
39.72
4.49
4.78
4.24
4.49
4.74
4.50
4.45
4.81
4.80
5.07
2.S2
i.63
2.55
328
2.45
2.27
2.71
1.62
2.96
2.57
1.43
2.96
3.20
1.69
1.96
2.80
1.76
2.32
3.35
2.67
2.44
3.09
2.08
2.23
3.64
2.97
2.37
3.05
2.08
2.05
21.57
4.21
15.43
22.95
24.49
4.48
21.19
4.16
14.19
22.67
21.14
4.16
15.32
22.73
21.90
4.32
16.40
23.14
22.05
4.18
15.82
23.27
23.15
4.78
17.07
24.76
23.83
4.62
18.18
24.71
25.04
4.22
} 43.44
25.94
4.28
42.90
Includes trade, service, construction, finance, and insurance.
Anticipated by business.
NOTE. Estimates for corporate and noncorporate business, excluding
1978
2
agriculture; real estate operators; medical, legal, educational, and cultural
service; and nonprofit organizations.
Source. Survey of Current Business (U.S. Dept. of Commerce).
Corporate Finance
1.521
DOMESTIC FINANCE COMPANIES
A39
Assets and Liabilities
Billions of dollars, end of period
1973
1972
Account
1974
1975
1977
1976
1978
Q3
Q4
QL
Q2
Q3
ASSETS
1
2
3
4
5
6
7
8
Accounts receivable, gross
Consumer
Business
Total
LESS: Reserves for unearned income and losses
Accounts receivable, net
Cash and bank deposits
Securities
All other
9 Total assets
31.9
27.4
59.3
7.4
51.9
2.8
.9
10.0
35.4
32.3
67.7
8.4
59.3
2.6
.8
10.6
36.1
37.2
73.3
9.0
64.2
3.0
.4
12.0
36.0
39.3
75.3
9.4
65.9
2.9
1.0
11.8
38.6
44.7
83.4
10.5
72.9
2.6
1.1
12.6
42.3
50.6
92.9
11.7
81.2
2.5
1.8
14.2
44.0
55.2
99.2
12.7
86.5
2.6
.9
14.3
44.5
57.6
102.1
12.8
89.3
2.2
1.2
15.0
47.1
59.5
106.6
14.1
92.6
2.9
1.3
16.2
49.7
58.3
108.0
14.3
93.7
2.7
1.8
17.1
65.6
73.2
79.6
81.6
89.2
99.6
104.3
107.7
112.9
115.3
5.6
17.3
7.2
19.7
9.7
20.7
8.0
22.2
6.3
23.7
5.4
25.7
5.9
29.6
5.8
29.9
5.4
31.3
5.4
29.3
4.3
22.7
4.8
4.6
24.6
5.6
4.9
26.5
5.5
4.5
27.6
6.8
5.4
32.3
8.1
5.4
34.8
13.7
6.2
36.0
11.5
5.3
38.0
12.9
6.6
40.1
13.6
6.8
41.3
15.2
LIABILITIES
10 Bank loans
11 Commercial paper
Debt:
12 Short-term, n.e.c
13 Long-term, n.e.c
14
Other
15 Capital, surplus, and undivided profits
10.9
11.5
12.4
12.5
13.4
14.6
15.1
15.7
16.0
17.3
16 Total liabilities and capital
65.6
73.2
79.6
81.6
89.2
99.6
104.3
107.7
112.9
115.3
NOTE. Components may not add to totals due to rounding.
1.522
DOMESTIC FINANCE COMPANIES
Business Credit
Millions of dollars, seasonally adjusted except as noted
Type
Accounts
receivable
outstanding Nov. 30,
19781
Changes in accounts
receivable during—
Extensions
Repayments
1978
1978
1978
Sept.
Oct.
Nov.
Sept.
Oct.
Nov.
Sept.
Oct.
Nov.
1 Total
61,699
-234
704
1,210
15,530
15,078
16,293
15,764
14,374
15,083
2 Retail automotive (commercial vehicles)
3 Wholesale automotive
4 Retail paper on business, industrial, and
farm equipment
5 Loans on commercial accounts receivable...
6 Factored commercial accounts receivable....
7 All other business credit
14,261
11,914
209
-506
214
103
229
591
1,202
6,119
1,237
6,171
1,260
6,946
993
6,625
1,023
6,068
1,031
6,355
16,551
4,048
2,629
12,296
-154
150
83
-16
160
-202
291
138
226
-49
209
4
1,198
3,454
1,584
1,973
1,041
3,233
1,543
1,853
1,159
3,310
1,776
1,842
1,352
3,304
1,501
1,989
881
3,435
1,252
1,715
933
3,359
1,567
1,838
i Not seasonally adjusted.
A40
1.53
DomesticNonfinancialStatistics • February 1979
MORTGAGE MARKETS
Millions of dollars; exceptions noted.
1978
Item
1976
1977
1978
July
Aug.
Sept.
Oct.
Nov.
Dec.
Terms and yields in primary and secondary markets
PRIMARY MARKETS
1
2
3
4
5
6
7
8
Conventional
mortgages on new homes
Terms:1
Amount of loan (thous. dollars)
Loan/price ratio (percent)
Maturity (years)
Fees and charges (percent of loan amount)2.
Contract rate (percent per annum)
Yield (percent per
annum):
FHLBB series 3
HUD series4
48.4
35.9
74.2
27.2
1.44
8.76
54.3
40.5
76.3
27.9
1.33
8.80
62.6
45.9
75.3
28.0
1.39
9.30
61.9
45.3
75.3
28.2
1.40
9.34
63.6
46.4
75.3
28.0
1.43
9.45
64.6
46.7
74.1
27.8
1.36
9.50
66.8
48.6
74.4
28.0
1.37
9.60
65.1
47.5
74.4
27.9
1.40
9.63
68.1
49.6
75.1
28.1
1.49
9.76
8.99
8.99
9.01
8.95
9.54
9.68
9.57
9.80
9.70
9.80
9.73
9.80
9.83
9.95
9.87
10.10
10.02
10.30
8.82
8.17
7.96
8.04
8.08
8.98
9.92
9.16
9.78
8.95
9.78
'"9.04
9.93
'9.25
r
9.99
9.39
10.16
9.54
8.99
9.11
8.73
8.98
9.77
10.01
10.01
10.19
9.81
10.11
9.78
10.02
10.03
10.19
10.30
10.56
10.50
10.85
SECONDARY MARKETS
9
10
11
12
Yields (percent per annum):
FHA mortgages (HUD series) 5
FNMA auctions:7
Activity in secondary markets
FEDERAL NATIONAL
MORTGAGE ASSOCIATION
13
14
15
16
17
18
19
20
Mortgage holdings (end of period)
Total
Mortgage transactions (during period)
Sales
Mortgage commitments:8
Contracted (during period)
Outstanding (end of period)
Auction of 4-month commitments to buy—
Government-underwritten loans:
Offered 9
Accepted
Conventional loans:
Offered 9
23
24
Accepted
21
22
32,904
18,916
9,212
4,776
3,606
86
34,370
18,457
9,315
6,597
43,311
21,243
10,544
11,524
39,409
19,763
10,457
9,189
40,325
20,034
10,535
9,752
41,189
20,325
10,575
10,289
41,957
20,625
10,565
10,767
42,590
20,929
10,535
11,126
43,311
21,243
10,544
11,524
r
12,303
5
945
1,230
1,132
1,053
920
974
n.a.
n.a.
n.a.
927
10,171
527
9,419
882
9,068
1,900
9,547
1,275
9,525
n.a.
n.a.
4,780
'67
6,247
3,398
1,333
4,698
4,929.8
2,787.2
'7,974.1
'4,846.2
12,978
6,747.2
756.7
471.5
499.1
277.2
717.9
335.9
1,964.8
832.4
788.0
321.8
627.0
319.6
2,595.7 '5,675.2
1,879.2 '3,917.8
9,933.0
5,110.9
316.0
178.9
224.7
128.5
484.7
283.7
1,156.8
495.6
861.4
386.8
417.4
220.9
FEDERAL HOME LOAN
MORTGAGE CORPORATION
25
26
27
28
29
30
31
Mortgage holdings (end of period)1 o
Total
FHA/VA
Mortgage transactions (during period)
Purchases
Sales
Mortgage commitments:11
Contracted (during period)
4,269
1,618
2,651
3,276
1,395
1,881
3,064
1,243
1,822
2,024
1,321
702
2,448
1,304
1,144
2,486
1,287
1,199
2,867
1,594
1,273
3,022
1,257
1,766
3,064
1,243
1,822
1,175
1,396
'3,900
'4,131
6,524
6,211
520
725
742
299
670
594
791
369
763
581
596
540
1,477
333
'5,546
1,063
7,451
1,410
737
2,055
838
2,142
760
2,130
547
1,716
706
1,617
455
1,410
1 Weighted averages based on sample surveys of mortgages originated
by major institutional lender groups. Compiled by the Federal Home
Loan Bank Board in cooperation with the Federal Deposit Insurance
Corporation.
2
Includes all fees, commissions, discounts, and "points" paid (by the
borrower or the seller) in order to obtain a loan.
3 Average effective interest rates on loans closed, assuming prepayment
at the end of 10 years.
4
Average contract rates on new commitments for conventional first
mortgages, rounded to the nearest 5 basis points; from Dept. of Housing
and Urban Development.
5 Average gross yields on 30-year, minimum-downpayment, Federal
Housing Administration-insured first mortgages for immediate delivery
in the private secondary market. Any gaps in data are due to periods of
adjustment to changes in maximum permissible contract rates.
6 Average net yields to investors on Government National Mortgage
Association-guaranteed, mortgage-backed, fully-modified pass-through
securities, assuming prepayment in 12 years on pools of 30-year FHA/VA
mortgages carrying the prevailing ceiling rate. Monthly figures are
unweighted
averages of Monday quotations for the month.
7
Average gross yields (before deduction of 38 basis points for mortgage
servicing) on accepted bids in Federal National Mortgage Association's
auctions of 4-month commitments to purchase home mortgages, assuming
prepayment in 12 years for 30-year mortgages. No adjustments are made
for FN MA commitment fees or stock related requirements. Monthly
figures
are unweighted averages for auctions conducted within the month.
8
Includes some multifamily and nonprofit hospital loan commitments
in addition to 1- to 4-family loan commitments accepted in FNMA's
free market auction system, and through the FNMA-GNMA tandem
plans.
91 0Mortgage amounts offered by bidders are total bids received.
Includes participations as well as whole loans.
11
Includes conventional and government-underwritten loans.
Real Estate Debt
1.54
A41
MORTGAGE DEBT OUTSTANDING
Millions of dollars, end of period
Type of holder, and type of property
1 All holders
2
1- to 4-family
3
Multifamily
4
Commercial
5
Farm
6 Major financial institutions
7
Commercial banks1
8
1- to 4-family
9
Multifamily
10
Commercial
11
Farm
12
13
14
15
16
Mutual savings banks
1- to 4-family
Multifamily
Commercial
Farm
17
18
19
20
Savings and loan associations
1- to 4-family
Multifamily
Commercial
21
22
23
24
25
Life insurance companies
1- to 4-family
Multifamily
Commercial
Farm
26 Federal and related agencies
27
Government National Mortgage Assn.
28
1-to 4-family
29
Multifamily
1973
1974
1975
1976
1978
1977
Q4
Ql
Q2
Q3*>
682,321
416,211
93,132
131,725
41,253
742,512
449,371
99,976
146,877
46,288
801,537
490,761
100,601
159,298
50,877
889,327
556,557
104,516
171,223
57,031
1,023,417
656,116
111,804
189,829
65,668
1,052,307
675,514
114,202
194,545
68,046
1,090,234
701,392
116,793
201,054
71,004
1,128,398
727,096
119,422
208,017
73,863
505,400
119,068
67,998
6,932
38,696
5,442
542,560
132,105
74,758
7,619
43,679
6,049
581,193
136,186
77,018
5,915
46,882
6,371
647,650
151,326
86,234
8,082
50,289
6,721
745,011
178,979
105,115
9,215
56,898
7,751
764,614
184,423
108,699
9,387
58,407
7,930
792,762
193,223
113,886
9,816
61,194
8,327
819,264
202,423
119,308
10,283
64,107
8,725
73,230
48,811
12,343
12,012
64
74,920
49,213
12,923
12,722
62
77,249
50,025
13,792
13,373
59
81,639
53,089
14,177
14,313
60
88,104
57,637
15,304
15,110
53
89,800
58,747
15,398
15,401
54
91,535
59,882
15,900
15,698
55
93,511
61,175
16,243
16,037
56
231,733
187,078
22,779
21,876
249,301
200,987
23,808
24,506
278,590
223,903
25,547
29,140
323,130
260,895
28,436
33,799
381,163
310,686
32,513
37,964
392,479
319,910
33,478
39,091
407,964
332,532
34,779
40,633
420,947
343,114
35,907
41,926
81,369
20,426
18,451
36,496
5,996
86,234
19,026
19,625
41 ,256
6,327
89,168
17,590
19,629
45,196
6,753
91,555
16,088
19,178
48,864
7,425
96,765
14,727
18,807
54,388
8,843
97,963
14,476
18,851
55,426
9,210
100,040
14,129
18,745
57,463
9,703
102,383
13,929
18,945
59,309
10,200
46,721
4,029
1,455
2,574
58,320
4,846
2,248
2,598
66,891
7,438
4,728
2,710
66,753
4,241
1,970
2,271
70,006
3,660
1,548
2,112
72,014
3,291
948
2,343
73,991
3,283
922
2,361
77,919
3,523
989
2,534
30
31
32
33
34
Farmers Home Admin
1- to 4-family
Multifamily
Commercial
Farm
1,366
743
29
218
376
1,432
759
167
156
350
1,109
208
215
190
496
1,064
454
218
72
320
1,353
626
275
149
303
1,179
202
408
218
351
618
124
102
104
288
668
135
110
112
311
35
36
37
Federal Housing and Veterans Admin.
1- to 4-family
Multifamily
3,476
2,013
1,463
4,015
2,009
2,006
4,970
1 ,990
2,980
5,150
1,676
3,474
5,212
1,627
3,585
5,219
1,585
3,634
5,225
1,543
3,682
5,295
1,565
3,730
38
39
40
Federal National Mortgage Assn... .
1-to 4-family
Multifamily
24,175
20,370
3,805
29,578
23,778
5,800
31,824
25,813
6,011
32,904
26,934
5,970
34,369
28,504
5,865
36,029
30,208
5,821
38,753
32,974
5,779
41,189
35,437
5,752
41
42
43
Federal Land Banks
1- to 4-family
Farm
11,071
123
10,948
13,863
406
13,457
16,563
549
16,014
19,125
601
18,524
22,136
670
21,466
22,925
691
22,234
23,857
727
23,130
24, 758
819
23,939
44
45
46
Federal Home Loan Mortgage Corp..
1- to 4-family
Multifamily
2,604
2,446
158
4,586
4,217
369
4,987
4,588
399
4,269
3,889
380
3,276
2,738
538
3,371
2,785
586
2,255
1,856
399
2,486
1,994
492
47 Mortgage pools or trusts2
48
Government National Mortgage Assn.
49
1- to 4-family
Multifamily
50
18,040
7,890
7,561
329
23,799
11,769
11,249
520
34,138
18,257
17,538
719
49,801
30,572
29,583
989
70,289
44,896
43,555
1,341
74,080
46,357
44,906
1,451
78,602
48,032
46,515
1,517
82,325
50,844
49,276
1,568
766
617
149
757
608
149
1,598
1,349
249
2,671
2,282
389
6,610
5,621
989
7,471
6,286
1,185
9,423
7,797
1,626
9,934
8,358
1,576
9,384
5,458
138
1 ,124
2,664
11,273
6,782
116
1,473
2,902
14,283
9,194
295
1,948
2,846
16,558
10,219
532
2,440
3,367
18,783
11,379
759
2,945
3,682
20,252
12,235
732
3,528
3,757
21,147
12,742
1,128
3,301
3,976
21,547
12,943
1,154
3,380
4,070
112,160
51 ,112
23,982
21,303
15,763
117,833
53,331
24,276
23,085
17,141
119,315
56,268
22,140
22,569
18,338
125,123
62,643
20,420
21,446
20,614
138,111
71,665
20,501
22,375
23,570
141,599
73,878
20,732
22,479
24,510
144,888
75,763
20,939
22,661
25,525
148,890
78,054
21,128
23,146
26,562
51
52
53
Federal Home Loan Mortgage Corp.
1- to 4-family
Multifamily
54
55
56
57
58
Farmers Home Admin
1- to 4-family
Multifamily
Commercial
Farm,
59 Individuals and others3
60
1- to 4-family
61
Multifamily
62
Commercial
63
Farm
1
Includes loans held by nondeposit trust companies but not bank trust
departments.
2
Outstanding principal balances of mortgages backing securities insured
or guaranteed by the agency indicated.
3
Other holders include mortgage companies, real estate investment
trusts, state and local credit agencies, state and local retirement funds,
noninsured pension funds, credit unions, and U.S. agencies for which
amounts are small or separate data are not readily available.
NOTE. Based on data from various institutional and government
sources, with some quarters estimated in part by Federal Reserve in
conjunction with the Federal Home Loan Bank Board and the Department of Commerce. Separation of nonfarm mortgage debt by type of
property, if not reported directly, and interpolations and extrapolations
where required, are estimated mainly by Federal Reserve. Multifamily
debt refers to loans on structures of five or more units.
A42
1.55
DomesticNonfinancialStatistics • February 1979
CONSUMER INSTALLMENT CREDIT 1
Total Outstanding, and Net Changej
Millions of dollars
Holder, and type of credit
1976
1977
1978
1978
July
Aug.
Sept.
Oct.
Nov.
Dec.
Amounts outstanding (end of period)
1 Total.
193,977
230,829
275,640
249,865
253,897
259,614
263,387
265,821
269,445
275,640
2
3
4
5
6
7
8
By major holder:
Commercial banks
Finance companies
Credit unions
Retailers2
Savings and loans
Gasoline companies. ..
Mutual savings banks.,
93,728
38,919
31,169
19,260
6,246
2,830
1,825
112,373
44,868
37,605
23,490
7,354
2,963
2,176
136,189
54,309
45,939
24,876
8,394
3,240
2,693
124,080
48,637
41,936
21,813
7,764
3,185
2,450
126,619
49,502
42,355
21,828
7,793
3,309
2,491
129,622
50,558
43,499
22,093
7,947
3,354
2,541
131,403
51,280
44,325
22,302
8,055
3,416
2,606
132,702
51,984
44,635
22,464
8,177
3,276
2,583
133,908
53,099
45,305
23,006
8,291
3,173
2,663
136,189
54,309
45,939
24,876
8,394
3,240
2,693
9
10
11
12
13
14
By major type of credit:
Automobile
Commercial banks . .
Indirect paper
Direct loans
Credit unions
Finance companies..
67,707
39,621
22,072
17,549
15,238
12,848
82,911
49,577
27,379
22,198
18,099
15,235
102,468
60,564
33,850
26,714
21,976
19,937
93,261
55,754
31,128
24,626
20,054
17,453
95,289
57,071
31,907
25,164
20,254
17,964
97,687
58,453
32,667
25,786
20,801
18,433
99,062
59,085
33,067
26,018
21,196
18,781
100,159
59,778
33,415
26,363
21,344
19,037
101,565
60,347
33,709
26,638
21,664
19,554
102,468
60,564
33,850
26,714
21,967
19,937
15
16
17
18
Revolving
Commercial banks. .
Retailers
Gasoline companies.
17,189
14,359
2,830
39,274
18,374
17,937
2,963
47,051
24,434
19,377
3,240
40,001
20,135
16,681
3,185
40,553
20,566
16,678
3,309
41,629
21,314
16,961
3,354
42,420
21,935
17,069
3,416
42,579
22,165
17,138
3,276
43,523
22,724
17,626
3,173
47,051
24,434
19,377
3,240
19
20
21
22
23
Mobile home
Commercial banks.
Finance companies.
Savings and loans..
Credit unions
14,573
8,737
3,263
2,241
332
15,141
9,124
3,077
2,538
402
16,042
9,553
3,152
2,848
489
15,532
9,386
3,065
2,634
447
15,663
9,483
3,085
2,644
451
15,799
9,539
3,101
2,696
463
15,910
9,591
3,114
2,733
472
15,925
9,548
3,127
2,775
475
16,017
9,572
3,150
2,813
482
16,042
9,553
3,152
2,848
489
24
25
26
27
28
29
30
Other
Commercial banks
Finance companies
Credit unions
Retailers
Savings and loans
Mutual savings banks.
94,508
31,011
22,808
15,599
19,260
4,005
1,825
93,503
35,298
26,556
19,104
5,553
4,816
2,176
110,079
41,638
31,220
23,483
5,499
5,546
2,693
101,071
38,805
28,119
21,435
5,132
5,130
2,450
102,392
39,499
28,453
21,650
5,150
5,149
2,491
104,499
40,316
29,024
22,235
5,132
5,251
2,541
105,995
40,792
29,385
22,657
5,233
5,322
2,606
107,158
41,211
29,820
22,816
5,326
5,402
2,583
108,340
41,265
30,395
23,159
5,380
5,478
2,663
110,079
41,638
31,220
23,483
5,499
5,546
2,693
Net change (during period) 3
31 Total.
21,647
35,278
45,066
4,207
3,466
3,632
3,680
3,374
4,099
4,400
32
33
34
35
36
37
38
By major holder:
Commercial banks
Finance companies
Credit unions
Retailers i
Savings and loans
Gasoline companies . .,
Mutual savings banks.
10,792
2,946
5,503
1,059
1,085
124
138
18,645
5,948
6,436
2,654
1,111
132
352
24,058
9,441
8,334
1,386
1,041
276
530
2,387
624
797
234
57
20
88
2,100
671
513
144
10
-19
47
1,785
736
613
342
107
-1
50
1,714
847
639
328
94
9
49
1,617
863
644
115
127
16
-8
1,925
1,018
779
186
88
104
2,080
1,098
773
196
115
96
42
39
40
41
42
43
44
By major type of credit:
Automobile
Commercial banks. .
Indirect p a p e r . . . .
Direct loans
Credit unions
Finance companies..
10,465
6,334
2,742
3,592
2,497
1,634
15,204
9,956
5,307
4,649
2,861
2,387
19,557
10,987
6,471
4,516
3,868
4,702
1,642
1,029
587
442
349
264
1,711
1,041
626
415
275
395
1,604
957
515
442
287
360
1,532
848
517
331
313
371
1,375
759
354
405
301
315
1,755
839
440
399
364
552
1,780
845
530
315
391
544
45
46
47
48
Revolving
Commercial banks. .
Retailers
Gasoline companies.
2,170
2,046
124
6,248
4,015
2,101
132
7,776
6,060
1,440
276
955
601
334
20
600
498
121
-19
737
358
380
-1
622
380
233
9
346
337
-7
16
665
556
110
-1
869
610
163
96
49
50
51
52
53
Mobile home
Commercial banks.
Finance companies.
Savings and loans..
Credit unions
140
70
-182
192
60
565
387
-189
297
70
897
426
74
310
87
70
50
1
12
7
83
65
11
2
5
79
20
7
46
6
72
31
6
27
8
25
-25
-2
46
6
75
19
15
34
7
71
21
11
30
9
54
55
56
57
58
59
60
Other
Commercial banks
Finance companies
Credit unions
Retailers
Savings and loans
Mutual savings banks.
8,872
2,342
1,494
2,946
1,059
893
138
13,261
4,287
3,750
3,505
553
814
352
16,836
6,585
4,665
4,379
-54
731
530
1,540
707
359
441
-100
45
88
1,072
496
265
233
23
8
47
1,212
450
369
320
-38
61
50
1,454
455
470
318
95
67
49
1,628
546
550
337
122
81
-8
1,604
511
451
408
76
54
104
1,680
604
543
373
33
85
42
1
The board's series cover most short- and intermediate-term credit
extended to individuals through regular business channels, usually to
finance the purchase of consumer goods and services or to refinance
debts incurred for such purposes, and scheduled to be repaid (or with
the option of repaying in two or more installments).
2
Includes auto dealers and excludes 30-day charge credit held by
travel and entertainment companies.
3 Net change equals extensions minus liquidations (repayments, chargeoffs, and other credits); figures for all months are seasonally adjusted.
NOTE. Total consumer noninstallment credit outstanding—credit
scheduled to be repaid in a lump sum, including single-payment loans,
charge accounts, and service credit—amounted to $64.3 billion at the end
of 1978, $58.6 billion at the end of 1977, $54.8 billion at the end of 1976,
and $50.9 billion at the end of 1975. Comparable data for Dec. 31, 1979
will be published in the February 1980 BULLETIN.
A Consumer installment credit series have been revised from 1943.
effective Dec. 7, 1978. Information is available from Mortgage and
Consumer Finance Section, Division of Research and Statistics.
Consumer Debt
1.56
CONSUMER INSTALLMENT CREDIT
A43
Extensions and Liquidations A
Millions of dollars
1978
Holder, and type of credit
1976
1977
1978
June
July
Aug.
Extensions
Sept.
Oct.
Nov.
2
211,028
254,071
298,574
25,565
25,022
25,669
25,536
25,785
26,214
2
3
4
5
6
7
8
By major holder:
Commercial banks
Finance companies
Credit unions
Retailers1
Savings and loans
Gasoline companies. .,
Mutual savings banks.
97,397
36,129
29,259
29,447
3,898
13,387
1,511
117,896
41,989
34,028
39,133
4,485
14,617
1,923
142,965
50,483
40,023
41,619
5,050
16,125
2,309
12,382
4,223
3,445
3,552
379
1,351
233
12,187
4,261
3,271
3,477
327
1,299
12,255
4,348
3,379
3,725
435
1,317
12,182
210
12,123
4,372
3,360
3,718
403
1,346
215
12,476
4,512
3,530
3,571
489
1,376
9
10
11
12
13
14
By major type of credit:
Automobile
Commercial banks. .
Indirect paper
Direct loans
Credit unions
Finance companies..
