Full text of Federal Reserve Bulletin : January 1978

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JANUARY 1978

FEDERAL RESERVE

BULLETIN
The Economic Expansion In 1977




A copy of the Federal Reserve BULLETIN is sent to each member bank without charge; member banks desiring
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or $2.50 per copy. Group subscriptions in the United States for 10 or more copies to one address, $1.75
per copy per month, or $18.00 for 12 months.
The BULLETIN may be obtained from the Division of Administrative Services, Board of Governors of the
Federal Reserve System, Washington, D.C. 20551, and remittance should be made payable to the order
of the Board of Governors of the Federal Reserve System in a form collectible at par in U.S. currency.
(Stamps and coupons are not accepted.)




N U M B E R

1 •

V O L U M E

64

•

J A N U A R Y

1978

FEDERAL RESERVE

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

P U B L I C A T I O N S

C O M M I T T E E

Joseph R. Coyne, Chairman • Stephen H. Axilrod • John M. Denkler
Janet O. Hart • John D. Hawke, Jr. • James L. Kichline • Edwin M. Truman
Richard H. Puckett, Staff Director
The Federal Reserve BULLETIN is issued monthly under the direction of the staff publications committee. This committee is responsible for
opinions expressed except in official statements and signed articles. Direction for the art work is provided by Mack R. Rowe. Editorial
support is furnished by the Economic Editing Unit headed by Elizabeth B. Sette.




Table of Contents
tive for the weekly-average Federal
funds rate should be varied in an orderly
fashion within a range of 6lA to 63A per
cent. As to the annual rates of growth in
M-l and M-2 over the NovemberDecember period, the Committee
specified ranges of 1 to 7 per cent and 5
to 9 per cent, respectively.

1 T H E E C O N O M I C E X P A N S I O N I N 1977

Economic growth continued to increase
briskly during 1977 highlighted by large
gains in residential construction and inventory investment. With demands
strong in most sectors, total employment rose at a near-record pace and the
unemployment rate declined significantly.

27 L A W DEPARTMENT

Amendments to Regulations D, H, and
Y; various bank holding company and
bank merger orders.

12 S T A F F E C O N O M I C S T U D I E S

Summary of "An Analysis of Federal
Reserve System Attrition Since I960"
looks beyond the aggregate data to
examine the several components involved in the attrition phenomenon.
Summary of "Problems in Applying
Discriminant Analysis in Credit Scoring
Models" reviews the types of models
used to appraise the creditworthiness of
loan applicants and the statistical problems associated with those models that
use discriminant analysis techniques.
15 R E C O R D OF P O L I C Y A C T I O N S OF T H E
FEDERAL OPEN MARKET COMMITTEE

At its meeting on November 15, 1977,
the Federal Open Market Committee
decided that operations in the period
immediately ahead should be directed
toward maintenance of prevailing
money market conditions, as represented by the then current level of
the Federal funds rate. However, the
members agreed that if growth in the
aggregates should appear to approach
or move beyond the limits of their
specified ranges, the operational objec-




59

ANNOUNCEMENTS

Resignation of Dr. Arthur F. Burns as a
member of the Board of Governors.
The Board of Governors approved an
increase in the discount rate from 6 to
6V2 per cent.
The U.S. Treasury and the Board of
Governors issued an announcement
concerning joint intervention in the
foreign exchange markets to check
speculation and to re-establish order
in those markets.
The results of a survey of foreign lending by large U.S. banks as of June 30,
1977, were made public by the Office of
the Comptroller of the Currency, the
Federal Deposit Insurance Corporation,
and the Board of Governors.
The Federal bank regulatory agencies
issued a joint policy statement on January 17, 1978, concerning improper and
illegal payments by banks and bank
holding companies.

Preliminary figures indicate that gross
current earnings of the Federal Reserve
Banks amounted to $6.89 billion during
1977, an increase of 4.0 per cent from a
year earlier.
The Board has approved the 1978
budgets of the 12 Federal Reserve
Banks, permitting a 3 per cent increase
over outlays anticipated for 1977.
Outline of procedures for processing of
requests for copies of materials scheduled to be discussed at meetings of the
Board that are open to public observation.
The proposed effective date of revisions
in quarterly reports by State member
banks of their condition and income has
been postponed.

65 INDUSTRIAL PRODUCTION

Output increased 0.2 per cent in December.
A1

F I N A N C I A L A N D B USINESS STATISTICS

A3 Domestic Financial Statistics
A46 Domestic Nonflnancial Statistics
A54 International Statistics
A69 GUIDE

TO T A B U L A R

PRESENTATION

AND STATISTICAL RELEASES
A 7 0 BOARD OF GOVERNORS AND S T A F F
All

OPEN

MARKET

COMMITTEE

AND

S T A F F ; ADVISORY COUNCILS
A73

FEDERAL RESERVE BANKS,
BRANCHES, AND OFFICES

Comment has been invited on proposed
plans to enhance and improve payments
services to financial institutions and the
public.

A 7 4 FEDERAL RESERVE BOARD

Changes in Board staff.

A 7 6 I N D E X TO S T A T I S T I C A L T A B L E S

One State bank was admitted to membership in the Federal Reserve System.

A 7 8 M A P OF F E D E R A L RESERVE SYSTEM




PUBLICATIONS

The Economic Expansion in 1977
This article was prepared by James L. Freund
of the National Income Section, Division of
Research and Statistics.
Expansion of economic activity was brisk
from late 1976 to late 1977 with advances in
aggregate demand widespread among sectors. Total employment rose at a near-record
pace, and although the labor force also grew
at an extremely rapid rate, unemployment
had dropped significantly by the fourth quarter of 1977. Prices rose somewhat more
during 1977 than 1976, in large part because of a steep increase in food prices early
in the year. Higher energy costs continued to
have an adverse effect on over-all economic
activity; in particular, an increased volume of
petroleum imports and higher oil prices were
major factors in the shift of the Nation's
net exports into deficit in 1977.
At the beginning of 1977 fundamental questions were raised as to the durability of the
expansion. The unbalanced composition of
growth—with consumer spending and inventory investment providing much of the
strength—was a source of concern. The outlook for further gains in consumption was
uncertain, with the saving rate at an unusually low level. Moreover, there were doubts
whether spending on business fixed investment would gather momentum in light of factory operating rates that were still low and
a persistent climate of uncertainty.
As the year unfolded, growth was marked
by a pattern of uneven advances in domestic
activity. Large gains occurred in the housing
sector as construction activity rose sharply in
response to strong underlying demands and an
ample supply of mortgage funds. In the government sector, an upward shift in both State
and local and Federal purchases also helped




to sustain growth in final sales. Further, following a sharp shift to inventory accumulation early in the year, a cautious posture by
businesses kept stocks generally in line with
sales.
The sectors of greatest concern—consumption and business fixed investment—also
made important contributions toward maintaining over-all economic growth. Consumer
spending advanced more moderately than
gross national product as a whole in 1977. A
strong surge in durable goods sales that boosted
growth in the first quarter was followed by a
midyear lull. However, renewed strength in
consumption at year-end provided further
momentum to economic growth. Business
fixed investment provided substantial support
during 1977, but gains moderated somewhat
after a first-quarter surge that included a
rebound from the effects of earlier strikes. At
the end of the year, real capital spending by
business remained below the pre-recession
peak of early 1974, whereas at this point in
previous expansions real capital outlays were
typically well above earlier peak levels.

Change in GNP
Per cent
20
Current

allien to
nLln
'••I]
Real

10

10

1974
1975
1976
1977
Dept. of Commerce data, seasonally adjusted at compound annual rates. Real is in terms of 1972 dollars. 1977 Q4 estimated.

2

Federal Reserve Bulletin • January 1978

As 1977 came to a close, most indicators
pointed to continued moderate growth over
the near term. Consumer spending continued
strong through the holiday season, and buyer
sentiment remained at relatively high levels.
In part because of this strength in sales, inventory investment moved lower at year-end,
and a faster growth of stocks seemed likely in
early 1978. The housing expansion continued
to exhibit near-term strength as starts of new
units continued to rise and as sales of existing
units remained at record-setting levels. However, by the end of the year attention again
centered on longer-term prospects for business fixed investment and personal consumption outlays. Surveys and commitments data
suggested slower growth of investment outlays in 1978. In addition, both business and
consumers were facing higher payroll
taxes—which would damp growth of disposable income—in both January 1978 and January 1979. In view of these developments, the
administration proposed reductions in both
personal and corporate taxes designed to
sustain these two critical components of
aggregate demand.
GNP and final sales
Billions of 1972 dollars

table in the housing area, as sales and construction of single-family dwellings reached
unusually high levels. Consumption outlays
rose somewhat less rapidly in 1977 than during the two prior years but continued to provide considerable support to over-all growth.
HOUSING

Throughout the recovery, housing activity
has been very brisk, with especially large
gains in the West and South. In 1977 continued
strong demand led to record levels of sales for
new and existing homes. This strength stimulated a continuous rise in housing starts that,
together with heavy spending on additions and
alterations, boosted real residential outlays
15 per cent during the year.
Employment and product demands
spawned by the rise in residential investment
were impressive. Employment in the construction industry—including both residential
and nonresidential work—increased almost 10
per cent during the year. In addition, production of building supplies rose about IVi per
cent, generating large gains in employment
within supplier industries.
The strong showing of residential construction activity in 1977 was facilitated by developments in financial markets. Net residential mortgage debt formation is estimated to
have totaled a record $98 billion, as lending
by thrift institutions was supplemented by
stepped-up commercial bank participation
and by large issues of mortgage-backed, "passthrough" securities.
For the year as a whole private housing
Privately owned housing starts
Ratio scale, millions of units

Dept. of Commerce data, seasonally adjusted at annual rates.
1977 Q4 estimated.

H O U S E H O L D

S E C T O R

Economic growth continued to be supported
during 1977 by strong demands originating in
the household sector. Such support was no


Dept. of Commerce data, seasonally adjusted at annual rates.

Economic Expansion in 1977

starts totaled almost 2 million units. Starts of
single-family homes rose about one-fourth
from the 1976 volume to about 1.45 million
units, reaching the highest level since 1955. In
the multifamily sector, special Federally supported units—primarily under the Department
of Housing and Urban Development's Section 8 Rental Assistance Program—accounted
for about a fifth of all multifamily starts.
Market conditions facing builders of units
that were not Federally supported varied considerably across the country. In some areas
low vacancy rates and rising rents provided
the basis for moderate increases in rental
housing starts, while elsewhere rents remained too low to justify much construction.
Nationwide, multifamily starts totaled 535,000
units during 1977—an increase of 40 per cent
from 1976 but still only approximately half the
peak reached in 1972.
Activity in housing markets was particularly ebullient in the final quarter of the year.
Combined sales of new and existing homes
were at an annual rate of 4.8 million units,
and single-family housing starts were at an
annual rate of nearly 1.6 million units—
the highest since the beginning of this series
in 1959. Starts of multifamily units were at an
annual rate of 635,000 units, almost 30 per cent
above a year earlier. Outstanding mortgage
lending commitments at thrift institutions
were at a record level—about $39 billion seasonally adjusted toward the end of 1977—
which was sufficient to support high levels of
homebuilding for some months.
CONSUMPTION

Consumption spending rose unevenly last
year with especially large increases in the
first and last quarters and comparatively
small gains in the middle quarters. The very
sharp rise in consumer spending early in 1977
largely reflected two events: the auto industry
strike of late 1976, which apparently had delayed auto purchases, and the unusually
severe winter weather, which had widespread
impacts on consumption of heating fuels and
on some food prices. Late in the year, the
strong growth of employment and disposable
income, coupled with the improved rate of



3

personal savings, provided support for a sharp
upturn of consumption spending.
Purchases of durable goods rose at a rapid
pace during the first quarter of 1977, as unit
sales of automobiles jumped more than 10 per
cent from the prior quarter. The strong sales
pace early in the year was partly attributable
to deferred purchases following the auto
strike late in 1976. Auto sales rose further to
an annual rate of 11.7 million units in the
second quarter—the strongest quarterly pace
since 1973. During that quarter, demand for
autos appeared to shift strongly in the direction of foreign models—in part, perhaps, because the administration's energy proposals
stimulated renewed interest in fuel-efficient
cars. Sales of foreign model autos continued
strong and for the year totaled 2.1 million, a
record level.
Sales of domestic autos, at an annual rate
of about 8.9 million units during the second
half of 1977, were somewhat below manufacturers' anticipations, especially at year-end.
With inventories building up, selected downward adjustments in production were instituted in November and December. Thus,
prospects for this important sector were ambiguous at year-end.
Outlays for other consumer durable goods
rose most strongly after midyear. Purchases
of furniture and appliances, stimulated in part
by record purchases of homes, rose at a 12
per cent annual rate during the last three
quarters of the year. Outlays for luxury items
such as jewelry and sporting goods, as well as
for a wide variety of other "nonessential"
durable goods, also rose briskly late in the
year.
Auto sales
Millions of units

Ward's "Automotive Reports" data.

4

Federal Reserve Bulletin • January 1978

Consumers faced larger bills for essentials
during the winter of 1976-77. Over-all consumption of heating fuels rose sharply in response to unusually cold weather east of the
Rockies. At the same time, prices of fuels
were rising sharply. Spending for natural gas,
fuel oil, coal, and electricity was at an annual
rate of nearly $52^ billion in the first quarter,
an increase of 22 per cent from a year earlier
with more than half of the rise due to higher
prices. With the return of more favorable
weather, such spending fell to an annual rate
of $48^ billion in the second quarter.
Consumer outlays for food rose sharply in
the first quarter, in part because of steep
increases in prices. Rising prices, which were
only partially a result of weather damage to
crops, persisted through the spring months.
With utility and grocery bills large, spending
on most other nondurable goods was not particularly ebullient early in the year. During the
spring, as fuel bills eased and food price
increases began to moderate, purchases of
apparel moved into an upswing that was still
strong at year-end.
Consumer surveys conducted near the end
of 1977 indicated that confidence remained at
a relatively high level. Further, with growth
of disposable income quite strong and with
personal tax cuts proposed, continued advances in consumer outlays appear to be in
prospect for 1978.
INCOME

An acceleration in income growth was supportive of household demand in 1977. Personal income rose 11% per cent during the
four quarters of 1977—up from less than 10
per cent during 1976. Advances were quite
sharp in the first half of the year as wages and
salaries rose rapidly. Growth in wages and
salaries slowed in the third quarter but picked
up again at year-end. Private wages and
salaries, particularly in manufacturing and
services, led the advance in payroll growth
during 1977; government wages and salaries
were up a modest IV2 per cent. The midyear
cost-of-living increase for social security recipients bolstered transfer payments in the



Income, consumption, and saving
Percentage change, Q4 to Q4

1974

1975

1976

1977

Dept. of Commerce data, seasonally adjusted at annual rates.
Real is in terms of 1972 dollars. 1977 Q4 estimated.

second half of the year. And farm income,
after declining for two quarters due in part
to falling farm prices, contributed significantly to income growth at year-end because
of stepped-up wheat price-support payments.
Although increases in Federal gift and social security taxes held down growth in disposable income early in the year, such income was strongly bolstered thereafter by a
cut in Federal income tax rates. Lower withholding rates, which contribute directly to
disposable income, were instituted in the second quarter. The reduction in withholding
accounted for almost one-tenth of the growth
of disposable income between the first and
third quarters. Some of the growth in disposable income was used to rebuild consumer
savings. The saving rate—which had reached
a 26-year low in the first quarter, in part
because of recently enacted estate and gift
tax law revisions—rose moderately during the
last three quarters.
Despite the large increase in disposable income, financial obligations of the household
sector reached new highs relative to disposable income late in 1977 largely as a result of
the record increase in home mortgage debt.
Thus, while this sector was supportive of
over-all activity during 1977, rising debt service requirements may narrow the proportion
of disposable income available for discretionary spending in the future.

Economic Expansion in 1977

B U S I N E S S

S E C T O R

Business investment advanced cautiously during 1977 as uncertainties concerning legislative
developments as well as the prospects for economic growth and inflation continued to cloud
the long-term outlook. Nonetheless, capital
spending was comparatively strong during the
year, and inventory imbalances were successfully avoided as production was, in general,
quickly adjusted to the uneven pace of retail
sales during the year.

FIXED

INVESTMENT

By the fourth quarter of 1977, real outlays for
plant and equipment had risen almost 9Vi per
cent from a year earlier—well above the 1976
rise and the largest increase of the current
expansion. The sharpest advances in outlays
occurred in the first half and reflected purchases of motor vehicles following a pause in
such buying during the fourth quarter of 1976,
when strikes in the auto and farm equipment
industries evidently interrupted normal purchasing schedules. Real capital outlays rose
only moderately in the third quarter, as purchases of transportation equipment leveled
off and construction of the Alaskan pipeline
drew to a close. During the fourth quarter,
however, growth of capital outlays strengthened again, reaching an 8.4 per cent annual
rate.
Continuing the pattern of recent years,
spending for new equipment was the primary

source of strength for capital outlays in
1977; it rose 11 per cent over the year. Within
the equipment sector, spending on machinery
strengthened as the year progressed, although
such outlays still did not account for the share
of capital spending that historical experience
would suggest. Total nonresidential construction advanced modestly during 1977—about 6
per cent—but commercial and industrial building activity appeared to gain strength as the
year progressed, following 2 years of little
change.
As was true in the four previous years,
growth of outlays was largest in the manufacturing sector. Spending by producers of durable goods was particularly robust, led by
gains in the motor vehicles sector—which
retooled to reduce the size of many models—
and in the machinery sector. Among producers
of nondurable goods, relatively large increases
were recorded by the petroleum and rubber
industries. Capital spending by materials producers was damped by relatively low levels of
capacity utilization and readily available
foreign supplies at competitive prices. Among
nonmanufacturing industries, a renewal of
commercial investment and another year of
large advances by utilities were partially
offset by a sharp decline in the transportation
sector due to the completion of the Alaskan
pipeline.
Despite healthy gains during 1977, business
fixed investment at year-end was still 3 per
cent below its earlier peak; a more typical
cyclical experience would have seen such

Capital outlays, constant dollars
Trough = 100

Dept. of Commerce data, seasonally adjusted.




5

1975 Q1 =100

6

Federal Reserve Bulletin • January 1978

outlays almost 13 per cent above their previous peak. In part, this weakness can be attributed to earlier imbalances between expansion in capacity and growth in output. In the
manufacturing sector, for example, capacity
grew about 3 per cent a year during the
1973-76 period, whereas the level of factory
output was about the same in both years.
This increase in capacity, together with a
comparatively moderate expansion of industrial production during 1977, left capacity
utilization rates around 83 per cent at yearend, well below the levels normally recorded
at this stage of an expansion and not much
above the reading for late 1976. These low
utilization rates probably have had a depressing effect on investment demand.
Other factors also contributed to the relatively modest recovery in investment spending. Continued uncertainty over tax and energy
policies heightened the caution that already
characterized longer-range investment plans.
The weakness in stock prices pushed up the
cost of capital and made the acquisition of
existing capital relatively attractive. Financial
developments outside of equity markets did
not seem to be affecting capital spending in an
adverse manner, however. And while the
sharp advance in book-value profits in 1977
was partially attributable to the continued,
distorting effect of inflation, the gap between
internally generated funds and capital outlays
remained unusually small over the course of
the year.
Judging from the available indicators, capital spending appears likely to increase at a
more moderate pace this year than in 1977.
New orders for nondefense capital goods and
contracts for commercial and industrial building both rose more slowly after mid-1977 than
they had earlier. In addition, surveys of capital
spending anticipations suggested continued
but more moderate advances in plant and
equipment spending during the year. Of
course, it should be remembered that spending plans were progressively scaled up during
1977. This could be the case again this year,
especially when ambiguities about energy and
tax policies are clarified.




INVENTORIES

Investment in business inventories proceeded
cautiously in 1977 and inventory/sales ratios
remained below historical averages in most
sectors. Conservative inventory policies represented a continuation of attitudes developed earlier in the recovery.
Inventory accumulation picked up sharply
in the first quarter of 1977 after the abrupt
shift to liquidation that had taken place in the
final quarter of 1976. There were further advances in the second and third quarters in
response to gains in final demand. At yearend, however, the pace of accumulation
abated considerably as final sales strengthened. The manufacturing sector rebuilt inventories at a rapid pace in the first half of 1977,
reflecting an upswing in the nondurable goods
sector. In the second half such accumulation
moderated again. Inventory investment in the
trade sector remained at generally advanced
levels throughout the year. Trade accumulation was strongest in nondurable goods in the
first quarter, but as the year progressed trade
accumulation in durable goods became quite
rapid.
By type of good, accumulation in durable
goods—which had slowed dramatically in the
fourth quarter of 1976—was fairly steady during 1977. The inventory /sales ratio for the
total durable goods sector was little changed
over the year, remaining below its average for
the last decade. By contrast, inventory activity in the nondurable goods sector fluctuated
widely over the year as firms adjusted production quickly to changes in sales. A rapid
build-up of stocks during March and April
was followed by lower investment in late
spring and early summer. By late summer
signs of renewed accumulation were evident,
and production was again adjusted downward. The fact that the inventory/sales ratio
for nondurable goods as a whole remained
essentially stable in 1977 suggests that businesses were quite successful in avoiding inventory imbalances.
Inventories appeared to remain under control at the close of the year. The rate of

Economic Expansion in 1977

inventory accumulation was apparently reduced in the fourth quarter from the rates
maintained over the second and third quarters
of the year. Indeed, stocks might be a bit on
the lean side in some sectors; hence, there
could be some pick-up in accumulation during
early 1978.

Federal receipts and expenditures
Billions of dollars
Expenditures

^

/

—

S E C T O R

Activity picked up in the government sector
during 1977. The Federal Government initiated efforts to stimulate the economy through
tax cuts, countercyclical grants-in-aid, and
increased purchases. State and local governments increased their spending somewhat;
nevertheless as a group they recorded a
record-setting operational surplus. Thus, the
over-all deficit for the entire government sector was down about $15 billion from the previous year.
FEDERAL

The Federal Government continued to run a
substantial deficit in 1977, reflecting in part
planned fiscal initiatives. Spending was
buoyed by grants-in-aid to States and localities to implement various countercyclical
spending programs, and receipts were held
down by tax cuts embodied in the Tax Reduction and Simplification Act of 1977. The Federal budget deficit, on a national-incomeaccounts (NIA) basis, was about $50 billion
during calendar year 1977—$4 billion less
than the previous year.
Real Federal purchases including both
defense and nondefense rose slightly more
than 7 per cent during 1977. This contrasts
with the small decline recorded a year earlier
and was the largest advance since the Vietnam
war build-up in the mid-1960's. National defense purchases were particularly strong, rising more than 11 per cent in nominal terms.
Nondefense spending was bolstered by a $4Vi
billion (annual rate) purchase of agricultural
products by the Commodity Credit Corporation in the third quarter that followed a sharp
drop in farm prices at midyear. The Federal




jtf
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G O V E R N M E N T

7

UMUM

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Deficit
•••••••
•

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II •111

H H H H H H H H B H H H H H I
1974

1975

1976

1977

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

civilian work force remained essentially unchanged in 1977 and, thus, continued below
the peak level reached in 1968.
Among other types of Federal expenditures, total grants-in-aid to State and local
governments increased as a result of expansion in public works, public employment, and
the countercyclical revenue-sharing programs. The largest increases in these grants
occurred around midyear and marked the initial spend-out from the programs recommended by the administration in February.
Substantially higher payments to farmers
were mainly responsible for a sharp increase
in subsidies (less current surplus) during
1977.
As has often occurred, spending during fiscal year 1977 fell short of administration and
congressional expectations. After allowing for
the withdrawal of the proposed income tax rebate, the shortfall in expenditures for the entire
year was around $1\Vi billion. The 1977 shortfall was most noticeable in defense spending for
procurement and construction and in countercyclical programs in which delays occurred
both in congressional enactment and in agency
implementation.
Total receipts in the Federal sector rose
more than 12 per cent in 1977—slightly less
than the increase a year earlier. The slowing

8

Federal Reserve Bulletin • January 1978

resulted from planned tax cuts. Personal tax
collections recorded a twelve per cent gain in
1977, led by a large increase in estate and
gift levy receipts associated with legislated
changes in the method of taxing gifts. Social
insurance tax collections were up about 13
per cent, reflecting an increase in the taxable
wage base as well as increases in payrolls.
STATE AND

LOCAL

Spending by State and local governments
was depressed in the first quarter of 1977 by
the extreme winter, but after that it increased
markedly. Real purchases of goods and services advanced more than 3 per cent from late
1976 to late 1977 after a slight decline in 1976.
Renewed growth in hiring bolstered spending
on compensation, in large part due to increases in Federally subsidized public service
jobs in the second half of the year. Between
the fourth quarter of 1976 and the fourth
quarter of 1977, over-all employment in this
sector increased by more than 350,000 jobs;
this compares with an advance of just over
200,000 positions in the corresponding period
a year earlier. A healthy rise in educational
employment contributed to the over-all

State and local government spending
Percentage change, Q4 to Q4

growth, notwithstanding declining total enrollments.
Real spending by States and localities on
new structures did rise somewhat over the
four quarters of 1977, but much of the gain
was the result of a recovery from the depressed levels to which activity had fallen during the severe winter. Despite an infusion of
countercyclical Federal aid for public works
projects and record bond volume in 1977, real
capital spending late in the year was about
one-fifth lower than the level 3 years earlier.
Total receipts rose about 11 per cent during
the year. The advance reflected increases in
local tax bases associated with the general
economic expansion as well as sharply higher
Federal grants-in-aid during the second half
of the year. State and local governments held
spending below incoming revenues throughout the year. As a result, the operational
balance—which excludes net savings by social
insurance funds—showed a record annual surplus of more than $13 billion in 1977. This is
more than double the level of the surpluses
recorded at the outset of general revenue sharing in 1972 and 1973. While the surplus during
1977 reflected to some extent unspent countercyclical grants, it also manifested an attitude
of fiscal conservatism. Many governments
apparently used unspent revenues to rebuild
cash balances that had been drawn down by
several years of fiscal stress.

REAL PURCHASES

1

I N T E R N A T I O N A L

l

i

i
Billions of dollars

BALANCES

Total NIA surplus

Operational surplus*

ISIMWMMMM
1974

1975

MHHHHHHHHi HI

1

1976

1977

Dept. of Commerce data, seasonally adjusted at annual rates.
•Excludes net savings by social insurance funds.




U.S. net exports of goods and services
showed a deficit of $9 billion in 1977 on an
NIA basis—a sharp reversal from the $7.8
billion surplus recorded in 1976. The swing
into deficit was the result of a marked decline
in the merchandise trade balance that was
only partially offset by rising net investment
income. Merchandise imports rose almost
$27 billion—oil imports, in particular, were
up sharply—while merchandise exports rose
a moderate $5Vi billion.
Exports of merchandise from the United

Economic Expansion in 1977

U.S. foreign transactions
Billions of dollars
1200

cant boost to the value of imports in 1977.
Net exports of services and military transactions (NIA defined) rose $5 billion in 1977
to $22 billion. The importance of these transactions has increased over the past several
years as income from U.S. investment abroad
and sales of military equipment to foreign
governments have grown.

L A B O R

M
1974

1975

1976

H

20

1977

Dept. of Commerce data, seasonally adjusted at annual rates.

States were constrained by slow growth in
the economies of our major trading partners.
The weakness of recoveries in capital investment in both developing and developed countries was a major depressant in this regard
since it particularly limited growth of demand
for machinery and industrial materials, which
account for about half of our merchandise
exports. The volume of agricultural exports in
1977 continued the strong trend established in
1976, but the value of these exports declined
in the latter half of the year as grain prices fell
sharply.
The sharp rise in merchandise imports in
1977 reflected a broad range of developments.
A major factor was the substantial rise in
imports of petroleum. The bill for imported
oil was $46 billion—up about 30 per cent from
1976. Increased consumption and substantial
inventory building of petroleum were met almost entirely by imports. Nonfuel imports
rose almost 20 per cent, paced by industrial
supplies, autos and related equipment, and
consumer goods. This increase reflected demands generated by the recovery of the
domestic economy as well as the effect on
import prices of excess supplies produced by
slack economies abroad. At the same time,
sharply higher prices for coffee and other
agricultural commodities provided a signifi-




9

M A R K E T

With over-all demand strong during 1977,
employment and earnings rose sharply, and
unemployment declined. Gains were widespread among the various occupation and
industry groups as total employment recorded its largest relative increase—4.4 per
cent—in more than 20 years. Nonfarm payroll
employment rose 3.1 million from late 1976 to
late 1977. Service-producing industries—
trade, miscellaneous services, and finance—
provided the largest and steadiest growth in
employment, advancing about 2 million. State
and local governments added 360,000 jobs,
with more than half the net increase in Federally subsidized positions.
With industrial production continuing to
advance at a healthy, although somewhat uneven, rate, about 700,000 jobs were added
to manufacturers' payrolls during 1977. By
Labor force employment and unemployment
Change from previous half, millions of persons

Per cent
UNEMPLOYMENT RATE
^ ^
v Total

1974

1975

1976

1977

Dept. of Labor data, seasonally adjusted at annual rates.

10

Federal Reserve Bulletin • January 1978

year-end the factory workweek and average
overtime hours had each risen 0.4 hour. New
hiring was concentrated in the durable goods
sector as demand for motor vehicles, business equipment, and consumer durable goods
picked up. By contrast, growth in most nondurable goods industries was modest over the
year. Finally, for the first time in the expansion period, employment in the construction
industry posted a significant gain.
Although rapid growth in the work force is
typical of expansionary periods, the 3.1 per
cent increase in 1977 was one of the largest
since post-World-War-II demobilization. Extending and enlarging the patterns of recent
years, adult women and teenagers entered the
labor force in near-record numbers and accounted for three-fourths of the increase during the year. The labor force participation
rate of adult women rose 1.2 percentage
points to 48.6 per cent in the fourth quarter of
1977, while teenage participation had jumped
2.6 percentage points to 57.0 per cent by the
end of the year. The participation rate of
adult males was essentially unchanged.
Unemployment fell from 7.8 per cent of the
labor force in the fourth quarter of 1976 to 6.6
per cent in the fourth quarter of 1977. Although unemployment declined for most demographic and economic groups, the reduction was concentrated among experienced
workers who had lost their jobs. Threequarters of a million "job losers" were reemployed over the year. Conversely, at
year-end joblessness among labor force
entrants—generally women and youth—was
only slightly reduced. In the final quarter of
the year the unemployment rate among
household heads was 4.2 per cent—down 1
percentage point from a year earlier.
Wages and fringe benefits continued to rise
at a rapid rate in 1977. The broadest measure
of wage rates—the average hourly earnings
index in the private nonfarm sector—rose 7.6
per cent over the four quarters of the year—a
slight acceleration from the 6.8 per cent rise
during 1976. Wages grew most rapidly in the
service sector and in those manufacturing industries in which major collective bargaining




agreements were negotiated. Most major contracts closely resembled the steel pact, with
effective wage increases—including cost-ofliving escalator clauses—amounting to between 10 and 12 per cent in the first year and
about 30 per cent over the entire 3-year life of
the contract. However, wage increases in the
construction industry were more moderate—
averaging 4.8 per cent—in part reflecting
continued high unemployment rates in this
sector.
Hourly compensation—which includes the
costs of fringe benefits and employer contributions to social security—rose 8.6 per cent
during 1977. First-quarter increases in payroll
taxes for social security and unemployment
compensation, as well as an increase in the
minimum wage, contributed importantly to
the rise.
At the same time, growth in productivity
decelerated in 1977. Over the four quarters of
1977, increases in productivity in the private
nonfarm business sector averaged about 23A
per cent—down from about a VA per cent rise
recorded during 1976.

Productivity and costs
Percentage change from previous year
HOURLY COMPENSATION
10

PRODUCTIVITY

u

u

10

Bn n n n H

UNIT LABOR COSTS

110

1974

1975

1976

1977

Dept. of Labor data for the private nonfarm business sector,
seasonally adjusted.

Economic Expansion in 1977

COSTS

A N D

PRICES

The combination of large increases in compensation and slower growth of productivity
resulted in a rise in unit labor costs of about
53A per cent during 1977. This was associated
with an underlying inflation rate that, excluding the volatile effects of food and energy
prices, remained for a second year in the
neighborhood of 6 per cent.
Over-all prices rose more during 1977 than
during 1976, with most broad measures of
price change rising from 6 to 6V2 per cent, up
from around 5 per cent during 1976. As has
been the case in recent years, developments
in food markets were a crucial element in the
pattern of price movements. Food prices rose
sharply in the first half of 1977, in part reflecting the effects of weather-related interruptions of supplies. Over the summer months—
as supplies became more abundant—food
prices at wholesale fell sharply, and by the
third quarter increases in consumer food
prices had abated.
The consumer price index rose about 6V2
per cent during 1977 compared with about a 5
Prices

Dept. of Labor data, seasonally adjusted.




11

per cent increase during 1976. Exclusive of
food and energy items, however, the pace of
inflation was about the same in both years—
6.4 per cent in 1976 and 6.1 per cent in 1977.
The most rapid increases in 1977 were during
the first half when, in addition to the 12
per cent annual rate of increase in food prices,
used car prices rose markedly. The rate of rise
moderated in the second half of the year as
food prices rose only slightly, used car prices
fell very sharply, and smaller increases were
registered for services.
Wholesale prices rose about 6 per cent during 1977—after a 4.1 per cent rise during 1976.
The entire acceleration reflected developments in prices of farm products and processed foods and feeds. Wholesale prices of
these groups, which had declined during 1976,
rose about W2 per cent during 1977. By contrast, wholesale prices of industrial commodities rose a bit more than 6V2 per cent during
both 1976 and 1977. Prices of crude nonfood
materials continued to advance rather rapidly,
rising more than 8 per cent over the year.
Prices of producer finished goods rose about
1V\ per cent.
•

12

Federal Reserve Bulletin • January 1978

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

STUDY

In all cases the analyses and conclusions set
forth are those of the authors and do not
necessarily indicate concurrence by the Board
of Governors, by the Federal Reserve Banks,
or by the members of their staffs.
Single copies of the full text of each of the
studies or papers summarized in the B U L L E TIN are available in mimeographed form. The
list of Federal Reserve Board publications at
the back of each B U L L E T I N includes a separate section entitled'4Staff Economic Studies"
that enumerates the papers prepared on these
studies for which copies are currently available
in mimeographed form.

SUMMARIES

AN ANALYSIS OF FEDERAL RESERVE SYSTEM ATTRITION SINCE 1960
JOHN T . ROSE—Staff, B o a r d of G o v e r n o r s
Prepared as a staff paper in late 1977

In recent years the attrition of both banks and
deposits from the Federal Reserve System has
accelerated. Because of this, much attention
has been given to the regulatory/financial
burden of Federal Reserve System membership and to the implications of membership
attrition for monetary policy. Little attention,
however, has been directed to the various
structural factors, which, in the aggregate,
produce the observed attrition phenomenon.
The present study examines these factors as
they relate to System attrition from 1960
through mid-1977.
The first part of the study focuses on attrition associated with changes in the number of
member and nonmember banks. Principal contributing factors include (1) a pattern of net
withdrawals from the System, (2) a tendency of



de novo banks to remain outside the System,
and (3) a pattern of more mergers and absorptions of member banks than nonmembers, with
most of the merged and absorbed banks being
acquired by other member banks. The first two
factors have contributed to attrition of both
member banks and member bank deposits.
However, in recent years these two factors
have been attenuated somewhat by less withdrawal activity on the part of subsidiary banks
of multibank holding companies as well as by
the preference of holding companies for chartering de novo member banks. The third
factor—bank mergers and absorptions—also
has contributed to attrition of member banks,
but it has served as an offset to member bank
deposit attrition. In fact, only since the late
1960's has deposit attrition from net System

Staff Economic Studies

withdrawals been sufficiently large to exceed
the net flow of nonmember deposits into the
member bank sector through acquisition.
Still, as the second part of this study demonstrates, the bulk of deposit attrition has not
been caused by net System withdrawals.
Rather, it has been due to a more rapid rate of
internal deposit growth by nonmember
banks—including the growth of de novo nonmember banks chartered since 1960—than
member banks, resulting in a relative increase
in the average size of nonmember banks.
Moreover, since the late 1960's, deposit attrition due to differences in internal growth between member and nonmember banks has
increased. This fact, along with the increase in
deposit attrition from net System withdrawals
and a smaller offset from bank mergers and
absorptions, accounts for the general acceleration of deposit attrition from 1960 to 1977.
These developments have implications for
the future pattern of System attrition. First,

13

without any reduction in the burden of System
membership, the pattern of net System withdrawals, as well as the preference of de novo
banks for nonmember status, may be expected
to continue and thereby to produce further
decreases in both the number of banks and the
amount of deposits in the System. Second, a
further reduction in the offsetting effect of
bank mergers and absorptions on deposit attrition can be expected to the extent that the
number and average size of nonmember banks
continue to increase relative to member banks
and that such a development continues to lead
to further relative growth in bank acquisition
activity by the nonmember sector. Finally, the
significant contribution to deposit attrition resulting from faster internal deposit growth by
nonmember banks than by member banks
suggests that deposit attrition will continue in
the future, even without additional changes in
the number of member and nonmember
banks.
•

PROBLEMS IN APPLYING DISCRIMINANT ANALYSIS
IN CREDIT SCORING MODELS
R O B E R T A . EISENBEIS—Staff, Board of Governors
Presented at the Financial Management Association Meetings, October 14, 1977

Since the mid- 1960's financial institutions and
other creditors with increasing frequency have
applied credit scoring and related loan review
procedures to appraise the creditworthiness of
loan applicants. The passage of the Equal
Credit Opportunity Act and promulgation of
the Federal Reserve's Regulation B to implement this act place an important burden on
institutions that are subject to the regulation
and that employ screening models to ensure
that their procedures are. statistically and
methodologically sound.
This paper reviews the types of credit scoring models that have been described in various
journals. It gives particular attention to the
methodological approaches that have been
employed and the statistical problems associated with those models using discriminant




analysis techniques. The paper points out that
the statistical scoring models discussed in the
literature have focused primarily on the
minimization of default rates, which is in fact
only one dimension of the more general problem of granting credit. To the extent that for
the lender profit maximization or cost minimization is, or should be, the objective of a
scoring model, then most of the applied literature seems incomplete. The paper also shows
that, even ignoring these shortcomings, the
models used typically suffer from statistical
deficiencies. And it finds that some of the
problems of these models seem to be inherent
in the discriminant analysis techniques employed or seem to be hard to remedy, given
the state of the art concerning estimation and
sampling procedures.
•

15

Record of Policy Actions
of the Federal Open Market Committee
MEETING HELD ON NOVEMBER 15, 1977
Domestic Policy Directive
The information reviewed at this meeting suggested that growth in
real output of goods and services—which had slowed to an annual
rate of 3.8 per cent in the third quarter, according to preliminary
estimates of the Commerce Department—was picking up in the
current quarter. At the same time the rise in average prices, as
measured by the fixed-weighted price index for gross domestic business product, appeared to be stepping up somewhat from
the annual rate of 5.2 per cent estimated for the third quarter. Staff
projections suggested that growth in real GNP would continue at a
moderate, although gradually diminishing, pace throughout 1978. It
was also expected that the rate of increase in prices would remain
high.
The staff estimate of a pick-up in growth of real GNP in the
current quarter was attributable to expectations of accelerated
expansion in final sales of goods and services, reflecting indications
of renewed strength in consumer spending for both durable and
nondurable goods, in business fixed investment, and in residential
construction. It was anticipated that business inventory accumulation would remain near the rate of the second and third
quarters.
The staff projections of growth in real GNP during the year
ahead reflected expectations that the expansion in business capital
outlays would be sustained; that growth in consumer spending
would remain moderate; that increases in State and local government purchases of goods and services would continue to be sizable;
that the expansion in residential construction activity would taper
off as the period progressed; and that the rise in Federal purchases
of goods and services would be smaller than over the past year.
The projections implied a gradual further decline in the unemployment rate over the year ahead.




16

Federal Reserve Bulletin • January 1978

In October industrial production expanded 0.3 per cent, almost
the same as in September, owing in part to an increase in automobile assemblies and to a large rise in coal output after the
striking miners had returned to work. Capacity utilization in manufacturing was estimated to have remained at about 83 per cent; in
both the materials-producing and the advanced processing industries, utilization rates were close to their levels in the second and
third quarters. For the former group of industries, the rate was
about 10 percentage points below the high reached in the preceding
period of business expansion.
Total nonfarm payroll employment expanded in October, although by considerably less than in September. Growth in employment in the service-producing industries slowed; in manufacturing both employment and the length of the average workweek of
production workers changed little. Total employment, as measured
by the survey of households, also increased less than in September,
and the unemployment rate edged up from 6.9 to 7.0 per cent.
From April through October the unemployment rate had fluctuated
between 6.9 and 7.1 per cent.
The pace of expansion in wage and salary disbursements and in
total personal income picked up in September, the latest month for
which data were available. In the third quarter as a whole, the gain
in total personal income in current dollars was less than that in the
first two quarters of 1977, but in real terms it was about equal to
the average gain in the first two quarters.
The dollar value of retail sales had risen 1.8 per cent in October,
according to the advance report. Moreover, sales estimates for
August and September were revised upward substantially—
resulting in an increase of 1.5 per cent from the second to the third
quarter, rather than the 0.3 per cent that had been reported earlier.
Unit sales of new autos—domestic and foreign models—rose
about 5 per cent in October, after having declined more than 10 per
cent in September. At an annual rate of 10.9 million units, the level
of sales in October was the same as in the third quarter but
somewhat less than in the second quarter.
Private housing starts were at an annual rate of slightly more
than 2 million units in September, virtually unchanged from August. For the third quarter as a whole, starts were almost 8 per cent
more than for the second quarter and at the highest level since




Record of Policy Actions of FOMC

1973. Nearly three-fourths of the gain in the third quarter was
accounted for by starts of multifamily units.
The latest Department of Commerce survey of business plans,
taken in late July and August and published in early September,
suggested that spending for plant and equipment would be 13.3 per
cent greater in 1977 than in 1976 and that the expansion in spending
would be somewhat less in the second half of the year than in the
first half. Private surveys suggested a somewhat smaller increase in
capital outlays in 1978 than in 1977.
Manufacturers' new orders for nondefense capital goods advanced sharply in September, bringing the total for the third
quarter up to the second-quarter level. The machinery component
of such orders—generally a better indicator of underlying trends in
demand for business equipment—expanded about 5 per cent in the
third quarter. At the same time contract awards for commercial and
industrial buildings—measured in terms of floor space—rose about
10 per cent to a level 30 per cent higher than in the third quarter of
1976.
The index of average hourly earnings for private nonfarm production workers advanced at a fast pace in October. The rate of
increase over the first 10 months of the year was about 8 per cent,
compared with a rise of about 7 per cent over the 12 months of
1976.
The wholesale price index for all commodities, which had turned
up in September after 3 months of little change, rose sharply in
October. Average prices of farm products and foods advanced
appreciably, after having declined over the preceding 4 months.
The rise in average prices of industrial commodities in October was
a little less than in September but about equal to the rate of
increase over the past year.
In September the consumer price index rose at an annual rate of
about 4 per cent, the same as over the preceding 2 months but
considerably less than during the first half of 1977. From June to
September retail prices of foods increased only about 0.4 per cent,
in contrast with a rise of nearly 7 per cent over the first 6 months of
the year. The rise in average prices of commodities other than
foods and of services also slowed during the third quarter.
The trade-weighted value of the dollar—which had declined
about 1 Vi per cent from late September to mid-October—




17

18

Federal Reserve Bulletin • January 1978

depreciated about 1 per cent further over the period to midNovember, reflecting mainly appreciation of the Japanese yen, of
the Swiss franc, and of the U . K . pound. Over the period,
moreover, foreign central banks purchased a substantial amount of
dollars, even though on October 31 the U.K. authorities allowed
the pound to float upward. The downward pressure on the dollar
was associated with continuing concern about the deficit in the
U.S. current account, especially as compared with the surpluses in
the current accounts of several other industrial countries.
The U.S. foreign trade deficit declined somewhat in September,
reflecting a sharp increase in exports that was attributable in large
part to temporary factors—specifically, anticipation of the strike by
longshoremen that began on October 1 and a rebound in shipments
of coal from a strike-depressed level in August. For the third
quarter as a whole, the deficit was about the same as for the second
quarter.
At U.S. commercial banks, growth in total credit accelerated in
October from the relatively slow pace recorded in September. The
pick-up reflected a vigorous expansion in bank lending that was
offset only in part by a further reduction in holdings of Treasury
securities.
Growth in business loans at banks was especially strong in
October, following little change in September. To some extent the
monthly changes appeared to reflect a shift in the seasonal pattern
that had not yet been captured in adjustment factors; the average
increase over the 2 months represented a continuation of relatively
strong growth. The outstanding volume of commercial paper issued
by nonfinancial corporations declined in October by the same
amount that it had in September. Nevertheless, business credit
expansion through these two sources was brisk over the 2-month
period.
Growth in the narrowly defined money stock (M-l) accelerated
in October to an annual rate of 12 per cent. However, data for early
November suggested a sharp slowing of growth.
Growth in M-2 also picked up during October and then slowed
again in early November. In October expansion in the total of
interest-bearing deposits included in M-2 was maintained at about
its September pace, although the key components of this total
showed divergent changes. Inflows of savings deposits to banks




Record of Policy Actions of FOMC

slowed appreciably as yields on competitive market securities rose
further above the ceiling rate on savings deposits, and the rate of
expansion in small-denomination time deposits changed little.
However, the rate of expansion accelerated for nonnegotiable,
large-denomination time deposits, which are not subject to interest
rate ceilings. In association with the increase in loan demand,
banks also expanded the outstanding volume of negotiable, largedenomination CD's (not included in M-2) by the largest amount for
any month in nearly 3 years.
Growth in M-3 changed little in October. Inflows of funds to
nonbank thrift institutions slowed somewhat from the strong pace
of the preceding 2 months, offsetting the effect on M-3 of the
acceleration of the expansion in M-l.
At its October meeting the Committee had decided that operations in the period immediately ahead should be directed toward
maintaining about the prevailing money market conditions, as
represented by a weekly-average Federal funds rate of 6V2 per cent,
provided that M-l and M-2 appeared to be growing over the
October-November period at annual rates within ranges of 3 to 8
and 5Vi to W2 per cent, respectively. However, the members also
had agreed that if growth in the aggregates appeared to approach or
move beyond the limits of their specified ranges, the operational
objective for the weekly-average Federal funds rate should be
varied in an orderly fashion within a range of 6 l A to 63A per cent.
Immediately following the meeting, incoming data had suggested
that over the October-November period M-l and M-2 would grow
at rates within their specified ranges. Accordingly, the Manager of
the System Open Market Account sought to maintain the Federal
funds rate at around 6V2 per cent. In late October, however,
additional data suggested that M-l and M-2 were growing at rates
approaching or moving beyond the upper limits of their ranges.
Therefore, the Manager sought a slight firming in the funds rate.
Still later, available data again suggested that growth in both
aggregates would be within the ranges; hence the Manager's objective for the funds rate was returned to 6V2 per cent. During the
inter-meeting period the funds rate generally fluctuated between
6V2 and 6% per cent, and it was at the lower rate in the last few
business days before this meeting of the Committee.
Fluctuations in other market interest rates were larger than those




19

20

Federal Reserve Bulletin • January 1978

in the funds rate, owing chiefly to changes in the perceptions of
market professionals concerning the probable course of monetary
policy. But on balance over the period, changes in interest rates
were quite small; short- and medium-term rates generally declined
a little, and changes in bond yields were mixed. In late October
most large commercial banks raised the rate on loans to prime
business borrowers from IV2 to 7% per cent. A few major banks,
located chiefly on the west coast, held their prime rate at IV2 per
cent.
On October 25 the Board of Governors announced its approval
of actions by directors of all 12 Federal Reserve Banks raising the
discount rate from 53A to 6 per cent, effective October 26. In
announcing the approval, the Board stated that the action was
taken in recognition of increases that had occurred in other shortterm interest rates and that it would bring the discount rate into
closer alignment with short-term rates generally. The Board also
stated that the increase would reduce the incentive for member
banks to borrow from the Federal Reserve. Member bank borrowing had increased to a daily average of more than $1.8 billion during
the week ending October 19, compared with an average of $337
million 5 weeks earlier. In the week ending November 9, dailyaverage borrowings were down to $887 million.
Major indexes of stock prices declined to new lows for 1977
during the initial weeks of the inter-meeting period, but then rallied
in early November. At the time of the November meeting the
indexes were about 5 per cent above their 1977 lows.
In November, in connection with its quarterly refinancing, the
U.S. Treasury refunded $2.4 billion of maturing debt held by the
public; sold $4.1 billion of additional securities to the general public
for cash; and sold $700 million of new securities directly to foreign
central banks for cash. Securities issued to the public in this
operation included $3.3 billion of 3-year notes, sold at an average
yield of 7.24 per cent; $2.0 billion of 10-year notes, sold at an
average yield of 7.69 per cent; and $1.3 billion of 30-year bonds,
sold at an average yield of 7.94 per cent. At the time that plans for
the November refinancing were announced, the Treasury reported
that its cash-borrowing needs in the fourth quarter were expected
to total $18% billion.
Gross public bond offerings by nonfinancial corporations de-




Record of Policy Actions of FOMC

clined in October. However, the total volume of new corporate
bond issues was sustained by unusually large offerings by financial
firms, including several large issues of mortgage-backed bonds.
In October the volume of mortgage lending apparently remained
close to its unprecedented third-quarter pace. The increase in
mortgage loans at commercial banks was almost as large as the
record monthly-average gain in the third quarter; and net acquisitions of mortgage loans at savings and loan associations were
probably about maintained, even though inflows of deposits to
these institutions slowed somewhat. Outstanding mortgage commitments of the associations had risen to a record level at the end
of September, and in October these institutions increased their
reliance on borrowings from the Federal home loan banks and on
the sale of mortgage-backed bonds. Between mid-October and
mid-November the average interest rate on new commitments for
conventional home mortgages at savings and loan associations
changed little.
In the Committee's discussion of the economic situation, the
members agreed that the staff projections—suggesting that growth
in real GNP would continue at a moderate, although gradually
diminishing, pace throughout 1978—were reasonable. There were,
however, some shadings of view about prospects for the economy.
Two members suggested that the outlook was potentially
stronger than that implied by the staffs projections. One of these
members remarked that some of the uncertainties that had plagued
this business expansion were being cleared up. In his judgment a
reasonably good fourth quarter, which he was inclined to expect,
could have a favorable influence on business and consumer attitudes; and that development, in turn, could affect business activity in 1978. The other member observed that there was a real
possibility that 1978 would prove to be a very good year, particularly if administration statements were of a kind that tended to
strengthen business confidence. In a related comment, another
member observed that business decisions were being influenced by
uncertainty generated not only by Federal tax and energy policies
but also by expectations of further inflation.
Two members expressed the view that while the staff projections
were not unreasonable, any deviations from them were more likely
to be in the direction of shortfalls than of overshoots—particularly




21

22

Federal Reserve Bulletin • January 1978

in the latter part of the projection period. One of these members
remarked that economic policy-makers, including the Federal Reserve, would need to act if any marked slowing in the rate of
economic growth appeared likely to develop. However, in his
judgment it was too early to reach such a conclusion. In this
connection, he noted that there seemed to have been a general
tendency among economic forecasters in recent years to underestimate growth rates by progressively larger amounts for more
distant periods. The other member who thought the staffs projections were on the high side of the range of possibilities observed
that there was ample time for new developments to lead to improved prospects for the second half of 1978. At the moment,
however, he did not find such developments to be clearly in
prospect.
It was noted during the discussion that, according to projections
of the Federal budget on a "high employment" basis, fiscal policy
would move from a highly stimulative stance in the second half of
1977 to approximate neutrality by the end of 1978, unless some new
fiscal initiatives were undertaken. It was also noted that sustained
growth in spending by State and local governments was likely to
contribute to the strength of the expansion, but that the foreign
trade sector would probably be a source of weakness.
It was suggested that prospects for business capital spending
were a key element in the economic outlook. One member observed that the underlying need for additions to capacity might
soon have an increasing impact on spending for plant and
equipment—a greater impact than implied by the recent private
surveys of business spending plans—especially if proposals for
reductions in taxes should prove to be reasonable and if business
confidence should improve. Another member remarked that
enough time had elapsed since the culmination of the recession in
early 1975 for businessmen to conclude that profit opportunities
had been neglected and for them to become more willing to take
risks on longer-term commitments. This member added, however,
that he expected uncertainties to persist throughout 1978, in part
because of a bulge in the rate of inflation early in the year that in
his opinion would be produced mainly by recent and prospective
Federal legislation.
Other comments about the outlook included the observation by




Record of Policy Actions of FOMC

one member that the rate of economic growth projected by the staff
for late 1978, although somewhat below the rates projected for
earlier in the year, was still quite satisfactory. Another member
remarked that he expected the growth rate to be lower in the first
quarter of 1978 and higher in the second quarter than the staffs
projections suggested. In his judgment it was too early to arrive at
any firm view about prospects for the second half of next year.
At its October meeting the Committee had agreed that from the
third quarter of 1977 to the third quarter of 1978 average rates of
growth in the monetary aggregates within the following ranges
appeared to be consistent with broad economic aims: M-1, 4 to 6V2
per cent; M-2, 6V2 to 9 per cent; and M-3, 8 to IOV2 per cent. The
associated range for the rate of growth in commercial bank credit
was 7 to 10 per cent. It was 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,
members noted that growth in the monetary aggregates appeared to
be slowing sharply in November. It was observed that for a number
of reasons growth rates for December were particularly difficult to
project, but even if they also proved to be low, two consecutive
months of slow growth would be acceptable in view of the rapid
monetary expansion of recent months. The comment was made
that the sharp slowing in early November suggested that the
aggregates might grow at reasonably satisfactory rates over the
November-December period, assuming continuation of a Federal
funds rate at about its current level. Many members indicated that
they would like to maintain stable conditions in the money market
for a time and that they were willing to accept a rate of growth in
M-1 over the November-December period within a somewhat
wider range than usual, encompassing relatively low growth.
Most members expressed a preference for continuing to give
greater weight than usual to money market conditions in conducting open market operations in the period until the next meeting of
the Committee. However, a number of members were in favor of
basing operating decisions primarily on the behavior of the monetary aggregates.
The members did not differ greatly in their preferences for




23

24

Federal Reserve Bulletin • January 1978

operating specifications for the period immediately ahead. Most
members favored a range of 1 to 6 or 1 to 7 per cent for the annual
rate of growth in M-l over the November-December period and a
range of 5 to 9 per cent, or a slightly lower one, for growth in M-2.
With respect to M-l, some sentiment was also expressed for a
range of 2 to 7 per cent. And one member suggested a range of 2Vi
to IVi per cent because he was concerned that the velocity of M-l
would not tend to increase so much in the period ahead as he
thought was implied by the lower range.
With respect to the Federal funds rate, almost all members
favored an operating range of 6lA to 63A per cent for the period until
the next meeting. However, one member who preferred to base
decisions for operations primarily on the behavior of the monetary
aggregates suggested a wider range, one of 6 to 7 per cent.
At the conclusion of the discussion the Committee decided that
operations in the period immediately ahead should be directed
toward maintenance of prevailing money market conditions, as
represented by the current level of the Federal funds rate. However, the members agreed that if growth in the aggregates should
appear to approach or move beyond the limits of their specified
ranges, the operational objective for the weekly-average Federal
funds rate should be varied in an orderly fashion within a range of
6lA to 63A per cent. With respect to the annual rates of growth in
M-l and M-2 over the November-December period, the Committee specified ranges of 1 to 7 per cent and 5 to 9 per cent,
respectively. It was also agreed that in assessing the behavior of
the aggregates, the Manager should give approximately equal
weight to the behavior of M-l and M-2.
As customary, it was understood that the Chairman might call
upon the Committee to consider the need for supplementary instructions before the next scheduled meeting if significant inconsistencies appeared to be developing among the Committee's various
objectives.
The following domestic policy directive was issued to the Fed
eral Reserve Bank of New York:




The information reviewed at this meeting suggests that growth in
real output of goods and services is picking up in the current quarter
from the reduced pace in the third quarter. The dollar value of total
retail sales, which had been unchanged in September, rose substan-




Record of Policy Actions of FOMC

tially in October. Industrial production and employment increased
somewhat. The unemployment rate, at 7.0 per cent, remained in the
narrow range prevailing since April. The wholesale price index for
all commodities rose sharply in October, as average prices of farm
products and foods increased after having declined appreciably over
the preceding 4 months. Prices of industrial commodities rose at
about the average rate of the preceding 12 months. The index of
average hourly earnings increased sharply in September and has
advanced at a somewhat faster pace so far this year than it had on
the average during 1976.
The trade-weighted value of the dollar against major foreign currencies has declined further since mid-October. In September the
U.S. foreign trade deficit was reduced somewhat, in part as a result
of temporary factors.
M-1 and M-2 increased substantially in October, but growth
slowed sharply in early November. In October inflows to banks of
the total of savings deposits and small-denomination time deposits
fell off, but banks expanded the outstanding volume of largedenomination CD's substantially as credit demands strengthened.
Inflows to nonbank thrift institutions slowed somewhat in October
from the strong pace of the preceding 2 months. Following a substantial rise in member bank borrowings, Federal Reserve discount
rates were increased from 53A to 6 per cent in late October. Market
interest rates have fluctuated moderately since mid-October and
most recently have tended to decline.
In light of the foregoing developments, it is the policy of the
Federal Open Market Committee to foster bank reserve and other
financial conditions that will encourage continued economic expansion and help resist inflationary pressures, while contributing to a
sustainable pattern of international transactions.
At its meeting on October 18, 1977, the Committee agreed that
growth of M-l, M-2, and M-3 within ranges of 4 to 6V2 per cent, 6V2
to 9 per cent, and 8 to lOVi per cent, respectively, from the third
quarter of 1977 to the third quarter of 1978 appears to be consistent
with these objectives. These ranges are subject to reconsideration at
any time as conditions warrant.
At this time, the Committee seeks to maintain about the prevailing
money market conditions during the period immediately ahead,
provided that monetary aggregates appear to be growing at approximately the rates currently expected, which are believed to be on a
path reasonably consistent with the longer-run ranges for monetary
aggregates cited in the preceding paragraph. Specifically, the Committee seeks to maintain the weekly-average Federal funds rate at
about the current level, so long as M-l and M-2 appear to be growing
over the November-December period at annual rates within ranges
of 1 to 7 per cent and 5 to 9 per cent, respectively. If, giving
approximately equal weight to M-1 and M-2, it appears that growth

25

26

Federal Reserve Bulletin • January 1978




rates over the 2-month period are approaching or moving beyond the
limits of the indicated ranges, the operational objective for the
weekly-average Federal funds rate shall be modified in an orderly
fashion within a range of 6!4 to 63A per cent.
If it appears during the period before the next meeting that the
operating constraints specified above are proving to be significantly
inconsistent, the Manager is promptly to notify the Chairman who
will then decide whether the situation calls for supplementary instructions from the Committee.
Votes for this action: Messrs. Burns, Volcker,
Coldwell, Gardner, Guffey, Jackson, Lilly, Mayo,
Morris, Partee, Roos, and Wallich. Votes against
this action: None.

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.

27

Law Department
Statutes, regulations, interpretations, and decisions
RESERVES OF MEMBER

BANKS

The Board of Governors has amended its Regulation D to exempt from the definition of the term
deposit a member b a n k ' s borrowings from a
member bank whose head office is located outside
the United States.
Effective December 23, 1977, Section 204.1(f) is
amended to read as follows:

Schedule B to Form TA-1 ("revised Schedule B"),
the form used for the registration of transfer
agents. The Board has also amended instructions to
Form TA-1, and adopted a temporary exemptive
rule extending the filing deadline for the schedule
from January 30, 1978, to April 6, 1978.
1. Section 208.8(f) is amended by adding a new
paragraph (4) to read as follows:
SECTION 2 0 8 . 8 — B A N K I N G

SECTION

PRACTICES

204.1—DEFINITIONS

*

*

*

*

*

(f) DEPOSITS AS I N C L U D I N G CERTAIN PROMIS-

(f) STATE MEMBER B A N K S AS
AGENTS.

TRANSFER

SORY NOTES A N D OTHER OBLIGATIONS. F o r t h e
p u r p o s e s o f this Part, t h e t e r m " d e p o s i t s " a l s o inc l u d e s a m e m b e r b a n k ' s liability o n a n y p r o m i s s o r y
note,

acknowledgment

of a d v a n c e ,

due

bill,

b a n k e r ' s a c c e p t a n c e , or similar o b l i g a t i o n (written
or oral) that is i s s u e d or u n d e r t a k e n b y a m e m b e r
b a n k a s a m e a n s o f o b t a i n i n g f u n d s t o b e u s e d in
its b a n k i n g b u s i n e s s , e x c e p t a n y s u c h o b l i g a t i o n
that:

(1) Is issued to (or undertaken with respect to)
and held for the account of (i) a domestic banking
office 6 of another bank or (ii) an agency of the
United States or the Government Development
Bank for Puerto Rico;

(4) Every State member bank or any of its subsidiaries that is registered with the Board as a
transfer agent is exempted until April 3, 1978, from
that part of the provision of Section 208.8(f)(2) that
states that "[w]ithin thirty calendar days following
the close of any calendar year . . . during which the
information required by Item 7 of Form TA-1
becomes inaccurate, misleading, or incomplete, the
bank or its subsidiary shall file an amendment to
Form TA-1 correcting the inaccurate, misleading or
incomplete information."
2. Section 225.5(c) is amended by adding a new
paragraph (4) to read as follows:
SECTION

MEMBERSHIP OF STATE
INSTITUTIONS IN

THE

FEDERAL RESERVE
BANK HOLDING

225.5—ADMINISTRATION

BANKING

SYSTEM

COMPANIES

(c) Registration of certain bank holding companies and their nonbank subsidiaries as transfer
agents.

The Board of Governors has adopted a revised
6
Any banking office (i) in any State of the United States or the
District of Columbia of a bank organized under domestic or
foreign law or (ii) of a member bank whose head office is located
outside the States of the United States or the District of Columbia
provided, reserves are required to be maintained by such member
bank under this Part against the deposit liabilities of such office.




(4) Every bank holding company and nonbank
subsidiary of a bank holding company that is registered with the Board as a transfer agent is exempted
until April 3, 1978, from that part of the provision of

28

Federal Reserve Bulletin • January 1978

Section 225.5(c)(2) that states that "(wjithin thirty
calendar days following the close of any calendar
year . . . during which the information required by
Item 7 of Form TA-1 becomes inaccurate, mislead-

BANK HOLDING
BANK

MERGER

COMPANY

AND

ORDERS ISSUED BY THE BOARD OF

ORDERS U N D E R SECTION 3
OF B A N K H O L D I N G COMPANY A C T

Dexter Banking Company,
Dexter, Kansas
Order Approving
Formation of Bank Holding

Company

Dexter Banking Company, Dexter, Kansas, has
applied for the Board's approval under § 3(a)(1) of
the Bank Holding Company Act (12 U.S.C. § 1842
(a)(1)) of formation of a bank holding company
by acquiring 80 per cent or more of the voting
shares of The Farmers & Merchants State Bank of
Dexter Kansas ( " B a n k " ) , Dexter, Kansas.
Notice of the application, affording opportunity
for interested persons to submit comments and
views, has been given in accordance with § 3(b) of
the Act. The time for filing comments and views has
expired, and the Board has considered the application and all comments received in light of the
factors set forth in § 3(c) of the Act (12 U.S.C.
§ 1842(c)).
Applicant, a Kansas corporation, was formed in
1973 for the purpose of engaging in general insurance agency activities in Dexter, Kansas. 1 Upon
acquisition of Bank (deposits of $2.9 million), Applicant will control the 546th largest bank in Kansas, holding approximately 0.03 per cent of total
deposits in commercial banks in the State. 2
Bank is the sixth largest of eight banks competing
in Cowley County, Kansas, which approximates
the relevant banking market, and holds approximately 2.7 per cent of the total deposits in commercial banks in that market. Since the proposed
transaction is essentially a reorganization whereby
1
Applicant has engaged in the sale of insurance in Dexter,
Kansas, since its incorporation in November, 1973. Before it
acquires Bank, Applicant will terminate its insurance agency
activities, and Bank will engage in insurance activities in accordance with Kansas law.
2
All banking data are as of December 31, 1976.




ing or incomplete, the bank holding company or its
nonbank subsidiary shall file an amendment to
Form TA-1 correcting the inaccurate, misleading or
incomplete information".

GOVERNORS

the shareholders who now control Bank directly
will control Bank indirectly through Applicant, and
since Applicant controls no other banks in the
relevant market, 3 consummation of the proposal
would not eliminate competition or increase the
concentration of banking resources in any relevant
area. Thus, the Board concludes that the competitive effects of the proposal are consistent with
approval of the application.
The financial and managerial resources and the
future prospects of Applicant and Bank, as well as
of the other banks with which one of Applicant's
principals is associated, are considered generally
satisfactory. Although Applicant will incur debt in
connection with the proposal, it appears that the
projected income from Bank should provide sufficient revenue to service the debt without impairing
the financial condition of Bank. Accordingly, considerations relating to banking factors are consistent with approval of the application. 4
While consummation of the proposal would have
no immediate effect on services offered in the area,
considerations relating to the convenience and
needs of the community to be served are consistent
with approval. Accordingly, it is the Board's judgment that consummation of the proposed transaction is consistent with the public interest and that
the application should be approved.
On the basis of the record, the application is
approved for the reasons summarized above. The

3
One of Applicant's principals is associated with three other
banks, one of which, State Bank of Burden, Burden, Kansas, is
within the relevant banking market and, with deposits of $2.3
million, controls 2.2 per cent of the deposits in commercial banks
in that market. State Bank of Burden and Bank together control
only 4.9 per cent of total market deposits. Moreover, Applicant's
principal serves only as a director of State Bank of Burden and has
only a minority interest in that bank. In view of these facts,
competitive factors related to this application are considered to be
consistent with approval.
4
On January 23, 1975, the Board denied an earlier application
by Applicant to acquire Bank. 61 Federal Reserve BULLETIN 103
(1975). That denial was based primarily on considerations relating
to banking factors that were at that time unsatisfactory but that
have since improved.

Law Department

transaction shall not be made before the thirtieth
calendar day following the effective date of this
Order, or later than three months after the effective
date of this Order unless such period is extended for
good cause by the Board, or by the Federal Reserve
Bank of Kansas City pursuant to delegated authority.
By order of the Board of Governors, effective
December 21, 1977.
Voting for this action: Vice Chairman Gardner and
Governors Wallich, Cold well, Jackson, Partee, and Lilly.
Absent and not voting: Chairman Burns.

(Signed) G R I F F I T H L . GARWOOD,
[SEAL]

Deputy

Secretary

of the

Board.

First Bank System, Inc.,
Minneapolis, Minnesota
Order Approving
Acquisition of Bank
First Bank System, Inc., Minneapolis, Minnesota, a bank holding company within the meaning
of the Bank Holding Company Act, has applied for
the Board's approval under § 3(a)(3) of the Act (12
U.S.C. § 1842(a)(3)) to acquire all of the voting
shares (less directors' qualifying shares) of Granite
City National Bank of St. Cloud, St. Cloud, Minnesota.
Notice of the application, affording opportunity
for interested persons to submit comments and
views, has been given in accordance with § 3(b) of
the Act. The time for filing comments and views has
expired, and the Board has considered the application and all comments received in light of the
factors set forth in § 3(c) of the Act (12 U.S.C.
§ 1842(c)). These comments include, but are not
limited to, those on behalf of the Independent
Bankers of Minnesota, Minneapolis, Minnesota;
the St. Cloud National Bank & Trust Company, St.
Cloud, Minnesota; Zapp National Bank of St.
Cloud, St. Cloud, Minnesota; Plaza Park State
Bank, Waite P a r k , Minnesota; and The First
American National Bank of St. Cloud, St. Cloud,
Minnesota (hereinafter collectively referred to as
"Protestants").
Applicant, the largest banking organization in
Minnesota, controls 87 banks with total deposits of
$6.2 billion. 1
Fifty of Applicant's subsidiary banks are located
in Minnesota, controlling $4.2 billion in deposits, or

1

Banking data are as of March 31, 1977.