63,743
37,886
20,576
17,310
14,688
11,169
75,641
46,363
25,149
21,214
16,616
12,662
88,986
53,028
29,336
23,692
19,486
16,472
7,595
4,541
2,505
2,036
1,667
1,387
7,652
4,639
2,554
2,085
1,629
1,384
7,744
4,660
2,562
2,098
1,632
1,452
7,542
4,479
2,519
1,960
1,641
1,422
7,501
4,345
2,384
1,961
1,643
1,513
7,787
4,503
2,422
15
16
17
18
Revolving
Commercial banks. .
Retailers
Gasoline companies.
43,934
30,547
13,387
86,756
38,256
33,883
14,617
104,587
51,531
36,931
16,125
9.062
4,451
3,260
1,351
8,700
4,320
3,081
1,299
9,028
4,346
3.365
1,317
9,006
4,457
3,203
1,346
8,846
4,475
3,036
1,335
9,176
4,702
3,098
1,376
19
20
21
22
23
Mobile home
Commercial banks.
Finance companies.
Savings and loans..
Credit unions
4,859
3,064
702
929
164
5,425
3,466
643
1,120
196
6,067
3,704
510
327
73
90
509
335
78
78
531
310
75
127
19
494
297
77
100
20
604
352
73
154
25
486
280
77
108
21
24
25
26
27
28
29
30
Other
Commercial banks
Finance companies
Credit unions
Retailers
Savings and loans
Mutual savings banks.
98,492
25,900
24,258
14,407
29,447
2,969
1,511
86,249
29,811
28,684
17,216
5,250
3,365
1,923
98,934
34,702
33,125
20,299
4,688
3,811
2,309
8,495
2,890
2,873
1,699
515
303
215
8,807
3,010
3,019
1,733
482
412
151
,765
,991
,869
,791
473
381
260
1 Total
886
1,239
238
20
8,398
3.063
2,763
1,758
292
289
233
200
18
8,161
2,893
2,799
1,624
396
249
200
8.366
2,939
2,821
1,728
360
308
210
4,605
3,401
3,518
566
1,335
151
260
2,081
1,718
1,566
Liquidations2
189,381
218,793
253,508
21,358
21,556
22,037
21,857
22,384
22,115
22,100
32
33
34
35
36
37
38
By major holder:
Commercial banks
Finance companies
Credit unions
Retailers i
Savings and loans
Gasoline companies. ..
Mutual savings banks.
86,605
33,183
23,756
28,388
2,813
13,263
1,373
99,251
36,041
27,592
36,479
3,374
14,485
1,571
118,907
41,042
31,689
40,233
4,009
15,849
1,779
9,995
3,599
2,648
3,318
322
1,331
145
10,087
3,590
2,758
3,333
317
1,318
153
10,470
3,612
2,766
3,383
328
1,318
160
10,409
3,525
2,721
3,390
309
1,337
166
10,565
3,742
2,757
3,403
439
1,319
159
10,551
3,494
2,751
3,385
401
1,377
156
10,441
3,581
2,753
3,416
401
1,355
153
39
40
41
42
43
44
By major type of credit:
Automobile
Commercial banks . .
Indirect paper. . ..
Direct loans
Credit unions
Finance companies..
53,278
31,552
17,834
13,718
12,191
9,535
60,437
36,407
19,842
16,565
13,755
10,275
69,429
42,041
22,865
19,176
15,618
11,770
5,953
3,512
1,918
1,594
1,318
1,123
5,941
3,598
1,928
1,670
1,354
989
6,140
3,703
2,047
1,656
1,345
1,092
6,010
3,631
2,002
1,629
1,328
1,051
6,126
3,586
2,030
1,556
1,342
1,198
6,032
3,664
1,982
1,682
1,354
1,014
6,053
3,598
1,921
1,677
1,347
1,108
45
46
47
48
Revolving
Commercial banks. .
Retailers
Gasoline companies.
41,764
28,501
13,263
80,508
34,241
31,782
14,485
96,811
45,471
35,491
15,849
8,107
3,850
2,926
1,331
8,100
3,822
2,960
1,318
8,291
3,988
2,985
1,318
8,384
4,077
2,970
1,337
8,500
4,138
3,043
1,319
8,511
4,146
2,988
1,377
8,555
4,204
2,996
1,355
49
50
51
52
53
Mobile home
Commercial banks.
Finance companies.
Savings and loans..
Credit unions
4,719
2,994
884
737
104
4,860
3,079
832
823
126
5,170
3,278
812
929
151
440
277
72
78
13
426
270
67
76
13
452
290
68
81
13
422
266
71
73
12
579
377
75
108
19
411
261
62
74
14
431
274
63
81
13
54
55
56
57
58
59
Other
Commercial banks
Finance companies
Credit unions
Retailers
Savings and loans
Mutual savings banks.
89,620
23,558
22,764
11,461
28,388
2,076
1,373
72,988
25,524
24,934
13,711
4,697
2,551
1,571
82,098
28,117
28,460
15,920
4,742
3,080
1,779
6,858
2,356
2,404
1,317
392
244
145
7,089
2,397
2,534
1,391
373
241
153
7,154
2,489
2,452
1,408
398
247
160
7,041
2,435
2,403
1,381
420
236
166
7,179
2,464
2,469
1,396
360
331
159
7,161
2,480
2,418
1,383
397
327
156
7,061
2,365
2,410
1,393
420
320
153
31 Total.
60
1
Includes auto dealers and excludes 30-day charge credit held by
travel
and entertainment companies.
2
Monthly figures are seasonally adjusted.
A Consumer installment credit series have been revised from 1943,
effective Dec. 7, 1978. Information is available from Mortgage and Consumer Finance Section, Division of Research and Statistics.
A44
1.57
DomesticNonfinancialStatistics • February 1979
F U N D S RAISED IN U.S. CREDIT MARKETS
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
Transaction category, or sector
1973
1974
1975
1976
1975
1977
HI
1976
H2
1977
1978
HI
H2
HI
H2
HI
Nonfinancial sectors
1 Total funds raised
2
Excluding equities
By sector and instrument:
3 U.S. government
4
Public debt securities
5
Agency issues and mortgages
6 All other nonfinancial sectors
7
Corporate equities
8
Debt instruments
9
Private domestic nonfinancial sectors. .
10
Corporate equities
11
Debt instruments
12
Debt capital instruments
13
State and local obligations....
14
Corporate bonds
Mortgages:
15
Home
16
Multifamily residential
17
Commercial
18
Farm
19
Other debt instruments
20
Consumer credit
21
Bank loans n.e.c
22
Open market paper
23
Other
203.8
196.1
188.8
184.9
208.1
198.0
272.5
261.7
340.5
337.4
177.5
167.0
238.9
229.2
259.6
245.9
285.6
277.5
302.2
301.0
378.9
373.8
371.4
371.3
8.3
7.9
.4
195.5
7.7
187.9
189.3
7.9
181.4
105.0
14.7
9.2
11.8
12.0
-.2
177.0
3.8
173.1
161.6
4.1
157.5
98.0
16.5
19.7
85.4
85.8
-.4
122.7
10.1
112.6
109.5
9.9
99.6
97.8
15.6
27.2
69.0
69.1
—. 1
203.5
10.8
192.6
182.8
10.5
172.3
126.8
19.0
22.8
56.8
57.6
-.9
283.8
3.1
280.6
271.4
2.7
268.7
181.1
29.2
21.0
78.3
79.1
-.8
99.2
10.5
88.7
89.1
10.3
78.8
93.7
11.1
34.5
92.5
92.6
—. 1
146.4
9.7
136.6
130.0
9.5
120.5
101.9
20.0
19.9
73.5
73.4
.1
186.0
13.6
172.4
168.5
13.3
155.2
117.8
19.3
22.2
64.5
64.9
-.3
221.0
8.1
213.0
197.2
7.7
189.5
135.9
18.7
23.5
42.6
43.1
-.6
259.6
1.2
258.5
252.1
.5
251.6
163.4
29.3
16.0
71.0
72.2
-1.2
307.9
5.1
302.8
290.7
4.9
285.8
198.9
29.0
26.0
58.8
59.7
-.9
312.6
.l
312.5
298.8
.9
297.9
182.7
29.0
18.4
46.4
10.4
18.9
5.5
76.4
23.8
39.8
2.5
10.3
34.8
6.9
15.1
5.0
59.6
10.2
29.0
6.6
13.7
39.5
11.0
4.6
1.8
9.4
-14.0
-2.6
9.0
63.7
1.8
13.4
6.1
45.5
23.6
3.5
4.0
14.4
96.4
7.4
18.4
8.8
87.6
35.0
30.6
2.9
19.0
33.9
.1
9.1
5.1
-14.9
2.2
-23.7
-1.9
8.5
45.1
-.1
12.9
4.1
18.6
16.6
-4.3
-3.2
9.5
56.9
.6
13.8
4.9
37.4
22.9
-2.7
5.6
11.6
70.5
3.1
12.9
7.3
53.6
24.3
9.6
2.4
17.3
88.5
6.4
14.2
8.9
88.2
35.7
34.0
3.5
15.0
104.2
8.4
22.6
8.7
86.9
34.4
27.2
2.4
23.0
91.4
9.7
24.5
9.8
115.2
44.8
47.1
5.2
18.1
24
25
26
27
28
29
189.3
13.2
80.9
9.7
12.8
72.7
161.6
15.5
49.2
7.9
7.4
81.8
109.5
13.2
48.6
8.7
2.0
37.0
182.8
18.5
89.9
11.0
5.2
58.2
271.4
25.9
139.6
14.7
12.6
78.7
89.1
8.8
37.1
8.5
-1.0
35.8
130.0
17.5
60.2
9.0
5.1
38.2
168.5
17.6
82.7
9.9
4.0
54.3
197.2
19.5
97.1
12.1
6.4
62.2
252.1
22.7
131.2
15.5
12.8
69.8
290.7
29.0
148.0
13.8
12.3
87.6
298.8
22.1
147.7
15.8
20.7
92.5
6.2
-.2
6.4
1.0
2.8
.9
1.7
15.3
-.2
15.6
2.1
4.7
7.3
1.5
13.2
.2
13.0
6.2
3.7
.3
2.8
20.7
.3
20.4
8.5
6.6
1.9
3.3
12.3
.4
11.9
5.0
1.6
2.4
3.0
10.0
.1
9.9
5.7
1.6
-.8
3.4
16.4
.2
16.2
6.8
5.9
1.4
2.2
17.5
.3
17.2
7.4
5.4
1.5
2.9
23.8
.3
23.5
9.7
7.9
2.4
3.6
7.5
.6
6.9
4.4
-3.2
2.7
3.1
17.2
.2
17.0
5.6
6.4
2.2
2.9
13.8
-.8
14.6
4.9
2.9
3.6
3.2
30
31
32
33
34
35
36
By borrowing sector
State and local governments
Households
Farm
Nonfarm noncorporate
Corporate
Foreign
Corporate equities
Debt instruments
Bonds
Bank loans n.e.c
Open market paper
U.S. government loans
*
Financial sectors
37 Total funds raised
By instrument:
U.S. government related
Sponsored credit agency securities
Mortgage pool 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 RPs
Loans from FHLBs
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
By sector:
Sponsored credit agencies
Mortgage pools
Private financial sectors
Commercial banks
Bank affiliates
Savings and loan associations
Other insurance companies
Finance companies
REITs
Open-end investment companies
Money market funds
57.6
36.4
11.7
29.2
58.8
12.4
10.9
27.9
30.5
61.5
56.2
101.5
19.9
16.3
3.6
23.1
16.6
5.8
.7.
13.3
.3
13.0
2.1
-1.3
4.6
.9
6.7
13.5
2.3
10.3
.9
-1.9
.6
-2.5
2.9
2.3
-3.6
-.1
-4.0
18.6
3.3
15.7
- .4
10.6
1.0
9.6
5.8
2.1
-3.7
7.3
-2.0
26.3
7.0
20.5
-1.2
32.6
.6
32.0
10.1
3.1
12.9
3.1
9.2
.6
-2.0
.6
-2.6
4.0
3.1
-2.9
-5.4
-1.4
18.2
4.1
14.2
25.0
9.5
17.9
-2.3
36.5
.5
36.0
10.1
3.3
-2.3
21.4
3.4
40.1
24.1
16.0
9.7
-.2
10.0
6.4
1.5
-2.6
6.2
-1.5
19.0
2.6
17.2
— .7
11.5
2.3
9.2
5.2
2.7
-4.8
8.5
-2.5
27.5
4.4
23.1
14.4
4.3
14.2
1.6
11.5
1.1
— 1.8
.6
-2.4
1.9
1.4
-4.3
5.1
-6.5
28.7
.7
28.0
10.1
2.9
2.3
7.4
5.2
61.4
1.1
60.3
8.5
2.4
.4
35.0
14.1
36.4
17.3
5.8
13.3
-5.6
3.5
6.3
.9
6.0
.6
-.7
2.4
11.7
3.2
10.3
-1.9
-1.4
.3
-2.2
1.0
.6
-1.4
— 1
1.3
29.2
2.9
15.7
10.6
7.5
-.8
58.8
5.8
20.5
32.6
4.8
1.3
11.9
.9
16.9
-2.4
-1.0
.2
12.4
2.7
11.5
-1.8
3.9
.9
-7.2
.9
-2.2
-1.5
.8
2.6
10.9
3.8
9.2
-2.0
-6.7
-.3
2.7
1.0
3.4
-1.2
-1.0
1
27.9
4.0
14.2
9.7
9.0
-1.3
.1
.9
6.0
-2.1
-2.4
-.5
30.5
1.8
17.2
11.5
6.0
-.3
_ i
'.9
6.9
-2.7
.4
.5
61.5
7.1
17.9
36.5
10.0
1.3
10.6
.9
17.4
-2.5
-.8
— .5
56.2
4.4
23.1
28.7
-.4
1.2
13.1
1.0
16.4
-2.2
-1.2
.9
101.5
24.1
16.0
61.4
12.2
5.8
19.6
1.0
18.7
-1.2
-.6
5.9
287.5
-2.4
15.8
274.1
91.9
19.3
36.1
77.7
22.9
.1
13.3
12.9
316.0
.4
9.9
305.7
84.3
18.7
38.4
96.4
24.3
12.6
13.3
17.7
363.7
-.8
2.5
362.0
70.0
29.3
30.5
121.2
35.7
28.4
27.6
19.2
435.0
-1.2
7.0
429.2
98.6
29.0
41.7
146.7
34.4
35.9
11.9
31.0
472.9
-.6
1.7
471.7
99.0
29.0
31.8
137.6
44.8
50.4
43.7
35.4
37.7
1.5
36.2
3.5
-1.2
8.9
17.8
7.2
57.6
16.3
3.6
37.7
14.1
2.2
6.0
.5
9.4
6.5
-1.2
*
.9
6.4
-2.4
-1.0
*
*
*
All sectors
61 Total funds raised, by instrument
62
Investment company shares
63
Other corporate equities
64
Debt instruments
65
U.S. government securities
66
State and local obligations
67
Corporate and foreign bonds
68
Mortgages
69
Consumer credit
70
Bank loans n.e.c
71
Open market paper and RPs
72
Other loans
261.4
-1.2
10.4
252.3
28.3
14.7
13.6
79.9
23.8
51.6
21.2
19.1
225.1
-.7
4.8
221.0
34.3
16.5
23.9
60.5
10.2
38.3
14.8
22.6
219.8
-.1
10.8
209.1
98.2
15.6
36.4
57.2
9.4
-13.9
-2.4
8.7
301.7
-1.0
12.9
289.8
88.1
19.0
37.2
87.1
23.6
6.4
13.3
15.3
399.4
-1.0
4.8
395.6
84.3
29.2
36.1
134.0
35.0
32.2
19.8
25.1
189.8
.8
10.3
178.8
91.5
11.1
42.1
49.4
2.2
-26.4
2.4
6.5
249.8
-1.0
11.3
239.5
104.9
20.0
30.7
65.0
16.6
-1.3
-7.3
10.9
Flow of Funds
1.58
A45
DIRECT A N D INDIRECT SOURCES OF F U N D S TO CREDIT MARKETS
Billions of dollars, except as noted; quarterly data are at seasonally adjusted annual rates.
1976
1975
Transaction category, or sector
1 Total funds advanced in credit markets to
nonfinancial sectors
2
3
4
5
6
7
8
9
10
11
By public agencies and foreign:
Total net advances
U.S. government securities
Residential mortgages
FHLB advances to S&Ls
Other loans and securities
Totals advanced, by sector
U.S. government
Sponsored credit agencies
Monetary authorities
Foreign
Agency borrowing not included in line 1 . .
Private domestic funds advanced
12 Total net advances
13
U.S. government securities
14
State and local obligations
15
Corporate and foreign bonds
16
Residential mortgages
17
Other mortgages and loans
18
19
20
21
22
23
LESS : F H L B a d v a n c e s
Private financial intermediation
Credit market funds advanced by private
financial institutions
Commercial banking
Savings institutions
Insurance and pension funds
Other finance
24 Sources of funds
25
Private domestic deposits
26
Credit market borrowing
1973
1974
1975
1976
1977
1978
1977
HI
H2
HI
H2
HI
H2
HI
337.4
167.0
229.2
245.9
277.5
301.0
373.8
371.3
196.1
184.9
198.0
261.7
34.1
52.6
44.3
54.5
85.4
51.9
36.7
49.7
59.3
69.3
101.6
102.9
9.5
8.2
7.2
9.2
11.9
14.7
6.7
19.4
22.5
16.2
-4.0
9.5
26.8
12.8
-2.0
16.9
40.2
20.4
4.3
20.5
31.2
16.8
-6.5
10.4
13.7
15.7
-1.4
8.7
24.4
11.8
-1.5
15.0
29.3
13.7
-2.5
18.8
27.2
20.0
3.4
18.6
53.2
20.9
5.2
22.4
42.6
22.9
14.1
23.4
2.8
21.4
9.2
.6
19.9
9.7
25.6
6.2
11.2
23.1
15.1
14.5
8.5
6.1
13.5
8.9
20.6
9.8
15.2
18.6
11.8
26.9
7.1
39.5
26.3
15.8
16.0
7.0
13.0
14.2
14.3
13.1
10.1
-.8
12.9
6.3
20.0
13.7
9.7
18.2
11.5
21.2
6.0
20.6
19.0
6.1
10.2
26.4
25.0
17.6
27.2
4.1
52.7
27.5
19.2
44.3
12.9
26.5
40.1
182.0
155.3
167.3
225.7
278.2
129.3
205.4
214.4
237.1
256.8
299.7
308.5
18.8
14.7
10.0
48.4
97.2
7.2
22.4
16.5
20.9
26.9
75.4
6.7
75.7
15.6
32.8
23.2
16.1
-4.0
61.3
19.0
30.5
52.7
60.4
-2.0
44.1
29.2
22.3
83.2
103.7
4.3
60.2
11.1
40.0
17.1
-5.7
-6.5
91.2
20.0
25.6
29.2
37.9
-1.4
67.5
19.3
28.6
45.6
51.9
-1.5
55.1
18.7
32.3
59.7
68.9
-2.5
42.8
29.3
17.2
74.9
96.0
3.4
45.4
29.0
27.3
91.6
111.5
5.2
56.4
29.0
21.7
78.0
137.4
14.1
165.4
126.2
119.9
191.2
249.6
101.2
138.7
174.4
207.9
241.1
258.0
279.8
86.5
36.9
23.9
18.0
64.5
26.9
30.0
4.7
27.6
52.0
41.5
-1.1
58.0
71.4
51.7
10.1
85.8
84.8
62.0
16.9
14.8
49.3
38.1
- . 9
40.5
54.6
44.9
-1.3
46.6
70.5
53.2
4.2
69.4
72.4
50.2
15.9
81.1
85.3
60.3
14.5
90.5
84.3
63.7
19.4
115.8
77.1
69.3
17.7
165.4
86.6
126.2
69.4
119.9
191.2
249.6
101.2
138.7
174.4
207.9
241.1
258.0
279.8
36.2
13.0
90.6
-2.5
121.5
9.6
136.0
32.0
89.9
-2.4
91.3
-2.6
108.3
10.0
134.6
9.2
127.0
36.0
145.0
28.0
119.4
60.3
78.2
.1
26.1
42.5
43.8
31.9
60.1
81.6
13.7
50.0
56.1
64.1
85.1
100.1
5.8
-1.0
18.4
19.4
16.8
-5.1
26.0
6.0
.9
-1.7
29.6
3.1
5.1
—. 1
34.8
20.3
11.6
4.3
48.0
17.8
-.5
-3.8
27.4
-9.4
2.4
.4
31.7
15.6
.7
2.3
35.8
17.2
9.5
-2.5
33.8
23.4
-1.8
45.5
33.7
22.4
10.4
50.4
1.9
2.1
- . 8
55.4
43.4
52.8
42.2
44.9
44.1
60.6
25.7
64.1
50.0
38.4
51.6
69.6
19.2
5.4
1.3
18.3
8.6
17.5
9.3
4.7
2.4
8.2
23.0
8.3
8.0
- . 8
6.4
19.6
6.8
2.1
4.1
11.5
24.6
9.1
1.1
9.5
16.2
6.0
5.8
10.7
-1.8
4.9
39.9
10.8
5.3
.2
7.8
25.0
7.6
2.9
4.8
9.7
14.1
6.0
1.3
3.4
13.5
14.1
8.2
.4
13.0
15.9
35.2
10.1
1.8
6.0
16.5
59.0
35.8
11.6
-2.5
28.6
17.6
38 Deposits and currency
39
Time and savings accounts
40
Large negotiable CDs
41
Other at commercial banks
42
At savings institutions
90.6
76.1
66.7
96.8
84.8
128.8
112.2
144.3
120.1
96.4
75.6
97.2
93.9
114.3
99.5
143.3
125.0
132.6
110.5
18.1
29.6
28.5
18.8
26.1
21.8
-14.1
39.4
59.4
-14.4
58.1
68.5
9.3
41.7
69.1
-27.8
40.5
62.9
-.3
38.2
56.0
-19.8
52.0
67.3
-9.1
64.3
69.8
-4.4
45.3
69.6
156.0
129.7
22.9
43
44
45
14.4
8.9
12.0
16.6
24.2
20.8
3.3
14.8
18.3
10.5
3.9
2.6
6.3
5.8
6.2
9.3
7.3
15.9
8.3
14.3
6.5
-2.6
5.9
8.9
6.0
9.6
8.6
143.4
117.8
141.6
172.9
204.9
122.1
161.3
164.3
20.8
25.3
31.1
16.0
20.2
27
28
29
30
31
Other sources
Foreign funds
Treasury balances
Insurance and pension reserves
Other, net
Private domestic nonfinancial investors
32 Direct lending in credit markets
33
U.S. government securities
34
State and local obligations
35
Corporate and foreign bonds
36
Commercial paper
37
Other
Money
Demand deposits
Currency
46 Total of credit market instruments, deposits and currency
47
48
75.7
129.5
110.9
38.2
68.7
11.5
44.5
54.9
22.1
26.3
18.6
16.5
5.6
15.3
11.0
8.5
10.1
181.6
184.2
225.6
218.5
21.4
23.0
27.2
27.7
Public support rate (in per cent)
Private financial intermediation (in per
cent)
Total foreign funds
17.4
28.5
22.4
90.9
6.4
81.3
28.0
71.7
7.1
84.7
20.3
89.7
51.1
78.3
12.5
67.5
1.6
81.3
10.4
87.7
30.1
93.9
27.1
86.1
75.1
90.7
28.5
MEMO: Corporate equities not included
above
50 Total net issues
51
Mutual fund shares
52
Other equities
53 Acquisitions by financial institutions
54 Other net purchases
9.2
-1.2
10.4
13.3
-4.1
4.1
-.7
4.8
5.8
-1.6
10.7
11.9
-1.0
12.9
12.5
-.7
3.8
-1.0
4.8
6.2
-2.4
11.1
.8
10.3
11.5
- . 4
10.3
-1.0
11.3
7.8
2.5
13.4
-2.4
15.8
13.1
.3
10.4
.4
9.9
12.0
-1.6
1.7
- . 8
2.5
6.1
-4.4
5.8
-1.2
7.0
6.3
-.5
1.1
- . 6
1.7
1.6
-.5
49
— l
10.8
9.7
1.0
NOTES BY LINE NUMBER.
1.
2.
6.
11.
12.
17.
25.
26.
28.
Line 2 of p. A-44.
Sum of lines 3-6 or 7-10.
Includes farm and commercial mortgages.
Credit market funds raised by federally sponsored credit agencies,
and net issues of federally related mortgage pool securities. Included
below in lines 3, 13, and 33.
Line 1 less line 2 plus line 11. Also line 19 less line 26 plus line 32.
Also sum of lines 27, 32, 39, and 44.
Includes farm and commercial mortgages.
Sum of lines 39 and 44.
Excludes equity issues and investment company shares. Includes
line 18.
Foreign deposits at commercial banks, bank borrowings from foreign
branches, and liabilities of foreign banking agencies to foreign affiliates.
29. Demand deposits at commercial banks.
30. Excludes net investment of these reserves in corporate equities.
31. Mainly retained earnings and net miscellaneous liabilities.
32. Line 12 less line 19 plus line 26.
33-37. Lines 13-17 less amounts acquired by private finance. Line 37
includes mortgages.
45. Mainly an offset to line 9.
46. Lines 32 plus 38, or line 12 less line 27 plus line 45.
47. Line 2/line 1.
48. Line 19/line 12.
49. Sum of lines 10 and 28.
50. 52. Includes issues by financial institutions.
NOTE. Full statements for sectors and transaction types quarterly,
and annually for flows and for amounts outstanding, may be obtained
from Flow of Funds Section, Division of Research and Statistics, Board
of Governors of the Federal Reserve System, Washington, D.C. 20551.
A46
2.10
Domestic Nonfinancial Statistics • February 1979
NONFINANCIAL BUSINESS ACTIVITY
Selected Measures
1967 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted.
1977
1976
Measure
1979
1978
1978?
June
July
Aug.
Sept.