29

26.3 per cent of total deposits in commercial banks
in the State. Since Bank is a proposed new bank,
Bank's acquisition by Applicant would not cause
any immediate increase in Applicant's share of
commercial bank deposits in the State.
The Comptroller of the Currency has granted
preliminary approval of a charter for Bank and it is
to be located in the area of the Crossroads Shopping
Center in St. Cloud, Minnesota. Applicant is not
currently represented in the relevant market, which
is approximated by the eastern half of Stearns
County, the western half of Sherburne County, and
all of Benton County. Protestants challenge this
market definition, asserting that the relevant market extends to portions of several counties adjacent
to the market area described above. Protestants'
market definition includes the cities of Little Falls,
Paynesville, and Sauk Centre, where Applicant has
bank subsidiaries. Protestants' market definition is
based on an analysis of highway access to the St.
Cloud area, banking business in the area derived
from adjacent counties, and marketing patterns of
St. Cloud broadcast and print media, whereas the
relevant market approximation used by the Board is
derived from similar criteria in addition to commuting data, level of retail sales, and service availability in the St. Cloud area.
Examination of submissions by Protestants and
Applicant indicates that the amount of business that
Applicant's subsidiaries located in the market defined by Protestants derive from St. Cloud is insignificant. Media circulation patterns are not regarded as a reliable guide for defining markets, as
illustrated by the fact that such an approach would
put most of the State of Minnesota and portions of
neighboring States in the Minneapolis/St. Paul
banking market. The evidence of record in this case
demonstrates that Little Falls, Paynesville, and
Sauk Centre are sufficiently removed from St.
Cloud in terms of distance and commuting levels to
be placed in banking markets separate from that of
St. Cloud. On the basis of its analysis of all the facts
of record, the Board has concluded that the appropriate market for analyzing the competitive effects
of the subject proposal is approximated by the
tri-county area described above.
The St. Cloud banking market is served by 18
commercial banking institutions, the four largest of
which hold 63.7 per cent of total commercial bank
deposits in the market. The market shares of the
four largest organizations range from 10.8 per cent
to 21.1 per cent, so that no one of the four can be
said to dominate the market. In view of the market
shares of the largest organizations and the number

30

Federal Reserve Bulletin • January 1978

of banking organizations represented in the market,
the St. Cloud market cannot be regarded as significantly concentrated. Since Bank is a proposed new
bank, consummation of Applicant's proposal would
not eliminate any existing competition.
In its analysis of the subject application, the
Board has considered the comments submitted by
Protestants. Protestants are concerned that cons u m m a t i o n of t h e s u b j e c t p r o p o s a l would
strengthen Applicant's "dominant" position in the
State, increase concentration of banking resources
on a statewide level, and have adverse effects on
competition in the St. Cloud market. Protestants
argue that acquisition of Bank by Applicant will
preempt a valuable site for future de novo entry into
the St. Cloud market. 2 Protestants request that the
Board hold a hearing on the subject application.
The Board has examined the record of the hearing held in connection with the chartering of Bank
and in which each of the Protestants participated,
the written submissions of Protestants and Applicant's responses, and is unable to conclude that a
hearing would significantly supplement the record
before the Board or resolve issues not already
discussed at length in the written submissions of
Protestants and Applicant and in the record of the
hearing before the Office of the Comptroller of the
Currency. Protestants have neither specified any
particular issue of material fact that a hearing would
resolve nor indicated what additional evidence, if
any, they would adduce at such a hearing. In view
of the foregoing, Protestants' requests for a hearing
are hereby denied.
While Protestants characterize Applicant as
"dominant" in the relevant market, its definition of
the relevant market, as discussed above, is overly
broad. None of Applicant's subsidiaries are represented in the relevant market as it is properly
defined. Applicant cannot be considered "dominant" in a market in which it does not currently
have a competitive presence. Indeed, Applicant's
subsidiary banks in markets adjacent to the St.
Cloud market derive insubstantial amounts of deposits from Bank's proposed service area. Addi-

2
In support of their contentions Protestants submitted, inter
alia, a research report on Minnesota's banking structure prepared
by Paul F. Jessup for the Federal Reserve Bank of Minneapolis. In
support of its position, Applicant submitted a privately commissioned economic report prepared in April 1975, in connection with
Bank's application to the Comptroller of the Currency for a
charter. Also included in the record on this application is the
transcript of a hearing conducted by the Regional Administrator of
National Banks on May 30, 1975, at which Protestants objected to
the chartering of Bank, making essentially the same contentions
that they have made in protesting the subject application.




tionally, the Board is unable to conclude that Protestants' assessment of the effect of this acquisition
on statewide concentration is correct, since Applicant's acquisition of shares of Bank, which currently holds no deposits, will not increase per se the
amount of banking resources under Applicant's
control. Any increase in Applicant's resources that
may eventually result from its control of Bank
would occur through the operation of a normally
competitive market.
While, in some instances, de novo expansion in a
market by a leading organization within that market
could reduce prospects for market deconcentration
by preempting sites for de novo entry or expansion
by other firms, that does not seem to be the case
here. Applicant's de novo expansion into St. Cloud
would tend to lower overall market concentration
inasmuch as Applicant is not presently represented
in the relevant market. Growth trends in the market
area indicate that establishment of Bank is not
premature and does not represent a site-preemption
strategy on the part of Applicant. 3 Rather, it appears that the formation of Bank is a response to the
growing needs of a growing market.
On the basis of the facts of record, including the
record of the chartering hearing and the submissions of Protestants and Applicant, the Board concludes that, given the growth of the market and the
fact that Applicant is not currently represented in
that market, consummation of this proposal would
not result in concentration of financial resources or
adversely affect competition in the relevant market.
Based upon the information on record in this
application, the financial and managerial resources
and future prospects of Applicant, its subsidiaries
and Bank are regarded as generally satisfactory.
Bank, a proposed new bank, has no financial or
operating history; however, its prospects as a subsidiary of A p p l i c a n t a p p e a r f a v o r a b l e . Considerations relating to banking factors are therefore
consistent with approval of the application.
Bank will operate in the growing St. Cloud area
as an additional full-service banking facility offering
a wide array of customer services. Accordingly,
considerations relating to the convenience and
needs of the community to be served lend some
weight toward approval of the application. It is the

3
The tri-county area has grown in population from 110,493 in
1960 to a State-estimated 150,060 in 1975. According to the
Minnesota Department of Employment Services, the annual average number of workers employed in the St. Cloud area increased
14.6 per cent between 1970 and 1976. The State of Minnesota
recently characterized St. Cloud as its fastest growing metropolitan area.

Law Department

Board's judgment that the proposed acquisition
would be in the public interest and that the application should be approved.
On the basis of the record, the application is
approved for the reasons summarized above. The
transaction shall not be made (a) before the thirtieth
calendar day following the effective date of this
Order or (b) later than three months after that date,
and (c) Granite City National Bank of St. Cloud, St.
Cloud, Minnesota 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 Minneapolis pursuant to delegated authority.
By order of the Board of Governors, effective
December 13, 1977.
Voting for this action: Chairman Burns and Governors
Gardner, Coldwell, Jackson, and Partee. Present and
abstaining: Governor Lilly. Absent and not voting: Governor Wallich.

(Signed) G R I F F I T H L . GARWOOD,
[SEAL]

Deputy

Secretary

of the

Board.

Kansas City Bancshares, Inc.,
Kansas City, Missouri
Order Approving
Formation of Bank Holding

Company

Kansas City Bancshares, Inc., Kansas City, Missouri, has applied for the Board's approval under
§ 3(a)(1) of the Bank Holding Company Act (12
U.S.C. § 1842(a)(1)) of formation of a bank holding
company by acquiring 67.2 per cent of the voting
shares of Kansas City Bank & Trust Co., Kansas
City, Missouri ("Kansas City Bank"), and 97 per
cent of the voting shares of Westport Bank, Kansas
City, Missouri ("Westport Bank").
Notice of the application, affording opportunity
for interested persons to submit comments and
views, has been given in accordance with § 3(b) of
the Act. The time for filing comments and views has
expired, and the Board has considered the application and all comments received in light of the
factors set forth in § 3(c) of the Act (12 U.S.C.
§ 1842(c)).
Applicant is a Missouri corporation organized for
the purpose of becoming a bank holding company.
Kansas City Bank and Westport Bank have aggregate deposits of approximately $19.3 million, representing 0.48 per cent of the total deposits in com


31

mercial banks in Missouri. 1 Upon consummation of
the proposed transaction, Applicant would be the
27th largest banking organization in the State. Approval of the application would not increase significantly the concentration of banking resources in
Missouri.
Kansas City Bank ($48.4 million in deposits)
controls 0.87 per cent of deposits in the relevant
banking market, 2 while Westport Bank ($42.9 million in deposits) controls 0.78 per cent of deposits in
the same market. Upon consummation of the proposal, Applicant would control 1.65 per cent of total
deposits in commercial banks in the relevant market and would be the 17th largest banking organization in the market.
Kansas City Bank and Westport Bank are commonly owned and managed by principals of Applicant 3 and the proposal represents essentially a
restructuring of ownership into corporate form. In a
case where a prior purchase of the shares of two
banks by an applicant's principals eliminates substantial competition between the banks, the Board
is reluctant to approve the formation of a bank
holding company, even though such a formation, on
its face, would not appear to eliminate significant
competition. 4 While approval of the subject proposal would further solidify the existing relationship
between these two banks and reduce the likelihood
that they would become independent competitors in
the future, it is the Board's view that consummation
of this proposal would not have any significant
adverse effect on existing or potential competition
in the relevant market.
Each bank holds less than one per cent of the
total deposits in commercial banks in the relevant
market. The Kansas City banking market is relatively unconcentrated with the 10 largest banking
organizations controlling just 56.5 per cent of total
market deposits. In view of the size of the banks to

1

All banking data are as of December 31, 1976.
The relevant banking market is the Kansas City banking
market, which is approximated by the northern half of Cass
County, all of Clay, Jackson, and Platte Counties in Missouri and
Johnson and Wyandotte Counties in Kansas. This market contains
134 banks.
3
Applicant purchased 17.9 per cent of the voting shares of
Kansas City Bank in 1976. Applicant's principals control 59 per
cent of the voting shares of Kansas City Bank. This raises a
rebuttable presumption, pursuant to § 225.2(b)(2) of Regulation Y
(12 CFR 225.2(b)(2)), that Applicant exercises a controlling influence over Kansas City Bank. Consummation of the proposed
transaction would formalize the control relationship that may have
existed between Applicant and Bank.
4
See the Board's Order of May 11, 1977, denying the application of Mahaska Investment Company, Oskaloosa, Iowa, to
become a bank holding company (63 Federal Reserve BULLETIN
579 (1977)).
2

32

Federal Reserve Bulletin • January 1978

be acquired and the large number of banking organizations competing in the market, it does not
appear that consummation of the proposed transaction will result in the elimination of a significant
amount of existing competition. While approval of
this application would eliminate two potential entry
vehicles for bank holding companies not represented in the market, the Board notes that 6 of 10
largest multibank holding companies in Missouri
are already represented in the market and that a
large number of independent banks would remain
available as entry vehicles after consummation of
the subject transaction. 5 Moreover, the Kansas
City banking market appears to be attractive for de
novo entry. 6 Two principals of Applicant are also
associated with six other banks in Missouri. 7 However, none of these banks competes in the relevant
banking market nor are they part of any holding
company system and, hence, the subject proposal
would eliminate no existing competition between
these six banks and Kansas City Bank or Westport
Bank. Accordingly, on the basis of the facts of
record, the Board concludes that consummation of
the proposal would not have any significantly adverse effect on competition.
The financial and managerial resources and future prospects of Applicant, Kansas City Bank and
Westport Bank are considered to be satisfactory
and are consistent with approval of the application.
Although Applicant will incur debt in connection
with the proposal, it appears to have the necessary
financial resources available to service the debt
without impairing the financial condition of either
bank. Furthermore, the financial and managerial
resources of the other banking organizations with
which Applicant's principals are associated are
regarded as satisfactory. While there will be no
immediate increase in the services offered by either
bank as a result of the proposed transaction, the
considerations relating to the convenience and
needs of the community to be served are consistent
with approval of the application. It is the Board's
judgment that the proposed transaction would be
consistent with the public interest and that the
application should be approved.
On the basis of the record, the application is

approved for the reasons summarized above. The
transaction shall not be made (a) before the thirtieth
calendar day following the effective date of this
Order or (b) later than three months after the
effective date of this Order, unless such period is
extended for good cause by the Board, or by the
Federal Reserve Bank of Kansas City pursuant to
delegated authority.
By order of the Board of Governors, effective
December 12, 1977.
Voting for this action: Chairman Burns and Governors
Gardner, Coldwell, Jackson, Partee, and Lilly. Absent
and not voting: Governor Wallich.

(Signed) G R I F F I T H L . GARWOOD,
[SEAL]

Of the 134 banks in the Kansas City banking market 94 banks
are not affiliated with multibank holding companies.
6
The ratio of deposits in the relevant market is $41.3 million as
compared with $26.9 million in the State of Missouri as a whole.
7
The banks are: Citizens State Bank of Fair Play, Fair Play;
Tri-County State Bank of El Dorado Springs, El Dorado Springs;
Humansville Bank, Humansville; The Lowry City Bank, Lowry
City; Osceola Bank, Osceola; Citizens Bank of Appleton City,
Appleton City, Missouri.




Secretary

of the

Board.

Manchester Financial Corp.,
St. Louis, Missouri
Order Denying
for a Stay and

Requests
Reconsideration

Plaza Bank of West Port, St. Louis, Missouri
("Petitioner"), has requested reconsideration and a
stay, pending judicial review, of the Order of the
Board of G o v e r n o r s , dated August 15, 1977,
whereby the Board approved the application of
Manchester Financial Corp., St. Louis, Missouri
( " M F C " ) , for Board approval filed pursuant to
section 3(a)(3) of the Bank Holding Company Act
(12 U.S.C. § 1842(a)(3) to acquire shares of Manchester Bank West County, Maryland Heights,
Missouri ( " B a n k " ) , a de novo bank. 1
The Board has reviewed the request for reconsideration and finds that it does not present any new
facts that, for good cause shown, were not previously presented to the Board; nor does it otherwise
appear to the Board that reconsideration would be
appropriate. Petitioner has requested that the
Board specifically address two issues: (1) whether
the Board was required to consider whether the
chartering of Bank was invalid under § 362.415 of
the Missouri Statutes 2 ; and (2) whether the Board
was required to file an Environmental Impact
Statement ( " E I S " ) pursuant to the Environmental

1

5

Deputy

63 Federal Reserve BULLETIN 848 (197/;.
MO. STAT. ANN. § 362.415 (Vernon's 1968). Section 362.415
provides in pertinent part:***
1. No person unauthorized by law shall subscribe to or become
a member of, or be in any way interested in any association,
institution or company formed or to be formed for the purpose of
issuing notes or other evidences of debt to be loaned or put in
circulation as money; nor shall any such person subscribe to or
become in any way interested in any bank or fund created or to be
created for the like purposes or either of them.***
2

Law Department

Policy Act of 1969.3 In the context of this application, the Board is of the view that it is not required
to consider issues of State law of the type advanced
by Petitioner in deciding whether to approve or
deny an application. Similarly, the Board is not
required to file an EIS in connection with the
subject application as the Board's approval of the
Application does not represent a "major Federal
action significantly affecting the quality of the
human environment" necessitating the filing of an
EIS.
The Petitioner argues that the chartering of Bank
was invalid under § 362.415 of the Missouri Statutes
and that, pursuant to the Supreme Court's holding
in Whitney National Bank of Jefferson Parish v.
Bank of New Orleans and Trust Company {"Whitney"),4 the Board is required to consider issues of
State law such as that presented by the acquisition
of Bank by MFC.
Although the Board did not specifically address
the issue of the alleged violation of § 362.415 of the
Missouri Statutes in its Order, it did address the
closely related issue of the alleged violation of
§ 362.015 of the Missouri Statutes. 5 The Board found
that under Whitney, the Board was not required to
consider a violation that occurred, if at all, upon the
issuance of the charter for Bank by the Missouri
Commissioner of Finance. Only where the acquisition of a bank by a bank holding company would
result in a violation of State law is the Board
required to consider issues of State law. However,
the alleged violation of § 362.415, like the alleged
violation of §362.015 previously considered by the
Board, occurred, if at all, upon the issuance of the
charter for Bank by the Missouri Finance Commissioner. Approval of the application by the Board
constituted an approval of Applicant's acquisition
of shares of Bank, not approval of the chartering of
Bank.
The second argument advanced by Petitioner,
that an EIS statement is required to be filed by the
Board, is based upon section 102(2)(c) of the National Environmental Policy Act (42 U.S.C. § 4332
(2)(c)) ( " N E P A " ) , which provides that an EIS
must be prepared by any federal agency taking
" . . . major Federal action significantly affecting
the quality of the human environment. . . . " The
"Federal action" taken by the Board on August 15,
1977, was its approval of a transfer of shares of

3
42 U.S.C. § 4332. Section 4332 provides that an EIS must be
prepared by any Federal agency taking " . . . major Federal action
significantly affecting the quality of the human environment."
4
379 U.S. 411 (1965).
5
63 Federal Reserve BULLETIN 848, 850-851.




33

Bank from five individual incorporators of Bank to
MFC. The Board finds that such a transfer, alone,
would not significantly affect the quality of the
human environment. 6 Moreover, the Petitioner has
not indicated how it believes the Board's action
would affect the environment. 7 Thus, having reviewed the question in the context of Protestant's
request, the Board finds that it is not required to file
an EIS in connection with the acquisition of Bank
by MFC.
Upon consideration of Petitioner's request for a
stay of the Board's Order pending judicial review
thereof, the Board finds that the stay should not be
granted for the following reasons. 8 First, the Board
finds it unlikely, for the reasons discussed above,
that the Petitioner will succeed on the merits in its
case now before the Eighth Circuit U.S. Court of
Appeals. The Board finds by this Order that the
arguments advanced by Petitioner in favor of the
Board's reconsideration of its August 15, 1977
Order are without merit. Secondly, the Petitioner
has not made a showing that it will suffer irreparable harm if the stay is denied. Indeed, the record
relied upon by the Board in its August 15, 1977
Order contradicts Petitioner's claim. The Order
indicates that: (1) the acquisition of Bank by MFC
would have " n o adverse competitive effect"; and
(2) that there is " n o evidence in the record to
indicate that this area will not continue to experience growth or that the area is unable to support a
new bank." Therefore, it appears from the facts
that Petitioner will not suffer irreparable harm if the
stay is denied. Thirdly, a stay would act to seriously
harm MFC and the public. On December 2, 1977,

6
In more than twenty years of administering the Act, no one
has ever brought to the Board's attention any adverse environmental consequence of any transfer of shares approved by the
Board under the Act. Any environmental effect of the formation of
a new bank derives from the chartering of the bank, not from the
transfer of its shares from its incorporators to a bank holding
company. See First National Bank of Homestead v. Watson, 363
F. Supp. 466 (D.C. D.C. 1973).
7
Under the Bank Holding Company Act, the Board is required
to take the convenience and needs of the community to be served
into consideration in acting upon an application filed with the
Board pursuant to section 3(a)(3) of the Act, § 12 U.S.C. §
1842(a)(3). Had the Petitioner asserted specific facts suggesting
somehow that approval of the application may have had an
adverse environmental impact, the Board could have considered
that impact in its consideration of the convenience and needs of
the community. However, no such assertions have been made in
this case and NEPA concerns have been raised seriously for the
first time in Petitioner's request for reconsideration.
8
The Board has taken into consideration the four factors that
courts apply in deciding whether to stay agency orders: (1)
likelihood of success on the merits; (2) irreparable injury to
movant; (3) substantial harm to interested parties; and (4) the
public interest, Washington Metropolitan Area Transit Commission v. Holiday Tours, Inc., No. 77-1379 (July 5, 1977).

34

Federal Reserve Bulletin • January 1978

Bank opened for business. A stay, if granted, could
result in the closing of Bank, the sale of Bank's
shares by MFC, and lost revenue for Bank during
the time it may be closed. Furthermore, Bank's
closing would cause disruption and inconvenience
to those innocent members of the community who
are customers of Bank. Finally, the public interest
would not be served by a stay for, if the stay were
granted, the community may lose the only source of
banking services available to it, other than Petitioner, in the Bank's proposed service area. 9 The
Board in its Order stated that the acquisition of
Bank by MFC would "significantly enhance the
convenience and serve the needs of the community." This benefit would be lost to the community
during such time as the stay would remain in effect.
Therefore, in light of the above considerations,
the Board denies the Petitioner's requests for reconsideration and a stay of the Board's August 15,
1977 Order.
By order of the Board of Governors, effective
December 7, 1977.
Voting for this action: Vice Chairman Gardner and
Governors Cold well, Jackson, and Partee. Absent and not
voting: Chairman Burns and Governors Wallich and Lilly.

(Signed) G R I F F I T H L. GARWOOD,
[SEAL]

Deputy

Secretary

of the

Board.

Tennessee Homestead Company,
Ogden, Utah
Order Approving Retention of Bank Shares
Tennessee Homestead Company ("Applicant"),
Ogden, Utah, a bank holding company within the
meaning of the B a n k Holding C o m p a n y Act
( " A c t " ) , has applied for the Board's approval
under § 3(a)(3) of the Act (12 U.S.C. § 1842(a)(3)) to
retain 0.47 per cent of the voting shares of Bank of
Utah ("Bank"), Ogden, Utah.
Notice of the application, affording opportunity
for interested persons to submit comments and
views, has been given in accordance with § 3(b) of
the Act. The time for filing comments and views has
expired, and the Board has considered the application and all comments received, in light of factors
set forth in § 3(c) of the Act (12 U.S.C. § 1842(c)).

9
The Board notes that Petitioner has diligently pursued its
position through administrative and judicial procedures at the
State level in its efforts to keep Bank from opening. Notwithstanding such efforts, neither the Missouri Commissioner of Finance,
the State Banking Board, nor the Missouri State courts have seen
fit to stay the effectiveness of the Commissioner's order granting
Bank its charter.




Applicant is a bank holding company by virtue of
its ownership of 46.7 per cent of the shares of Bank
and its control of the Bank of Northern Utah,
Clearfield, Utah. Applicant is the 8th largest of 54
commercial banking organizations in Utah, with
total deposits of $98.2 million, representing approximately 2.6 per cent of the total deposits in commercial banks in Utah. 1 Applicant acquired 522
voting shares, or 0.47 per cent of the total outstanding voting shares of Bank, without the Board's prior
approval, and now seeks the Board's approval to
retain these shares. 2
Bank ($92.1 million in deposits) controls 2.4 per
cent of the total commercial bank deposits in Utah
and is the eighth largest commercial bank in the
State. Bank is the third largest of eleven commercial banks in the relevant banking market, 3 controlling 16.8 per cent of market deposits. 4 In view of the
fact that Applicant already controlled Bank before
acquiring additional shares, it does not appear that
Applicant's retention of Bank's shares would have
any adverse effect on competition, or increase the
concentration of banking resources. Thus, competitive considerations are consistent with approval of
the application.
The financial resources and future prospects of
Applicant, Bank, and Bank of Northern Utah are
considered generally satisfactory. In making its
analysis of the managerial resources of these organizations, the Board notes that this application
represents an after-the-fact request for the Board's
approval to retain Bank shares acquired in violation
of the Act. Upon consideration of the facts and

1
Banking data are as of June 30, 1977, unless indicated otherwise.
2
On November 1, 1976, Applicant purchased 275 shares of
Bank and on March 11, 1977, Applicant purchased an additional
247 shares of Bank, representing 0.47 per cent of the total
outstanding voting shares of Bank. Prior to April 15, 1974,
Applicant held 52.8 per cent of the outstanding shares of Bank. As
a result of the merger of Bank of Ben Lomond, Ogden, Utah, into
Bank on April 15, 1974, Applicant's ownership interest was
reduced to 46.25 per cent of the total outstanding shares of Bank.
Prior to the merger, because Applicant owned over 50 per cent of
the voting shares of Bank, Applicant could have acquired additional shares of Bank without the Board's prior approval, pursuant
to § 3(a)(B) of the Act. It appears that Applicant believed that §
3(a)(B), which permits a company to acquire additional bank
shares without prior Board approval if the company already owns
or controls a majority of the bank's shares, was available to it
because of an additional 4.7 per cent of Bank's shares held by
Applicant's principals and by various family trusts.
3
The relevant banking market is approximated by the Ogden,
Utah RMA, which is comprised of portions of Weber and Davis
Counties, Utah.
4
Market data are as of June 30, 1976.
Through Bank and Bank of Northern Utah, Applicant is the
third largest of ten banking organizations in the market, controlling $79 million in deposits, or 18.1 per cent of total deposits in the
market.

Law Department

circumstances surrounding Applicant's violations
and other information in the record evidencing
Applicant's intent and efforts to comply with the
requirements of the Act, including Applicant's
adoption of a definite program to prevent the recurrence of violations, the Board has determined that
the circumstances of the violations do not reflect so
adversely on the managerial resources of Applicant
as to warrant denial of the application. In other
respects, the managerial resources of Applicant,
Bank, and Bank of Northern Utah are regarded as
generally satisfactory. Accordingly, considerations
relating to banking factors are consistent with approval.
Although there are no changes contemplated in
the services or facilities of Bank as a result of the
retention of the voting shares, considerations relating to the convenience and needs of the community
to be served are consistent with approval of the
application. Therefore, it is the Board's judgment
that the proposed transaction is consistent with the
public interest and that the application should be
approved.
On the basis of the record, the application is
approved for the reasons summarized above.
By Order of the Board of Governors, effective
December 19, 1977.
Voting for this action: Chairman Burns and Governors
Gardner, Wallich, Cold well, Jackson, Partee, and Lilly.

(Signed) G R I F F I T H L . GARWOOD,
[SEAL]

Deputy

Secretary

of the

Board.

Pacesetter Financial Corporation,
Grand Rapids, Michigan
Order Approving Acquisition of Bank
Pacesetter Financial Corporation, Grand Rapids,
Michigan, ("Applicant") a bank holding company
within the meaning of the Bank Holding Company
Act, has applied for the Board's approval under § 3
(a)(3) of the Act (12 U.S.C. § 1842(a)(3)) to acquire
all of the voting shares of Western Michigan Corporation, Niles, Michigan ("Western") a registered
bank holding company owning 100 per cent of the
First National Bank of Southwestern Michigan,
Niles, Michigan ("Niles Bank"), and The First
National Bank of Cassopolis, Cassopolis, Michigan
("Cassopolis Bank"). 1

1
By Order dated April 29, 1977 (63 Federal Reserve BULLETIN
507 (1977)), the Board approved Western's application to acquire
Cassopolis Bank. It is expected that this acquisition will be
consummated shortly, and such consummation is assumed for
purposes of this Order.




35

Notice of the application, affording opportunity
for interested persons to submit comments and
views, has been given in accordance with § 3(b) of
the Act. The time for filing comments and views has
expired, and the Board has considered the application and all comments received in light of the
factors set forth in § 3(c) of the Act (12 U.S.C.
§ 1842(c)).
Applicant, the 16th largest banking organization
in Michigan, controls four banks with aggregate
deposits of $362.1 million, representing approximately 1.1 per cent of the total deposits in commercial banks in Michigan. 2 Acquisition of Western,
which holds aggregate deposits of $158.8 million,
and is thereby the 30th largest banking organization
in Michigan, will increase Applicant's share of
statewide deposits by 0.5 per cent and Applicant
would thereby become the 14th largest banking
organization in Michigan.
Both Niles Bank and Cassopolis Bank operate in
the Niles, Michigan/South Bend-Elkhart, Indiana
banking market. 3 Niles Bank also has branches in
the adjacent St. Joseph-Benton Harbor, Michigan
banking market. 4 Western is the sixth largest banking organization in the Niles market, holding 8.1 per
cent of market deposits, and the fifth largest in the
St. Joseph market, with 5.8 per cent of that market's deposits. 5 None of Applicant's subsidiary
banks competes in either of these markets. It does
not appear that any of Applicant's subsidiary banks
derives significant amounts of deposits or loans
from the service area of W e s t e r n ' s subsidiary
banks; nor does it appear that any significant competition currently exists between any of Applicant's
subsidiary banks, on the one hand, and Western's
subsidiary banks, on the other. Thus, it does not
appear that consummation of this proposal would
eliminate any significant existing competition.
Western has demonstrated no inclination to become a statewide competitor, and its competitive
presence is felt only in the far southwestern portion
of Michigan. Neither the Niles nor the St. Joseph
banking markets is highly concentrated and thus,
elimination of Applicant as a potential de novo or
foothold entrant into either market would not have a
significant adverse effect on potential competition.

2
Unless otherwise indicated, banking data are as of June 30,
1977.
3
This market is approximated by the Niles South Bend-Elkhart
Rand McNally Area plus Cass Country, Michigan.
4
The St. Joseph-Benton Harbor banking market is approximated by the north-northwestern two-thirds of Berrien County,
Michigan plus the western half of Van Buren County, Michigan.
5
As of December 31, 1976.

36

Federal Reserve Bulletin • January 1978

In view of the size of the market shares held by
Western, consummation of the proposed transaction, in any event, would eliminate only a very
slight amount of probable future competition, if
any, between Western and Applicant.
The financial and managerial resources of Applicant, Western, and Western's subsidiary banks are
regarded as satisfactory, and the future prospects of
each appear favorable. The managerial resources of
Applicant's subsidiary banks are also satisfactory
and, in light of pending capital injections, their
financial resources appear satisfactory and their
future prospects favorable. Accordingly, considerations relating to banking factors are consistent with approval.
Considerations relating to the convenience and
needs of the community to be served lend some
weight toward approval of the application, since
Applicant will seek, among other things, to improve
trust services and to utilize electronic funds transfer
services. These convenience and needs factors are
sufficient to outweigh clearly the very slight adverse competitive factors mentioned above, and the
Board concludes that on balance the application
should be approved.
On the basis of the record, the application is
approved for the reasons summarized above. The
transaction shall not be made (a) before the thirtieth
calendar day following the effective date of this
Order or (b) later than three months after the
effective date of this Order, unless such period is
extended for good cause by the Board, or by the
Federal Reserve Bank of Chicago pursuant to delegated authority.
By order of the Board of Governors, effective
December 23, 1977.
Voting for this action: Chairman Burns and Governors
Gardner, Wallich, Coldwell, Jackson, and Partee. Absent
and not voting: Governor Lilly.

(Signed) G R I F F I T H L. GARWOOD,
[SEAL]

Deputy

Secretary

of the

Board.

Parish National Corporation,
Bogalusa, Louisiana
Order Approving
of Bank Holding

Formation
Company

Parish N a t i o n a l C o r p o r a t i o n , B o g a l u s a ,
Louisiana, has applied for the Board's approval
under § 3(a)(1) of the Bank Holding Company Act
(12 U.S.C. § 1842(a)(1)) of formation of a bank
holding company by acquiring 81 per cent or more of



the voting shares of Parish National Bank, Bogalusa,
Louisiana ("Bank").
Notice of the application, affording opportunity
for interested persons to submit comments and
views, has been given in accordance with § 3(b) of
the Act. The time for filing comments and views has
expired, and the application and all comments
received have been considered in light of the factors
set forth in § 3(c) of the Act (12 U.S.C. § 1842(c)).
Applicant, a non-operating company with no
subsidiaries, was organized for the purpose of becoming a bank holding company by acquiring Bank.
Bank has total deposits of $36 million, representing
less than 1 per cent of total deposits in commercial
banks in the State of Louisiana. 1 Bank is the smallest
of three commercial banks in the relevant banking
market, 2 controlling 26.5 per cent of the deposits
therein. Principals of Applicant are principals of
First National Corporation, Covington, Louisiana, a
one-bank holding company controlling First National Bank, Covington, Louisiana. First National
Bank is located 25 miles from Bank in a separate
banking market. In view of the distance between
Bank and First National Bank, consummation of the
instant proposal will have no adverse effect upon
existing competition, nor will consummation adversely affect potential competition or increase the
concentration of banking resources in any relevant
area. Accordingly, it is concluded that competitive
considerations are consistent with approval of the
application.
The Board applies multi-bank 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, where the principals
of the applicant are engaged in establishing a chain of
one-bank holding companies. 3 The financial and
managerial resources and future prospects of Applicant appear to be satisfactory. In view of Applicant's
commitment to augment Bank's capital by $500,000
from the proceeds of Applicant's sale of its common
stock and in view of Bank's commitment to issue
subordinated debentures in the amount of $500,000,
the financial resources and future prospects of Bank
appear to be satisfactory. The proposed transaction
does not involve a change in management or management policies of Bank. The considerations relat-

1

All deposit data are as of December 31, 1976.
The relevant banking market is approximated by Washington
Parish, Louisiana.
3
See, e.g., Board's Order dated June 14, 1976, denying the
application of Nebraska Banco, Inc., Ord, Nebraska, 62 Federal
Reserve BULLETIN 638 (1976).
2

Law Department

ing to banking factors are consistent with approval of
the application.
There are no significant proposed changes in the
operation or services of Bank. Considerations relating to the convenience and needs of the community
to be served are consistent with approval of the
application. It has been determined that consummation of the proposed transaction would be consistent with the public interest and that the application
should be approved.
On the basis of the record, the application is
approved for the reasons summarized above. The
transaction shall not be made (a) before the thirtieth
calendar day following the effective date of this
Order or (b) later than three months after the
effective date of this Order, unless such period is
extended for good cause by the Board, or by the
Federal Reserve Bank of Atlanta pursuant to delegated authority.
By order of the Secretary of the Board, acting
pursuant to delegated authority for the Board of
Governors, effective December 2, 1977.
(Signed)
[SEAL]

THEODORE E . ALLISON,

Secretary

of the

Board.

United Banks of Colorado, Inc.,
Denver, Colorado
Order Approving Acquisition

of Bank

United Banks of Colorado, Inc., Denver, Colorado, 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 80 per cent (or more)
of the voting shares of United Bank of Arvada,
N.A. Arvada, Colorado ( " B a n k " ) .
Notice of the application, affording opportunity
for interested persons to submit comments and
views, has been given in accordance with § 3(b) of
the Act. The time for filing comments and views has
expired, and the Board has considered the application and all comments received, including those
submitted on behalf of Northwest State Bank,
Arvada, Colorado ("Protestant"), in light of the
factors set forth in § 3(c) of the Act (12 U.S.C.
§ 1842(c)).
Applicant, the second largest banking organization in Colorado, controls 18 banks with aggregate
deposits of approximately $1.3 billion, representing
15.4 per cent of the total deposits in commercial



37

banks in the State. 1 Since Bank is a proposed new
bank, its acquisition by Applicant would not increase the concentration of banking resources in
Colorado.
Bank, which is currently in formation, would be
located in the city of Arvada, in the northwest
portion of the Denver banking market. 2 There are
three other banks located in Arvada, one of which
is Protestant. Applicant is the second largest banking organization in the market, with seven of its
banking subsidiaries controlling 19.8 per cent of
market deposits. Since Bank is a proposed new
bank, consummation of the proposal would not
eliminate any existing competition in the market.
Moreover, given the size of the market, the number
of banks operating therein, and the prospects for
continuing growth in the area, it does not appear
that the proposal would have any adverse effects on
potential competition. On the basis of the above
and facts of record, the Board concludes that
competitive considerations are consistent with approval of the application.
The financial and managerial resources of Applicant, its subsidiaries, and Bank are regarded as
generally satisfactory. Bank has no financial or
operating history; however, its future prospects as
a subsidiary of Applicant appear favorable and
considerations relating to banking factors are therefore regarded as consistent with approval of the
application. As a new institution in the city of
Arvada and the Denver market, Bank would serve
as an additional source of a full range of banking
services in the market. Accordingly, considerations
relating to the convenience and needs of the community to be served are consistent with approval of
the application.
In its review of the subject application, the Board
has given careful consideration to the comments
submitted on behalf of Protestant, a bank located
near the proposed site of Bank. Protestant contends, inter alia, that the banking needs of the
community area are being adequately met at the
present time and there is no need for a new bank;
that the acquisition is anti-competitive; and that
Applicant's subsidiary banks are acting as de facto
branches in violation of Colorado law. 3

1
All banking data are as of December 31, 1976, and reflect bank
holding company formations and acquisitions approved by the
Board through August 17, 1977.
2
The Denver market includes all of Denver, Adams, Arapahoe
and Jefferson Counties and the Broomfield area in Boulder
County.
3
Protestant also requested a hearing on the instant application,
(Footnote continued on following page)

38

Federal Reserve Bulletin • January 1978

Protestant gave evidence in opposition to the
chartering of Bank at a public hearing before the
Regional Administrator of the Office of the Comptroller of the Currency, Denver, Colorado, on
May 11, 1976. The Comptroller of the Currency
found that adequate demand for banking services
existed to support an additional bank, and approved
Bank's national charter. The Board has reviewed
the facts of record, including the transcript of the
hearing before the Comptroller, and finds that the
market can reasonably be expected to support an
additional banking facility.
With regard to competition, Protestant contends
that consummation of the proposal would enhance
Applicant's penetration in the market by placing
Applicant in a dominant position in the market and
pre-empting a location for entry into the Denver
market. Applicant competes with 80 banks in the
Denver market, and its market share of 19.8 per
cent is not such that it could be characterized as
such a "dominant" organization in that market that
it should be denied the opportunity to expand de
novo. Furthermore, Applicant's market share has
actually decreased by 6 percentage points from 20.4
per cent as of December 31, 1969. While, in certain
instances, de novo expansion in a market by a
leading organization within that market might reduce the prospects for market deconcentration by
preempting viable sites for de novo entry or expansion by other firms, Applicant's de novo expansion
in the northwest portion of the Denver market 4 is
not viewed by the Board with such concern. In fact,
it appears that the proposal would have only a
minimal impact on the market since the structure
and prospects for the market should provide ample
opportunity for foothold entry or de novo expansion by the State's other banking organizations.
Protestant also contends that Bank's proposed
affiliation with Applicant would offend Colorado
law prohibiting branch banking, 1973 C.R.S. 11-6-

and that request is hereby denied. Under § 3(b) of the Act, the
Board is required to hold a hearing when the primary supervisor of
the Bank to be acquired recommends disapproval of the application (12 U.S.C. 1842(b)). In this case, after a hearing on the charter
application, the Comptroller of the Currency issued preliminary
charter approval to Bank on February 14, 1977, and he has not
subsequently recommended that the subject application be denied.
Thus, there is no statutory requirement that the Board hold a
hearing. In view of the Board's conclusion that the record in this
case is sufficiently complete to render a decision, the Board has
denied Protestant's request for a hearing.
4
The Denver market has a population of 17,273 per banking
office, as compared with 11,583 per banking office in the state of
Colorado. Thus the market may be characterized as an attractive
one for de novo entry and approval of this proposal will not
preclude entry into the market by other banks or banking organizations.




101. It is clear from a long line of court cases that a
State's restrictive branch banking laws do not automatically bar bank holding company operations.
In a given case, the Board must examine the facts to
determine whether a particular acquisition would
constitute an illegal branch under State law. See
Gravois Bank v. Board of Governors 478 F.2d 546
(1973). If the Board determines that a violation of
State law would occur as a result of the consummation of the proposal, it is required to disapprove the
transaction. Whitney National Bank v. Bank of
New Orleans 323 F.2d 290 (D.C. Cir 1963), reversed on other grounds, 379 U.S. 411 (1965).
The facts of record indicate that Bank will be a
separate corporation, with its own capital stock and
a loan limit based upon such capital stock; that
Bank will be managed by its own officers; that
Bank's board of directors will be generally separate
and independent from the boards of Applicant and
of Applicant's subsidiaries; and that Bank will
maintain its own separate books of account, issue
its own distinctive checks, and use its own stationery. Moreover, except as permitted by law, money
deposited at Bank will not be credited to the
account of a depositor at any other banking subsidiary, nor will money deposited at the other
subsidiaries be credited to accounts at Bank; 5
Bank's officers and employees will not directly
perform any services for customers of Applicant's
other subsidiary banks other than those services
that would be provided for customers of other area
banks, and, conversely, officers and employees of
Applicant's other subsidiary banks will not directly
perform any services for customers of Bank that
would not be provided for customers of other area
banks. Applicant further represents that it will
purchase Bank's shares through use of its own
capital resources.
The Board concludes, based upon the above and
other facts of record, that Applicant is a "traditionally recognized bank holding company which, with
its own capital, invests in or buys the stock of
banks," 6 and that, upon consummation of the proposed acquisition, Bank would not be an illegal
branch of any of Applicant's other banking sub-

5
Under recently enacted Colorado law, 73 C.R.S. 11-6.5-101,
which becomes effective on January 1, 1978, Colorado banks are
authorized to engage, inter alia, in certain banking transactions
(including making deposits and withdrawals) with their account
holders through on-or off-premises communications facilities notwithstanding the limitations imposed by C.R.S. 11-6-101. Inasmuch as Bank would not open until after the effective date of this
provision, any deposit taking arrangements involving such communications facilities would be permissible under State law.
6
Whitney 323 F.2d 290,303.

Law Department

sidiaries. Furthermore it appears that any indicia of
unitary operations that may be present in Applicant's future operations of Bank are those that are
inherent in the structure of bank holding companies
generally and permissible under Colorado law.
Grandview Bank and Trust Company v. Board of
Governors 550 F.2d 415 (1977).
In view of the foregoing discussion and having
considered the facts of record and all the comments
of Protestant in light of the statutory factors the
Board must consider under § 3(c) of the Act, it is
the Board's judgment that consummation of the
subject proposal would be in the public interest and
that the application to acquire Bank 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) United Bank of Arvada, N.A., Arvada,
Colorado, 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 Kansas City pursuant to delegated authority.
By order of the Board of Governors, effective
December 27, 1977.
Voting for this action: Chairman Burns and Governors
Gardner, Wallich, Coldwell, Jackson, and Partee. Absent
and not voting: Governor Lilly.

(Signed) G R I F F I T H L. GARWOOD,
[SEAL]

Deputy

Secretary

of the

Board.

United Missouri Bancshares, Inc.,
Kansas City, Missouri
Order Approving Acquisition of Bank
United Missouri Bancshares, Inc., Kansas City,
Missouri, a bank holding company within the meaning of the Bank Holding Company Act, has applied
for the Board's approval under § 3(a)(3) of the Act
(12 U.S.C. § 1842(a)(3)) to acquire 100 per cent (less
directors' qualifying shares) of the voting shares of
The Cass C o u n t y B a n k , P e c u l i a r , Missouri
("Bank").
Notice of the application, affording opportunity
for interested persons to submit comments and
views, has been given in accordance with § 3(b) of
the Act. The time for filing comments and views has
expired, and the Board has considered the applica


39

tion and all comments received, including those
submitted by the Missouri State Commissioner of
Finance, in light of the factors set forth in § 3(c) of
the Act (12 U.S.C. § 1842(c)).
Applicant, the sixth largest banking organization
in Missouri, controls 19 banks with total deposits of
$919 million, representing 4.8 per cent of the total
deposits in commercial banks in the State. 1 Acquisition of Bank (deposits of $7.2 million) would
increase Applicant's share of commercial bank deposits in Missouri by .04 per cent and would have
no appreciable effect upon concentration of banking resources in Missouri.
Bank is one of the smallest of 134 commercial
banks in the relevant banking market 2 and holds
approximately .13 per cent of the total commercial
bank deposits in the market. Applicant has five
banking subsidiaries in the Kansas City market and
is the third largest banking organization in the
market, controlling 10.8 per cent of market deposits. Upon consummation of the proposed acquisition, Applicant's share of commercial bank deposits in the market would increase to 10.9 per cent
and Applicant's rank in the market would not
change. Inasmuch as Applicant and Bank operate in
the same relevant market, the proposed acquisition
would eliminate some existing competition and
increase somewhat the concentration of banking
resources in that market. However, the Board does
not view much effects as being particularly serious
in light of the competitive banking structure in the
Kansas City market. Six of the ten largest banking
organizations in Missouri are represented in the
market and are among the largest banking organizations in the market. While consummation of the
proposal would reduce the number of independent
banking organizations in the Kansas City market,
this does not appear to be significant since a large
number of independent banks would remain available as entry vehicles into the market after consummation of the proposal. In light of the above
and other facts of record, the Board concludes that
the proposed acquisition would have only slightly
adverse effects on competition and, in light of the
considerations discussed below, the Board does not
view such effects as being so serious as to require
denial of this proposal.

1
All banking data are as of December 31, 1976, and are adjusted
to reflect bank holding company applications approved by the
Board to date.
2
The relevant banking market is the Kansas City banking
market, which is approximated by the northern half of Cass
County, all of Clay, Jackson, and Platte Counties in Missouri and
Johnson and Wyandotte Counties in Kansas.

40

Federal Reserve Bulletin • January 1978

The financial and managerial resources and future prospects of Applicant, its subsidiary banks,
and Bank are regarded as satisfactory and consistent with approval of the proposal. As a result of
affiliation with Applicant, Bank's ability to meet
increasing residential mortgage loan demand and
agricultural and commercial loan demand will be
improved. Thus, considerations relating to the convenience and needs of the community to be served
lend weight toward approval of the application and,
in the Board's judgment, are sufficient to outweigh
any slightly adverse effects on competition that
might result from consummation of the proposal. It
is the Board's judgment that approval of the application would be in the public interest and that the
application should be approved.
On the basis of the record, the application is
approved for the reasons summarized above. The
transaction shall not be made (a) before the thirtieth
calendar day following the effective date of this
Order or (b) later than three months after the
effective date of this Order, unless such period is
extended for good cause by the Board, or by the
Federal Reserve Bank of Kansas City pursuant to
delegated authority.
By order of the Board of Governors, effective
December 23, 1977.
Voting for this action: Chairman Burns and Governors
Gardner, Wallich, Cold well, Jackson, and Partee. Absent
and not voting: Governor Lilly.

(Signed) G R I F F I T H L . GARWOOD,
[SEAL]

Deputy

Secretary

of the

Board.

WISCUB, Inc.,
Milwaukee, Wisconsin
Order Approving
Formation of Bank Holding

Company

W I S C U B , I n c . , Milwaukee, Wisconsin, has
applied for the Board's approval under § 3(a)(1) of
the Bank Holding Company Act (12 U.S.C. § 1842
(a)(1)) of formation of a bank holding company
through acquisition of 86 per cent (or more) of the
voting shares of Cleveland State Bank, Cleveland,
Wisconsin ("Bank").
Notice of the application, affording opportunity
for interested persons to submit comments and
views, has been given in accordance with § 3(b) of
the Act. The time for filing comments and views has
expired, and the Board has considered the application and all comments received, including those of
Associated Banc-Corp., the State Bank of Howards
Grove and the Wisconsin Bankers Association



("Protestants"), opposing the proposal, in light of
the factors set forth in § 3(c) of the Act (12 U.S.C.
§ 1842(c)).
Applicant is a recently formed corporation organized for the purpose of becoming a bank holding
company through the acquisition of Bank. 1 Bank
holds total deposits of approximately $7 million,
representing 2.5 per cent of total deposits in commercial banks in the relevant banking market 2 and
is the seventh largest of 11 banking organizations in
the market. 3
Since Applicant has no present operations or
subsidiaries, consummation of the proposed transaction would not have any adverse effect on existing or potential competition, nor would it increase
the concentration of banking resources or have an
adverse effect on other banks in the relevant market. Accordingly, the Board concludes that competitive considerations are consistent with approval
of the application.
The financial and managerial resources of Applicant and Bank are regarded as satisfactory, and the
future prospects for each appear favorable. Applicant would incur no debt incident to the subject
proposal. Accordingly, the Board concludes that
the banking factors are consistent with approval of
the application.
As noted above, the Board has received comments opposing the subject proposal. Protestants
contend generally that consummation of the proposal would have adverse competitive effects. Protestants argue that because bank holding companies
may not acquire shares of a savings and loan, credit
union or any similar financial organization, credit
unions should not be allowed to acquire shares of
banks or bank holding companies. In addition,
Protestants argue that the proposal is an attempt by
members of the credit union industry to obtain a
captive commercial bank and thereby avoid having
to use other commercial banks. Similarly, Protestants argue that Applicant's acquisition of Bank
would serve the needs of the State's credit union

1
Applicant was organized by the Wisconsin Credit Union
League ("WCUL"), and members thereof would each be permitted to purchase not more than 4.95 per cent of the outstanding
voting stock of Applicant. The application indicates that each
credit union-shareholder of Applicant would sign a voting trust
agreement naming WCUL as trustee for the shares of Applicant
that it holds. Each credit union-shareholder would retain the
power to direct the Trustee in the exercise of the voting rights of
the shares of Applicant that the Trustee would hold on behalf of
the individual credit union-shareholder.
2
The relevant banking market for purposes of competitive
analysis of this proposal is the Manitowoc-Two Rivers banking
market, which is approximated by all except the southwestern
portion of Manitowoc County.
3
All banking data are as of December 31, 1976.

Law Department

industry and not the convenience and needs of the
community. Protestants also contend that the proposed arrangement among the credit unionshareholders of Applicant with WCUL as the voting Trustee would result in a bank holding company
being created, and Protestants urge the Board to
reconsider its earlier determinations that such arrangements do not constitute a "company", as that
term is defined in the Act. 4 Finally, Protestants
have requested that a formal hearing be held in
connection with the issues that have been raised in
Protestants' comments.
Section 3(b) of the Act requires the Board to hold
a formal hearing when the primary supervisor of the
bank to be acquired (in this case, the Wisconsin
Banking Commissioner) recommends disapproval
of the application (12 U.S.C. § 1842(b)). Since the
Wisconsin Banking Commissioner has interposed
no such objection, there is no statutory requirement
that the Board hold a formal hearing in the instant
matter. 5 The Board has reviewed the entire record
of this application, including the views expressed in
the written submissions of Protestants and Applicant's responses to those submissions, and concludes that the record is sufficiently complete to
render a decision on the application and that no
useful purpose would be served by holding a formal
hearing. Accordingly, Protestants' request for a
hearing is denied.
With respect to the competitive issues raised by
Protestants in connection with the proposal, the
Board is unable to agree that this acquisition would
result in adverse competitive effects in any relevant
market. 6 Indeed, it appears more likely that Bank

4
Company is defined, in part, in § 2(b) of the Act as
. . any
corporation, partnership, business trust, association, or similar
organization, or any other trust unless by its terms it must
terminate within twenty-five years. . . ." (12 U.S.C. § 1841(b)).
The Board has previously determined that similar arrangements
would not constitute companies in its Orders approving the
formation of CUbanc Corp., Columbus, Ohio (62 Federal Reserve
BULLETIN 792 (1976)) and CU Bank Shares, Inc., Dallas, Texas
(62 Federal Reserve BULLETIN 364 (1976)).
5
See Farmers & Merchants Bank of Las Cruces v. Board of
Governors of the Federal Reserve System, [1977] Fed. Banking L.
Rep. (CCH) 11 97,271 (D.C. Cir-. Nov. 7, 1977) with respect to the
statutory requirement of a hearing.
6
As the Board has noted on previous occasions (cf. the Board's
Order approving the acquisition of The First National Bank of
Mexico, Mexico, Missouri, by Central Bancompany, Jefferson
City, Missouri (62 Federal Reserve BULLETIN 843 (1977)), § 3(c) of
the Act requires the Board to consider whether a proposed
acquisition would have adverse effects upon competition among
commercial banking organizations within a relevant market. This
analysis relates primarily to the existing or potential number of
commercial banking organizations competing in the market to
provide commercial banking services, which is the relevant product (see U.S. v. Philadelphia National Bank, 374 U.S. 321 for a
discussion of the relevant product definition to be used in analyzing the competitive effects of bank acquisitions).




41

would continue as a competitor in the relevant
market and that Applicant's acquisition of Bank
may even have a somewhat positive competitive
effect as a result of Bank becoming a more aggressive competitor for services performed by commercial banks for credit unions. Similarly, the Board
finds without substantial merit Protestants' contention that this proposal would result in bank holding
companies being at a disadvantage with respect to
other financial institutions because the Board has
determined that bank holding companies may not
acquire savings and loan associations 7 or similar
financial institutions. This argument has only limited relevance to the subject proposal and, in addition, overlooks the degree of flexibility provided
bank holding companies in § 4(c)(6) of the Act (12
U.S.C. § 1843(c)(6)), which permits investments by
bank holding companies in the shares of any company so long as the bank holding company does not
acquire more than 5 per cent of any class of the
outstanding voting shares of the company. 8
Finally, the Board has reconsidered its earlier
decisions that voting trust arrangements involving
credit unions such as that proposed in the instant
application do not result in the creation of a "company", as that term is defined in the Act, in light of
Protestants' comments, and has determined that its
earlier decisions should be modified to the extent
described herein in order to carry out the purposes
of the Act. 9 Where, as here, the voting trust Trustee
is a trade association of credit unions, the Board is
concerned that the Trustee would have responsibilities to its credit union members as an association and at the same time responsibilities to the
beneficiaries of the voting trust. Such dual responsibilities may result in the trade association acting
less as a disinterested Trustee and more as a
company exercising control over Applicant's and
Bank's management. Moreover, the proposal as
presently structured would result in a group of

7
See the Board's Order denying the application of D. H.
Baldwin Co. to retain Empire Savings, Building and Loan Association (63 Federal Reserve BULLETIN 280 (1977)).
8
The credit unions acquiring shares of Applicant are each
acquiring less than 5 per cent of the outstanding voting shares of
Applicant. Moreover, the Board has approved a similar arrangement among one-bank holding companies in Oklahoma (see the
Board's Order of May 6, 1977, approving the formation of SYB
Corporation, Oklahoma City, Oklahoma (63 Federal Reserve

BULLETIN 587 (1977)).
9
In view of the Board's disposition of this case, the Board has
today directed those bank holding companies previously approved
by the Board that involved similar arrangements among their
credit union-shareholders to bring themselves into conformity
with the conditions imposed upon the Applicant and its shareholders in the instant case within six months of the date of this
Order.

42

Federal Reserve Bulletin • January 1978

shareholders united through both a voting trust
agreement and through common membership in the
trade association that would serve as the Trustee
for the voting trust, thus necessitating a finding that
the group constitutes a company. 1 0 Therefore, the
Board has determined that approval of this application, and a decision not to treat the stockholder
group, the voting trust, and/or the voting Trustee as
a bank holding company, should be conditioned
upon the selection of a bona fide independent
trustee for the voting trust and upon WCUL's
refraining from any role by any means in the
management of Bank or Applicant. 11
Applicant has indicated that upon consummation
of its proposal it would make changes in the customer services provided by Bank. Bank would
provide service-free checking for senior citizens,
higher interest rates for certain categories of time
deposits, additional loan p r o g r a m s , overdraft
checking, free bank by mail services, and free
printed checks. Thus, the Board is unable to agree
with Protestants' contention that Bank would no
longer serve the convenience and needs of the local
community if Applicant's proposal were approved.
Accordingly, considerations relating to the convenience and needs of the communities to be served
lend some weight toward approval of the application.
On the basis of the foregoing and the facts of
record, it is the Board's judgment that the proposed
acquisition would be in the public interest and that
the application should be approved. Accordingly,
the application is approved for the reasons summarized a b o v e and subject to the conditions
specified herein. The transaction shall not be made
(a) before the thirtieth calendar day following the
effective date of this Order or (b) later than three
months after the effective date of this Order, unless
such period is extended for good cause by the Board,

10
The Board noted in its SYB Order, infra, that a . . group of
shareholders (of a bank or a bank holding company) may itself,
through agreement or understanding among the members or
through its structure alone, constitute a "company" within the
meaning of § 2(b) of the Act (12 U.S.C. § 184(b))". Where the
companies in a consortium owning or controlling shares of a bank
or bank holding company engage in other banking or nonbanking
activities as part of a group that consists of substantially the same
companies as are shareholders of the bank or bank holding
company, that influence is even stronger.
11
Because WCUL is an organization that falls within the
definition of a company, the rebuttable presumptions of control
contained in the Board's Regulation Y would apply if WISCUB
were to enter into any agreement or understanding whereby it
exercised significant influence with respect to the general management or overall operations of Bank or Applicant (12 CFR
§ 225.2(b)(3)).




or by the Federal Reserve Bank of Chicago pursuant
to delegated authority.
By order of the Board of Governors, effective
December 30, 1977.
Voting for this action: Chairman Burns and Governors
Gardner, Wallich, Cold well, Jackson, and Partee. Absent
and not voting: Governor Lilly.

(Signed) G R I F F I T H L. GARWOOD,
[SEAL]

Deputy

Secretary

of the

Board.

ORDERS U N D E R SECTION 4
OF BANK H O L D I N G COMPANY A C T

Central Bancshares of the South, Inc.,
Birmingham, Alabama
Order Approving Acquisition
of The Trust Company of California
Central Bancshares of the South, Inc., Birmingham, Alabama, 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 U.S.C. § 1843(c)(8)) and § 225.4(b)(2) of
the Board's Regulation Y (12 CFR § 225.4(b)(2)),
to acquire The Trust Company of California, Newport Beach, California ("Trust Company"), a company that engages in the activities that may be
carried on by a trust company (including activities
of a fiduciary, agency, or custodian nature), in the
manner authorized by State law. Such activities
have been determined by the Board to be closely
related to banking (12 CFR § 225.4(a)(4)).
Notice of the application, affording opportunity
for interested persons to submit comments and
views on the public interest factors, has been duly
published (42 Federal Register 58202). 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, the fourth largest commercial banking
organization in Alabama, controls ten banks with
aggregate deposits of approximately $1.0 billion,
representing 10 per cent of the total deposits in
commercial banks in the State. 1 Applicant does not
currently engage in any nonbanking activities,
either directly or through subsidiaries.
Trust Company is presently an inactive organization. In November 1975, it opened for business as a
trust c o m p a n y a u t h o r i z e d u n d e r the State of

1

All banking data are as of December 31, 1976.

Law Department

California. However, by May 1976, Trust Company
had ceased to engage in any trust activities and has
not engaged in any such activities since that time.
Through the acquisition of Trust Company, Applicant proposes to engage in trust activities in the
greater Los Angeles area. 2 In particular, Applicant
proposes to provide trust services for employee
benefit plans holding $100 thousand to $2 million in
assets. Although three of Applicant's subsidiary
banks engage in trust activities in Alabama, it does
not appear that they derive any business from the
Los Angeles area or elsewhere in California. Since
Trust Company is inactive, the subject proposal is
viewed as essentially a proposal to engage in trust
activities de novo. Thus, it appears that consummation of the proposal would not have any significant
adverse effects on competition in any relevant area.
It is anticipated that Applicant's acquisition of
Trust Company would result in benefits to the
public by providing an additional source of trust
services in the Los Angeles area. Furthermore,
there is no evidence in the record to indicate that
consummation of the proposed transaction would
result in any undue concentration of resources,
unfair competition, conflicts of interests, unsound
banking practices, or other effects that would be
adverse to the public interest.
Based u p o n the f o r e g o i n g and other considerations reflected in the record, the Board has
determined that the balance of the public interest
factors the Board is required to consider under
§ 4(c)(8) is favorable. Accordingly, the application is
hereby approved. This determination is subject to
the conditions set forth in § 225.4(c) of Regulation Y
and to the Board's authority to require such modification or termination of the activities of a holding
company or any of its subsidiaries as the Board
finds necessary to assure compliance with the provisions and purposes of the Act and the Board's
regulations and orders issued thereunder or to
prevent evasion thereof.
The transaction shall be made not later than three
months after the effective date of this Order, unless
such period is extended for good cause by the
Board or by the Federal Reserve Bank of Atlanta.
By order of the Board of Governors, effective
December 16, 1977.
Voting for this action: Vice Chairman Gardner and
Governors Cold well, Partee, and Lilly. Absent and not

2
Applicant proposes to move Trust Company's office from
Newport Beach to Los Angeles, both in California.




43

voting: Chairman Burns and Governors Wallich and
Jackson.

(Signed) G R I F F I T H L. GARWOOD,
[SEAL]

Deputy

Secretary

of the

Board.

ORDERS U N D E R SECTION 4

First Amtenn Corporation,
Nashville, Tennessee
Order Approving
Acquisition of Lee} Robinson & Steine, Inc.
First Amtenn Corporation, Nashville, Tennessee, a bank holding company within the meaning of
the Bank Holding Company Act ( " A c t " ) , has
applied for the Board's approval, under § 4(c)(8) of
the Act (12 U.S.C. § 1843(c)(8)) and § 225.4(b)(2) of
the Board's Regulation Y (12 CFR § 225.4(b)(2)),
to acquire all of the shares of Lee, Robinson &
Steine, Inc., Nashville, Tennessee ( " L R & S " ) , a
company that engages in the activities of acting as
an investment adviser registered under the Investment Company Act of 1940. Such activities have
been determined by the Board to be closely related
to banking (12 CFR § 225.4(a)(5)).
Notice of the application, affording opportunity
for interested persons to submit comments and
views on the public interest factors, has been duly
published (42 Federal Register 52486). The time for
filing comments and views has expired, and the
Board has considered that application and all comments received, including those of J. R. Wauford &
C o m p a n y E m p l o y e e s Profit Sharing Plan,
Nashville, Tennessee ("Protestant"), in light of the
public interest factors set forth in section 4(c)(8) of
the Act.
Applicant, the third largest banking organization
in Tennessee, controls eight banks with aggregate
deposits of approximately $1.3 billion, representing
9.2 per cent of total deposits in commercial banks in
the State. 1 Applicant also controls several nonbanking companies whose activities include consumer
financing, a c c o u n t s r e c e i v a b l e and inventory
financing, and equipment leasing.
LS&R is an investment adviser, registered with
the Securities and Exchange Commission under the
Investment Company Act of 1940, providing investment adviser and investment management services on a discretionary basis. Its principal activities involve the management of investment
portfolios of securities for individuals, charitable

1

All banking data are as of June 30, 1977.

44

Federal Reserve Bulletin • January 1978

organizations, profit-sharing plans, and pension
plans. LR&S conducts such activities from its sole
office in Nashville, Tennessee. As of June 30, 1977,
LS&R had a total of approximately $101 million in
assets under management in 111 accounts; and
during 1976 it received net income of $113,000 for
its services. LS&R derives the vast majority of its
business from Davidson County, Tennessee, the
county in which the city of Nashville is located.
However, it also derives business from clients
located in other parts of Tennessee, as well as
Louisiana, Colorado, Florida, Georgia and New
York.
Applicant's lead bank, First American National
Bank of Nashville, Nashville, Tennessee
("Bank"), also provides investment adviser and
investment management services through its trust
department. Although Bank's trust department and
LR&S are both engaged in investment management
activities and both are located in Nashville, it does
not appear that Applicant's acquisition of LR&S
would result in the elimination of any significant
competition. First, the record indicates that Bank's
trust department serves a substantially different
clientele than LR&S. Under State law, an investment adviser cannot serve in a fiduciary capacity
with respect to assets under its management.
Moreover, LR&S's activities relate solely to the
management of investment portfolios of securities.
Bank, on the other hand, offers a wide range of
services including serving as a fiduciary, executor
and trustee, assisting in estate planning, and managing real estate and other assets. With respect to
services comparable to those offered by LR&S,
Bank provides such services for only about $19.4
million of the total $264.4 million in assets held in
trust.
Second, the relevant market for purposes of
analyzing the competitive effects of the subject
proposal is not limited solely to the Nashville area.
A large number of investment adviser firms, bank
trust departments, insurance companies and investment management departments of investment
banking firms compete for the opportunity to provide investment management services throughout
the country. Furthermore, in addition to the 21
other organizations providing investment management services that have offices in Nashville, the
record indicates that a significant number of organizations located in the South and other parts of the
country actively solicit accounts in Tennessee and
throughout the South. In fact, LR&S, itself, serves
customers located in Louisiana, Colorado, Florida,
Georgia and New York. These factors indicate that




the relevant market for investment adviser activities is probably more regional in scope at least
for certain types of services and accounts. Thus,
although some competition would be eliminated by
Applicant's acquisition of LR&S, the Board is of
the view that the number and size of the organizations competing in the area suggest that approval of
the proposal would not have significant adverse
effects on competition.
It is anticipated that affiliation with Applicant
would enable LR&S to improve the quality and
depth of its investment adviser services, which
would result in better services to the public. In
addition, the proposal should result in increased
competition by enhancing LR&S's capabilities
vis-a-vis the larger organizations with which it
competes. On the basis of these and other facts of
record, the Board concludes that the benefits to the
public that would result from consummation are
sufficient to outweigh any slightly adverse effects
on competition that may result from Applicant's
acquisition of LR&S. Furthermore, there is no
evidence in the record to indicate that consummation of the proposed transaction would result in any
undue concentration of resources, unfair competition, conflicts of interests, unsound banking practices, or other effects that would be adverse to the
public interest. 2
Based upon the foregoing and other considerations reflected in the record, the Board has
determined that the balance of the public interest
factors the Board is required to consider under
§ 4(c)(8) is favorable. Accordingly, the application is
hereby approved. This determination is subject to
the conditions set forth in § 225.4(c) of Regulation Y
and to the Board's authority to require such modification or termination of the activities of a holding
company or any of its subsidiaries as the Board
finds necessary to assure compliance with the provisions and purposes of the Act and the Board's
regulations and orders issued thereunder, or to
prevent evasion thereof.
The transaction shall be made not later than three
months after the effective date of this Order, unless
such period is extended for good cause by the
Board or by the Federal Reserve Bank of Atlanta.

2
In its analysis of the application, the Board has also considered the comments of Protestant, a shareholder of Applicant.
Protestant generally questions the competence of Applicant and
the fairness of the entire proposal to Applicant's shareholders. No
material has been submitted in support of the allegations made by
Protestant. Moreover, the Board finds that the facts of record
indicate that denial of the application based on such allegations
would not be appropriate.

Law Department

By order of the Board of Governors, effective
December 15, 1977.
Voting for this action: Vice Chairman Gardner and
Governors Jackson, Partee, and Lilly. Voting against this
action: Governor Coldwell. Absent and not voting: Chairman Burns and Governor Wallich.

(Signed) G R I F F I T H L . GARWOOD,
[SEAL]

Deputy

Secretary

of the

Board.

Illinois Neighborhood Development Corporation,
Chicago, Illinois
Order Approving
Acquisition of City Lands Corp.
and The Neighborhood Institute
Illinois Neighborhood Development Corporation, Chicago, Illinois, 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 U.S.C. § 1843(c)(8)) and
§ 225.4(b)(2) of the Board's Regulation Y (12 CFR
§225.4(b)(2)), to acquire City Lands Corp., Chicago,
Illinois ( " C L C " ) , and The Neighborhood Institute,
Chicago, Illinois ( " T N I " ) , and thereby engage de
novo in making equity and debt investments in
corporations or projects designed primarily to promote community welfare. Such activities have been
determined by the Board to be closely related to
banking (12 CFR § 225.4(a)(7)).
Notice of the application, affording opportunity
for interested persons to submit comments and
views on the public interest factors, has been duly
published (42 Federal Register 55851). 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 became a bank holding company in
1973 when it acquired The South Shore National
Bank of Chicago ( " B a n k " ) , the only commercial
bank in the South Shore community of Chicago.
Applicant has committed Bank to a program of
community renewal and a reversal of deposit outflow by involvement in community affairs. Since its
initiation of that program, Bank has reversed its
previous declining deposit and earnings trend, and
Applicant has established itself as a business-based
private sector organization committed to urban
redevelopment. Applicant's management has extensive experience in community development and
has secured deposits and support for Bank from
religious, charitable and corporate organizations.



45

Applicant proposes to form two de novo subsidiaries for which it would provide initial funding
through equity and debt investments. CLC would
engage in the activity of restoring abandoned and
substandard residential and commercial properties.
CLC would purchase, rehabilitate or reconstruct,
and resell such properties; participate with independent developers by using subordinated debt or
nonvoting equity investments to enable the developers to qualify for bank credit to purchase and
rehabilitate substandard property; or, participate as
an investor in joint ventures with existing community redevelopment corporations such as Rescorp
(the Chicago Area Renewal Effort Service Corporation). Applicant has indicated that any profits resulting from such projects would be reinvested in
similar programs to c o n t i n u e rehabilitating
properties in the community. The rehabilitated or
restored housing would be for low to moderate
income families and the rehabilitated or restored
commercial properties would be small stores located in deteriorating neighborhoods.
TNI would initiate a variety of programs designed to promote the community welfare. Applicant has indicated that such programs would include: the formation of an educational development
center to increase local educational opportunities
and educational counselling and training (including
admissions and financial aid information for area
college-bound students); the provision of employment and career counselling services (including
technical aid to community organizations in the
development of Comprehensive Employment and
Training Act grant proposals to place unemployed
individuals in public service jobs); the establishment of a cultural center to provide instruction in
and exposure to the arts; and the provision of
research and development services to aid the funding and operation of such projects, to develop
similar f u t u r e p r o j e c t s , and to aid other
community-oriented organizations. Applicant has
indicated that each program initiated by TNI would
be expected to be financially self-sufficient and
would be required to return the start-up funds
expended in its development.
By order of May 30, 1972,1 the Board issued an
interpretation of § 225.4(a)(7) of Regulation Y (12
CFR § 225.4(a)(7)). That interpretation (12 CFR
§ 225.127) stated in subparagraph (d) that the Board
intended to include as a permissible activity under
§ 225.4(a)(7) investment in: "(1) projects for the

1

58 Federal Reserve BULLETIN 572.

46

Federal Reserve Bulletin • January 1978

construction or rehabilitation of housing for the
benefit of persons of low- or moderate-income, (2)
projects for the construction or rehabilitation of
ancillary local commercial facilities necessary to
provide goods or services principally to persons
residing in low- or moderate-income housing and (3)
projects designed explicitly to create improved job
opportunities for low- or moderate-income groups
(for example, minority equity investments, on a
temporary basis, in small or medium-sized locallycontrolled businesses in low-income urban or other
economically depressed areas)." 2 The Board has
reviewed Applicant's proposals and the complete
record of the applications and concludes that the
activities in which the proposed de novo subsidiaries would engage are designed primarily to
promote the community welfare and therefore Applicant's equity and debt investments in these subsidiaries are regarded as within the scope of § 225.4
(a)(7) of the B o a r d ' s Regulation Y. Applicant
anticipates that the programs it proposes to implement through CLC and TNI will also encourage
other private developers to invest in the local area.
Furthermore, there is no evidence in the record
indicating that Applicant's acquisition of these de
novo subsidiaries and commencement of these activities would result in any undue concentration of
resources, unfair competition, conflicts of interests,
or unsound banking practices.
Based u p o n the f o r e g o i n g and o t h e r 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) of the Act 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 the Board's authority to require
such modification or termination of the activities of
a holding company or any of its subsidiaries as the
Board finds necessary to assure compliance with
the provisions and purposes of the Act and the
Board's regulations and orders issued thereunder,
or to prevent evasion thereof.
The transaction shall be made not later than three
months after the effective date of this Order, unless
such period is extended for good cause by the
Board or by the Federal Reserve Bank of Chicago.
By order of the Board of Governors, effective
December 19, 1977.

Governors Cold well, Jackson, Partee, and Lilly. Absent
and not voting: Chairman Burns and Governor Wallich.

(Signed) G R I F F I T H L. GARWOOD,
[SEAL]

Deputy

Secretary

of the

Board.

Orbanco, Inc.,
Portland, Oregon
Order Approving Retention
of Northwest Acceptance
Corporation
and Northwest Industrial Loan Company
Orbanco, Inc., Portland, Oregon, a bank holding
company within the meaning of the Bank Holding
Company Act, has applied for the Board's approval, under § 4(c)(8) of the Act and § 225.4(b)(2)
of the Board's Regulation Y, to retain all of the
outstanding voting shares of Northwest Acceptance
Corporation, Portland, Oregon ( " N A C " ) , a direct
subsidiary of Applicant, and all of the outstanding
voting shares of Northwest Industrial Loan Company, Portland, Oregon ( " N I L C " ) , a direct subsidiary of NAC and, indirectly of Applicant. NAC
engages in the activities of receivables financing,
equipment leasing, and acting as agent for the sale
of credit-related insurance. NILC engages in the
making of loans for business purposes. 1 Such activities have been determined by the Board to be
closely related to banking (12 CFR § 225.4(a)(1), (2)
6(a), and 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 (42 Fed. Reg. 54875 (1977)). The time for
filing comments and views has expired, and the
Board has considered all comments received in
light of the public interest factors set forth in
section 4(c)(8) of the Act (12 U.S.C. § 1843(c)(8)).
Applicant became a bank holding company as a
result of the 1970 Amendments to the Act by virtue
of its control of The Oregon Bank, Portland, Oregon ("Bank"). Applicant acquired all of the outstanding shares of NAC and, indirectly, all of the
outstanding shares of NILC in April, 1969. Pursuant to the provisions of § 4 of the Act, Applicant
has until December 31, 1980, to divest its shares of

Voting for this action: Vice Chairman Gardner and

2

12 CFR § 225.127(d).




1
NILC does not publicly raise lendable funds through the
receipt of deposits or the issuance of debt instruments to persons
other than Orbanco or its subsidiaries.

Law Department

NAC and NILC or, in the alternative, to apply to
the Board for approval to retain thern. 2
Applicant is the third largest banking organization in Oregon by virtue of its control of Bank.
Bank has deposits of approximately $391.2 million,
representing approximately 5.7 per cent of the total
deposits in commercial banks in the State. 3 In
addition to engaging, through NAC and NILC, in
receivables financing, equipment leasing, acting as
agent in the sale of credit-related insurance and
industrial lending, Applicant, through other nonbank subsidiaries, also engages in making and servicing real estate loans, leasing real estate to Applicant's affiliates, purchasing real estate loans from
Bank, and providing computer services for the
holding company system.
NAC conducts its activities from two offices in
Portland, Oregon, an office in Eugene, Oregon, an
office in Mercer Island, Washington, and seven
offices located in seven cities outside the northwestern U.S. The majority of NAC's business
originates in Oregon and Washington. NILC maintains its only operations office in Eugene, Oregon,
and serves as an industrial loan extension of NAC.
As of July 31, 1977, the consolidated assets of NAC
and NILC were $152.8 million. NILC held loans
amounting to approximately $500 thousand as of
year-end 1976.
The Board regards the standards under § 4(c)(8)
of the Act for retention of shares to be the same as
the standards for a proposed acquisition. In 1969,
the year of the acquisition, NAC (and NILC) con-'
ducted approximately two-thirds of their business
in Oregon where there did exist at the time some
direct competition between NAC and Bank in the
making of commercial loans. However, the geographic market in which such competitive effects
are to be judged is at least regional in scope and is
approximated by the northwestern region of the
country. The amounts of business generated in the
regional market by NAC, NILC, and Bank were
relatively small. In view of the relative domination
of Oregon financial markets by the two largest
Portland banks, whose deposits totalled $3.04 billion as of December 31, 1969, the relatively small
amount of deposits held by Bank as of that date ($99
million) and the even smaller amount of loans
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
Unless otherwise indicated, banking data are as of December
31, 1976.




47

outstanding at NAC at that time ($41 million), the
acquisition of NAC and NILC appears to have had
only a slightly adverse effect on competition in the
relevant market. Accordingly, based on these and
other facts of record, the Board concludes that
Applicant's acquisition of NAC and NILC did not
have any substantial adverse effect on either existing or potential competition in any relevant area.
Since the original acquisition, the structure of
Oregon financial markets has undergone little
change. The two largest banks hold more than
seventy per cent of deposits held by Oregon banks.
NAC and Bank, but for their affiliation, would be
direct competitors in two Oregon counties, where
Bank controls respectively only 2.9 and 5.5 per cent
of deposits. Although NAC's business has doubled
from 1969 to 1976, in these two counties, which
contain the cities of Eugene and Portland, the total
volume of business is still considered too small to
be regarded as reflecting a significant increase in
NAC's competitive position. In view of the relatively small market shares of Bank, NAC, and
NILC, the proposal by Applicant to retain NAC
and NILC would appear to have only a minimal
impact on competition in any relevant area.
Since its acquisition by Applicant in 1969, NAC
and NILC have approximately doubled their volume of business. NAC's continued affiliation with
Applicant is likely to result in further growth of
NAC and, indirectly, NILC, accompanied by increased efficiencies of operation and increased
competition in the areas served by NAC. On the
basis of these and other facts of record, the Board
concludes that the benefits to the public resulting
from Applicant's retention of NAC and NILC outweigh any adverse effects that have resulted from
the affiliation.
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. 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
December 23, 1977.

48

Federal Reserve Bulletin • January 1978

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

(Signed) G R I F F I T H L . GARWOOD,
[SEAL]

Deputy

Secretary

of the

Board.

Schroders Limited,
London, England
Order Approving
Retention of Schroder Naess & Thomas
Division of Schroders Incorporated and
Acquisition of Robert C. Gilkison, Inc.
Schroders Limited ("Limited"), and its whollyowned direct and indirect subsidiaries, Schroder
I n t e r n a t i o n a l Limited ( " I n t e r n a t i o n a l " ) and
Schroder International Holdings Limited ("Holdings"), respectively, all of London, England, as
well as its wholly-owned indirect subsidiary,
Schroders Incorporated, New York, New York
("Schroders"), each of which is a bank holding
company within the meaning of the Bank Holding
Company Act, have applied for the Board's approval under § 4(c)(8) of the Act (12 U . S . C .
§ 1843(c)(8)) and § 225.4(b)(2) of the Board's Regulation Y (12 CFR § 225.4(b)(2)), to retain the business
and assets of Schroder Naess & Thomas Division of
Schroders (formerly Naess & Thomas, a partnership), New York, New York ("Naess"), and to
acquire the business and certain assets of Robert C.
Gilkison, Inc., Washington, D.C. ("Gilkison"),
both of which are engaged in the activities of acting
as investment counselor and registered investment
adviser under the Investment Advisers Act of 1940.
Such activities have been determined by the Board
to be closely related to banking (12 C F R
§ 225.4(a)(5)).
Notice of the applications, affording opportunity
for interested persons to submit comments and
views on the public interest factors, has been given
in accordance with § 4 of the Act (42 Federal
Register 52487). The time for filing comments and
views has expired, and the Board has considered
the applications 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)).
Limited and Schroders are one-bank holding
companies, and each became a bank holding company as a result of the 1970 Amendments to the Act
by virtue of indirect control of Schroder Trust
Company, New York, New York ("Bank"). International and Holdings became bank holding companies pursuant to the Board's Order of November
29, 1973 approving their applications to become




bank holding companies through the indirect acquisition of Bank (38 Federal Register 33538). Schroders acquired the business and assets of Naess on
January 31, 1969. Pursuant to the provisions of § 4
of the Act, the Applicants have until December 31,
1980, to divest the business and assets of Naess, or,
in the alternative, to apply to the Board for approval to retain them. 1
Limited is a foreign bank holding company having as its principal subsidiary J. Henry Schroder
Wagg & Co. Limited, London, England, a merchant bank that is the thirty-second largest bank in
the United Kingdom. International and Holdings
are holding companies for Limited's interest located outside the United Kingdom, including
Schroders and its subsidiaries. Schroders, in turn,
holds all of Limited's United States business interests, including J. Henry Schroder Banking Corporation ( " S c h r o b a n k " ) , an investment company
chartered under Article XII of the New York Banking Law. 2 Schroders has consolidated assets of
$596.7 million, of which Schrobank accounts for
55.2 per cent. 3 Bank, a wholly-owned subsidiary of
Schrobank, has deposits of $120 million. 4 In addition to engaging in investment advisory activities
through Naess, Schroders engages through subsidiaries in corporate merger and acquisition services, real estate development, underwriting and
issuance of certain debt obligations, as well as
holding various other investments. 5
Naess conducts its investment advisory business
through its principal office in New York, and offices located in Bethesda, Maryland (suburban
Washington, D.C.), Baltimore and Atlanta. It derives most of its business from institutional clients

1
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 Board approval.
2
The Board has determined that New York Investment Companies organized under Title XII of the New York State Banking
Law are not banks within the meaning of the Act. (See Board's
Order of May 10, 1977, approving application of EuropeanAmerican Bancorp, to become a bank holding company and to
acquire European-American Banking Corporation (63 Federal
Reserve BULLETIN 595 (1977)).
3
Unless otherwise noted, all banking and financial data are as
of December 31, 1976.
4
Bank has filed application with the Federal Deposit Insurance
Corporation for approval to merge Schrobank pursuant to Section
18(c) of the Federal Deposit Insurance Act (12 U.S.C. 1828(c)).
5
With the exception of one de novo subsidiary established
under § 4(c)(8) of the Act, the Applicants claim the grandfather
proviso of § 4(a)(2) of the Act as authority to engage in many of its
nonbanking activities. The Board is presently considering the
extent to which the Applicants may retain these activities pursuant
to permanent grandfather privileges of § 4(a)(2) of the Act.

Law Department

located throughout the United States. On December 31, 1976, Naess had over $1 billion in assets
under management for over 600 clients and during
1976 it received total fee income of $3.3 million.
The Board regards the standards under § 4(c)(8)
of the Act for retention of shares to be the same as
the standards for a proposed acquisition. In 1968,
the last full year of operation prior to acquisition,
Naess received total fee income of $1.8 million. The
record indicates that there are a large number of
competing firms and bank trust departments providing investment advisory services, and that in 1968
Naess' business accounted for only a small amount
of assets under management in the United States.
Furthermore, while Bank provided investment advisory services in 1968, the nature and scope of
such services were limited by State law and by the
fact that Bank was not registered under the Investment Advisors Act of 1940. In light of the large
number of competing firms provided investment
advisory services, particularly in the New York
area, and the fact that Bank was not a registered
adviser, the Board concludes that Applicant's acquisition of Naess did not have significantly adverse effects on existing competition in any relevant area.
As a result of its acquisition by Applicant in 1969,
Naess gained access to information resources
available to Schroders through its international
affiliations, which has been utilized by Naess in
providing advisory services to clients. Furthermore, upon acquisition of Naess, Schroders assumed responsibility for Naess' administrative
functions, such as accounting, legal and personnel
services, enabling Naess to function more economically and efficiently in furnishing services to
its clients. Finally, with the financial support of
Schroders in 1973, Naess opened a new office in the
Atlanta market, thereby increasing the number of
competitors providing advisory services in that
market. It is likely that as a result of the continued
affiliation with Schroders, Naess will have the
flexibility to remain a strong competitor in the
product line and geographical areas in which it
competes.
On the basis of these and other facts of record,
the Board concludes that the benefits to the public
resulting from Schroders' acquisition of Naess
outweigh any adverse effects on competition that
resulted from the affiliation. Moreover, it is the
Board's view that approval of Schroders' retention
of Naess can reasonably be expected to continue to
produce benefits to the public that would outweigh
any possible adverse effects. Furthermore, there is




49

no evidence in the record indicating that consummation of the proposal has resulted in any undue
concentration of resources, unfair competition,
conflicts of interests, unsound banking practices or
other adverse effects on the public interest.
By separate applications, Limited, Holdings, International and Schroders have also applied to
acquire the business and certain assets of Gilkison,
a registered adviser providing investment advisory
services, primarily to small individual investors.
Gilkison conducts its investment advisory activities
from its principal office in Washington, D.C. and
maintains a conference room in suburban Virginia.
On December 31, 1976, Gilkison had assets under
management of $55 million for 138 accounts, and
during 1976 it received a total fee income of
$136,000 that was derived primarily from the
Baltimore-Washington area. As noted previously,
Naess also maintains offices in Baltimore and suburban Washington, and plans to close its Washington
office upon consummation of the proposed transaction. 6 The record indicates that during 1976
Naess received fee income of $160,000 from the
Baltimore-Washington area, representing approximately 4 per cent of Naess' total fee income.
However, the record indicates that a large number
of national and local firms, as well as bank trust
departments, provide investment advisory services
in the Baltimore-Washington area. Accordingly,
the Board concludes that acquisition of Gilkison
by Schroders would eliminate some existing competition between Gilkison and Naess. However, in
light of the large number of competitors providing
investment advisory services in the WashingtonBaltimore area, and the small amount of competition between the two firms, the Board does not
view these effects on competition as significant.
Acquisition by Schroders of Gilkison would enable Gilkison to expand the range of services available to its customers. In addition, the proposed
affiliation would provide Gilkison and its clients
with access to Schroders' extensive research
facilities, whereas Gilkison presently relies on outside sources for information. Finally, affiliation of
the two firms would make available to Schroders'
institutional clients certain expertise in the area of
tax-exempt securities possessed by Gilkison's principal. On the basis of these and other facts of
record, the Board concludes that the benefits to the
public that would result from Schroders' acquisi6
Bank, which also provides investment advisory services,
operates only in New York and does not compete in the Baltimore
or Washington markets.

50

Federal Reserve Bulletin • January 1978

tion of Gilkison are sufficient to outweigh any
adverse effects on competition that may result from
the acquisition. Furthermore, there is no evidence
in the record to indicate that consummation of the
proposed transaction would result in undue concentration of resources, unfair competition, conflicts of
interests, unsound banking practices, or other effects that would be adverse to the public interest.
Based u p o n the f o r e g o i n g and other considerations reflected in the record, the Board has
determined with regard to both applications before
it that in each case the balance of public interest
factors the Board is required to consider under the
provisions of § 4(c)(8) of the Act is favorable, and
that the applications should be approved. Accordingly, the applications are approved for the reasons
summarized above. The acquisition of Gilkison
shall be accomplished no later than three months
after the effective date of this Order unless such
period is extended for good cause by the Board.
The approval of these applications is subject to the
conditions set forth in § 225.4(c) of Regulation Y
and to the Board's authority to require reports by,
and make examinations of, holding companies and
their subsidiaries and to require such modification
or termination of the activities of a bank holding
company or any of its subsidiaries as the Board
finds necessary to assure compliance with the provisions and purposes of the Act and the Board's
regulations and orders issued thereunder, or to
prevent evasion thereof.
By order of the Board of Governors, effective
December 12, 1977.
Voting for this action: Chairman Burns and Governors
Gardner, Cold well, Jackson, Partee, and Lilly. Absent
and not voting: Governor Wallich.

(Signed) GRIFFITH L . GARWOOD,
[SEAL]

Deputy

Secretary

of the

Board.

ORDERS U N D E R SECTION 2
OF BANK H O L D I N G COMPANY A C T

The Marine Corporation,
Milwaukee, Wisconsin
[Docket No. 2(g)(3)-020]
Marine National Exchange Bank of Milwaukee,
Milwaukee, Wisconsin ("Marine Bank") has requested a determination pursuant to the provisions
of section 2(g)(3) of the Bank Holding Company Act
of 1956, as a m e n d e d (the " A c t " ) (12 U . S . C .
§ 1841(g)(3)) that Marine Bank is not in fact capable
of controlling each of the individuals listed on




Schedule A hereto to whom Marine Bank sold
shares of American Hampton Bank, Milwaukee,
Wisconsin ("American"), notwithstanding the indebtedness of each such individual to Marine Bank
incurred in connection with transactions unrelated
to the sale of shares of American. Marine Bank's
parent, The Marine Corporation, Milwaukee, Wisconsin ("Marine"), is a bank holding company
within the meaning of section 2(a) of the Act (12
U.S.C. § 1841(a)) by virtue of its ownership of over
25 per cent of the outstanding voting shares of
Marine Bank, and pursuant to section 2(g)(1) of the
Act (18 U.S.C. 1841(g)(1)) shares controlled by
Marine Bank are deemed to be indirectly controlled
by Marine.
Under the provisions of section 2(g)(3) of the Act
(12 U.S.C. § 1841(g)(3)), shares transferred after
January 1, 1966, by any bank holding company to a
transferee that is indebted to the transferor or has
one or more officers, directors, trustees, or beneficiaries in common with or subject to control by
the transferor, are deemed to be indirectly owned
or controlled by the transferor unless the Board,
after opportunity for hearing, determines that the
transferor is not in fact capable of controlling the
transferee.
Notice of an opportunity for hearing with respect
to Marine Bank's request for a determination under
section 2(g)(3) was published in the Federal Register on August 17, 1977 (42 Fed. Reg. 41476), and the
time provided for requesting a hearing has expired.
No such request has been received by the Board,
nor has any evidence been received to show that
Marine or Marine Bank is in fact capable of controlling or exerting a controlling influence, directly or
indirectly, over the individuals listed on Schedule A
or over American.
It is hereby determined that Marine and Marine
Bank are not in fact capable of controlling any of
the individuals listed on Schedule A, the shares of
American held by them or American. This determination is based upon the evidence of record in this
matter, including the following facts.
On December 11, 1975, Marine Bank, jointly and
severally with Aid Association for Lutherans ("Lutherans"), acquired 95 per cent of the outstanding
voting shares of American in satisfaction of a debt
previously contracted. Pursuant to § 3(a)(A)(ii) of
the Act (12 U.S.C. 1842(a)(A)(ii), Marine and Lutherans were not required to obtain the prior approval of the Board to acquire the shares but would
have had to obtain such approval to retain the
shares of American if such shares had not been
disposed of within two years. Accordingly, on

Law Department

September 14, 1977, Marine Bank and Lutherans
sold the shares of American to twelve individuals in
a transaction that appears to have been the result of
arms-length negotiations. Since eleven of the
twelve individuals were indebted to Marine Bank,
pursuant to the presumption contained in section
2(g)(3) of the Act, Marine Bank is deemed to
control the shares of American held by the individual purchasers who are indebted to Marine
Bank. None of the individual purchasers of the
shares is a director, officer or employee of Marine
Bank or any of its subsidiaries or affiliates. Neither
Marine Bank nor any of its subsidiaries and affiliates has any director or officer in common with
American or its subsidiaries and affiliates. Furthermore, there are no existing or contemplated
agreements or understandings between Marine
Bank and American regarding the conduct of
A m e r i c a n ' s b u s i n e s s or its m a n a g e m e n t and
policies. While eleven of the twelve individual
purchasers are indebted to Marine Bank in connection with transactions incurred in the ordinary
course of business, the personal financial resources
of each are substantial and would appear to support
the conclusion that Marine Bank is not capable of
controlling any of those individuals so indebted or
American. Finally, the board of directors of Marine
Bank has submitted a resolution disclaiming its
capability of control over the individual purchasers
and American, and affidavits were submitted by
each individual stating that Marine Bank is not in
fact capable of controlling him or American.
Accordingly, it is ordered, that the request of
Marine Bank for a determination pursuant to section 2(g)(3) be and hereby is granted. This determination is based upon the representations made to
the Board by Marine Bank and the individuals listed
on Schedule A. In the event the Board should
hereafter determine that facts material to this determination are otherwise than as represented, or
that Marine Bank or the individuals listed on
Schedule A failed to disclose to the Board other
material facts, this determination may be revoked,
and any change in the facts or circumstances relied
upon by the Board in making this determination
could result in the Board reconsidering the determination made herein.
By order of the Board of Governors, acting
through its General Counsel, pursuant to delegated
authority (12 CFR § 265.2(b)(1)), effective December 5, 1977.




(Signed)

THEODORE E . ALLISON,

Secretary of the Board.

51

Tracy Bancorp,
Salt Lake City, Utah
[Docket No. 2(g)(3)-033]
Tracy Bancorp, Salt Lake City, Utah ("Tracy")
a bank holding company within the meaning of
section 2(a) of the Bank Holding Company Act of
1956, as amended (12 U.S.C. § 1841(a)), ("Act"),
which has transferred all of its stockholdings in
Tracy-Osborne-Dickson & Associates, Inc., Salt
Lake City, Utah ( " T O D A " ) , to Affiliated Insurance
Agency, formerly " D i c k s o n - A c k e r l i n d & Associates", Salt Lake City, Utah ( " D A A " ) , has
requested a determination by the Board, pursuant
to section 2(g)(3) of the Act (12 U.S.C. § 1841(g)(3))
that Tracy is not in fact capable of controlling DAA
notwithstanding the fact that DAA is indebted to
Tracy Collins Bank & Trust Company, Salt Lake
City, Utah ( " B a n k " ) , a subsidiary of Tracy, which
indebtedness resulted from DAA's purchase of the
shares of TODA and is secured by 100 per cent of
the shares of TODA. Tracy has also requested a
determination by the Board pursuant to section
2(g)(3) of the Act that it is not in fact capable of
controlling Tracy Realty Company, Salt Lake City,
Utah ("Realty"), or the individuals to whom it
transferred the shares of Realty, notwithstanding
the fact that three officers and directors of Tracy
are transferees of more than 5 per cent of the shares
of Realty.
Under the provisions of section 2(g)(3) of the Act,
shares transferred after January 1, 1966 by any
bank holding company to a transferee that is indebted to the transferor or has one or more officers,
directors, trustees or beneficiaries in common with
or subject to control by the transferor, are deemed
to be indirectly owned or controlled by the transferor unless the Board, after opportunity for hearing, determines that the transferor is not in fact
capable of controlling the transferee. 1
Notice of an opportunity for hearing with respect
to Tracy's request for a determination under section 2(g)(3) in relation to the sale of TODA was
published in Xht Federal Register on September 30,
1977 (42 Fed. Reg. 63466 (1977)), and the time
provided for requesting a hearing has expired. 2 No
such request has been received by the Board, nor
1
For purposes of § 2(g)(3) of the Act, an individual to whom
shares are transferred by a bank holding company and who is an
officer or director of the bank holding company is deemed to be a
transferee having an officer or director "in common with or
subject to control by" the transferor.
2
Such notice did not include reference to Tracy's divestiture of
Realty.

52

Federal Reserve Bulletin • January 1978

has any evidence been received to show that Tracy
is in fact capable of controlling TOD A, DAA or
Realty.
It is hereby determined that Tracy is not in fact
capable of controlling or exerting a controlling
influence, directly or indirectly, over TODA or
DAA. This determination is based upon the evidence of record in this matter including the following facts. DAA is a closely held corporation, and
none of its shareholders is related to Tracy, other
than by virtue of their previous employment by
TODA while it was a subsidiary of Tracy. There are
no existing interlocking director, officer, or employee relationships between Tracy and TODA or
Tracy and DAA. DAA's principals are personal
guarantors of DAA's indebtedness to Bank and
appear to have substantial personal financial resources.
It appears that the sale of TODA was negotiated
at arm's length and that it is not unreasonable to
conclude that DAA will be able to service its
indebtedness to Bank. The board of directors of
Tracy has submitted a resolution to the effect that
Tracy does not, and will not attempt to, control or
exercise a controlling influence over TODA or
DAA.
The indebtedness of DAA to Bank is secured by
100 per cent of the shares of TODA. In this regard,
Tracy has committed that, in the event of default by
DAA and reacquisition of the shares by Bank,
Tracy will promptly notify the Board and Bank will
take Appropriate steps to dispose of the shares
within six months of regaining control over said
shares.
It is also hereby determined that Tracy is not in
fact capable of controlling or exercising a controlling influence, directly or indirectly, over Realty or
the transferees of Realty. This determination is
based upon the evidence of record in this matter
including the following facts. Three individuals,
with their spouses, own all of the outstanding
voting shares of Tracy and serve as Tracy's board
of directors and only officers. On December 31,
1976, Tracy made a pro rata distribution of all of its
500 shares, representing 100 per cent of the outstanding shares of Realty and the shareholders of
Tracy. Tracy holds no interest in Realty. Moreover,
there are no interlocking director, officer or employee relationships between Tracy, including
Bank, and Realty. The divestiture does not appear
to be a means for perpetuating Tracy's control over
Realty. On the basis of the above and other facts of
record, the Board concludes that Tracy does not
control and is not in fact capable of controlling its




directors in their capacities as transferees of the
stock of Realty.
Accordingly it is ordered, that the request of
Tracy for determinations pursuant to § 2(g)(3) be
and hereby are granted. Any material change in the
facts or circumstances relied upon in making these
determinations or any material breach of any of the
commitments upon which the decision is based
could result in reconsideration of the determinations made herein.
By order of the Board of Governors, acting
through its General Counsel, pursuant to delegated
authority (12 CFR § 265.2(b)(1)), effective December 30, 1977.
(Signed) T H E O D O R E E . A L L I S O N ,
[SEAL]

Secretary

ORDER UNDER BANK MERGER

of the

Board.

ACT

The Hillsboro Bank and Savings Co.,
Hillsboro, Ohio
Order Approving Application for Merger of Banks
The Hillsboro Bank and Savings Co., Hillsboro,
Ohio ( " H i l l s b o r o B a n k " ) has applied for the
Board's approval pursuant to the Bank Merger Act
(12 U.S.C. § 1828(c)), to acquire the assets and
assume the liabilities of The Farmers Exchange
Bank, Lynchburg, Ohio ("Lynchburg Bank"). Incident to the proposed acquisition the existing
office of Lynchburg Bank would become a branch
office of the resulting bank.
As required by the Bank Merger Act, notice of
the proposed transactions was published in a form
approved by the Board, and reports on competitive
effects from the U.S. Attorney General, the Comptroller of the Currency, and the Federal Deposit
Insurance Corporation were requested, and reports
were submitted by the U.S. Attorney General and
the Federal Deposit Insurance Corporation. A
comment was also received from the Banking Department of the State of Ohio. 1 The Board has
1
The U.S. Attorney General expressed the view that consummation of the proposed transaction would not have a substantial
competitive impact. The Federal Deposit Insurance Corporation
expressed the view that the merger would have an adverse
competitive impact. The Banking Department of the State of Ohio
has given informal approval for the proposed acquisition.

Law Department

considered the application and all comments and
reports received in the light of the factors set forth
in the Bank Merger Act.
Hillsboro Bank holds deposits of $32.3 million
and is the largest of four banks in the Hillsboro
banking market, 2 with three of its four branches
operating in that market. 3 Lynchburg Bank holds
deposits of $11.7 million and is the fourth largest
bank in the Hillsboro market. Hillsboro Bank holds
approximately 31 per cent of total deposits in
commercial banks in the market, and upon consummation of the proposal would hold approximately 44 per cent of market deposits. While the
market would have fewer independent competitors,
it does not appear that a significant amount of
competition would be eliminated. Analysis of the
market area served by Hillsboro Bank, based on
commercial and commuting patterns, and a survey
of accounts held at Hillsboro Bank and Lynchburg
Bank, indicates that Hillsboro Bank's services are
oriented toward the eastern and southern portions
of Highland County, whereas Lynchburg Bank
primarily serves northwestern Highland County.
Lynchburg Bank derives only 6.9 per cent of its
total deposits and 6.7 per cent of its total loans from
the service area of Hillsboro Bank. Furthermore,
Hillsboro Bank derives only 1.3 per cent of its total
deposits and 2.6 per cent of its total loans from the
service area of Lynchburg Bank. Two of Hillsboro
Bank's offices, located in the northeastern part of
Highland County, derive no business at all from
Lynchburg Bank's service area.
It appears that banks have found it difficult to
obtain business from the Lynchburg area. Lynchburg Bank's president has attracted strong loyalty from the Lynchburg community, and his long
standing personal relationship with members of that
community appear to account for the fact that
competitors have been unable to attract a significant amount of business from Lynchburg. Consummation of the proposed transaction should reduce the significance of personal relationships in
determining the competitive situation in Lynchburg, and it is anticipated that consummation of
the proposed transaction should encourage other
banks to renew efforts to attract more business
from Lynchburg in the future. For this reason the
proposed transaction should actually stimulate

2
Unless otherwise noted, all banking data are as of March 31,
1977. Market data are as of June 30, 1976.
3
The Hillsboro banking market is comprised of all of Highland
County with the exception of Madison Township, which is in the
northeastern portion of the County.




53

more effective competition in the Lynchburg area.
For the reasons discussed above the Board concludes that consummation of the proposed transaction would not have any substantial adverse effects
on competition.
The Board finds the financial and managerial
resources and future prospects of Hillsboro Bank to
be satisfactory and those of Lynchburg Bank to be
generally satisfactory. The financial and managerial
resources and future prospects of the resulting
institution would also be satisfactory, and considerations relating to financial and managerial resources are regarded as consistent with approval of
the application.
Consummation of the p r o p o s e d transaction
should lead to the introduction of new and improved services for customers in the Lynchburg
area. Lynchburg Bank, as a branch of Hillsboro
Bank, would be enabled to increase its lending limit
to individual customers. Hillsboro Bank has indicated that it plans to expand commercial and consumer loan activity at the Lynchburg branch. In
addition, the Lynchburg office would institute the
payment of maximum rates of interest allowable by
law on time deposits, the payment of compound
interest, and the payment of interest monthly on
request. Accordingly, and in light of the convenience and needs factors discussed above, the Board
regards considerations relating to the convenience
and needs of the community to be served as lending
some weight toward approval of the application
and, in the Board's view, are sufficient to outweigh
any slight adverse competitive effects that might
result from consummation of the proposal. It is the
Board's judgment that the application should be
approved.
On the basis and the reasons summarized above,
the application to acquire assets and a s s u m e
liabilities and, incident thereto, to establish a
branch, is approved. The transactions shall not be
made (a) before the thirtieth calendar day following
the date of this Order or (b) later than three months
after the date of this Order, unless such period is
extended for good cause by the Board, or by the
Federal Reserve Bank of Cleveland pursuant to
delegated authority.
By order of the Board of Governors, effective
December 21, 1977.
Voting for this action: Chairman Burns and Governors
Gardner, Wallich, Jackson, Partee, and Lilly. Absent and
not voting: Governor Cold well.

(Signed) G R I F F I T H L. GARWOOD,
[SEAL]

Deputy

Secretary

of the

Board.

54

Federal Reserve Bulletin • January 1978

PRIOR CERTIFICATIONS P U R S U A N T TO THE
BANK H O L D I N G COMPANY TAX A C T OF 1976.

Time Holdings, Inc.,
Milwaukee, Wisconsin
[Docket No. TCR 76-149]
Time Holdings, Inc., Milwaukee, Wisconsin
("Time") has requested a prior certification pursuant to § 1101(b) of the Internal Revenue Code
(the "Code"), as amended by § 2(a) of the Bank
Holding Company Tax Act of 1976, that its proposed divestiture of 362,900 shares of Bank of
Commerce, Milwaukee, Wisconsin ("Bank"), presently held by Time, through the pro rata distribution of such shares to the shareholders of Time is
necessary or appropriate to effectuate the policies
of the Bank Holding Company Act (12 U.S.C. § 1841
et seq.) ( " B H C Act").
In connection with this request, the following
information is deemed relevant, for purposes of
issuing the requested certification: 1
1. Time is a corporation organized under the
laws of Nevada on April 24, 1969.
2. On June 26, 1969, Time acquired ownership
and control of 68,644 shares, representing 91.525
per cent of the outstanding voting shares, of Bank.
Time acquired additional shares of Bank thereafter,
and on July 7, 1970, owned and controlled 71,645
shares representing 95.53 per cent of Bank's outstanding voting shares. Between that date and June
23, 1977, Time acquired an additional 935 shares of
Bank. On June 23, 1977, five shares of Bank were
issued to Bank's shareholders for every one share
of stock then held by them. Thus, Time now holds
362,900 of shares, representing 96.773 per cent of
the outstanding voting shares of Bank. 2

1
This information derives from Time's correspondence with the
Board concerning its request for this certification, Time's Registration Statement filed with the Board pursuant to the BHC Act,
and other records of the Board.
2
Under subsection (c) of § 1101 of the Code, property acquired
after July 7, 1970 generally does not qualify for the tax benefits of
§ 1101(b) when distributed by an otherwise qualified bank holding
company. However, where such property was acquired by a
qualified bank holding company in a transaction in which gain was
not recognized under § 305(a) of the Code, then § 1101(b) is
applicable. Time has indicated that the shares of Bank acquired on
June 23, 1977, were acquired in a transaction in which gain was
not recognized under section 305(a) of the Code. Accordingly,
even though such shares were acquired after July 7, 1970, those
shares would nevertheless qualify as property eligible for the tax
benefits provided in section 1101(b) of the Act, by virtue of section
1101(c), if the shares of Bank were in fact received in a transaction
in which gain was not recognized under section 305(a) of the Act.
Of the total 362,900 shares of Bank presently held by Time,
4,675 shares represent property acquired after July 7, 1970, for
which none of the exceptions provided in section 1101(c) of the
Code appears to be available.




3. Time became a bank holding company on
December 31, 1970, as a result of the 1970 Amendments to the BHC Act, by virtue of its ownership
and control at that time of more than 25 per cent of
the outstanding voting shares of Bank, and it registered as such with the Board on September 22,
1971. Time would have been a bank holding company on July 7, 1970, if the BHC Act Amendments
of 1970 had been in effect on that date by virtue of
its ownership and control on that date of more than
25 per cent of the outstanding voting shares of Bank.
4. Time holds property acquired by it on or
before July 7, 1970, the disposition of which would
be necessary or appropriate to effectuate section 4
of the BHC Act if Time were to continue to be a
bank holding company beyond December 31, 1980,
and which property is "prohibited property" within
the meaning of section 1103(c) of the Code.
5. Time has committed to the Board that it will
terminate all interlocking relationships between
Time and Bank by May 1, 1978.
On the basis of the foregoing information, it is
hereby certified that:
(A) Time is a qualified bank holding corporation,
within the meaning of subsection (b) of section 1103
of the Code, and satisfies the requirements of that
subsection;
(B) the 362,900 shares of Bank covered by the
subject request that Time proposes to distribute to
its shareholders are all or part of the property by
reason of which Time controls (within the meaning
of section 2(a) of the BHC Act) a bank or bank
holding company; 3 and
(C) the distribution of such shares is necessary
or appropriate to effectuate the policies of the BHC
Act.
This certification is based upon the representations made to the Board by Time and upon the facts
set forth above. In the event the Board should
determine that facts material to this certification are
otherwise than as represented by Time or that Time
has failed to disclose to the Board other material
facts, it may revoke this certification. This certification is granted on the condition that after May 1,
1978, no person holding an office or position (including an advisory or honorary position) with
Time or any of its subsidiaries as a director, policy
making employee or consultant, or who performs
(directly, or through an agent, representative or

3
As noted above, 4,675 of the shares of Bank to be distributed
by time were acquired by it after July 7, 1970, and do not appear to
qualify for any of the exceptions to the provision of § 1101(c) of the
Code that makes § 1101(b) inapplicable to the distribution of
shares acquired after that date.

Law Department

nominee) functions comparable to those normally
associated with such office or position, will hold
any such office or position or perform any such
function with Bank or any of its subsidiaries.
By order of the Board of Governors, acting
through its General Counsel, pursuant to delegated
authority, (12 CFR 265.2(b)(3)), effective December
21, 1977.
(Signed) G R I F F I T H L . G A R W O O D ,
[SEAL]

Deputy

Secretary

of the

Board.

Tracy Bancorp,
Salt Lake City, Utah
[Docket No. TCR 76-127]
Tracy Bancorp, Salt Lake City, Utah ("Tracy"),
has requested a prior certification pursuant to section 1101(a)(1) of the Internal R e v e n u e Code
("Code"), as amended by section 2(a) of the Bank
Holding Company Tax Act of 1976 ("Tax Act"),
that its divestiture on December 31, 1976, of 500
shares of Tracy Realty Company ( " R e a l t y " ) ,
through the pro rata distribution of such shares to
the holders of the common stock of Tracy, was
necessary or appropriate to effectuate section 4 of
the Bank Holding Company Act (12 U.S.C. § 1841
et seq.) ( " B H C Act"). 1 Tracy has also requested a
final certification pursuant to section 1101(e)(1) of
the Code that it has (before the expiration of the
period prohibited property is permitted under the
BHC Act to be held by a bank holding company)
disposed of all of the property the disposition of
which is necessary or appropriate to effectuate
section 4 of the BHC Act.
In connection with this request, the following
information is deemed relevant for purposes of
issuing the requested certification. 2
1. Tracy is a corporation, organized under the
laws of the State of Utah on November 17, 1969.

1
Pursuant to section 2(d)(2) of the Tax Act, in the case of any
distribution that takes place on or before December 31, 1976 (the
90th day after the date of the enactment of the Tax Act), the certification described in section 1101(a)(1)(B) shall be treated as made
before the distribution if application for such certification was made
before the close of December 31, 1976. Tracy's request for such
certification was undated. It appears to have been mailed on
January 6, 1977, and was received by the Board on January 10,
1977. The issuance of this prior certification is not intended as a
determination by the Board that Tracy is entitled to the benefits
provided by the Tax Act, and no opinion is expressed by the
Board as to the legal effect for purposes of the Tax Act of the
apparent untimeliness of the application.
2
This information derives from Tracy's correspondence with
the Board concerning its request for certification, Registration
Statement filed with the Board pursuant to the BHC Act, and
other records of the Board.




55

2. On D e c e m b e r 20, 1969, Tracy acquired
ownership and control of 288 shares, representing
100 per cent of the total outstanding voting shares,
of Tracy Collins Bank and Trust Company, Salt
Lake City, Utah ("Bank").
3. Tracy became a bank holding company on
December 31, 1970, as a result of the enactment of
the 1970 Amendments to the BHC Act, by virtue of
its ownership and control at that time of more than
25 per cent of the outstanding voting shares of
Bank, and it registered as such with the Board on
July 12, 1971. Tracy would have been a bank
holding company on July 7, 1970, if the BHC Act
Amendments of 1970 had been in effect on such
date, by virtue of its ownership and control on that
date of more than 25 per cent of the outstanding
voting shares of Bank. On December 31, 1976,
Tracy owned 288 shares, representing 100 per cent
of the outstanding voting shares, of Bank.
4. On December 31, 1976, Tracy held property
acquired by it on or before July 7, 1970, the
disposition of which would be necessary or appropriate to effectuate section 4 of the BHC Act if
Tracy were to continue to be a bank holding company beyond December 31, 1980, which property is
prohibited property within the meaning of section
1103(c) of the Code.
5. On December 20, 1969, Tracy acquired indirect ownership and control, through Bank, of 500
shares, representing 100 per cent of outstanding
shares, of Realty, a company engaged in the business of selling and leasing residential and commercial real property.
6. On December 31, 1976, Bank distributed all of
the 500 shares of Realty then held by Bank to
Tracy. On the same date Tracy made a pro rata
distribution of such shares to the common shareholders of Tracy.
7. Tracy does not hold any interest (including a
debtor-creditor relationship) in Realty or any transferee of the shares of Realty.
8. Realty does not hold any interest in Tracy or
any subsidiary of Tracy.
9. No officer, director (including honorary or
advisory director) or employee with policy making
functions of Tracy or its subsidiary holds any such
position with Realty.
10. Under section 4(a)(2) of the BHC Act, Tracy
is required to divest Tracy-Osborne-Dickson &
Associates, Salt Lake City, Utah ("TODA"), by
December 31, 1980, if Tracy were to continue to be
a bank holding company after that date. On December 31, 1976, Tracy sold all of its 50,000 shares,
representing 100 per cent of the outstanding shares,

56

Federal Reserve Bulletin • January 1978

of TODA to Dickson-Ackerlind & Associates, Salt
Lake City, Utah ( " D A A " ) . 3
11. Tracy does not hold any other property that
must be divested by December 31, 1980.
12. Tracy has represented that it does not control
or exercise a controlling influence over the management or policies of Realty or TODA and that it
will not hereafter, alone or acting through one or
more other persons, directly or indirectly acquire,
retain, exercise or attempt to exercise control or
any controlling influence over the management or
policies of Realty or TODA.
On the basis of the foregoing information, it is
hereby certified that:
(A) on December 31, 1976, Tracy was a qualified
bank holding corporation, within the meaning of
subsection (b) of section 1103 of the Code, and
satisfied the requirements of that subsection;
3
Effective December 30, 1977, the Board issued a determination pursuant to section 2(g)(3) of the BHC Act that (1) Tracy is
not in fact capable of controlling TODA, notwithstanding the fact
that the purchase by DAA of all of the outstanding voting shares of
TODA was financed in part by a loan from Bank; and (2) Tracy is
not in fact capable of controlling Realty notwithstanding the fact
that the directors of Tracy to whom the shares of Realty were
transferred are deemed to be a transferee having an officer or
director in common with or subject to control by Tracy.

(B) the shares of Realty distributed by Tracy
were prohibited property within the meaning of
section 1103(c) of the Code;
(C) the distribution of the shares of Realty was
necessary or appropriate to effectuate section 4 of
the BHC Act; and
(D) Tracy has (before the expiration of the
period prohibited property is permitted under the
BHC Act to be held by a bank holding company)
disposed of all of the property the disposition of
which is necessary or appropriate to effectuate
section 4 of the BHC Act.
This certification is based upon the representations made to the Board by Tracy and upon the
facts set forth above. In the event the Board should
hereafter determine that facts material to this certification are otherwise than represented by Tracy,
or that Tracy 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 CFR 265.2(b)(3)), effective December
30, 1977.
(Signed) T H E O D O R E E . A L L I S O N ,
[SEAL]

ORDERS APPROVED UNDER BANK HOLDING

COMPANY

Secretary

of the

Board.

ACT

BY THE BOARD OF GOVERNORS

During December 1977, the Board of Governors approved the applications listed below. Copies are
available upon request to Publication Services, Division of Administrative Services, Board of Governors of
the Federal Reserve System, Washington, D.C. 20551.

Section 3

Applicant
Citizens State Banco,
Lincoln, Nebraska
First National Corporation,
Appleton, Wisconsin
Junction City First
National Company,
Junction City, Kansas



Bank(s)
Citizens State Bank, Lincoln,
Nebraska
The First State Bank of
Campbellsport, Campbellsport,
Wisconsin
The First National Bank of
Junction City, Junction
City, Kansas

Board action
(effective
date)
12/12/77
12/7/77

12/28/77

Law Department

57

PENDING CASES INVOLVING THE BOARD OF GOVERNORS*
Vickars-Henry Corp. v. Board of Governors,
filed December 1977, U.S.C.A. for the Ninth
Circuit.
Emch v. The United States of America, et. al.,
filed November 1977, U.S.D.C. for the Eastern District of Wisconsin.
Consumers Union of the United States, Inc. v.
Board of Governors,
filed October 1977,
U.S.D.C. for the District of Columbia.
Cor bin v. Federal Reserve Bank of New York,
Board of Governors, et. al., filed October
1977, U.S.D.C. for the Southern District of
New York.
Central Bank v. Board of Governors, filed October 1977, U.S.C.A. for the District of Columbia.
Investment Company Institute v. Board of Governors, filed September 1977, U.S.C.A. for
the District of Columbia.
Plaza Bank of West Port v. Board of Governors,
filed September 1977, U.S.C.A. for the Eighth
Circuit.
First State Bank of Abilene, Texas v. Board of
Governors, filed August 1977, U.S.C.A. 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.
First Security Corporation v. Board of Governors, filed March 1977, U.S.C.A. for the
Tenth Circuit.
Farmers State Bank of Crosby v. Board of
Governors, filed January 1977, U.S.C.A. for
the Eighth Circuit.
National Automobile Dealers Association, Inc.
v. Board of Governors, filed November 1976,
U.S.C.A. for the District of Columbia.
First Security Corporation v. Board of Governors, filed August 1976, U.S.C.A. for the
Tenth Circuit.
Central Wisconsin Bankshares, Inc. v. Board of




Governors, filed June 1976, U.S.C.A. for the
Seventh Circuit.
National Urban League, et. al. v. Office of the
Comptroller of the Currency, et. al., filed
April 1976, U.S.D.C. for the District of Columbia Circuit.
Association of Bank Travel Bureaus, Inc. v.
Board of Governors, filed February 1976,
U.S.C.A. for the Seventh Circuit.
Memphis Trust Company v. Board of Governors, filed February 1976, U.S.D.C. for the
Western District of Tennessee.
First Lincoln wood Corporation v. Board of
Governors, filed February 1976, U.S.C.A. for
the Seventh Circuit.
Roberts Farms, Inc. v. Comptroller of the Currency, et. al., filed November 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,
t 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.
Louis J. Roussel v. Board of Governors, filed
April 1975, U.S.D.C. for the Eastern District
of Louisiana.
Georgia Association of Insurance Agents, et. al.
v. Board of Governors, filed October 1974,
U.S.C.A. for the Fifth Circuit.
Alabama Association of Insurance Agents, et.
al. v. Board of Governors, filed July 1974,
U.S.C.A. for the Fifth Circuit.
Bankers Trust New York Corporation v. Board
of Governors, filed May 1973, U.S.C.A. for
the Second Circuit.

* This listing of pending cases does not include suits against the
Federal Reserve Banks in which the Board of Governors is not
named a party.
$ The Board of Governors is not named as a party in this action.

59

Announcements
DR. ARTHUR F. BURNS:
Resignation as a Member
of the Board of Governors
The White House on January 13 announced the
resignation of Arthur F. Burns as a member of the
Board of Governors, effective March 31 or at any
earlier time convenient to the President. President
Carter accepted the resignation with "sincere regret and a deep sense of personal loss."
Dr. Burns became a member of the Board of
Governors, and its Chairman, on February 1, 1970.
He was reappointed to a 4-year term as Chairman,
effective February 1, 1974. The exchange of letters
between Dr. Burns and President Carter follows:
January 12, 1978
Dear Mr. President:
I have given careful thought to the question
of continuing to serve as a member of the
Federal Reserve Board and have decided not
to do so. This decision is based on my conviction that Mr. Miller deserves the fullest opportunity to establish his leadership at the
helm of our Nation's central bank. The continued presence of a former Chairman could,
in my judgment, be a complicating distraction.
I am mindful, of course, of the desirability
of easing the transition at the Board and also
of affording you time to name a new Board
Member. With these and also personal considerations in mind, I propose March 31,
1978—or any earlier convenient time—as the
effective date of resignation.
I take leave of my present office with deep
gratitude for the opportunity I have had to
serve under you and five of your predecessors. America is a blessed country and it
has been good to its people. Adopted citizens, such as myself, perhaps know this even
more keenly than do the native born. That is
why their love of this land of freedom and
opportunity is so often all-consuming. I need
hardly add that you can count on me if I can
ever be of significant help in your efforts on
our country's behalf.
With every good wish to you,
Sincerely yours,




Arthur F. Burns

THE WHITE HOUSE
WASHINGTON

January 13, 1978
Dear Chairman Burns:
It is with sincere regret and a deep sense of
personal loss that I accept your decision to
resign as a member of the Federal Reserve
Board.
We have worked together closely over the
past year, and my respect, for your sound
judgment and integrity has grown steadily.
Your advice and counsel have been of enormous value to me in dealing with the difficult
decisions I had to make during my first year
as President.
Your leadership of the Federal Reserve over
the past eight years occurred at a time when
our nation, and others around the world,
were forced to grapple with economic problems of extraordinary complexity. Our country has been fortunate to have a person of
your experience and knowledge at the helm
of the central bank during this difficult
period.
Because of your impeccable honesty, your
wisdom, and your frank and courageous presentation of your professional opinions, citizens in every walk of life have come to know
and respect you during your long period of
public service. In expressing my own profound thanks to you, I am conveying the
sentiments of a grateful nation.
I will miss very much the frequent personal
contact that we have had over the past year,
and I trust that in the future your services will
still be available to me and to the nation.
Sincerely yours,
Jimmy Carter

CHANGE IN DISCOUNT RATE
The recent disorder in foreign exchange markets
constitutes a threat to orderly expansion of the
domestic and international economy. In view of this,
the Board of Governors of the Federal Reserve
System on January 6, 1978, approved an increase in
the discount rate from 6 per cent to 6-1/2 per cent.
The Board expressed the hope that the need for
the increase will prove temporary. The Board

Federal Reserve Bulletin • January 1978 A77

further indicated that the condition of the domestic
economy is sound and that credit supplies to sustain
economic expansion will remain ample.
In making the change, the Board acted on requests
from directors of the Federal Reserve Banks of New
York and Chicago, increasing the discount rates of
those Banks to 6-1/2 per cent, effective January 9.
The Board subsequently approved similar actions by
the directors of the Federal Reserve Banks of
Boston, Minneapolis, and Kansas City, effective
January 10; of Richmond, St. Louis, Dallas, and
San Francisco, effective January 13; of Atlanta,
effective January 16; and of Philadelphia and Cleveland, effective January 20, 1978. The discount rate
is the interest rate that is charged member banks
when they borrow from their district Federal Reserve Bank.

T R E A S U R Y - F E D E R A L
JOINT

R E S E R V E

I N T E R V E N T I O N

The U.S. Treasury and the Board of Governors
issued the following announcement on January 4,
1978:
The Exchange Stabilization Fund of the U.S.
Treasury will henceforth be utilized actively, together with the $20 billion swap network operated by
the Federal Reserve System. A swap agreement
reached by the Treasury with the German Federal
Bank is already in force. Joint intervention by the
Treasury, the Federal Reserve, and foreign central
banks is designed to check speculation and reestablish order in the foreign exchange markets.

C O U N T R Y

E X P O S U R E

L E N D I N G

S U R V E Y

The results of a survey of foreign lending by large
U.S. banks as of June 30, 1977, were made public
on January 16, 1978, by the Office of the Comptroller of the Currency, the Federal Deposit Insurance
Corporation, and the Board of Governors.
The survey was made to increase the information
available on foreign lending, on a country-bycountry basis. The data reported cover claims on
foreign residents held at all domestic and foreign
offices of 119 U.S. banks with assets of $1 billion or
more. 1
1
The data referred to in this announcement are available in tabular form on request from Publications Services, Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D.C.

20551.



Based on the experience of this survey, the bank
regulatory agencies have instituted a semiannual
"Country Exposure Report" to begin with data for
December 1977. Results of future reports will be
published approximately 4 months after the reporting date.

TYPES OF

LOANS

The information gathered in the survey concentrated on data concerning lending from a bank's
offices in one country to residents of another country, or lending in a currency other than that of the
borrower. These are known as cross-border or
cross-currency loans.
Cross-border and cross-currency loans are those
most closely associated with country risk. These
claims totaled $164 billion on the reporting date.
About 42 per cent of such foreign lending was
accounted for by claims on residents of Switzerland
and the Group of Ten (G-10) developed countries.
Another 20 per cent represented loans to residents
of "other developed countries" and "offshore
banking c e n t e r s . " 2 Cross-border and crosscurrency claims on residents of non-oil-producing,
less-developed countries amounted to approximately $40 billion, or some 24 per cent of the total.
In addition, the banks reported $44 billion in local
currency claims that were held by their offices in
foreign countries on residents of the country in
which the office was located. An example would be
German mark claims on German residents held by
the German branch of the reporting U.S. bank. To a
large extent, these local currency claims were
matched by $37 billion in local currency liabilities
due to local residents. Approximately 75 per cent of
these claims were on residents of Switzerland and
the G-10 countries.
MATURITIES

The survey provided for the first time comprehensive data on the type of customer and the maturity
distribution of banks' claims on foreigners. About
63 per cent of the reported cross-border and crosscurrency claims had a maturity of less than 1 year.
Such short-term claims were especially prominent
in the G-10 countries and the offshore banking
centers where, combined, $64 billion of the $85
billion in claims matured in less than 1 year. This
heavy concentration of short-term claims reflects

2
Countries where multinational banks conduct a large
international money market business.

Announcements

the large volume of interbank lending in these
countries. Most such placements of deposits are for
very short periods.
For most other groups of countries, short-term
claims accounted for about one-half of total claims
although the proportion varied significantly among
individual countries.

ers by country of guarantor is about $150 billion,
or $14 billion less than the total for claims by
country of borrower. This results from U.S. residents guaranteeing about $16.5 billion of claims on
foreigners and foreign residents guaranteeing about
$2.5 billion of claims on U.S. residents.

COMMITMENTS
TYPE OF

BORROWER

With regard to type of customer, lending by the
private nonbank sector was the largest, accounting
for $63 billion. Other types of lending were placements with banks amounting to $59 billion and
loans to the public sector totaling $42 billion. This
latter category includes foreign central governments, their political subdivisions and agencies,
and commercial nonbank enterprises owned by
government. This distribution varied significantly
from country to country. Here also, most of the
claims on banks were on those located in the G-10
countries and the offshore banking centers.

GUARANTEES

Information is provided on the cross-border and
cross-currency claims that are guaranteed by residents of another country. Claims are reallocated
from the country of residence of the borrower to
another country-on two grounds. First, claims on a
bank branch located in one country when the head
office is located in another country are allocated to
the country of the head office. Since a branch is
legally a part of the parent, claims on a branch are
treated as being guaranteed by the head office.
Second, claims on a borrower in one country that
are formally guaranteed by a resident of another
country are allocated to the latter country. These
reallocations are thought to provide a better approximation of country exposure in the banks'
portfolios than the unadjusted figures.
Most of the shifts are accounted for by the
transfer of claims on branches (and, when guaranteed, on subsidiaries) of banks to their head offices
($25 billion out of $33 billion). In general, the
reallocations primarily affected the offshore banking centers and some of the developed countries.
For example, claims on the offshore banking centers decreased from $16.8 billion to $4.4 billion, and
claims on the United Kingdom decreased from $25
billion to $15.8 billion.
For the majority of less-developed countries, a
relatively small portion of claims is externally
guaranteed. The total shown for claims on foreign


61

TO

PROVIDE F U N D S FOR

FOREIGNERS

The survey also provided information on commercial letters of credit and other contingent claims on
foreigners. The banks were asked to report such
contingent claims only when the bank had a legal
obligation to provide funds. The amounts reported
total $42 billion, with 75 per cent of that total being
on the private sector, including banks.

U S E OF THE

DATA

The results of the survey need to be interpreted
with some caution. The survey was experimental in
nature, and it was recognized that all banks might
not be able to furnish the requested information in
the short period of time they were given. As a
result, certain deviations from the instructions were
permitted, and in a limited number of cases, data
were estimated for banks that were unable to report
all items requested. In particular, some banks were
permitted to report claims by "country of the
guarantor" rather than by country of the borrower's residence. Gross claims on some countries
(particularly the banking centers) may, as a result,
be somewhat understated.
In addition, the reported contingent claims may
be somewhat overstated, particularly with regard to
the private sector, because some banks included
advised lines of credit (when actual extensions of
credit under such lines might not be obligatory). In
spite of these difficulties, it is believed that the
reported data provide a representative profile of the
foreign claims of U.S. banks.

S T A T E M E N T
IMPROPER

ON
ACTIVITIES

The Federal bank regulatory agencies issued notice
on January 17, 1978, that political contributions and
certain other questionable payments by banks and
bank holding companies may be regarded as unsafe
and unsound banking practices subject to appropriate corrective action.

Federal Reserve Bulletin • January 1978 A77

In a joint policy statement the agencies said they
will use their full legal authority to halt such practices, including cease-and-desist orders and referrals to law enforcement agencies for possible
prosecution. Such payments may also become a
relevant factor in consideration of applications
submitted by organizations that made the payments.
The policy statement was issued by the Comptroller of the Currency (supervisor of national
banks), the Federal Deposit Insurance Corporation
(Federal supervisor of insured State-chartered
banks that are not members of the Federal Reserve
System), and the Board of Governors of the Federal
Reserve System (supervisor of State-chartered
member banks and of bank holding companies).
Referring to recent disclosures by a small number
of banks and bank holding companies of certain
questionable payments, the statement expressed
the belief of the Federal regulators that continuation of such practices would reflect unfavorably on
the banking system as a whole and thus undermine
public confidence.
The text of the joint policy statement follows:
Statement of Policy Concerning Improper
and Illegal Payments by Banks and Bank
Holding Companies
In recent years a number of U.S. corporations have disclosed that they have engaged
in certain questionable practices with respect
to foreign and domestic payments. These
practices have included improper and illegal
political contributions, bribes, kickbacks,
etc., and have taken place, in some instances,
with the knowledge, consent, and even the
participation of senior corporate management. Many of the foreign payments, legal
under U.S. law at the time they were made,
would, as a result of the recently enacted
Foreign Corrupt Practices Act of 1977, Public
Law 95-213, 91 Stat. 1494 (1977), be illegal if
made today. In addition, under Federal and
State laws, certain political contributions and
other types of payments are illegal.
Recently, a few banks and bank holding
companies have disclosed that, over a period
of time, they also have engaged in questionable payment practices either directly or
through subsidiary banks. Of the questionable payment practices disclosed to date,
most have consisted of domestic political
contributions. While information presently
available does not indicate any significant
involvement by banks or bank holding companies in any of the other types of questionable payment practices disclosed by other
U.S. corporations, the agencies recognize
that the circumstances in which questionable




domestic and foreign payments were made by
corporations may influence banks and bank
holding companies. Thus, although the available information indicates that the number of
banking firms that have engaged in improper
payment practices is small, Federal bank
supervisory agencies are concerned that such
practices, if permitted to continue, would
come to reflect adversely on the banking
system as a whole. It is the judgment of the
agencies that the practice of making political
contributions and certain other payments, in
addition to their possible illegality, may constitute an unsafe or unsound banking practice.
The devices used by banking organizations
to make political payments have included
compensatory bonuses to employees, improperly designated expense accounts, excessive fees or salaries paid to officers, and
low or zero interest rate loans. In addition,
political contributions have been made by
providing equipment and services without
charge to candidates for office. Many of these
devices involved clear departures from acceptable accounting practices. Consequent
lack of corporate accountability raises serious questions regarding the effectiveness of
an institution's own internal audit procedures. For banking organizations to engage in
illegal or unethical activities and to attempt to
conceal those activities by the use of irregular
accounting practices could only serve to
undermine public confidence in the banking
system.
All banks and bank holding companies subject to the Federal supervisory authority of
the Board, the Comptroller of the Currency,
and the FDIC are expected not only to conduct their operations in accordance with applicable laws but to refrain from making payments that may constitute unsafe and unsound banking practices. Where violations of
law or unsafe and unsound banking practices
result from improper payments, the appropriate agency will exercise its full legal authority, including cease-and-desist proceedings
and referral to the appropriate law enforcement agency for further action, to ensure that
such practices are terminated. In appropriate
circumstances, the fact that such payments
have been made may reflect so adversely on
an organization's management as to be a
relevant factor in connection with the consideration of applications submitted by the
organization.
In the near future, the agencies expect to
institute additional procedures in conjunction
with their general and specialized examinations of banks and bank holding companies
designed to evaluate individual institutions'
controls for ensuring adherence to provisions
of law prohibiting unsafe or unsound practices, including the making of contributions to

Announcements

or corporate expenditures on behalf of candidates for elective office, officials of foreign or
domestic governments, and others. Banks
and bank holding companies are urged to
review their own corporate policies and accounting practices to ensure that the funds of
the institution are applied for proper purposes
only.

RESERVE BANK EARNINGS
Preliminary figures indicate that gross current earnings of the Federal Reserve Banks amounted to
$6.89 billion during 1977, a 4.0 per cent increase
from a year earlier. Currrent expenses for the 12
Reserve Banks and their branches totaled $624
million.
Net earnings before payments to the U.S. Treasury totaled $6,043 billion. This figure includes a
loss of $177 million in the profit and loss account
(primarily reflecting a loss of $146 million in foreign
exchange transactions) and a $47 million assessment for expenditures of the Board of Governors.
Payments to the Treasury as interest on Federal
Reserve notes amounted to $5,937 billion; statutory
dividends to member banks, $60 million; and additions to Reserve Bank surplus, $46 million.
Under the policy adopted by the Board of Governors at the end of 1964, all net earnings after the
statutory dividend to member banks and additions
to surplus to bring it to the level of paid-in capital
were paid to the U.S. Treasury as interest on
Federal Reserve notes.
Compared with 1976, gross earnings were up
$268 million. The principal changes in earnings (in
millions of dollars) were as follows:
U.S. Govt, securities
Loans
Acceptances
Foreign currencies

332
22
-23
-25

Earnings of the Federal Reserve System are
derived primarily from U.S. Government securities
that the Federal Reserve has acquired through open
market operations, one of the tools of monetary
policy.

APPROVAL OF
RESERVE BANK BUDGETS
The Board of Governors on December 21, 1977,
approved the 1978 budgets of the 12 Federal Reserve
Banks, permitting an increase of 3 per cent over total
outlays anticipated for 1977.
The Reserve Bank budgets approved for calendar



63

1978 provide for total cash outlays of $765.6 million.
This includes $64.8 million in capital outlays, a
decrease of $7 million from 1977, and operating
outlays of $722.2 million, an increase of $36.8 million
over 1977. To avoid double counting the total figure
is adjusted for depreciation of capital equipment.
The 5.4 per cent rise in operating expenditures for
1978 is substantially less than the average annual
growth at the Reserve Banks of 7.7 per cent a year
from 1974 through 1977.
Output per hour at the Reserve Banks is expected
to increase by more than 10 per cent in 1977 and in
1978. Reserve Bank payrolls have shrunk by 2,156
employees over the last 3 years and a further
reduction of 486 employees is expected next year,
when the number of employees will total 24,007.
The Board's budget will be considered at a later
date.

OPEN BOARD MEETINGS:
Requests for Materials
For the information of the public, the Secretary of
the Board of Governors has outlined the following
procedures that are in effect at the Board for the
processing of requests for copies of memoranda and
other material scheduled to be discussed at meetings
of the Board that are open to public observation:
As required by law, the Secretary of the Board
regularly makes public announcement of the agenda
for each open meeting at least 1 week in advance of
the meeting. Members of the public who wish to
request copies of materials scheduled to be discussed at such a meeting should make their requests
to the Secretary as far in advance of the meeting as
possible in accordance with the Board's Rules
Regarding Availability of Information, 12 C.F.R.
Part 261. In any case, the request should be received
by the close of business two working days prior to
the meeting.
Because such materials may be helpful to the
requesting party if they are available for use at the
open meeting to which they relate, the Secretary
gives such requests priority treatment. Requested
materials are made available by the time of the
meeting unless there is insufficient opportunity to
process the request or a determination is made to
invoke an applicable exemption from disclosure.
Requests for materials to be discussed in open
meetings should be in writing and addressed to the
Secretary. They may be presented during business
hours at the Board's Freedom of Information Office,
Room 1228, Federal Reserve Building, 20th Street

Federal Reserve Bulletin • January 1978 A77

and Constitution Avenue, N.W., Washington, D.C.
20551.

payments services to financial institutions and the
public.

POSTPONEMENT OF
REVISED REPORTS

CHANGES IN BOARD STAFF

The Board of Governors has announced postponement of the proposed effective date of revisions in
quarterly reports by State member banks of their
condition and income. The proposals—announced
in October—would affect chiefly banks with foreign
offices and others with assets of $300 million or
more.
The target date for the reporting changes was
postponed from March 31, 1978. A new date for
implementation of the revised reports will be announced in the near future.
The Board said it was acting on the basis of
comments received and in order to give adequate
time for consideration of these comments.

PROPOSED ACTIONS:
FUNDS TRANSFER AND CLEARING
The Board of Governors has invited comment by
February 28, 1978, on plans to enhance and improve




The Board of Governors has announced the following official staff promotions in the Legal Division,
effective January 3, 1978:
Robert E. Mannion from Assistant General Counsel to Associate General Counsel.
Allen L. Raiken from Assistant General Counsel
to Associate General Counsel.
The Board also announced the resignation of
Baldwin B. Tuttle, Deputy General Counsel, effective December 30.

SYSTEM MEMBERSHIP:
Admission of State Bank
The following bank was admitted to membership in
the Federal Reserve System during the period December 16, 1977, through January 15, 1978:
Oklahoma
Tulsa

Harvard Tower Bank

65

Industrial Production
Released for publication January 17
Industrial production increased by an estimated 0.2
per cent in December, compared with revised increases of 0.4 per cent in November and 0.2 per
cent in October. The December increase in the
index would have been twice as large if it were not
for the nearly 50 per cent cut in bituminous output
due to the coal strike.
Moderate increases were registered in most market groupings of the index, including home goods,
consumer nondurable goods, business equipment,
construction supplies, and durable and nondurable
goods materials. The December index, at 139.6 per
cent of the 1967 average, implies a preliminary
annual average for 1977 of 137.1 per cent, up 5.6 per
cent from the previous year.
Output of consumer goods increased 0.3 per cent,
reflecting moderate increases in home goods and
nondurable consumer goods such as food, staples,
and clothing. In response to weaker-than-expected
sales, auto assemblies were reduced to an annual
rate of 8.9 million units f r o m 9.1 million in
November. First-quarter assemblies are also currently scheduled in this range. Production of business equipment is estimated to have increased 0.4
per cent in December, following smaller rises over
the previous 2 months; a small portion of this
increase is attributable to partial resumption of
production in strike-affected aerospace industries.

Output of intermediate products, which includes
construction and business supplies, advanced 0.9
per cent further.
Output of total materials declined 0.1 per cent in
December, as production of energy materials was
reduced more than 3 per cent due to the coal strike.
Both durable and nondurable goods materials increased moderately further.

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

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

1977
Sept.

Oct.

Nov. p

Dec. e

Month ago

Year ago

Q3 to Q4

Total

138.5

138.8

139.3

139.6

.2

5.0

.6

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

138.8
136.8
144.9
155.6
140.7
152.1
146.5
143.2
137.9

138.9
136.6
145.2
157.2
140.5
152.3
147.0
144.4
138.8

139.3
137.0
145.7
155.6
141.6
152.7
147.9
146.0
139.2

140.0
137.6
146.2
155.9
142.2
153.3
149.2
147.1
139.1

.5
.4
.3
.2
.4
.4
.9
.8
-.1

4.9
4.6
3.5
3.6
3.3
7.7
6.2
8.6
5.4

.6
.4
.5
.1
.6
.9
1.2
2.7
.7

p

Preliminary.




Estimated.

Al

Financial and Business Statistics
CONTENTS
DOMESTIC FINANCIAL STATISTICS

W E E K L Y R E P O R T I N G COMMERCIAL

A3
A4
A5

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

A6

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

POLICY I N S T R U M E N T S

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
A10 Margin requirements
A11 Federal Reserve open market
transactions
FEDERAL RESERVE BANKS

BANKS

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

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

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

A29 Savings institutions—Selected assets
and liabilities

MONETARY AND CREDIT AGGREGATES

FEDERAL FINANCE

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

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

COMMERCIAL B A N K ASSETS AND LIABILITIES

A16 Last-Wednesday-of-month series
A17 Call-date series
A18 Detailed balance sheet, June 30, 1977




A2

Federal Reserve Bulletin • January 1978 A77

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

A36 New security issues—State and local
government and corporate
A37 Corporate securities—Net change in
amounts outstanding
A37 Open-end investment companies—Net
sales and asset position
A38 Corporate profits and their distribution
A38 Nonfinancial corporations—Assets and
liabilities
A38 Business expenditures on new plant
and equipment
A39 Domestic finance companies—Assets
and liabilities; business credit
REAL ESTATE

A40 Mortgage markets
A41 Mortgage debt outstanding
CONSUMER INSTALMENT CREDIT

A42 Total outstanding and net change
A43 Extensions and liquidations

INTERNATIONAL STATISTICS
A54 U.S. international transactions—
Summary
A55 U.S. foreign trade
A55 U.S. reserve assets
A56 Selected U.S. liabilities to foreigners
and to foreign official institutions
R E P O R T E D BY B A N K S IN THE U N I T E D S T A T E S :

A57
A59
A60
A61

Short-term
Long-term
Short-term
Long-term

liabilities to foreigners
liabilities to foreigners
claims on foreigners
claims on foreigners

A62 Foreign branches of U.S. banks—
Balance sheet data
SECURITIES H O L D I N G S AND TRANSACTIONS

A64 Marketable U.S. Treasury bonds and
notes^—Foreign holdings and
transactions
A64 Foreign official assets held at F.R.
banks
A65 Foreign transactions in securities

F L O W OF F U N D S

A44 Funds raised in U.S. credit markets
A45 Direct and indirect sources of funds to
credit markets
DOMESTIC NONFINANCIAL STATISTICS
A46 Nonfinancial business activity—
Selected measures
A46 Output, capacity, and capacity
utilization
A47 Labor force, employment, and
unemployment
A48 Industrial production—Indexes and
gross value
A50 Housing and construction
A51 Consumer and wholesale prices
A52 Gross national product and income
A53 Personal income and saving




R E P O R T E D BY N O N B A N K I N G C O N C E R N S IN
THE U N I T E D S T A T E S :

A66 Short-term liabilities to and claims on
foreigners
A67 Long-term liabilities to and claims on
foreigners
I N T E R E S T AND E X C H A N G E R A T E S

A68 Discount rates of foreign central banks
A68 Foreign short-term interest rates
A68 Foreign exchange rates
A69

GUIDE TO TABULAR
AND STATISTICAL

PRESENTATION

RELEASES

Domestic Financial Statistics
1.10

A3

MONETARY AGGREGATES A N D INTEREST RATES
1976

1977

1977

Item
Q4

Q2

Ql

Q3

July

Aug.

Sept.

Oct.

Nov.

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

1
2
3

Member bank reserves
Total
Required
Nonborrowed

4
5
6

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

7
8
9

Time and savings deposits
Commercial banks:
Total
Other than large CD's
Thrift institutions 2

4.4
4.0
4.8

2.7
3.0
2.6

3.0
3.5
1.9

9.0
8.6
3.4

16.9
12.5
14.9

9.8
12.5
-15.4

-.5
-.8
14.6

9.1
9.1
-14.1

3.7
2.4
19.3

6.5
12.5
14.4

4.2
9.9
11.3

8.4
9.2
10.0

9.3
10.3
12.4

18.3
16.6
16. 1

5.9
6.4
11.5

7.3
7.9
12.3

12.0
10.1
'12.5

1.8
4.5
7.3

12.2
17.1
17.3

12.5
14.0
13.4

8.3
9.8
11.2

10.0
10.9
15.5

15.4
15.5

11.0

6.9
6.8
18.4

7.6
8.6
'18.8

14.6
8.6
'15.9

18.3
9.0
11.2

10.8

'9.5

'13.3

'9.8

'9.5

12.3

'3.8

'13.5

11.8

1

10 Total loans and investments at commercial banks 3

1977

1977
Ql

Q2

Q3

Q4

Aug.

Sept.

Oct.

Nov.

Dec.

Interest rates (levels, per cent per annum)

11
12
13
14

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

4.66
4.63
4.74
5.25

5.16
4.84
5.15
5.25

5.82
5.50
5.74
5.42

6.51
6.11
6.56

5.90
5.49
5.75
5.27

6.14
5.81
6.09
5.75

6.47
6.16
6.51
5.80

6.51
6.10
6.54
6.00

6.56
6.07
6.61
6.00

15
16
17

Long-term rates
Bonds:
U.S. Govt. 8
State and local government
Aaa utility (new issue) 1 o

7.62
5.88
8.17

7.68
5.70
8.21

7.60
5.59
8.09

7.78
5.57
8.27

7.64
5.62
8.04

7.57
5.51
8.07

7.71
5.64
8.23

7.76
5.49
8.27

7.87
5.57
8.34

18

Conventional mortgages * 1

8.82

8.95

9.00

9.05

9.00

9.00

9.00

9.05

9

1 M-l equals currency plus private demand deposits adjusted.
M-2 equals M-l plus bank time and savings deposits other than large
negotiable certificates of deposit (CD's).
M-3 equals M-2 plus deposits at mutual savings banks, savings and
loan
associations, and credit union shares.
2
Savings and loan associations, mutual savings banks, and credit
unions.
3 Quarterly changes calculated from figures shown in Table 1.23.
4
Seven-day averages of daily effective rates (average of the rates on
a given date weighted by the volume of transactions at those rates).
5 Quoted on a bank-discount rate basis.
6 Most representative offering rate quoted by five dealers.




7

Rate for the Federal Reserve Bank of New York.
8 Market yields adjusted to a 20-year maturity by the U.S. Treasury.
9 Bond Buyer series for 20 issues of mixed quality.
10 Weighted averages of new publicly offered bonds rated Aaa, Aa,
and A by Moody's Investors Service and adjusted to an Aaa basis.
Federal
Reserve compilations.
11
Average rates on new commitments for conventional first mortgages
on new homes in primary markets, unweighted and rounded to nearest
5 basis
points, from Dept. of Housing and Urban Development.
12
Unless otherwise noted, rates of change are calculated from average
amounts outstanding in preceding month or quarter.