Oct. r
Nov.f
Dec.p
Jan. e
129.8
137.1
145.1
144.9
146.1
147.1
147.8
148.7
149.5
150.5
150.7
2
3
4
5
6
7
Market groupings:
Products, total
Final, total
Consumer goods
Equipment
Intermediate
Materials
129.3
127.2
136.2
114.6
137.2
130.6
137.1
134.9
143.4
123.2
145.1
136.9
144.3
141.3
147.4
133.0
155.1
146.4
144.0
141.1
147.0
133.0
154.7
146.4
145.0
142.2
147.7
134.7
155.6
147.9
146.2
143.3
148.4
136.3
156.4
148.6
146.5
143.7
149.0
136.4
157.0
149.7
147.0
144.1
149.2
137.0
158.0
151.4
147.6
144.6
149.8
137.3
159.0
152.6
148.7
145.5
150.7
138.3
160.7
153.3
149.0
145.7
150.8
138.5
161.4
153.3
8
Industry groupings:
Manufacturing
129.5
137.1
145.6
145.5
146.7
147.6
148.7
149.5
150.4
151.5
151.6
80.2
80.4
82.4
81.9
84.2
84.9
84.3
85.1
84.7
85.7
85.0
85.9
85.3
86.3
85.5
87.1
85.8
87.6
86.1
87.8
85.9
87.5
Capacity utilization (percent)1
10
Industrial materials industries
2
190.2
253.2
286.0
249.0
286.0
289.0
300.0
319.0
285.0
303.0
n.a.
12 Nonagricultural employment, total3
13
Goods-producing, total
14
Manufacturing, total
15
Manufacturing, production-worker
16 Service-producing
120.7
r
100.2
97.7
95.3
131.9
125.0
104.2
101.0
98.6
136.4
130.3
108.9
104.5
102.1
142.1
130.7
109.3
104.5
102.0
142.5
130.8
109.4
104.4
101.8
142.5
130.9
109.2
104.3
101.6
142.8
131.0
109.3
104.3
101.6
142.9
131.6
110.1
105.1
102.4
143.4
132.3
111.0
105.9
103.5
144.0
132.6
111.7
106.6
104.2
144.1
133.1
112.0
106.9
104.7
144.7
17 Personal income, total4
18 Wages and salary disbursements
19
Manufacturing
r
220.4
189.3
177.1
244.0
230.1
198.6
272.5
257.5
223.5
270.6
256.9
222.3
274.4
259.2
224.9
276.3
260.0
224.5
278.4
262.0
226.4
282.2
266.1
230.3
285.0
268.8
234.5
288.0
271.1
236.8
n.a.
n.a.
n.a.
217.5
•-239.3
266.5
21 Retail sales s
203.5
224.4
247.9
246.3
244.9
251.7
253.5
257.5
262.0
265.3
266.3
Prices:6
22
Consumer7
23
Producer finished goods 8
170.5
170.3
181.5
180.6
n.a.
n.a.
195.3
194.5
196.7
'196.0
197.8
195.3
199.3
196.9
200.9
199.7
202.0
200.6
202.9
202.4
n.a.
n.a.
11 Construction contracts
r
20 Disposable personal income
1
Ratios of indexes of production to indexes of capacity. Based on data
from Federal Reserve, McGraw-Hill Economics Department, and Department
of Commerce.
2
Index of dollar value of total construction contracts, including
residential, nonresidential, and heavy engineering, from McGraw-Hill
Informations
Systems Company, F. W. Dodge Division.
3
The establishment survey data in this table have been revised to conform to the industry definitions of the 1972 Standard Industrial Classification (SIC) Manual and to reflect employment benchmark levels for
March 1977. In addition, seasonal factors for these data have been
revised, based on experience through May 1978. Based on data in Employment and Earnings (U.S. Department of Labor). Series covers employees
only, excluding personnel in the Armed Forces.
4
Based on data in Survey of Current Business U.S. Department of Commerce). Series for disposable income is quarterly.
2.11
r
277.6
269.7
5 Based on Bureau of Census data published in Survey of Current
Business (U.S. Department of Commerce).
6
Data without seasonal adjustment, as published in Monthly Labor
Review (U.S. Department of Labor). Seasonally adjusted data for changes
in the price indexes may be obtained from the Bureau of Labor Statistics,
U.S.
Department of Labor,
7
Beginning Jan. 1978, based on new index for all urban consumers.
8 Beginning with the November 1978 BULLETIN, producer price data
in this table have been changed to the BLS series for producer finished
goods. The previous data were producer prices for all commodities.
NOTE. Basic data (not index numbers) for series mentioned in notes
3, 4, and 5, and indexes for series mentioned in notes 2 and 6 may also be
found in the Survey of Current Business (U.S. Department of Commerce).
Figures for industrial production for the last two months are preliminary
and estimated, respectively.
OUTPUT, CAPACITY, A N D CAPACITY UTILIZATION
Seasonally adjusted
1978
1978
1978
Series
Q2
Ql
Q4 r
Q3
Output (1967 = 100)
Ql
Q2
Q3
Q4
Capacity (percent of 1967 output)
Ql
Q2
Q3
Q4 r
Utilization rate (percent)
1 Manufacturing
139.8
144.4
147.7
150.5
170.3
172.0
173.7
175.4
82.1
84.0
85.0
85.8
2
3
148.2
135.4
154.1
139.3
158.2
142.1
161.6
144.5
176.8
166.9
178.5
168.5
180.2
170.2
181.9
171.8
83.8
81.1
86.3
82.7
87.8
83.5
88.8
84.1
139.2
145.1
148.7
152.4
170.4
171.7
173.0
174.2
81.7
84.5
86.0
87.5
174.0
145.8
182.3
190.8
143.5
153.6
226.6
147.2
175.2
146.1
184.4
193.1
144.1
154.8
230.1
147.8
176.3
146.5
186.5
195.4
144.7
155.8
233.5
148.4
177.4
146.8
188.5
197.5
145.2
156.9
236.8
148.9
79.3
75.8
86.7
85.5
80.3
88.9
86.0
80.9
82.2
80.4
88.5
86.8
81.2
90.3
87.5
84.9
85.3
85.1
87.5
86.2
81.0
86.5
87.5
85.6
87.5
88.2
88.4
86.9
82.0
87.2
88.2
86.2
Primary processing
Advanced processing
4 Materials
5
6
7
8
9
10
11
12
Durable goods
Basic metal
Nondurable goods
Textile, paper, and chemical
Textile
Paper
Chemical
Energy
137.9
110.5
158.0
163.1
115.3
136.5
194.9
119.1
144.0
117.5
163.2
167.7
117.1
139.7
201.4
125.5
150.4
124.6
163.2
168.4
117.3
134.8
204.4
127.0
155.2
129.5
166.6
171.7
119.1
136.9
208.8
128.4
Labor Market
2.12
A47
LABOR FORCE, EMPLOYMENT, A N D UNEMPLOYMENT
Thousands of persons; monthly data are seasonally adjusted. Exceptions noted.
Category
1976
1977
1978
1978
July
Aug.
1979
Sept.
Oct.
Nov.
Dec.
Jan.
Household survey data
1 Noninstitutional population1
2 Labor force 1(including Armed
Forces)
3 Civilian labor force
Employment :
4
Nonagricultural industries2
5
Agriculture
Unemployment:
6
Number
7
Rate (percent of civilian labor
force)
8 Not in labor force
156,048
158,559
161,058
161,148
161,348
161,570
161,829
162,033
162,250
162,448
96,917
94,773
99,534
97,401
102,537
100,420
'102,738
'100,622
'102,785
'100,663
'103,097
'100,974
'103,199
'101,077
'103,745
'101,628
103,975
'101,867
104,277
102,183
84,188
3,297
87,302
3,244
91,031
3,342
'91,069
'3,377
'91,372
'3,351
'91,604
'3,406
'91,867
'3,374
'92,476
'3,275
92,468
3,387
93,068
3,232
7,288
6,855
6,047
'6,176
'5,940
'5,964
'5,836
'5,877
6,012
5,883
7.7
7.0
6.0
6.1
5.9
5.8
5.8
5.9
5.8
59,025
58,521
'58,630
'58,288
58,275
58,170
'87,036
'20,601
'903
4,368
'4,947
'19,701
'4,774
'16,270
15,472
87,248
20,723
905
4,395
4,963
19,680
4,792
16,312
15,478
*87,573
2*20,790
2*909
2*4,418
2*4,978
2*19,826
2*4,816
2*16,350
2*15,491
59,130
'58,410
'58,563
r
5.9
'58,473
Establishment survey data
9 Nonagricultural payroll employment3
10
Manufacturing
11
Mining
12 Contract construction
13 Transportation and public utilities.
14 Trade
15 Finance
16 Service
17 Government
79,382
18,997
779
3,576
4,582
17,755
4,271
14,551
14,871
82,256
19,647
809
3,833
4,696
18,492
4,452
15,249
15,079
P85,760
2*20,331
P 837
2*4,213
2*4,858
^19,392
P4,676
2*15,976
2*15,478
1
Persons 16 years of age and over. Monthly figures, which are based
on sample data, relate to the calendar week that contains the 12th day;
annual data are averages of monthly figures. By definition, seasonality
does not exist in population figures. Based on data from Employment
and2 Earnings (U.S. Dept. of Labor).
Includes self-employed, unpaid family, and domestic service workers.
3
Data include all full- and part-time employees who worked during,
or received pay for, the pay period that includes the 12th day of the
month, and exclude proprietors, self-employed persons, domestic servants,
86,033
20,302
882
4,317
4,827
19,469
4,690
15,989
15,557
86,149
20,278
887
4,298
4,846
19,523
4,707
16,074
15,536
86,163
20,286
887
4,298
4,855
19,546
4,719
16,127
15,445
4
86,573
20,436
893
4,341
4,922
19,632
4,737
16,169
15,443
unpaid family workers, and members of the Armed Forces. Data are
adjusted to the February 1977 benchmark. Based on data from Employment
and Earnings (U.S. Dept. of Labor).
4
The establishment survey data in this table have been revised to
conform to the industry definitions of the 1972 Standard Industrial
Classification (SIC) Manual and to reflect employment benchmark
levels for March 1977. In addition, seasonal factors for these data have
been revised, based on experience through May 1978.
A48
2.13
Domestic Nonfinancial Statistics • February 1979
INDUSTRIAL PRODUCTION
Indexes and Gross Value
Monthly data are seasonally adjusted.
Grouping
1967
portion
1978
averagep
1978
1977
Nov.
Dec.
Jan.
1 Total index
8
9
10
11
12
Consumer goods
Durable consumer goods
Automotive products
Autos and utility vehicles
Autos
Auto parts and allied goods
13
14
15
16
17
Home goods
Appliances, A/C, and TV
Appliances and TV
Carpeting and furniture
Miscellaneous home goods
18
19
20
21
Nondurable consumer goods
Clothing
Consumer staples
Consumer foods and tobacco
60.71 144.3 139.5
47.82 141.3 137.0
27.68 147.4 145.2
20.14 133.0 125.8
12.89 155.1 148.4
39.29 146.4 139.0
Oct. r
Nov.
Dec.33 Jan."
140.3
137.6
145.8
126.2
150.4
138.8
138.5
134.9
141.8
125.4
151.6
139.2
144.0
141.1
147.0
133.0
154.7
146.4
145.0
142.2
147.7
134.7
155.6
147.9
146.2
143.3
148.4
136.3
156.4
148.6
146.5
143.7
149.0
136.4
157.0
149.7
147.0
144.1
149.2
137.0
158.0
151.4
147.6
144.6
149.8
137.3
159.0
152.6
148.7
145.5
150.7
138.3
160.7
153.3
149.0
145.7
150.8
138.5
161.4
153.3
146.5
157.5
145.5
127.4
187.8
160.6
179.9
173.4
149.8
193.9
160.9
182.2
176.7
152.7
196.1
161.5
182.1
175.6
151.1
198.0
161.1
181.1
173.7
145.9
200.1
155.2
173.6
167.6
147.5
188.9
155.8
172.4
165.5
143.6
190.4
160.3
178.3
170.0
144.4
199.8
161.6
185.6
180.5
154.2
199.1
162.0
189.4
185.7
159.7
198.5
161.9
185.1
179.5
151.8
199.0
5.06
1.40
1.33
1.07
2.59
147.8
132.5
134.5
164.3
149.3
145.0
131.4
133.0
160.0
146.3
146.6 140.3 149.7 148.9 150.0 150.2
132.8 116.1 139.0 133.7 133.9 134.4
134.6 117.4 141.0 136.8 135.6 136.9
161.5 159.1 166.0 168.5 167.9 169.0
147.7 145.9 148.8 149.1 151.3 150.8
148.2
128.7
129.9
168.0
150.6
146.8
124.3
125.4
164.9
151.3
148.8 149.7
129.8 131.4
130.3
166.3
151.9 152.8
141.8 139.9
126.9 118.3
145.9 145.9
137.9 136.5
141.6
124.8
146.3
139.0
142.4
125.1
147.3
140.2
143.1
126.6
147.8
140.8
144.4
128.9
148.8
141.2
144.3 144.9 146.2 146.7
128.3
148.8 149.2 i 5 0 . 7 151.4
140.4 141.0 142.6
155.2
186.5
119.8
149.7
158.5
156.6
187.4
121.4
151.5
161.7
154.8
185.5
118.0
150.8
159.0
155.5
186.7
117.5
151.9
159.9
155.9
188.0
117.3
152.0
160.1
157.4
190.1
118.2
153.3
160.9
158.5
191.9
116.7
155.4
162.8
159.0
191.8
117.5
156.6
160.0 160.7
193.0
117.7
157.7
153.5 154.0
142.6 143.0
206.7 208.3
118.7 118.2
142.1 143.7
152.6
144.3
211.1
118.8
146.1
161.8
150.9
227.3
122.8
149.2
163.8
151.9
228.9
122.6
152.8
165.4
152.8
228.1
123.9
154.6
165.8
152.7
226.3
124.4
154.8
166.9
152.9
226.5
125.0
154.0
167.2
151.9
223.8
124.2
153.4
168.4
152.2
223.0
124.7
155.1
5.86 175.8 165.9 166.9
3.26 208.4 197.4 198.8
1.93 133.6 118.9 121.1
.67 138.7 147.8 144.5
162.2
198.5
111.1
131.4
174.4
206.9
132.3
137.3
177.5
210.6
134.9
138.5
179.9 180.8 182.9
212.2 214.1 215.1
138.5 138.6 142.6
141.3 142.0 143.2
79.7
84.6
85.9
19.79 142.8 141.2
4.29
126.4
15.50 H7.6 145.3
8.33 140.1 136.7
27
28
29
30
31
Equipment
Business equipment
Industrial equipment
Building and mining equipment
Manufacturing equipment
Power equipment
12.63 161.9
6.77 149.9
1.44 223.5
3.85 121.9
1.47 151.0
Defense and space equipment
Sept.
158.8
178.5
172.5
148.5
193.7
7.17 156.3
2.63 187.1
1.92 118.1
2.62 153.4
1.45
36
Aug.
7.89
2.83
2.03
1.90
.80
Nonfood staples
Consumer chemical products
Consumer paper products
Consumer energy products
Residential utilities
Commercial transit, farm equipment...
Commercial equipment
Transit equipment
Farm equipment
July
100.00 145.1 139.3 139.7 138.8 144.9 146.1 147.1 147.8 148.7 149.5 150.5 150.7
22
23
24
25
26
32
33
34
35
June
Index (1967 == 100)
MAJOR MARKET
2 Products
3
Final products
4
Consumer goods
5
Equipment
6
Intermediate products
7 Materials
1978
7.51
84.5
155.1
186.9
118.5
149.9
155.6
79.3
79.5
87.1
87.1
86.7
168.5
153.1
223.2
125.6
156.2
185.1 187.0 186.2
215.3 216.0 217.4
147.5 151.2 146.2
145.8 149.0
87.2
87.6
88.4
Intermediate products
37
Construction supplies
38
Business supplies
39
Commercial energy products
6.42
6.47
1.14
Materials
Durable goods materials
Durable consumer parts
Equipment parts
Durable materials n.e.c
Basic metal materials
20.35
4.58
5.44
10.34
5.57
146.9
137.2
136.5
159.0 147.2
143.4 132.3
120.4 107.9
138.7
135.7
149.2
134.3
110.3
138.2
145.4 148.7 150.4
133.0 138.7 142.0 142.2
148.7 157.4 161.7 162.9
134.9 141.8 144.7 147.6
110.2 118.2 121.7 125.4
152.1
144.8
164.6
148.7
126.7
154.0
10.47
7.62
1.85
1.62
4.15
162.8
167.8
117.1
136.9
202.5
155.4
159.3
117.8
132.2
188.6
155.3
159.3
117.3
130.2
189.5
155.0
160.7
114.9
135.0
191.4
164.1
168.8
118.0
139.9
202.9
162.5
168.3
117.1
135.1
204.0
162.7
167.0
116.0
131.5
203.7
164.4
170.0
118.7
137.7
205.5
165.7 167.3
171.0 172.4
118.7 119.4
137.3 137.6
207.6 209.8
166.7 167.3
171.7 172.5
119.3
135.7
209.1
1.70
1.14
8.48
4.65
3.82
160.6
132.8
125.0
112.6
140.2
156.7
128.5
123.0
111.6
136.9
154.4
129.9
118.7
103.0
137.7
150.4
123.6
122.2
105.2
142.8
162.8
135.0
127.5
116.1
141.4
155.4
135.7
127.9
116.7
141.6
161.8
134.8
127.0
115.4
141.3
161.1
131.8
126.0
111.8
143.4
163.4
134.5
128.0
115.9
142.7
165.6
135.5
128.5
117.3
142.1
165.9
134.1
128.6 127.7
116.8
142.9
9.35 137.5 136.5 137.5 130.2
12.23 134.9 132.3 129.7 132.5
3.76 157.2 153.2 154.5 155.8
8.48 125.0 123.0 118.7 122.2
138.3
135.9
154.6
127.5
138.0
136.4
155.6
127.9
139.2
136.1
156.7
127.0
140.3
135.9
158.3
126.0
139.1
137.6
159.3
128.0
138.6
138.2
160.2
128.5
140.2 140.6
138.7 138.0
161.1
128.6 127.7
40
41
42
43
44
45
46
47
48
49
Nondurable goods materials
Textile, paper, and chemical materials.
Textile materials
Paper materials
Chemical materials
50
51
52
53
54
Containers, nondurable
Nondurable materials n.e.c
Energy materials
Primary energy
Converted fuel materials
55
56
57
58
Supplementary groups
Home goods and clothing
Energy, total
Products
Materials
For NOTE see opposite page.
153.1 146.5 148.3 149.2 152.1 153.5 154.7 155.6 157.0 158.1 160.3 161.2
157.1 150.1 152.6 153.8 157.0 157.6 158.2 158.4 159.2 159.8 161.1
166.2 160.9 165.6 165.5 163.0 164.1 167.4 169.9 168.8 168.6 169.0
140.3
154.9 156.7
147.3 147.4 148.5
166.0 167.6 170.1
150.5 151.6 153.4
128.2 129.1 131.2
156.9
147.5
171.6
153.3
Output
2.13
A49
Continued
Grouping
1967
proportion
SIC
code
1978
average»
1977
Nov.
Dec.
1978
Jan.
1978
June
July
Aug.
1979
r
Dec.P Jan.e
Sept.
Oct.
142.1
124.1
162.3
184.4
144.1 144.0 144.2 143.4
127.6 127.3 127.0 124.0
162.4 162.7 163.4 165.0
184.1
Nov.
Index (1967 = 100)
MAJOR INDUSTRY
135.5
118.8
154.2
173.3
12.05 141.4
6.36 124.1
5.69 160.8
3.88
5 Manufacturing.,
6
Nondurable..
7
Durable
87.95 145.6 139.9 140.5 138.7 145.5 146.7 147.6 148.7 149.5 150.4 151.5 151.6
35.97 154.7 150.1 150.9 149.8 154.9 155.0 155.6 157.1 157.4 158.4 158.9 159.7
51.98 139.3 132.7 133.4 131.1 139.0 141.1 142.2 142.8 144.0 144.9 146.4 146.2
8
9
10
11
Mining
Metal mining
Coal
Oil and gas extraction
Stone and earth minerals.
12
13
14
15
16
Nondurable manufactures
Foods
Tobacco products
Textile mill products...
Apparel products
Paper and products
17
18
19
20
21
22
23
24
25
Printing and publishing
Chemicals and products...
Petroleum products
Rubber & plastic products.
Leather and products
Durable manufactures
Ordnance, private & government.
Lumber and products
Furniture and fixtures
Clay, glass, stone products
10
11, 12
13
14
.51
.69
4.40
.75
133.9
113.4
156.7
175.9
137.4
115.0
162.3
183.6
142.5
128.0
158.6
180.1
142.6
127.1
159.9
182.1
142.5
126.0
160.8
183.2
1 Mining and utilities.,
2
Mining
3
Utilities
4
Electric
121.0 84.8 104.3 121.4 121.1 117.0 117.9
115.8 140.6 74.6 54.8 136.4 131.7 124.9
124.5 117.8 118.4 121.1 127.1 126.8 126.2
131.0 127.2 126.5 130.0 130.7 131.3 131.6
115.6
114.7
124.9
133.8
122.1
144.0
124.5
134.0
125.3
145.1
123.8
132.9
144.2 145.1
121.5
144.1 144.1
123.9
146.8 117.2
123.2 123.0
133.6
20
21
22
23
26
8.75 142.8 139.4
.67
117.5
2.68 140.0 141.6
3.31
125.1
3.21 144.5 137.8
140.4
120.6
143.7
125.8
138.6
139.3
113.4
137.1
118.6
139.9
141.8
122.7
140.4
126.8
148.0
142.9
120.8
141.0
124.5
140.5
144.0
118.6
139.5
127.2
141.9
144.4
120.6
142.2
130.9
142.3
143.2
119.0
142.1
130.6
145.8
27
28
29
30
31
4.72
7.74
1.79
2.24
.86
127.5
183.0
139.3
240.1
77.3
129.9
184.4
139.7
238.7
74.5
128.7
191.1
142.8
255.5
75.1
130.3
192.3
144.3
259.1
74.5
129.5
192.2
144.1
261.1
74.0
131.0
194.2
147.1
263.1
74.1
130.5 132.1 133.3 134.2
195.9 197.8 196.9
147.9 148.2 149.7 148.5
264.1 262.2 261.6
73.8 74.0 73.5
129.9
190.6
144.1
254.2
74.1
126.2
183.1
140.5
238.5
78.1
145.3
i47.i
19,91
24
25
32
3.64 73.7 74.1 73.8 72.3 74.7 75.2 75.2 74.3 73.9 73.6 74.2
1.64 138.8 137.5 138.1 138.5 138.7 138.1 136.9 139.2 141.2 142.5 145.3
1.37 154.7 146.0 146.6 146.4 156.2 158.1 159.0 160.7 160.9 157.6 156.6
2.74 159.2 152.8 152.1 152.2 159.8 158.8 159.5 160.9 162.1 166.3 168.0
146.0
74.6
26
27
28
29
30
Primary metals
Iron and steel
Fabricated metal products.
Nonelectrical machinery...
Electrical machinery
33
331, 2
34
35
36
6.57
4.21
5.93
9.15
8.05
119.1
113.2
142.6
155.6
154.2
111.2
104.3
135.8
149.7
146.0
111.0 107.4 117.5
103.8 99.5 114.5
136.4 136.9 142.3
151.7 150.1 154.6
147.3 144.0 154.1
123.0
119.0
144.0
156.1
157.9
126.0
120.9
145.8
157.3
156.9
127.9
123.2
146.3
158.7
158.3
131.8
126.7
148.1
161.4
161.8
128.9
31
32
33
34
35
Transportation equipment
Motor vehicles & parts
Aerospace & misc. trans, eq..
Instruments
Miscellaneous mfrs
37
371
372-9
38
39
9.27
4.50
4.77
2.11
1.51
130.5
168.2
94.9
171.6
153.2
122.0
163.0
83.3
163.1
151.8
122.2
161.8
84.9
164.7
152.5
130.4
167.7
95.0
170.9
153.5
132.1
169.7
96.5
172.2
153.2
133.4
171.0
98.3
175.4
153.8
132.8 137.0 139.3 139.3
168.9 176.8 181.4 179.3
98.9 99.6 99.7 U 1.7
174.6 175.3 176.2 178.9
154.1 153.9 152.1 153.2
137.1
173.5
103.0
180.3
155.3
116.2
146.6
87.6
163.4
153.0
128.6
123.8
146.0
160.3
157.9
128.9
123.8
146.9
160.6
159.1
i 48.7
162.5
162.9
Gross value (billions of 1972 dollars, annual rates)
MAJOR MARKET
36 Products, total.
Final
37
™ • products
Consumer goods.
38
Equipment
39
40
Intermediate products.
. 1507.4
i390.9
1277.5
U13.4
609.3
469.1
324.0
145.1
591.3
457.3
320.0
137.3
1116.6 140.3 134.1
i 1972 dollars.
NOTE. Published groupings include some series and subtotals not
594.7
458.7
320.4
138.2
582.0
445.1
311.2
133.9
608.9
468.9
323.0
146.0
610.3
469.6
323.4
146.4
135.9 136.7 140.3 140.7
613.3
472.2
324.7
147.5
613.6
471.8
324.4
147.7
141.4 141.9
621.3
478.8
328.1
150.6
625.9
482.2
331.0
151.2
628.9 630.6
483.8 484.6
331.8 332.1
151.8 152.3
142.6 143.8
145.3 146.3
shown separately. For description and historical data, see Industrial
Production—1976 Revision (Board of Governors of the Federal Reserve
System: Washington, D.C.), Dec. 1977.
A50
2.14
Domestic Nonfinancial Statistics • February 1979
HOUSING A N D CONSTRUCTION
Monthly figures are at seasonally adjusted annual rates except as noted.
1976
1977
1978
1978
Item
June
July
Aug.
Sept.
Oct.
Nov.'
Dec.