A4

DomesticNonfinancialStatistics • January 1978

1.11

FACTORS A F F E C T I N G MEMBER BANK RESERVES
Millions of dollars
Monthly averages of daily
figures

Weekly averages of daily figures for weeks ending-

1977

1977

Factors

Oct.

Nov.

Dec.f

Nov. 16

Nov. 23

Nov. 30

Dec. 14

Dec. 21 p Dec. 28p

SUPPLYING RESERVE FUNDS
1

Reserve Bank credit outstanding...

113,279

110,650

116,412

110,374

111,085

111,457

113,067

112,574

116,633

121,795

2
3
4

U.S. Govt, securities*
Bought outright
Held under repurchase agreement
Federal agency securities
Bought outright
Held under repurchase agreement

98,037
97,395

95,421
95,170

100,185
98,957

94,919
94,919

95,565
95,414

95,825
95,382

97,976
97,074

97,416
97,416

100,532
99,504

103,365
100,990

642
7,389
7,329

251
7,355
7,329

1,228
7,763
7,541

7,329
7,329

151
7,351
7,329

443
7,370
7,329

902
7,364
7,329

7,319
7,319

1,028
7,451
7,305

2,375
8,578
8,013

60

26

222

22

41

35

146

565

Acceptances
Loans
Float
Other Federal Reserve assets. . .

91
1,319
3,972
2,471

42
840
4,660
2,332

326
558
5,338
2,242

534
5,085
2,507

26
879
5,255
2,009

61
1,079
4,885
2,237

171
583
4,870
2,103

509
5,193
2,137

270
528
5,607
2,246

589
686
6,176
2,400

12 Gold stock
13 Special Drawing Rights certificate
account
14 Treasury currency outstanding.

11,595

11,595

11,696

11,595

11,595

11,595

11,622

11,718

11,718

11,718

1,200
11,272

1,200
11,313

1,208
11,356

1,200
11,307

1,200
11,322

1,200
11,324

1,200
11,344

1,200
11,348

1,200
11,359

1,214
11,364

98,868
429

100,741
415

102,823
448

100,883
418

101,034
410

101,533
407

101,737
442

102,556
403

102,990
400

103,713
394

6,618
298
699

2,399
301
597

5,640
298
658

1,790
329
575

1,757
286
518

2,112
313
713

4,156
316
661

3,210
270
620

5,303
280
620

9,346
297
581

5
6
7
8
9
10
11

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
Other 2
20
21

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

3,501

3,522

3,718

3,517

3,658

3,721

3,552

3,408

3,672

4,331

26,933

26,783

27,087

26,963

27,541

26,779

26,368

26,374

27,646

27,431

End-of-month figures

Wednesday figures

1977

SUPPLYING RESERVE FUNDS

1977
5

Nov.

Dec.*

Nov. 16

Nov. 23

Nov. 30

Dec. 14

Dec. 21 p Dec. 28p

22

Reserve Bank credit outstanding. . .

109,358

111,862

118,584

107,548

115,992

111,862

114,068

111,761

120,414

124,908

23
24
25

U.S. Govt, securities1
Bought outright
Held under repurchase agreement
Federal agency securities
Bought outright
Held under repurchase agreement

94,597
94,597

96,477
94,438

102,819
100,918

89,945
89,945

97,687
96,627

96,477
94,438

98,414
97,785

94,557
94,557

101,977
99,588

105,682
101,063

7,329
7,329

2,039
7,460
7,329

1,901
8,455
8,004

7,329
7,329

1,060
7,484
7,329

2,039
7,460
7,329

629
7,379
7,329

7,305
7,305

2,389
7,551
7,305

4,619
8,825
8,013

131

451

155

131

50

246

812

923
3,945
2,564

248
926
4,632
2,119

954
266
3,648
2,442

369
7,856
2,049

182
2,951
5,623
2,065

248
926
4,632
2,119

294
588
5,179
2,213

1,238
6,477
2,184

469
1,038
7,055
2,324

734
1,909
5,355
2,403

11,595

11,595

11,718

11,595

11,595

11,595

11,658

11,718

11,718

11,718

1,200
11,244

1,200
11,308

1,250
11,382

1,200
11,319

1,200
11,327

1,200
11,308

1,200
11,346

1,200
11,351

1,200
11,360

1,250
11,364

98,900
413

101,856
397

103,803
450

101,170
416

101,489
409

101,856
397

102,464
402

103,039
400

103,639
399

104,412
390

6,398
425
715

2,562
416
719

7,114
379
1,187

1,199
268
494

2,018
269
599

2,562
416
719

4,276
244
690

2,744
291
704

8,201
285
531

7,664
327
630

26
27
28
29
30
31
32

Acceptances
Loans
Float
Other Federal Reserve assets

33 Gold stock
34 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
Other 2
41
42

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

3,704

3,675

3,292

3,776

3,794

3,675

3,324

3,508

3,660

3,902

22,841

26,345

26,709

24,339

31,536

26,345

26,871

25,344

27,978

31,916

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




voluntarily held with member banks and redeposited in full with Federal
Reserve Banks.
NOTE.—For amounts of currency and coin held as reserves, see Table
1.12.

Member Banks
1.12

RESERVES A N D BORROWINGS

A5

Member Banks

Millions of dollars
Monthly averages of daily figures
Reserve classification

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

1
2
3
4
5

1977

1976
May

June

26,096
8,368
34,613
34,602
11

25,970
8,610
34,732
34,460
272

25,646
8,609
34,406
34,293
113

62
12

73
14

200
31

Dec.

Apr.

26,430
8,548
35,136
34,964
172

July

Nov.

Dec.?

26,933
8,820
35,860
35,521
339

26,783
8,932
35,782
35,647:
135

27,087
9,350
36,498
36,297
201

634
112

1,319
114

840
83

558
55

Aug.

Sept.

Oct.

26,663
8,622
35,391
35,043
348

26,373
8,712
35,186
34,987
199

26,152
8,887
35,156
34,965
191

262
55

336
60

1,071
101

8
9
10
11

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

6,520
6,602
-82
15

6,264
6,351
-87
16

6,310
6,279
31
18

6,241
6,188
53
36

6,359
6,342
17
74

6,272
6,247
25
157

6,025
6,022
3
75

6,175
6,120
55
133

6,181
6,175
6
132

6,178
6,280
-102
48

12
13
14
15

Large banks in Chicago
Reserves held
Required
Excess
Borrowings 2

1,632
1,641
-9
4

1,629
1,634
-5

1,637
1,634
3
4

1,662
1,627
35
15

1,573
1,606
-33
6

1,653
1,622
31
5

1,655
1,634
21
12

1,666
1,656
10
24

1,607
1,609
-2
23

1,568
1,613
-45
26

16
17
18
19

Other large banks
Reserves held
Required
Excess
Borrowings 2

13,117
13,053
64
14

13,090
13,110
-20
23

13,067
12,996
71
62

12,869
12,943
-74
80

13,438
13,286
152
79

13,290
13,270
20
530

13,362
13,355
7
183

13,711
13,598
113
681

13,607
13,602
5
355

13,862
13,928
-66
244

20
21
22
23

AH other banks
Reserves held
Required
Excess
Borrowings 2

13,867
13,668
199
29

13,630
13,507
123
34

13,718
13,551
167
116

13,634
13,535
99
131

14,021
13,809
212
177

13,971
13,848
123
379

14,114
13,954
160
364

14,308
14,147
161
481

14,387
14,261
126
330

14,554
14,476
78
240

*

Weekly averages of daily figures for weeks ending—
1977

All member banks
Reserves:
At F.R. Banks
Currency and coin
Total heldi
Required
Excess 1
Borrowings at F.R. Banks: 2
29
Total
30
Seasonal

24
25
26
27
28

Oct. 26

Nov. 2

Nov. 9

Nov. 16

Nov. 23

Nov. 30

Dec. 7

Dec. 14

Dec. 21 P

27,026
8,406
35,502
35,300
202

26,929
8,983
35,981
35,716
265

26,301
9,182
35,551
35,396
155

26,963
9,191
36,221
35,804
417

27,541
8,249
35,856
35,867

26,779
9,094
35,938
35,500
438

26,368
9,254
35,687
35,672
15

26,374
9,837
36,275
35,962
313

27,646
8,925
36,630
36,429
201

1,444
116

,113
103

887
87

534
83

879
85

1,079
75

583
65

509
56

528
53

6,220
6,175
45

6,260
6,214
46

6,335
6,314
21
60

6,280
6,322
-42
252

5,956
5,848
108
252

5,969
6,087

6,219
6,182
37
93

6,384
6,401
-17
50

1,618

1,646
1,631
15

1,533
1,574
-41
27

-11

31
32
33
34

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

5,757
5,777

35
36
37
38

Large banks in Chicago
Reserves held
Required
Excess
Borrowings 2

1,657
1,643
14
15

1,669
1,648
21
17

1,611

1,624
-13
14

1,675
1,638
37
13

,575
,594
-19
33

1,587
1,570
17
31

39
40
41
42

Other large banks
Reserves held
Required
Excess
Borrowings 2

13,670
13,582
88
586

13,668
13,601
67
631

13,459
13,478
-19
560

13,823
13,689
134
168

13,578
13,602
-24
298

13,788
13,638
150
386

13,578
13,609
-31
287

13,957
13,840
117
211

13,835
13,985
-150
232

43
44
45
46

All other banks
Reserves held
Required
Excess
Borrowings 2

14,418
14,298
120
643

14,424
14,292
132
465

14,221
14,080
141
313

14,388
14,163
225
293

14,423
14,349
74
296

14,607
14,444
163
410

14,522
14,356
166
250

14,453
14,309
144
197

14,502
14,469
33
219

-20

200

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




-118

37
1,620
- 2

9

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

DomesticNonfinancialStatistics • January 1978
F E D E R A L F U N D S T R A N S A C T I O N S of Money Market Banks
Millions of dollars, except as noted
1977, week ending Wednesday—
Type
Nov. 2

Nov. 9

Nov. 16

Nov. 30

Nov. 23

Dec. 7

Dec. 14

Dec. 21

Dec. 28

Total, 46 banks
Basic reserve position
Excess reserves 1

133

64

131

-14

209

8

100

87

128

281

363

48

415

422

106

123

175

251

16,416

20,929

20,061

17,766

16,212

19,618

20,864

19,431

16,287

-16,564

-21,228

-19,978

-18,195

-16,425

-19,716

-20,887

-19,519

-16,411

109.1

140.2

129.8

119.6

110.9

130.8

136.2

125.6

106.3

22,719
6,304
5,376

28,083
7,155
6,006

27,820
7,760
6,422

25,552
7,786
5,358

24,445
8,233
5,836

28,000
8,382
5,921

28,734
7,870
5,329

27,426
7,995
5,977

25,218
8,930
5,528

17,344
928

22,077
1,149

21,398
1,337

20,194
2,428

18,609
2,397

22,079
2,462

23,405
2,540

21,449
2,019

19,689
3,402

'4,271

'4,454
'1,496
'2,958

'3,833
'1,766
'2,068

4,019
1,758
2,261

3,563
1,568
1,994

4,684
1,822
2,863

4,133
1,575
2,559

3,437
2,185
1,252

LESS:

Borrowings at F.R. Banks. . .
Net interbank Federal funds
transactions
EQUALS: Net surplus, or
deficit ( - ) :
Amount
Per cent of average required
reserves
Interbank Federal funds transactions
Gross transactions:
Purchases
Sales
Two-way transactions 2
Net transactions:
Purchases of net buying b a n k s . . .
Sales of net selling banks

11
12
13

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

r

3,698
1,959
l ,740
r

r
l,625
r

2,646

8 banks in New York City

14

Basic reserve position
Excess reserves 1

50

72

LESS:

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

60

-9

91

-35

6

13

16

10

252

252

37

81

50

32

5,061

7,566

7,391

7,185

6,004

7,352

9,076

7,147

6,150

-5,011

-7,494

-7,340

-7,447

-6,165

-7,424

-9,151

-7,185

-6,165

89.3

132.2

127.5

130.3

115.5

134.5

163.4

123.4

108.5

5,645
584
584

8,536
970
970

8,235
844
844

7,874
689
689

6,806
803
803

8,147
795
796

9,412
335
335

8,052
905
905

7,242
1,092
1,092

5,061

7,566

7,391

7,185

6,004

7,352

9,076

7,147

6,150

1,718
1,016
702

2,558
1,173
1,385

2,734
1,103
1,631

2,167
1,087
1,080

1,978
1,076
902

2,122
1,128
994

2,799
1,225
1,573

2,530
1,095
1,435

2,085
1,226
859

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

deficit ( - ) :
Amount
Per cent of average required
reserves
Interbank Federal funds transactions
Gross transactions:
Purchases
Sales
Two-way transactions 2
Net transactions:
Purchases of net buying b a n k s . .
Sales of net selling banks

24
25
26

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

38 banks outside New York City

27

Basic reserve position
Excess reserves 1

83

-8

71

-5

119

43

93

74

111

281

363

38

162

169

70

41

125

219

11,355

13,363

12,670

10,581

10,209

12,266

11,788

12,284

10,138

-11,554

-13,734

-12,638

-10,748

-10,259

-12,292

-11,736

-12,335

-10,246

120.7

145.0

131.2

113.2

108.2

128.6

120.5

126.9

105.0

17,075
5,720
A,192

19,548
6,185
5,036

19,586
6,916
5,578

17,678
7,097
4,669

17,639
7,431
5,033

19,853
7,587
5,125

19,322
7,534
4,994

19,374
7,091
5,072

17,976
7,838
4,436

12,283
928

14,511
1,149

14,008
1,337

13,009
2,428

12,606
2,397

14,727
2,462

14,329
2,540

14,302
2,019

13,540
3,402

r

'1,713
'452
'1,262

'1,720
'393
'1,327

'1,666
'678
'988

2,041
682
1,359

1,441
441
1,000

1,886
596
1,289

1,603
479
1,124

1,352
959
393

LESS:

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

deficit ( - ) :
Amount
Per cent of average required
reserves
Interbank Federal funds transactions
Gross transactions:
Purchases
Sales
Two-way transactions 2
Net transactions:
Purchases of net buying b a n k s . .
Sales of net selling banks

37
38
39

Related transactions with U.S.
Govt, securities dealers
Loans to dealers 3
Borrowing from dealers 4 ....
Net loans
For notes see end of table.




l , r9 8 0
942
1,038

Federal Funds
1.13

Al

Continued

1977, week ending WednesdayType
Nov. 9

Nov. 2

Nov. 16

Nov. 23

Nov. 30

Dec. 7

Dec. 14

Dec. 21

Dec. 28

5 banks in City of Chicago

40

Basic reserve position
Excess reserves 1
LESS:

41
42

43
44

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

48
49

Interbank Federal funds transactions
Gross transactions:
Purchases
Sales
Two-way transactions 2
Net transactions:
Purchases of net buying b a n k s . .
Sales of net selling banks

50
51
52

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

45
46
47

23

-3

38

3

-1

16

20

20

16

21

2

8

23

73

5,570

6,777

6,159

5,757

5,968

6,988

6,725

6,193

5,719

-5,550

-6,780

-6,120

-5,777

-5,972

-6,972

-6,704

-6,214

-5,784

360.2

447.2

400.4

389.0

408.7

461.9

441.6

424.8

390.5

6,875
1,305
1,280

7,756
979
979

7,783
1,624
1,607

7,144
1,387
1,349

7,381
1,413
1,409

8,165
1,178
1,175

7,843
1,117
1,093

7,358
1,165
1,115

6,7 47
1,028
992

5,595
25

6,777

6,176
17

5,795
38

5,972
3

6,990
3

6,749
24

6,243
50

5,755
36

312

283
13
270

268
104
164

357
114
243

299
121
178

455
367
88

436
338
98

278
476
-198

378
288
90

312

33 other banks

53

Basic reserve position
Excess reserves 1
LESS:

54
55

56
57

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

Interbank Federal funds transactions
Gross transactions:
Purchases
Sales
Two-way transactions 2
Net transactions:
61
Purchases of net buying b a n k s . .
62
Sales of net selling banks

58
59
60

63
64
65

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

60

-5

33

-4

103

27

72

72

103

278

363

38

142

149

70

41

102

146

5,785

6,586

6,512

4,825

4,241

5,278

5,063

6,090

4,419

-6,004

-6,954

-6,517

-4,971

-4,287

-5,320

-5,032

-6,121

-4,462

74.8

87.4

80.4

62.1

53.5

61.2

74.1

53.9

10,200
4,415
3,512

11,791
5,206
4,057

11,803
5,292
3,971

10,534
5,710
3,320

10,258
6,018
3,624

11,688
6,410
3,950

11,480
6,417
3,901

12,016
5,926
3,957

11,229
6,810
3,444

6,688
903

7,734
1,149

7,832
1,320

7,215
2,390

6,634
2,393

7,737
2,459

7,579
2,516

8,059
1,969

7,785
3,366

'1,602
'654
'948

'1,401
'452
'950

'1,437
'380
'1,057

'1,398
'574
'824

1,684
568
1,116

1,142
320
822

1,431
229
1,201

1,168
141
1,026

1,074
483
591

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




66.1

4
Federal funds borrowed, net funds acquired f r o m 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

DomesticNonfinancialStatistics • January 1978
F E D E R A L RESERVE B A N K 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
Federal Reserve
Bank

Under Sees. 13 and 13a*
Regular rate

Special rate 3

Rate on
12/31/77

Effective
date

Previous
rate

Rate on
12/31/77

Effective
date

Previous
rate

Rate on
12/31/77

Effective
date

Previous
rate

Rate on
12/31/77

Effective
date

Previous
rate

6
6
6
6
6
6
6
6
6
6
6
6

10/26/77
10/26/77
10/26/77
10/26/77
10/26/77
10/26/77
10/26/77
10/26/77
10/26/77
10/26/77
10/26/77
10/26/77

53/4
53/4
534
5 3/4
53Va
53/4
53/4
53/4
53/4
53/4
53/4
53/4

61/2
61/2
61/2
6Vi
61/2
6Vi
61/2
61/2
6Vi
6Vi
61/2
6Vi

10/26/77
10/26/77
10/26/77
10/26/77
10/26/77
10/26/77
10/26/77
10/26/77
10/26/77
10/26/77
10/26/77
10/26/77

61/4
6 V4
61/4
61/4
6V4
6V4
6V4
61/4
6V4
61/4
61/4
61/4

7
7
7
7
7
7
7
7
7
7
7
7

10/26/77
10/26/77
10/26/77
10/26/77
10/26/77
10/26/77
10/26/77
10/26/77
10/26/77
10/26/77
10/26/77
10/26/77

63^
63/4
634
634
634
634
634
63/4
63/4
634
634
63/4

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

10/26/77
10/26/77
10/26/77
10/26/77
10/26/77
10/26/77
10/26/77
10/26/77
10/26/77
10/26/77
10/26/77
10/26/77

834
834
834
834
83/4
83/4
834
834
834
834
83/4
83/4

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San F r a n c i s c o . . . .

Range of rates in recent years 5

Effective date

Range
(or level)All F.R.
Banks

51/2

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

51/4
-51/4
-5%
5
4%-5
4'A
4%-5
5
43/4-5
4V4
4%-4%
41/2-434
5
5

4 Vi

F.R.
Bank
of
N.Y.

5%
51/4
5%
51/4
5
5
5

43/4
5
5
5

43/4
43/4
4%
4Vi

Effective date

Range
(or level)—
All F.R.
Banks

1973—Jan. 15.
Feb. 26.
Mar. 2.
Apr. 23.
May 4.

5
5-5 Vi
5 Vi
5*4-5%
534
53/4-6
6
6-6 Vi
6V4
7
7-7Vi

11.
18.

June 11.
15.
July
2,
Aug. 14.
23,

m
7V4-8
8
73/4-8
m

1974—Apr. 25,
30
Dec. 9

16

F.R.
Bank
of
N.Y.
5

5V4
5Vi
5Vi

2*
6

6Vi
6Vi
7
7V4
7Vi
8
IVa

73/4

Range
(or level)—
All F.R.
Banks

F.R.
Bank
of
N.Y.

1975—Jan.

71/4-73/4
71/4-73/4
71/4
634-714
634
61/4-634
61/4
6-614
6

734
714
71/4
634
634
614
614
6
6

1976—Jan.

19
23
Nov. 22
26

5V4-6
5Vi
514-51/2
51/4

5 V4
5V4
51/4
51/4

1977—Aug. 30
31
Sept. 2

514-534
514-534
534

51/4
534
534

Effective date

6
10
24
Feb. 5
7
Mar. 10
14
May 16
23

Oct. 26
In effect Dec. 31, 1977...
1

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




4

6

6

6

6

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

Policy Instruments
1.15

A9

MEMBER B A N K RESERVE R E Q U I R E M E N T S 1
Per cent of deposits
Requirements in effect
Dec. 31, 1977
Type of deposit, and deposit interval
in millions of dollars

Previous requirements

Per cent

Effective date

Per cent

Effective date

7
91/2
1134
123^
16%

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

71/2
10
12
13
16V4

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

3

3/16/67

3V4

3/2/67

3
21/2
1

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

31/2
3
3

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

6
21/2
1

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

5
3
3

Net d e m a n d : 2
2-10
10-100
100-400
Over 400
Time: 2 ,3
Savings
Other time:
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
4 years or more

4

4

4

4

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

Legal limits, Dec. 31, 1977

Net demand:
Reserve city banks
Other 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 F.R. Banks or branches are also reserve
cities. Any banks having net demand deposits of $400 million or less
are considered to have the character of business of banks outside of
reserve cities and are permitted to maintain reserves at ratios set for banks
not in reserve cities. For details, see the Board's Regulation D.




Minimum

Maximum

10
7
3

22
14
10

(c) The Board's Regulation M requires a 4 per cent reserve against net
balances due from domestic banks to their foreign branches and to foreign
banks abroad. Effective Dec. 1, 1977, a 1 per cent reserve is required
against deposits that foreign branches of U.S. banks use for lending to
U.S. residents. Loans aggregating $100,000 or less to any U.S. resident are
excluded from computations, as are total loans of a bank to U.S. residents
if not exceeding $1 million. Regulation D imposes a similar reserve requirement on borrowings f r o m foreign banks by domestic offices of a
member bank.
3 Negotiable orders of withdrawal (NOW) accounts and time deposits
such as Christmas and vacation club accounts are subject to the same
requirements as savings deposits.
4 The average of reserves on savings and other time deposits must be
at least 3 per cent, the minimum specified by law.
NOTE.—Required reserves must be held in the form of deposits with
F.R. Banks or vault cash.

A10 DomesticNonfinancialStatistics • January 1978
.16

M A X I M U M INTEREST RATES PAYABLE on Time and Savings Deposits at Federally Insured Institutions
Per cent per annum
Savings and loan associations and
mutual savings banks

Commercial banks

Type and maturity of deposit

Per cent

Effective
date

7/1/73

5V2

7/1/73

6

7/1/73

6V2

7/1/73

71/4
71/2
73/4

11/1/73

3

7
8
9

1 to 2 years
2 to 2i/ 2 years 3
i y 2 to 4 years 3

10
11

4 to 6 years 4
6 years or more 4

12
13

Governmental units (all maturities)
Individual retirement accounts and
Keogh (H.R. 10) plans 5

41/2

/ 4i/2
I 5

1/21/70

12/23/74
12/23/74

m

1/21/70
9/26/66
7/20/66
9/26/66

Per cent

6

51/4

( )

5

1/1/74

(8)
3

8

( )
6

53/4

( )

5%

1/21/70

61/2
VA

(6)
(6)

534
6
6

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

5 /4

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

(9)
71/4

11/1/73

71/2
73/4

11/1/73
12/23/74

(9)
71/2

11/1/73

IVi

11/27/74

734

12/23/74

m

11/27/74

73Va

7/6/77

(8)

8

( )

7/6/77

Previous maximum

51/2
53/
4
3

1
For authorized States only. Federally insured commercial banks,
savings and loan associations, cooperative banks, and mutual savings
banks were first permitted to offer N O W accounts on Jan. 1, 1974.
Authorization to issue N O W accounts was extended to similar institutions throughout New England on Feb. 27, 1976.
2
For exceptions with respect to certain foreign time deposits see the
Federal Reserve BULLETIN for October 1962 (p. 1279), August 1965 (p.
1094),
and February 1968 (p. 167).
3
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.
4
$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.
5
3-year minimum maturity.
6
July 1, 1973, for mutual savings banks; July 6, 1973, for savings and
loan associations.
7 Oct. 1, 1966, for mutual savings banks; Jan. 21, 1970, for savings and
loan
associations.
8
N o separate account category.

1.161

Effective
date

1/1/74

Time (multiple- and single-maturity2
unless otherwise indicated):
30-89 days:
3
Multiple-maturity
4
Single-maturity
90 days to 1 year:
Multiple-maturity
Single-maturity

In effect Sept. 30, 1977

Effective
date

7/1/73

1 Savings
2 Negotiable order
of withdrawal (NOW)
accounts 1

5
6

Previous maximum

In effect Sept. 30,1977

9 Between July 1, 1973, and Oct. 31, 1973, there was no ceiling for
certificates maturing in 4 years or more with minimum denominations
of $1,000; however, the amount of such certificates that an institution
could issue was limited to 5 per cent of its total time and savings deposits.
Sales in excess of that amount, as well as certificates of less than $1,000,
were limited to the 6Vi per cent ceiling on time deposits maturing in 2 l /i
years or more.
Effective Nov. 1, 1973, the present ceilings were imposed 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
C F R 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 H o m e Loan Bank Board Journal, and the Annual Report
of the Federal Deposit Insurance Corporation.

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

1 Margin stocks
2 Convertible bonds
3 Short sales

Mar. 11, 1968

June 8, 1968

May 6, 1970

Dec. 6, 1971

Nov. 24, 1972

Jan. 3, 1974

70
50
70

80
60
80

65
50
65

55
50
55

65
50
65

50
50
50

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




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

Policy Instruments
1.17

All

F E D E R A L RESERVE O P E N M A R K E T TRANSACTIONS
Millions of dollars
1977
Type of transaction

1974

1975

1976

11,660
5,830
4,550

11,562
5,599
26,431

14,343
8,462
2 5,017

May

June

July

Aug.

Sept.

Oct.

Nov.

U.S. GOVT. SECURITIES
Outright transactions (excl. matched salepurchase transactions)
1
2
3

Treasury bills:
Gross purchases.
Gross sales
Redemptions
Others within 1 year: 1
Gross purchases
Gross sales
Exchange, or maturity shift.
Redemptions

681
489
400

2,696
1,154
600

118
753
500

812
176

238

2,321

3,886

472

-4
3,549

792

-1,209

478

320

-865

-478'

-238

-1,664

-320

1,877

2,616

89

450
,183
131

2,005
303
317

-45
2,500

8
9
10

1 to 5 years:
Gross purchases
Gross sales
Exchange, or maturity shift.

797

2 3,284

-697

3,854

2 3,202
177
-2,588

11
12
13

5 to 10 years:
Gross purchases
Gross sales
Exchange, or maturity shift.

434

1,510

1,048

1,675

-4,697

1,572

14
15
16

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

196

1,070

642

205

848

225

900

17
18
19

All maturities: 1
Gross purchases.
Gross sales
Redemptions

13,537
5,830
4,682

221,313
5,599
29,980

219,707
8,639
25,017

681
489
400

3,167
1,154
600

118
753
500

812

176

5,526
303
317

1,877
2,500

681

200

45

96

68
,174
114

128
125

20
21

Matched sale-purchase transactions
Gross sales
Gross purchases

64,229

62,801

151,205
152,132

196,078
196,579

28,532
27,306

36,258
36,449

27,947
27,301

45,831
46,170

39,552
39,694

48,204
44,772

22
23

Repurchase agreements
Gross purchases
Gross sales

71,333
70,947

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

29,308
30,448

14,748
11,506

13,973
15,719

4,397
5,648

16,700
15,469

9,578
11,889

-2,573

4,845

-3,528

-276

6,279

-10,118

24

Net change in U.S. Govt, securities

1,984

7,434

9,087

3,087

F E D E R A L A G E N C Y OBLIGATIONS
Outright transactions:
Gross purchases
Gross sales
Redemptions
Repurchase agreements:
28
Gross purchases
29
Gross sales
25
26
27

1,616

891

322

246

169

33

-69

25

23,204
22,735

15,179
15,566

10,520
10,360

2,164
2,278

1,656
1,056

1,672
1,938

265
459

,136
978

741
1,051

511
420

163
-35

-545
410

-45
-729

—15
528

-24
-204

-15
-247

351

-4
-478

6,149

8,539

9,833

-3,461

6,305

-4,020

-801

6,764

-10,910

380

BANKERS ACCEPTANCES
30 Outright transactions, n e t . . .
31 Repurchase agreements, n e t .
32 Net change in total System Account.

1 Both gross purchases and redemptions include special certificates
created when the Treasury borrows directly f r o m the Federal Reserve,
as follows (millions of dollars): 1974, 131; 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 other figures increase such holdings.
Details may not add to totals because of rounding.

A12
1.18

DomesticNonfinancialStatistics • January 1978
FEDERAL RESERVE BANKS

Condition and F.R. N o t e Statements

Millions of dollars

Account
Nov. 30

Dec. 7

Wednesday

End of month

1977

1977

Dec. 14

Dec. 21 p

Dec. 28p

Oct.

Nov.

Dec.p

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

11,595
1,200

11,658
1,200

11,718
1,200

11,718
1,200

11,718
1,250

11,595
1,200

11,595
1,200

11,718
1,250

3

Coin 1

289

291

294

290

281

310

289

282

4

Loans:
Member bank borrowings

926

588

1,238

1,038

1,909

923

926

266

Acceptances:

8

10
12
13
14
15

Federal agency obligations:
Bought outright
U.S. Govt, securities
Bought outright:
Bills
Other
Notes
Bonds
Total 2

248

294

469

734

248

954

7,329
131

7,329
50

7,305

7,305
246

8,013
812

7,329

7,329
131

8,004
451

36,081

39,428

36,200

40,231

41,706

36,240

36,081

41,561

49,616
8,741
94,438
2,039

49,6i6
8,741
97,785
629

49,616
8,741
94,557

50,509
8,848
99,588
2,389

50,509
8,848
101,063
4,619

49,856
8,501
94,597

49,616
8,741
94,438
2,039

50,509
8,848
100,918
1,901

17 Total U.S. Govt, securities

96,477

98,414

94,557

101,977

105,682

94,597

96,477

102,819

18 Total loans and securities

105,111

106,675

103,100

111,035

117,150

102,849

105,111

112,494

11,123
383

11,445
380

13,287
383

14,500
384

13,222
377

8,513
381

11,109
383

9,455
378

16
1,720

14
1,820

19
1,782

14
1,926

16
2,010

18
2,165

16
1,720

18
2,046

131,437

133,483

131,783

141,067

146,024

127,031

131,423

137,641

19 Cash items in process of collection
20 Bank premises
Other assets:
21
Denominated in foreign currencies
22
All other
23

Total assets
LIABILITIES
F.R. notes
Deposits:
Member bank reserves
U.S. Treasury—General account
Foreign
Other 3

91,229

91,812

92,382

92,967

93,718

88,380

91,229

93,153

25
26
27
28

26,345
2,562
416
719

26,871
4,276
244
690

25,344
2,744
291
704

27,978
8,201
285
531

31,916
7,664
327
630

22,841
6,398
425
715

26,345
2,562
416
719

26,709
7,114
379
1,187

29

Total deposits

30,042

32,081

29,083

36,995

40,537

30,379

30,042

35,389

6,491
1,130

6,266
1,150

6,810
1,212

7,445
1,232

7,867
1,341

4,568
1,127

6,477
1,130

5,807
1,234

128,892

131,309

129,487

138,639

143,463

124,454

128,878

135,583

1,025
983
537

1,025
983
166

1,025
983
288

1,027
983
418

1,027
983
551

1,022
983
572

1,025
983
537

1,029
1,029

131,437

133,483

131,783

141,067

146,024

127,031

131,423

137,641

74,208

75,006

75,852

76,339

76,347

68,768

74,208

76,055

24

30 Deferred availability cash items
31

Other liabilities and accrued dividends

32

Total liabilities

33
34
35

Capital
Surplus paid in
Other capital accounts

36

Total liabilities and capital accounts

37

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

CAPITAL ACCOUNTS

Federal Reserve note statement
F.R. notes outstanding (issued to Bank)
Collateral held against notes outstanding:
Gold certificate account
Special Drawing Rights certificate account....
Acceptances
U.S. Govt, securities

96,398

96,931

97,528

98,190

99,479

94,288

96,398

100,534

39
40
41
42

11,591
855

11,654
855

11,714
855

11,714
855

11,713
873

11,590
855

11,591
855

11,714
880

84,795

85,535

86,335

87,485

88,685

83,185

84,795

89,675

43

Total collateral

97,241

98,044

98,904

100,054

101,271

95,630

97,241

102,269

38

1 Effective Jan. 1, 1977, Federal Reserve notes of other Federal Reserve
Banks
were merged into the liability account for Federal Reserve notes.
2
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.
3 Includes certain deposits of domestic nonmember banks and foreign-




owned banking institutions voluntarily held with member banks and
redeposited in full with F.R. Banks.
NOTE.—Beginning Jan. 1, 1977, "Operating equipment" was transferred
to "Other assets."

Reserve Banks
1.19

F E D E R A L RESERVE B A N K S

A13

Maturity Distribution of Loan and Security Holdings

Millions of dollars
Wednesday

End of m o n t h

1977

1977

Type and maturity
Nov. 30

Dec. 7

1 Loans
Within 15 days
2
3
16 days to 90 d a y s .
4
91 days to 1 y e a r . .

925
895
30

588
548
40

5 Acceptances
6
Within 15 days
7
16 days to 90 d a y s .
8
91 days to 1 y e a r . . .

248
248

294
294

U.S. Govt, securities
Within 15 days 1
16 days to 90 days
91 days to 1 year
Over 1 year to 5 y e a r s . . ,
Over 5 years to 10 years.
Over 10 years

96,477
3,950
18,203
30,255
26,888
10,222
6,959

98,414
4,891
20,064
29.390
26,888
10,222
6,959

16 Federal agency obligations.,
17
Within 15 days i
18
16 days to 90 days
19
91 days to 1 year
20
Over 1 year to 5 years. . .
21
Over 5 years to 10 years.
22
Over 10 years

7,460
292
291
836
3,726
1,492
823

7,379
149
343
846
3,726
1,492
823

Dec. 14

Dec. 28

Dec. 21

1,236
1,206
30

Oct. 31

Nov. 30

922
883
39

1,038
1,028
10

1,909
1,904
5

469
469

734
734

94,557
2,203
17,842
30,443
26,888
10,222
6,959

101,977
6,363
19,962
30,681
27,516
10,388
7,067

105,682
9,496
18,885
32,330
27,516
10,388
7,067

94,597
4,197
14.222
30,757
28,155
10,547
6,719

96,477
3,950
18,203
30,255
26,888
10,222
6,959

7,305
9
503
749
3,763
1,469
812

7,551
344
423
740
3,763
1,469
812

8,825
910
423
740
4,149
1,646
957

7,329
42
379
841
3,752
1,492
823

7,460
292
291
836
3,726
1,492
823

925
895
30
248
248

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

1.20

B A N K DEBITS A N D DEPOSIT T U R N O V E R
Debits are shown in billions of dollars. Monthly data are at annual rates
1977
Bank group, or type
of customer

1974

1975

1976
Aug.r

July
Debits to demand deposits
1 All commercial banks
2 M a j o r New York City b a n k s . .
3 Other banks

22,937.8
8,434.8
14,503.0

25,028.5
9,670.7
15,357.8

29,180.4
11,467.2
17,713.2

34.336.2
13,504.9
20.831.3
3

356.7
45.8
310.8

348.6
40.8
307.8

99.0
321.6
70.6

105.3
356.9
72.9

116.8
411.6
79.8

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 orders of withdrawal (NOW) accounts and special
club accounts, such as Christmas and vacation clubs.




1.6
4.0
1.5

2

3

36,253.8
14,389.1
21,864.7

36,995.3
14,975.5
22,019.8

36,754.0
14,216.3
22,537.7

346.1
48.3
297.8

360.7
49.2
311.4

335.6
45.9
289.7

134.6
534.0
89.2

134.5
524.4
91.6

1.7
4.5
1.5

1.6
4.2
1.4

(seasonally adjusted)

134.2
519.4
89.8

128.1
479.9
86.8

Nov.

(not seasonally adjusted)

Demand deposit turnover
7 All commercial banks
8 M a j o r New York City b a n k s . .
9 Other banks

Oct.r

(seasonally adjusted)

35,877.5
14,357.1
21,520.4

Debits to savings deposits
4 All customers
5 Business 1
6 Others

2

Sept. r

134.7
533.8
90.3

(not seasonally adjusted)
1.7
4.4
1.5

1.6
4.5
1.5

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

A14
1.21

DomesticNonfinancialStatistics • January 1978
M O N E Y STOCK MEASURES A N D COMPONENTS
Billions of dollars, averages of daily figures

1973
Dec.

1974
Dec.

1975
Dec.

Item

1977

1976
Dec.
June

July

Aug.

Sept.

Oct.

Nov.

328.4
787.7
1,329.5
850.9
1,392.7

330.4
792.9
1,343.1
856.2
1,406.3

333.7
799.6
l,357.1
865.9
r
l,423.5

333.2
802.6
1,365.3
873.5
1,436.2

Seasonally adjusted
MEASURES i
M-l
M-2
M-3
M-4
M-5

1
2
3
4
5

270.5
571.4
919.6
634.4
982.5

283.1
612.4
981.5
701.4
1,070.5

294.8
664.3
1.092.6
746.5
1.174.7

312.4
740.3
1,237.1
803.5
1,300.3

321.9
772.8
1,299.5
836.8
1,363.5

326.8
783.5
1,316.9
846.3
1,379.8

r

COMPONENTS
6 Currency
Commercial bank deposits:
7
Demand
8
Time and savings
9
Negotiable C D ' s 2
10
Other

61.5

67.8

73.7

80.5

84.0

85.1

85.5

86.4

87.1

87.8

209.0
363.9
63.0
300.9

215.3
418.3
89.0
329.3

221.0
451.7
82.1
369.6

231.9
491.1
63.3
All .9

238.0
514.8
63.9
450.9

241.7
519.5
62.8
456.7

242.9
522.5
63.2
459.3

244.0
525.8
63.2
462.6

246.6
532.2
66.4
465.9

245.5
540.3
70.9
469.4

11 Nonbank thrift institutions 3

348.1

369.1

428.3

496.8

526.7

533.5

541.7

550.2

557.5

562.7

325.2
784.4
1,326.6
848.8
1,391.1

328.2
788.9
1,337.1
854.3
1,402.6

332.5
796.4
1,350.6
864.7
1,419.0

335.3
799.9
1,357.3
871.5
1,428.9

r

N o t seasonally adjusted
MEASURES i
12
13
14
15
16

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

278.3
576.5
921.8
640.5
985.8

291.3
617.5
983.8
708.0
1,074.3

303.2
669.3
1,094.3
752.8
1,177.7

321.3
745.3
1,237.9
809.5
1,302.1

321.4
774.5
1,305.7
837.5
1,368.7

327.2
784.0
1,322.1
846.8
1,384.9

COMPONENTS
17 Currency
Commercial bank deposits:
18
Demand
19
Member
20
Domestic nonmember
21
Time and savings
22
Negotiable C D ' s 2
23
Other
24 N o n b a n k thrift institutions 3
25 U.S. Govt, deposits (all commercial
banks)
1

62.7

69.0

75.1

82.0

84.2

85.7

85.8

86.1

86.9

88.4

215.7
156.5
56.3
362.2
64.0
298.2

222.2
159.7
58.5
416.7
90.5
326.3

228.1
162.1
62.6
449.6
83.5
366.2

239.3
168.5
67.3
488.2
64.3
423.9

237.1
165.1
68.3
516.1
63.0
453.2

241.4
167.7
69.5
519.6
62.8
456.9

239.3
166.3
69.1
523.7
64.5
459.2

242.1
167.5
70.4
526.1
65.4
460.7

245.6
110.0
11.3
532.2
68.3
463.8

246.9
170.2
72.4
536.2
71.6
464.6

345.3

366.3

424.9

492.6

531.1

538.1

542.3

548.2

554.3

557.4

6.3

4.9

4.1

4.7

5.2

3.9

3.7

5.4

4.1

3.8

Composition of the money stock measures is as follows :

M - l : Averages of daily figures for (1) demand deposits at commercial
banks other than domestic interbank and U.S. Govt., less cash items in
process of collection and F.R. float; (2) foreign demand balances at F.R.
Banks; and (3) currency outside the Treasury, F.R. Banks, and vaults
of commercial banks.
M - 2 : M - l plus savings deposits, time deposits open account, and time
certificates of deposit (CD's) other than negotiable C D ' s of $100,000 or
more of 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 C D ' s .
M - 5 : M-3 plus large negotiable C D ' s .
For a description of the latest revisions in the money stock measures
see "Money Stock Measures: Revision" in the March 1977 BULLETIN, pp.
305 and 306.
Latest monthly and weekly figures are available from the Board's H.6
release. Back data are available from the Banking Section, Division of
Research
and Statistics.
2
Negotiable time C D ' s issued in denominations of $100,000 or more
by large weekly reporting commercial banks.
3
Average of the beginning- and end-of-month figures for deposits of
mutual savings banks, for savings capital at savings and loan associations,
and for credit union shares.

NOTES TO TABLE 1.23:
1
Adjusted to exclude domestic commercial interbank loans.
2
Loans sold are those sold outright to banks' own foreign branches,
nonconsolidated nonbank affiliates of the bank, the banks' holding
company (if not a bank), and nonconsolidated nonbank subsidiaries of
the holding company. Prior to Aug. 28, 1974, the institutions included
had been defined somewhat differently, and the reporting panel of banks
was also different. On the new basis, both "Total loans" and " C o m mercial and industrial loans" were reduced by about $100 million.
3
Reclassification of loans reduced these loans by about $1.2 billion
as of Mar. 31, 1976.
4
D a t a 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.
5
As of Dec. 31, 1977, commercial and industrial loans were reduced
by $300 million as the result of loan reclassifications at one large bank.
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

A G G R E G A T E RESERVES A N D DEPOSITS

A15

Member Banks

Billions of dollars, averages of daily figures
1977

1976
1973
Dec.

Item

1975
Dec.

1974
Dec.

May

Dec.

June

July

Aug.

Sept.

Oct.

Nov.

Seasonally adjusted

2
Nonborrowed
3
Required
4 Deposits subject to reserve requirements
Time and savings
5
Demand:
6
Private
7
U.S. Govt

2

34.94
33.64
34.64
442.3
279.2

36.60
35.87
36.34
486.2
322.1

34.73
34.60
34.47
505.4
337.9

34.95
34.90
34.68
529.6
355.0

34.72
34.52
34.51
537.6
363.1

34.86
34.60
34.71
544.5
367.0

35.35
35.03
35.08
547.7
369.2

35.64
34.58
35.44
551.4
370.8

35.63
35.00
35.42
552.9
372.4

35.90
34.59
35.69
559.4
377.1

36.01
35.15
35.76
564,6
383.5

158.1
5.0

160.6
3.5

164.5
3.0

171.4
3.2

172.3
2.1

173.8
3.7

175.8
2.8

177.0
3.6

176.9
3.7

179.0
3.3

177.6
3.5

N o t seasonally adjusted
8 Deposits subject to reserve requirements
Time and savings
9
Demand:
10
Private
11
U.S. Govt

2

447.5
278.5

491.8
321.7

510.9
337.2

534.8
353.6

535.8
364.7

544.5
367.8

547.6
369.5

548.3
371.7

552.1
373.0

558.2
377.5

562.1
380.7

164.0
5.0

166.6
3.4

170.7
3.1

177.9
3.3

168.5
2.5

173.0
3.7

175.6
2.6

174.1
2.5

175.2
3.8

178.0
2.7

178.7
2.6

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

1.23

LOANS 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 f r o m domestic commercial banks.
NOTE.—Back data and estimates of the impact on required reserves
and changes in reserve requirements are shown in Table 14 of the Board's
Annual Statistical Digest, 1971-1975.

All Commercial Banks

Billions of dollars; last Wednesday of m o n t h except for June 30 and Dec. 31

1973
Dec. 31

1974 4
Dec. 31

1977
1975
Dec. 31

1976
Dec. 31
July 27

Category

V

Aug. 31 Sept. 28
V

V

Oct. 26
V

Nov. 30 Dec. 31
V

V

Seasonally adjusted
1 Loans and investments 1
2
Including loans sold outright 2

633.4
637.7

690.4
695.2

721.1
725.5

784.4
788.2

837.0
841.1

845.6
849.7

848.4
852.4

857.9
862.0

866.1
870.5

865.4
870.0

3
4
5
6

Loans:
Total
Including loans sold outright 2
Commercial and industrial 3,5
Including loans sold outright 2,3} 5

449.0
453.3
156.4
159.0

500.2
505.0
183.3
186.0

496.9
501.3
176.0
178.5

538.9
542.7
179.5
181.9

579.0
583.1
192.4
195.2

587.0
591.1
194.6
197.4

592.2
596.2
195.1
197.9

602.5
606.6
199.3
202.2

611.2
615.6
201.6
204.7

612.9
617.5
202.2
205.5

7
8

Investments:
U.S. Treasury
Other

54.5
129.9

50.4
139.8

79.4
144.8

97.3
148.2

103.6
154.4

103.1
155.5

100.1
156.1

97.8
157.6

95.0
159.9

93.5
159.0

N o t seasonally adjusted
9 Loans and investments 1
Including loans sold outright
10

647.3
651.6

705.6
710 f 4

737.0
741.4

801.6
805.4

834.2
838.3

842.8
846.9

848.4
852.4

856.1
860.2

866.4
870.8

884.5
889.1

11
12
13
14

Loans: 1
Total
Including loans sold outright 2
Commercial and industrial 3,5
Including loans sold outright 2 ,3 5 5

458.5
462.8
159.4
162.0

510.7
515.5
186.8
189.5

507.4
511.8
179.3
181.8

550.2
554.0
182.9
185.3

579.9
584.0
192.4
195.2

588.2
592.3
193.6
196.4

594.0
598.0
195.5
198.3

601.3
605.4
198.6
201.5

610.1
614.6
200.8
203.9

625.7
630.3
206.0
209.3

15
16

Investments :
U.S. Treasury
Other

58.3
130.6

54.5
140.5

84.1
145.5

102.5
148.9

100.0
154.3

99.4
155.2

98.5
155.9

97.7
157.1

97.9
158.4

98.9
159.8

F o r notes see bottom of opposite page.




A16
1.24

DomesticNonfinancialStatistics • January 1978
C O M M E R C I A L B A N K ASSETS A N D LIABILITIES

Last-Wednesday-of-Month Series

Billions of dollars except for number of banks
19773

1976
Account

Dec. 3

Mar.

Apr.

May

June

JulyP

Aug.f

Sept.f

Oct.?

Nov.p

Dec.?

All commercial
!
2

846.4
594.9

844.6
590.9

852.2
595.8

860.4
604.6

877.5
621.9

875.0
620.7

886.8
632.2

891.4
637.1

897.7
642.9

915.0
658.7

931.6
673.4

3
4

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

102.5
148.9

105.0
148.7

103.4
153.0

102.4
153.4

101.6
154.1

100.0
154.3

99.4
155.2

98.5
155.9

97.7
157.1

97.8
158.4

98.9
159.3

5
6
7
8
9

Cash assets
Currency and coin
Reserves with F.R. B a n k s . . .
Balances with banks
Cash items in process of collection..

136.1
12.1
26.1
49.6
48.4

123.6
13.0
26.9
42.6
41.1

123.6
13.4
28.2
41.0
41.0

120.6
13.1
24.0
42.4
41.0

139.1
12.7
25.5
47.4
53.4

126.9
13.5
27.2
42.4
43.9

135.5
13.7
28.2
45.3
48.3

128.7
13.9
30.0
42.7
42.1

129.4
13.9
28.3
44.4
42.8

138.8 C
14.7
26.3
46.8
51.0

150.1
15.8
32.1
48.8
53.5

1,030.7

1,023.7

1 , 0 3 2 . 3 1,036.2

1,074.2

1,117.5

1,145.4

838.2

820.5

823.7

824.4

861.9

843.2

857.6

852.1

858.8

883.5

908.5

45.4
3.0
288.4

38.0
3.1
264.0

34.2
7.4
269.1

35.7
3.6
264.3

46.5
2.8
288.1

38.2
3.8
273.9

39.6
2.5
285.1

37.1
8.0
272.5

37.5
3.6
279.4

41.8
4.7
293.2

43.7
7.2
307.0

9.2
492.2

8.9
506.6

8.6
504.4

8.5
512.3

8.9
515.6

8.3
519.0

8.0
522.6

8.3
526.1

8.5
529.9

9.0
534.8

9.6
541.1

80.2
78.1

85.4
77.3

89.4
77.7

89.0
78.2

88.2
81.8

94.8
79.6

96.5
80.1

96.8
80.5

101.0
81.4

107.1
81.6

14,671

14,685

14,690

14,695

14,718

14,713

14,724

14,718

14,718

14,718

10

Total assets/total
capital 1

11

15
16

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

17
18

Borrowings
Total capital accounts 2

19

MEMO: Number of banks

12
13
14

liabilities

and
1 , 0 5 9 . 3 1 , 0 7 9 . 7 1 , 0 7 6 . 7 1,083.9

92.2
79.0 C
14,709
Member

20
21

620.5
442.9

611.7
434.5

614.7
435.9

620.1
441.5

632.8
453.4

628.9
451.3

637.9
459.9

640.8
463.0

645.2
467.1

658.6
479.0

670.8
489.9

22
23

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

74.6
103.1

74.9
102.2

73.0
105.8

72.6
106.0

72.6
106.7

70.8
106.8

70.5
107.5

69.6
108.3

68.9
109.3

69.2
110.3

111.1

24
25
26
27
28

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

108.9
9.1
26.0
27.4
46.5

100.0
9.6
26.9
24.0
39.5

99.4
9.9
28.2
21.9
39.4

95.7
9.7
24.0
22.6
39.3

110.6
9.3
25.6
24.4
51.3

101.2
9.9
27.2
22.0
42.1

108.6
10.0
28.2
24.0
46.4

103.1
10.2
30.0
22.5
40.4

102.3
10.2
28.3
22.8
41.0

110.6
10.8
26.3
24.7
48.9

121.7
11.7
32.1
26.6
51.3

29

Total assets/total
capital 1

772.9

759.7

762.7

763.9

795.2

780.1

796.3

793.2

796.5

823.9

847.0

30

618.7

598.0

597.7

597.4

628.7

611.0

622.2

617.0

620.9

641.8

660.8

42.4
2.1
215.5

35.3
2.1
195.8

31.6
5.9
198.9

32.9
2.7
195.1

43.4
2.0
213.9

35.3
2.8
202.2

36.6
1.7
211.0

34.3
6.4
200.3

34.6
2.6
205.3

38.7
3.6
216.4

40.4
5.3
226.3

34
35

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

7.2
351.5

6.9
357.8

6.6
354.7

6.5
360.3

6.9
362.5

6.3
364.4

6.0
366.9

6.3
369.6

6.5
372.0

6.8
376.2

7.4
381.4

36
37

Borrowings
Total capital accounts 2

71.7
58.6

75.3
58.1

78.1
58.3

77.5
58.7

77.0
60.8

80.4
59.4

82.5
59.9

84.0
60.2

83.8
60.6

87.8
61.2

93.4
61.4

38

MEMO: Number of banks

5,759

5,739

5,726

5,708

5,721

5,701

5,676

5,692

5,686

5,686

5,680

31
32
33

liabilities

and

1
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.




69.9

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, but excluding one national bank in Puerto Rico and one in the Virgin Islands.
Member banks: The following numbers of noninsured trust companies
that are members of the Federal Reserve System are excluded f r o m member banks in Tables 1.24 and 1.25 and are included with noninsured banks
in Table 1.25: 1974—June, 2; December, 3; 1975—June and December,
4; 1976 (beginning month shown)—July, 5, December, 7; 1977-January, 8.

Commercial Banks
1.25

C O M M E R C I A L B A N K ASSETS A N D LIABILITIES

A17

Call-Date Series

Millions of dollars except for number of banks
1975

1976

1977

1975

June 30

Dec. 31

1976

1977

Account
June 30

Dec. 31

Dec. 31

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

7

Total assets/total liabilities 1

8

June 30

Dec. 31

June 30

National (all insured)

762,400

773,701

827,692

854,736

441,135

443,959

476,602

488,240

535,170
2

()

539,021
520,976

578,710
560,062

601,141
581,163

315,738
2

315,628
305,280

340,679
329,968

351,311
339,955

83,629
143,602
128,256

90,947
143,731
124,072

101,463
147,517
129,581

100,566
153,029
130,724

46,799
78,598
78,026

49,688
78,642
75,488

55,729
80,193
76,074

53,346
83,582
74,641

944,654

942,519 1,004,001 1,040,952

553,285

548,702

583,315

599,743

775,209

776,957

825,010

847,373

447,590

444,251

469,378

476,381

()

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

3,108
40,259
276,384

4,622
37,502
265,671

3,020
44,068
285,201

2,817
44.965
284,544

1,788
22,305
159,840

2,858
20,329
152,383

1,674
23,148
163,347

1,632
22,876
161,358

10,733
444,725

9,406
459,753

8,249
484,470

7,721
507.323

7,302
256,355

5,532
263,147

4,909
276,298

4,599
285,915

14 Borrowings
15 Total capital accounts

56,775
68,474

63,828
68,988

75,302
72,065

81,157
75,503

40,875
38,969

45,187
39,501

54,420
41,323

57,283
43,142

16

14,372

14,373

14,397

14,425

4,741

4,747

4,735

4,701

9
10
11
12
13

MEMO: Number of banks

State member (all insured)

Insured nonmember

17 Loans and investments, gross
Loans:
Gross
Net
Investments:
20
U.S. Treasury securities
21
Other
22 Cash assets

137,620

136,915

144,000

144,597

183,645

192,825

207,089

221,898

100,823
2

98,889
96,037

102.277
99;474

102,144
99,200

118,609
2

124,503
119,658

135,753
130,618

147,685
142,008

14,720
22,077
30,451

16,323
21,702
30,422

18,849
22,873
32,859

19,296
23,157
35,918

22,109
42,927
19,778

24,934
43,387
18,161

26,884
44,450
20,647

27,923
46,288
20,164

23

180,495

179,649

189,578

195,455

210,874

214,167

231,106

245,753

24

143,409

142,061

149,491

152,471

184,210

190,644

206,140

218,519

467
16,265
50,984

869
15,833
49,659

429
19,295
52,204

371
20,568
52,571

853
1,689
65,560

894
1,339
63,629

917
1,624
69,649

813
1,520
70,615

2,712
72,981

3,074
72,624

2,384
75,178

2,134
76,826

719
115,389

799
123,980

956
132,993

988
144,581

30
31

12,771
13,105

15,300
12,791

17,310
13,199

19,718
13,441

3,128
16,400

3,339
16,696

3,571
17,543

4,155
18,919

32

1,046

1,029

1,023

1,019

8,585

8,597

8,639

8,705

18
19

25
26
27
28
29

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

()

()

Total nonmember

Noninsured nonmember
33

13,674

15,905

18,819

22,940

197,319

208,730

225,909

244,839

11,283
2

13,209
13,092

16,336
16,209

20,865
20,679

129,892
2

137,712
132,751

152,090
146,828

168,551
162,687

36
37
38

Loans and investments, gross
Loans:
Gross
Net
Investments:
U.S. Treasury securities
Other
Cash assets

490
1,902
5,359

472
2,223
4,362

1,054
1,428
6,496

993
1,081
8,330

22,599
44,829
25,137

25,407
45,610
22,524

27,939
45,879
27,144

28,917
47,370
28,494

39

Total assets/total liabilities

20,544

21,271

26,790

33,390

231,418

235,439

257,897

279,143

11,323

11,735

13,325

14,658

195,533

202,380

219,466

233,177

6
1,552
2,308

4
1,006
2,555

4
1,277
3,236

8
1,504
3,588

859
3,241
67,868

899
2,346
66,184

921
2,901
72,885

822
3,025
74,203

1,291
6,167

1,292
6,876

1,041
7,766

1,164
8,392

2,010
121,556

2,092
130,857

1,997
140,760

2,152
152,974

3,449
651

3,372
663

4,842
818

7,056
893

6,577
17,051

6,711
17,359

8,413
18,361

11,212
19,813

261

270

275

293

8,846

8,867

8,914

8,998

34
35

40
41
42
43
44
45

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

46
47

Borrowings
Total capital accounts

48

MEMO: Number of banks
1
Includes items not shown separately.
2 Not available.




()

For Note see Table 1.24.

()

A18
1.26

DomesticNonfinancialStatistics • January 1978
COMMERCIAL B A N K ASSETS A N D LIABILITIES

Detailed Balance Sheet, June 30, 1977

Asset and liability items are shown in millions of dollars.
Member b a n k s 1
Asset account

All
Insured
commercial commercial
banks
banks

Large banks
Total
New York
City

1 Cash bank balances, items in process
2
Currency and coin
3
Reserves with F.R. 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. Govt, agencies
11
States and political subdivisions..
12
All other securities
13
Unclassified total

All other 2
City of
Chicago

Other
large

139,055
12,729
25,536
36,269
6,128
5,018
53,375

130,725
12,718
25,536
30,589
4,840
3,800
53,242

110,560
9,347
25,536
18,153
2,813
3,393
51,318

32,752
895
4,452
6,669
27
335
20,374

4,674
171
1,997
179
17
157
2,153

39,078
3,073
9,261
3,341
1,028
1,875
20,500

34,056
5,209
9,826
7,964
1,740
1,026
8,291

254,052
101,560
35,827
110,106
6,452
108

252,016
100,566
35,250
109,875
6,224
101

178,050
72,642
21,846
79,216
4,273
73

22,989
12,098
1,406
9,032
454

8,520
3,898
477
3,943
202

56,518
23,810
5,676
25,822
1,186
25

90,023
32,837
14,287
40,419
2,432
48

14
15
16
17
18
19

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

7,055
3,797
953
1,764
433
108

7,049
3,797
953
1,764
433
101

6,916
3,725
952
1,733
432
73

3,572
2,347
479
561
185

617
412
38
123
44

2,465
811
410
951
202
25

262
90
25
98
2
48

20
21
22
23
24

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

246,998
91,162
34,874
108,342
6,020

244,967
96,769
34,297
108,110
5,791

171,135
68,917
20,894
77,483
3,841

19,417
9,751
927
8,471
269

7,903
3,486
439
3,821
158

54,053
22,933
5,266
24,870
984

89,761
32,747
14,263
40,321
2,430

25 F.R. 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

1,618

1,580

1,332

287

100

499

446

44,318
37,469
4,342
2,507

40,759
34,098
4,304
2,358

32,986
26,504
4,219
2,264

2,962
1,509
735
718

1,431
1,255
137
40

18,636
14,502
2,728
1,406

9,958
9,239
618
101

577,689
13,610
6,553
557,525

560,382
13,558
6,420
540,405

420,469
9,182
5,119
406,169

71,053
579
1,213
69,261

21,812
85
324
21,403

156,134
2,980
1,866
151,289

171,469
5,538
1,716
164,216

9,218
2,412

2,017
437
9
1,016
920
46
874
96
16
80
555

40,619
6,761
302
23,733
22,541
3,557
18,984
1,192
81
1,110
9,823

59,666
4.525
2,800
35,182
33,644
2.526
31,118
1,539
16
1,463
17,158

4,179
1,128

13,592
4,196
1,008
2,501
822
5,065
2,734
1,760
3,385
57,632

3,024
684
290
605
204
1,240
241
939
10,493
44,527

142
55
731
695
36
64
26
38
118
750
1,156

30,887
24,797
8,342
1,586
7,156
5,810
1,346
4,040
2,233
1,807
3,674
6,090
5,526

49,319
39,415
19,303
2,516
3,441
2,639
803
6,849
3,781
3,068
7,306
9,904
3,260

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
1- to 4-family residences
FHA-insured or VA-guaranteed
Conventional
Multifamily residences
FHA-insured
Conventional
Secured by other properties

161,276
18,405
7,358
91,349
86,839
7,786
79,053
4,511
353
4,158
44,164

161,047
18,392
7,341
91,214
86,709
7,738
78,971
4,505
352
4,153
44,100

111,520
14,135
3,129
64,398
61,150
6,710
54,440
3,248
281
2,967
29,858

45
46
47
48
49
50
51
52
53
54

Loans to financial institutions
To REIT's and mortgage companies
To domestic commercial banks
To banks in foreign countries
To other depository institutions
To other financial institutions
Loans to security brokers and dealers
Other loans to purch./carry securities
Loans to farmers—except real estate
Commercial and industrial loans

40,151
9,247
4,573
10,383
1,257
14,691
10,436
4,142
25,642
192,715

33,371
9,234
2,470
6,165
1,241
14,261
10,180
4,135
25,620
183,767

31,419
8,819
1,911
6,014
13,490
9,943
3,425
14,157
149,361

10,625
2,870
497
2,624
73
4,561
5,664
374
153
36,383

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

Loans to individuals
Instalment loans
Passenger automobiles
Residential-repair/modernize
Credit cards and related plans
Charge-account credit cards
Check and revolving credit plans
Other retail consumer goods
Mobile homes
Other
Other instalment loans
Single-payment loans to individuals
All other loans

127,701
101,424
44,707
6,640
14,936
11,576
3,360
16,601
8,836
7,765
18,539
26,277
15,624

127,590
101,355
44,694
6,639
14,929
11,576
3,353
16,598
8,836
7,762
18,496
26,235
14,672

88,149
69,803
28,632
4,447
13,098
10,330
2,768
11,307
6,224
5,082
12,319
18,346
12,495

6,083
4,481
845
291
1,769
1,186
584
354
184
170
1,221
1,603
2,553

857,514

834,759

618,538

95,499

31,455

226,941

264,642

5,169
20,360
2,634
12,749
36,862

5,168
20,258
2,591
11,882
35,568

4,845
15,100
2,555
11,457
32,144

879
2,071
1,193
5,692
13,709

131
689
212
749
1,362

3,003
5,867
1,062
4,710
12,718

832
6,473
88
306
4,355

1,074,343

1,040,952

795,199

151,796

39,272

293,378

310,752

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

Direct lease financing
Fixed assets—Buildings, furniture, real e s t a t e . . . .
Investment in unconsolidated subsidiaries
Customer acceptances outstanding
Other assets

74 Total assets
F o r notes see opposite page.




1,126

18

4,466
4,045
582
3,463
422
108
314
2,322

116

284
27
2,624
1,303
353
126
10,819
1,860
1,110

Commercial Banks
1.26

A19

Continued

Member b a n k s 1
Liability or capital account

All
Insured
commercial commercial
banks
banks

Large banks
All o t h e r 2

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

City of
Chicago

Nonmember
banks1

Other
large

337,428
1,621

332,327
1,443

259,378
1,257

64,350
684

10,338
2

90,634
270

94,056
301

78,051
364

252,889
2,826
17,825
1,908
37,537
7,311
15,511

251,580
2,817
17,752
1,454
36,909
6.613
13,759

189,126
2,004
12,328
1,382
35,716
6,471
11,094

32,633
136
636
1,115
19,236
5,157
4,754

7,349
31
173
17
2,289
159
318

71,011
710
3,794
225
10,522
1,021
3,081

78,134
1,126
7,725
25
3,670
134
2,941

63,763
822
5,497
527
1,821
840
4,417

84 Time deposits
85
Accumulated for personal loan payments
86
Mutual savings banks
87
Other individuals, partnerships, and corporations
88
U.S. Govt
89
States and political subdivisions
90
Foreign governments, central banks, etc
91
Commercial banks in United States
92
Banks in foreign countries

308,831
134
363

299,840
134
346

217,098
108
332

32,405

12,921

136

67

74,985
10
100

96,787
98
30

91,733
26
30

242,952
752
46,541
9,590
6,358
2,142

237,078
752
46,212
7,967
5,770
1,582

170,322
602
31,715
7,635
4,934
1,449

24,043
68
1,372
4,254
1,694
838

9,454
46
981
1,520
736
118

57,628
272
13,134
1,797
1,774
270

79,197
216
16,230
65
730
223

72,630
150
14,826
1,955
1,423
693

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

215,772
200,240
10,072
61
5,331
67

215,206
199,697
10,056
61
5,325
67

152,378
141,252
7,289
52
3,725
60

11,746
10,714
603
4
394
32

3,145
2,880
219

56,133
52.234
3,076
25
782
17

81,353
75,425
3,391
24
2,504
9

63,394
58,988
2,783
9
1,606
7

99 Total deposits

862,031

847,373

628,853

108,501

26,405

221,751

272,196

233,178

79,167
42,487
9,397
27,283
9,047
807
13,407
28,093

75,397
39,624
9,374
26,399
5,761
804
12,536
18,248

71,547
37,861
8,979
24,707
5,455
572
12,111
15,854

17,045
7,203
1,639
8,203
1,914
57
6,337
5,256

8,277
5,437
1,454
1,386
45
16
750
1,000

36,363
20,513
4,973
10,877
3,030
297
4,717
6,256

9,862
4,707
914
4,241
467
201
307
3,342

7,620
4,626
418
2,576
3,592
235
1,296
12,239

992,552

960,118

734,392

139,110

36,493

272,415

286,374

258,160

5,393

5,330

4,223

1,118

82

1,881

1,142

1,170

76,397
77
16,719
30,211
27,608
1,782

75,503
71
16,623
29,728
27,365
1,717

56,584
28
12,084
21,794
21,492
1,187

11,568

2,698

2,496
4,290
4,744
38

570
1,298
776
53

19,082
2
3,850
7,839
6,994
396

23,236
26
5,167
8,367
8,978
699

19,813
48
4,635
8,418
6,116
595

1,074,343 1,040,952

795,199

151,796

39,272

293,378

310,752

279,144

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
C o m m o n stock
113
Surplus
114
Undivided profits
115
Other capital reserves
116 Total liabilities and equity capital
MEMO ITEMS:

46

117 Demand deposits adjusted 3
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

243,690

239,359

170,340

24,604

5,866

58,901

80,969

73,350

132,469

126,370

107,671

29,887

4,764

40,094

32,927

24,798

47,876
559,178
139,145
845,218

42,907
542,036
132.096
830,008

33,605
407,556
107,972
612,859

3,667
69,936
26,712
98,375

1,449
21,456
10,328
25,769

16,759
151,616
43,044
217,875

11,730
164,548
27,888
270,841

14,271
151,621
31,174
232,359

84,385
9,553

80,374
5,961

76,761
5,666

20,960
2,172

9,219
79

36,604
2,980

9,977
436

7,624
3,887

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

14,499
140,410
115,589
24,820

13,705
133,981
111,351
22,630

12,902
109,615
90,425
19,190

7,705
26,547
22,011
4,536

1,037
10,360
8,703
1,657

3,302
44,386
35,781
8,605

858
28,322
23,930
4,392

1,598
30,795
25,164
5,630

14,718

14,425

5,720

12

9

154

5,545

8,998

129 N u m b e r of banks

1 Member banks exclude and nonmember banks include 10 noninsured
trust companies that are members of the Federal Reserve System, and
member banks exclude 2 national banks outside the continental United
States.
.
2
Figures for one large national bank have been estimated due to a
merger.
3 D e m a n d deposits adjusted are demand deposits other than domestic
commercial interbank and U.S. Govt., less cash items reported as in
process of collection.




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. Holdings by type of security will be reported
as soon as they become available.
Back data in lesser detail were shown in previous BULLETINS. Details
may not add to totals because of rounding.

A20
1.27

DomesticNonfinancialStatistics • January 1978
A L L L A R G E WEEKLY REPORTING COMMERCIAL B A N K S

Assets and Liabilities

Millions of dollars, Wednesday figures
1977
Account

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

2
3
4
5
6
7
8
9

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

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

32
33

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

34
35
36
37
38
39

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

24
25
26
27
28
29
30
31

40 Total assets/total liabilities

Depots:

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

Demand deposits
Individuals, partnerships, and corporations.,
States and political subdivisions
U.S. Govt
Domestic interbank:
Commercial
Mutual savings
*
Foreign:
Governments, official institutions, etc
Commercial banks
Certified and officers' checks
Time and savings deposits3
Savings 4
Time:
Individuals, partnerships, and corporations
States and political subdivisions
Domestic interbank
Foreign govts., official institutions, etc

57 Federal funds purchased, etc. 5
Borrowings f r o m :
58
F.R. Banks
59
Others
60 Other liabilities, etc. 6
61 Total equity capital and
subordinated
notes/debentures 7

Nov. 9

Nov. 16

Nov. 23

Nov. 30

Dec. 7

Dec. 14

Dec. 21

Dec. 28p

447,608

446,312

437,552

443,635

446,345

448,160

451,360

450,843

32,396
23,143

29,011
19,937

23,006
17,926

26,613
19,483

27,539
21,475

27,699
19,305

27,005
20,858

26,288
20,346

5,116
111
3,420

5,991
549
2,534

2,629
487
1,964

3,927
577
2,626

3,638
548
1,878

5,352
705
2,337

3,163
782
2,202

2,828
859
2,255

313,018
123,600
4,771

314,132
123,103
4,750

311,361
123,049
4,732

313,744
123,573
4,678

314,102
124,076
4,659

315,986
123,908
4,649

319,644
125,567
4,668

320,282
125,655
4,700

2,340
8,779

2,547
9,125

1,088
8,467

1,486
8,968

1,827
8,758

2,122
9,288

1,598
9,730

949
10,151

82
2,631

88
2,603

87
2,612

95
2,618

97
2,625

105
2,606

103
2,615

104
2,622

7,659
15,447
72,779

7,523
15,398
73,104

7,549
15,261
73,287

7,835
15,450
73,444

7,851
15,475
73,248

7,742
15,673
73,655

8,164
15,561
73,935

8,070
15,747
74,047

2,188
6,340
44,579
1,411
20,412

2.466
6.467
44,708
1,405
20,845

2,122
5,988
44,935
1,426
20,758

2,107
5,957
45,131
1,423
20,979

2,083
6,160
45,239
1,402
20,602

2,213
6,068
45,715
1 444
20|798

2,579
6,213
45,993
1,544
21,374

2,455
6,267
46,281
1,496
21,738

9,435
303,583

9,462
304,670

9,505
301,856

9,447
304,297

9,518
304,584

9,544
306,442

9,532
310,112

9,450
310,832

44,859
8,003

45,927
8,617

45,522
8,414

45,659
8,191

46,726
8,849

46,535
8,954

46,381
9,067

46,081
9,017

8,312
24,047
4,497
66,770

8,240
24,677
4,393
66,704

8,358
24,540
4,210
67,168

8,389
24,928
4,151
67,066

8,330
25,577
3,970
67,496

8,339
25,290
3,952
67,484

8,408
24,974
3,932
67,862

8,557
24,634
3,873
67,642

9,438
42,773

9,145
42,876

8,961
42,896

8,833
42,907

9,224
43,037

8,900
43,067

8,799
43,087

8,747
43,164

2,090
12,469

2,083
12,600

2,167
13,144

2,211
13,115

2,264
12,971

2,342
13,175

2,452
13,524

2,491
13,240

40,629
17,049
5,929
15,387
2,881
59,723

45,147
17,541
6,192
14,115
2,901
56,100

41,741
23,649
5,881
13,782
2,869
57,032

44,187
19,179
6,702
14,524
2,922
58,524

38,067
20,663
6,141
15,302
2,895
57,852

43,962
19,029
6,558
15,062
2,867
58,177

43,624
21,074
6,590
17,170
2,871
57,691

46,900
24,823
7,110
16,425
2,871
58,844

589,206

588,308

582,506

589,673

587,265

593,815

600,380

607,816

190,196
130,289
5,926
962

189,124
136,525
6,575
1,867

178,276
129,971
6,221
1,207

189,514
135,815
6,235
2,707

181,511
132,220
5,629
1,205

190,687
138,502
6,136
1,327

194,702
138,631
6,279
3,304

199,384
142,795
6,261
3,676

36,977
972

27,685
945

25,710
881

29,389
819

27,038
850

27,794
783

29,427
805

29,261
860

1,139
6,228
7,703
244,027
92,953
151,074
115,334
21,929
4,771
7,461

1,094
6,854
7,579
244,956
92,650
152,306
116,117
22,071
4,792
7,783

1,300
6,051
6,935
246,720
92,550
154,170
117,406
22,446
4,993
7,751

1,253
6,076
7,220
246,729
92,274
154,455
117,674
22,360
5,121
7,746

1,495
6,573
6,501
248,092
92,288
155,804
118,630
22,561
5,300
7,767

1,280
6,927
7,938
249,649
92,004
157,645
119,772
23,067
5,541
7,714

1,506
6,952
7,798
251,152
91,766
159,386
120,732
23,478
5,689
7,995

1.942
7,626
6,963
251,314
91,739
159,575
121,119
23,303
5,731
7.943

78,839

78,065

78,536

76,397

81,226

76,798

77,887

79,293

376
5,192
26,343

172
5,190
26,630

2,669
5,372
26,770

626
5,122
26,876

415
5,172
26,409

1,051
5,533
25,679

830
5,328
26,138

1,512
5,416
26,415

44,233

44,171

44,163

44,409

44,440

44,418

44,343

44,482

1 Includes securities purchased under agreements to resell.
Federal agencies only.
3 Includes time deposits of U.S. Govt, and of foreign banks, which are
not shown separately.
4
For amounts of these deposits by ownership categories, see Table 1.30.
2




5 Includes securities sold under agreements to repurchase.
6
Includes minority interest in consolidated subsidiaries and deferred
tax portion of reserves for loans.
7
Includes reserves for securities and contingency portion of reserves
for loans.

Weekly Reporting Banks
1.28

L A R G E WEEKLY R E P O R T I N G C O M M E R C I A L B A N K S I N N E W Y O R K CITY

A21

Assets and Liabilities

Millions*of dollars, Wednesday figures
1977
Nov. 16

Nov. 23

Nov. 30

96,632

95,969

93,469

95,760

5,997
3,189

3,380
1,881

3,436
1,895

4,473
2,522

1,336
54
1,418

931

688

568

853

70,846
35,171
174

71,985
35,036
176

69,389
34,873
180

2,036
4,507

2,406
4,836

23
358

Nov. 9
1 Total loans and investments.
Loans:
Federal funds sold 1
To commercial banks
To brokers and dealers involving—
U.S. Treasury securities
Other securities
To others

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

Other, gross
Commercial and industrial
Agricultural
For purchasing or carrying securities:
To brokers and dealers:
U.S. Treasury securities
Other securities
To others:
U.S. Treasury securities.
Other securities
To nonbank financial institutions:
Personal and sales finance cos., etc
Other..
Real estate
To commercial banks:
Domestic
Foreign
Consumer instalment
Foreign governments, official institutions, etc.
All other loans
LESS : Loan loss reserve and unearned income
on loans
Other loans, net
Investments:
U.S. Treasury securities
Bills
Notes and bonds, by maturity:
Within 1 year
1 to 5 years
After 5 years
Other securities
Obligations of States and political
subdivisions:
Tax warrants, short-term notes, and bills.
All other
Other bonds, corporate stocks, and
securities:
Certificates of participation 2
All other, including corporate stocks

34
35
36
37
38
39

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

40 Total assets/total liabilities.
Deposits:
Demand deposits
Individuals, partnerships, and corporations..
States and political subdivisions
U.S. Govt
Domestic interbank:
Commercial
Mutual savings
Foreign:
Governments, official institutions, etc
Commercial banks
Certified and officers' checks
Time and savings deposits3
Savings 4
Time:
Individuals, partnerships, and corporations
States and political subdivisions
Domestic interbank
Foreign govts., official institutions, etc
57 Federal funds purchased, etc.5
Borrowings f r o m :
58
F.R. Banks
59
Others
60 Other liabilities, etc.6
61 Total equity capital and
subordinated
notes/debentures 7

Dec. 14

Dec. 21

Dec. 28*>

96,335

95,639

97,884

98,160

4,685
2,494

3,323
1,676

4,424
2,197

5,198
2,981

743

1,597

1,117

1,241

1,227

1,208

594

530

986

990

70,635
35,165
111

71,079
35,663
170

71,925
35,750
169

73,465
36,534
171

73,139
36,389
168

945
4,389

1,324
4,737

1,643
4,606

1,885
5,142

1,389
5,311

799
5,730

22
358

22
373

22
372

21
385

21
396

21
390

21
380

2,612
4,873
8,918

2,523
4,895
8,940

2,636
4,926
8,970

2,871
4,901
8,971

2,823
4,883
8,847

2,794
4,955
8,800

3,030
5,011
8,835

2,929
5,077
8,812

748
3,075
4,289
293
3,769

1,034
3,196
4,299
302
3,962

757
2,706
4,318
300
3,994

662
2,759
4,319
297
4,058

661
3,046
4,334
285
3,712

585
2,822
4,384
283
3,939

885
3,017
4,390
356
4,125

812
2,965
4,433
290
4,334

1,708
69,138

1,713
70,272

1,716
67,673

1,701
68,934

1,739
69,340

1,746
70,179

1,733
71,732

1,672
71,467

10,697
2,566

11,442
2,957

11,149
2,916

11,288
2,573

11,385
2,428

11,207
2,490

10,761
2,218

10,661
2,178

1,541
5,439
1,151
10,800

1,542
5,901
1,042
10,875

1,429
5,877
927
11,211

1,610
6,178
927
11,065

1,432
6,672
853
10,925

1,433
6,503
781
10,930

1,511
6,232
800
10,967

1,536
6,203
744
10,834

2,378
6,546

2,263
6,647

2,220
6,547

2,220
6,502

2,247
6,625

2,142
6,638

2,147
6,607

2,132
6,589

192
1,684

192
1,773

192
2,252

189
2,154

188
1,865

190
1,960

190
2,023

190
1,923

16,000
6,424
903
8,017
1,408
23,215

14,486
6,229
937
5,749
1,413
21,233

13,533
6,034
877
6,656
1,411
21,670

15,754
3,507
962
6,740
1,416
21,706

11,995
4,963
945
7,387
1,418
21,890

15,034
4,438
974
7,446
1,424
21,792

13,811
5,236
983
8,638
1,424
20,458

15,216
6,017
1,045
7,825
1,427
21,295

152,599

146,016

143,650

145,845

144,933

146,747

148,434

150,985

60,300
27,751
476
114

51,774
28,641
572
232

48,173
26,481
598
129

53,834
28,423
471
409

50,015
27,071
456
102

54,103
28,627
427
103

55,686
29,008
586
562

57,799
31,242
584
595

22,107
519

12,307
481

11,996
490

15,352
407

12,969
439

14,000
408

14,858
418

14,229
459

944
4,761
3,628
43,324
10,115
33,209
24,541
1,704
1,707
4,511

875
5,332
3,334
43,575
10,065
33,510
24,789
1,705
1,621
4,656

1,082
4,543
2,854
43,985
10,026
33,959
25,322
1,681
1,595
4,629

999
4,527
3,246
44,052
9,953
34,099
25,447
1,682
1,631
4,617

1,224
5,039
2,715
44,226
9,951
34,275
25,601
1,686
1,624
4,646

984
5,484
4,070
44,505
9,924
34,581
25,933
1,691
1,652
4,572

1,185
5,293
3,776
44y623
9,904
34,719
26,029
1,660
1.653
4.654

1,625
6,010
3,055
44,505
9,929
34,576
25,920
1,650
1,679
4,611

22,205

23,830

23,289

21,291

24,037

21,789

21,920

22,320

2,178
11,898

2,310
11,822

1,766
2,274
11,466

2,299
11,613

256
2,515
11,141

654
2,507
10,459

350
2,386
10,709

225
2,344
11,014

12,694

12,705

12,697

12,756

12,743

12,730

12,760

12,778

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




5
6

Dec. 7

Includes securities sold under agreements to repurchase.
Includes minority interest in consolidated subsidiaries and deferred
tax7 portion of reserves for loans.
Includes reserves for securities and contingency portion of reserves
for loans.

A22
1.29

DomesticNonfinancialStatistics • January 1978
L A R G E WEEKLY REPORTING C O M M E R C I A L B A N K S O U T S I D E N E W Y O R K CITY
Assets and Liabilities
Millions of dollars, Wednesday figures
1977
Account

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

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

32
33

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

34
35
36
37
38
39

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

24
25
26
27
28
29
30
31

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

Deposits:
Demand deposits
,
Individuals, partnerships, and corporations..
States and political subdivisions.
U.S. Govt
Domestic interbank:
Commercial
Mutual savings
Foreign:
Governments, official institutions, etc
Commercial banks
Certified and officers' checks
Time and savings
deposits3
,
Savings 4
Time:
Individuals, partnerships, and corporations
States and political subdivisions
Domestic interbank
Foreign govts., official institutions, etc

57 Federal funds purchased, etc. 5
Borrowings f r o m :
58
F. R. Banks
59. Others
60 Other liabilities, etc.6
61 Total equity capital and subordinated
notes/debentures 7

Nov. 9

Nov. 16

Nov. 23

Nov. 30

Dec. 7

Dec. 14

Dec. 21

Dec. 28 p

350,976

350,343

344,083

347,875

350,010

352,521

353,476

352,683

26,399
19,954

25,631
18,056

19,570
16,031

22,140
16,961

22,854
18,981

24,376
17,629

22,581
18,661

21,090
17,365

3,780
663
2,002

5,060
549
1,966

1,941
487
1,111

3,184
577
1,418

2,041
548
1,284

4,235
705
1,807

1,922
782
1,216

1,601
859
1,265

242,172
88,429
4,597

242,147
88,067
4,574

241,972
88,176
4,552

243,109
88,408
4,501

243,023
88,413
4,489

244,061
88,158
4,480

246,179
89,033
4,497

247,143
89,266
4,532

304
4,272

141
4,289

143
4,078

162
4,231

184
4,152

237
4,146

209
4,419

150
4,421

59
2,273

66
2,245

65
2,239

73
2,246

76
2,240

84
2,210

82
2,225

83
2,242

5,047
10,574
63,861

5,000
10,503
64,164

4,913
10,335
64,317

4,964
10,549
64,473

5,028
10,592
64,401

4,948
10,718
64,855

5,134
10,550
65,100

5,141
10,670
65,235

1,440
3,265
40,290
1,118
16,643

1,432
3,271
40,409
1,103
16,883

1,365
3,282
40,617
1,126
16,764

1,445
3,198
40,812
1,126
16,921

1,422
3,114
40,905
1,117
16,890

1,628
3,246
41,331
1,161
16,859

1,694
3,196
41,603
1,188
17,249

1,643
3,302
41,848
1,206
17,404

7,727
234,445

7,749
234,398

7,789
234,183

7,746
235,363

7,779
235,244

7,798
236,263

7,799
238,380

7,778
239,365

34,162
5,437

34,485
5,660

34,373
5,498

34,371
5,618

35,341
6,421

35,328
6,464

35,620
6,849

35,420
6,839

6,771
18,608
3,346
55,970

6,698
18,776
3,351
55,829

6,929
18,663
3,283
55,957

6,779
18,750
3,224
56,001

6,898
18,905
3,117
56,571

6,906
18,787
3,171
56,554

6,897
18,742
3,132
56,895

7,021
18,431
3,129
56,808

7,060
36,227

6,882
36,229

6,741
36,349

6,613
36,405

6,977
36,412

6,758
36,429

6,652
36,480

6,615
36,575

1,898
10,785

1,891
10,827

1,975
10,892

2,022
10,961

2,076
11,106

2,152
11,215

2,262
11,501

2,301
11,317

24,629
10,625
5,026
7,370
1,473
36,508

30,661
11,312
5,255
8,366
1,488
34,867

28,208
17,615
5,004
7,126
1,458
35,362

28,443
15,672
5,740
7,784
1,506
36,818

26,072
15,700
5,196
7,915
1,477
35,962

28,928
14,591
5,584
7,616
1,443
36,385

29,813
15,838
5,607
8,532
1,447
37,233

31,684
18,806
6,065
8,600
1 444
37',549

436,607

442,292

438,856

443,828

442,332

447,068

451,946

456,831

129,896
102,538
5,450
848

137,350
107,884
6,003
1,635

130,103
103,490
5,623
1,078

135,680
107,392
5,764
2,298

131,496
105,149
5,173
1,103

136,584
109,875
5,709
1,224

139,016
109,623
5,693
2,742

141,585
111,553
5,677
3,081

14,870
453

15,378
464

13,714
391

14,037
412

14,069
411

13,794
375

14,569
387

15,032
401

195
1,467
4,075
200,703
82,838
117,865
90,793
20,225
3,064
2,950

219
1,522
4,245
201,381
82,585
118,796
91,328
20,366
3,171
3,127

218
1,508
4,081
202,735
82,524
120,211
92,084
20,765
3,398
3,122

254
1,549
3,974
202,677
82,321
120,356
92,227
20,678
3,490
3,129

271
1,534
3,786
203,866
82,337
121,529
93,029
20,875
3,676
3,121

296
1,443
3,868
205,144
82,080
123,064
93,839
21,376
3,889
3,142

321
1,659
4,022
206,529
81,862
124.667
94,703
21,818
4,036
3,341

317
1,616
3,908
206,809
81,810
124,999
95,199
21,653
4,052
3,332

56,634

54,235

55,247

55,106

57,189

55,009

55,967

56,973

376
3,014
14,445

172
2,880
14,808

903
3,098
15,304

626
2,823
15,263

159
2,657
15,268

397
3,026
15,220

480
2,942
15,429

1,287
3,072
15,401

31,539

31,466

31,466

31,653

31,697

31,688

31,583

31,704

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




5
6

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

Weekly Reporting Banks

A23

1.30 LARGE WEEKLY REPORTING COMMERCIAL BANKS Balance Sheet Memoranda
Millions of dollars, Wednesday figures
1977

Account and bank group
Nov. 9

Nov. 16

Nov. 23

Nov. 30

Dec. 7

Dec. 14

Dec. 21

1
2
3

Total loans (gross) and investments, adjusted 1
Large banks
New York City banks
Banks outside New York City

431,712
94,403
337,309

433,371
94,767
338,604

427,009
92,533
334,476

431,492
94,277
337,215

432,305
94,919
337,386

436,186
95,124
341,062

437,455
96,535
340,920

4
5
6

Total loans (gross), adjusted
Large banks
New York City banks
Banks outside New York City

320,083
72,906
247,177

320,740
72,450
248,290

314,319
70,173
244,146

318,767
71,924
246,843

318,083
72,609
245,474

322,167
72,987
249,180

323,212
74,807
248,405

7
8
9

Demand deposits, adjusted 2
Large banks
New York City banks
Banks outside New York City

111,628
22,079
89,549

114,425
24,749
89,676

109,618
22,515
87,103

113,231
22,319
90,912

115,201
24,949
90,252

117,604
24,966
92,638

118,347
26,455
91,892

70,481
22,386
48,095

71,693
22,663
49,030

73,253
23,215
50,038

73,360
23,173
50,187

74,606
23,403
51,203

75,879
23,673
52,206

77,140
23,914
53,226

47,480
15,237
32,243

48,356
15,490
32,866

49,470
16,084
33,386

49,513
16,040
33,473

50,522
16,247
34,275

51,525
16,498
35,027

52,448
16,653
35,795

23,001
7,149
15,852

23,337
7,173
16,164

23,783
7,131
16,652

23,847
7,133
16,714

24,084
7,156
16,928

24,354
7,175
17,179

24,692
7,261
17,431

28,617
6,035
22,582

28,719
6,049
22,670

29,112
5,987
23,125

29,027
5,982
23,045

29,218
6,009
23,209

29,668
5,984
23,684

30,172
5,905
24,267

16,642
4,658
11,984

16,663
4,646
12,017

16,856
4,625
12,231

16,831
4,605
12,226

16,819
4,631
12,188

16,876
4,646
12,230

16,892
4,598
12,294

11,975
1,377
10,598

12,056
1,403
10,653

12,256
1,362
10,894

12,196
1,377
10,819

12,399
1,378
11,021

12,792
1,338
11,454

13,280
1,307
11,973

86,326
9,370
76,956

86,054
9,333
76,721

85,950
9,309
76,641

85,727
9,235
76,492

85,659
9,230
76,429

85,406
9,194
76,212

85,296
9,177
76,119

5,175
515
4,660

5,156
517
4,639

5,227
520
4,707

5,240
522
4,718

5,279
521
4,758

5,193
515
4,678

5,104
510
4,594

1,416
212
1,204

1,415
203
1,212

1,345
185
1,160

1,277
182
1,095

1,323
189
1,134

1,380
205
1,175

1,338
199
1,139

36

18

18

25
12
13

28
12
16

30
14
16

27
11
16

25
10
15

28
18
10

10
11
12
13
14
15
16
17
18

19
20
21
22
23
24
25
26
27

Large negotiable time3 CD's included in time and
savings deposits
Total:
Large banks
New York City
Banks outside New York City
Issued to IPC's:
Large banks
New York City Banks
Banks outside New York City
Issued to others:
Large banks
New York City banks
Banks outside New York City
All other large time deposits 4
Total:
Large banks
New York City banks
Banks outside New York City
Issued to IPC's:
Large banks
New York City banks
Banks outside New York City
Issued to others:
Large banks
New York City banks
Banks outside New York City

37
38
39

Savings deposits, by ownership category
Individuals and nonprofit organizations:
Large banks
New York City banks
Banks outside New York City
Partnerships and corporations for profit: 5
Large banks
New York City banks
Banks outside New York City
Domestic governmental units:
Large banks
New York City banks
Banks outside New York City
All other:6
Large banks
New York City banks
Banks outside New York City

40
41
42

Gross liabilities of banks to their foreign
branches
Large banks
NewJYork City banks
Banks outside New York City

4,955
2,679
2,276

5,018
3,011
2,007

4,575
3,304
1,271

4,100
3,257
843

5,089
2,932
2,157

4,929
3,324
1,605

5,058
3,489
1,569

43
44
45

Loans sold outright
to selected institutions by all
large banks 7
Commercial and industrial
Real estate
Allother

3,115
217
1,137

3,120
223
1,132

3,143
223

3,069
243
1,130

3,066
238
1,122

3,172
243
1,155

3,146
223
1,180

28
29
30
31
32
33
34
35
36

1 Exclusive of loans and Federal funds transactions with domestic
commercial
banks.
2
All demand deposits except U.S. Govt, and domestic commercial
banks,
less
cash
items in process of collection.
3
Certificates of deposit (CD's) issued in denominations of $100,000 or
more.
4
All other time deposits issued in denominations of $100,000 or more
(not included in large negotiable CD's).




1,128
5
6

Dec. 28*>

Other than commercial banks.
Domestic and foreign commercial banks, and official international
organizations.
7
To bank's own foreign branches, nonconsolidated nonbank affiliates of the bank, the bank's holding company (if not a bank), and
nonconsolidated nonbank subsidiaries of the holding company.

A24
1.31

DomesticNonfinancialStatistics • January 1978
L A R G E WEEKLY REPORTING COMMERCIAL B A N K S

Commercial and Industrial Loans

Millions of dollars
Outstanding

Net change during—

1977

Industry classification
Nov. 30

Dec. 7

Dec. 14

1977
Dec. 21

Dec. 28?

1977
Q4

Q3

P

Oct.

Nov.

Dec.?

Total loans classified 2
1 Total
Durable goods manufacturing:
3

Machinery

5
6

Other fabricated metal products...
Other durable goods

7
8
9

Nondurable goods manufacturing:
Food, liquor, and tobacco
Textiles, apparel, and leather
Petroleum refining

11

Other nondurable goods

12 Mining, including crude petroleum
and natural gas
Trade:
15

Retail

21 All other domestic loans
22 Bankers acceptances.
23 Foreign commercial and industrial

100,473

100,786

100,574

101,974

101,966

268

4,361

2,161

707

2,358
4,538
2,448
1,956
3,565

2,357
4,513
2,343
1,946
3,602

2,323
4,497
2,387
1,956
3,573

2,668
4,551
2,347
1,972
3,620

2,737
4,571
2,314
1,955
3,495

74
-233
-15
11
66

243
-72
-20
-237

-58
86
-26
18
-30

-78
-119
88
-37
-137

379
33
-134
—1
-70

3,743
3,627
2,925
2,925
2,147

3,757
3,587
2,890
2,909
2,155

3,724
3,509
2,843
2,885
2,155

3,789
3,425
2,970
2,830
2,276

3,800
3,362
2,936
2,844
2,257

128
166
91
124
149

344
-658
223
-37
89

141
-134
114
32
9

146
-259
98
12
-30

57
-265
11
-81
110

8,464

8,557

8,595

8,590

8,757

88

525

146

86

293

1,820
7,112
7,475
5,010
1,398
5,070
4,540
11,115

1,816
7,142
7,448
4,975
1,381
5,130
4,451
11,066

1,764
7,175
7,275
4,953
1,360
5,120
4,428
11,173

1,789
7,235
7,077
5,019
1,402
5,366
4,498
11,173

1,847
7,273
6,972
4,965
1,395
5,330
4,459
11,296

-379
103
311
-68
72
-512
243
-270

523
413
-228
-3
127
290
-45
283

288
221
213
-60
56
74
-38
-22

208
31
62
102
74
-44
74
124

27
161
-503
-45
-3
260
-81
181

8,116
5,241

8,172
5,746

8,160
5,910

8,316
6,209

8,285
6,270

197
86

363
2,504

48
924

146
551

169
1,029

4,880

4,843

4,809

4,852

4,846

-164

-266

159

-391

-34

158

-85

-75

-22

-73

20

125,655

674

5,444

2,172

1,190

2,082

1,493

MEMO ITEMS:

24 Commercial paper included in
total classified loans*
25 Total commercial and industrial
loans of all large weekly

138
123,573

124,076

123,908

125,567

1977

1977
Aug. 31

Sept. 28

Oct. 26

Nov. 30

Dec. 28*

Q3

1977
Q4 p

Oct.

Nov.

Dec.*

"Term" loans classified 3
26 Total
Durable goods manufacturing:
28
29
30
31
32
33
34

Machinery
Transportation equipment
Other fabricated metal products...
Other durable goods
Nondurable goods manufacturing:
Food, liquor, and tobacco
Textiles, apparel, and leather
Petroleum refining

36

Other nondurable goods

37 Mining, including crude petroleum
and natural gas
Trade:
38
Commodity dealers
39
Other wholesale
40
Retail
43
44
45
46
47

Other public utilities
Construction
Services
All other domestic loans
Foreign commercial and industrial
loans
1
2

46,076

46,274

46,631

46,660

46,626

-242

352

357

29

-34

1,394
2,306
1,382
785
1,734

1,426
2,337
1,429
775
1,774

1,420
2,384
1,373
831
1,774

1,405
2,319
1,339
838
1,742

1,546
2,286
1,317
834
1,698

38
-183
47
-57
52

120
-51
-112
59
-76

-6
47
-56
56

-15
-65
-34
7
-32

141
-33
-22
-4
-44

1,368
1,149
1,988
1,705
1 088

1,400
1,154
1,997
1,745
1,094

1,441
1,173
2,129
1,746
1,094

1,442
1,142
2,167
1,770
1,119

1,498
1,058
2,268
1,727
1,147

-35
4
59
99
-34

98
-96
271
-18
53

41
19
132
1

1
-31
38
24
25

56
-84
101
-43
28

6,295

6,284

6,328

6,412

6,501

-91

217

44

84

89

209
1,485
2,379
3,624
785
3,358
1,904
5,288
2,733

194
1,540
2,400
3,625
786
3,302
2,011
5,281
2,542

209
1,588
2,495
3,622
812
3,413
1,956
5,185
2,502

234
1,592
2,583
3,651
835
3,294
2,007
5,250
2,641

236
1,665
2,448
3,484
840
3,266
1,990
5,366
2,726

23
57
75
-24
38
-469
178
-20
110

42
125
48
-141
54
-36
-21
85
184

15
48
95
-3
26
111
-55
-96
-40

25
4
88
29
23
-119
51
65
139

2
73
-135
-167
5
-28
-17
116
85

3,117

3,178

3,156

2,878

2,725

-109

-453

-22

-278

-153

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

G R O S S D E M A N D D E P O S I T S of Individuals, Partnerships, and Corporations
Billions of dollars, estimated daily-average balances
At commercial banks
Type of holder

1977

1976
1972
Dec.

1973
Dec.

1974
Dec.

1975
Dec.
June

Sept.

Dec.

Mar.

June

Sept.

1 All holders, I P C

208.0

220.1

225.0

236.9

234.2

236.1

250.1

242.3

253.8

252.7

2 Financial business
3 Nonfinancial business

18.9
109.9
65.4
1.5
12.3

19.1
116.2
70.1
2.4
12.4

19.0
118.8
73.3
2.3
11.7

20.1
125.1
78.0
2.4
11.3

20.3
121.2
78.8
2.5
11.4

19.7
122.6
80.0
2.3
11.5

22.3
130.2
82.6
2.7
12.4

21.6
125.1
81.6
2.4
11.6

25.9
129.2
84.1
2.5
12.2

23.7
128.5
86.2
2.5
11.8

5 Foreign
6 Other

At weekly reporting banks
1977
1973
Dec.

7 All holders, I P C
8
9
10
11
12

Financial business
Nonfinancial business
Consumer
Foreign
Other

1974
Dec.

1975
Dec.

1976
Dec.

June

July

Aug.

Sept.

Oct. 2 '

Nov. 2 '

118.1

119.7

124.4

128.5

128.7

131.0

128.0

129.2

131.4

133.0

14.9
66.2
28.0
2.2
6.8

14.8
66.9
29.0
2.2
6.8

15.6
69.9
29.9
2.3
6.6

17.5
69.7
31.7
2.6
7.1

17.8
69.5
32.3
2.4
6.7

18.9
70.7
32.6
2.2
6.7

18.0
68.8
32.4
2.5
6.4

17.4
70.0
32.8
2.4
6.6

18.0
72.1
32.4
2.3
6.7

17.9
72.2
33.4
2.5
7.0

NOTE.—Figures include cash items in process of collection. Estimates of
gross deposits are based on reports supplied by a sample of commercial
banks. Types of depositors in each category are described in the June 1971

D a t a for August 1976 have been revised as follows: All holders, IPC,
119.4; financial business, 15.3; nonfinancial business, 65.5; consumer,
30.0; foreign, 2.5; all other, 6.1.

BULLETIN, p . 4 6 6 .

1.33

COMMERCIAL PAPER A N D BANKERS ACCEPTANCES

OUTSTANDING

Millions of dollars, end of period
1977
Instrument

1974
Dec.

1975
Dec.

1976
Dec.
May

June

July

Aug.

Sept.

Oct.

Nov.

Commercial paper (seasonally adjusted)
1 All issuers

49,742

48,145

52,623

57,434

4,599
1,814

6,220
1,762

7,271
1,900

31,801
6,518

31,230
6,892

13,342

10,695

r

61,327

60,323

60,320

61,391

62,591

61,995

7,555
1,805

8,196
1,894

8,261
1,744

8,167
1,650

8,493
1,846

8,547
1,961

8,493
1,980

32,365
5,959

34,949
5,999

37,593
6,636

36,773
6,344

36,699
6,394

37,670
7,069

38,979
7,008

38,845
6,567

12,987

14,930

15,538

15,289

15,454

15,228

15,065

14,657

1

2
3
4
5

Financial companies:
Dealer-placed p a p e r : 2
Total
Bank-related
Directly-placed p a p e r : 3
Total
Bank-related

6 Nonfinancial companies

4

Dollar acceptances (not seasonally adjusted)
7 Total
8
9
10
11
12
13
14
15
16

Held by:
Accepting banks
Own bills
Bills bought
F . R . Banks:
Own account
Foreign c o r r e s p o n d e n t s . . .
Others
Based o n :
Imports into United S t a t e s . .
Exports f r o m United States.
All other

18,484

18,727

22,523

23,201

23,440

23,499

23,091

23,317

23,908

4,226
3,685
542

7,333
5,899
1,435

10,442
8,769
1,673

7,326
6,218
1,108

7,630
6,356
1,273

7,601
6,464
1,137

7,647
6,580
1,067

7,473
6,566
907

8,673
7,248
1,424

999
1,109

1,126
293

991
375

108
385

621
360

393
296

131
304

482
287

422

12,150

9,975

13,447

15,382

14,829

15,209

15,009

15,075

14,813

4,023
4,067
10,394

3,726
4,001
11,000

4,992
4,818
12,713

5,124
5,642
12,436

5,635
5,729
12,076

12,088

5,570
5,842

5,446
5,747
11,899

5,654
5,544
12,119

5,886
5,584
12,438

1 Institutions engaged primarily in activities such as, but not limited to,
commercial, savings, and mortgage banking; sales, personal, and mortgage
financing; factoring, finance leasing, and other business lending; insurance
underwriting; and other investment activities.
2
Includes all financial company paper sold by dealers in the open
market.




3
As reported by financial companies that place their paper directly
with investors.
4
Includes public utilities and firms engaged primarily in activities such
as communications, construction, manufacturing, mining, wholesale and
retail trade, transportation, and services.

A26
1.34

DomesticNonfinancialStatistics • January 1978
PRIME R A T E C H A R G E D BY B A N K S on Short-term Business Loans
Per cent per annum
Month

Effective date
1976—June

1
7,

1.35

Rate
7

Aug.

2,

Oct.

4

IVA
1
6V4

Nov.

1,

61/2

Dec. 13

6%

Effective date
1977—May 13
31

61/2

6V4

Aug. 22

7

Sept. 16

71/4

Oct. 7
Oct. 24

m
m

1976—June
July
Aug
Sept
Oct
Nov
Dec

7.20
7.25
7.01
7.00
6.78
6.50
6.35

1977—Jan
Feb
Mar

6.25
6.25
6.25

TERMS OF L E N D I N G AT COMMERCIAL B A N K S

Month

Average
rate

Rate

Average
rate

1977—Apr

6.25
6.41
6.75
6.75
6.83
7.13
7.52
7.75
7.75

July
Sept...

Survey of Loans Made, Aug. 1-6, 1977
Size of loan (in thousands of dollars)

Item

All
sizes
25-49

1-24

500-999

1,000
and over

2,102,846
10,734
2.8
7.87
7.19-8.32

626,169
1,015
2.8
7.59
6.94-8.00

3,206,271
1,106
3.5
7.22
6.75-7.45

53.0
36.8

55.2
59.4

64.6
56.3

206,220
1,121
116.6
7.03
4.41-9.00

86,110
116
46.5
8.18
7.50-9.11

527,338
164
54.7
7.60
6.85-8.77

41.2
64.7

61.5
54.1

78.4
76.5

100-499

50-99

Short-term commercial and industrial loans
895,501
8,184,373
Amount of loans (thousands of dollars)
129,887
174,527
Number of loans
2.6
3.0
Weighted-average maturity (months)
9.24
7.87
Weighted-average interest
rate
(per
cent
per
a
n
n
u
m
)
.
.
6 . 9 2 - 8 . 6 6 8.30-10.11
Interquartile range 1
Percentage of amount of loans:
52.7
26.1
6
With floating rate
40.8
13.9
7
Made under commitment

1
2
3
4
5

660,159
693,427
20,838
10,947
3.0
2.5
8.56
8.75
8.00-9.20 7.78-10.00
29.3
17.5

50.9
20.7

Long-term commercial and industrial loans
1,195,225
Amount of loans (thousands of dollars)
25,464
Number of loans
63.8
Weighted-average maturity (months)
8.09
Weighted-average interest rate (per cent per a n n u m ) . .
6.95-9.16
Interquartile range i
Percentage of amount of loans:
53.4
13
With floating rate
53.6
14
Made under commitment

375,556
24,063
51.7
9.35
8.45-10.00

8
9
10
11
12

23.3
15.4

Construction and land development loans
15
16
17
18
19
20
21
22
23
24
25

570,762
Amount of loans (thousands of dollars)
Number of loans
30,413
Weighted-average maturity (months)
13.1
Weighted-average interest rate (per cent per a n n u m ) . .
8.70
Interquartile range i
8.16-9.28
Percentage of amount of loans:
With floating rate
29.0
Secured by real estate
73.4
Made under commitment
44.2
Type of construction: 1 - t o 4-family
41.4
Multifamily
7.3
Nonresidential
51.4

163,298
25,343
11.7
9.16
8.24-9.84

141,147
3,751
10.3
8.84
8.27-9.25

48,143
689
9.9
8.93
8.48-9.43

109,676
554
10.5
8.70
8.23-9.34

108,497
76
23.6
7.73
7.76-9.00

8.4
67.6
39.7
44.2
8.4
47.5

9.0
59.5
29.3
54.0
1.4
44.6

45.8
87.5
64.4
59.9
4.0
36.1

51.5
84.0
62.6
30.2
10.5
59.3

55.7
83.4
42.9
23.7
1 1.4
64.8

All
sizes

10-24

1-9

25-49

50-99

100-249

250
and over

Loans to farmers
26
27
28
29
30
31
32
33
34
35
36

Amount of loans (thousands of dollars)
Number of loans
Weighted-average maturity (months)
Weighted-average interest rate (per cent per a n n u m ) . .
Interquartile range i
By purpose of loan:
Feeder livestock
Other livestock
Other current operating expenses
F a r m machinery and equipment
Other

871,995
64,828
7.0
8.72
.25-9.24

162,789
47,939
6.9
8.98
8.50-9.27

157,705
10,788
10.1
8.79
8.59-9.27

113,508
3,412
5.8
8.81
8.59-9.20

118,272
1,871
8.3
8.82
8.16-9.31

92,800
618
5.6
8.90
8.59-9.31

226,921
199
5.6
8.33
7.51-9.04

8.40
8.60
9.00
9.02
8.60

8.88
8.69
8.97
9.07
9.25

8.76
8.61
9.01
9.23
7.80

8.80
8.46
8.87
9.12
8.81

8.75
8.48
9.06
9.30
8.47

8.60
8.58
9 . 021

8 . 023

1 Interest rate range that covers the middle 50 per cent of the total
dollar amount of loans made.
2
Fewer than three sample loans.




()

8.98

NOTE.—For more detail, see the Board's G.14 statistical release,

()

9.13
8.57
8.61

Securities Markets
1.36

INTEREST RATES

All

Money and Capital Markets

Averages, per cent per annum
1977, week ending—

1977
1975

Instrument

1976

1977
Sept.

Oct.

Nov.

Dec.

Dec. 3 Dec. 10 Dec. 17 Dec. 24 Dec. 31

Money market rates

1
2

Prime commercial paper
90- to 119-day

1

3 Finance company paper,
directly placed,
3- to 6-month 2
4 Prime bankers acceptances, 90-day

6

7

Large negotiable certificates of deposit
3-month, secondary market 5

8 Euro-dollar deposits, 3-month V
U.S. Govt, securities
Bills: 8
Market yields:
9
3-month
6-month
10
1-year
11
Rates on new issue:
12
6-month
13
14
15

3

Notes and bonds maturing in
9 to 12 months 9
Constant maturities: 1 o
1-year

6.54
6.59

6.61
6.64

6.53
6.57

6.56
6.60

6.62
6.64

6.65
6.68

6.66
6.68

6.41

6.49

6.52

6.50

6.50

6.51

6.54

6.55

6.57

6.58

6.60

6.46

6.55

6.57

6.65

6.71

6.14

6.47

6.51

6.56

6.55

6.51

6.49

6.54

6.65

5.58
52

6.18
6.04

6.24
6.53

6.68
6.56

6.72
6.64

6.62
6.55

6.63
6.55

6.72
6.70

6.72
6.70

6.78
6.70

5.57

6.05

6.57

7.14

7.09

7.15

6.98

6.99

7.11

7.13

7.33

6.11
6.30

4.98
5.26
5.52

5.27
5.53
5.71

5.81
6.04
6.13

6.16
6.43
6.52

6.10
6.41
6.52

6.07
6.40
6.52

6.04
6.37
6.49

6.07
6.38
6.52

6.03
6.37
6.50

6.03
6.40
6.53

6.16
6.47
6.57

5.838
6.122

4.989
5.266

5.265
5.510

5.770
5.991

6.188
6.410

6.160
6.433

6.063
6.377

6.057
6.371

6.049
6.347

6.073
6.371

5.985
6.338

6.152
6.460

6.70

5.84

6.07

6.53

6.96

6.92

6.93

6.85

6.89

6.93

6.93

7.01

6.76

5.88

6.09

6.53

6.97

6.95

6.96

6.91

6.94

6.94

6.97

7.01

6.26
6.33

5.24
5.35

5.54
5.60

6.09
6.17

6.51
6.55

6.16

5.22

5.49

6.04

6.30

5.19

5.59

6.16

5.82

5.05

5.54

6.43

5.26
5.15

6.97

5.80

r

Capital market rates

16
17
18
19
20
21
22

Goverment notes and bonds
U.S Treasury:
Constant maturities: 1 o
2-year
3-year
5-year
7-year
10-year

25
26
27

28
29
30
31
32
33
34

6.31
6.77
7.18
7.42
7.61
7.86

6.45
6.69
6.99
7.23
7.42
7.67
7.75

6.71
6.84
7.04
7.21
7.34
7.57
7.64

7.11
7.19
7.32
7.44
7.52
7.71
7.77

7.14
7.22
7.34
7.46
7.58
7.76
7.85

7.18
7.30
7.48
7.59
7.69
7.87
7.94

7.12
7.22
7.35
7.45
7.56
7.75
7.84

7.15
7.27
7.44
7.54
7.63
7.81
7.88

7.15
7.27
7.46
7.56
7.66
7.84
7.91

7.19
7.33
7.51
7.63
7.73
7.92
7.98

7.25
7.39
7.57
7.70
7.79
7.99
8.04

7.55
6.98

6.94
6.78

6.85
7.06

6.92
6.94

7.23
7.08

7.28
7.14

7.40
7.23

7.29
7.14

7.36
7.18

7.38
7.20

7.43
7.26

7.51
7.34

6.42
7.62
7.05

5.66
7.49
6.64

5.20
6.12
5.68

5.27
5.83
5.51

5.31
5.94
5.64

5.15
5.94
5.49

5.07
5.79
5.57

5.05
5.90
5.47

5.05
5.80
5.54

5.00
5.75
5.55

5.10
5.75
5.62

5.15
5.75
5.66

9.57

9.01

8.43

8.31

8.42

8.48

8.54

8.47

8.50

8.53

8.57

8.61

8.83
9.17
9.65
10.61

8.43
8.75
9.09
9.75

8.02
8.24
8.49
8.97

7.92
8.15
8.37
8.80

8.04
8.26
8.48
8.89

8.08
8.34
8.56
8.95

8.19
8.40
8.57
8.99

8.08
8.31
8.54
8.94

8.13
8.35
8.55
8.95

8.18
8.38
8.56
8.97

8.23
8.43
8.58
9.02

8.28
8.48
8.62
9.06

9.40
9.41

8.48
8.49

8.19
8.19

8.07
8.07

8.23
8.22

8.27
8.24

8 34
8.38

8.26
8.23

8.35
8.34

8.36
8.38

8.41

8.48

8.38
4.31

7.97
3.77

7.60
4.56

7.58
4.82

7.60
4.97

7.67
5.02

7.85
5.11

7.79
5.01

7.84
5.13

7.87
5.07

7.86
5.17

7.84
5.08

30-year
Notes and bonds maturing in9—

23
24

7.49
7.77
7.90
7.99
8.19

Over 10 years (long-term).
State and local: 1 1
Moody's series:
Aaa
Baa
Bond Buyer series 1 2
Corporate bonds 1 3
Seasoned issues
All industries
By rating groups:
Aaa
Aa
A
Baa
Aaa utility bonds: 1 4
New issue
Recently offered issues

Dividend/price ratio
Preferred stocks
35
Common stocks
36

i Averages of the most representative daily offering rates quoted by
dealers.
^Averages of the most representative daily offering rates published by
finance companies for varying maturities in this range.
3 Beginning Aug. 15, 1974, the rate is the average of the midpoint of
the range of daily dealer closing rates offered for domestic issues; prior
data are averages of the most representative daily offering rate quoted by
dealers.
4
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.
5 Weekly figures 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.
6 Posted rates, which are the annual interest rates most often quoted
on new offerings of negotiable CD's in denominations of $100,000 or
more. Rates prior to 1976 not available. Weekly figures are for Wednesday dates.




7

Averages of daily quotations for the week ending Wednesday.
8 Except for new bill issues, yields are computed from daily closing
bid prices. Yields for all bills are quoted on a bank-discount basis.
9 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.
i o Yields on the more actively traded issues adjusted to constant
maturities by the U.S. Treasury, based on daily closing bid prices.
11
General obligations only, based on figures for Thursday, from
Moody's
Investors Service.
12
Twenty
issues of mixed quality.
1
3 Averages of daily figures from Moody's Investors Service.
14
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 • January 1978
STOCK M A R K E T

Selected Statistics
1977
1975

Indicator

1976

1977

June

July

Aug.

Sept.

Oct.

Nov.

Dec.

51.87
55.62
39.30
40.33
54.04

51.83
55.55
39.75
40.36
53.85

Prices and trading (averages of daily figures)
Common stock prices
54.31
58.44
43.29
41.59
55.15

54.94
58.90
43.52
42.44
57.29

98.18

99.29

100.19

97.75

96.23

93.78

94.28

93.82

116.18

116.28

122.03

119.33

118.08

115.41

117.80

124.88

20,936
2,514

22,007
2,720

23,656
2,880

18,831
2,140

18,270
2,080

19,689
2,080

23,557
2,061

21,475
3,008

1 New York Stock Exchange (Dec. 31,1965 = 50).
2
Industrial
3
Transportation
4
Utility

45.73
51.88
30.73
31.45
46.62

54.45
60.44
39.57
36.97
52.94

53.67
57.84
41.07
40.91
55.23

6 Standard & Poor's Corporation (1941-43 = 1 0 ) i . .

85.17

102.01

83.15

101.63

18,568
2,150

21,189
2,565

7 American Stock Exchange (Aug. 31,1973 = 100).
8
9

Volume of trading (thousands of shares) 2
New York Stock Exchange
American Stock Exchange

53.51
' 57.30
41.04
41.50
56.52

52.66
56.41
39.99
40.93
55.33

51.37
54.99
38.33
40.38
53.24

Customer financing (end-of-period balances, in millions of dollars)
10 Regulated margin3 credit at brokers/dealers
and banks
11
Brokers, total 4
12
Margin stock
13
Convertible bonds
14
Subscription issues
15
Banks, total
16
Margin stocks
17
Convertible bonds
18
Subscription issues

6,500
5,540
5,390
147
3
960
909
36
15

9,011
8,166
7,960
204
2
845
800
30
15

10,255
9,432
9,230
198
4
823
779
25
19

10,490
9,667
9,460
204
3
823
780
24
19

10,592
9,763
9,560
196
7
829
787
23
19

10,617
9,793
9,590
196
7
824
783
24
17

10,583
9,756
9,560
192
4
827
783
27
17

10,680
9,858
9,610
245
3
822
778
28
16

19 Unregulated nonmargin stock credit at banks 5 . . .

2,281

2,817

2,403

2,419

2,438

2,434

2,431

2,456

MEMO: Free credit balances at brokers 6
20
Margin-account
21
Cash-account

475
1,525

585
1,855

595
1,805

600
1,860

605
1,745

600
1,745

615
1,850

630
1,845

Margin-account debt at brokers (percentage distribution, end of period)
22 Total
23
24
25
26
27
28

By equity class (in per cent): 7
Under 40
40-49
50-59
60-69
70-79
80 or more

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

24.0
28.8
22.3
11.6
6.9
5.3

12.0
23.0
35.0
15.0
8.7
6.0

12.9
27.0
33.0
13.3
8.0
5.8

16.2
32.9
26.4
12.0
7.0
5.5

17.4
32.0
27.0
12.0
7.0
5.0

18.0
36.0
23.0
11.0
6.0
5.0

27.0
35.0
18.0
9.8
6.0
5.0

17.0
33.0
26.0
12.0
7.0
5.0

Special miscellaneous-account balances at brokers (end of period)
8

29 Total balances (millions of dollars)
Distribution by equity status (per cent)
30
Net credit status
Debit status, equity o f —
31
60 per cent or more
32
Less than 60 per cent

7,290

8,776

9,470

9,730

9,660

9,640

9,640

43.8

41.3

41.0

40.9

41.1

41.7

42.8

41.8

40.8
15.4

47.8
10.9

47.8
11.2

47.1
12.0

46.2
12.4

45.9
12.4

43.8
13.4

45.5
12.7

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 5l/i-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 by brokers is end-of-month data for member firms of
the New York Stock Exchange; June data for banks are universe totals;
all other data for banks are estimates for all commercial banks based on
data from a sample of reporting banks.
In addition to assigning a current loan value to margin stock generally,
Regulations T and U permit special loan values for convertible bonds
and stock acquired through exercise of subscription rights.
4
A distribution of this total by equity class is shown below.




9,710

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 banks, loans to purchase or carry nonmargin
stocks are unregulated; at brokers, such stocks have no loan value.
6
Free credit balances are in accounts with no unfulfilled commitments
to the brokers and are subject to withdrawal by customers on demand.
7
Each customer's equity in his collateral (market value of collateral
less net debit balance) is expressed as a percentage of current collateral
values.
8 Balances that may be used by customers as the margin deposit required for additional purchases. Balances may arise as transfers based
on loan values of other collateral in the customer's margin account or
deposits of cash (usually sales proceeds) occur.

NOTE.—For table on "Margin Requirements" see p. A-10, Table 1.161.

Thrift Institutions
1.38

SAVINGS INSTITUTIONS

A29

Selected Assets and Liabilities

Millions of dollars, end of period
1977
1974

1975

1976
Mar.

Account

Apr.

May

June

July

Aug.

Sept.

Oct. r

Nov.

Savings and loan associations
295,545 338,233 391,999 409,357 414,436 421,865 All
2 Mortgages
3 Cash and investment
securities 1
4 Other
5 Liabilities and net worth
6
7
8
9
10
11

Savings capital
Borrowed money
FHLBB
Other
Loans in process
Other

12 Net worth 2
13 MEMO: Mortgage loan commitments outstanding 3 . .

Ml 433,828 440,202 444,484 450,667 455,807

249,301 278,590 323,130 333,703 338,984 344,631 350,765 355,991 361,719 366,978 371,857 376,601
23,251
22,993

30,853
28,790

35,660
33,209

39,656
35,998

39,061
36,391

40,461
36,773

39,626
36,650

40,990
36,847

41,002
37,481

39,639
37,867

40,571
38,239

40,514
38,692

295,545 338,233 391,999 409,357 414,436 421,865 427,041 433,828 440,202 444,484 450,667 455,807
242,974 285,743 336,030 352,194 354,318 357,965 364,349 368,513 371.376 377,338 379,735 381,487
18,283
19,087
18,880
19,804
22,031
20,634
20,558
20,964
22,925
24,210
24,780
25,708
15,724 16,255
17,524 15,708 14,325 14,809 15,000 15,595
21,508
16,908 17,546 18,302
3,958
4,804
3,379
4,071
5,776
4,963
5,240
3,110
3,272
6,017
6,664
7,406
7,351
6,836
7,899
8,505
9,332
9,657
5,128
3,244
9,123
9,735
9,849
9,918
8,833 10,360 12,287
8,015
6,949
9,515
11,220 12,990
6,105
10,113 12,167 13,655
18,442

19,779

22,031

22,696

22,979

23,304

23,496

23,799

24,148

24,373

24,706

25,039

7,454

10,673

14,828

19,304

21,242

22,274

22,037

21,911

21,905

21,635

21,559

21,229

Mutual savings banks
14 Assets
15
16
17
18
19
20
21

Loans :
74,891
Mortgage
3,812
Other
Securities:
2,555
U.S. Govt
930
State and local government.
22,550
Corporate and other 4
2,167
Cash
2,645
Other assets

22 Liabilities
23
24
25
26
27
28
29
30

109,550 121,056 134,812 138,901 139,496 140,593 141,778 143,036 143,815 144,666 145,651

Deposits
Regular: 5
Ordinary savings
Time and other
Other
Other liabilities
General reserve accounts
MEMO : Mortgage loan commitments outstanding 6 ..

77,221
4,023

81,630
5,183

82,273
6,389

82,687
6,050

83,075
6,650

84,051
6,887

84,700
7,176

85,419
7,119

86,079
6,878

86,769
7,115

4,740
1,545
27,992
2,330
3,205

5,840
2.417
33,793
2,355
3,593

6,360
2,431
35,928
1,823
3,668

6,323
2,504
36,322
1,900
3,709

6,248
2,539
36,455
1,922
3,703

6,604
2,544
36,349
2,071
3,771

6,101
2,594
36,674
2,001
3,789

6,019
2,762
36,878
6,857
3,760

6,192
2,777
36,927
1,992
3,821

6,101
2,808
37,073
2,011
3,773

109,550 121,056 134,812 138,901 139,496 140,593 141,778 143,036 143,815 144,666 145,651
98,701 109,873 122,877 126,687 126,938 127,791 129,332 130,111 130,381 131,688 132,250
98,221 109,291 121,961 125,624 125,731 126,587 128,071 128,748 129,030 130,230 130,913
64,286 69,653 74,535 76,260 76,336 76,384 77,033 77,069 77,163 77,640 77,503
33,935 39,639 47,426 49,364 49,395 50,203 51,038 51,679 51,867 52,590 53,410
1,063
1,207
1,204
480
582
916
1,261
1,363
1,351
1,458
1,337
2,939
3,230
3,381
2,888
2,755
2,884
2,939
3,379
3,779
3,254
3,632
9,275
9,329
9,422
7,961
8,428
9,052
9,506
9,546
9,654
9,723
9,769
2,040

1,803

2,439

3,161

3,287

3,521

4,079

4,049

4,198

4,254

4,423

Life insurance companies
31 Assets
32
33
34
35
36
37
38

Securities:
Government
United States 7
State and8 local
Foreign
Business
Bonds
Stocks

39
40
41
42

Mortgages
Real estate
Policy loans
Other assets

263,349 289,304 321,552 326,753 328,786 331,028 334,386 336,651 338,964 341,382 343,738
18,470
17,942
18,500
13,758
19,519
18,475
10,900
18,579
18,916
19,174
19,515
5,546
5,368
5,544
4,136
5,396
3,372
5,810
5,400
5,628
5,831
5,883
5,732
5,594
5,758
4,508
5,797
3,667
5,813
5,979
5,847
5,881
5,994
7,192
6,980
7,198
4,514
7,282
3,861
7,366
7,441
7,462
7,730
7,638
119,637 135,317 157,246 161,214 162,816 164,126 166,859 168,498 169,747 170,606 172,005
97,717 107,256 122,984 128,596 130,057 131,568 133,497 135,262 136,752 138,046 139,909
21,920 28,061 34,262 32,618 32,759 32,558 33,362 33,236 32,995
32,560 32,096
86,234
8,331
22,862
15,385

89,167
9,621
24,467
16,971

91,552
10,476
25,834
18,502

91,786
10,738
26,207
18,338

92,200
10,802
26,364
18,104

92,358
10,822
26,500
18,747

92,854
10,897
26,657
18,540

93,106
10,901
26,780
18,450

93,326
10,926
26,946
18,845

94,070
10,930
27,087
19,174

94,684
11,024
27,220
19,286

Credit unions
43 Total assets/liabilities and
capital
44
Federal
45
State

31,948
16,715
15,233

38,037
20,209
17,828

45,225
24,396
20,829

47,621
25,813
21,808

47,974
25,980
21,994

48,999
26,594
22,405

50,186
27,364
22,822

50,218
27.290
22j928

50,904
27,632
23,272

52,136
28,384
23,752

52,412
28,463
23,949

53,141
28,954
24,187

46 Loans outstanding.
47
Federal
48
State

24,432
12,730
11,702

28,169
14,869
13,300

34,384
18,311
16,073

35,471
18,869
16,602

36,102
19,151
16,951

36,987
19,680
17,307

38,201
20,420
17,781

38,657
20,591
18,066

39,711
21,194
18,517

40,573
21,692
18,881

40,865
21,814
19,051

41,427
22,224
19,203

27,518
49 Savings
14,370
50
Federal (shares)
51
State (shares and deposits). 13,148

33,013
17,530
15,483

39,173
21,130
18,043

41,483
22,534
18,949

41,760
22,730
19,030

42,504
23,169
19,335

43,552
23,825
19,727

43,658
23,873
19,785

43,982
24,080
19,902

45,103
24,775
20,328

45,441
24,945
20,496

45,977
25,303
20,674

For notes see bottom of page A30.




A30
1.39

DomesticNonfinancialStatistics • January 1978
F E D E R A L FISCAL A N D F I N A N C I N G OPERATIONS
Millions of dollars
Calendar year
Type of account or operation

1
2
3
4
5

U.S. Budget
Receipts 1
Outlays *, 2 , 3
Surplus, or deficit
Trust funds
Federal funds 4

(—)

Off-budget entities surplus, or
deficit ( - )
6
Federal Financing Bank outlays. .

7

Other 2,5

U.S. Budget plus off-budget, including Federal Financing Bank
Surplus, or deficit (—)
Financed by:
9
Borrowing from the public 3. . .
10
Cash and monetary assets (decrease, or increase ( — ) ) . . . .
8

11

Other 6

Fiscal
year
1976

Transition
quarter
(JulySept.
1976)

Fiscal
year
1977

1976

1977

1977

HI

H2

HI

Sept.

Oct.

Nov.

299,197
365,658
-66,461
2,409
-68,870

81,686
94,659
-12,973
-1,952

-11,021

356,861
401,896
-45,035
7,833
-52,868

159,742
180,559
-20,816
5,503
-26,320

157,868
-193,629
-35,761
-4,621
-31,140

189,410
199,482
-10,072
7,332
-17,405

36,642
35,097
1,545
3,900
-2,355

24,127
38,790
-14,663
198
-14,861

27,596
36,864
-9,269
457
-9,726

-5,915
-1,355

-2,575
793

-8,415
-269

-3,222
-1,119

-5,176
3,809

-2,075
-2,086

-892
-786

-1,211
1,750

-250
-183

-25,158

-37,125

-14,233

-73,731

-14,755

-53,718

-133

-14,124

-9,702

82,922

18,027

53,516

33,561

35,457

16,480

10,024

1,851

8,854

-7,796
-1,396

-2,899
-373

-2,238
2,440

-7,909
-495

2,153
-485

-4,666
2,420

-12,093
2,202

9,952
2,321

2,278
-1,429

14,836
11,975
2,854
7

17,418
13,299
4,119

19,104
15,740
3,364

14,836
11,975
2,854
7

11,670
10,393
1,277

77,311
65,372
11,940

19,104
15,740
3,364

7,687
6,398
1,289

5,471
2,562
2,909

MEMO ITEMS :

12 Treasury operating balance (level, end
of period)
13
F.R.Banks
14
Tax and loan accounts
15
Other demand accounts 7

1
Effective June 1977, earned income credit payments in excess of an
individual's tax liability, formerly treated as outlays, are classified as
income tax refunds retroactive to January 1976.
2
Outlay totals reflect the reclassification of the Export-Import Bank,
and the Housing for the Elderly and Handicapped Fund effective October
1978, from off-budget status to unified budget status.
3 Export-Import Bank certificates of beneficial interest (effective July
1, 1975) and loans to the Private Export Funding Corp. (PEFCO), a wholly
owned subsidiary of the Export-Import Bank are treated as debt rather
than asset sales.
4
Half years calculated as a residual of total surplus/deficit and trust
fund surplus/deficit.
5 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 1978.
6 Includes public debt accrued interest payable to the public; deposit
f u n d s ; 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 I M F valuation adjustment.
7
Excludes the gold balance but includes deposits in certain commercial
depositories that have been converted f r o m a time deposit to a demand
deposit basis to permit greater flexibility in Treasury cash management.
SOURCE.—"Monthly Treasury Statement of Receipts and Outlays of
the U.S. Government," Treasury Bulletin, and U.S. Budget, Fiscal Year
1978.

N O T E S 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. Govt, 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 Assn. 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.
NOTE.—Savings and loan associations: Estimates by the F H L B B for
all associations in the United States. D a t a 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. D a t a are reported on a gross-of-valuation-reserves basis.
Life insurance companies: Estimates of the Institute of Life Insurance
for all life insurance companies in the United States. Annual figures are
annual-statement asset values, with bonds carried on an amortized basis
and stocks at year-end market value. Adjustments for interest due and
accrued and for differences between market and book values are not
made on each item separately but are included, in total, in "other assets."
Credit unions: Estimates by the National Credit Union Administration
for a group of Federal and State-chartered credit unions that account for
about 30 per cent of credit union assets. Figures are preliminary and
revised annually to incorporate recent benchmark data.

Federal Finance
1.40

A31

U.S. B U D G E T RECEIPTS A N D O U T L A Y S
Millions of dollars
Calendar year
Source or type

Fiscal
year
1976

Transition
quarter
(JulySept.
1976)

Fiscal
year
1977
HI

1977

1977

1976
H2

HI

Sept.

Oct.

Nov.

Receipts
1

All sources

1

2
3
4

Individual income taxes, net
Withheld
Presidential Election Campaign
Fund
5
Nonwithheld
6
Refunds i
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
3
contributions
13
Unemployment insurance
4
14
Other net receipts
15
16
17
18

Excise taxes
Customs
Estate and gift
Miscellaneous receipts

5

299,197

81,686

356,861

159,742

157,868

189,410

36,642

24,127

27,596

130,794
123,408

39,611
32,949

156,725
144,820

64,959
63,859

77,948
73,303

17,327
11,776

13,275
12,770

13,171
12,916

34
35,528
28,175

1
6,809
1,139

37
42,062
30,194

33
27,879
26,813

75,899
68,023
j
8,426
1,541

37
32,959
28,350

5,903
352

711
206

430
174

46,783
5,374

9,808
1,348

60,057
5,164

27,973
2,639

20,706
2,886

37,133
2,324

8,770
394

2,159
714

1,386
466

92,714

25,760

51,828

47,596

58,099

7,828

6,550

76,391

21,534

88,196

40,947

40,427

45,242

6,990

5,542

8,750

3,518
8,054
4,752

269
2,698
1,259

4,014
11,312
5,162

3,250
5,193
2,438

286
4,379
2,504

3,687
6,575
2,595

309
94
434

541
466

1,216
438

16,963
4,074
5,216
8,026

4,473
1,212
1,455
1,612

17,548
5,150
7,327
6,536

8,204
2,147
2,643
4,630

8,910
2,361
2,943
3,236

8,432
2,519
4,332
3,269

1,589
494
454
575

1,529
406
410
512

1,615
459
439
587

108,683

10,404

Outlays
19

All types 1,6

365,658

94,659

401,896

180,559

193,629

199,482

35,097

38,790

36,864

20
21
22

National defense
International affairs 6
General science, space, and
technology
Natural resources, environment,
and energy
Agriculture

89,996
5,067

22,518
1,997

96,721
5,593

44,052
2,668

45,002
3,028

48,721
2,522

8,979
868

8,087
446

8,974
251

4,370

1,161

4,677

1,708

2,377

2,108

393

378

389

11,282
2,502

3,324
584

14,335
5,330

6,900
417

7,206
2,019

6,855
2,628

1,511
50

1,259
1,103

1,527
1,553

Commerce and transportation
Community and regional
development
Education, training, employment,
and social services
Health
Income security 1

17,248

4,700

14,731

5,766

9,643

5,945

1,863

3,586

1,777

5,300

1,530

7,394

2,411

3,192

3,149

941

628

1,058

18,167
33,448
126,598

5,013
8,720
32,710

19,718
38,838
137,151

9,116
17,008
64,526

9,083
19,329
65,367

9,775
18,654
69,917

1,801
3,316
11,643

1,761
3,355
11,476

1,834
2,613
12,635

18,432
3,320
2,927

3,962
859
878

18,040
3,589
3,338

9,450
1,784
870

8,542
1,839
1,734

9,382
1,783
1,587

1,325
267
326

1,587
282
182

1,571
321
376

7,119
34,589
-14,704

2,024
7,246
-2,567

9,404
38,092
-15,053

3,664
18,560
-8,340

4,729
18,409
-7,869

4,333
18,927
-6,803

65
2,722
-973

2,274
2,908
-524

249
2,758
-1,021

23
24
25
26
27
28
29
30
31
32
33
34
35

Veterans benefits and s e r v i c e s . . . .
Law enforcement and justice
General government
Revenue sharing and general
purpose fiscal assistance
Interest 7
Undistributed offsetting receipts 7

1
Effective June 1977, earned income credit payments in excess of an
individual's tax liability, formerly treated as outlays, are classified as income tax refunds 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 F.R. Banks and other miscellaneous receipts.
* Outlay totals reflect the reclassification of the Export-Import Bank




from off-budget status to unified budget status. Export-Import Bank
certificates of beneficial interest (effective July 1, 1975) and loans to the
Private Export Funding Corp. (PEFCO), a wholly owned subsidiary of
the Export-Import Bank, are treated as debt rather than asset sales.
7
Effective September 1976, "Interest" and "Undistributed Offsetting
Receipts" reflect the accounting conversion for the interest on special
issues for U.S. Govt, accounts from an accrual basis to a cash basis.
8 Consists of interest received by trust funds, rents and royalties on
the Outer Continental Shelf, and U.S. Govt, contributions for employee retirement.

A32
1.41

DomesticNonfinancialStatistics • January 1978
F E D E R A L D E B T SUBJECT TO STATUTORY LIMITATION
Billions of dollars
1977

1976

1975

1974
Item
Dec. 31

June 30

Dec. 31

June 30

1 Federal debt outstanding

504.0

544.1

587.6

631.9

646.4

665.5

680.1

685.2

709.1

2 Public debt securities
Held by public
3
4
Held by agencies

492.7
351.5
141.2

533.7
387.9
145.3

576.6
437.3
139.3

620.4
470.8
149.6

634.7
488.6
146.1

653.5
506.4
147.1

669.2
524.3
144.9

674.4
523.2
151.2

698.8
543.4
155.5

11.3
9.3
2.0

10.9
9.0
1.9

10.9
8.9
2.0

11.5
9.5
2.0

11.6
29.7
1.9

12.0
10.0
1.9

10.9
9.1
1.8

10.8
9.0
1.8

10.3
8.5
1.8

5 Agency securities
6
Held by public
7
Held by agencies

Sept. 30
2

Dec. 31

M a r . 31

June 30

Sept. 30

493.0

534.2

577.8

621.6

635.8

654.7

670.3

675.6

698.5

9 Public debt securities
10 Other d e b t 1

490.5
2.4

532.6
1.6

576.0
1.7

619.8
1.7

634.1
1.7

652.9
1.7

668.6
1.7

673.8
1.7

696.8
1.7

11 MEMO: Statutory debt limit

495.0

577.0

595.0

636.0

636.0

682.0

682.0

700.0

752.0

8 Debt subject to statutory limit

1 Includes guaranteed debt of Govt, agencies, specified participation
certificates, notes to international lending organizations, and District of
Columbia stadium bonds.
2
Gross Federal debt and Agency debt held by the public increased

1.42

GROSS PUBLIC D E B T OF U.S. T R E A S U R Y

$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 f r o m Treasury Bulletin (U.S. Treasury Dept.).

Types and Ownership

Billions of dollars, end of period
1977
Type and holder

1973

1974

1975

1976
Aug.

1 Total gross public debt 1

Sept.

Oct.

Nov.

Dec.

469.9

492.7

576.6

653.5

685.2

698.8

697.4

708.0

718.9

2
3
4
5
6
7
8
9
10
11

By type:
Interest-bearing debt
Marketable
Bills
Notes
Bonds
Nonmarketable2
Convertible b o n d s 3
Foreign issues 4
Savings bonds and notes
Govt, account series 5

467.8
270.2
107.8
124.6
37.8
197.6
2.3
26.0
60.8
108.0

491.6
282.9
119.7
129.8
33.4
208.7
2.3
22.8
63.8
119.1

575.7
363.2
157.5
167.1
38.6
212.5
2.3
21.6
67.9
119.4

652.5
421.3
164.0
216.7
40.6
231.2
2.3
22.3
72.3
129.7

684.1
438.1
154.3
238.1
45.8
245.9
2.2
21.4
75.5
136.3

697.6
443.5
156.1
241.7
45.7
254.1
2.2
21.8
75.8
140.1

696.3
447.4
156.2
245.6
45.7
248.9
2.2
21.1
76.2
136.9

707.0
454.9
156.7
251.1
47.1
252.1
2.2
21.7
76.6
138.6

715.2
459.9
161.1
251.8
47.0
255.3
2.2
22.2
77.0
139.8

12
13

By holder: 6
U.S. Govt, agencies and trust funds,
F.R.Banks

129.6
78.5

141.2
80.5

139.3
87.9

147.1
97.0

151.9
98.4

155.5
9104.7

152.2
94.6

261.7
60.3
2.9
6.4
10.9
29.2

271.0
55.6
2.5
6.1

29.2

349.4
85.1
4.5
9.3
20.2
33.8

409.5
103.8
5.7
12.5
26.5
41.6

434.9
100.0
6.0
r
14.1
24.5
52.7

438.6
101.0
6.1
14.5
23.9
53.5

450.6
100.5
6.0
14.7
23.8
54.5

14
15
16
17
18
19

Private investors
Commercial banks
Mutual savings banks
Insurance companies
Other corporations
State and local governments

11.0

20
21

Individuals:
Savings bonds
Other securities

60.3
16.9

63.4
21.5

67.3
24.0

72.0
28.8

75.2
28.5

75.6
28.3

76.0
24.4

22
23

Foreign and international 7
Other miscellaneous investors 8 . .

55.5
19.3

58.4
23.2

66.5
38.6

78.1
40.5

91.9
42.1

95.1
40.7

100.0
46.7

1 Includes $3.7 billion of non-interest-bearing debt (of which $611
million on Dec. 31, 1977, was not subject to statutory debt limitations).
2
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.
3
These nonmarketable bonds, also known as Investment Series B
Bonds, may be exchanged (or converted) at the owner's option for 1 Vi
per cent, 5-year marketable Treasury notes. Convertible bonds that have
been so exchanged are removed f r o m this category and recorded in the
notes category above.
4
Nonmarketable foreign government dollar-denominated and foreign
currency denominated series.
5
Held only by U.S. Govt, agencies and trust funds.
6 D a t a for F.R. Banks and U.S. Govt, agencies and trust funds are
actual holdings; data for other groups are Treasury estimates.




7
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 t o the International Monetary F u n d .
8
Includes savings and loan associations, nonprofit institutions, corporate pension trust funds, dealers and brokers, certain Govt, deposit
accounts, and Govt.-sponsored agencies.
9 Includes a nonmarketable Federal Reserve special certificate for $2.5
billion.

NOTE.—Gross public debt excludes guaranteed agency securities and,
beginning in July 1974, includes Federal Financing Bank security issues.
D a t a by type of security f r o m Monthly Statement of the Public Debt of
the United States (U.S. Treasury Dept.); data by holder f r o m Treasury
Bulletin.

Federal Finance
1.43

U.S. G O V E R N M E N T MARKETABLE SECURITIES

A33

Ownership, by maturity

Par value; millions of dollars, end of period
1977

1977
Type of holder

1975

1975

1976
Oct.

Oct.

Nov.

3 F. R. Banks

363,191

421,276

447,435

454,862

112,270

141,132

149,820

153,696

19,397
87,934

16,485
96,971

14,548
94,597

14,514
96,477

7,058
30,518

6,141
31,249

5,921
28,155

4,793
27,558

255,860
64,398
3,300
7,565
9,365
2,793
9,285
159,154

307,820
78,262
4,072
10,284
14,193
4,576
12,252
184,182

338,290
73,127
4,393
11,576
10,305
5,138
16,524
217,227

343,870
73,839
4,353
12,091
10,091
5,002
16,582
221,912

74,694
29,629
1,524
2,359
1,967
1,558
1,761
35,894

103,742
40,005
2,010
3,885
2,618
2,360
2,543
50,321

115,744
38,493
2,109
4,285
2,821
2,725
3,930
61,381

121,346
39,706
2,146
4,679
3,330
2,599
4,022
64,862

5 to 10 years

Total, within 1 year
12 All holders
13 U.S. Govt, agencies and trust funds
14 F. R. Banks

199,692

211,035

217,765

223,139

26,436

43,045

48,599

45,337

2,769
46,845

2,012
51,569

890
49,176

1,995
51,592

3,283
6,463

2,879
9,148

2,139
10,547

2,129
10,349

150,078
29,875
983
2,024
7,105
914
5,288
103,889

157,454
31,213
1,214
2,191
11,009
1,984
6,622
103,220

167,699
26,572
1,335
2,103
6,867
2,177
8,493
120,153

169,552
26,973
1,342
2,218
6,011
2,182
8,680
122,147

16,690
4,071
448
1,592
175
216
782
9,405

31,018
6,278
567
2,546
370
155
1,465
19,637

35,913
7,164
655
3,135
367
161
1,325
23,104

32,858
6,148
615
3,162
427
148
1,367
21,022

10 to 20 years

Bills, within 1 year
23 All holders
24 U.S. Govt, agencies and trust funds
25 F. R. Banks
26 Private investors

30

Nonfinancial corporations

32
33

State and local governments
All others

157,483

163,992

156,174

156,656

14,264

11,865

12,975

12,939

207
38,018

449
41,279

112
36,240

112
37,192

4,233
1,507

3,102
1,363

3,102
1,467

3,102
1,473

119,258
17,481
554
1,513
5,829
518
4,566
88,797

122,264
17,303
454
1,463
9,939
1,266
5,556
86,282

119,822
9,549
444
1,171
5,239
976
6,876
95,566

119,353
10,176
465
1,115
4,640
860
6,851
95,245

8,524
552
232
1,154
61
82
896
5,546

7,400
339
139
1,114
142
64
718
4,884

8,406
490
152
1,253
136
57
918
5,400

8,364
471
138
1,254
134
56
867
5,444

Over 20 years

Other, within 1 year
34 All holders
35 U.S. Govt, agencies and trust funds
36 F. R. Banks
37 Private investors

43
44

State and local governments
All others

42,209

47,043

61,592

66,483

10,530

14,200

18,276

19,751

2,562
8,827

1,563
10,290

779
12,936

1,883
14,400

2,053
2,601

2,350
3,642

2,495
5,252

2,495
5,505

30,820
12,394
429
511
1,276
396
722
15,092

35,190
13,910
760
728
1,070
718
1,066
16,938

47,877
17,023
890
931
1,628
1,201
1,617
24,587

50,199
16,797
877
1,103
1,371
1,322
1,829
26,902

5,876
271
112
436
57
22
558
4,420

8,208
427
143
548
55
13
904
6,120

10,529
409
142
800
114
18
1,858
7,189

11,751
541
142
778
189
18
1,645
8,437

NOTE.—Direct public issues only. Based on Treasury Survey of Ownership f r o m Treasury Bulletin (U.S. Treasury Dept.).
Data complete for U.S. Govt, agencies and trust funds and F.R. Banks,
but data for other groups include only holdings of those institutions
that report. The following figures show, for each category, the number
a n d pi»portion reporting as of Nov. 30, 1977; (1) 5,490 commercial




Nov.