Private residential real estate activity
(thousands of units)
NEW UNITS
1 Permits authorized
2
1-family
3 2-or-more-family
1,296
894
402
18,133
12,265
5,861
1,658
1,078
581
1,821
1,123
698
1,632
1,035
597
1,563
1,020
543
1,731
1,092
639
1,719
1,127
592
1,724
1,114
610
1,680
1,158
522
4 Started
5
1-family
6
2-or-more-family
1,538
1,163
377
1,986
1,451
535
2,019
1,433
586
2,124
1,441
693
2,119
1,453
666
2,025
1,440
585
2,075
1,463
612
2,095
1,459
636
2,155
1,558
597
2,125
1,533
592
7 Under construction, end of period
8
1-family
9
2-or-more-family
1,147
655
492
1,442
829
613
n.a.
n.a.
n.a.
1,296
774
522
1,298
779
520
1,298
786
513
1,305
'782
'542
'1,322
'780
'523
1,305
782
523
n.a.
n.a.
n.a.
1,362
1,026
336
1,652
1,254
398
n.a.
n.a.
n.a.
1,890
1,344
546
1,943
1,289
654
1,967
1,364
603
1,971
1,447
524
1,842
1,397
445
1,812
1,324
488
n.a.
n.a.
n.a.
246
277
276
263
232
283
272
300
312
308
639
433
819
407
817
423
831
418
789
418
785
419
793
420
975
411
803
416
819
420
44.2
41.6
48.9
48.2
55.9
n.a.
56.7
54.8
56.1
'57.3
'58.3
58.7
n.a.
61.1
n.a.
48.1
54.4
62.7
63.2
62.9
63.0
'64.4
'65.8
66.3
67.6
3,002
3,572
3,905
3,780
3,890
4,080
3,950
4,290
4,350
4,160
38.1
42.2
42.9
47.9
48.7
55.1
48.4
55.1
49.4
56.5
50.3
57.5
50.2
57.7
50.1
57.3
50.7
57.4
50.9
58.1
10 Completed
11
1-family
12 2-or-more-family
13 Mobile homes shipped
Merchant builder activity in
1-family units:
Number sold
Number for sale, end of 2period 1.
Price (thous. of dollars)
Median:
Units sold
Units for sale
Average:
Units sold
14
15
16
17
13
r
EXISTING UNITS (1-family)
19 Number sold
Price of units sold
(thous. of
dollars):2
20
Median
21
Average
Value of new construction
(millions of dollars)
4
CONSTRUCTION
22 Total put in place
148,778
172,552
201,538
206,314
210,192
208,724
209,227
'209,815
212,788
215,037
23 Private
24
Residential
25
Nonresidential, total
Buildings:
26
Industrial
27
Commercial
28
Other
29
Public utilities and other
110,416
60,519
49,897
134,723
80,957
53,766
156,801
92,658
64,143
161,064
95,357
65,707
161,804
95,888
65,916
160,562
95,011
65,551
161,258
94,249
67,009
r
161,909
'93,568
68,341
164,875
95,401
69,474
168,001
96,819
71,182
7,182
12,757
6,155
23,803
7,713
14,789
6,200
25,064
10,763
18,308
6,661
28,411
11,335
19,246
6,761
28,365
11,170
19,463
7,036
28,247
12,043
18,835
6,721
27,952
12,634
18,926
6,686
28,763
12,627
19,410
6,667
29,637
12,529
20,294
6,877
29,774
13,286
20,777
6,952
30,167
38,312
1,521
9,439
3,751
23,601
37,828
1,517
9,280
3,882
23,149
44,737
2,181
8,627
3,697
23,503
45,249
1,358
10,338
3,508
30,045
48,388
1,493
9,833
4,989
32,073
43,162
1,520
11,427
5,231
29,984
47,970
1,615
10,862
5,660
29,833
'47,970
'1,426
11,428
3,851
31,211
47,913
1,431
n.a.
n.a.
n.a.
47,036
1,458
n.a.
n.a.
n.a.
30 Public
31
Military
32
Highway
33
Conservation and development. .
34
Other 3
1
2
3
4
Not at annual rates.
Not seasonally adjusted.
Beginning Jan. 1977 Highway imputations are included in Other.
Value of new construction data in recent periods may not be strictly
comparable with data in prior periods due to changes by the Bureau of
the Census in its estimating techniques. For a description of these changes
see Construction Reports (C-30-76-5), issued by the Bureau in July 1976.
NOTE. Census Bureau estimates for all series except (a) mobile homes
which are private, domestic shipments as reported by the Manufactured
Housing Institute and seasonally adjusted by the Census Bureau, and
(b) sales and prices of existing units, which are published by the National Association of Realtors. All back and current figures are available from originating agency. Permit authorizations are for 14,000
jurisdictions reporting to the Census Bureau.
Prices
2.15
A51
CONSUMER A N D PRODUCER PRICES
Percentage changes based on seasonally adjusted data, except as noted.
12 months to—
3 months (at annual rate) to—
Item
1977
Dec.
1978
Dec.
1 month to
1978
Mar.
June
1978
Sept.
Dec.
Aug.
Sept.
Oct.
Nov.
Dec.
Index
level
Dec.
1978
(1967
= 100)2
Consumer prices-$
1 All items
6.8
9.0
9.3
11.4
7.8
7.9
.6
.8
.8
.5
.6
202.9
2 Commodities
3 Food
4
Commodities less food
5
Durable
6
Nondurable
6.1
8.0
4.9
4.7
4.9
8.9
11.8
7.7
9.2
5.7
9.3
16.4
6.1
8.7
3.1
11.2
20.4
7.2
9.0
5.5
6.3
3.0
7.8
8.3
7.3
9.1
7.8
10.1
11.1
7.0
.4
.3
.5
.5
.5
.7
.5
.9
.9
.8
.7
.8
.7
.8
.5
.6
.3
.8
.8
.6
.8
.8
.9
1.0
.7
194.2
219.4
181.3
181.2
180.0
7 Services
8
Rent
9
Services less rent
7 9
6.5
8.1
9.3
7.3
9.6
9.1
6.2
9.6
11.8
8.5
12.2
10.3
7.5
10.8
5.7
7.1
5.4
.8
.5
.9
.8
.8
.9
.8
.6
.8
.4
.7
.3
.2
.5
.2
219.2
169.5
228.2
6.3
6.4
9.2
8.5
8.5
12.4
8.1
8.0
12.2
9.3
9.9
14.5
9.1
8.3
14.7
7.8
7.7
8.8
.7
.6
1.0
.8
.7
1.3
.8
.8
1.2
.6
.6
.7
.6
.5
.3
198.6
196.0
239.5
10
11
12
Other groupings:
All items less food
All items less food and energy
Homeownership
Producer prices, formerly Wholesale prices 4
13 Finished goods
6.6
9.1
8.7
10.3
7.4
10.1
.3
.8
.9
.8
.8
202.4
14
15
16
17
6.4
6.6
6.1
7.2
9.5
11.9
8.3
8.0
9.5
16.8
5.3
7.1
10.6
11.4
10.5
9.1
7.5
4.9
8.8
7.0
10.8
15.3
8.4
8.8
.2
-.4
.5
.4
.9
1.5
.5
.5
1.0
1.9
.5
.5
.7
.7
.7
.9
.9
1.0
.8
.7
200.4
215.8
190.8
206.9
5.4
6.4
10.1
8.2
11.0
8.1
9.5
7.2
7.3
6.9
13.2
10.8
.5
.7
.9
.6
1.5
1.0
.8
.9
.7
.7
228.0
223.5
6.8
1.4
15.5
18.3
10.7
25.1
14.9
26.6
16.9
2.8
19.6
21.0
.1
.0
1.6
1.8
2.1
3.9
1.2
.9
1.2
304.6
224.7
Consumer
Foods
Excluding foods
Capital equipment
18 Materials
19 Intermediate1
Crude:
20
Nonfood
21
Food
1
Excludes intermediate materials for food manufacturing and manufactured animal feeds.
2 Not seasonally adjusted.
3 Beginning Jan. 1978 figures for consumer prices are those for all urban
consumers.
4 The Producer Price Index has been revised back to 1974.
SOURCE. Bureau of Labor Statistics.
A52
2.16
Domestic Nonfinancial Statistics • February 1979
GROSS NATIONAL PRODUCT A N D INCOME
Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates.
1976
1977
Account
1977
1978 P
Q3
1978
Q4
Ql
Q2
Q3
Q4 p
Gross national product
1
By source:
Personal consumption expenditures
Durable goods
Nondurable goods
Services
2
3
4
5
6
7
8
9
10
11
12
Gross private domestic investment
Fixed investment
Nonresidential
Structures
Producers' durable equipment
Residential structures
Nonfarm
1,700.1
1,887.2
2,106.6
1,916.8
1,958.1
1,992.0
2,087.5
2,136.1
2,210.8
1,090.2
156.6
442.6
491.0
1,206.5
178.4
479.0
549.2
1,339.7
197.6
525.8
616.3
1,214.5
177.4
479.7
557.5
1,255.2
187.2
496.9
571.1
1,276.7
183.5
501.4
591.8
1,322.9
197.8
519.3
605.8
1,356.9
199.5
531.7
625.8
1,402.2
209.6
550.8
641.8
243.0
232.8
164.6
57.3
107.3
68.2
65.8
297.8
282.3
190.4
63.9
126.5
91.9
88.9
344.5
328.8
222.0
77.5
144.5
106.8
103.6
309.7
287.8
193.5
65.4
128.1
94.3
91.2
313.5
300.5
200.3
67.4
132.8
100.2
97.5
322.7
306.0
205.6
68.5
137.1
100.3
97.3
345.4
325.3
220.1
76.6
143.5
105.3
102.1
350.1
336.5
227.5
80.9
146.6
109.0
105.7
359.9
347.4
235.0
84.0
151.0
112.5
109.3
13
14
Change in business inventories
Nonfarm
10.2
12.2
15.6
15.0
15.7
16.7
21.9
22.0
13.1
10.4
16.7
16.9
20.1
22.1
13.6
14.6
12.4
13.1
15
16
17
Net exports of goods and services
Exports
Imports
7.4
163.2
155.7
-11.1
175.5
186.6
-11.8
205.2
217.0
-7.0
180.8
187.8
—23.2
172.1
195.2
-24.1
181.7
205.8
-5.5
205.4
210.9
-10.7
210.1
220.8
-6.9
223.5
230.4
18
19
20
Government purchases of goods and services. .
Federal
State and local
359.5
129.9
229.6
394.0
145.1
248.9
434.2
154.0
280.2
399.5
146.8
252.7
412.5
152.2
260.3
416.7
151.5
265.2
424.7
147.2
277.6
439.8
154.0
285.8
455.6
163.4
292.2
1,689.9
760.3
304.6
455.7
778.0
161.9
1,871.6
832.6
341.3
491.3
862.8
191.8
2,090.9
917.5
376.3
541.2
962.9
226.2
1,894.9
844.7
346.5
498.2
875.3
196.8
1,945.0
859.6
347.4
512.2
893.6
204.9
1,975.3
861.8
351.2
510.6
926.4
203.8
2,067.4
912.2
375.8
536.4
952.0
223.4
2,122.5
927.3
380.1
547.2
973.7
235.0
2,198.4
968.6
398.0
570.6
999.4
242.8
10.2
5.3
4.9
15.6
8.4
7.2
15.7
11.5
4.2
21.9
11.9
10.0
13.1
6.3
6.8
16.7
14 8
1.9
20.1
10.8
9.3
13.6
10.2
3.4
12.4
10.1
2.4
1,271.0
1,332.7
1,385.1
1,343.9
1,354.5
1,354.2
1,382.6
1,391.4
1,412.2
By major type of product:
Final sales, total
Goods
Durable
Nondurable
Services
Structures
21
22
23
24
25
26
27
28
29
Change in business inventories
Durable goods
Nondurable goods
30
MEMO: Total GNP in 1972 dollars
National income
31 Total
1,359,2
1,515.3
1,703.6
1,537.6
1,576.9
1,603.1
1,688.1
1,728.4
32 Compensation of employees
33
Wages and salaries
34
Government and government enterprises ..
35
Other
36
Supplement to wages and salaries
37
Employer contributions for social
insurance
38
Other labor income
1,036.8
890.1
187.6
702.5
146.7
1,153.4
983.6
200.8
782.9
169.8
1,301.2
1,100.7
216.1
884.6
200.5
1,165.8
993.6
201.7
791.9
172.2
1,199.7
1,021.2
208.1
813.1
178.4
1,241.0
1,050.8
211.4
839.3
190.2
1,287.8
1,090.2
213.9
876.3
197.6
1,317.1
1,113.4
216.8
896.6
203.6
69.7
77.0
79.4
90.4
94.5
105.9
79.9
92.2
82.4
96.1
90.2
100.0
93.6
104.0
95.7
107.9
88.6
70.2
18.4
99.8
79.5
20.3
112.9
87.8
25.1
97.2
80.8
16.5
107.3
82.3
25.1
105.0
83.1
21.9
110.1
86.1
24.0
114.5
89.6
25.0
39 Proprietors' income1
40
Business
and professional1
41
Farm1
42 Rental income of persons2
43 Corporate profits1 3
44
Profits before tax
45
Inventory valuation adjustment
46
Capital consumption adjustment
47 Net interest
22.5
22.5
23.4
22.4
22.7
22.8
22.2
24.3
127.0
155.9
-14.5
-14.4
144.2
173.9
-14.8
-14.9
160.0
202.4
-24.3
-18.1
154.8
177.5
-7.7
-15.0
148.2
178.3
-14.8
-15.3
132.6
172.1
-23.5
-16.1
163.4
205.5
-24.9
-17.2
165.2
205.4
-20.9
-19.3
84.3
95.4
106.1
97.3
99.0
101.7
104.6
107.4
1 With inventory valuation and capital consumption adjustments.
With capital consumption adjustments.
2
3
For after-tax profits, dividends, etc., see Table 1.50.
SOURCE. Survey of Current Business (U.S. Dept. of Commerce).
National Income Accounts
2.17
A53
PERSONAL INCOME A N D SAVING
Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted.
1978
1977
1976
1977
1978*'
Account
Q3
Q4
Ql
Q2
Q3
Q4f
Personal income and saving
1,380.9
1,529.0
1,707.3
1,543.7
1,593.0
1,628.9
1,682.4
1 ,731.7
1,786.4
890.1
307.5
237.5
216.4
178.6
187.6
983.6
343.7
266.3
239.1
200.1
200.8
1,100.7
390.1
299 J
268.7
225.8
216.1
993.6
348.3
269.3
241.2
202.3
201.7
1,021.2
357.1
277.3
247.5
208.5
208.1
1,050.8
365.9
286.9
257.0
216.5
211.4
1,090.2
387.0
296.1
266.4
222.8
213.9
1,113.2
396.4
302.0
271.6
228.5
216.7
1,148.5
410.8
313.6
279.9
235.6
222.2
77.0
90.4
105.9
92.2
96.1
100.0
104.0
107.9
111.8
88.6
70.2
18.4
99.8
79.5
20.3
112.9
87.8
25.1
97.2
80.8
16.5
107.3
82.3
25.1
105.0
83.1
21.9
110.1
86.1
24.0
114.5
89.6
25.0
121.9
92.4
29.5
12 Rental income of persons2
22.5
22.5
23.4
22.4
22.7
22.8
22.2
24.3
24.4
13 Dividends
37.9
43.7
49.3
44.1
46.3
47.0
48.1
50.1
51.9
14 Personal interest income
126.3
141.2
158.9
143.6
146.0
151.4
156.3
161.7
166.3
15 Transfer payments
16
Old-age survivors, disability, and health
insurance benefits
193.9
208.8
226.0
211.9
215.9
219.2
220.6
230.4
233.6
92.9
105.0
117.3
108.5
110.1
112.1
113.7
121.1
122.4
55.5
61.0
69.7
61.4
62.6
67.2
69.2
70.5
72.0
1,682.4
1 ,731.7
1,786.4
1 Total personal income
2 Wage and salary disbursements
3
Commodity-producing industries
4
Manufacturing.........................
6
7
Service industries
Government and government enterprises
8 Other labor income
Business
and professional1
Farm 1
10
11
17
LESS: Personal contributions for social
insurance
18 EQUALS: Personal income
1,380.9
1,529.0
1,707.3
1,543.7
1,593.0
1,628.9
196.5
226.0
256.2
224.6
233.3
237.3
249.1
263.2
275.0
20 EQUALS: Disposable personal income
1,184.4
1,303.0
1,451.2
1,319.1
1,359.6
1,391.6
1,433.3
1 ,468.4
1,511.4
21
LESS: Personal outlays
1,116.3
1,236.1
1,374.4
1,244.8
1,285.9
1,309.2
1,357.0
1 ,392.5
1,439.2
22 EQUALS : Personal saving
68.0
66.9
76.7
74.3
73.7
82.4
76.3
76.0
72.3
5,906
3,808
4,136
5.7
6,144
3,954
4,271
5.1
6,336
4,077
4,418
5.3
6,191
3,953
4,293
5.6
6,226
4,030
4,365
5.4
6,215
4,009
4,370
5.9
6,334
4,060
4,399
5.3
6,360
4,092
4,428
5.2
6,440
4,150
4,474
4.8
19
LESS: Personal tax and nontax payments....
MEMO ITEMS :
23
24
Per capita (1972 dollars):
Gross national product
Personal consumption expenditures
26 Saving rate (per cent)
Gross saving
27 Gross private saving.
28
29
30
Personal saving
Undistributed corporate profits1
Corporate inventory valuation adjustment....
31
32
33
Capital consumption allowances:
Corporate
Noncorporate
Wage accruals less disbursements
34 Government surplus, or deficit (—), national
income and product accounts
35
Federal
36
State and local
270.7
290.8
320.4
310.7
304.3
305.4
319.9
325.7
68.0
24.8
-14.5
66.9
28.7
-14.8
76.7
26.7
-24.3
74.3
38.0
-7.7
73.7
28.0
-14.8
82.4
15.6
-23.5
76.3
30.3
-24.9
76.0
29.0
-20.9
111.5
66.3
120.9
74.3
132.5
122.6
75.9
124.6
77.9
127.4
79.9
130.5
82.8
134.7
84.4
-1.5
-29.4
27.8
-25.2
-56.4
31.2
-29.6
-58.6
29.0
-21.1
-48.1
29.6
-52.6
31.5
6.2
-23.6
29.8
.6
-22.8
23.4
241.7
243.0
-1.2
276.9
297.8
-20.9
319.7
344.5
-24.8
292.6
309.7
-17.1
279.5
313.5
-34.1
286.4
322.1
-36.3
326.6
345.4
-18.9
326.6
350.1
-23.5
4.2
4.7
7.1
4.8
2.2
.5
.4
-33.2
-53.8
20.7
-18.6
86.1
37 Capital grants received by the United States,
net
38 Investment
39
Gross private domestic.
40
Net foreign
41 Statistical discrepancy.
1
2
With inventory valuation and capital consumption adjustments.
With capital consumption adjustment.
SOURCE. Survey of Current Business (U.S. Dept. of Commerce).
A54
3.10
International Statistics • February 1979
U.S. INTERNATIONAL TRANSACTIONS
Summary
Millions of dollars; quarterly data are seasonally adjusted except as noted. 1
Item credits or debits
1975
1977
1976
1978
1977
Q2
Ql
Q4
Q3
1 Merchandise exports
2 Merchandise imports
3
Merchandise trade balance 2 .
107,088
98,041
9,047
114,694
124,047
-9,353
120,576
151,706
-31,130
31,009
38,277
-7,268
29,461
39,664
-10,203
30,664
41,865
-11,201
35,067
42,869
-7,802
4 Military transactions, net
5 Investment income, net 3
6 Other service transactions, net
-876
12,795
2,095
312
15,933
2,469
1,334
17,507
1,705
467
4,609
583
5
3,813
482
210
4,877
538
592
4,583
842
7 Balance on goods and services3,4
23,060
9,361
-10,585
-1,609
-5,903
-5,576
-1,785
-1,721
-2,894
-1,878
-3,145
-1,932
-2,776
-490
-787
-473
-591
-504
-778
-536
-781
10 Balance on current account3.
11 Not seasonally adjusted3..
18,445
4,339
-15,292
-2,886
-5,196
-6,967
-6,858
-3,102
-5,245
-6,382
-2,656
12 Change in U.S. government assets, other than official
reserve assets, net (increase, —)
-3,470
-4,213
-1,098
-838
-607
-2,530
8 Remittances, pensions, and other transfers
9 U.S. government grants (excluding military).
13 Change in U.S. official reserve assets (increase, —)
14
Gold
15
Special Drawing Rights (SDRs)
16
Reserve position in International Monetary Fund (IMF)..
17
Foreign currencies
-466
-75
-78
-2,212
-240
-66
-3,679
-231
151
-294
302
-9
133
27
-118
-121
-896
-1,176
246
329
-29
42
47
-16
-62
-104
437
-4
-60
324
18 Change in U.S. private assets abroad (increase, —) 3 .
-35,368
-43,865
-30,740
-5,668
-13,862
-14,386
-5,287
19
Bank-reported claims
-13,532
-21,368
-11,427
-1,779
-8,750
-6,270
-503
20
21
22
23
24
Nonbank-reported claims
Long-term
Short-term
U.S. purchase of foreign securities, net.
U.S. direct investments abroad, n e t 3 . . .
-7,557
-366
-991
-6,235
-14,244
-2,030
-1,700
5
25
-2,035
-1,725
-8,852
-5,398
-11,614 -12,215
1,389
205
1,184
-2,165
-3,113
-1,184
-279
-905
-731
-3,197
—2,222
25 Change in foreign official assets in the United States
(increase, +)
26
U.S. Treasury securities
27
Other U.S. government obligations
28
Other U.S. government liabilities5
29
Other U.S. liabilities reported
by U.S. banks
30
Other foreign official assets6
31 Change in foreign
private assets in the United States
(increase, + ) 3
-57
-2,165
-949
-4,945
267
80
187
-1,103
-3,948
6,907
4,408
905
1,647
-2,158
2,104
18,073
9,333
573
4,993
969
2,205
37,124
30,294
2,308
1,644
773
2,105
8,246
6,948
627
332
-163
502
15,543
12,900
973
390
909
371
15,760
12,965
117
804
1,456
418
-5,685
-5,728
211
-312
-493
637
8,643
18,897
13,746
6,005
4,522
2,336
6,090
32
U.S. bank-reported liabilities.
628
10,990
6,719
2,640
3,143
-314
1,836
33
34
35
36
U.S. nonbank-reported liabilities
Long-term
Short-term
Foreign private purchases of U.S. Treasury securities,
net
Foreign purchases of other U.S. securities, net
Foreign direct investments in the United States, net 3
319
406
257
590
-620
18
877
572
425
-242
667
495
38
457
-68
-87
-507
-958
451
2,590
2,503
2,603
2,783
1,284
4,347
563
2,869
3,338
1,251
513
1,012
-299
803
450
881
462
812
847
1,308
1,852
5,449
9,300
-927
-4,751
-2,229
1,602
2,276
3,798
8.830
5,449
9,300
-927
-2,522
-674
3,638
8.831
-607
5,259
-2,530
13,080
-231
35,480
151
7,914
15,153
246
14,956
329
-5,373
7,092
9,581
6,733
,438
1,024
1,963
-2,838
2,207
373
194
31
71
75
57
37
38
39 Allocation of SDRs
40 Discrepancy
41
Owing to seasonal adjustments
42
Statistical discrepancy in recorded data before seasonal
adjustment
160
248
316
-1
MEMO ITEMS:
Changes in official assets:
43
U.S. official reserve assets (increase, —)
44
Foreign official assets in the United States (increase, + ) .
45 Changes in Organization of Petroleum Exporting Countries (OPEC) official assets in the Unites States (part
of line 25 above)
46 Transfers under military grant programs (excluded from
lines 1, 4, and 9 above)
1 Seasonal factors are no longer calculated for lines 13 through 46.
Data are on an international accounts (IA) basis. Differs from the
Census basis primarily because the IA basis includes imports into the
U.S. Virgin Islands, and it excludes military exports, which are part of
line3 4.
Includes reinvested earnings of incorporated affiliates.
4
Differs from the definition of "net exports of goods and services" in
the national income and product (GNP) account. The GNP definition
2
excludes certain military sales to Israel from exports and excludes U.S.
government
interest payments from imports.
5
Primarily associated with military sales contracts and other transactions
arranged
with or through foreign official agencies.
6
Consists of investments in U.S. corporate stocks and in debt securities of private corporations and state and local governments.
NOTE. Data are from Bureau of Economic Analysis, Survey of Current
Business (U.S. Department of Commerce).
Trade and Reserve Assets
3.11
A55
U.S. FOREIGN TRADE
Millions of dollars; monthly data are seasonally adjusted.
1978
Item
1976
1 EXPORTS of domestic and foreign
merchandise excluding grant-aid
shipments
115,156
2 GENERAL IMPORTS including
merchandise for immediate consumption plus entries into bonded
warehouses
121,009
-5,853
1977
r
r
1978
121,150 143,575
July
Aug.
Sept.
Oct.
Nov.
Dec.
12,126
11,793
12,469
13,429
13,011
13,262
13,148
147,685
172,026
13,723
14,779
14,090
15,120
15,138
15,207
15,189
—26,535
28,451
-1,597
-2,987
-1,621
-1,691
-2,127
-1,946
-2,040
NOTE. Bureau of Census data reported on a free-alongside-ship
(f.a.s.) value basis. Effective January 1978, major changes were made in
coverage, reporting, and compiling procedures. The internationalaccounts-basis data adjust the Census basis data for reasons of coverage
and timing. On the export side, the largest adjustments are: (a) the addition
of exports to Canada not covered in Census statistics, and (b) the exclusion
of military exports (which are combined with other military transactions
3.12
June
and are reported separately in the "service account"). On the import
side, the largest single adjustment is the addition of imports into the
Virgin Islands (largely oil for a refinery on St. Croix), which are not
included in Census statistics.
SOURCE. FT 900 "Summary of U.S. Export and Import Merchandise
Trade" (U.S. Dept. of Commerce, Bureau of the Census).
U.S. RESERVE ASSETS
Millions of dollars, end of period
1978
Type
1975
1 Total
2 Gold stock, including
Stabilization Fund 1
1976
1977
1979
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan .P
3 18,650
3 20,468
16,226
18,747
19,312
18,832
18,783
18,850
18,935
17,967
Exchange
11,599
11,598
11,719
11,693
11,679
11,668
11,655
11,642
11,671
11,592
3 Special Drawing Rights 2
2,335
2,395
2,629
2,860
2,885
2,942
3,097
1,522
31,558
32,661
4 Reserve position in International
Monetary Fund
2,212
4,434
4,946
4,177
4,196
4,214
4,147
1,099
31,047
3 1,017
80
320
18
102
23
26
36
3,704
4,374
5,198
5 Convertible foreign currencies4
1
Gold held under earmark at F.R. Banks for foreign and international
accounts is not included in the gold stock of the United States; see table
3.24.
2
Includes allocations by the International Monetary Fund (IMF) of
SDR's as follows: $867 million on Jan. 1, 1970; $717 million on Jan. 1,
1971; and $710 million on Jan. 1, 1972; plus net transactions in SDRs.
3
Beginning July 1974, the IMF adopted a technique for valuing the
SDR based on a weighted average of exchange rates for the currencies
of 16 member countries. The U.S. SDR holdings and reserve position in
the4 IMF also are valued on this basis beginning July 1974.
Beginning November 1978, valued at current market exchange rates.
A56
3.13
International Statistics • February 1979
FOREIGN BRANCHES OF U.S. BANKS
Balance Sheet Data
Millions of dollars, end of period
Asset account
1975
1976
1978
1977
May
2
June
July
Aug.
Sept.
Oct.
All foreign countries
1 Total, all currencies
2
3
4
Claims on United States
Parent bank
Other
5
6
7
8
9
Claims on foreigners
Other branches of parent bank
Banks
Public borrowers1
Nonbank foreigners
10
Other assets
11 Total payable in U.S. dollars
12
13
14
Claims on United States
Parent bank
Other
15
16
17
18
19
Claims on foreigners
Other branches of parent bank
Banks
Public borrowers1
Nonbank foreigners
20
Other assets
269,542 '274,937
176,493
219,420
258,897
259,442
271,696
6,743
3,665
3,078
7,889
4,323
3,566
11,623
7,806
3,817
8,727
4.863
3.864
10,891
6,750
4,141
9,254
5,096
4,158
163,391
34,508
69,206
5,792
53,886
204,486
45,955
83,765
10,613
64,153
238,848
55,772
91,883
14,634
76,560
241,774
52,713
91,912
21,139
76,010
251,783
55,357
96,638
22,654
77,134
250,700
55,236
94,659
r
23,288
'77,517
287,369
292,304
295,984
10,026
5,820
'4,206
14,976
10,693
'4,283
12,172
7,879
4,293
13,375
9,017
4,358
254,779
58,746
'92,803
'23,362
79,868
262,063
63,493
95,222
'23,896
'79,452
269,110
67,648
98,195
23,937
79,330
271,446
68,803
101,100
22,696
78,847
r
6,359
7,045
8,425
8,941
9,022
9,588
10,132
10,330
11,022
11,163
132,901
167,695
193,764
192,466
202,792
198,205
'200,787
212,063
210,938
218,266
6,408
3,628
2,780
7,595
4,264
3,332
11,049
7,692
3,357
8,035
A,1X2
3,323
10,107
6,580
3,527
8,473
4,906
3,567
9,221
'5,630
3,591
14,168
10,535
3,633
11,331
7,688
3,643
12,471
8,840
3,631
123,496
28,478
55,319
4,864
34,835
156,896
37,909
66,331
9,022
43,634
178,896
44,256
70,786
12,632
51,222
180,331
41,209
70,124
18,275
50,723
188,590
43,544
74,842
19,674
50,530
185,425
43,447
71,592
'20,291
r
50,095
187,038
46,326
'69,552
'20,263
50,897
193,457
50,880
71,892
'20,505
'50,180
194,877
52,887
72,641
20,290
49,059
200,788
54,986
76,429
19,367
50,006
2,997
3,204
3,820
4,100
4,095
4,307
4,528
4,438
4,730
5,007
r
United Kingdom
21 Total, all currencies
22
23
24
Claims on United States
Parent bank
Other
25
26
27
28
29
Claims on foreigners
Other branches of parent bank,
Banks
Public borrowers1
Nonbank foreigners
30
Other assets
31 Total payable in U.S. dollars
32
33
34
Claims on United States
Parent bank
Other
35
36
37
38
39
Claims on foreigners
Other branches of parent bank.
Banks
Public borrowers1
Nonbank foreigners
40
Other assets
74,883
81,466
90,933
89,645
93,538
92,989
93,341
99,084
101,887
102,032
2,392
1,449
943
3,354
2,376
978
4,341
3,518
823
2,333
1,476
857
3,142
2,279
863
2,615
1,515
1,100
2,626
1,597
1,029
2,940
2,014
926
3,119
2,230
889
3,706
2,119
921
70,331
17,557
35,904
881
15,990
75,859
19,753
38,089
1,274
16,743
84.016
22.017
39,899
2,206
19,895
84,700
19,550
40,807
4,150
20,193
87,808
19,944
43,044
4,559
20,261
87,479
20,438
42,462
'4,637
'19,942
87,769
21,661
'40,350
'4,583
21,175
93,364
24,691
42,677
x '4,549
'21,447
95,774
26,422
44,020
4,695
20,637
95,220
26,077
44,287
4,237
20,619
2,159
2,253
2,576
2,612
2,588
2,895
2,946
2,ISO
2,994
3,106
57,361
61,587
66,635
63,565
67,016
65,452
64,457
70,008
70,209
71,761
2,273
1,445
828
3,275
2,374
902
4,100
3,431
669
2,163
1,452
711
2,870
2,178
692
2,321
1,386
935
2,337
1,483
854
2,598
1,895
703
2,877
2,187
690
3,475
2,727
748
54,121
15,645
28,224
648
9,604
57,488
17,249
28,983
846
10,410
61,408
18,947
28,530
1,669
12,263
60,277
16,406
28,324
3,254
12,293
63,043
17,025
30,686
3,525
11,807
61,938
17,438
29,455
'3,660
'11,385
60,907
18,305
'27,268
'3,544
11,790
66,242
20,934
29,859
'3,471
'11,978
66,132
21,377
29,680
3,586
11,489
67,031
21,491
30,480
3,227
11,833
967
824
1,126
1,125
1,103
1,193
1,213
1,168
1,200
1,255
Bahamas and Caymans
41 Total, all currencies
42
43
44
Claims on United States.
Parent bank..
Other
45
46
47
48
49
Claims on foreigners
Other branches of parent bank.
Banks
Public borrowers1
Nonbank foreigners
50
Other assets
51 Total payable in U.S. dollars.
For notes see opposite page.
45,203
66,774
79,052
82,083
84,692
82,145
85,654
88,755
86,290
89,560
3,229
1,477
1,752
3,508
1,141
2,367
5,782
3,051
2,731
5,237
2,502
2,735
6,441
3,449
2,992
5,132
2,381
2,751
5,620
2,751
2,869
10,053
7,090
2,963
7,250
4,255
2,995
7,461
4,399
3,062
41,040
5,411
16,298
3,576
15,756
62,048
8,144
25,354
7,105
21,445
71,671
11,120
27,939
9,109
23,503
74,846
10,580
29,045
11,424
23,797
76,282
10,803
30,307
12,394
22,IIS
74,988
10,292
29,302
12,599
22,795
77,949
12,134
29,749
12,461
23,605
76,651
12,348
29,All
12,362
22,469
76,863
12,618
30,314
12,092
21,839
79,890
13,433
33,025
11,534
21,898
933
1,217
1,599
2,000
1,969
2,025
2,085
2,051
2,177
2,209
1 41,887
62,705
73,987
76,660
79,277
76,494
79,701
83,007
80,222
83,568
Overseas Branches
3.13
A57
Continued
Liability account
1975
1976
1978
1977
May 2
June
July
Aug.
Sept.
Oct.
274,937
287,369
NOV.P
All foreign countries
52 Total, all currencies
219,420
258,897
259,442
271,696
269,542
32,719
19,773
12,946
44,154
24,542
19,613
49,907
28,422
( 9,003
X 12,482
50,534
25,199
10,371
14,964
51,583
27,722
8,608
15,253
r
52,437
r
179,954
44,370
83,880
25,829
25,877
206,579
53,244
94,140
28,110
31,085
202,232
50,368
87,567
29,776
34,521
213,670
53,547
93.413
31.414
35,296
209,810
53,788
88,364
31,831
35,827
213,978
56,955
89,234
31,455
36,334
53
54
55
56
To United States
Parent bank
Other banks in United States.
Nonbanks
20,221
12,165
} 8,057
57
58
59
60
61
To foreigners
Other branches of parent bank
Banks
Official institutions
Nonbank foreigners
149,815
34,111
72,259
22,773
20,672
62
Other liabilities
63 Total payable in U.S. dollars
r
176,493
6,456
6,747
8,163
7,303
7,492
8,149
135,907
173,071
198,572
196,746
207,117
202,407
292,304
295,984
49,325
24,590
10,064
r
14,671
51,509
27,619
8,365
15,525
56,994
31,793
9,089
16,112
228,733
61,599
r
97,629
33,077
r
36,428
231,115
65,104
95,955
32,237
37,819
229,266
65,802
94,094
31,213
38,157
r
28,923
7,659
15,855
r
r
8,522
9,311
9,680
9,724
204,946
215,496
215,517
222,887
r
50,329
r
r
47,171
23,640
9,724
13,807
49,276
26,684
8,011
14,581
55,083
30,964
8,818
15,301
163,626
49,978
r
63,271
27,358
r
23,019
161,505
52,052
58,911
26,332
24,210
162,828
53,370
58,831
25,442
25,185
64
65
66
67
To United States
Parent bank
Other banks in United States.
Nonbanks
19,503
11,939
} 7,564
31,932
19,559
12,373
42,881
24,213
18,669
48,278
27,787
( 8,704
X 11,787
48,820
24,477
10,078
14,265
49,668
26,951
8,286
14,431
68
69
70
71
72
To foreigners
Other branches of parent bank
Banks
Official institutions
Nonbank foreigners
112,879
28,217
51,583
19,982
13,097
137,612
37,098
60,619
22,878
17,017
151,363
43,268
64,872
23,972
19,251
144,758
40,099
57,871
25,124
21,664
154,513
42,682
62,434
26,587
22,810
148,630
42,852
56,273
26,843
22,662
150,474
45,620
55,285
26,178
23,391
73
Other liabilities
3,526
3,527
4,328
3,710
3,784
4,109
4,143
4,699
4,736
4,976
28,031
7,286
15,012
r
United Kingdom
74,883
81,466
90,933
89,645
93,538
92,989
93,341
99,084
101,887
102,032
75
76
77
78
To United States
Parent bank
Other banks in United States.
Nonbanks
5,646
2,122
} 3,523
5,997
1,198
4,798
7,753
1,451
6,302
6,758
1,636
( 2,346
X 2,776
8,174
1,822
3,273
3,079
8,011
1,959
2,987
3,065
6,978
1,905
2,290
2,783
8,033
1,872
3,150
3,011
8,347
2,176
2,949
3,222
9,053
2,367
3,234
3,452
79
80
81
82
83
To foreigners
Other branches of parent bank
Banks
Official institutions
Nonbank foreigners
67,240
6,494
32,964
16,553
11,229
73,228
7,092
36,259
17,273
12,605
80,736
9,376
37,893
18,318
15,149
80.108
9,009
35,980
19,087
16,032
82,703
9,700
36,856
20,074
16,073
81,847
10,098
34,662
20,863
16,224
82,991
11,708
35,293
19,863
16,127
87,678
12,006
37,677
21,493
16,502
89,942
12,269
39,276
21,193
17,204
89,347
13,153
38.167
20,182
17,845
84
Other liabilities
1,997
2,241
2,445
2,779
2,661
3,131
3,372
3,373
3,598
3,632
65,671
64,926
70,227
71,158
72,812
74 Total, all currencies
85 Total payable in U.S. dollars
57,820
63,174
67,573
64,025
67,936
86
87
88
89
To United States
Parent bank
Other banks in United States.
Nonbanks
5,415
2,083
[ 3,332
5,849
1,182
4,667
7,480
1,416
6,064
6,446
1,609
( 2,281
( 2,556
7,852
1,794
3,176
2,882
7,652
1,926
2,904
2,822
6,606
1,852
2,209
2,545
7,650
1,805
3,092
2,753
7,985
2,116
2,902
2,967
8,666
2,321
3,178
3,167
90
91
92
93
94
To foreigners
Other branches of parent bank
Banks
Official institutions
Nonbank foreigners
51,447
5,442
23,330
14,498
8,176
56,372
5,874
25,527
15,423
9,547
58,977
7,505
25,608
15,482
10,382
56,274
6,696
22,554
15,908
11,116
58,856
7,259
23,472
16,866
11,259
56,636
7,696
20,527
17,397
11,016
57,015
9,163
20,601
16,113
11,138
61,231
9,317
22,936
17,659
11,319
61,765
9,301
23,259
17,106
12,099
62,631
10,302
23,044
16,317
12,968
95
Other liabilities
959
953
1,116
1,305
1,228
1,383
1,305
1,346
1,408
1,515
Bahamas and Caymans
45,203
66,774
79,052
82,083
84,692
82,145
85,654
88,755
86,290
89,560
97
98
99
100
To United States
Parent bank
Other banks in United States
Nonbanks
11,147
7,628
} 3,520
22,721
16,161
6,560
32,176
37,350
20,956
23,255
(
5,625
11,220 X 8,470
35,185
19,078
5,514
10,593
37,041
21,755
4,587
10,699
39,532
23,187
4,509
11,836
r
34,378
18,410
5,511
r
10,457
35,679
20,179
4,418
11,082
40,561
24,013
4,857
11,691
101
102
103
104
105
To foreigners
Other branches of parent bank.
Banks
Official institutions
Nonbank foreigners
32,949
10,569
16,825
3,308
2,248
42,899
13,801
21,760
3,573
3,765
45,292
12,816
24,717
3,000
4,759
43,394
11,250
21,452
4,419
6,273
48,088
11,657
25,752
4,583
6,096
43,649
11,165
21,951
4,221
6,312
44,597
11,436
21,884
4,598
6,679
r
48,955
15,635
22,471
4,440
6,409
47,317
14,715
21,998
4,340
6,264
106
Other liabilities
1,106
1,154
1,584
1,339
1,419
1,455
1,525
96 Total, all currencies
107 Total payable in U.S. dollars
1
42,197
63,417
74,463
In May 1978 a broader category of claims on foreign public borrowers,
including corporations that are majority owned by foreign governments,
replaced the previous, more narrowly defined claims on foreign official
institutions.
78,254
80,650
78,131
81,314
52,574
14,762
'27,372
4,468
'5,972
r
l,803
1,656
1,682
84,317
81,323
84,878
2
In May 1978 the exemption level for branches required to report
was increased, which reduced the number of reporting branches.
A58
3.14
International Statistics • February 1979
SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period
Item
1975
1976
1978
1977
June
July
Aug.
Sept.
Oct.
NOV.P
DecJ]
A. By type
1 Total i
2 Liabilities 2reported by banks in the United
States
3 U.S. Treasury bills and certificates3
U.S. Treasury bonds and notes:
4
Marketable
5 Nonmarketable4
6 U.S. securities
other than U.S. Treasury
securities5
82,572
95,634 131,090 140,571 144,138 146,084 145,210 152,460 156,555 162,391
16,262
34,199
17,231
37,725
18,003
47,820
18,808
55,594
19,445
56,842
20,049
56,299
19,752
55,014
22,300
57,976
21,694
62,943
22.957
67,906
6,671
19,976
11,788
20,648
32,157
20,443
32,836
19,284
34,149
19,214
34,860
20,375
35,564
20,304
36,141
21,426
36,209
20.993
35.838
20,970
5,464
8,242
12,667
14,049
14,488
14,501
14,576
14,617
14,716
14,720
B. By area
7 Total
8
9
10
11
12
13
Western Europe1
Canada
Latin America and Caribbean
Asia
Africa
Other countries6
1
2
82,572
95,634 131,090 140,571 144,138 146,084 145,210 152,460 156,555 162,391
45,701
3,132
4,461
24,411
2,983
1,884
45,882
3,406
4,926
37,767
1,893
1,760
Includes the Bank for International Settlements.
Principally demand deposits, time deposits, bankers acceptances,
commercial paper, negotiable time certificates of deposit, and borrowings
under
repurchase agreements.
3
Includes nonmarketable certificates of indebtedness (including those
payable in foreign currencies through 1974) and Treasury bills issued to
official
institutions of foreign countries.
4
Excludes notes issued to foreign official nonreserve agencies. Includes
bonds and notes payable in foreign currencies.
70,748
2,334
4,649
50,693
1,742
924
74,455
2,593
4,668
56,199
1,689
967
75,739
2,490
4,629
58,081
2,220
979
79,723
2,071
4,621
56,848
2,036
785
80,267
1,497
3,898
56,808
2,006
734
85,303
2,619
4,611
57.011
2,184
732
88,697
2,446
4,496
57,830
2,301
785
93,122
2,486
4,993
58,613
2,443
734
5
Debt securities of U.S. govt, corporations and federally sponsored
agencies,
and U.S. corporate stocks and bonds.
6
Includes countries in Oceania and Eastern Europe.
NOTE. Based on Treasury Dept. data and on data reported to the
Treasury Dept. by banks (including Federal Reserve Banks) and securities
dealers in the United States.
For a description of the changes in the International Statistics tables,
see July 1978 BULLETIN, p. 612.
Nonbank-reported
3.15
Data
A59
LIABILITIES TO FOREIGNERS Reported by Banks in the United States
Payable in U.S. dollars
Millions of dollars, end of period
1975
Item
1976
1978
1977
June
A.
7 Banks' custody liabilities4
8 U.S. Treasury bills and certificates 5
9
Other negotiable
and readily transferable
instruments6
10 Other
and
regional
12 Banks' own liabilities.
13 Demand deposits...
14 Time deposits1
15 Other 2
16 Banks' custody liabilities4
17 U.S. Treasury bills and certificates
18 Other negotiable6 and readily transferable
instruments
19 Other
20 Official institutions8
21
22
23
24
25
26
27
28
Banks' own liabilities.
Demand deposits...
1
Time deposits
Other2
Banks' custody liabilities4
U.S. Treasury bills and certificates 5
Other negotiable6 and readily transferable
instruments
Other
29 Banks 9.
30
31
32
33
34
35
36
37
38
39
Banks' own liabilities
Unaffiliated foreign banks.
Demand deposits
1
Time deposits
Other2
41
42
43
44
Banks' own liabilities.
Demand deposits...
1
Time deposits
Other2
45
46
47
Banks' custody liabilities4
U.S. Treasury bills and certificates
Other negotiable6 and readily transferable
instruments
Other
Oct.
Nov.f
Dec.f
By holder and type of liability
16,803
11,347
18,996
11,521
60,671
17,189
11,635
6,477
25,369
61,429
17,953
11,921
6,876
24,679
63,931
16,104
12,634
7,238
27,955
68,488
17,204
12,503
6,697
32,085
71,102
17,557
12,279
9,756
31,511
75,166
18,264
12,514
8,645
35,744
77,773
19,202
12,287
9,766
36,518
37,414
40,744
48,906
75,255
57,126
75,864
57,629
76,601
57,264
75,596
56,665
79,482
59,077
83,255
63,434
88,469
68,434
15,506
2,623
15,512
2,722
16,691
2,646
16,057
2,874
17,619
2,786
17,424
2,397
17,501
2,535
3,274
2,942
2,678
2,823
3,406
2,929
2,225
2,617
480
265
119
97
1,017
257
116
644
808
142
97
569
767
144
99
523
336
133
116
87
417
153
102
161
916
330
94
492
2,462
922
1,662
228
2,014
368
2,639
1,036
2,593
403
1,809
183
1,701
201
1,537
3
1,432
1
1,645
1
1,603
1
2,189
1
1,625
1
1,499
1
65,822
74,402
76,286
76,348
74,766
80,267
84,329
90,608
8,453
2,611
1,981
3,862
9,422
3,473
2,277
3,673
9,085
2,643
2,595
3,848
9,455
3,307
2,563
3,585
11,474
3,046
2,399
6,030
10,820
3,414
2,345
5,060
11,683
3,388
2,331
5,963
65,949
55,594
66.864
56,842
67,263
56,299
65,311
55,014
68,793
57,967
73,510
62,635
78,925
67,650
9,857
498
9,498
524
10,326
638
9,703
594
10,616
210
10,768
107
11,105
170
43,363
42,921
45.532
50,410
51,379
55,241
56,962
38,824
13,454
10,164
1,255
2,035
38,358
13,680
10,240
1,321
2,110
41,028
13,073
9,229
1,390
2,454
45,640
13.555
9,713
1,618
2,223
46,425
14,914
10,156
1,552
3,206
50,440
14,696
10,068
1,735
2,893
52,142
15,624
11,238
1,481
2,904
25,369
24,679
27,955
32,085
31,511
35,744
36,518
4,540
300
4,562
269
4,504
296
4,771
307
4,955
381
4,801
371
4,819
300
2,355
1,885
2,416
1,877
2.381
1,828
2,534
1,930
2,447
2,126
2,528
1,902
2,417
2,103
14,736
15,218
15,407
15,829
15,502
16,008
16,625
16,056
4,304
7,546
12,914
4,149
8,281
484
12,631
3,983
8,208
441
13,009
4,090
8,552
368
12,627
4,039
8,222
365
12,867
4,222
8,213
432
13,490
4,628
8,331
531
13,031
4,246
8,379
406
240
2,304
310
2,776
290
2,819
301
2,875
308
3,141
326
3,135
245
3,024
282
1,757
237
2,165
320
2,339
179
2,218
349
2,367
448
2,503
387
2,480
262
9,428
9,385
9,964
9,822
10,977
10,803
10,895
5,699
5,714
139
148
290
205
231
139
2,554
2,701
706
50,461
54,956
2,644
3,423
3,394
2,321
3,528
1,797
34,199
37,725
47,820
29,330
7,534
1,873
37,174
9,104
2,297
335
10,100
3,248
4,823
119
12,814
4,015
6,524
325
49 MEMO: Negotiable time certificates of deposit
held in custody for foreigners
1
Excludes negotiable time certificates of deposit, which are included
in 2"Other negotiable and readily transferable instruments."
Includes
borrowings under repurchase agreements.
3
U.S. banks: includes amounts due to own foreign branches and
foreign subsidiaries consolidated in "Consolidated Report of Condition"
filed with bank regulatory agencies. Agencies, branches, and majorityowned subsidiaries of foreign banks: principally amounts due to head
office or parent foreign bank, and foreign branches, agencies or whollyowned
subsidiaries of head office or parent foreign bank.
4
Financial claims on residents of the United States, other than longterm
securities,
held by or through reporting banks.
5
Includes nonmarketable certificates of indebtedness (including those
payable in foreign currencies through 1974) and Treasury bills issued to
official institutions of foreign countries.
Sept.
13,564
10,267
42,335
10,933
2,040
Own foreign offices3
Banks' custody liabilities4
U.S. Treasury bills and certificates
Other negotiable6 and readily transferable
instruments
Other
40 Other foreigners.
48
Aug.
95,590 110,657 126,168 135,926 137,293 140,532 144,084 150,584 158,421 166,242
All foreigners.
2 Banks' own liabilities.
3 Demand deposits...
4 Time deposits1
5 Other 2
6 Own foreign offices3
11 Nonmonetary international
organizations7
July
141
6
Principally bankers acceptances, commercial paper, and negotiable
time
certificates of deposit.
7
Principally the International Bank for Reconstruction and Development,
and the Inter-American and Asian Development Banks.
8
Foreign central banks and foreign central governments and the
Bank
for
International Settlements.
9
Excludes central banks, which are included in "Official institutions."
NOTE. Data for time deposits prior to April 1978 represent short-term
only.
For a description of the changes in the International Statistics tables,
see July 1978 BULLETIN, p. 612.
A60
3.15
International Statistics • February 1979
Continued
Item
1975
1978
1977
1976
June
July
B.
Aug.
Sept.
Oct.
Nov.*3
By area and country
1 Total
95,590
110,657
126,168 1 3 5 , 9 2 6
137,293
140,532
144,084
150,584
158,421
2 Foreign countries.
89,891
104,943
122,893
132,983
134,615
137,709
140,678
147,655
156,196
44,072
759
2,893
329
391
7,726
4,543
284
1,059
3,407
994
193
423
2,277
8,476
60,295
318
2,531
770
323
5,269
7,239
603
6,857
2,869
944
273
619
2,712
12,343
130
14,125
232
1,804
98
236
64,302
351
2,756
1,335
352
6,550
10,029
597
6,869
3,118
1,869
191
64,662
312
2,211
1,542
407
7,353
9,727
646
7,036
3,078
1,737
227
709
3,340
67,339
424
2,174
1,593
416
7,989
10,766
69,099
431
2,368
1,673
415
8,060
11,206
865
7,394
2,756
1,208
521
765
3,341
13,077
226
11,802
167
2,497
65
262
73,408
473
2,464
1,734
424
8,421
13,345
887
7,346
2,523
1,210
386
702
3,187
14,314
164
12,438
158
2,887
82
262
78,418
514
2,471
1,827
388
8,817
15,652
907
7,761
2,518
1,102
379
885
3,216
6,867
126
2,970
40
197
47,076
346
2,187
356
416
4.876
6,241
403
3,182
3,003
782
239
559
1,692
9,460
166
10,018
189
2,673
51
236
2,919
4,659
4,607
5,816
5,623
5,890
5,122
7,418
8,001
25 Latin America and Caribbean
26
Argentina
27
Bahamas
28
Bermuda
29
Brazil
30
British West Indies
31
Chile
32
Colombia
33
Cuba
34 Ecuador 3
35
Guatemala
36
Jamaica3
37
Mexico
38 Netherlands Antilles4
39
Panama
40
Peru
41
Uruguay
42
Venezuela
43
Other Latin America and Caribbean.