1 to 5 years

All maturities
1 All holders

1976

banks, 466 mutual savings banks, and 728 insurance companies, each
about 90 per cent; (2) 440 nonfinancial corporations and 486 savings
and loan assns., each about 50 per cent; and (3) 496 State and local
govts., about 40 per cent.
"All others," a residual, includes holdings of all those not reporting
in the Treasury Survey, including investor groups not listed separately.

A34
1.44

DomesticNonfinancialStatistics • January 1978
U.S. G O V E R N M E N T SECURITIES D E A L E R S

Transactions

Par value; averages of daily figures, in millions of dollars
1977
1977, week ending Wednesday—
Item

1974

1975

1976
Sept.

1 U.S. Govt, securities
2
3
4
5
6

By maturity:
Bills
Other within 1 year
1-5 years
5-10 years
Over 10 years

Oct.

Nov.
Nov. 9

Nov. 16 Nov. 23 Nov. 30

Dec. 7

Dec. 14

3,579

6,027

10,449

9,987

11,231

11,086

10,889

13,207

9,990

9,277

9,618

8,840

2,550
250
465
256
58

3,889
223
1,414
363
138

6,676
210
2,317
1,019
229

6,391
211
2,267
785
334

6,916
291
2,355
1,320
348

6,689
257
2,136
1,372
631

5,642
246
2,095
1,802
1,104

8,205
236
2,423
1,588
755

6,189
187
2,014
1,139
461

6,590
382
1,508
541
255

5,773
259
2,304
818
465

5,699
223
1,689
814
415

By type of customer:
U.S. Govt, securities
dealers
U.S. Govt, securities
8
brokers
Commercial banks
9
All others *
10

652

885

1,360

1,190

1,195

1,157

1,002

1,175

1,131

1,422

1,167

1,186

965
998
964

1,750
1,451
1,941

3,407
2,426
3,257

3,516
2,017
3,265

4,204
2,126
3,705

3,912
2,048
3,968

3,947
1,992
3,948

4,877
2,588
4,567

3,623
1,664
3,571

2,520
1,846
3,490

3,282
1,619
3,550

2,823
1,604
3,226

11 Federal agency s e c u r i t i e s . . . .

965

1,043

1,548

l ,601

1,733

1,697

1,300

2,390

1,792

1,400

1,515

1,302

7

r

1
Includes—among others—all other dealers and brokers in commodities and securities, foreign banking agencies, and the F.R. System.

NOTE.—Averages for transactions are based on number of trading days
in the period.

1.45

U.S. G O V E R N M E N T SECURITIES D E A L E R S

Transactions are market purchases and sales of U.S. Govt, securities
dealers reporting to the F.R. Bank of New York. The figures exclude
allotments of, and exchanges for, new U.S. Govt, securities, redemptions
of called or matured securities, or purchases or sales of securities under
repurchase, reverse repurchase (resale), or similar contracts.

Positions and Sources of Financing

Par value; averages of daily figures, in millions of dollars
1977, week ending Wednesday—

1977
Item

1974

1975

1976
Sept.

Oct.

Nov.

Oct. 19

Oct. 26

Nov. 2

Nov. 9

Nov. 16 Nov. 23

Positions 2
1 U.S. Govt, securities

2,580

5,884

7,592

5,011

3,913

4,351

3,536

4,701

4,155

4,378

5,005

4,075

2
3
4
5
6

1,932
—6
265
302
88

4,297
265
886
300
136

6,290
188
515
402
198

5,323
13
-378
-41
93

4,283
11
-233
-84
-64

3,784

-135
383
199

4,032
10
-261
-182
-63

4,847
-37
226
-238
-97

4,344
43
-104
-127

3,832
166
-425
385
420

4,579
105
-437
501
258

3,500
103
-221
321
372

943

729

637

914

723

699

576

610

1,040

1,086

Bills
Other within 1 year
1-5 years
5-10 years
Over 10 years

7 Federal agency s e c u r i t i e s . . . .

1,212

r

648

120

Sources of
8 All sources
9
10
11
12

Commercial banks:
New York City
Outside New York City...
Corporations 1
All others

3,977

6,666

8,715

10,424

8,362

9,209

8,341

8,463

8,363

8,185

9,101

10,207

1,032
1,064
459
1,423

1,621
1,466
842
2,738

1,896
1,660
1,479
3,681

922
2,365
2,663
4,473

876
1,954
2,469
3,063

914
1,802
2,893
3,599

469
2,243
2,560
3,069

859
1,682
2,877
3,046

457
1,899
2,791
3,216

624
1,985
2,899
2,677

917
1,752
2,686
3,747

1,540
1,642
3,112
3,914

1
All business corporations except commercial banks and insurance
companies.
2
Net amounts (in terms of par values) of securities owned by nonbank
dealer firms and dealer departments of commercial banks on a commitment, that is, trade-date basis, including any such securities that have been
sold under 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




financing3

firms and dealer departments of commercial banks against U.S. Govt,
and Federal agency securities (through both collateral loans and sales
under agreements to repurchase), plus internal funds used by bank dealer
departments to finance positions in such securities. Borrowings against
securities held under agreement to resell are excluded where the borrowing
contract and the agreement to resell are equal in amount and maturity,
that is, a matched agreement.
NOTE.—Averages for positions are based on number of trading days
in the period; those for financing, on the number of calendar days in the
period.

Federal Finance
1.46

FEDERAL A N D FEDERALLY SPONSORED CREDIT AGENCIES

A35

D e b t Outstanding

Millions of dollars, end of period
1977
Agency

1974

1975

1976
May

June

July

Aug.

Sept.

Oct.

1 Federal and Federally sponsored agencies.

89,381

97,680

103,325

105,823

107,152

108,243

107,868

108,379

109,046

2 Federal agencies
3
Defense D e p a r t m e n t 1
4
Export-Import Bank 2,3
5
Federal Housing Administration 4
6
Government National Mortgage Association
participation certificates 5
7
Postal Service 6
Tennessee Valley Authority
8
9
United States Railway A s s o c i a t i o n 6 . . . .

12,719
1,312
2,893
440

19,046
1,220
7,188
564

21,896
1,113
7,801
575

22,316
1,059
8,596
594

22,220
1,044
8,742
588

22,232
1,035
8,742
583

22,322
1,024
8,742
579

23,055
1,016
9,246
579

23,143

4,280
721
3,070
3

4,200
1,750
3,915
209

4,120
2,998
5,185
104

3,803
2,856
5,175
233

3,803
2,431
5,370
242

3,768
2,431
5,410
263

3,768
2,431
5,490
288

3,768
2,431
5,705
310

3,768
2,431
5,785
324

10 Federally sponsored agencies
11
Federal home loan banks
12
Federal H o m e L o a n Mortgage Corporation.
13
Federal National Mortgage Association . . . .
14
Federal land banks
15
Federal intermediate credit banks
16
Banks f o r cooperatives
17
Student L o a n Marketing Association 7
18
Other

76,662
21,890
1,551
28,167
12,653
8,589
3,589
220
3

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

84,248
16,851
r
l ,698
30,843
18,137
11,174
5,113
430
2

84,932
16,921
1,698
31,378
18,137
11,418
4,948
430
2

86,011

17,328
1,698
31,566
18,719
11,654
4,604
440
2

85,546
17,196
1,686
31,301
18,719
11,786
4,356
500
2

85,324
17,162
1,686
31,491
18,719
11,693
4,061
510
2

85,903
17,325
1,686
31,572
19,118
11,623
4,052
525
2

4,474

17,154

28,711

31,007

30,820

32,443

33,800

35,418

36,722

4,595
1,500
310
1,840
209

5,208
2,748
410
3,110
104

5,273
2,606
430
3,350
233

5,420
2,181
430
3,545
242

5,420

500
220
895
3

7,000
566
1,134

10,750
1,415
4,966

12,250
1,864
5,001

12,900
2,042
4,060

MEMO ITEMS :

19 Federal Financing Bank debt 6 , 8
Lending to Federal and Federally sponsored
agencies:
20
Export-Import B a n k 3
21
Postal Service 6
22
Student L o a n Marketing Association 7
23
Tennessee Valley Authority
24
United States Railway Association 6
25
26
27

Other lending: 9
Farmers H o m e Administration
Rural Electrification Administration.
Other

2,500
356

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
H o m e Administration; Department of Health, Education, and Welfare;
Department of Housing and U r b a n Development; Small Business A d ministration; and the Veterans Administration.
6
Off-budget.




1,006

9,246
583

2,181

2,181

440
3,585
263

500
3,665
288

5,924
2,181
510
3,880
310

5,924
2,181
525
3,960
324

13,650
2,105
4,799

14,465
2,184
5,097

14,615
2,382
5,616

15,295
2,467
6,046

5,420

7
Unlike other Federally sponsored agencies, the Student L o a n
Marketing Association may borrow f r o m the Federal Financing Bank
(FFB) since its obligations are guaranteed by the Department of Health,
Education, and Welfare.
» The FFB, which began operations in 1974, is authorized to purchase
or sell obligations issued, sold, or guaranteed by other Federal agencies.
Since F F B 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 F F B 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
H o m e Administration item consists exclusively of agency assets, while the
Rural Electrification Administration entry contains both agency assets
and guaranteed loans.

A36
1.47

DomesticNonfinancialStatistics • January 1978
N E W SECURITY ISSUES

State and Local Government and Corporate

Millions of dollars
1977
Type of issue or issuer,
or use

1974

1976

1975

Apr.

May

June

July

Aug.

Sept.

State and local government
1 AH issues, new and refunding
2
3
4
5

1

By type of issue:
General obligation
Revenue
Housing Assistance Administration 2
U.S. Govt, loans

24,315

30,607

35,313

3,566

4,308

5,347

13,563
10,212
461
79

16,020
14,511

18,040
17,140

1,701
1,862

2,032
2,272

2,265
3,079

76

133

By type of issuer:
4,784
6
State
8,638
7
Special district and statutory authority
10,817
8
Municipalities, counties, townships, school d i s t r i c t s . . . .

7,438
12,441

10,660

7,054
15,304
12,845

769
1,388
1,407

875
1,836
1,593

1,476
1,873
1,994

23,508

29,495

32,108

2,939

3,781

4,456

4,730
1,712
5,634
3,820
494
7,118

4,689
2,208
7,209
4,392
445
10,552

4,900
2,586
9,594
6,566
483
7,979

249
119
703
658
42
1,168

497
508
1,235
438
130
973

807
218
1,202
816
23
1,390

9 Issues for new capital, total
10
11
12
13
14
15

By use of proceeds:
Education
Transportation
Utilities and conservation
Social welfare
Industrial aid
Other purposes

Corporate
16 All issues 3

38,313

53,619

53,356

3,639

3,735

5,321

4,074

3,322

3,905

17 Bonds

32,066

42,756

42,262

3,048

2,487

4,286

-3,379

2,765

3,279

By type of offering:
18
Public
19
Private placement.

25,903
6,160

32,583
10,172

26,453
15,808

1,961
1,087

1,600

2,045
2,241

2,360
1,019

1,947
818

2,059

887

9,867
1,845
1,550
8,873
3,710
6,218

16,980
2,750
3,439
9,658
3,464
6,469

13,243
4,361
4,357
8,297
2,787
9,222

,128
180
129
602
324
684

644
112
169
581
294
688

1,006
363
25
1,237
371
1,284

,165
526
143
480
258
807

932
380
241
347
45
819

513
623
131
,014
319
679

26 Stocks.

6,247

10,863

11,094

591

1,248

1,035

695

557

626

By type:
27
Preferred.
28
Common.

2,253
3,994

3,458
7,405

2,789
8,305

163
428

212
1,036

332
703

327
368

178
379

347
279

544
940
22
3,964
217
562

1,670
1,470

2,237
1,183
24
6,101
776
771

220
114

8
126

""84

144
66
100
363
19
3

34
94

172
10
75

176
437
103
229
45
45

38
86
40
403
3
55

20
21
22
23
24
25

29
30
31
32
33
34

By industry group:
Manufacturing
Commercial and miscellaneous.
Transportation
Public utility
Communication
Real estate and financial

By industry group:
Manufacturing
Commercial and miscellaneous.
Transportation
Public utility
Communication
Real estate and financial

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.
3
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




1

6,235

1,002
488

1,031

150
45
279

1,220

than $100,000, secondary offerings, undefined or exempted issues as
defined in the Securities Act of 1933, employee stock plans, investment
companies other than closed-end, intracorporate transactions, and sales to
foreigners.
SOURCES.—State and local government securities, Securities Industry
Association; corporate securities, Securities and Exchange Commission.

Corporate Finance
1.48

CORPORATE SECURITIES

A37

Net Change in Amounts Outstanding

Millions of dollars
1976

1975
1974

Source of change, or industry

1975

1976
Q2

Q3

Q4

Q1

Q2

Q3

Q4

1

All issues
1 New issues
2 Retirements
Bonds and notes
4 New issues
6 Net change: Total
By industry:
Manufacturing
Commercial and o t h e r 2
Transportation, including railroad.
Public utility
Real estate and financial

7
8
9
10
12

Common and preferred stock
13 New issues
14 Retirements
15 Net change: Total

39,344
9,935
29,399

53,255
10,991
42,263

53,123
12,184
40,939

15,602
3,211
12,390

9,079
2,576
6,503

13,363
3,116
10,247

13,671
2,315
11,356

14,229
3,668
10,561

11,385
2,478
8,907

13,838
3,723
10,115

31,354
6,255
25,098

40,468
8,583
31,886

38,994
9,109
29,884

11,460
2,336
9,124

6,654
2,111
4,543

9,595
2,549
7,047

9,404
1,403
8,001

10,244
3,159
7,084

8,701
1,826
6,875

10,645
2,721
7,924

7,404
1,116
341
7,308
3,499
5,428

13,219
1,605
2,165
7,236
2,980
4,682

8,978
2,259
3,078
6,829
1,687
7,054

4,574
483
429
1,977
810
852

1,442
221
147
1,395
472
866

2,069
528
1,588
1,211
429
1,222

2,966
203
985
1,820
498
1,530

1,529
726
488
1,260
953
2,128

1,551
610
1,092
2,109
335
1,178

2,932
720
513
1,640
-99
2,218

7,980
3,678
4,302

12,787
2,408
10,377

14,129
3,075
11,055

4,142
875
3,266

2,425
465
1,960

3,768
567
3,200

4,267
912
3,355

3,985
509
3,477

2,684
652
2,032

3,193
1,002
2,191

17
-135
-20
3,834
398
207

1,607
1,137
65
6,015
1,084
468

2,634
762
96
6,171
854
538

500
490
7
1,866
359
43

412
108
53
1,043
97
247

433
462
4
1,537
604
160

838
88
5
2,174
47
203

1,120
318
25
1,300
735
-21

744
117
17
932
19
203

-68
239
49
1,765
53
153

By industry:
17
18
19

Commercial and other 2
Transportation, including railroad
Public utility

21

Real estate and financial

-

1 Excludes issues of investment companies.
Extractive and commercial and miscellaneous companies.

2

NOTE.—Securities and Exchange Commission estimates of cash transactions only, as published in the Commission's Statistical Bulletin.

1.49

O P E N - E N D I N V E S T M E N T COMPANIES

New issues and retirements exclude foreign sales and include sales of
securities held by affiliated companies, special offerings to employees,
new stock issues, and cash proceeds connected with conversions of bonds
into stocks. Retirements, defined in the same way, include securities
retired with internal funds or with proceeds of issues for that purpose.

Net Sales and Asset Position

Millions of dollars
1977
Item

1975

1976
May

June

July

Aug.

Sept.

Oct.

Nov.

INVESTMENT COMPANIES
excluding money market funds
1
2
3

Sales of own shares 1
Redemptions of own shares 2
Net sales

4
5
6

Assets 3
Cash position 4
Other

3,302
3,686
-384

4,226
6,802
2,496

421
531
-110

639
510
129

573
515
58

501
493
8

558
469
89

542
519
23

511
430
81

42,179
3,748
38,431

47,537
2,747
44,790

44,403
2,859
41,544

46,255
2,901
43,354

45,651
3,068
42,583

45,038
3,135
41,903

45,046
3,403
41,643

43,435
3,481
39,954

45,050
3,487
41,563

1
Includes reinvestment of investment income dividends. Excludes
reinvestment of capital gains distributions and share issue of conversions
f r o2m one fund to another in the same group.
Excludes share redemption resulting f r o m conversions f r o m one fund
t o 3another in the same group.
Market value at end of period, less current liabilities.




4
Also includes all U.S. Govt, 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.

A38
1.50

DomesticNonfinancialStatistics • January 1978
CORPORATE PROFITS A N D THEIR DISTRIBUTION
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1976
Account

1975

1974

Q2

Ql

2 Profits tax liability
3 Profits after tax

7 Net cash flow

1977

1976
Q3

Q4

Ql

Q2

Q3

126.9

123.5

156.9

153.5

159.2

159.9

154.8

161.7

174.0

172.8

52.4
74.5

50.2
73.3

64.7
92.2

63.1
90.4

66.1
93.1

65.9
94.0

63.9
90.9

64.4
97.3

69.7
104.3

69.3
103.5

31.0
43.5

32.4
40.9

35.8
56.4

33.6
56.8

35.0
58.1

36.0
58.0

38.4
52.5

38.5
58.8

40.3
64.0

42.3
61.2

81.6
125.1

89.5
130.4

97.2
153.6

94.1
150.9

95.9
154.0

98.2
156.2

100.4
152.9

102.0
160.8

103.5
167.5

105.8
167.0

SOURCE.—Survey of Current Business (U.S. Dept. of Commerce).

1.51

N O N F I N A N C I A L CORPORATIONS

Current Assets and Liabilities

Billions of dollars, end of period
1976
Account

1
Cash
U.S. Govt, securities
Notes and accounts
receivable
U.S. G o v t . 1
Other
Inventories
Other

2
3
4
5
6
7
8

9 Current liabilities
10
11
12
13
14

U.S. Govt. 1
Other
Accrued Federal income taxes
Other

1972

1973

1974

Q2

Q3

Q4

Q2

Ql

Q3

574.4

643.2

712.2

731.6

775.4

791.8

816.8

845.3

874.7

909.8

57.5
10.2
243.4
3.4
240.0
215.2
48.1

61.6

269.6
3.5
266.1
246.7
54.4

62.7
11.7
293.2
3.5
289.7
288.0
56.6

68.1
19.4
298.2
3.6
294.6
285.8
60.0

70.8
23.3
321.8
3.7
318.1
295.6
63.9

71.1
23.9
328.5
4.3
324.2
302.1
66.3

77.0
26.4
328.2
4.3
323.9
315.4
69.8

75.0
27.3
346.6
4.7
342.0
322.1
74.3

77.9
24.1
361.4
4.8
356.6
332.5
78.8

79.1
24.1
379.1
5.3
373.8
343.1
84.5

352.2

401.0

450.6

457.5

475.9

484.1

499.9

516.6

532.0

556.3

234.4
4.0
230.4
15.1
102.6

265.9
4.3
261.6
18.1
117.0

292.7
5.2
287.5
23.2
134.8

288.0
6.4
281.6
20.7
148.8

293.8
6.8
287.0
22.0
160.1

291.7
7.0
284.7
24.9
167.5

302.9
7.0
295.9
26.8
170.2

309.0
6.8
302.2
28.6
179.0

318.9
5.7
313.2
24.5
188.6

329.7
6.2
323.5
26.9
199.7

222.2

242.3

261.5

274.1

299.5

307.7

316.9

328.7

342.8

353.5

11.0

I Receivables from, and payables to, the U.S. Govt, exclude amounts
offset against each other on corporations' books.

1.52

1977

1975

SOURCE.—Securities and Exchange Commission,

BUSINESS E X P E N D I T U R E S on N e w Plant and Equipment
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1976

1975
Industry

1 All industries
Manufacturing
2
Durable goods industries
3
Nondurable goods industries
Nonmanufacturing
Mining
Transportation:
Railroad
Air
Other
Public utilities:
Electric
Gas and other
Communication
Commercial and other 1

4
5
6
7
8
9
10
11

Q4

Ql

Q2

Q3

Q4

Ql

Q2

Q3

Q4

120.82

111.80

114.72

118.12

122.55

125.22

130.16

134.24

138.43

142.02

23.50
29.22

21.07
25.75

21.63
27.58

22.54
28.09

24.59
30.20

25.50
28.93

26.30
30.13

27.26
32.19

27.96
33.40

29.74
34.58

3.98

3.82

3.83

3.83

4.21

4.13

4.24

4.49

4.52

4.54

2.35
1.31
3.56

2.39
1.65
3.56

2.08
1.18
3.29

2.64
1.44
4.16

2.69
1.12
3.44

2.63
1.41
3.49

2.71
1.62
2.96

2.57
1.43
2.96

2.74
1.84
2.18

3.19
2.05
1.72

18.90
3.47
12.93
20.87

17.92
3.00
12.22
20.44

18.56
3.36
12.54
20.68

18.82
3.03
12.62
20.94

18.22
3.45
13.64
20.99

19.49
3.96
14.30
21.36

21.19
4.16
14.19
22.67

21.14
4.16
15.32
22.73

22.24
4.47

22.72
4.78

1? 39.08
in no

lO 7ft
JO.
/U

1 Includes trade, service, construction, finance, and insurance.
Anticipated by business.

2

NOTE.—Estimates for corporate and noncorporate business, excluding




1977

1976

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 F I N A N C E COMPANIES

A39

Assets and Liabilities

Billions of dollars, end of period
1976
1972

Account

1973

1974

1977

1975
Q2

Q3

Q4

QL

Q2

Q3

36.7
42.4
79.2
9.8
69.4
2.7
.8
12.4

37.6
42.4
80.0
10.2
69.9
2.6
1.2
12.7

38.6
44.7
83.4
10.5
72.9
2.6
1.1
12.6

39.2
47.5
86.7
10.6
76.1
2.7
1.0
13.0

40.7
50.4
91.2
11.1
80.1
2.5
1.2
13.7

42.3
50.6
92.9
11.7
81.2
2.5
1.8
14.2

ASSETS
Accounts receivable, gross
Consumer
Business
Total....
LESS: Reserves for unearned income and losses
Accounts receivable, net
Cash and bank deposits
Securities
All other

1
2
3
4
5
6
7
8

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
12.0

36.0
39.3
75.3
9.4
65.9
2.9
1.0
11.8

65.6

73.2

79.6

81.6

85.3

86.4

89.2

92.8

97.5

99.6

5.6
17.3

7.2
19.7

9.7
20.7

8.0
22.2

6.9
22.2

5.5
21.7

6.3
23.7

6.1
24.8

5.7
27.5

5.4
25.7

4.3
22.7
4.8

4.6
24.6
5.6

4.9
26.5
5.5

4.5
21.6
6.8

5.0
30.1
7.8

5.2
31.0
9.5

5.4
32.3
8.1

4.5
34.0
9.5

5.5
35.0
9.4

5.4
34.8
13.7

.4

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

13.2

13.4

13.4

13.9

14.4

14.6

16 Total liabilities and capital

65.6

73.2

79.6

81.6

85.3

86.4

89.2

92.8

97.5

99.6

NOTE.—Components may not add to totals due to rounding.

1.522

DOMESTIC F I N A N C E COMPANIES

Business Credit

Millions of dollars, seasonally adjusted except as noted

Type

Accounts
receivable
outstanding Nov. 30,
19771

Changes in accounts
receivable during—

Extensions

Repayments

1977

1977

1977

Sept.

Oct.

Nov.

Sept.

Oct.

Nov.

Sept.

Oct.

Nov.

1 Total

53,943

-240

1,522

499

11,702

12,461

12,655

11,942

10,939

12,156

2 Retail automotive (commercial vehicles)
3 Wholesale automotive
4 Retail paper on business, industrial, and
farm equipment
5 Loans on commercial accounts r e c e i v a b l e . . .
6 Factored commercial accounts receivable....
7 All other business credit

11,630
11,280

239
-960

152
741

146
-96

1,004
4,233

942
5,488

961
5,104

765
5,193

790
4,747

815
5,200

14,406
3,913
2,294
10,420

369
19
-58
151

415
-128
248
94

357
16
15
61

1,097
2,499
1,477
1,392

1,096
2,032
1,506
1,397

1,176
2,428
1,466
1,520

728
2,480
1,535
1,241

681
2,160
1,258
1,303

819
2,412
1,451
1,459

1

N o t seasonally adjusted.




A40
1.53

DomesticNonfinancialStatistics • January 1978
M O R T G A G E MARKETS
Millions of dollars; exceptions noted.
1977
Item

1974

1975

1976
June

July

Aug.

Sept.

Oct.

Nov.

Terms and yields in primary and secondary markets
P R I M A R Y MARKETS

1
2
3
4
5
6
7
8

Conventional
mortgages on new homes
Terms: 1
Purchase price (thous. dollars)
Amount of loan (thous. dollars)
Loan/price ratio (per cent)
Maturity (years)
Fees and charges (per cent of loan amount) 2 .
Contract rate (per cent per annum)
Yield (per cent per annum):
FHLBB series 3
H U D series 4

40.1
29.8
74.3
26.3
1.30
8.71

44.6
33.3
74.7
26.8
1.54
8.75

48.4
35.9
74.2
27.2
1.44
8.76

53.1
39.5
76.0
27.2
1.25
8.78

53.7
40.0
76.2
27.9
1.31
8.79

54.9
40.8
76.5
28.2
1.30
8.81

56.0
41.7
76.3
28.2
1.34
8.82

r
54.0
r
40.2
r

76.1
'27.6
r
l . 35
r
8.84

55.9
41.8
76.6
28.1
1.36
8.85

8.92
9.22

9.01
9.10

8.99
8.99

8.98
9.00

9.00
9.00

9.02
9.00

9.04
9.00

9.07
9.00

9.07
9.05

9.55
8.72

9.19
8.52

8.82
8.17

8.74
7.95

8.74
7.95

8.74
8.03

8.72
8.03

8.78
8.16

8.78
8.19

9.31
9.43

9.26
9.37

8.99
9.11

8.75
9.12

8.72
9.07

8.76
9.06

8.74
9.05

8.74
9.05

8.85
9.16

SECONDARY MARKETS
9
10
11
12

Yields (per cent per annum) on—
FHA mortgages ( H
U D series) 5
G N M A securities 67
F N M A auctions:
Conventional loans

Activity in secondary markets
F E D E R A L NATIONAL
M O R T G A G E ASSOCIATION
13
14
15
16

Mortgage holdings (end of period)
Total
FHA-insured
VA-guaranteed
Conventional

17
18

Mortgage transactions (during period)
Purchases
Sales

19
20

Mortgage commitments: 8
Contracted (during period)
Outstanding (end of period)

21
22
23
24

Auction of 4-month commitments to buy—
Government-underwritten loans:
Offered 9
Conventional loans:
Offered 9
Accepted

29,578
19,189
8,310
2,080

31,824
19,732
9,573
2,519

32,904
18,916
9,212
4,776

33,918
18,974
9,509
5,435

33,954
18,887
9,449
5,618

34,029
18,785
9,388
5,866

34,149
18,704
9,344
6,100

34,123
18,602
9,287
6,234

34,192
18,535
9,267
6,389

6,953
4

4,263
2

3,606
86

656

322

405

385

251

352

10,765
7,960

6,106
4,126

6,247
3,398

999
5,854

357
5,062

531
4,717

364
3,522

897
3,702

975
4,192

5,462.6
2,371.4

7,042.6
3,848.3

4,929.8
2,787.2

278.9
127.8

206.4
131.4

314.9
221.4

112.9
75.4

613.2
400.5

105.2
76.4

1,195.4
656.5

1,401.3
765.0

2,595.7
1,879.2

371.1
263.0

286.8
184.4

370.2
236.7

246.4
184.4

758.1
529.0

268.8
193.2

F E D E R A L H O M E LOAN
M O R T G A G E CORPORATION
25
26
27

Mortgage holdings (end of period) 1 o
Total
FHA/VA
Conventional

4,586
1,904
2,682

4,987
1,824
3,163

4,269
1,618
2,651

3,389
1,502
1,887

3,483
1,481
2,001

3,424
1,463
1,961

3,376
1,443
1,933

3,402
1,424
1,978

3,266
1,406
1,860

28
29

Mortgage transactions (during period)
Purchases
Sales

2,191
52

1,716
1,020

1,175
1,396

379
336

236
79

455
479

479
386

428
354

576
677

30
31

Mortgage commitments: 1 1
Contracted (during period)
Outstanding (end of period)

4,553
2,390

982
111

1,477
333

511
1,293

511
1,350

567
1,352

547
1,353

465
1,329

574
1,233

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
and5 Urban Development.
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. N o adjustments are made
for F N M A commitment fees or stock related requirements. Monthly
figures are unweighted averages for auctions conducted within the month.
8
Includes some multifamily and nonprofit hospital loan commitments
in addition to 1- to 4-family loan commitments accepted in FNMA's
free market auction system, and through the F N M A - G N M A Tandem
plans.
9 Mortgage amounts offered by bidders are total bids received.
10
Includes participations as well as whole loans.
11
Includes conventional and Government-underwritten loans.

Real Estate Debt
1.54

A41

M O R T G A G E DEBT O U T S T A N D I N G
Millions of dollars, end of period
1977

1976
1972

Type of holder, and type of property

1 All holders
2
1- to 4-family
3
Multifamily
4
Commercial
5
Farm
6 M a j o r 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 - t o 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 - t o 4-family
Multifamily
Commercial
Farm

26 Federal and related agencies
27
Government National Mortgage
28
1- to 4-family
29
Multifamily

Assn.

30
31
32
33
34

Farmers Home Admin
1- to 4-family
Multifamily
Commercial
Farm

35
36
37

Federal Housing and Veterans
1- to 4-family
Multifamily

38
39
40

Federal National Mortgage Assn...
1- to 4-family
Multifamily

41
42
43

Federal land banks
1- to 4-family
Farm

44
45
46

Federal Home Loan Mortgage
1- to 4-family
Multifamily

47 Mortgage pools or trusts 2
48
Government National Mortgage
49
1- to 4-family
50
Multifamily

Admin.

.

Corp..

Assn.

Corp.

1973

1974

1975
Q4

Ql

Q2

Q3

603,417
372,154
82,840
112,665
35,758

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

r

889,062
'556,344
•"104,269
r
171,399
r
57,050

'912,528
'572,709
'105,586
'174,937
'59,296

947,196
599,219
105,902
180,260
61,815

983,565
626,333
107,850
185,526
63,856

450,000
99.314
57,004
5,778
31,751
4,781

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

'662,390
'754,628
'88,116
'8,258
'51,388
'6,866

688,798
161,128
91,820
8,605
53,548
7,155

715,168
168,528
96,039
9,000
56,008
7,481

67,556
46,229
10,910
10,355
62

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

82,273
'53,502
'14,291
'14,422
58

84,051
54,658
14,600
14,734
59

86,103
55,993
14,956
15,094
60

206,182
166,410
21,051
18,721

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

333,703
'269,932
'29,199
'34,572

350,765
284,541
30,517
35,707

366,975
298,122
31,863
36,990

76,948
22,315
17,347
31,608
5,678

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

91,786
15,699
18,921
49,526
7,640

92,854
15,418
18,891
50,405
8,140

93,562
15,533
19,033
50,790
8,206

40,157
5,113
2,513
2,600

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

'67,066
4,013
1,670
2,343

68,301
3,912
1,654
2,258

69,135
3,599
1,522
2,077

1,019
279
29
320
391

1,366
743
29
218
376

1,432
759
167
156
350

1,109
208
215
190
496

1,064
454
218
72
320

500
98
28
64
310

1,043
410
97
126
410

1,342
528
125
162
527

3,338
2,199
1,139

3,476
2,013
1 ,463

4,015
2,009
2,006

4,970
1 ,990
2,980

5,150
1,676
3,474

5,223
'1,730
'3,493

5,222
1,701
3,521

5,100
1,552
3,548

19,791
17,697
2,094

24,175
20,370
3,805

29,578
23,778
5,800

31,824
25,813
6,011

32,904
26,934
5,970

'33,831
26,836
6,995

33,918
27,933
5,985

34,148
28,178
5,970

9,107
13
9,094

11,071
123
10,948

13,863
406
13,457

16,563
549
16,014

19,125
601
18,524

19,942
611
19,331

20,818
628
20,190

21,523
649
20,874

1,789
1,754
35

2,604
2,446
158

4,586
4,217
369

4,987
4,588
399

4,269
3,889
380

3,557
3,200
357

3,388
2,901
487

3,423
2,931
492

14,404
5,504
5,353
151

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

'55,462
34,260
33,190
1,070

58,748
36,573
35,467
1,106

64,398
41,089
39,865
1,224

441
331
110

766
617
149

757
608
149

1,598
1,349
249

2,671
2,282
389

3,570
3,112
458

4,460
3,938
522

5,294
4,675
619

r

51
52
53

Federal Home Loan Mortgage
1- to 4-family
Multifamily

54
55
56
57
58

Farmers Home Admin
1*40 4-family
Multifamily
Commercial
Farm

8,459
5,017
131
867
2,444

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

' 17,63 2
'10,821
'786
'2,570
'3,455

17,715
10,814
111
2,680
3,444

18,015
10,996
791
2,726
3,502

59 Individuals and others 3
60
1 - t o 4-family
61
Multifamily
62
Commercial
63
Farm

98,856
45,040
21,465
19,043
13,308

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

124,858
62,430
20,173
21,622
20,633

127,610
64,192
19,387
22,395
21,636

131,349
67,336
18,536
23,060
22,417

134,864
69,750
18,152
23,756
23,206

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 f r o m various institutional and Govt, sources,
with some quarters estimated in part by Federal Reserve in conjunction
with the Federal H o m e Loan Bank Board and the Dept. of Commerce.
Separation of nonfarm mortgage debt by type of property, if not reported directly, and interpolations and extrapolations where required, are
estimated mainly by Federal Reserve. Multifamily debt refers to loans on
structures of 5 or more units.

A42
1.55

DomesticNonfinancialStatistics • January 1978
CONSUMER INSTALMENT CREDIT

Total Outstanding, and Net Change

Millions of dollars
1977
Holder, and type of credit

1974

1975

1976
May

June

July

Aug.

Sept.

Oct.

Nov.

Amounts outstanding (end of period)
157,454

164,955

185,489

192,828

196,998

199,971

204,358

207,294

209,141

212,074

By holder:
Commercial banks
Finance companies
Credit unions
Retailers 1
Others 2

75,846
36,087
21,895
17,933
5,693

78,667
35,994
25,666
18,002
6,626

89,511
38,639
30,546
19,052
7,741

93,875
40,127
32,704
17,911
8,211

96,149
40,712
33,750
18,032
8,355

97,794
41,398
34,122
18,137
8,520

100,059
41,987
35,077
18,475
8,760

101,564
42,333
35,779
18,725
8,894

102,504
42,704
35,993
18,961
8,978

103,469
43,322
36,488
19,629
9,166

7
8
9
10
11
12
13

By type of credit:
Automobile
Commercial banks
Indirect
Direct
Finance companies
Credit unions
Others

52,871
30,994
18,687
12,306
10,623
10,869
386

55,879
31,553
18,353
13,200
11,155
12,741
430

66,116
37,984
21,176
16,808
12,489
15,163
480

70,857
41,060
22,606
18,453
13,023
16,234
540

72,829
42,307
23,258
19,050
13,219
16,754
549

74,304
43,211
23,735
19,476
13,597
16,938
558

76,027
44,262
24,277
19,985
13,783
17,412
570

77,207
44,933
24,717
20,216
13,930
17,761
584

77,845
45,399
24,972
20,427
13,998
17,867
581

78,757
45,845
25,228
20,616
14,205
18,113
594

14
15
16

Mobile homes
Commercial banks
Finance companies

14,618
8,972
3,525

14,423
8,649
3,451

14,572
8,734
3,273

14,540
8,680
3,149

14,627
8,722
3,136

14,713
8,761
3,126

14,812
8,794
3,114

14,880
8,828
3,119

14,929
8,839
3,116

14,999
8,856
3,123

17
18

Home improvement
Commercial banks

8,522
4,694

9,405
4,965

10,990
5,554

11,507
5,744

11,794
5,889

12,025
6,022

12,329
6,158

12,532
6,265

12,703
6,377

12,879
6,447

19
20

Revolving credit:
Bank credit cards
Bank check credit

8,281
2,797

9,501
2,810

11,351
3,041

11,287
3,148

11,563
3,230

11,754
3,295

12,227
3,409

12,651
3,504

12,829
3,551

13,096
3,601

21
22
23
24
25
26
27
28

Allother
Commercial banks, total
Personal loans
Finance companies, total
Personal loans
Credit unions
Retailers
Others

70,364
20,108
13,771
21,590
16,985
9,174
17,933
1,559

72,937
21,188
14,629
21,238
17,263
10,754
18,002
1,755

79,418
22 Ml
15,669
22,749
18,554
12,799
19,052
1,971

81,488
23,955
16,464
23,827
19,214
13,703
17,911
2,092

82,955
24,437
16,749
24,223
19,540
14,141
18,032
2,121

83,880
24,752
16,922
24,538
19,808
14,297
18,137
2,157

85,554
25,209
17,238
24,951
20,118
14,697
18,475
2,221

86,519
25,383
17,373
25,143
20,256
14,991
18,725
2,277

87,283
25,510
17,452
25,448
20,498
15,081
18,961
2,283

88,743
25,626
17,555
25,850
20,852
15,289
19,629
2,350

1 Total
2
3
4
5
6

Net change (during period) 3
29 Total

9,280

7,504

20,533

2,655

2,422

2,464

2,651

2,351

2,626

2,853

30
31
32
33
34

By holder:
Commercial banks
Finance companies
Credit unions
Retailers 1
Others 2

3,975
731
2,262
1,538
774

2,821
-90
3,771
69
933

10,845
2,644
4,880
1,050
1,115

1,235
460
665
210
84

1,422
182
519
144
154

1,150
524
368
286
136

1,448
321
472
170
240

1,228
378
458
144
143

1,315
487
469
280
75

1,384
543
566
184
177

35
36
37
38
39
40
41

By type of credit:
Automobile
Commercial banks
Indirect
Direct
Finance companies
Credit unions
Other

500
-508
-310
-198
-116
1,123
2

3,007
559
-334
894
532
1,872
44

10,238
6,431
2,823
3,608
1,334
2,422
50

1,247
620
273
347
258
352
17

963
745
365
380
-28
244
2

1,069
584
290
294
275
208
2

1,054
125
357
368
65
237
27

1,105
714
466
248
128
228
34

850
587
295
292
52
222
-11

1,241
125
444
281
242
263
10

42
43
44

Mobile homes
Commercial banks
Finance companies

1,068
632
166

-195
-323
-73

150
85
-177

-6
12
-24

34
3
-21

57
19
-12

55
3
-18

32
10
-3

44
15
-11

74
23
4

45
46

Home improvement
Commercial banks

1,094
611

881
271

1,585
588

133
66

181
75

165
76

183
62

143
11

201
115

211
99

47
48

Revolving credit:
Bank credit cards
Bank check credit

1,443
543

1,220
14

1,850
231

192
103

238
90

184
39

315
60

279
49

287
57

243
27

49
50
51
52
53
54
55
56

Allother
Commercial banks, total
Personal loans
Finance companies, total
Personal loans
Credit unions
Retailers
Others

4,631
1,255
898
746
486
948
1,538
145

2,577
1,080
858
-348
279
1,580
69
196

6,479
1,659
1,040
1,509
1,290
2,045
1,050
217

985
242
170
227
184
258
210
48

916
271
180
226
185
239
144
36

951
248
143
260
228
129
286
28

984
283
161
273
186
200
170
59

743
99
56
251
223
197
144
52

1,188
254
142
448
353
204
280
2

1,057
261
183
293
235
252
184
61

1
Excludes 30-day charge credit held by retailers, oil and gas companies,
and travel and entertainment companies.
2
Mutual savings banks, savings and loan associations, and auto dealers.
3 Net change equals extensions minus liquidations (repayments, chargeoffs, and other credits); figures for all months are seasonally adjusted.




NOTE.—Total consumer noninstalment credit outstanding—credit
scheduled to be repaid in a l u m p sum, including single-payment loans,
charge accounts, and service credit—amounted to $38.7 billion at the
end of 1976, $35.7 billion at the end of 1975, and $33.8 billion at the end
of 1974. Comparable d a t a for Dec. 31, 1977, will be published in the
February 1978 BULLETIN.

Consumer Debt
1.56

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

A43

Extensions and Liquidations

Millions of dollars
1977
Holder, and type of credit

1974

1975

1976
May

June

July

Aug.

Sept.

Oct.

Nov.

Extensions 3
157,200

164,169

193,328

18,503

18,810

18,631

19,204

19,164

19,787

19,680

By holder:
Commercial banks
Finance companies
Credit unions
Retailers 1
Others 2

72,605
34,061
19,596
27,034
3,904

77,312
31,173
24,096
27,049
4,539

94,220
36,028
28,587
29,188
5,305

9,070
3,359
2,860
2,728
485

9,232
3,444
2,769
2,806
559

9,143
3,335
2,663
2,951
540

9,426
3,459
2,806
2,840
673

9,442
3,514
2,773
2,860
575

9,802
3,653
2,858
2,961
512

9,688
3,602
2,920
2,857
612

7
8
9
10
11
12
13

By type of credit:
Automobile
Commercial banks
Indirect
Direct
Finance companies
Credit unions
Others

45,429
26,406
15,576
10,830
8,604
10,015
404

51,413
28,573
15,766
12,807
9,674
12,683
483

62,988
36,585
19,882
16,704
11,209
14,675
518

6,048
3,416
1,791
1,625
1,114
1,457
60

6,063
3,527
1,865
1,661
1,099
1,390
47

5,966
3,553
1,905
1,649
963
1,402
48

6,158
3,616
1,925
1,692
1,036
1,434
72

6,109
3,640
2,028
1,612
1,013
1,376
80

6,083
3,642
1,976
1,666
989
1,414
38

6,330
3,717
2,076
1,641
1,097
1,458
58

14
15
16

Mobile homes
Commercial banks
Finance companies

5,782
3,486
1,376

4,323
2,622
764

4,841
3,071
690

415
275
50

420
244
48

455
267
55

479
267
55

424
261
51

457
270
61

464
280
54

17
18

Home improvement
Commercial banks

5,211
2,789

5,556
2,722

6,736
3,245

636
317

686
328

671
330

733
332

679
340

718
373

761
370

19
20

Revolving credit:
Bank credit cards
Bank check credit

17,098
4,227

20,428
4,024

25,862
4,783

2,621
506

2,640
521

2,566
499

2,711
510

2,847
485

2,973
487

2,828
492

21
22
23
24
25
26
27

All other
Commercial banks, total.
Personal loans
Finance companies, total.
Personal loans
Credit unions
Retailers..;
Others

79,453
18,599
13,176
23,796
17,162
8,560
27,034
1,463

78,425
18,944
13,386
20,657
16,944
10,134
27,049
1,642

88,117
20,673
14,480
24,087
19,579
12,340
29,188
1,830

8,277
1,935
1,396
2,188
1,744
1,233
2,728
193

8,480
1,973
1,413
2,289
1,850
1,225
2,806
187

8,476
1,928
1,350
2,309
1,836
1,113
2,951
175

8,612
1,990
1,404
2,361
1,870
1,207
2,840
214

8,620
1,870
1,346
2,440
1,938
1,240
2,860
211

9,067
2,056
1,463
2,596
2,044
1,282
2,961
172

8,804
2,001
1,434
2,441
1,914
1,285
2,857
221

1 Total
2
3
4
5
6

Liquidations 3
29 Total

147,920

156,665

172,795

15,849

16,388

16,167

16,553

16,814

17,160

16,826

30
31
32
33
34

By holder:
Commercial banks
Finance companies
Credit unions
Retailers i
Others 2

68,630
33,330
17,334
25,496
3,130

74,491
31,263
20,325
26,980
3,606

83,376
33,384
23,707
28,138
4,191

7,835
2,899
2,195
2,518
401

7,810
3,261
2,250
2,662
405

7,992
2,811
2,295
2,665
404

7,978
3,138
2,333
2,670
433

8,214
3,135
2,316
2,716
432

8,487
3,166
2,389
2,681
437

8,305
3,059
2,354
2,673
435

35
36
37
38
39
40
41

By type of credit:
Automobile
Commercial banks
Indirect
Direct
Finance companies
Credit unions
Others

44,929
26,915
15,886
11,029
8,720
8,892
402

48,406
28,014
16,101
11,913
9,142
10,811
439

52,750
30,154
17,059
13,095
9,875
12,253
468

4,801
2,796
1,518
1,278
856
1,106
43

5,100
2,781
1,500
1,281
1,127
1,146
45

4,897
2,969
1,615
1,354
688
1,194
46

5,104
2,891
1,568
1,324
970
1,197
45

5,005
2,926
1,562
1,364
885
1,148
46

5,234
3,055
1,681
1,374
937
1,193
49

5,089
2,991
1,632
1,360
855
1,195
48

42
43
44

Mobile homes
Commercial banks
Finance companies

4,715
2,854
1,210

4,517
2,944
837

4,691
2,986
867

421
263
74

386
241
68

397
248
68

424
264
73

392
251
54

413
255
72

390
257
50

45
46

Home improvement
Commercial banks

4,117
2,178

4,675
2,451

5,151
2,657

502
251

505
253

506
254

551
270

536
263

517
257

550
272

47
48

Revolving credit:
Bank credit cards
Bank check credit

15,655
3,684

19,208
4,010

24,012
4,552

2,430
402

2,403
431

2,382
459

2,396
450

2,567
436

2,687
430

2,585
466

49
50
51
52
53
54
55
56

Allother
Commercial banks, total.
Personal loans
Finance companies, total,
Personal loans
Credit unions
Retailers
Others

74,821
17,345
12,278
23,050
16,676
7,613
25,496
1,318

75,849
17,864
12,528
21,005
16,665
8,554
26,980
1,446

81,638
19,014
13,439
22,578
18,289
10,295
28,138
1,613

7,292
1,692
1,226
1,961
1,560
975
2,518
146

7,564
1,702
1,233
2,063
1,666
986
2,662
151

7,525
1,680
1,207
2,049
1,609
984
2,665
146

7,628
1,707
1,243
2,089
1,684
1,008
2,670
155

7,877
1,771
1,291
2,189
1,714
1,043
2,716
158

7,880
1,802
1,321
2,148
1,692
1,078
2,681
170

7,747
1,734
1,250
2,148
1,678
1,033
2,673
159

i Excludes 30-day charge credit held by retailers, oil and gas companies,
and travel and entertainment companies.




2
3

Mutual savings banks, savings and loan associations, and auto dealers.
Monthly figures are seasonally adjusted.

A44
1.57

DomesticNonfinancialStatistics • January 1978
F U N D S R A I S E D I N U.S. CREDIT M A R K E T S
Billions of dollars; half-year data are at seasonally adjusted annual rates.
1975
Transaction category, or sector

1972

1973

1974

1975

1976

1977

1976
HI

H2

HI

H2

HI

Nonfinancial sectors
1 Total funds raised
Excluding equities
2
By sector and instrument:
3 U.S. Govt
Public debt securities
4
Agency issues and mortgages
5
6
All other nonfinancial sectors
Corporate equities
7
Debt instruments
8
9
Private domestic nonfinancial sectors
Corporate equities
10
Debt instruments
11
12
Debt capital instruments
State and local obligations
13
Corporate bonds
14
Mortgages:
Home
15
Multifamily residential
16
Commercial
17
18
19
Other debt instruments
Consumer credit
20
Bank loans n.e.c
?1
Open market paper
22
Other
23

177.8
167.2

202.0
194.3

189.6
185.8

205.6
195.5

268.3
257.8

180.8
170.3

230.4
220.8

254.5
241.1

282.1
274.4

309.6
300.8

1
2

15.1
14.3
.8
162.7
10.5
152.2
158.7
10.9
147.8
102.3
14.7
12.2

8.3
7.9
.4
193.8
7.7
186.1
187.5
7.9
179.7
105.0
14.7
9.2

11.8
12.0
-.2
177.8
3.8
174.0
162.4
4.1
158.3
98.7
17.1
19.7

85.4
85.8
-.4
120.2
10.0
110.1
107.0
9.9
97.1
95.8
13.6
27.2

69.0
69.1
—. 1
199.2
10.5
188.8
179.0
10.5
168.4
122.7
15.1
22.8

79.6
80.4
-.8
101.1
10.5
90.7
93.1
10.3
82.8
93.8
12.3
33.4

91.2
91.3
-.1
139.2
9.6
129.6
120.9
9.5
111.4
97.8
14.9
21.1

73.1
73.0
.1
181.4
13.3
168.0
166.2
13.3
152.9
111.7
14.7
20.4

64.9
65.3
-.3
217.1
7.6
209.5
191.7
7.7
184.0
133.7
15.5
25.3

40.3
40.9
-.6
269.3
8.8
260.5
264.9
8.2
256.6
163.5
27.2
19.6

3
4
5
6
7
8
9
10
11
12
13
14

42.6
12.7
16.5
3.6
45.5
18.9
18.9
.8
6.9

46.4
10.4
18.9
5.5
74.6
22.0
39.8
2.5
10.3

34.8
6.9
15.1
5.0
59.6
10.2
29.1
6.6
13.7

39.5
11.0
4.6
1.3
9.4
-14.5
-2.6
9.0

63.6
1.6
13.4
6.1
45.7
23.6
3.7
4.0
14.4

33.4
.4
9.4
5.1
-11.0
2.2
-20.9
-1.4
9.0

45.6
-.4
12.6
4.0
13.6
16.6
-8.2
-3.8
9.0

57.1
.6
13.9
5.0
41.2
22.9
-.3
6.4
12.2

70.2
2.6
12.9
7.3
50.3
24.2
7.8
1.6
16.7

85.6
4.6
17.3
9.2
93.2
35.2
37.2
5.0
15.9

15
16
17
18
19
20
21
22
23

24
25
76
27
28
29

158.7
14.5
66.6
5.8
14.1
57.7

187.5
13.2
79.1
9.7
12.8
72.7

162.4
16.2
49.2
7.9
7.4
81.8

107.0
11.2
48.6
8.7
2.0
36.6

179.0
14.6
89.8
11.0
5.2
58.3

93.1
10.0
37.3
8.7
-1.1
38.3

120.9
12.3
59.9
8.8
5.1
34.8

166.2
13.0
83.9
10.6
2.7
56.1

191.7
16.3
95.6
11.6
7.6
60.5

264.9
20.6
129.6
16.9
10.6
87.2

24
25
26
27
28
29

4.0
-.4
4.4
1.0
2.9
-1.0
1.5

6.2
-.2
6.4
1.0
2.8
.9
1.7

15.4
-.2
15.7
2.1
4.7
7.3
1.6

13.2
.1
13.0
6.2
3.7
.3
2.8

20.3

8.0
.1
7.9
5.7
-.4
-.8
3.4

18.3
.1
18.2
6.8
7.8
1.4
2.2

15.2

20.3
8.4
6.7
1.9
3.3

15.1
7.3
3.4
1.5
2.9

25.4
—. 1
25.5
9.5
10.0
2.4
3.6

4.4
.6
3.9
4.3
-5.8
2.2
3.1

30
31
32
33
34
35
36

30
31
32
33
34
35
36

State and local governments
Households
Farm
Nonfarm noncorporate
Corporate
Foreign
Corporate equities
Bonds
Open market paper
U.S. Govt, loans

*

*

*

Financial sectors
37 Total funds raised
By instrument:
U.S. Govt, related
38
Sponsored credit agency securities
39
Mortgage pool securities
40
41
42
Corporate equities
43
44
Debt instruments
45
46
Mortgages
Bank loans n.e.c
47
Open market paper and Rp's
48
49
50
51
52
53
54
55
56
57
58
59
60

By sector:
Sponsored credit agencies
Mortgage pools
Bank affiliates
Savings and loan associations
Other insurance companies
Finance companies
REIT's
Open-end investment companies

28.3

51.6

39.4

14.0

28.6

15.1

12.8

27.8

29.4

8.4
3.5
4.9

19.9
16.3
3.6
31.7
1.5
30.2
3.5
-1.2
8.9
11.8
7.2

13.5
2.3
10.3
.9
.4
.4
2.9
2.3
-3.6
2.8
-4.0

18.6
3.3
15.7
-.4
10.0
.7
9.2
5.8
2.1
-3.7
7.1
-2.0

14.5
1.9
11.5
1.1
.6
1
.6
2.3
1.4
-4.7
8.2
-6.6

12.6
2.8
9.2
.6
.2
-.1
.3
3.5
3.2
-2.5
-2.6
-1.3

18.6
4.5
14.2

19.9
2.8
17.1
5.1
1.7
5.9
4.4

23.1
16.6
5.8
.7
16.3
.3
16.0
2.1
-1.3
4.6
3.9
6.7
17.3
5.8
16.3
-1.1
3.5
6.3
.9
4.5
.6
-.7
2.4

3.2
10.3
.4
1.7
.3
-2.2
1.0
.5
-2.0 ,
-.1
1.3

2.9
15.7
10.0
7.4
-.8

3.0
11.5
.6
5.7
.9
-6.8
.9
-1.4
-2.0
.7
2.6

3.4
9.2
.2
-2.3
-.3
2.3
1.0
2.4
-1.9
-.9

*

3.5
4.9
19.9
4.8
.7
2.0
.5
6.2
6.3
-.5

16.3
3.6
31.7
8.1
2.2
6.0
.5
9.4
6.5
-1.2

*

*

1.0
6.4
-2.8
-1.0
-.3

.

*

64.0 37

9.1
-.7
9.8
7.0
1.4
-3.0
6.1
-1.6

18.6
2.1
17.2
-.7
10.8
2.2
8.6
4.5
2.8
-4.4
8.1
-2.4

25.7
10.1
17.9
-2.3
38.3
.9
37.4
8.2
3.0
-2.7
25.4
3.5

38
39
40
41
42
43
44
45
46
47
48
49

4.5
14.2
9.1
9.0
-1.3
.5
1.0
5.7
-2.5
-2.5
-.7

1.4
7.8
17.2
17.9
10.8 ^ 38.3
15.1
5.9
-.3
1.3
-.5
10.6
1.0
1.0
14.9
7.1
-3.0
-2.9
.5
-1.1
.2
-.5

50
51
52
53
54
55
56
57
58
59
60

282.2
-2.5
15.1
269.6
91.9
14.7
34.7
77.9
22.9
.1
14.0
13.4

311.4
.5
9.3
301.6
84.3
15.5
39.3
95.7
24.2
13.4
12.0
17.2

61
62
63
64
65
66
67
68
69
70
71
72

*

All sectors
61 Total funds raised, by instrument
Investment company shares
62
63
64
Debt instruments
65
U.S. Govt, securities
State and local obligations
66
Corporate and foreign bonds
67
68
69
70
71
Open market paper and Rp's
72
Other loans




206.1
-.5
13.8
192.8
23.6
14.7
18.4
77.0
18.9
27.8
4.1
8.4

253.7
-1.2
10.4
244.5
28.3
14.7
13.6
79.9
22.0
51.6
15.2
19.1

229.0
-.7
4.8
224.9
34.3
17.1
23.9
60.5
10.2
38.4
17.8
22.7

219.5
-.1
10.2
209.5
98.2
13.6
36.3
57.2
9.4
-14.4
.5
8.7

296.8
-1.0
12.2
285.6
88.1
15.1
37.0
86.8
23.6
6.7
13.0
15.3

195.9
.7
9.8
185.4
93.1
12.3
41.3
49.5
2.2
-25.9
6.1
6.9

243.2
-.9
10.5
233.6
103.2
14.9
31.3
65.0
16.6
-2.9
-5.0
10.5

373.6
-1.1
10.8
363.9
68.4
27.2
32.2
119.6
35.2
28.7
32.5
20.1

Flow of Funds
1.58

A45

D I R E C T A N D I N D I R E C T SOURCES OF F U N D S TO CREDIT M A R K E T S
Billions of dollars, except as noted; half-year data are at seasonally adjusted annual rates.
1975
1975

1976

1973

1974

167.2

194.3

185.8

195.5

257.8

170.3

220.8

19.8
7.6
7.0
5.1

34.1
9.5
8.2
7.2
9.2

52.7
11.9
14.7
6.7
19.5

44.3
22.5
16.2
-4.0
9.5

54.6
26.8
12.8
-2.0
16.9

55.0
33.4
16.9
-6.6
11.3

1.8
9.2
.3
8.4
8.4

2.8
21.4
9.2
.6
19.9

9.8
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

155.9
16.0
14.7
13.1
48.2
63.9

180.2
18.8
14.7
10.0
48.4
95.4
7.2

156.1
22.4
17.1
20.9
26.9
75.4
6.7

164.8
75.7
13.6
32.8
23.2
15.6
-4.0

Private financial intermediation
19 Credit market funds advanced by private
financial institutions
20
Commercial banking
21
Savings institutions
22
Insurance and pension funds
23
Other finance

149.7
70.5
48.2
17.2
13.9

164.9
86.5
36.9
23.9
17.5

126.3
64.6
26.9
30.0
4.7

24 Sources of funds
25
Private domestic deposits
26
Credit market borrowing

149.7
100.8
17.1

164.9
86.5
30.2

31.8
5.3
.7
11.6
14.1

1 Total funds advanced in credit markets to
By public agencies and foreign:

5
7

F H L B advances to S&L's
Totals advanced, by sector
U S Govt

11 Agency borrowing not included in line 1
Private domestic funds advanced

H2

HI

241.1

274.4

300.8

1

33.6
11.6
15.5
-1.3
7.8

53.2
27.1
12.1
-1.6
15.6

56.0
26.5
13.5
-2.4
18.3

74.0
31.7
20.0
3.5
18.8

2
3
4
5
6

15.9
16.5
7.6
15.0
14.5

14.3
12.6
9.5
-2.7
12.6

6.4
20.7
14.5
11.6
18.6

11.4
20.6
5.2
18.8
18.6

221.8
61.3
15.1
30.3
52.4
60.8
-2.0

129.8
59.7
12.3
38.8
16.7
-4.3
-6.6

199.7
91.6
14.9
26.8
29.6
35.5
-1.3

206.6
64.8
14.7
26.8
45.5
53.2
-1.6

237.0
57.8
15.5
33.9
59.2
68.3
-2.4

252.5
36.7
27.2
20.9
70.1
101.1
3.5

12
13
14
15
16
17
18

119.9
27.6
52.0
41.5
-1.1

187.2
58.0
71.7
47.6
9.9

99.8
14.4
48.5
38.3
-1.4

140.0
40.7
55.4
44.7
-.7

167.6
44.5
71.8
47.8
3.4

206.8
71.5
71.7
47.3
16.3

233.9
80.1
84.6
55.3
13.9

19
20
21
22
23

126.3
69.4
16.0

119.9
90.9
.4

187.2
122.8
9.2

99.8
90.3
.6

140.0
91.5
.3

167.6
106.1
9.8

206.8
139.5
8.6

233.9 24
122.8 25
3 7 . 4 26

48.2
6.9
-1.0
18.4
23.9

40.9
14.5
-5.1
26.0
5.4

28.6
-.4
-1.7
29.0
1.7

55.1
3.1
_ l
35 !8
16.4

9.0
-5.6
-3.5
26.4
-8.3

48.2
4.8
.1
31.5
11.7

51.7
-2.6
2.9
35.1
16.2

58.7
8.8
-3.1
36.5
16.6

73.7
-4.1
-1.1
46.2
32.7

27
28
29
30
31

23.3
3.9
3.0
4.4
2.9
9.1

45.5
19.5
5.4
1.3
12.5
6.8

45.9
18.2
10.0
4.7
4.8
8.2

45.3
22.2
6.3
8.2
3.1
5.5

43.8
19.4
4.7
4.0
4.0
11.8

30.6
6.0
7.2
10.8
1.5
5.1

60.0
38.4
5.5
5.6
4.7
6.0

48.8
22.6
3.9
4.9
6.7
10.8

38.8
16.1
5.5
3.1
1.3
12.8

56.0
11.0
9.5
.4
18.7
16.4

32
33
34
35
36
37

105.2
83.8
7.7
30.6
45.4

90.4
76.1
18.1
29.6
28.5

75.7
66.7
18.8
26.1
21.8

97.1
84.8
-14.0
39.4
59.4

130.3
113.0
-14.2
58.1
69.1

96.0
73.0
-27.8
39.3
61.5

98.2
96.5
-.2
39.4
57.4

111.0
98.3
-18.0
50.2
66.1

149.5
127.6
-10.4
66.0
72.1

127.1
106.6
-2.6
41.9
67.4

38
39
40
41
42

21.4
17.0
4.4

14.3
10.3
3.9

8.9
2.6
6.3

12.3
6.1
6.2

17.2
9.9
7.3

23.0
17.3
5.7

1.7
-5.0
6.7

12.7
7.8
4.9

21.6
11.9
9.8

20.5 43
16.2 44
4 . 3 45

128.5

136.0

121.5

142.4

174.0

126.6

158.2

159.8

188.1

183.1 46

11.8
96.1
13.7

17.5
91.5
7.5

28.4
80.9
25.7

22.7
72.8
5.8

21.2
84.4
18.3

32.3
76.9
9.4

15.2
70.1
2.1

22.1
81.1
9.0

20.4
87.3
27.6

2 4 . 6 47
92.6 48
2 4 . 9 49

13.3
-.5
13.8
15.3
-2.1

9.2
-1.2
10.4
13.3
-4.1

4.1
-.7
4.8
5.8
-1.6

10.0
-.1
10.2
9.4
.6

11.2
-1.0
12.2
12.3
-1.1

10.5
.7
9.8
10.7
-.2

9.5
-.9
10.5
8.1
1.4

12.6
-2.5
15.1
12.6

9.8
.5
9.3
12.0
-2.2

*

*

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 Govt securities
34
State and local obligations
35
Corporate and foreign bonds
36
Commercial paper
37
Other
38 Deposits and currency
39
Time and savings accounts
40
Large negotiable C D ' s
41
Other at commercial banks
42
At savings institutions
43
44
45

Money
D e m a n d deposits
Currency

46 Total of credit market instruments, deposits
47
48
49

Public support rate (in per cent)
Private financial intermediation (in per cent)
Total foreign funds
MEMO : Corporate equities not included above

51

Mutual fund shares

53 Acquisitions by financial institutions

HI

NOTES BY LINE NO.

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 f u n d s 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.
Lines 39 plus 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.




1977

1976

1972

Transaction category, or sector

H2

HI

*

5.9 7
27.5 8
11.6 9
28.9 10
2 5 . 7 11

9.7
-1.1
10.8
6.5
3.3

50
51
52
53
54

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. Lines 10 plus 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
f r o m 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 • January 1978
N O N F I N A N C I A L BUSINESS ACTIVITY

Selected Measures

1967 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted.
1977
1974

Measure

Market groupings:
3
4

Final, total
Consumer goods

7

Materials....
Industry groupings:
Manufacturing

8

1975

1976
May

June

July

Aug.

Sept.

Oct.

Nov.

Dec.

129.3

117.8

129.8

137.0

137.8

138.7

138.1

138.5

138.8

139.3

139.6

129.3
125.1
128.9
120.0
135.3
132.4

119.3
118.2
124.0
110.2
123.1
115.5

129.3
127.2
136.2
114.6
137.2
130.6

136.5
134.7
143.1
123.2
143.5
137.8

137.3
135.4
143.8
124.1
144.7
138.7

138.7
136.8
145.4
124.8
146.3
138.9

138.4
136.3
144.7
124.9
146.1
137.6

138.8
136.8
144.9
125.6
146.5
137.9

138.9
136.6
145.2
124.9
147.0
138.8

139.3
137.0
145.7
125.3
147.9
139.2

140.0
137.6
146.2
126.0
149.2
139.1

129.4

116.3

129.5

137.1

137.8

138.5

138.6

139.0

139.2

139.6

140.4

84.2
87.7

73.6
73.6

80.2
80.4

82.8
82.7

83.0
83.0

83.1
82.9

82.9
82.0

82.9
82.0

82.8
82.3

82.8
82.4

83.0
82.1

1

9
10

Capacity utilization (per cent) in—
Manufacturing
Industrial materials industries

11 Construction contracts 2

173.9

162.3

190.2

317.0

284.0

218.0

267.0

279.0

244.0

258.0

3

12 Nonagricultural employment, total
13
Goods-producing, total
14
Manufacturing, total
15
Manufacturing, production-worker
16
Service-producing

119.1
106.2
103.1
102.1
126.1

'117.0
'97.1
94.3
91.3
127.8

120.6
100.3
97.5
95.2
131.7

124.4
104.5
100.8
98.9
135.3

124.7
104.7
100.9
98.9
135.6

125.1
104.9
101.1
'98.9
136.2

125.2
104.5
100.8
98.4
136.6

125.7
104.7
100.8
98.5
137.1

125.9
105.0
101.1
98.8
137.3

126.4
105.4
101.4
99.2
137.8

17 Personal income, total 4
18
Wages and salary disbursements
19
Manufacturing .
.

184.3
178.9
157.6

200.0
188.5
157.3

220.7
208.6
177.7

242.1
229.7
198.5

243.3
230.8
200.4

245.6
232.3
201.2

'247.2
'233.4
200.7

'249.2
'235.2
202.2

'252.6
'238.7
'205.1

254.9
240.0
206.8

180.8

199.2

217.8

239.4

21 Retail sales 5

170.1

184.6

203.5

221.6

221.0

223.7

225.5

225.4

'232.2

'234.9

233.3

Prices: 6
Consumer
Wholesale

147.7
160.1

161.2
174.1

170.5
182.9

'180.6
'195.2

'181.8
'194.4

'182.6
'194.9

'183.3
'194.6

'184.0
'195.8

'184.5
'196.3

185.4
197.0

198.2

20 Disposable personal income

22
23

.

'241,3

6

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
Based on data in Employment and Earnings (U.S. Dept. of Labor).
Series covers employees only, excluding personnel in the Armed Forces.
4
Based on data in Survey of Current Business (U.S. Dept. of Commerce). Series for disposable income is quarterly.
5 Based on Bureau of Census data published in Survey of Current
Business (U.S. Dept. of Commerce).

2.11

126.7
105.5
102.2
100.1
138.3

D a t a without seasonal adjustment, as published in Monthly
Labor
Review (U.S. Dept. of Labor). Seasonally adjusted d a t a ' f b r changes in
the price indexes may be obtained f r o m the Bureau of Labor Statistics,
U.S. Dept. of Labor.
NOTE.—Basic data (not index numbers) for series mentioned in notes
3, 4. and 5, and indexes for series mentioned in notes 2 and 6 may also be
found in the Survey of Current Business (U.S. Dept. of Commerce).
Figures for industrial production for the last 2 months are preliminary
and estimated, respectively.

OUTPUT, CAPACITY, A N D CAPACITY UTILIZATION
Seasonally adjusted
1977

1977

1977
Series
Q2

Ql

Q3

r

Q4

Output (1967 = 100)

Ql

Q2

Q3

|

Q4

Capacity (per cent of 1967 output)

Ql

Q2

Q3 '

Q4

Utilization rate (per cent)

1 Manufacturing

133.1

136.9

138.7

139.7

164.0

165.6

167.1

168.7

81.2

82.7

83.0

82.8

2

Primary processing

140.1
129.3

147.4
134.2

148.4
135.2

170.2
160.7

171.8
162.2

173.5
163.8

175.1
165.3

82.3
80.5

85.1
81.4

85.0
81.9

84.8
81.8

3

Advanced processing

146.3
132.0

133.1

137.7

138.2

139.0

165.5

166.6

167.8

168.9

80.4

82.6

82.4

82.3

171.6
145.3
178.8
187.1
142.5
151.3
221.2
145.2

172.8

79.4
80.2
87.2
86.3
78.1
89.5
87.7
84.8

79.2
75.2
86.4
85.2
78.9
89.3
85.8
85.0

4 Materials
5
6
7
8
9
10
11
12

Durable goods
Basic metal
Nondurable goods
Textile, paper, and chemical
Textile
Paper
Chemical
Energy




129.2
108.6
149.5
153.9
111.3
131.7
181.6
122.0

135.1
116.4
154.6
159.9
110.9
134.3
191.8
122.6

136.0
109.3
154.6
159.4
112.4
135.1
189.8
123.4

137.5
155.7
160.3

169.0
144.8
175.6
183.6
141.4
148.9
216.2
144.3

170.3
145.1
177.2
185.4
141.9
150.1
218.7
144.7

i80.4
188.9

76.5
75.0
85.1
83.8
78.7
88.4
84.0
84.5

79.6
' '86.3'
•84.8

Labor Market
2.12

LABOR FORCE, E M P L O Y M E N T , A N D

A47

UNEMPLOYMENT

Thousands of persons; monthly data are seasonally adjusted. Exceptions noted.
1977
Category

1974

1975

1976
June

July

Aug.

Sept.

Oct. r

Nov.r

Dec.