15,028
1,146
1,874
184
1,219
1,311
319
417
6
19,132
1,534
2,770
23,670
1,416
3,596
321
1,396
3,998
360
25,425
1,692
3,954
396
1,220
A,169
316
1,424
7
325
448
66
2,776
320
2.386
282
24,831
1,550
3,629
383
1,295
4,009
380
1,429
9
378
415
75
2,921
435
2,639
309
27,259
1,453
4,601
372
1,382
5,474
346
1,486
10
347
419
59
3,171
28,470
1,650
4,880
387
1,441
5,919
333
1,483
31,111
1,504
6,309
425
1,234
6,692
341
3,157
1,606
3,229
1,530
29,284
1,393
7,249
409
1,350
5,380
351
1,431
7
405
347
78
3,112
317
2,741
321
197
2,560
1,637
44 Asia.
45
China (Mainland)
46
China (Taiwan)
47
Hong Kong
48
India
49
Indonesia
50 Israel
51
Japan
52
Korea
53
Philippines
54
Thailand
55
Middle East oil-exporting countries5.
56
Other Asia
35,171
47
1,195
1,191
798
597
519
20,374
714
640
320
7,267
1,510
33,463
44
34,630
49
1,319
1,368
899
575
453
19,937
790
594
352
6,911
1,384
34,843
51
762
309
440
19,755
736
566
296
6,719
1,364
33,438
46
1,280
1,230
833
348
432
19,890
776
623
290
6,350
1,341
44
979
681
3,013
594
28
175
73
1,365
778
2,578
463
67
160
52
1,198
638
2,645
417
74
238
45
1,270
601
2,540
322
84
266
39
1,230
600
2,636
312
30
294
43
1,335
622
3 Europe.,
4
Austria
5
Belgium-Luxembourg..
6
Denmark
7
Finland
8
France
9
Germany
10
Greece
11
Italy
12
Netherlands
13
Norway
14 Portugal
15 Spain
16 Sweden
17
Switzerland
18
Turkey
19
United Kingdom
20
Yugoslavia
21
Other Western Europe1
22
U.S.S.R
23
Other Eastern Europe2,
24 Canada.
118
218
1,438
1.877
337
1,021
6
1,221
688
3.385
12,415
110
11,471
229
1,666
66
255
11,888
147
11,770
192
1,935
55
222
826
8,055
3,240
1.516
324
752
3,355
12,102
137
10,956
149
2,311
46
210
7
15,810
163
12,826
190
2,719
73
198
1,612
120
320
6
330
2,070
129
1,115
243
172
3,309
1,393
2,870
158
1,167
257
245
3,118
1,797
2,876
196
2,331
287
243
2,929
2,167
22,384
123
1,025
605
115
369
387
10,207
390
700
252
7,355
856
29,766
48
990
894
638
340
392
14,363
438
30,488
53
1,013
1,094
961
410
559
14,616
602
687
264
8,979
33,665
53
57 Africa
58
Egypt
59
Morocco
60
South Africa
61
Zaire
62
Oil-exporting countries6.
63
Other Africa
3,369
342
68
166
62
2,240
491
2,298
333
87
141
36
1,116
585
2,535
404
2,360
402
28
64 Other countries..
65
Australia
66
All other
2,119
2,006
113
2,012
1,905
107
1,297
1,140
158
1,414
1,211
203
1,315
1,158
157
1,180
1,051
130
1,090
899
191
1,189
915
213
1,187
950
236
67 Nonmonetary international and regional
organizations
5,699
5,714
3,274
2,942
2,678
2,823
3,406
2,929
2,225
5,415
188
5,157
267
290
2,752
278
245
2,311
395
236
2,027
411
241
2,157
437
228
2,339
799
269
1,789
856
284
1,033
870
323
68
69
70
International
Latin American7 regional.
Other regional
96
628
277
9,360
1,398
includes the Bank for International Settlements. Beginning April
1978,
also includes Eastern European countries not listed in line 23.
2
Beginning April 1978 comprises Bulgaria, Czechoslovakia, German
Democratic
Republic, Hungary, Poland, and Romania.
1978 InClUded i n " ° t h e r L a t i n A m e r i c a a n d Caribbean" through March
4
5
Includes Surinam through December 1975.
Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia,
and. United Arab Emirates (Trucial States).
1,250
66
174
39
1,155
698
220
1,053
1,085
899
330
476
19,020
748
595
297
7,894
1,213
226
Dec.f
218
288
2,628
311
185
3,208
1.517
1,262
1,211
369
368
57
3,101
352
2,396
323
210
3,696
1,496
7
348
357
43
3,413
368
2,808
337
211
3,550
1,553
1,247
1,189
843
439
469
21,355
750
578
279
6,381
1,256
6
7
Comprises Algeria, Gabon, Libya, and Nigeria.
Asian, African, Middle Eastern, and European regional organizations,
except the Bank for International Settlements, which is included in
"Other Western Europe."
NOTE. For a description of the changes in the International Statistics
tables, see July 1978 BULLETIN, p. 612.
Nonbank-reported
3.16
Data
A61
BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in U.S. Dollars
Millions of dollars, end of period
1978
Area and country
1977
1976
1975
June
July
Aug.
Sept.
Oct.
Nov.f
Dec.*5
1
58,308
79,301
90,206
87,212
87,349
91,844
94,399
96,820 105,338 114,174
2 Foreign countries
58,275
79,261
90,163
87,180
87,313
91,806
94,360
96,779 105,292 114,118
11,109
35
286
104
180
1,565
380
290
443
305
131
30
424
198
199
164
5,170
210
76
406
513
14,776
63
482
133
199
1,549
509
279
993
315
136
88
745
206
379
249
7,033
234
85
485
613
18,114
65
561
173
172
2,082
644
206
1,334
338
162
175
722
218
564
360
8,964
311
86
413
566
16,249
105
731
145
182
1,891
787
204
965
383
217
126
706
219
685
309
7,270
320
153
319
534
15,762
116
634
129
190
1,813
689
190
1,078
436
210
140
669
244
631
313
6,961
300
165
305
548
16,829
107
823
146
216
2,523
632
125
1,027
405
163
105
714
290
1,013
305
6,933
280
125
343
553
18,301
95
949
147
221
2,786
742
126
1,016
379
263
99
770
325
871
305
7,827
306
128
370
575
19,327
111
1,052
160
232
2,752
808
161
1,355
494
238
106
929
348
781
293
8,065
293
147
387
617
3 Europe
4
Austria
Belgium-Luxembourg
5
6
Denmark
7
Finland
France
8
9
Germany
10
Greece
11
Italy
12 Netherlands
13
Norway
14 Portugal
Spain
15
16
Sweden
17
Switzerland
18 Turkey
19
United Kingdom
20
Yugoslavia
21
Other Western Europe 1
22
U.S.S.R
23
Other Eastern Europe2
20,504
142
1,232
193
260
2,716
838
134
1,453
602
282
180
980
465
1,045
283
8,356
302
107
321
612
24,105
147
1,198
242
305
3,690
900
164
1,506
675
299
171
1,100
537
1,282
273
10,080
363
178
364
631
2,834
3,319
3,355
2,493
3,116
3,343
3,448
3,586
4,552
5,140
25 Latin America and Caribbean
26
Argentina
27
Bahamas
28
Bermuda
29
Brazil
30
British West Indies
31
Chile
32
Colombia
33
Cuba
34 Ecuador 3
35
Guatemala
36
Jamaica3
37
Mexico
38
Netherlands Antilles4
39
Panama
40
Peru
41
Uruguay
42
Venezuela
43
Other Latin America and Caribbean
23,863
1,377
7,583
104
3,385
1,464
494
751
14
252
38,879
1,192
15,464
150
4,901
5,082
597
675
13
375
45,850
1,478
19,858
232
4,629
6,481
675
671
10
517
4,822
140
1,372
933
42
1,828
1,293
4,909
224
1,410
962
80
2,318
1,394
46,974
1,572
19,643
145
4,599
6,872
745
648
1
546
83
49
5,068
206
2,278
918
52
2,337
1,212
49,469
1,566
22,172
194
4,858
6,885
809
690
1
560
115
44
5,004
198
1,625
928
56
2,515
1,250
50,397
1,690
20,031
141
5,252
8,397
742
727
1
646
79
46
5,007
230
2,280
966
51
2,745
1,367
49,267
1,447
19,208
352
5,596
7,170
832
793
3,745
72
1,138
805
57
1,319
1,302
45,990
1,556
18,725
145
4,659
7,412
745
615
1
562
90
53
4,865
212
1,901
930
53
2,240
1,227
621
85
45
4,927
212
2,480
945
63
3,105
1,386
54,342
1,698
23,541
141
6,137
6,432
862
936
4
681
89
49
5,255
242
2,531
931
58
3,367
1,388
56,257
2,258
21,096
189
6,147
9,160
962
990
2
694
92
42
5,361
270
3,060
887
58
3,449
1,541
44 Asia
45
China (Mainland)
46
China (Taiwan)
47
Hong Kong
India
48
49
Indonesia
50 Israel
Japan
51
52
Korea
53
Philippines
54
Thailand
Middle East oil-exporting countries5
55
56
Other Asia
17,706
22
1,053
289
57
246
721
10,944
1,791
534
520
744
785
19,204
3
1,344
316
69
218
755
11,040
1,978
719
442
1,459
863
19,236
10
1,719
543
53
232
584
9,839
2,336
594
633
1,746
947
19,317
13
1,343
769
80
146
468
10,023
2,328
"680
711
1,575
1,181
18,326
5
1,193
698
46
139
445
9,779
1,937
641
725
1,551
1,167
18,918
31
1,177
666
73
125
504
9,876
1,925
743
693
1,951
1,155
18,994
8
1,241
705
76
152
544
10,205
1,930
730
633
1,656
1,113
21,358
10
1,285
1,368
66
144
555
10,568
1,788
732
734
2,097
2,012
22,691
6
1,356
1,385
46
188
719
11,997
1,741
717
758
2,181
1,599
25,408
35
1,421
1,572
54
143
871
12,697
2,233
677
753
3,112
1,840
1,933
123
8
657
181
382
581
2,311
126
27
957
112
524
565
2,518
119
43
1,066
98
510
682
2,136
70
38
1,054
79
383
512
2,133
79
36
1,036
79
340
563
2,267
62
42
1,058
79
459
566
2,158
67
38
1,022
82
406
544
2,219
56
40
990
161
438
534
2,163
68
36
906
162
439
551
2,234
107
82
860
180
449
556
830
700
130
772
597
175
1,090
905
186
995
828
167
1,002
836
167
980
835
145
1,063
894
168
1,023
879
145
1,040
894
147
974
872
102
33
40
43
31
36
38
39
41
45
56
24 Canada
57 Africa
58
Egypt
Morocco
59
60
South Africa
61
Zaire
62
Oil-exporting countries6
63
Other
64 Other countries
65
Australia
66
All other
67 Nonmonetary international
and regional
organizations7
1
Includes the Bank for International Settlements. Beginning April
1978,
also includes Eastern European countries not listed in line 23.
2
Beginning April 1978 comprises Bulgaria, Czechoslovakia, German
Democratic
Republic, Hungary, Poland, and Romania.
3
Included in "Other Latin America and Caribbean" through March
1978.
4 Includes Surinam through December 1975.
5 Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia,
and United Arab Emirates (Trucial States).
*
6
7
Comprises Algeria, Gabon, Libya, and Nigeria.
Excludes the Bank for International Settlements, which is included
in "Other Western Europe."
NOTE. Data for period prior to April 1978 include claims of banks'
domestic customers on foreigners. For a description of the changes in
the International Statistics tables, see July 1978 BULLETIN, p. 612.
A62
3.17
International Statistics • February 1979
BANKS' OWN A N D DOMESTIC CUSTOMERS' CLAIMS ON FOREIGNERS Reported by Banks in the
United States
Payable in U.S. Dollars
Millions of dollars, end of period
Type of claim
1975
1976
1978
1977
June
1 Total
58,308
79,301
90,206
July
Aug.
96,184
Sept.
Oct.
Nov."
Dec.p
103,515
2 Banks' own claims on foreigners
87,212
87,349
91,844
94,399
96,820 105,338 114,174
3
4
5
6
7
8
6,036
31,590
30,166
5,116
25,050
19,419
6,858
33,813
27,499
4,623
22,876
19,179
7,292
37,325
27,400
4,352
23,049
19,826
7,708
34,828
31,467
4,482
26,985
20,396
8,051
36,357
31,080
3,965
27,115
21,332
Foreign public borrowers
Own foreign offices1
Unaffiliated foreign banks
Deposits
Other
All other foreigners
9 Claims of banks' domestic customers2
10
11
Deposits
Negotiable and
readily transferable instruments 3
Outstanding collections and other claims 4 ....
12
8,973
389
5,467
5,756
6,176
13 MEMO: Customer liability on acceptances...
1
U.S. banks: includes amounts due from own foreign branches and
foreign subsidiaries consolidated in "Consolidated Report of Condition"
filed with bank regulatory agencies. Agencies, branches, and majorityowned subsidiaries of foreign banks: principally amounts due from head
office or parent foreign bank, and foreign branches, agencies, or whollyowned
subsidiaries of head office or parent foreign bank.
2
Assets owned by customers of the reporting bank located in the
United States that represent claims on foreigners held by reporting banks
for the account of their domestic customers.
9,197
40,412
33,464
4,139
29,325
22,265
10,024
40,891
39,940
5,350
34,591
23,318
'9,116
r
500
3,694
4,889
'3,724
'4,892
11,995
'12,747
3
Principally negotiable time certificates of deposit and bankers acceptances.
4
Data for March 1978 and for period prior to that are outstanding
collections only.
NOTE. Beginning April 1978, data for banks' own claims are given
on a monthly basis, but the data for claims of banks' domestic customers
are available on a quarterly basis only.
For a description of the changes in the International Statistics tables,
see July 1978 BULLETIN, p. 612.
Nonbank-reported
3.18
Data
A63
BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Banks in the United States
Payable in U.S. Dollars
Millions of dollars, end of period
Maturity; by borrower and area
1978
Junef
1 Total
By borrower:
4
All other foreigners
Sept.?
55,128
59,516
43,682
2,919
40,763
46,684
3,640
43,044
5
6
7
Maturity of over 1 year 1
Foreign public borrowers.
All other foreigners
11,445
3,162
8,283
12,832
3,928
8,904
8
9
10
11
12
13
By area:
Maturity of 1 year or less1
Europe
Canada. .
Latin America and Caribbean
Asia
.
.
Africa
All other2. . .
9,532
1,615
17,036
13,515
1,461
523
10,386
1,943
18,518
13,712
1,535
591
14
15
16
17
18
19
Maturity of over 1 year 1
Europe
Canada
..
Latin America and Caribbean
Asia
Africa
.
All other2
2,979
330
5,979
1,282
629
247
3,104
793
6,843
1,305
577
211
1
2
Remaining time to maturity.
Includes nonmonetary international and regional organizations.
3.19
1979
1978
1979
Dec.
Mar.
June
Sept.
NOTE. The first available data are for June 1978. For a description of
the changes in the International Statistics tables, see July 1978 BULLETIN,
p. 612.
LIABILITIES TO A N D CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in Foreign Currencies
Millions of dollars, end of period
1978
Item
1974
1975
1976
1977
Mar.
1 Banks' own liabilities
2 Banks' own claims1
3 Deposits
Other claims
4
5 Claims of banks' domestic customers2
1
2
766
1,276
669
607
Includes claims of banks' domestic customers through March 1978.
Assets owned by customers of the reporting bank located in the
United States that represent claims on foreigners held by reporting banks
for the accounts of their domestic customers.
560
1,459
656
802
781
1,834
1,103
731
925
2,356
941
1,415
986
2,383
948
1,435
June?
1,704
3,153
1,290
1,863
809
Sept.P
1,981
3,530
1,386
2,144
446
NOTE. Data on claims exclude foreign currencies held by U.S. monetary authorities.
For a description of the changes in the International Statistics tables,
see July 1978 BULLETIN, p. 612.
A64
3.20
International Statistics • February 1979
MARKETABLE U.S. TREASURY BONDS A N D NOTES
Foreign Holdings and Transactions
Millions of dollars
Country or area
1976
1978
1978
1977
Jan.Dec.f
June
July
Aug.
Sept.
Holdings (end of period)
Nov. p
Oct.
Dec.f
4
1 Estimated totali...
15,799
38,640
40,658
41,148
41,573
42,212
43,622
43,847 44,928
2 Foreign countries1.
12,765
33,894
34,964
36,306
37,119
37,826
38,472
38,469 39,807
2,330
14
764
288
191
261
485
323
4
13,936
19
3,168
911
100
497
8,888
349
4
13,106
19
4,361
1,113
185
529
6,527
371
14,226
19
5,531
1,113
200
590
6,403
370
14,154
19
5,761
1,278
210
636
5,862
387
14,689
19
6,157
1,306
211
694
5,909
393
15,260
19
6,645
1,356
231
731
5,915
365
15,654 17,072
19
19
7,102 8,705
1,351
1,358
266
285
915
977
5,674 5,373
327
354
10
11
Europe1
Belgium-Luxembourg..
Germany1
Netherlands
Sweden
Switzerland
United Kingdom
Other Western Europe.
Eastern Europe
12
Canada.
256
288
264
275
276
276
151
151
152
13
14
15
16
Latin America and Caribbean
Venezuela
Other Latin American and Caribbean.
Netherlands Antilles
313
149
47
118
551
199
183
170
494
174
158
162
485
174
149
162
545
244
139
162
445
144
139
162
426
144
119
162
416
144
109
162
416
144
110
162
17
Asia
Japan
9.323
2,687
18.745
6,860
20,605
9,616
20,831
9,927
21,647
10,791
21,919
11,096
21,938
11,560
543
362
491
491
491
491
691
691
691
11
4
-3
7
5
6
-3
-3
3,034
4,746
5,694
4,842
4,454
4,386
5,150
5,378
5,121
2,906
128
4,646
100
5,633
61
4,809
33
4,421
33
4,354
33
5,118
33
5,345
33
5,089
33
18
19
Africa
20
All other.
21 Nonmonetary international and regional
organizations
22
23
International
Latin American regional.
*
21,560 21,478
11,483 11,528
Transactions (net purchases, or sales (—), during period)
8,096
22,843
6,287
1,271
490
425
639
1,410
225 - 1 , 0 8 1
5,393
21,130
5,912
599
1,342
813
706
646
- 3 -1,338
5,119
274
20,369
762
3,682
2,229
522
77
1,313
29
710
103
704
3
577
69
69
-72
-371
1,708
28 Nonmonetary international and regional
organizations
2,704
1,713
376
671
-852
-387
-67
764
227
-256
MEMO: Oil-exporting
countries
29
Middle East 2
30 Africa 3
3,887
221
4,451
-181
— 1 ,790
329
-185
-31
-401
200
-241
-1
-127
24 Total i
26
27
Official institutions
Other foreign i
1
Includes U.S. Treasury notes publicly issued to private foreign
residents.
2
Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia,
and United Arab Emirates (Trucial States).
3 Comprises Algeria, Gabon, Libya, and Nigeria.
3.21
*
*
-85
*
-31
*
*
4
Estimated official and private holdings of marketable U.S. Treasury
securities with an original maturity of more than 1 year. Data are based
on a benchmark survey of holdings as of Jan. 31, 1971, and monthly
transactions reports. Excludes nonmarketable U.S. Treasury bonds and
notes held by official institutions of foreign countries.
FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS
Millions of dollars, end of period
Assets
1975
1976
1978
1977
July
1 Deposits
Assets held in custody: 1
2
U.S. Treasury securities
3 Earmarked gold 2
353
352
60,019
16,745
66,532
16,414
1
Marketable U.S. Treasury bills, certificates of indebtedness, notes,
and bonds ; and nonmarketable U.S. Treasury securities payable in dollars
and
inforeign currencies.
2
The value of earmarked gold increased because of the changes in
par value of the U.S. dollar in May 1972 and in October 1973.
424
347
Aug.
309
Sept.
325
1979
Oct.
305
Nov.
379
Dec.
367
Jan P
338
91,962 101,696 102,902 102,699 107,934 112,434 117,126 116,961
15,988 15,594 15,572 15,553 15,548 15,525 15,463
15,448
NOTE. Excludes deposits and U.S. Treasury securities held for international and regional organizations. Earmarked gold is gold held for
foreign and international accounts and is not included in the gold stock
of the United States.
Investment transactions
3.22
A65
FOREIGN TRANSACTIONS IN SECURITIES
Millions of dollars
Transactions, and area or country
1977
1976
1978
Jan.Dec.f
1978
June
July
Sept.
Aug.
Oct.
Nov.f
Dec.f
U.S. corporate securities
2
3
4
5
6
7
8
9
10
n
12
13
14
15
16
17
Stocks
Foreign purchases
Foreign sales
20,069
17,698
2,055
1,936
1,305
1,296
2,676
2,370
119
9
2,661
2,416
139
9
336
256
68
-199
-100
340
1,006
40
291
22
152
613
1,233
49
619
-22
-584
1,218
39
-39
83
-18
-76
101
-6
-15
17
9
-52
50
324
155
1,803
119
7
-4
65
127
1,390
59
5
8
74
151
781
187
-13
3
-12
33
59
23
-3
-16
-35
69
-5
1
18.227
15,475
14,155
11,479
Net purchases, or sales (—)
2,753
Foreign countries
2,740
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America
and Caribbean
Middle East1
Other Asia
Africa
Other countries
Nonmonetary international and regional
organizations
*
*
*
2,444
2,678
2,357
2,115
1,509
1,523
1,461
1,359
-235
241
-14
103
336
-235
244
-15
102
336
-152
9
-54
-22
-184
110
-33
2
24
7
-115
54
-91
-4
-30
7
-118
58
-10
1
8
6
-88
67
264
-36
263
-9
-22
74
-18
48
-134
35
-12
-1
117
1
120
35
5
-1
22
13
42
-4
2
2
6
-2
109
1
-2
38
16
4
15
-1
*
-3
1
1
611
550
727
530
437
388
884
558
1,421
1,085
1
1
4c
13
15
-46
-21
Bonds2
18 Foreign purchases
19 Foreign sales
5,529
4,327
7,739
3,546
7,954
5,449
669
302
1,029
596
872
490
20
Net purchases, or sales (—)
1,202
4,192
2,505
367
433
383
61
197
49
326
21
Foreign countries
1,243
4,096
2,096
295
411
330
64
137
39
134
86
39
-49
-29
155
23
1,863
-34
-20
72
94
1,703
966
30
119
19
-100
936
157
-3
14
-7
5
154
387
13
18
11
-74
416
137
6
38
18
-20
80
-2
-5
19
43
89
-10
-12
-4
9
110
25
3
6
-1
9
9
152
17
10
-6
39
115
96
94
1,179
-165
-25
-21
141
64
1,695
338
-6
102
78
810
140
-1
1
6
2
91
39
14
-8
135
—116
24
17
99
52
16
11
-73
29
-5
13
—19
60
-1
-8
23
6
5
-21
-5
-41
96
409
22
23
24
25
26
27
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
28
29
30
31
32
33
Canada
Latin America
and Caribbean
Middle East1
Other Asia
Africa
Other countries
34
Nonmonetary international and regional
organizations
•
*
*
*
*
*
72
1
1
22
*
*
*
*
*
*
*
*
*
-3
53
-3
60
10
192
Foreign securities
35 Stocks, net purchases, or sales (—)
36 Foreign purchases
37 Foreign sales
38 Bonds, net purchases, or sales (—)
39 Foreign purchases
40 Foreign sales
523
3,661
3,138
-61
247
308
10
333
323
51
382
331
-69
261
330
-19
299
318
163
360
197
-12
232
244
-8,774 -5,095 -3,892
4,932
8,040 10,996
13,706 13,134 14,888
-636
1,095
1,730
-291
921
1,212
-196
982
1,178
33
759
726
-677
941
1,618
-448
854
1,302
170
1,020
851
-323
1,937
2,259
41 Net purchases, or sales ( —) of stocks and bonds.. - 9 , 0 9 7
-410
2,255
2,665
-5,504
-3,369
-697
-281
-145
-36
-696
-285
157
42 Foreign countries
43 Europe
44 Canada
45 Latin America and Caribbean
46 Asia
47 Africa
48 Other countries
-7,199 -3,947 -3,192
16
-850 -1,100
- 5 , 2 4 5 - 2 , 4 0 4 -3,237
203
-3
-80
412
-733
-97
-441
2
48
-416
-267
-146
-742
-220
-420
-68
192
-44
-182
-283
-171
-146
8
44
-25
7
-150
94
-161
-17
54
-123
3
-70
-86
-41
-12
69
_ i
1
-507
13
-747
-17
236
1
6
-305
-102
-246
16
21
1
4
116
102
-24
49 Nonmonetary international and regional
organizations
-1,898
45
2
5
34
-189
20
-1,557
1
Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq,
Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial
States).
-177
*
*
32
5
41
2
Includes state and local government securities, and securities of U.S.
govt, agencies and corporations. Also includes issues of new debt securities
sold abroad by U.S. corporations organized to finance direct investments
abroad.
A66
3.23
International Statistics • February 1979
SHORT-TERM LIABILITIES TO A N D CLAIMS ON FOREIGNERS
in the United States
Reported by Nonbanking Concerns
Millions of dollars, end of period
1977
Type, and area or country
Sept.
1978
Dec.
Mar.
June
1977
3
Sept. *
Sept.
Dec.