Household survey data
1 Noninstitutional population 1
2 Labor force 1(including Armed
Forces)
3 Civilian labor force
Employment:
4
Nonagricultural industries 2
5
Agriculture
Unemployment:
6
Number
7
Rate (per cent of civilian labor
force)
8 Not in labor force

150,827

153,449

156,048

158,456

158,682

158,899

159,114

159,334

159,522

159,736

93,240
91,011

94,793
92,613

96,917
94,773

99,770
97,641

99,440
97,305

99,834
97,697

99,999
97,868

100,236
98,102

101,130
98,998

101,055
98,926

82,443
3,492

81,403
3,380

84.188
3; 297

87,341
3,338

87,348
3,213

87,519
3,252

87,880
3,215

87,958
3,272

88,818
3,362

89,258
3,331

5,076

7,830

7,288

6,962

6,744

6,926

6,773

6,872

6,818

6,337

5.6

8.5

7.7

7.1

6.9

7.1

6.9

7.0

6.9

6.4

57,587

58,655

59,130

58,686

59,242

59,064

59,114

59,099

58,391

58,682

82,763
19.612
856
3,892
4,616
18,431
4,545
15,482
15,329

82,902
19,666
859
3,911
4.610
18,414
4,572
15,533
15,337

83,222
19,717
863
3,946
4,630
18,486
4,600
15,601
15,379

83,439
19,876
713
3,964
4,660
18,511
4,618
15,676
15,421

Establishment survey data
9 Nonagricultural payroll employment 3
10
Manufacturing
11
Mining
12
Contract construction
13 Transportation and public utilities.
14 Trade
15
Finance
16
Service
17
Government

78,419
20,048
694
3,963
4,696
17,016
4,209
13,617
14,176

77,052
18,347
745
3,515
4,499
16,999
4,223
14,007
14,719

79,436
18,955
783
3,594
4,510
17,690
4,315
14,642
14,948

1
Persons 16 years of age and over. Monthly figures, which are based
on sample data, relate to the calendar week that contains the 12th day;
annual data are averages of monthly figures. By definition, seasonality
does not exist in population figures. Based on data from Employment
and Earnings (U.S. Dept. of Labor).
2
Includes self-employed, unpaid family, and domestic service workers.




82,157
19,611
856
3.888
4,588
18,264
4,494
15,260
15,196

82,407
19,666
833
3,913
A, 512
18,322
4,506
15,372
15,223

82,474
19,594
818
3,893
4,581
18,377
4,524
15,448
15,239

3
Data include all full- and part-time employees who worked during,
or received pay for the pay period that includes the 12th day of the
month, and exclude proprietors, self-employed persons, domestic servants,
unpaid family workers, and members of the Armed Forces. Data are
adjusted to the February 1977 benchmark. Based on data from Employment and Earnings (U.S. Dept. of Labor).

A48
2.13

Domestic Nonfinancial Statistics • January 1978
INDUSTRIAL PRODUCTION

Indexes and Gross Value

Monthly data are seasonally adjusted.

Grouping

1967
proportion

1976
1976
average

Oct.

Nov.

1977
Dec.

1 Total index

8
9
10
11
12
13
14
15
16
17
18
19
20
21

Consumer goods
Durable consumer goods
Automotive products
Autos and utility vehicles
Autos
Auto parts and allied goods
Home goods
Appliances, A/C, and TV
Appliances and TV
Carpeting and furniture
Misc. home goods
Nondurable consumer goods
Clothing
Consumer staples
Consumer foods and tobacco

June

July

Aug.

Sept. r

Oct.

Nov.f D e c /

Index (1967 = 100)

MAJOR M A R K E T

2 Products
3
Final products
4
Consumer goods
5
Equipment...
6
Intermediate products
7 Materials

May

100.00 129.8 130.2 131.5 133.0 137.0 137.8 138.7 138.1 138.5 138.8 139.3 139.6
60.71
47.82
27.68
20.14
12.89
39.29

129.3
127.2
136.2
114.6
137.2
130.6

129.2
126.7
135.9
114.2
138.8
131.8

131.3
129.3
138.4
116.8
139.0
131.9

133.4
131.5
141.3
118.0
140.5
132.0

136.5
134.7
143.1
123.2
143.5
137.8

137.3
135.4
143.8
124.1
144.7
138.7

7.89
2.83
2.03
1.90
.80

141.4
154.8
149.8
132.0
167.6

138.9
147.8
136.3
120.2
176.6

143.7
161.6
154.0
138.4
180.5

150.5
178.8
176.9
156.3
183.4

152.2
172.8
167.4
148.5
186.6

155.8 158.0
179.8 184.8
177.4 184.1
156.8 161.4
185.8 186.6

154.7 155.6
177.0
Ml.2
173.1 172.6
150.9 151.6
187.3 188.1

157.2
180.1
176.7
154.3
189.0

155.6 155.9
173.7 173.5
167.7 166.7
147.5 143.6
189.2 191.0

5.06
1.40
1.33
1.07
2.59

133.9
114.6
117.2
144.1
140.1

133.9
115.7
118.5
146.2
138.6

133.7
114.9
117.3
143.6
139.9

134.5 140.6
110.3 131.0
112.3 134.8
144.7 147.3
143.6 143.1

142.3
133.1
136.8
151.2
143.6

142.9
130.1
134.4
154.1
145.1

142.1 143.6
129.6 129.4
133.0 134.1
154.8 159.0
143.6 144.9

144.4
129.8
132.9
160.0
145.8

145.3 146.2
133.1 133.0
133.7
158.9
146.2 148.0

134.1 134.7
124.0 123.3
136.9 138.0
130.7 133.1

136.2
123.1
139.8
132.4

137.6
124.1
141.3
131.8

139.5 139.1
125.5 125.7
143.4 142.9
135.0 135.4

140.3
124.1
144.8
137.1

140.6
126.4
144.6
137.9

19.79
4.29
15.50
8.33

138.7
136.8
145.4
124.8
146.3
138.9

138.4
136.3
144.7
124.9
146.1
137.6

138.8 138.9 139.3
136.8 136.6 137.0
144.9 145.2 145.7
125.6 124.9 125.3
146.5 147.0 147.9
137.9 138.8 139.2

140.7
128.3
144.1
137.1

140.0
137.6
146.2
126.0
149.2
139.1

140.5 141.6 142.2
128.9
143.8 145:6 M5 . 5
136.2 137.0

22
23
24
25
26

Nonfood staples
Consumer chemical p r o d u c t s . . . .
Consumer paper products
Consumer energy products
Residential utilities

7.17
2.63
1.92
2.62
1.45

144.1
166.4
113.3
144.4
151.1

143.7
168.3
110.9
142.9
148.7

148.2
173.7
114.2
147.6
153.9

152.3
177.5
116.6
153.1
162.1

153.2 151.7 153.8 152.4 152.4 152.7
180.8 179.3 179.4 181.8 182.5 182.3
118.4 116.3 117.4 117.0 116.4 117.7
150.8 149.8 154.9 148.9 148.6 148.9

27
28
29
30
31

Equipment
Business equipment
Industrial equipment
Building and mining equipment. . .
Manufacturing equipment
Power equipment

12.63
6.77
1.44
3.85
1.47

136.3
128.0
177.7
106.5
135.3

135.7
129.6
181.2
108.1
136.0

140.1
131.1
181.5
109.9
137.0

142.3
132.3
183.7
110.8
137.9

148.9
138.4
205.3
112.8
139.9

32
33
34
35

Commercial transit, farm equipment.
Commerical equipment
Transit equipment
Farm equipment

5.86
3.26
1.93
.67

145.8 142.6
173.5 177.5
104.1 97.6
131.4 102.0

150.6
179.6
107.8
132.4

154.1
184.3
108.0
140.3

161.2 161.9 163.3 163.4 164.4 164.6 164.7 165.2
191.1 191.4 191.7 193.0 193.7 194.9 196.1 197.2
116.5 118.5 121.5 121.9 125.1 121.4 119.2 119.0
144.4 143.2 144.6 139.2 134.9 141.5 143.0

78.0

77.6

77.2

36

Defense and space equipment

Intermediate products
37
Construction supplies
38
Business supplies
39
Commercial energy products
40
41
42
43
44

Materials
Durable goods materials
Durable consumer parts
Equipment parts
Durable materials n.e.c
Basic metal materials

45
46
47
48
49

Nondurable goods materials
Textile, paper, and chem. mat
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.




7.51

78.4

80.0

150.1
140.0
208.1
115.0
139.0

80.3

151.2
140.7
210.6
114.3
141.2

80.4

151.1
140.4
203.9
115.3
143.7

80.8

152.1
141.4
204.5
117.6
141.4

80.9

152.3
141.6
204.9
118.8
139.2

78.9

154.4
185.4
118.0
150.0

154.7

152.7
142.2
203.5
119.3
141.7

153.3
143.1
204.8
120.1
142.5

79.2

79.9

6.42 132.6 134.8 135.8 135.5 138.7 139.9 141.2 141.7 143.2 144.4 146.0 147.1
6.47 141.8 142.8 141.9 145.3 148.4 149.6 151.3 150.6 149.7 149.7 149.8
1.14 157.1 155.4 156.2 162.7 165.8 164.2 168.2 165.0 162.7 162.5 162.1
20.35
4.58
5.44
10.34
5.57

126.8 128.3
121.6 118.4
133.9 138.0
125.5 127.5
110.9 172.0

128.2
126.2
137.2
124.4
105.5

128.7
126.3
138.8
124.3
104.8

135.2
132.0
141.7
133.2
117.8

136.4
134.5
143.0
133.8
116.3

136.8
137.2
145.0
132.4
112.6

135.4
135.2
145.6
130.1
108.7

135.7
135.8
146.8
129.8
106.8

137.0
136.0
147.2
132.2
110.1

137.3 138.3
136.7 137.7
147.9 149.0
131.9 133.0
108.5

10.47
7.62
1.85
1.62
4.15

146.3 147.5
151.1 152.5
115.1 112.6
130.8 132.1
175.1 178.3

147.3
151.4
110.0
131.0
178.1

145.8
150.3
113.7
127.6
175.5

155.4
160.7
111.8
136.2
192.2

154.7 154.1
160.1 158.9
109.0 110.1
134.4 134.3
192.7 190.3

155.1
159.6
112.2
135.7
190.1

153.9
159.0
114.5
135.2
188.2

154.7
159.9
119.0
134.4
188.1

155.7 156.7
160.0 160.9
118.7
133.2
189.0

1.70
1.14
8.48
4.65
3.82
9.35
12.23
3.76
8.48

142.7 141.7 145.9 143.8 152.3
119.9 122.4 121.3 119.8 123.1
120.2 120.8 121.9 123.4 122.3
107.1 108.6 106.7 107.0 106.6
136.2 135.5 140.3 143.4 141.4

152.4
122.9
124.3
109.7
142.0

152.4
124.9
125.2
108.9
145.1

156.2
122.4
121.4
106.8
139.1

151.2
124.1
123.5
110.0
140.0

150.7 155.9
125.5 127.1
123.9 123.3
111.7 110.5
138.7 138.9

129.4 129.0 128.8
128.8 128.8 130.6
148.2 146.8 150.2
120.2 120.8 121.9

134.7
133.5
154.1
124.3

134.3
135.6
158.9
125.2

134.9
131.4
153.7
121.4

136.5
132.5
153.0
123.5

137.3
132.8
153.0
123.9

129.7
133.3
156.0
123.4

133.6
132.5
155.3
122.3

138.1 139.0
132.6 130.1
153.6
123.3

Output

2.13

A49

Continued

Grouping

1967
proportion

SIC
code

1976
1976
average

Oct.

Nov.

1977
Dec.

May

June

July

Aug.

Sept. r

Oct.

Nov.p Dec.®

Index (1967 = 100)
MAJOR INDUSTRY
1 Mining and utilities.
2
Mining
3
Utilities
4
Electric

12.05 131.6 132.5 133.8 135.4 137.1 138.8
6.36 114.2 116.1 115.3 115.4 119.5 122.8
5.69 151.0 150.8 154.6 157.9 156.7 156.8
3.88 167.6 167.0 171.8 176.1

5
6
7

87.95 129.5 129.8 131.4 132.5 137.1 137.8 138.5 138.6
35.97 140.9 141.9 143.0 143.3 148.5 148.4 148.6 149.4
51.98 121.7 121.4 123.4 125.0 129.3 130.5 131.6 131.3

Manufacturing.,
Nondurable..
Durable

8
9
10
11

Mining
Metal mining
Coal
Oil and gas e x t r a c t i o n . . . .
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

10
11,12
13
14

Printing and publishing
Chemicals and products
Petroleum products
Rubber & plastic products .
Leather and products

134.3
113.4
157.4

139.0
149.5
131.7

139.2 139.6
149.4 150.3
132.3 132.2

140.4
151.1
133.0

74.6
117.8

122.8
117.2
112.0
118.3

126.1 124.5 126.8
126.4 122.1 120.6
112.5 112.3 112.8
120.0 120.8 118.0

120.5
122.4
118.3
123.0

121.3
133.4
121.3
122.5

101.9
120.7
120.6
126.7

70.0
113.6
119.3
125.0

71.4
133.0
119.6
126.7

79.8
141.4
118.9
126.7

84.6
140.6
117.2
128.3

8.75
.67
2.68
3.31
3.21

132.3
117.9
136.4
122.2
133.0

134.8
118.3
134.2
122.9
132.3

138.3
105.2
136.0
123.5
139.5

136.9
119.2
135.4
122.1
139.3

138.3
114.5
137.2
121.1
139.2

139.3 138.3
117.0 113.5
136.6 140.7
124.1 127.7
140.3 139.1

137.6
113.5
143.2
129.2
137.7

138.4

134.3 132.9
119.6 119.2
133.3 133.7
122.7 124.9
132.5 131.4

143.6
138.0

139.4

4 . 7 2 120.6 119.3 119.7 123.0 124.4 124.1 124.9 125.0 124.2 124.8 124.7
7.74 169.3 170.7 173.7 173.1 182.8 183.5 182.6 182.6 181.3 180.8 183.0
1.79 133.1 130.3 135.8 138.9 142.4 140.0 140.4 139.9 141.9 141.2 141.5
2 . 2 4 200.2 211.1 215.5 216.9 232.4 235.2 235.2 237.4 239.5 237.2 240.0
.86
74.0 76.8
77.2
80.9
75.8 74.2
74.1
76.2
74.1 74.5
76.8

126.5

Durable manufactures
Ordnance, pvt. & g o v t . . . .
Lumber and products
Furniture and fixtures
Clay, glass, stone products.

19,91
24
25
32

3.64
1.64
1.37
2.74

72.7
125.1
132.7
137.1

72.3 71.6
129.6 129.5
134.5 133.7
139.9 143.2

26
27
28
29
30

Primary metals
Iron and steel
Fabricated metal products.
Nonelectrical m a c h i n e r y . . .
Electrical machinery

33
331,2
34
35
36

6.57
4.21
5.93
9.15
8.05

108.9
104.9
123.3
135.0
131.6

109.9 104.6 101.5
105.1 100.3 93.4
123.5 126.7 128.1
134.3 137.5 141.5
135.0 135.7 135.1

31
32
33
34
35

Transportation equipment. .
Motor vehicles & p a r t s . . .
Aerospace & misc. tr. e q .
Instruments
Miscellaneous mfrs

37
371
372-9
38
39

9.27
4.50
4.77
2.11
1.51

110.6
140.7
82.2
148.2
143.5

104.3 112.7 117.4
128.4 145.5 155.0
81.6
81.7
81.9
150.2 150.3 155.8
142.4 143.7 146.8

120.3
157.7
85.2
157.4
148.0

71.3
128.1
135.7
142.8

74.4
133.0
137.5
145.0

74.1
132.4
139.9
147.7

75.0
132.9
143.0
148.0

75.5
131.8
142.9
148.8

117.1

114.7

114.4

112.5

109.0

128.2
142.6
141.8

130.8
144.0
142.6

132.0
145.7
143.6

134.0
145.2
143.9

133.6
147.4
144.6

123.7
163.2
86.5
158.2
148.4

125.6 124.3 125.5
166.2 164.4 165.6
87.3 86.5
87.7
159.0 158.3 160.3
150.4 147.5 150.7

124.1
167.9
82.8
161.8
149.9

75.1
137.1
145.6
145.5

74.0
136.2
146.5
147.3

i42.0

73.7
137.4
146.6
150.9

74.7

113.7

111.9

111.2

134.4
148.2
144.2

135.2
148.9
145.1

136.0
150.4
146.6

121.9
163.0
83.1
161.3
151.2

122.2
161.9
84.7
162.0
152.5

111.0 109.2 110.9 110.6 104.6 108.1 105.6

Gross value (billions of 1972 dollars, annual rates)

MAJOR MARKET
36 Products, total.
Final
37
' products
Consumer g o o d s .
38
Equipment
39

. 1507.4 550.4 548.1 558.7
, i390.9 425.7 421.6 432.6
1277.5 301.6 300.4 306.4
. U 1 3 . 4 124.0 121.3 126.4

40

. U 1 6 . 6 124.8

126.2

i 1972 dollars.
NOTE.—Published groupings include some series and subtotals not shown
separately. For summary description and historical data, see June 1976
BULLETIN, pp. 470-79. Availability of detailed descriptive and historical
data will be announced in a forthcoming BULLETIN.




136.0
118.3
155.7

.51
.69
4.40
.75

22
23
24
25

Intermediate products.

139.4 134.4 135.1 135.3
119.8 115.4 118.0 119.1
161.4 155.7 154.1 153.5

571.2 582.2 585.9 590.5 590.2 590.1 591.5 593.4 595.6
443.8 451.0 453.7 457.8 456.9 456.8 458.4 459.1 460.9
315.1 316.3 318.9 321.5 320.0 319.1 320.4 321.8 322.3
128.4 134.6 134.9 136.2 137.0 137.6 137.9 137.3 138.6

126.4 127.1

131.4

131.8

132.8

133.1

133.5

133.4

134.3

134.9

The industrial production indexes have been revised back to January
1976, on the basis of more complete information now available. A complete
set of the revised 1976 series is attached to the September G.12.3 release
which may be obtained from the Publications Services, Board of Governors
of the Federal Reserve System, Washington, D.C. 20551.

A50
2.14

Domestic Nonfinancial Statistics • January 1978
H O U S I N G A N D CONSTRUCTION
Monthly figures are at seasonally adjusted annual rates. Exceptions noted.
1977
Item

1974

1975

1976
May

June

July

Aug.'

Sept.'

Oct.

Nov.f

Private residential real estate activity
(thousands of units)
NEW UNITS
1 Permits authorized
2
1-family
3
2-or-more-family

1,074
644
431

927
669
278

1,296
894
402

1,615
1,077
538

1,678
1,105
573

1,639
1,089
550

1,772
1,156
616

1,695
1,135
560

1,850
1,216
634

1,891
1,260
631

4 Started
5
1-family
6
2-or-more-family

1,338
888
450

1,160
892
268

1,540
1,163
377

1,937
1,455
482

1,897
1,389
508

2,083
1,437
646

2,029
1,453
576

2,065
1,523
542

2,224
1,581
643

2,105
1,535
570

7 Under construction, end of period
8
1-family
9
2-or-more-family

1,189
516
673

1,003
531
All

1,147
655
492

1,302
111
531

1,323
787
536

1,344
793
551

1,359
799
559

1,368
798
570

1,425
830
594

1,692
931
760

1,297
866
430

1,362
1,026
336

1,536
1,177
359

1,647
1,209
438

1,671
1,267
404

1,699
1,282
417

1,907
1,493
414

1,612
1,193
419

329

213

250

251

264

251

270

300

319

313

501
407

544
383

639
433

774
441

806
444

694
453

825
467

882
468

868
477

843
481

35.9
36.2

39.3
38.9

44.2
41.6

49.3
43.9

49.0
44.3

48.6
44.8

49.0
45.2

48.6
45.9

51.1
46.6

51.4

38.9

42.5

48.1

54.4

53.9

53.6

54.3

53.9

51.2

51.6

2,272

2,452

3,002

3,450

3,420

3,510

3,720

3,880

3,930

4,160

32.0
35.8

35.3
39.0

38.1
42.2

42.2
46.8

43.4
47.7

43.7
48.0

43.9
48.1

43.8
47.9

44.0
48.2

44.5

10 Completed
11
1-family
12
2-or-more-family
13 Mobile homes shipped

14
15
16
17
18

Merchant builder activity in
1-family units:
Number sold
Number for sale, end of 2period i .
Price (thous. of dollars)
Median:
Units sold
Units for sale
Average:
Units sold
E X I S T I N G U N I T S (1-family)

19 Number sold
Price of units sold
(thous. of
dollars): 2
20
Median
Average
21

Value of new construction 3
(millions of dollars)
CONSTRUCTION
22 Total put in place

138,499

134,293

147,481

172,134

'174,584

'173,035

'172,001

'175,929

177,911

178,011

23 Private
24
Residential
Nonresidential, total
25
Buildings :
26
Industrial
27
Commercial
28
Other
29
Public utilities and other.

100,165
50,377
49,788

93,624
46,472
47,152

109,499
60,519
48,980

'133,711
r
82,377
••51,334

r

135,232
'82,487
'52,745

'133, 795
'80,825
'52,970

'133,774
'80,718
'53,056

'136,676
'82,365
'54,311

140,213
85,806
54,407

142,078
87,884
54,194

7,902
15,945
5,797
20,144

8,017
12,804
5,585
20,746

7,182
12,757
6,155
22,886

r
7,184
13,760
'6,077
'24,313

'7,066
'15,235
'6,206
'24,238

'7,210
'15,533
'6,474
'23,753

'7,646
'15,257
'6,294
'23,859

'7,484
'16,054
'6,370
'24,404

7,579
15,846
6,337
24,645

7,327
15,526
6,584
24,757

38,333
1,188
12,066
2,740
22,339

40,669
1,392
10,861
3,256
25,160

37,982
1,508
9,756
3,722
22,996

'38,423
1,642
'9,835
'3,562
'23,384

'39,352
'1,566
10,792
'3,196
'23,798

'39,240
'1,538
'9,539
'4,252
'23,911

'38,228
'1,460
'9,449
'4,120
'23,199

'39,253
'1,493
'9,051
'4,878
'23,831

37,699
1,381

35,933
1,307

30 Public
31
Military..
32
Highway
33
Conservation and development.
34
Other 4

1 N o t at annual rates.
N o t seasonally adjusted.
3 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.
4 Beginning Jan. 1977 Highway imputations are included in Other.
2




NOTE.—Census Bureau estimates for all series except (a) mobile
homes, which are private, domestic shipments as reported by the Manufactured Housing Institute and seasonally adjusted by the Census Bureau,
and (b) sales and prices of existing units, which are published by the
National Association of Realtors. All back and current figures are available f r o m originating agency. Permit authorizations are for 14,000
jurisdictions reporting to the Census Bureau.

Prices
2.15

A51

C O N S U M E R A N D WHOLESALE PRICES
Percentage changes based on seasonally adjusted data, except as noted.
12 months to—
Item
1976
Nov.

1977
Nov.

3 months (at annual rate) to—
1976
Dec.

1 month to—

1977
Mar.

June

1977
Sept.

July

Aug.

Sept.

Oct.

Nov.

Index
level
Nov.
1977
(1967
= 100)1

Consumer prices
1 AH items

5.0

6.7

4.2

10.0

8.1

4.2

.4

.3

.3

.3

.5

185.4

2 Commodities
3
Food
4
Commodities less food
5
Durable
6
Nondurable

3.4
.1
5.0
5.9
4.4

6.1
8.0
4.9
4.7
5.1

3.4
.0
5.7
6.0
5.4

10.4
14.6
7.4
10.5
5.5

7.4
12.7
4.2
2.5
5.2

2.3
1.7
2.7
1.0
4.2

.1
.1
.1
0.0
•3

.3
.3
.3
.1
A

.2
1
.2
.3

.2
1
.*3
.0
.5

.5
.6
.5
.6
.4

177.9
195.6
168.1
165.5
170.1

7 Services
8
Rent
9
Services less rent

7.6
5.4
7.9

7.8
6.4
8.0

5.1
5.3
5.4

9.8
6.3
9.9

9.4
6.3
10.1

7.4
7.0
7.5

.8
.6
.8

.5
.5
.4

.5
.6
.5

.4
.4
.4

.4
.7
.3

199.5
157.0
207.2

6.3
5.0
4.3

6.4
6.4
8.6

5.3
4.3
1.2

6.9
9.4
9.1

7.8
8.2
9.6

5.7
3.6
10.6

.4
.3
1.1

.4
.3
.6

.6
.2
.8

.4
.3
.4

.5
.4
.7

182.5
182.5
211.5

10
11
12

Other groupings:
All items less f o o d 1
All items less shelter 1
Homeo wnership 1

Wholesale prices
13 All commodities
14 Farm products, and processed foods and
feeds
15
Farm products
16
Processed foods and feeds
17 Industrial commodities
Materials, supplies, and components of
which *
18
Crude materials 2
19
Intermediate materials 3
Finished goods, excluding f o o d s :
20
Consumer
21
Durable
22
Nondurable
23
Producer

4.2

6.1

7.1

10.6

-4.2
-4.2
-4.3

4.8
1.0
6.8

6.6
5.8
6.5

19.1
26.5
15.4

6.7

6.5

7.6

8.1

5.1

19.0
6.4

5.6
6.4

21.8
7.5

21.7
8.0

5.1
4.0
5.7
6.1

6.2
6.0
6.3
7.4

5.2
3.3
6.5
9.2

-5.1

8.2

8.4

3.2

1.9

-.1

.1

.5

.8

.7

197.0

-2.5 -17.0
-21.9 -22.3
11.0 - 1 4 . 1

-2.1
-1.8
-2.4

-2.1
-4.3
-.8

-.4
-.2
-.6

1.3
2.4
.8

2.3
3.0
1.7

186.8
189.5
186.7

7.6

.5

.5

.8

.6

.4

2.0
4.3

8.9
7.8

0.0
.6

1.9
.5

.3
.7

-.2
.5

1.3
.2

284.6
206.0

8.7
7.0
10.0
5.5

6.3
6.0
6.5
6.3

5.2
5.4
4.8
5.6

.2
.3
.2
.4

.3
1.0
0.0
.4

.7
.1
1.0
.5

.6
1.1
.3
1.5

.3
.1
.4
.7

175.8
156.3
188.7
190.8

12.7

13.8

-7.5

-.9

-.3

.3

.4

190.4

199.2

MEMO:

24 Consumer foods

N o t seasonally adjusted.
2
Excludes crude foodstuffs and feedstuff's, plant and animal fibers,
oilseeds, and leaf tobacco.




-.7

3 Excludes intermediate materials for food manufacturing and manufactured animal feeds,
SOURCE.—Bureau of Labor Statistics.

A52
2.16

Domestic Nonfinancial Statistics • January 1978
GROSS N A T I O N A L P R O D U C T A N D I N C O M E
Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates.
1976
Account

1974

1975

1977

1976
Q2

Q3

Q4

Ql

Q2

Q3 r

Gross national product
1
2
3
4
5

By source:
Personal consumption expenditures
Durable goods
Nondurable goods
Services

6
7
8
9
10
11
12

Gross private domestic investment
Fixed investment
Nonresidential
Structures
Producers' durable equipment
Residential structures
Nonfarm

13
14

Change in business inventories
Nonfarm

1,412.9

1,528.8

1,706.5

1,691.9

1,727.3

1,755.4

1,810.8

1,869.9

1,915.9

889.6
122.0
376.3
391.3

980.4
132.9
409.3
438.2

1,094.0
158.9
442.7
492.3

1,078.5
156.7
437.1
484.6

1,102.2
159.3
444.7
498.2

1,139.0
166.3
458.8
513.9

1,172.4
177.0
466.6
528.8

1,194.0
178.6
474.4
541.1

1,218.9
177.6
481.8
559.5

214.6
205.7
150.6
54.5
96.2
55.1
52.7

189.1
200.6
149.1
52.9
96.3
51.5
49.5

243.3
230.0
161.9
55.8
106.1
68.0
65.7

244.4
226.1
159.8
55.8
104.0
66.3
64.1

254.3
232.8
164.9
56.0
109.0
67.8
65.7

243.4
244.3
167.6
57.0
110.6
76.7
74.3

271.8
258.0
177.0
57.9
119.2
81.0
78.5

294.9
273.2
182.4
61.0
121.4
90.8
88.2

303.6
280.0
187.5
62.6
124.9
92.5
89.9

8.9
10.8

-11.5
-15.1

13.3
14.9

18.3
20.4

21.5
22.0

-.9
1.4

13.8
14.1

21.7
22.4

23.6
23.1

15
16
17

Net exports of goods and services
Exports
Imports

6.0
137.9
131.9

2.0
147.3
126.9

7.8
162.9
155.1

10.2
160.6
150.4

7.9
168.4
160.6

3.0
168.5
165.6

-8.2
170.4
178.6

-9.7
178.1
187.7

-7.5
179.9
187.4

18
19
20

Govt, purchases of goods and services
Federal
State and local

302.7

191.5

111.1

338.9
123.3
215.6

361.4
130.1
231.2

358.9
128.5
230.4

363.0
130.2
232.7

370.0
134.2
235.8

374.9
136.3
238.5

390.6
143.6
247.0

400.9
148.1
252.9

1,404.0
638.6
247.8
390.8
626.8
147.4

1,540.3
686.2
258.2
428.0
699.2
143.5

1,693.1
764.2
303.4
460.9
782.0
160.2

1,673.7
761.7
301.9
459.7
770.8
159.4

1,705.8
746.0
313.4
464.1
791.8
159.6

1,756.3
774.7
312.6
460.6
813.8
166.9

1,797.0
805.9
334.4
471.5
833.7
171.2

1,848.2
827.1
341.0
486.1
855.3
187.5

1,892.2
843.5
342.3
501.2
881.6
190.7

8.9
7.1
1.8

-11.5
-9.2
-2.2

13.3
4.1
9.3

18.3
7.0
11.2

21.5
10.7
12.4

-.9
.6
-3.1

13.8
7.8
6.0

21.7
11.5
10.2

23.6
10.3
13.4

1,217.8

1,202.1

1,274.7

1,271.5

1,283.7

1,287.4

1,311.0

1,330.7

1,347.4

By major type of product:
Final sales, total
Goods
Durable goods
Nondurable
Services
Structures

21
22
23
24
25
26

Change in business inventories
Durable goods
Nondurable goods

27

28
29
30

MEMO: Total G N P in 1972 dollars

National income
31

1,136.0

1,217.0

1,364.1

1,353.9

1,379.6

1,402.1

1,450.2

1,505.7

1,540.5

875.8
764.1
160.0
604.1
111.7

930.3
805.7
175.4
630.3
124.6

1,036.3
891.8
187.2
704.6
144.5

1,024.9
882.4
185.4
697.0
142.5

1,046.5
900.2
188.2
712.0
146.3

1,074.2
923.2
192.5
730.7
150.9

1,109.9
951.3
194.8
756.4
158.6

1,144.7
980.9
197.2
783.6
163.8

1,167.4
998.9
200.6
798.3
168.5

56.1
55.6

59.8
64.9

68.6
75.9

68.0
74.5

69.1
77.3

70.9
80.0

75.4
83.2

77.1
86.7

78.2
90.3

41

39 Proprietors' income
Business
and professional 1
Farm1

86.4
60.9
25.4

86.0
62.8
23.2

88.0
69.4
18.6

90.4
68.8
21.6

86.2
70.0
16.2

88.7
72.0
16.6

95.1
74.3
20.7

97.0
77.3
19.7

95.5
80.0
15.5

42 Rental income of persons 2

21.4

22.3

23.3

22.9

23.3

24.1

24.5

24.9

83.6
126.9
-40.4
-2.9

99.3
123.5
-12.0
-12.2

128.1
156.9
-14.1
-14.7

129.2
159.2
-15.5
-14.6

133.5
159.9
-11.7
-14.7

123.1
154.8
-16.9
-14.8

125.4
161.7
-20.6
-15.6

140.2
174.0
-17.8
-15.9

149.0
172.8
-5.9
-17.9

69.0

79.1

88.4

86.5

90.1

92.0

95.3

98.9

103.1

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
Other labor income
38
1

40

43 Corporate profits *
44
Profits before tax 3
45
Inventory valuation adjustment
46
Capital consumption adjustment
47 Net interest
1
2

With inventory valuation and capital consumption adjustments.
With capital consumption adjustments.




3 For after-tax profits, dividends, etc., see Table 1.50.
SOURCE.—Survey of Current Business (U.S. Dept. of Commerce).

National Income Accounts
2.17

A53

P E R S O N A L I N C O M E A N D SAVING
Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted.
1977

1976
1974

1975

1976

Account
Q2

Q3

Q4

Q1

Q2

Q3r

Personal income and saving
1 Total personal income
2 Wage and salary disbursements
3
Commodity-producing industries
4
Manufacturing
5
Distributive industries
6
Service industries
7
Government and government enterprises

1,154.9

1,253.4

1,382.7

1,366.7

1,393.9

1,432.2

1,476.8

1,517.2

1,549.8

764.6
274.6
211.4
184.3
145.1
160.5

805.7
275.0
211.0
195.4
159.9
175.4

891.8
308.4
238.2
217.1
179.0
187.2

882.4
306.7
236.7
213.7
176.6
185.4

900.2
310.8
240.2
220.2
180.9
188.2

923.2
317.7
245.1
226.4
186.7
192.5

951.3
328.9
255.4
234.5
193.0
194.8

980.9
345.4
265.9
240.5
197.7
197.2

998.9
351.0
270.0
244.4
202.8
200.6

55.6

64.9

75.9

74.5

77.3

80.0

83.2

86.7

90.3

9 Proprietors' income1
10
Business and professional 1
11
Farm1

86.2
60.9
25.4

86.0
62.8
23.2

88.0
69.4
18.6

90.4
68.8
21.6

86.2
70.0
16.2

88.7
72.0
16.6

95.1
74.3
20.7

97.0
77.3
19.7

95.5
80.0
15.5

12 Rental income of persons 2

21.4

22.3

23.3

22.9

23.3

24.1

24.5.

24.9

25.5

13 Dividends

31.0

32.4

35.8

35.0

36.0

38.4

38.5

40.3

42.3

14 Personal interest income

103.0

115.6

130.3

127.5

132.2

136.4

140.3

145.4

150.3

15 Transfer payments
16
Old-age survivors, disability, and health
insurance benefits

140.8

176.8

192.8

188.7

194.3

198.0

203.5

203.0

208.7

70.1

81.4

92.9

89.3

95.8

98.4

99.9

101.8

108.5

47.7

50.4

55.2

54.8

55.6

56.6

59.6

60.8

61.7

1,476.8

1,517.2

1,549.8

224.4

224.8

226.1
1,323.8

8 Other labor income

17

LESS: Personal contributions for social
insurance

18 EQUALS: Personal income
19

LESS: Personal tax and nontax p a y m e n t s . . . .

1,154.9

1,253.4

1,382.7

1,366.7

1,393.9

1,432.2

170.3

169.0

196.9

192.6

200.6

209.5

20 EQUALS: Disposable personal income

984.6

1,084.4

1,185.8

1,174.1

1,193.3

1,222.6

1,252.4

1,292.5

21

913.0

1,004.2

1,119.9

1,103.8

1,128.5

1,166.3

1,201.0

1,223.9

1,250.5
73.3

LESS: Personal outlays

71.7

80.2

65.9

70.3

64.8

56.3

51.4

68.5

5,746
3,589
3,973
7.3

5,629
3,629
4,014
7.4

5,924
3,817
4,137
5.6

5,916
3,794
4,130
6.0

5,961
3,820
4,135
5.4

5,966
3,892
4,177
4.6

6,064
3,934
4,202
4.1

6,143
3,943
4,268
5.3

6,206
3,963
4,305
5.5

MEMO ITEMS :

Per capita (1972 dollars):
24

Personal consumption expenditures

26 Saving rate (per cent)

Gross saving

29
30

Undistributed corporate profits 1
Corporate inventory valuation a d j u s t m e n t . . . .

31
32
33

Capital consumption allowances:
Corporate
Noncorporate
Wage accruals less disbursements

34 Government surplus, or deficit (—),
income and product accounts
35
Federal
36
State and local

209.5

259.4

272.5

275.4

277.2

261.6

262.9

292.1

310.5

71.7
.2
-40.4

80.2
16.7
-12.0

65.9
27.6
-14.1

70.3
28.0
-15.5

64.8
31.6
-11.7

56.3
20.8
-16.9

51.4
22.5
-20.6

68.5
30.3
-17.8

73.3
37.4
-5.9

84.6
53.1

101.7
60.8

111.8
67.2

110.4
66.6

112.9
68.0

115.2
69.2

117.6
71.4

119.4
73.8

123.7
76.2

-3.2
-10.7
7.6

-64.3
-70.2
5.9

-35.6
-54.0
18.4

-33.3
-46.2
12.9

-32.4
-53.5
21.1

-29.4
-55.9
26.5

-11.5
-38.8
27.3

-14.9
-40.3
25.4

-26.0
—58^9
32.9

210.1
214.6
-4.5

201.0
189.1
11.8

242.5
243.3
-.9

246.5
244.4
2.2

252.8
254.1
-1.5

237.5
243.3
-5.9

254.7
271.8
-17.1

276.1
294.9
-18.8

285.4
303.6
-18.2

5.8

5.9

5.5

4.5

8.0

5.3

3.3

-1.2

.9

national

37 Capital grants received by the United States,

39

Gross private domestic

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 • January 1978
U.S. I N T E R N A T I O N A L T R A N S A C T I O N S

Summary

Millions of dollars; quarterly data are seasonally adjusted except as noted. 1
1976
1974

Item credits or debits

1975

1977

1976
Q4

Q3

QL

Q2r

QL

Q3

1 Merchandise exports
2 Merchandise imports
3
Merchandise trade balance 2

98,306
103,673
-5,367

107,088
98,043
9,045

114,694
124,014
-9,320

27,000
28,343
-1,343

29,603
32,411
-2,808

29,711
33,305
-3,594

29,458
36,561
-7,103

30,590
38,347
-7,757

30,869
38,378
-7,509

4 Military transactions, net
5 Investment income, net
6 Other service transactions, net

-2,083
8,744
865

-876
5,954
2,042

366
9,808
2,743

-65
2,437
523

235
2,667
781

235
2,424
598

516
3,252
340

311
3,504
553

577
3,215
767

7 Balance on goods and services

3

8 Remittances, pensions, and other transfers
9 U.S. Govt, grants (excluding military).
10 Balance on current account

2,160

16,164

3,596

1,552

875

-337

-2,995

-3,389

-2,950

-1,714
-5,475

-1,719
-2,893

-1,878
-3,146

-485
-544

-461
-1,475

-473
-572

-526
-637

-492
-723

-567
-785

-5,028

11,552

-1,427

523
1,458

-1,061
-3,809

-1,382
303

-4,158
-3,409

-4,604
-4,821

-4,302
-6,940

365

-3,463

-4,213

-723

-1,405

-1,142

-909

-825

-1,175

-773

-407

'228

-388
-58

6

151

-45
-237
-491

-18
-716
327

12 Change in U.S. Govt, assets, other than official reserve
13 Change in U.S. official reserve assets (increase, —)
14
Gold
15
Special Drawing Rights (SDR's)
16
Reserve position in International Monetary Fund ( I M F ) .

-1,434

-607

r-2,530

— 172
-1,265
3

— 66
— 78
-466
-2,212
-15
-240

-29
-461
718

-389
59

— 83
-80
169

_9
133
27

18 Change in U.S. private assets abroad (increase, —)

-25,960 -27,478 -36,216

-9,254

-6,597 -13,108

1,627

-9,464

-2,372

21

Short-term

-13,532
-19,516
-20,904
-1,183 -2,357 -2,124
-18,333 -11,175 -18,780

-3,630
-289
-3,341

-3,372
-978
-2,394

-9,148
-480
-8,668

3,446
-306
3,752

-4,553
23
4,576

244
-441
685

22
23

Nonbank-reported
Long-term

10
-1,996
-8,730
-4,596

-738
-191
-547
-2,460
-2,427

723
66
651
-2,743
-1,205

-967
-10
-957
-2,171
-822

-722
45
-767
-692
-404

-1,129
68
-1,197
-1,784
-1,998

674
41
621
-2,190
-1,100

6,977
3,909
116
852
1,769
331

5,719
5,149
100
712
-420
178

7,908
5,124
609
456
752
967

8,243
6,943
627
319
-152
506

25
26

U.S. purchase of foreign securities, net
U.S. direct investments abroad, net

27 Change in foreign official assets in the United States
29
30
31
32

-3,221
-474
-2,747
-1,854
-1,368

claims

Other
Other
Other
Other

(in-

U.S. Govt, obligations
U.S. Govt, liabilities 4
U.S. liabilities reported by U.S. banks
foreign official assets 5

33 Change in foreign private assets in the United States (in-

40
41
42

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

43 Allocation of SDR's
45
46

Owing to seasonal adjustments
Statistical discrepancy in recorded data before seasonal

r

-1,447
-432
-1,015
—6,235
-6,264

-1,986

10,981
3,282
902
724
5,818
254

6,960
4,408
905
1,701
-2,158
2,104

17,945
9,333
566
4,938
893
2,215

3,847
1,998
68
1,524
-412
669

3,070
1,260
66
1,819
-599
524

22,631

7,376

16,575

3,009

'5,131

5,102

-3,209

5,873

4,680

16,017
9
16,008
1,844
-90
1,934

628
-280
908
240
334
-94

10,982
175
10,807
-616
-947
331

672
-105
111
161
-233
394

1,774
15
1,699
-297
-241
-56

5,008
221
4,787
-242
-311
69

-5,298
47
-5,345
-374
-229
-145

6,344
105
6,239
-405
-183
-222

2,498
192
2,306
-90
-48
-42

697
378
3,695

2,590
2,503
1,414

2,783
1,250
2,176

437
1,030
709

3,026
68
561

-88
21
403

1,047
879
537

-1,370
736
568

1,247
514
511

-1,555

5,660

9,866

3,372
111

3,325
1,780

1,317
524

1,106
-215

-5,225
-2,506

-1,555

5,660

9,866

2,655

3,890

1,545

793

1,321

-2,719

-1,434
10,257

-607
5,259

-2,530
13,007

-773
2,323

-407
1,251

228
6,125

-388
5,007

6
7,452

151
7,924

10,841

7,092

9,324

3,482

1,774

805

3,249

1,073

1,441

156

94

46

27

32

1,268
-2,622

MEMO ITEMS'

Changes in official assets:
47
U.S. official reserve assets (increase, —)
48
Foreign official assets in the United States (increase, + ) .
49 Changes in Organization of Petroleum Exporting Countries (OPEC) official assets in the United States (part
of line 27 above)
50 Transfers under military grant programs (excluded from
lines 1, 4, and 9 above)

1,817

1 Seasonal factors are no longer calculated for lines 13 through 50.
2 D a t a are on an international accounts (IA) basis. Differs f r o m the
Census basis primarily because the I A basis includes imports into the
U.S. Virgin Islands, and it excludes military exports, which are part of
Line 4.
3 Differs f r o m the definition of "net exports of goods and services" in
the national income and product ( G N P ) account. The G N P definition




2,217

386

50

excludes certain military sales to Israel f r o m exports and excludes U.S.
Govt, interest payments f r o m imports.
4 Primarily associated with military sales contracts and other transactions arranged with or through foreign official agencies.
5 Consists of investments in U.S. corporate stocks and in debt securities of private corporations and state and local governments.
NOTE.—Data are f r o m Bureau of Economic Analysis, Survey of Current Business (U.S. Department of Commerce).

Trade and Reserve Assets
3.11

A55

U.S. F O R E I G N T R A D E
Millions of dollars; monthly data are seasonally adjusted.
1977
Item

1974

1975

1 E X P O R T S of domestic and foreign
merchandise excluding grant-aid
shipments

97,908

2 G E N E R A L I M P O R T S including
merchandise for immediate consumption plus entries into bonded
warehouses
3 Trade balance

1976
June

July

Aug.

10,395

10,112

10,150

Sept.

Oct.

10,916

9,190

Nov.

107,130

114,802

100,252

96,115

120,678

11,616

12,932

12,476

12,232

12,631

12,288

11,386

-2,344

+11,014

-5,876

-1,221

-2,820

-2,326

-2,669

-1,715

-3,098

-2,082

NOTE.—Bureau of Census data reported on a free-alongside-ship
(f.a.s.) value basis. Before 1974 imports were reported on a customs
import value basis. F o r calendar year 1974 the f.a.s. import value was
$100.3 billion, about 0.7 per cent less than the corresponding customs
import value. The international-accounts-basis data shown in Table 3.10
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

3.12

May

9,563

9,304

exports (which are combined with other military transactions 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 " S u m m a r y of U.S. Export and I m p o r t Merchandise
T r a d e " (U.S. Dept. of Commerce, Bureau of the Census).

U.S. RESERVE ASSETS
Millions of dollars, end of period
1977
Type

1974

1 Total
2 Gold stock, including
Stabilization F u n d *

1975

1976

June

July

Aug.

Sept.

Oct.

Nov.

Dec. p
3 19,317

15,883

16,226

18,747

19,156

18,927

19,055

18,988

19,048

19,155

Exchange
11,652

11,599

11,598

11,658

11,658

11,658

11,658

11,658

11,658

11,719

3 Special Drawing R i g h t s 2

2,374

2,335

2,395

2,486

2,498

2,483

2,489

2,530

2,548

3 2,629

4 Reserve position in
Monetary F u n d

1,852

2,212

4,434

4,920

4,716

4,859

4,776

4,842

4,933

34,951

5

80

320

92

55

55

65

18

16

18

International

5 Convertible foreign currencies

1 Gold held under earmark at F.R. Banks for foreign and international
accounts is not included in the gold stock of the United States; see Table
3.24.
2
Includes allocations by the International Monetary Fund ( I M F ) of
SDR's as follows: $867 million on Jan. 1, 1970; $717 million on Jan. 1,
1971; and $710 million on Jan. 1, 1972; plus net transactions in SDR's.
3
Beginning July 1974, the I M F adopted a technique for valuing the




S D R based on a weighted average of exchange rates for the currencies
of 16 member countries. The U.S. S D R holdings and reserve position in
the I M F also are valued on this basis beginning July 1974. At valuation
used prior to July 1974 (SDR1 = $1.20635) total U.S. reserve assets
at end of Dec. amounted to $19,177; S D R holdings, $2,610, and reserve
position in I M F , $4,790.

A56
3.13

International Statistics • January 1978
S E L E C T E D U.S. LIABILITIES TO F O R E I G N E R S
Millions of dollars, end of period
1977
Holder, and type of liability

1974

1975

1976
May

June

July

Aug.

Sept.

Oct.*

Nov.?

1 Total

119,164

126,552

151,356

160,950

163,545

168,799

166,319

174,657

178,942

184,519

2 Foreign countries

115,842

120,929

142,873

152,259

155,362

162,379

159,163

167,243

171,546

176,886

76,823

80,712

91,975

102,112

103,656

107,601

108,134

111,183

117,064

122,886

3 Official institutions1
4
Short-term, reported by
banks in
the United States. 2
U.S. Treasury bonds and notes:
5
Marketable 3
6
Nonmarketable 4
7
Other readily marketable
liabilities 5
Commercial banks a b r o a d :
Short-term, reported 2by banks in
8
the United States ,6
9 Other foreigners
10
Short-term, reported by
banks in
the United States 2
11
Marketable U.S. Treasury bonds
and n o t e s 3 , 7
12 Nonmonetary international and
regional organization 8
13
Short-term, reported by banks
in the United States 2
14
Marketable
U.S.
Treasury
bonds and notes 3

53,079

49,530

53,619

58,260

57,413

60,059

56,810

56,783

5,059
16,339

6,671
19,976

11,788
20,648

16,382
20,950

18,345
20,917

19,393
20,837

23,089
20,655

25,582
21,128

28,634
20,351

31,514
20,462

2,346

4,535

5,920

6,520

6,981

7,312

7,580

7,690

8,234

8,885

30,106

29,516

37,329

35,521

36,687

39,946

35,789

40,392

38,755

38,078

8,913

10,701

13,569

14,626

15,019

14,832

15,240

15,668

15,727

15,922

8,415

10,000

12,592

13,398

13,623

13,377

13,684

14,041

14,036

14,169

498

701

977

1,228

1,396

1,455

1,556

1,627

1,691

1,753

3,322

5,623

8,483

8,691

8,183

6,420

7,156

7,414

7,396

7,633

3,171

5,292

5,450

6,556

5,727

3,834

4,216

3,555

3,396

3,258

151

331

3,033

2,135

2,456

2,586

2,940

3,859

4,000

4,375

1
Includes Bank for International Settlements.
Includes Treasury bills as shown in Table 3.15.
3 Derived by applying reported transactions to benchmark data.
4
Excludes notes issued to foreign official nonreserve agencies.
5
Includes long-term liabilities reported by banks in the United States
and debt securities of U.S. Federally sponsored agencies and U.S. corporations.
6
Includes short-term liabilities payable in foreign currencies to commercial banks abroad and to other foreigners.
7
Includes marketable U.S. Treasury bonds and notes held by commercial banks abroad and other foreigners.
2

3.14

59,845

62,025

8
Principally the International Bank for Reconstruction and Development and the Inter-American and Asian Development Banks.

NOTE.—Based on Treasury Dept. data and on data reported to the
Treasury Dept. by banks (including Federal Reserve banks) and brokers
in the United States. D a t a exclude the holdings of dollars of the International Monetary Fund derived f r o m payments of the U.S. subscription,
and from the exchange transactions and other operations of the I M F .
D a t a also exclude U.S. Treasury letters of credit and nonnegotiable, noninterest-bearing special U.S. notes held by nonmonetary international
and regional organizations.

S E L E C T E D U.S. LIABILITIES T O F O R E I G N O F F I C I A L I N S T I T U T I O N S
Millions of dollars, end of period

Area

1 Total
Western Europe 1
Canada
Latin American republics
Asia
Africa
Other countries 2

2
3
4
5
6
7
1

1974

1975

1977
1976




June

July

Aug.

Sept.

Oct. 2 '

76,823

80,712

91,975

102,112

103,656

107,601

108,134

111,183

117,064

44,328
3,662
4,419
18,627
3,160
2,627

45,701
3,132
4,450
22,551
2,983
1,895

45,882
3,406
4,906
34,108
1,893
1,780

50,605
2,798
4.672
40,341
1,821
1,875

53,342
2,699
4,240
39,839
1,938
1,598

55,669
2,653
4,340
41,162
2,458
1,319

57,741
2,553
4,246
40,438
2,265
891

60,701
2,508
4,466
40,330
2,144
1,034

65,048
1,863
4,269
42,697
2,027
1,160

Includes Bank for International Settlements.
Includes countries in Oceania and Eastern Europe, and Western
European dependencies in Latin America.
2

May

Nov.?

NOTE.—Data represent breakdown by area of line 3, Table 3.13.

Bank-reported
3.15

SHORT-TERM LIABILITIES TO F O R E I G N E R S

Data

A57

Reported by Banks in the United States

By Holder and by Type of Liability
Millions of dollars, end of period
1977
1974

Holder, and type of liability

1976

1975

May

r

June

r

July

Aug.r

Sept.

Oct. p

Nov.f

1 All foreigners, excluding the International
Monetary Fund

94,771

94,338 108,990 113,735 113,448 117,216 110,499

2

94,004

93,781

14,051
9,907
35,662
34,384

13,564
10,250
37,414
32,552

16,803
11,316
40,744
39,403

16,742
11,554
45,463
39,325

16,287
12.079
44,110
40,296

17,496
11,833
44,413
42,515

15,942
11,749
42,254
39,664

16,893
11,604
43,181
42,349

16,904
11,534
44,667
42,152

16,464
11,368
47,047
41,819

766

558

724

653

675

960

889

745

776

832

3,171

5,293

5,450

6,557

5,728

3,834

4,216

3,555

3,396

3,258

3,171

5,284

5,445

6,551

5,715

3,819

4,178

3,523

3,376

3,237

139
111
497
2,424

139
148
2,554
2,443

290
205
2,701
2,250

172
167
2,977
3,234

228
156
2,521
2,811

122
154
2,191
1,352

142
147
1,990
1,900

214
134
1,875
1,300

173
140
802
2,261

173
142
767
2,155

8

5

6

13

15

38

32

20

20

Payable in dollars
Deposits:

3
4
5
6

Time *
U.S. Treasury bills and certificates 2
Other short-term liabilities 3

7

Payable in foreign currencies

8 Nonmonetary international and regional

10
11
12
13

Payable in dollars
Deposits:
Demand
Time 1
U.S. Treasury bills and certificates
Other short-term liabilities 5

14

Payable in foreign currencies

9

15 Official institutions, banks, and other foreigners.. 91,600

17
18
19
20

Payable in dollars
Deposits:
Demand
Time 1
2
U.S. Treasury bills and certificates
Other short-term liabilities 3

21

Payable in foreign currencies

16

22 Official institutions
23

6

24
25
26
27

Payable in dollars
Deposits:
Demand
Time 1
2
U.S. Treasury bills and certificates
Other short-term liabilities 5

98

P/iv/jA/tf in fnroion rurrenrife

29 Banks and other foreigners
Payable in dollars
Banks 7
Deposits:
Demand
Time 1
U.S. Treasury bills and certificates
Other short-term liabilities 3

30
31
32
33
34
35

Other foreigners
Deposits:
Demand
Time 1
U.S. Treasury bills and certificates
Other short-term liabilities 5

36
37
38
39
40

Payable in foreign currencies

41
1

108,266

112,773

116,256

109,610

114,773 116,032 117,530
114,027

115,256

116,698

89,046 103,540 107,179 107,720 113,382 106,283 111,218 112,636 114,272

90,834

88,496

13,912
9,796
35,165
31,961

13,426
10,102
34,860
30,109

102,821

106,532

107,058

7 / 2 , 4 5 7 105,431

110,504

111,881

113,461

16,513
11.112
38,042
37,153

16,569
11,387
42,485
36,091

16,060
11,924
41,589
37,486

17,374
11,679
42,221
41,163

15,801
11,603
40,264
37,764

16,679
11,471
41,306
41,048

16,731
11,394
43,865
39,890

16,290
11,226
46,281
39,664

647

662

945

851

713

756

812

766

549

719

53,079

49,530

53,619

58,260

57,413

60,059

56,810

56,783

59,845

62,025

52,952

49,530

53,619

58,260

57,413

60,059

56,810

56,783

59,845

62,025

2,951
4,167
34,656
11,178

2,644
3,423
34,199
9,264

3,394
2,321
37,725
10,179

2,676
2,441
42,197
10,947

2,705
2,506
41,322
10,880

3,642
2,401
41,926
12,090

3,122
2,248
39,825
11,615

3,133
1,987
40,780
10,882

2,990
1,903
43,392
11,560

2,557
1,823
45,806
11,839

38,520

39,515

49,921

48,918

50,307

53,323

49,473

54,435

52,791

52,247

37,881
29,467

38,966
28,966

49,202
36,610

48,272
34,875

49,645
36,025

52,378
39,001

48,622
34,937

53,721
39,679

52,035
37,999

51,435
37,267

8,231
1,885
232
19,119

7,534
1,856
335
19,241

9,104
2,267
119
25,120

9,782
1,748
108
23,236

9,565
2,124
100
24,236

10,136
1,826
144
26,895

8,928
1,865
112
24,033

9.676
1,849
121
28,033

9,685
1,879
127
26,308

9,668
1,814
141
25,643

_ _ _

127

8,414

10,000

12,592

13,397

13,620

13,376

13,684

14,042

14,036

14,169

2,729
3,744
277
1,664

3,248
4,823
325
1,604

4,015
6,524
198
1,854

4,111
7,198
180
1,908

3,790
7,294
167
2,370

3,595
7,453
151
2,177

3,751
7,490
328
2,116

3,870
7,634
404
2,133

4,056
7,611
346
2,022

4,065
7,588
333
2,182

639

549

719

647

662

945

851

713

756

812

Excludes negotiable time certificates of deposit, which are included
in 2"Other short-term liabilities."
Includes nonmarketable certificates of indebtedness and Treasury
bills issued to official institutions of foreign countries.
3 Includes liabilities of U.S. banks to their foreign branches, liabilities
of U.S. agencies and branches of foreign banks to their head offices and
foreign branches of their head offices, bankers acceptances, commercial
paper, and negotiable time certificates of deposit.




113,083

4

Principally the International Bank for Reconstruction and Development,
and the Inter-American and Asian Development Banks.
5
Principally bankers acceptances, commercial paper, and negotiable
time
certificates of deposit.
6
Foreign central banks and foreign central governments and their
agencies, and Bank for International Settlements.
7
Excludes central banks, which are included in "Official institutions."
NOTE.—"Short-term obligations" are those payable on demand, or
having an original maturity of 1 year or less.

A58

International Statistics • January 1978

3.16

SHORT-TERM LIABILITIES TO FOREIGNERS
By Country

Reported by Banks in the United States

Millions of dollars, end of period

Area and country

1974

1975

1977

1976
May

June

July

Aug.

Sept.

Oct.f

1 Total

94,811

94,338

108,990

113,735

113,448

117,216

110,499

114,773

2 Foreign countries

91,640

89,046

103,540

107,179

107,720

113,382

106,283

111,218 1 1 2 , 6 3 6

48,853
607
2,506
369
266
4,287
9,429
248
2,617
3,234
1,040
310
382
1,138
10,139
152
7,584
183
4,073
82
206

43,988
754
2,898
332
391
7,733
4,357
284
1,072
3,411
996
195
426

46,938
348
2,275
363
422
4,875
5,965
403
3,206
3,007
785
239
561
1,693
9,458
166
10,C04
188
2,672
51
255

49,627
465

50,604
455
2,822
1,154
209
4,745
4,937
573
5,422
3.397
1,203
222
642
1,963
9,162
101
11,250
125
1,973
88
160

48,953
498
2,691
1,032
217
4,894
4,413
709
5,538
3,328
1,140
169
543
1,782
9,386
203
10,226

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
Other Western Europe i
21
22
U.S.S.R
23
Other Eastern Europe

2,;86

8,514

118

6,886
126
2,970
40
200

47,505
409
2,641
974
242
4,921
4,825
409
3,509
3,111
999
238
586
2,431
8,436
68
11,230
102
2,136
66
172

2,1 OA

1,178
258
5,089
4,271
556
4,636
3,545
1.195
163
667
2,390
9,323
127
10,701
115
2,009
73
162

110

1,855
70
151

51,431
448
2,667
1,172
248
4,799
4,289
629
5,770
3,216
1,190
173
723
2,483
9,920
93
11,427
119
1,839
53
173

116,032

52,899
410
2,714
1,272
232
5,006
5,280
648
6,320
3,088
1,023
191
724
2,734
9,752
111
11,096
130
1,938
68
162

24

Canada

3,520

3,076

4,784

4,869

4,253

4,456

4,631

4,492

4,936

25
26
27
28
29
30
31
32
33
34
35
36
37
38
39

Latin America
Argentina
Bahamas
Brazil
Chile
Colombia
Cuba
Mexico
Panama
Peru
Uruguay
Venezuela
Other Latin American
republics
Netherlands Antilles 2
Other Latin America

11,754
886
1,054
1,034
276
305
7
1,770
510
272
165
3,413
1,316
158
589

14,942
1,147
1,827
1,227
317
417
6
2,066
1,099
244
172
3,289
1,494
129
1,507

19,026
1,538
2,750
1,432
335
1,017
6
2,848
1,140
257
245
3,095
2,081
140
2,142

19,958
1,971
2.744
1,175
432
1,172
8
2,764
984
219
251
3,006
2,270
215
2.745

20,786
1,699
3,777
1,357
393
1.196
7
2,832
941
224
234
2,478
2,376
207
3,066

23,038
1,754
5,518
1.398
373
1,220
6
2,869
1,015
241
242
2,532
2,238
158
3,476

21,412
2,022
4,283
1,233
353
1,164
6
2,790
954
273
230
2,887
2,154
180
2,886

24,470
2,187
5,940
1,101
342
1,156
6
2,823
947
288
245
3,037
2,320
169
3,908

22,346
2,421
3,773
1,055
340
1,182
6
2,741
946
259
226
3.212
2.213
156
3,814

40
41
42
43
44
45
46
47
48
49
50
51
52

Asia
China, People's Republic of (Mainland)
China, Republic of (Taiwan)
Hong Kong
India
Indonesia
Israel
Japan
Korea
Philippines
Thailand
Middle East oil-exporting countries 3
Other

21,130
50
818
530
261
1,221
389
10,931
384
747
333
4,623
845

21,539
123
1,025
623

390
698
252
6,461
867

28,472
47
989
892
648
340
391
14,380
437
627
275
8,073
1,372

29,933
53
1,210
950
721
531
503
12,481
472
634
275
10,447
1,655

28,456
44
1, 196
931
814
282
547
12,387
534
614
257
9,283
1,568

30,296
49
1,259
1,028
746
782
484
12,837
633
653
281
9,976
1,568

26,931
46
925
1,066
743
589
467
11,691
527
561
293
8,828
1,195

26,457
44
924
1,153
850
453
416
11,440
600
559
264
8,525
1,230

28,169
48
899
993
886
905
465
13,277
599
630
271
7,930
1,266

53
54
55
56
57
58
59

Africa
Egypt
Morocco
South Africa
Zaire
Oil-exporting countries 4
Other

3,551
103
38
130
84
2,814
383

3,373
343
68
169
63
2,239
491

2,300
333
88
143
35
1,116
585

2,753
360
93
184
30
1,205
881

2,671
314
81
237
30
1,145
866

3,284
401
73
264
40
1,541
966

3,177
603
61
185
38
1,430
860

3,023
484
68
208
36
1,564
664

2,786
393
61
232
33
1,403

60
61
62

Other countries
Australia
All other

2,831
2,742
89

2,128
2,014
114

2,019
1,911
108

2,162
2,026
135

1,926
1,800
126

1,704
1,553
151

1,179
1,007
172

1,345
1,198
146

1,500
1,348
152

63 Nonmonetary international and regional
organizations

3,171

5,293

5,450

6,557

5,728

3,834

4,216

3,555

3,396

64
65
66

2,900
202
69

5,064
187
42

5,091
136
223

6,230
118
209

5,365
144
218

3,484
165
186

3,816
187
213

3,186
157
212

3,079
134
183

International
Latin American regional
Other regional 5
For notes see bottom of p. A59.




126

369
386

10,218

#4

Nov.?

Nonbank-reported
3.17

SHORT-TERM LIABILITIES TO F O R E I G N E R S

Data

A59

Reported by Banks in the United States

Supplemental "Other" Countries 1
Millions of dollars, end of period
1976

1975

1975

1977
Area and country

Area and country
Apr.

Dec.

1
2
3

Other Western Europe
Cyprus
Iceland
Ireland, Republic o f .

17
20
29

4
5
6
7
8
9

Other Eastern Europe
Bulgaria
Czechoslovakia
G e r m a n Democratic Republic.
Hungary
Poland
Rumania

13
11
18
11
42
14

19
32
17
13
66
44

93
120
214
157
144
255
34
92
62
126
38

110
124
169
171
260
38
99
41
133
43

31

131

10
11
12
13
14
15

Other Latin American republics
Bolivia
Costa Rica
Dominican Republic
Ecuador
El Salvador
Guatemala
Haiti
Honduras
Jamaica
Nicaragua
Paraguay
Surinam 2
Trinidad and Tobago

Other Latin America:
23
Bermuda
24
British West Indies.

100
627

120

Apr.

Dec.

Apr.

68
40
236

58
32
131

74
29

34
19
11
18
75
19

16
64
23

117
134
170
150
212
368
48
137
59
158
50
13
44

121
134
274
319
176
340
46
134
34
113
47
29
167

135
170
280
311
214
392
68
210
43
133
60
17
85

14
11
3

177
199
,874 2,377

197
170
,311 2,284

L O N G - T E R M LIABILITIES TO F O R E I G N E R S

Dec.

Apr.

19
50
49
4
30
5
180
92
22
118
215
13
70

41
54
31
4
39
2
117
77
28
74
256
13
62

57
44
34
3
23
2
132
130
34
92
344
10
66

76
13

60
23

25
26
27
28
29
30
31
32
33
34
35
36
37

Other Asia
Afghanistan
Bangladesh
Burma
Cambodia
Jordan
Laos
Lebanon
Malaysia
Nepal
Pakistan
Singapore
Sri Lanka (Ceylon)
Vietnam

38
39
40
41
42
43
44
45
46
47
48

Other Africa
Ethiopia (incl. Eritrea)
Ghana
Ivory Coast
Kenya
Liberia
Southern Rhodesia
Sudan
Tanzania
Tunisia
Uganda
Zambia

32
33
3
14
21
23
38
18

19
53

72
45
17
39
63

12
30
29
22
78

17
20
34
50
14

49

All Other
New Zealand

36

42

48

2

i Represents a partial breakdown of the amounts shown in the " O t h e r "
categories on Table 3.16.

3.18

Apr.

11

18

1

Surinam included with Netherlands Antilles until January 1976.

Reported by Banks in the United States

Millions of dollars, end of period
1977
Holder, and area or country

1 Total

1974

1976

1975

1,285

1,812

2,432

May

June

July

Aug.

Sept.

Oct.*

2,230

2,376

2,322

2,336

2,526

2,586

2 Nonmonetary international and regional
3 Foreign countries
4
Official institutions, including central banks. . .
5
Banks, excluding central banks

7
8
9

Area or country:
Europe
Germany
United Kingdom

2,696

822

415

269

266

279

269

313

330

352

352

464
124
261
79

1,397
931
366
100

2,163
1,337
621
204

1,964
1,080
615
270

2,097
1,135
650
312

2,053
1,081
644
329

2,023
1,006
680
337

2,196
1,074
713
409

2,234
1,089
722
422

2,344
1,255
713
376

226
146
59

330
214
66

570
346
124

579
297
133

628
312
147

634
307
162

664
308
169

708
307
200

719
308
205

704
309
200

19
115

23
140

29
230

34
254

35
280

33
287

27
304

27
341

27
346

26
330

94
7

894
8

1,286
46

1,076
19

1,130
18

1,075
18

987
34

1,056
38

1,064
53

1,232
44

10
11

Canada
Latin America

12
13

Middle East oil-exporting countries 1
Other Asia

14
15

African oil-exporting countries 2
Other Africa

*

16

All other countries

*

1

*

*

*

*

*

*

1

*

2

6

6

6

23

1
22

1
6

*

1

1

1

1

1

1

2

1

1 Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia,
and United Arab Emirates (Trucial States).
2
Comprises Algeria, G a b o n , Libya, and Nigeria.

NOTES TO TABLE 3.16:
1
Includes Bank for International Settlements.
2
Surinam included with Netherlands Antilles until January 1976.
3 Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia,
and United Arab Emirates (Trucial States).




Nov.f

*

NOTE.—Long-term obligations are those having an original maturity
of more than 1 year.

4

Comprises Algeria, Gabon, Libya, and Nigeria.
5
Asian, African, and European regional organizations, except BIS,
which is included in "Other Western E u r o p e . "

A60
3.19

International Statistics • January 1978
SHORT-TERM CLAIMS O N FOREIGNERS
By Country

Reported by Banks in the United States

Millions of dollars, end of period
1977
Area and country

1974

1975

1976
May

June

July

Aug.

Sept.

1 Total

39,056

50,231

69,139

68,060

69,732

69,608

68,592

69,107

72,160

2 Foreign countries

39,055

50,229

69,134

68,057

69,720

69,599

68,581

69,096

72,151

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
Switzerland
17
18
Turkey
19
United Kingdom
20
Yugoslavia
21
Other Western Europe
22
U.S.S.R
23
Other Eastern Europe

6,255
21
384
46
122
673
589
64
345
348
119
20
196
180
335
15
2,580
22
22
46
131

8,987
15
352
49
128
1,471
416
49
370
300
71
16
249
167
237
86
4,718
38
27
103

12,122
44
662
85
139
1,445
517
79
929
304
98
65
373
180
485
176
6,179
41
52
99
171

12,185
43
589
84
130
1,546
503
65
979
362
148
100
302
79
473
322
6,074
55
40
82
209

12,923
53
759
85
113
1,455
575
51
875
480
124
97
284
101
484
333
6,638
58
51
90
216

12,763
63
505
86
101
1,503
647
66
972
471
121

12,277
53
476
100
103
1,471
648
68
1,014
371
135
138
344
151
533
329
6,011
35
47
81
169

13,352
117
558
140
95
1,356
615
103
1,060
447
109
148
346
139
700
337
6,771
34
43
89
146

13,770
15
782
126
111
1,344
766
98
1,104
304
120
138
471
172
681
329
6,623
28
267
82
149

24 Canada

2,776

2,817

3,049

3,554

3,607

3,728

3,978

3,400

3,626

25 Latin America
26
Argentina
27
Bahamas
28
Brazil
29
Chile
30
Colombia
31
Cuba
32
Mexico
33
Panama
34
Peru
35
Uruguay
36
Venezuela
37
Other Latin American republics
38
Netherlands Antilles i
39
Other Latin America

12,377
720
3,405
1,418
290
713
14
1,972
505
518
63
704
852
62
1,142

20,532
1,203
7,570
2,221
360
689
13
2,802
1,052
583
51
1, 086
967
49
1,885

34,270
964
15,336
3,322
387
586
13
3,432
1,257
704
38
1,564
1,125
40
5,503

33,190
886
15,127
3,061
362
505
13
3,249
1,469
741
36
1,359
1,176
36
5,170

33,413
904
16,058
3,030
349
495
13
3,204
905
797
32
1,348
1,144
69
5,066

33,415
839
15,061
3,026
373
514
13
3,469
1,278
796
38
1,421
1,181
64
5,342

32,826
856
13,647
3,077
382
542
13
3,455
1,463
783
39
1,435
1,233
57
5,844

33,076
939
13,522
3,011
431
528
13
3,488
1,063
785
42
1,656
1,224
75
6,298

35,105
1,076
15,984
3,121
435
570
10
3,261
1,431
737
47
1,654
1,290
61
5,426

40 Asia
41
China, People's Republic of (Mainland)
42
China, Republic of (Taiwan)
43
Hong K o n g
44
India
45
Indonesia
46
Israel
47
Japan
48
Korea
49
Philippines
50
Thailand
51
Middle East oil-exporting c o u n t r i e s 2 . . . .
52
Other

16,226
4
500
223
14
157
255
12,518
955
372
458
330
441

16,057
22
736
258
21

17,672

16,606

15
1,221
298
34
39
280
9,591
1,912
498
519
1,469
730

16,979
30
1,259
337
39
72
334
9,935
1,861
418
558
1,275
860

17,025
13
1,275
359
25
65
311
9,698
1,981
372
584
1,476
867

16,838

491
10,776
1,561
384
499
524
684

3
991
271
41
76
551
10,997
1,714
559
422
1,312
735

9
1,236
272
65
56
323
9,623
2,069
478
580
1,369
758

16,614
27
1,303
360
59
67
304
9,351
2,001
All
617
1,340
708

16,856
20
1,321
357
48
97
348
9,341
1,998
489
612
1,531
695

53 Africa
54
Egypt
55
Morocco
56
South Africa
57
Zaire
58
Oil-exporting countries 3
59
Other

855
111
18
329
98
115
185

1,228
101
9
545
34
231
308

1,481
127
13
763
29
253
296

1,559
152
34
778
7
243
344

1,789
157
36
810
9
422
355

1,658
158
46
821
8
290
333

1,720
149
43
799
6
357
365

1,656
134
48
802
15
306
350

1,828

60 Other countries
61
Australia
62
All other

565
466
99

609
535
73

540
441
99

963
846
117

1,009
878
132

1,010

861
150

943
795
148

998
863
135

10

11

10

mi

102

63 Nonmonetary international and regional
organizations
1
2

Includes Surinam until January 1976.
Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia,
and United Arab Emirates (Trucial States).




13

110

323
153
488
333
6,473
49
42
88
169

3 Comprises Algeria, Gabon, Libya, and Nigeria.

155
44

881

7
378
362
966
839
127

Nonbank-reported
3.20

SHORT-TERM CLAIMS O N F O R E I G N E R S

Data

A61

Reported by Banks in the United States

By Type of Claim
Millions of dollars, end of period
1977
Type

1974

1975

1976
May

June

July

Aug.

Sept.

Oct.f

Nov.f
72,275

1 Total

39,056

50,231

69,139

68,060

69,732

69,608

68,592

69,107

72,160

2 Payable in dollars

37,859

48,888

67,494

66,297

67,954

67,942

66,661

67,379

70,161

70,404

3
4
5
6

Loans, total
Official institutions, including central banks
Banks, excluding central banks
All other, including nonmonetary international and regional organizations

11,287
381
7,332

13,200
613
7,665

18.141
1,448
11.142

16,647
967
10,638

16,090
983
10,001

17,602
851
11,523

16,687
1,018
10,609

18,383
1,007
11,992

18,045
1,085
11,301

17,560
1,064
11,146

3,574

4,921

5,552

5,041

5,105

5,228

5,060

5,385

5,658

5,350

7
8
9

Collections outstanding
Acceptances made for accounts of foreigners..
Other claims 1

5,637
11,237
9,698

5,467
11,147
19,075

5,756
12,358
31,238

6,317
13,045
30,288

6,417
13,166
32,280

6,352
13,431
30,556

6,200
13,556
30,218

6,025
13,645
29,325

6,005
13,674
32,436

6,029
13,368
33,447

1,196

1,342

1,645

1,764

1,779

1,667

1,931

1,728

2,000

1,871

10 Payable in foreign currencies
11
12
13

Deposits with foreigners
Foreign government securities, commercial
and finance paper
Other claims

669

656

1,063

864

845

817

1,032

844

922

837

289
238

314
372

89
493

377
522

302
631

277
572

233
667

239
645

356
722

392
642

i Includes claims of U.S. banks on their foreign branches and claims
of U.S. agencies and branches of foreign banks on their head offices and
foreign branches of their head offices.
NOTE.—Short-term claims are principally the following items payable
on demand or with a contractual maturity of not more than 1 year: loans

3.21

L O N G - T E R M CLAIMS O N F O R E I G N E R S

made to, and acceptances made for, foreigners; drafts drawn against
foreigners, where collection is being made by banks and bankers for
their own account or for account of their customers in the United States;
and foreign currency balances held abroad by banks and bankers and
their customers in the United States. Excludes foreign currencies held
by U.S. monetary authorities.

Reported by Banks in the United States

Millions of dollars, end of period
1977
Type, and area or country

1974

1975

1976
May

June

July

Aug.

Sept.

Oct. 2 '

Nov.f

11,898

12,294

12,182

12,251

12,468

12,648

12,734

12,368

7,179

9,536

By type:
2
Payable in dollars

7,099

9,419

11,750

12,091

11,982

12,049

12,250

12,432

12,504

12,134

3
4
5
6

6,490
1,324
929

8,316
1,351
1,567

10,093
1,407
2,232

10,395
1,674
2,262

10,286
1,653
2,263

10,323
1,676
2,238

10,504
1,712
2,279

10,609
1,756
2,316

10,761
1,774
2,426

10,452
1,794
2,303

4,237

5,399

6,454

6,460

6,371

6,408

6,513

6,538

6,561

6,355

609

1,103

1,656

1,696

1,695

1,726

1,746

1,823

1,743

1,681

80

116

148

202

200

202

218

216

229

235

By area or country:
9
Europe
10
Canada
11
Latin America

1,908
501
2,614

2,704
555
3,468

3,314
637
4,870

3,650
501
5,042

3,677
483
5,016

3,648
485
5,045

3,706
455
5,219

3,677
456
5,428

3,682
461
5,547

3,419
424
5,583

12
13
14
15

1,619
258
384
977

1,795
296
220
1,279

1,904
382
146
1,376

1,884
391
149
1,345

1,832
381
151
1,301

1,862
391
155
1,317

1,846
371
170
1,305

1,872
359
161
1,353

1,763
334
172
1,257

1,742
320
153
1,270

366
62
305

747
151
596

890
271
619

898
213
685

860
213
647

857
191
666

898
219
679

873
221
651

858
201
657

852
176
676

171

267

282

319

313

353

344

343

423

348

1

Loans, total
Official institutions, including central banks
Banks, excluding central banks
All other, including nonmonetary international and regional organizations

7

Other long-term claims

8

Payable in foreign currencies

16
17
18
19

Asia
Japan
Middle East oil-exporting countries l
Other Asia
Oil-exporting countries 2
Other
All other countries 3

l Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia,
and United Arab Emirates (Trucial States).




2
3

Comprises Algeria, Gabon, Libya, and Nigeria,
Includes nonmonetary international and regional organizations.

A62
3.22

International Statistics • January 1978
F O R E I G N B R A N C H E S OF U.S. B A N K S

Balance Sheet Data

Millions of dollars, end of period
1977

1976
Asset account

1974

1975
Dec.

Apr.

May

June

July

Aug.r

Sept.

Oct.P

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 b a n k .
Other banks
Official institutions
N o n b a n k 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 f oreigners
Other branches of parent bank
Other banks
Official institutions
N o n b a n k foreigners

20

Other assets

151,905

176,493

219,420

223,222

229,542

236,480

235,637

234,592

244,955

247,049

6,900
4,464
2,435

6,743
3,665
3,078

7,889
4,323
3,566

8,676
5,276
3,400

7,361
3,928
3,432

7,398
3,610
3,788

10,683
7,134
3,549

8,192
4,630
3,562

11,914
8,231
3,683

8,301
4,604
3,697

138,712
27,559
60,283
4,077
46,793

163,391
34,508
69,206
5,792
53,886

204,486
45,955
83,765
10,609
64,157

207,573
48,164
79,782
12,517
67,110

214,784
49,464
83,937
13,045
68,337

221,667
52,406
86,887
13,194
69,180

217,456
48,387
84,363
13,572
71,134

218,869
48,317
85,532
13,820
71,200

225,123
52,071
87,741
14,182
71,128

230,295
51,901
91,866
14,444
72,084

6,294

6,359

7,045

6,973

7,397

7,414

7,497

7,530

7,919

8,453

105,969

132,901

167,695

172,134

176,603

182,396

179,647

179,050

188,176

187,580

6,603
4,428
2,175

6,408
3,628
2,780

7,595
4,264
3,332

8,302
5,232
3,070

6,951
3,903
3,049

6,984
3,590
3,393

10,266
7,095
3,170

7,748
4,560
3,188

11,434
8,177
3,257

7,759
4,517
3,242

96,209
19,688
45,067
3,289
28,164

123,496
28,478
55,319
4,864
34,835

156,896
37,909
66,331
9,018
43,638

160,529
40,300
63,061
11,174
45,994

166,160
41,350
66,319
11,682
46,808

172,011
43,952
68,815
11,758
47,486

166,057
39,647
65,875
12,110
48,425

167,716
39,995
66,826
12,223
48,672

173,191
42,983
68,789
12,693
48,726

175,842
42,693
71,591
12,766
48,791

3,157

2,997

3,204

3,303

3,492

3,401

3,325

3,586

3,552

3,979

United Kingdom
21 Total, all currencies
22
23
24

Claims on United
Parent bank
Other

States.

25
26
27
28
29

Claims of foreigners
Other branches of parent b a n k .
Other banks
Official institutions
N o n b a n k foreigners

30

Other assets

31 Total payable in U.S. dollars.
32
33
34

Claims on United
Parent bank
Other

35
36
37
38
39

Claims on foreigners
Other branches of parent b a n k .
Other banks
Official institutions
N o n b a n k foreigners

40

Other assets.

States.

69,804

74,883

81,466

80,150

83,178

84,734

83,484

83,270

88,033

90,154

3,248
2, All
116

2,392
1,449
943

3,354
2,376
978

2,541
1,698
843

2,714
1,850
863

2,450
1,553
897

3,129
2,249
881

2,307
1,397
910

3,422
2,556
866

2,729
1,789
940

64,111
12,724
32,701
788
17,898

70,331
17,557
35,904
881
15,990

75,859
19,753
38,089
1,274
16,743

75,559
21,707
35,585
1,728
16,539

78,333
21,097
38,660
1,948
16,627

80,087
22,121
39,157
1,764
17,045

78,083
20,909
37,772
1,863
17,538

78,607
20,015
38,784
1,983
17,826

82,154
22,363
39,576
1,955
18,259

84,766
22,178
41,923
2,052
18,613

2,445

2,159

2,253

2,050

2,131

2,197

2,272

2,355

2,458

2,659

49,211

57,361

61,587

61,179

63,481

64,841

62,815

62,686

66,895

67,243

3,146
2,468
678

2,273
1,445
828

3,275
2,374
902

2,430
1,690
740

2,590
1,842
748

2,338
1,547
791

3,011
2,237
774

2,130
1,348
781

3,259
2,527
732

2,545
1,748
797

44,694
10,265
23,716
610
10,102

54,121
15,645
28,224
648
9,604

57,488
17,249
28,983
846
10,410

57,894
19,232
26,941
1,415
10,306

60,030
18,619
29,521
1,624
10,267

61,582
19,538
29,930
1,437
10,676

58,875
18,135
28,497
1,473
10,769

59,419
17,550
29,199
1,574
11,095

62,584
19,865
29,808
1,555
11,355

63,596
19,497
31,134
1,595
11,370

1,372

967

824

855

861

922

930

1,138

1,052

1,103

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,
Other banks
Official institutions
N o n b a n k foreigners

50

Other assets

51 Total payable in U.S. dollars




31,733

45,203

66,774

70,950

71,540

74,853

74,727

73,284

78,430

76,031

2,464
1,081
1,383

3,229
1,477
1,752

3,508
1,141
2,367

4,998
2,703
2,295

3,543
1,251
2,292

3,970
1,394
2,576

6,447
4,062
2,385

4,875
2,465
2,410

7,455
4,861
2,595

4,756
2,173
2,583

28,453
3,478
11,354
2,022
11,599

41,040
5,411
16,298
3,576
15,756

62,048
8,144
25,354
7,101
21,449

64,652
8,095
25,234
7,784
23,538

66,579
8,703
25,588
8,062
24,226

69,528
9,638
27,372
8,344
24,174

66,970
7,586
25,967
8,628
24,788

67,124
8,259
25,481
8,591
24,793

69,680
9,828
26,367
9,192
24,293

69,685
9,266
27,130
9,195
24,095

815

933

1,217

1,300

1,419

1,356

1,309

1,285

1,294

1,589

28,726

41,887

62,705

66,366

66,550

69,930

69,548

68,209

72,948

70,501

Overseas Branches
3.22

A63

Continued

1977

1976
Liability account

1974

1975
Dec.

Apr.

May

June

July

Aug. r

Sept.

Oct.f

235,637

234,591

244,955

247,049
38,814
21,599
17,215
199,929
50,641
89,974
29,885
29,429

All foreign countries
52 Total, all currencies

151,905

176,493

219,420

223,222

229,542

236,480

53
54
55

To United States
Parent bank
Other

11,982
5,809
6,173

20,221
12,165
8,057

32,721
19,775
12,946

33,054
18,256
14,798

34,792
20,497
14,295

'37,583
'23,167
14,416

37,713
19,670
18,043

36,360
19,438
16,922

38,618
18,363
20,255

56
57
58
59
60

To foreigners
132,990
Other branches of parent bank. 26,941
65,675
Other banks
20,185
Official institutions
20,189
Nonbank foreigners

149,815
34,111
72,259
22,773
20,672

179,953
44,370
83,878
25,829
25,877

183,203
46,386
'82,034
'26,297
28,486

187,619
48,137
'83,981
'27,461
28,040

191,822
50,291
'84,142
'28,368
29,021

189,347
47,015
'86,784
'27,218
28,329

189,739
47,221
86,453
27,776
28,288

198,817
51,201
91,561
28,014
28,040

61

Other liabilities

62 Total payable in U.S. dollars

6,933

6,456

6,747

6,965

7,130

'7,075

8,577

8,491

7,521

8,306

107,890

135,907

173,071

177,270

181,813

187,643

184,722

183,298

192,958

192,812

63
64
65

To United States
Parent bank
Other

11,437
5,641
5,795

19,503
11,939
7,564

31,934
19,561
12,373

32,068
18,011
14,057

33,882
20,241
13,640

'36,472
'22,724
13,748

36,751
19,396
17,355

35,482
19,168
16,314

37,693
18,049
19,644

37,778
21,291
16,487

66
67
68
69
70

To foreigners
Other branches of parent bank.
Other banks
Official institutions
Nonbank foreigners

92,503
19,330
43,656
17,444
12,072

112,879
28,217
51,583
19,982
13,097

137,610
37,098
60,617
22,878
17,017

141,479
39,307
'59,945
'23,320
18,906

144,220
40,677
'60,861
'24,439
18,242

147,346
42,739
'60,185
'25,377
19,045

142,957
38,939
'61,689
'24,240
18,088

142,680
39,483
61,113
24,481
17,603

151,147
43,043
65,984
24,695
17,425

150,597
42,293
63,326
26,363
18,614

71

Other liabilities

3,951

3,526

3,527

3,724

3,712

'3,825

5,013

5,136

4,118

4,437

United Kingdom
72 Total, all currencies
73
74
75

To United States
Parent bank
Other

76
77
78
79
80

To foreigners
Other branches of parent bank.
Other banks
Official institutions
Nonbank foreigners

81

Other liabilities

82 Total payable in U.S. dollars
83
84
85

To United States
Parent bank
Other

86
87
88
89
90

To foreigners
Other branches of parent bank.
Other banks
Official institutions
Nonbank foreigners

91

Other liabilities

69,804

74,883

81,466

80,150

83,178

84,734

83,484

83,270

88,033

90,154

3,978
510
3,468

5,646
2,122
3,523

5,997
1,198
4,798

6,272
1,515
4,756

5,845
1,460
4,386

6,894
2,150
4,743

8,537
2,217
6,320

7,933
1,611
6,322

7,922
1,425
6,496

7,310
1,364
5,946

63,409
4,762
32,040
15,258
11,349

67,240
6,494
32,964
16,553
11,229

73,228
7,092
36,259
17,273
12,605

71,787
7,762
33,749
17,260
13,016

75,145
8,569
35,933
17,538
13,106

75,683
8,936
34,960
18,086
13,701

72,585
7,987
34,623
17,148
12,827

72,848
8,395
34,163
17,366
12,923

77,580
8,934
37,024
18,553
13,070

79,837
9,187
36,676
20,366
13,608

2,418

1,997

2,241

2,091

2,187

2,157

2,362

2,488

2,532

3,007

49,666

57,820

63,174

62,373

64,343

65,735

63,848

63,334

67,689

68,594

3,744
484
3,261

5,415
2,083
3,332

5,849
1,182
4,666

6,108
1,498
4,610

5,688
1,438
4,250

6,679
2,083
4,596

8,348
2,184
6,164

7,676
1,563
6,113

7,622
1,363
6,259

7,004
1,288
5,716

44,594
3,256
20,526
13,225
7,587

51,447
5,442
23,330
14,498
8,176

56,372
5,874
25,527
15,423
9,547

55,390
6,561
23,818
15,394
9,617

57,720
7,333
25,172
15,674
9,541

58,136
7,660
24,135
16,301
10,040

54,550
6,583
23,681
15,295
8,990

54,539
7,131
23,254
15,252
8,902

58,962
7,535
25,984
16,430
9,013

60,304
7,724
25,306
18,053
9,221

1,328

959

953

875

936

920

951

1,119

1,105

1,286

Bahamas and Caymans
92 Total, all currencies
93
94
95

To United States
Parent bank
Other

96
97
98
99
100

To foreigners
Other branches of parent bank.
Other banks
Official institutions
Nonbank foreigners

101

Other liabilities

102 Total payable in U.S. dollars




31,733

45,203

66,11A

70,950

71,540

74,853

74,727

73,284

78,430

76,031

4,815
2,636
2,180

11,147
7,628
3,520

22,723
16,163
6,560

23,082
14,514
8,568

25,162
16,426
8,735

'26,966
'18,708
8,258

25,080
14,835
10,245

24,487
15,288
9,198

27,031
14,814
12,218

27,291
17,390
9,902

26,140
7,702
14,050
2,377
2,011

32,949
10,569
16,825
3,308
2,248

42,897
13,801
21,758
3,573
3,765

46,618
14,123
23,245
3,917
5,334

45,136
14,001
22,296
4,130
4,709

46,477
14,662
22,693
4,216
4,906

47,161
13,736
24,166
4,322
4,936

46,464
13,206
23,878
4,592
4,789

50,035
15,026
27,370
3,184
4,454

47,244
14,623
24,112
3,354
5,155

778

1,106

1,154

1,249

1,243

'1,410

2,487

2,334

1,363

1,495

28,840

42,197

63,417

67,168

67,518

70,816

70,399

68,663

73,769

71,292

A64
3.23

International Statistics • January 1978
MARKETABLE U.S. T R E A S U R Y B O N D S A N D NOTES

Foreign Holdings and Transactions

Millions of dollars

Country or area

1975

1977
Jan.—
Nov.®

1976

1977
May

June

July

Aug.

Sept.

Oct.?

Nov.®

Holdings (end of period) 4
7,703

15,798

19,745

22,196

23,433

27,584

31,068

34,325

37,642

.

7,372

12,765

17,609

19,740

20,848

24,644

27,209

30,324

33,266

3
4
5
6
7
8
9
10
11

Europe
Belgium-Luxembourg..
Germany
Netherlands
Sweden
Switzerland
United Kingdom
Other Western Europe.
Eastern Europe

1,085
13
215
16
276
55
363
143
4

2,330
14
764
288
191
261
485
323
4

4,034
17
1,112
418
148
429
1,591
314
4

5,272
18
1,261
492
149
439
2,600
307
4

6,225
19
1,266
503
149
485
3,478
321
4

8,480
19
1,847
633
155
478
5,017
326
4

10,163
19
1,957
719
125
488
6,506
343
4

12,603
20
2,165
821
125
474
8,640
353
4

14,003
20
2,742
911
100
476
9,419
331
4

12

Canada

395

256

271

279

283

288

292

294

293

13
14
15
16

Latin America
Venezuela
Other Latin America 1republics.
Netherlands Antilles

200
4
29
161

312
149
35
118

471
193
21
113

480
193
18
113

481
193
18
113

513
193
18
145

517
183
18
159

519
183
21
158

518
184

17

Asia

5,370
3,271

9,323
2,687

12.528
3,773

13,407
4,290

13,567
4,314

15,071
5,025

15,942
5,635

16,612
5,958

18,100
6,547

321

543

1 Estimated total
2 Foreign countries

18

19

Japan
Africa

*

167

279

279

279

279

279

279

348

*

26

23

13

12

16

18

5

All other
20
21 Nonmonetary international and regional
organizations

331

3,033

2,136

2,456

2,585

2,940

3,859

4,001

4,376

22
23

322
9

2,905
128

2,032
103

2,353
103

2,440
146

2,830
110

3,759
100

3,900
100

4,276
100

International
Latin American regional.

Transactions (net purchases, or sales (—), during period)
24 Total

1,994

8,095

21,845

886

2,451

1,238

4,151

3,483

3,257

3,317

25 Foreign countries

1,814

5,393

20,502

1,177

2,131

1,108

3,796

2,564

3,116

2,942

26
27

1,612
202

5,116
276

19,726
776

1,152
24

1,962
167

1,048
59

3,696
101

2,493
71

3,051
65

2,881
61

180

2,702

1,343

-292

321

130

354

919

141

376

1,797
170

3,887
221

4,123
-194

392
-26

397

-14

533

161

284

864
69

Official institutions
Other foreign

28 Nonmonetary international and regional
organizations
MEMO: Oil-exporting
countries
29
Middle East 2
30
Africa 3

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.

1
Includes Surinam until January 1976.
2
Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia,
and3 United Arab Emirates (Trucial States).
Comprises Algeria, Gabon, Libya, and Nigeria.

3.24

F O R E I G N OFFICIAL ASSETS H E L D A T F E D E R A L RESERVE B A N K S
Millions of dollars, end of period

Assets

1974

1977

1976

1975

June
1 Deposits
Assets held in custody:
2
U.S. Treasury securities 1
3
Earmarked gold 2

Aug.

Sept.

Oct.

Nov.

Dec.

418

353

352

379

468

534

382

425

416

424

55,600
16,838

60,019
16,745

66,532
16,414

74,098
16,184

75,443
16,179

75,976
16,117

79,285
16,073

83,832
15,988

89,497
15,872

83,832
15,988

1 Marketable U.S. Treasury bills, certificates of indebtedness, notes,
and bonds; and nonmarketable U.S. Treasury securities payable in dollars
and in foreign currencies.
2
The value of earmarked gold increased because of the changes in
par value of the U.S. dollar in May 1972 and in October 1973.




July

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
3.25

A65

F O R E I G N T R A N S A C T I O N S I N SECURITIES
Millions of dollars
1977

1977

Transactions, and area or country

1975 R

1976

Jan.-

June

May

Aug.

July

Sept.

Oct.?

Nov.F

NOV.P

U.S. corporate securities

1
2

Stocks
Foreign purchases
Foreign sales

15,355
10,678

18,227
15,475

12,910
10,532

1,207
978

1,196
948

1,373
1,162

Net purchases, or sales ( —)

4,678

2,753

2,378

229

248

4

Foreign countries

4,660

2,740

2,368

209

254

5
6
7
8
9
10

Europe
France
Germany

2,491
262
251
359
899
594

336
256
68
-199
-100
340

850
43
233
13
155
504

96
-3
37
27
4
35

33
21
12

11
12
13
14

Canada
Latin America
Middle East 1
Other Asia

361
-7
1,649
142
10
15

324
155
1,803
119
7
-4

51
113
1,282
58
5
9

18

13

5,408
4,642

3

is

Switzerland
United Kingdom

16
17

Nonmonetary international and regional
organizations

Bonds 2
18
Foreign purchases
19
Foreign sales
20

Net purchases, or sales (—)

21

Foreign countries

22
23
24
25
26
27

Europe
France
Germany
Netherlands
Switzerland
United Kingdom

28
29
30
31
32
33

Canada
Latin America
Middle E a s t 1
Other Asia
Africa
Other countries

34

Nonmonetary international and regional
organizations

1,023
900

1,012
846

973
752

1,281
899

211

123

166

222

382

210

124

170

223

385

-20
35

29
-24
20
-10
5
57

37
-13
—1
-2
-7
67

57
5
14
-18
6
80

109
27
37
5
2
52

200
1
64
10
34
106

-33
17
124
4

-3
17
195
10

12
4
171
-7

-5
1
94
-3

2

-2

20
-4
93
2
2
2

21
27
128
8

j

-3
-3
108
8
2
1

11

20

-7

2

-1

—5

—1

—3

5,529
4,322

7,404
3,165

609
332

976
394

752
286

714
252

504
383

942
292

743
226

1

2

766

1,207

4,239

277

582

467

463

121

650

517

1,795

1,248

4,193

308

569

499

438

123

650

507

113
82
-6
-9
117
-52

91
39
-49
-29
158
23

1,986
-29
49
72
164
1,674

99
—7
13
-28
19
102

314
-3
12
57
17
223

232
1
12
11
34
197

130
1
1

33
1
3
21
12
6

376
5
2
-7
324

320
-5
4
20
-7
324

128
31
1,553
-35
5
1

96
94
1,179
-165
-25
-21

142
62
1,687
321
-5

192
17

7
2
235
10

30
12
153
72

13
18
192
84

15
13
79
-14
—3

4
jj
124
135

159
27

-1,029

-41

46

-31

13

-32

25

-2

j

21
96

1

-1

10

Foreign securities
35 Stocks, net purchases, or sales (—)
36
Foreign purchases
37
Foreign sales

-188
1,542
1,730

38 Bonds, net purchases, or sales (—)
39
Foreign purchases
40
Foreign sales

-463
1,974
2,438

-12
200
211

-60
169
229

-265
159
423

-63
169
232

31
169
138

106
247
141

34
214
180

-6,326
2,383
8,708

-8,730 -4,652
4,932
7,612
13,662 12,264

-866
607
1,473

-765
636
1,401

-205
786
991

-1,003
852
1,854

-669
710
1,379

-278
797
1,075

-356
588
944

41 Net purchases, or sales ( — ) of stocks and b o n d s . . - 6 , 5 1 4

-9,053 -5,115

-878

-824

-469

-1,066

-639

-172

-321

42 Foreign countries
43
Europe
44
Canada
45
Latin America
46
Asia
47
Africa
48
Other countries

-4,323
-53
-3,202
-306
-622
15
-155

-7,155 -3,536
-843 -1,169
-5,245 -2,249
18
-699
-82
4
48
-416
-57

-204
-124
-128
-17
62

-393
-267
-241
52
57

-227
-22
-255
-7
55

-344
-260
-21
-8
-57

5

1

-632
-24
-573
43
2
j
-81

-21
-30
45
-170
136
—2

2

-696
-272
-292
-42
-93
3
2

49 Nonmonetary international and regional
organizations

-2,192

-1,898 -1,579

-673

-129

-76

-323
1,937
2,259

i Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq,
Kuwait,"Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial
States).




1

-839

-6

2
-151

23

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
3.26

International Statistics • January 1978
SHORT-TERM LIABILITIES TO A N D CLAIMS O N FOREIGNERS
in the United States

Reported by Nonbanking Concerns

Millions of dollars, end of period
1976

1977

1976

Type, and area or country
June

Sept.

Dec.

Mar.

June®

June

Sept.

Liabilities to foreigners
1
By type:
2
Payable in dollars
3
4

Payable in foreign currencies
Deposits with banks abroad in reporter's

5

Dec.

Mar.

June®

Claims on foreigners

6,266

6,408

6,582

6,551

6,386

13,820

13,164

14,156

14,943

16,140

5,640

5,671

5,870

5,787

5,737

12,823

12,104

13,169

13,943

15,018

1,000

1,122

626

737

712

764

648

Other

By area or country:
6 Foreign countries
7
Europe
8
Austria
9
Belgium-Luxembourg.
10
Denmark
11
Finland
12
France
13
Germany
14
Greece
Italy.
15
16
Netherlands
17
Norway
18
Portugal
19
Spain
20
Sweden
21
Switzerland
22
Turkey
23
United Kingdom
24
Yugoslavia
25
Other Western Europe
26
U.S.S.R
27
Other Eastern Europe

1977

6,020
2,273
13
233
12
1
159
228
29
116
170
22
3
51
24
213
20
839
108
7
10
16

6,222
2,387
15
183
13
17
185
256
28
148
141
24
5
36
35
243
16
888
113
8
19
14

6,374
2,227
10
166
7
2
200
174
48
131
141
29
13
40
34
190
13
878
123
7
9
13

6,359
2,126
9
168
15
2
163
175
80
135
168
37
23
52
36
214
12
689
113
6
15
13

6,216
2,208
10
138
14
10
157
163
73
154
205
33
20
68
36
236
21
730
110
6
16
10

997

1,060

987

558
439

592
468

442
545

431
569

448
674

13,819
5,326
17
193
30
131
363
358
47
335
146
52
22
432
84
270
31
2,602
28
14
96
75

13,163
5,151
21
195
26
135
413
492
56
358
142
43
28
336
62
253
23
2,365
30
17
81
79

14,155
5,269
21
162
56
77
426
378
51
384
166
51
40
369
90
241
25
2,445
26
20
156
85

14,940
5,218
23
170
48
40
422
367
90
473
172
42
35
325
93
154
32
2,475
30
18
105
103

16,139
5,808
21
218
40
90
402
377
86
439
182
42
30
322
92
179
37
3,027
27
15
76
102

2,201

2,196

2,464

2,432

2,570

2,831
39
940
417
26
66
1
352
83
35
22
215
182
9
444

3,579
44
1,384
682
34
59
1
332
74
42
5
194
276
9
441

4,400
46
1,869
535
35
75
\
317
105
32
6
214
237
14
914

4,928
51
2,231
457
28
72
1
301
120
28
5
245
236
8
1,146

28

Canada

372

327

379

403

420

29
30
31
32
33
34
35
36
37
38
39
40
41
42
43

Latin America
Argentina
Bahamas
Brazil
Chile
Colombia
Cuba
Mexico
Panama
Peru
Uruguay
Venezuela
Other Latin American1 republics
Netherlands Antilles
Other Latin America

1,095
49
330
97
15
19

1,028
48
251
58
16
11

1,037
44
260
72
17
13

1,118
42
256
49
16
18

1,017
50
216
37
24
22

72
12
31
3
184
102
55
127

74
10
32
3
222
104
68
129

99
34
25
4
219
141
10
100

118
12
24
4
260
148
11
160

117
10
21
3
208
140
17
151

3,055
43
1,150
462
46
57
1
332
101
39
4
186
188
10
436

44
45
46
47
48
49
50
51
52
53
54
55

Asia
China, People's Republic of (Mainland)
China, Republic of (Taiwan)
Hong Kong
India
Indonesia
Israel
Japan
Korea
Philippines
Thailand
Other Asia

1,705
1
122
28
10
115
34
272
60
18
11
1,035

1,978
1
127
33
11
131
32
247
85
28
23
1,260

1
110
40
23
110
37
193
76
53
24
1,385

2,057
3
113
42
39
94
37
172
96
59
19
1,383

1,891
2
138
27
41
80
45
184
95
73
11
1,196

2,703
16
212
104
51
143
53
1,170
129
114
19
692

2,401
5
134
88
53
179
48
1,010
142
93
23
625

2,282
3
197
96
55
185
41
912
117
86
22
568

2,314
1
130
107
35
206
51
969
130
84
27
569

2,318
8
131
93
51
184
70
934
158
87
22
582

56
57
58
59
60
61

Africa
Egypt

532
22
32
88
12
377

435
25
42
65
24
279

603
27
43
54
36
444

588
29
21
33
39
460

587
33
70
27
39
418

378
28
12
83
25
230

406
36
9
78
28
255

392
28
10
87
21
247

429
70
12
80
19
248

368
24
9
69
17
248

62
63
64

Other countries
Australia
All other

44
32
12

67
50
18

76
57
19

68
49
19

92
12
20

155
100
56

178
112
67

170
105
65

147
111
36

145
106
40

246

186

208

192

170

1

1

1

2

1

South Africa
Zaire
Other Africa

65 Nonmonetary international and regional
organizations
1

Includes Surinam until 1976.

NOTE.—Reported by exporters, importers, and industrial and com-




2,052

mercial concerns and other nonbanking institutions in the United States.
Data exclude claims held through U.S. banks and intercompany accounts
between U.S. companies and their affiliates.

Nonbank-reported Data
3.27

SHORT-TERM CLAIMS O N FOREIGNERS

A67

Reported by Large Nonbanking Concerns in the United States

Millions of dollars, end of period
1977
Type and country

1
By type:
2
Payable in dollars
3
Short-term investments
4

Payable in foreign currencies
Deposits
Short-term investments 1

5
6
7
8
9
10
11
12

1

By country:
United Kingdom
Canada
Bahamas
Japan
All other

1974

1973

May

June

July

Aug.

Sept.

Oct.*5

3,185

3,357

3,799

5,468

7,481

7,685

7,357

7,739

6,846

7,591

2,641
2,604
37

2 MO
2,591
69

3,042
2,710
332

4,788
4,415
373

6,787
6,264
523

6,895
6,424
471

6,619
6,195
424

6,976
6,475
501

6,117
5,709
408

6,815
6,362
453

544
431
113

697
429
268

757
511
246

680
373
302

695
361
334

790
389
401

739
352
387

764
394
370

729
356
373

776
374
402

1,128
775
597
336
349

1,350
967
391
398
252

1,306
1,156
546
343
446

1,837
1,539
1,264
113
715

1,920
1,645
2,414
158
1,344

2,318
1,652
2,114
184
1,417

2,123
1,725
2,113
149
1,247

2,194
1,930
2,225
139
1,251

1,781
1,607
1,753
147
1,558

1,823
1,936
2,361
153
1,318

i Negotiable and other readily transferable foreign obligations payable
on demand or having a contractural maturity of not more than 1 year
f r o m the date on which the obligation was incurred by the foreigner.

3.28

1976

1975

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.

L O N G - T E R M LIABILITIES TO A N D CLAIMS O N FOREIGNERS
in the United States

Reported by Nonbanking Concerns

Millions of dollars, end of period
1977

1976

1977

1976

Area and country
June

Sept.

Dec.

Mar.

June

June

Sept.

Dec.

Mar.

June?

Claims on foreigners

Liabilities to foreigners
1 Total

4,008

3,791

3,567

3,504

3,331

4,982

5,006

4,925

4,894

4,827

2 Europe
3
Germany
4
Netherlands
5
Switzerland

3,036
425
233
467
1,516

2,858
406
290
327
1,470

2,725
396
277
260
1,420

2,655
391
272
178
1,388

2,499
370
262
177
1,274

929
35
211
56
310

901
73
211
54
245

853
72
156
57
240

847
84
154
53
207

829
76
147
43
221

7 Canada

166

111

89

82

81

1,511

1,507

1,530

1,475

1,486

8 Latin America
9
Bahamas
10
Brazil
11
Chile
12
Mexico

250
184
5
1
6

257
157
5
1
7

270
163
5
1
17

272
163
5
1
21

275
167
7
1
23

1,609
37
165
306
187

1,637
37
172
244
219

1,521
36
133
248
195

1,489
34
125
210
180

1,457
34
125
208
178

13 Asia

489
388

498
402

423
397

432
413

406
384

712
85

739
80

775
77

817
96

831
108

15 Africa
16 All other i
1

2

2

2

2

3

163

165

187

199

158

64

64

58

59

67

59

58

58

67

67

Includes nonmonetary international and regional organizations.




A68
3.29

International Statistics • January 1978
D I S C O U N T RATES OF FOREIGN C E N T R A L B A N K S
Per cent per annum

Country

Country

Country

18.0

Argentina
Austria...
Belgium..
Brazil
Canada..
Denmark.

Per
cent

Month
effective

Per
cent

5.5
9.0
28.0
7.5
9.0

Feb.
June
Dec.
May
May
Mar.

1972
1977
1977
1976
1977
1977

France
Germany, Fed. Rep. of.
Italy
Japan
Mexico
Netherlands

9.5
3.0
11.5
4.25
4.5
4.5

Aug.
Dec.
Aug.
Sept.
June
Nov.

1977
1977
1977
1977
1942
1977

Month
effective

Per
cent

Month
effective
Norway
Sweden
Switzerland
United Kingdom
Venezuela

Sept.
Oct.
July
Nov.
Oct.

6.0
8.0
1.5
7.0
5.0

1976
1976
1977
1977
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

3.30

Rate on Dec. 31, 1977

Rate on Dec. 31, 1977

Rate on Dec. 31, 1977

F O R E I G N SHORT-TERM INTEREST RATES
Per cent per annum, averages of daily figures
1977

1 Euro-dollars
2 United Kingdom
3 Canada

1976

1975

1974

Country, or type

Aug.

Sept.

Oct.

Nov.

Dec.

11.01

7.02
10.63
8.00

5.58
11.35
9.39

5.80
7.77
7.27

6.30
6.91
7.44

6.56
6.03
7.31

7.14
5.05
7.23

7.09
5.32
7.34

7.12
6.76
7.20

9.80

4.87
3.01
5.17
7.91

4.19
1.45
7.02
8.65

4.20
3.01
3.05
8.67

4.04
2.41
3.48
8.51

4.07
2.37
4.39
8.38

4.06
2.23
4.55
8.41

4.09
2.32
5.94
9.28

3.94
2.20
6.65
9.88

10.37
6.63
11.64

16.32
10.25
7.70

14.09
6.85
6.25

13.94
6.20
6.24

12.42
6.20
5.32

12.05
6.25
5.25

11.74
6.38
5.37

11.38
7.75
5.75

13.34
10.47

4 Germany

8 Italy

NOTE.—Rates are for 3-month interbank loans except for—Canada,
finance company paper; Belgium, time deposits of 20 million francs and

3.31

July

over; and Japan, loans and discounts that can be called after being held
over a minimum of two month-ends.

F O R E I G N E X C H A N G E RATES
Cents per unit of foreign currency
1977
Country/currency

1
2
3
4
5

Australia/dollar
Austria/shilling
Belgium/franc
Canada/dollar
Denmark/krone

1974

143.89
5.3564
2.5713
102.26
16.442

1975
July

Aug.

Sept.

Oct.

Nov.

Dec.

130.77
5.7467
2.7253
98.30
17.437

122.15
5.5744
2.5921
101.41
16.546

112.20
6.1691
2.8208
94.230
16.769

110.47
6.0792
2.8107
93.028
16.590

110,37
6.0377
2.7910
93.168
16.188

111.90
6.1567
2.8229
91.010
16.359

112.70
6.2551
2.8396
90.145
16.327

113.36
6.4734
2.9608
91.132
16.833

27.285
23.354
40.729
11.926
222.16

25.938
20.942
39.737
11.148
180.48

24.902
20.607
43.827
11.342
172.26

24.801
20.415
43.168
11.465
173.97

23.977
20.314
43.034
11.450
174.31

24.139
20.574
43.904
11.605
177.11

23.986
20.614
44.633
11.576
181.78

24.299
20.844
46.499
11.712
185.46

6
7
8
9
10

26.565
Finland/markka
20.805
France/franc
38.723
Germany/deutsche m a r k . . .
12.460
India/rupee
234.03
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

140.02
18.119
3.9506
146.98
1.7337

121.16

19.180
3.9286
136.47
1.7424

99.115
18.327
3.3159
114.85
1.4958

97.160
19.023
2.5953
114.98
1.2382

96.826
18.863
2.5678
115.00
1.1804

96.812
18.226
2.4606
115.00
1.1824

98.152
18.232
2.4601
115.04
1.1902

99.392
18.328
2.4575
115.04
1.2060

100.59
19.056
2.4755
115.04
1.2237

21
22
23
24

Sri Lanka/rupee
Sweden/krona
Switzerland/franc
United K i n g d o m / p o u n d . . .

14.978
22.563
33.688
234.03

14.385
24.141
38.743
222.16

11.908
22.957
40.013
180.48

13.700
22.991
41.487
172.26

13.721
22.472
41.523
173.97

12.301
20.602
42.115
174.31

11.618

20.846
43.909
177.11

8.7721
20.848
45.507
181.78

6.2000
21.044
48.168
185.46

84.11

82.20

89.68

88.67

89.10

89.52

88.38

.15372
.34302
41.682
8.0000
37.267

MEMO:

25 United States/dollar i

.15328
.33705
41.753
8.0000
39.632

.11330
.37756
40.443
4.3528
40.983

.12044
.33741
39.340
6.9161
37.846

i Index of weighted-average exchange value of U.S. dollar against currencies of other G-10 countries plus Switzerland. May 1970 parities = 100.
Weights are 1972 global trade of each of the 10 countries.




.11332
.37499
40.606
4.3629
40.831

.11318
.37486
40.600
4.3776
40.604

.11353
.39263
41.088
4.4069
41.048

.11388
.40872
41,910
4.4096
41.366

87.29

.11416
.41491
42.201
4.4059
42.955

85.52

NOTE.—Averages of certified n o o n buying rates in New York for cable
transfers.

A69

Guide to
Tabular Presentation and Statistical Releases
GUIDE TO TABULAR

PRESENTATION

SYMBOLS AND ABBREVIATIONS
p
r
rp
e
c
n.e.c.
Rp's
IPC's

Preliminary
Revised
Revised preliminary
Estimated
Corrected
Not elsewhere classified
Repurchase agreements
Individuals, partnerships, and corporations

SMSA's
REIT's
*

Standard metropolitan statistical areas
Real estate investment trusts
Amounts insignificant in terms of the particular unit ( e . g . , less than 5 0 0 , 0 0 0 when
the unit is millions)
(1) Zero, (2) no figure to be expected, or
(3) figure delayed or, (4) no change (when
figures
are expected in percentages).

G E N E R A L INFORMATION
Minus signs are used to indicate (1) a decrease, (2)
a negative figure, or (3) an outflow.
" U . S . Govt, securities" may include guaranteed
issues of U . S . Govt, agencies (the flow of funds figures
also include not fully guaranteed issues) as well as direct

STATISTICAL

obligations of the Treasury. "State and local g o v t . "
also includes municipalities, special districts, and other
political subdivisions.
In some of the tables details do not add to totals
because of rounding.

RELEASES

LIST P U B L I S H E D S E M I A N N U A L L Y , WITH LATEST B U L L E T I N
Anticipated schedule of release dates for individual releases




REFERENCE
Issue
December 1977

Page
A-78

A70

Federal Reserve Board of Governors
Chairman
G A R D N E R , Vice Chairman

ARTHUR F. BURNS,

HENRY C.

STEPHEN S.

PHILIP E . COLD WELL

OFFICE OF BOARD

OFFICE OF

MEMBERS

WALLICH

STAFF

DIRECTOR FOR MONETARY

THOMAS J. O'CONNELL, Counsel to the
Chairman
MILTON W . HUDSON, Assistant
to the
Chairman
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

STEPHEN H . AXILROD, Staff

POLICY

Director

ARTHUR L. BROIDA, 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

DIVISION OF R E S E A R C H A N D
LEGAL

DIVISION

JAMES L . K I C H L I N E ,

JOHN D . HAWKE, JR., 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

THEODORE E . ALLISON,

Secretary

GRIFFITH L . GARWOOD, Deputy
*ROBERT E . MATTHEWS, Assistant

Secretary
Secretary

STATISTICS

Director

JOSEPH S. ZEISEL, Deputy
Director
EDWARD C. ETTIN, Associate
Director
JOHN H . KALCHBRENNER, Associate
Director

JOHN J. MINGO, Senior Research
ELEANOR J. STOCK WELL, Senior

Division

JANET O . HART,

AFFAIRS

Director

NATHANIEL E . BUTLER, Associate
JERAULD C. KLUCKMAN, Associate

Director
Director

DIVISION OF B A N K I N G
SUPERVISION AND REGULATION
JOHN E . RYAN,

Director

JFREDERICK C. SCHADRACK, Deputy
Director
FREDERICK R . DAHL, Associate
Director
WILLIAM W . WILES, Associate
Director
JACK M. EGERTSON, Assistant
Director

DON E. KLINE, Assistant

Director

THOMAS E . MEAD, Assistant
ROBERT S. PLOTKIN, Assistant
THOMAS A . SIDMAN, Assistant
SAMUEL H . TALLEY, Assistant
WILLIAM TAYLOR, Assistant




Director
Director
Director
Director
Director

Officer

Research

Division

Officer
JAMES R. WETZEL, Senior Research Division Officer
ROBERT A. EISENBEIS, Associate Research Division
Officer
JARED J. ENZLER, Associate Research Division
Officer
JOHN D. PAULUS, Associate Research Division
Officer
J. CORTLAND G . PERET, Associate

DIVISION OF C O N S U M E R

to the

Board

Research

Division Officer
RICHARD H. PUCKETT, Associate Research Division
Officer
F HELMUT F. WEN DEL, Associate Research Division
Officer
JAMES M. BRUNDY, Assistant Research Division
Officer
ROBERT M. FISHER, Assistant Research Division
Officer
STEPHEN P. TAYLOR, Assistant Research Division
Officer
LEVON H . GARABEDIAN, Assistant

Director

DIVISION OF I N T E R N A T I O N A L

FINANCE

EDWIN M. TRUMAN,
JOHN E . REYNOLDS,

Director
Counselor

ROBERT F . GEMMILL, Associate
GEORGE B . HENRY, Associate
CHARLES J. SIEGMAN, Associate

Director
Director
Director

SAMUEL PIZER, Senior International
Officer

Division

All

and Official Staff
PHILIP C . JACKSON, JR.

DAVID M .

LILLY

J. CHARLES PARTEE
OFFICE OF
STAFF DIRECTOR FOR

MANAGEMENT

OFFICE OF STAFF DIRECTOR FOR
FEDERAL RESERVE BANK ACTIVITIES

JOHN M. DENKLER, Staff

Director

WILLIAM H . WALLACE, Staff

ROBERT J. LAWRENCE, Deputy Staff
DONALD E . ANDERSON, Assistant

Construction

Director

for

Management

GORDON B . GRIM WOOD, Assistant

Director

Program Director for Contingency
DIVISION OF DATA

and

Planning

PROCESSING

DIVISION OF F E D E R A L RESERVE
BANK EXAMINATIONS AND BUDGETS

ALBERT R . HAMILTON, Associate
Director
CLYDE H . FARNSWORTH, JR., Assistant
Director
JOHN F . HOOVER, Assistant
Director

P. D. RING, Assistant
CHARLES L . H A M P T O N ,

Director

JOHN R . WEIS, Assistant
Director
CHARLES W . WOOD, Assistant
Director
OFFICE OF THE

CONTROLLER

JOHN K A K A L E C ,

Controller

EDWARD T . MULRENIN, Assistant
DIVISION OF ADMINISTRATIVE
WALTER W . KREIMANN,

Controller
SERVICES

Director

JOHN L . GRIZZARD, Assistant
Director
JOHN D . SMITH, Assistant
Director

*On loan from the Federal Reserve Bank of Philadelphia.
tOn leave of absence.
£On loan from the Federal Reserve Bank of New York.




DIVISION OF
FEDERAL RESERVE BANK
JAMES R . K U D L I N S K I ,

OPERATIONS

Director

WALTER ALTHAUSEN, Assistant
Director
BRIAN M . CAREY, Assistant
Director
HARRY A . GUINTER, Assistant
Director

PERSONNEL

DAVID L . SHANNON,

Director

Director

BRUCE M. BEARDSLEY, Associate
Director
ULYESS D . BLACK, Assistant
Director
GLENN L . CUMMINS, Assistant
Director
ROBERT J. ZEMEL, Assistant
Director
DIVISION OF

Director

Director

A 72

FOMC and Advisory Councils
FEDERAL OPEN MARKET
ARTHUR F. BURNS,

COMMITTEE

Chairman

STEPHEN S.
ROGER

PAUL A . VOLCKER,

PHILIP C . JACKSON

PHILIP E . COLD WELL

DAVID M .

GARDNER

GUFFEY

MAYO

FRANK E.

MORRIS

Secretary
THOMAS J . O ' C O N N E L L , General

Counsel

EDWARD G. GUY, Deputy General Counsel
STEPHEN H . AXILROD,
Economist
A N A T O L BALBACH, Associate
Economist
RICHARD G . D A V I S , Associate
Economist

Vice Chairman
J. CHARLES PARTEE
LAWRENCE K.

LILLY

ROBERT P.

ARTHUR L . B R O I D A ,
Secretary
MURRAY A L T M A N N , Deputy
Secretary
NORMAND R . V . B E R N A R D ,
Assistant

JR.

HENRY C.

ROOS

WALLICH

THOMAS DAVIS, Associate
Economist
ROBERT E I S E N M E N G E R , Associate
Economist
E D W A R D C . E T T I N , Associate
Economist
JAMES L . K I C H L I N E , Associate
Economist
JOHN E . R E Y N O L D S , Associate
Economist
KARL S C H E L D , Associate
Economist
E D W I N M . T R U M A N , Associate
Economist
JOSEPH S . Z E I S E L , Associate
Economist

ALAN R. HOLMES, Manager, System Open Market Account
PETER D. STERNLIGHT, Deputy Manager for Domestic Operations
SCOTT E. PARDEE, Deputy Manager for Foreign Operations

FEDERAL ADVISORY

COUNCIL

H E N R Y S . W O O D B R I D G E , FIRST FEDERAL
RESERVE DISTRICT
W A L T E R B . W R I S T O N , SECOND FEDERAL
RESERVE DISTRICT
S A M U E L H . B A L L A M , J R . , THIRD FEDERAL
RESERVE DISTRICT
M . BROCK W E I R , FOURTH FEDERAL
RESERVE DISTRICT
J O H N H . L U M P K I N , F I F T H FEDERAL
RESERVE DISTRICT
F R A N K A . P L U M M E R , SIXTH FEDERAL
RESERVE DISTRICT

E D W A R D BYRON S M I T H , SEVENTH FEDERAL
RESERVE DISTRICT
CLARENCE C . BARKSDALE, EIGHTH FEDERAL
RESERVE DISTRICT
RICHARD H . V A U G H A N , N I N T H FEDERAL
RESERVE DISTRICT
J . W . M C L E A N , T E N T H FEDERAL
RESERVE DISTRICT
JAMES D . BERRY, E L E V E N T H FEDERAL
RESERVE DISTRICT
GILBERT F . B R A D L E Y , T W E L F T H FEDERAL
RESERVE DISTRICT

HERBERT V . P R O C H N O W ,
W I L L I A M J . KORSVIK, Associate

CONSUMER

ADVISORY

Secretary
Secretary

COUNCIL

L E O N O R K . S U L L I V A N , St. Louis, Missouri, Chairman
W I L L I A M D . W A R R E N , LOS Angeles, California, Vice Chairman
E D N A D E C O U R S E Y J O H N S O N , Baltimore, Maryland
R O L A N D E . B R A N D E L , San Francisco, California
ROBERT J . K L E I N , New York, New York
A G N E S H . B R Y A N T , Detroit, Michigan
PERCY W . L O Y , Portland, Oregon
J O H N G . B U L L , Fort Lauderdale, Florida
R . C. MORGAN, EL Paso, Texas
ROBERT V . B U L L O C K , Frankfort, Kentucky
L I N D A M. C O H E N , Washington, D . C .
R E E C E A. OVERCASH, JR., Dallas, Texas
ROBERT R . DOCKSON, LOS Angeles, California
R A Y M O N D J . S A U L N I E R , New York, New York
A N N E G . DRAPER, Washington, D.C.
E. G. SCHUHART, Dalhart, Texas
CARL F E L S E N F E L D , New York, New York
JAMES E . S U T T O N , Dallas, Texas
MARCIA A. H A K A L A , Omaha, Nebraska
A N N E GARY TAYLOR, Alexandria, Virginia
JOSEPH F. H O L T I I I , Oxnard, California
RICHARD D. W A G N E R , Simsbury, Connecticut
RICHARD L . W H E A T L E Y , JR., Stillwater, Oklahoma




A73

Federal Reserve Banks, Branches, and Offices
FEDERAL RESERVE BANK,
branch, or facility
Zip

Chairman
Deputy Chairman

President
First Vice President

BOSTON*

02106

Louis W. Cabot
Robert M. Solow

Frank E. Morris
James A. Mcintosh

NEW YORK*

10045

Robert H. Knight
Boris Yavitz
Donald R. Nesbitt

Paul A. Volcker
Thomas M. Timlen

Buffalo

14240

John T. Keane

PHILADELPHIA

19105

John W. Eckman
Werner C. Brown

David P. Eastburn
Richard L. Smoot

CLEVELAND*

44101

Willis J. Winn
Walter H. MacDonald

Cincinnati
Pittsburgh

45201
15230

Robert E. Kirby
Otis A. Singletary
Lawrence H. Rogers, II
G. Jackson Tankersley

RICHMOND*

23261

E. Angus Powell
Maceo A. Sloan
I. E. Killian
Robert C. Edwards

Robert P. Black
George C. Rankin

Baltimore
21203
Charlotte
28230
Culpeper Communications
and Records Center.. 22701
ATLANTA
Birmingham
Jacksonville
Miami
Nashville
New Orleans

30303
35202
32203
33152
37203
70161

CHICAGO*

60690

Detroit

48231

ST. LOUIS

63166

Little Rock
Louisville
Memphis

72203
40201
38101

MINNEAPOLIS

55480

Helena
KANSAS CITY
Denver
Oklahoma City
Omaha
DALLAS
El Paso
Houston
San Antonio

59601
64198
80217
73125
68102
75222
79999
77001
78295

SAN FRANCISCO ... .94120
Los Angeles
Portland
Salt Lake City
Seattle

90051
97208
84110
98124

Vice President
in charge of branch

Robert E. Showaiter
Robert D. Duggan

Jimmie R. Monhollon
Stuart P. Fishburne
Albert D. Tinkelenberg

Clifford M. Kirtland, Jr.
Vacancy
Harold B. Blach, Jr.
James E. Lyons
Alvaro L. Carta
John C. Bolinger
Edwin J. Caplan

Monroe Kimbrel
Kyle K. Fossum

Robert H. Strotz
Vacancy
Jordan B. Tatter

Robert P. Mayo
Daniel M. Doyle

Armand C. Stalnaker
William B. Walton
Ronald W. Bailey
Vacancy
Frank A. Jones, Jr.

Lawrence K. Roos
Donald W. Moriarty

James P. McFarland
Stephen F. Keating
Patricia P. Douglas

Mark H. Willes
Clement A. Van Nice

Harold W. Andersen
Joseph H. Williams
A. L. Feldman
Vacancy
Durward B. Varner

Roger Guffey
Henry R. Czerwinski

Irving A. Mathews
Charles T. Beaird
Vacancy
Alvin I. Thomas
Vacancy

Ernest T. Baughman
Robert H. Boykin

Joseph F. Alibrandi
Cornell C. Maier
Caroline L. Ahmanson
Loran L. Stewart
Sam Bennion
Lloyd E. Cooney

John J. Balles
John B. Williams

Hiram J. Honea
Edward C. Rainey
W. M. Davis
Jeffrey J. Wells
George C. Guynn

William C. Conrad

John F. Breen
Donald L. Henry
L. Terry Britt

John D. Johnson

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
James J. Curran

•Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; Cranford,
New Jersey 07016; Jericho, New York 11753; Utica, New York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210;
Charleston, West Virginia 25311; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202.




A 74

Federal Reserve Board Publications
Available from Publications Services, Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551.
Where
a charge is indicated,
remittance should
accompany

request and be made payable to the order of the Board
of Governors of the Federal Reserve System in a form
collectible
at par in U.S. currency.
(Stamps
and
coupons are not
accepted.)

THE

INDUSTRIAL PRODUCTION—1976 EDITION. 1977. 3 0 4 p p .

FEDERAL
RESERVE
SYSTEM—PURPOSES
AND
FUNCTIONS. 1 9 7 4 . 1 2 5 p p .
A N N U A L REPORT
FEDERAL RESERVE B U L L E T I N . M o n t h l y . $ 2 0 . 0 0 p e r

year or $2.00 each in the United States, its possessions, Canada, and Mexico; 10 or more of same
issue to one address, $18.00 per year or $1.75
each. Elsewhere, $24.00 per year or $2.50 each.
BANKING

AND

MONETARY

STATISTICS,

1914-1941.

(Reprint of Part 1 only) 1976. 682 pp. $5.00.
BANKING

AND

MONETARY

1972-76.

321

REPORT OF THE JOINT TREASURY-FEDERAL RESERVE
STUDY OF THE
U . S . GOVERNMENT SECURITIES

JOINT TREASURY-FEDERAL RESERVE S T U D Y OF THE
GOVERNMENT SECURITIES MARKET: STAFF S T U D -

1977. 3 8 8 p p .

$10.00 per copy.
Subscrip-

tion includes one issue of Historical Chart Book.
$12.00 per year or $1.25 each in the United States,
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HISTORICAL CHART BOOK. Issued annually in Sept.
Subscription to Monthly Chart Book includes one
issue. $1.25 each in the United States, its possessions, Canada, and Mexico; 10 or more to one
address, $1.00 each. Elsewhere, $1.50 each.
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, $13.50 per year or $.35 each.
Elsewhere, $20.00 per year or $.50 each.
SELECTED INTEREST A N D EXCHANGE RATES—WEEKLY
SERIES OF CHARTS. W e e k l y . $ 1 5 . 0 0 p e r y e a r o r

$.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 $.50 each.
THE FEDERAL RESERVE ACT, as a m e n d e d through D e -

cember 1976, with an appendix containing provisions of certain other statutes affecting the Federal
Reserve System. 307 pp. $2.50.
REGULATIONS OF THE BOARD OF GOVERNORS OF THE
FEDERAL RESERVE SYSTEM
PUBLISHED INTERPRETATIONS OF THE BOARD OF G O V -




1968.

pp. $1.00 each; 10 or more to one address, $.85
each.

1976. 3 3 9 p p .

FEDERAL RESERVE M O N T H L Y CHART BOOK.

ERNORS, as of June 30, 1977. $7.50.

SURVEY OF CHANGES IN FAMILY FINANCES.

MARKET. 1969. 48 pp. $.25 each; 10 or more to
one address, $.20 each.

$4.00 per copy for each paid subscription to Federal R e s e r B u l l e t i n . All others, $5.00 each.
A N N U A L STATISTICAL DIGEST,

1968.

102 pp. $1.00 each; 10 or more to one address,
$.85 each.

1941-1970.

STATISTICS,

1976. 1,168 pp. $15.00.
A N N U A L STATISTICAL DIGEST, 1 9 7 1 - 7 5 .

$4.50 each; 10 or more to one address, $4.00 each.
BANK CREDIT-CARD AND CHECK-CREDIT PLANS.

IES—PART 1. 1970. 86 pp. $.50 each; 10 or more
to one address, $.40 each. PART 2. 1971. 153 pp.
and PART 3. 1973. 131 pp. Each volume $1.00;
10 or more to one address, $.85 each.
OPEN MARKET POLICIES AND OPERATING
PROCED U R E S — S T A F F STUDIES. 1 9 7 1 . 2 1 8 p p .
$2.00

each; 10 or more to one address, $1.75 each.
REAPPRAISAL OF THE FEDERAL RESERVE DISCOUNT
MECHANISM. V o l . 1 . 1 9 7 1 . 2 7 6 p p . V o l . 2 . 1 9 7 1 .

173 pp. Vol. 3. 1972. 220 pp. Each volume $3.00;
10 or more to one address, $2.50 each.
T H E ECONOMETRICS OF PRICE DETERMINATION

CON-

FERENCE, October 30-31, 1970, Washington, D.C.
1972. 397 pp. Cloth ed. $5.00 each; 10 or more
to one address, $4.50 each. Paper ed. $4.00 each;
10 or more to one address, $3.60 each.
FEDERAL RESERVE STAFF S T U D Y : W A Y S TO MODERATE
FLUCTUATIONS IN HOUSING CONSTRUCTION. 1 9 7 2 .

487 pp. $4.00 each; 10 or more to one address,
$3.60 each.
LENDING

FUNCTIONS

OF

THE

FEDERAL

RESERVE

BANKS. 1973. 271 pp. $ 3 . 5 0 each; 10 or more
to one address, $3.00 each.
IMPROVING THE MONETARY AGGREGATES ( R e p o r t o f t h e

Advisory Committee on Monetary Statistics).
1976. 43 pp. $1.00 each; 10 or more to one
address, $.85 each.
A N N U A L PERCENTAGE RATE TABLES ( T r u t h in

Lend-

ing—Regulation Z) Vol. I (Regular Transactions).
1969. 100 pp. Vol. II (Irregular Transactions).
1969. 116 pp. Each volume $1.00, 10 or more
of same volume to one address, $.85 each.

Federal Reserve Board Publications

CONSUMER EDUCATION

PAMPHLETS

(Short pamphlets suitable for classroom use.
copies available without charge.)

Multiple

T H E EQUAL CREDIT OPPORTUNITY A C T AND . . . A G E
THE EQUAL CREDIT OPPORTUNITY A C T AND . . .
DOCTORS,
LAWYERS,
SMALL
RETAILERS,
AND
OTHERS W H O M A Y PROVIDE INCIDENTAL CREDIT
T H E EQUAL CREDIT OPPORTUNITY A C T AND .
WOMEN
FAIR CREDIT BILLING
IF Y O U BORROW TO B U Y STOCK
U . S . CURRENCY
W H A T TRUTH IN LENDING M E A N S TO Y O U

BANK 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 BONDS. 9 / 7 2 .
RECENT ACTIVITIES OF FOREIGN BRANCHES OF U . S .

BANKS. 10/72.
REVISION OF CONSUMER CREDIT STATISTICS. 1 0 / 7 2 .
O N E - B A N K HOLDING COMPANIES BEFORE THE 1 9 7 0

AMENDMENTS. 12/72.
YIELDS ON RECENTLY OFFERED CORPORATE

CREDIT-CARD AND CHECK-CREDIT PLANS AT COMMERCIAL B A N K S . 9 / 7 3 .
RATES ON CONSUMER INSTALMENT LOANS.
N E W SERIES FOR LARGE MANUFACTURING

Studies and papers on economic and financial subjects
that are of general interest in the field of economic
research.
SUMMARIES O N L Y P R I N T E D IN THE B U L L E T I N

(Limited supply of mimeographed copies of full text
available upon request for single copies.)
RECENT TRENDS IN LOCAL BANKING MARKET STRUC-

TURE, by Samuel H. Talley. May 1977. 26 pp.
PERFORMANCE OF BANK HOLDING COMPANYAFFILIATED FINANCE COMPANIES, b y S t e p h e n A .

Rhoades and Gregory E. Boczar. Aug. 1977. 19 pp.
GREELEY IN PERSPECTIVE, by Paul Schweitzer and Joshua
Greene. Sept. 1977. 17 pp.
STRUCTURE A N D PERFORMANCE STUDIES IN BANKING: A
SUMMARY A N D EVALUATION, b y S t e p h e n
A.

Rhoades. Dec. 1977. 45 pp.

below.

INDEX

OF

MANUFACTURING

CAPACITY,

Staff Economic Study by Frank de Leeuw with
Frank E. Hopkins and Michael D. Sherman. 11/66.
U.S.

MARKETS. 10/75.
MINNIE:
A
SMALL
VERSION
OF
M I T - P E N N - S S R C ECONOMETRIC M O D E L ,

THE

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 .

AND

6/76.

BANKS. 10/76.

(Except for Staff Papers, Staff Economic Studies, and
some leading articles, most of the articles reprinted do
not exceed 12 pages.)
REVISED

INFLATION AND STAGNATION IN MAJOR FOREIGN INDUSTRIAL COUNTRIES. 1 0 / 7 4 .
THE STRUCTURE OF MARGIN CREDIT. 4 / 7 5 .
N E W STATISTICAL SERIES ON LOAN COMMITMENTS AT
SELECTED LARGE COMMERCIAL BANKS. 4 / 7 5 .
RECENT TRENDS IN FEDERAL BUDGET POLICY. 7 / 7 5 .
RECENT DEVELOPMENTS IN INTERNATIONAL FINANCIAL

INDUSTRIAL PRODUCTION—1976 R e v i s i o n .

REPRINTS

A

ENERGY SUPPLIES AND USES, Staff Economic
Study by Clayton Gehman. 12/73.

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

P R I N T E D IN F U L L IN THE B U L L E T I N

Studies shown in list

9/73.
CORPORA-

TIONS. 10/73.

STAFF ECONOMIC STUDIES

Staff Economic

BONDS.

5/73.

U.S.

THE

A 75

INTERNATIONAL

TRANSACTIONS:

TRENDS

IN

CHANGES IN B A N K LENDING PRACTICES,

1976.

SURVEY OF TERMS OF B A N K L E N D I N G — N E W
THE COMMERCIAL PAPER MARKET.

CAPACITY

UTILIZATION. 10/71.
REVISION OF B A N K CREDIT SERIES. 1 2 / 7 1 .
ASSETS AND LIABILITIES OF FOREIGN BRANCHES
U . S . BANKS. 2 / 7 2 .




BANK HOLDING COMPANY FINANCIAL DEVELOPMENTS
IN 1976. 4/77.
4/77.
SERIES.

5/77.

1960-67. 4/68.
MEASURES OF SECURITY CREDIT. 1 2 / 7 0 .
REVISED MEASURES OF MANUFACTURING

N E W ESTIMATES OF CAPACITY UTILIZATION: M A N U FACTURING AND MATERIALS. 1 1 / 7 6 .
U . S . INTERNATIONAL TRANSACTIONS IN A RECOVERING
ECONOMY. 4 / 7 7 .

6/77.

CONSUMPTION A N D FIXED INVESTMENT IN THE ECONOMIC RECOVERY ABROAD. 10/77.

OF

CHANGES IN TIME AND SAVINGS DEPOSITS AT COM-

MERCIAL BANKS, April-July 1977. 11/77.

A76

Index to Statistical Tables
References are to pages A-3 through A-68 although the prefix "A" is omitted in this index
ACCEPTANCES, bankers, 11, 25, 27
Agricultural loans, commercial banks, 18, 20-22, 26
Assets and liabilities (S^e also Foreigners):
Banks, by classes, 16, 17, 18, 20-23, 29
Domestic finance companies, 39
Federal Reserve Banks, 12
Nonfinancial corporations, current, 38
Automobiles:
Consumer instalment credit, 42, 43
Production, 48, 49
BANKERS balances, 16, 18, 20, 21, 22
(See also Foreigners)
Banks for cooperatives, 35
Bonds (See also U.S. Govt, securities):
New issues, 36, 37
Yields, 3
Branch banks:
Assets and liabilities of foreign branches of U.S.
banks, 62
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, 47
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, 15-18, 20-23
Business loans, 26
Commercial and industrial loans, 24
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, 38
Security issues, 36, 37, 65
Cost of living (See Consumer prices)
Credit unions, 29, 42, 43
Currency and coin, 5, 16, 18
Currency in circulation, 4, 14
Customer credit, stock market, 28
DEBITS to deposit accounts, 13
Debt (See specific types of debt or securities)




Demand deposits:
Adjusted, commercial banks, 13, 15, 19
Banks, by classes, 16, 17, 19, 20-23
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, 20-23, 29
Federal Reserve Banks, 4,. 12
Subject to reserve requirements, 15
Turnover, 13
Discount rates at F.R. Banks (See Interest rates)
Discounts and advances by F.R. Banks (See Loans)
Dividends, corporate, 38
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, 35
Federal funds, 3, 6, 18, 20, 21, 22, 27, 30
Federal home loan banks, 35
Federal Home Loan Mortgage Corp., 35, 40, 41
Federal Housing Administration, 35, 40, 41
Federal intermediate credit banks, 35
Federal land banks, 35, 41
Federal National Mortgage Assn., 35, 40, 41
Federal Reserve Banks:
Condition statement, 12
Discount rates (See Interest rates)
U.S. Govt, securities held, 4, 12, 13, 32, 33
Federal Reserve credit, 4, 5, 12, 13
Federal Reserve notes, 12
Federally sponsored credit agencies, 35
Finance companies:
Assets and liabilities, 39
Busines credit, 39
Loans, 20, 21, 22, 42, 43
Paper, 25, 27
Financial institutions, loans to, 18, 20-23
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. 56-59, 64-67
GOLD:
Certificates, 12
Stock, 4, 55
Government National Mortgage Assn., 35, 40, 41
Gross national product, 52, 53

Federal Reserve Bulletin • January 1978

HOUSING, new and existing units, 50
INCOME, personal and national, 46, 52, 53
Industrial production, 46, 48
Instalment loans, 42, 43
Insurance companies, 29, 32, 33, 41
Insured commercial banks, 17, 18, 19
Interbank deposits, 16, 17, 20, 21, 22
Interest rates:
Bonds, 3
Business loans of banks, 26
Federal Reserve Banks, 3, 8
Foreign countries, 68
Money and capital market rates, 3, 27
Mortgages, 3, 40
Prime rate, commercial banks, 26
Time and savings deposits, maximum rates, 10
International capital transactions of the United
States, 56-67
International organizations, 56-61, 65-67
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, 20-23, 29
Commercial banks, 3, 15-18, 20-23, 24, 26
Federal Reserve Banks, 3, 4, 5, 8, 12, 13
Insurance companies, 29, 41
Insured or guaranteed by U.S., 40, 41
Savings and loan assns., 29
MANUFACTURERS:
Capacity utilization, 46, 47
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 , 1 5
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, 20-22, 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, 38




REAL estate loans:
Banks, by classes, 18, 20-23, 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, 17, 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
Time deposits)
Savings institutions, selected assets, 29
Securities (See also U.S. Govt, securities):
Federal and Federally sponsored agencies, 35
Foreign transactions, 65
New issues, 36, 37
Prices, 28
Special Drawing Rights, 4, 12, 54, 55
State and local govts.:
Deposits, 19, 20, 21, 22
Holdings of U.S. Govt, securities, 32, 33
New security issues, 36
Ownership of securities of, 18, 20, 21, 22, 29
Yields of securities, 3
State member banks, 17
Stock market, 28
Stocks (See also Securities);
New issues, 36, 37
Prices, 28
TAX receipts, Federal, 31
Time deposits, 3, 10, 13. 15, 16, 17, 19, 20, 21,
22. 23
Trade, foreign, 55
Treasury currency. Treasury cash, 4
Treasury deposits, 4, 12, 30
Treasury operating balance, 30
UNEMPLOYMENT, 47
U.S. balance of payments, 54
U.S. Govt, balances:
Commercial bank holdings, 19, 20, 21, 22
Member bank holdings, 15
Treasury deposits at Reserve Banks, 4, 12, 30
U.S. Govt, securities:
Bank holdings, 16, 17, 18, 20, 21, 22, 29,
32, 33
Dealer transactions, positions, and financing, 34
Federal Reserve Bank holdings, 4, 12, 13, 32, 33
Foreign and international holdings and
transactions, 12, 32, 64
Open market transactions, 11
Outstanding, by type of security, 32, 33
Ownership, 32, 33
Rates in money and capital markets, 27
Yields, 3
Utilities, production, 49
VETERANS Administration, 40, 41
WEEKLY reporting banks, 20-24
Wholesale prices, 46
YIELDS (See Interest rates)

A77

A78

The Federal Reserve System
Boundaries of Federal Reserve Districts and Their Branch Territories

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January 1977

LEGEND
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Boundaries of Federal Reserve Districts

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Federal Reserve Bank Cities

Boundaries of Federal Reserve Branch
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Federal Reserve Branch Cities
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Federal Reserve Bank Facility

Board of Governors of the Federal
Reserve System