Liabilities to foreigners
1
By type:
2
Payable in dollars
3
4
5
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
Brazil
Chile
Claims on foreigners
'8,361
8,792
9,645
'15,223
'16,221
'18,399
18,162
18,260
'6,386
r
r
7,967
8,794
'14,120
' 14,803 ' 16,636
825
851
7,109
857
7,477
801
884
'7,089
'2,317
19
126
16
11
170
226
78
107
180
12
12
74
41
257
97
'765
92
9
11
14
'7,695
'2,491
21
116
14
9
238
284
85
128
232
7
11
77
28
263
108
'735
90
10
24
12
'8,214
'2,820
26
171
23
12
273
335
108
104
253
9
7
94
37
'211
93
'937
82
8
15
23
8,661
2,993
26
167
22
3
302
356
82
156
220
18
25
105
38
282
92
962
84
18
19
17
451
504
530
524
16,598
16,291
' 1,104
' 1,418
' 1,763
1,564
1,969
414
'690
'613
'805
'783
'980
673
890
804
1,165
9,521 '15,222
'16,220 '18,397
r
3,159
5,062
' 5,764 r5,508
33
24
24
21
226
165
211
187
17
44
56
47
4
59
13
13
260
430
513
545
391
'450
'420
'395
71
41
52
42
188
387
'351
'381
222
161
166
184
23
'40
'40
38
11
34
69
27
110
387
307
408
91
117
117
51
308
220
146
'202
102
39
32
35
1,058
'2,479
'2,619
'2,795
76
20
20
24
17
33
25
15
27
44
62
55
25
96
135
121
18,160
5,273
28
155
40
53
533
436
40
451
192
45
54
376
78
285
29
2,338
27
24
37
51
18,258
5,887
25
172
34
50
622
534
44
400
175
42
34
351
80
346
31
2,818
23
28
33
45
566
r
r
2,681
3,428
3,502
3,724
' 1,353
53
'327
62
14
26
1,421
74
321
63
23
42
1,532
131
353
87
14
42
4,619
53
1,963
414
40
85
4,467
53
'2,019
'493
45
84
' 5,943
53
'3,122
'482
40
80
6,001
61
3,081
479
37
79
103
12
13
4
'210
122
9
154
114
22
15
3
'216
118
25
209
169
12
22
5
'264
107
41
250
185
71
17
9
185
101
30
299
235
59
19
7
232
121
19
213
302
222
30
5
251
257
8
989
314
91
32
5
269
281
12
'768
312
175
30
6
306
268
24
'1,045
331
97
30
4
309
229
19
1,245
5,142
65
2,350
418
40
69
1
382
76
25
5
284
223
21
1,183
2,583
1
152
25
44
60
58
604
75
78
17
'1,469
'2,835
8
156
40
37
56
63
695
103
74
17
'1,588
' 2,814
1
167
32
26
57
68
761
99
95
11
'1,498
3,008
1
170
30
10
59
59
807
107
107
27
1,631
3,517
4
176
61
23
49
68
865
103
157
43
1,968
2,398
12
139
73
42
'184
46
1,026
153
111
24
'587
'2,777
9
157
98
38
375
38
1,068
171
99
23
'702
' 2,810
21
173
92
93
152
43
1,142
168
96
30
800
2,905
23
157
127
85
167
86
1,157
161
107
29
804
594
19
130
30
55
'360
603
25
148
36
57
338
661
34
145
34
56
391
340
'18
10
75
19
'218
*
Netherlands Antilles
Other Latin America
r
#
*
*
Israel
Japan
Korea
Philippines
Thailand
Other Asia
56
57
58
59
60
61
Africa
Egypt
Morocco
South Africa
Zaire
Other Africa
588
45
105
29
48
361
'577
13
112
20
46
'380
62
63
64
Other countries
Australia
All other
111
93
18
93
75
18
104
89
14
111
97
14
85
72
14
154
215
147
132
125
NOTE. Reported by exporters, importers, and industrial and commercial concerns and other nonbanking institutions in the United States.
r
*
*
44
45
46
47
48
49
50
51
52
53
54
55
r
' 1,201
40
'329
49
17
42
Peru
Uruguay
Venezuela
65 Nonmonetary international and regional
organizations
2,649
'1,038
50
'248
76
13
24
Cuba
China, (Mainland)
China, (Taiwan)
Hong Kong
India
Sept.p
June
'7,910
Canada
Latin America
Argentina
Mar.
'7,243
Payable in foreign currencies
Deposits with banks abroad in reporter's
name
Other
By area or country:
6 Foreign countries
7
Europe
8
Austria
Belgium-Luxembourg
9
10
11
12
13
Germany
Greece
14
Italy
15
16
Netherlands
17
Norway
18
Portugal
19
Sweden
20
Switzerland
21
22
Turkey
23
United Kingdom
24
25
Other Western Europe
26
U.S.S.R
27
Other Eastern Europe
1978
r
r
*
r
*
r
2,970
22
144
85
85
185
47
1,379
133
94
32
'764
r
*
386
'34
21
75
15
'241
402
31
22
71
11
'268
430
36
16
88
16
274
441
29
16
74
12
311
153
113
41
146
111
35
145
111
34
143
109
34
158
118
40
1
1
1
2
2
Data exclude claims held through U.S. banks and intercompany accounts
between U.S. companies and their affiliates.
Nonbank-reported Data
3.24
A67
Reported by Large Nonbanking Concerns in the United States
SHORT-TERM CLAIMS ON FOREIGNERS
Millions of dollars, end of period
1978
1974
Type and country
1975
1976
1977'
June7"
July'
Aug. r
Sept. '
Oct.
Nov.**
1 Total
3,357
3,799
5,720
7,136
8,812
8,949
10,098
8,635
10,503
11,223
By type:
2
Payable in dollars
3
Deposits
4
Short-term investments
2,660
2,591
69
3,042
2,710
332
4,984
4,505
479
6,121
5,703
418
7,670
7,129
541
7,643
7,172
471
8,818
8,282
536
7,409
6,985
424
9,240
8,688
552
9,981
9,362
619
697
429
268
757
511
246
735
404
331
1,015
547
468
1,142
599
543
1,305
689
616
1,280
660
620
1,225
730
495
1,263
789
474
1,241
111
470
1,350
967
391
398
252
1,306
1,156
546
343
446
1,838
1,698
1,355
133
716
2,120
1,777
1,896
153
1,190
1,660
2,559
2,946
258
1,389
1,878
2,537
3,217
279
1,038
1,869
3,013
3,543
276
1,397
2.246
2,452
2.247
250
1,440
2,949
2,858
2,819
234
1,643
3,137
2,833
3,033
249
1,971
5
6
7
Payable in foreign currencies
Deposits
Short-term investments 1 .
By country:
United Kingdom
Canada
Bahamas
Japan
All other
8
9
10
11
12
1
Negotiable and other readily transferable foreign obligations payable
on demand or having a contractural maturity of not more than 1 year
from the date on which the obligation was incurred by the foreigner.
3.25
NOTE. Data represent the assets abroad of large nonbanking concerns in the United States. They are a portion of the total claims on
foreigners reported by nonbanking concerns in the United States and
are included in the figures shown in table 3.26.
LONG-TERM LIABILITIES TO A N D CLAIMS ON FOREIGNERS
in, the United States
Reported by Nonbanking Concerns
Millions of dollars, end of period
1978
1977
Area and country
Sept.
Mar.
Dec.
June
1977
Sept.**
Sept.
'3,331
r
2 Europe
3
Germany
4
Netherlands
5
Switzerland
6
United Kingdom
r
r
7 Canada
2,555
407
272
224
r
l,237
r
Mar.
June
Sept.35
3,175
'3,149
3,077
3,122
'4,719
'5,077
'5,143
5,067
5,007
2,425
255
287
241
' 1,222
'2,498
295
292
241
'1,228
2,422
282
266
236
1,214
2,471
290
275
246
1,253
'833
'79
81
42
282
'864
'74
82
49
310
'937
'75
81
48
332
943
71
76
55
363
927
76
74
58
341
r
62
'58
56
65
1,462
1,776
1,792
1,811
1,779
8 Latin America
9
Bahamas
10 Brazil
11
Chile
12
Mexico
289
151
7
1
30
284
148
7
1
30
'248
142
6
1
'27
248
141
7
1
26
234
138
7
1
29
1,367
36
134
201
187
1,402
40
144
203
177
1,387
42
154
194
183
1,298
2
143
190
188
1,283
2
144
176
217
13 Asia
14 Japan
358
319
342
305
284
250
290
255
289
254
829
94
817
66
810
83
803
78
812
70
15 Africa
16 All other i
1
67
Dec.
Claims on foreigners
Liabilities to foreigners
1 Total
1978
3
2
2
2
3
165
161
156
154
149
59
60
60
60
61
63
59
60
59
56
Includes nonmonetary international and regional organizations.
A68
3.26
International Statistics • February 1979
DISCOUNT RATES OF FOREIGN CENTRAL BANKS
Per cent per annum
Feb.
June
July
33.0 Nov.
11.25 Jan.
8.0 July
Argentina
Austria...
Belgium..
Brazil
Canada..
Denmark.
Country
Month
effective
Per
cent
18.0
4.5
6.0
1972
1978
1978
1978
1979
1977
Per
cent
France
Germany, Fed. Rep. of.
Italy
Japan
Mexico
Netherlands
9.5
3.0
10.5
3.5
4.5
6.5
Country
Month
effective
Aug.
Dec.
Sept.
Mar.
June
Oct.
1977
1977
1978
1978
1942
1978
Per
cent
7.0
6.5
1.0
12.5
5.0
United Kingdom
Month
effective
Feb.
July
Feb.
Nov.
Oct.
1978
1978
1978
1978
1970
more than one rate applicable to such discounts or advances, the rate
shown is the one at which it is understood the central bank transacts the
largest proportion of its credit operations.
NOTE. Rates shown are mainly those at which the central bank either
discounts or makes advances against eligible commercial paper and/or
government securities for commercial banks or brokers. For countries with
3.27
Rate on Jan. 31, 1979
Rate on Jan. 31, 1979
Rate on Jan. 31, 1979
Country
FOREIGN SHORT-TERM INTEREST RATES
Per cent per annum, averages of daily figures
1977
1976
Country, or type
Aug.
1 Euro-dollars
2 United Kingdom
3 Canada
4
5
6
7
Oct.
Nov.
Dec.
Jan.
6.03
8.07
7.47
8.74
9.18
8.52
8.48
9.42
8.77
9.12
9.29
9.08
10.12
10.44
9.68
11.51
12.00
10.37
11.62
12.28
10.44
11.16
12.61
10.87
4.19
1.45
7.02
8.65
4.30
2.56
4.73
9.20
3.67
0.74
6.53
8.10
3.64
0.67
6.27
7.39
3.67
0.58
6.91
7.40
3.90
0.24
11.23
7.37
3.81
0.20
8.86
7.06
4.09
0.22
10.25
6.59
3.85
0.05
8.69
6.55
16.32
10.25
7.70
14.26
6.95
6.22
11.40
7.14
4.75
11.75
7.09
4.64
10.94
7.24
4.51
10.99
8.55
4.44
11.17
9.19
4.78
11.24
9.28
4.76
11.12
8.93
4.52
over; and Japan, loans and discounts that can be called after being held
over a minimum of two month-ends.
NOTE. Rates are for 3-month interbank loans except for—Canada,
finance company paper; Belgium, time deposits of 20 million francs and
3.28
Sept.
5.58
11.35
9.39
Germany
Switzerland
Netherlands
France
8 Italy
9 Belgium
10 Japan
1979
1978
1978
FOREIGN EXCHANGE RATES
Cents per unit of foreign currency
Country/currency
1
2
3
4
5
Australia/dollar
Austria/schilling
Belgium/franc
Canada/dollar
Denmark/krone
1976
122.15
5.5744
2.5921
101.41
16.546
1977
1979
1978
1978
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
110.82
6.0494
2.7911
94.112
16.658
114.41
6.8958
3.1809
87.729
18.156
115.41
6.9490
3.1834
87.690
18.171
115.29
7.0102
3.2207
85.739
18.411
116.87
7.4526
3.4503
84.546
19.584
114.53
7.1808
3.3389
85.244
19.025
114.15
7.2621
3.3637
84.763
19.063
114.04
7.3821
3.4276
84.041
19.487
24.913
20.344
43.079
11.406
174.49
24.337
22.218
49.867
12.207
191.84
24.381
22.998
50.084
12.483
194.06
24.586
22.909
50.778
12.445
195.95
25.454
23.767
54.430
12.643
200.75
24.932
22.958
52.508
12.458
196.08
24.957
23.178
53.217
12.174
198.61
25.252
23.570
54.056
12.185
200.53
6
7
8
9
10
25.938
Finland/markka
20.942
France/franc
Germany/deutsche mark... 39.737
11.148
India/rupee
180.48
Ireland/pound
11
12
13
14
15
Italy/lira
Japan/yen
Malaysia/ringgit
Mexico/peso
Netherlands/guilder
16
17
18
19
20
New Zealand/dollar
Norway/krone
Portugal/escudo
South Africa/rand
Spain/peseta
99.115
18.327
3.3159
114.85
1.4958
96.893
18.789
2.6234
114.99
1.3287
103.64
19.079
2.2782
115.01
1.3073
105.42
19.018
2.2042
115.00
1.3344
105.58
19.189
2.1948
115.00
1.3605
107.37
20.325
2.2342
115.00
1.4317
105.41
19.736
2.1510
115.04
1.4051
105.45
19.574
2.1472
115.01
1.4085
105.64
19.730
2.1358
114.96
1.4293
21
22
23
24
Sri Lanka/rupee
Sweden/krona
Switzerland/franc
:
United Kingdom/pound...
11.908
22.957
40.013
180.48
11.964
22.383
41.714
174.49
6.3834
22.139
56.283
191.84
6.3926
22.523
60.013
194.06
6.3855
22.592
63.765
195.95
6.3757
23.349
65.117
200.75
6.4695
22.856
59.766
196.08
6.4700
22.808
59.703
198.61
6.4491
22.987
59.840
200.53
105.57
103.31
89.99
89.51
88.86
88.52
87.77
MEMO:
25 United States/dollar1
.12044
.33741
39.340
6.9161
37.846
.11328
.37342
40.620
4.4239
40.752
.11952
.53002
43.433
4.3758
46.203
.11782
.47981
43.210
4.3896
46.284
1
Index of weighted average exchange value of U.S. dollar against currencies of other G-10 countries plus Switzerland. March 1973 = 100.
Weights are 1972-76 global trade of each of the 10 countries. Series
revised as of August 1978. For description and back data, see "Index of
.12050
.52656
43.603
4.3907
46.733
.12317
.54478
45.627
4.3904
50.017
86.04
.11857
.52066
45.415
4.3881
48.512
.11863
.51038
45.524
4.3950
49.120
.11955
.50571
45.487
4.4038
50.082
the Weighted-Average Exchange Value of the U.S. Dollar: Revision" on
page 700 of the August 1978 BULLETIN.
NOTE. Averages of certified noon buying rates in New York for cable
transfers.
69
Guide to
Tabular Presentation and Statistical Releases
GUIDE
TO TABULAR
Symbols
and
c
e
P
r
Corrected
Estimated
Preliminary
Revised (Notation appears on column heading when more than half of figures in that
column are changed.)
Amounts insignificant in terms of the last
decimal place shown in the table (for
example, less than 500,000 when the
smallest unit given is millions)
General
PRESENTATION
Abbreviations
0
n.a.
n.e.c.
IPCs
REITs
RPs
SMSAs
Calculated to be zero
Not available
Not elsewhere classified
Individuals, partnerships, and corporations
Real estate investment trusts
Repurchase agreements
Standard metropolitan statistical areas
Cell not applicable.
Information
Minus signs are used to indicate (1) a decrease, (2)
a negative figure, or (3) an outflow.
" U . S . government securities" may include guaranteed issues of U.S. government agencies (the flow of
funds figures also include not fully guaranteed issues)
STATISTICAL
List Published
as well as direct obligations of the Treasury. "State
and local government' 1 also includes municipalities,
special districts, and other political subdivisions.
In some of the tables details do not add to totals
because of rounding.
RELEASES
Semiannually,
with Latest
Bulletin
Anticipated schedule of release dates for individual releases
Reference
Issue
December 1978
Page
A-76
A 70
Federal Reserve Board of Governors
G.
William
Chairman
Miller,
Henry
C. W a l l i c h
OFFICE
OF BOARD
Philip
E.
J. C h a r l e s
MEMBERS
OFFICE
JOSEPH R. COYNE, Assistant to the Board
KENNETH A. GUENTHER, Assistant to the Board
JAY PAUL BRENNEMAN, Special Assistant to the
Board
FRANK O'BRIEN, JR., Special Assistant to the
Board
JOSEPH S. SIMS, Special Assistant to the Board
DONALD J. WINN, Special Assistant to the Board
C o l d w e l l
Partee
OF STAFF
MONETARY
AND
DIRECTOR
FINANCIAL
POLICY
STEPHEN H. AXILROD, Staff
Director
EDWARD C. ETTIN, Deputy Staff
Director
MURRAY ALTMANN, Assistant
to the Board
PETER M. KEIR, Assistant
to the Board
STANLEY J. SIGEL, Assistant
to the Board
NORMAND R. V. BERNARD, Special Assistant
the Board
DIVISION OF RESEARCH AND
LEGAL
FOR
to
STATISTICS
DIVISION
NEAL L. PETERSEN, General
Counsel
ROBERT E. MANNION, Associate
General
Counsel
ALLEN L. RAIKEN, Associate
General
Counsel
CHARLES R. MCNEILL, Assistant to the General
Counsel
OFFICE
OF THE
SECRETARY
T h e o d o r e E . A l l i s o n , Secretary
G r i f f i t h L . G a r w o o d , Deputy Secretary
" J o h n M . W a l l a c e , Assistant Secretary
R i c h a r d H . P u c k e t t , Manager, Regulatory
Improvement Project
DIVISION
OF CONSUMER
AFFAIRS
JANET O. HART, Director
NATHANIEL E. BUTLER, Associate
JERAULD C. KLUCKMAN, Associate
ANNE GEARY, Assistant
Director
DIVISION
OF
SUPERVISION
Director
Director
BANKING
AND
REGULATION
JOHN E. RYAN, Director
fFREDERiCK C. SCHADRACK, Deputy
Director
FREDERICK R. DAHL, Associate
Director
Director
WILLIAM W. WILES, Associate
JACK M. EGERTSON, Assistant
Director
DON E. KLINE, Assistant
Director
ROBERT S. PLOTKIN, Assistant
Director
THOMAS A. SIDMAN, Assistant
Director
SAMUEL H. TALLEY, Assistant
Director
WILLIAM TAYLOR, Assistant
Director
::
On loan from the Federal Reserve Bank of Atlanta.
tOn loan from the Federal Reserve Bank of New York.
JAMES L. KICHLINE, Director
JOSEPH S. ZEISEL, Deputy
Director
JOHN H. KALCHBRENNER, Associate
Director
JOHN J. MINGO, Senior Research
Division
Officer
ELEANOR J. STOCKWELL, Senior
Research
Division
Officer
JAMES M. BRUNDY, Associate
Research
Division
Officer
ROBERT A. EISENBEIS, Associate
Research
Division
Officer
JARED J. ENZLER, Associate
Research
Division
Officer
J. CORTLAND G. PERET, Associate
Research
Division
Officer
MICHAEL J. PRELL, Associate
Research
Division
Officer
HELMUT F. WENDEL, Associate
Research
Division
Officer
ROBERT M. FISHER, Assistant Research
Division
Officer
FREDERICK M. STRUBLE, Assistant
Research
Division
Officer
STEPHEN P. TAYLOR, Assistant
Research
Division
Officer
LEVON H. GARABEDIAN, Assistant
Director
DIVISION OF INTERNATIONAL
FINANCE
EDWIN M. TRUMAN, Director
ROBERT F. GEMMILL, Associate
Director
GEORGE B. HENRY, Associate
Director
CHARLES J. SIEGMAN, Associate
Director
SAMUEL PIZER, Senior International
Division
Officer
JEFFREY R. SHAFER, Associate
International
Division
Officer
DALE W. HENDERSON, Assistant
International
Division
Officer
LARRY J. PROMISEL, Assistant
International
Division
Officer
RALPH W. SMITH, JR., Assistant
International
Division
Officer
A 71
and Official Staff
Nancy
OFFICE
STAFF
H.
Teeters
OF
OFFICE
DIRECTOR
FOR
MANAGEMENT
JOHN M. DENKLER, Staff
Director
ROBERT J. LAWRENCE, Deputy Staff
Director
JOSEPH W. DANIELS, SR., Director of Equal
Employment
Opportunity
HARRY A. GUINTER, Program Director
for
Contingency
Planning
DIVISION
OF DATA
PROCESSING
CHARLES L. HAMPTON, Director
BRUCE M. BEARDSLEY, Associate
Director
UYLESS D . BLACK, Assistant
Director
GLENN L. CUMMINS, Assistant
Director
ROBERT J. ZEMEL, Assistant
Director
OF
PERSONNEL
DAVID L. SHANNON,
Director
JOHN R. WEIS, Assistant
Director
CHARLES W. WOOD, Assistant
Director
OFFICE OF THE CONTROLLER
JOHN KAKALEC,
Controller
EDWARD T. MULRENIN, Assistant
DIVISION
DONALD E.
OF SUPPORT
Controller
SERVICES
ANDERSON,Director
JOHN L. GRIZZARD, Associate
Director
WALTER W. KREIMANN, Associate
Director
JOHN D. SMITH, Assistant
Director
DIRECTOR
RESERVE
BANK
DIVISION
BANK
OF FEDERAL
EXAMINATIONS
FOR
ACTIVITIES
WILLIAM H. WALLACE, Staff
Director
RESERVE
AND
BUDGETS
ALBERT R. HAMILTON, Director
CLYDE H. FARNSWORTH, JR.,
Associate
Director
CHARLES W. BENNETT, Assistant
Director
P. D. RING, Assistant
Director
RAYMOND L. TEED, Assistant
Director
DIVISION
BANK
DIVISION
OF STAFF
FEDERAL
OF FEDERAL
RESERVE
OPERATIONS
JAMES R. KUDLINSKI, Director
WALTER ALTHAUSEN, Assistant
Director
BRIAN M. CAREY, Assistant
Director
HARRY A. GUINTER, Assistant
Director
LORIN S. MEEDER, Assistant
Director
A 72
Federal Reserve Bulletin • February 1979
FOMC and Advisory Councils
FEDERAL OPEN MARKET COMMITTEE
G. William
Ernest
Chairman
Miller,
T. B a u g h m a n
Paul
J. C h a r l e s
Philip E. C o l d w e l l
Nancy
A. V o l c k e r ,
Vice Chairman
Partee
Henry
H. T e e t e r s
Mark
D a v i d P. E a s t b u r n
W i l l i s J.
Secretary
Assistant Secretary
E d w a r d G . G u y , Deputy General Counsel
R o b e r t E . M a n n i o n , Assistant General Counsel
Stephen H. Axilrod,
Economist
J o s e p h B u r n s , Associate
Economist
J o h n M . D a v i s , Associate
Economist
Murray
Norm and
C.
H.
R. V. B e r n a r d ,
Alan
R. H o l m e s ,
D.
Scott
Winn
Associate Economist
Associate Economist
P e t e r M . K e i r , Associate
Economist
Economist
J a m e s L . K i c h l i n e , Associate
J o h n P a u l u s , Associate
Economist
E d w i n M . T r u m a n , Associate
Economist
J o s e p h S . Z e i s e l , Associate
Economist
Altmann,
Peter
Wallich
Willes
Richard
G. Davis,
Edward
C. E t t i n ,
Manager, System Open Market Account
Deputy Manager for Domestic Operations
Deputy Manager for Foreign Operations
Stern light,
E. P a r d e e ,
FEDERAL ADVISORY COUNCIL
R o g e r E. A n d e r s o n , S e v e n t h D i s t r i c t
C l a r e n c e C. B a r k s d a l e , E i g h t h D i s t r i c t
R i c h a r d H. V a u g h a n , N i n t h D i s t r i c t
J. W . M c L e a n , T e n t h D i s t r i c t
James D. B e r r y , E l e v e n t h D i s t r i c t
C h a u n c e y E. S c h m i d t , T w e l f t h D i s t r i c t
H e n r y S. W o o d b r i d g e , f i r s t d i s t r i c t
W a l t e r B. W r i s t o n , s e c o n d d i s t r i c t
W i l l i a m B. E a g l e s o n , Jr., t h i r d d i s t r i c t
M e r l e E. G i l l i a n d , F o u r t h D i s t r i c t
J. O w e n C o l e , F i f t h D i s t r i c t
F r a n k A. P l u m m e r , S i x t h D i s t r i c t
H e r b e r t V. P r o c h n o w ,
Secretary
W i l l i a m J . K o r s v i k , Associate
Secretary
CONSUMER ADVISORY COUNCIL
D.
Warren,
Los
Marcia
A.
Hakala,
Omaha
R o l a n d E. B r a n d e l , San Francisco, California
J a m e s L. B r o w n , Milwaukee, Wisconsin
M a r k E. B u d n i t z , Boston, Massachusetts
J o h n G. B u l l , Fort Lauderdale, Florida
R o b e r t V. B u l l o c k , Frankfort, Kentucky
C a r l F e l s e n f e l d , N e w York, New York
J e a n A. F o x , Pittsburgh, Pennsylvania
R i c h a r d H. H o l t o n , Berkeley, California
Edna
DeCoursey
Johnson,
Baltimore,
Mary-
land
R i c h a r d F. K e r r , Cincinnati, Ohio
R o b e r t J. K l e i n , N e w York, New York
H a r v e y M. K u h n l e y , Minneapolis, Minnesota
Ar igeles,
William
California,
Nebraska, Vice
Chairman
Chairman
P e r c y W. L o y , Portland, Oregon
R. C. M o r g a n , El Paso, Texas
F l o r e n c e M. R i c e , N e w York, New York
Ralph
J. R o h n e r ,
Washington,
D.
C.
R a y m o n d J. S a u l n i e r , New York, New York
Henry
S. S c h e c h t e r ,
Washington,
D.
C.
E. G. S c h u h a r i , Amarillo, Texas
B l a i r C. S h i c k , Cambridge, Massachusetts
T h o m a s R. S w a n , Portland, Maine
Anne
Gary
Taylor,
Alexandria,
Virginia
R i c h a r d A. V a n W i n k l e , Salt Lake City, Utah
R i c h a r d D. W a g n e r , Simsbury, Connecticut
M a r y W. W a l k e r , Monroe, Georgia
A 73
Federal Reserve Banks, Branches, and Offices
FEDERAL RESERVE BANK,
branch, or facility
Zip
Chairman
Deputy Chairman
President
First Vice President
BOSTON*
02106
Robert M. Solow
Robert P. Henderson
Frank E. Morris
James A. Mcintosh
NEW YORK*
10045
Robert H. Knight
Boris Yavitz
Frederick D. Berkeley
Paul A. Volcker
Thomas M. Timlen
Buffalo
14240
John T. Keane
PHILADELPHIA
19105
John W. Eckman
Werner C. Brown
David P. Eastburn
Richard L. Smoot
CLEVELAND*
44101
Willis J. Winn
Walter H. MacDonald
Cincinnati
Pittsburgh
45201
15230
Robert E. Kirby
Arnold R. Weber
Lawrence H. Rogers, II
G. Jackson Tankersley
RICHMOND*
23261
E. Angus Powell
Maceo A. Sloan
I. E. Killian
Robert E. Elberson
Robert P. Black
George C. Rankin
Baltimore
21203
Charlotte
28230
Culpeper Communications
and Records Center . 22701
ATLANTA
Birmingham
Jacksonville
Miami
Nashville
New Orleans
30303
35202
32203
33152
37203
70161
CHICAGO*
60690
Detroit
48231
ST. LOUIS
63166
Little Rock
Louisville
Memphis
72203
40201
38101
MINNEAPOLIS
55480
Helena
KANSAS CITY
Denver
Oklahoma City
Omaha
DALLAS
El Paso
Houston
San Antonio
59601
64198
80217
73125
68102
75222
79999
77001
78295
SAN FRANCISCO
94120
Los Angeles
Portland
Salt Lake City
Seattle
90051
97208
84125
98124
Vice President
in charge of branch
Robert E. Showalter
Robert D. Duggan
Jimmie R. Monhollon
Stuart P. Fishburne
Albert D. Tinkelenberg
Clifford M. Kirtland, Jr.
William A. Fickling, Jr.
William H. Martin, Jr.
Copeland D. Newbern
Castle W. Jordan
Cecelia Adkins
Levere C. Montgomery
Monroe Kimbrel
Kyle K. Fossum
Robert H. Strotz
John Sagan
Jordan B. Tatter
Robert P. Mayo
Daniel M. Doyle
Armand C. Stalnaker
William B. Walton
G. Larry Kelley
James F. Thompson
Frank A. Jones, Jr.
Lawrence K. Roos
Donald W. Moriarty
Stephen F. Keating
William G. Phillips
Patricia P. Douglas
Mark H. Willes
Thomas E. Gainor
Harold W. Andersen
Joseph H. Williams
A. L. Feldman
Christine H. Anthony
Durward B. Varner
Roger Guffey
Henry R. Czerwinski
Irving A. Mathews
Gerald D. Hines
A. J. Losee
Gene M. Woodfin
Pat Legan
Ernest T. Baughman
Robert H. Boy kin
Joseph F. Alibrandi
Cornell C. Maier
Caroline L. Ahmanson
Loran L. Stewart
Wendell J. Ashton
Lloyd E. Cooney
John J. Balles
John B. Williams
Hiram J. Honea
Charles B. East
F. J. Craven, Jr.
Jeffrey J. Wells
George C. Guynn
William C. Conrad
John F. Breen
Donald L. Henry
L. Terry Britt
John D. Johnson
Wayne W. Martin
William G. Evans
Robert D. Hamilton
Fredric W. Reed
J. Z. Rowe
Carl H. Moore
Richard C. Dunn
Angelo S. Carella
A. Grant Holman
Gerald R. Kelly
* Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; Cranford,
New Jersey 07016; Jericho, New York 11753; Utica at Oriskany, New York 13424; Columbus, Ohio 43216; Columbia, South
Carolina 29210; Charleston, West Virginia 25311; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; and Milwaukee,
Wisconsin 53202.
A 74
Federal Reserve Board Publications
Available from Publications Services, Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551.
Where
a charge is indicated,
remittance should
accompany
request and be made payable to the order of the Board
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Remittance from foreign residents should be drawn on a U.S.
bank. (Stamps and coupons are not
accepted.)
THE
B A N K CREDIT-CARD AND CHECK-CREDIT P L A N S .
FEDERAL
RESERVE
SYSTEM—PURPOSES
FUNCTIONS. 1 9 7 4 . 1 2 5 p p .
AND
A N N U A L REPORT.
SURVEY OF CHANGES IN FAMILY FINANCES.
FEDERAL RESERVE B U L L E T I N .
Monthly.
$20.00
per
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issue to one address, $18.00 per year or $1.75
each. Elsewhere, $ 2 4 . 0 0 per year or $ 2 . 5 0 each.
BANKING
AND
MONETARY
STATISTICS,
1914-1941.
(Reprint of Part 1 only) 1976. 682 pp. $5.00.
BANKING
AND
MONETARY
STATISTICS,
1941-1970.
1976. 1,168 pp. $15.00.
A N N U A L STATISTICAL DIGEST, 1 9 7 1 - 7 5 . 1 9 7 6 . 3 3 9 p p .
$4.00 per copy for each paid subscription to Federal Reserve Bulletin. All others, $ 5 . 0 0 each.
A N N U A L STATISTICAL DIGEST, 1 9 7 2 - 7 6 . 1 9 7 7 . 3 8 8 p p .
$10.00 per copy.
1978. 361 pp.
$12.00 per copy.
FEDERAL RESERVE CHART BOOK. Issued four t i m e s a
year in February, May, August, and November
Subscription includes one issue of Historical Chart
Book. $ 7 . 0 0 per year or $2.00 each in the United
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HISTORICAL CHART BOOK. Issued annually in Sept.
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$1.25 each in the United States, its possessions,
Canada, and Mexico; 10 or more to one address,
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CAPITAL MARKET DEVELOPMENTS. W e e k l y . $ 1 5 . 0 0 p e r
year or $.40 each in the United States, its possessions, Canada, and Mexico; 10 or more of same
issue to one address, $ 1 3 . 5 0 per year or $.35 each.
Elsewhere, $20.00 per year or $ . 5 0 each.
SELECTED INTEREST AND EXCHANGE R A T E S — W E E K L Y
SERIES OF CHARTS. W e e k l y . $ 1 5 . 0 0 p e r y e a r or
$.40 each in the United States, its possessions,
Canada, and Mexico; 10 or more of same issue
to one address, $13.50 per year or $.35 each.
Elsewhere, $20.00 per year or $ . 5 0 each.
THE FEDERAL RESERVE ACT, as a m e n d e d through D e -
cember 1976, with an appendix containing provisions of certain other statutes affecting the Federal
Reserve System. 307 pp. $2.50.
REGULATIONS OF THE BOARD OF GOVERNORS OF THE
FEDERAL RESERVE SYSTEM
PUBLISHED INTERPRETATIONS OF THE BOARD OF GOV-
ERNORS, as of June 30, 1978. $7.50.
EDITION.
1977.
304
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1968.
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REPORT OF THE JOINT TREASURY-FEDERAL RESERVE
STUDY OF THE U . S . GOVERNMENT SECURITIES
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GOVERNMENT SECURITIES MARKET: STAFF S T U D -
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OPEN MARKET POLICIES AND OPERATING
PROCED U R E S — S T A F F STUDIES.
1971. 2 1 8 pp.
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A N N U A L STATISTICAL DIGEST, 1 9 7 3 - 7 7 .
INDUSTRIAL P R O D U C T I O N — 1 9 7 6
1968.
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$.85 each.
REAPPRAISAL OF THE
MECHANISM. Vol.
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1. 1 9 7 1 . 2 7 6 p p . Vol. 2 . 1 9 7 1 .
173 pp. Vol. 3. 1972. 220 pp. Each volume $3.00;
10 or more to one address, $ 2 . 5 0 each.
T H E ECONOMETRICS OF PRICE DETERMINATION
CON-
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1972. 397 pp. Cloth ed. $ 5 . 0 0 each; 10 or more
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10 or more to one address, $ 3 . 6 0 each.
FEDERAL RESERVE STAFF S T U D Y : W A Y S TO MODERATE
FLUCTUATIONS
IN
HOUSING
CONSTRUCTION .
1972. 487 pp. $ 4 . 0 0 each; 10 or more to one
address, $ 3 . 6 0 each.
LENDING
FUNCTIONS
OF
THE
FEDERAL
RESERVE
BANKS. 1973. 271 pp. $ 3 . 5 0 each; 10 or more
to one address, $ 3 . 0 0 each.
IMPROVING THE MONETARY AGGREGATES ( R e p o r t o f t h e
Advisory Committee on Monetary Statistics).
1976. 43 pp. $ 1 . 0 0 each; 10 or more to one
address, $.85 each.
A N N U A L PERCENTAGE RATE TABLES ( T r u t h in
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1969. 100 pp. Vol. II (Irregular Transactions).
1969. 116 pp. Each volume $1.00, 10 or more
of same volume to one address, $.85 each.
FEDERAL RESERVE MEASURES OF CAPACITY AND C A PACITY UTILIZATION. 1 9 7 8 . 4 0 p p . $ 1 . 7 5 e a c h ,
10 or more to one address, $1.50. each.
THE BANK HOLDING COMPANY MOVEMENT TO 1 9 7 8 :
A COMPENDIUM. 1 9 7 8 . 2 8 9 p p . $ 2 . 5 0 e a c h , 10
or more to one address, $2.25 each.
IMPROVING
THE
MONETARY
AGGREGATES:
STAFF
PAPERS. 1978. 170 pp. $4.00 each, 10 or more
to one address, $3.75 each.
1 9 7 7 CONSUMER CREDIT SURVEY. 1 9 7 8 . 1 1 9 p p .
each.
$2.00
Federal Reserve Board Publications
A 75
Reprint
CONSUMER EDUCATION PAMPHLETS
(Short pamphlets suitable for classroom
copies available without
charge.)
use.
Multiple
(Except for Staff Papers, Staff Studies,
and some
leading articles, most of the articles reprinted do not
exceed 12 pages.)
CONSUMER HANDBOOK TO CREDIT PROTECTION LAWS
T H E EQUAL CREDIT OPPORTUNITY A C T AND . . . A G E
T H E EQUAL CREDIT OPPORTUNITY A C T AND . . .
CREDIT RIGHTS IN HOUSING
THE EQUAL CREDIT OPPORTUNITY A C T AND . . .
DOCTORS, LAWYERS, SMALL RETAILERS,
AND
OTHERS W H O M A Y PROVIDE INCIDENTAL CREDIT
THE EQUAL CREDIT OPPORTUNITY A C T AND .
WOMEN
FAIR CREDIT BILLING
A G U I D E TO FEDERAL RESERVE REGULATIONS
H O W TO FILE A CONSUMER CREDIT COMPLAINT
IF Y O U BORROW TO B U Y STOCK
IF Y O U USE A CREDIT CARD
TRUTH IN LEASING
U . S . CURRENCY
MEASURES OF SECURITY CREDIT. 1 2 / 7 0 .
REVISION OF B A N K CREDIT SERIES. 1 2 / 7 1 .
ASSETS AND LIABILITIES OF FOREIGN BRANCHES OF
U . S . BANKS. 2 / 7 2 .
B A N K DEBITS, DEPOSITS, AND DEPOSIT T U R N O V E R —
REVISED SERIES. 7 / 7 2 ,
YIELDS ON N E W L Y ISSUED CORPORATE B O N D S . 9 / 7 2 .
RECENT ACTIVITIES OF FOREIGN BRANCHES OF U . S .
BANKS. 1 0 / 7 2 .
REVISION OF CONSUMER CREDIT STATISTICS. 1 0 / 7 2 .
O N E - B A N K HOLDING COMPANIES BEFORE THE 1 9 7 0
W H A T TRUTH IN LENDING M E A N S TO Y O U
RATES ON CONSUMER INSTALMENT L O A N S .
N E W SERIES FOR LARGE MANUFACTURING
STAFF
U.S.
AMENDMENTS.
12/72.
YIELDS ON RECENTLY OFFERED CORPORATE
BONDS.
5/73.
9/73.
CORPORA-
TIONS. 10/73.
STUDIES
Studies and papers
that are of general
on economic
interest.
and financial
subjects
Summaries Only Printed in the Bulletin
(Limited supply of mimeographed
available upon request for single
copies
copies.)
of full
text
STRUCTURE AND PERFORMANCE STUDIES IN BANKING:
A SUMMARY AND EVALUATION, b y S t e p h e n A .
Rhoades. Dec. 1977. 4 5 pp.
A N ANALYSIS OF FEDERAL RESERVE ATTRITION SINCE
1960, by John T. Rose. Jan. 1978. 4 4 pp.
PROBLEMS IN APPLYING DISCRIMINANT ANALYSIS IN
CREDIT SCORING MODELS, b y R o b e r t A . E i s e n b e i s .
Jan. 1 9 7 8 . 2 8 pp.
EXTERNAL CAPITAL FINANCING REQUIREMENTS OF
COMMERCIAL BANKS: 1 9 7 7 - 8 1 , b y G e r a l d A . H a n -
weck and John J. Mingo. Feb. 1978. 34 pp.
MORTGAGE BORROWING AGAINST EQUITY IN EXISTING
HOMES: MEASUREMENT, GENERATION, AND IMPLICATIONS FOR ECONOMIC ACTIVITY, b y D a v i d F .
Seiders. May 1978. 4 2 pp.
THE BEHAVIOR OF MEMBER B A N K REQUIRED RESERVE
RATIOS AND THE EFFECTS OF BOARD ACTION,
1 9 6 8 - 7 7 , by Thomas D. Simpson. July 1978. 39
pp.
FOOTHOLD ACQUISITIONS AND B A N K MARKET STRUC-
TURE, by Stephen A. Rhoades and Paul Schweitzer, July 1978. 8 pp.
INTEREST RATE CEILINGS AND DISINTERMEDIATION, b y
Edward F. McKelvey. Sept. 1978. 105 pp.
T H E RELATIONSHIP BETWEEN RESERVE RATIOS AND
THE MONETARY AGGREGATES UNDER RESERVES
AND FEDERAL F U N D S RATE OPERATING TARGETS,
by Kenneth J. Kopecky. Dec. 1978. 58 pp.
TIE-INS BETWEEN THE GRANTING OF CREDIT AND
SALES OF INSURANCE BY B A N K HOLDING COMPANIES AND OTHER LENDERS, b y R o b e r t A . E i s e n b e i s
and Paul R. Schweitzer. Feb. 1978. 75 pp.
Printed in Full in the Bulletin
Staff Studies
shown
under
"Reprints.
"
ENERGY
SUPPLIES
AND
USES,
Staff
Economic
Study by Clayton Gehman. 12/73.
T H E STRUCTURE OF MARGIN CREDIT. 4 / 7 5 .
N E W STATISTICAL SERIES ON L O A N COMMITMENTS AT
SELECTED LARGE COMMERCIAL B A N K S . 4 / 7 5 .
RECENT TRENDS IN FEDERAL B U D G E T POLICY. 7 / 7 5 .
RECENT DEVELOPMENTS IN INTERNATIONAL FINANCIAL
MARKETS. 10/75.
M I N N I E : A SMALL VERSION OF THE M I T - P E N N - S S R C
ECONOMETRIC MODEL, Staff Economic Study by
Douglas Battenberg, Jared J. Enzler, and Arthur
M. Havenner. 11/75.
A N ASSESSMENT OF B A N K HOLDING COMPANIES,
Staff
Economic Study by Robert J. Lawrence and Samuel H. Talley. 1/76.
INDUSTRIAL ELECTRIC POWER U S E . 1 / 7 6 .
REVISION OF M O N E Y STOCK MEASURES. 2 / 7 6 .
SURVEY OF FINANCE COMPANIES, 1 9 7 5 . 3 / 7 6 .
REVISED SERIES FOR MEMBER B A N K DEPOSITS
AGGREGATE RESERVES. 4 / 7 6 .
INDUSTRIAL PRODUCTION—1976 R e v i s i o n .
AND
6/76.
FEDERAL RESERVE OPERATIONS IN PAYMENT M E C H A NISMS: A SUMMARY. 6 / 7 6 .
RECENT GROWTH IN ACTIVITIES OF U . S . OFFICES OF
BANKS.
10/76.
N E W ESTIMATES OF CAPACITY UTILIZATION: M A N U FACTURING AND MATERIALS. 1 1 / 7 6 .
B A N K HOLDING COMPANY FINANCIAL DEVELOPMENTS
IN 1976. 4 / 7 7 .
SURVEY OF TERMS OF B A N K L E N D I N G — N E W SERIES.
5/77.
THE COMMERCIAL PAPER M A R K E T . 6 / 7 7 .
CONSUMPTION AND FIXED INVESTMENT IN THE ECONOMIC RECOVERY ABROAD. 1 0 / 7 7 .
RECENT DEVELOPMENTS IN
TRANSACTIONS. 4 / 7 8 .
U.S.
INTERNATIONAL
THE FEDERAL B U D G E T IN THE 1 9 7 0 ' s . 9 / 7 8 .
SUMMARY MEASURES OF THE DOLLAR'S FOREIGN E X CHANGE V A L U E . 1 0 / 7 8 .
SURVEY OF TIME AND SAVINGS DEPOSITS AT A L L COMMERCIAL B A N K S , JULY 1 9 7 8 . 1 1 / 7 8 .
REDEFINING THE MONETARY AGGREGATES. 1 / 7 9 .
76
Index to Statistical Tables
References
are to pages A-3 through A-68 although
ACCEPTANCES, bankers, 11, 25, 27
Agricultural loans, commercial banks, 18, 2 0 - 2 2 , 26
Assets and liabilities (See also Foreigners):
Banks, by classes, 16, 17, 18, 2 0 - 2 3 , 29
Domestic finance companies, 39
Federal Reserve Banks, 12
Nonfinancial corporations, current, 38
Automobiles:
Consumer instalment credit, 42, 43
Production, 48, 49
BANKERS balances, 16, 18, 20, 21, 22
(See also Foreigners)
Banks for cooperatives, 35
Bonds (See also U.S. Government securities):
New issues, 36
Yields, 3
Branch banks:
Assets and liabilities of foreign branches of U.S.
banks, 56
Liabilities of U.S. banks to their foreign
branches, 23
Business activity, 46
Business expenditures on new plant and
equipment, 38
Business loans (See Commercial and industrial
loans)
CAPACITY utilization, 46
Capital accounts:
Banks, by classes, 16, 17, 19, 20
Federal Reserve Banks, 12
Central banks, 68
Certificates of deposit, 23, 27
Commercial and industrial loans:
Commercial banks, 15, 18, 23, 26
Weekly reporting banks, 20, 21, 22, 23, 24
Commercial banks:
Assets and liabilities, 3, 15-19, 2 0 - 2 3
Business loans, 26
Commercial and industrial loans, 24, 26
Consumer loans held, by type, 42, 43
Loans sold outright, 23
Number, by classes, 16, 17, 19
Real estate mortgages held, by type of holder and
property, 41
Commercial paper, 3, 24, 25, 27, 39
Condition statements (See Assets and liabilities)
Construction, 46, 50
Consumer instalment credit, 42, 43
Consumer prices, 46, 51
Consumption expenditures, 52, 53
Corporations:
Profits, taxes, and dividends, 37
Security issues, 36, 65
Cost of living (See Consumer prices)
Credit unions, 29, 42, 43
Currency and coin, 5, 16, 18
Currency in circulation, 4, 14
Customer credit, stock market, 28
DEBITS to deposit accounts, 13
Debt (See specific types of debt or
securities)
the prefix
"A"
is omitted
in this index
Demand deposits:
Adjusted, commercial banks, 13, 15, 19
Banks, by classes, 16, 17, 19, 2 0 - 2 3
Ownership by individuals, partnerships, and
corporations, 25
Subject to reserve requirements, 15
Turnover, 13
Deposits (See also specific types of deposits):
Banks, by classes, 3, 16, 17, 19, 2 0 - 2 3 , 29
Federal Reserve Banks, 4, 12
Subject to reserve requirements, 15
Turnover, 13
Discount rates at Reserve Banks (See Interest rates)
Discounts and advances by Reserve Banks (See Loans)
Dividends, corporate, 37
EMPLOYMENT, 46, 47
Euro-dollars, 27
FARM mortgage loans, 41
Farmers Home Administration, 41
Federal agency obligations, 4, 11, 12, 13, 34
Federal and Federally sponsored credit agencies, 35
Federal finance:
Debt subject to statutory limitation and
types and ownership of gross debt, 32
Receipts and outlays, 30, 31
Treasury operating balance, 30
Federal Financing Bank, 30, 35
Federal funds, 3, 6, 18, 20, 21, 22, 27, 30
Federal home loan banks, 35
Federal Home Loan Mortgage Corp., 35, 40, 41
Federal Housing Administration, 35, 40, 41
Federal intermediate credit banks, 35
Federal land banks, 35, 41
Federal National Mortgage Assn., 35, 40, 41
Federal Reserve Banks:
Condition statement, 12
Discount rates (See Interest rates)
U.S. Government securities held, 4, 12, 13, 32, 33
Federal Reserve credit, 4, 5, 12, 13
Federal Reserve notes, 12
Federally sponsored credit agencies, 35
Finance companies:
Assets and liabilities, 39
Business credit, 39
Loans, 20, 21, 22, 42, 43
Paper, 25, 27
Financial institutions, loans to, 18, 2 0 - 2 2
Float, 4
Flow of funds, 44, 45
Foreign:
Currency operations, 12
Deposits in U.S. banks, 4, 12, 19, 20, 21, 22
Exchange rates, 68
Trade, 55
Foreigners:
Claims on, 60, 61, 66, 67
Liabilities to, 23, 5 6 - 5 9 , 6 4 - 6 7
GOLD.
Certificates, 12
Stock, 4, 55
Government National Mortgage Assn., 35, 40, 41
Gross national product, 52, 53
A165Federal Reserve Bulletin • February 1979
HOUSING, new and existing units, 50
INCOME, personal and national, 46, 52, 53
Industrial production, 46, 48
Instalment loans, 42, 43
Insurance companies, 29, 32, 33, 41
Insured commercial banks, 17, 18, 19
Interbank deposits, 16, 17, 20, 21, 22
Interest rates:
Bonds, 3
Business loans of banks, 26
Federal Reserve Banks, 3, 8
Foreign countries, 68
Money and capital markets, 3, 27
Mortgages, 3, 4 0
Prime rate, commercial banks, 26
Time and savings deposits, maximum rates, 10
International capital transactions of the United
States, 5 6 - 6 7
International organizations, 5 6 - 6 1 , 64—67
Inventories, 52
Investment companies, issues and assets, 37
Investments (See also specific types of investments):
Banks, by classes, 16, 17, 18, 20, 21, 22, 29
Commercial banks, 3, 15, 16, 17, 18
Federal Reserve Banks, 12, 13
Life insurance companies, 29
Savings and loan assns., 29
LABOR force, 47
Life insurance companies (See Insurance companies)
Loans (See also specific types of loans):
Banks, by classes, 16, 17, 18, 2 0 - 2 3 , 29
Commercial banks, 3, 15-18, 2 0 - 2 3 , 24, 26
Federal Reserve Banks, 3, 4, 5, 8, 12, 13
Insurance companies, 29, 41
Insured or guaranteed by United States, 40, 41
Savings and loan associations, 29
MANUFACTURING:
Capacity utilization, 46
Production, 46, 49
Margin requirements, 28
Member banks:
Assets and liabilities, by classes, 16, 17, 18
Borrowings at Federal Reserve Banks, 5, 12
Number, by classes, 16, 17, 19
Reserve position, basic, 6
Reserve requirements, 9
Reserves and related items, 3, 4, 5, 15
Mining production, 49
Mobile home shipments, 50
Monetary aggregates, 3, 15
Money and capital market rates (See Interest rates)
Money stock measures and components, 3, 14
Mortgages (See Real estate loans)
Mutual funds (See Investment companies)
Mutual savings banks, 3, 10, 2 0 - 2 2 , 29, 32, 33, 41
NATIONAL banks, 17, 19
National defense outlays, 31
National income, 52
Nonmember banks, 17, 18, 19
OPEN market transactions, 11
PERSONAL income, 53
Prices:
Consumer and wholesale, 46, 51
Stock market, 28
Prime rate, commercial banks, 26
Production, 46, 48
Profits, corporate, 37
REAL estate loans:
Banks, by classes, 18, 2 0 - 2 3 , 29, 41
Life insurance companies, 29
Mortgage terms, yields, and activity, 3, 40
Type of holder and property mortgaged, 41
Reserve position, basic, member banks, 6
Reserve requirements, member banks, 9
Reserves:
Commercial banks, 16, 18, 20, 21, 22
Federal Reserve Banks, 12
Member banks, 3, 4, 5, 15, 16, 18
U.S. reserve assets, 55
Residential mortgage loans, 40
Retail credit and retail sales, 42, 43, 46
SAVING:
Flow of funds, 44, 45
National income accounts, 53
Savings and loan assns., 3, 10, 29, 33, 41, 44
Savings deposits (See Time deposits)
Savings institutions, selected assets, 29
Securities (See also U.S. Government securities):
Federal and Federally sponsored agencies, 35
Foreign transactions, 65
New issues, 36
Prices, 28
Special Drawing Rights, 4, 12, 54, 55
State and local govts.:
Deposits, 19, 20, 21, 22
Holdings of U.S. Government securities, 32, 33
New security issues, 36
Ownership of securities of, 18, 20, 21, 22, 29
Yields of securities, 3
State member banks, 17
Stock market, 28
Stocks (See also Securities):
New issues, 36
Prices, 28
TAX receipts, Federal, 31
Time deposits, 3, 10, 13, 15, 16, 17, 19, 20, 21,
22, 23
Trade, foreign, 55
Treasury currency, Treasury cash, 4
Treasury deposits, 4, 12, 30
Treasury operating balance, 30
UNEMPLOYMENT, 47
U.S. balance of payments, 54
U.S. Government balances:
Commercial bank holdings, 19, 20, 21, 22
Member bank holdings, 15
Treasury deposits at Reserve Banks, 4, 12, 30
U.S. Government securities:
Bank holdings, 16, 17, 18, 20, 21, 22, 29,
32, 33
Dealer transactions, positions, and financing, 34
Federal Reserve Bank holdings, 4, 12, 13, 32, 33
Foreign and international holdings and
transactions, 12, 32, 64
Open market transactions, 11
Outstanding, by type of security, 32, 33
Ownership, 32, 33
Rates in money and capital markets, 3, 27
Yields, 3
Utilities, production, 49
VETERANS Administration, 40, 41
WEEKLY reporting banks, 2 0 - 2 4
Wholesale prices, 46
YIELDS (See Interest rates)
78
The Federal Reserve System
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